NEWARK, Del., May 6, 2014 (GLOBE NEWSWIRE) -- Artesian Resources Corporation (Nasdaq:ARTNA), a leading provider of water, wastewater services and related services on the Delmarva Peninsula, today announced that net income for the first quarter of 2014 was $2.1 million, a $0.5 million increase compared to $1.6 million in net income recorded during the first quarter of 2013. Diluted net income per share increased to $0.23 compared to $0.19 for the first quarter of 2013.
Revenues for the first quarter of 2014 were $16.9 million, a 3.5% increase from the $16.3 million in revenues recorded for the same three-month period of 2013. Water sales revenue increased $0.5 million, or 3.5%, to $15.1 million for the first quarter of 2014, compared to $14.6 million for the same period in 2013. The increase was primarily from greater water consumption and revenue received from a Distribution System Improvement Charge (DSIC), which went into effect on January 1, 2014 at a rate of 3.32%. For the same period in 2013, the DSIC charge in effect was 1.59%. "The Distribution System Improvement Charge allows Artesian to recover investments previously made in specific types of distribution system improvements such as replacements of aging water mains in a timely manner. These types of improvements are critical to ensuring reliable customer service," said Dian C. Taylor, Chair, President and CEO.
Non-utility operating revenues for the first quarter of 2014 were $1.0 million, a 5.0% increase from the same period in 2013, reflecting increased enrollment in Artesian's Service Line Protection Plans. "We continue to see increased enrollment in our water and wastewater Service Line Protection Plans, with 26% of our eligible customers now enrolled for water service coverage and 18% of eligible customers enrolled for sewer service coverage," said Dian C. Taylor.
Excluding depreciation and income taxes, operating expenses decreased $0.2 million, or 2.1%, to $10.2 million for the first quarter of 2014, compared to $10.4 million for the same period in 2013. Utility operating expenses for the first quarter of 2014 were $8.5 million, a $0.3 million, or 3.6%, decrease from the $8.8 million recorded for the same period in 2013. The decrease is primarily a result of $0.6 million less in legal costs associated with litigation against the Chester Water Authority in regard to the proper determination of the rate charged for water purchased under contract from them. Employee payroll and benefit costs increased $0.3 million in the first quarter of 2014 compared to the same period in 2013, which included increased overtime costs related to snow removal efforts. The ratio of operating expense, excluding depreciation and income taxes, to total revenue decreased to 60.4% for the first quarter of 2014, compared to 63.9% for the same period in 2013.
About Artesian Resources
Artesian Resources Corporation operates as the holding company of wholly-owned subsidiaries offering water, wastewater services and related 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 supplies over 7.3 billion gallons of water per year through 1,182 miles of water main to about 300,000 people on the Delmarva Peninsula.
| Artesian Resources Corporation | ||
| Condensed Consolidated Statements of Operations | ||
| (In thousands, except per share amounts) | ||
| (Unaudited) | ||
| Three months ended | ||
| March 31, | ||
| 2014 | 2013 | |
| Operating Revenues | ||
| Water sales | $ 15,084 | $ 14,567 |
| Other utility operating revenue | 793 | 786 |
| Non-utility revenue | 1,023 | 974 |
| 16,900 | 16,327 | |
| Operating Expenses | ||
| Utility operating expenses | 8,517 | 8,831 |
| Non-utility operating expenses | 558 | 539 |
| Depreciation and amortization | 2,138 | 2,041 |
| State and federal income taxes | 1,401 | 1,111 |
| Property and other taxes | 1,140 | 1,067 |
| 13,754 | 13,589 | |
| Operating Income | 3,146 | 2,738 |
| Allowance for funds used during construction | 51 | 67 |
| Miscellaneous | 622 | 582 |
| Income Before Interest Charges | 3,819 | 3,387 |
| Interest Charges | 1,736 | 1,747 |
| Net Income | $ 2,083 | $ 1,640 |
| Weighted Average Common Shares Outstanding - Basic | 8,845 | 8,725 |
| Net Income per Common Share - Basic | $ 0.24 | $ 0.19 |
| Weighted Average Common Shares Outstanding - Diluted | 8,899 | 8,794 |
| Net Income per Common Share - Diluted | $ 0.23 | $ 0.19 |
| Artesian Resources Corporation | ||
| Condensed Consolidated Balance Sheet | ||
| (In thousands) | ||
| (Unaudited) | ||
| March 31, | December 31, | |
| 2014 | 2013 | |
| Assets | ||
| Utility Plant, at original cost less | ||
| accumulated depreciation | $ 379,345 | $ 378,960 |
| Current Assets | 12,043 | 13,254 |
| Regulatory and Other Assets | 11,719 | 11,618 |
| $ 403,107 | $ 403,832 | |
| Capitalization and Liabilities | ||
| Stockholders' Equity | $ 122,775 | $ 121,836 |
| Long Term Debt, Net of Current Portion | 105,475 | 105,510 |
| Current Liabilities | 22,629 | 25,563 |
| Advances for Construction | 11,158 | 11,427 |
| Contributions in Aid of Construction | 88,827 | 87,865 |
| Other Liabilities | 52,243 | 51,631 |
| $ 403,107 | $ 403,832 | |