NEWARK, Del., Aug. 10 /PRNewswire-FirstCall/ -- (Nasdaq: ARTNA) Artesian Resources Corporation (Artesian) today announced that revenue for the second quarter of 2009 was $15.4 million, up from $13.9 million for the same three-month period in 2008. Net income increased to $2.0 million for the second quarter, while diluted net income per common share was $0.27, up from $0.21 for the same period last year.
"Since the beginning of this year, we have added hundreds of customers, expanded our Maryland operations and wastewater business, held the line on expenses and invested nearly $9 million in infrastructure improvements that we believe will help guarantee the quality and reliability of our system," said Artesian President and CEO Dian C. Taylor. "We believe these efforts are paying off for our customers -- our water was recently named the best-tasting in Delaware by the Delaware Rural Water Association -- and for our investors as we continue to grow revenue and net income."
Non-utility revenues for the three months ended June 30, 2009, grew to $1.1 million, a 32.7% increase from the prior year and the second time in the last three quarters that revenue from the company's non-regulated businesses has exceeded $1 million. The increase in non-utility revenue was attributable to the addition of Artesian Consulting Engineers and the continued popularity of water and wastewater Service Line Protection Plans.
Revenues from water sales during the second quarter increased by $1.2 million, or 9.6%, due to the addition of new customers and the implementation of temporary rate relief. The rate relief was granted pending a decision from the Delaware Public Service Commission on Artesian's April 2008 filing for a base rate increase to recognize increased expenses and ongoing investments in infrastructure.
Operating expenses, excluding depreciation and income taxes, increased $129,000, or 1.5%, in the second quarter of 2009 compared to the same period in 2008. Overall expenses increased $708,000, or 6.4%, during the quarter, reflecting increased depreciation and amortization expenses as well as a $284,000 increase in federal and state income taxes.
About Artesian
Artesian Resources Corporation operates as the holding company of eight wholly-owned subsidiaries offering water, wastewater and engineering 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. Artesian Resources is a member of the small-market Russell 2000 Index and has paid a common stock dividend for 68 consecutive quarters.
Special Note Regarding Forward Looking Statements
In addition to historical facts or statements of current condition, this release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, regarding infrastructure improvements and the effects of such improvements on the quality and reliability of our system. Statements in this release that are forward-looking statements are subject to various risks and uncertainties concerning specific factors described in our 2008 Annual Report on Form 10-K. Such information contained herein represents our management's best judgment as of the date hereof based on information currently available. We do not intend to update this information and disclaim any legal obligation to the contrary.
Artesian Resources Corporation
Condensed Consolidated Statement of Operations
(In thousands, except per share amounts)
(Unaudited)
Three months Three months Six months Six months
ended ended ended ended
June 30, 2009 June 30, 2008 June 30, 2009 June 30, 2008
------------- ------------- ------------- -------------
Operating Revenues
Water sales $13,717 $12,514 $26,217 $23,603
Other utility
operating
revenue 542 552 1,010 992
Non-utility
revenue 1,111 837 2,019 1,578
----- --- ----- -----
15,370 13,903 29,246 26,173
------ ------ ------ ------
Operating Expenses
Utility operating
expenses 7,146 7,280 13,990 14,253
Non-utility
operating
expenses 790 582 1,460 1,144
Depreciation and
amortization 1,601 1,306 3,199 2,640
State and federal
income taxes 1,304 1,020 2,387 1,691
Property and
other taxes 853 798 1,706 1,591
--- --- ----- -----
11,694 10,986 22,742 21,319
------ ------ ------ ------
Operating Income 3,676 2,917 6,504 4,854
Allowance for funds
used during
construction 115 212 224 329
Other Income, Net 19 (32) 487 432
----- ----- ----- -----
Income Before
Interest Charges 3,810 3,097 7,215 5,615
----- ----- ----- -----
----- ----- ----- -----
Interest Charges 1,813 1,568 3,611 3,087
----- ----- ----- -----
------ ------ ------ ------
Net Income Applicable
to Common Stock $1,997 $1,529 $3,604 $2,528
------ ------ ------ ------
Weighted Average
Common Shares
Outstanding -
Basic 7,427 7,334 7,426 7,324
Net Income per
Common Share -
Basic $0.27 $0.21 $0.49 $0.35
Weighted Average
Common Shares
Outstanding -
Diluted 7,479 7,445 7,481 7,438
Net Income per
Common Share -
Diluted $0.27 $0.21 $0.48 $0.34
Artesian Resources Corporation
Condensed Consolidated Balance Sheet
(In thousands)
(Unaudited)
June 30, 2009 December 31, 2008
------------- -----------------
Assets
Utility Plant, at original
cost less accumulated
depreciation $321,808 $318,243
Current Assets 11,397 13,472
Regulatory and Other Assets 18,861 16,991
------ ------
$352,066 $348,706
======== ========
Capitalization and Liabilities
Stockholder's Equity $89,390 $87,794
Long Term Debt, Net of
Current Portion 107,082 107,555
Current Liabilities 33,945 34,377
Advances for Construction 20,283 21,089
Contributions in Aid of
Construction 67,842 66,841
Other Liabilities 33,524 31,050
------ ------
$352,066 $348,706
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