Artesian Resources Corp (ARTNA) has reported 17.87 percent rise in profit for the quarter ended Sep. 30, 2016. The company has earned $4.36 million, or $0.48 a share in the quarter, compared with $3.70 million, or $0.41 a share for the same period last year. Revenue during the quarter grew 5.06 percent to $21.83 million from $20.78 million in the previous year period. Total expenses were 72.76 percent of quarterly revenues, down from 74.04 percent for the same period last year. This has led to an improvement of 127 basis points in operating margin to 27.24 percent.
Operating income for the quarter was $5.94 million, compared with $5.39 million in the previous year period.
"Our ability to continue to control expenses coupled with increased water consumption during the third quarter of 2016 contributed to our overall positive results. We are also able to obtain timely recovery through the Distribution System Improvement Charge on a portion of our investments made in infrastructure so that our customers receive reliable and safe water," said Dian C. Taylor, Chair, president and chief executive officer.
Working capital remains negative
Working capital of Artesian Resources Corp was negative $5.01 million on Sep. 30, 2016 compared with negative $12.36 million on Sep. 30, 2015. Current ratio was at 0.76 as on Sep. 30, 2016, up from 0.55 on Sep. 30, 2015. Days sales outstanding went down to 17 days for the quarter compared with 36 days for the same period last year.
Debt comes down
Artesian Resources Corp has recorded a decline in total debt over the last one year. It stood at $102.60 million as on Sep. 30, 2016, down 13.29 percent or $15.73 million from $118.33 million on Sep. 30, 2015. Total debt was 22.96 percent of total assets as on Sep. 30, 2016, compared with 27.53 percent on Sep. 30, 2015. Debt to equity ratio was at 0.76 as on Sep. 30, 2016, down from 0.92 as on Sep. 30, 2015. Interest coverage ratio improved to 3.61 for the quarter from 3.08 for the same period last year.
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