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): November 6, 2006

ARTESIAN RESOURCES CORPORATION

(Exact name of registrant as specified in its charter)

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

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

Registrant’s telephone number, including area code: 302-453-6900

Not Applicable

(Former name or former address, if changed since last report.)

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

     Soliciting material pursuant to Rule 14a-12 under the Exchange Act

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

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

Item 2.02 Results of Operations and Financial Condition.

On November 6, 2006, Artesian Resources Corporation (the “Company”) issued a press release reporting its financial results for the nine months and third quarter ended September 30, 2006. A copy of the press release is being furnished as Exhibit 99.1 to this report.

The foregoing information and the information set forth in Exhibits 99.1 attached hereto is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 except as shall be expressly set forth by specific reference in such filing.

Item 9.01 Financial Statements and Exhibits.

The following exhibit is furnished with this report:

Exhibit Number	Exhibit Title
99.1	Press Release dated November 6, 2006

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: November 9, 2006	By:	/s/ DAVID B. SPACHT
	David B. Spacht Vice President, Chief Financial Officer and Treasurer

INDEX TO EXHIBIT

Exhibit Number	Exhibit Title
99.1	Press Release dated November 6, 2006

EX-99.1

Exhibit 99.1

Newark, DE, November 6, 2006 – (ARTNA) Artesian Resources Corporation (Artesian) today announced that basic and diluted net income per common share for the quarter ended September 30, 2006 were $0.43 and $0.42as compared to $0.28 and $0.27 for the quarter ended September 30, 2005. Revenues for the quarter were $14.2 million, up 14.7% from $12.4 million in 2005. Net income was $2.6 million, compared to $1.7 million last year, a 55.3% increase.

Basic and diluted net income per common share for the nine months ended September 30, 2006 were $0.82and $0.80, as compared to $0.64 and $0.62 for the comparable period in 2005. Revenues for the nine-month period were $36.7 million, up 8.6% from $33.8 million in 2005. Net income available to common stockholders was $5.0 million, compared to $3.8 million last year, a 29.3% increase.

The increased net income for both the quarter and nine months ended September 30, 2006, compared to the same periods a year ago were primarily due to the gain on the September 2006 sale of four acres of land owned by Artesian Development Corporation, a non-regulated subsidiary. The sale price was $1.35 million and the gain on the sale of the parcel of land after expenses, but before income taxes, was approximately $1.32 million.

Increased revenues for both the quarter and nine months ended September 30, 2006, were due to increased water sales revenues of $942,000 and $2.3 million respectively, and the gain on the sale of land. Water sales revenues reflect a 2.9% increase in the number of customers served, a 5.9% temporary rate increase implemented on July 10, 2006 (associated with the rate increase request filed with the Delaware Public Service Commission on May 9, 2006) and revenues generated from our 1.2% Distribution System Improvement Charge in effect from January 1 to July 10, 2006. The increases in utility operating revenue in both periods were offset by decreases in non-utility revenue of $427,000 for the quarter and $707,000 for the nine-month period ended September 30, 2006. The decrease in non-utility revenue was the result of less non-regulated wastewater project activity compared to last year.

Utility operating expense increased $413,000 for the quarter ended September 30, 2006, or 7.1%, over the same period in 2005, primarily as a result of increases in repair and maintenance and purchased power costs.

For the nine months ended September 30, 2006, utility operating expense increased $1.6 million, or 9.5%, over the same period in 2005, as a result of increases in payroll and employee benefits, outside services related to the implementation of our GIS system, purchased power expense, purchased water costs and water treatment expense.

Non-utility operating expenses decreased $268,000 for the quarter and $809,000 for the nine months ended September 30, 2006, compared to the same periods last year as a result of less wastewater construction activity.

On October 26, Artesian declared a 5.0%, or a $0.03 per share, increase in the Class A Non-Voting and Class B Common shareholders’ annual dividend. With this increase, the annual dividend is 7.5% greater than a year ago. The quarterly dividend of $0.16 per share is payable November 21, 2006 to shareholders of record at the close of business on November 10, 2006.

Artesian Resources Corporation, through our wholly-owned subsidiary Artesian Water Company, is the largest investor owned regulated public water utility in the State of Delaware and has been providing superior water service within the state since 1905. About $181 million has been invested in Artesian’s utility plant over the last 10 years to provide sufficient treated supply, new water mains and additional storage capacity to meet peak demands and provide fire protection. We distribute and sell water to residential, commercial, industrial, governmental, municipal and utility customers. As of September 30, 2006, Artesian was serving approximately 73,400 metered customers, providing water service to about 242,000 residents (including contract services). Last year, Artesian distributed 7.5 billion gallons of water. Artesian serves its customers through 107 operating wells. Artesian’s water supply is treated at 50 different locations. Artesian owns and maintains approximately 1,000 miles of water main. Artesian has increased its water customer base by 28% and its franchised service territory by 71% over the past decade. Artesian also provides water and wastewater treatment contract services on the Delmarva Peninsula through Artesian Utility Development, Inc., a non-regulated subsidiary, and wastewater utility services through Artesian Wastewater Management, Inc., a regulated subsidiary.

Contact: Nicki Taylor

Investor Relations

(302) 453-6943 ntaylor@artesianwater.com

Artesian Resources Corporation

Condensed Consolidated Statement of Operations

(In thousands, except per share amounts)

	(Unaudited)
	Three months ended September 30, 2006		Three months ended September 30, 2005			Nine months ended September 30, 2006		Nine months ended September 30, 2005
Operating Revenues
Utility Operating Revenue		12,498		11,579			34,032		31,735
Non-Utility Operating Revenue		374		801			1,342		2,049
Gain on Sale of Land		1,322		—			1,322		0
	$	14,194	$	12,380		$	36,696	$	33,784
Operating Expenses
Utility Operating Expenses		6,240		5,827			18,210		16,635
Non-Utility Operating Expenses		289		557			892		1,701
Depreciation and Amortization		1,237		1,098			3,422		3,220
State & Federal Taxes		1,599		1,116			3,127		2,561
Property and Other Taxes		648		618			1,922		1,790
		10,013		9,216			27,573		25,907
Operating Income		4,181		3,164			9,123		7,877
Other Income, net		69		33			568		503
Income Before Interest Charges		4,250		3,197			9,691		8,380
Interest Charges		1,643		1,518			4,729		4,543
Net Income Applicable to Common Stock	$	2,607	$	1,679		$	4,962	$	3,837
Weighted Average Common Shares Outstanding - Basic		6,065		5,996	*		6,047		5,972	*
Net Income per Common Share - Basic	$	0.43	$	0.28	*	$	0.82	$	0.64	*
Weighted Average Common Shares Outstanding - Diluted		6,247		6,187	*		6,232		6,174	*
Net Income per Common Share - Diluted	$	0.42	$	0.27	*	$	0.80	$	0.62	*

* Shares outstanding and per share amounts restated to reflect a three for two common stock split effective May 30, 2006.

Artesian Resources Corporation

Condensed Consolidated Balance Sheet

(In thousands)

	(Unaudited)
	September 30, 2006		December 31, 2005
ASSETS
Utility Plant, at original cost less accumulated depreciation	$	248,619	$	227,566
Current Assets		13,456		10,406
Regulatory and Other Assets		5,966		5,882
	$	268,041	$	243,854
CAPITALIZATION AND LIABILITIES
Stockholders’ Equity	$	61,344	$	57,813
Long Term Debt, Net of Current Portion		92,114		92,379
Current Liabilities		20,558		12,238
Advances for Construction		24,866		24,404
Contributions in Aid of Construction		46,648		37,350
Other Liabilities		22,511		19,670
	$	268,041	$	243,854