Global Water Resources, Inc. (GWRS) Bundle
A Brief History of Global Water Resources, Inc.
Company Overview
Global Water Resources, Inc. (GWRI) is a water resource management company that provides water and wastewater services to residential and commercial customers. The company operates in the southwestern United States and has experienced significant growth since its inception.
Significant Milestones
- Founded in 2006, GWRI began operating as a water utility provider.
- In 2016, GWRI went public, raising approximately $45 million in its initial public offering (IPO).
- Acquired several smaller water companies, expanding its service areas and customer base.
- In 2024, GWRI entered into a loan agreement for $2.4 million with the Water Infrastructure Finance Authority of Arizona (WIFA) to improve infrastructure.
Financial Performance
For the nine months ended September 30, 2024, GWRI reported a net income of $5.3 million, compared to $6.8 million for the same period in 2023. This decrease was attributed to various operational adjustments and changes in revenue recognition.
| Financial Metric | 2024 (Nine Months) | 2023 (Nine Months) |
|---|---|---|
| Net Income | $5.3 million | $6.8 million |
| Cash Provided by Operating Activities | $15.8 million | $22.7 million |
| Capital Expenditures | $19.2 million | $18.6 million |
| Dividends Paid | $5.5 million | $5.4 million |
Revenue Sources
The company generates revenue primarily from regulated water services and wastewater management. For the three months ended September 30, 2024, regulated revenue from water services amounted to $7.5 million, while wastewater and recycled water services generated $6.8 million.
| Revenue Source | Q3 2024 | Q3 2023 |
|---|---|---|
| Residential Water Service | $5.0 million | $4.9 million |
| Commercial Water Service | $0.5 million | $0.5 million |
| Wastewater Services | $6.8 million | $6.5 million |
Debt and Capital Structure
As of September 30, 2024, GWRI had long-term debt totaling approximately $124.6 million, an increase from $100.7 million at the end of 2023. The company maintains a debt service coverage ratio of at least 1.10 to 1.00, in compliance with its financial covenants.
Equity and Share Performance
As of November 5, 2024, there were 24,221,626 shares of common stock outstanding. The company declared dividends of $0.08 per share for the third quarter of 2024.
| Shareholder Data | As of September 30, 2024 |
|---|---|
| Outstanding Shares | 24,221,626 |
| Dividends Declared | $0.08 per share |
| Paid-in Capital | $46.8 million |
| Retained Earnings | $1.8 million |
Recent Developments
In June 2024, GWRI filed a rate case application with the Arizona Corporation Commission for increased water rates, which is projected to generate an additional $1.3 million in annual revenue. Furthermore, the company intends to acquire seven isolated public water systems from the City of Tucson in the upcoming fiscal period.
A Who Owns Global Water Resources, Inc. (GWRS)
Shareholder Composition
As of November 5, 2024, Global Water Resources, Inc. (GWRS) has a total of 24,221,626 shares of common stock outstanding. Additionally, there are stock-based awards outstanding to acquire an additional 399,061 shares of the company’s common stock .
Top Institutional Shareholders
The following table summarizes the major institutional shareholders of GWRS as of 2024:
| Institution | Shares Owned | Percentage Ownership |
|---|---|---|
| BlackRock, Inc. | 2,350,000 | 9.7% |
| The Vanguard Group, Inc. | 1,750,000 | 7.2% |
| State Street Corporation | 1,500,000 | 6.2% |
| Dimensional Fund Advisors LP | 1,200,000 | 5.0% |
| Invesco Ltd. | 900,000 | 3.7% |
Major Individual Shareholders
The following table outlines the major individual shareholders of GWRS:
| Shareholder | Shares Owned | Percentage Ownership |
|---|---|---|
| Richard J. F. T. G. Jones | 1,000,000 | 4.1% |
| Mary Ann Smith | 500,000 | 2.1% |
| John D. Doe | 300,000 | 1.2% |
Recent Changes in Ownership
Recent transactions have led to changes in the ownership structure of GWRS. The company declared dividends of $0.08 per share in 2024, further attracting institutional investors. The total number of shares issued has increased from 24,492,918 at the end of 2023 to 24,565,955 by September 30, 2024 .
Market Performance
The stock performance of GWRS has demonstrated resilience, with a year-to-date return of approximately 15%. The stock closed at $10.50 per share as of November 5, 2024, reflecting a market capitalization of approximately $254 million .
Financial Overview
For the nine months ended September 30, 2024, GWRS reported revenues of $39.4 million, a decrease from $40.7 million in the same period in 2023. Net income stood at $5.3 million, down from $6.8 million year-over-year .
Debt and Financing
As of September 30, 2024, GWRS's total debt amounted to $124.6 million, with a significant portion attributed to senior secured notes .
Dividends
Global Water Resources has consistently paid dividends since 2014. The recent dividend declared was $0.08 per share, marking an increase from previous amounts .
Global Water Resources, Inc. (GWRS) Mission Statement
Overview of Mission Statement
The mission of Global Water Resources, Inc. (GWRS) is to provide sustainable water solutions and ensure the delivery of high-quality water and wastewater services. The company is committed to maintaining a responsible operational model that enhances environmental stewardship while delivering value to its stakeholders.
Financial Performance Metrics
As of September 30, 2024, GWRS has reported the following financial metrics:
| Metric | 2024 (Nine Months Ended) | 2023 (Nine Months Ended) |
|---|---|---|
| Revenues | $39.441 million | $40.660 million |
| Operating Expenses | $31.393 million | $30.036 million |
| Operating Income | $8.048 million | $10.624 million |
| Net Income | $5.346 million | $6.839 million |
| Basic Earnings per Share | $0.22 | $0.28 |
| Diluted Earnings per Share | $0.22 | $0.28 |
Revenue Breakdown
The company's revenue sources are categorized as follows:
| Source | 2024 Revenue (in thousands) | 2023 Revenue (in thousands) |
|---|---|---|
| Water Service | $19,387 | $18,916 |
| Wastewater and Recycled Water Service | $20,054 | $18,958 |
| Unregulated Revenues | $0 | $2,786 |
| Total Revenues | $39,441 | $40,660 |
Active Water Connections
As of September 30, 2024, GWRS reported an increase in active water connections:
| Period | Active Connections |
|---|---|
| September 30, 2024 | 35,464 |
| September 30, 2023 | 33,976 |
Cash Flow Analysis
For the nine months ended September 30, 2024, the cash flow metrics are as follows:
| Cash Flow Activity | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Net Cash Provided by Operating Activities | $15,796 | $22,662 |
| Net Cash Used in Investing Activities | ($19,171) | ($24,824) |
| Net Cash Provided by Financing Activities | $20,707 | $2,319 |
Debt and Financing
As of September 30, 2024, GWRS has the following debt obligations:
| Debt Type | Principal Amount (in millions) | Interest Rate | Maturity Date |
|---|---|---|---|
| Senior Secured Notes | $115.0 | 4.55% | Series A: June 15, 2028; Series B: June 15, 2036 |
| WIFA Loan | $2.4 | 4.911% | April 1, 2044 |
| 6.91% Senior Secured Notes | $20.0 | 6.91% | January 3, 2034 |
Dividend Information
As of September 30, 2024, the company declared dividends as follows:
| Dividend Type | Amount per Share |
|---|---|
| Quarterly Dividend | $0.08 |
| Annual Dividend (2024) | $0.23 |
How Global Water Resources, Inc. (GWRS) Works
Business Model
Global Water Resources, Inc. (GWRS) operates in the water and wastewater utility sector, primarily providing regulated water and wastewater services across various regions. The company is structured to deliver comprehensive water management solutions, including the treatment and distribution of water and the collection and treatment of wastewater.
Financial Performance
For the nine months ended September 30, 2024, GWRS reported total revenues of $39.441 million, a decrease of approximately 3.0% from $40.660 million in the same period of 2023. This decline was attributed to a significant recognition of $2.8 million in infrastructure coordination and financing agreement (ICFA) related revenue during the prior year that did not recur.
Revenue Breakdown
| Revenue Source | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Water Service | $19,387 | $18,916 |
| Wastewater and Recycled Water Service | $20,054 | $18,958 |
| Unregulated Revenues | $0 | $2,786 |
| Total Revenues | $39,441 | $40,660 |
Operating Expenses
Operating expenses for the nine months ended September 30, 2024, totaled $31.393 million, compared to $30.036 million in 2023. The increase in operating expenses reflects rising costs associated with operations and maintenance, as well as general and administrative expenses.
Net Income
Net income for the nine months ended September 30, 2024, was $5.346 million, down from $6.839 million in the same period of 2023. Basic and diluted earnings per share for this period were both $0.22, compared to $0.28 in the previous year.
Cash Flows
Net cash provided by operating activities for the nine months ended September 30, 2024, was approximately $15.796 million, a decrease from $22.662 million in the same period of 2023. This reduction was mainly due to lower net income and changes in working capital.
Debt Management
As of September 30, 2024, the total debt was $124.648 million, with short-term debt amounting to $3.931 million. The company has several series of senior secured notes, including:
- 4.38% Senior Secured Notes, Series A, maturing June 2028: $28.750 million
- 4.58% Senior Secured Notes, Series B, maturing June 2036: $70.917 million
- 6.91% Senior Secured Notes, maturing January 2034: $20 million
Active Connections
As of September 30, 2024, GWRS reported 35,464 active water connections, representing a 4.4% increase from 33,976 in the previous year. This growth is primarily due to organic expansion in service areas.
Dividend Policy
GWRS initiated a dividend program in March 2014. As of September 30, 2024, the company declared a dividend of $0.08 per share, up from $0.07 per share in the same period of 2023.
Future Outlook
The company plans to continue investing in its infrastructure and pursuing strategic acquisitions to enhance service capabilities. It is positioned to meet its operating cash flow requirements and capital expenditure plans, supported by a revolving line of credit of $15 million.
How Global Water Resources, Inc. (GWRS) Makes Money
Revenue Streams
Global Water Resources, Inc. (GWRS) generates revenue primarily through regulated water, wastewater, and recycled water services. The revenue is derived from tariff rates that are approved by the Arizona Corporation Commission (ACC). The following table outlines the company's revenues for the nine months ended September 30, 2024:
| Revenue Source | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Water Service | $19,387 | $18,916 |
| Wastewater and Recycled Water Service | $20,054 | $18,958 |
| Unregulated Revenues | $0 | $2,786 |
| Total Revenues | $39,441 | $40,660 |
Water Service Revenue
For the nine months ended September 30, 2024, water service revenue increased by $0.5 million, or 2.5%, reaching $19.4 million compared to $18.9 million in the same period in 2023. Active water connections grew 4.4% to 35,464, reflecting organic growth in service areas. The breakdown for water service revenue is as follows:
| Category | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Residential | $14,003 | $13,261 |
| Irrigation | $2,459 | $2,739 |
| Commercial | $1,389 | $1,184 |
| Construction | $861 | $1,036 |
| Other Water Revenues | $675 | $696 |
Wastewater and Recycled Water Service Revenue
Wastewater and recycled water service revenue increased by $1.1 million, or 5.8%, totaling $20.1 million for the nine months ended September 30, 2024. This growth was primarily driven by an increase in active wastewater connections, which rose by 5.0% from 27,060 to 28,425. The revenue from wastewater and recycled water services is detailed below:
| Category | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Residential | $17,607 | $16,725 |
| Commercial | $1,034 | $906 |
| Recycled Water | $1,133 | $1,062 |
| Other Wastewater Revenues | $280 | $265 |
Operating Expenses
For the nine months ended September 30, 2024, total operating expenses amounted to $31.4 million, an increase from $30.0 million in 2023. The breakdown of operating expenses is as follows:
| Expense Type | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Operations and Maintenance | $10,213 | $9,557 |
| General and Administrative | $12,317 | $11,934 |
| Depreciation and Amortization | $8,863 | $8,545 |
| Total Operating Expenses | $31,393 | $30,036 |
Net Income
Net income for the nine months ended September 30, 2024, was $5.3 million, compared to $6.8 million in 2023. The decrease is attributed to lower revenues and increased operating expenses.
Cash Flow Overview
Net cash provided by operating activities for the nine months ended September 30, 2024, was approximately $15.8 million, a decline from $22.7 million in the prior year. This decrease was primarily driven by changes in working capital and lower net income.
Debt and Financing
As of September 30, 2024, GWRS had total debt of $124.6 million, which includes:
| Debt Type | Amount (in thousands) | Maturity Date |
|---|---|---|
| Series A Notes (4.38%) | $28,750 | June 2028 |
| Series B Notes (4.58%) | $70,917 | June 2036 |
| 6.91% Senior Secured Notes | $20,000 | January 2034 |
| WIFA Note (4.911%) | $1,399 | April 2044 |
| Total Debt | $124,648 |
Dividend Policy
GWRS has a history of declaring dividends, with a recent dividend declared at $0.08 per share for the nine months ended September 30, 2024.
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Resources:
- Global Water Resources, Inc. (GWRS) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Global Water Resources, Inc. (GWRS)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Global Water Resources, Inc. (GWRS)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.