New book by Larry Connors Click here Improve your trading - See how
Basic and diluted net income per common share for the six months ended June 30, 2008 were $0.35 and $0.34 as compared to $0.39 and $0.38 for the same period last year. Net income was $2.5 million, compared to $2.4 million last year, a 4.2% increase.
Net income for both the quarter and six month periods was favorably impacted by an increase in other income as a result of a greater allowance for funds used during construction in the current year periods and a decrease in interest expense compared to the same periods a year ago.
In June 2007, the Company successfully completed the issuance of 1,000,000 shares of Class A Stock through a secondary public offering. In July 2007, an additional 129,000 shares were issued under the terms of an over-allotment option. Fully diluted weighted average common shares outstanding for the six month period ended June 30, 2008 were up 15.3% compared to the same period in 2007.
Revenues for the second quarter of 2008 were $13.9 million, up 7. 7% from $12.9 million in 2007, and for the first half of 2008 were $26.2 million, up 6.8% from $24.5 million in the corresponding period in 2007. Water sales revenues increased $569,000, or 4.8%, compared to the same quarter last year and $951,000, or 4.2%, compared to the first six months of 2007. The increase in water sales is primarily the result of an increase in rates, effective July 2007, and a 2% increase in the number of customers served, offset by a decrease in water usage compared to last year. As a result of more contract work performed by Artesian Utility Development, Inc., and increased participation in our Service Line Protection Program, Non-Utility operating revenues increased $615,000 for the first half of 2008.
Artesian Chair and CEO Dian C. Taylor said, "Our contract wastewater services continue to be an integral piece of our growth strategy. We recently entered into contracts to provide additional wastewater treatment capacity for Georgetown and Middletown. Our ongoing efforts to build mutually productive relationships with local municipalities have enabled us to expand our water and wastewater services to new areas and more fully utilize existing and proposed infrastructure."
Operating expenses, excluding depreciation and income taxes, increased 10.5%, to $8.7 million for the quarter compared to $7.8 million for 2007, and 11.6%, to $17.0 million for the six months period compared to $15.2 million in 2007. The components of the increase for both periods included increases in utility operating expenses, primarily related to increases in purchased water expense, purchased power costs, payroll and employee benefit premiums and increases in non-utility operating expenses as a result of additional contract work.
As permitted by law, on June 21, 2008, we placed temporary rates into effect, designed to generate an increase in annual operating revenue of approximately 5.0%, or $2.5 million on an annualized basis, until new rates are approved by the Public Service Commission. Our overall request is for a 27.3% increase in rates, or approximately $13.6 million, on an annualized basis.
Artesian Chair and CEO Dian C. Taylor said, "Although the wet, cool weather in May suppressed water sales for the quarter, water sales revenues should benefit later in the year from the warmer weather in July and the implementation of the interim rate increase which became effective at the end of June."
About Artesian
Artesian Resources Corporation operates as the holding company of eight wholly-owned subsidiaries offering water and wastewater services. 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. Other subsidiaries include Artesian Water Maryland, Inc., Artesian Wastewater Maryland, Inc., Artesian Water Pennsylvania, Inc., Artesian Wastewater Management, Inc., Artesian Utility Development, Inc., Artesian Consulting Engineers, Inc. and Artesian Development Company.
Artesian Resources Corporation Condensed Consolidated Statement of Operations (In thousands, except share and per share data) (Unaudited) Three Three Six Six month months months months ended ended ended ended June 30, June 30, June 30, June 30, 2008 2007 2008 2007 Operating Revenues Utility Operating Revenue 12,514 11,945 23,603 22,652 Other - Utility Operating Revenue 552 470 992 902 Non-Utility Operating Revenue 837 498 1,578 963 $13,903 $12,913 $26,173 $24,517 Operating Expenses Utility Operating Expenses 7,280 6,759 14,253 13,244 Non-Utility Operating Expenses 582 387 1,144 597 Depreciation and Amortization 1,306 1,291 2,640 2,503 State & Federal Taxes 1,020 864 1,691 1,605 Property and Other Taxes 798 693 1,591 1,381 10,986 9,994 21,319 19,330 Operating Income 2,917 2,919 4,854 5,187 Allowance for funds used during construction 212 75 329 135 Other Income, net (32) (42) 432 421 Income Before Interest Charges 3,097 2,952 5,615 5,743 Interest Charges 1,568 1,681 3,087 3,316 Net Income Applicable to Common Stock $1,529 $1,271 $2,528 $2,427 Weighted Average Common Shares Outstanding - Basic 7,334 6,468 7,324 6,289 Net Income per Common Share - Basic $0.21 $0.20 $0.35 $0.39 Weighted Average Common Shares Outstanding - Diluted 7,445 6,623 7,438 6,449 Net Income per Common Share - Diluted $0.21 $0.19 $0.34 $0.38 Artesian Resources Corporation Condensed Consolidated Balance Sheet (In thousands) (Unaudited) June 30, 2008 December 31, 2007 ASSETS Utility Plant, at original cost less accumulated depreciation $296,249 $274,140 Current Assets 11,854 14,324 Regulatory and Other Assets 6,825 6,125 $314,928 $294,589 CAPITALIZATION AND LIABILITIES Stockholders' Equity $84,418 $85,132 Long Term Debt, Net of Current Portion 91,584 91,757 Current Liabilities 24,367 11,844 Advances for Construction 22,770 23,840 Contributions in Aid of Construction 62,997 55,238 Other Liabilities 28,792 26,778 $314,928 $294,589
SOURCE Artesian Resources Corporation
http://www.artesianwater.com
More News:
Market Updates |
Stock Alerts |
All Trading News |
Stock Index
About TradingMarkets | Contact | Advertise | Careers | Link to Us | Site Map | Help | Terms & Conditions | Privacy Policy | Return Policy | Testimonials | Feedback
