Artesian Resources Corp 8-K, filed Mar 26, 2025
Artesian Resources Corp (ARTNA)
8-K
2025-03-26
For: 2025-03-25
View Original
Added on
April 06, 2026
About this 8-K
Artesian Resources Corp filed this 8-K on March 26, 2025, reporting on events of March 25, 2025.
Items reported
- Item 2.02: Financial results
- Item 9.01: Financial statements and exhibits
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): March 25, 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 March 25, 2025, Artesian Resources Corporation (“Artesian Resources” or the “Company”) issued a press release announcing its earnings for the fourth
quarter and year ended December 31, 2024. 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 fourth quarter and year ended December 31, 2024, issued on March 25, 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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March 26, 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 2024 Year-End Earnings and Fourth Quarter Results
Newark, Delaware, March 25, 2025 – Artesian Resources Corporation (Nasdaq: ARTNA), a leading provider on the Delmarva Peninsula of water and wastewater services, and a number of other related business services,
today announced earnings results for the fourth quarter and year ended December 31, 2024.
“I am pleased to report improved earnings in 2024 as we remain focused on critical investments in infrastructure
and managing costs,” stated President and CEO, Nicholle Taylor. “In 2024 alone we invested $45.9 million in infrastructure, as we remain committed to providing customers with water and wastewater systems that are resilient and protective of public
health and the environment.”
Year-End Results
Net income for the year ended December 31, 2024 was $20.4 million, a $3.7 million, or 22.1%, increase compared
to net income recorded during the year ended December 31, 2023. Diluted net income per share was $1.98 compared to $1.67 for the same period in 2023.
Revenues totaled $108.0 million for the twelve months ended December 31, 2024, $9.1
million, or 9.2%, more than revenues for the twelve months ended December 31, 2023.
Water sales revenue increased $8.0 million, or 10.1%, primarily due to a rate increase
placed into effect on November 28, 2023. In addition, there was an increase in overall water consumption and an increase in the number of customers served.
Other utility operating revenue increased approximately $0.9 million, or 7.7%. This increase is 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 1.7%, primarily due to an increase in
Service Line Protection Plan, or SLP Plan, revenue.
Operating expenses, excluding depreciation and income taxes, increased $4.1 million, or 7.3%. Utility operating
expenses rose $3.6 million, or 7.8%, primarily the result of increases associated with supply and treatment, payroll and employee benefits, administrative, and transmission, distribution and collection systems costs.
Non-utility operating expenses increased $0.3 million, or 7.1%, primarily due to an
increase in plumbing repair costs associated with the SLP Plans and an increase in payroll and employee benefits costs.
Depreciation and amortization expense increased $0.3 million, or 2.2%, primarily due to continued investment
in utility plant providing supply, treatment, storage and distribution of water to customers and service to our wastewater customers.
Federal and state income tax expense increased $1.0 million, or 15.2%, primarily due to
higher pre-tax income, lower state net operating loss valuation allowance, and higher regulatory deferred income tax amortization in 2024 compared to 2023.
Property and other taxes increased $0.2 million, or 3.6%, primarily due to an increase in New
Castle County, Delaware tax rates on utility plant and an increase in utility plant subject to taxation. Property taxes are assessed on land, buildings and certain utility plant, which include the footage and size of pipe, hydrants and wells.
Other income decreased $0.4 million, primarily due to a decrease in allowance for funds used during construction,
or AFUDC, as a result of lower long-term construction activity subject to AFUDC for the twelve months ended December 31, 2024 compared to the same period in 2023.
Interest charges decreased $0.4 million, primarily due to a decrease in short-term debt
interest related to lower borrowing levels on the Company’s lines of credit.
“Our 2024 financial results benefitted from settlement with the Delaware Public Service Commission of our 2023
rate filing to recover investments in water utility plant made over the prior nine years,” stated CFO, David Spacht. “However, on- going needed investments in infrastructure and rising costs, such as for energy and water treatment, continue to
pressure our operating margins. The continued provision of reliable service and clean water to our customers is expected to necessitate timely filing for and recovery of needed investments in utility plant and increasing operational costs in rates.”
Fourth Quarter Results
Net income was $3.9 million, a $0.4 million, or 10.5%, increase compared to net income
recorded for the three months ended December 31, 2023. Diluted net income per share was $0.37 compared to $0.34 for the same period in 2023.
Revenues totaled $26.8 million for the three months ended December 31, 2024, $2.3 million, or 9.4%, more than
revenues for the three months ended December 31, 2023.
Water sales revenue increased $1.9 million, or 9.7%, primarily due to a rate increase
placed into effect on November 28, 2023. In addition, there was an increase in overall water consumption and an increase in the number of customers served.
Other utility operating revenue increased approximately $0.4 million, or 11.4%. This increase is primarily due
to an increase in wastewater revenue associated with an increase in the number of customers served.
Operating expenses, excluding depreciation and income taxes, increased $2.0 million, or 14.1%. Utility
operating expenses rose $1.8 million, or 15.5%, primarily the result of increases associated with payroll and employee benefits, supply and treatment, transmission, distribution and collection systems and administrative costs.
Non-utility operating expenses increased $0.2 million, or 15.4%, primarily due to an
increase in plumbing repair costs associated with the SLP Plans and an increase in payroll and employee benefits costs.
Federal and state income tax expense increased $0.1 million, or 11.9%, primarily due to
higher pre-tax income, state net operating loss valuation allowance, and regulatory deferred income tax amortization in 2024 compared to 2023.
Other income increased $0.3 million, primarily due to an increase in AFUDC as a result of
higher long-term construction activity subject to AFUDC.
Capital Expenditures
As part of Artesian’s ongoing effort to ensure high-quality reliable service to customers, $45.9 million was
invested in water and wastewater infrastructure projects during 2024. These investments included relocation of facilities as a result of government mandates, renewals associated with the rehabilitation of aging infrastructure, installation of new
main, upgrading elevated storage tanks, purchase of new transportation equipment, upgrading and replacing 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, timely filing for and recovery of our investments in utility plant and increasing operating costs in rates, the continued ability of our water and wastewater systems to be
resilient and protective of public health and the environment, 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
VEisenbrey@artesianwater.com
