Wed, Mar 26, 7:40 PM (34 days ago)
### Summary of Artesian Resources Corporation (ARTNA) 2024 Annual Report **Financial Performance:** - **Revenue:** $108.0 million, up 9.2% from 2023. - **Net Income:** $20.4 million, a 22.1% increase. - **Earnings per Share (EPS):** $1.98, up from $1.67 in 2023. - **Operating Expenses:** $81.8 million, a 7.3% increase. - **Depreciation and Amortization:** $13.6 million, a 2.2% increase. **Strategic Overview:** - **Growth Strategy:** Focus on expanding water, wastewater, and Service Line Protection (SLP) Plan services across the Delmarva Peninsula. - **Market Position:** Largest investor-owned public water utility on the Delmarva Peninsula. - **Regulatory Environment:** Subject to regulations by the Delaware Public Service Commission (DEPSC), Maryland Public Service Commission (MDPSC), and Pennsylvania Public Utility Commission (PAPUC). **Future Outlook:** - **Capital Expenditures:** $46.4 million projected for 2025. - **Debt Obligations:** $11.6 million in interest and principal payments due in 2025. - **Growth Opportunities:** Expansion in Delaware and Cecil County, Maryland. **Risk Factors:** - **Operational Risks:** Dependence on suppliers, aging infrastructure, and potential terrorist attacks. - **Financial Risks:** Dependence on capital for expansion, interest rate fluctuations, and regulatory uncertainty. - **Environmental Risks:** Climate change impacts, water quality standards, and environmental regulations. **Financial Condition:** - **Liquidity:** $36.8 million in cash provided by operating activities in 2024. - **Debt:** $176.5 million in long-term debt, with compliance with financial covenants. - **Cash Flow:** Positive cash flow from operations, with investments in utility plant and equipment. **Market Position Changes:** - **Customer Base:** 97,400 water customers and 8,600 wastewater customers as of December 31, 2024. - **Service Territory:** Expansion in Delaware and Cecil County, Maryland. **Regulatory Proceedings:** - **Rate Increases:** Approved rate increases to cover increased operating expenses and investments. - **DSIC Rates:** Approved DSIC rates for specific infrastructure improvements. **Dividends:** - **Dividend History:** Consistent dividend payments, with $1.18 per share paid in 2024. **Stock Performance:** - **Stock Price:** $31.36 per share as of March 20, 2025. - **Market Capitalization:** $318.9 million for Class A Non-Voting Common Stock and $9.1 million for Class B Common Stock. **Management and Governance:** - **Executive Compensation:** Aligned with performance and strategic objectives. - **Board Composition:** Majority independent directors, with a focus on strategic oversight. **Environmental and Social Governance (ESG):** - **Sustainability:** Focus on water quality, infrastructure maintenance, and regulatory compliance. - **Community Engagement:** Active in local communities and industry associations. **Conclusion:** Artesian Resources Corporation demonstrated strong financial performance in 2024, with significant revenue growth and increased net income. The company's strategic focus on expansion and regulatory compliance positions it well for future growth. However, it faces operational, financial, and environmental risks that could impact its financial condition and market position. The company's strong liquidity, compliance with financial covenants, and positive cash flow from operations provide a solid foundation for continued growth and investment in utility plant and equipment.