Global Water Resources Inc ( GWRS ) reported fourth-quarter FY23 sales growth of 11.4% year-on-year to $12.368 million, beating the analyst consensus estimate of $12.00 million.

The increase in revenue was primarily driven by an increase in new connections associated with the acquisition of Farmers Water in February 2023.

Operating expenses for the quarter grew 8.5% to $10.7 million. Adjusted EBITDA increased 5.9% to $5.8 million.

Operating income increased 34.8% to $1.66 million, with an operating margin of 13.4%. Active service connections increased 9.8% to 61,791 as of December 31, 2023.

“Our strong financial results were primarily driven by increased rates, and organic growth in connections along with the addition of new connections from the acquisition of Farmers Water,” said Global Water Resources ( GWRS ) president and CEO Ron Fleming. 

The company reported Adjusted EPS of $0.07 and GAAP EPS of $0.05. Analysts expected the company to report $0.04.

The company held $4.76 million in cash and equivalents as of December 31, 2023.

Price Action: GWRS shares closed lower by 1.21% at $13.01 on Wednesday.