UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 1996
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from To
Commission file number 0-18516
Artesian Resources Corporation
(Exact name of registrant as specified in its charter)
Delaware 51-0002090
State or other jurisdiction of (I.R.S. Employer Identification No.)
Incorporation or organization
664 Churchmans Road, Newark, Delaware 19702
(Address of principal executive offices) (Zip Code)
Registrant s telephone number, including area code (302) 453-6900
Former name, former address, and former fiscal year,
if changed since last report No change
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days. X Yes No
As of July 31 , 1996, 1,239,929 shares and 501,180 shares of Class A
Non-Voting Common stock and Class B Voting Common stock, respectively, were
outstanding.
Page 1 of 12
ARTESIAN RESOURCES CORPORATION
INDEX TO FORM 10-Q
Part I - Financial Information: Page(s)
Item 1 - Financial Statements
Consolidated Balance Sheet -
June 30, 1996 and December 31, 1995 3
Consolidated Statement of Income for
the quarters ended June 30, 1996 and 1995 4
Consolidated Statement of Income for
the six months ended June 30, 1996 and 1995 5
Consolidated Statement of Retained Earnings for
the six months ended June 30, 1996 and 1995 5
Consolidated Statement of Cash Flows for the
six months ended June 30, 1996 and 1995 6
Notes to the Consolidated Financial Statements 7-8
Item 2 - Management s Discussion and Analysis of
Results of Operations and Financial Condition 9
Part II - Other Information:
Item 4 - Submission of Matters to a Vote of Security Holders 10-11
Item 5 - Other Information 11
Item 6 - Exhibits and Reports on Form 8-K 11
Exhibit 11 - Computation of Earnings per Common Share 11
Signatures 12
Part I - Financial Information
Item I - Financial Statements
ARTESIAN RESOURCES CORPORATION
CONSOLIDATED BALANCE SHEET
Unaudited June 30, December31,
1996 1995
ASSETS
Utility plant, at original cost less accumulated depreciation
$84,603,361 $83,160,422
CURRENT ASSETS
Cash and cash equivalents 86,111 149,704
Accounts receivable 1,901,546 2,133,217
Unbilled operating revenues 1,678,000 1,332,000
Materials and supplies - FIFO 640,156 606,674
Prepaid property taxes 462,451
Prepaid expenses and other 337,895 236,860
4,643,708 4,920,906
OTHER ASSETS
Non-utility property (less accumulated depreciation
1996-$1,380,271; 1995-$2,108,835) 986,991 2,952,676
Deferred income taxes 1,649,928 1,764,231
Other deferred assets 1,216,047 1,328,218
3,852,966 6,045,125
REGULATORY ASSETS 2,643,904 2,714,713
$95,743,939 $96,841,166
LIABILITIES AND CAPITAL
CAPITALIZATION
Common stock $ 1,739,685 $1,037,494
Additional paid-in capital 17,057,379 8,041,183
Retained earnings 6,637,424 6,317,222
Total common stockholders equity 25,434,488 15,395,899
Preferred stock-mandatorily redeemable 825,000 972,500
Preferred stock 271,700 271,700
Total preferred stock 1,096,700 1,244,200
Long-term debt, net of current portion 17,382,430 17,558,300
43,913,618 34,198,399
CURRENT LIABILITIES
Notes payable 1,525,000 9,225,000
Current portion of long-term debt 5,338,725 7,345,154
Dividends payable 25,206
Accounts payable 1,736,241 2,735,119
Overdraft payable 430,221 669,023
State and federal income taxes 219,844 139,702
Deferred income taxes 165,946 166,241
Interest accrued 623,550 667,157
Customer deposits 343,987 321,811
Other 578,597 577,298
10,987,317 21,846,505
DEFERRED CREDITS AND OTHER LIABILITIES
Net advances for construction 21,155,948 21,492,568
Postretirement benefit obligation 1,760,962 1,772,960
Deferred investment tax credits 1,041,804 1,060,636
23,958,714 24,326,164
NET CONTRIBUTIONS IN AID OF CONSTRUCTION 16,884,290 16,470,098
$95,743,939 $96,841,166
ARTESIAN RESOURCES CORPORATION
CONSOLIDATED STATEMENT OF INCOME
Unaudited
For the Quarter
Ended June 30,
1996 1995
OPERATING REVENUES
Water sales $5,213,783 $5,215,024
Other utility operating revenue 50,781 49,579
Non-utility operating revenue (Note 3) 478,304
5,264,564 5,742,907
OPERATING EXPENSES
Utility operating expenses 2,898,976 2,965,163
Non-utility operating expenses (Note 3) (2,856) 401,140
Related party expenses (Note 4) 61,360 61,021
Depreciation 535,129 566,745
Income taxes 322,532 267,732
Taxes other than income 307,612 321,642
4,122,753 4,583,443
OPERATING INCOME 1,141,811 1,159,464
ALLOWANCE FOR FUNDS USED DURING CONSTRUCTION 36,992 31,778
OTHER EXPENSE (30,893) (127,299)
INCOME BEFORE INTEREST CHARGES 1,147,910 1,063,943
INTEREST CHARGES
Long-term debt 520,829 563,352
Short-term debt 138,239 96,145
Amortization of debt expense 7,566 6,607
Other 5,300 4,476
671,934 670,580
NET INCOME 475,976 393,363
DIVIDENDS ON PREFERRED STOCK 25,206 28,879
NET INCOME APPLICABLE TO COMMON STOCK $450,770 $ 364,484
PER SHARE OF COMMON STOCK:
Net income $ 0.30 $ 0.35
Cash dividends $ 0.23 $ 0.15
ARTESIAN RESOURCES CORPORATION
CONSOLIDATED STATEMENT OF INCOME
Unaudited
For the Six Months
Ended June 30,
1996 1995
OPERATING REVENUES
Water sales $10,145,376 $9,856,495
Other utility operating revenue 109,098 94,482
Non-utility operating revenue (Note 3) 79,949 941,889
10,334,423 10,892,866
OPERATING EXPENSES
Utility operating expenses 5,639,241 5,745,912
Non-utility operating expenses (Note 3) 50,472 767,524
Related party expenses (Note 4) 122,720 122,042
Depreciation 1,063,139 1,103,147
Income taxes 575,798 443,932
Taxes other than income 638,446 660,389
8,089,816 8,842,946
OPERATING INCOME 2,244,607 2,049,920
ALLOWANCE FOR FUNDS USED DURING CONSTRUCTION 72,220 62,116
OTHER EXPENSE (61,209) (152,264)
INCOME BEFORE INTEREST CHARGES 2,255,618 1,959,772
INTEREST CHARGES
Long-term debt 1,060,124 1,127,934
Short-term debt 310,133 154,298
Amortization of debt expense 14,137 13,214
Other 12,172 8,387
1,396,566 1,303,833
NET INCOME 859,052 655,939
DIVIDENDS ON PREFERRED STOCK 54,085 61,431
NET INCOME APPLICABLE TO COMMON STOCK $804,967 $ 594,508
PER SHARE OF COMMON STOCK:
Net income $ 0.63 $ 0.58
Cash dividends $ 0.44 $ 0.30
CONSOLIDATED STATEMENT OF RETAINED EARNINGS
Unaudited
For the Six Months
Ended June 30,
1996 1995
BALANCE, beginning of period $6,317,222 $5,877,661
NET INCOME 859,052 655,939
7,176,274 6,533,600
DIVIDENDS 538,850 397,538
BALANCE, end of period $6,637,424 $6,136,062
ARTESIAN RESOURCES CORPORATION
CONSOLIDATED STATEMENT OF CASH FLOWS
Unaudited
For the Six Months
Ended June 30,
1996 1995
CASH FLOWS FROM OPERATING ACTIVITIES
NET INCOME $ 859,052 $ 655,939
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization 1,075,070 1,103,147
Allowance for funds used during construction (72,220) (62,116)
Write-down on rental office building (4,862)
CHANGES IN ASSETS AND LIABILITIES:
Accounts receivable 231,671 137,042
Unbilled operating revenue (346,000) (464,000)
Materials and supplies (33,482) (1,026)
State and federal income taxes payable 80,426 (324,727)
Prepaid property taxes 462,451 430,245
Deferred income taxes, net 95,176 474,895
Deferred debits 111,172 6,813
Prepaid expenses and other (101,035) (257,845)
Regulatory assets 70,809
Postretirement benefit obligation (11,998)
Accounts payable (1,024,086) (1,206,149)
Interest accrued and customer deposits (43,607) (28,293)
Other, net 23,475 173,573
NET CASH PROVIDED BY OPERATING ACTIVITIES 1,372,012 637,498
CASH FLOWS USED IN INVESTING ACTIVITIES
Capital expenditures (2,723,147) (4,942,053)
Proceeds from sale of assets 2,094,225 782
NET CASH USED IN INVESTING ACTIVITIES (628,922) (4,941,271)
CASH FLOWS FROM FINANCING ACTIVITIES
Net (repayments) borrowings under line
of credit agreement (7,700,000) 3,972,000
Net advances and contributions
in aid of construction 257,205 704,627
Proceeds from long-term debt 146,206
Repayment on term note (2,005,540)
Proceeds from issuance of Common Stock 9,333,944
Proceeds from common stock dividends reinvested
and stock options exercised 384,443 187,239
Dividends (513,644) (368,659)
Overdraft payable (238,802) 17,443
Principal payments under capital
lease obligations (165,676) (141,172)
Principal payments under
long-term debt obligations (11,113) (36,666)
Retirement of preferred stock (147,500) (147,500)
NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES(806,683) 4,333,518
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS(63,593) 29,745
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 149,704 229,673
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 86,111 $ 259,418
Supplemental Disclosures of Cash Flow Information:
Interest paid $1,446,778 $1,285,144
Income taxes paid $ 418,037 $ 275,000
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Note 1 - General
The unaudited financial statements of Artesian Resources Corporation and
its wholly-owned subsidiaries ( the Company or Artesian Resources ),
including its principal operating company, Artesian Water Company, Inc.
(Artesian Water), presented herein have been prepared in accordance with the
instructions to Form 10-Q and do not include all of the information and note
disclosures required by generally accepted accounting principles. These
statements should be read in conjunction with the financial statements and
notes thereto for the year ended December 31, 1995 included in the Company s
Annual Report on Form 10-K. The accompanying financial statements have not
been examined by independent accountants in accordance with generally accepted
auditing standards, but in the opinion of management such financial statements
include all adjustments, consisting only of normal recurring adjustments,
necessary to fairly summarize the Company s financial position and results
of operations. The results of operations for the quarter and for the six
months ended June 30, 1996 may not be indicative of the results that may be
expected for the year ending December 31, 1996.
Note 2 - Regulatory Assets
Certain expenses, which are recoverable through rates as permitted by
the State of Delaware Public Service Commission ( PSC ), are deferred and
amortized during future periods using various methods. Expenses related to
rate proceedings are amortized on a straight-line basis over three years. The
post retirement benefit obligation, which is being amortized over twenty years
is adjusted for the difference between the net periodic post retirement benefit
costs and the cash payments. The deferred income taxes will be amortized over
future years as the tax effects of temporary differences previously flowed
through to the customer reverse. Regulatory assets, net of amortization,
comprise:
June 30, 1996 December 31, 1995
Postretirement benefit obligation $1,760,962 $1,772,960
Deferred income taxes recoverable
in future rates 732,719 740,267
Expense of rate proceedings 150,223 201,486
$2,643,904 $2,714,713
Note 3 - Non-utility Operating Revenue and Expenses
Non-utility operating revenue consists of environmental testing revenue
received by Artesian Laboratories, Inc. ( Artesian Laboratories ) and rental
income received by Artesian Development, Corporation ( Artesian Development )
as follows:
For the Quarter Ended For the Six Months
June 30, Ended June 30,
1996 1995 1996 1995
Artesian Laboratories $ 0 $410,267 $ 0 $796,150
Artesian Development 0 68,037 79,949 145,739
Total $ 0 $478,304 $79,949 $941,889
Non-utility operating expenses are as follows:
Artesian Laboratories $ 0 $342,043 $ 0 $662,382
Artesian Development (2,856) 52,723 50,472 98,768
Artesian Resources Corp. 0 6,374 0 6,374
Total $(2,856) $401,140 $50,472 $767,524
As described in notes 5 and 6, Artesian Development s rental office building
was sold and the Board of Directors of Artesian Resources authorized the
disposal of substantially all of the net assets of Artesian Laboratories.
Note 4 - Related Party Transactions
The office building and shop complex utilized by Artesian Water are
leased at an aggregate annual rental of $204,052 from a partnership, White
Clay Realty, in which certain of the Company s officers and directors are
partners. The lease expires in 1997, with provisions for renewals for three
five year periods thereafter. Management believes that the payments made to
White Clay Realty for the lease of its office building are generally comparable
to what Artesian Water would have to pay to unaffiliated parties for similar
facilities.
Artesian Water leases certain parcels of land for water production wells
from Glendale Enterprises Limited, a company wholly owned by Ellis D. Taylor,
Director and Chairman Emeritus of Artesian Resources, at an annual rental of
approximately $40,000. The initial term of the lease was for the ten years
ended September 30, 1995, and thereafter, renewal was automatic from year to
year unless 60 days written notice is given by either party before the end of
the year s lease. The annual rental is adjusted each year by the consumer
price index as of June 30 of the preceding year. Artesian Water has the right
to terminate this lease by giving 60 days written notice should the water
supply be exhausted or other conditions beyond the control of Artesian Water
materially and adversely affect its interest in the lease.
Expenses associated with related party transactions are as follows:
For the Quarter Ended For the Six Months
June 31, Ended June 30,
1996 1995 1996 1995
White Clay Realty $51,013 $51,013 $102,026 $102,026
Glendale Enterprises 10,347 10,008 20,694 20,016
$61,360 $61,021 $122,720 $122,042
Note 5 - Disposal of Non-Utility Assets
In March 1996, the Company completed the sale , to an unrelated third
party, of Artesian Development s rental office building and 4.27 acres of land
resulting in a loss of $780,000. The loss, which was recognized in the fourth
quarter of 1995, reflects the difference between the net book value and the
selling price, and also includes $176,000 in expenses associated with
completing the sale. The proceeds from the sale were used to repay the
mortgage on the property and related closing costs.
Note 6 - Disposal of Non-Utility Business
In December 1995, the Board of Directors of Artesian Resources authorized
the disposal of substantially all of the net assets of Artesian Laboratories,
resulting in an estimated pre-tax loss of $128,000 recorded as an operating
expense in 1995. The loss reflects the difference between the projected sales
price and the net book value of substantially all the assets and liabilities of
the business, and also includes estimated operating losses of $137,000 through
the anticipated disposal date and estimated additional expenses associated
with completing the sale.
Note 7 - Issuance of Class A Non-Voting Common Stock
On May 24, 1996, Artesian Resources Corporation issued 675,000 shares of
Class A Non-Voting Common Stock at $15.00 per share. The net proceeds from
the issuance of approximately $9,300,000 were used to reduce short-term debt
incurred to finance investment in utility plant.
ITEM 2 ARTESIAN RESOURCES CORPORATION MANAGEMENT S DISCUSSION AND
ANALYSIS FOR THE QUARTER AND SIX MONTHS ENDED JUNE 30, 1996
Results of Operation
For the quarter ended June 30, 1996, Artesian Resources recorded net
income of $475,976 which represents a $82,613 increase over earnings of
$393,363 for the quarter ended June 30, 1995. For the six months ended June
30, 1996, Artesian Resources recorded net income of $859,052 which represents
a $203,113 increase over earnings of $655,939 for the six months ended June 30,
1995.The increase is primarily due to Artesian Water s increased water sales
revenue attributable to increased rates and an increase in the number of
customers served, and Artesian Water s ability to reduce utility operating
expenses by approximately $66,000 and $107,000, respectively, for the quarter
and six months ended June 30, 1996. Earnings per share of $0.30 for the
quarter ended June 30, 1996 decreased $0.05 as compared to the same period in
1995 primarily as a result of the increase in the weighted average shares
outstanding due to the issuance of 675,000 shares of Class A Non-Voting Common
Stock (Class A Stock) on May 24, 1996.
The decrease in utility operating expenses is primarily due to the
reduction in purchased water expense of approximately $178,000 and $246,000
for the quarter and six months ended June 30, 1996. Artesian Water made
investments in 1995 for the new two million gallon per day Old County Road
Iron Removal facility and the addition in 1995 of a new one million gallon
per day well at the Artisan s Village well field. A portion of the decrease
in purchased water expense is a matter of timing due to contractual obligations
to purchase water.
Non-utility revenues decreased by approximately $478,000 and $862,000
and non-utility expenses decreased by $404,000 and $717,000, respectively,
for the quarter and six months ended June 30, 1996 due to the write-off in
1995 of the net assets of Artesian Laboratories Inc. ( Artesian Laboratories )
and the sale of Artesian Development s rental office building at the end of
the first quarter. The write-off for Artesian Laboratories in 1995 included a
reserve approximating net operating losses expected through the disposal date.
Other expense decreased $96,406 and $91,055, respectively, for the quarter
and six months ended June 30, 1996 as compared to the same periods in 1995 due
primarily to Artesian Water s settlement of litigation in 1995 with a former
employee and officer.
For the quarter and six months ended June 30, 1996, interest expense on
short-term debt increased $42,094 and $155,835, respectively, as compared
with the same periods in 1995 due to Artesian Water s increased use of its
$15 million available lines of credit to finance utility plant additions.
Liquidity and Capital Resources
The primary source of liquidity for the six months ended June 30, 1996
is $9,333,944 from the issuance of common stock. On May 24, 1996 Artesian
Resources issued 675,000 shares of Class A Stock at $15.00 per share . The
net proceeds from the issuance were contributed entirely to Artesian Water.
Artesian Water used the entire net proceeds to reduce the outstanding balances
on lines of credit. Artesian Water had $1,500,000 outstanding on the lines of
credit at June 30, 1996 . As of July 25, 1996 $1,868,000 is drawn on the $15
million available lines of credit. Artesian Development Corporation also
received $1,888,000, net of closing costs of $162,000, for the sale of the
rental office building on March 13, 1996. These funds were used to repay the
outstanding long term debt obligation associated with the building. At
June 30, 1996, Artesian Resources had a working capital deficit of $6,344,000
attributable to the reclassification of the $5 million Series J First Mortgage
Bonds which are due December 1996 and to the borrowings on the lines of credit
of Artesian Water, noted above. Artesian Water anticipates it will refinance
the $5 million Series J Bonds as part of long term financing arrangements to
be completed in the fourth quarter of 1996.
Capital expenditures for the six months ended June 30, 1996, were
approximately $2,700,000 of which $40,000 was for mandatory main relocation
projects. The largest single main relocation project originally budgeted for
1996 at a cost of $1,500,000 has been substantially postponed until 1997.
This project is planned to incur $300,000 in expenditures for the remainder of
1996 and $1,200,000 for 1997. Budgeted mandatory utility plant expenditures
expected to be incurred for the remainder of 1996 through 2000, due to planned
state highway projects which require the relocation of Artesian Water s service
mains are as follows:
Six months ending December 31, 1996 $1,027,000
Year ending December 31, 1997 2,300,000
Year ending December 31, 1998 250,000
Year ending December 31, 1999 1,500,000
Year ending December 31, 2000 2,000,000
$7,077,000
The exact timing and extent of these relocation projects is controlled by the
Delaware Department of Transportation.
PART II - OTHER INFORMATION
ITEM 4 SUBMISSION OF MATTERS TO VOTE OF SECURITY HOLDERS
(a) The annual meeting of Class B Common Shareholders was held on April 30,
1996.
(b) With 423,304 votes in favor, and 284 votes withheld, the Class B Common
Shareholders elected Dian C. Taylor to serve a three year term until her
successor shall have been elected and qualified or until her earlier
resignation or removal. Ms. Taylor has served as Chair of the Board since
July 1993, and Chief Executive Officer and President of the Company since
September 1992, and was last reelected at the 1993 Annual Meeting of
Stockholders. With 422,285 votes in favor, and 1,019 votes withheld,
the Class B Common Shareholders elected John R. Eisenbrey, Jr. to serve a
three year term until his successor shall have been elected and qualified
or until his earlier resignation or removal. Mr. Eisenbrey has served as
a member of the Board since 1993. Following the reelection of Ms. Taylor
and Mr. Eisenbrey, the Board and their respective terms are as follows:
Dian C. Taylor -- term expires at the 1999 annual meeting
John R. Eisenbrey, Jr. -- term expires at the 1999 annual meeting
Ellis D. Taylor -- term expires at the 1998 annual meeting
William C. Wyer -- term expires at the 1998 annual meeting
Kenneth R. Biederman -- term expires at the 1997 annual meeting
(c) With 414,860 votes in favor, 1,946 votes opposed, and 6,498 votes withheld
of the Class B Common Shareholders, the amendment of the 1992
Non-qualified Stock Option Plan was approved. The 1992 Plan provides for
grants of stock options to directors, officers, and other key personnel of
the Company to develop or increase their proprietary interest in the
long-term growth and prosperity of the Company through stock ownership,
and to aid the Company in attracting, retaining and motivating Directors,
Officers, and other key personnel. The 1992 Plan, as amended, authorizes
up to 100,000 shares of Class A Stock for issuance pursuant to the terms
of the 1992 Plan. The maximum number of shares which may be granted,
other than to Directors and Officers, is 1,000 shares per grant.
Under the amended plan: (i) the number of shares of Class A Non-Voting
Common Stock (Class A Stock) authorized for issuance under the Plan was
increased to 100,000, (ii) the maximum amount of shares of Class A Stock
that may be granted to any individual during the term of the 1992 Plan is
an amount equal to 50% of the number of shares of Class A Stock available
for issuance under the 1992 Plan, (iii) the Committee may require a
participant to enter a covenant not to compete and/or a confidentiality
agreement as a condition of an option grant, (iv) provisions relating to
grants to directors and officers of the Company were changed to add a
prohibition on amending such provisions more than once in any six month
period, to extend the exercise term from one year to ten years and to
eliminate the possibility of administrative discretion with respect to
such grants, and (v) the provision that limited to 34 the number of plan
participants eligible to receive options under the 1992 Plan within any
calendar year was removed.
(d) With 416,008 votes in favor, 547 votes opposed, and 6,749 votes withheld
of the Class B Common Shareholders, the adoption of the Artesian Resources
Corporation Incentive Stock Option Plan (ISO Plan) was approved with
100,000 shares of Class A Stock authorized for the Plan. Artesian
Resources Corporation s Form 10-K Annual Report for the year ended
December 31, 1995, Exhibit 10 describes the ISO Plan in detail.
ITEM 5 OTHER INFORMATION
Artesian Resources Corporation issued 675,000 shares of Class A
Non-Vo ting Common Stock at $15.00 per share through underwriters led by Janney
Montgomery Scott Inc. Proceeds from the offering were used to reduce debt
incurred to finance investment in utility plant. A Form S-2 Registration
Statement for the offering became effective with the Securities and Exchange
Commission on May 23, 1996.
The Class A Non-Voting Common Stock of Artesian Resources Corporation
began trading in the Nasdaq National Market (symbol ARTNA) on Friday, May 24,
1996. Also on May 24, 1996, the trading symbol of Artesian Resources
Corporation s Class B Common Stock changed to ARTNB. The Class B Common Stock
is traded on the Nasdaq Bulletin Board.
Senior Vice President and Chief Operating Officer, Peter N. Johnson, P.E.,
retired May 31, 1996. George F. Powell, P.E., was appointed Vice President of
Operations as of June 3, 1996. Mr. Powell was previously employed for nineteen
years with Consumers Water Company. Prior to joining Artesian Resources
Corporation, Mr. Powell served three years as Vice President of Operations and
twelve years as Manager of Engineering for Consumers New Jersey system.
ITEM 6 EXHIBITS AND REPORTS ON FORM 8-K
No reports on Form 8-K were filed for the quarter ended June 30, 1996.
Exhibit 11 - Computation of Earnings per Common Share
For the Six Months Ended
June 30,
1996 1995
Earnings
Income applicable to Common Stock $804,967 $594,508
Shares
Weighted average number of Common Stock
Shares outstanding 1,238,609 1,025,974
Additional shares assuming conversion of:
Stock options 29,290 27,090
Pro Forma Shares 1,267,899 1,053,064
Primary earnings per share based on pro forma
shares outstanding which assume conversion of
stock options $ 0.63 $ .57
Primary earnings per share based on weighted
average number of common shares outstanding $ 0.65 $ .58
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
Date August 1, 1996 /s/ Dian C. Taylor
Dian C. Taylor
President, CEO, and Chair of the Board
Artesian Resources Corporation and Subsidiaries
Date August 1, 1996 /s/ David B. Spacht
David B. Spacht
Vice President, Chief Financial Officer, and
Treasurer Artesian Resources Corporation and
Subsidiaries