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Business Segment Information
 9 Months Ended
Sep. 30, 2025
Segment Reporting [Abstract]  
Business Segment Information Business Segment Information
Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluate regularly by the CODM in deciding how to allocate resources and in assessing operating performance. At September 30, 2025, the Company is organized and operated as one operating and reportable segment as the Company is not organized around specific products and services, geographic regions, or regulatory environments. Further, the Company currently operates in one geographic region within the State of Arizona, wherein each operating utility operates within the same regulatory environment. Operating revenue is substantially derived from regulated water, wastewater, and recycled water service provided to customers based upon tariff rates approved by the ACC. Refer to Note 4 — “Revenue Recognition” for additional information on the Company’s sources of revenue, and refer to the condensed consolidated financial statements (unaudited) for measures of profit and loss, total assets, and capital expenditures of the Company.
The Company’s CODM is the Chief Executive Officer. While the Company reports revenue disaggregated by service type on the face of its condensed consolidated financial statements (unaudited), the Company does not manage the business based on any performance measure at the individual revenue stream level. The CODM uses consolidated financial information, as outlined below, to evaluate performance against budget and peers and to make all significant decisions regarding the allocation of the Company’s resources, and communicate results and performance to the Company’s board of directors.
The CODM regularly reviews the results of the Company based on GAAP net income as well as non-GAAP measures, EBITDA and Adjusted EBITDA. The Company defines EBITDA as net income before interest, income taxes, depreciation, and amortization and Adjusted EBITDA as EBITDA excluding the gain or loss related to (i) nonrecurring events; (ii) restricted stock expense related to awards made to employees and the board of directors; and (iii) disposal of assets, as applicable. Management believes that EBITDA and Adjusted EBITDA are useful supplemental measures of the Company’s operating performance and provide the Company’s investors meaningful measures of overall corporate performance. EBITDA is also presented because management believes that it is frequently used by investment analysts, investors, and other interested parties as a measure of financial performance. Adjusted EBITDA is also presented because management believes that it provides the Company’s investors an additional measure of the Company’s recurring core business. A reconciliation of net income to EBITDA and Adjusted EBITDA for the three and nine months ended September 30, 2025 and 2024 is as follows (in thousands):
Three Months Ended
September 30,		Nine Months Ended
September 30,
2025202420252024
Net Income$1,717 $2,925 $3,920 $5,346 
Income tax expense640 1,061 1,440 1,909 
Interest income(45)(240)(360)(744)
Interest expense1,490 1,504 4,464 4,577 
Depreciation and amortization3,555 2,933 10,200 8,863 
EBITDA7,357 8,183 19,664 19,951 
Gain on disposal of fixed assets— 12 — (5)
Restricted stock expense256 123 526 606 
Acquisition gain resulting from regulatory decision— — — (37)
Gain on adjustment of contingent consideration liability— (119)— (119)
Storm-related expenses
172 — 172 — 
EBITDA adjustments428 16 698 445 
Adjusted EBITDA$7,785 $8,199 $20,362 $20,396 
The CODM reviews the following significant expense categories:
Three Months Ended
September 30,		Nine Months Ended
September 30,
2025202420252024
Segment Revenue$15,519 $14,321 $42,217 $39,441 
Segment Expenses
Personnel costs - operations and maintenance1,436 1,099 4,132 3,576 
Utilities, chemicals and repairs1,229 1,153 3,444 3,028 
Other operations and maintenance expenses1,458 1,192 4,151 3,609 
Personnel costs - general and administrative2,470 2,100 6,901 6,486 
Professional fees525 381 1,433 1,314 
Other general and administrative expenses1,924 1,479 5,159 4,517 
Depreciation and amortization3,555 2,933 10,200 8,863 
Total operating expenses12,597 10,337 35,420 31,393 
Operating income2,922 3,984 6,797 8,048 
Other Income (Expense)
Buckeye growth premiums615 918 1,848 2,175 
Other segment income and expenses(1,180)(916)(3,285)(2,968)
Total other expense(565)2 (1,437)(793)
Income tax expense(640)(1,061)(1,440)(1,909)
Net Income$1,717 $2,925 $3,920 $5,346 
Other operations and maintenance and other general and administrative expenses include contract services, business development, board compensation, rent, insurance and taxes other than income taxes. Other segment income expenses include interest income, interest expense, AFUDC, and gains and losses on disposal of assets.