UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported) April 29, 2003 |
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Commission file number 0-18516 |
ARTESIAN RESOURCES CORPORATION |
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(exact name of registrant as specified in its charter) |
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Delaware | 51-0002090 | |
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(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification Number) | |
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664 Churchmans Road, Newark, Delaware 19702 | ||
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Address of principal executive officers | ||
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(302) 453 - 6900 | ||
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Registrant's telephone number, including area code | ||
ARTESIAN RESOURCES CORPORATION
April 29, 2003 - Artesian Resources Corporation (Nasdaq-ARTNA) today announced revenues for the first quarter of 2003 were $8.5 million, up 10.3% from $7.7 million in the comparable period in 2002. Basic and diluted earnings per share were $0.27 for the first quarter of 2003, as compared to $0.26 and $0.25, respectively, for the period ended March 31, 2002. The current quarter reflects an approximate 25% increase in average shares outstanding from the first quarter of 2002 as a result of the issuance of 500,000 shares of Class A Common Stock in the second quarter of 2002. Net income available to common stockholders was $708,000, up 32.1% from $536,000 for the prior year.
The increases in revenues and income are primarily attributable to a 2.8% increase in the number of customers served, as compared to the same quarter last year, and a 9.7% increase in rates. The increase in rates provided for recovery of $22.8 million of investments in utility plant such as sources of supply, treatment, storage and mains.
In addition, our non-regulated wastewater operations contributed $103,000 to revenues in the first quarter of 2003, compared to $16,000 in the same period a year ago, and $32,000 in net income in the current quarter compared to $2,000 in the same period a year ago.
On January 31, 2003, we refinanced a $10 million First Mortgage Bond with an interest rate of 8.03% at a new rate of 6.58%. On February 21, 2003, we redeemed all 10,868 shares of our 7% Prior Preferred Stock. We incurred $54,000 in costs associated with these steps in the first quarter, but expect future savings as a result of lower interest rates.
Dian C. Taylor, President, CEO and Chair of the Board said, "We remain diligent in our efforts to reduce expenses, such as through our recent refinancing of the First Mortgage Bond and redemption of 7% Preferred Stock, while continuing to assure the provision of superior service to our customers. We continue to focus on our core water and wastewater businesses and the potential opportunities for consistent and sustainable growth they offer."
Artesian Resources Corporation, through our wholly owned subsidiary Artesian Water Company, is the oldest and largest investor owned regulated public water utility in the State of Delaware and has been providing water within the state since 1905. We distribute and sell water to residential, commercial, industrial, governmental, municipal and utility customers throughout the state. As of March 31, 2003, we had approximately 68,300 metered customers, providing water service to about 226,000 residents, approximately 27% of Delaware's total population.
Artesian Resources Corporation | ||
Three months ended March 31, 2003 | Three months ended March 31, 2002 | |
Operating Revenues | $ 8,538 | $ 7,744 |
Operating Expenses | ||
Operations and Maintenance Expenses | 4,830 | 4,602 |
Depreciation and Amortization | 847 | 812 |
State & Federal Taxes | 499 | 373 |
Property and Other Taxes | 497 | 445 |
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6,673 | 6,232 | |
Operating Income | 1,865 | 1,512 |
Miscellaneous Income (deduction) | 62 | 152 |
Total Income | 1,927 | 1,664 |
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Interest Charges | 1,155 | 1,116 |
Net Income | 772 | 548 |
Preferred Dividend Requirement & Redemption Premium | 64 | 12 |
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Earnings Applicable to Common Stock | $ 708 | $ 536 |
Basic Average Shares Outstanding | 2,577,381 | 2,050,807 |
Primary Earnings Per Share | $ 0.27 | $ 0.26 |
Fully Diluted Shares Outstanding | 2,635,214 | 2,112,134 |
Fully Diluted Earnings Per Share | $ 0.27 | $ 0.25 |
Artesian Resources Corporation | ||
March 31, 2003 | December 31, 2002 | |
ASSETS | ||
Utility Plant, at original cost less accumulated depreciation | $ 170,622 | $ 167,338 |
Current Assets | $ 12,092 | $ 11,920 |
Regulatory and Other Assets | $ 3,943 | $ 3,814 |
$ 186,657 | $ 183,072 | |
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CAPITALIZATION AND LIABILITIES | ||
Stockholders' Equity | $ 51,194 | $ 51,176 |
Long Term Debt, Net of Current Portion | $ 63,953 | $ 64,070 |
Current Liabilities | $ 12,242 | $ 9,531 |
Advance for Construction | $ 19,138 | $ 19,457 |
Contributions in Aid of Construction | $ 29,405 | $ 28,643 |
Other Liabilities | $ 10,725 | $ 10,195 |
$ 186,657 | $ 183,072 | |
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
ARTESIAN RESOURCES CORPORATION
04/30/03 Dian C. Taylor /s/
Dian C. Taylor
President, CEO, and Chair of the Board
Artesian Resources Corporation and Subsidiaries
04/30/03 David B. Spacht /s/
David B. Spacht
Vice President, Chief Financial Officer, and Treasurer
Artesian Resources Corporation and Subsidiaries
Form 8K
