GWR Global Water Resources Corp. reports fourth quarter and fiscal 2014 results
PHOENIX, AZ, March 25, 2015 /CNW/ - GWR Global Water Resources Corp. (the "Company") (TSX: GWR) (OTCQX: GWGWF) today reported its financial results for the quarter and year ended December 31, 2014. 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.
Fiscal 2014 Highlights
- Grew the number of active service connections to 43,568 at December 31, 2014 compared with 42,726 at December 31, 2013, representing a 2% annual increase;
- Excluding impacts from the gain on regulatory order (rate case) in 2014, Company achieved approximately $15.9 million of EBITDA for the year ended December 31, 2014 compared to $12.7 million for the year ended December 31, 2013. This represents a year over year increase of 25.6%;
- Received approval for a rate increase from the Arizona Corporation Commission ("ACC"), in February 2014, reflecting a $4.3 million annual increase in revenue based on a 2011 test year. This revenue will be phased-in beginning January 2015;
- Restored $66.8 million in balance sheet equity from the reversal of a 2010 regulatory provision;
- Refinanced $21.8 million of debt into a low interest facility with a 10 year term and a 20 year amortization, freeing up approximately $2.0 million in annual cash flow for the next five years;
- Completed the Executive Management Transition Plan through the appointment of Ron Fleming as President and CEO and Mike Liebman as Senior Vice President and Chief Financial Officer; and,
- Announced an annual dividend of $0.264 CAD in the second quarter of 2014 and a subsequent increase to $0.288 CAD in the fourth quarter, an approximate 9% increase.
Highlights Subsequent to Year-End
- Announced a settlement agreement, with stipulated condemnation, for the transfer of Valencia Water Company's assets to the City of Buckeye for $55.0 million in up-front payments and a growth premium worth up to $45.0 million. The transaction, which is subject to financing and approval by the Maricopa County Superior Court, is expected to close in the third quarter of 2015;
- Entered into an agreement to sell the assets of Willow Valley Water Company for approximately $2.5 million, subject to certain post-closing adjustments. This transaction is subject to ACC approval, which is anticipated to occur in the latter half of 2015; and,
- Announced a second increase on the annual dividend to $0.312 CAD, reflecting an approximate 8% increase.
"Over the past year, we've successfully executed many of the key initiatives as defined in our Strategic Plan approved by the Board in late 2012, including completing a significant rate case, initiating a strong dividend policy, refinancing a portion of our debt, and now have signed agreements to beneficially divest of non-core assets," stated Ron Fleming, President and CEO of Global Water. "Together, these initiatives have begun to surface the underlying value of Global Water, which we believe will continue as we further position the company for optimal long term results."
Summary of Financial Results
Consolidated Revenues
Consolidated revenues for the quarter and year ended ended December 31, 2014, were $7.9 million and $32.6 million, respectively, compared to $7.8 million and $33.4 million for the same periods in the prior year.
Total revenues decreased $0.9 million, or 2.6%, for the year ended December 31, 2014 compared with the same period in the previous year. This decrease is attributed to a decrease in unregulated revenues due to the absence of FATHOM-related revenues. Subsequent to the sale of Global Water Management ("GWM"), on June 5, 2013, Global Water no longer records FATHOM-related revenues.
Operating Expenses
Operating expenses came in at $7.0 million and $(22.2) million for the quarter and year ended December 31, 2014, compared to $6.3 million and $31.4 million recorded for the same periods in the prior year. The difference in fiscal 2014 compared to fiscal 2013 was primarily attributed to the $50.7 million gain on regulatory order recognized in connection with the ACC's regulatory reversal.
Excluding the gain on regulatory order, operating expenses for the year ended December 31, 2014, were $28.4 million, which is a 9.5% reduction from the prior year.
Net Income
Global Water's income totaled $64.9 million for the year ended December 31, 2014, compared to a net loss of $6.0 million for the year ended December 31, 2013. This difference was primarily attributed to the $50.7 million gain on regulatory order and the $17.0 million income tax benefit recognized in the current year in connection with the release of the deferred income tax valuation allowance.
Excluding the gain on regulatory order and the release of the income tax valuation allowance, net loss for the year ended December 31, 2014 was $2.7 million, which reflects a 54.8% improvement over the prior year.
EBITDA
EBITDA for the quarter and year ended December 31, 2014 was $3.9 million and $66.6 million, respectively, compared to $4.6 million and $12.7 million for the same periods last year. The year over year increase was primarily attributed to the $50.7 million gain on regulatory order recorded in 2014 regarding the ACC's February 2014 rate decision.
Excluding the gain on regulatory order, EBITDA for the year ended December 31, 2014 was $15.9 million, which reflects a 25.6% improvement over the prior year. This improvement was primarily attributed to the sale of Fathom and resulting operational efficiencies, as well as the elimination of gain on the Loop 303 Sale in 2013, improvement in results of our equity investment in FATHOM during 2014, and the Sierra Negra Ranch proceeds received in 2014.
Business Outlook
Global Water's growth strategy for its regulated water, wastewater and recycled water business is driven by increased services connections and continued operating efficiencies as well as utility rate increases approved by the ACC, the economic regulator. Population and community growth in the metropolitan Phoenix area served by Global Water's utilities have a direct impact on the Company's earnings.
In 2014, Global Water grew its active connections from 42,726 to 43,568, representing an increase of 842 connections or approximately 2%. Of the 842 active connections added this year, 627 were new homes built and 215 were previously vacant homes.
During the economic downturn, which began in 2008, the Company experienced an increase in the number of vacant homes in its utility areas. In February 2009, the number of vacancies reached its peak at 4,647 or 11.2% of Global Water's total service connections. By comparison, as of December 31, 2014, the level of vacant connections was at 1,667 or 3.7% of total service connections; the lowest vacancy rate since March 2008.
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 – paving the way for Global Water to meaningfully increase its active service connections and regulated revenues over the next five years. In addition to these positive trends, Global Water's recently approved rate increases starting in 2015, will contribute to additional top-line growth.
In March 2015, subsequent to year-end, Global Water made the following key announcements:
- On March 17, 2015, the Company reached a settlement agreement for a stipulated condemnation to transfer the assets of Valencia Water Company, Inc. ("Valencia") to the City of Buckeye ("Buckeye"). The agreement was subsequently approved by Buckeye's City Council on March 19, 2015. The terms of the settlement are that Buckeye will acquire all the assets of Valencia and assume operations of the utility upon close. Buckeye will pay the Company $55.0 million at close, subject to certain post-closing entries. Buckeye will also pay a growth premium equal to $3,000 for each new water meter installed within Valencia's prior service areas, for a 20-year period ending January 1, 2035, subject to a maximum payout of $45.0 million over the term of the agreement. The settlement agreement is subject to Buckeye receiving sufficient financing and approval by the Maricopa County Superior Court. We anticipate the deal to close within the next 90-120 days;
- On March 23, 2015, the Company reached an agreement to sell the assets of Willow Water Valley Co., Inc. ("Willow Valley") to EPCOR Water Arizona Inc. ("EPCOR"). The terms of the agreement are that EPCOR will purchase all the assets and rights used by Willow Valley to operate the utility system for approximately $2.5 million, subject to certain post-closing adjustments. The agreement is subject to final approval from the Arizona Corporate Commission ("ACC"). Global Water anticipates final ACC approval to occur in the latter half of 2015.
- On March 24, 2015, the Company announced that its board of directors declared, under its approved dividend policy, a monthly cash dividend on the common shares of the Company (the "Shares") in the amount of CAD $0.026 per Share (an annualized amount of CAD $0.312 per Share), which will be payable on April 30, 2015, to holders of record at the close of business on April 16, 2015. The dividend payment reflects an increase in the annual dividend of $.024 CAD, or approximately 8%.
Conference Call
Global Water will conduct a conference call on Wednesday, March 25, 2015, at 1:00p.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 90147182. The replay will expire at midnight (ET) on April 8, 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 end 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 December 31, 2014 and 2013 |
||||
(Unaudited) |
||||
December 31, 2014 |
December 31, 2013 |
|||
ASSETS |
(in thousands of US$, except share data) |
|||
CURRENT ASSETS: |
||||
Cash and cash equivalents |
$ 189 |
$ - |
||
Dividend receivable |
- |
- |
||
Other current assets |
18 |
- |
||
Total current assets |
207 |
- |
||
Equity method investment |
59,794 |
30,962 |
||
TOTAL ASSETS |
60,001 |
30,962 |
||
LIABILITIES AND SHAREHOLDERS' EQUITY |
||||
LIABILITIES: |
||||
Dividends Payable, accounts payable and accrued expenses |
212 |
10 |
||
Other noncurrent liabilities |
155 |
72 |
||
Deferred tax liability |
1,666 |
- |
||
Total liabilities |
2,033 |
82 |
||
COMMITMENTS AND CONTINGENCIES |
||||
SHAREDHOLDERS' EQUITY: |
||||
Common stock, unlimited shares authorized, 8,754,612 shares issued |
||||
and outstanding at December 31, 2014 and December 31, 2013 |
55,807 |
55,815 |
||
Retained earnings (accumulated deficit) |
2,161 |
(24,935) |
||
Total shareholders' equity |
57,968 |
30,880 |
||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
$ 60,001 |
$ 30,962 |
GWR GLOBAL WATER RESOURCES CORP. |
||||||||
STATEMENTS OF OPERATIONS |
||||||||
For the Three Months and Years Ended December 31, 2014 and 2013 |
||||||||
(Unaudited) |
||||||||
Three Months Ended December 31, |
12 Months Ended December 31, |
|||||||
2014 |
2013 |
2014 |
2013 |
|||||
GAIN (LOSS) FROM EQUITY INVESTMENT |
$ (403) |
$ 66 |
$ 31,225 |
$ (3,628) |
||||
OPERATING EXPENSES |
127 |
59 |
666 |
320 |
||||
OPERATING INCOME (LOSS) |
(530) |
7 |
30,559 |
(3,948) |
||||
INCOME (LOSS) BEFORE INCOME TAXES |
(530) |
7 |
30,559 |
(3,948) |
||||
INCOME TAX EXPENSE |
110 |
- |
(1,666) |
— |
||||
NET INCOME (LOSS) |
$ (420) |
$ 7 |
$ 28,893 |
$ (3,948) |
||||
WEIGHTED AVERAGE SHARES: |
||||||||
Basic |
8,754,612 |
8,754,612 |
8,754,612 |
8,754,612 |
||||
Diluted |
8,754,612 |
8,754,612 |
8,764,494 |
8,754,612 |
||||
EARNINGS (LOSS) PER SHARE: |
||||||||
Basic |
$ (0.05) |
$ 0.00 |
$3.30 |
$ (0.45) |
||||
Diluted |
$ (0.05) |
$ 0.00 |
$3.30 |
$ (0.45) |
GLOBAL WATER RESOURCES, INC. |
||||
CONSOLIDATED BALANCE SHEETS |
||||
As of December 31, 2014 and 2013 |
||||
(Unaudited) |
||||
December 31, 2014 |
December 31, 2013 |
|||
(in thousands of US$, except share data) |
||||
PROPERTY, PLANT AND EQUIPMENT: |
||||
Property, plant and equipment |
$ 318,995 |
$ 317,319 |
||
Less accumulated depreciation |
(78,571) |
(68,309) |
||
Net property, plant and equipment |
240,424 |
249,010 |
||
CURRENT ASSETS: |
||||
Cash and cash equivalents |
6,577 |
1,960 |
||
Accounts receivable – net |
1,365 |
1,474 |
||
Due from related party |
457 |
939 |
||
Accrued revenue |
1,762 |
1,809 |
||
Restricted cash |
- |
197 |
||
Prepaid expenses and other current assets |
541 |
631 |
||
Convertible note |
- |
- |
||
Deferred tax assets - current |
1,591 |
- |
||
Total current assets |
12,293 |
7,010 |
||
OTHER ASSETS: |
||||
Goodwill |
13,082 |
13,082 |
||
Intangible assets – net |
12,772 |
12,772 |
||
Regulatory assets |
400 |
400 |
||
Deposits |
25 |
28 |
||
Bond service fund and other restricted cash |
9,927 |
11,383 |
||
Debt issuance costs - net |
2,722 |
3,361 |
||
Convertible note |
- |
750 |
||
Equity method investment |
1,150 |
141 |
||
Deferred tax assets |
14,806 |
- |
||
Total other assets |
54,884 |
41,917 |
||
TOTAL |
$ 307,601 |
$ 297,937 |
||
LIABILITIES AND EQUITY (DEFICIT) |
||||
CURRENT LIABILITIES: |
||||
Accounts payable |
$ 1,531 |
$ 1,778 |
||
Accrued expenses |
6,832 |
3,793 |
||
Deferred revenue |
13 |
16 |
||
Customer and meter deposits |
2,601 |
2,579 |
||
Long-term debt – current portion |
2,653 |
4,172 |
||
Total current liabilities |
13,630 |
12,338 |
||
NONCURRENT LIABILITIES: |
||||
Long-term debt |
127,491 |
128,738 |
||
Deferred regulatory gain |
19,730 |
- |
||
Regulatory liability |
7,859 |
11,227 |
||
Advances in aid of construction |
89,206 |
97,253 |
||
Contributions in aid of construction – net |
17,096 |
74,774 |
||
Deferred income tax liability |
- |
589 |
||
Acquisition liability |
4,688 |
4,688 |
||
Other noncurrent liabilities |
221 |
1,172 |
||
Total noncurrent liabilities |
266,291 |
318,441 |
||
Total liabilities |
279,921 |
330,779 |
||
Commitments and contingencies |
||||
EQUITY (DEFICIT): |
||||
Common stock, $0.01 par value, 1,000,000 shares authorized, 182,050 shares |
2 |
2 |
||
Paid in capital |
50,639 |
55,048 |
||
Accumulated deficit |
(22,961) |
(87,892) |
||
Total equity (deficit) |
27,680 |
(32,842) |
||
TOTAL |
$ 307,601 |
$ 297,937 |
GLOBAL WATER RESOURCES, INC. |
||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||
For the Three Months and Years Ended December 31, 2014 and 2013 |
||||||||
(Unaudited) |
||||||||
Three Months Ended December 31, |
12 Months Ended December 31, |
|||||||
2014 |
2013 |
2014 |
2013 |
|||||
(in thousands of US$) |
||||||||
REVENUES: |
||||||||
Water services |
$ 4,245 |
$ 4,223 |
$ 18,076 |
$ 18,200 |
||||
Wastewater and recycled water services |
3,551 |
3,498 |
14,112 |
13,829 |
||||
Unregulated revenues |
117 |
45 |
371 |
1,405 |
||||
Total revenues |
7,913 |
7,766 |
32,559 |
33,434 |
||||
OPERATING EXPENSES: |
||||||||
Operations and maintenance |
2,563 |
2,460 |
10,418 |
11,995 |
||||
General and administrative |
2,199 |
1,671 |
8,809 |
9,623 |
||||
Gain on regulatory order |
- |
- |
(50,664) |
- |
||||
Depreciation |
2,279 |
2,134 |
9,205 |
9,801 |
||||
Total operating expenses |
7,041 |
6,265 |
(22,232) |
31,419 |
||||
OPERATING INCOME |
872 |
1,501 |
54,791 |
2,015 |
||||
OTHER INCOME (EXPENSE): |
||||||||
Interest income |
15 |
20 |
79 |
47 |
||||
Interest expense |
(3,025) |
(2,351) |
(9,512) |
(8,935) |
||||
Other |
781 |
978 |
2,578 |
849 |
||||
Total other income (expense) |
(2,229) |
(1,353) |
(6,855) |
(8,039) |
||||
INCOME (LOSS) BEFORE INCOME TAXES |
(1,357) |
148 |
47,936 |
(6,024) |
||||
INCOME TAX BENEFIT (EXPENSE) |
518 |
(11) |
16,995 |
(16) |
||||
NET INCOME (LOSS) |
$ (839) |
$ 137 |
$ 64,931 |
$ (6,040) |
||||
Net Income (Loss) and EBITDA per Share Information for the Three Months and Year Ended December 31, 2014 |
||||||||
(amounts in thousands of US dollars, except share data): |
||||||||
Three Months Ended December 31, |
Year Ended |
|||||||
Net Income (Loss) |
EBITDA |
Net Loss |
EBITDA |
|||||
Amount for the period ended December 31, 2014 |
$ (839) |
$ 3,932 |
$ 64,931 |
$ 66,574 |
||||
Weighted average number of GWRI shares outstanding |
||||||||
during the period ended December 31, 2014 |
182,050 |
182,050 |
182,050 |
182,050 |
||||
GWRI per share amount |
$ (4.61) |
$ 21.60 |
$ 356.67 |
$ 365.69 |
||||
GWRI per share, excluding SNR interest income, the gain |
||||||||
on regulatory order, income on equity method |
||||||||
investment and the release of the income tax valuation |
||||||||
allowance |
$ (8.00) |
$ 18.20 |
$ (22.11) |
$ 75.50 |
GLOBAL WATER RESOURCES, INC. CONSOLIDATED STATEMENTS OF OPERATIONS For the Eight Quarters Ended December 31, 2014 and 2013 (Unaudited) |
||||||||||||||||||
2014 |
2013 |
|||||||||||||||||
Q4 |
Q3 |
Q2 |
Q1 |
Q4 |
Q3 |
Q2 |
Q1 |
|||||||||||
REVENUES: |
||||||||||||||||||
Water services |
$ |
4,245 |
$ |
5,087 |
$ |
5,127 |
$ |
3,617 |
$ |
4,223 |
$ |
5,405 |
$ |
4,973 |
$ |
3,599 |
||
Wastewater and recycled water services |
3,551 |
3,584 |
3,612 |
3,365 |
3,498 |
3,536 |
3,482 |
3,313 |
||||||||||
Unregulated revenues |
117 |
124 |
116 |
14 |
45 |
49 |
634 |
677 |
||||||||||
Total revenues |
7,913 |
8,795 |
8,855 |
6,996 |
7,766 |
8,990 |
9,089 |
7,589 |
||||||||||
OPERATING EXPENSES: |
||||||||||||||||||
Operations and maintenance |
2,563 |
2,677 |
2,695 |
2,483 |
2,460 |
3,043 |
3,338 |
3,154 |
||||||||||
General and administrative |
2,199 |
1,841 |
2,280 |
2,489 |
1,671 |
2,608 |
2,535 |
2,809 |
||||||||||
Gain on regulatory order |
- |
- |
- |
(50,664) |
- |
- |
- |
- |
||||||||||
Depreciation |
2,279 |
2,255 |
2,427 |
2,244 |
2,134 |
2,306 |
2,664 |
2,697 |
||||||||||
Total operating expenses |
7,041 |
6,773 |
7,402 |
(43,448) |
6,265 |
7,957 |
8,537 |
8,660 |
||||||||||
OPERATING INCOME (LOSS) |
872 |
2,022 |
1,453 |
50,444 |
1,501 |
1,033 |
552 |
(1,071) |
||||||||||
OTHER INCOME (EXPENSE): |
||||||||||||||||||
Interest income |
15 |
23 |
22 |
19 |
20 |
20 |
6 |
1 |
||||||||||
Interest expense |
(3,025) |
(2,111) |
(2,152) |
(2,224) |
(2,351) |
(2,209) |
(2,136) |
(2,239) |
||||||||||
Other |
781 |
23 |
(147) |
1,921 |
978 |
1,818 |
(1,964) |
17 |
||||||||||
Total other income (expense) |
(2,229) |
(2,065) |
(2,277) |
(284) |
(1,353) |
(371) |
(4,094) |
(2,221) |
||||||||||
INCOME (LOSS) BEFORE INCOME TAXES |
(1,357) |
(43) |
(824) |
50,160 |
148 |
662 |
(3,542) |
(3,292) |
||||||||||
INCOME TAX BENEFIT (EXPENSE) |
518 |
17 |
335 |
16,125 |
(11) |
(2) |
(1) |
(2) |
||||||||||
NET INCOME (LOSS) |
$ |
(839) |
$ |
(26) |
$ |
(489) |
$ |
66,285 |
$ |
137 |
$ |
660 |
$ |
(3,543) |
$ |
(3,294) |
||
Income tax benefit |
$ |
(518) |
$ |
(17) |
$ |
(335) |
$ |
(16,125) |
$ |
11 |
$ |
2 |
$ |
1 |
$ |
2 |
||
Interest income |
(15) |
(23) |
(22) |
(19) |
(20) |
(20) |
(6) |
(1) |
||||||||||
Interest expense |
3,025 |
2,111 |
2,152 |
2,224 |
2,351 |
2,209 |
2,136 |
2,239 |
||||||||||
Depreciation |
2,279 |
2,255 |
2,427 |
2,244 |
2,134 |
2,306 |
2,664 |
2,697 |
||||||||||
EBITDA |
$ |
3,932 |
$ |
4,300 |
$ |
3,733 |
$ |
54,609 |
$ |
4,613 |
$ |
5,157 |
$ |
1,252 |
$ |
1,643 |
||
Adjusted EBITDA |
$ |
3,314 |
$ |
4,367 |
$ |
3,966 |
$ |
2,098 |
$ |
3,767 |
$ |
3,346 |
$ |
3,261 |
$ |
1,643 |
||
Active Service Connections |
43,568 |
43,374 |
43,202 |
42,984 |
42,726 |
42,482 |
42,112 |
41,607 |
||||||||||
Adjusted EBITDA is defined as EBITDA adjusted for the gain or loss related to non-recurring events. Adjustments include: (a) the regulatory gain related to Rate Decision 74364; (b) interest income related to the SNR litigation; (c) income (loss) on equity investment; (d) gain on sale 303 sale; (e) loss on sale of FATHOM |
GLOBAL WATER RESOURCES, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS For the Three Months and Years Ended December 31, 2014 and 2013 (Unaudited) |
||||||||||||
Three Months Ended December 31, |
Year Ended December 31, |
|||||||||||
2014 |
2013 |
2014 |
2013 |
|||||||||
(in thousands of US$) |
||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: |
||||||||||||
Net income (loss) |
$ |
(839) |
$ |
137 |
$ |
64,931 |
$ |
(6,040) |
||||
Adjustments to reconcile net income (loss) to net cash provided by |
||||||||||||
Deferred compensation |
269 |
180 |
1,361 |
576 |
||||||||
Depreciation |
2,279 |
2,134 |
9,205 |
9,801 |
||||||||
Amortization of deferred debt issuance costs and discounts |
68 |
179 |
334 |
435 |
||||||||
Write-off of debt issuance costs |
696 |
- |
696 |
- |
||||||||
Loss on disposal of fixed assets |
- |
- |
6 |
2 |
||||||||
Loss on disposal of GWM net assets |
- |
- |
- |
1,934 |
||||||||
Gain on sale of 303 assets |
- |
(1,130) |
- |
(3,265) |
||||||||
(Gain) Loss on equity method investment |
(617) |
308 |
(144) |
707 |
||||||||
Gain on regulatory order |
- |
- |
(50,664) |
- |
||||||||
Other gains |
(56) |
- |
(56) |
- |
||||||||
Provision for doubtful accounts receivable |
28 |
(34) |
83 |
99 |
||||||||
Deferred income tax expense (benefit) |
(518) |
11 |
(16,995) |
16 |
||||||||
Changes in assets and liabilities: |
||||||||||||
Accounts receivable |
111 |
309 |
26 |
(302) |
||||||||
Other current assets |
154 |
473 |
- |
(2,353) |
||||||||
Accounts payable and other current liabilities |
(2,417) |
(4,109) |
(227) |
213 |
||||||||
Other noncurrent assets |
6 |
2 |
34 |
352 |
||||||||
Other noncurrent liabilities |
204 |
(4) |
3,056 |
(106) |
||||||||
Net cash provided by operating activities |
(632) |
(1,544) |
11,646 |
2,069 |
||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: |
||||||||||||
Capital expenditures |
(601) |
(574) |
(1,655) |
(5,294) |
||||||||
Proceeds from the disposal of fixed assets |
16 |
1 |
16 |
13 |
||||||||
Net cash received from the sale of GWM |
- |
- |
- |
1,771 |
||||||||
Initial proceeds received from the sale of 303 contracts |
- |
1,130 |
- |
3,130 |
||||||||
Withdrawals (deposits) of restricted cash |
1 |
590 |
198 |
(197) |
||||||||
Insurance proceeds from property damage claim. |
8 |
- |
8 |
- |
||||||||
Deposits received (paid) |
2 |
5 |
2 |
15 |
||||||||
Net cash used in investing activities |
(574) |
1,152 |
(1,431) |
(562) |
||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: |
||||||||||||
Repayments of bond debt |
(12,347) |
(2,475) |
(12,347) |
(2,475) |
||||||||
Deposits in bond service fund |
(1,000) |
- |
(1,000) |
- |
||||||||
Proceeds withdrawn from bond service fund |
626 |
- |
626 |
- |
||||||||
Loan borrowings |
21,800 |
- |
21,800 |
- |
||||||||
Loan repayments |
(9,383) |
(601) |
(10,390) |
(605) |
||||||||
Principal payments under capital leases |
(20) |
(15) |
(105) |
(84) |
||||||||
Debt issuance costs paid |
(300) |
- |
(346) |
(195) |
||||||||
Advances in aid of construction |
64 |
71 |
365 |
460 |
||||||||
Contributions in aid of construction under ICFA agreements |
- |
221 |
- |
221 |
||||||||
Refunds of advances for construction |
(11) |
(180) |
(747) |
(685) |
||||||||
Dividends paid |
(1,140) |
- |
(3,454) |
- |
||||||||
Net cash used in financing activities |
(1,711) |
(2,979) |
(5,598) |
(3,363) |
||||||||
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS |
(2,917) |
(3,371) |
4,617 |
(1,856) |
||||||||
CASH AND CASH EQUIVALENTS – Beginning of period |
9,494 |
5,331 |
1,960 |
3,816 |
||||||||
CASH AND CASH EQUIVALENTS – End of period |
$ 6,577 |
$ 1,960 |
$ 6,577 |
$ 1,960 |
SOURCE GWR Global Water Resources Corp.
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Marina Proskurovsky, Investor Relations | TMX Equicom, Tel: 416.815.0700 ext. 288, Email: [email protected], www.gwresources.com
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