NEWARK, Del., Nov. 5 /PRNewswire-FirstCall/ -- Artesian Resources Corporation (Artesian) today announced that revenue through the third quarter of 2009 was $45.4 million, up from $41.8 million for the same nine-month period of 2008. Net income rose to $5.7 million for the year through September 30, an increase of 11.6% from the same period last year. Diluted net income per common share increased to $0.76 for the nine months ended September 30, 2009 from $0.69 in the same period last year.
For the third quarter of 2009, revenue was $16.2 million, up from $15.7 million for the same three-month period in 2008. Net income decreased to $2.1 million from $2.6 million in the same quarter a year ago, while diluted net income per common share declined to $0.28 from $0.35 in the same period last year.
"The extremely wet weather this summer has reduced customer demand for water to the lowest levels we have seen in nearly a decade," said Artesian President and CEO Dian C. Taylor. "However, we softened the impact of the wet weather on our earnings by initiating company-wide cost containment efforts, with particular focus on controlling discretionary spending, and diversifying our business to provide revenue from non-utility sources that are not weather dependent."
Non-utility revenues for the year through September 30, 2009, increased 29.7% to $3.3 million. For the third quarter of 2009, non-utility revenues grew to $1.3 million, a 32.5% increase from the same period of 2008. The increase in non-utility revenue was attributable to last year's acquisition of Artesian Consulting Engineers and the continued popularity of water and wastewater Service Line Protection Plans.
Revenues from water sales during the third quarter were steady at $14.4 million, up 1.4% from the third quarter of 2008. In 2009, the Delaware Public Service Commission granted an increase in water rates of 15%. The impact of the rate increase was offset by lower demand for water due to the weather.
Operating expenses increased 5.9% to $12.3 million in the third quarter of 2009 compared to the same period in 2008, reflecting higher payroll and employee benefits costs, as well as increased purchased water expenses and taxes.
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. Artesian Resources is a member of the small-market Russell 2000 Index and has paid a common stock dividend for 68 consecutive quarters.
http://artesianwater.com
Artesian Resources Corporation
Condensed Consolidated Statement of Operations
(In thousands, except per share amounts)
(Unaudited)
Three Three Nine Nine
months months months months
Ended ended ended ended
September September September September
30, 30, 30, 30,
2009 2008 2009 2008
---- ---- ---- ----
Operating Revenues
Water sales $ 14,426 $ 14,224 $ 40,643 $ 37,827
Other utility
operating
revenue 470 477 1,480 1,469
Non-utility revenue 1,265 955 3,284 2,532
16,161 15,656 45,407 41,828
Operating Expenses
Utility operating
expenses 7,479 7,034 21,469 21,288
Non-utility
operating
expenses 819 621 2,279 1,766
Depreciation and
amortization 1,653 1,422 4,852 4,062
State and federal
income taxes 1,471 1,758 3,859 3,448
Property and other
taxes 888 791 2,594 2,381
12,310 11,626 35,053 32,945
Operating Income 3,851 4,030 10,354 8,883
Allowance for funds
used during
construction 106 285 330 615
Other Income, Net (35) (49) 452 385
Income Before Interest
Charges 3,922 4,266 11,136 9,883
Interest Charges 1,810 1,673 5,420 4,762
Net Income Applicable
to Common Stock $ 2,112 $ 2,593 $ 5,716 $ 5,121
Weighted Average
Common Shares
Outstanding -
Basic 7,465 7,355 7,439 7,340
Net Income per
Common Share -
Basic $ 0.28 $ 0.35 $ 0.77 $ 0.70
Weighted Average
Common Shares
Outstanding -
Diluted 7,538 7,451 7,498 7,439
Net Income per
Common Share -
Diluted $ 0.28 $ 0.35 $ 0.76 $ 0.69
Artesian Resources Corporation
Condensed Consolidated Balance Sheet
(In thousands)
(Unaudited)
September 30, December 31,
2009 2008
---- ----
Assets
Utility Plant, at
original cost less
accumulated depreciation $ 324,296 $ 318,243
Current Assets 13,979 13,472
Regulatory and
Other Assets 18,888 16,991
$ 357,163 $ 348,706
Capitalization and Liabilities
Stockholder's Equity $ 90,688 $ 87,794
Long Term Debt, Net of
Current Portion 106,221 107,555
Current Liabilities 38,214 34,377
Advances for Construction 19,799 21,089
Contributions in Aid of
Construction 68,008 66,841
Other Liabilities 34,233 31,050
$ 357,163 $ 348,706
Artesian Resources Corporation
