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Artesian Resources Corporation Reports Second Quarter 2015 Results

NEWARK, Del., Aug. 05, 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 second quarter of 2015 was $3.2 million, an increase of $1.3 million, compared to $2.0 million in net income recorded during the second quarter of 2014. Diluted net income per share increased to $0.36 compared to $0.22 for the second quarter of 2014.

Revenues for the second quarter of 2015 were $19.5 million, a 9.2% increase from the $17.9 million in revenues recorded for the same three month period of 2014. Water sales revenues increased $1.5 million, or 9.6%, for the three months ended June 30, 2015 compared to the same period a year ago. This increase primarily was a result of temporary rate increases that were placed into effect on June 10, 2014 and November 13, 2014. In addition, overall water consumption increased during the three months ended June 30, 2015 compared to the same period a year ago as a result of May 2015 being the tenth driest May in Delaware since recordkeeping began in 1895; although its impact on the quarter was significantly reduced by the effect of the 12.5 inches of rain recorded in northern Delaware this June. Non-utility operating revenue increased $0.1 million, or 11.5%, for the three months ended June 30, 2015 compared to the same period a year ago as enrollment in water and wastewater service line protection plans continued to increase.

Excluding depreciation and income taxes, operating expenses decreased $0.6 million, or 5.6% to $10.2 million for the second quarter of 2015, compared to $10.8 million for the same period in 2014. Utility operating expenses for the second quarter of 2015 were $8.5 million, a $0.6 million, or 6.3%, decrease from the $9.1 million recorded for the same period in 2014. The decrease is mainly the result of reduced payroll and employee benefit costs of $0.8 million. Offsetting these decreased expenses was $0.2 million of amortization of amounts incurred in regard to our pending water utility filing in Delaware for rate relief.

“The ability to implement the temporary rate increase has allowed Artesian to begin recovery of the $47 million we invested in infrastructure improvements over the three year period ending September 30, 2014 to ensure water quality and service reliability to our customers. The ensuing improvement in revenues combined with our continued diligence in managing expenses resulted in the increase in our net income,” said Dian C. Taylor, Chair, President and CEO.

Through the first six months of 2015, Artesian had net income of $5.8 million, compared to net income of $4.0 million recorded for the same period of 2014. Diluted earnings per share increased to $0.64 for the six months ended June 30, 2015 from $0.45 for the six months ended June 30, 2014. Revenues during the first six months of 2015 increased 7.8% to $37.5 million, while operating expenses, excluding depreciation and income taxes, decreased 2.4%. The company invested $9.6 million in infrastructure improvements through the first six months of 2015 to ensure high quality and reliable service to customers.

About Artesian Resources

Artesian Resources Corporation operates as a 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 water utility on the Delmarva Peninsula and has been providing water service since 1905. Artesian supplies 7.3 billion gallons of water per year through 1,201 miles of water main to approximately 300,000 people.


Artesian Resources Corporation
Condensed Consolidated Statement of Operations
(In thousands, except per share amounts)
(Unaudited)
Three months ended Six months ended
June 30, June 30,
2015 2014 2015 2014
Operating Revenues
Water sales$ 17,474 $ 15,950 $33,512 $31,034
Other utility operating revenue 894 893 1,756 1,686
Non-utility operating revenue 1,168 1,048 2,229 2,071
19,536 17,891 37,497 34,791
Operating Expenses
Utility operating expenses 8,501 9,070 17,162 17,587
Non-utility operating expenses 607 632 1,127 1,190
Depreciation and amortization 2,192 2,155 4,401 4,293
State and federal income taxes 2,191 1,312 3,955 2,713
Property and other taxes 1,060 1,073 2,195 2,213
14,551 14,242 28,840 27,996
Operating Income 4,985 3,649 8,657 6,795
Allowance for funds used during construction 43 95 67 146
Miscellaneous (41) (39) 549 583
Income Before Interest Charges 4,987 3,705 9,273 7,524
Interest Charges 1,754 1,743 3,503 3,479
Net Income $ 3,233 $ 1,962 $5,770 $4,045
Weighted Average Common Shares Outstanding - Basic 8,926 8,884 8,922 8,865
Net Income per Common Share - Basic$ 0.36 $ 0.22 $0.65 $0.46
Weighted Average Common Shares Outstanding - Diluted 8,960 8,928 8,958 8,914
Net Income per Common Share - Diluted$ 0.36 $ 0.22 $0.64 $0.45
Artesian Resources Corporation
Condensed Consolidated Balance Sheet
(In thousands)
(Unaudited)
June 30, December 31,
2015 2014
Assets
Utility Plant, at original cost less
accumulated depreciation$ 398,923 $ 393,793
Current Assets 13,835 16,648
Regulatory and Other Assets 11,812 11,772
$ 424,570 $ 422,213
Capitalization and Liabilities
Stockholders' Equity$ 127,920 $ 125,605
Long Term Debt, Net of Current Portion 104,295 104,954
Current Liabilities 25,719 30,192
Net Advances for Construction 9,671 10,228
Contributions in Aid of Construction 95,900 92,429
Other Liabilities 61,065 58,805
$ 424,570 $ 422,213

Contact: Nicki Taylor Investor Relations (302) 453-6900 ntaylor@artesianwater.com

Source:Artesian Resources Corporation