NEWARK, Del., May 8, 2012 /PRNewswire/ --Artesian Resources Corporation, (Nasdaq: ARTNA), a leading provider of water, wastewater and engineering services on the Delmarva Peninsula, today announced that revenues for the first quarter of 2012 were $16.7 million, a 13.2% increase from the $14.8 million in revenues recorded for the same three-month period of 2011.
Net income for the quarter grew to $2.5 million from the $1.0 million in net income recorded during the first quarter of 2011, primarily resulting from an increase of $2.1 million in revenue from water sales and a $0.5 million decline in operating expenses. As a result, diluted net income per share increased to $0.29 compared to $0.13 for the first quarter of 2011.
The addition last year of nearly 2,000 customers in Delaware and Cecil County, Maryland contributed to a 16.5% increase in water sales during the first quarter of 2012. Revenues from water sales were also higher as compared to the same three month period of 2011 due to a water rate increase in 2011, which was granted by the Delaware Public Service Commission to enable Artesian to recover prior investments in its water system. The delay in collecting revenues to pay for the investments had depressed Artesian's fiscal performance in the first quarter of 2011.
Artesian continued to tightly manage operating expenses during the first quarter of 2012. Excluding depreciation and income taxes, operating expenses decreased $0.5 million, or 5.7%, to $9.5 million for the three months ended March 31, 2012, compared to $10.0 million for the same period in 2011. Among other measures, Artesian lowered its operating expenses by negotiating a more cost-effective contract for electric generation and by reducing non-utility payroll and other expenses.
"Our growth strategies are providing rewards for our customers, our communities and our investors," Taylor said. "We are investing in the infrastructure that our communities need to grow. At the same time, we are focused on improving the service we provide to all customers. I would like to particularly thank our management team and employees for controlling our expenses."
As a convenience to customers, Artesian converted to monthly billing as of April 1 to enable customers to better manage their budget and monitor their water consumption. The company also recently instituted e-Billing, a free electronic billing service for customers.
Artesian announced on April 25 that it is increasing its dividend by 2.5%, raising its annual dividend to $0.7912 per share. Artesian has increased its dividend each year for the past 15 years.
About Artesian Resources
Artesian Resources Corporation operates as the holding company of eight wholly-owned subsidiaries offering water, wastewater and engineering 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 Statements of Operations
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Three months ended
Other utility operating revenue
Utility operating expenses
Non-utility operating expenses
Depreciation and amortization
State and federal income taxes
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Allowance for funds used during construction
Income Before Interest Charges
Weighted Average Common Shares Outstanding - Basic
Net Income per Common Share - Basic
Weighted Average Common Shares Outstanding - Diluted
Net Income per Common Share - Diluted
Artesian Resources Corporation
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SOURCE Artesian Resources Corporation