2014

Artesian Resources Corporation Reports First Quarter 2012 Results

NEWARK, Del., May 8, 2012 /PRNewswire/ -- Artesian Resources Corporation, (Nasdaq: ARTNA), a leading provider of water, wastewater and engineering services on the Delmarva Peninsula,  today announced that revenues for the first quarter of 2012 were $16.7 million, a 13.2% increase from the $14.8 million in revenues recorded for the same three-month period of 2011.

Net income for the quarter grew to $2.5 million from the $1.0 million in net income recorded during the first quarter of 2011, primarily resulting from an increase of $2.1 million in revenue from water sales and a $0.5 million decline in operating expenses. As a result, diluted net income per share increased to $0.29 compared to $0.13 for the first quarter of 2011.

The addition last year of nearly 2,000 customers in Delaware and Cecil County, Maryland contributed to a 16.5% increase in water sales during the first quarter of 2012. Revenues from water sales were also higher as compared to the same three month period of 2011 due to a water rate increase in 2011, which was granted by the Delaware Public Service Commission to enable Artesian to recover prior investments in its water system. The delay in collecting revenues to pay for the investments had depressed Artesian's fiscal performance in the first quarter of 2011.

Artesian continued to tightly manage operating expenses during the first quarter of 2012. Excluding depreciation and income taxes, operating expenses decreased $0.5 million, or 5.7%, to $9.5 million for the three months ended March 31, 2012, compared to $10.0 million for the same period in 2011. Among other measures, Artesian lowered its operating expenses by negotiating a more cost-effective contract for electric generation and by reducing non-utility payroll and other expenses.

"Our growth strategies are providing rewards for our customers, our communities and our investors," Taylor said. "We are investing in the infrastructure that our communities need to grow.  At the same time, we are focused on improving the service we provide to all customers. I would like to particularly thank our management team and employees for controlling our expenses." 

As a convenience to customers, Artesian converted to monthly billing as of April 1 to enable customers to better manage their budget and monitor their water consumption. The company also recently instituted e-Billing, a free electronic billing service for customers.

Artesian announced on April 25 that it is increasing its dividend by 2.5%, raising its annual dividend to $0.7912 per share. Artesian has increased its dividend each year for the past 15 years.

About Artesian Resources

Artesian Resources Corporation operates as the holding company of eight wholly-owned subsidiaries offering water, wastewater and engineering services on the Delmarva Peninsula. Artesian Water Company, the principal subsidiary, is the oldest and largest investor-owned public water utility on the Delmarva Peninsula, and has been providing water service since 1905.

  








Artesian Resources Corporation

Condensed Consolidated Statements of Operations

(In thousands, except per share amounts)

(Unaudited)










Three months ended




March 31,




2012



2011


Operating Revenues







Water sales

$

15,044


$

12,916


Other utility operating revenue


735



746


Non-utility revenue


919



1,095




16,698



14,757









Operating Expenses







Utility operating expenses


7,929



8,078


Non-utility operating expenses


498



940


Depreciation and amortization


1,960



1,810


State and federal income taxes


1,688



694


Property and other taxes


1,033



1,016




13,108



12,538









Operating Income


3,590



2,219









Allowance for funds used during construction 


34



35


Miscellaneous


653



597









Income Before Interest Charges


4,277



2,851









Interest Charges


1,772



1,842









Net Income 

$

2,505


$

1,009









Weighted Average Common Shares Outstanding - Basic


8,626



7,651


Net Income per Common Share - Basic

$

0.29


$

0.13









Weighted Average Common Shares Outstanding - Diluted


8,663



7,699


Net Income per Common Share - Diluted

$

0.29


$

0.13























 

Artesian Resources Corporation

Condensed Consolidated Balance Sheets

(In thousands)

(Unaudited)









March 31,


December 31,



2012


2011


Assets







Utility Plant, at original cost less 







accumulated depreciation

$

354,552


$

353,397


Current Assets


11,077



13,250


Regulatory and Other Assets


12,184



12,090



$

377,813


$

378,737









Capitalization and Liabilities














Stockholder's Equity

$

114,374


$

112,997


Long Term Debt, Net of Current Portion


106,243



106,539


Current Liabilities


22,060



24,660


Advances for Construction


14,249



14,405


Contributions in Aid of Construction


75,840



77,306


Other Liabilities


45,047



42,830



$

377,813


$

378,737









SOURCE Artesian Resources Corporation



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