Financial Performance - Total operating revenues for the three months ended September 30, 2024, increased to $29,142,000, up from $26,570,000 for the same period in 2023, representing an increase of 9.5%[11] - Water sales for the nine months ended September 30, 2024, reached $66,419,000, compared to $60,294,000 for the same period in 2023, reflecting an increase of 10.1%[11] - Net income applicable to common stock for the three months ended September 30, 2024, was $6,813,000, compared to $5,071,000 for the same period in 2023, marking a growth of 34.4%[11] - Operating income for the nine months ended September 30, 2024, was $20,508,000, up from $16,932,000 for the same period in 2023, representing a rise of 21.0%[11] - Net income for the nine months ended September 2024 was $16,549,000, an increase of 25.5% compared to $13,219,000 for the same period in 2023[12] - Consolidated revenues for the company reached $29,142 million for the quarter ended September 30, 2024, up 9.5% from $26,570 million in the prior year[130] - Consolidated operating income for the quarter was $8,590 million, an increase of 29.0% from $6,661 million in the same quarter of 2023[130] Assets and Liabilities - Total assets as of September 30, 2024, amounted to $796,020,000, an increase from $766,832,000 as of December 31, 2023, indicating a growth of 3.8%[9] - Total current liabilities increased to $28,041,000 as of September 30, 2024, compared to $22,414,000 as of December 31, 2023, reflecting a rise of 25.1%[8] - The carrying amount of the Company's long-term debt as of September 30, 2024, was $179,219,000, with an estimated fair value of $159,649,000[75] - The company reported a balance of $143,789 million in total liabilities as of September 30, 2024, compared to $143,369 million as of December 31, 2023, reflecting a marginal increase of 0.3%[19] Cash Flow and Investments - Cash and cash equivalents increased to $10,703,000 as of September 30, 2024, from $2,505,000 as of December 31, 2023, showing a significant increase of 327.5%[8] - Net cash provided by operating activities for the nine months ended September 2024 was $30,121,000, up from $23,360,000 in the prior year, representing a 28.5% increase[12] - Net cash used in investing activities was $30,313,000 for the nine months ended September 2024, a decrease from $48,762,000 in the prior year, indicating a 37.8% reduction[12] - Cash flows provided by financing activities decreased to $8.4 million for the nine months ended September 30, 2024, compared to $30.6 million for the same period in 2023[185] Earnings and Dividends - Basic earnings per share for the three months ended September 30, 2024, was $0.66, compared to $0.49 for the same period in 2023, an increase of 34.7%[11] - The company declared cash dividends per share of $0.2955 for the three months ended September 30, 2024, compared to $0.2840 for the same period in 2023, an increase of 4.9%[11] - The company declared cash dividends totaling $9,065,000 for the nine months ended September 2024, compared to $8,265,000 in the same period of 2023, reflecting a 9.7% increase[12] Customer and Revenue Growth - Artesian Water served approximately 97,000 customers, Artesian Water Maryland served approximately 2,700 customers, and Artesian Water Pennsylvania served approximately 40 customers[86] - The number of metered water customers in Delaware increased by approximately 1.5% compared to September 30, 2023, while Maryland saw an increase of approximately 2.4%[139] - The number of Delaware wastewater customers increased by approximately 6.4% compared to September 30, 2023[141] - The number of customers enrolled in the WSLP Plan, SSLP Plan, and ISLP Plan increased by 3.3%, 2.4%, and 1.6%, respectively, as of September 30, 2024, compared to September 30, 2023[142] Regulatory and Compliance - The company is involved in multi-district litigation regarding PFAS contamination, with uncertain recovery amounts[120] - Artesian Water's regulatory liabilities include deferred income taxes related to TCJA amounting to $27.8 million as of September 30, 2024[104] - The company filed a request for a revenue increase of approximately $16.7 million, or 22.7%, with the Delaware Public Service Commission, which was partially approved with a final increase of $11.2 million, or 15.2%[140] Capital Expenditures and Investments - Capital expenditures for the nine months ended September 2024 were $30,933,000, a decrease of 36.6% from $48,838,000 in the same period of 2023[12] - The investment in CoBank increased to $6,425,000 as of September 30, 2024, compared to $5,882,000 as of December 2023[90] - The asset purchase contractual obligation related to the acquisition of water operating assets from the Town of Clayton totaled $5.0 million, with $3.4 million paid at closing[190] Operational Efficiency - The ratio of operating expense to total revenue was 51.2% for the three months ended September 30, 2024, down from 53.5% for the same period in 2023[163] - Operating expenses, excluding depreciation and income taxes, increased by $0.7 million, or 4.9%, for the three months ended September 30, 2024[161] - Utility operating expenses increased by $1.8 million, or 5.1%, for the nine months ended September 30, 2024, driven by higher supply and treatment costs[174] Future Outlook - The company anticipates continued growth in its non-utility subsidiaries, primarily driven by Service Line Protection Plans[136] - Artesian Wastewater plans to construct a 625,000 gallon per day regional wastewater treatment facility, enhancing service capabilities and operational efficiencies[149]

Group 1: Earnings Performance - Artesian Resources reported quarterly earnings of $0.66 per share, exceeding the Zacks Consensus Estimate of $0.61 per share, and up from $0.49 per share a year ago, representing an earnings surprise of 8.20% [1] - The company posted revenues of $29.14 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 0.49%, compared to year-ago revenues of $26.57 million [2] - Over the last four quarters, Artesian Resources has surpassed consensus EPS estimates two times and topped consensus revenue estimates three times [2] Group 2: Stock Performance and Outlook - Artesian Resources shares have declined approximately 20% since the beginning of the year, while the S&P 500 has gained 20.1% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the coming quarter is $0.36 on $25 million in revenues, and $1.92 on $106 million in revenues for the current fiscal year [7] Group 3: Industry Context - The Utility - Water Supply industry, to which Artesian Resources belongs, is currently ranked in the top 41% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that tracking these revisions can be beneficial for investors [5] - The estimate revisions trend for Artesian Resources is currently mixed, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6]

Core Points - Artesian Resources Corporation announced a 2% increase in the quarterly common stock dividend, raising it to $0.3014 per share, and a 4% increase for the year, resulting in an annualized dividend rate of $1.2056 per share [1] - The dividend will be payable on November 25, 2024, to shareholders of record as of November 15, 2024 [1] - This marks the 128th consecutive quarterly dividend paid by Artesian Resources Corporation [2] Company Overview - Artesian Resources Corporation operates as a holding company for wholly-owned subsidiaries that provide water and wastewater services on the Delmarva Peninsula [3] - Artesian Water Company, the principal subsidiary, is the oldest and largest regulated water utility on the Delmarva Peninsula, supplying 8.8 billion gallons of water annually through 1,470 miles of water main to over a third of Delaware's population [3]

Group 1 - The article emphasizes that consecutive years of dividend growth serve as a clear measure of quality for established dividend-paying companies, indicating their maturity and stability [1] - The author has been involved in dividend investing since 2009 and has documented their journey towards financial independence through a blog focused on dividend growth investing [1] Group 2 - The article does not provide specific investment recommendations or advice, highlighting that past performance does not guarantee future results [2] - It notes that the views expressed may not reflect those of Seeking Alpha as a whole, and the analysts are third-party authors who may not be licensed or certified [2]

Core Viewpoint - Artesian Resources is a small water utility with growth potential, operating as a regulated monopoly, which allows for steady growth and consistent dividend increases. The stock is currently undervalued, with a high yield and acceptable safety, making it a long-term buy for dividend growth investors [1]. Company Overview - Founded in 1905, Artesian Resources provides water and wastewater services in Delaware, Maryland, and Pennsylvania, serving 301,000 people and delivering 8.8 billion gallons of water annually through extensive infrastructure [2]. - The company reported total revenue of over $98.9 million in 2023 and $103.1 million in the last twelve months [2]. Revenue and Earnings Growth - Revenue and earnings per share (EPS) have generally trended upward over the past decade, with a record revenue of $98.9 million in 2022, slightly declining to $98.86 million in 2023. Revenue growth is typically in the low-to-mid single digits [3]. Market and Growth Potential - Delaware's population growth of approximately 1% to 1.5% annually contributes to an expanding customer base, with Artesian Resources engaging in partnerships and M&A to enhance growth. The company has applied for a rate increase, which was approved at 15% for June 2024 [4][6]. Challenges - Despite growth potential, Artesian Resources faces limitations due to Delaware's small initial population and limited M&A opportunities. The company also contends with risks such as cyber-attacks and natural disasters [8]. Competitive Advantages - As a regulated monopoly, Artesian Resources benefits from stable revenue and cash flow, with a recession-resistant business model. Revenue and EPS grew during the COVID-19 pandemic, highlighting its essential service nature [9]. Dividend Analysis - The decline in share price has led to a dividend yield of 3.27%, higher than the 5-year average of 2.59%. Artesian Resources has a 32-year streak of dividend increases, with an annual growth rate of 3% to 4% [10][11]. - The payout ratio is 65% based on an estimated 2024 EPS of $1.92, supported by operating cash flow of $32 million in 2023 [11]. Valuation - The current share price of approximately $36.11 suggests that Artesian Resources is slightly undervalued, with a fair value estimate of $38.40 based on a P/E ratio of 20X. Sensitivity analysis indicates a fair value range of $36.48 to $40.32 [12]. Final Thoughts - Water utilities like Artesian Resources are favorable for dividend growth investors due to their stable characteristics. The company is expected to rebound in 2024 due to rate increases and potential interest rate cuts, making it an attractive long-term investment [13].

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____ to _____ Commission file number 000-18516 ARTESIAN RESOURCES CORPORATION -------------------------------------------------------------- (Exact nam ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of earliest event reported): August 6, 2024 ARTESIAN RESOURCES CORP (Exact name of registrant as specified in its charter) | --- | --- | |-------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------- ...

Water stocks don’t really need much in terms of fundamental justification. It’s the one resource that is easily the most precious. Sure, you can talk about gold or some other important asset that features significant industrial or technological implications: lithium comes readily to mind. However, as far as I know, you can’t eat lithium.On a less-existential note, investing in water stocks isn’t just about the underlying core human necessity. Because of the underlying utility and scarcity, companies spend b ...

NEWARK, Del., June 25, 2024 (GLOBE NEWSWIRE) -- Artesian Resources Corporation (NASDAQ:ARTNA) announced that its Annual Charitable Golf Outing raised nearly $135,000, bringing the thirteen-year total to $875,000. Over 175 golfers representing Artesian's valued vendors and business partners gathered on June 3rd at the DuPont Country Club in Wilmington, Delaware to support local charitable organizations. "We are immensely grateful for the generous support from our business partners to be able to once again ha ...

NEWARK, Del., June 25, 2024 (GLOBE NEWSWIRE) -- Artesian Resources Corporation (Nasdaq: ARTNA) announced that its Annual Charitable Golf Outing raised nearly $135,000, bringing the thirteen-year total to $875,000. Over 175 golfers representing Artesian’s valued vendors and business partners gathered on June 3rd at the DuPont Country Club in Wilmington, Delaware to support local charitable organizations. “We are immensely grateful for the generous support from our business partners to be able to once again h ...