NEWARK, Del., May 6, 2011 /PRNewswire/ -- Artesian Resources Corporation (Nasdaq: ARTNA), a leading provider of water, wastewater and engineering services on the Delmarva Peninsula, today announced that revenues for the first quarter of 2011 were $14.8 million, a 1.5% decrease from the $15.0 million in revenues recorded for the first quarter of 2010.
Net income for the first quarter of 2011 was $1.0 million, a 38.6% decrease from the first quarter of 2010. Diluted net income per share for the first quarter of 2011 was $0.13, compared to $0.22 for the first quarter of 2010.
Water sales, which accounted for 87.5% of revenues in the first quarter of 2011, increased by just 0.2%, or $21,000, as compared to the first quarter of 2010 despite the addition of service territory and increased sales of water to a neighboring utility through an interconnection. Non-utility revenues dropped by $375,000 from the first quarter of 2010 to $1.1 million due to the completion of a design and permitting project for the Town of Middletown.
"Our water revenue was flat and our non-utility revenue dropped sharply while our expenses continued to climb because of higher gas prices as well as increased chemical and maintenance costs," said Artesian President and CEO Dian C. Taylor.
Utility operating expenses grew by 9.6% as compared to the first quarter of 2010, driven by an increase in water treatment equipment maintenance and payroll and employee benefit costs. Property and other taxes also increased by 5.6% as compared to the first quarter of 2010. Overall, operating expenses for the first quarter of 2011 increased by 7.3% to $10.0 million for the quarter ended March 31, 2011, as compared to $9.3 million for the same period in 2010.
To help fund the approximately $47 million in utility plant improvements that Artesian has undertaken to ensure water quality and system reliability for its customers since its last rate request three years ago, Artesian has filed a request with the Delaware Public Service Commission to implement new rates. The $10.9 million rate request also will address a continuing decline in water consumption, as well as higher depreciation, fuel, water treatment, chemical, personnel and other expenses.
"Our costs keep rising and we must continue to invest in our infrastructure and operations to ensure we provide our customers with clean, safe water every time they turn on the tap," Taylor said.
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 Water distributes and sells water to residential, commercial, industrial, governmental, municipal and utility customers. Other subsidiaries include Artesian Water Maryland, Inc., Artesian Water Pennsylvania, Inc., Artesian Wastewater Management, Inc., Artesian Wastewater Maryland, Inc., Artesian Utility Development, Inc., Artesian Consulting Engineers, Inc. and Artesian Development Company.
This release contains forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, among others, the impact of current and projected rate requests, our long-term strategy and expectations, the impact of our capital program and our ability to produce consistent returns. These statements involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such forward-looking statements including: general economic business conditions, unfavorable weather conditions, the success of certain cost-containment initiatives, changes in regulations or regulatory treatment, availability and cost of capital, the success of growth initiatives, and other factors discussed in our filings with the Securities and Exchange Commission. While the Company may elect to update forward-looking statements, we specifically disclaim any obligation to do so and you should not rely on any forward-looking statement as representation of the Company's views as of any date subsequent to the date of this release.
Artesian Resources Corporation
Condensed Consolidated Statement of Operations
(In thousands, except per share amounts)
Three months ended
Other utility operating revenue
Utility operating expenses
Non-utility operating expenses
Depreciation and amortization
State and federal income taxes
Property and other taxes
Allowance for funds used during construction
Income Before Interest Charges
Weighted Average Common Shares Outstanding - Basic
Net Income per Common Share - Basic
Weighted Average Common Shares Outstanding - Diluted
Net Income per Common Share - Diluted
Artesian Resources Corporation
Condensed Consolidated Balance Sheet
Utility Plant, at original cost less
Regulatory and Other Assets
Capitalization and Liabilities
Long Term Debt, Net of Current Portion
Advances for Construction
Contributions in Aid of Construction
SOURCE Artesian Resources Corporation