Delaware | 51-0002090 |
-------------------------------------------------------------------- | ------------------------------------------------- |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification Number) |
Securities registered pursuant to Section 12(b) of the Act: | ||
Title of each class | Trading Symbol (s) | Name of each exchange on which registered |
Common Stock | ARTNA | The Nasdaq Stock Market |
☑ | Yes | □ | No |
☑ | Yes | □ | No |
Large Accelerated Filer □ | Accelerated Filer ☐ | Non-accelerated Filer ☑ | Smaller Reporting Company ☒ | Emerging Growth Company ☐ |
☐ | Yes | ☑ | No |
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Signatures |
ASSETS | June 30, 2021 | December 31, 2020 | June 30, 2022 | December 31, 2021 | ||||||||||||
Utility plant, at original cost (less accumulated depreciation 2021 - $ 153,894; and 2020 - $147,469) | $ | 577,126 | $ | 559,561 | ||||||||||||
Utility plant, at original cost (less accumulated depreciation - 2022 - $172,261; 2021 - $159,385) | $ | 639,513 | $ | 590,431 | ||||||||||||
Current assets | ||||||||||||||||
Cash and cash equivalents | 369 | 28 | 220 | 92 | ||||||||||||
Accounts receivable (less allowance for doubtful accounts 2021 - $591; 2020 - $862) | 9,728 | 10,162 | ||||||||||||||
Accounts receivable (less allowance for doubtful accounts - 2022 - $466; 2021 - $429) | 8,114 | 8,367 | ||||||||||||||
Income tax receivable | 70 | 629 | 766 | 2,234 | ||||||||||||
Unbilled operating revenues | 1,765 | 1,166 | 2,149 | 1,080 | ||||||||||||
Materials and supplies | 1,467 | 1,535 | 2,869 | 1,933 | ||||||||||||
Prepaid property taxes | 0 | 1,891 | 21 | 2,306 | ||||||||||||
Prepaid expenses and other | 2,962 | 2,208 | 2,792 | 2,652 | ||||||||||||
Total current assets | 16,361 | 17,619 | 16,931 | 18,664 | ||||||||||||
Other assets | ||||||||||||||||
Non-utility property (less accumulated depreciation - 2021 - $902; 2020 - $865) | 3,759 | 3,796 | ||||||||||||||
Non-utility property (less accumulated depreciation - 2022 - $956; 2021 - $919) | 3,759 | 3,751 | ||||||||||||||
Other deferred assets | 5,759 | 5,309 | 7,116 | 5,097 | ||||||||||||
Operating lease right of use assets | 450 | 460 | 445 | 451 | ||||||||||||
Total other assets | 9,968 | 9,565 | 11,320 | 9,299 | ||||||||||||
Regulatory assets, net | 6,516 | 6,473 | 6,314 | 6,321 | ||||||||||||
Total Assets | $ | 609,971 | $ | 593,218 | $ | 674,078 | $ | 624,715 | ||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||||
Stockholders' equity | ||||||||||||||||
Common stock | $ | 9,400 | $ | 9,357 | $ | 9,459 | $ | 9,414 | ||||||||
Preferred stock | 0 | 0 | 0 | 0 | ||||||||||||
Additional paid-in capital | 104,453 | 103,463 | 105,984 | 104,989 | ||||||||||||
Retained earnings | 58,007 | 56,606 | 65,459 | 63,607 | ||||||||||||
Total stockholders' equity | 171,860 | 169,426 | 180,902 | 178,010 | ||||||||||||
Long-term debt, net of current portion | 143,286 | 142,333 | 173,597 | 143,259 | ||||||||||||
315,146 | 311,759 | 354,499 | 321,269 | |||||||||||||
Current liabilities | ||||||||||||||||
Lines of credit | 25,693 | 26,813 | 9,580 | 26,703 | ||||||||||||
Current portion of long-term debt | 1,618 | 1,757 | 1,996 | 1,591 | ||||||||||||
Dividends payable | 2,581 | 0 | ||||||||||||||
Accounts payable | 6,991 | 6,341 | 8,576 | 10,206 | ||||||||||||
Accrued expenses | 5,160 | 4,283 | 3,748 | 4,038 | ||||||||||||
Dividends payable | 2,454 | 0 | ||||||||||||||
Overdraft payable | 508 | 105 | 334 | 30 | ||||||||||||
Accrued interest | 905 | 930 | 896 | 917 | ||||||||||||
Income taxes payable | 2,390 | 28 | 792 | 0 | ||||||||||||
Customer and other deposits | 2,335 | 2,064 | 2,394 | 2,273 | ||||||||||||
Other | 1,695 | 1,403 | 2,593 | 1,448 | ||||||||||||
Total current liabilities | 49,749 | 43,724 | 33,490 | 47,206 | ||||||||||||
Commitments and contingencies | 0 | 0 | 0 | 0 | ||||||||||||
Deferred credits and other liabilities | ||||||||||||||||
Net advances for construction | 4,277 | 4,578 | 4,174 | 4,295 | ||||||||||||
Operating lease liabilities | 427 | 432 | 440 | 440 | ||||||||||||
Regulatory liabilities | 21,411 | 21,681 | 21,632 | 21,260 | ||||||||||||
Deferred investment tax credits | 464 | 473 | 447 | 456 | ||||||||||||
Deferred income taxes | 47,249 | 50,313 | 52,701 | 53,133 | ||||||||||||
Total deferred credits and other liabilities | 73,828 | 77,477 | 79,394 | 79,584 | ||||||||||||
Net contributions in aid of construction | 171,248 | 160,258 | 206,695 | 176,656 | ||||||||||||
Total Liabilities and Stockholders’ Equity | $ | 609,971 | $ | 593,218 | $ | 674,078 | $ | 624,715 |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||||||||||||||||||||||
For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||
Operating revenues | ||||||||||||||||||||||||||||||||
Water sales | $ | 20,078 | $ | 19,423 | $ | 37,908 | $ | 36,816 | $ | 19,722 | $ | 20,078 | $ | 37,865 | $ | 37,908 | ||||||||||||||||
Other utility operating revenue | 1,107 | 1,084 | 2,574 | 2,336 | 2,914 | 1,014 | 5,440 | 2,390 | ||||||||||||||||||||||||
Non-utility operating revenue | 1,377 | 1,245 | 2,815 | 2,501 | 2,375 | 1,377 | 3,893 | 2,815 | ||||||||||||||||||||||||
Total Operating Revenues | 22,562 | 21,752 | 43,297 | 41,653 | 25,011 | 22,469 | 47,198 | 43,113 | ||||||||||||||||||||||||
Operating expenses | ||||||||||||||||||||||||||||||||
Utility operating expenses | 9,754 | 9,359 | 19,350 | 18,593 | 10,070 | 9,661 | 20,566 | 19,166 | ||||||||||||||||||||||||
Non-utility operating expenses | 862 | 733 | 1,777 | 1,462 | 1,905 | 862 | 2,847 | 1,777 | ||||||||||||||||||||||||
Depreciation and amortization | 2,976 | 2,693 | 5,988 | 5,445 | 3,055 | 2,976 | 6,140 | 5,988 | ||||||||||||||||||||||||
State and federal income taxes | 1,542 | 1,537 | 2,893 | 2,896 | 1,725 | 1,542 | 3,144 | 2,893 | ||||||||||||||||||||||||
Property and other taxes | 1,341 | 1,306 | 2,761 | 2,672 | 1,413 | 1,341 | 2,914 | 2,761 | ||||||||||||||||||||||||
Total Operating Expenses | 16,475 | 15,628 | 32,769 | 31,068 | 18,168 | 16,382 | 35,611 | 32,585 | ||||||||||||||||||||||||
Operating income | 6,087 | 6,124 | 10,528 | 10,585 | 6,843 | 6,087 | 11,587 | 10,528 | ||||||||||||||||||||||||
Other income, net | ||||||||||||||||||||||||||||||||
Allowance for funds used during construction (AFUDC) | 371 | 338 | 615 | 762 | 324 | 371 | 505 | 615 | ||||||||||||||||||||||||
Miscellaneous (expense) income | (59 | ) | (13 | ) | 1,343 | 1,075 | (33 | ) | (59 | ) | 1,412 | 1,343 | ||||||||||||||||||||
Income before interest charges | 6,399 | 6,449 | 12,486 | 12,422 | 7,134 | 6,399 | 13,504 | 12,486 | ||||||||||||||||||||||||
Interest charges | 1,894 | 1,883 | 3,775 | 3,782 | 2,088 | 1,894 | 3,975 | 3,775 | ||||||||||||||||||||||||
Net income applicable to common stock | $ | 4,505 | $ | 4,566 | $ | 8,711 | $ | 8,640 | $ | 5,046 | $ | 4,505 | $ | 9,529 | $ | 8,711 | ||||||||||||||||
Income per common share: | ||||||||||||||||||||||||||||||||
Basic | $ | 0.48 | $ | 0.49 | $ | 0.93 | $ | 0.93 | $ | 0.53 | $ | 0.48 | $ | 1.01 | $ | 0.93 | ||||||||||||||||
Diluted | $ | 0.48 | $ | 0.49 | $ | 0.93 | $ | 0.92 | $ | 0.53 | $ | 0.48 | $ | 1.01 | $ | 0.93 | ||||||||||||||||
Weighted average common shares outstanding: | ||||||||||||||||||||||||||||||||
Basic | 9,395 | 9,326 | 9,381 | 9,311 | 9,452 | 9,395 | 9,438 | 9,381 | ||||||||||||||||||||||||
Diluted | 9,425 | 9,367 | 9,416 | 9,357 | 9,470 | 9,425 | 9,464 | 9,416 | ||||||||||||||||||||||||
Cash dividends per share of common stock | $ | 0.2610 | $ | 0.2496 | $ | 0.5181 | $ | 0.4992 | $ | 0.2729 | $ | 0.2610 | $ | 0.5404 | $ | 0.5181 |
For the Six Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||||||
2021 | 2020 | 2022 | 2021 | |||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||||||||||
Net income | $ | 8,711 | $ | 8,640 | $ | 9,529 | $ | 8,711 | ||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||||
Depreciation and amortization | 5,988 | 5,445 | 6,140 | 5,988 | ||||||||||||
Deferred income taxes, net | (3,073 | ) | (1,766 | ) | (640 | ) | (3,073 | ) | ||||||||
Stock compensation | 92 | 90 | 104 | 92 | ||||||||||||
AFUDC, equity portion | (415 | ) | (508 | ) | (349 | ) | (415 | ) | ||||||||
Changes in assets and liabilities: | ||||||||||||||||
Changes in assets and liabilities, net of acquisitions: | ||||||||||||||||
Accounts receivable, net of allowance for doubtful accounts | 434 | (1,278 | ) | 204 | 434 | |||||||||||
Income tax receivable | 559 | 19 | 1,468 | 559 | ||||||||||||
Unbilled operating revenues | (599 | ) | (548 | ) | (704 | ) | (599 | ) | ||||||||
Materials and supplies | 68 | (254 | ) | (936 | ) | 68 | ||||||||||
Prepaid property taxes | 1,891 | 1,952 | 2,862 | 1,891 | ||||||||||||
Prepaid expenses and other | (754 | ) | (407 | ) | (130 | ) | (754 | ) | ||||||||
Other deferred assets | (467 | ) | (425 | ) | 511 | (467 | ) | |||||||||
Regulatory assets | (71 | ) | 165 | 185 | (71 | ) | ||||||||||
Regulatory liabilities | (297 | ) | (323 | ) | (254 | ) | (297 | ) | ||||||||
Income tax payable | 2,362 | 4,497 | 792 | 2,362 | ||||||||||||
Accounts payable | 650 | (3,323 | ) | (4,680 | ) | (1,071 | ) | |||||||||
Accrued expenses | 877 | (110 | ) | (934 | ) | (124 | ) | |||||||||
Accrued interest | (25 | ) | 78 | (21 | ) | (25 | ) | |||||||||
Deposits and other | 567 | (107 | ) | 441 | 567 | |||||||||||
NET CASH PROVIDED BY OPERATING ACTIVITIES | 16,498 | 11,837 | 13,588 | 13,776 | ||||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||||||||||
Capital expenditures (net of AFUDC, equity portion) | (22,140 | ) | (16,952 | ) | (23,266 | ) | (19,418 | ) | ||||||||
Investment in acquisitions | 0 | (3,632 | ) | |||||||||||||
Investment in acquisitions, net of cash acquired | (6,341 | ) | 0 | |||||||||||||
Proceeds from sale of assets | 15 | 34 | 41 | 15 | ||||||||||||
NET CASH USED IN INVESTING ACTIVITIES | (22,125 | ) | (20,550 | ) | (29,566 | ) | (19,403 | ) | ||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||||||||||
Net (repayments) borrowings under lines of credit agreements | (1,120 | ) | 7,235 | |||||||||||||
Net (repayments) under lines of credit agreements | (17,123 | ) | (1,120 | ) | ||||||||||||
Deferred debt issuance cost | (102 | ) | 0 | |||||||||||||
Increase in overdraft payable | 403 | 182 | 304 | 403 | ||||||||||||
Net advances and contributions in aid of construction | 9,786 | 5,711 | 8,013 | 9,786 | ||||||||||||
Net proceeds from issuance of common stock | 941 | 886 | 936 | 941 | ||||||||||||
Issuance of long-term debt | 1,720 | 0 | 30,000 | 1,720 | ||||||||||||
Dividends paid | (4,856 | ) | (4,644 | ) | (5,096 | ) | (4,856 | ) | ||||||||
Principal repayments of long-term debt | (906 | ) | (880 | ) | (826 | ) | (906 | ) | ||||||||
NET CASH PROVIDED BY FINANCING ACTIVITIES | 5,968 | 8,490 | 16,106 | 5,968 | ||||||||||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 341 | (223 | ) | |||||||||||||
NET INCREASE IN CASH AND CASH EQUIVALENTS | 128 | 341 | ||||||||||||||
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | 28 | 596 | 92 | 28 | ||||||||||||
CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ | 369 | $ | 373 | $ | 220 | $ | 369 | ||||||||
Non-cash Investing and Financing Activity: | ||||||||||||||||
Utility plant received as construction advances and contributions | $ | 2,334 | $ | 619 | $ | 3,243 | $ | 2,334 | ||||||||
Dividends declared but not paid | 2,454 | 2,330 | 2,581 | 2,454 | ||||||||||||
Amounts included in accounts payable and accrued payables related to capital expenditures | 1,761 | 2,723 | ||||||||||||||
Supplemental Disclosures of Cash Flow Information: | ||||||||||||||||
Interest paid | $ | 3,800 | $ | 3,704 | $ | 3,996 | $ | 3,800 | ||||||||
Income taxes paid | $ | 3,248 | $ | 360 | $ | 743 | $ | 3,248 | ||||||||
Purchase price of allocation of investment in acquisitions: | ||||||||||||||||
Preliminary purchase price of allocation of investment in acquisitions: | ||||||||||||||||
Utility plant | $ | 0 | $ | 3,009 | $ | 28,335 | $ | 0 | ||||||||
Other deferred assets/goodwill | 0 | 623 | ||||||||||||||
Total investment in acquisitions | $ | 0 | $ | 3,632 | ||||||||||||
Cash | 280 | 0 | ||||||||||||||
Other assets | 3,580 | 0 | ||||||||||||||
Total assets | 32,195 | 0 | ||||||||||||||
Less: | ||||||||||||||||
Liabilities | 3,536 | 0 | ||||||||||||||
Future contractual obligation payable to seller | 1,569 | 0 | ||||||||||||||
Contributions in aid of construction | 20,469 | 0 | ||||||||||||||
Cash paid for acquisition | 6,621 | 0 | ||||||||||||||
Cash received from acquisition | 280 | 0 | ||||||||||||||
Net cash paid for acquisition | $ | 6,341 | $ | 0 |
Common Shares Outstanding Class A Non-Voting (1) (3) (4) | Common Shares Outstanding Class B Voting (2) | $1 Par Value Class A Non-Voting | $1 Par Value Class B Voting | Additional Paid-in Capital | Retained Earnings | Total | Common Shares Outstanding Class A Non-Voting (1) (3) (4) | Common Shares Outstanding Class B Voting (2) | $1 Par Value Class A Non-Voting | $1 Par Value Class B Voting | Additional Paid-in Capital | Retained Earnings | Total | |||||||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2019 | 8,410 | 882 | $ | 8,410 | $ | 882 | $ | 101,811 | $ | 49,165 | $ | 160,268 | ||||||||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2020 | 8,475 | 882 | $ | 8,475 | $ | 882 | $ | 103,463 | $ | 56,606 | $ | 169,426 | ||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | 0 | 0 | 0 | 4,074 | 4,074 | — | — | 0 | 0 | 0 | 4,206 | 4,206 | ||||||||||||||||||||||||||||||||||||||||||
Cash dividends declared | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock | — | — | 0 | 0 | 0 | (2,319 | ) | (2,319 | ) | — | — | 0 | 0 | 0 | (2,406 | ) | (2,406 | ) | ||||||||||||||||||||||||||||||||||||||
Issuance of common stock | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividend reinvestment plan | 3 | 0 | 3 | 0 | 105 | 0 | 108 | 3 | 0 | 3 | 0 | 95 | 0 | 98 | ||||||||||||||||||||||||||||||||||||||||||
Employee stock options and awards(4) | 5 | 0 | 5 | 0 | 129 | 0 | 134 | 22 | 0 | 22 | 0 | 438 | 0 | 460 | ||||||||||||||||||||||||||||||||||||||||||
Employee Retirement Plan(3) | 2 | 0 | 2 | 0 | 87 | 0 | 89 | 2 | 0 | 2 | 0 | 84 | 0 | 86 | ||||||||||||||||||||||||||||||||||||||||||
Balance as of March 31, 2020 | 8,420 | 882 | $ | 8,420 | $ | 882 | $ | 102,132 | $ | 50,920 | $ | 162,354 | ||||||||||||||||||||||||||||||||||||||||||||
Balance as of March 31, 2021 | 8,502 | 882 | 8,502 | 882 | 104,080 | 58,406 | 171,870 | |||||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | 0 | 0 | 0 | 4,566 | 4,566 | — | — | 0 | 0 | 0 | 4,505 | 4,505 | ||||||||||||||||||||||||||||||||||||||||||
Cash dividends declared | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock | — | — | 0 | 0 | 0 | (4,655 | ) | (4,655 | ) | — | — | 0 | 0 | 0 | (4,904 | ) | (4,904 | ) | ||||||||||||||||||||||||||||||||||||||
Issuance of common stock | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividend reinvestment plan | 3 | 0 | 3 | 0 | 87 | 0 | 90 | 2 | 0 | 2 | 0 | 103 | 0 | 105 | ||||||||||||||||||||||||||||||||||||||||||
Employee stock options and awards(4) | 24 | 0 | 24 | 0 | 399 | 0 | 423 | 11 | 0 | 11 | 0 | 165 | 0 | 176 | ||||||||||||||||||||||||||||||||||||||||||
Employee Retirement Plan(3) | 4 | 0 | 4 | 0 | 128 | 0 | 132 | 3 | 0 | 3 | 0 | 105 | 0 | 108 | ||||||||||||||||||||||||||||||||||||||||||
Balance as of June 30, 2020 | 8,451 | 882 | $ | 8,451 | $ | 882 | $ | 102,746 | $ | 50,831 | $ | 162,910 | ||||||||||||||||||||||||||||||||||||||||||||
Balance as of June 30, 2021 | 8,518 | 882 | 8,518 | 882 | 104,453 | 58,007 | 171,860 |
Common Shares Outstanding Class A Non-Voting (1) (3) (4) | Common Shares Outstanding Class B Voting (2) | $1 Par Value Class A Non-Voting | $1 Par Value Class B Voting | Additional Paid-in Capital | Retained Earnings | Total | Common Shares Outstanding Class A Non-Voting (1) (3) (4) | Common Shares Outstanding Class B Voting (2) | $1 Par Value Class A Non-Voting | $1 Par Value Class B Voting | Additional Paid-in Capital | Retained Earnings | Total | |||||||||||||||||||||||||||||||||||
Balance as of December 31, 2020 | 8,475 | 882 | $ | 8,475 | $ | 882 | $ | 103,463 | $ | 56,606 | $ | 169,426 | ||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2021 | 8,532 | 882 | $ | 8,532 | $ | 882 | $ | 104,989 | $ | 63,607 | $ | 178,010 | ||||||||||||||||||||||||||||||||||||
Net income | — | — | 0 | 0 | 0 | 4,206 | 4,206 | — | — | 0 | 0 | 0 | 4,483 | 4,483 | ||||||||||||||||||||||||||||||||||
Cash dividends declared | ||||||||||||||||||||||||||||||||||||||||||||||||
Common stock | — | — | 0 | 0 | 0 | (2,406 | ) | (2,406 | ) | — | — | 0 | 0 | 0 | (2,518) | (2,518) | ||||||||||||||||||||||||||||||||
Issuance of common stock | ||||||||||||||||||||||||||||||||||||||||||||||||
Dividend reinvestment plan | 3 | 0 | 3 | 0 | 95 | 0 | 98 | 2 | 0 | 2 | 0 | 87 | 0 | 89 | ||||||||||||||||||||||||||||||||||
Employee stock options and awards(4) | 22 | 0 | 22 | 0 | 438 | 0 | 460 | 22 | 0 | 22 | 0 | 475 | 0 | 497 | ||||||||||||||||||||||||||||||||||
Employee Retirement Plan(3) | 2 | 0 | 2 | 0 | 84 | 0 | 86 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||
Balance as of March 31, 2021 | 8,502 | 882 | $ | 8,502 | $ | 882 | $ | 104,080 | $ | 58,406 | $ | 171,870 | ||||||||||||||||||||||||||||||||||||
Balance as of March 31, 2022 | 8,556 | 882 | 8,556 | 882 | 105,551 | 65,572 | 180,561 | |||||||||||||||||||||||||||||||||||||||||
Net income | — | — | 0 | 0 | 0 | 4,505 | 4,505 | — | — | 0 | 0 | 0 | 5,046 | 5,046 | ||||||||||||||||||||||||||||||||||
Cash dividends declared | ||||||||||||||||||||||||||||||||||||||||||||||||
Common stock | — | — | 0 | 0 | 0 | (4,904 | ) | (4,904 | ) | — | — | 0 | 0 | 0 | (5,159) | (5,159) | ||||||||||||||||||||||||||||||||
Issuance of common stock | ||||||||||||||||||||||||||||||||||||||||||||||||
Dividend reinvestment plan | 2 | 0 | 2 | 0 | 103 | 0 | 105 | 2 | 0 | 2 | 0 | 97 | 0 | 99 | ||||||||||||||||||||||||||||||||||
Employee stock options and awards(4) | 11 | 0 | 11 | 0 | 165 | 0 | 176 | 19 | 0 | 19 | 0 | 336 | 0 | 355 | ||||||||||||||||||||||||||||||||||
Employee Retirement Plan(3) | 3 | 0 | 3 | 0 | 105 | 0 | 108 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||
Balance as of June 30, 2021 | 8,518 | 882 | $ | 8,518 | $ | 882 | $ | 104,453 | $ | 58,007 | $ | 171,860 | ||||||||||||||||||||||||||||||||||||
Balance as of June 30, 2022 | 8,577 | 882 | 8,577 | 882 | 105,984 | 65,459 | 180,902 |
(1) | At June 30, |
(2) | At June 30, |
(3) | Artesian Resources Corporation registered |
(4) | Under the Equity Compensation Plan, effective December 9, 2015, or the 2015 Plan, Artesian Resources Corporation authorized up to 331,500 shares of Class A Common Stock for issuance of grants in the form of stock options, stock units, dividend equivalents and other stock-based awards, subject to adjustment in certain circumstances as discussed in the 2015 Plan. Includes stock compensation expense for June 30, |
(in thousands) | Three months ended June 30, 2021 | Three months ended June 30, 2020 | Six months ended June 30, 2021 | Six months ended June 30, 2020 | ||||||||||||
Tariff Revenue | ||||||||||||||||
Consumption charges | $ | 12,660 | $ | 12,182 | $ | 23,078 | $ | 22,342 | ||||||||
Fixed fees | 6,872 | 6,657 | 13,871 | 13,394 | ||||||||||||
Service charges | 119 | 15 | 320 | 162 | ||||||||||||
DSIC | 1,316 | 1,267 | 2,488 | 2,418 | ||||||||||||
Industrial wastewater services | (384 | ) | 7 | (379 | ) | 15 | ||||||||||
Total Tariff Revenue | $ | 20,583 | $ | 20,128 | $ | 39,378 | $ | 38,331 | ||||||||
Non-Tariff Revenue | ||||||||||||||||
Service line protection plans | $ | 1,134 | $ | 1,079 | $ | 2,230 | $ | 2,167 | ||||||||
Contract operations | 217 | 213 | 447 | 429 | ||||||||||||
Design and installation | 62 | 0 | 212 | 0 | ||||||||||||
Inspection fees | 52 | 8 | 136 | 110 | ||||||||||||
Total Non-Tariff Revenue | $ | 1,465 | $ | 1,300 | $ | 3,025 | $ | 2,706 | ||||||||
Other Operating Revenue not in scope of ASC 606 | $ | 514 | $ | 324 | $ | 894 | $ | 616 | ||||||||
Total Operating Revenue | $ | 22,562 | $ | 21,752 | $ | 43,297 | $ | 41,653 |
(in thousands) | Three months ended June 30, 2022 | Three months ended June 30, 2021 | Six months ended June 30, 2022 | Six months ended June 30, 2021 | ||||||||||||
Tariff Revenue | ||||||||||||||||
Consumption charges | $ | 12,182 | $ | 12,660 | $ | 22,749 | $ | 23,078 | ||||||||
Fixed fees | 7,751 | 6,872 | 15,529 | 13,871 | ||||||||||||
Service charges | 137 | 119 | 293 | 320 | ||||||||||||
DSIC | 1,282 | 1,316 | 2,464 | 2,488 | ||||||||||||
Metered wastewater services | 129 | 0 | 269 | 0 | ||||||||||||
Industrial wastewater services | 422 | (384 | ) | 828 | (379 | ) | ||||||||||
Total Tariff Revenue | $ | 21,903 | $ | 20,583 | $ | 42,132 | $ | 39,378 | ||||||||
Non-Tariff Revenue | ||||||||||||||||
Service line protection plans | $ | 1,217 | $ | 1,134 | $ | 2,439 | $ | 2,230 | ||||||||
Contract operations | 242 | 217 | 453 | 447 | ||||||||||||
Design and installation | 978 | 62 | 1,101 | 212 | ||||||||||||
Inspection fees | 66 | 52 | 106 | 136 | ||||||||||||
Total Non-Tariff Revenue | $ | 2,503 | $ | 1,465 | $ | 4,099 | $ | 3,025 | ||||||||
Other Operating Revenue | $ | 605 | $ | 421 | $ | 967 | $ | 710 | ||||||||
Total Operating Revenue | $ | 25,011 | $ | 22,469 | $ | 47,198 | $ | 43,113 |
(in thousands) | June 30, 2021 | December 31, 2020 | ||||||
Contract Assets – Tariff | $ | 2,801 | $ | 2,175 | ||||
Deferred Revenue | ||||||||
Deferred Revenue – Tariff | $ | 1,193 | $ | 1,150 | ||||
Deferred Revenue – Non-Tariff | 379 | 300 | ||||||
Total Deferred Revenue | $ | 1,572 | $ | 1,450 |
(in thousands) | June 30, 2022 | December 31, 2021 | ||||||
Contract Assets – Tariff | $ | 3,156 | $ | 2,144 | ||||
Deferred Revenue | ||||||||
Deferred Revenue – Tariff | $ | 1,179 | $ | 1,227 | ||||
Deferred Revenue – Non-Tariff | 404 | 287 | ||||||
Total Deferred Revenue | $ | 1,583 | $ | 1,514 |
(in thousands) | (in thousands) | |||||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||
June 30, | June 30, | June 30, | June 30, | |||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||
Minimum rentals | $ | 7 | $ | 7 | $ | 14 | $ | 14 | $ | 2 | $ | 7 | $ | 9 | $ | 14 | ||||||||||||||||
Contingent rentals | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||
$ | 7 | $ | 7 | $ | 14 | $ | 14 | $ | 2 | $ | 7 | $ | 9 | $ | 14 |
(in thousands) | ||||||||
Six Months Ended | Six Months Ended | |||||||
June 30, 2021 | June 30, 2020 | |||||||
Cash paid for amounts included in the measurement of lease liabilities: | ||||||||
Operating cash flows from operating leases | $ | 14 | $ | 14 | ||||
Right-of-use assets obtained in exchange for lease obligations: | ||||||||
Operating leases | $ | 450 | $ | 469 |
(in thousands) | ||||||||
Six Months Ended | Six Months Ended | |||||||
June 30, 2022 | June 30, 2021 | |||||||
Cash paid for amounts included in the measurement of lease liabilities: | ||||||||
Operating cash flows from operating leases | $ | 9 | $ | 14 | ||||
Right-of-use assets obtained in exchange for lease obligations: | ||||||||
Operating leases | $ | 445 | $ | 450 |
(in thousands, except lease term and discount rate) | (in thousands, except lease term and discount rate) | |||||||||||||||
June 30, 2021 | December 31, 2020 | June 30, 2022 | December 31, 2021 | |||||||||||||
Operating Leases: | ||||||||||||||||
Operating lease right-of-use assets | $ | 450 | $ | 460 | $ | 445 | $ | 451 | ||||||||
Other current liabilities | $ | 16 | 20 | $ | 2 | 6 | ||||||||||
Operating lease liabilities | 427 | 432 | 440 | 440 | ||||||||||||
Total operating lease liabilities | $ | 443 | $ | 452 | $ | 442 | $ | 446 | ||||||||
Weighted Average Remaining Lease Term | ||||||||||||||||
Operating leases | 60 years | 59 years | 61 years | 61 years | ||||||||||||
Weighted Average Discount Rate | ||||||||||||||||
Operating leases | 5.0 | % | 5.0 | % | 5.0 | % | 5.0 | % |
(in thousands) | (in thousands) | |||||||
Operating Leases | Operating Leases | |||||||
Year | ||||||||
2022 | $ | 37 | ||||||
2023 | 23 | $ | 24 | |||||
2024 | 23 | 24 | ||||||
2025 | 23 | 24 | ||||||
2026 | 24 | 24 | ||||||
2027 | 25 | |||||||
Thereafter | 1,303 | 1,330 | ||||||
Total undiscounted lease payments | $ | 1,433 | $ | 1,451 | ||||
Less effects of discounting | (990 | ) | (1,009 | ) | ||||
Total lease liabilities recognized | $ | 443 | $ | 442 |
Options | Restricted Awards | Options | Restricted Awards | |||||||||||||||||||||||||||||||||||||||||||||
Option Shares | Weighted Average Exercise Price | Weighted Average Remaining Life (Yrs.) | Aggregate Intrinsic Value (in thousands) | Outstanding Restricted Stock Awards | Weighted Average Grant Date Fair Value | Option Shares | Weighted Average Exercise Price | Weighted Average Remaining Life (Yrs.) | Aggregate Intrinsic Value (in thousands) | Outstanding Restricted Stock Awards | Weighted Average Grant Date FairValue | |||||||||||||||||||||||||||||||||||||
Plan options/restricted stock awards | ||||||||||||||||||||||||||||||||||||||||||||||||
Outstanding at January 1, 2021 | 116,347 | $ | 20.90 | $ | 1,882 | 5,000 | $ | 35 | ||||||||||||||||||||||||||||||||||||||||
Outstanding at January 1, 2022 | 83,000 | $ | 21.65 | $ | 2,048 | 5,000 | $ | 40.11 | ||||||||||||||||||||||||||||||||||||||||
Granted | 0 | 0 | 0 | 5,000 | 40 | 0 | 0 | 0 | 5,000 | 45.58 | ||||||||||||||||||||||||||||||||||||||
Exercised/vested and released | (28,597 | ) | 19.04 | 624 | (5,000 | ) | 35 | (35,750 | ) | 20.93 | 905 | (5,000 | ) | 40.11 | ||||||||||||||||||||||||||||||||||
Expired/cancelled | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||
Outstanding at June 30, 2021 | 87,750 | $ | 21.51 | 2.008 | $ | 1,339 | 5,000 | $ | 40 | |||||||||||||||||||||||||||||||||||||||
Outstanding at June 30, 2022 | 47,250 | $ | 22.20 | 1.425 | $ | 1,274 | 5,000 | $ | 40.11 | |||||||||||||||||||||||||||||||||||||||
Exercisable/vested at June 30, 2021 | 87,750 | $ | 21.51 | 2.008 | $ | 1,339 | — | — | ||||||||||||||||||||||||||||||||||||||||
Exercisable/vested at June 30, 2022 | 47,250 | $ | 22.20 | 1.425 | $ | 1,274 | — | — |
In thousands | June 30, 2021 | December 31, 2020 | June 30, 2022 | December 31, 2021 | |||||||
Investment in CoBank | $ | 4,850 | $ | 4,374 | $5,351 | $4,850 | |||||
Goodwill | 623 | 623 | |||||||||
Other | 286 | 312 | |||||||||
Other deferred assets | 1,765 | 247 | |||||||||
$ | 5,759 | $ | 5,309 | $7,116 | $5,097 |
Expense | Years Amortized |
Deferred contract costs and other | 5 |
Rate case studies | 5 |
Delaware rate proceedings | 2.5 |
Maryland rate proceedings | 5 |
Debt related costs | 15 to 30 (based on term of related debt) |
Goodwill (resulting from acquisition of Mountain Hill Water Company in 2008) | 50 |
Deferred acquisition costs (resulting from purchase of water assets in Cecil County, Maryland in 2011 and Port Deposit, Maryland in 2010) | 20 |
Franchise Costs (resulting from purchase of water assets in Cecil County, Maryland in 2011) | 80 |
Regulatory assets, net of amortization, comprise: | ||||||||
(in thousands) | ||||||||
June 30, 2022 | December 31, 2021 | |||||||
Deferred income taxes | $ | 475 | $ | 355 | ||||
Deferred contract costs and other | 258 | 288 | ||||||
Debt related costs | 4,829 | 4,902 | ||||||
Goodwill | 269 | 273 | ||||||
Deferred acquisition and franchise costs | 483 | 503 | ||||||
$ | 6,314 | $ | 6,321 |
Regulatory assets, net of amortization, comprise: | ||||||||
(in thousands) | ||||||||
June 30, 2021 | December 31, 2020 | |||||||
Deferred income taxes | $ | 363 | $ | 370 | ||||
Deferred contract costs and other | 292 | 46 | ||||||
Debt related costs | 5,061 | 5,233 | ||||||
Goodwill | 277 | 281 | ||||||
Deferred acquisition and franchise costs | 523 | 543 | ||||||
$ | 6,516 | $ | 6,473 |
Regulatory liabilities comprise: | Regulatory liabilities comprise: | Regulatory liabilities comprise: | ||||||||||||||
(in thousands) | (in thousands) | |||||||||||||||
June 30, 2021 | December 31, 2020 | June 30, 2022 | December 31, 2021 | |||||||||||||
Utility plant retirement cost obligation | $ | 78 | $ | 126 | $ | 169 | $ | 149 | ||||||||
Deferred income taxes (related to TCJA) | 21,333 | 21,555 | 21,463 | 21,111 | ||||||||||||
$ | 21,411 | $ | 21,681 | $ | 21,632 | $ | 21,260 |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||
(in thousands) | (in thousands) | |||||||||||||||||||||||||||||||
Weighted average common shares outstanding during the period for Basic computation | 9,395 | 9,326 | 9,381 | 9,311 | 9,452 | 9,395 | 9,438 | 9,381 | ||||||||||||||||||||||||
Dilutive effect of employee stock options and awards | 30 | 41 | 35 | 46 | 18 | 30 | 26 | 35 | ||||||||||||||||||||||||
Weighted average common shares outstanding during the period for Diluted computation | 9,425 | 9,367 | 9,416 | 9,357 | 9,470 | 9,425 | 9,464 | 9,416 |
Application Date | 11/15/2019 | 05/29/2020 | 11/20/2020 |
DEPSC Approval Date | 12/12/2019 | 06/17/2020 | 12/14/2020 |
Effective Date | 01/01/2020 | 07/01/2020 | 01/01/2021 |
Cumulative DSIC Rate | 7.50% | 7.41% | 7.50% |
Net Eligible Plant Improvements – Cumulative Dollars (in millions) | $43.1 | $43.1 | $43.1 |
Eligible Plant Improvements – Installed Beginning Date | 10/01/2014 | 10/01/2014 | 10/01/2014 |
Eligible Plant Improvements – Installed Ending Date | 04/30/2019 | 04/30/2019 | 04/30/2019 |
Application Date | 11/20/20 |
DEPSC Approval Date | 12/14/20 |
Effective Date | 01/01/21 |
Cumulative DSIC Rate | 7.50% |
Net Eligible Plant Improvements – Cumulative Dollars (in millions) | $43.1 |
Eligible Plant Improvements – Installed Beginning Date | 10/01/2014 |
Eligible Plant Improvements – Installed Ending Date | 04/30/2019 |
In thousands | ||||||||||||||||
June 30, 2021 | December 31, 2020 | June 30, 2022 | December 31, 2021 | |||||||||||||
Carrying amount | $ | 144,393 | $ | 144,090 | $ | 175,593 | $ | 144,850 | ||||||||
Estimated fair value | $ | 164,242 | $ | 171,374 | $ | 168,490 | $ | 163,182 |
(In thousands) | ||||
TESI | ||||
Utility plant | $ | 19,455 | ||
Cash | 280 | |||
Other assets | 3,580 | |||
Total assets | 23,315 | |||
Less: Liabilities and contributions in aid of construction (CIAC) | ||||
Liabilities | 3,536 | |||
CIAC | 16,657 | |||
Net cash purchase price | $ | 3,122 |
(In thousands) | ||||
Utility plant | ||||
Source of supply plant | $ | 201 | ||
Pumping and water treatment plant | 1,455 | |||
Transmission and distribution plant | 3,462 | |||
Other deferred assets | ||||
Goodwill | 623 | |||
Purchase Price | $ | 5,741 |
Repair and maintenance costs increased $0.4 million, primarily related to an increase in tank painting costs under contract, an increase in water and wastewater treatment costs, an increase in overall maintenance costs associated with the TESI acquisition and an increase in fuel costs. |
Administrative costs increased $0.3 million, primarily due to an adjustment made in June 2021 to reduce the additional bad debt reserve from 2020 associated with the COVID-19 pandemic. |
Payroll and employee benefit costs increased $0.2 million, primarily related to an increase in overall compensation. |
Purchased power costs increased $0.1 million, primarily due to an increase in usage related to the additional operational costs associated with the TESI acquisition and upgraded wastewater treatment facilities, in addition to an increase in overall water operations. |
Purchased water costs decreased $0.6 million, related to a decrease of water purchased under a new contract, effective January 2022, in which the minimum amount of water required to be purchased was reduced. |
Repair and maintenance costs increased |
Administrative costs increased |
Purchased water costs decreased $0.8 million, related to a decrease of water |
Line of Credit Commitments | Commitment Due by Period | |||||||||||||||
In thousands | Less than 1 Year | 1-3 Years | 4-5 Years | Over 5 Years | ||||||||||||
Lines of Credit | $ | 25,693 | $ | -- | $ | -- | $ | -- |
Contractual Obligations | Payments Due by Period | |||||||||||||||||||||||||||||||||
Material Cash Requirements | Payments Due by Period | |||||||||||||||||||||||||||||||||
In thousands | Less than 1 Year | 1-3 Years | 4-5 Years | After 5 Years | Total | Less than 1 Year | 1-3 Years | 4-5 Years | After 5 Years | Total | ||||||||||||||||||||||||
First mortgage bonds (principal and interest) | $ | 6,623 | $ | 13,169 | $ | 13,056 | $ | 188,219 | $ | 221,067 | $ | 7,924 | $ | 15,773 | $ | 15,569 | $ | 240,933 | $ | 280,289 | ||||||||||||||
State revolving fund loans (principal and interest) | 933 | 1,486 | 1,125 | 3,828 | 7,372 | 820 | 1,483 | 1,116 | 4,057 | 7,476 | ||||||||||||||||||||||||
Promissory note (principal and interest) | 960 | 1,920 | 1,923 | 12,056 | 16,859 | 961 | 1,921 | 1,924 | 11,094 | 15,900 | ||||||||||||||||||||||||
Asset purchase contractual obligation (principal and interest) | 345 | 672 | 647 | --- | 1,664 | |||||||||||||||||||||||||||||
Lines of credit | 9,580 | --- | --- | --- | 9,580 | |||||||||||||||||||||||||||||
Operating leases | 37 | 46 | 47 | 1,303 | 1,433 | 24 | 48 | 49 | 1,330 | 1,451 | ||||||||||||||||||||||||
Operating agreements | 70 | 76 | 80 | 846 | 1,072 | 59 | 78 | 83 | 804 | 1,024 | ||||||||||||||||||||||||
Unconditional purchase obligations | 3,073 | 1,476 | 1,371 | 345 | 6,265 | 774 | 1,525 | 1,103 | --- | 3,402 | ||||||||||||||||||||||||
Tank painting contractual obligation | 392 | 784 | --- | --- | 1,176 | 392 | 392 | --- | --- | 784 | ||||||||||||||||||||||||
Total contractual cash obligations | $ | 12,088 | $ | 18,957 | $ | 17,602 | $ | 206,597 | $ | 255,244 | $ | 20,879 | $ | 21,892 | $ | 20,581 | $ | 258,218 | $ | 321,570 |
Exhibit No. | Description |
Twenty-Fifth Supplemental Indenture dated as of April 29, 2022, between Artesian Water Company, Inc. and Wilmington Trust Company, as trustee. | |
Bond Purchase Agreement, dated April 29, 2022, by and between Artesian Water Company, Inc., and CoBank, ACB. | |
Amendment to Asset Purchase Agreement, dated May 11, 2022, by and among Artesian Water Company, Inc. a Delaware corporation, and the Town of Clayton, a Delaware municipality.* | |
Settlement Agreement upon which The Chemours Company FC, LLC, Hercules, LLC, Waste Management of Delaware, Inc., SC Holdings, Inc., Cytec Industries, Inc., Zeneca Inc., and Bayer CropScience Inc., collectively the Percentage Settlors, and the Delaware Sand and Gravel Remedial Trust, on one hand, and Artesian Water Company, Inc., on the other hand, have agreed to resolve certain of Artesian Water’s claims and issues relating to releases of contaminants from the Delaware Sand & Gravel Landfill Superfund Site.* | |
Certification of Chief Executive Officer of the Registrant required by Rule 13a–14(a) under the Securities Exchange Act of 1934, as amended.* | |
Certification of Chief Financial Officer of the Registrant required by Rule 13a–14(a) under the Securities Exchange Act of 1934, as amended.* | |
Certification of Chief Executive Officer and Chief Financial Officer required by Rule 13a-14(b) under the Securities Exchange Act of 1934, as amended and Section 1350 of Chapter 63 of Title 18 of the United States Code (18 U.S.C. Section 1350).** | |
101.BAL | Inline XBRL Condensed Consolidated Balance Sheets (unaudited)* |
101.OPS | Inline XBRL Condensed Consolidated Statements of Operations (unaudited)* |
101.CSH | Inline XBRL Condensed Consolidated Statements of Cash Flows (unaudited)* |
101.NTS | Inline XBRL Notes to the Condensed Consolidated Financial Statements (unaudited)* |
104 | The cover page from Artesian Resources Corporation’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, |
Date: August | By: | /s/ DIAN C. TAYLOR | |
Dian C. Taylor (Principal Executive Officer) |
Date: August | By: | /s/ DAVID B. SPACHT | |
David B. Spacht (Principal Financial Officer) |