Global Water Resources, Inc. (NASDAQ: GWRS), (TSX: GWR), a
pure-play water resource management company, reported results for
the year ended December 31, 2020. All annual comparisons are to the
previous year unless otherwise noted.
Full Year 2020 Financial
Highlights
- Total revenues
increased 8.9% to $38.6 million, driven by organic connection
growth, increased consumption, and increased rates.
- Cash and cash
equivalents totaled $18.0 million at December 31, 2020, up from
$7.5 million at December 31, 2019. The increase was primarily due
to an equity offering completed in January of 2020, along with cash
generated from operations.
- Secured a new
two-year revolving $10.0 million credit line to support the
company's growth strategy, replacing the previous credit line with
more favorable terms.
- Increased the
dividend to $0.29208 per share on an annualized basis. The first
monthly dividend payment at the new rate was paid on December 30,
2020 to holders of record on December 16, 2020.
Full Year 2020 Operational
Highlights
- Total active
connections increased 6.7% to 48,899 at December 31, 2020 from
45,823 at December 31, 2019.
- Acquired four
small water utility companies, Mirabell Water Company, Francesca
Water Company, Tortolita Water Company, and Lyn-Lee Water Company.
The utilities are located near existing service area in Pima
County, Arizona.
- Received a
Certificate of Convenience and Necessity permit from the Arizona
Corporation Commission (ACC) to exclusively provide water,
wastewater, and recycled water services to the Inland Port Arizona
Mega Site.
- Submitted rate
applications requesting a collective revenue requirement increase
of $4.6 million or 13.4%, based on a 2019 test year, which, if
approved, would be phased in over three years beginning January 1,
2022.
- Recognized as a
'Utility of the Future Today' for the company's transformational
work in community engagement, watershed stewardship and resources
recovery by a national consortium of water and conservation
organizations led by the Water Environment Federation.
- Continued to
realize benefits from bringing customer service and billing
in-house in December 2019.
Management Commentary“2020 was
an eventful year in many ways, and I am very proud of our company
and our employees for navigating both the challenges and
opportunities safely and successfully," said Global Water
Resources' president and CEO, Ron Fleming. “With respect to
employee and customer health and safety, regulatory compliance, and
overall customer service, our performance on these top mandates
throughout the year demonstrates the outstanding professionalism of
our employees."
"Financially, our strong top line was driven
primarily by organic growth, greater water consumption, and higher
rates in a metropolitan region that continues to rapidly expand,"
Fleming continued. "During the year we also strengthened our
balance sheet, which supported the resumption of our strategic
acquisition program and the purchase of four water companies in
Pima County, Arizona.
“We kicked off the new year with the signing of
a master service agreement with Nikola to provide water and
wastewater services to their zero-emission semi-truck manufacturing
plant currently under construction in Coolidge, Arizona. The
facility is located adjacent to our new Inland Port Arizona service
area, a 2,700-acre commercial mega-site under development. Nikola
and other businesses locating to the area will benefit from our
award-winning approach to Total Water Management.
“Last week, we signed agreements to acquire Twin
Hawks and Rincon Water to further expand our portfolio of water
utilities in Arizona. We believe that our approach to utility
operations at these small water utilities will help promote smart
water management practices and benefit all stakeholders
involved.
“Looking ahead, we expect our steadfast focus on
consolidating, improving, and automating water and wastewater
utilities will continue to drive strengthening performance. We
anticipate our strategic acquisition program will continue to
benefit from the highly fragmented water utility industry in
Arizona, while our strong balance sheet will help facilitate some
additional ‘tuck-in’ acquisitions we are planning to complete later
this year.
“As these facilities come under the purview of
our Total Water Management approach, we anticipate the utilities
and the communities they serve will benefit from our proven
approach to implementing efficiency upgrades, automation and
exceptional customer service, as well as the financial resources
and economies of scale we can provide.”
2020 Financial Summary
Revenues
Revenues for the full year 2020 increased $3.2
million, or 8.9%, to $38.6 million compared to $35.5 million for
the full year 2019. The increase in total revenues was driven by
increased consumption, organic growth in connections, and increased
rates.
Operating Expenses
Operating expenses increased by $2.8 million, or
9.8%, to $31.3 million in 2020, compared to $28.5 million in 2019.
The increase was driven by higher operating expenses tied to
revenue growth and higher general and administrative expenses
primarily attributed to non-cash expense associated with equity
awards and higher personnel costs offset by lower professional
fees. Lastly, the company experienced an increase in depreciation
and amortization expense due to its capital improvements program
coupled with amortization of intangible assets.
Other Expense
Total other expense increased by $1.9 million,
or 52.7%, to $5.5 million in 2020, compared to $3.6 million in
2019. The increase was primarily attributed to the receipt of the
remaining $1.0 million of proceeds in March 2019 relating to the
Loop 303 contracts, which was recorded as other income for the year
ended December 31, 2019. The increase was also due to the $0.6
million expense related to loss on asset disposals recognized
during the year ended December 31, 2020, as well as the elimination
of the FATHOM royalty.
Net Income
Net income totaled $1.1 million, or $0.05 per
share, in 2020, compared to $2.2 million, or $0.10 per share, in
2019. The decrease was primarily attributed to the final payout
pursuant to the Loop 303 contracts received in the first quarter of
2019, combined with the loss on asset disposals. The decrease was
also due to increased personnel and related expenses in 2020, which
were primarily attributed to non-cash expense associated with
equity awards.
Excluding the tax affected non-cash asset
disposal cost and restricted stock compensation expense, as well as
the Loop 303 income recognized in 2019, adjusted net income was
$2.2 million, or $0.09 per share, for the year ended December 31,
2020 compared to adjusted net income of $1.5 million, or $0.06 per
diluted share, for the same period in 2019 (see reconciliation of
adjusted net income and adjusted earnings per common share, each,
non-GAAP terms, to GAAP, below).
Adjusted EBITDA
Adjusted EBITDA increased $1.7 million, or
10.1%, to $18.0 million in 2020, compared to $16.3 million in 2019.
The increase was driven by an increase in revenue from organic
connection growth, increased consumption, and increased rates,
partially offset by an increase in operating expenses for the year
ended December 31, 2020. (See definition of Adjusted EBITDA, a
non-GAAP term, and its reconciliation to GAAP, below.)
Capital Resources Cash and cash
equivalents totaled $18.0 million at December 31, 2020, as compared
to $7.5 million at December 31, 2019. The increase was primarily
due to cash raised from the company's equity offering in January
2020. As of December 31, 2020, other than expenditures within the
normal course of business, the company has no notable near-term
cash expenditures, other than the first principle payment on its
debt obligation in the amount of $1.9 million due in December of
2021. In 2020, the company secured a new two-year revolving $10
million credit line to support its growth strategy, replacing the
previous credit line with more favorable terms. The full amount
under this new credit line remains available to-date.
Dividend Policy The company
declared a monthly cash dividend of $0.02434 per common share (or
$0.29208 per share on an annualized basis), which will be payable
on March 31, 2021 to holders of record at the close of business on
March 17, 2021.
Business OutlookGlobal Water's
near-term growth strategy for its regulated water, wastewater, and
recycled water business is driven by increased service connections,
continued operating efficiencies, and potential utility rate
increases to be approved by the Arizona Corporation Commission. The
company will also focus more on its original mission of aggregating
water and wastewater utilities, allowing the company and its
customers to realize the benefits of consolidation,
regionalization, and environmental stewardship.
Connection Rates As of December
31, 2020, active service connections increased by 3,076, or 6.7%,
to 48,899, compared to 45,823 at December 31, 2019. The increase in
active service connections is due primarily to the positive growth
in connections.
Arizona’s Growth Corridor: Positive
Population Trends The Metropolitan Phoenix area is
steadily growing due to low-cost housing, excellent weather, large
and growing universities, a diverse employment base, and low taxes.
The area's population has increased throughout 2019 and 2020. The
Employment and Population Statistics Department of the State of
Arizona predicts that Phoenix Metro will have a population of 5.7
million by 2030 and reach 6.5 million by 2040.
According to the W.P. Carey School of Business Greater Phoenix
Blue Chip Real Estate Consensus Panel (Greater Phoenix Blue Chip),
single family permits increased by 36.3% in Q4 2020 and are
expected to increase in both 2021 and 2022.
For selected jurisdictions in the Phoenix area
combined, the Homebuilders Association of Central Arizona, reported
that single family housing permits grew 18% to 28,704 units in
2020. Permits are forecasted by the Greater Phoenix Blue Chip to
increase to approximately 29,000 permits in 2021. In the City of
Maricopa, where Global Water has its largest water and wastewater
permitted utility service area, the Home Builders Association of
Central Arizona reports that permits rose 53% year-over-year.
The company believes this growth outlook creates
an opportunity to significantly increase its active service
connections and grow revenues.
Conference CallGlobal Water
Resources will hold a conference call to discuss its 2020 results
tomorrow, followed by a question and answer period.
Date: Thursday, March 4, 2021Time: 1:00 p.m.
Eastern time (10:00 a.m. Pacific time)Toll-free dial-in number:
1-855-327-6837International dial-in number:
1-631-891-4304Conference ID: 10013048
The conference call will be webcast live and
available for replay here as well as via a link in the Investors
section of the company’s website at www.gwresources.com.
Please call the conference telephone number five
minutes prior to the start time. An operator will register your
name and organization. If you have any difficulty connecting with
the conference call, please contact CMA at 1-949-432-7566.
A replay of the call will be available after
4:00 p.m. Eastern time on the same day through March 18, 2021.
Toll-free replay number:
1-844-512-2921International replay number: 1-412-317-6671Replay ID:
10013048
About Global Water
Resources
Global Water Resources, Inc. is a leading water
resource management company that owns and operates 16 utilities
which provide water, wastewater, and recycled water services. The
company’s service areas are located primarily in growth corridors
around metropolitan Phoenix. Global Water recycles nearly 1 billion
gallons of water annually.
The company has been recognized for its highly
effective implementation of Total Water Management (TWM). TWM is an
integrated approach to managing the entire water cycle by owning
and operating water, wastewater and recycled water utilities within
the same geographic area in order to maximize the beneficial use of
recycled water. TWM includes additional smart water management
programs such as remote metering infrastructure and other advanced
technologies, rate designs, and incentives that result in real
conservation. TWM helps protect water supplies in water-scarce
areas experiencing population growth. To learn more, visit
www.gwresources.com.
Cautionary Statement Regarding Non-GAAP
Measures
This press release contains certain financial
measures that are not recognized measures under accounting
principles generally accepted in the United States of America
(“GAAP”), including EBITDA, Adjusted EBITDA, adjusted net income,
and adjusted earnings per common share. EBITDA is defined for the
purposes of this press release as net income before interest,
income taxes, depreciation, and amortization. Adjusted EBITDA is
defined as EBITDA excluding the gain or loss related to (i)
nonrecurring events; (ii) option expense related to awards made to
the board of directors and management; (iii) restricted stock
expense related to awards made to executive officers; (iv) expense
related to asset disposals; and (v) equity method investment.
Adjusted net income and adjusted earnings per common share reflect
net income and earnings per common share excluding the loss related
to (i) restricted stock expense related to awards made to executive
officers; (ii) expense related to asset disposals; and (iii) Loop
303 income, as well as the tax effects of each of these items.
Management believes that EBITDA, Adjusted
EBITDA, adjusted net income, and adjusted earnings per common share
are useful supplemental measures of our operating performance and
provide our investors meaningful measures of overall corporate
performance exclusive of our capital structure and the method and
timing of certain expenditures. EBITDA is also presented because
management believes that it is frequently used by investment
analysts, investors, and other interested parties as a measure of
financial performance. Adjusted EBITDA, adjusted net income, and
adjusted earnings per common share are also presented because
management believes that these measures provide our investors
measures of our recurring core business. However, non-GAAP measures
do not have a standardized meaning prescribed by GAAP, and
investors are cautioned that non-GAAP measures, such as EBITDA,
Adjusted EBITDA, adjusted net income, and adjusted earnings per
common share, should not be construed as an alternative to net
income or loss or other income statement data (which are determined
in accordance with GAAP) as an indicator of our performance or as a
measure of liquidity and cash flows. Management's method of
calculating EBITDA, Adjusted EBITDA, adjusted net income, and
adjusted earnings per common share may differ materially from the
method used by other companies and accordingly, may not be
comparable to similarly titled measures used by other companies. A
reconciliation of EBITDA, Adjusted EBITDA, adjusted net income, and
adjusted earnings per common share to net income and earnings per
common share, the most comparable GAAP measures, as applicable, are
included in the schedules attached to this press release.
Cautionary Note Regarding
Forward-Looking Statements This press release includes
certain forward-looking statements which reflect the company's
expectations regarding future events. The forward-looking
statements involve a number of assumptions, risks, uncertainties,
and other factors that could cause actual results to differ
materially from those contained in the forward-looking statements.
These forward-looking statements include, but are not limited to,
statements concerning future net income growth, our strategy,
acquisition plans and our ability to complete additional
acquisitions, our dividend policy, trends relating to population
growth, active service connections, regulated revenue, housing
permit projections, the development of residential and commercial
properties within our service areas, the anticipated impacts from
the COVID-19 pandemic on the company, including to our business
operations, results of operations, cash flows, and financial
position, and our future responses to the COVID-19 pandemic, the
success of our rate application and the timing of any resulting
phase-in of new rates, and other statements that are not historical
facts as well as statements identified by words such as "expects",
"anticipates", "intends", "plans", "believes", "seeks",
"estimates", or the negative of these terms, or other words of
similar meaning. These statements are based on our current beliefs
or expectations and are inherently subject to a number of risks,
uncertainties, and assumptions, most of which are difficult to
predict and many of which are beyond our control. Actual results
may differ materially from these expectations due to changes in
political, economic, business, market, regulatory, and other
factors, including the duration and severity of the COVID-19
pandemic and the actions to contain the virus or treat its impact,
such as the efficacy of vaccines (particularly with respect to
emerging strains of the virus). Accordingly, investors are
cautioned not to place undue reliance on any forward-looking
statements, which reflect management’s views as of the date hereof.
Factors that may affect future results are disclosed under the
headings “Risk Factors” and “Management’s Discussion and Analysis
of Financial Condition and Results of Operations” in our filings
with the Securities and Exchange Commission (the "SEC"), which are
available at the SEC's website at www.sec.gov. This includes, but
is not limited to, our Annual Report on Form 10-K for the year
ended December 31, 2020 to be filed with the SEC. We undertake no
obligation to publicly update any forward-looking statement, except
as required by law, whether as a result of new information, future
developments or otherwise.
Company Contact:Michael J.
Liebman SVP and CFOTel (480) 999-5104
mike.liebman@gwresources.com
Investor Relations:Ron Both,
CMATel (949) 432-7566GWRS@cma.team
GLOBAL WATER RESOURCES,
INC.CONSOLIDATED BALANCE
SHEETS(in thousands, except share and per share
amounts)
|
December 31, 2020 |
|
December 31, 2019 |
ASSETS |
|
|
|
PROPERTY, PLANT AND
EQUIPMENT: |
|
|
|
Property, plant and equipment |
340,193 |
|
|
326,303 |
|
Less accumulated depreciation |
(101,302 |
) |
|
(92,749 |
) |
Net property, plant and equipment |
238,891 |
|
|
233,554 |
|
CURRENT ASSETS: |
|
|
|
Cash and cash equivalents |
18,033 |
|
|
7,513 |
|
Accounts receivable — net |
2,147 |
|
|
1,631 |
|
Customer payments in-transit |
306 |
|
|
— |
|
Due from affiliates |
— |
|
|
426 |
|
Unbilled revenue |
2,304 |
|
|
2,048 |
|
Prepaid expenses and other current assets |
665 |
|
|
675 |
|
Total current assets |
23,455 |
|
|
12,293 |
|
OTHER ASSETS: |
|
|
|
Goodwill |
4,600 |
|
|
4,398 |
|
Intangible assets — net |
11,185 |
|
|
12,554 |
|
Regulatory asset |
2,036 |
|
|
1,715 |
|
Deposits |
9 |
|
|
— |
|
Restricted cash |
3,272 |
|
|
1,582 |
|
Other noncurrent assets |
— |
|
|
17 |
|
Total other assets |
21,102 |
|
|
20,266 |
|
TOTAL ASSETS |
283,448 |
|
|
266,113 |
|
LIABILITIES AND
SHAREHOLDERS' EQUITY |
|
|
|
CURRENT LIABILITIES: |
|
|
|
Accounts payable |
531 |
|
|
992 |
|
Accrued expenses |
8,261 |
|
|
7,546 |
|
Deferred revenue |
4 |
|
|
— |
|
Customer and meter deposits |
1,558 |
|
|
1,445 |
|
Long-term debt and capital leases — current portion |
2,035 |
|
|
117 |
|
Total current liabilities |
12,389 |
|
|
10,100 |
|
NONCURRENT LIABILITIES: |
|
|
|
Long-term debt and capital leases |
112,659 |
|
|
114,664 |
|
Deferred revenue - ICFA |
17,843 |
|
|
17,372 |
|
Regulatory liability |
7,986 |
|
|
8,803 |
|
Advances in aid of construction |
76,384 |
|
|
67,621 |
|
Contributions in aid of construction — net |
14,632 |
|
|
14,520 |
|
Deferred income tax liabilities, net |
3,652 |
|
|
4,919 |
|
Acquisition liability |
1,773 |
|
|
1,773 |
|
Other noncurrent liabilities |
3,942 |
|
|
1,669 |
|
Total noncurrent liabilities |
238,871 |
|
|
231,341 |
|
Total liabilities |
251,260 |
|
|
241,441 |
|
Commitments and
contingencies |
|
|
|
SHAREHOLDERS' EQUITY: |
|
|
|
Common stock, $0.01 par value, 60,000,000 shares authorized;
22,690,477 and 21,636,420 shares issued as of December 31, 2020 and
December 31, 2019, respectively. |
227 |
|
|
216 |
|
Treasury stock, 102,711 and 99,039 shares at December 31, 2020 and
December 31, 2019, respectively. |
(1 |
) |
|
(1 |
) |
Paid in capital |
31,962 |
|
|
27,657 |
|
Retained earnings |
— |
|
|
— |
|
Total shareholders' equity |
32,188 |
|
|
24,672 |
|
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY |
283,448 |
|
|
266,113 |
|
|
|
|
|
|
|
GLOBAL WATER RESOURCES,
INC.CONSOLIDATED STATEMENTS OF
OPERATIONS(in thousands, except share and per
share amounts)
|
Year Ended December 31, |
|
2020 |
|
2019 |
REVENUES: |
|
|
|
Water services |
$ |
18,072 |
|
|
$ |
16,143 |
|
Wastewater and recycled water services |
20,394 |
|
|
19,263 |
|
Unregulated revenues |
161 |
|
|
65 |
|
Total revenues |
38,627 |
|
|
35,471 |
|
|
|
|
|
OPERATING EXPENSES: |
|
|
|
Operations and maintenance |
9,539 |
|
|
7,237 |
|
Operations and maintenance - related party |
— |
|
|
1,678 |
|
General and administrative |
12,722 |
|
|
11,242 |
|
Depreciation and amortization |
9,031 |
|
|
8,353 |
|
Total operating expenses |
31,292 |
|
|
28,510 |
|
OPERATING INCOME |
7,335 |
|
|
6,961 |
|
|
|
|
|
OTHER INCOME (EXPENSE): |
|
|
|
Interest income |
93 |
|
|
203 |
|
Interest expense |
(5,377 |
) |
|
(5,388 |
) |
Other |
(175 |
) |
|
1,309 |
|
Other - related party |
— |
|
|
301 |
|
Total other expense |
(5,459 |
) |
|
(3,575 |
) |
|
|
|
|
INCOME BEFORE INCOME TAXES |
1,876 |
|
|
3,386 |
|
INCOME TAX EXPENSE |
(771 |
) |
|
(1,162 |
) |
NET INCOME |
$ |
1,105 |
|
|
$ |
2,224 |
|
|
|
|
|
Basic earnings per common
share |
$ |
0.05 |
|
|
$ |
0.10 |
|
Diluted earnings per common
share |
$ |
0.05 |
|
|
$ |
0.10 |
|
Dividends declared per common
share |
$ |
0.29 |
|
|
$ |
0.29 |
|
|
|
|
|
Weighted average number of common
shares used in the determination of: |
|
|
|
Basic |
22,518,636 |
|
|
21,516,620 |
|
Diluted |
22,574,093 |
|
|
21,531,594 |
|
|
|
|
|
|
|
GLOBAL WATER RESOURCES,
INC.UNAUDITED CONSOLIDATED STATEMENTS OF
OPERATIONS(in thousands, except share and per
share amounts)
|
Three Months Ended December 31, |
|
|
|
|
|
2020 |
|
2019 |
|
Change |
|
% Change |
REVENUES: |
|
|
|
|
|
|
|
Water services |
$ |
4,517 |
|
|
$ |
3,799 |
|
|
$ |
718 |
|
|
18.9 |
% |
Wastewater and recycled water services |
5,207 |
|
|
4,870 |
|
|
337 |
|
|
6.9 |
% |
Unregulated revenues |
27 |
|
|
16 |
|
|
11 |
|
|
68.8 |
% |
Total revenues |
9,751 |
|
|
8,685 |
|
|
1,066 |
|
|
12.3 |
% |
|
|
|
|
|
|
|
|
OPERATING EXPENSES: |
|
|
|
|
|
|
|
Operations and maintenance |
2,383 |
|
|
1,820 |
|
|
563 |
|
|
30.9 |
% |
Operations and maintenance - related party |
— |
|
|
391 |
|
|
(391 |
) |
|
(100.0 |
)% |
General and administrative |
4,040 |
|
|
3,143 |
|
|
897 |
|
|
28.5 |
% |
Depreciation and amortization |
2,409 |
|
|
2,376 |
|
|
33 |
|
|
1.4 |
% |
Total operating expenses |
8,832 |
|
|
7,730 |
|
|
1,102 |
|
|
14.3 |
% |
OPERATING INCOME |
919 |
|
|
955 |
|
|
(36 |
) |
|
(3.8 |
)% |
|
|
|
|
|
|
|
|
OTHER INCOME (EXPENSE): |
|
|
|
|
|
|
|
Interest income |
5 |
|
|
36 |
|
|
(31 |
) |
|
(86.1 |
)% |
Interest expense |
(1,338 |
) |
|
(1,344 |
) |
|
6 |
|
|
(0.4 |
)% |
Other |
186 |
|
|
91 |
|
|
95 |
|
|
nm |
|
Other - related party |
— |
|
|
88 |
|
|
(88 |
) |
|
(100.0 |
)% |
Total other expense |
(1,147 |
) |
|
(1,129 |
) |
|
(18 |
) |
|
1.6 |
% |
|
|
|
|
|
|
|
|
INCOME/(LOSS) BEFORE INCOME
TAXES |
(228 |
) |
|
(174 |
) |
|
(54 |
) |
|
31.0 |
% |
INCOME TAX EXPENSE |
(30 |
) |
|
(76 |
) |
|
46 |
|
|
nm |
|
NET LOSS |
$ |
(258 |
) |
|
$ |
(250 |
) |
|
$ |
(8 |
) |
|
nm |
|
|
|
|
|
|
|
|
|
Basic earnings/(losses) per
common share |
$ |
(0.01 |
) |
|
$ |
(0.01 |
) |
|
|
|
|
Diluted earnings/(losses) per
common share |
$ |
(0.01 |
) |
|
$ |
(0.01 |
) |
|
|
|
|
Dividends declared per common
share |
$ |
0.07 |
|
|
$ |
0.07 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of common
shares used in the determination of: |
|
|
|
|
|
|
|
Basic |
22,587,019 |
|
|
21,536,945 |
|
|
|
|
|
Diluted |
22,712,181 |
|
|
21,597,916 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
nm - not meaningful
GLOBAL WATER RESOURCES,
INC.CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
|
Year Ended December 31, |
|
2020 |
|
2019 |
CASH FLOWS FROM OPERATING
ACTIVITIES: |
|
|
|
Net income |
$ |
1,105 |
|
|
$ |
2,224 |
|
Adjustments to reconcile net income to net cash provided by
operating activities: |
|
|
Deferred compensation |
3,286 |
|
|
2,051 |
|
Depreciation and amortization |
9,031 |
|
|
8,353 |
|
Amortization of deferred debt issuance costs and discounts |
134 |
|
|
88 |
|
Gain on sale of Loop 303 contracts |
— |
|
|
(1,000 |
) |
Loss on equity investment |
— |
|
|
79 |
|
Other gains |
552 |
|
|
5 |
|
Provision for doubtful accounts receivable |
140 |
|
|
50 |
|
Deferred income tax expense |
(1,275 |
) |
|
570 |
|
Changes in assets and liabilities |
|
|
|
Accounts receivable |
(641 |
) |
|
(193 |
) |
Other current assets |
(121 |
) |
|
(60 |
) |
Accounts payable and other current liabilities |
(176 |
) |
|
(1,584 |
) |
Other noncurrent assets |
(321 |
) |
|
75 |
|
Other noncurrent liabilities |
2,852 |
|
|
908 |
|
Net cash provided by operating activities |
14,566 |
|
|
11,566 |
|
CASH FLOWS FROM INVESTING
ACTIVITIES: |
|
|
|
Capital expenditures |
(9,131 |
) |
|
(11,187 |
) |
Cash paid for acquisitions, net of cash acquired |
(302 |
) |
|
— |
|
Cash received from the sale of Loop 303 contracts |
— |
|
|
1,000 |
|
Other cash flows from investing activities |
(9 |
) |
|
131 |
|
Net cash used in investing activities |
(9,442 |
) |
|
(10,056 |
) |
CASH FLOWS FROM FINANCING
ACTIVITIES: |
|
|
|
Dividends paid |
(6,539 |
) |
|
(6,165 |
) |
Advances in aid of construction |
3,304 |
|
|
1,199 |
|
Refunds of advances for construction |
(992 |
) |
|
(952 |
) |
Proceeds from stock option exercise |
— |
|
|
414 |
|
Principal payments under capital lease |
(109 |
) |
|
(64 |
) |
Loan borrowings |
— |
|
|
35 |
|
Loan repayments |
(22 |
) |
|
(39 |
) |
Proceeds from sale of stock |
11,738 |
|
|
— |
|
Debt issuance costs paid |
(73 |
) |
|
(40 |
) |
Payments of offering costs for sale of stock |
(221 |
) |
|
— |
|
Net cash provided by (used in) financing activities |
7,086 |
|
|
(5,612 |
) |
INCREASE (DECREASE) IN CASH, CASH
EQUIVALENTS, AND RESTRICTED CASH |
12,210 |
|
|
(4,102 |
) |
CASH, CASH EQUIVALENTS, AND
RESTRICTED CASH — Beginning of period |
9,095 |
|
|
13,197 |
|
CASH, CASH EQUIVALENTS, AND
RESTRICTED CASH – End of period |
$ |
21,305 |
|
|
$ |
9,095 |
|
|
|
|
|
|
|
|
|
Supplemental disclosure of cash flow
information:
|
Year Ended December 31, |
|
2020 |
|
2019 |
Cash and cash equivalents |
$ |
18,033 |
|
|
$ |
7,513 |
|
Restricted Cash |
3,272 |
|
|
1582 |
|
Total cash, cash equivalents, and restricted cash |
$ |
21,305 |
|
|
$ |
9,095 |
|
|
|
|
|
|
|
|
|
A reconciliation of net income to EBITDA and Adjusted EBITDA for
the three months and years ended December 31, 2020 and 2019 is as
follows (in thousands):
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
Net Income |
|
$ |
(258 |
) |
|
$ |
(250 |
) |
|
$ |
1,105 |
|
|
$ |
2,224 |
|
Income tax expense |
|
30 |
|
|
76 |
|
|
771 |
|
|
1,162 |
|
Interest income |
|
(5 |
) |
|
(36 |
) |
|
(93 |
) |
|
(203 |
) |
Interest expense |
|
1,338 |
|
|
1,344 |
|
|
5,377 |
|
|
5,388 |
|
Depreciation |
|
2,409 |
|
|
2,376 |
|
|
9,031 |
|
|
8,353 |
|
EBITDA |
|
3,514 |
|
|
3,510 |
|
|
16,191 |
|
|
16,924 |
|
Management option expense |
|
113 |
|
|
112 |
|
|
459 |
|
|
336 |
|
Loop 303 Income |
|
— |
|
|
— |
|
|
— |
|
|
(1,000 |
) |
Loss on disposal of assets |
|
— |
|
|
— |
|
|
547 |
|
|
— |
|
Restricted stock expense |
|
159 |
|
|
— |
|
|
973 |
|
|
— |
|
Jetting fee |
|
(175 |
) |
|
— |
|
|
(175 |
) |
|
— |
|
Equity investment loss |
|
— |
|
|
— |
|
|
— |
|
|
79 |
|
EBITDA Adjustments |
|
97 |
|
|
112 |
|
|
1,804 |
|
|
(585 |
) |
Adjusted
EBITDA |
|
$ |
3,611 |
|
|
$ |
3,622 |
|
|
$ |
17,995 |
|
|
$ |
16,339 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A reconciliation of net income to adjusted net
income for the three months and years ended December 31, 2020 and
2019 is as follows (in thousands):
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
Net Income |
|
$ |
(258 |
) |
|
$ |
(250 |
) |
|
$ |
1,105 |
|
|
$ |
2,224 |
|
Loop 303 income |
|
— |
|
|
— |
|
|
— |
|
|
(1,000 |
) |
Loss on disposal of assets |
|
— |
|
|
— |
|
|
547 |
|
|
— |
|
Restricted stock expense |
|
159 |
|
|
— |
|
|
973 |
|
|
— |
|
Income tax benefit (expense) on
items above |
|
(40 |
) |
|
— |
|
|
(380 |
) |
|
250 |
|
Adjusted Net
Income |
|
$ |
(139 |
) |
|
$ |
(250 |
) |
|
$ |
2,245 |
|
|
$ |
1,474 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A reconciliation of basic earnings per share to
adjusted basic earnings per share for the three months and years
ended December 31, 2020 and 2019 is as follows (in thousands):
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
Basic earnings per common share |
|
$ |
(0.01 |
) |
|
$ |
(0.01 |
) |
|
$ |
0.05 |
|
|
$ |
0.10 |
|
Loop 303 income |
|
— |
|
|
— |
|
|
— |
|
|
(0.05 |
) |
Loss on disposal of assets |
|
— |
|
|
— |
|
|
0.02 |
|
|
— |
|
Restricted stock expense |
|
— |
|
|
— |
|
|
|
0.03 |
|
|
— |
|
Income tax benefit (expense) on
items above |
|
— |
|
|
— |
|
|
(0.01 |
) |
|
0.01 |
|
Adjusted basic earnings
per common share |
|
$ |
(0.01 |
) |
|
$ |
(0.01 |
) |
|
$ |
0.09 |
|
|
$ |
0.06 |
|
|
|
|
|
|
|
|
|
|
Weighted average number of common
shares used in the determination of: |
|
|
|
|
|
|
|
|
Basic |
|
22,587,019 |
|
|
21,536,945 |
|
|
22,518,636 |
|
|
21,516,620 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A reconciliation of diluted earnings per share to adjusted
diluted earnings per share for the three months and years ended
December 31, 2020 and 2019 is as follows (in thousands):
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
Diluted earnings per common share |
|
$ |
(0.01 |
) |
|
$ |
(0.01 |
) |
|
$ |
0.05 |
|
|
$ |
0.10 |
|
Loop 303 income |
|
— |
|
|
— |
|
|
— |
|
|
(0.05 |
) |
Loss on disposal of assets |
|
— |
|
|
— |
|
|
0.02 |
|
|
— |
|
Restricted stock expense |
|
— |
|
|
— |
|
|
|
0.03 |
|
|
— |
|
Income tax benefit (expense) on
items above |
|
— |
|
|
— |
|
|
(0.01 |
) |
|
0.01 |
|
Adjusted diluted earnings
per common share |
|
$ |
(0.01 |
) |
|
$ |
(0.01 |
) |
|
$ |
0.09 |
|
|
$ |
0.06 |
|
|
|
|
|
|
|
|
|
|
Weighted average number of common
shares used in the determination of: |
|
|
|
|
|
|
|
|
Diluted |
|
22,712,181 |
|
|
21,597,916 |
|
|
22,574,093 |
|
|
21,531,594 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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