Artesian Resources Corporation Reports Second Quarter Results

Aug 07, 2012, 16:10 ET from Artesian Resources Corporation

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