GWR Global Water Resources Corp. reports fourth quarter and year-end 2011 results
PHOENIX, AZ, March 29, 2012 /CNW/ - GWR Global Water Resources Corp. (the "Company") (TSX: GWR) today reported its financial results for the fourth quarter and the year ended December 31, 2011. This is the second year-end period for the Company since its initial public offering ("IPO") of common shares on December 30, 2010 and its related acquisition of an approximate 48.1% interest in Global Water Resources, Inc. ("Global Water", "we", "us" and "our").
Global Water is a leading water resource management and technology company based in Phoenix, Arizona that owns and operates water, wastewater and recycled water utilities, and provides data and water management services through its unique, award winning platform, FATHOM™ Utility-to-Utility (U2U™) Solutions. 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 US dollars.
Global Water 2011 Highlights:
- Revenues increased 28% to $36.4 million in 2011 from 2010
- Adjusted EBITDA increased 29% to $14.1 million in 2011 from 2010
- Active service connections grew 3.3% for 2011
- Completed FATHOM™ implementations for Advanced Metering Infrastructure and Asset Management for the cities of Grass Valley and Covina, California
- Launched the FATHOM™ U2You™ customer portal website and the first ever iPhone application for water utilities
- Selected as a Silver partner for the ESRI Partner Network, ESRI - the market leader for GIS mapping for municipalities
- Signed a nationwide distribution agreement for cities less than 30,000 meters with Aclara® - a dominant market leader in water Advanced Metering Infrastructure
- The City of El Cajon, California selected a comprehensive billing services contract for the FATHOM™ platform to service approximately 16,000 wastewater service connections
- The City of South Pasadena, California, selected the FATHOM™ platform to service approximately 6,200 service connections, subsequent to the end of the period
- Global Water advanced the thought leadership in 2011 on Smart Grid for Water by publishing three technical papers, participating in 7 feature articles and presenting on 26 conference panels
- Received a favorable interim arbitration award, subsequent to end of the period, entitling Global Water to proceeds in excess of $6 million including over $2 million of interest and recovered legal fees arising out of a contractual dispute with two land developers
Consolidated revenues for the three months ended December 31, 2011 totalled $7.7 million compared to $9.2 million for the same period in 2010. For the year ended December 31, 2011, consolidated revenues totalled $36.4 million, an increase of 28%, compared to $28.5 million in 2010.
Consolidated net loss for the three months ended December 31, 2011 totalled $1.4 million compared with consolidated net income of $367,000 for the same period in 2010. For the year ended December 31, 2011 consolidated net loss totalled $3.3 million compared to a net loss of $5.9 million in 2010, excluding non-recurring charges that occurred in 2010.
Adjusted EBITDA for the three months ended December 31, 2011 totalled $2.7 million, compared to $3.8 million for the same period in 2010. Adjusted EBITDA for the year ended December 31, 2011 was $14.1 million, a $3.2 million, a 29% increase from $10.9 million for the year ending December 31, 2010. The improvement in year-over-year period was driven by higher utility rates and service connections in our Regulated division.
The common stock of Global Water is not publicly traded. However, management believes that Global Water's net earnings (loss) per share and EBITDA per share data may be useful to some users of the financial statements as those users make decisions related to the Company, which holds an approximate 48.1% interest in Global Water. Each share of Global Water is approximately equivalent to 100 shares of the Company. Therefore, Global Water's net loss per share in terms of the Company's common shares was approximately $0.08 per share and $0.18 per share, respectively, for the three and twelve months ended December 31, 2011. EBITDA per share in terms of the Company's common shares was approximately $0.15 per share and $0.78 per share for the three and twelve months ended December 31, 2011, respectively (see computation in the attached schedules to this earnings release). EBITDA and Adjusted EBITDA do not have standardized meanings prescribed by U.S. GAAP. See "Cautionary Note Regarding Non-GAAP Measures" below.
Global Water had certain financial obligations coming due in March 2012. The Wells Fargo line of credit expired under its own terms on March 23, 2012 and we had an obligation to make the final acquisition payment of $11.9 million to the previous owners of the West Maricopa Combine ("WMC") utilities acquired in July 2006. On March 22, 2012, we entered into a secured term credit facility with Regions Bank, where we borrowed $7.0 million. Global Water used $4.0 million of the proceeds to extinguish the line of credit with Wells Fargo and $3.0 million to make a partial payment for the WMC acquisition liability. Additionally, on March 22, 2012, Global Water entered into a promissory note with Levine Investments Limited Partnership (''Levine''), a shareholder and director of the Company and Global Water, for $9.4 million. These funds will be repaid over the next two years, with the first payment due May 1, 2012. Proceeds from this loan allow Global Water to repay the balance of the WMC acquisition payment referred to above.
Unregulated Business
Unregulated revenues totalled $1.0 million in the three months ended December 31, 2011 compared with $3.2 million in the three months ended December 31, 2010. The change was primarily attributed to less FATHOM™ implementation revenues compared to the same period in December 31, 2010. The change was partially offset by an additional $351,000 of recurring FATHOM™ revenues and $379,000 of incremental revenue related to the sale of contractual rights recognized in the three months ended December 31, 2011. Recurring FATHOM™ revenue was $178,000 per month as of December 31, 2011.
For the year ended December 31, 2011, unregulated revenues totalled $7.9 million, compared with $3.7 million in the year ended December 31, 2010. Approximately $1.5 million of the increase is attributable to FATHOMTM product implementation fees which totalled $4.6 million in 2011 compared to $3.1 million in 2010. Recurring FATHOM™ revenues increased $1.3 million, or 256%, to $1.7 million for the year ended December 31, 2011 compared to $0.5 million in 2010. Additionally as part of unregulated revenues, Global Water recognized $1.4 million of gains in 2011 related to the sale of certain contractual rights. There was no such activity during 2010.
Regulated Business
Revenues from the regulated utilities business for the three months ended December 31, 2011 increased $0.6 million, or 11%, from $6.1 million in 2010 to $6.7 million in 2011. For the year ended December 31, 2011, regulated revenues increased $5.9 million or 26% from $22.7 million to $28.5 million in 2011. While regulated revenue growth was primarily driven by the rate increases provided by the 2010 Regulatory Rate Decision discussed in our prior disclosures, the regulated business also benefited from an increase in the number of active utility service connections. Global Water's total service connections, which included active service connections and connections to vacant homes, increased to 42,972 as of December 31, 2011 from 42,678 as of December 31, 2010. Global Water's active service connections increased to 39,731 December 31, 2011 compared to 38,459 as of December 31, 2010, representing an annual increase of approximately 3.3%.
"We expect to see robust revenue growth in our regulated utilities over the next five years through increased service connections and rates which will result in significant EBITDA given our cost structures have stabilized," said Trevor Hill, President and CEO.
Business Outlook
We discuss business expansion of FATHOM™ in terms of market adoption and expanding channels to market. Whereas last year at this time, FATHOM™ had only one channel to market - direct sales - which consisted of one inside and one outside sales person, Global Water has expanded this direct selling effort in the last eight months, and added three additional channels to market. Within the direct selling group Global Water now has four inside sales people and four outside sales people operating in six key regions, Arizona, California, the Pacific Northwest, Colorado, Texas and Florida.
Global Water is pursuing three major categories of partnerships through its partner channel: Operating Companies, Technology Companies and Engineering Firms. This strategy has generated significant results to date. Operating Companies, like the Ontario Clean Water Agency - a Global Water channel partner, can lever the value of FATHOM™ and provide the opportunity to penetrate new markets at a lower cost of sales. This organization operates 140 municipal water entities representing approximately 1,000,000 meters and has a keen interest in deepening their service offering and expanding their reach within Ontario and potentially beyond. Global Water continues to pursue several partnerships in the Operating Company category. Technology Companies, like Aclara - a Global Water channel partner, often need an operating partner to not only sell their product but allow the municipal utilities to surface the full value of their technology. Global Water is pursuing numerous Technology Company partnerships as each provides geographic and technology differences which provide a means by which to penetrate the market nationally. Finally, Engineering Firms who provide services or outsourced services to municipalities, view FATHOM™ as a natural extension of their reach.
"The combined effect of expanding our direct sales team and building new partner channels is exposing FATHOM™ to a very large and ever growing number of water opportunities that position us to reach an inflection point in our growth," said Hill.
FATHOM™ is primarily a water scarcity management tool designed to save cities money. The drivers for its implementation are very strong in water scarce regions of the world. Global Water has several international opportunities emerging now in the United Kingdom which is experiencing unprecedented drought, Saudi Arabia which manufacturers a large percentage of their water, Australia which continues to drought proof its nation and Israel - well known for its expertise around water conservation.
"At this time we are negotiating more than a dozen partnering opportunities and expect to see the value of these partnerships surfacing in late 2012 and 2013. As a function of these discussions, we have seen a material increase in international inquiries regarding the applicability of FATHOM™," said Hill.
"Think of FATHOM™ as an operating system, essentially a cloud based means by which utilities of any size can operate advanced Automated Meter Infrastructure (AMI), Customer Information System (CIS) and geospatial tools. By implementing these solutions utilities can realize value from these products at a price far cheaper than they can perform these functions themselves. Our solutions also eliminate the need to acquire hardware and software, recruit and train technical people, or operate these complex systems over their life. In the end, the value of these advanced tools resides in the data and with FATHOM™'s advanced analytics, the value of the data is readily surfaced to utility clients and their customers in real-time," said Hill.
Other information
Effective January 1, 2011, IFRS replaced Canadian GAAP for publicly accountable enterprises, except those with rate regulated activities, for whom the mandatory date of adoption of IFRS was expected to be January 1, 2012. We had previously indicated that we planned to adopt IFRS effective January 1, 2012. Based on new guidance from the Canadian Accounting Standards Board, the deferral of IFRS adoption for rate regulated entities applies to the Company and, accordingly, the Company now expects to adopt IFRS effective January 1, 2015 and will continue preparing financial statements in accordance with U.S. GAAP for financial years beginning January 1, 2012 through January 1, 2015.
The full financial statements and management's discussion and analysis for the Company and Global Water will be available March 29, 2012 on the Company's SEDAR profile at www.sedar.com or on the Company's website at www.gwresources.com.
Conference Call and Webcast Information
Global Water will conduct a conference call on March 29, 2012 at 3:00 p.m. ET. You may access the call by dialing (647) 427-7450 or toll free at 1 (888) 231-8191. Shortly after the conclusion of the call, a replay will be available by dialing (416) 849-0833 or 1 (855) 859-2056. The passcode is 59525837. The passcode will expire at midnight (ET) on April 5, 2012. A copy of the transcript and an audio recording of the call, once available, will be archived at www.gwresources.com.
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 "Adjusted EBITDA". Adjusted 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, adjusted for certain non-operating, generally non-recurring, activities which Global Water removes from net income (loss) to facilitate operating performance comparisons. Also excluded are amounts related to infrastructure coordination and financing agreement revenues and stored water credits as these amounts will not be recurring on a go-forward basis. Management believes that Adjusted EBITDA is useful supplemental measure of Global Water's operating performance. However, Adjusted EBITDA is not a recognized earnings measure under U.S. GAAP or Canadian GAAP and does not have a standardized meaning prescribed by U.S. GAAP or Canadian GAAP. Therefore, Adjusted EBITDA may not be comparable to similar measures presented by other issuers. Adjusted EBITDA should not be construed as an alternative to net income or loss. See "Adjusted EBITDA" in the attached schedules for a reconciliation of Adjusted EBITDA to net income, the nearest comparable U.S, GAAP measure.
GWR GLOBAL WATER RESOURCES CORP. BALANCE SHEETS As of December 31, 2011 and 2010 (Unaudited) |
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December 31, 2011 |
December 31, 2010 |
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(in thousands of US$, except share data) | |||||||||
ASSETS | |||||||||
CURRENT ASSETS: | |||||||||
Cash and cash equivalents | $ | - | $ | - | |||||
Other current assets | - | - | |||||||
Total current assets | - | - | |||||||
Equity method investment | 54,063 | 51,632 | |||||||
TOTAL ASSETS | $ | 54,063 | $ | 51,632 | |||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||
LIABILITIES: | |||||||||
Accounts payable and accrued expenses | $ | 8 | $ | 17 | |||||
Due to related party | 256 | - | |||||||
Other noncurrent liabilities | 25 | 17 | |||||||
Total liabilities | 289 | 34 | |||||||
SHAREHOLDERS' EQUITY: | |||||||||
Common stock, unlimited shares authorized, 8,754,612 and 8,185,001 shares issued and outstanding at December 31,2011 and 2010, respectively |
55,670 | 51,659 | |||||||
Accumulated deficit | (1,896) | (61) | |||||||
Total shareholders' equity | 53,774 | 51,598 | |||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 54,063 | $ | 51,632 |
GWR GLOBAL WATER RESOURCES CORP. STATEMENTS OF OPERATIONS For the Three Months and Years Ended December 31, 2011 (Unaudited) |
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Three Months Ended December 31, |
Years Ended December 31, |
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2011 | 2010 | 2011 | 2010 | |||||||||||
(in thousands of US$, except share and per share data) | ||||||||||||||
LOSS FROM EQUITY INVESTMENT | $ | (676) | $ | (27) | $ | (1,580) | $ | (27) | ||||||
OPERATING EXPENSE | 35 | 34 | 255 | 34 | ||||||||||
OPERATING LOSS | (711) | (61) | (1,835) | (61) | ||||||||||
LOSS BEFORE INCOME TAXES | (711) | (61) | (1,835) | (61) | ||||||||||
INCOME TAX EXPENSE (BENEFIT) | - | - | - | - | ||||||||||
NET LOSS | $ | (711) | $ | (61) | $ | (1,835) | $ | (61) | ||||||
WEIGHTED AVERAGE SHARES: | ||||||||||||||
Basic | 8,754,612 | 177,936 | 8,712,476 | 57,642 | ||||||||||
Diluted | 8,754,612 | 177,936 | 8,712,476 | 57,642 | ||||||||||
LOSS PER SHARE: | ||||||||||||||
Basic | $ | (0.08) | $ | (0.34) | $ | (0.21) | $ | (1.06) | ||||||
Diluted | $ | (0.08) | $ | (0.34) | $ | (0.21) | $ | (1.06) |
GLOBAL WATER RESOURCES, INC. CONSOLIDATED BALANCE SHEETS As of December 31, 2011 and 2010 (Unaudited) |
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December 31, 2011 | December 31, 2010 | |||||||
(in thousands of US$, except share data) | ||||||||
ASSETS | ||||||||
PROPERTY, PLANT AND EQUIPMENT: | ||||||||
Property, plant and equipment | $ | 317,804 | $ | 312,841 | ||||
Less accumulated depreciation | (51,856) | (40,348) | ||||||
Net property, plant and equipment | 265,948 | 272,493 | ||||||
CURRENT ASSETS: | ||||||||
Cash and cash equivalents | 2,233 | 10,163 | ||||||
Accounts receivable - net | 2,779 | 1,746 | ||||||
Other receivables | 444 | 270 | ||||||
Accrued revenue | 1,254 | 528 | ||||||
Prepaid expenses and other current assets | 425 | 651 | ||||||
Deferred tax asset - current | 2,003 | 1,244 | ||||||
Total current assets | 9,138 | 14,602 | ||||||
OTHER ASSETS: | ||||||||
Goodwill | 13,082 | 13,082 | ||||||
Intangible assets - net | 1,545 | 1,545 | ||||||
Regulatory assets | 486 | 406 | ||||||
Deposits | 63 | 69 | ||||||
Bond service fund and other restricted cash | 9,287 | 9,225 | ||||||
Debt issuance costs - net | 3,005 | 3,192 | ||||||
Deferred tax assets | 28,068 | 26,848 | ||||||
Total other assets | 55,536 | 54,367 | ||||||
TOTAL ASSETS | $ | 330,622 | $ | 341,462 | ||||
LIABILITIES AND EQUITY | ||||||||
CURRENT LIABILITIES: | ||||||||
Accounts payable | $ | 3,637 | $ | 3,325 | ||||
Accrued expenses | 3,884 | 5,371 | ||||||
Deferred revenue | 2 | 596 | ||||||
Accrued acquisition payments | 5,919 | 5,114 | ||||||
Customer and meter deposits | 2,371 | 1,969 | ||||||
Long-term debt - current portion | 5,757 | 11,702 | ||||||
Total current liabilities | 21,570 | 28,077 | ||||||
NONCURRENT LIABILITIES: | ||||||||
Long-term debt | 115,476 | 117,361 | ||||||
Advances in aid of construction | 105,331 | 104,043 | ||||||
Contributions in aid of construction - net | 64,775 | 63,360 | ||||||
Acquisition liability | 10,395 | 15,799 | ||||||
Other non-current liabilities | 713 | 1,204 | ||||||
Total noncurrent liabilities | 296,690 | 301,767 | ||||||
Total liabilities | 318,260 | 329,844 | ||||||
SHAREHOLDERS' EQUITY: | ||||||||
Common stock, $0.01 par value, 1,000,000 shares authorized, 182,050 and 176,354 shares issued and outstanding at December 31, 2011 and 2010, respectively |
2 | 2 | ||||||
Paid in capital | 55,731 | 51,679 | ||||||
Accumulated deficit | (43,371) | (40,063) | ||||||
Total equity | 12,362 | 11,618 | ||||||
TOTAL | $ | 330,622 | $ | 341,462 |
GLOBAL WATER RESOURCES, INC. CONSOLIDATED STATEMENTS OF OPERATIONS For the Three Months and Years Ended December 31, 2011 and 2010 (Unaudited) |
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Three Months Ended December 31, |
Years Ended December 31, |
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2011 | 2010 | 2011 | 2010 | |||||||||||
(in thousands of US$) | ||||||||||||||
REVENUES: | ||||||||||||||
Water services | $ | 3,815 | $ | 3,836 | $ | 17,130 | $ | 15,000 | ||||||
Wastewater and recycled water services |
2,903 | 2,219 | 11,412 | 7,663 | ||||||||||
Sale of stored water credits | - | - | - | 2,151 | ||||||||||
Unregulated revenues | 1,016 | 3,160 | 7,863 | 3,712 | ||||||||||
Total revenues | 7,734 | 9,215 | 36,405 | 28,526 | ||||||||||
OPERATING EXPENSES: | ||||||||||||||
Operations and maintenance | 2,767 | 3,681 | 12,157 | 8,642 | ||||||||||
Cost or stored water credits sold | - | - | - | 2,008 | ||||||||||
General and administrative | 2,238 | 1,778 | 10,192 | 7,062 | ||||||||||
Goodwill impairment | - | - | - | 23,985 | ||||||||||
Regulatory provision | - | - | - | 55,169 | ||||||||||
Depreciation | 2,738 | 2,619 | 10,487 | 7,472 | ||||||||||
Total operating expenses | 7,743 | 8,078 | 32,836 | 104,338 | ||||||||||
OPERATING INCOME (LOSS) | (9) | 1,137 | 3,569 | (75,812) | ||||||||||
OTHER INCOME (EXPENSE): | ||||||||||||||
Interest income | - | - | 2 | - | ||||||||||
Interest expense | (2,194) | (3,428) | (8,908) | (13,195) | ||||||||||
Other | 2 | 51 | 57 | 119 | ||||||||||
Total other income (expense) | (2,192) | (3,377) | (8,849) | (13,076) | ||||||||||
LOSS BEFORE INCOME TAXES | (2,201) | (2,240) | (5,280) | (88,888) | ||||||||||
INCOME TAX BENEFIT | 795 | 2,607 | 1,972 | 3,847 | ||||||||||
NET INCOME (LOSS) | $ | (1,406) | $ | 367 | $ | (3,308) | $ | (85,041) |
Net Loss and EBITDA per Share Information for the Three Months and Year Ended December 31, 2011 (amounts in thousands of US dollars, except share data): |
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Three Months Ended December 31, 2011 |
Year Ended December 31, 2011 |
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Net Loss | EBITDA | Net Loss | EBITDA | |||||||||
Amount for the period ended December 31, 2011 |
$ | (1,406) | $ | 2,731 | $ | (3,308) | $ | 14,113 | ||||
Weighted average number of Global Water shares outstanding during the period ended December 31, 2011 |
182,050 | 182,050 | 181,629 | 181,629 | ||||||||
Global Water per share amount | $ | (7.72) | $ | 15.00 | $ | (18.21) | $ | 77.70 |
GLOBAL WATER RESOURCES, INC. CONSOLIDATED STATEMENTS OF OPERATIONS For the Eight Quarters Ended December 31, 2011 (Unaudited) |
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2011 | 2010 | ||||||||||||||||||||
Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | ||||||||||||||
(in thousands of US$, except service connections) | |||||||||||||||||||||
REVENUES: | |||||||||||||||||||||
Water services | $ | 3,815 | $ | 5,394 | $ | 4,497 | $ | 3,424 | $ | 3,836 | $ | 4,810 | $ | 3,550 | $ | 2,804 | |||||
Wastewater and recycled water services | 2,903 | 2,872 | 2,866 | 2,771 | 2,219 | 2,076 | 1,708 | 1,660 | |||||||||||||
Sale of stored water credits | - | - | - | - | - | - | - | 2,151 | |||||||||||||
Unregulated revenues | 1,016 | 1,885 | 1,991 | 2,971 | 3,160 | 259 | 125 | 168 | |||||||||||||
Total revenues | 7,734 | 10,151 | 9,354 | 9,166 | 9,215 | 7,145 | 5,383 | 6,783 | |||||||||||||
OPERATING EXPENSES: | |||||||||||||||||||||
Operations and maintenance | 2,767 | 3,164 | 3,151 | 3,075 | 3,681 | 1,980 | 1,683 | 1,298 | |||||||||||||
Cost of stored water credits sold | - | - | - | - | - | - | - | 2,008 | |||||||||||||
General and administrative | 2,238 | 2,384 | 2,678 | 2,892 | 1,778 | 1,817 | 1,668 | 1,799 | |||||||||||||
Goodwill impairment | - | - | - | - | - | 23,985 | - | - | |||||||||||||
Regulatory provision | - | - | - | - | - | - | - | 55,169 | |||||||||||||
Depreciation | 2,738 | 2,557 | 2,580 | 2,612 | 2,619 | 2,640 | 2,288 | (75) | |||||||||||||
Total operating expenses | 7,743 | 8,105 | 8,409 | 8,579 | 8,078 | 30,422 | 5,639 | 60,199 | |||||||||||||
OPERATING INCOME (LOSS) | (9) | 2,046 | 945 | 587 | 1,137 | (23,277) | (256) | (53,416) | |||||||||||||
OPERATING INCOME (EXPENSE): | |||||||||||||||||||||
Interest income | - | - | - | 2 | - | - | - | - | |||||||||||||
Interest expense | (2,194) | (2,196) | (2,202) | (2,316) | (3,428) | (3,293) | (3,200) | (3,274) | |||||||||||||
Other | 2 | (8) | 23 | 40 | 51 | 8 | 34 | 26 | |||||||||||||
Total other income (expense) | (2,192) | (2,204) | (2,179) | (2,274) | (3,377) | (3,285) | (3,166) | (3,248) | |||||||||||||
LOSS BEFORE INCOME TAXES | (2,201) | (158) | (1,234) | (1,687) | (2,240) | (26,562) | (3,422) | (56,664) | |||||||||||||
INCOME TAX BENEFIT | 795 | 56 | 471 | 650 | 2,607 | 323 | 843 | 74 | |||||||||||||
NET INCOME (LOSS) | $ | (1,406) | $ | (102) | $ | (763) | $ | (1,037) | $ | 367 | $ | (26,239) | $ | (2,579) | $ | (56,590) | |||||
Income tax benefit | (795) | (56) | (471) | (650) | (2,607) | (323) | (843) | (74) | |||||||||||||
Interest income | - | - | - | (2) | - | - | - | - | |||||||||||||
Interest expense | 2,194 | 2,196 | 2,202 | 2,316 | 3,428 | 3,293 | 3,200 | 3,274 | |||||||||||||
Depreciation | 2,738 | 2,557 | 2,580 | 2,612 | 2,619 | 2,640 | 2,288 | (75) | |||||||||||||
EBITDA | $ | 2,731 | $ | 4,595 | $ | 3,548 | $ | 3,239 | $ | 3,807 | $ | (20,629) | $ | 2,066 | $ | (53,465) | |||||
Sale of stored water credits | - | - | - | - | - | - | - | (2,151) | |||||||||||||
Cost of stored water credits sold | - | - | - | - | - | - | - | 2,008 | |||||||||||||
Goodwill impairment | - | - | - | - | - | 23,985 | - | - | |||||||||||||
Regulatory provision | - | - | - | - | - | - | - | 55,169 | |||||||||||||
Other regulatory and governmental fees | - | - | - | - | - | 133 | 91 | 23 | |||||||||||||
Other, net | - | - | - | - | (51) | (8) | (34) | (26) | |||||||||||||
ADJUSTED EBITDA | $ | 2,731 | $ | 4,595 | $ | 3,548 | $ | 3,239 | $ | 3,756 | $ | 3,481 | $ | 2,123 | $ | 1,558 | |||||
Active service connections at period end | 39,731 | 39,644 | 39,342 | 39,011 | 38,459 | 38,923 | 38,665 | 38,492 |
GLOBAL WATER RESOURCES, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS For the Three Months and Years Ended December 31, 2011 and 2010 (Unaudited) |
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Three Months Ended December 31, |
Years Ended December 31, |
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2011 | 2010 | 2011 | 2010 | ||||||||||||||||||||||
(in thousands of US$) | |||||||||||||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||||||||||||||||
Net income (loss) | $ | (1,406) | $ | 367 | $ | (3,308) | $ | (85,041) | |||||||||||||||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: |
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Deferred compensation | 65 | 33 | 471 | 58 | |||||||||||||||||||||
Depreciation | 2,738 | 2,619 | 10,487 | 7,472 | |||||||||||||||||||||
Amortization of deferred debt issuance costs and discounts | 55 | 222 | 243 | 533 | |||||||||||||||||||||
Goodwill impairment | - | - | - | 23,985 | |||||||||||||||||||||
Regulatory provision | - | - | - | 55,169 | |||||||||||||||||||||
Loss on disposal of fixed and intangible assets | - | (22) | 45 | 4 | |||||||||||||||||||||
Gain on advance in aid of construction purchase | - | (22) | (22) | (93) | |||||||||||||||||||||
Gain on settlement of acquisition liability | - | 161 | (80) | 161 | |||||||||||||||||||||
Imputed interest expense on deferred payments for acquisitions - net of cash paid |
157 | 222 | (191) | (191) | |||||||||||||||||||||
Provision for doubtful accounts receivable | 45 | 33 | 185 | 64 | |||||||||||||||||||||
Deferred income tax benefit | (795) | (2,607) | (1,972) | (3,847) | |||||||||||||||||||||
Changes in assets and liabilities - excluding effects of acquisitions: |
|||||||||||||||||||||||||
Accounts receivable | (11) | 150 | (1,218) | (786) | |||||||||||||||||||||
Other current assets | 995 | 929 | (675) | 118 | |||||||||||||||||||||
Stored water credits | - | - | - | 2,005 | |||||||||||||||||||||
Accounts payable and other current liabilities | (2,203) | (1,879) | (298) | 3,066 | |||||||||||||||||||||
Other noncurrent assets | (4) | (9) | (80) | (56) | |||||||||||||||||||||
Other noncurrent liabilities | 42 | (25) | 412 | (58) | |||||||||||||||||||||
Deferred stored water credits revenue | - | - | - | (2,151) | |||||||||||||||||||||
Net cash provided by (used in) operating activities |
(322) | 172 | 3,999 | 412 | |||||||||||||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||||||||||||||||
Capital expenditures | (2,176) | (1,764) | (7,338) | (5,541) | |||||||||||||||||||||
Proceeds from disposal of fixed and intangible assets | 1 | 63 | 35 | 63 | |||||||||||||||||||||
Deposits of restricted cash | (8) | (22) | (62) | (83) | |||||||||||||||||||||
Deposits received | (1) | - | 7 | 4 | |||||||||||||||||||||
Acquisition of utilities - deferred acquisition payments | - | (365) | (4,381) | (2,999) | |||||||||||||||||||||
Net cash used in investing activities | (2,184) | (2,088) | (11,739) | (8,556) | |||||||||||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||||||||||||||||
Repayment of bonds | (1,260) | (705) | (1,260) | (705) | |||||||||||||||||||||
Loan borrowings | 3,500 | 4,643 | 16,510 | 10,550 | |||||||||||||||||||||
Loan repayments | (62) | (44,429) | (21,903) | (46,845) | |||||||||||||||||||||
Related-party loan proceeds | - | - | - | 2,300 | |||||||||||||||||||||
Related-party loan repayments | - | (150) | - | (300) | |||||||||||||||||||||
Debt issuance costs paid | - | (17) | (34) | (283) | |||||||||||||||||||||
Contributions from members | - | - | - | 3,204 | |||||||||||||||||||||
Distributions to members | - | (692) | - | (2,104) | |||||||||||||||||||||
Net proceeds from the sale of stock | - | 52,208 | 4,011 | 51,659 | |||||||||||||||||||||
Advances in aid of construction, net of refunds paid | (161) | (3) | (27) | 436 | |||||||||||||||||||||
Contributions in aid of construction under ICFA and other agreements | 2,264 | 115 | 2,513 | 389 | |||||||||||||||||||||
Net cash provided by (used in) financing activities |
4,281 | 10,970 | (190) | 18,301 | |||||||||||||||||||||
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 1,775 | 9,054 | (7,930) | 10,157 | |||||||||||||||||||||
CASH AND CASH EQUIVALENTS - Beginning of period | 458 | 1,109 | 10,163 | 6 | |||||||||||||||||||||
CASH AND CASH EQUIVALENTS - End of period | $ | 2,233 | $ | 10,163 | $ | 2,233 | $ | 10,163 |
Ross Marshall
Investor Relations
Tel: 416.815.0700 ext. 238
Email: [email protected]
www.gwresources.com
www.gwfathom.com
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