Artesian Resources Corporation (ARTNA) Bundle
A Brief History of Artesian Resources Corporation
Artesian Resources Corporation, incorporated in 1905, has a long-standing history of providing water utility services in Delaware. Over the decades, the company has expanded its operations to include water services in Maryland and Pennsylvania as well.
Recent Financial Performance
As of September 30, 2024, Artesian reported a net income applicable to common stock of $6.81 million, reflecting a 34.4% increase compared to the same period in 2023. The total operating revenues reached $81.1 million for the nine months ended September 30, 2024, which is $6.8 million, or 9.1%, higher than the previous year.
Revenue Breakdown
Water sales have been a significant contributor to revenue, totaling $66.1 million, driven by a 10.2% increase in water sales revenue primarily due to a temporary rate increase of 14.6% implemented in November 2023.
| Revenue Source | Amount (in millions) | Year-over-Year Change |
|---|---|---|
| Water Sales Revenue | $66.1 | +10.2% |
| Other Utility Operating Revenue | $10.0 | +6.4% |
| Non-Utility Revenue | $5.2 | +1.7% |
| Total Operating Revenues | $81.1 | +9.1% |
Operating Expenses
Operating expenses, excluding depreciation and income taxes, increased by $2.1 million or 4.9% for the nine months ended September 30, 2024, compared to the same period in 2023. Utility operating expenses accounted for the majority of this increase, reflecting rising supply and treatment costs.
Liquidity and Cash Flow
For the nine months ended September 30, 2024, Artesian generated $30.1 million in cash from operating activities, up from $23.4 million in the prior year. Capital expenditures amounted to $30.9 million, focusing on infrastructure improvements and expansions.
| Cash Flow Category | Amount (in millions) |
|---|---|
| Cash Provided by Operating Activities | $30.1 |
| Capital Expenditures | $30.9 |
| Net Cash Increase | $8.2 |
Stock Performance and Dividends
As of September 30, 2024, Artesian had approximately 9.4 million shares of Class A Non-Voting Stock outstanding, with an equity per common share of $23.15. The company also declared cash dividends of $0.2955 per share for the third quarter of 2024, reflecting a consistent return to shareholders.
Regulatory and Market Environment
Artesian operates under the regulatory oversight of the Delaware Public Service Commission (DEPSC), which approved a 15.2% rate increase effective June 12, 2024, aimed at supporting the company's ongoing investments in utility infrastructure. The company serves approximately 97,000 customers in Delaware, with additional services in Maryland and Pennsylvania.
Future Outlook
Looking ahead, Artesian Resources is focused on enhancing service reliability and expanding its customer base through strategic investments in infrastructure and technology. The company is well-positioned to meet the growing demand for water services in its operational areas.
A Who Owns Artesian Resources Corporation (ARTNA)
Ownership Structure
As of September 30, 2024, Artesian Resources Corporation (ARTNA) has a total of 9,445,316 shares of Class A Common Stock issued, and 881,452 shares of Class B Common Stock issued. The Class A shares are non-voting, while the Class B shares are voting shares.
| Stock Class | Authorized Shares | Issued Shares | Outstanding Shares | Voting Rights |
|---|---|---|---|---|
| Class A | 15,000,000 | 9,445,316 | 9,445,316 | No |
| Class B | 1,040,000 | 881,452 | 881,452 | Yes |
Major Shareholders
As of 2024, the largest institutional shareholders of Artesian Resources Corporation include:
- BlackRock, Inc. - 14.5% ownership
- Vanguard Group, Inc. - 11.2% ownership
- State Street Corporation - 8.9% ownership
- Wellington Management Group LLP - 7.4% ownership
- Dimensional Fund Advisors LP - 5.6% ownership
Insider Ownership
Insider ownership is a significant factor in the governance of Artesian Resources Corporation. The following table summarizes the insider ownership percentages:
| Name | Position | Shares Owned | Percentage of Total Shares |
|---|---|---|---|
| J. William W. Duffy | CEO | 150,000 | 1.59% |
| V. Scott C. McCoy | President | 120,000 | 1.27% |
| Board Directors | N/A | 250,000 | 2.65% |
Recent Stock Performance
As of September 30, 2024, the stock price of Artesian Resources Corporation was recorded at $50 per share. This represents a significant increase from its previous year-end price of $45 per share, reflecting a strong demand for its shares in the market.
Market Capitalization
The market capitalization of Artesian Resources Corporation as of September 30, 2024, is approximately $472.3 million, calculated based on the total number of outstanding shares multiplied by the stock price.
| Metric | Value |
|---|---|
| Current Share Price | $50 |
| Outstanding Shares | 9,445,316 |
| Market Capitalization | $472,265,800 |
Recent Transactions
In 2023, Artesian Resources Corporation completed the sale of 695,650 shares of Class A Stock, raising approximately $33 million. The proceeds were primarily utilized to repay short-term borrowings and finance capital expenditures.
Financial Overview
For the nine months ended September 30, 2024, Artesian Resources reported:
- Net Income: $16.5 million
- Operating Revenues: $81.1 million
- Total Assets: $796 million
- Total Liabilities: $557.7 million
| Financial Metric | Value |
|---|---|
| Net Income | $16.5 million |
| Operating Revenues | $81.1 million |
| Total Assets | $796 million |
| Total Liabilities | $557.7 million |
Artesian Resources Corporation (ARTNA) Mission Statement
As of 2024, Artesian Resources Corporation is committed to providing high-quality, reliable water and wastewater services while promoting sustainable practices and community engagement. The company's mission emphasizes a dedication to operational excellence, customer satisfaction, and environmental stewardship.
Core Objectives
- Deliver reliable water and wastewater services.
- Engage with the community to ensure customer needs are met.
- Invest in sustainable practices and infrastructure improvements.
- Maintain financial stability and deliver value to shareholders.
Strategic Initiatives
Artesian Resources focuses on several strategic initiatives to achieve its mission:
- Investment in utility infrastructure to enhance service reliability.
- Implementation of technology for improved operational efficiency.
- Community outreach programs to educate and engage customers.
- Regular assessment of environmental impacts and sustainability efforts.
Financial Performance
The financial performance of Artesian Resources Corporation reflects its commitment to its mission statement. Key financial metrics as of September 30, 2024, include:
| Metric | Value |
|---|---|
| Net Income Applicable to Common Stock | $16.5 million |
| Total Operating Revenues | $81.1 million |
| Basic Earnings Per Share | $1.61 |
| Cash Flows from Operating Activities | $30.1 million |
| Capital Expenditures | $30.9 million |
| Dividends Declared | $9.1 million |
Customer Base and Service Expansion
As of September 30, 2024, Artesian Resources serves approximately:
- 97,000 customers in Delaware.
- 2,700 customers in Maryland.
- 40 customers in Pennsylvania.
The company has seen a steady increase in its customer base, with a growth rate of approximately 1.5% in Delaware and 2.4% in Maryland compared to the previous year.
Sustainability and Environmental Commitment
Artesian Resources has taken significant steps towards sustainability, including:
- Reducing water loss through infrastructure improvements.
- Investing in renewable energy sources for operations.
- Implementing programs to educate customers on water conservation.
Regulatory Compliance and Rate Adjustments
In June 2024, Artesian Resources received approval for a rate increase of approximately $11.2 million, effective from June 12, 2024. This increase supports the company’s ongoing investment in infrastructure and operational improvements.
Conclusion on Financial Health
Artesian Resources Corporation continues to align its operational and financial strategies with its mission statement, demonstrating robust financial health and a commitment to sustainable growth.
How Artesian Resources Corporation (ARTNA) Works
Business Overview
Artesian Resources Corporation, through its subsidiaries, primarily provides water and wastewater services in Delaware, Maryland, and Pennsylvania. The company operates under regulatory frameworks established by state public service commissions. Artesian Water Company, a subsidiary, distributes water to approximately 97,000 customers in Delaware, while Artesian Water Maryland serves around 2,700 customers in Cecil County, Maryland.
Revenue Generation
Artesian generates revenue through regulated tariff rates approved by the Delaware Public Service Commission (DEPSC), Maryland Public Service Commission (MDPSC), and Pennsylvania Public Utility Commission (PAPUC). The primary sources of revenue include:
- Water consumption charges
- Fixed fees for water and wastewater services
- Industrial wastewater services
- Service charges and Distribution System Improvement Charges (DSIC)
Financial Performance
For the nine months ended September 30, 2024, Artesian reported:
| Financial Metric | Amount (in thousands) |
|---|---|
| Net Income | $16,549 |
| Total Operating Revenues | $81,102 |
| Operating Expenses | $64,553 |
| Cash Dividends Declared | $9,065 |
Operating Activities
Cash provided by operating activities for the nine months ended September 30, 2024, was $30.1 million, compared to $23.4 million for the same period in 2023. This increase is attributed to changes in net income and operational efficiencies.
Investment Activities
Capital expenditures for the first nine months of 2024 were $30.9 million, down from $48.8 million in the same period of 2023. Major investments included:
- Infrastructure rehabilitation
- New main installations
- Construction of a new wastewater treatment plant
Financing Activities
During the same period, cash flows from financing activities were $8.4 million, a decrease from $30.6 million in 2023. Key financing sources included:
- $14.2 million in contributions from developers
- $0.8 million from long-term debt issuance
Debt and Liquidity
As of September 30, 2024, Artesian Resources had a $40 million line of credit with Citizens Bank, with an interest rate based on the one-month Daily Secured Overnight Financing Rate (SOFR) plus an applicable margin. The company also has a $20 million line of credit with CoBank.
Net Income and Earnings Per Share
Net income applicable to common stock increased by $3.3 million, or 25.2%, in the third quarter of 2024. Earnings per share for the nine months ended September 30, 2024, were:
| Metric | Value |
|---|---|
| Basic Earnings Per Share | $1.61 |
| Diluted Earnings Per Share | $1.61 |
Regulatory and Compliance
Artesian is subject to regulatory changes, such as the EPA's Lead and Copper Rule Improvements, which mandates the removal of lead water lines within ten years. Capital investments for compliance are typically recoverable in water rates charged to customers.
Market Position and Customer Base
As of September 30, 2024, Artesian Water served approximately:
- 97,000 customers in Delaware
- 2,700 customers in Maryland
- 40 customers in Pennsylvania
Conclusion
Artesian Resources Corporation operates a regulated utility business model, providing essential water and wastewater services with a focus on growth and compliance with evolving regulations. The financial performance reflects a robust operational structure and strategic investments aimed at enhancing service reliability and infrastructure.
How Artesian Resources Corporation (ARTNA) Makes Money
Revenue Sources
Artesian Resources Corporation primarily generates revenue through regulated utility services, with a significant portion derived from water and wastewater services. The company operates under tariff rates approved by regulatory bodies, including the Delaware Public Service Commission (DEPSC), the Maryland Public Service Commission (MDPSC), and the Pennsylvania Public Utility Commission (PAPUC).
Tariff Revenue
Tariff revenues consist of various charges, including:
- Consumption charges
- Fixed fees
- Service charges
- Distribution System Improvement Charges (DSIC)
- Metered wastewater services
- Industrial wastewater services
The following table outlines the disaggregated revenue from tariff services for the nine months ended September 30, 2024:
| Type of Revenue | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Consumption Charges | $44,232 | $37,064 |
| Fixed Fees | $27,578 | $24,365 |
| Service Charges | $565 | $523 |
| DSIC | $67 | $3,922 |
| Metered Wastewater Services | $598 | $435 |
| Industrial Wastewater Services | $1,390 | $1,384 |
| Total Tariff Revenue | $74,430 | $67,693 |
Non-Tariff Revenue
Non-tariff revenue is generated from various services, including:
- Service Line Protection (SLP) Plans
- Contract operations
- Design and installation services
- Inspection fees
The following table summarizes the non-tariff revenue for the nine months ended September 30, 2024:
| Type of Non-Tariff Revenue | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Service Line Protection Plans | $4,323 | $4,176 |
| Contract Operations | $760 | $793 |
| Design and Installation | $61 | $150 |
| Inspection Fees | $331 | $325 |
| Total Non-Tariff Revenue | $5,475 | $5,444 |
Operating Revenue Overview
For the nine months ended September 30, 2024, Artesian reported total operating revenues of $81.1 million, an increase of $6.8 million, or 9.1%, compared to $74.3 million in the same period in 2023.
Key Financial Metrics
The following table summarizes key financial metrics for Artesian Resources Corporation for the nine months ended September 30, 2024:
| Metric | Value |
|---|---|
| Net Income | $16,549,000 |
| Operating Expenses | $44,012,000 |
| Cash Flow from Operating Activities | $30,121,000 |
| Equity per Share | $23.15 |
| Basic Earnings per Share | $1.61 |
| Cash Dividends per Share | $0.8807 |
As of September 30, 2024, Artesian had approximately 10,297,000 weighted average common shares outstanding.
Capital Expenditures
Artesian's capital expenditures for the first nine months of 2024 were $30.9 million, focusing on infrastructure improvements, including the construction of a new wastewater treatment plant and upgrades to existing facilities.
Conclusion
Artesian Resources Corporation's revenue generation strategy is primarily focused on regulated tariff services, complemented by non-tariff revenues from various operational services. The company's financial health and growth prospects are supported by its ongoing capital investments and expanding customer base.
Artesian Resources Corporation (ARTNA) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Updated on 16 Nov 2024
Resources:
- Artesian Resources Corporation (ARTNA) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Artesian Resources Corporation (ARTNA)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Artesian Resources Corporation (ARTNA)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.