Fri, May 9, 5:34 PM (3 days ago)
**Artesian Resources Corporation (ARTNA) Q1 2025 Financial Performance Summary** **Financial Health and Performance:** Artesian Resources Corporation (ARTNA) reported a strong Q1 2025, with total operating revenues increasing by 5.5% to $25.9 million, driven by growth in water sales, DSIC revenue, and customer base expansion. Net income applicable to common stock rose by 23.2% to $5.4 million, reflecting effective cost management and strategic investments. **Revenue and Profit Margins:** - **Total Operating Revenues:** $25.9 million, up 5.5% from Q1 2024. - **Water Sales Revenue:** Increased by 4.3% due to higher water consumption, DSIC revenue, and customer growth. - **Operating Expenses:** Rose by 3.1% to $20.3 million, with increases in administrative and purchased power costs offset by decreases in supply and treatment costs. - **Net Income:** Increased by 23.2% to $5.4 million, driven by higher revenues and effective cost management. **Cash Flow:** - **Operating Activities:** Provided $11.0 million in cash, down from $12.6 million in Q1 2024 due to lower material and supplies, income taxes receivable, and accounts receivables. - **Investing Activities:** Capital expenditures were $10.4 million, focused on infrastructure improvements and expansions. - **Financing Activities:** Provided $2.0 million, primarily from contributions and advances from developers. **Earnings Changes and Quarterly Performance:** - **Earnings per Share (EPS):** Basic and diluted EPS increased to $0.53 from $0.43 in Q1 2024. - **Cash Dividends:** Paid $3.1 million, reflecting a consistent dividend policy. **Trends and Uncertainties:** - **Customer Growth:** Continued expansion in Delaware and Maryland, with increases in metered water and wastewater customers. - **Regulatory Proceedings:** Ongoing rate increase requests and DSIC applications to support capital investments and operational costs. - **Environmental Compliance:** Investments in PFAS treatment and compliance with the Lead and Copper Rule Improvements. **Future Operations and Impact:** - **Capital Investments:** Planned capital improvements over the next three years to support infrastructure expansion and regulatory compliance. - **Strategic Initiatives:** Focus on expanding water and wastewater services, strategic partnerships, and contract operations to drive growth. - **Risk Management:** Mitigation strategies for interest rate and commodity price fluctuations, along with fixed-rate supply contracts to control costs. **Conclusion:** Artesian Resources Corporation demonstrated robust financial performance in Q1 2025, with significant revenue growth, effective cost management, and strategic investments. The company's focus on customer growth, regulatory compliance, and infrastructure expansion positions it well for future success. However, ongoing regulatory proceedings and market uncertainties may impact financial outcomes.