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Artesian Resources Corporation Reports Third Quarter 2013 Results

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NEWARK, Del., Nov. 6, 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 third quarter of 2013 was $2.6 million, a decrease of $0.2 million, or 8.6%, compared to $2.8 million in net income recorded during the third quarter of 2012.  Diluted net income per share decreased to $0.29 compared to $0.33 for the third quarter of 2012.

Revenues for the third quarter of 2013 were $18.1 million, a 4.9% decrease from the $19.0 million in revenues recorded for the same three month period of 2012.  Water sales revenue decreased $1.0 million, or 6.0%, to $16.3 million for the third quarter of 2013, compared to $17.4 million for the same period in 2012, as a result of reduced water consumption.  "The decrease in water sales revenue for the third quarter is the result of persistent wet weather across the Delmarva Peninsula through much of the summer," said Dian Taylor, Chair, President and CEO. 

Excluding depreciation and income taxes, operating expenses decreased $0.7 million, or 6.6%, to $9.9 million for the third quarter of 2013, compared to $10.6 million for the same period in 2012.  Utility operating expenses for the third quarter of 2013 were $8.4 million, a $0.7 million, or 8.1%, decrease from the $9.2 million recorded for the same period in 2012, primarily reflecting reduced payroll costs.  The ratio of operating expense, excluding depreciation and income taxes, to total revenue declined to 55.0% for the third quarter of 2013, compared to 56.0% for the same period in 2012.

Through the first nine months of 2013, Artesian reported net income of $6.8 million, a $1.3 million, or 16.6%, decrease from the $8.1 million in the same period of 2012.  Diluted net income per common share was $0.77 through the first nine months of 2013 compared to $0.93 during the same period last year.  Revenues during the first nine months of 2013 declined by 2.7%, to $52.2 million compared to $53.6 million in the corresponding period of 2012.  Water sales revenue decreased $1.6 million, or 3.3%, to $47.0 million through the first nine months of 2013, compared to $48.6 million for the same period in 2012, as a result of extremely wet conditions across the Delmarva Peninsula during the summer.  The Office of the Delaware State Climatologist reported that the summer of 2013, with a rainfall total of 21.41 inches, proved to be the 5th wettest summer since records began in 1895.  Operating expenses, excluding depreciation and income taxes, increased $0.4 million, or 1.2%. 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.

Artesian invested $13.9 million in utility infrastructure during the first nine months of 2013. The investments were made to replace aging mains, enhance or improve existing treatment facilities, rehabilitate pumping equipment, upgrade customer service software, and for other projects that will enable Artesian to continue to provide superior service to its customers.

"Although an unusually persistent wet weather pattern across the Delmarva Peninsula significantly impacted our water sales revenue this year, Artesian continued to make substantial investments in utility infrastructure to ensure customers continue to receive the reliable service they have come to expect," said Dian Taylor.

About Artesian Resources
Artesian Resources Corporation (www.artesianwater.com) operates as the holding company of 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 supplies over 7.4 billion gallons of water per year through 1,162 miles of water mains to about 300,000 people.

 

Artesian Resources Corporation

Condensed Consolidated Statements of Operations

(In thousands, except per share amounts)

(Unaudited)















Three months ended



Nine months ended



September 30,



September 30,



2013



2012



2013



2012

Operating Revenues












Water sales

$

16,316


$

17,353


$

47,002


$

48,597

Other utility operating revenue


731



719



2,220



2,166

Non-utility operating revenue


1,026



929



2,959



2,848



18,073



19,001



52,181



53,611













Operating Expenses












Utility operating expenses


8,415



9,155



25,616



25,391

Non-utility operating expenses


511



515



1,598



1,562

Depreciation and amortization


2,066



1,957



6,164



5,880

State and federal income taxes


1,740



1,904



4,541



5,435

Property and other taxes


1,017



975



3,054



2,965



13,749



14,506



40,973



41,233













Operating Income


4,324



4,495



11,208



12,378













Allowance for funds used during construction 


99



133



244



253

Miscellaneous


(37)



(36)



595



748













Income Before Interest Charges


4,386



4,592



12,047



13,379













Interest Charges


1,784



1,746



5,293



5,280













Net Income 

$

2,602


$

2,846


$

6,754


$

8,099













Weighted Average Common Shares Outstanding - Basic


8,789



8,681



8,759



8,653

Net Income per Common Share - Basic

$

0.30


$

0.33


$

0.77


$

0.94













Weighted Average Common Shares Outstanding - Diluted


8,850



8,752



8,822



8,699

Net Income per Common Share - Diluted

$

0.29


$

0.33


$

0.77


$

0.93






































Artesian Resources Corporation

Condensed Consolidated Balance Sheet

(In thousands)

(Unaudited)














September 30,


December 31,








2013


2012







Assets












Utility Plant, at original cost less 












accumulated depreciation

$

374,025


$

366,563







Current Assets


14,665



13,480







Regulatory and Other Assets


11,696



11,671








$

400,386


$

391,714



















Capitalization and Liabilities
























Stockholders' Equity

$

119,496


$

118,180







Long Term Debt, Net of Current Portion


105,713



106,257







Current Liabilities


26,432



24,939







Net Advances for Construction


12,215



13,023







Contributions in Aid of Construction


86,403



81,348







Other Liabilities


50,127



47,967








$

400,386


$

391,714



















 

SOURCE Artesian Resources Corporation



RELATED LINKS
http://www.artesianwater.com

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