Global Water Resources (NASDAQ:GWRS) reported higher first-quarter revenue but swung to a loss as increased depreciation, operating costs and interest expense weighed on results, management said on the company’s May 14 earnings call.
President and Chief Executive Officer Ron Fleming said the company remains focused on long-term earnings growth, but near-term results continue to reflect the cost of recent investments, including the recommissioning of the Southwest Plant Water Reclamation facility. Fleming said those investments are expected to grow rate base and support future earnings, but they also increased operating expenses, “most notably, depreciation expense.”
