- Completed Disposition of Valencia -
PHOENIX, AZ, Nov. 12, 2015 /CNW/ - GWR Global Water
Resources Corp. (the "Company") (TSX: GWR) (OTCQX: GWGWF) today
reported its financial results for the quarter ended September 30, 2015. See information below
regarding today's conference call information.
The Company was established to acquire an equity interest in
Global Water Resources, Inc. ("Global Water"). Global Water
is a U.S., pure-play, water resource management company based in
Phoenix, Arizona, that owns and
operates water, wastewater and recycled water utilities. The
Company accounts for its investment in Global Water using the
equity method of accounting; therefore, the financial information
of Global Water is not consolidated with that of the Company. All
references in this press release to consolidated financial
information refer to Global Water on a consolidated basis and,
unless otherwise indicated, all amounts are in U.S. dollars.
Third Quarter and Year-To-Date Highlights
- Completed the disposition of Valencia Water Company, Inc.
("Valencia") to the City of Buckeye for $55
million on closing and an additional $108,000 as a result of a working capital
adjustment;
- In conjunction with the disposition of Valencia, paid off MidFirst debt of
$21.3 million;
- Issued a special cash dividend of CAD $1.55 per share paid to shareholders on
August 12, 2015;
- Increased the monthly dividend to CAD $0.0283 per share (an annualized amount of CAD
$0.3396 per Share), marking the third
increase since the dividend was initiated in March 2014;
- Excluding impacts of Valencia
operations, grew active service connections by 743 to 37,638 as of
September 30, 2015, compared with
36,895 as of December 31, 2014. This
represents an annualized increase of 2.7%;
- Excluding impacts of the Valencia operations, increased revenues by
$618,000 (or 8.7%) to $7.8 million in Q3-2015 compared to $7.1 million Q3-2014. This increase is primarily
driven by new rates, organic growth and lower precipitation in
Q3-2015 compared to Q3-2014, and;
- Excluding impacts of the Valencia operations, increased Adjusted EBITDA
by $700,000 (or 20%) going to
$4.1 million in Q3-2015 compared to
$3.4 million in Q3-2014.
"We achieved meaningful results in the third quarter of 2015,
adding to what has already been a very strong year," said
Ron Fleming, President and CEO of
Global Water. "The disposition of Valencia and subsequent pay-down of debt,
combined with strong top-line growth for the remaining utilities,
has increased our margins and improved our cash flows."
"These achievements allowed us to issue a special dividend and
an increased recurring monthly dividend," continued Mr. Fleming.
"We are committed to our long-term strategy for growth and remain
confident that we are well-positioned for positive future
results."
Summary of Financial Results
Consolidated Revenues
Consolidated revenues for the three and nine months ended
September 30, 2015, were $8.1 million and $24.8
million, respectively, compared to $8.8 million and $24.6
million for the three and nine months ended September 30, 2014.
Excluding impacts of the Valencia operations, consolidated revenues for
the three and nine months ended September
30, 2015, were $7.8 million
and $21.6 million, respectively,
compared to $7.1 million and
$20.2 million for the three and nine
months ended September 30,
2014.
Primary drivers for the increase in revenue (excluding impacts
of Valencia operations) are the
rate increases, customer growth (2.7% annualized) and lower
precipitation in Q3-2015 compared to Q3-2014.
Operating Expenses
Operating expenses for the three and nine months ended
September 30, 2015 were $6.1 million and $19.7
million, respectively, compared to $6.8 million and $21.4
million for the three and nine months ended September 30, 2014. Note that the nine
months ended September 30, 2014
amount excludes the $50.7 million
one-time gain associated with the regulatory order.
The $700,000 and $1.7 million decreases in operating expenses for
the three and nine month periods, respectively, are primarily
attributed to lower Operations and Maintenance costs as a result of
the Valencia disposition.
Net Income
Global Water realized a net income of $21.9 million and $21.4
million, respectively, for the three and nine months ended
September 30, 2015, compared to a net
loss of $26,000 and an income of
$65.8 million for the three and nine
months ended September 30, 2014.
The net income in the three months ended September 30, 2015 compared to a net loss in the
same period last year is primarily attributed to the gain recorded
in relation to the Valencia
disposition. The large variance in net income for the
nine-month periods is primarily due to the gain on the regulatory
order and tax benefit recorded in 2014 offset by the gain on the
Valencia disposition in 2015.
EBITDA
EBITDA for the three and nine months ended September 30, 2015 was $47.4 million and $55.3
million, respectively, compared to $4.3 million and $62.6
million for the three and nine months ended September 30, 2014. The change in EBITDA for the
three months ended September 30, 2015
was attributed to the $43.4 million
gain recorded in relation to the Valencia disposition.
Adjusted EBITDA for the three and nine months ended September 30, 2015 was $4.4 million and $12.3
million, respectively, compared to $4.4 million and $10.4
million for the three and nine months ended September 30, 2014.
Removing impacts of the Valencia operations Adjusted EBITDA increased
by $700,000 (or 20%) going to
$4.1 million in Q3-2015 compared to
$3.4 million in Q3-2014. This
increase is driven by strong top-line growth and effectively
managing controllable operating expenses.
Business Outlook
Global Water's growth strategy for its regulated water,
wastewater and recycled water business is driven by increased
service connections, continued operating efficiencies and utility
rate increases approved by the ACC.
Connection Rates
Excluding impacts of Valencia
operations, the third quarter of 2015 continued to show positive
growth in new connections and re-establishing service on previously
vacant homes. As of September 30,
2015, active service connections increased by 743 to 37,638
as of September 30, 2015, compared
with 36,895 as of December 31, 2014.
This represents an annualized increase of 2.7%.
The Company's vacancy rate is now at 2.5% after reaching a peak
of 11.2% in February of 2009.
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. Its
population has increased throughout 2014 and into 2015, and it
continues to grow.
The Arizona Department of Administration – Office of Employment
and Population Statistics ("ADOA-EPS") predicts that Maricopa County will have a population of 4.5
million by 2020. This rate of growth, combined with six more years
of rate phase-ins, will create the opportunity for Global Water to
meaningfully increase its active connections and regulated revenues
for the foreseeable future.
Strategic Initiatives
The Board of Directors has directed management to take steps to
advance a series of transactions aimed at, among other things,
simplifying the Company's capital structure and improving
liquidity. These transactions, subject to all required approvals
and final Board approval, would result in a merger of the Company
into Global Water, a listing on a US stock exchange, refinancing of
outstanding debt and a potential issuance of equity. There can be
no assurance that any or all of these transactions will be
completed.
Conference Call
Global Water will conduct a conference call on Thursday, November 12, 2015, at 1:00 p.m. EST. Interested persons may
access the call by dialing (647) 427-7450 or toll free at (888)
231-8191. Shortly after the conclusion of the call, a replay
will be available by dialing (416) 849-0833 or (855)
859-2056. The passcode is 58432275. The replay will expire at
midnight (EST) on November 26,
2015. A copy of the transcript and an audio replay of the
conference call, once available, will be archived within the
investor section of the Company's web site at
www.gwresources.com.
About GWR Global Water Resources Corp.
The Company was incorporated in British Columbia to acquire shares of U.S.
based Global Water and to actively participate in the management,
business and operations of Global Water through its representation
on the board of directors of Global Water and its shared management
of Global Water.
About Global Water
Global Water is a pure-play, high-growth water resources company
located in Phoenix, Arizona, that
owns and operates regulated water, wastewater and recycled water
utilities in the metropolitan Phoenix area.
Cautionary Note Regarding Forward-Looking Statements
This press release includes certain forward-looking
statements. These forward-looking statements include, but are
not limited to, our plans, objectives, expectations and intentions,
and other statements contained in this release 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 significant
uncertainties and changes in circumstances, many of which are
beyond our control. Actual results may differ materially from
these expectations due to changes in global political, economic,
business, competitive, market and regulatory factors and other
factors discussed under the heading "Risk Factors" in the Company's
most recent Annual Information Form. 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.
Cautionary Note Regarding Non-GAAP Measures
This press release contains references to "EBITDA". EBITDA is
defined for the purposes of this press release as income or loss
from continuing operations before interest expense, income tax
expense, depreciation and amortization. Management believes that
EBITDA is a useful supplemental measure of Global Water's operating
performance. However, EBITDA is not a recognized earnings
measure under U.S. GAAP or Canadian GAAP and do not have a
standardized meaning prescribed by U.S. GAAP or Canadian
GAAP. Therefore, EBITDA may not be comparable to similar
measures presented by other issuers. EBITDA should not be
construed as an alternative to net income or loss. See
"Consolidated Statements of Operations for the eight quarters ended
December 31, 2014" in the attached
schedules for a reconciliation of EBITDA to net income, the nearest
comparable U.S, GAAP measure.
|
GWR GLOBAL WATER
RESOURCES CORP.
BALANCE SHEETS
As of September 30, 2015 and December 31, 2014
(Unaudited)
|
|
|
|
|
|
|
|
|
|
September 30,
2015
|
|
December 31,
2014
|
|
|
|
(in thousands of US$,
except share data)
|
|
ASSETS
|
|
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
683
|
|
$
189
|
|
Other current
assets
|
|
36
|
|
18
|
|
Total current
assets
|
|
719
|
|
207
|
|
|
|
|
|
|
Equity method
investment
|
|
56,696
|
|
59,794
|
|
TOTAL
ASSETS
|
|
$
57,415
|
|
$
60,001
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
LIABILITIES:
|
|
|
|
|
|
Dividends payable,
accounts payable and accrued expenses
|
|
$
293
|
|
$
212
|
|
Due to related
party
|
|
516
|
|
—
|
|
Other noncurrent
liabilities
|
|
237
|
|
155
|
|
Deferred tax
liability
|
|
927
|
|
1,666
|
|
Total
liabilities
|
|
1,973
|
|
2,033
|
|
|
|
|
|
|
COMMITMENTS AND
CONTINGENCIES (see Note 9)
|
|
|
|
|
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY:
|
|
|
|
|
|
Common stock,
unlimited shares authorized, 8,753,948 and 8,754,612 shares
issued
and outstanding at
September 30, 2015 and December 31, 2014,
respectively
|
|
55,669
|
|
55,807
|
|
Retained
earnings
|
|
(227)
|
|
2,161
|
|
Total shareholders'
equity
|
|
55,442
|
|
57,968
|
|
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
$
57,415
|
|
$
60,001
|
|
GWR GLOBAL WATER
RESOURCES CORP.
STATEMENTS OF OPERATIONS
For the Three and Nine Months Ended September 30, 2015 and 2014
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
(in thousands of US$,
except share and per share data)
|
|
GAIN (LOSS) FROM
EQUITY INVESTMENT
|
|
$ 10,520
|
|
$
(13)
|
|
$ 10,274
|
|
$ 31,628
|
|
OPERATING
EXPENSES
|
|
829
|
|
131
|
|
1,325
|
|
539
|
|
OPERATING INCOME
(LOSS)
|
|
9,691
|
|
(144)
|
|
8,949
|
|
31,089
|
|
INCOME (LOSS) BEFORE
INCOME TAXES
|
|
9,691
|
|
(144)
|
|
8,949
|
|
31,089
|
|
INCOME TAX BENEFIT
(EXPENSE)
|
|
707
|
|
(250)
|
|
739
|
|
(1,776)
|
|
NET INCOME
(LOSS)
|
|
$ 10,398
|
|
$ (394)
|
|
$ 9,688
|
|
$ 29,313
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE
SHARES:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
8,755,458
|
|
8,754,612
|
|
8,751,936
|
|
8,754,612
|
|
Diluted
|
|
8,755,472
|
|
8,754,612
|
|
8,751,948
|
|
8,765,026
|
|
|
|
|
|
|
|
|
|
|
EARNINGS (LOSS) PER
SHARE:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
1.19
|
|
$ (0.04)
|
|
$
1.11
|
|
$
3.35
|
|
Diluted
|
|
$
1.19
|
|
$ (0.04)
|
|
$
1.11
|
|
$
3.34
|
|
|
|
|
|
|
|
|
|
|
GLOBAL WATER
RESOURCES, INC.
CONSOLIDATED BALANCE SHEETS
As of September 30, 2015 and December 31, 2014
(Unaudited)
|
|
|
|
|
|
|
|
September 30,
2015
|
|
December 31,
2014
|
|
ASSETS
|
|
(in thousands of US$,
except share data)
|
|
PROPERTY, PLANT AND
EQUIPMENT:
|
|
|
|
|
|
Property, plant and
equipment
|
|
$
256,013
|
|
$
318,995
|
|
Less accumulated
depreciation
|
|
(62,402)
|
|
(78,571)
|
|
Net property, plant
and equipment
|
|
193,611
|
|
240,424
|
|
CURRENT
ASSETS:
|
|
|
|
|
|
Cash and cash
equivalents
|
|
16,767
|
|
6,577
|
|
Accounts receivable –
net
|
|
1,299
|
|
1,365
|
|
Due from related
party
|
|
265
|
|
457
|
|
Accrued
revenue
|
|
1,871
|
|
1,762
|
|
Prepaid expenses and
other current assets
|
|
1,398
|
|
541
|
|
Deferred tax assets -
current
|
|
1,514
|
|
1,591
|
|
Assets held for
sale
|
|
2,887
|
|
—
|
|
Total current
assets
|
|
26,001
|
|
12,293
|
|
OTHER
ASSETS:
|
|
|
|
|
|
Goodwill
|
|
—
|
|
13,082
|
|
Intangible assets –
net
|
|
12,772
|
|
12,772
|
|
Regulatory
assets
|
|
255
|
|
400
|
|
Deposits
|
|
13
|
|
25
|
|
Bond service fund and
other restricted cash
|
|
9,042
|
|
9,927
|
|
Debt issuance costs -
net
|
|
2,276
|
|
2,722
|
|
Equity method
investment
|
|
938
|
|
1,150
|
|
Deferred tax
assets
|
|
—
|
|
14,806
|
|
Total other
assets
|
|
25,296
|
|
54,884
|
|
TOTAL
|
|
$
244,908
|
|
$
307,601
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY (DEFICIT)
|
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
|
|
Accounts
payable
|
|
$
1,356
|
|
$
1,531
|
|
Accrued
expenses
|
|
8,044
|
|
6,832
|
|
Deferred revenue –
current portion
|
|
9
|
|
13
|
|
Customer and meter
deposits
|
|
1,691
|
|
2,601
|
|
Long-term debt –
current portion
|
|
1,883
|
|
2,653
|
|
Liabilities held for
sale
|
|
503
|
|
—
|
|
Total current
liabilities
|
|
13,486
|
|
13,630
|
|
NONCURRENT
LIABILITIES:
|
|
|
|
|
|
Long-term
debt
|
|
106,558
|
|
127,491
|
|
Deferred regulatory
gain
|
|
19,730
|
|
19,730
|
|
Regulatory
liability
|
|
7,859
|
|
7,859
|
|
Advances in aid of
construction
|
|
60,070
|
|
89,206
|
|
Contributions in aid
of construction – net
|
|
4,473
|
|
17,096
|
|
Acquisition
liability
|
|
4,688
|
|
4,688
|
|
Deferred income tax
liability
|
|
5,984
|
|
—
|
|
Other noncurrent
liabilities
|
|
209
|
|
221
|
|
Total noncurrent
liabilities
|
|
209,571
|
|
266,291
|
|
Total
liabilities
|
|
223,057
|
|
279,921
|
|
Commitments and
contingencies (see Note 12)
|
|
|
|
|
|
SHAREHOLDERS' EQUITY
(DEFICIT):
|
|
|
|
|
|
Common stock, $0.01
par value, 1,000,000 shares authorized,
181,449 and 182,050
shares issued and outstanding at September
30, 2015 and December
31, 2014
|
|
2
|
|
2
|
|
Paid in
capital
|
|
23,417
|
|
50,639
|
|
Accumulated
deficit
|
|
(1,568)
|
|
(22,961)
|
|
Total shareholders'
equity
|
|
21,851
|
|
27,680
|
|
TOTAL
|
|
$
244,908
|
|
$
307,601
|
|
GLOBAL WATER
RESOURCES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
For the Three and Nine Months Ended September 30, 2015 and 2014
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
(in thousands of
US$)
|
|
REVENUES:
|
|
|
|
|
|
|
Water
services
|
$
4,131
|
|
$
5,087
|
|
$ 13,138
|
|
$ 13,831
|
|
Wastewater and
recycled water services
|
3,848
|
|
3,584
|
|
11,243
|
|
10,561
|
|
Unregulated
revenues
|
164
|
|
124
|
|
466
|
|
254
|
|
|
Total
revenues
|
8,143
|
|
8,795
|
|
24,847
|
|
24,646
|
|
|
|
|
|
|
|
|
|
OPERATING
EXPENSES:
|
|
|
|
|
|
|
|
|
Operations and
maintenance
|
2,173
|
|
2,677
|
|
7,319
|
|
7,855
|
|
General and
administrative
|
2,020
|
|
1,841
|
|
5,891
|
|
6,610
|
|
Gain on regulatory
order
|
—
|
|
—
|
|
—
|
|
(50,664)
|
|
Depreciation
|
1,894
|
|
2,255
|
|
6,526
|
|
6,926
|
|
|
Total operating
expenses
|
6,087
|
|
6,773
|
|
19,736
|
|
(29,273)
|
|
OPERATING
INCOME
|
2,056
|
|
2,022
|
|
5,111
|
|
53,919
|
|
|
|
|
|
|
|
|
|
OTHER INCOME
(EXPENSE):
|
|
|
|
|
|
|
|
|
Interest
income
|
4
|
|
23
|
|
8
|
|
64
|
|
Interest
expense
|
(2,367)
|
|
(2,111)
|
|
(6,496)
|
|
(6,487)
|
|
Other
|
43,445
|
|
23
|
|
43,667
|
|
1,797
|
|
|
Total other income
(expense)
|
41,082
|
|
(2,065)
|
|
37,179
|
|
(4,626)
|
|
|
|
|
|
|
|
|
|
INCOME (LOSS) BEFORE
INCOME TAXES
|
43,138
|
|
(43)
|
|
42,290
|
|
49,293
|
|
INCOME TAX BENEFIT
(EXPENSE)
|
(21,233)
|
|
17
|
|
(20,897)
|
|
16,477
|
|
NET INCOME
(LOSS)
|
$ 21,905
|
|
$
(26)
|
|
$ 21,393
|
|
$ 65,770
|
|
GLOBAL WATER
RESOURCES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
For the Eight Quarters Ended September 30, 2015
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2015
|
|
2014
|
|
2013
|
|
REVENUES:
|
|
Q3
|
Q2
|
Q1
|
|
Q4
|
Q3
|
Q2
|
Q1
|
|
Q4
|
|
Water
services
|
|
$ 4,131
|
$ 5,114
|
$ 3,893
|
|
$ 4,245
|
$ 5,087
|
$ 5,127
|
$ 3,617
|
|
$ 4,223
|
|
Wastewater and
recycled water services
|
|
3,848
|
3,793
|
3,602
|
|
3,551
|
3,584
|
3,612
|
3,365
|
|
3,498
|
|
Unregulated
revenues
|
|
164
|
175
|
127
|
|
117
|
124
|
116
|
14
|
|
45
|
|
|
Total
revenues
|
|
8,143
|
9,082
|
7,622
|
|
7,913
|
8,795
|
8,855
|
6,996
|
|
7,766
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
|
|
Operations and
maintenance
|
|
2,173
|
2,675
|
2,471
|
|
2,563
|
2,677
|
2,695
|
2,483
|
|
2,460
|
|
General and
administrative
|
|
2,020
|
1,807
|
2,064
|
|
2,199
|
1,841
|
2,280
|
2,489
|
|
1,671
|
|
Gain on regulatory
order
|
|
—
|
—
|
—
|
|
—
|
—
|
—
|
(50,664)
|
|
—
|
|
Depreciation
|
|
1,894
|
2,320
|
2,312
|
|
2,279
|
2,255
|
2,427
|
2,244
|
|
2,134
|
|
|
Total operating
expenses
|
|
6,087
|
6,802
|
6,847
|
|
7,041
|
6,773
|
7,402
|
(43,448)
|
|
6,265
|
|
OPERATING INCOME
(LOSS)
|
|
2,056
|
2,280
|
775
|
|
872
|
2,022
|
1,453
|
50,444
|
|
1,501
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER INCOME
(EXPENSE):
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
4
|
2
|
2
|
|
15
|
23
|
22
|
19
|
|
20
|
|
Interest
expense
|
|
(2,367)
|
(2,050)
|
(2,079)
|
|
(3,025)
|
(2,111)
|
(2,152)
|
(2,224)
|
|
(2,351)
|
|
Other
|
|
43,445
|
363
|
(141)
|
|
781
|
23
|
(147)
|
1,921
|
|
978
|
|
|
Total other income
(expense)
|
|
41,082
|
(1,685)
|
(2,218)
|
|
(2,229)
|
(2,065)
|
(2,277)
|
(284)
|
|
(1,353)
|
|
INCOME (LOSS) BEFORE
INCOME TAXES
|
|
43,138
|
595
|
(1,443)
|
|
(1,357)
|
(43)
|
(824)
|
50,160
|
|
148
|
|
INCOME TAX
BENEFIT (EXPENSE)
|
|
(21,233)
|
(192)
|
528
|
|
518
|
17
|
335
|
16,125
|
|
(11)
|
|
NET INCOME
(LOSS)
|
|
$ 21,905
|
$ 403
|
$ (915)
|
|
$ (839)
|
$ (26)
|
$ (489)
|
$ 66,285
|
|
$ 137
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
(1)
|
|
4,433
|
4,723
|
3,166
|
|
3,314
|
4,367
|
3,966
|
2,098
|
|
3,767
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Adjustments exclude the gain on Sale of Valencia, loss on assets
held for sale, gain on sale of Loop 303 Contracts, loss on equity
investment, gain on regulatory order, gain on SNR litigation
proceeds and loss on sale of GWM.
|
|
GLOBAL WATER
RESOURCES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Three and Nine Months Ended September 30, 2015 and 2014
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
|
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
(in thousands of
US$)
|
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$ 21,905
|
|
$
(26)
|
|
$ 21,393
|
|
$ 65,770
|
|
|
Adjustments to
reconcile net income (loss) to net cash
provided by operating
activities:
|
|
|
|
|
|
|
|
|
|
|
Deferred
compensation
|
|
55
|
|
228
|
|
498
|
|
1,092
|
|
|
Depreciation
|
|
1,893
|
|
2,255
|
|
6,525
|
|
6,926
|
|
|
Amortization of
deferred debt issuance costs and
discounts
|
|
46
|
|
90
|
|
158
|
|
266
|
|
|
Write-off of debt
issuance costs
|
|
282
|
|
—
|
|
282
|
|
—
|
|
|
Loss on disposal of
fixed assets
|
|
—
|
|
3
|
|
—
|
|
6
|
|
|
Gain on sale of
Valencia
|
|
(43,074)
|
|
—
|
|
(43,074)
|
|
—
|
|
|
Gain on sale of 303
contracts
|
|
—
|
|
—
|
|
(296)
|
|
—
|
|
|
Loss on equity method
investment
|
|
112
|
|
67
|
|
212
|
|
473
|
|
|
Gain on regulatory
order
|
|
—
|
|
—
|
|
—
|
|
(50,664)
|
|
|
Other gains and
losses
|
|
—
|
|
—
|
|
176
|
|
—
|
|
|
Provision for
doubtful accounts receivable
|
|
27
|
|
12
|
|
55
|
|
55
|
|
|
Deferred income tax
expense (benefit)
|
|
21,201
|
|
(17)
|
|
20,865
|
|
(16,477)
|
|
|
Changes in assets and
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
262
|
|
170
|
|
(28)
|
|
(85)
|
|
|
|
Other current
assets
|
|
(523)
|
|
147
|
|
(1,480)
|
|
(154)
|
|
|
|
Accounts payable and
other current liabilities
|
|
2,258
|
|
2,450
|
|
(165)
|
|
2,190
|
|
|
|
Other noncurrent
assets
|
|
33
|
|
(3)
|
|
118
|
|
28
|
|
|
|
Other noncurrent
liabilities
|
|
—
|
|
(1)
|
|
—
|
|
2,852
|
|
|
|
|
Net cash provided by
operating activities
|
|
4,477
|
|
5,375
|
|
5,239
|
|
12,278
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
(1,168)
|
|
(388)
|
|
(2,177)
|
|
(1,054)
|
|
Proceeds from the
sale of Valencia
|
|
55,198
|
|
—
|
|
55,198
|
|
—
|
|
(Deposits)
withdrawals of restricted cash
|
|
3
|
|
—
|
|
(77)
|
|
197
|
|
Cash received from
the sale of Loop 303 Contracts
|
|
—
|
|
—
|
|
296
|
|
—
|
|
Cash advance to
related party
|
|
(11,638)
|
|
—
|
|
(12,745)
|
|
—
|
|
Repayment of related
party cash advance
|
|
11,394
|
|
—
|
|
12,227
|
|
—
|
|
Deposits received
(refunded)
|
|
—
|
|
(2)
|
|
7
|
|
—
|
|
|
|
|
Net cash used in
investing activities
|
|
53,789
|
|
(390)
|
|
52,729
|
|
(857)
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
Proceeds withdrawn
from bond service fund
|
|
1,001
|
|
—
|
|
1,001
|
|
—
|
|
Loan
repayments
|
|
(21,326)
|
|
(5)
|
|
(21,719)
|
|
(1,007)
|
|
Principal payments
under capital leases
|
|
(24)
|
|
(20)
|
|
(72)
|
|
(85)
|
|
Debt issuance costs
paid
|
|
—
|
|
(46)
|
|
—
|
|
(46)
|
|
Advances in aid of
construction
|
|
138
|
|
107
|
|
282
|
|
301
|
|
Dividends
paid
|
|
(24,228)
|
|
(1,164)
|
|
(26,521)
|
|
(2,314)
|
|
Share
repurchase
|
|
(231)
|
|
—
|
|
(327)
|
|
—
|
|
Refunds of advances
for construction
|
|
(393)
|
|
(736)
|
|
(422)
|
|
(736)
|
|
|
|
|
Net cash used in
financing activities
|
|
(45,063)
|
|
(1,864)
|
|
(47,778)
|
|
(3,887)
|
|
INCREASE IN CASH AND
CASH EQUIVALENTS
|
|
13,203
|
|
3,121
|
|
10,190
|
|
7,534
|
|
CASH AND CASH
EQUIVALENTS – Beginning of period
|
|
3,564
|
|
6,373
|
|
6,577
|
|
1,960
|
|
CASH AND CASH
EQUIVALENTS – End of period
|
|
$ 16,767
|
|
$ 9,494
|
|
$ 16,767
|
|
$ 9,494
|
SOURCE GWR Global Water Resources Corp.
