Artesian Resources Corporation Reports First Quarter 2013 Results

NEWARK, Del., May 7, 2013 /PRNewswire/ -- Artesian Resources Corporation, (NASDAQ: ARTNA), a leading provider of water, wastewater services and other related services on the Delmarva Peninsula, today announced that net income for the first quarter of 2013 was $1.6 million, a $0.9 million decrease compared to $2.5 million in net income recorded during the first quarter of 2012.  Diluted net income per share decreased to $0.19 compared to $0.29 for the first quarter of 2012.

Revenues for the first quarter of 2013 were $16.3 million, a 2.2% decrease from the $16.7 million in revenues recorded for the same three-month period of 2012.  Water sales revenue decreased $0.5 million, or 3.2%, to $14.6 million for the first quarter of 2013, compared to $15.0 million for the same period in 2012, as a result of a decline in water consumption.  Non-utility operating revenues for the first quarter of 2013 were $1.0 million, a $0.1 million, or 6.0%, increase from the $0.9 million recorded for the same period in 2012 reflecting increased enrollment in water and wastewater Service Line Protection Plans that provide coverage for material and labor to repair or replace participants' leaking water service or clogged sewer lines.

Excluding depreciation and income taxes, operating expenses increased $1.0 million, or 10.3%, to $10.4 million for the first quarter of 2013, compared to $9.5 million for the same period in 2012.  Utility operating expenses for the first quarter of 2013 were $8.8 million, a $0.9 million, or 11.4%, increase from the $7.9 million recorded for the same period in 2012.  The increase was primarily due to increased legal costs associated with litigation against the Chester Water Authority in regard to the proper determination of the rate charged for water purchased under contract from the Chester Water Authority and increased payroll and employee benefit costs.  The ratio of operating expense, excluding depreciation and income taxes, to total revenue rose to 63.9% for the first quarter of 2013, compared to 56.7% for the same period in 2012.

"In addition to the reduction in water sales revenue during the first quarter, we were faced with increased legal expenses.  The litigation with the Chester Water Authority is an unfortunate circumstance that was necessary for us to take in order to protect the long-term interests of our customers.  We are disappointed that it has taken such effort and expense but we are driven by the fact that we know it is the right course of action," said Dian C. Taylor, Chair, President and CEO.

About Artesian Resources

Artesian Resources Corporation operates as the holding company of eight wholly-owned subsidiaries offering water, wastewater services and other 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.

SOURCE Artesian Resources Corporation