Artesian Resources Corporation Reports 2016 Third Quarter and Year-to-Date Results

NEWARK, Del., Nov. 02, 2016 (GLOBE NEWSWIRE) -- Artesian Resources Corporation (Nasdaq:ARTNA), a leading provider of water, wastewater services and related services on the Delmarva Peninsula, announced today that net income for the third quarter of 2016 was $4.4 million, an increase of $0.7 million, or 17.9%, compared to the $3.7 million in net income reported during the third quarter of 2015.  Diluted net income per share increased 17.1% to $0.48 compared to $0.41 for the third quarter of 2015.

Revenues for the third quarter of 2016 were $21.8 million, a $1.0 million, or 5.1%, increase over the same quarter of 2015.  Water sales revenue increased $0.8 million, or 4.5%, to $19.7 million for the third quarter of 2015 compared to $18.8 million for the third quarter of 2015.  The increase is due primarily to an increase in the Distribution System Improvement Charge, or DSIC, and overall greater water consumption. 

Excluding depreciation and income taxes, operating expenses increased $0.4 million, or 4.0%, to $11.1 million for the third quarter of 2016 compared to $10.7 million for the same period in 2015.  Utility operating expenses for the third quarter of 2016 were $9.3 million, a $0.3 million, or 2.8%, increase from the $9.0 million recorded for the same period in 2015.  The increase is primarily the result of increased legal costs and increased purchased water expense due to the timing of purchases.

Interest expenses decreased $0.1 million, or 6.1%, to $1.7 million for the third quarter of 2016 compared to $1.8 million for the same period of 2015 primarily due to a decrease in the Series S First Mortgage Bond interest rate from 6.73% to 4.45%, effective March 1, 2016, and a decrease in short-term debt outstanding.

Through the first nine months of 2016, Artesian had net income of $10.2 million, an increase of 8.0% compared to net income of $9.5 million recorded for the same period of 2015.  Diluted net income per share increased 5.7% to $1.12 for the nine months ended September 30, 2016 from $1.06 for the same period of 2015.

Revenues during the first nine months of 2016 increased $1.4 million, or 2.4%, to $59.7 million.  Water sales revenue increased $1.1 million, or 2.1%, for the nine months ended September 30, 2016 from the corresponding period in 2015.  The increase in water sales revenue is primarily due to an increase in the DSIC and an increase in the number of customers served and resulting fixed customer and fire protection charges.

Excluding depreciation and income taxes, operating expenses increased $0.7 million, or 2.3%, to $31.9 million for the nine months ended September 30, 2016 compared to $31.2 million for the same period of 2015.  Utility operating expenses for the nine months ended September 30, 2016 were $26.6 million, a $0.4 million, or 1.5%, increase from the $26.2 million recorded for the same period of 2015.  The increase is primarily the result of increased legal, payroll and employee benefit expenses, somewhat offset by lower purchased power costs under a new three-year electric generation supply contract effective May 2016.

Interest expenses decreased $0.3 million, or 4.9%, to $5.0 million for the nine months ended September 30, 2016 compared to $5.3 million for the same period of 2015 primarily due to a decrease in the Series S First Mortgage Bond interest rate from 6.73% to 4.45%, effective March 1, 2016, and a decrease in short-term debt outstanding.

The Company invested $20.0 million in infrastructure improvements during the first nine months of 2016 to ensure high quality and reliable service to customers.  Significant infrastructure improvements included the replacement of aging water mains, upgrade of meter equipment, enhancement of water treatment facilities, rehabilitation of pumping equipment and the relocation of mains as mandated by state highway projects. 

“Our ability to continue to control expenses coupled with increased water consumption during the third quarter of 2016 contributed to our overall positive results.  We are also able to obtain timely recovery through the Distribution System Improvement Charge on a portion of our investments made in infrastructure so that our customers receive reliable and safe water,” said Dian C. Taylor, Chair, President and CEO.

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 7.6 billion gallons of water per year through 1,218 miles of water main to approximately 301,000 people.

Contact:
Nicki Taylor
Investor Relations
(302) 453-6900
[email protected]