Artesian Resources Corporation Reports Second Quarter 2013 Results

08 Aug, 2013, 16:01 ET from Artesian Resources Corporation

NEWARK, Del., Aug. 8, 2013 /PRNewswire/ -- Artesian Resources Corporation (Nasdaq: ARTNA), a leading provider of water, wastewater services and related services on the Delmarva Peninsula, today announced that net income for the second quarter of 2013 was $2.5 million, a decrease of $0.2 million, or 8.6%, compared to $2.7 million in net income recorded during the second quarter of 2012.  Diluted net income per share decreased to $0.28 compared to $0.32 for the second quarter of 2012.

Revenues for the second quarter of 2013 were $17.8 million, a 0.7% decrease from the $17.9 million in revenues recorded for the same three month period of 2012.  A reduction in water consumption decreased water sales revenue $0.1 million, or 0.5%, to $16.1 million for the second quarter of 2013, compared to $16.2 million for the same period in 2012.  "The decrease in water sales revenue for the second quarter is the result of persistent wet weather across the Delmarva peninsula this year.  In the month of June, record rainfall of 12.5 inches broke a 118 year state record," said Dian Taylor, Chair, President and CEO. 

Excluding depreciation and income taxes, operating expenses increased $0.1 million, or 0.7%, to $9.9 million for the second quarter of 2013, compared to $9.8 million for the same period in 2012.  Utility operating expenses for the second quarter of 2013 were $8.4 million, a $0.1 million, or 0.7%, increase from the $8.3 million recorded for the same period in 2012, primarily reflecting increased medical benefit premiums.  The ratio of operating expense, excluding depreciation and income taxes, to total revenue rose to 55.6% for the second quarter of 2013, compared to 54.8% for the same period in 2012.

Through the first six months of 2013, Artesian has posted net income of $4.2 million, a $1.1 million decrease from the $5.3 million in the same period of 2012.  Diluted net income per common share was $0.47 through the first six months of 2013 compared to $0.61 during the same period last year.  Revenues during the first six months of 2013 declined by 1.5% to $34.1 million, while operating expenses, excluding depreciation and income taxes, increased 5.4%. The increase in operating expenses was primarily due to legal costs associated with litigation against the Chester Water Authority in regard to proper determination of the rate charged for water purchased under contract from the Chester Water Authority.

"In addition to the reduction in water sales revenue resulting from the unusually wet weather pattern across the Delmarva Peninsula, the legal expense associated with our on-going litigation against the Chester Water Authority has reduced our net income during the first six months of this year as compared to a year ago," said Dian Taylor.  "Our intent in pursuing this litigation is to protect the long-term interests of our customers by ensuring that the price we pay for water purchased from the Chester Water Authority is properly and fairly determined."

Artesian invested $8.5 million in utility infrastructure during the first six months of 2013. The investments were made to replace aging mains, enhance or improve existing treatment facilities, rehabilitate pumping equipment and for other projects that will enable Artesian to continue to provide superior service to its customers.

About Artesian Resources

Artesian Resources Corporation operates as the holding company of eight wholly-owned subsidiaries offering water, wastewater services and related 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

Six months ended

June 30,

June 30,

2013

2012

2013

2012

Operating Revenues

Water sales

$

16,118

$

16,201

$

30,686

$

31,244

Other utility operating revenue

703

711

1,489

1,447

Non-utility operating revenue

959

1,000

1,933

1,919

17,780

17,912

34,108

34,610

Operating Expenses

Utility operating expenses

8,370

8,308

17,201

16,237

Non-utility operating expenses

548

550

1,087

1,048

Depreciation and amortization

2,058

1,964

4,099

3,924

State and federal income taxes

1,689

1,839

2,801

3,530

Property and other taxes

970

957

2,037

1,990

13,635

13,618

27,225

26,729

Operating Income

4,145

4,294

6,883

7,881

Allowance for funds used during construction 

78

85

145

119

Miscellaneous

51

131

632

784

Income Before Interest Charges

4,274

4,510

7,660

8,784

Interest Charges

1,762

1,762

3,509

3,534

Net Income 

$

2,512

$

2,748

$

4,151

$

5,250

Weighted Average Common Shares Outstanding - Basic

8,761

8,651

8,743

8,638

Net Income per Common Share - Basic

$

0.29

$

0.32

$

0.47

$

0.61

Weighted Average Common Shares Outstanding - Diluted

8,829

8,686

8,814

8,674

Net Income per Common Share - Diluted

$

0.28

$

0.32

$

0.47

$

0.61

Artesian Resources Corporation

Condensed Consolidated Balance Sheet

(In thousands)

(Unaudited)

June 30,

December 31,

2013

2012

Assets

Utility Plant, at original cost less 

accumulated depreciation

$

370,639

$

366,563

Current Assets

12,281

13,480

Regulatory and Other Assets

11,742

11,671

$

394,662

$

391,714

Capitalization and Liabilities

Stockholders' Equity

$

120,244

$

118,180

Long Term Debt, Net of Current Portion

106,079

106,257

Current Liabilities

21,767

24,939

Net Advances for Construction

12,539

13,023

Contributions in Aid of Construction

84,622

81,348

Other Liabilities

49,411

47,967

$

394,662

$

391,714

 

 

SOURCE Artesian Resources Corporation



RELATED LINKS

http://www.artesianwater.com