Artesian Resources Corporation Reports First Quarter Results

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May 07, 2010, 01:22 ET

NEWARK, Del., May 7 /PRNewswire-FirstCall/ -- 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 2010 were $15.0 million, an 8.0% increase from the $13.9 million in revenues recorded for the same three-month period of 2009. Net income for the quarter grew 2.4%. Diluted net income per share was unchanged at $0.22.

"Water consumption increased during the quarter and we continued to benefit from our strategy to diversify our business, including expanding our non-utility operations," said Artesian President and CEO Dian C. Taylor. "Even with the increase in water sales, our non-utility businesses accounted for 9.8% of our revenues for the quarter, a new record for our company."

Non-utility revenues grew by $562,000 or 61.9% during the quarter from $908,000 in 2009 to $1.5 million for the same period of 2010. The increase was primarily attributable to additional contract revenue for design and permitting services for a project in Middletown, Delaware, and for increased contract services for municipalities in Maryland.

"Our strategy is to continue to expand into a total water resource company serving the Delmarva Peninsula, focusing on smart growth and continuously evaluating our contract services to ensure they make short- and long-term sense for our company," 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 Resources Corporation
Condensed Consolidated Statement of Operations
(In thousands, except per share amounts)
(Unaudited)

		Three months ended
		March 31,
		2010		2009
Operating Revenues
Water Sales	$	12,895	$	12,500
Other Utility Operating Revenue		618		468
Non-Utility Revenue		1,470		908
		14,983		13,876

Operating Expenses
Utility Operating Expenses		7,368		6,844
Non-Utility Operating Expenses		1,018		670
Depreciation and Amortization		1,731		1,598
State and Federal Income Taxes		1,117		1,083
Property and Other Taxes		962		853
		12,196		11,048

Operating Income		2,787		2,828

Allowance for Funds Used During Construction		43		109
Other Income, Net		611		468

Income Before Interest Charges		3,441		3,405

Interest Charges		1,795		1,798

Net Income Applicable to Common Stock	$	1,646	$	1,607

Weighted Average Common Shares Outstanding - Basic		7,513		7,413
Net Income per Common Share - Basic	$	0.22	$	0.22

Weighted Average Common Shares Outstanding - Diluted		7,583		7,470
Net Income per Common Share - Diluted	$	0.22	$	0.22

Artesian Resources Corporation
Condensed Consolidated Balance Sheet
(In thousands)
(Unaudited)

	March 31,		December 31,
	2010		2009
Assets
Utility Plant, at original cost less
accumulated depreciation	$	327,617	$	326,899
Current Assets		11,596		13,243
Regulatory and Other Assets		18,969		18,753
	$	358,182	$	358,895

Capitalization and Liabilities

Stockholder’s Equity	$	91,593	$	91,174
Long Term Debt, Net of Current Portion		105,741		106,025
Current Liabilities		34,148		36,521
Advances for Construction		18,036		18,433
Contributions in Aid of Construction		72,318		71,243
Other Liabilities		36,346		35,499
	$	358,182	$	358,895