NEWARK, Del., Nov. 5, 2010 /PRNewswire-FirstCall/ -- Artesian Resources Corporation, , a leading provider of water, wastewater and engineering services on the Delmarva Peninsula, today announced that revenues for the third quarter of 2010 were $18.0 million, an 11.1% increase from the $16.2 million in revenues for the same three-month period of 2009.
Net income for the quarter grew to $2.9 million, a 37.2% increase from the $2.1 million in net income for the third quarter of 2009. Basic and diluted net income per share increased 35.7% to $0.38 and $0.38, respectively, from the same period of 2009.
"We had a very strong quarter driven by an increase in water sales, which returned to a more normal level than in 2009 when record rains reduced water usage in our service areas," said Artesian President and CEO Dian C. Taylor. "We also received solid revenue contributions from our non-utility businesses, such as our water and sewer service line protections plans, which are very popular with our customers."
Water sales, which accounted for 89.6% of revenues, increased to $16.1 million, an 11.6% increase over the $14.4 million in the third quarter of 2009. Through the first nine months of the year, water sales have increased by 5.6%.
Non-utility revenues held flat at $1.2 million for the third quarter, but have grown by $775,000 or 23.6% through the first nine months of 2010. The increase is primarily attributable to the continued popularity of the service line protection plans, additional contract revenue for design and permitting services for a project in Middletown, Delaware, and for increased contract services for municipalities in Maryland.
Operating expenses for the third quarter increased 4.3% to $9.6 million for the three months ended September 30, compared to $9.2 million for the same period in 2009. Utility operating expenses grew by 2.9%, primarily due to payroll and employee benefits cost increases, while non-utility operating expenses grew by $127,000, primarily as a result of increased project activity by Artesian Utility as compared to the same period in 2009. Depreciation expense grew by $97,000, primarily as a result of Artesian's continuing investment in its service infrastructure to ensure reliable supply, treatment, storage and distribution of water.
"We are committed to consistently growing our revenues and profits while providing superior service to our customers," Taylor said. "Efficiently managing our company and delivering great value to investors enables us to attract the capital we need to ensure that our water infrastructure remains safe and reliable for our hundreds of thousands of customers."
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 Water distributes and sells water to residential, commercial, industrial, governmental, municipal and utility customers. Other subsidiaries include Artesian Water Maryland, Inc., Artesian Water Pennsylvania, Inc., Artesian Wastewater Management, Inc., Artesian Wastewater Maryland, Inc., Artesian Utility Development, Inc., Artesian Consulting Engineers, Inc. and Artesian Development Company.
Artesian Resources Corporation Condensed Consolidated Statement of Operations (In thousands, except per share amounts) (Unaudited) Three months ended Nine months ended September 30, September 30, 2010 2009 2010 2009 ---- ---- ---- ---- Operating Revenues Water sales $16,097 $14,426 $42,901 $40,643 Other utility operating revenue 657 470 1,990 1,480 Non-utility revenue 1,209 1,265 4,059 3,284 ----- ----- ----- ----- 17,963 16,161 48,950 45,407 ------ ------ ------ ------ Operating Expenses Utility operating expenses 7,697 7,479 22,531 21,469 Non-utility operating expenses 946 819 2,923 2,279 Depreciation and amortization 1,750 1,653 5,204 4,852 State and federal income taxes 1,922 1,471 4,248 3,859 Property and other taxes 942 888 2,931 2,594 --- --- ----- ----- 13,257 12,310 37,837 35,053 ------ ------ ------ ------ Operating Income 4,706 3,851 11,113 10,354 Allowance for funds used during construction 73 106 140 330 Miscellaneous (47) (35) 520 452 Income Before Interest Charges 4,732 3,922 11,773 11,136 Interest Charges 1,835 1,810 5,432 5,420 Net Income $2,897 $2,112 $6,341 $5,716 ====== ====== ====== ====== Weighted Average Common Shares Outstanding - Basic 7,562 7,465 7,538 7,439 Net Income per Common Share - Basic $0.38 $0.28 $0.84 $0.77 Weighted Average Common Shares Outstanding - Diluted 7,623 7,538 7,601 7,498 Net Income per Common Share - Diluted $0.38 $0.28 $0.83 $0.76 Artesian Resources Corporation Condensed Consolidated Balance Sheet (In thousands) (Unaudited) September December 30, 31, 2010 2009 ---- ---- Assets Utility Plant, at original cost less accumulated depreciation $341,636 $326,899 Current Assets 14,214 13,243 Regulatory and Other Assets 10,030 18,753 ------ ------ $365,880 $358,895 ======== ======== Capitalization and Liabilities Stockholder's Equity $94,381 $91,174 Long Term Debt, Net of Current Portion 104,678 106,025 Current Liabilities 38,585 36,521 Advances for Construction 17,306 18,433 Contributions in Aid of Construction 73,304 71,243 Other Liabilities 37,626 35,499 ------ ------ $365,880 $358,895 ======== ========
Artesian Resources Corporation
CONTACT: Dan Tipton, Tipton Communications (for Artesian Resources),
+1-302-454-7901, dan@tiptoncommunications.com
Web Site: http://www.artesianwater.com/
