Artesian Resources(US:ARTNA)2024-11-08 17:55Financial 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]