Artesian Resources(ARTNA) - 2025 Q1 - Quarterly Report

Financial Performance - Total operating revenues for the three months ended March 31, 2025, increased to $25,886,000, up 5.5% from $24,544,000 in the same period of 2024[15] - Net income applicable to common stock for Q1 2025 was $5,435,000, representing a 23.2% increase compared to $4,411,000 in Q1 2024[15] - Basic net income per common share rose to $0.53 in Q1 2025, up from $0.43 in Q1 2024, reflecting a 23.3% increase[15] - Operating income for Q1 2025 was $5,546,000, a 17.5% increase from $4,719,000 in Q1 2024[15] - Regulated Utility revenues for the three months ended March 31, 2025, were $24,045 thousand, up from $22,840 thousand in 2024, representing an increase of approximately 5.3%[116] - Consolidated revenues for the three months ended March 31, 2025, totaled $25,886 thousand, compared to $24,544 thousand in 2024, reflecting a growth of about 5.4%[116] Cash and Assets - Cash and cash equivalents at the end of Q1 2025 were $3,707,000, compared to $9,503,000 at the end of Q1 2024, indicating a decrease of 61.0%[19] - Total assets as of March 31, 2025, were $808,852,000, an increase of 1.5% from $798,623,000 as of December 31, 2024[13] - Total stockholders' equity increased to $241,650,000 as of March 31, 2025, up from $239,189,000 at the end of 2024, reflecting a growth of 1.0%[12] Expenditures and Dividends - Capital expenditures for Q1 2025 were $10,398,000, compared to $8,922,000 in Q1 2024, representing an increase of 16.5%[17] - Cash dividends per share of common stock increased to $0.3014 in Q1 2025 from $0.2897 in Q1 2024, marking a rise of 4.9%[15] - Cash dividends declared for common stock in the first quarter of 2025 totaled $3,104,000, compared to $2,980,000 in the first quarter of 2024, indicating a growth of about 4.2%[22] Revenue Sources - Tariff revenue increased to $23.386 million in Q1 2025, up from $22.369 million in Q1 2024, driven by a rise in consumption charges and industrial wastewater services[57] - Non-tariff revenue rose to $2.060 million in Q1 2025, compared to $1.828 million in Q1 2024, with significant contributions from service line protection plans and inspection fees[57] - The company recognized $1.4 million in revenue from deferred tariff revenue and $0.4 million from deferred non-tariff revenue during the three months ended March 31, 2025[58] Customer Base and Services - Artesian Water Company continues to expand its services, providing water to various customer segments across Delaware, including residential and commercial[26] - The company served approximately 97,700 customers in Delaware, 2,700 customers in Maryland, and 40 customers in Pennsylvania as of March 31, 2025[82] - The company operates wastewater treatment facilities with a combined capacity of approximately 3.8 million gallons per day, supporting environmental sustainability initiatives[32] Regulatory and Compliance - The company is committed to maintaining compliance with regulatory accounting standards as prescribed by relevant public service commissions[39] - Artesian Water's revenue requirement increase approved by DEPSC is $11.2 million annually, approximately 15.2%, effective June 12, 2024[101] - A temporary rate increase of $10.8 million, or 14.6%, was implemented on November 28, 2023, subject to refund[101] Liabilities and Debt - The carrying amount of the company's long-term debt is $178,213,000, with an estimated fair value of $159,926,000[72] - Regulatory liabilities amounted to $29.975 million as of March 31, 2025, a decrease from $30.267 million on December 31, 2024[97] - The deferred income tax regulatory liability related to the Tax Cuts and Jobs Act is $27,167,000, reflecting a decrease from $27,492,000[97] Other Financial Metrics - Cash flows from operating activities for Q1 2025 were $10,958,000, down from $12,594,000 in Q1 2024, a decrease of 12.9%[17] - Accounts receivable totaled $10.433 million as of March 31, 2025, down from $11.682 million at the end of 2024, with a provision for expected credit loss of $351,000[63] - The investment in CoBank increased to $6,889,000 as of March 31, 2025, from $6,425,000 as of December 31, 2024[85]