UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1998
or
__ TRANSACTION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transaction period from January 1, 1998 to March 31, 1998
Commission file number 0-18516
ARTESIAN RESOURCES CORPORATION
(exact name of registrant as specified in its charter)
State or other jurisdiction of incorporation or organization: Delaware
I.R.S. Employer Identification Number: 51-0002090
Address of principal executive officers: 664 Churchmans Road, Newark, Delaware
Zip Code: 19702
Registrant's telephone number, including area code: (302) 453-6900
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 April 27, 1998, 1,283,246 shares and 508,281 shares of Class A
Non-Voting Common Stock and Class B Common Stock, respectively, were
outstanding.
ARTESIAN RESOURCES CORPORATION
INDEX TO FORM 10-Q
Part I - Financial Information: Page(s)
Item 1 - Financial Statements
Consolidated Balance Sheet -
March 31, 1998 and December 31, 1997 3
Consolidated Statement of Income for
the quarters ended March 31, 1998 and 1997 4
Consolidated Statement of Retained Earnings
for the quarters ended March 31, 1998 and 1997 4
Consolidated Statement of Cash Flows for the
quarters ended March 31, 1998 and 1997 5
Notes to the Consolidated Financial Statements 6-9
Item 2 - Management's Discussion and Analysis of
Results of Operations and Financial Condition 9-10
Item 3 - Quantitative and Qualitative Disclosures about
Market Risk 10
Part II - Other Information:
Item 1 - Legal Proceedings 10-11
Item 2 - Changes in Securities 11
Item 3 - Defaults Upon Senior Securities 11
Item 4 - Submission of Matters to a Vote of
Security Holders 11
Item 5 - Other Information 11
Item 6 - Exhibits and Reports on Form 8-K 11-13
Signatures 14
Part I - Financial Information
Item I - Financial Statements
ARTESIAN RESOURCES CORPORATION
CONSOLIDATED BALANCE SHEET
(In thousands)
Unaudited December 31,
March 31, 1998 1997
ASSETS
Utility plant, at original cost
less accumulated depreciation $101,294 $ 97,694
Current assets
Cash and cash equivalents 310 146
Accounts receivable, net 2,281 2,131
Unbilled operation revenues 1,612 1,869
Materials and supplies-at cost
on FIFO basis 637 610
Prepaid property taxes 260 519
Prepaid expenses and other 505 388
State and federal income taxes --- 135
5,605 5,798
Other assets
Non-utility property (less accumulated
depreciation 1998-$146;1997-$145) 347 349
Other deferred assets 1,175 1,208
1,522 1,557
Regulatory assets, net 2,803 2,818
$111,224 $107,867
LIABILITIES AND STOCKHOLDERS' EQUITY
Stockholders' equity
Common stock $ 1,791 $ 1,780
Additional paid-in capital 17,841 17,648
Retained earnings 6,760 6,887
Preferred stock 272 272
Total common stockholders' equity 26,664 26,587
Preferred stock-mandatorily redeemable 488 600
Long-term debt, net of current portion 32,093 32,103
59,245 59,290
Current liabilities
Notes payable 3,147 1,164
Current portion of long-term debt 46 46
Current portion of mandatorily
redeemable preferred stock 112 112
Accounts payable 3,238 2,616
Overdraft payable 600 510
State and federal taxes 90 ---
Deferred income taxes 194 189
Interest accrued 870 880
Customer deposits 385 370
Dividends payable 20 ---
Other 739 360
9,441 6,247
Deferred credits and other liabilities
Net advances for construction 18,066 17,880
Postretirement benefit obligation 1,690 1,704
Deferred investment tax credits 1,020 1,029
Deferred income taxes 176 176
20,952 20,789
Net contributions in aid of construction 21,586 21,541
$111,224 $107,867
See notes to the consolidated financial statements.
ARTESIAN RESOURCES CORPORATION
CONSOLIDATED STATEMENT OF INCOME
Unaudited
(In thousands, except share and per share amounts)
For the Quarter
Ended March 31,
1998 1997
OPERATING REVENUES
Water sales $ 5,548 $ 4,892
Other utility operating revenue 73 87
5,621 4,979
OPERATING EXPENSES
Utility operating expenses 3,365 3,078
Non-utility operating expenses 5 ---
Related party expenses 57 62
Depreciation and amortization 606 586
State and federal income taxes 217 126
Property and other taxes 377 378
4,627 4,230
OPERATING INCOME 994 749
ALLOWANCE FOR FUNDS USED DURING CONSTRUCTION 49 47
OTHER INCOME (EXPENSE) 16 (22)
INCOME BEFORE INTEREST CHARGES 1,059 774
INTEREST CHARGES
Long-term debt 673 564
Short-term debt 37 ---
Amortization of debt expense 8 4
Other 14 9
732 577
NET INCOME $ 327 $ 197
DIVIDENDS ON PREFERRED STOCK 22 25
NET INCOME APPLICABLE TO COMMON STOCK $ 305 $ 172
INCOME PER COMMON SHARE:
Basic $ 0.17 $ 0.10
Diluted $ 0.17 $ 0.10
CASH DIVIDEND PER COMMON SHARE $ 0.23 $ 0.23
AVERAGE COMMON SHARES OUTSTANDING
Basic 1,787,687 1,753,045
Diluted 1,803,211 1,764,087
CONSOLIDATED STATEMENT OF RETAINED EARNINGS
Unaudited
(In thousands)
For the Quarter
Ended March 31,
1998 1997
Balance, beginning of period $ 6,887 $ 6,614
Net income 327 197
7,214 6,811
Dividends 454 451
Balance, end of period $ 6,760 $ 6,360
See Notes to the Consolidated Financial Statements.
ARTESIAN RESOURCES CORPORATION
CONSOLIDATED STATEMENT OF CASH FLOWS
Unaudited
(In thousands)
For the Quarter
Ended March 31,
1998 1997
CASH FLOWS FROM OPERATING ACTIVITIES
NET INCOME $ 327 $ 197
Adjustments to reconcile net income to net
cash provided by (used in) operating activities:
Depreciation and amortization 568 548
Deferred income taxes, net (4) ---
Allowance for funds used during construction (49) (47)
Changes in Assets and Liabilities:
Accounts receivable (150) 188
Unbilled operating revenue 257 160
Materials and supplies (27) (54)
State and federal income taxes 225 134
Prepaid property taxes 259 246
Prepaid expenses and other (117) (241)
Other deferred assets 33 61
Regulatory assets 15 (114)
Postretirement benefit obligation (14) 1
Accounts payable 622 (1,649)
Interest accrued (10) (34)
Customer deposits and other, net 394 138
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES 2,329 (466)
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures (net of AFUDC) (4,219) (2,045)
Proceeds from sale of assets 3 1
NET CASH USED IN INVESTING ACTIVITIES (4,216) (2,044)
CASH FLOW FROM FINANCING ACTIVITIES
Net borrowings under line of credit agreement 1,983 3,033
Overdraft payable 90 160
Net advances and contributions in aid
of construction 331 13
Repayment on long-term note --- (25)
Proceeds from issuance of Common Stock 204 62
Dividends (434) (429)
Principal payments under capital
lease obligations (11) (88)
Retirement of preferred stock (112) (112)
NET CASH PROVIDED BY FINANCING ACTIVITIES 2,051 2,614
NET INCREASE IN CASH AND CASH EQUIVALENTS 164 104
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 146 148
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 310 $ 252
Supplemental Disclosures of Cash Flow Information:
Interest paid $ 734 $ 543
Income taxes paid $ --- $ ---
See Notes to the Consolidated Financial Statements.
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 consolidated financial
statements and notes thereto for the year ended December 31, 1997 included in
the Company's Annual Report on Form 10-K. The accompanying consolidated
financial statements have not been examined by independent accountants in
accordance with generally accepted auditing standards, but in the opinion of
management such consolidated 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 ended March 31, 1998 may not be
indicative of the results that may be expected for the year ending December
31, 1998.
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 two 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:
March 31, 1998 December 31, 1997
(,000) (,000)
Postretirement benefit obligation $1,690 $1,704
Deferred income taxes recoverable
in future rates 716 710
Expense of rate proceedings 397 404
$2,803 $2,818
NOTE 3 - NON-UTILITY OPERATING EXPENSES
Non-utility operating expenses totaling $5,000 are attributable to
Artesian Wastewater Management, Inc. (Artesian Wastewater). Artesian
Wastewater plans to provide wastewater treatment services in Delaware. On
March 12, 1997 Artesian Wastewater became a one-third member in AquaStructure
Delaware, L.L.C. which intends to develop and market various proposals to
provide wastewater treatment services.
NOTE 4 - RELATED PARTY TRANSACTIONS
The office building and shop complex utilized by Artesian Water are
leased at an annual rental of $184,000 from a partnership, White Clay Realty,
in which certain of Artesian Resources' officers and directors are partners.
The lease expires in 2002, with provisions for renewals for two five year
periods thereafter. Management believes that the payments made to White Clay
Realty for the lease of its office building and shop complex 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,
Chairman Emeritus of Artesian Resources, at an annual rental of $42,000.
The initial term of the lease was for ten years ending September 30, 1995
and, thereafter, renewal is 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
March 31,
1998 1997
(,000) (,000)
White Clay Realty $ 46 $ 51
Glendale Enterprises 11 11
$ 57 $ 62
NOTE 5 - DEBT
As of April 6, 1998 Artesian Water has available unsecured lines of
credit, with no financial covenant restrictions, totaling $30.0 million
which are renewable annually at the bank's discretion. Borrowings under
the lines of credit bear interest based on the London Interbank Offering
Rate (LIBOR) plus 1.0% for 30, 60, 90, or 180 days, or the bank's Federal
Funds Rate plus 1.0%, at the option of Artesian Water.
NOTE 6 - RATE PROCEEDINGS
On October 3, 1997, Artesian Water filed a petition with the PSC to
implement new rates to achieve a projected increased revenue target, as
subsequently amended, of approximately 23.3% or $5.2 million on an annualized
basis. Artesian Water has been permitted to collect a temporary rate
increase not in excess of 11.35% or $2.5 million on an annualized basis,
under bond, until permanent rates are approved. These temporary rates became
effective on December 3, 1997 and approximately $0.6 million in additional
revenue was recognized during the first quarter of 1998 as a result of the
increased rates.
On April 20, 1998, Artesian Water entered into a proposed settlement
agreement with the Division of the Public Advocate and the PSC staff which
would allow Artesian Water to increase customer rates from a temporary
increase of 11.35% implemented December 3, 1997 to an increase of
approximately 13.2%, or $2.975 million annualized. The settlement agreement
is subject to approval by the Hearing Examiner in the rate case and the PSC.
Artesian Water believes that the rates will become effective on or about
May 12, 1998, but the timing of the PSC decision and the amount of the
permanent rates cannot be assured.
The proposed annualized revenue increase of $2.975 million under the
settlement agreement is based on a projected utility plant in service level
of $124.2 million as of June 30, 1998. Artesian Water's actual June 30, 1998
utility plant in service balance will be subject to audit in July 1998 by the
PSC. If the actual June 30, 1998 utility plant in service balance is more
than $0.5 million below the $124.2 million projected utility plant in service
level, then a refund equaling revenues related to the entire plant in service
deficiency will be made to customers from the effective date of the rate
increase put into place as a result of this proposed settlement. Every
$0.5 million deficiency from the required utility plant in service level of
$124.2 million equates to an annualized revenue reduction of approximately
$48,000. Artesian Water's March 31, 1998 utility plant in service balance
is $118.6 million with an additional $3.3 million in construction work in
progress. The Company anticipates that the required utility plant in service
level of $124.2 million will be achieved by June 30, 1998 and no refund to
customers will be necessary under the terms of the proposed settlement
agreement, although there can be no assurance that the need for a refund will
not arise.
NOTE 7 - NET INCOME PER COMMON SHARE AND EQUITY PER COMMON SHARE
In December 1997, the Company adopted SFAS No. 128, "Earnings per Share"
which prescribes two methods for calculating net income per common share:
"Basic" and "Diluted" methods. These calculations differ from those used in
prior periods and as a result all prior period earnings per share data have
been restated to reflect the adoption of SFAS No. 128.
Basic net income per share is based on the weighted average number of
common shares outstanding. Diluted net income per share is based on the
weighted average number of common shares outstanding and potentially dilutive
effect of employee stock options. The adoption of this statement had no
effect on the results of operations, financial conditions, or long-term
liquidity of the Company. The following table summarizes the shares used in
computing basic and diluted net income per share:
For the Quarter
Ended March 31,
1998 1997
Average common shares outstanding during
the period for Basic computation 1,787,687 1,753,045
Dilutive effect of employee stock options 15,524 11,042
Average common shares outstanding during
the period for Diluted computation 1,803,211 1,764,087
Equity per common share was $14.74 and $14.44 at March 31, 1998 and 1997,
respectively. These amounts were computed by dividing common stockholders'
equity excluding preferred stock by the number of shares of common stock
outstanding at the end of each quarter.
NOTE 8 - IMPACT OF RECENT ACCOUNTING PRONOUNCEMENTS
In June 1997, the FASB issued Statement of Financial Accounting Standards
No. 130, "Reporting Comprehensive Income" (SFAS 130). SFAS 130 requires that
all items that are required to be recognized under accounting standards as
components of comprehensive income be reported in a financial statement that
is displayed with the same prominence as other financial statements. The
Company has adopted this Statement effective January 1, 1998, and has no
components of comprehensive income to report.
In June 1997, the FASB issued Statement of Financial Accounting Standards
No. 131, "Disclosures About Segments of an Enterprise and Related Information"
("SFAS 131"). This Statement established standards for reporting information
about operating segments in interim financial reports issued to shareholders.
It also establishes standards for related disclosure about products and
services, geographic areas and major customers.
In February 1998, the FASB issued Statement of Financial Accounting
Standard No. 132 "Employers Disclosure about Pension and Other Postretirement
Benefits" ("SFAS 132"), which revises employers' disclosures about pensions
and other postretirement benefit plans, and does not change the measurement
or recognition of those plans.
The Company plans to adopt SFAS 131 and SFAS 132 in connection with the
preparation of the December 31, 1998 consolidated financial statement and the
adoption of these statements will not have a material impact on the Company's
financial condition or results of operation.
ITEM 2
ARTESIAN RESOURCES CORPORATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE
QUARTER ENDED MARCH 31, 1998
RESULTS OF OPERATIONS
For the quarter ended March 31, 1998, Artesian Resources recorded net
income of $327,000 which represents a $130,000 increase as compared to
earnings of $197,000 for the quarter ended March 31, 1997. The increase is
primarily attributable to two increases in Artesian Water's rates charged to
customers of approximately 1.13% and 11.35% which were placed in effect May
1, 1997 and December 3, 1997, respectively, and a 2.4% growth in customers
served. Water sales revenue increased $656,000, or 13.4%, for the quarter
ended March 31, 1998 as compared to the same period in 1997.
Payroll expense increased $167,000 due to the addition of several new
positions as well as pay increases. Rate case amortization expense increased
$98,000 due to using a two year amortization period for the deferred rate
case costs associated with Docket 97-66 and Docket 97-340 as required under
the pending rate case settlement agreement. The estimated total cost of these
two dockets is higher than the total cost of Docket 94-164 which was amortized
over the three years ended December 31, 1997. Purchased water expense
decreased $127,000 primarily due to the renegotiated contract with the
Chester Water Authority (CWA) which reduced the mandatory minimum takes from
a daily average of four million gallons to three million gallons effective
August 1, 1997. Total purchased water consumption is 20% lower in the first
quarter of 1998 as compared to the same period in 1997 due to the decreased
takes from CWA and to the timing of purchases from the City of Wilmington.
Income taxes increased $91,000 for the three months ended March 31, 1998
as compared to the same period in 1997 due to the increased profitability of
the Company.
Interest expense and debt amortization expense increased by $155,000 for
the three months ended March 31, 1998 as compared with the same period in 1997
due to a higher average debt outstanding of $35.0 million at a higher average
interest rate for 1998 as compared to $30.0 million in average debt
outstanding for 1997. The increase in the average debt outstanding is
attributable to the issuance of Artesian Water's $10 million Series M and $5
million Series N Mortgage Bonds in June and September of 1997, respectively,
and to increased borrowings on the lines of credit.
LIQUIDITY AND CAPITAL RESOURCES
The primary sources of liquidity for the three months ended March 31,
1998 is $2.3 million provided by cash flow from operations and $2.0 million
borrowed on Artesian Water's lines of credit. At March 31, 1998, Artesian
Resources had a working capital deficit of $3.8 million primarily attributable
to borrowings on the lines of credit and to an increase in accounts payable
associated with the volume of construction projects currently in process.
On April 6, 1998 Artesian Water increased its available unsecured lines
of credit, with no financial covenant restrictions, to a total of $30.0
million and reduced the borrowing rate to the London Interbank Offering Rate
plus 1.0% or the bank's Federal Funds Rate plus 1.0%. As of April 30, 1998
$3.6 million was drawn on the lines of credit.
ITEM 3 - QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Not applicable.
PART II - OTHER INFORMATION
ITEM 1 - LEGAL PROCEEDINGS
On October 3, 1997, Artesian Water filed a petition with the PSC to
implement new rates to achieve a projected increased revenue target, as
subsequently amended, of approximately 23.3% or $5.2 million on an annualized
basis. Artesian Water has been permitted to collect a temporary rate increase
not in excess of 11.35% or $2.5 million on an annualized basis, under bond,
until permanent rates are approved. These temporary rates became effective
on December 3, 1997 and approximately $0.6 million in additional revenue was
recognized during the first quarter of 1998 as a result of the increased
rates.
On April 20, 1998, Artesian Water entered into a proposed settlement
agreement with the Division of the Public Advocate and the PSC staff which
would allow Artesian Water to increase customer rates from a temporary
increase of 11.35% implemented December 3, 1997 to an increase of
approximately 13.2%, or $2.975 million annualized. The settlement agreement
is subject to approval by the Hearing Examiner in the rate case and the PSC.
Artesian Water believes that the rates will become effective on or about
May 12, 1998, but the timing of the PSC decision and amount of the permanent
rates cannot be assured.
The proposed annualized revenue increase of $2.975 million under the
settlement agreement is based on a projected utility plant in service level
of $124.2 million as of June 30, 1998. Artesian Water's actual June 30, 1998
utility plant in service balance will be subject to audit in July 1998 by the
PSC. If the actual June 30, 1998 utility plant in service balance is more
than $0.5 million below the projected utility plant in service level, then a
refund equaling revenues related to the entire plant in service deficiency
will be made to customers from the effective date of the rate increase put
into place as a result of this proposed settlement. Every $0.5 million
deficiency from the required utility plant in service level of $124.2 million
equates to an annualized revenue reduction of approximately $48,000. Artesian
Water's March 31, 1998 utility plant in service balance is $118.6 million
with an additional $3.3 million in construction work in progress. The
Company anticipates that the required utility plant in service level of
$124.2 million will be achieved by June 30, 1998 and no refund to customers
will be necessary under the terms of the proposed settlement agreement,
although there can be no assurance that the need for a refund will not arise.
There are no other material legal proceedings pending at this date.
ITEM 2 - CHANGES IN SECURITIES
Not applicable.
ITEM 3 - DEFAULTS UPON SENIOR SECURITIES
Not applicable.
ITEM 4 - SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
Not applicable.
ITEM 5 - OTHER INFORMATION
Not applicable.
ITEM 6 EXHIBITS AND REPORTS ON FORM 8-K
No reports on Form 8-K were filed for the quarter ended March 31, 1998.
EXHIBIT 11 - COMPUTATION OF EARNINGS PER COMMON SHARE
For the Three Months Ended
March 31,
1998 1997
Earnings
Income applicable to Common Stock $ 304,705 $ 171,576
Shares
Average common shares outstanding
during the period for
Basic computation 1,787,687 1,753,045
Dilutive effect of employee
stock options 15,524 11,042
Average common shares outstanding
during the period for
Diluted computation 1,803,211 1,764,087
Net income per Common Share
Basic $ 0.17 $ 0.10
Diluted $ 0.17 $ 0.10
EXHIBIT 27 - FINANCIAL DATA SCHEDULE
[LEGEND]
This schedule contains summary financial information extracted from the
consolidated balance sheets, consolidated statements of income and the
consolidated statement of cash flows from the Company's March 31, 1998
Form 10-Q and is qualified in its entirety by reference to such financial
statements.
[/LEGEND]
[PERIOD-TYPE] 3-MOS
[FISCAL-YEAR-END] DEC-31-1998
[PERIOD-END] MAR-31-1998
[BOOK-VALUE] PER-BOOK
[TOTAL-NET-UTILITY-PLANT] 101,294,000
[OTHER-PROPERTY-AND-INVEST] 347,000
[TOTAL-CURRENT-ASSETS] 5,605,000
[TOTAL-DEFERRED-CHARGES] 3,978,000
[OTHER-ASSETS] 0
[TOTAL-ASSETS] 111,224,000
[COMMON] 1,791,000
[CAPITAL-SURPLUS-PAID-IN] 17,841,000
[RETAINED-EARNINGS] 6,760,000
[TOTAL-COMMON-STOCKHOLDERS-EQ] 26,392,000
[PREFERRED-MANDATORY] 488,000
[PREFERRED] 272,000
[LONG-TERM-DEBT-NET] 32,000,000
[SHORT-TERM-NOTES] 3,147,000
[LONG-TERM-NOTES-PAYABLE] 0
[COMMERCIAL-PAPER-OBLIGATIONS] 0
[LONG-TERM-DEBT-CURRENT-PORT] 0
[PREFERRED-STOCK-CURRENT] 112,000
[CAPITAL-LEASE-OBLIGATIONS] 93,000
[LEASES-CURRENT] 46,000
[OTHER-ITEMS-CAPITAL-AND-LIAB] 48,674,000
[TOT-CAPITALIZATION-AND-LIAB] 111,224,000
[GROSS-OPERATING-REVENUE] 5,621,000
[INCOME-TAX-EXPENSE] 217,000
[OTHER-OPERATING-EXPENSES] 4,410,000
[TOTAL-OPERATING-EXPENSES] 4,627,000
[OPERATING-INCOME-LOSS] 994,000
[OTHER-INCOME-NET] 65,000
[INCOME-BEFORE-INTEREST-EXPEN] 1,059,000
[TOTAL-INTEREST-EXPENSE] 732,000
[NET-INCOME] 327,000
[PREFERRED-STOCK-DIVIDENDS] 22,000
[EARNINGS-AVAILABLE-FOR-COMM] 305,000
[COMMON-STOCK-DIVIDENDS] 434,000
[TOTAL-INTEREST-ON-BONDS] 2,677,000
[CASH-FLOW-OPERATIONS] 2,329,000
<EPS-BASIC> 0.17
[EPS-DILUTED] 0.17
EXHIBIT 27 - FINANCIAL DATA SCHEDULE
[LEGEND]
This schedule contains summary financial information extracted from the
consolidated balance sheets, consolidated statements of income and the
consolidated statement of cash flows from the Company's March 31, 1997
Form 10-Q, restated as required under SFAS 128, and is qualified in its
entirety by reference to such financial statements.
[/LEGEND]
[PERIOD-TYPE] 3-MOS
[FISCAL-YEAR-END] DEC-31-1997
[PERIOD-END] MAR-31-1997
[BOOK-VALUE] PER-BOOK
[TOTAL-NET-UTILITY-PLANT] 90,489,000
[OTHER-PROPERTY-AND-INVEST] 822,000
[TOTAL-CURRENT-ASSETS] 5,031,000
[TOTAL-DEFERRED-CHARGES] 4,534,000
[OTHER-ASSETS] 0
[TOTAL-ASSETS] 100,876,000
[COMMON] 1,752,000
[CAPITAL-SURPLUS-PAID-IN] 17,184,000
[RETAINED-EARNINGS] 6,360,000
[TOTAL-COMMON-STOCKHOLDERS-EQ] 25,296,000
[PREFERRED-MANDATORY] 599,500
[PREFERRED] 272,000
[LONG-TERM-DEBT-NET] 17,000,000
[SHORT-TERM-NOTES] 0
[LONG-TERM-NOTES-PAYABLE] 12,091,000
[COMMERCIAL-PAPER-OBLIGATIONS] 0
[LONG-TERM-DEBT-CURRENT-PORT] 0
[PREFERRED-STOCK-CURRENT] 112,500
[CAPITAL-LEASE-OBLIGATIONS] 177,000
[LEASES-CURRENT] 286,000
[OTHER-ITEMS-CAPITAL-AND-LIAB] 45,042,000
[TOT-CAPITALIZATION-AND-LIAB] 100,876,000
[GROSS-OPERATING-REVENUE] 4,979,000
[INCOME-TAX-EXPENSE] 126,000
[OTHER-OPERATING-EXPENSES] 4,104,000
[TOTAL-OPERATING-EXPENSES] 4,230,000
[OPERATING-INCOME-LOSS] 749,000
[OTHER-INCOME-NET] 25,000
[INCOME-BEFORE-INTEREST-EXPEN] 774,000
[TOTAL-INTEREST-EXPENSE] 577,000
[NET-INCOME] 197,000
[PREFERRED-STOCK-DIVIDENDS] 25,000
[EARNINGS-AVAILABLE-FOR-COMM] 172,000
[COMMON-STOCK-DIVIDENDS] 426,000
[TOTAL-INTEREST-ON-BONDS] 1,514,900
[CASH-FLOW-OPERATIONS] (466,000)
<EPS-BASIC> 0.10
[EPS-DILUTED] 0.10
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
5/6/98 /s/ Dian C. Taylor
Dian C. Taylor
President, CEO, and Chair of the Board
Artesian Resources Corporation and Subsidiaries
5/6/98 /s/ David B. Spacht
David B. Spacht
Vice President, Chief Financial Officer, and
Treasurer
Artesian Resources Corporation and Subsidiaries
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