 PHOENIX, Aug. 05, 2020 GLOBE NEWSWIRE -- Global Water Resources, Inc. NASDAQ: GWRS, TSX: GWR, a pure-play water resource management company, reported results for the second quarter ended June 30, 2020. All quarterly comparisons are to the same year-ago period unless otherwise noted. Q2 2020 Financial Highlights Revenues increased 8.4 to 9.9 million, driven by organic connection growth, increased consumption, and increased rates. Net loss totaled 0.1 million, or 0.01 per share. The net loss was largely due to asset disposal costs of 0.5 million and restricted stock compensation expense of 0.6 million, both of which are non-cash and did not occur in the same year-ago quarter. Excluding the tax effected non-cash asset disposal costs and restricted stock compensation expense, adjusted net income was 0.8 million, or 0.03 per share in the second quarter of 2020 see reconciliation of adjusted net income and adjusted earnings per common share, each, non-GAAP terms, to GAAP, below. Adjusted EBITDA increased to 4.8 million see definition of adjusted EBITDA, a non-GAAP term, and its reconciliation to GAAP, below. Cash and cash equivalents totaled 15.5 million at June 30, 2020. During the quarter, the company replaced its previous credit line with a new two-year revolving 10 million credit line with more favorable terms to support its growth strategy. The full amount under this new credit line remains available to-date. Declared three monthly cash dividends of 0.0241 per common share or 0.2892 per share on an annualized basis.Q2 2020 Operational Highlights Total active connections increased 4.2 to 46,573 at June 30, 2020 from 44,715 at June 30, 2019. Q2 annualized active connection growth rate was 3.3. Appointed noted utility industry leader, Christopher D. Krygier, to the new position of chief strategy officer. Krygier brings more than 15 years of experience in operations management, regulatory strategy, and capital deployment for large projects and transactions, along with multi-state experience and industry knowledge. Continued to realize benefits from bringing customer service and billing in-house last December, including better control of long-term service costs, and benefits derived from a deeper focus on customer experience and enhanced scalability of operations.Management CommentaryIn Q2, we continued to focus on management of the COVID-19 pandemic and the related impacts on our company and the communities we have the privilege to serve, commented Global Water Resources president and CEO, Ron Fleming. While the pandemic did not have a material impact on our uncollectable accounts, we believe it may have slowed the increase in new connections. As part of our pandemic response, we expanded our customer assistance program to more accounts, including disabled individuals and deployed military, and increased the annual benefit from 250 to 700.We have continued to realize benefits from bringing our customer service and billing operations in-house, which has only been magnified by our efforts in working proactively with our customers at this challenging time. Our real-time conservation alerts benefit both the environment and customers by notifying them when their water usage is high or close to a preset limit. In 2019, we sent 10,000 alerts that resulted in an estimated savings of 8 million gallons. These alerts not only save water, but save our customers money. Our customer service platform is now utilized by 66 of our customers, making Global Water a top three water provider in terms of platform utilization. Beyond smart metering and proactive conservation measures, since 2003, we have recycled more than 8.5 billion gallons of water.We will be filing a new rate case with regulators later this month and will be requesting a modest rate increase to our primary customer base. We dont expect a decision on rates before September of next year and have requested that they not be effective until January 1, 2022, as we hope to further assure any rate increase is well beyond the current pandemic.Our ongoing commitment is to provide safe and reliable water service including a strong focus on efficiency and conservation. Our new chief strategy officer, Chris Krygier, shares these core values and supports our plans to expand our Total Water Management platform. His leadership experience across many areas and localities, including utility management, acquisitionintegration, finance, and regulatory affairs, also supports these aims. His knowledge and expertise will also assist us as we file a new rate case with regulators later this month.As we pursue these business objectives, we will continue to apply our integrated utility solution and expertise to create benefits for all stakeholders, from the communities and customers we serve, to our development and municipal partners, dedicated staff, and regulators. The continued expansion of our platform will help us to pursue the many water and wastewater opportunities emerging in the growth corridors around metropolitan Phoenix.We have always taken a disciplined approach to growth and long-term value creation. This includes our planned expansions into new service areas and the upgrade of acquired utilities. Our ample liquidity and capital resources allow us to pursue these objectives both organically and through acquisitions.Organic growth projects include providing an integrated utility solution for Inland Port Arizona within the City of Coolidge which we announced last year. For the Inland Port project, we recently submitted our application for a certificate of convenience and necessity, and we anticipate its approval before the end of the year. We see this project benefiting us in multiple ways, including adding, for the first time, a large industrial service area to our portfolio which will drive commercial and residential growth in the surrounding area.Finally, we recently joined the National Association of Water Companies, which provides a great opportunity to connect with and learn from the organizations experienced leadership and other members as we strive to remain at the forefront of the water management industry. We believe this access will help us advance our goals related to environmental stewardship, enhancing water quality and services, and investing in infrastructure.Q2 2020 Financial SummaryRevenuesTotal revenues in the second quarter of 2020 increased 0.8 million, or 8.4, to 9.9 million compared to 9.1 million in the same period in 2019. This increase was primarily driven by organic connection growth combined with an increase in usage and rates. Total revenues for the first half of 2020 increased 1.3 million, or 7.6, to 18.1 million compared to 16.8 million in the same period in 2019. This increase was primarily driven by organic connection growth along with an increase in usage and rates. Operating ExpensesOperating expenses increased 1.3 million, or 18.7, to 8.2 million in the second quarter of 2020. The increase was primarily attributed to an increase in general and administrative expenses which was driven by an increase in non-cash deferred compensation expenses of 0.6 million from the same year ago period, primarily due to restricted stock issued in the quarter. Additionally, there was an increase in personnel and related expenses of 0.2 million due to the addition of new employees. Lastly, depreciation expense increased by 0.2 million as a result of increased fixed assets associated with the companys capital investment program.Operating expenses for the first half of 2020 increased 1.2 million, or 8.9, to 14.6 million compared to 13.4 million in the same period in 2019.Other ExpenseTotal other expense increased 0.7 million to 1.8 million in the second quarter of 2020. The increase in other expense was primarily attributed to the 0.5 million loss on asset disposals recognized during the three months ended June 30, 2020.Total other expense increased 1.7 million to 3.0 million for the first half of 2020, compared to 1.3 million for the same period in 2019. The increase in other expense was primarily attributed to the receipt of the final 1.0 million of proceeds in March 2019 in connection with the 2013 sale of water management agreements relating to the 7,000-acre territory within a portion of the western planning area of the City of Glendale, Arizona, known as the Loop 303 Corridor. The increase was also driven by the loss on asset disposals recognized during the first half of 2020.Net IncomeLoss Net loss was 0.1 million in the second quarter of 2020, compared to net income of 0.8 million, or 0.04 per share, in the same period in 2019. The loss was primarily driven by increased other expense due to non-cash asset disposals, and the increased non-cash deferred compensation expense associated with the restricted stock issuance recognized during the second quarter of 2020. Excluding the tax effected non-cash asset disposal cost and restricted stock compensation expense, adjusted net income was 0.8 million, or 0.03 per share in the second quarter of 2020 see reconciliation of adjusted net income and adjusted earnings per common share, each, non-GAAP terms, to GAAP, below. Net income decreased 1.2 million, or 83.7, to 0.2 million, or 0.01 per share, for the first half of 2020, from 1.4 million, or 0.07 per share, for the same period in 2019. The decrease was primarily attributed to the final payout pursuant to the Loop 303 contracts received in the first quarter of 2019, combined with the loss on asset disposals and the increased non-cash deferred compensation expense associated with the restricted stock issuance recognized during the first half of 2020. 