Artesian Resources Corporation Reports Second Quarter Results
NEWARK, Del., Aug. 5, 2011 /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 second quarter of 2011 were $16.5 million, a 3.2% increase from the $16.0 million in revenues recorded for the second quarter of 2010.
Net income for the quarter was $1.8 million, while diluted net income per share was $0.23.
On July 20, Artesian raised $15 million from a public offering of 804,290 shares of the Company's Class A Non-Voting Common Stock. Artesian used the proceeds to repay short term borrowings previously incurred primarily to finance its water utility plant and equipment construction program.
"Our investors continue to show great confidence in the future of Artesian and our ability to generate sound returns," said Artesian President and CEO Dian C. Taylor. "Maintaining a safe, reliable water system requires significant and continuous investment in our infrastructure. We believe our ability to attract investors and raise money through capital markets enables us to maintain our systems at the lowest possible cost to our customers."
In the first six months of 2011, Artesian invested $6.6 million in capital expenditures to enhance or improve existing treatment facilities, upgrade meter reading equipment and replace aging mains, among other projects.
"We installed additional treatment for water systems in Hockessin, Delaware, and other areas as part of our ongoing commitment to stay ahead of increasingly stringent water quality standards," Taylor said.
The increase in operating revenues during the second quarter was driven by strong water sales, including sales to neighboring water utilities. Water sales rose by 5.6% compared to the same period of 2010, representing 88.9% of revenues. Operating expenses, excluding depreciation and income taxes, grew 4.1% to $9.8 million, compared to the second quarter of 2010, primarily as a result of increased payroll and benefits costs.
During the quarter, Cecil County, Maryland, received a favorable ruling from the Maryland Court of Appeals allowing the county to proceed with the sale of its water and wastewater facilities to Artesian. Artesian is now progressing towards closing on the agreements by year end, subject to approval by the Maryland Public Service Commission. Artesian has made a significant investment in Cecil County over the last several years to provide water and wastewater infrastructure in the county's designated growth area.
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 Water distributes and sells water to residential, commercial, industrial, governmental, municipal and utility customers. Other subsidiaries include Artesian Water Maryland, Inc., Artesian Water Pennsylvania, Inc., Artesian Wastewater Management, Inc., Artesian Wastewater Maryland, Inc., Artesian Utility Development, Inc., Artesian Consulting Engineers, Inc., and Artesian Development Company.
Artesian Resources Corporation
Condensed Consolidated Statement of Operations
(In thousands, except per share amounts)
Three months ended
Six months ended
Other utility operating revenue
Utility operating expenses
Non-utility operating expenses
Depreciation and amortization
State and federal income taxes
Property and other taxes
Allowance for funds used during construction
Income Before Interest Charges
Weighted Average Common Shares Outstanding - Basic
Net Income per Common Share - Basic
Weighted Average Common Shares Outstanding - Diluted
Net Income per Common Share - Diluted
Artesian Resources Corporation
Condensed Consolidated Balance Sheet
Utility Plant, at original cost less
Regulatory and Other Assets
Capitalization and Liabilities
Long Term Debt, Net of Current Portion
Advances for Construction
Contributions in Aid of Construction
SOURCE Artesian Resources Corporation