NEWARK, Del., May 5, 2015 (GLOBE NEWSWIRE) -- Artesian Resources Corporation (Nasdaq:ARTNA), a leading provider of water, wastewater services and related services on the Delmarva Peninsula, today announced that net income for the first quarter of 2015 was $2.5 million, a $0.5 million increase compared to net income recorded during the first quarter of 2014. Diluted net income per share increased to $0.28 compared to $0.23 for the first quarter of 2014.
Revenues for the first quarter of 2015 were $18.0 million, a 6.3% increase from the $16.9 million in revenues recorded for the same three-month period of 2014. Water sales revenue increased by $1.0 million, or 6.3%, to $16.0 million for the first quarter of 2015. The growth in water sales revenue resulted primarily from greater consumption and interim rate relief placed into effect pending final review and approval by the Delaware Public Service Commission of Artesian’s April 11, 2014 rate application.
“Artesian invested over $47.1 million in infrastructure improvements to ensure water quality and service reliability for its customers since its last rate request in April 2011, and remains committed to providing reliable delivery of high quality water,” noted Dian C. Taylor, Chair, President and CEO. “While we await a decision on our pending request for rate relief, we continue to make system improvements to ensure a reliable and safe water supply to our customers. In the first quarter of 2015, we invested another $3.3 million for such improvements,” said Taylor.
Other utility operating revenues increased by $0.1 million, or 8.7%, to $0.9 million for the first quarter of 2015 due to an increase in the monthly fixed fees for wastewater customers effective September 2014 previously approved by the Delaware Public Service Commission.
Non-utility operating revenues for the first quarter of 2015 were $1.1 million, a 3.8% increase from the same period in 2014, reflecting increased enrollment in Artesian’s Service Line Protection Plans. “We continue to see increased enrollment in our water and wastewater Service Line Protection Plans, with 27.4% of our eligible customers now enrolled for water service coverage and 20.5% of eligible customers enrolled for sewer service coverage,” said Taylor.
Excluding depreciation and income taxes, operating expenses increased by $0.1 million, or 1.0%, to $10.3 million for the first quarter of 2015, compared to $10.2 million for the same period in 2014. Utility operating expenses for the first quarter of 2015 were $8.7 million, a $0.1 million, or 1.7%, increase from the same period in 2014. The increase is primarily a result of an increase in amortized rate case expenses related to the currently pending request for rate relief before the Delaware Public Service Commission of $0.1 million and an increase of $0.1 million in employee medical plan expenses, offset by a $0.1 million decrease in water treatment plant and equipment maintenance costs. The ratio of operating expense, excluding depreciation and income taxes, to total revenue decreased to 57.4% for the first quarter of 2015, compared to 60.4% for the same period in 2014. “Our on-going focus on operational efficiencies has allowed continued restraint in the growth of our operating expenses,” said Taylor.
Depreciation and amortization expense increased by $0.1 million, or 3.3%, to $2.2 million as a result of continued investment in utility plant providing supply, treatment, storage and distribution of water to customers. Federal and state income tax expense increased by $0.4 million, or 25.9%, to $1.8 million as a result of improved pre-tax operating results compared to the first quarter of 2014.
About Artesian Resources
Artesian Resources Corporation operates as the holding company of wholly-owned subsidiaries offering water, wastewater services and related services on the Delmarva Peninsula. Artesian Water Company, the principal subsidiary, is the oldest and largest investor owned public water utility on the Delmarva Peninsula, and has been providing water service since 1905. Artesian supplies over 7.6 billion gallons of water per year through 1,201 miles of water main to about 300,000 people on the Delmarva Peninsula.
|Artesian Resources Corporation|
|Condensed Consolidated Statements of Operations|
|(In thousands, except per share amounts)|
|Three months ended|
|Other utility operating revenue||862||793|
|Utility operating expenses||8,661||8,517|
|Non-utility operating expenses||521||558|
|Depreciation and amortization||2,209||2,138|
|State and federal income taxes||1,764||1,401|
|Property and other taxes||1,135||1,140|
|Allowance for funds used during construction||24||51|
|Income Before Interest Charges||4,286||3,819|
|Weighted Average Common Shares Outstanding - Basic||8,917||8,845|
|Net Income per Common Share - Basic||$||0.28||$||0.24|
|Weighted Average Common Shares Outstanding - Diluted||8,955||8,899|
|Net Income per Common Share - Diluted||$||0.28||$||0.23|
|Artesian Resources Corporation|
|Condensed Consolidated Balance Sheet|
|March 31,||December 31,|
|Utility Plant, at original cost less|
|Regulatory and Other Assets||11,875||11,772|
|Capitalization and Liabilities|
|Long Term Debt, Net of Current Portion||104,557||104,954|
|Advances for Construction||9,947||10,228|
|Contributions in Aid of Construction||94,477||92,429|
CONTACT Nicki Taylor Investor Relations (302) 453-6900 firstname.lastname@example.org
Source:Artesian Resources Corporation