Artesian Resources Corporation Reports 4th Quarter and 2010 Year End Earnings

Mar 14, 2011, 16:00 ET from Artesian Resources Corporation

NEWARK, Del., March 14, 2011 /PRNewswire/ -- (Nasdaq: ARTNA) Artesian Resources Corporation (Artesian) today announced that revenues for 2010 were $64.9 million, up 6.5% from $60.9 million in 2009. Net income was $7.6 million, compared to $7.3 million last year. Diluted net income per common share for 2010 rose 3.1% to $1.00 from $0.97 in 2009.

"In these difficult economic times, we have maintained our superior service to our water utility customers and also have had continued success at growing our other service lines," said Dian C. Taylor, Chair, President & CEO. "The portion of our total operating revenue derived from wastewater and non-utility businesses increased from 12% in 2009 to 13% in 2010 as a result of the continued growth of those businesses.  Our award-winning water recycling partnership in Middletown, Delaware, which brought together state and local government officials and private parties to save millions of gallons of water this past year, is confirmation that our focus on total water resource management is not only good business but also of great value to the environment and our communities.  We believe that the provision of our complementary services across the Delmarva Peninsula will position us well to benefit in the future as overall economic conditions improve."

Water sales revenues increased 5.2%, from $53.9 million in 2009 to $56.7 million in 2010. Water consumption, reduced in the prior year as a result of heavy precipitation, returned to the average annual per capita consumption over a five-year period. The number of customers served by Artesian increased by 1,500, or 1.9%, in 2010.

Other utility revenues increased 34.6%, from $2.2 million in 2009 to $3.0 million in 2010, as a result of greater wastewater utility revenues and an increase in service charges.

Non-utility revenue was $5.2 million, up 8.2% from $4.8 million in 2009. The increase was primarily the result of increases in revenues from Artesian's water and wastewater Service Line Protection Plans, which continue to be popular with customers.  The Service Line Protection Plans provide coverage for all material and labor required to repair or replace participants' leaking water service or clogged sewer lines up to an annual limit.

Operating expenses, excluding income taxes and depreciation, increased by 7.4% to $38.5 million in 2010. The major components of the increase were higher payroll and related benefits costs, higher rates for purchased water and greater repair, maintenance and fuel costs. However, the ratio of utility and non-utility operating expenses to total operating revenues remained relatively flat at 53.5%.

For the three months ending December 31, 2010, revenues were $15.9 million, up from $15.5 million for the same time period in 2009. Net income was $1.3 million, compared to $1.5 million last year. Diluted net income per common share for the three months ended December 31, 2010, was $0.17, down from $0.20 for the comparable period in 2009.

Artesian paid out dividends every quarter in 2010 as it has for the last 18 years. In 2010, the annual common stock dividend was increased twice, by 0.5% in April and another 0.5% in October, bringing the annual dividend to $0.7568 per share. Over the last five years, Artesian has increased its dividend at a 4.8% average annualized rate.

Other highlights of the past year include:

  • Artesian closed on the acquisition of the water assets of Port Deposit, Maryland, which included access to the Susquehanna River as a source of supply.
  • Artesian Senior Vice President Bruce Kraeuter was appointed to the U.S. Department of Homeland Security's Water Sector Coordinating Council, one of ten sector councils that address the safety of the nation's critical infrastructure. 

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



Year ended



December 31,



December 31,



2010



2009



2010



2009

Operating Revenues












Water sales

$

13,784


$

13,228


$

56,685


$

53,871

Other utility operating revenue


984



728



2,973



2,208

Non-utility revenue


1,168



1,549



5,227



4,833



15,936



15,505



64,885



60,912













Operating Expenses












Utility operating expenses


8,403



7,496



30,934



28,965

Non-utility operating expenses


858



1,124



3,780



3,403

Depreciation and amortization


1,828



1,704



7,032



6,556

State and federal income taxes


834



1,001



5,082



4,860

Property and other taxes


858



889



3,789



3,483



12,781



12,214



50,617



47,267













Operating Income


3,155



3,291



14,268



13,645













Allowance for funds used during construction


43



82



183



413

Miscellaneous


(56)



(30)



464



422













Income Before Interest Charges


3,142



3,343



14,915



14,480













Interest Charges


1,863



1,797



7,295



7,218













Net Income

$

1,279


$

1,546


$

7,620


$

7,262













Weighted Average Common Shares Outstanding - Basic


7,611



7,498



7,557



7,454

Net Income per Common Share - Basic

$

0.17


$

0.21


$

1.01


$

0.97













Weighted Average Common Shares Outstanding - Diluted


7,667



7,561



7,618



7,512

Net Income per Common Share - Diluted

$

0.17


$

0.20


$

1.00


$

0.97







































Artesian Resources Corporation

Condensed Consolidated Balance Sheet

(In thousands)

(Unaudited)








December 31,


December 31,


2010


2009

Assets






Utility Plant, at original cost less






accumulated depreciation

$

345,383


$

326,899

Current Assets


14,033



13,243

Regulatory and Other Assets


12,113



18,753


$

371,529


$

358,895







Capitalization and Liabilities












Stockholder’s Equity

$

95,146


$

91,174

Long Term Debt, Net of Current Portion


105,061



106,025

Current Liabilities


41,885



36,521

Advances for Construction


16,159



18,433

Contributions in Aid of Construction


74,531



71,243

Other Liabilities


38,747



35,499


$

371,529


$

358,895



SOURCE Artesian Resources Corporation



RELATED LINKS

http://www.artesianwater.com