FOR IMMEDIATE RELEASE
APRIL 16, 2003
PHONE: 609-561-9000
INVESTOR RELATIONS CONTACT: STEPHEN CLARK x4260
MEDIA CONTACT: JOANNE BRIGANDI x4240
SJI Reports a 16 Percent Increase in First Quarter Earnings
FOLSOM, NJ -- South Jersey Industries (NYSE: SJI) today reported earnings from
continuing operations of $22.8 million, or $1.86 per share, for the first
quarter of 2003 compared with $19.7 million, or $1.65 per share, for the same
quarter in 2002. "Strong performance for the quarter puts SJI on track to
deliver earnings per share growth in excess of the 6 to 7 percent we previously
forecasted for 2003," stated Charles Biscieglia, chairman and CEO of SJI. "The
combination of effective strategies and dedicated, talented employees has
enabled SJI to post record results for four consecutive years, and we've just
gotten off to a good start on a fifth." Record performance for the quarter,
which represents a 16 percent increase over the prior year period, was due to
improved performance from both utility and non-utility activities.
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SJI ADD 1
Highlights from the quarter include:
* Income from Utility Operations Grows 15 Percent -Utility operations'
contribution to net earnings increased to $19.4 million in the first
quarter of 2003, compared with $16.9 million for the first quarter of 2002.
Record performance was mostly due to customer growth and colder weather.
Off-system sales of natural gas and transportation /storage capacity,
coupled with appliance service activities, contributed $2.3 million to this
year's performance.
* Strong Utility Customer Growth Trend Continues - Utility operations added
2,393 customers in the quarter, despite difficult weather conditions, and
expects to maintain the customer growth rate achieved in 2002 of
approximately 3 percent. In 2002, SJG was the fastest growing gas utility
in New Jersey. Total customers as of March 31, 2003 were 298,767 compared
with 290,604 at the same point last year.
* Cold Weather at Last - Weather for the first quarter of 2003 was 27.7
percent colder than an extremely warm 2002, and 6.2 percent colder than the
20-year norm. Weather positively impacted the earnings contribution of
SJI's utility business. However, as expected, the utility's temperature
adjustment clause (TAC) and operating expenses directly related to the cold
weather mitigated the overall net income benefit of weather.
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SJI ADD 2
SJI's TAC limits the impact of temperature variations on SJI's earnings and
customer bills. In the first quarter of 2003, the TAC will provide utility
customers with credits of $2.3 million. The TAC provided SJI with a $3.0
million earnings benefit during the extremely warm first quarter in 2002.
* Income from Non-utility Operations Jumps 22 Percent - SJI's non-utility
operations' contribution to net income increased to $3.4 million for the
first three months of 2003 compared with $2.8 million in the prior-year
period. Substantial numbers of new retail gas marketing customers obtained
by South Jersey Energy during the last 12 months primarily drove
performance.
* Retail Gas Marketing Customer Base Increases 8 Percent- SJI's retail gas
marketing business added 6,324 customers in the first quarter of 2003 as
consumers continued to recognize South Jersey Energy as a reliable,
cost-effective natural gas provider. Gas marketing customers totaled 82,543
at March 31, 2003 compared with 46,736 customers on March 31, 2002.
* SJI Receives High Marks for Corporate Governance - Institutional
Shareholder Services, a noted independent provider of corporate governance
analysis for investors, ranked SJI above 97 percent of the companies listed
in the Russell 3000 and above 90 percent of utility companies on the
governance issue. The ranking focuses on factors such as board independence
and executive incentive plans.
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SJI ADD 3
EARNINGS CONFERENCE CALL
SJI President & COO, Edward J. Graham will host an open conference call and
webcast to discuss the company's first quarter 2003 results today at 11:00 a.m.
EDT.
To participate in the call, dial 1-800-360-9865 approximately 10 minutes
ahead of the scheduled time. To listen to the live webcast, simply visit the
South Jersey Industries website at http://www.sjindustries.com and click the
webcast icon. A recorded version of the webcast will be available at SJI's
website following the call. A rebroadcast of the conference call will also be
available by phoning 1-800-428-6051 and entering the code: 289331.
South Jersey Industries (NYSE: SJI) is an energy services holding company
for South Jersey Gas, South Jersey Energy, South Jersey Resources Group and
Marina Energy. SJI's goals are to provide consistent, sustainable dividend
growth and to increase its earnings per share by at least 6 to 7 percent
annually. Visit http://www.sjindustries.com to learn more about SJI and its
subsidiaries.
This release contains forward-looking statements about SJI's financial
performance. The statements are made in good faith and deemed reasonable at the
date of this release. SJI assumes no responsibility to update this information.
Actual results may vary and SJI encourages you to conduct your own research
before making any investment decisions including a review of SJI's 2002 SEC Form
10K and Annual Report for a complete discussion of risks and/or uncertainties
that may cause actual results to vary.
###
SOURCE: DAVID A. KINDLICK 609-561-9000
STEPHEN H. CLARK
COMPANY NAME: SOUTH JERSEY INDUSTRIES, INC.
MARKET: N
STOCK SYMBOL: SJI
SOUTH JERSEY INDUSTRIES, INC. AND SUBSIDIARIES
COMPARATIVE EARNINGS STATEMENTS
(In Thousands Except for Per Share Data)
UNAUDITED
Three Months Ended
March 31,
2003 2002
Operating Revenues:
Utility $ 216,139 $ 142,181
Nonutility 63,686 34,850
Total Operating Revenues 279,825 177,031
Operating Expenses:
Cost of Gas Sold - Utility 155,068 87,443
Cost of Sales - Nonutility 56,216 29,348
Operation and Maintenance 19,533 17,308
Energy and Other Taxes 5,114 3,843
Operating Income 43,894 39,089
Other Income and Expense:
Equity in Affiliated Companies 187 164
Other (116) (74)
Total Other Income and Expense 71 90
Interest Charges * 3,985 4,648
Preferred Dividend Requirements
of Subsidiary 764 764
Income Taxes 16,379 14,049
Income from Continuing Operations 22,837 19,718
Discontinued Operations - Net (149) (32)
Cumulative Effect of a Change in
Accounting Principle - Net (426) 0
Net Income Applicable to Common Stock $ 22,262 $ 19,686
Basic Earnings Per Common Share (Based on
Average Basic Common Shares Outstanding):
Continuing Operations $ 1.86 $ 1.65
Discontinued Operations - Net (0.01) 0.00
Cumulative Effect of a Change in
Accounting Principle - Net (0.03) 0.00
Basic Earnings Per Common Share $ 1.82 $ 1.65
Average Common Shares Outstanding - Basic 12,245 11,914
Diluted Earnings Per Common Share (Based on
Average Diluted Common Shares Outstanding):
Continuing Operations $ 1.85 $ 1.65
Discontinued Operations - Net (0.01) 0.00
Cumulative Effect of a Change in
Accounting Principle - Net (0.03) 0.00
Diluted Earnings Per Common Share $ 1.81 $ 1.65
Average Common Shares Outstanding - Diluted 12,327 11,949
Twelve Months Ended
March 31,
2003 2002
Operating Revenues:
Utility $ 460,078 $ 385,261
Nonutility 147,842 98,031
Total Operating Revenues 607,920 483,292
Operating Expenses:
Cost of Gas Sold - Utility 310,966 248,131
Cost of Sales - Nonutility 132,110 87,524
Operation and Maintenance 78,887 72,809
Energy and Other Taxes 12,077 9,971
Operating Income 73,880 64,857
Other Income and Expense:
Equity in Affiliated Companies 964 354
Other 492 72
Total Other Income and Expense 1,456 426
Interest Charges * 17,013 19,508
Preferred Dividend Requirements
of Subsidiary 3,058 3,060
Income Taxes 22,734 17,862
Income from Continuing Operations 32,531 24,853
Discontinued Operations - Net (541) (287)
Cumulative Effect of a Change in
Accounting Principle - Net (426) 0
Net Income Applicable to Common Stock $ 31,564 $ 24,566
Basic Earnings Per Common Share (Based on
Average Basic Common Shares Outstanding):
Continuing Operations $ 2.68 $ 2.11
Discontinued Operations - Net (0.05) (0.03)
Cumulative Effect of a Change in
Accounting Principle - Net (0.03) 0.00
Basic Earnings Per Common Share $ 2.60 $ 2.08
Average Common Shares Outstanding - Basic 12,121 11,798
Diluted Earnings Per Common Share (Based on
Average Diluted Common Shares Outstanding):
Continuing Operations $ 2.66 $ 2.11
Discontinued Operations - Net (0.04) (0.03)
Cumulative Effect of a Change in
Accounting Principle - Net (0.03) 0.00
Diluted Earnings Per Common Share $ 2.59 $ 2.08
Average Common Shares Outstanding - Diluted 12,211 11,807
* Net of rate recovery of carrying costs on certain unrecovered fuel and
environmental remediation expenses.