NEWARK, Del., March 16 /PRNewswire-FirstCall/ -- Artesian Resources Corporation (Artesian) today announced that basic and diluted net income per common share for 2005 were $1.26 and $1.22, as compared to $1.12 and $1.08 in 2004. Revenues for 2005 were $45.3 million, up 14.4% from $39.6 million in 2004. Net income available to common stockholders was $5.0 million, compared to $4.4 million last year, also a 14.4% increase.
Commenting on Artesian's results for 2005 and the Company's 100 year Anniversary, Artesian President and CEO, Dian C. Taylor said: "We are pleased to complete our first 100 years of service in 2005 on such a positive note. We continue to achieve solid financial results as well as provide our shareholders with attractive returns. We work hard, treat our employees fairly, provide our customers superior water service at an affordable price, and we respect the environment. It has worked for the first hundred years, and will guide us into our second century as well."
Revenue in 2005 reflected the increase in the number of water utility customers served in 2005 and increased water rates that became effective in 2004. Artesian also achieved increases in both revenue and income in 2005 as a result of generally more typical summer weather conditions in 2005 compared to the generally wet weather pattern of summer 2004. Rainfall in New Castle County, Delaware, was approximately 33% above average in 2004. Although the Spring and early Summer of 2005 were somewhat wetter than usual, a warmer and drier period of weather in late Summer resulted in increased water demand compared to the prior year. In addition, the expansion of our non-regulated wastewater operations contributed to revenue growth. In 2005, we had revenues from design/build contracts for ten wastewater treatment projects.
Water sales revenues were up $3.7 million, or 9.6%. In addition to the change in summer weather patterns noted above, the number of water customers served grew 1.9% from a year ago. Also, as permitted by Delaware statute, Artesian placed a 6.9% temporary rate increase into effect on April 6, 2004 and an additional 8.1% increase on September 7, 2004 to recover expenses associated with the investment of $44 million in utility plant. The temporary rates will remain in effect pending a final ruling on the rate increase request filed in February 2004.
Artesian recorded $3.6 million in non-utility and other utility operating revenue in 2005, up $2.1 million from 2004, primarily from wastewater and contract operations services.
Operating expenses, excluding depreciation and taxes increased $3.8 million, or 18.6%, to $24.5 million in 2005. This increase is the result of increased non utility operating expenses of $1.8 million, primarily for engineering services related to new wastewater projects, increased payroll and benefits costs of $1.2 million due to increased staffing and pay adjustments, increased audit fees and other fees of $500,000 associated with the implementation of the Sarbanes-Oxley Act and increased power and electric charges of $135,000. These increases were partially offset by efforts to control other expenses.
Artesian continues to make significant investments in infrastructure to assure high quality water is delivered to customers. In 2005, $20.2 million was invested in utility plant, including new and replacement transmission and distribution mains, improvements made to existing treatment facilities, rehabilitation of pumping equipment and the installation of new wells to increase supply capabilities.
Artesian Resources Corporation, through our wholly owned subsidiary Artesian Water Company, is the largest investor owned regulated public water utility in the State of Delaware and has been providing water within the state since 1905. More than $166 million has been invested in Artesian's utility plant over the last 10 years to provide sufficient treated supply, new water mains and additional storage capacity to meet peak demands and provide fire protection for Delaware residents. We distribute and sell water to residential, commercial, industrial, governmental, municipal and utility customers throughout the state. As of December 31, 2005, Artesian was serving approximately 72,400 metered customers, providing water service to about 239,000 residents (including contract services), approximately 28% of Delaware's total population. Last year, Artesian distributed 7.5 billion gallons of water. Artesian serves its customers through 107 operating wells. Artesian's water supply is treated at 50 different locations statewide. Artesian owns and maintains approximately 1,000 miles of water main throughout the state.
Artesian Resources Corporation
Condensed Consolidated Statement of Operations
(In thousands, except share and per share data)
Three months Three months Twelve months Twelve months
ended ended ended ended
December 31, December 31, December 31, December 31,
2005 2004 2005 2004
Operating
Revenues $11,501 $10,210 $45,285 $39,582
Operating Expenses
Operations and
Maintenance
Expenses 6,207 5,214 24,543 20,700
Depreciation and
Amortization 1,145 1,031 4,365 4,046
State &
Federal Taxes 786 780 3,347 2,892
Property and
Other Taxes 599 452 2,389 2,070
8,737 7,477 34,644 29,708
Operating Income 2,764 2,733 10,641 9,874
Other Income, net 12 25 515 471
Income Before
Interest Charges 2,776 2,758 11,156 10,345
Interest Charges 1,578 1,513 6,121 5,943
Net Income 1,198 1,245 5,035 4,402
Preferred
Dividend
Requirement - - - 2
Net Income
Applicable to
Common Stock $1,198 $1,245 $5,035 $4,400
Weighted Average
Common Shares
Outstanding -
Basic 4,011,596 3,952,046 3,989,016 3,936,066
Net Income
per Common
Share - Basic $0.30 $0.32 $1.26 $1.12
Weighted Average
Common Shares
Outstanding -
Diluted 4,135,155 4,079,024 4,121,074 4,065,651
Net Income per
Common Share
- Diluted $0.29 $0.31 $1.22 $1.08
Artesian Resources Corporation
Condensed Consolidated Balance Sheet
(In thousands)
December 31, 2005 December 31, 2004
ASSETS
Utility Plant, at original
cost less accumulated
depreciation $227,566 $212,152
Current Assets 10,406 9,658
Regulatory and Other Assets 5,882 5,570
$243,854 $227,380
CAPITALIZATION AND LIABILITIES
Stockholders' Equity $57,813 $54,943
Long Term Debt, Net of Current
Portion 92,379 82,356
Current Liabilities 12,238 18,440
Advances for Construction 24,404 21,456
Contributions in Aid of
Construction 37,350 33,426
Other Liabilities 19,670 16,759
$243,854 $227,380
