2014

Artesian Resources Corporation Reports Second Quarter 2013 Results

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

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