Artesian Resources(ARTNA) - 2025 Q3 - Quarterly Report

Financial Performance - Total operating revenues for the three months ended September 30, 2025, increased to $30,491,000, up 4.6% from $29,142,000 in the same period of 2024[12] - Net income applicable to common stock for the nine months ended September 30, 2025, rose to $18,687,000, representing a 12.9% increase from $16,549,000 in 2024[12] - Operating income for the nine months ended September 30, 2025, was $22,019,000, an increase of 7.3% from $20,508,000 in 2024[12] - Net income for the third quarter of 2025 was reported at $6,962,000, representing an increase of 10.8% compared to $6,813,000 in the previous quarter[18] - Consolidated revenues for the three months ended September 30, 2025, totaled $30,491 thousand, an increase from $29,142 thousand in the same period of 2024[125] - Artesian's total operating revenue for the nine months ended September 30, 2025, was $84.926 million, an increase from $81.102 million in the same period of 2024, representing a growth of approximately 3.5%[56] Cash and Assets - Cash and cash equivalents at the end of the period decreased to $705,000 from $1,147,000 at the end of 2024, reflecting a decrease of 38.5%[16] - Total assets increased to $833,908,000 as of September 30, 2025, compared to $798,623,000 as of December 31, 2024, marking a growth of 4.4%[9] - The total retained earnings as of September 30, 2025, reached $94,214,000, an increase from $84,969,000 as of December 31, 2024, indicating a growth of 10.5%[18] - As of September 30, 2025, net accounts receivable decreased to $8,161,000 from $11,339,000 in December 31, 2024, reflecting a decline of approximately 28.5%[62] - The carrying amount of long-term debt as of September 30, 2025, was $176,885,000, with an estimated fair value of $157,065,000, reflecting a difference primarily due to interest rate variations[69] Revenue Sources - Water sales for the three months ended September 30, 2025, were $24,837,000, up 3.1% from $24,092,000 in the same period of 2024[12] - Tariff revenue for the three months ended September 30, 2025, was $27.803 million, compared to $26.876 million in 2024, reflecting an increase of about 3.4%[56] - Non-tariff revenue for the nine months ended September 30, 2025, reached $6.218 million, up from $5.475 million in 2024, indicating a growth of approximately 13.5%[56] - Industrial wastewater services revenue for the nine months ended September 30, 2025, was $1.464 million, compared to $1.390 million in 2024, marking an increase of about 5.3%[56] - Service line protection plan revenue for the three months ended September 30, 2025, was $1.643 million, up from $1.468 million in 2024, reflecting a growth of about 11.9%[56] Stockholder Information - Total stockholders' equity increased to $248,843,000 as of September 30, 2025, compared to $239,189,000 as of December 31, 2024, reflecting a growth of 4.0%[9] - The company declared cash dividends per share of common stock at $0.3074 for the three months ended September 30, 2025, compared to $0.2955 in 2024, an increase of 6.4%[12] - Cash dividends declared for the third quarter of 2025 amounted to $3,169,000, consistent with the previous quarter's dividend[18] - The balance of additional paid-in capital as of September 30, 2025, was $144,316,000, reflecting an increase from $143,920,000 as of December 31, 2024[18] Operational Highlights - The company operates wastewater treatment facilities with a combined capacity of approximately 3.8 million gallons per day, serving the Town of Middletown under a 20-year contract[28] - The company’s subsidiaries include regulated entities providing water and wastewater services across Delaware, Maryland, and Pennsylvania, contributing to its overall revenue[22][24][25] - The company continues to focus on operational efficiency and cost management to support its growth strategy in both regulated and non-regulated segments[127] Regulatory and Compliance - Artesian Water requested a revenue increase of approximately $16.7 million, or 22.7%, which was approved as a temporary rate increase of approximately $10.8 million, or 14.6%, effective November 28, 2023[109] - A settlement agreement approved on June 12, 2024, authorized a total revenue increase of $11.2 million, or approximately 15.2%, effective from that date[109] - The company has a deferred income tax regulatory liability of $26.518 million as of September 30, 2025, reflecting adjustments from the Tax Cuts and Jobs Act[102] Future Outlook - The company is preparing for the adoption of new accounting standards regarding income tax disclosures, effective for fiscal years beginning after December 15, 2024, which will require additional disclosures but is not expected to impact operations or cash flows[128] - The company plans to enhance its non-utility businesses, which include service line protection plans and engineering services, although these do not meet the quantitative thresholds for reportable segments[127]