Core Insights - Artesian Resources Corporation is a leading provider of water and wastewater services on the Delmarva Peninsula, with its 2024 Annual Report now available electronically for shareholders [1][2] Company Overview - Artesian Resources Corporation operates as a holding company with wholly owned subsidiaries that offer water and wastewater services, along with other related core services on the Delmarva Peninsula [2] - Artesian Water Company, the principal subsidiary, is the oldest and largest regulated water utility in the region, providing water service since 1905 [2] - The company supplies 9.5 billion gallons of water annually through 1,491 miles of water main, serving over a third of Delaware residents [2]

Revenue and Customer Growth - Total operating revenues for the year ended December 31, 2024, were $108.0 million, an increase of $9.1 million, or 9.2%, compared to 2023[161]. - Water sales revenue increased by $8.0 million, or 10.1%, primarily due to a temporary rate increase of 14.6% implemented on November 28, 2023, and a final approved rate increase of approximately 15.2% effective June 12, 2024[162]. - The number of metered water customers in Delaware increased by approximately 1.6% and in Maryland by approximately 2.3% compared to December 31, 2023[147]. - The number of Delaware wastewater customers increased by approximately 6.5% compared to December 31, 2023[148]. - Residential water service revenues amounted to $53.9 million, an increase of $4.4 million, or 8.8%, primarily due to a rate increase and increased consumption[166]. - Commercial water service revenues reached $19.4 million, an increase of $1.8 million, or 10.1%, driven by a rate increase[167]. - Government and other water service revenues increased to $14.7 million, up $1.9 million, or 14.8%, primarily due to a rate increase and increased consumption[168]. - Other utility operating revenue increased by 7.7% to $13.1 million in 2024 from $12.2 million in 2023, primarily due to an increase in the number of customers served[169]. Operating Expenses and Financial Performance - Operating expenses, excluding depreciation and income taxes, increased by $4.1 million, or 7.3%, for the year ended December 31, 2024 compared to 2023[171]. - Net income applicable to common stock increased by $3.7 million, or 22.1%, with total revenue rising by $9.1 million[179]. - Cash flow from operating activities was $36.8 million for the year ended December 31, 2024, compared to $31.9 million in 2023, reflecting improved financial performance[183]. Capital Expenditures and Future Investments - Capital expenditures in 2024 were $45.9 million, a decrease from $62.2 million in 2023, focusing on infrastructure upgrades and new facilities[184]. - Projected capital expenditures for 2025 are expected to be approximately $46.4 million, with significant investments in PFAS treatment equipment and infrastructure rehabilitation[182]. Financing and Cash Flow - Cash flows provided by financing activities decreased to $7.1 million in 2024 from $31.4 million in 2023, primarily due to reduced contributions in aid of construction[187]. - The company has a $40 million line of credit with Citizens Bank, fully available as of December 31, 2024, with an interest rate linked to SOFR[188]. - Total contractual cash obligations amount to $294.6 million, with significant payments due in the next five years[190]. - Artesian Water Company entered into a Financing Agreement for up to $901,170 to replace a water transmission main in New Castle County, Delaware[194]. Risk Management and Contracts - The fixed rate for the electric supply contract with MidAmerican was lowered by 5.6% starting in May 2021, while a new contract with WGL Energy will see a 44.4% increase starting December 2024[195]. - The company has a minimum water purchase obligation of 0.5 million gallons per day under an interconnection agreement with Chester Water Authority, effective until December 31, 2026[196]. - Total expenditure for the elevated water storage tank painting agreement was amended to $2.2 million over four years[197]. - The company manages interest rate risk through fixed rate long-term debt with rates ranging from 4.24% to 5.96%, maturing between 2028 and 2049[200]. - Artesian Water has $60 million in variable rate lines of credit, with no outstanding balances as of December 31, 2024[200]. - The company mitigates risks from commodity price increases by recovering costs through rate increases to customers[200].

Earnings Announcement - Artesian Resources Corporation announced its earnings for Q4 and the year ended December 31, 2024, on March 25, 2025[5]. - The press release detailing the earnings is attached as Exhibit 99.1, which is incorporated by reference[5]. - The financial statements and exhibits related to the earnings announcement are included in the filing[7]. Company Information - The company is listed on NASDAQ under the trading symbol ARTNA[4]. - David B. Spacht serves as the Chief Financial Officer of Artesian Resources Corporation[11]. Legal and Compliance - The report is not deemed "filed" under the Securities Exchange Act of 1934, thus limiting liability under that section[6].

Core Insights - Artesian Resources Corporation reported improved earnings for 2024, with a net income of $20.4 million, reflecting a 22.1% increase from 2023 [2][3] - The company invested $45.9 million in infrastructure during 2024 to enhance water and wastewater systems [2][17] Year-End Results - Net income for the year ended December 31, 2024, was $20.4 million, a $3.7 million increase compared to 2023 [2] - Diluted net income per share rose to $1.98 from $1.67 in 2023 [2] - Total revenues reached $108.0 million, marking a $9.1 million increase or 9.2% from the previous year [3] - Water sales revenue increased by $8.0 million, or 10.1%, due to a rate increase and higher consumption [3] Operating Performance - Other utility operating revenue grew by approximately $0.9 million, or 7.7%, driven by increased wastewater revenue [4] - Operating expenses, excluding depreciation and income taxes, rose by $4.1 million, or 7.3% [5] - Utility operating expenses increased by $3.6 million, or 7.8%, mainly due to higher supply, treatment, and payroll costs [5] Fourth Quarter Results - For Q4 2024, net income was $3.9 million, a 10.5% increase from Q4 2023 [11] - Revenues for the quarter totaled $26.8 million, up $2.3 million or 9.4% from the same period in 2023 [12] - Water sales revenue in Q4 increased by $1.9 million, or 9.7%, attributed to a rate increase and more customers [12] Capital Expenditures - The company invested $45.9 million in various infrastructure projects, including upgrades to treatment plants and new equipment [17] - Investments aimed to ensure reliable service and compliance with government mandates [17] Company Overview - Artesian Resources Corporation is a leading provider of water and wastewater services on the Delmarva Peninsula, with a history dating back to 1905 [18] - The company supplies approximately 9.4 billion gallons of water annually to over a third of Delaware's population [18]

Core Insights - Artesian Resources Corporation reported improved earnings for 2024, with a net income of $20.4 million, reflecting a 22.1% increase from 2023 [2][11] - The company invested $45.9 million in infrastructure during 2024 to enhance water and wastewater services [2][17] Year-End Results - Total revenues for 2024 reached $108.0 million, a 9.2% increase compared to 2023 [3] - Water sales revenue increased by $8.0 million, or 10.1%, primarily due to a rate increase effective November 28, 2023, along with higher water consumption and customer growth [3] - Other utility operating revenue rose by approximately $0.9 million, or 7.7%, driven by increased wastewater revenue from a growing customer base [4] Operating Expenses - Operating expenses, excluding depreciation and income taxes, increased by $4.1 million, or 7.3% [5] - Utility operating expenses rose by $3.6 million, or 7.8%, mainly due to higher costs in supply and treatment, payroll, and administrative expenses [5] - Non-utility operating expenses increased by $0.3 million, or 7.1%, attributed to plumbing repair costs and payroll [6] Tax and Other Income - Federal and state income tax expenses increased by $1.0 million, or 15.2%, due to higher pre-tax income and changes in tax regulations [7] - Other income decreased by $0.4 million, primarily due to a reduction in allowance for funds used during construction [9] Fourth Quarter Results - For Q4 2024, net income was $3.9 million, a 10.5% increase compared to Q4 2023 [11] - Revenues for Q4 totaled $26.8 million, a 9.4% increase from the same quarter in 2023 [12] - Water sales revenue in Q4 increased by $1.9 million, or 9.7%, due to the same rate increase and customer growth [12] Capital Expenditures - The company invested $45.9 million in various infrastructure projects in 2024, including upgrades to water treatment facilities and the construction of a new wastewater treatment plant [17] Company Overview - Artesian Resources Corporation is a leading provider of water and wastewater services on the Delmarva Peninsula, supplying 9.4 billion gallons of water annually [18]

Group 1 - Artesian Resources Corporation declared a quarterly dividend of $0.3014, payable on February 21, 2025, to shareholders of record as of February 7, 2025, resulting in an annualized dividend rate of $1.2056 [1] - This marks the 129th consecutive quarterly dividend paid by Artesian to its shareholders [1] Group 2 - Artesian Resources operates as a holding company for subsidiaries providing water and wastewater services on the Delmarva Peninsula [2] - The principal subsidiary, Artesian Water Company, is the oldest and largest regulated water utility in the region, supplying 8.8 billion gallons of water annually through 1,470 miles of water main to over a third of Delaware's population [2]

Group 1 - The article discusses the importance of a company's track record in valuing its shareholders, particularly through dividend investing [1] - It highlights the author's journey in dividend growth investing as a means to achieve financial independence [1] Group 2 - The article does not provide specific financial data or performance metrics related to any companies or industries [2][3] - There are no recommendations or advice regarding investment suitability for particular investors mentioned in the article [2]

Financial Performance - Total operating revenues for the three months ended September 30, 2024, increased to $29,142,000, up from $26,570,000 for the same period in 2023, representing an increase of 9.5%[11] - Water sales for the nine months ended September 30, 2024, reached $66,419,000, compared to $60,294,000 for the same period in 2023, reflecting an increase of 10.1%[11] - Net income applicable to common stock for the three months ended September 30, 2024, was $6,813,000, compared to $5,071,000 for the same period in 2023, marking a growth of 34.4%[11] - Operating income for the nine months ended September 30, 2024, was $20,508,000, up from $16,932,000 for the same period in 2023, representing a rise of 21.0%[11] - Net income for the nine months ended September 2024 was $16,549,000, an increase of 25.5% compared to $13,219,000 for the same period in 2023[12] - Consolidated revenues for the company reached $29,142 million for the quarter ended September 30, 2024, up 9.5% from $26,570 million in the prior year[130] - Consolidated operating income for the quarter was $8,590 million, an increase of 29.0% from $6,661 million in the same quarter of 2023[130] Assets and Liabilities - Total assets as of September 30, 2024, amounted to $796,020,000, an increase from $766,832,000 as of December 31, 2023, indicating a growth of 3.8%[9] - Total current liabilities increased to $28,041,000 as of September 30, 2024, compared to $22,414,000 as of December 31, 2023, reflecting a rise of 25.1%[8] - The carrying amount of the Company's long-term debt as of September 30, 2024, was $179,219,000, with an estimated fair value of $159,649,000[75] - The company reported a balance of $143,789 million in total liabilities as of September 30, 2024, compared to $143,369 million as of December 31, 2023, reflecting a marginal increase of 0.3%[19] Cash Flow and Investments - Cash and cash equivalents increased to $10,703,000 as of September 30, 2024, from $2,505,000 as of December 31, 2023, showing a significant increase of 327.5%[8] - Net cash provided by operating activities for the nine months ended September 2024 was $30,121,000, up from $23,360,000 in the prior year, representing a 28.5% increase[12] - Net cash used in investing activities was $30,313,000 for the nine months ended September 2024, a decrease from $48,762,000 in the prior year, indicating a 37.8% reduction[12] - Cash flows provided by financing activities decreased to $8.4 million for the nine months ended September 30, 2024, compared to $30.6 million for the same period in 2023[185] Earnings and Dividends - Basic earnings per share for the three months ended September 30, 2024, was $0.66, compared to $0.49 for the same period in 2023, an increase of 34.7%[11] - The company declared cash dividends per share of $0.2955 for the three months ended September 30, 2024, compared to $0.2840 for the same period in 2023, an increase of 4.9%[11] - The company declared cash dividends totaling $9,065,000 for the nine months ended September 2024, compared to $8,265,000 in the same period of 2023, reflecting a 9.7% increase[12] Customer and Revenue Growth - Artesian Water served approximately 97,000 customers, Artesian Water Maryland served approximately 2,700 customers, and Artesian Water Pennsylvania served approximately 40 customers[86] - The number of metered water customers in Delaware increased by approximately 1.5% compared to September 30, 2023, while Maryland saw an increase of approximately 2.4%[139] - The number of Delaware wastewater customers increased by approximately 6.4% compared to September 30, 2023[141] - The number of customers enrolled in the WSLP Plan, SSLP Plan, and ISLP Plan increased by 3.3%, 2.4%, and 1.6%, respectively, as of September 30, 2024, compared to September 30, 2023[142] Regulatory and Compliance - The company is involved in multi-district litigation regarding PFAS contamination, with uncertain recovery amounts[120] - Artesian Water's regulatory liabilities include deferred income taxes related to TCJA amounting to $27.8 million as of September 30, 2024[104] - The company filed a request for a revenue increase of approximately $16.7 million, or 22.7%, with the Delaware Public Service Commission, which was partially approved with a final increase of $11.2 million, or 15.2%[140] Capital Expenditures and Investments - Capital expenditures for the nine months ended September 2024 were $30,933,000, a decrease of 36.6% from $48,838,000 in the same period of 2023[12] - The investment in CoBank increased to $6,425,000 as of September 30, 2024, compared to $5,882,000 as of December 2023[90] - The asset purchase contractual obligation related to the acquisition of water operating assets from the Town of Clayton totaled $5.0 million, with $3.4 million paid at closing[190] Operational Efficiency - The ratio of operating expense to total revenue was 51.2% for the three months ended September 30, 2024, down from 53.5% for the same period in 2023[163] - Operating expenses, excluding depreciation and income taxes, increased by $0.7 million, or 4.9%, for the three months ended September 30, 2024[161] - Utility operating expenses increased by $1.8 million, or 5.1%, for the nine months ended September 30, 2024, driven by higher supply and treatment costs[174] Future Outlook - The company anticipates continued growth in its non-utility subsidiaries, primarily driven by Service Line Protection Plans[136] - Artesian Wastewater plans to construct a 625,000 gallon per day regional wastewater treatment facility, enhancing service capabilities and operational efficiencies[149]

Group 1: Earnings Performance - Artesian Resources reported quarterly earnings of $0.66 per share, exceeding the Zacks Consensus Estimate of $0.61 per share, and up from $0.49 per share a year ago, representing an earnings surprise of 8.20% [1] - The company posted revenues of $29.14 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 0.49%, compared to year-ago revenues of $26.57 million [2] - Over the last four quarters, Artesian Resources has surpassed consensus EPS estimates two times and topped consensus revenue estimates three times [2] Group 2: Stock Performance and Outlook - Artesian Resources shares have declined approximately 20% since the beginning of the year, while the S&P 500 has gained 20.1% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the coming quarter is $0.36 on $25 million in revenues, and $1.92 on $106 million in revenues for the current fiscal year [7] Group 3: Industry Context - The Utility - Water Supply industry, to which Artesian Resources belongs, is currently ranked in the top 41% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that tracking these revisions can be beneficial for investors [5] - The estimate revisions trend for Artesian Resources is currently mixed, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6]

Core Points - Artesian Resources Corporation announced a 2% increase in the quarterly common stock dividend, raising it to $0.3014 per share, and a 4% increase for the year, resulting in an annualized dividend rate of $1.2056 per share [1] - The dividend will be payable on November 25, 2024, to shareholders of record as of November 15, 2024 [1] - This marks the 128th consecutive quarterly dividend paid by Artesian Resources Corporation [2] Company Overview - Artesian Resources Corporation operates as a holding company for wholly-owned subsidiaries that provide water and wastewater services on the Delmarva Peninsula [3] - Artesian Water Company, the principal subsidiary, is the oldest and largest regulated water utility on the Delmarva Peninsula, supplying 8.8 billion gallons of water annually through 1,470 miles of water main to over a third of Delaware's population [3]