Global Water Resources, Inc. (GWRS) Bundle
An Overview of Global Water Resources, Inc. (GWRS)
General Summary of Global Water Resources, Inc. (GWRS)
Global Water Resources, Inc. (GWRS) is a publicly traded water resource management company headquartered in Phoenix, Arizona. Established in 2004, the company focuses on providing water, wastewater, and water recycling services in the growing communities of Arizona. GWRS operates through several subsidiaries, including Global Water - Rincon Water Company, Global Water - Farmers Water Company, and others.
As of 2024, GWRS offers a range of services, including:
- Water service
- Wastewater service
- Recycled water service
For the nine months ended September 30, 2024, GWRS reported total revenues of approximately $39.4 million, which represents a decrease from $40.7 million in the same period of 2023. The decline in revenue was primarily due to the absence of prior year non-recurring ICFA related revenue of approximately $2.8 million, although this was partially offset by a $1.6 million increase in regulated revenue driven by organic connection growth.
Company's Financial Performance in the Latest Financial Reports
In the latest financial reports, GWRS demonstrated a mixed performance. For the nine months ended September 30, 2024, the company reported:
| Financial Metric | 2024 (9 Months) | 2023 (9 Months) |
|---|---|---|
| Total Revenues | $39,441,000 | $40,660,000 |
| Operating Income | $8,048,000 | $10,624,000 |
| Net Income | $5,346,000 | $6,839,000 |
| Basic Earnings per Share | $0.22 | $0.28 |
The decrease in net income was attributed to lower revenues and higher operating expenses, which totaled $31.4 million for the nine months ended September 30, 2024, compared to $30.0 million in 2023. The primary contributors to operating expenses included:
- Operations and maintenance: $10.2 million (2024) vs. $9.6 million (2023)
- General and administrative: $12.3 million (2024) vs. $11.9 million (2023)
As of September 30, 2024, GWRS had 24,221,626 shares of common stock outstanding, with a diluted earnings per share of $0.22.
Introduction to Global Water Resources, Inc. as a Leader in the Industry
Global Water Resources, Inc. is recognized as one of the leading companies in the water management sector within Arizona, serving a growing customer base through its commitment to sustainable resource management. The company has effectively positioned itself to address the increasing demand for water services in rapidly developing areas.
GWRS continues to invest in infrastructure improvements and technology upgrades, enhancing its operational efficiency and service delivery. The company’s strategic focus on regulated revenue growth and organic connection increases has solidified its status as a reliable provider in the market. To learn more about the success factors contributing to GWRS’s leadership in the industry, further details can be explored below.
Mission Statement of Global Water Resources, Inc. (GWRS)
Company's Mission Statement Overview
The mission statement of Global Water Resources, Inc. (GWRS) serves as a guiding framework for the company, outlining its purpose and strategic direction. It emphasizes the company’s commitment to providing high-quality water and wastewater services while ensuring sustainability and environmental responsibility. This mission is crucial as it informs stakeholders of the company's core objectives and operational ethos.
Core Component 1: Commitment to Quality Service
GWRS prioritizes delivering exceptional water and wastewater services to its customers. For the nine months ended September 30, 2024, the company reported total revenues of approximately $39.4 million, with water service revenue reaching $19.4 million and wastewater and recycled water service revenue totaling $20.1 million . This reflects a focus on maintaining high service quality, evidenced by a 5.0% increase in active wastewater connections, rising from 27,060 to 28,425 during the same period .
Core Component 2: Environmental Stewardship
GWRS is committed to sustainable practices that protect and preserve water resources. In 2024, the company has invested significantly in infrastructure improvements, including a $2.4 million loan agreement with WIFA aimed at enhancing utility infrastructure . Additionally, GWRS is implementing advanced metering infrastructure with a $1.6 million grant from WIFA to replace manual read meters, further demonstrating its dedication to environmental sustainability.
Core Component 3: Community Engagement
Engaging with local communities is a cornerstone of GWRS’s mission. The company has seen a 4.4% increase in active water connections, indicating successful outreach and service expansion efforts . Furthermore, GWRS’s commitment to community welfare is reflected in its dividend program, with a recent increase to $0.08 per share, reinforcing its dedication to returning value to shareholders while supporting community initiatives .
| Metric | 2024 (Nine Months Ended) | 2023 (Nine Months Ended) | Change (%) |
|---|---|---|---|
| Total Revenues | $39.4 million | $40.7 million | -3.0% |
| Water Service Revenue | $19.4 million | $18.9 million | +2.5% |
| Wastewater and Recycled Water Revenue | $20.1 million | $19.0 million | +5.8% |
| Active Water Connections | 35,464 | 33,976 | +4.4% |
| Active Wastewater Connections | 28,425 | 27,060 | +5.0% |
Vision Statement of Global Water Resources, Inc. (GWRS)
Vision Statement Overview
Global Water Resources, Inc. (GWRS) aims to be a leader in sustainable water management, ensuring reliable water and wastewater services while promoting environmental stewardship and community engagement. This vision reflects GWRS's commitment to providing high-quality services that meet the growing demands of their service areas.
Commitment to Sustainability
GWRS emphasizes sustainable practices in its operations, aiming to minimize environmental impacts while maximizing resource efficiency. The company has invested in infrastructure improvements, such as a recent $2.4 million loan agreement with the Water Infrastructure Finance Authority (WIFA) to enhance utility infrastructure. This initiative aligns with their vision to create a sustainable future for water resources.
Customer-Centric Approach
GWRS is dedicated to enhancing customer satisfaction through reliable service delivery. As of September 30, 2024, the company reported an increase in active water connections by 4.4%, totaling 35,464, which reflects organic growth in their service areas. This growth underscores the company's vision of expanding its customer base while maintaining high service standards.
Innovative Water Management Solutions
The company is focused on implementing innovative solutions for water management. For instance, GWRS has increased its recycled water service revenue by 5.8% year-over-year, reaching $20.1 million for the nine months ended September 30, 2024. This demonstrates their commitment to developing efficient water reuse strategies, a key component of their long-term vision.
Financial Performance and Growth
In terms of financial health, GWRS reported revenues of $39.4 million for the nine months ended September 30, 2024, a slight decrease from $40.7 million in the previous year. However, operational efficiencies have been implemented, as evidenced by operating expenses rising only marginally to $31.4 million from $30.0 million in the prior year. This careful management aligns with their vision of sustainable growth and profitability.
Community Engagement and Support
GWRS’s vision also includes active engagement with the communities it serves. The company’s efforts in community outreach and education about water conservation reflect its aim to foster a culture of sustainability among its customers. This commitment is vital for building trust and ensuring long-term customer relationships.
| Metric | 2024 | 2023 |
|---|---|---|
| Active Water Connections | 35,464 | 33,976 |
| Total Revenues (in millions) | $39.4 | $40.7 |
| Operating Expenses (in millions) | $31.4 | $30.0 |
| Recycled Water Service Revenue (in millions) | $20.1 | $19.0 |
Regulatory Compliance and Governance
GWRS operates in a regulated environment, and compliance with regulatory requirements is a cornerstone of its vision. The company maintains a debt service coverage ratio of at least 1.10 to 1.00, ensuring financial stability and adherence to regulations. This commitment to governance supports the overall vision of a reliable and responsible water utility.
Future Outlook
Looking ahead, GWRS is poised for growth through strategic investments and community-focused initiatives. The recent issuance of $20 million in Senior Secured Notes at a 6.91% interest rate will fund infrastructure improvements and operational expansions. This financial strategy is aligned with their vision of evolving into a more sustainable and customer-oriented utility provider.
Core Values of Global Water Resources, Inc. (GWRS)
Core Value: Sustainability
Sustainability is at the heart of Global Water Resources, Inc. (GWRS) operations. The company is committed to providing sustainable water solutions while minimizing environmental impact. This commitment is evident in their infrastructure projects and resource management practices.
In 2024, GWRS received a $1.6 million grant from the Water Infrastructure Finance Authority (WIFA) to replace manual read meters with advanced metering infrastructure (AMI) smart meters, which are expected to improve water efficiency and reduce waste.
| Project | Funding Amount | Expected Benefits |
|---|---|---|
| AMI Smart Meter Installation | $1.6 million | Improved efficiency, reduced waste |
Core Value: Community Engagement
Community Engagement is another essential value for GWRS, emphasizing the importance of building strong relationships with the communities they serve. The company actively involves local stakeholders in decision-making processes and encourages public feedback.
For instance, GWRS plans to acquire seven isolated public water systems from the City of Tucson, which will enhance service to approximately 2,200 water service connections. The acquisition price is set at $8.4 million, demonstrating the company's commitment to expanding access to water resources.
| Acquisition | Service Connections | Purchase Price |
|---|---|---|
| Isolated Public Water Systems | 2,200 | $8.4 million |
Core Value: Innovation
Innovation drives GWRS to continuously improve its services and operational efficiencies. The company invests in new technologies and practices that enhance water management.
In 2024, GWRS entered into a loan agreement with WIFA for $2.4 million to improve utility infrastructure, of which $0.7 million is forgivable. This funding supports innovations such as enhancements to fluoride treatment systems.
| Loan Purpose | Loan Amount | Forgivable Amount |
|---|---|---|
| Utility Infrastructure Improvement | $2.4 million | $0.7 million |
Core Value: Customer Commitment
Customer Commitment remains a cornerstone of GWRS's philosophy. The company strives to provide reliable, high-quality service to all customers, ensuring their needs are met efficiently.
As of September 30, 2024, GWRS reported an increase in active water connections by 4.7% to 63,889, reflecting the company's dedication to customer satisfaction and service expansion.
| Metric | 2024 Value | 2023 Value |
|---|---|---|
| Active Water Connections | 63,889 | 61,036 |
Core Value: Financial Responsibility
Financial Responsibility is crucial for GWRS to maintain its operations and continue investing in infrastructure and community projects. The company demonstrates this through prudent financial management and strategic investments.
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 of 2023, largely due to earlier revenue recognition that did not recur.
| Financial Metric | 2024 Value | 2023 Value |
|---|---|---|
| Total Revenues | $39.4 million | $40.7 million |
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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.