Artesian Resources Corporation Reports First Quarter 2022 Results
04 May 2022 - 06:46AM
Artesian Resources Corporation (Nasdaq: ARTNA), a leading provider
of water and wastewater services, and a number of other related
core business services, on the Delmarva Peninsula, today announced
earnings results for the first quarter of 2022. Net income for the
three months ended March 31, 2022 was $4.5 million, a $0.3 million,
or 6.6% increase, compared to net income recorded during the first
quarter of 2021. Diluted net income per share increased 4.4% to
$0.47 for the three months ended March 31, 2022 compared to $0.45
for the first quarter of 2021.
Dividend Increase
Artesian announced on April 13, 2022 that its
Board of Directors approved a 2.0% increase in the company’s Class
A and Class B Common Stock dividend, raising the annual dividend to
$1.0916 per share. The quarterly dividend of $0.2729 is payable on
May 23, 2022 to shareholders at the close of business on May 9,
2022. This marks Artesian’s 118th consecutive quarterly dividend
paid to shareholders.
First Quarter Results
Revenues totaled $22.2 million for the three
months ended March 31, 2022, $1.5 million, or 7.5%, more than
revenues for the three months ended March 31, 2021. Water sales
revenue increased $0.3 million, or 1.8%, primarily due to continued
growth in the customer base. Other utility operating revenue
increased approximately $1.1 million primarily due to an increase
in wastewater revenue related to the acquisition of Tidewater
Environmental Services, Inc., or TESI, in January 2022, continued
growth of the residential customer base in our existing wastewater
territories, and industrial wastewater service revenue associated
with process wastewater operations that started in June
2021. Non-utility operating revenue increased
approximately $0.1 million, or 5.6%, primarily due to an increase
in Service Line Protection Plan revenue that covers the cost of
materials and labor to repair or replace participants’ leaking
water services or clogged sewer lines.
“With the recent integration of TESI progressing
smoothly, we remain on track to continue with our acquisition
growth. We are expected to close on the acquisition of the Town of
Clayton’s water system in the second quarter of 2022,” said Dian C.
Taylor, Chair, President and CEO. “Purchasing both
municipally-owned systems and regulated public systems is not only
about growth; it allows us to do our part to strengthen water and
wastewater infrastructure in the communities we serve, something
that is crucial for the future,” said Taylor.
Operating expenses, excluding depreciation and
income taxes, increased $1.1 million, or 9.3%, primarily related to
an increase in utility operating expenses and property and other
taxes. The majority of the utility operating expense increases are
related to repair and maintenance costs, payroll and benefits
costs, contractual service costs and purchased power costs
associated with both water and wastewater operations. The utility
operating expense increases are partially offset by a decrease in
purchased water under a new contract, effective January 2022, in
which the minimum amount of water required to be purchased was
reduced.
Property and other taxes increased $0.1 million,
or 5.8%, primarily due to an increase in utility plant subject to
taxation. Property taxes are assessed on land, buildings and
certain utility plant, which include the footage and size of pipe,
hydrants and wells.
Capital Expenditures
As part of Artesian’s ongoing effort to ensure
high-quality reliable service to customers, $12.6 million was
invested in the first three months of 2022 in water and wastewater
infrastructure projects and acquisitions. These investments include
the installation of transmission and distribution facilities,
replacement of aging mains, rehabilitation of treatment facilities
and redevelopment of wells and pumping equipment. We also acquired
wastewater utility plant assets related to the acquisition of TESI.
“For the remainder of 2022, we will continue to execute our
strategic initiatives, which include consolidating and enhancing
our water and wastewater systems, in addition to expanding our
service territory. Furthermore, with the recent acquisition of
TESI, we plan to utilize our larger regional wastewater facilities
in order to gain additional efficiencies in the treatment and
disposal of wastewater,” said Taylor.
About Artesian
ResourcesArtesian Resources Corporation operates as a
holding company of wholly-owned subsidiaries offering water and
wastewater services, and a number of other related core business
services, on the Delmarva Peninsula. Artesian Water Company, the
principal subsidiary, is the oldest and largest regulated water
utility on the Delmarva Peninsula and has been providing water
service since 1905. Artesian supplies 8.4 billion gallons of water
per year through 1,398 miles of main to over a third of
Delawareans.
Forward Looking StatementsThis
release contains forward looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995 regarding,
among other things, our growth strategy, our expectations regarding
the closing of our transaction to acquire a municipal water system,
expectations regarding infrastructure investments, strategic
initiatives and the continued growth in our business, service
territory and the number of customers served. These statements
involve risks and uncertainties that could cause actual results to
differ materially from those expressed or implied by such
forward-looking statements including: changes in weather, changes
in our contractual obligations, changes in government policies, the
timing and results of our rate requests, failure to receive
regulatory approval, changes in economic and market conditions
generally, including inflationary pressures, and other matters
discussed in our filings with the Securities and Exchange
Commission. While the Company may elect to update forward-looking
statements, we specifically disclaim any obligation to do so and
you should not rely on any forward-looking statement as
representation of the Company’s views as of any date subsequent to
the date of this release.
Contact:Nicki TaylorInvestor
Relations(302) 453-6900ntaylor@artesianwater.com
|
Artesian Resources Corporation |
Condensed Consolidated Statement of Operations |
(In thousands, except per share amounts) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
Three months ended |
|
|
|
March 31, |
|
|
|
2022 |
|
|
2021 |
|
Operating Revenues |
|
|
|
|
|
|
Water sales |
$ |
18,143 |
|
$ |
17,830 |
|
Other utility operating revenue |
|
2,525 |
|
|
1,376 |
|
Non-utility revenue |
|
1,519 |
|
|
1,439 |
|
|
|
22,187 |
|
|
20,645 |
|
|
|
|
|
|
|
|
Operating Expenses |
|
|
|
|
|
|
Utility operating expenses |
|
10,495 |
|
|
9,505 |
|
Non-utility operating expenses |
|
943 |
|
|
915 |
|
Depreciation and amortization |
|
3,085 |
|
|
3,012 |
|
State and federal income taxes |
|
1,419 |
|
|
1,351 |
|
Property and other taxes |
|
1,502 |
|
|
1,420 |
|
|
|
17,444 |
|
|
16,203 |
|
|
|
|
|
|
|
|
Operating Income |
|
4,743 |
|
|
4,442 |
|
|
|
|
|
|
|
|
Allowance for funds used during construction |
|
181 |
|
|
244 |
|
Miscellaneous |
|
1,446 |
|
|
1,402 |
|
|
|
|
|
|
|
|
Income Before Interest Charges |
|
6,370 |
|
|
6,088 |
|
|
|
|
|
|
|
|
Interest Charges |
|
1,887 |
|
|
1,882 |
|
|
|
|
|
|
|
|
Net Income |
$ |
4,483 |
|
$ |
4,206 |
|
|
|
|
|
|
|
|
Weighted Average Common Shares Outstanding - Basic |
|
9,423 |
|
|
9,368 |
|
Net Income per Common Share - Basic |
$ |
0.48 |
|
$ |
0.45 |
|
|
|
|
|
|
|
|
Weighted Average Common Shares Outstanding - Diluted |
|
9,455 |
|
|
9,407 |
|
Net Income per Common Share - Diluted |
$ |
0.47 |
|
$ |
0.45 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Artesian Resources Corporation |
Condensed Consolidated Balance Sheet |
(In thousands) |
(Unaudited) |
|
|
|
|
|
|
|
|
March 31, |
|
December 31, |
|
|
2022 |
|
2021 |
|
Assets |
|
|
|
|
|
|
Utility Plant, at original cost less accumulated depreciation |
$ |
618,424 |
|
$ |
590,431 |
|
Current Assets |
|
15,636 |
|
|
18,664 |
|
Regulatory and Other Assets |
|
18,698 |
|
|
15,620 |
|
|
$ |
652,758 |
|
$ |
624,715 |
|
|
|
|
|
|
|
|
Capitalization and Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' Equity |
$ |
180,561 |
|
$ |
178,010 |
|
Long Term Debt, Net of Current Portion |
|
142,908 |
|
|
143,259 |
|
Current Liabilities |
|
51,924 |
|
|
47,206 |
|
Advances for Construction |
|
4,310 |
|
|
4,295 |
|
Contributions in Aid of Construction |
|
197,062 |
|
|
176,656 |
|
Other Liabilities |
|
75,993 |
|
|
75,289 |
|
|
$ |
652,758 |
|
$ |
624,715 |
|
|
|
|
|
|
|
|
Artesian Resources (NASDAQ:ARTNA)
Historical Stock Chart
From Feb 2024 to Mar 2024
Artesian Resources (NASDAQ:ARTNA)
Historical Stock Chart
From Mar 2023 to Mar 2024