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Artesian Resources Corporation Reports Third Quarter Results

NEWARK, Del., Nov. 7, 2012 /PRNewswire/ -- Artesian Resources Corporation (Nasdaq: ARTNA), a leading provider of water, wastewater and related services on the Delmarva Peninsula, today announced that net income for the third quarter of 2012 was $2.8 million, an increase of $0.6 million or 27.2% compared to the same period last year. Diluted net income per share increased to $0.33 for the third quarter of 2012 from $0.26 for the same period last year. Net revenues for the third quarter of 2012 were $19.0 million, a $1.3 million or 7.2 % increase for the same three-month period of 2011.

Operating expenses, excluding depreciation and income taxes, for the third quarter of 2012 increased by 6.9% to $10.6 million, compared to $10.0 million for the same period in 2011. The increase was primarily due to higher payroll and employee benefit costs. The ratio of operating expense, excluding depreciation and income taxes, to total revenue fell slightly to 56.0% for the three months ended September 30, 2012, compared to 56.2% for the same time period of 2011.

Through the first nine months of 2012, Artesian posted net income of $8.1 million, a $3.1 million increase over the same period of 2011. Diluted net income per common share was $0.93 through the first nine months of 2012 compared to $0.63 during the same period last year. Revenues during the first nine months of 2012 grew by 9.4% to $53.6 million while operating expense, excluding depreciation and income taxes, was flat at $29.9 million.

"We recorded strong revenue growth through the first nine months of 2012.  We attribute this growth to the addition of over 1,900 customers in Delaware and Maryland and to the rate relief we were granted late last year that enabled us to recover millions of dollars invested in needed system improvements that we completed over the previous three years," said Dian Taylor, Chair, President and CEO.  "In addition, last year we experienced record rainfall in the third quarter from multiple tropical storms, which impacted water consumption and contributed to depressed earnings."

"We continue to strengthen our position as the primary water and wastewater resource for developers and communities throughout the Delmarva Peninsula seeking to fill both needs simultaneously," Taylor said. "At the same time, we remain focused on providing superior service to our customers while seeking ways to improve our efficiency and performance."

Artesian increased investment in its infrastructure during the first nine months of 2012 to $14.8 million, a 37.1% increase over capital expenditures made during the same period of 2011. The investments were made to replace aging mains, enhance or improve existing treatment facilities, rehabilitate pumping equipment and fund other projects that will enable Artesian to better serve its customers. Artesian is nearing completion of the installation of a needed water main in the Cherry Hill area of Cecil County, Maryland. The new main will provide service to a W.L. Gore facility and two Cecil County public schools.

Other year-to-date highlights include:

  • More than 9,200 customers, about 11.2%, have enrolled in Artesian's newly instituted free electronic billing service. Enrolled customers have secure access to their water bills as well as free online payment options.
  • The company's Water Service Line Protection Plan and Sewer Service Line Protection Plan continue to be popular with 25.1% and 14.7% of eligible customers participating, respectively.

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

 

Artesian Resources Corporation

Condensed Consolidated Statement of Operations

(In thousands, except per share amounts)

(Unaudited)















Three months ended



Nine months ended



September 30,



September 30,



2012



2011



2012



2011

Operating Revenues












Water sales

$

17,353


$

15,921


$

48,597


$

43,520

Other utility operating revenue


719



751



2,166



2,208

Non-utility operating revenue


929



1,058



2,848



3,269



19,001



17,730



53,611



48,997













Operating Expenses












Utility operating expenses


9,155



8,313



25,391



24,527

Non-utility operating expenses


515



709



1,562



2,424

Depreciation and amortization


1,957



1,897



5,880



5,530

State and federal income taxes


1,904



1,505



5,435



3,459

Property and other taxes


975



939



2,965



2,882



14,506



13,363



41,233



38,822













Operating Income


4,495



4,367



12,378



10,175













Allowance for funds used during construction 


133



67



253



140

Miscellaneous


(36)



(387)



748



185













Income Before Interest Charges


4,592



4,047



13,379



10,500













Interest Charges


1,746



1,809



5,280



5,500













Net Income 

$

2,846


$

2,238


$

8,099


$

5,000













   Weighted Average Common Shares Outstanding - Basic


8,681



8,547



8,653



7,960

   Net Income per Common Share - Basic

$

0.33


$

0.26


$

0.94


$

0.63













   Weighted Average Common Shares Outstanding - Diluted


8,752



8,579



8,699



8,000

   Net Income per Common Share - Diluted

$

0.33


$

0.26


$

0.93


$

0.63

























 

Artesian Resources Corporation

Condensed Consolidated Balance Sheet

(In thousands)

(Unaudited)














September 30,


December 31,








2012


2011







Assets












Utility Plant, at original cost less 












accumulated depreciation

$

362,611


$

353,397







Current Assets


13,738



13,250







Regulatory and Other Assets


12,004



12,090








$

388,353


$

378,737



















Capitalization and Liabilities
























Stockholders' Equity

$

115,826


$

112,997







Long Term Debt, Net of Current Portion


105,729



106,539







Current Liabilities


27,165



24,660







Net Advances for Construction


13,530



14,405







Contributions in Aid of Construction


79,552



77,306







Other Liabilities


46,551



42,830








$

388,353


$

378,737



















 

SOURCE Artesian Resources Corporation

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