Artesian Resources Corporation Reports Second Quarter Results

NEWARK, Del., Aug. 7, 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 second quarter of 2012 were $17.9 million, an 8.5% increase from the $16.5 million in revenues recorded for the same three-month period of 2011.

Net income for the second quarter of 2012 was $2.7 million, an increase of $1.0 million, compared to the same period last year. Diluted net income per share increased to $0.32 for the second quarter of 2012 from $0.23 for the same period last year on 12.6% more diluted shares outstanding.

Operating expenses, excluding depreciation and income taxes, decreased slightly during the quarter, and the ratio of operating expense, excluding depreciation and income taxes, to total revenue fell to 54.8% for the three months ended June 30, 2012, compared to 59.6% for the same time period of 2011.

Artesian increased its investments in utility infrastructure during the first six months of 2012 to $10.0 million, compared to $6.6 million invested during the same period of 2011. 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 better serve its customers.

Through the first six months of 2012, Artesian has posted net income of $5.3 million, a $2.5 million increase over the same period of 2011.  Diluted net income per common share was $0.61 through the first six months of 2012 compared to $0.36 during the same period last year.  Revenues during the first six months of 2012 grew by 10.7% to $34.6 million while operating expenses, excluding depreciation and income taxes, decreased 3.0%.

"Last year our earnings were depressed," said Artesian President and CEO Dian C. Taylor.   "At this time last year, we did not have regulatory approval to begin recovery of the $41.8 million we had invested over the previous three years for necessary water utility plant improvements and equipment.  Since then, we obtained regulatory approval to begin recovery of our investments, added more than 1,900 customers in Maryland and Delaware and continued our tight control over expenses.  As a result, we are able to report healthier earnings this year."

Other year-to-date highlights include:

  • Artesian implemented monthly billing as a convenience for its Delaware customers.
  • More than 7,000 customers have enrolled in Artesian's newly instituted free electronic billing service. Enrolled customers have secure access to their water bills as well as free online payment options.
  • The company's Water Service Line Protection Plan and Sewer Service Line Protection Plan continued to be popular with 25.0% and 14.5% of eligible customers participating, respectively.

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 Statement of Operations

(In thousands, except per share amounts)

(Unaudited)















Three months ended



Six months ended



June 30,



June 30,



2012



2011



2012



2011

Operating Revenues












Water sales

$

16,201


$

14,683


$

31,244


$

27,598

Other utility operating revenue


711



711



1,447



1,458

Non-utility operating revenue


1,000



1,116



1,919



2,211



17,912



16,510



34,610



31,267













Operating Expenses












Utility operating expenses


8,308



8,136



16,237



16,214

Non-utility operating expenses


550



775



1,048



1,715

Depreciation and amortization


1,964



1,823



3,924



3,633

State and federal income taxes


1,839



1,260



3,530



1,954

Property and other taxes


957



928



1,990



1,944



13,618



12,922



26,729



25,460













Operating Income


4,294



3,588



7,881



5,807













Allowance for funds used during construction 


85



38



119



73

Miscellaneous


131



(25)



784



572













Income Before Interest Charges


4,510



3,601



8,784



6,452













Interest Charges


1,762



1,848



3,534



3,690













Net Income 

$

2,748


$

1,753


$

5,250


$

2,762













Weighted Average Common Shares Outstanding - Basic


8,651



7,672



8,638



7,662

Net Income per Common Share - Basic

$

0.32


$

0.23


$

0.61


$

0.36













Weighted Average Common Shares Outstanding - Diluted


8,686



7,714



8,674



7,706

Net Income per Common Share - Diluted

$

0.32


$

0.23


$

0.61


$

0.36

 

Artesian Resources Corporation

Condensed Consolidated Balance Sheet

(In thousands)

(Unaudited)














June 30,


December 31,








2012


2011







Assets












Utility Plant, at original cost less 












accumulated depreciation

$

359,055


$

353,397







Current Assets


10,934



13,250







Regulatory and Other Assets


12,063



12,090








$

382,052


$

378,737



















Capitalization and Liabilities
























Stockholders' Equity

$

115,767


$

112,997







Long Term Debt, Net of Current Portion


106,043



106,539







Current Liabilities


23,026



24,660







Net Advances for Construction


13,913



14,405







Contributions in Aid of Construction


77,282



77,306







Other Liabilities


46,021



42,830








$

382,052


$

378,737







 

SOURCE Artesian Resources Corporation



RELATED LINKS
http://www.artesianwater.com

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