Artesian Resources Corporation (ARTNA) 2006年年度报告「NASDAQ」.pdf

1、ARTESIAN RESOURCES CORPORATIONANNUAL REPORTFINANCIAL DATA3Managements Discussion and Analysis of Financial Condition and Results of OperationsOVERVIEWOur profitability is primarily attributable to the sale of water by Artesian Water,which comprises 91.1%of total operatingrevenues,the amount of which

2、 is subject to seasonal fluctuations,particularly during summer when water demand may varywith rainfall and temperature.In the event temperatures during the typically warmer months are cooler than expected,orrainfall is greater than expected,the demand for water may decrease and our revenues may be

3、adversely affected.We believe the effects of weather are short term and do not materially affect the execution of our strategic initiatives.Our water sales revenues were affected in 2006,2005,and 2004 by rate increases associated with two separate baserate applications with the Delaware Public Servi

4、ce Commission(PSC).In February 2004,we requested an increase in ratesof 24%.We recognized revenues reflecting a temporary increase of$2.5 million on an annual basis between April andSeptember 2004,and a second temporary increase of$3.0 million on an annual basis effective September 2004,for a totalo

5、f$5.5 million on an annual basis.A portion of the second increase was held in reserve based on an estimated outcome andwas not reflected in income.In May 2006,the PSC issued the final order in this case.Based on the PSC decision,ArtesianWaters new rates would generate approximately$4.9 million in ad

6、ditional revenue on an annual basis,or an increase ofapproximately 13.4%over rates in effect before the implementation of temporary rates in 2004.We were required by law torefund the portion of the temporary rate increase in excess of the 13.4%plus interest to our customers.The refund wascompleted i