Artesian reports record net income, revenues

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Artesian Resources Corp., Newark, a provider of water, wastewater and related services on the Delmarva Peninsula, announced record revenues and income for 2012.

Revenues were $70.6 million, up 8.4% from $65.1 million in 2011. Net income rose 46.0% to $9.8 million, compared to $6.7 million last year.

“We are pleased with our 2012 performance, as we delivered sound results for our customers and shareholders,” said Dian C. Taylor, CEO. “Our 2012 results were positively impacted by our fiscal discipline and operational management. In addition, we continued our commitment to providing the best possible service to our customers. We launched a free and secure e-Billing service and converted to a monthly billing cycle at the request of our customers. We will remain focused on operating as efficiently as possible in 2013 and will continue our efforts to provide superior service to our customers.”

Water sales revenues were up 10.5%, to $63.6 million in 2012 from $57.6 million in 2011. The increase in water sales primarily came from new customers, water systems in Cecil County, Maryland over the past 15 months, and increased rates in Delaware. Artesian was granted a rate increase in late 2011. The company said it needed to recover more than $40 million in infrastructure improvements made in prior years. The new rates were fully implemented in January 2012.

Non-utility revenue was $3.8 million, down from $4.2 million in 2011, a 9.9% decline The decrease was due to a decline in design and permitting work and a decrease in contract services performed in Maryland following the acquisition of the Cecil County water assets in December 2011.

The decrease was partially offset by the growth in revenues generated by Artesian’s water and wastewater service line protection plan, which continue to be popular with customers. The plans provide coverage for all material and labor required to repair or replace participants’ leaking water service or clogged sewer lines.

Operating expenses, excluding income taxes and depreciation, increased by 2.3% to $40.2 million in 2012.

For the quarter ending Dec. 31, 2012, revenues were $17 million, an increase of 5.5% from $16.1 million for the same period in 2011. Net income for the three months ending Dec. 31, 2012 were flat at $1.7 million.

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