NEWARK, Del., Aug. 7 /PRNewswire-FirstCall/ -- Artesian Resources Corporation (Nasdaq: ARTNA) today announced that basic and diluted net income per common share for the quarter ended June 30, 2008 were $0.21 as compared to $0.20 and $0.19 for the quarter ended June 30, 2007. Net income was $1.5 million, compared to $1.3 million last year, up 20.3%.

Basic and diluted net income per common share for the six months ended June 30, 2008 were $0.35 and $0.34 as compared to $0.39 and $0.38 for the same period last year. Net income was $2.5 million, compared to $2.4 million last year, a 4.2% increase.

Net income for both the quarter and six month periods was favorably impacted by an increase in other income as a result of a greater allowance for funds used during construction in the current year periods and a decrease in interest expense compared to the same periods a year ago.

In June 2007, the Company successfully completed the issuance of 1,000,000 shares of Class A Stock through a secondary public offering. In July 2007, an additional 129,000 shares were issued under the terms of an over-allotment option. Fully diluted weighted average common shares outstanding for the six month period ended June 30, 2008 were up 15.3% compared to the same period in 2007.

Revenues for the second quarter of 2008 were $13.9 million, up 7. 7% from $12.9 million in 2007, and for the first half of 2008 were $26.2 million, up 6.8% from $24.5 million in the corresponding period in 2007. Water sales revenues increased $569,000, or 4.8%, compared to the same quarter last year and $951,000, or 4.2%, compared to the first six months of 2007. The increase in water sales is primarily the result of an increase in rates, effective July 2007, and a 2% increase in the number of customers served, offset by a decrease in water usage compared to last year. As a result of more contract work performed by Artesian Utility Development, Inc., and increased participation in our Service Line Protection Program, Non-Utility operating revenues increased $615,000 for the first half of 2008.

Artesian Chair and CEO Dian C. Taylor said, "Our contract wastewater services continue to be an integral piece of our growth strategy. We recently entered into contracts to provide additional wastewater treatment capacity for Georgetown and Middletown. Our ongoing efforts to build mutually productive relationships with local municipalities have enabled us to expand our water and wastewater services to new areas and more fully utilize existing and proposed infrastructure."

Operating expenses, excluding depreciation and income taxes, increased 10.5%, to $8.7 million for the quarter compared to $7.8 million for 2007, and 11.6%, to $17.0 million for the six months period compared to $15.2 million in 2007. The components of the increase for both periods included increases in utility operating expenses, primarily related to increases in purchased water expense, purchased power costs, payroll and employee benefit premiums and increases in non-utility operating expenses as a result of additional contract work.

As permitted by law, on June 21, 2008, we placed temporary rates into effect, designed to generate an increase in annual operating revenue of approximately 5.0%, or $2.5 million on an annualized basis, until new rates are approved by the Public Service Commission. Our overall request is for a 27.3% increase in rates, or approximately $13.6 million, on an annualized basis.

Artesian Chair and CEO Dian C. Taylor said, "Although the wet, cool weather in May suppressed water sales for the quarter, water sales revenues should benefit later in the year from the warmer weather in July and the implementation of the interim rate increase which became effective at the end of June."

About Artesian

Artesian Resources Corporation operates as the holding company of eight wholly-owned subsidiaries offering water and wastewater services. Artesian Water Company, the principal subsidiary, is the oldest and largest investor- owned public water utility on the Delmarva Peninsula, and has been providing water service since 1905. Other subsidiaries include Artesian Water Maryland, Inc., Artesian Wastewater Maryland, Inc., Artesian Water Pennsylvania, Inc., Artesian Wastewater Management, Inc., Artesian Utility Development, Inc., Artesian Consulting Engineers, Inc. and Artesian Development Company.

                         Artesian Resources Corporation
                 Condensed Consolidated Statement of Operations
                 (In thousands, except share and per share data)

                                              (Unaudited)
                                        Three    Three     Six      Six
                                        month    months   months   months
                                        ended    ended    ended    ended
                                       June 30, June 30, June 30, June 30,
                                          2008     2007     2008     2007
    Operating Revenues
      Utility Operating Revenue         12,514   11,945   23,603   22,652
      Other - Utility Operating
       Revenue                             552      470      992      902
      Non-Utility Operating Revenue        837      498    1,578      963
                                       $13,903  $12,913  $26,173  $24,517

    Operating Expenses
      Utility Operating Expenses         7,280    6,759   14,253   13,244
      Non-Utility Operating Expenses       582      387    1,144      597
      Depreciation and Amortization      1,306    1,291    2,640    2,503
      State & Federal Taxes              1,020      864    1,691    1,605
      Property and Other Taxes             798      693    1,591    1,381
                                        10,986    9,994   21,319   19,330

    Operating Income                     2,917    2,919    4,854    5,187
      Allowance for funds used during
       construction                        212       75      329      135
      Other Income, net                    (32)     (42)     432      421

    Income Before Interest Charges       3,097    2,952    5,615    5,743

    Interest Charges                     1,568    1,681    3,087    3,316

    Net Income Applicable to Common
     Stock                              $1,529   $1,271   $2,528   $2,427

      Weighted Average Common Shares
       Outstanding - Basic               7,334    6,468    7,324    6,289
      Net Income per Common Share -
       Basic                             $0.21    $0.20    $0.35    $0.39

      Weighted Average Common Shares
       Outstanding - Diluted             7,445    6,623    7,438    6,449
      Net Income per Common Share -
       Diluted                           $0.21    $0.19    $0.34    $0.38



                          Artesian Resources Corporation
                       Condensed Consolidated Balance Sheet
                                  (In thousands)
                                                (Unaudited)
                                              June 30, 2008  December 31, 2007

    ASSETS
      Utility Plant, at original cost less
       accumulated depreciation                    $296,249          $274,140
      Current Assets                                 11,854            14,324
      Regulatory and Other Assets                     6,825             6,125
                                                   $314,928          $294,589

    CAPITALIZATION AND LIABILITIES
      Stockholders' Equity                          $84,418           $85,132
      Long Term Debt, Net of Current Portion         91,584            91,757
      Current Liabilities                            24,367            11,844
      Advances for Construction                      22,770            23,840
      Contributions in Aid of Construction           62,997            55,238
      Other Liabilities                              28,792            26,778
                                                   $314,928          $294,589

SOURCE Artesian Resources Corporation