Business
Artesian Resources Corporation Reports First Quarter 2023 Results
NEWARK, Del., May 09, 2023 (GLOBE NEWSWIRE) -- Artesian Resources Corporation (Nasdaq: ARTNA), a leading provider of water and wastewater services, and a
About this update from Artesian Resources Corporation
[{"type":"text","content":"NEWARK, Del., May 09, 2023 (GLOBE NEWSWIRE) -- Artesian Resources Corporation (Nasdaq: ARTNA), a leading provider of water and wastewater services, and a number of other related business services, on the Delmarva Peninsula, today announced that revenues for the first quarter of 2023 were $22.5 million, a $0.3 million, or 1.4% increase, compared to revenues recorded during the same period of 2022. Our net income applicable to common stock decreased $0.8 million, or 17.4%. Diluted net income per share decreased 17.0% to $0.39 for the three months ended March 31, 2023 compared to $0.47 for the first quarter of 2022. “Revenues of our principal water utility business are typically at base levels in the first quarter of the year, with peak water consumption occurring during the warmer summer months. Earnings in the first quarter this year were significantly impacted by continuing inflationary pressures, increased depreciation expense, increased short-term interest rates, and certain non-recurring expenses. On April 28, 2023, for the first time in nine years, we filed a request for an increase in base rates for our Delaware water customers. The rate filing seeks recovery of the significant necessary investments made in utility plant since our last filing in 2014, as well as recognition of increased operating costs,” said Nicki Taylor, President of Artesian Water Company, Inc. (“Artesian Water”), the principal subsidiary of Artesian Resources Corporation. Application for Increase in Customer Rates On April 28, 2023, Artesian Water filed a request with the Delaware Public Service Commission to implement new rates to meet a requested increase in revenue of 23.84%, or approximately $17.5 million, on an annualized basis. The new rates support Artesian Water’s ongoing robust capital improvement program and would recognize increased costs of operations, including those associated with treatment chemicals, electricity, water quality testing, fuel, labor and employee benefits. The rate application recognizes additional capital financing invested in utility plant and our reduced weighted cost of debt since our last comprehensive application for an increase in base rate charges filed in 2014. In accordance with applicable Delaware law, Artesian Water is permitted to implement temporary rates at certain times during the regulatory review process. ...