Artesian Resources Corporation Reports 2009 Year End Earnings
NEWARK, Del., March 10 /PRNewswire-FirstCall/ -- (Nasdaq: ARTNA) Artesian Resources Corporation (Artesian) today announced that revenues for 2009 were $60.9 million, up 8.4% from $56.2 million in 2008. Net income was $7.3 million, compared to $6.4 million last year. Diluted net income per common share for 2009 rose 12.8% to $0.97 from $0.86 in 2008.
"We have a clear vision of what we believe is necessary to ensure superior service for our customers while also achieving a fair return for our shareholders," said Dian C. Taylor, Chair, President & CEO. "We faced many challenges in 2009—the recession limited new housing development and there was record rain fall, both of which lowered customer demand for water. However, we delivered positive financial results by carefully managing our expenses and generating additional revenue from our non-utility businesses."
Artesian paid out dividends every quarter in 2009, as it has for the last 17 years. The dividend was increased in the fourth quarter of 2009 by approximately 5%, raising the current annualized dividend rate to $0.7492. In addition, Artesian won national and local awards for customer service innovations and the quality of its water and was named in 2009 as one of the FORTUNE Small Business top 100 companies. Artesian was included in the broad-market Russell 3000® Index and the small-market Russell 2000® Index during the year.
Artesian's revenue increase in 2009 was partially due to a 17% increase in non-utility revenue, which climbed to $4.8 million from $4.1 million in 2008. Revenues from water sales also increased as a result of the full-year implementation of a 15% rate increase, which was made permanent in 2009 with the settlement of the Company's rate case in Delaware. Revenue also increased as a result of the addition of more than 1,000 water customers and 100 wastewater customers. However, water revenues increases were partially offset by the record rainfall of 2009, which lowered per customer demand.
Most of the gain in non-utility revenues was due to the continued success of the company's Service Line Protection Programs. As of December 31, 2009, approximately 14,000 participants, or 20.3% of eligible water program customers, and approximately 6,200 participants, or 9.0% of eligible wastewater program customers, signed up for these Programs.
Our ratio of utility and non-utility operating expenses to total operating revenues improved from 54.9% in 2008 to 53.1% in 2009. Utility and non-utility operating expenses increased approximately $1.5 million, or 4.8%, to $32.4 million. The major components of the increase were higher payroll and benefits costs and purchased water. Non-utility operating expenses increased approximately $686,000. This was primarily the result of more engineering design project activity in our Artesian Utility Development, Inc. subsidiary in 2009 compared to 2008.
For the three months ending December 31, 2009, revenues were $15.5 million, up from $14.4 million for the same time period in 2008. Net income was $1.5 million, compared to $1.3 million last year. Diluted net income per common share for the three months ended December 31, 2008, was $0.20, up from $0.17 for the comparable period in 2008.
About Artesian
Artesian Resources Corporation operates as the holding company of eight wholly-owned subsidiaries offering water, wastewater and engineering services. 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 Water distributes and sells water to residential, commercial, industrial, governmental, municipal and utility customers. Other subsidiaries include Artesian Water Maryland, Inc., Artesian Wastewater Maryland, Inc., Artesian Water Pennsylvania, Inc., Artesian Wastewater Management, Inc., Artesian Utility Development, Inc., Artesian Consulting Engineers, Inc. and Artesian Development Corporation.
Artesian Resources Corporation
Condensed Consolidated Statement of Operations
(In thousands, except per share amounts)
(Unaudited)
Three months
ended Year ended
December 31, December 31,
2009 2008 2009 2008
---- ---- ---- ----
Operating Revenues
Water sales $13,228 $12,274 $53,871 $50,101
Other utility operating revenue 728 550 2,208 2,019
Non-utility revenue 1,549 1,532 4,833 4,065
----- ----- ----- -----
15,505 14,356 60,912 56,185
------ ------ ------ ------
Operating Expenses
Utility operating expenses 7,496 6,866 28,965 28,154
Non-utility operating expenses 1,124 951 3,403 2,717
Depreciation and amortization 1,704 1,719 6,556 5,782
State and federal income taxes 1,001 979 4,860 4,427
Property and other taxes 889 818 3,483 3,199
--- --- ----- -----
12,214 11,333 47,267 44,279
------ ------ ------ ------
Operating Income 3,291 3,023 13,645 11,906
Allowance for funds used during
construction 82 145 413 759
Other income, Net (30) (20) 422 366
----- ----- ------ ------
Income Before Interest Charges 3,343 3,148 14,480 13,031
Interest Charges 1,797 1,851 7,218 6,613
------ ------ ------ ------
Net Income Applicable to Common Stock $1,546 $1,297 $7,262 $6,418
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Weighted Average Common Shares
Outstanding - Basic 7,498 7,394 7,454 7,353
Net Income per Common Share - Basic $0.21 $0.18 $0.97 $0.87
Weighted Average Common Shares
Outstanding - Diluted 7,561 7,458 7,512 7,427
Net Income per Common Share -
Diluted $0.20 $0.17 $0.97 $0.86
Artesian Resources Corporation
Condensed Consolidated Balance Sheet
(In thousands)
(Unaudited)
December 31,
2009 2008
---- ----
Assets
Utility Plant, at original cost
less accumulated depreciation $326,899 $318,243
Current Assets 13,243 13,472
Regulatory and Other Assets 18,753 16,991
------ ------
$358,895 $348,706
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Capitalization and Liabilities
Stockholder’s Equity $91,174 $87,794
Long Term Debt, Net of Current
Portion 106,025 107,555
Current Liabilities 36,521 34,377
Advances for Construction 18,433 21,089
Contributions in Aid of
Construction 71,243 66,841
Other Liabilities 35,499 31,050
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$358,895 $348,706
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SOURCE Artesian Resources Corporation
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