Exhibit 99.1
Newark, DE, March 31 2005 - (ARTNA) Artesian Resources Corporation (Artesian)
today announced that basic and diluted net income per common share for 2004 were
$1.12 and $1.08, as compared to $0.99 and $0.96 in 2003. Revenues for 2004 were
$39.6 million, up 9.1% from $36.3 million in 2003. Net income available to
common stockholders was $4.4 million, compared to $3.8 million last year, a
14.4% increase.
Although suppressed by extraordinary weather conditions in 2004, Artesian
achieved increases in both revenue and income as a result of the increase in the
number of water utility customers served, increased rates and additional
revenues from wastewater operations. Rainfall in New Castle County, Delaware,
was approximately 33% above average for the year, and 3% greater than last year.
Contributing to revenue growth, Artesian recorded $1.6 million in non-utility
and other utility operating revenue in 2004, a 41.2% increase from $1.1 million
in 2003, primarily from growth in wastewater operations. Dian C. Taylor, CEO and
Chair of the Board said, "We continue to realize the benefits of expanding our
contract services and wastewater operations. As we grow these related
businesses, we are adding additional revenues to supplement our core utility
operations. Unlike traditional water sales, the revenues generated from these
contracts are not as sensitive to the effects of weather."
The number of water customers served by Artesian grew 1.9% from a year ago. As
permitted by Delaware statute, Artesian also placed a 6.9% temporary rate
increase into effect on April 6, 2004 and an additional 8.1% increase on
September 7, 2004 to recover expenses associated with the investment of $45
million in utility plant. The temporary rates will remain in effect pending a
final ruling on the rate increase request filed in February 2004.
Operating expenses, excluding depreciation and taxes increased $1.1 million, or
5.5% to $20.7 million in 2004. This increase is primarily the result of (1)
consulting fees related to internal control documentation and testing in
compliance with Section 404 of the Sarbanes-Oxley Act of 2002 and increased
audit fees of $298,000 (2) increased repair and maintenance fees of $288,000,
which includes expenses related to computer hardware and software fees,
replacement of a water treatment filter media and fuel price increases and (3)
increased non utility operating expenses of $268,000, primarily for engineering
services related to new wastewater projects. These increases were partially
offset by controlling expense increases and from capitalizing payroll and
related expenses associated with the conversion of the company's customer
service information programs, which is expected to conclude in the first half of
2005.
In accordance with Securities and Exchange Commission order dated November 30,
2004 (Release No. 50754), we expect to include management's annual report on
internal control over financial reporting and the related attestation report of
our registered public accounting firm in our Form 10-K no later than 45 days
after the end of the 75 day filing period specified in Form 10-K.
Artesian Resources Corporation, through our wholly-owned subsidiary Artesian
Water Company, is the largest investor owned regulated public water utility in
the State of Delaware and has been providing water within the state since 1905.
Artesian has invested more than $155 million in utility plant over the last 10
years to provide sufficient treated supply, new water mains and additional
storage capacity to meet peak demands and provide fire protection for Delaware
residents. We distribute and sell water to residential, commercial, industrial,
governmental, municipal and utility customers throughout the state. As of
December 31, 2004, Artesian was serving approximately 71,000 metered customers,
providing water service to about 232,000 residents (including contract
services), approximately 28% of Delaware's total population. Last year, Artesian
distributed 7.2 billion gallons of water. Artesian serves its customers through
109 operating wells. Artesian's water supply is treated at 52 different
locations statewide. Artesian owns and maintains approximately 977 miles of
water main throughout the state.
Contact: Nicki Taylor
Investor Relations
(302) 453-6943 ntaylor@artesianwater.com
Artesian Resources Corporation
Condensed Consolidated Statement of Operations
(In thousands, except share and per share data)
Three Three Twelve Twelve
months months months months
ended ended ended ended
December 31, December 31, December 31, December 31,
2004 2003 2004 2003
------------ ------------ ------------ ------------
Operating Revenues $ 10,210 $ 9,077 $ 39,582 $ 36,295
----------------------------- -----------------------------
Operating Expenses
Operations and Maintenance Expenses 5,214 5,045 20,700 19,630
Depreciation and Amortization 1,031 995 4,046 3,635
State & Federal Taxes 780 388 2,892 2,386
Property and Other Taxes 452 567 2,070 2,115
----------------------------- -----------------------------
7,477 6,995 29,708 27,766
----------------------------- -----------------------------
Operating Income 2,733 2,082 9,874 8,529
Miscellaneous Income (deduction) 25 68 471 277
----------------------------- -----------------------------
Income Before Interest Charges 2,758 2,150 10,345 8,806
----------------------------- -----------------------------
----------------------------- -----------------------------
Interest Charges 1,513 1,279 5,943 4,889
----------------------------- -----------------------------
Net Income 1,245 871 4,402 3,917
Preferred Dividend Requirement & Redemption Premium -- 3 2 71
----------------------------- -----------------------------
Net Income Applicable to Common Stock $ 1,245 $ 868 $ 4,400 $ 3,846
============================= =============================
Weighted Average Common Shares Outstanding - Basic 3,952,046 3,893,703 * 3,936,066 3,880,159 *
Net Income per Common Share - Basic $ 0.32 $ 0.22 * $ 1.12 $ 0.99 *
Weighted Average Common Shares Outstanding - Diluted 4,079,024 4,002,834 * 4,065,651 3,992,519 *
Net Income per Common Share - Diluted $ 0.31 $ 0.22 * $ 1.08 $ 0.96 *
* Shares outstanding and per share amounts restated to reflect a three for two
common stock split effective May 30, 2003.
Artesian Resources Corporation
Condensed Consolidated Balance Sheet
(In thousands)
December 31, December 31,
2004 2003
------------ ------------
ASSETS
Utility Plant, at original cost less
accumulated depreciation $ 212,152 $ 187,893
Current Assets 9,658 23,429
Regulatory and Other Assets 5,570 5,002
------------ ------------
$ 227,380 $ 216,324
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CAPITALIZATION AND LIABILITIES
Stockholders' Equity $ 54,943 $ 52,691
Long Term Debt, Net of Current Portion 82,356 80,558
Current Liabilities 18,440 19,674
Advances for Construction 21,456 19,175
Contributions in Aid of Construction 33,426 30,376
Other Liabilities 16,759 13,850
------------ ------------
$ 227,380 $ 216,324
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