Artesian Resources Corporation Reports Third Quarter Results

         Artesian Resources Corporation Reports Third Quarter Results

PR Newswire

NEWARK, Del., Nov. 7, 2012

NEWARK, Del., Nov. 7, 2012 /PRNewswire/ --Artesian Resources Corporation
(Nasdaq: ARTNA), a leading provider of water, wastewater and related services
on the Delmarva Peninsula, today announced that net income for the third
quarter of 2012 was $2.8 million, an increase of $0.6 million or 27.2%
compared to the same period last year. Diluted net income per share increased
to $0.33 for the third quarter of 2012 from $0.26 for the same period last
year. Net revenues for the third quarter of 2012 were $19.0 million, a $1.3
million or 7.2 % increase for the same three-month period of 2011.

Operating expenses, excluding depreciation and income taxes, for the third
quarter of 2012 increased by 6.9% to $10.6 million, compared to $10.0 million
for the same period in 2011. The increase was primarily due to higher payroll
and employee benefit costs. The ratio of operating expense, excluding
depreciation and income taxes, to total revenue fell slightly to 56.0% for the
three months ended September 30, 2012, compared to 56.2% for the same time
period of 2011.

Through the first nine months of 2012, Artesian posted net income of $8.1
million, a $3.1 million increase over the same period of 2011. Diluted net
income per common share was $0.93 through the first nine months of 2012
compared to $0.63 during the same period last year. Revenues during the first
nine months of 2012 grew by 9.4% to $53.6 million while operating expense,
excluding depreciation and income taxes, was flat at $29.9 million.

"We recorded strong revenue growth through the first nine months of 2012. We
attribute this growth to the addition of over 1,900 customers in Delaware and
Maryland and to the rate relief we were granted late last year that enabled us
to recover millions of dollars invested in needed system improvements that we
completed over the previous three years," said Dian Taylor, Chair, President
and CEO. "In addition, last year we experienced record rainfall in the third
quarter from multiple tropical storms, which impacted water consumption and
contributed to depressed earnings."

"We continue to strengthen our position as the primary water and wastewater
resource for developers and communities throughout the Delmarva Peninsula
seeking to fill both needs simultaneously," Taylor said. "At the same time, we
remain focused on providing superior service to our customers while seeking
ways to improve our efficiency and performance."

Artesian increased investment in its infrastructure during the first nine
months of 2012 to $14.8 million, a 37.1% increase over capital expenditures
made during the same period of 2011. The investments were made to replace
aging mains, enhance or improve existing treatment facilities, rehabilitate
pumping equipment and fund other projects that will enable Artesian to better
serve its customers. Artesian is nearing completion of the installation of a
needed water main in the Cherry Hill area of Cecil County, Maryland. The new
main will provide service to a W.L. Gore facility and two Cecil County public
schools.

Other year-to-date highlights include:

  oMore than 9,200 customers, about 11.2%, have enrolled in Artesian's newly
    instituted free electronic billing service. Enrolled customers have secure
    access to their water bills as well as free online payment options.
  oThe company's Water Service Line Protection Plan and Sewer Service Line
    Protection Plan continue to be popular with 25.1% and 14.7% of eligible
    customers participating, respectively.

About Artesian Resources
Artesian Resources Corporation operates as the holding company of eight
wholly-owned subsidiaries offering water, wastewater and related services on
the Delmarva Peninsula. Artesian Water Company, the principal subsidiary, is
the oldest and largest investor-owned public water utility on the Delmarva
Peninsula and has been providing water service since 1905.



Artesian Resources Corporation
Condensed Consolidated Statement of Operations
(In thousands, except per share amounts)
(Unaudited)
                                       Three months ended    Nine months ended
                                       September 30,         September 30,
                                       2012        2011      2012       2011
Operating Revenues
Water sales                          $ 17,353    $ 15,921  $ 48,597   $ 43,520
Other utility operating revenue        719         751       2,166      2,208
Non-utility operating revenue          929         1,058     2,848      3,269
                                       19,001      17,730    53,611     48,997
Operating Expenses
Utility operating expenses             9,155       8,313     25,391     24,527
Non-utility operating expenses         515         709       1,562      2,424
Depreciation and amortization          1,957       1,897     5,880      5,530
State and federal income taxes         1,904       1,505     5,435      3,459
Property and other taxes               975         939       2,965      2,882
                                       14,506      13,363    41,233     38,822
Operating Income                       4,495       4,367     12,378     10,175
Allowance for funds used during        133         67        253        140
construction
Miscellaneous                          (36)        (387)     748        185
Income Before Interest Charges         4,592       4,047     13,379     10,500
Interest Charges                       1,746       1,809     5,280      5,500
Net Income                          $ 2,846     $ 2,238   $ 8,099    $ 5,000
 Weighted Average Common Shares      8,681       8,547     8,653      7,960
Outstanding - Basic
 Net Income per Common Share -     $ 0.33      $ 0.26    $ 0.94     $ 0.63
Basic
 Weighted Average Common Shares      8,752       8,579     8,699      8,000
Outstanding - Diluted
 Net Income per Common Share -     $ 0.33      $ 0.26    $ 0.93     $ 0.63
Diluted



Artesian Resources Corporation
Condensed Consolidated Balance Sheet
(In thousands)
(Unaudited)
                                       September 30,  December 31,
                                       2012           2011
Assets
Utility Plant, at original cost less
accumulated depreciation               $   362,611    $   353,397
Current Assets                             13,738         13,250
Regulatory and Other Assets                12,004         12,090
                                       $   388,353    $   378,737
Capitalization and Liabilities
Stockholders' Equity                   $   115,826    $   112,997
Long Term Debt, Net of Current Portion     105,729        106,539
Current Liabilities                        27,165         24,660
Net Advances for Construction              13,530         14,405
Contributions in Aid of Construction       79,552         77,306
Other Liabilities                          46,551         42,830
                                       $   388,353    $   378,737



SOURCE Artesian Resources Corporation

Website: http://www.artesianwater.com
Contact: Nicholle Taylor, Investor Relations - Artesian Resources Corporation,
+1-302-453-6900, ntaylor@artesianwater.com