“Revenues of our principal water utility business are typically at base levels in the first quarter of the year, with peak water consumption occurring during the warmer summer months. Earnings in the first quarter this year were significantly impacted by continuing inflationary pressures, increased depreciation expense, increased short-term interest rates, and certain non-recurring expenses. On
Application for Increase in Customer Rates
On
In accordance with applicable
First Quarter Results
Operating revenues increased
- Other utility operating revenue increased approximately
$0.3 million , or 11.6%, primarily due to an increase in wastewater revenue associated with the addition of new customers. - Non-utility operating revenue increased approximately
$0.1 million , or 9.4%, primarily due to an increase in Service Line Protection Plan revenue. - Water sales revenue decreased
$0.1 million , or 0.7%, primarily related to a one-time customer refund to our customers within theTown of Frankford . In accordance with the agreement for the purchase of Frankford’s water assets, rates paid by customers of the acquired system were reset to conform with Artesian Water’s state-wide tariff. The PSC approved the change in the first quarter of 2023, with it retroactively effective toFebruary 2022 , resulting in a$0.1 million reduction in Artesian Water’s revenue in the first quarter of 2023.
Operating expenses, excluding depreciation and income taxes, increased
- Utility operating expenses increased
$0.8 million , or 7.4%. The majority of the utility operating expense increases are related to payroll and benefits costs, repair and maintenance costs, water treatment costs and purchased power costs. Approximately$0.2 million of the increase reflected a one-time adjustment made in the first quarter of 2022 associated with the acquisition ofTidewater Environmental Services, Inc. , a regulated wastewater utility. - The utility operating expense increases were partially offset by a decrease in purchased water expense of
$0.5 million , primarily the result of a new contract, in which the minimum amount of water required to be purchased was reduced by 83.3% inJuly 2022 . - Non-utility operating expenses increased
$0.1 million primarily due to an increase in plumbing services related to Service Line Protection Plan repairs.
Depreciation and amortization expense increased
Federal and state income tax expense decreased
Other income increased
Long-term debt interest increased
Capital Expenditures
As part of Artesian’s ongoing effort to ensure high-quality reliable service to customers,
“Since Artesian’s last comprehensive rate filing nine years ago, we will have invested over
About
Forward Looking Statements
This 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 timing and results of our rate requests, expectations regarding infrastructure investments, strategic initiatives and the continued growth in our business, seasonal patterns of revenue, implementation of temporary rates, 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
Contact:
Investor Relations
(302) 453-6900
ntaylor@artesianwater.com
Condensed Consolidated Statement of Operations | ||||||
(In thousands, except per share amounts) | ||||||
(Unaudited) | ||||||
Three months ended | ||||||
2023 | 2022 | |||||
Operating Revenues | ||||||
Water sales | $ | 18,016 | $ | 18,143 | ||
Other utility operating revenue | 2,817 | 2,525 | ||||
Non-utility revenue | 1,662 | 1,519 | ||||
22,495 | 22,187 | |||||
Operating Expenses | ||||||
Utility operating expenses | 11,272 | 10,495 | ||||
Non-utility operating expenses | 1,085 | 943 | ||||
Depreciation and amortization | 3,224 | 3,085 | ||||
State and federal income taxes | 1,313 | 1,419 | ||||
Property and other taxes | 1,541 | 1,502 | ||||
18,435 | 17,444 | |||||
Operating Income | 4,060 | 4,743 | ||||
Allowance for funds used during construction | 459 | 181 | ||||
Miscellaneous | 1,603 | 1,446 | ||||
Income Before Interest Charges | 6,122 | 6,370 | ||||
Interest Charges | 2,417 | 1,887 | ||||
Net Income | $ | 3,705 | $ | 4,483 | ||
Weighted Average Common Shares Outstanding - Basic | 9,504 | 9,423 | ||||
Net Income per Common Share - Basic | $ | 0.39 | $ | 0.48 | ||
Weighted Average Common Shares Outstanding - Diluted | 9,510 | 9,455 | ||||
Net Income per Common Share - Diluted | $ | 0.39 | $ | 0.47 | ||
Condensed Consolidated Balance Sheet | ||||||
(In thousands) | ||||||
(Unaudited) | ||||||
2023 | 2022 | |||||
Assets | ||||||
Utility Plant, at original cost less | ||||||
accumulated depreciation | $ | 679,714 | $ | 668,031 | ||
Current Assets | 21,609 | 27,804 | ||||
Regulatory and Other Assets | 24,463 | 23,956 | ||||
$ | 725,786 | $ | 719,791 | |||
Capitalization and Liabilities | ||||||
Stockholders' Equity | $ | 189,139 | $ | 187,931 | ||
Long Term Debt, Net of Current Portion | 176,263 | 175,619 | ||||
Current Liabilities | 43,540 | 44,069 | ||||
Advances for Construction | 3,633 | 3,686 | ||||
Contributions in Aid of Construction | 229,159 | 224,308 | ||||
Other Liabilities | 84,052 | 84,178 | ||||
$ | 725,786 | $ | 719,791 |
Source:
2023 GlobeNewswire, Inc., source