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Artesian Resources Corporation Reports Second Quarter 2015 Results

20:00 EDT 4 Aug 2015 | Globe Newswire

NEWARK, Del., Aug. 05, 2015 (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 second quarter of 2015 was $3.2 million, an increase of $1.3 million, compared to $2.0 million in net income recorded during the second quarter of 2014.  Diluted net income per share increased to $0.36 compared to $0.22 for the second quarter of 2014.

Revenues for the second quarter of 2015 were $19.5 million, a 9.2% increase from the $17.9 million in revenues recorded for the same three month period of 2014.  Water sales revenues increased $1.5 million, or 9.6%, for the three months ended June 30, 2015 compared to the same period a year ago.  This increase primarily was a result of temporary rate increases that were placed into effect on June 10, 2014 and November 13, 2014. In addition, overall water consumption increased during the three months ended June 30, 2015 compared to the same period a year ago as a result of May 2015 being the tenth driest May in Delaware since recordkeeping began in 1895; although its impact on the quarter was significantly reduced by the effect of the 12.5 inches of rain recorded in northern Delaware this June. Non-utility operating revenue increased $0.1 million, or 11.5%, for the three months ended June 30, 2015 compared to the same period a year ago as enrollment in water and wastewater service line protection plans continued to increase.

Excluding depreciation and income taxes, operating expenses decreased $0.6 million, or 5.6% to $10.2 million for the second quarter of 2015, compared to $10.8 million for the same period in 2014.  Utility operating expenses for the second quarter of 2015 were $8.5 million, a $0.6 million, or 6.3%, decrease from the $9.1 million recorded for the same period in 2014.  The decrease is mainly the result of reduced payroll and employee benefit costs of $0.8 million. Offsetting these decreased expenses was $0.2 million of amortization of amounts incurred in regard to our pending water utility filing in Delaware for rate relief.

“The ability to implement the temporary rate increase has allowed Artesian to begin recovery of the $47 million we invested in infrastructure improvements over the three year period ending September 30, 2014 to ensure water quality and service reliability to our customers.  The ensuing improvement in revenues combined with our continued diligence in managing expenses resulted in the increase in our net income,” said Dian C. Taylor, Chair, President and CEO.  

Through the first six months of 2015, Artesian had net income of $5.8 million, compared to net income of $4.0 million recorded for the same period of 2014.  Diluted earnings per share increased to $0.64 for the six months ended June 30, 2015 from $0.45 for the six months ended June 30, 2014.  Revenues during the first six months of 2015 increased 7.8% to $37.5 million, while operating expenses, excluding depreciation and income taxes, decreased 2.4%.  The company invested $9.6 million in infrastructure improvements through the first six months of 2015 to ensure high quality and reliable service to customers.

About Artesian Resources

Artesian Resources Corporation operates as a 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 water utility on the Delmarva Peninsula and has been providing water service since 1905.  Artesian supplies 7.3 billion gallons of water per year through 1,201 miles of water main to approximately 300,000 people.


Artesian Resources Corporation 
Condensed Consolidated Statement of Operations 
(In thousands, except per share amounts) 
(Unaudited) 
             
  Three months ended  Six months ended 
  June 30,  June 30, 
   2015    2014   2015  2014 
Operating Revenues            
Water sales$ 17,474  $ 15,950  $33,512 $31,034 
Other utility operating revenue  894    893   1,756  1,686 
Non-utility operating revenue  1,168    1,048   2,229  2,071 
   19,536    17,891   37,497  34,791 
             
Operating Expenses            
Utility operating expenses  8,501    9,070   17,162  17,587 
Non-utility operating expenses  607    632   1,127  1,190 
Depreciation and amortization  2,192    2,155   4,401  4,293 
State and federal income taxes  2,191    1,312   3,955  2,713 
Property and other taxes  1,060    1,073   2,195  2,213 
   14,551    14,242   28,840  27,996 
             
Operating Income  4,985    3,649   8,657  6,795 
             
Allowance for funds used during construction   43    95   67  146 
Miscellaneous  (41)   (39)  549  583 
Income Before Interest Charges   4,987    3,705   9,273  7,524 
                 
Interest Charges  1,754    1,743   3,503  3,479 
             
Net Income $ 3,233  $ 1,962  $5,770 $4,045 
             
Weighted Average Common Shares Outstanding - Basic  8,926    8,884   8,922  8,865 
                 
Net Income per Common Share - Basic$ 0.36  $ 0.22  $0.65 $0.46 
             
Weighted Average Common Shares Outstanding - Diluted  8,960    8,928   8,958  8,914 
                 
Net Income per Common Share - Diluted$ 0.36  $ 0.22  $0.64 $0.45 
             
Artesian Resources Corporation 
Condensed Consolidated Balance Sheet 
(In thousands) 
(Unaudited) 
             
 June 30, December 31,       
 2015 2014       
Assets            
Utility Plant, at original cost less             
   accumulated depreciation$ 398,923  $ 393,793        
Current Assets  13,835    16,648        
Regulatory and Other Assets  11,812    11,772        
 $ 424,570  $ 422,213        
             
Capitalization and Liabilities            
             
Stockholders' Equity$ 127,920  $ 125,605        
Long Term Debt, Net of Current Portion  104,295    104,954        
Current Liabilities  25,719    30,192        
Net Advances for Construction  9,671    10,228        
Contributions in Aid of Construction  95,900    92,429        
Other Liabilities  61,065    58,805        
 $ 424,570  $ 422,213        
             
Contact:
Nicki Taylor
Investor Relations
(302) 453-6900
ntaylor@artesianwater.com

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