NEWARK, Del., Aug. 5, 2011 /PRNewswire/ -- Artesian Resources Corporation (Nasdaq: [ ARTNA ]), a leading provider of water, wastewater and engineering services on the Delmarva Peninsula, today announced that revenues for the second quarter of 2011 were $16.5 million, a 3.2% increase from the $16.0 million in revenues recorded for the second quarter of 2010.

Net income for the quarter was $1.8 million, while diluted net income per share was $0.23.

On July 20, Artesian raised $15 million from a public offering of 804,290 shares of the Company's Class A Non-Voting Common Stock. Artesian used the proceeds to repay short term borrowings previously incurred primarily to finance its water utility plant and equipment construction program.

"Our investors continue to show great confidence in the future of Artesian and our ability to generate sound returns," said Artesian President and CEO Dian C. Taylor. "Maintaining a safe, reliable water system requires significant and continuous investment in our infrastructure. We believe our ability to attract investors and raise money through capital markets enables us to maintain our systems at the lowest possible cost to our customers."

In the first six months of 2011, Artesian invested $6.6 million in capital expenditures to enhance or improve existing treatment facilities, upgrade meter reading equipment and replace aging mains, among other projects.

"We installed additional treatment for water systems in Hockessin, Delaware, and other areas as part of our ongoing commitment to stay ahead of increasingly stringent water quality standards," Taylor said.

The increase in operating revenues during the second quarter was driven by strong water sales, including sales to neighboring water utilities. Water sales rose by 5.6% compared to the same period of 2010, representing 88.9% of revenues. Operating expenses, excluding depreciation and income taxes, grew 4.1% to $9.8 million, compared to the second quarter of 2010, primarily as a result of increased payroll and benefits costs.

During the quarter, Cecil County, Maryland, received a favorable ruling from the Maryland Court of Appeals allowing the county to proceed with the sale of its water and wastewater facilities to Artesian. Artesian is now progressing towards closing on the agreements by year end, subject to approval by the Maryland Public Service Commission. Artesian has made a significant investment in Cecil County over the last several years to provide water and wastewater infrastructure in the county's designated growth area.

About Artesian Resources

Artesian Resources Corporation operates as the holding company of eight wholly-owned subsidiaries offering water, wastewater and engineering services on the Delmarva Peninsula. Artesian Water Company, the principal subsidiary, is the oldest and largest investor-owned public water utility on the Delmarva Peninsula and has been providing water service since 1905. Artesian Water distributes and sells water to residential, commercial, industrial, governmental, municipal and utility customers. Other subsidiaries include Artesian Water Maryland, Inc., Artesian Water Pennsylvania, Inc., Artesian Wastewater Management, Inc., Artesian Wastewater Maryland, Inc., Artesian Utility Development, Inc., Artesian Consulting Engineers, Inc., and Artesian Development Company.

Artesian Resources Corporation
Condensed Consolidated Statement of Operations
(In thousands, except per share amounts)
(Unaudited)

		Three months ended				Six months ended
		June 30,				June 30,
		2011		2010		2011		2010
Operating Revenues
Water sales	$	14,683	$	13,909	$	27,598	$	26,804
Other utility operating revenue		711		714		1,458		1,333
Non-utility revenue		1,116		1,380		2,211		2,850
		16,510		16,003		31,267		30,987

Operating Expenses
Utility operating expenses		8,136		7,466		16,214		14,834
Non-utility operating expenses		775		958		1,715		1,976
Depreciation and amortization		1,823		1,723		3,633		3,454
State and federal income taxes		1,260		1,209		1,954		2,326
Property and other taxes		928		1,027		1,944		1,990
		12,922		12,383		25,460		24,580

Operating Income		3,588		3,620		5,807		6,407

Allowance for funds used during construction		38		24		73		67
Miscellaneous		(25)		(44)		572		567

Income Before Interest Charges		3,601		3,600		6,452		7,041

Interest Charges		1,848		1,802		3,690		3,597

Net Income	$	1,753	$	1,798	$	2,762	$	3,444

Weighted Average Common Shares Outstanding - Basic		7,672		7,539		7,662		7,526
Net Income per Common Share - Basic	$	0.23	$	0.24	$	0.36	$	0.46

Weighted Average Common Shares Outstanding - Diluted		7,714		7,607		7,706		7,595
Net Income per Common Share - Diluted	$	0.23	$	0.24	$	0.36	$	0.45

Artesian Resources Corporation
Condensed Consolidated Balance Sheet
(In thousands)
(Unaudited)

	June 30,		December 31,
	2011		2010
Assets
Utility Plant, at original cost less
accumulated depreciation	$	348,251	$	345,383
Current Assets		11,339		14,033
Regulatory and Other Assets		12,223		12,113
	$	371,813	$	371,529

Capitalization and Liabilities

Stockholder’s Equity	$	95,705	$	95,146
Long Term Debt, Net of Current Portion		106,729		105,061
Current Liabilities		38,253		41,885
Advances for Construction		15,832		16,159
Contributions in Aid of Construction		74,962		74,531
Other Liabilities		40,332		38,747
	$	371,813	$	371,529

SOURCE Artesian Resources Corporation

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Artesian Resources Corporation Reports Second Quarter Results

Artesian Resources Corporation Reports Second Quarter Results