NEWARK, Del., Aug. 03, 2016 (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 six months of 2016 was $5.9 million, a $0.1 million increase compared to net income of $5.8 million recorded for the same period of 2015. Diluted net income per share was $0.64 for the six months ended June 30, 2016 and for the six months ended June 30, 2015.
Revenues during the first six months of 2016 were $37.8 million, a 0.9% increase from the $37.5 million in revenues recorded for the same six month period in 2015. Water sales revenues increased $0.2 million, or 0.7%, for the six months ended June 30, 2016 compared to the same period a year ago. The increase primarily was a result of an increase in the Distribution System Improvement Charge, or DSIC, compared to the same period a year ago, which was partially offset by a decrease in overall water consumption.
Excluding depreciation and income taxes, operating expenses increased $0.3 million, or 1.5% to $20.8 million for the six months ended June 30, 2016, compared to $20.5 million for the same period in 2015. Utility operating expenses for the six months ended June 30, 2016 were $17.3 million, a $0.2 million, or 0.9% increase from the same period a year ago, which is mainly the result of increases in employee payroll and benefit costs.
Interest expense decreased 4.4% to $3.3 million for the first six months of 2016 compared to $3.5 million for the same period in 2015. The decrease reflects the reduction in the Series S First Mortgage Bond annual interest rate from 6.73% to 4.45%, effective March 1, 2016 and a decrease in short-term debt outstanding. “Our ability to obtain a reduction in the interest rate on $10.7 million of outstanding debt reflects our on-going efforts to reduce costs while ensuring we continue to provide superior service to our customers,” said Dian C. Taylor, Chair, President and CEO.
Net income for the second quarter of 2016 was $3.0 million, a decrease of $0.2 million, compared to $3.2 million in net income recorded during the second quarter of 2015. Diluted net income per share decreased to $0.33 compared to $0.36 for the second quarter of 2015.
Revenues for the second quarter of 2016 were $19.4 million, a 0.7% decrease from the $19.5 million in revenues recorded for the same three month period of 2015. Water sales revenues decreased $0.2 million, or 0.9%, for the three months ended June 30, 2016 compared to the same period a year ago. This decrease primarily was a result of lower overall water consumption during the three months ended June 30, 2016 compared to the same period a year ago as a result of a much cooler and wetter weather pattern this May compared to May 2015, which was partially offset by an increase in the DSIC. Non-utility operating revenue was $1.2 million for the three months ended June 30, 2016 and 2015, respectively.
“The year to year differences in weather during the spring often impact water use and therefore our water sales revenue. That was certainly the case when comparing May 2016, which was the 5 th wettest May in Delaware history, to May 2015, which was the 10 th driest May in Delaware since recordkeeping began in 1895,” said Taylor.
Excluding depreciation and income taxes, operating expenses increased $0.3 million, or 2.8% to $10.5 million for the second quarter of 2016, compared to $10.2 million for the same period in 2015. Utility operating expenses for the second quarter of 2016 were $8.8 million, a $0.3 million, or 3.1%, increase from the $8.5 million recorded for the same period in 2015, which is mainly the result of increases in legal, payroll and employee benefit costs.
Interest expense decreased 6.2% to $1.6 million for the second quarter of 2016, compared to $1.8 million for the same period in 2015. The decrease reflects the reduction in the Series S First Mortgage Bond annual interest rate from 6.73% to 4.45% effective March 1, 2016 and a decrease in short-term debt outstanding.
The Company invested $12.1 million in infrastructure improvements during the first six months of 2016 to ensure high quality and reliable service to customers. Significant infrastructure improvements included the replacement of aging water mains, enhancement of water treatment facilities, rehabilitation of pumping equipment and the relocation of mains as mandated by state highway projects. “Artesian continues to make the necessary investments in water infrastructure to ensure safe, reliable and quality water service to its customers,” said Taylor.
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.
| 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, | |||||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||||
| Operating Revenues | ||||||||||||||||
| Water sales | $ | 17,323 | $ | 17,474 | $ | 33,760 | $ | 33,512 | ||||||||
| Other utility operating revenue | 912 | 894 | 1,777 | 1,756 | ||||||||||||
| Non-utility operating revenue | 1,160 | 1,168 | 2,308 | 2,229 | ||||||||||||
| 19,395 | 19,536 | 37,845 | 37,497 | |||||||||||||
| Operating Expenses | ||||||||||||||||
| Utility operating expenses | 8,766 | 8,501 | 17,312 | 17,162 | ||||||||||||
| Non-utility operating expenses | 590 | 607 | 1,226 | 1,127 | ||||||||||||
| Depreciation and amortization | 2,249 | 2,192 | 4,564 | 4,401 | ||||||||||||
| State and federal income taxes | 2,023 | 2,191 | 3,975 | 3,955 | ||||||||||||
| Property and other taxes | 1,098 | 1,060 | 2,246 | 2,195 | ||||||||||||
| 14,726 | 14,551 | 29,323 | 28,840 | |||||||||||||
| Operating Income | 4,669 | 4,985 | 8,522 | 8,657 | ||||||||||||
| Allowance for funds used during construction | 49 | 43 | 72 | 67 | ||||||||||||
| Miscellaneous | (31 | ) | (41 | ) | 625 | 549 | ||||||||||
| Income Before Interest Charges | 4,687 | 4,987 | 9,219 | 9,273 | ||||||||||||
| Interest Charges | 1,646 | 1,754 | 3,349 | 3,503 | ||||||||||||
| Net Income | $ | 3,041 | $ | 3,233 | $ | 5,870 | $ | 5,770 | ||||||||
| Weighted Average Common Shares Outstanding - Basic | 9,092 | 8,926 | 9,079 | 8,922 | ||||||||||||
| Net Income per Common Share - Basic | $ | 0.33 | $ | 0.36 | $ | 0.65 | $ | 0.65 | ||||||||
| Weighted Average Common Shares Outstanding - Diluted | 9,155 | 8,960 | 9,142 | 8,958 | ||||||||||||
| Net Income per Common Share - Diluted | $ | 0.33 | $ | 0.36 | $ | 0.64 | $ | 0.64 | ||||||||
| Artesian Resources Corporation | ||||||||||||||||
| Condensed Consolidated Balance Sheet | ||||||||||||||||
| (In thousands) | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| June 30, | December 31, | |||||||||||||||
| 2016 | 2015 | |||||||||||||||
| Assets | ||||||||||||||||
| Utility Plant, at original cost less | ||||||||||||||||
| accumulated depreciation | $ | 413,642 | $ | 405,606 | ||||||||||||
| Current Assets | 13,987 | 14,444 | ||||||||||||||
| Regulatory and Other Assets | 11,329 | 11,576 | ||||||||||||||
| $ | 438,958 | $ | 431,626 | |||||||||||||
| Capitalization and Liabilities | ||||||||||||||||
| Stockholders' Equity | $ | 135,388 | $ | 132,331 | ||||||||||||
| Long Term Debt, Net of Current Portion | 102,992 | 103,647 | ||||||||||||||
| Current Liabilities | 17,452 | 22,403 | ||||||||||||||
| Net Advances for Construction | 8,608 | 8,752 | ||||||||||||||
| Contributions in Aid of Construction | 108,118 | 99,847 | ||||||||||||||
| Other Liabilities | 66,400 | 64,646 | ||||||||||||||
| $ | 438,958 | $ | 431,626 | |||||||||||||
Contact: Nicki Taylor Investor Relations (302) 453-6900 ntaylor@artesianwater.com
