2014

Artesian Resources Corporation Reports Third Quarter Results

NEWARK, Del., Nov. 3, 2011 /PRNewswire/ -- Artesian Resources Corporation (NASDAQ: ARTNA) today announced that revenues for the third quarter of 2011 were $17.7 million, down slightly from $18.0 million in revenues recorded for the third quarter in 2010. Revenues were impacted by near-record rainfall on the Delmarva Peninsula during the quarter, which lowered water consumption and offset an increase in water sales revenue resulting from a temporary rate increase in Delaware.

"We continue to diversify our business to increase our revenues from sources other than water sales," said Artesian President and CEO, Dian C. Taylor. "But, the reality is that water sales are still core to our business and when we have historically bad weather, water sales will be adversely affected."

During the third quarter, the Maryland Public Service Commission issued an order authorizing Artesian Water Maryland's exercise of its water service franchise area in the eastern part of Cecil County. Artesian is now well-positioned to provide reliable water service throughout Cecil County's growth area. Artesian already provides water service to the Town of Port Deposit through a Susquehanna River water appropriation, has a water interconnection with the Town of Elkton and provides water service in the Mountain Hill area in the western part of the county that includes the Principio Business Park and communities of Carpenters Point and Whitaker Woods.

Artesian mutually agreed with Cecil County during the third quarter to terminate agreements to purchase wastewater facilities from the county and recorded a one-time charge against income of $349,000.

Net income decreased by $659,000, to $2.24 million for the third quarter.  Diluted net income per common share was $0.26, down $0.12 from the same period last year. Earnings per share was impacted by the one-time charge as well as this year's late summer near-record rainfall and the effect of an 888,290 common stock share offering in the third quarter of 2011.

Operating expenses, excluding depreciation and income taxes, for the third quarter of, 2011, increased by 3.9% to $10.0 million, compared to $9.6 million for the same period in 2010. The increase was primarily due to higher water treatment equipment maintenance costs, meter maintenance costs, fuel and personnel expenses.

"Despite the bad weather, we had many positives," Taylor said. "Our profitable Water and Sewer Service Line Protection plans continued to grow and we moved one step closer to providing end-to-end water service in Cecil County's growth area. We are committed to driving this business forward by providing safe, reliable water and superior customer service; continuously improving our efficiency and performance; and delivering sound returns for our investors."

About Artesian

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



Nine months ended



September 30,



September 30,



2011



2010



2011



2010

Operating Revenues












Water sales

$

15,921


$

16,097


$

43,520


$

42,901

Other utility operating revenue


751



657



2,208



1,990

Non-utility revenue


1,058



1,209



3,269



4,059



17,730



17,963



48,997



48,950













Operating Expenses












Utility operating expenses


8,313



7,697



24,527



22,531

Non-utility operating expenses


709



946



2,424



2,923

Depreciation and amortization


1,897



1,750



5,530



5,204

State and federal income taxes


1,505



1,922



3,459



4,248

Property and other taxes


939



942



2,882



2,931



13,363



13,257



38,822



37,837













Operating Income


4,367



4,706



10,175



11,113













Allowance for funds used during construction


67



73



140



140

Miscellaneous


(387)



(47)



185



520













Income Before Interest Charges


4,047



4,732



10,500



11,773













Interest Charges


1,809



1,835



5,500



5,432













Net Income

$

2,238


$

2,897


$

5,000


$

6,341













Weighted Average Common Shares Outstanding - Basic


8,547



7,562



7,960



7,538













Net Income per Common Share - Basic

$

0.26


$

0.38


$

0.63


$

0.84













Weighted Average Common Shares Outstanding - Diluted


8,579



7,623



8,000



7,601













Net Income per Common Share - Diluted

$

0.26


$

0.38


$

0.63


$

0.83





































Artesian Resources Corporation

Condensed Consolidated Balance Sheet

(In thousands)

(Unaudited)














September 30,


December 31,








2011


2010







Assets












Utility Plant, at original cost less












accumulated depreciation

$

350,504


$

345,383







Current Assets


13,647



14,033







Regulatory and Other Assets


11,689



12,113








$

375,840


$

371,529



















Capitalization and Liabilities
























Stockholder’s Equity

$

110,787


$

95,146







Long Term Debt, Net of Current Portion


105,955



105,061







Current Liabilities


26,808



41,885







Advances for Construction


15,410



16,159







Contributions in Aid of Construction


75,321



74,531







Other Liabilities


41,559



38,747








$

375,840


$

371,529









SOURCE Artesian Resources Corporation



RELATED LINKS
http://www.artesianwater.com

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