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 fourth quarter and year ended December 31,
2022.
- Increased revenues by 8.8% and net income by 7.0% in 2022
- Increased annualized shareholder dividends by 4.0% in 2022
- Paid dividends to shareholders for 121 consecutive quarters and
increased dividends for the 26th consecutive year
- Invested $48.5 million in 2022 in water and wastewater
infrastructure
- Acquired Tidewater Environmental Services, Inc. (TESI) more
than doubling the number of wastewater customers served
- Acquired the Town of Clayton’s water system in Kent County,
Delaware
- Completed the Dagsboro Armory Road Tank in Sussex County adding
one million gallons of additional elevated water storage
- Completed rehabilitation of the booster station and
installation of water mains to serve Phase 1 of the Bainbridge
Development in Cecil County, Maryland
Year End Results
Net income for the year ended December 31, 2022
was $18.0 million, a $1.2 million, or 7.0%, increase compared to
net income recorded for the same period of 2021. Diluted earnings
per share was $1.90 for the year ended December 31, 2022, a 6.3%
increase compared to $1.79 for the same period of 2021.
Revenues totaled $98.9 million for the year
ended December 31, 2022, $8.0 million, or 8.8%, more than revenues
recorded for the same period in 2021.
Other utility
operating revenue, predominately consisting of wastewater revenues,
increased $4.3 million, or 59.9%. This increase is mainly due to an
increase in wastewater revenue associated with residential customer
growth resulting from the acquisition of TESI in January 2022,
industrial wastewater services that started in June 2021, as well
as organic residential customer growth.
Non-utility operating
revenue increased $3.2 million, or 55.3%, primarily due to an
increase in contract service revenue related to a contract for the
design and construction of wastewater infrastructure and an
increase in Service Line Protection Plan (SLPP) revenue.
Water sales revenue
increased $0.5 million, or 0.6%, primarily due to an increase in
fixed fee revenue related to added customer growth.
“We are pleased to have delivered solid
financial results for 2022. Artesian remains focused on operational
excellence, as well as our proactive capital investment strategy,
and continues to see consistent growth in the communities we serve.
Despite a year of supply constraints and increased costs, our
entire management team has championed cost-effective solutions,
allowing us to continue to deliver high quality water and
wastewater services,” said Dian C. Taylor, Chair and CEO.
Operating expenses, excluding depreciation and
income taxes, increased $5.6 million, or 10.9%. Non-utility
operating expenses increased $2.9 million primarily due to an
increase in costs associated with a wastewater infrastructure
design and construction contract and an increase in plumbing
services related to SLPP repairs. Utility operating expenses
increased $2.4 million, or 5.7%, primarily as the result of
increases in overall costs associated with the TESI acquisition. In
addition, there were increases in overall payroll costs, repairs
and maintenance, administrative costs, purchased power and water
treatment costs, some of which are associated with the general rise
in inflation and supply chain challenges. These increases were
partially offset by a decrease in purchased water costs related to
a decrease of water purchased 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 $0.3 million,
or 5.1%, primarily due to an increase in utility plant subject to
taxation.
Depreciation and amortization expense increased
$0.7 million, or 6.2%, primarily due to continued investment in
utility plant providing supply, treatment, storage, and
distribution of water to customers and service to our wastewater
customers.
Allowance for funds used during construction, or
AFUDC, increased $0.5 million as a result of higher long-term
construction activity subject to AFUDC.
Interest charges increased $0.9 million,
primarily related to an increase in long-term debt interest
associated with the Series W First Mortgage Bond issued on April
29, 2022.
Recent Acquisitions
Continuing our efforts to expand integrated
water and wastewater systems throughout the state of Delaware, in
2022, the Company completed one acquisition of a regulated
wastewater company and purchased water operating assets from a
municipality. The acquisition of Middlesex Water Company’s
wholly-owned subsidiary, TESI, in January 2022 added seven
wastewater facilities, 13,000 acres of exclusive franchise
territory, and more than doubled the number of wastewater customers
served in Sussex County, Delaware. The acquisition of the Town of
Clayton’s water system in May 2022 added approximately 4,000
residents through 23 miles of main, and included a treatment
station, three wells and two elevated water storage tanks. The
system is now integrated with Artesian’s existing regional water
system in northern Kent County, Delaware marking a seamless
transition for customers.
"This past year we have seen the culmination of
many long-term strategic initiatives. Upon the completion of the
TESI acquisition, we are now the sole regulated wastewater utility
in Sussex County, Delaware. In addition to doubling our customers
from the acquisition we have also seen a 15% increase in our
wastewater customer base due to organic growth, Artesian is now
positioned as the leader in wastewater solutions for the continued
economic growth of this rapidly developing area,” said Taylor.
Capital Expenditures
As part of Artesian’s on-going effort to ensure
high quality reliable service to customers, $48.5 million was
invested in 2022, compared to $40.8 million in 2021, in water and
wastewater infrastructure projects including installation of
transmission and distribution facilities, replacement of aging
mains, installation of new mains, rehabilitation of treatment
facilities, construction of new water storage tanks and treatment
facilities, and redevelopment of wells and pumping equipment.
“Artesian has maintained a proactive approach to
our infrastructure investment strategy throughout 2022. Our
long-term initiative to increase self-sufficiency and reduce
purchased water expenses was successfully completed this year as a
result of our investments in increased water supply and booster
capabilities,” said Nicholle R. Taylor, President of Artesian Water
Company. “Additionally, Artesian is currently constructing a new
one-million-gallon elevated water storage tank in southern New
Castle County, Delaware to meet the current and future growth needs
arising from increased industrial and residential demands.”
Fourth Quarter Results
Net income for the quarter ended December 31,
2022 was $2.3 million, a $0.7 million, or 24.0%, decrease compared
to net income recorded for the same period of 2021. Diluted
earnings per share was $0.24 for the quarter ended December 31,
2022, a 24.5% decrease compared to $0.32 for the same period of
2021.
Revenues totaled $25.1 million, an increase of
$2.5 million, or 11.3%, more than revenues recorded for the same
period in 2021.
Other utility
operating revenue increased $0.8 million, or 35.7%, primarily due
to an increase in wastewater revenue associated with residential
customer growth resulting from the acquisition of TESI in January
2022 and organic residential customer growth.
Non-utility operating
revenue increased $1.6 million, primarily due to an increase in
contract service revenue related to a contract for the design and
construction of wastewater infrastructure and an increase in SLPP
revenue.
Water sales revenue
increased $0.1 million, or 0.6%, primarily due to an increase in
fixed fee revenue related to added customer growth. Artesian Water
provided notice to the Delaware Public Service Commission of its
intent to file a request in the second quarter of 2023 to implement
new rates to support Artesian Water’s ongoing capital improvement
program and to cover increased costs of operations.
Operating expenses, excluding depreciation and
income taxes, increased $3.0 million, or 21.8%. Utility operating
expenses increased $1.7 million, or 15.0%, and non-utility
operating expenses increased $1.2 million. The increase in utility
operating expenses was primarily the result of $0.8 million in
current period expenses of TESI, which was acquired in January
2022, the timing of employee bonuses, and an increase in
administrative costs. In addition, repair and maintenance costs,
purchased power and water treatment costs increased, mostly
associated with the rise in general inflation and supply chain
challenges. These increases were partially offset by a decrease in
purchased water costs related to a decrease in the quantity of
water purchased under a new contract, effective January 2022, in
which the minimum amount of water required to be purchased was
reduced. The increase in non-utility operating expenses was
primarily due to an increase in costs associated with a wastewater
infrastructure design and construction contract and an increase in
plumbing services related to SLPP repairs.
AFUDC increased $0.3 million as a result of
higher long-term construction activity subject to AFUDC.
Interest charges increased $0.4 million,
primarily related to an increase in long-term debt interest
associated with the Series W First Mortgage Bond issued on April
29, 2022.
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 8.6 billion gallons of water
per year through 1,442 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, acquisitions, expectations
regarding infrastructure investments, recovery of investments and
increased costs in rates charged to customers, and the continued
growth in our business 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) |
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Three months ended |
|
Twelve months ended |
|
December 31, |
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December 31, |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
Operating Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Water sales |
$ |
18,751 |
|
|
$ |
18,634 |
|
|
$ |
78,318 |
|
|
$ |
77,821 |
|
Other utility operating revenue |
|
3,226 |
|
|
|
2,377 |
|
|
|
11,506 |
|
|
|
7,195 |
|
Non-utility operating revenue |
|
3,140 |
|
|
|
1,564 |
|
|
|
9,073 |
|
|
|
5,843 |
|
|
|
25,117 |
|
|
|
22,575 |
|
|
|
98,897 |
|
|
|
90,859 |
|
|
|
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|
Operating Expenses |
|
|
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|
|
|
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|
|
|
|
|
Utility operating expenses |
|
12,778 |
|
|
|
11,108 |
|
|
|
43,772 |
|
|
|
41,414 |
|
Non-utility operating expenses |
|
2,432 |
|
|
|
1,186 |
|
|
|
6,850 |
|
|
|
3,942 |
|
Depreciation and amortization |
|
3,270 |
|
|
|
2,927 |
|
|
|
12,620 |
|
|
|
11,885 |
|
State and federal income taxes |
|
900 |
|
|
|
1,060 |
|
|
|
5,878 |
|
|
|
5,737 |
|
Property and other taxes |
|
1,499 |
|
|
|
1,426 |
|
|
|
5,871 |
|
|
|
5,587 |
|
|
|
20,879 |
|
|
|
17,707 |
|
|
|
74,991 |
|
|
|
68,565 |
|
|
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|
Operating Income |
|
4,238 |
|
|
|
4,868 |
|
|
|
23,906 |
|
|
|
22,294 |
|
|
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Allowance for funds used during construction |
|
431 |
|
|
|
95 |
|
|
|
1,329 |
|
|
|
823 |
|
Miscellaneous |
|
(47 |
) |
|
|
4 |
|
|
|
1,265 |
|
|
|
1,302 |
|
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Income Before Interest Charges |
|
4,622 |
|
|
|
4,967 |
|
|
|
26,500 |
|
|
|
24,419 |
|
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Interest Charges |
|
2,297 |
|
|
|
1,907 |
|
|
|
8,502 |
|
|
|
7,592 |
|
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Net Income |
$ |
2,325 |
|
|
$ |
3,060 |
|
|
$ |
17,998 |
|
|
$ |
16,827 |
|
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|
Weighted Average Common Shares Outstanding - Basic |
|
9,497 |
|
|
|
9,410 |
|
|
|
9,462 |
|
|
|
9,394 |
|
Net Income per Common Share - Basic |
$ |
0.24 |
|
|
$ |
0.33 |
|
|
$ |
1.90 |
|
|
$ |
1.79 |
|
|
|
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|
Weighted Average Common Shares Outstanding - Diluted |
|
9,505 |
|
|
|
9,441 |
|
|
|
9,481 |
|
|
|
9,426 |
|
Net Income per Common Share - Diluted |
$ |
0.24 |
|
|
$ |
0.32 |
|
|
$ |
1.90 |
|
|
$ |
1.79 |
|
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Artesian Resources Corporation |
Condensed Consolidated Balance Sheets |
(In thousands) |
(Unaudited) |
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|
December 31, |
|
December 31, |
|
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2022 |
|
2021 |
|
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Assets |
|
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Utility Plant, at original cost less |
|
|
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|
|
|
|
|
|
|
|
|
accumulated depreciation |
$ |
668,031 |
|
|
$ |
590,431 |
|
|
|
|
|
|
|
|
|
Current Assets |
|
27,804 |
|
|
|
18,664 |
|
|
|
|
|
|
|
|
|
Regulatory and Other Assets |
|
23,956 |
|
|
|
15,620 |
|
|
|
|
|
|
|
|
|
|
$ |
719,791 |
|
|
$ |
624,715 |
|
|
|
|
|
|
|
|
|
|
|
|
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Capitalization and Liabilities |
|
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Stockholders' Equity |
$ |
187,931 |
|
|
$ |
178,010 |
|
|
|
|
|
|
|
|
|
Long Term Debt, Net of Current Portion |
|
175,619 |
|
|
|
143,259 |
|
|
|
|
|
|
|
|
|
Current Liabilities |
|
44,069 |
|
|
|
47,206 |
|
|
|
|
|
|
|
|
|
Net Advances for Construction |
|
3,686 |
|
|
|
4,295 |
|
|
|
|
|
|
|
|
|
Contributions in Aid of Construction |
|
224,308 |
|
|
|
176,656 |
|
|
|
|
|
|
|
|
|
Other Liabilities |
|
84,178 |
|
|
|
75,289 |
|
|
|
|
|
|
|
|
|
|
$ |
719,791 |
|
|
$ |
624,715 |
|
|
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Artesian Resources (NASDAQ:ARTNA)
Graphique Historique de l'Action
De Avr 2024 à Mai 2024
Artesian Resources (NASDAQ:ARTNA)
Graphique Historique de l'Action
De Mai 2023 à Mai 2024