8-K

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): May 6, 2024

ARTESIAN RESOURCES CORP

(Exact name of registrant as specified in its charter)

Delaware	000-18516	51-0002090
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

664 Churchmans Road Newark, Delaware	19702
(Address of principal executive offices)	(Zip code)

Registrant's telephone number, including area code (302) 453-6900

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

Securities registered pursuant to Section 12(b) of the Securities Exchange Act of 1934:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock	ARTNA	NASDAQ

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter):

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02 Results of Operations and Financial Condition

On May 6, 2024, Artesian Resources Corporation (“Artesian Resources” or the “Company”) issued a press release announcing its earnings for the first quarter ended March 31, 2024. A copy of the press release is attached as Exhibit 99.1 and is incorporated herein by reference. The information furnished pursuant to this Item 2.02, including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities under that Section and shall not be deemed to be incorporated by reference into any filing of the Company under the Securities Act of 1933 or the Exchange Act.

Item 9.01 Financial Statements and Exhibits

(d)Exhibits

Exhibit Number:	Title:
99.1*	Press release regarding earnings for the first quarter ended March 31, 2024, issued on May 6, 2024, by Artesian Resources Corporation.
104	Cover Page Interactive Data File (formatted as Inline XBRL).

* Exhibit 99.1 is intended to be deemed furnished rather than filed pursuant to General Instruction B.2. of Form 8-K.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	ARTESIAN RESOURCES CORPORATION
Date: May 7, 2024	By:    /s/ David B. Spacht
	David B. Spacht
	Chief Financial Officer

EX-99.1 CHARTER

Artesian Resources Corporation Reports First Quarter

2024 Results

Newark, Delaware, May 6, 2024 – Artesian Resources Corporation (Nasdaq: ARTNA), a leading provider on the Delmarva Peninsula of water and wastewater services, and a number of other related business services, today announced earnings results for the first quarter of 2024.

First Quarter Results

Net income was $4.4 million, a $0.7 million, or 19.1%, increase compared to net income recorded during the three months ended March 31, 2023.  Diluted net income per share increased 10.3% to $0.43, compared to $0.39 for the same period in 2023.

Revenues totaled $24.5 million for the three months ended March 31, 2024, $2.0 million, or 9.1%, more than revenues for the three months ended March 31, 2023.

Water sales revenue increased $1.8 million, or 10.0%, primarily as a result of a net 7.5% temporary water rate increase placed into effect on November 28, 2023, as permitted under Delaware law, until permanent rates are determined by the Delaware Public Service Commission, and an increase in overall water consumption.

Other utility operating revenue increased approximately $0.2 million, or 7.0%, primarily due to an increase in wastewater revenue associated with an increase in the number of customers served.

Operating expenses, excluding depreciation and income taxes, increased $0.8 million, or 5.6%.  Utility operating expenses increased $0.7 million, or 6.1%, primarily the result of increased costs associated with water treatment and distribution operations, including filter replacements costs and chemical costs, and increases in payroll, employee benefits, purchased power and administrative costs.

“We are pleased to report temporary water rates are in effect, offsetting increased operating costs incurred to maintain high quality and reliable water service to our customers,” said Nicki Taylor, President of Artesian Water Company.

Depreciation and amortization expense increased $0.2 million, or 7.5%, primarily due to continued investment in utility plant providing supply, treatment, storage and distribution of water to customers and service to our wastewater customers.

Federal and state income tax expense increased $0.4 million, or 28.0%, primarily due to higher pre-tax income in 2024 compared to 2023.

Other income decreased $0.2 million, primarily due to a decrease in allowance for funds used during construction, or AFUDC, as a result of lower long-term construction activity subject to AFUDC.

Interest Charges decreased $0.3 million, primarily due to lower borrowing levels related to the Company’s lines of credit.

Capital Expenditures

As part of Artesian’s ongoing effort to ensure high-quality reliable service to customers, $8.9 million was invested in the first three months of 2024 in water and wastewater infrastructure projects.  These investments include PFAS treatment equipment, relocation of facilities as a result of government mandates, renewals associated with the rehabilitation of aging infrastructure, installation of new main, purchase of new transportation equipment, and enhancing or improving existing treatment facilities and pumping stations to better serve our customers.

“Artesian recently commenced construction of the Sussex Regional Recharge Facility’s (SRRF) wastewater treatment plant in Milton, Delaware.  Moving forward on this project will provide a more environmentally sound solution for wastewater disposal in Sussex County.  This facility will allow for the diversion of excess nutrients from local rivers and streams to be productively utilized for farming use and ultimately recharging local groundwater supplies,” said Dian C. Taylor, CEO.

“We have now progressed to the construction phase of the SRRF treatment plant.  This facility will be an important part of Artesian’s regional system to treat wastewater most effectively while enhancing operational efficiencies.  Our regionalization efforts in Sussex County are vital to supporting existing wastewater treatment needs along with sustaining the continued growth occurring in this rapidly developing area of Delaware,” said David B. Spacht, President of Artesian Wastewater Management.

About Artesian Resources

Artesian Resources Corporation operates as a holding company of wholly-owned subsidiaries offering water and wastewater services, and a number of other related core business services, on the Delmarva Peninsula.  Artesian Water Company, the principal subsidiary, is the oldest and largest regulated water utility on the Delmarva Peninsula and has been providing water service since 1905.  Artesian Water Company supplies 8.8 billion gallons of water per year through 1,470 miles of main to over a third of Delawareans.

Forward Looking Statements

This release contains forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 regarding, among other things, recovery of investments in water utility plant and increased operating costs in rates charged to customers as presented in our current filing before the Delaware Public Service Commission, expectations regarding the cost and timing of planned infrastructure investments, the impact of weather on our operations, our growth strategy, our expectations regarding infrastructure investments, our enhanced wastewater operational efficiencies, and continued growth in our business and the number of customers served.  These statements involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such forward-looking statements including: changes in weather, changes in our contractual obligations, changes in government policies, the timing and results of our rate requests, failure to receive regulatory approval, changes in economic and market conditions generally and other matters discussed in our filings with the Securities and Exchange Commission.  While the Company may elect to update forward-looking statements, we specifically disclaim any obligation to do so and you should not rely on any forward-looking statement as representation of the Company’s views as of any date subsequent to the date of this release.

Contact:

Nicki Taylor

Investor Relations

(302) 453-6900

ntaylor@artesianwater.com

                                                                                                      

XML

Document and Entity Information	May 06, 2024
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	May 06, 2024
Entity File Number	000-18516
Entity Registrant Name	ARTESIAN RESOURCES CORP
Entity Central Index Key	0000863110
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	51-0002090
Entity Address, Address Line One	664 Churchmans Road
Entity Address, City or Town	Newark
Entity Address, State or Province	DE
Entity Address, Postal Zip Code	19702
City Area Code	302
Local Phone Number	453-6900
Title of 12(b) Security	Common Stock
Trading Symbol	ARTNA
Security Exchange Name	NASDAQ
Entity Emerging Growth Company	false
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false