Artesian Resources Corporation Reports Third Quarter 2013 Results

Nov 06, 2013, 16:46 ET from Artesian Resources Corporation

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