Analyst Summary:
Global Water Resources, a water resource management company, reported strong financial results for Q4 2022 and FY 2022. The company saw revenue increase by 7.1% for Q4 and 8.4% for FY 2022, largely due to an increase in active service connections and an increase in rates. Total active service connections increased by 4% to 56,270 at the end of 2022. Global Water Resources has implemented Total Water Management, an integrated approach to managing the entire water cycle, which includes owning and operating water, wastewater, and recycled water utilities within the same geographic area to maximize the beneficial use of recycled water. The company also completed the acquisition of Farmers Water Co. in Pima County, Arizona, adding 3,300 active water service connections and 21.5 square miles of Certificate of Convenience and Necessity service area. Forward looking statements by management indicate that Global Water Resources plans to continue its growth strategy by increasing service connections, improving operating efficiencies and increasing utility rates as approved by the Arizona Corporation Commission. The company also plans to continue aggregating water and wastewater utilities to realize the benefits of consolidation, regionalization, and proactive environmental stewardship.