NEWARK, Del., May 5 /PRNewswire-FirstCall/ -- Artesian Resources Corporation (Artesian) today announced that revenues for the first quarter of 2009 were $13.9 million, up from $12.3 million for the same three-month period in 2008. Net income increased to $1.6 million for the first quarter, while diluted net income per common share was $0.22, up from $0.13 for the same period last year.
"We had a strong quarter that demonstrated the value of our diversification plans and our commitment to operating as efficiently as possible on behalf of our customers," said Artesian President and CEO Dian C. Taylor.
Revenues for the three months ended March 31, 2009, included a 22.5% increase in non-utility revenue attributable to the addition of Artesian Engineers and the continued popularity of water and wastewater Service Line Protection Plans. Revenues from water sales during the first quarter increased by 12.7% over the same period of 2008 due to the addition of approximately 500 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 increased $714,000, or 6.9%, compared to the same period in 2008. A company-wide effort to improve efficiency resulted in a 1.9% decrease in utility operating expenses. However, that was offset by increases in state and federal income taxes, as well as a 20% rise in depreciation expense. The increase in depreciation expense was primarily due to Artesian's continuing investment in water system upgrades. Additionally, non-utility operating expenses increased $107,000 in the first quarter of 2009 as a result of more contract work compared to the same period last year.
"Our growth on a quarter-over-quarter basis reflects regulatory lag--we are just now recouping the higher expenses that depressed our net income in the first quarter of 2008," Taylor said. "However, we continue to record consistent financial growth, which will enable us to maintain system quality, improve reliability and reinforce our commitment to customer service."
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. Other subsidiaries include Artesian Water Maryland, Inc.; Artesian Wastewater Maryland, Inc.; Artesian Water Pennsylvania, Inc.; Artesian Wastewater Management, Inc.; Artesian Utility Development, Inc.; Artesian Consulting Engineers, Inc.; and Artesian Development Company.
This release contains forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 regarding, among other things, our expectations to produce consistent returns that will enable us to make continued investments in plant to maintain system quality and improve reliability. These statements involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such forward-looking statements including: general economic business conditions, timing of and margins on our wastewater design and construction projects, changes in regulations or regulatory treatment, availability and cost of capital, unfavorable weather conditions, the success of growth initiatives, and other factors discussed in our filings with the Securities and Exchange Commission. While the Company may elect to update forward-looking statements, we specifically disclaim any obligation to do so and you should not rely on any forward-looking statement as representation of the Company's views as of any date subsequent to the date of this release.
Artesian Resources Corporation Condensed Consolidated Statement of Operations (In thousands, except per share amounts) (Unaudited) Three months ended Three months ended March 31, 2009 March 31, 2008 -------------- -------------- Operating Revenues Water sales $12,500 $11,089 Other utility operating revenue 468 440 Non-utility revenue 908 741 ------ ------ 13,876 12,270 ------ ------ Operating Expenses Utility operating expenses 6,844 6,973 Non-utility operating expenses 670 563 Depreciation and amortization 1,598 1,334 State and federal income taxes 1,083 671 Property and other taxes 853 793 ------ ------ 11,048 10,334 ------ ------ Operating Income 2,828 1,936 Allowance for funds used during construction 109 117 Other Income, Net 468 464 ----- ----- Income Before Interest Charges 3,405 2,517 ----- ----- ----- ----- Interest Charges 1,798 1,518 ----- ----- ------ ---- Net Income Applicable to Common Stock $1,607 $999 ------ ---- Weighted Average Common Shares Outstanding - Basic 7,413 7,313 Net Income per Common Share -Basic $0.22 $0.14 Weighted Average Common Shares Outstanding - Diluted 7,470 7,434 Net Income per Common Share - Diluted $0.22 $0.13 Artesian Resources Corporation Condensed Consolidated Balance Sheet (In thousands) (Unaudited) March 31, December 31, 2009 2008 ----------- ------------ ASSETS Utility Plant, at original cost less accumulated depreciation $319,443 $318,243 Current Assets 10,917 13,472 Regulatory and Other Assets 17,608 16,991 ------ ------ $347,968 $348,706 ======== ======== CAPITALIZATION AND LIABILITIES Stockholder's Equity $88,400 $87,794 Long Term Debt, Net of Current Portion 107,277 107,555 Current Liabilities 32,429 34,377 Advances for Construction 20,696 21,089 Contributions in Aid of Construction 66,913 66,841 Other Liabilities 32,253 31,050 ------ ------ $347,968 $348,706 ======== ========
Artesian Resources Corporation
CONTACT: Nicki Taylor, Investor Relations for Artesian Resources
Corporation, +1-302-453-6900, ntaylor@artesianwater.com
