ARTNA 8-K
Artesian Resources Corp (ARTNA)
8-K
2025-05-06
For: 2025-05-05
View Original
Added on
April 06, 2026
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): May 5, 2025
(Exact name of registrant as specified in its charter)
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(State or other jurisdiction
of incorporation) |
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(Commission
File Number) |
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(IRS Employer
Identification No.) |
(Address of principal executive offices, including zip code)
(302 ) 453-6900
(Registrant's telephone number, including area code)
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following
provisions (see General Instruction A.2. below):
Securities registered pursuant to Section 12(b) of the Securities Exchange Act of 1934:
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Title of each class
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Trading Symbol(s)
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Name of each exchange on which registered
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act
of 1934 (§240.12b-2 of this chapter):
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards
provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition
On May 5, 2025, Artesian Resources Corporation (“Artesian Resources” or the “Company”) issued a press release announcing its earnings for the quarter
ended March 31, 2025. The press release is attached as Exhibit 99.1 and is incorporated herein by reference. The information furnished pursuant to this Item 2.02, including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the
Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities under that Section and shall not be deemed to be incorporated by reference into any filing of the Company under the Securities Act of 1933 or the Exchange
Act.
Item 9.01 Financial Statements and Exhibits
(d)Exhibits
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Exhibit Number:
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Title:
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Press release regarding earnings for the quarter ended March 31, 2025, issued on May 5, 2025, by Artesian Resources
Corporation.
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104
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Cover Page Interactive Data File (formatted as Inline XBRL).
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Exhibit 99.1 is intended to be deemed furnished rather than filed pursuant to General Instruction B.2. of Form 8-K.
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Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
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ARTESIAN RESOURCES CORPORATION
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May 6, 2025
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By:
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/s/ David B. Spacht
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David B. Spacht
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Chief Financial Officer
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Artesian Resources Corporation Reports First Quarter 2025 Results
First Quarter Results
Net income for the three months ended March 31, 2025 was $5.4 million, a $1.0 million, or 23.2%, increase compared to net income recorded during the three
months ended March 31, 2024. Diluted net income per share increased 23.0% to $0.53, compared to $0.43 for the same period in 2024.
“Our strong financial results for the quarter are the result of our commitment to superior service to all customers and continued focus on managing
increasing cost pressures associated with meeting more stringent water quality standards,” said Nicki Taylor, President and CEO.
Revenues totaled $25.9 million for the three months ended March 31, 2025, $1.3 million, or 5.5%, more than revenues for the three months ended March 31,
2024.
Water sales revenue increased $0.9 million, or 4.3%, primarily due to an increase in overall water consumption, a
1.66% Distribution System Improvement Charge applied to Delaware customer water bills effective January 1, 2025 and an increase in the number of customers served.
Other utility operating revenue increased approximately $0.3 million, or 11.4%, primarily due to an increase in
wastewater revenue associated with an increase in the number of customers served.
Non-utility operating revenue increased approximately $0.1 million, or 8.0%, primarily due to an increase in Service
Line Protection Plan, or SLPP, revenue.
Operating expenses, excluding depreciation and income taxes, increased $0.5 million, or 3.1%. Utility operating expenses increased $0.4 million, or 3.1%,
primarily the result of increased costs associated with administrative costs and purchased power and purchased water costs, partially offset by a decrease in supply and treatment costs and payroll and employee benefit costs.
Other income increased $0.2 million, primarily due to an increase in allowance for funds used during construction, or AFUDC, as a result of higher
long-term construction activity subject to AFUDC.
On April 4, 2025, our wholly-owned Delaware water utility subsidiary, Artesian
Water Company, Inc. (Artesian Water), filed a request with the Delaware Public Service Commission, or the DEPSC, to implement new rates to meet a requested
incremental increase in revenue of 10.75%, or approximately $9.4 million, on an annualized basis. The new rates are designed to support Artesian Water’s ongoing capital improvement program and to cover increased costs of operations, including
chemicals and electricity for water treatment, water quality regulation compliance, taxes, labor and benefits. Artesian Water has petitioned the DEPSC to implement a temporary incremental increase in rates of 1.22% effective June 3, 2025,
providing approximately $1.2 million in additional annual revenue. In April 2025, Artesian Water entered into an electric supply
contract with Constellation NewEnergy, Inc., effective from May 2025 to May 2029, that included an increase of approximately 25% over the current electric supply rate. The contracted rates will also apply to our wholly-owned wastewater utility
subsidiary, Artesian Wastewater Management, Inc. The total estimated annual increase in electric supply expense beginning in May 2025 is approximately $0.5 million.
“Although we are reporting strong first quarter results, the significant increase in electric supply costs upon the expiration of the
previous 3-year contract term and increased costs to treat for PFAS, as well as continued investments in utility plant to maintain reliable and safe service to customers compel the request for rate relief,” said Taylor.
Capital Expenditures
As part of Artesian’s ongoing effort to ensure high-quality reliable service to customers, $10.4 million was invested in the first three months of 2025
in water and wastewater infrastructure projects. These investments include renewals associated with the rehabilitation of aging infrastructure, installation of new mains, upgrading elevated storage tanks, upgrading and replacing our meter reading
equipment, construction of a new wastewater treatment plant and upgrading existing pumping stations to better serve our customers.
About Artesian Resources
Artesian Resources Corporation operates as a holding company of wholly-owned subsidiaries offering water and wastewater services, and a number of other
related core business services, on the Delmarva Peninsula. Artesian Water Company, the principal subsidiary, is the oldest and largest regulated water utility on the Delmarva Peninsula and has been providing water service since 1905. Artesian
Water Company supplies 9.4 billion gallons of water per year through 1,491 miles of main to over a third of Delawareans.
Forward Looking Statements
This release contains forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 regarding, among other
things, recovery of investments in water utility plant and increased operating costs in rates charged to customers as presented in our current filing before the Delaware Public Service Commission, the costs related to electric supply increases, the
impact of weather on our operations, our growth strategy, our expectations regarding infrastructure investments, our enhanced operational efficiencies, and continued growth in our business and the number of customers served. These statements
involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such forward-looking statements including: changes in weather, changes in our contractual obligations, changes in government
policies, the timing and results of our rate requests, failure to receive regulatory approval, changes in economic and market conditions generally and other matters discussed in our filings with the Securities and Exchange Commission. While the
Company may elect to update forward-looking statements, we specifically disclaim any obligation to do so and you should not rely on any forward-looking statement as representation of the Company’s views as of any date subsequent to the date of this
release.
Contact:
Virginia Eisenbrey
(302) 453-6900
