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Artesian Resources Corporation Reports First Quarter Results
Artesian Resources Corporation Reports First Quarter Results
NEWARK, Del., May 12 /PRNewswire-FirstCall/ -- Artesian Resources
Corporation (Artesian) (Nasdaq: ARTNA) today announced that revenues for the
three-month period were $12.3 million, up from $11.6 million in 2007. Net
income available to common stockholders was $1.0 million, compared to $1.2
million last year. Basic and diluted net income per common share for the
three months ended March 31, 2008 were $0.14 and $0.13, down from $0.19 and
$0.18 for the comparable period in 2007.
Operating expenses increased $1.0 million, 10.7%, for the three months
ended March 31, 2008, compared to the same period in 2007. The components of
the increase included higher utility operating expenses for payroll and
related benefits, purchased water, electricity and water quality monitoring
totaling $488,000. Additionally, non-utility operating expenses increased
$353,000 in the first quarter of 2008 as a result of more contract work
compared to the same period last year.
Increased revenues helped but did not entirely offset the impact of higher
expenses in the quarter. The $0.7 million, or 5.7%, increase in revenue for
the quarter reflects a 3.6% increase in water sales and increased wastewater
design work completed by Artesian Utility Development, our non-regulated
subsidiary, compared to the same period a year ago.
Although partially mitigated by the implementation of the second step of a
previously awarded rate increase in July 2007, earnings per share were
impacted by an increase of 1.2 million shares outstanding compared to a year
ago primarily as a result of the secondary offering completed last June.
Increased operating costs also resulted in lower operating margins in our
regulated and non-regulated businesses, and in the decline in net income
compared to the same quarter last year.
On April 22, 2008, Artesian Water filed a petition with the Delaware
Public Service Commission, the PSC, to implement new rates to meet a requested
increase in revenue of approximately $14.2 million, on an annualized basis.
This request was primarily due to significant investment made in
infrastructure to improve and ensure water quality and service reliability.
The rate request was also filed due to increases in various operating and
maintenance costs, including increased costs associated with depreciation,
purchased power, purchased water and additional building space.
On or about June 21, 2008 we expect to place temporary rates designed to
generate an increase in annual operating revenue of approximately 5.0%, or
$2.5 million on an annualized basis, into effect until new rates are approved
by the PSC.
"Artesian continues to invest in upgrades and improvements to our
customers' water system to ensure that we can safely and cost-effectively meet
their growing needs at increasingly higher standards for water quality, even
in times of drought as we are able to do today," said Artesian President and
CEO Dian C. Taylor. "Unfortunately, we are not immune to the increasing costs
for fuel, electricity and other expenses required for delivery of water
service to our customers."
About Artesian
Artesian Resources Corporation operates as the holding company of six
wholly-owned subsidiaries offering water and wastewater services. 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
Utility Development, Inc. and Artesian Development Company.
Artesian Resources Corporation
Condensed Consolidated Statement of Operations
(In thousands, except share and per share data)
(Unaudited)
Three months ended Three months ended
March 31, 2008 March 31, 2007
Operating Revenues
Utility Operating Revenue 11,089 10,707
Other - Utility Operating Revenue 440 432
Non-Utility Operating Revenue 741 465
$12,270 $11,604
Operating Expenses
Utility Operating Expenses 6,973 6,485
Non-Utility Operating Expenses 563 210
Depreciation and Amortization 1,334 1,212
State & Federal Taxes 671 741
Property and Other Taxes 793 688
10,334 9,336
Operating Income 1,936 2,268
Allowance for Funds Used During
Construction 117 60
Other Income, Net 464 463
Income Before Interest Charges 2,517 2,791
Interest Charges 1,518 1,635
Net Income Applicable to Common Stock $999 $1,156
Weighted Average Common Shares
Outstanding - Basic 7,313 6,111
Net Income per Common Share - Basic $0.14 $0.19
Weighted Average Common Shares
Outstanding - Diluted 7,434 6,273
Net Income per Common Share -
Diluted $0.13 $0.18
Artesian Resources Corporation
Condensed Consolidated Balance Sheet
(In thousands)
(Unaudited)
March 31, 2008 December 31, 2007
ASSETS
Utility Plant, at original cost
less Accumulated Depreciation $285,418 $274,140
Current Assets 13,351 14,324
Regulatory and Other Assets 6,421 6,125
$305,190 $294,589
CAPITALIZATION AND LIABILITIES
Stockholders' Equity $85,195 $85,132
Long Term Debt, Net of Current
Portion 91,627 91,757
Current Liabilities 15,902 11,844
Advances for Construction 23,313 23,840
Contributions in Aid of
Construction 61,511 55,238
Other Liabilities 27,642 26,778
$305,190 $294,589
SOURCE Artesian Resources Corporation
Copyright © 2008, PRNewswire
Copyright © 2008, NewsBlaze,
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