Global Water Resources, Inc. Files 2023 Annual Report on Form 10-K

Ticker: GWRS · Form: 10-K · Filed: Mar 7, 2024 · CIK: 1434728

Sentiment: neutral

Topics: 10-K, Annual Report, Water Utility, Financials, Regulatory

TL;DR

<b>Global Water Resources, Inc. has filed its 2023 annual report (10-K) detailing its financial performance and operations for the fiscal year ending December 31, 2023.</b>

AI Summary

Global Water Resources, Inc. (GWRS) filed a Annual Report (10-K) with the SEC on March 7, 2024. Global Water Resources, Inc. filed its 2023 Form 10-K on March 7, 2024. The filing covers the fiscal year ending December 31, 2023. The company's principal business is Water Supply, SIC code 4941. Key dates include the fiscal year end of December 31, 2023, and the filing date of March 7, 2024. The company is incorporated in Delaware and headquartered in Phoenix, AZ.

Why It Matters

For investors and stakeholders tracking Global Water Resources, Inc., this filing contains several important signals. This 10-K filing provides a comprehensive overview of the company's financial health, operational performance, and strategic initiatives for the past fiscal year, crucial for investors and stakeholders to assess its current standing and future prospects. As a water utility company, the filing is essential for understanding regulatory compliance, infrastructure investments, and revenue streams in a sector critical to public services and economic development.

Risk Assessment

Risk Level: medium — Global Water Resources, Inc. shows moderate risk based on this filing. The company operates in the water utility sector, which is subject to significant regulatory oversight and environmental concerns, potentially impacting operations and profitability.

Analyst Insight

Investors should review the detailed financial statements and risk factors in the 10-K to assess the company's long-term growth potential and its ability to manage regulatory and operational challenges.

Key Numbers

Key Players & Entities

FAQ

When did Global Water Resources, Inc. file this 10-K?

Global Water Resources, Inc. filed this Annual Report (10-K) with the SEC on March 7, 2024.

What is a 10-K filing?

A 10-K is a comprehensive annual financial report required by the SEC, covering audited financials, business operations, risk factors, and management discussion. This particular 10-K was filed by Global Water Resources, Inc. (GWRS).

Where can I read the original 10-K filing from Global Water Resources, Inc.?

You can access the original filing directly on the SEC's EDGAR system. The filing is publicly available and includes all exhibits and attachments submitted by Global Water Resources, Inc..

What are the key takeaways from Global Water Resources, Inc.'s 10-K?

Global Water Resources, Inc. filed this 10-K on March 7, 2024. Key takeaways: Global Water Resources, Inc. filed its 2023 Form 10-K on March 7, 2024.. The filing covers the fiscal year ending December 31, 2023.. The company's principal business is Water Supply, SIC code 4941..

Is Global Water Resources, Inc. a risky investment based on this filing?

Based on this 10-K, Global Water Resources, Inc. presents a moderate-risk profile. The company operates in the water utility sector, which is subject to significant regulatory oversight and environmental concerns, potentially impacting operations and profitability.

What should investors do after reading Global Water Resources, Inc.'s 10-K?

Investors should review the detailed financial statements and risk factors in the 10-K to assess the company's long-term growth potential and its ability to manage regulatory and operational challenges. The overall sentiment from this filing is neutral.

How does Global Water Resources, Inc. compare to its industry peers?

Global Water Resources operates in the water supply industry, providing essential water and wastewater services. This sector is characterized by significant infrastructure needs and regulatory oversight.

Are there regulatory concerns for Global Water Resources, Inc.?

Water utilities are heavily regulated by state and local authorities regarding service provision, water quality, and rate setting. Compliance with these regulations is critical for operations.

Risk Factors

Industry Context

Global Water Resources operates in the water supply industry, providing essential water and wastewater services. This sector is characterized by significant infrastructure needs and regulatory oversight.

Regulatory Implications

Water utilities are heavily regulated by state and local authorities regarding service provision, water quality, and rate setting. Compliance with these regulations is critical for operations.

What Investors Should Do

  1. Analyze the company's revenue segments and growth trends for Water Services, Wastewater and Recycled Water, and Unregulated Revenue.
  2. Review the company's debt structure, including senior notes and any private placement offerings, to understand its financial leverage.
  3. Examine the risk factors, particularly those related to geographic concentration and regulatory compliance, to assess potential impacts on future performance.

Key Dates

Year-Over-Year Comparison

This filing is the 2023 Form 10-K, providing the annual overview of the company's financial and operational status for the fiscal year ending December 31, 2023.

Filing Stats: 4,324 words · 17 min read · ~14 pages · Grade level 15.8 · Accepted 2024-03-06 20:03:05

Key Financial Figures

Filing Documents

Risk Factors

Item 1A. Risk Factors 19

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments 36 Item 1C. C ybersecurity 36

Properties

Item 2. Properties 38

Legal Proceedings

Item 3. Legal Proceedings 38

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 38 PART II.

Market for Registrant's Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities 39

[Reserved] 41

Item 6. [Reserved] 41

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 42

Quantitative and Qualitative Disclosures About Market Risk

Item 7A. Quantitative and Qualitative Disclosures About Market Risk 56

Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data 57

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 86

Controls and Procedures

Item 9A. Controls and Procedures 86

Other Information

Item 9B. Other Information 86

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 86 PART III.

Directors, Executive Officers of the Registrant and Corporate Governance

Item 10. Directors, Executive Officers of the Registrant and Corporate Governance 87

Executive Compensation

Item 11. Executive Compensation 87

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 87

Certain Relationships and Related Transactions and Director Independence

Item 13. Certain Relationships and Related Transactions and Director Independence 87

Principal Accountant Fees and Services

Item 14. Principal Accountant Fees and Services 87 PART IV.

Exhibits and Financial Statement Schedules

Item 15. Exhibits and Financial Statement Schedules 87 Exhibit Index 88

Form 10-K Summary

Item 16. Form 10-K Summary 92

Signatures

Signatures 93 Table of Con tents CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS AND RISK FACTOR SUMMARY Certain statements in this Annual Report on Form 10-K of Global Water Resources, Inc. (the "Company", "GWRI", "we", or "us"), including all documents incorporated by reference, are forward-looking in nature and may constitute "forward-looking information" within the meaning of applicable securities laws. Often, but not always, forward-looking statements can be identified by the words "believes", "anticipates", "plans", "expects", "intends", "projects", "estimates", "objective", "goal", "focus", "aim", "should", "could", "may", and similar expressions. These forward-looking statements include, but are not limited to, statements about our strategies; expectations about future business plans, prospective performance, growth, and opportunities; future financial performance; regulatory and Arizona Corporation Commission ("ACC") proceedings, decisions and approvals, such as the anticipated benefits resulting from Rate Decision No. 78644, including our expected collective revenue increase due to new water and wastewater rates and benefits from consolidation of rates, as well as our beliefs and expectations pertaining to ACC actions relating to our Southwest Plant; acquisition plans and our ability to complete additional acquisitions; population and growth projections; technologies, including expected benefits from implementing such technologies; revenues; metrics; operating expenses; trends relating to our industry, market, population growth, and housing permits; the adequacy of our water supply to service our current demand and growth for the foreseeable future; liquidity; plans and expectations for capital expenditures; cash flows and uses of cash; dividends; depreciation and amortization; tax payments; our ability to repay indebtedness and invest in initiatives; the anticipated impact and resolutions of legal matters; the anticipated impact of new o

BUSINESS

ITEM 1. BUSINESS Overview GWRI is a water resource management company that owns, operates, and manages twenty-nine water, wastewater, and recycled water systems in strategically located communities, principally in metropolitan Phoenix and Tucson, Arizona. The Company seeks to deploy an integrated approach, referred to as "Total Water Management." Total Water Management is a comprehensive approach to water utility management that reduces demand on scarce non-renewable water sources and costly renewable water supplies, in a manner that ensures sustainability and greatly benefits communities both environmentally and economically. This approach employs a series of principles and practices that can be tailored to each community: Reuse of recycled water, either directly or to non-potable uses, through aquifer recharge, or possibly direct potable reuse in the future; Regional planning; Use of advanced technology and data; Employing respected subject matter experts and retaining thought and application leaders; Leading outreach and educational initiatives to ensure all stakeholders including customers, development partners, regulators, and utility staff are knowledgeable on the principles and practices of the Total Water Management approach; and Establishing partnerships with communities, developers, and industry stakeholders to gain support of the Total Water Management principles and practices. Serving more than 82,000 people in approximately 32,000 homes within the Company's 408 square miles of certificated service areas as of December 31, 2023, the Company provides water and wastewater utility services under the regulatory authority of the ACC. Approximately 89.3% of the active service connections are customers of the Company's the Company's Global Water - Santa Cruz Water Company, Inc. ("Santa Cruz") and Global Water - Palo Verde Utilities Company, Inc. ("Palo Verde") utilities, which are located within a single service area. U.S. Water Industry Overview U

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