Artesian Resources Corporation ARTNA reported fourth-quarter 2014 earnings of 24 cents per share, up 41.2% from 17 cents a year ago. The upside was primarily driven by higher operating revenues and a decline in non-utility operating expenses.
For 2014, the company’s earnings came in at $1.07 per share compared with 94 cents in 2013. The improvement in water sales revenues and lower legal expenses primarily led to the 13.8% rise in the bottom line.
Revenues
In the fourth quarter, Artesian Resources’ total operating revenue increased around 7% year over year to $18.08 million, primarily on the back of higher water sales (7.7%), other utility operating revenues (2.3%) and non-utility operating revenues (2%).
The company’s total operating revenue at 2014-end rose 4.9% to $72.47 million from $69.07 million a year ago.
Quarterly Highlights
In the quarter under review, Artesian Resources operating expenses stood at $14.2 million, up around 4% year over year primarily due to higher utility operating expenses, depreciation and amortization, and state and federal income taxes.
The company’s operating income in the reported quarter was $3.9 million, up 19.6% from a year ago.
The company incurred $1.78 million as interest charges, up from $1.76 million in the prior-year quarter.
Business Update
In 2014, Artesian Resources concluded 11 water main renewal projects, the first stage of a hydraulic upgrade project in the Christiana and Churchmans Crossing area of New Castle County, DE, and the rehabilitation of the 1950’s era Castle Hills water treatment plant in northern New Castle County.
In addition, the company set up an ultraviolet advanced oxidation treatment facility at its Llangollen facility in New Castle County.
Financial Update
As of Dec 31, 2014, Artesian Resources had current assets of $16.6 million versus $13.3 million as of Dec 31, 2013.
Long-term debt (net of current portion), as of Dec 31, 2014, was around $105 million, down from $105.5 million as of Dec 31, 2013.
In the 2014, the company invested $23.7 million in infrastructure development projects and upgrading existing systems.
A Glance at its Peers
American Water Works Company, Inc. AWK reported fourth-quarter 2014 adjusted earnings from continuing operations of 52 cents per share, which beat the Zacks Consensus Estimate by a penny.
Aqua America Inc. WTR reported fourth-quarter 2014 earnings per share of 28 cents, a penny above the Zacks Consensus Estimate.
The York Water Company YORW reported fourth-quarter 2014 earnings of 28 cents per share, up 33.3% from 21 cents a year ago.
Zacks Rank
Artesian Resources currently has a Zacks Rank #3 (Hold).
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