Artesian Resources Corporation Reports First Quarter 2012 Results

May 08, 2012, 15:26 ET from Artesian Resources Corporation

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



RELATED LINKS

http://www.artesianwater.com