Server: Microsoft-IIS/3.0 Date: Thu, 18 Dec 1997 21:59:19 GMT Content-Type: text/html Accept-Ranges: bytes Last-Modified: Thu, 20 Nov 1997 16:10:17 GMT Set-Cookie: EGSOFT_ID=128.2.209.145-820874768.29166592; expires=Fri, 31-Dec-2010 00:00:00 GMT; path=/ Content-Length: 15595 Quarterly report

1997

Third Quarter

Report

We are pleased to report that Artesian Resources Corporation recorded an increase in net income of approximately 25% from $453,192 to $564,224 for the third quarter of 1997. Earnings per share for the third quarter were $0.32 compared to $0.26 per share in the same period of 1996. For the nine months ended September 30, Artesian's net income was $1.25 million compared to $1.26 million for the same period last year. Earnings per share for the first nine months of 1997 were $0.70 per share compared to $0.90 per share for the same period of 1996.

On August 26, the Delaware Public Service Commission (PSC) approved a rate increase of approximately $248,000 in additional annual revenue. This rate relief was specifically directed toward recovering costs associated with government-mandated highway relocation projects.

In the months ahead the PSC will consider Artesian Water's general request for rate relief, filed on October 3. The request, if granted, would increase customer rates by approximately 26% and result in $5.6 million in additional annual revenue. Temporary rates will likely go into effect on or about December 3, resulting in approximately $2.5 million in additional annual revenue. A final decision on Artesian's request is currently anticipated by late Summer 1998.

Since Artesian's last full rate increase in 1995, the Company has invested more than $24 million in infrastructure. Artesian's request for increase rates s for those water system improvements which include drilling new wells and constructing new treatment facilities, upgrading water mains, relocating mains due to government-mandated road improvements and constructing additional storage tanks.

The $24 million in capital improvements also has been consistent with Artesian's goal to become self-sufficient in supply. In the last five years, Artesian has gone far in achieving that foal by securing more than 14.2 million gallons a day in additional well water supply. We have also identified more that 13.2 million gallons a day in supply which we plan to access as demand requires. The assurance of a long-term, high-quality water supply to met the needs of all our customers-with a primary focus on self supply-is of paramount importance to Artesian.

Artesian continues to successfully expand our franchise service territory. We recently completed the acquisition of the Cat Hill and Whites Haven Water Companies located near South Bethany Beach. The new venture not only marks Artesian's arrival in Sussex County, but it also establishes Artesian as a public water supplier in al three Counties in Delaware.. In addition, Artesian will be providing water service to the resident=s of the Town of South Bethany. These developments provide Artesian with the opportunity to serve an additional 2,000 customers in the South Bethany area.

Artesian's ability to keep pace with Delaware's steady economic development can be attributed to our strategic planning over the past five years. Our course for the future has been set, and we will continue to develop appropriate resources to meet the needs associated with the industrial, commercial and residential growth, as it occurs. We also invite you to visit Artesian's new web site at www.artesianwater.com. You are a valued investor, and your support is greatly appreciated.

 


Dian C. Taylor
President & CEO
Chair of the Board

Condensed Consolidated Statement of Income

  For the Three Months Ended September 30,
  1997 1996
Operating Revenues $5,863,332 $5,284,858
Earnings applicable to Common Stockholders $564,224 $453,192
Per Share Earnings Applicable to Common Stockholders $0.32 $0.26
Dividends Per Share of Common Stock $0.23 $0.23
Average Shares of Common Stock Outstanding 1,775,223 1,743,644
  For the Nine Months Ended September 30,
  1997 1996
Operating Revenues $16,393,172 $15,619,280
Earnings applicable to Common Stockholders $1,246,063 $1,258,158
Per Share Earnings Applicable to Common Stockholders $0.70 $0.90
Dividends Per Share of Common Stock $0.69 $0.67
Average Shares of Common Stock Outstanding 1,779,406 1,390,847

Condensed Consolidated Balance Sheet

  September 30, 1997 December 31, 1996
Assets (Unaudited)  
Utility Plant, at original cost less accumulated depreciation $94,080,380 $88,993,073
Current Assets 6,390,631 5,359,463
Regulatory and Other Assets 4,992,357 5,355,617
 
  $105,463,368 $99,708,153
 

 

Capitalization and Liabilities    
Stockholders' Equity $26,756,472 $26,584,183
Long Term Debt, Net of Current Portion 32,133,095 26,258,977
Current Liabilities 4,821,306 5,650,617
Advances for Construction 19,327,516 19,079,822
Contributions in Aid of Construction 19,675,811 19,350,356
Other Liabilities 2,749,168 2,784,198
 
  $105,463,368 $99,708,153
 

 

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