Global Water Resources Inc (GWRS) 2026 Q1 法說會逐字稿

Greetings, ladies and gentlemen. Thank you for standing by. Welcome to the Global Water Resources, Inc. 2026 first quarter conference call. (Operator Instructions) I would like to remind everyone that this call is being recorded on May 14, 2026 at 1:00 PM.

各位女士、先生，大家好。感謝您稍候。歡迎參加 Global Water Resources, Inc. 2026 年第一季電話法說會。（接線員指示）提醒各位，本次電話會議將於 2026 年 5 月 14 日下午 1:00 錄音。

Eastern Time. I would now like to turn the conference over to Kyle Upchurch, Controller. Please go ahead.

美東時間。現在我將把會議交給主計長 Kyle Upchurch。請開始。

Thank you, operator, and welcome, everybody. Thank you for joining us on today's call. Yesterday, we issued our 2026 first quarter financial results by press release, a copy of which is available on our website at gwresources.com.

謝謝接線員，並歡迎各位。感謝大家參加今天的電話會議。昨天我們已透過新聞稿發布 2026 年第一季財務結果，新聞稿副本可於我們網站 gwresources.com 取得。

Speaking today is Ron Fleming, President and Chief Executive Officer; Mike Liebman, Chief Financial Officer; and Chris Krygier, Chief Operating Officer. Ron will summarize the key operational events of the quarter, Mike will review the financial results for the first quarter and Chris will review Arizona Corporation Commission activity. Ron, Mike and Chris will be available for questions at the end of the call.

今天出席發言者包括：總裁兼執行長 Ron Fleming；財務長 Mike Liebman；以及營運長 Chris Krygier。Ron 將摘要本季主要營運事項，Mike 將回顧第一季財務結果，Chris 將說明亞利桑那州公司委員會（Arizona Corporation Commission）的相關動態。Ron、Mike 與 Chris 將於會議結束前的問答時間回答問題。

Before we begin, I would like to remind you that certain information presented today may include forward-looking statements. Such statements reflect the company's current expectations, estimates, projections and assumptions regarding future events. These forward-looking statements involve a number of assumptions, risks, uncertainties, estimates and other factors that could cause actual results to differ materially from those contained in the forward-looking statements. Accordingly, investors are cautioned not to place undue reliance on any forward-looking statements, which reflect management's views as of the date hereof and are not guarantees of future performance. For additional information regarding factors that may affect future results, please read the Risk Factors and MD&A sections of our periodic SEC filings.

在開始之前，我想提醒各位，今天所呈現的部分資訊可能包含前瞻性陳述。此類陳述反映公司對未來事件的目前預期、估計、預測與假設。這些前瞻性陳述涉及多項假設、風險、不確定性、估計及其他因素，可能導致實際結果與前瞻性陳述所載內容出現重大差異。因此，提醒投資人不應過度依賴任何前瞻性陳述；該等陳述僅反映管理階層截至本日之觀點，並不保證未來績效。關於可能影響未來結果之因素的更多資訊，請閱讀我們定期向美國證券交易委員會（SEC）申報文件中的「風險因素」與「管理階層討論與分析（MD&A）」章節。

Additionally, certain non-GAAP measures may be included within today's call. For a reconciliation of those measures to the comparable GAAP measures, please see the tables included in yesterday's earnings release, which is available on our website.

此外，今天的電話會議可能包含若干非 GAAP 衡量指標。關於該等指標與可比較 GAAP 指標之調節，請參閱昨日財報新聞稿所附表格；該新聞稿可於我們網站取得。

I will now turn the call over to Ron.

現在我將把電話會議交給 Ron。

Thank you, Kyle. Good morning, everyone, and thank you for joining us today. First, before jumping to normal operating highlights, I'd like to emphasize our focus on earnings growth. While most elements of our business have experienced growth, our goal is to achieve long-term earnings growth, and we are committed to this objective, which we believe will allow us to enhance shareholder value.

謝謝你，Kyle。各位早安，感謝大家今天加入。首先，在進入例行營運重點之前，我想強調我們對獲利成長的聚焦。雖然我們業務的大多數面向都已出現成長，但我們的目標是達成長期獲利成長；我們致力於此一目標，並相信這將使我們得以提升股東價值。

As we reported last quarter as part of our year-end reporting for 2025, we had a near-record year for capital investments that were critical to complete. This included the investment necessary to recommission our Southwest Plant water reclamation facility, which was originally constructed 20 years ago and was mothballed during the Great Recession. Although these investments grow rate base considerably and thus become drivers of future earnings growth, these investments increased certain operating expenses and most notably, depreciation expense. Such expenses continue to adversely impact net income and earnings per share in the first quarter of 2026.

如同我們在上一季、作為 2025 年年終報告的一部分所提到的，我們在資本投資方面接近創紀錄的一年，且這些投資對完成關鍵事項至關重要。其中包括為重新啟用我們的 Southwest Plant 再生水處理設施所需的投資；該設施於 20 年前建造，並在大衰退期間停用。雖然這些投資大幅增加費率基礎（rate base），因此成為未來獲利成長的驅動因素，但也提高了部分營運費用，尤其是折舊費用。此類費用在 2026 年第一季仍持續對淨利與每股盈餘造成不利影響。

This is an unfortunate yet necessary part of the historical test year environment here in Arizona as you must make the investments, incur the expenses and then pursue rate recovery. As I've been saying for many quarters now, we need new rates to keep up with all the investment and inflation that we have experienced in our utilities. To this end, while it represents a diversion from our original rate application, the recently announced rate case settlement provides a clearer path to a notable rate increase for our largest water utility, GW-Santa Cruz later this year.

這是在亞利桑那州「歷史測試年度」（historical test year）監管環境下令人遺憾但必要的一環：你必須先進行投資、承擔費用，然後再尋求費率回收。正如我過去多個季度一直強調的，我們需要新的費率來跟上公用事業所面臨的投資與通膨。為此，儘管這代表偏離我們原先的費率申請，近期公布的費率案件和解方案，為我們最大供水公用事業 GW-Santa Cruz 於今年稍晚取得顯著調漲費率提供了更清晰的路徑。

For GW-Palo Verde, while delayed, the delay deals with the primary difference of opinion on the timing of rate recovery as it relates to our historical Southwest Plant water reclamation facility issue. Thus, the new schedule provides a clearer path to setting appropriate rates for our largest wastewater utility along this new time line.

就 GW-Palo Verde 而言，雖然進度延後，但延後主要源於對費率回收時點的歧見，且與我們歷史性的 Southwest Plant 再生水處理設施議題相關。因此，新的時程表為我們最大污水處理公用事業在此新時間軸下訂定適當費率提供了更清晰的路徑。

Together, this will allow us to better realize recovery of inflationary expenses and return on and return of our plant investments, including the Southwest Plant, resulting in years of meaningful earnings growth ahead. Chris will discuss the rate case further later on the call, but I will add that we plan to announce additional rate case activity for our other utilities in the coming quarters.

綜合而言，這將使我們能更有效地回收通膨性費用，並就我們的廠房投資（包括 Southwest Plant）取得投資報酬（return on）與資本回收（return of），從而在未來多年帶來具意義的獲利成長。Chris 稍後將在電話會議中進一步討論費率案件，但我也補充，我們計畫在未來幾個季度宣布其他公用事業的更多費率案件進展。

In the meantime, 2026 is about working hard to control expenses, and we have reduced the pace of our capital investments. In the years to come, we believe we can maintain solid revenue and earnings growth as we seek to obtain appropriate rate increases combined with our anticipated strong organic growth.

同時，2026 年的重點是努力控管費用，而我們也已放緩資本投資的步調。展望未來幾年，我們相信在爭取適當的費率調升並結合我們預期強勁的內生成長之下，仍可維持穩健的營收與獲利成長。

Now I will provide a few operational highlights. Total active service connections increased 5.7% to 68,885 as of March 31, 2026, from the 12 months prior. In 2026, we achieved an annualized 1.9% total active service connection growth rate, excluding the acquisition of the 7 Tucson Water systems. Specifically, we have invested $6.3 million into infrastructure improvements in existing utilities in 2026 to provide safe and reliable service.

接下來我提供幾項營運重點。截至 2026 年 3 月 31 日，總在役服務接管數（active service connections）較前 12 個月成長 5.7%，達到 68,885。於 2026 年，若排除收購 7 個 Tucson Water 系統，我們達成的總在役服務接管數年化成長率為 1.9%。具體而言，2026 年我們已在既有公用事業投入 630 萬美元進行基礎設施改善，以提供安全且可靠的服務。

Now I want to discuss organic customer growth and what is going on in our core utilities further. The single-family dwelling unit market ended 2025 with approximately 21,815 building permits issued in the Phoenix Greater Metro Statistical area. In the first quarter of 2026, this market realized 5,204 building permits, representing an 18.8% decrease compared to the same period in 2025. Meanwhile, the Maricopa market realized 157 building permits, representing a 16.5% decrease from the same period in 2025.

現在我想進一步討論內生客戶成長，以及我們核心公用事業的最新情況。單戶住宅（single-family dwelling unit）市場在 2025 年結束時，鳳凰城大都會統計區（Phoenix Greater Metro Statistical Area）約核發 21,815 件建築許可。2026 年第一季，該市場核發 5,204 件建築許可，較 2025 年同期下降 18.8%。同時，Maricopa 市場核發 157 件建築許可，較 2025 年同期下降 16.5%。

While new permit activity has slowed in 2026, continued growth in the Phoenix MSA, particularly in the City of Maricopa is reflected in the company's 2.6% year-over-year organic increase in active connections. We believe the decline in permits is temporary as we remain well positioned to benefit from the anticipated long-term growth of the Phoenix MSA and our specific area drivers, including job growth, affordability, improving transportation, including State Route 347 widening and our large assured water supply. I will now turn the call over to Mike for financial highlights.

雖然 2026 年新許可活動已放緩，但鳳凰城 MSA 的持續成長，特別是 Maricopa 市，反映在公司在役接管數年增 2.6% 的內生成長上。我們認為許可量下滑屬暫時現象；我們仍具備良好條件，可受惠於鳳凰城 MSA 預期的長期成長，以及我們特定區域的驅動因素，包括就業成長、可負擔性、交通改善（包括 347 號州道拓寬），以及我們充足且具保證的供水量。現在我將把電話會議交給 Mike，請他說明財務重點。

Thanks, Ron. Hello, everyone. Total revenue for the first quarter of 2026 was $13.3 million, which was up $0.8 million or 6.7% compared to Q1 2025. The increase in revenue was primarily attributable to the acquisition of seven water systems from the City of Tucson in July 2025, organic connection growth and higher rates in our GW-Farmers utility.

謝謝你，Ron。各位好。2026 年第一季總營收為 1,330 萬美元，較 2025 年第一季增加 80 萬美元（增幅 6.7%）。營收增加主要歸因於我們於 2025 年 7 月自圖森市（City of Tucson）收購七套供水系統、自然用戶接管數成長，以及我們 GW-Farmers 公用事業較高的費率。

Operating expenses for Q1 2026 increased approximately $1.7 million or 15.1% to $12.9 million compared to $11.2 million in Q1 2025. Notable changes in operating expenses included depreciation, amortization and accretion expense increased $0.9 million for Q1. The increase was substantially attributable to the additional depreciable fixed assets placed in service last year as a result of our 2025 capital improvement plan and the commissioning of related projects.

2026 年第一季營運費用約增加 170 萬美元（增幅 15.1%）至 1,290 萬美元，較 2025 年第一季的 1,120 萬美元為高。營運費用的顯著變動包括：第一季折舊、攤銷與折耗費用增加 90 萬美元。該增加主要歸因於去年因我們 2025 年資本改善計畫及相關專案投運，而新增投入使用的可折舊固定資產。

Operating and maintenance costs increased approximately $0.5 million. The increase was primarily driven by rising medical expense, higher purchased power associated with newly operational plant and wastewater disposal expenses related to the start-up of two new wastewater reclamation facilities. G&A costs increased by approximately $0.3 million, primarily driven by rising medical costs.

營運與維護成本約增加 50 萬美元。增加主要由醫療費用上升、新投運廠房帶來的外購電力成本提高，以及兩座新污水回收設施啟用所產生的污水處置費用所驅動。一般及行政（G&A）成本約增加 30 萬美元，主要同樣由醫療成本上升所致。

Now to discuss other expense. Other expense for Q1 2026 was $0.9 million compared to $0.5 million in Q1 2025. The increase in expense is primarily attributable to higher interest expense, lower interest income and a decrease in income associated with our Buckeye growth premiums.

接下來談其他費用。2026 年第一季其他費用為 90 萬美元，較 2025 年第一季的 50 萬美元增加。費用增加主要歸因於利息費用較高、利息收入較低，以及與我們 Buckeye 成長溢價（growth premiums）相關的收入減少。

Net loss for Q1 2026 was $0.4 million or $0.01 per diluted share as compared to net income of $0.6 million or $0.02 per diluted share in Q1 2025. Lastly, I'll discuss adjusted EBITDA, which adjusts for certain noncash items such as restricted stock expense. Adjusted EBITDA remained consistent at $5.6 million in the first quarter of both 2026 and 2025.

2026 年第一季淨損為 40 萬美元，或稀釋後每股虧損 0.01 美元；相較之下，2025 年第一季淨利為 60 萬美元，或稀釋後每股盈餘 0.02 美元。最後，我將說明調整後 EBITDA，其會調整若干非現金項目，例如限制性股票費用。2026 年與 2025 年第一季的調整後 EBITDA 均維持在 560 萬美元。

This concludes our update on the first quarter 2026 financial results. I'll now pass the call to Chris to review our regulatory activity for the quarter.

以上為我們對 2026 年第一季財務結果的更新。接下來我將把電話交給 Chris，請他回顧本季的監管活動。

Thank you, Mike, and hello, everyone. As you heard Ron mention earlier and saw in our April 29, 2026 press release and 10-Q, we reached a settlement in our pending rate reviews. The unanimous settlement contemplates a water revenue increase of approximately $2.3 million for GW-Santa Cruz and a wastewater revenue decrease of $0.4 million for GW-Palo Verde as an extension of the existing temporary bill credit. The estimated effective date of these new rates is November 1, 2026.

謝謝你，Mike，各位好。如同先前 Ron 提到的，以及你們在我們 2026 年 4 月 29 日新聞稿與 10-Q 中所見，我們在進行中的費率審查中達成和解。該一致同意的和解方案預計 GW-Santa Cruz 的供水收入增加約 230 萬美元，並作為延長既有臨時帳單抵減（temporary bill credit）的一部分，使 GW-Palo Verde 的污水收入減少 40 萬美元。這些新費率的預估生效日為 2026 年 11 月 1 日。

The settlement allows us to close most of the history related to GW-Santa Cruz's Southwest area water assets and turn our attention to the wastewater assets. The next steps in the process include filing testimony in support of the settlement by the end of this month with the hearing commencing in August 2026. After that, the administrative law judge writes a recommendation for the commission's consideration.

該和解使我們得以結束與 GW-Santa Cruz 西南區供水資產相關的大部分歷史議題，並將注意力轉向污水資產。流程的下一步包括在本月底前提交支持和解的證詞，並於 2026 年 8 月開始聽證。之後，行政法官將撰寫建議供委員會審議。

Planning ahead, we will continue our focus on securing appropriate rates for our investments made. As part of the settlement agreement, we agreed to withdraw the GW-Palo Verde rate review. We anticipate filing a new rate review request for GW-Palo Verde's wastewater assets in 2027 with new rates estimated to be implemented in 2028. This upcoming rate review request is anticipated to include the Southwest Plant water reclamation facility that you heard about earlier, incremental capital investment made since 2025 and reflect operating expenses of a 2026 test year.

展望未來，我們將持續專注於為已投入的投資爭取適當費率。依和解協議，我們同意撤回 GW-Palo Verde 的費率審查。我們預期於 2027 年就 GW-Palo Verde 的污水資產提出新的費率審查申請，並估計新費率將於 2028 年實施。預期此次費率審查申請將納入你們先前聽到的 Southwest Plant 水回收設施、2025 年以來新增的資本投資，並反映以 2026 年為測試年度（test year）的營運費用。

As Ron mentioned earlier, we are laser-focused on recovering rates to capital investments made across our utilities. We are in the planning stages for multiple rate review filings for our utilities and expect to provide you updates at our next quarterly update in August 2026. Those updates are expected to include the timing of our next rate review filings for our Farmers division, Saguaro division, Ocotillo division and Santa Cruz division amongst others.

如同 Ron 先前提到的，我們高度聚焦於就各公用事業的資本投資回收費率。我們正處於為多項公用事業規劃多件費率審查申報的階段，並預期在 2026 年 8 月的下一次季度更新中向各位提供最新進展。這些更新預期將包括我們 Farmers 事業部、Saguaro 事業部、Ocotillo 事業部與 Santa Cruz 事業部等下一輪費率審查申報的時程。

This concludes the update on regulatory activity for the quarter. I'll now pass the call back to Ron.

以上為本季監管活動的更新。接下來我把電話交回給 Ron。

Thank you, Chris. Despite the headwinds, our work continues. What we do and how we do what we do matters to our communities. We truly believe that expanding our Total Water Management platform and applying our expertise throughout our regional service areas and to new utilities will be beneficial to all stakeholders involved.

謝謝你，Chris。儘管面臨逆風，我們的工作仍在持續。我們做什麼、以及我們如何去做，對我們的社區都很重要。我們深信，擴展我們的「全方位水務管理」（Total Water Management）平台，並將我們的專業運用於區域服務範圍內以及新的公用事業，將有利於所有相關利害關係人。

That said, I understand that shareholders are a vital stakeholder, and our goal is to achieve long-term earnings growth, which we believe will allow us to enhance shareholder value. This is our focus. We appreciate your investment in and support of us as we grow Global Water to continue to address important utility, water resource and economic development matters along the Arizona Sun Corridor, allowing our communities to thrive.

話雖如此，我理解股東是重要的利害關係人，而我們的目標是實現長期獲利成長；我們相信這將使我們能夠提升股東價值。這就是我們的重點。感謝各位對我們的投資與支持，讓我們得以持續壯大全球水務（Global Water），並在亞利桑那太陽走廊（Arizona Sun Corridor）沿線持續處理重要的公用事業、水資源與經濟發展議題，讓我們的社區得以蓬勃發展。

So these highlights conclude our prepared remarks. Thank you. We are now available to answer any questions.

以上重點即為我們事先準備的發言。謝謝。我們現在可以回答各位的問題。

Thank you. We will now begin the question-and-answer session. (Operator Instructions)

謝謝。現在我們將開始問答環節。（接線員指示）

This concludes our question-and-answer session. I would like to turn the conference back over to Ron Fleming for any closing remarks.

本次問答環節到此結束。我想把會議交回給 Ron Fleming，請他做任何結語。

All right. Thank you, operator. We'd just again like to thank everyone for participating on the call and your interest in Global Water. Thanks, and we look forward to speaking with you again.

好的。謝謝你，接線員。我們再次感謝各位參與本次電話會議，以及對 Global Water 的關注。謝謝，也期待再次與各位交流。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

本次電話會議已結束。感謝各位出席今天的簡報。您現在可以掛線。