Artesian Resources Corporation Reports Third Quarter Results

NEWARK, Del., Nov. 5, 2010 /PRNewswire-FirstCall/ -- Artesian Resources Corporation, (Nasdaq: ARTNA), a leading provider of water, wastewater and engineering services on the Delmarva Peninsula, today announced that revenues for the third quarter of 2010 were $18.0 million, an 11.1% increase from the $16.2 million in revenues for the same three-month period of 2009.

Net income for the quarter grew to $2.9 million, a 37.2% increase from the $2.1 million in net income for the third quarter of 2009. Basic and diluted net income per share increased 35.7% to $0.38 and $0.38, respectively, from the same period of 2009.

"We had a very strong quarter driven by an increase in water sales, which returned to a more normal level than in 2009 when record rains reduced water usage in our service areas," said Artesian President and CEO Dian C. Taylor.  "We also received solid revenue contributions from our non-utility businesses, such as our water and sewer service line protections plans, which are very popular with our customers."

Water sales, which accounted for 89.6% of revenues, increased to $16.1 million, an 11.6% increase over the $14.4 million in the third quarter of 2009. Through the first nine months of the year, water sales have increased by 5.6%.

Non-utility revenues held flat at $1.2 million for the third quarter, but have grown by $775,000 or 23.6% through the first nine months of 2010. The increase is primarily attributable to the continued popularity of the service line protection plans, additional contract revenue for design and permitting services for a project in Middletown, Delaware, and for increased contract services for municipalities in Maryland.

Operating expenses for the third quarter increased 4.3% to $9.6 million for the three months ended September 30, compared to $9.2 million for the same period in 2009. Utility operating expenses grew by 2.9%, primarily due to payroll and employee benefits cost increases, while non-utility operating expenses grew by $127,000, primarily as a result of increased project activity by Artesian Utility as compared to the same period in 2009.  Depreciation expense grew by $97,000, primarily as a result of Artesian's continuing investment in its service infrastructure to ensure reliable supply, treatment, storage and distribution of water.

"We are committed to consistently growing our revenues and profits while providing superior service to our customers," Taylor said. "Efficiently managing our company and delivering great value to investors enables us to attract the capital we need to ensure that our water infrastructure remains safe and reliable for our hundreds of thousands of customers."

About Artesian Resources

Artesian Resources Corporation operates as the holding company of eight wholly-owned subsidiaries offering water, wastewater and engineering services on the Delmarva Peninsula.  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. Artesian Water distributes and sells water to residential, commercial, industrial, governmental, municipal and utility customers. Other subsidiaries include Artesian Water Maryland, Inc., Artesian Water Pennsylvania, Inc., Artesian Wastewater Management, Inc., Artesian Wastewater Maryland, Inc., Artesian Utility Development, Inc., Artesian Consulting Engineers, Inc. and Artesian Development Company.

SOURCE Artesian Resources Corporation