Global Water Resources, Inc. (GWRI) reported its financial results for the three and nine months ended September 30, 2024, revealing a mixed performance compared to the same periods in 2023. Total revenues for the third quarter decreased to $14.3 million from $14.5 million, a decline of 1.5%, primarily due to the absence of $0.5 million in revenue related to Infrastructure Contributions for Advance (ICFA) recognized in the prior year. For the nine-month period, revenues fell to $39.4 million from $40.7 million, a decrease of approximately 3.0%.
Despite the revenue decline, GWRI's operating income for Q3 2024 increased to $4.0 million, up from $3.8 million in Q3 2023. Income before income taxes also rose to $4.0 million from $3.5 million, while net income improved to $2.9 million from $2.6 million. Basic earnings per share for Q3 2024 were $0.12, compared to $0.11 in the prior year.
For the nine-month period, however, net income decreased to $5.3 million from $6.8 million, reflecting a decline of $1.5 million. Operating income for the nine months also fell to $8.0 million from $10.6 million. The company attributed the decrease in net income to higher operating expenses, which rose to $10.2 million from $9.6 million, driven by increased personnel and general administrative costs.
On the balance sheet, total assets increased to $402.9 million as of September 30, 2024, from $361.1 million at the end of 2023. Total liabilities also rose to $354.1 million from $312.5 million, while total shareholders' equity slightly increased to $48.8 million from $48.6 million.
Strategically, GWRI is pursuing growth through acquisitions, including an asset purchase agreement to acquire seven public water systems from the City of Tucson for $8.4 million, expected to close in Q1 2025. The company also completed the acquisition of Farmers Water Co. in February 2023, adding approximately 3,300 active water service connections.
In terms of cash flow, net cash provided by operating activities for the nine months ended September 30, 2024, was $15.8 million, down from $22.7 million in the prior year. The company reported a significant increase in financing activities, with $20.7 million raised compared to $2.3 million in 2023, primarily due to the issuance of senior secured notes.
Overall, GWRI's performance reflects a combination of revenue challenges and strategic growth initiatives, positioning the company for future expansion in the Arizona water utility market.
About Global Water Resources, Inc.
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