July 29, 2003
FOR IMMEDIATE RELEASE
Telephone: (609) 561-9000
Investor Relations Contact: Steve Clark x4260
Media Contact: Joanne Brigandi: x4240
SJI's Second Quarter Earnings Rise 171%
Folsom, NJ-South Jersey Industries (NYSE:SJI) today reported earnings from
continuing operations of $2.0 million, or $0.16 per share for the second quarter
of 2003 compared with $700,000 or $0.06 per share, for the same period last
year. Wall Street had forecast that the Folsom based energy holding company
would earn $.05 per share according to Thomson First Call.
Commenting on SJI's second quarter and first half results, Charles
Biscieglia, Chairman and CEO of SJI, said, "We are pleased to continue to
deliver this consistent performance to our valued shareholders. The results of
the first half of 2003 serve to make me even more confident in our ability to
deliver earnings per share growth in 2003 of at least the 7% to 10 % that we
outlined during the second quarter." SJI's earnings from continuing operations
for the first six months of 2003 were a record $24.8 million or $2.01 per share
compared with $20.4 million, or $1.71 per share for 2002.
Second Quarter 2003 Business and Financial Highlights Include:
Utility Operations
o Customer Growth Well Above Industry Average
Strong customer growth, fueled by new construction and
conversions from other energy sources, continues at SJG, our
core business. SJG had 298,877 customers at June 30, 2003 an
increase of 7,186 over the same period last year. The 2.5%
customer growth is well above the industry average. We project
that customer growth will be closer to 3% for the full year
based upon the continued strength of development in our
service territory.
Weather for the quarter in the utility service territory was
29% colder than normal and 42% colder than last year,
resulting in higher sales volumes for both residential and
commercial customers, contributing significantly to
profitability. The combination of weather, strong customer
growth, favorable interest rates and continued attention to
operational efficiencies produced a $900,000 improvement in
the core utility's profitability for the quarter.
o Appliance Service Business Thriving
Strong marketing and sales efforts continue to generate
customers for our Appliance Service Business. These factors
produced a 37% increase in net income for the second quarter
of 2003 compared with the same period in 2002. The
transformation of the Appliance Service Business from being
part of the utility to being a competitive business will be
completed pending NJ Board of Public Utilities approval. This
shift will enable us to more fully realize the earnings
potential of this business by reacting much more quickly to
market conditions and opportunities.
Non-Utility Operations
o South Jersey Energy's Strong Customer Growth Rate Continues
SJE ended 2002 as New Jersey's fastest growing energy marketer
and continues in that role in 2003. SJE had 88,437
residential, commercial and industrial customers at the end of
the second quarter of 2003 compared to 53,495 at the end of
the same period in 2002, a 65% increase. SJE added almost 6000
customers during the second quarter of 2003.
o South Jersey Resources Group To Provide Service To FPL Energy
Facility
South Jersey Resources Group entered into a 5-year agreement
to supply fuel management services to FPL Energy's Marcus Hook
cogeneration facility. The 750-megawatt facility, currently
under construction in Philadelphia, PA, will serve the Sunoco
refinery and produce electricity to sell into the market. SJRG
will provide enough gas to the site annually to supply
approximately 292,000 homes. This contract will begin
contributing to SJI's profitability during the spring of 2004.
o Marina Energy Energizes The Borgata and SJI Profits
Marina Energy began a new chapter in energy services
leadership when the Borgata casino opened its doors on July 3,
2003. Marina's 26,000 square foot thermal plant will provide
for all of the casino's energy needs for at least the next 20
years and help to fuel the economic growth of Atlantic City.
SJI anticipates the project to be a significant profit
contributor from the start. SJI's 2003 performance will
include only 6 months of the thermal plant's results. The
first full year of operation will be 2004.
"Our success is evidence that our strategy works. We will continue to follow the
strategy we established five years ago of taking advantage of our strong
regional presence to sell energy-related services that complement our basic
utility service", says Biscieglia. "That enables us to operate from a low risk
platform and capitalize on skills and expertise we already possess."
Webcast and Conference Call Details
South Jersey Industries President and COO, Edward J. Graham, will host an open
conference call and webcast to discuss the company's
second quarter 2003 earnings on Tuesday, July 29, 2003 at 11:00 a.m. EDT.
To participate in the conference 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. SJI encourages
shareholders, media and members of the financial community to attend the
conference call and/or listen to the webcast.
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. Visit http://www.sjindustries.com for more information 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 first quarter
2003 SEC Form 10Q, 2002 SEC Form 10K and 2002 Annual Report for a 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
June 30,
2003 2002
Operating Revenues:
Utility $ 68,164 $ 62,777
Nonutility 38,051 21,423
Total Operating Revenues 106,215 84,200
Operating Expenses:
Cost of Gas Sold - Utility 41,965 38,875
Cost of Sales - Nonutility 34,682 19,345
Operation and Maintenance 19,839 18,533
Energy and Other Taxes 2,207 2,120
Operating Income 7,522 5,327
Other Income and Expense:
Equity in Affiliated Companies 192 203
Other 20 682
Total Other Income and Expense 212 885
Interest Charges * 3,721 4,392
Preferred Dividend Requirements
of Subsidiary 764 764
Income Taxes 1,293 335
Income from Continuing Operations 1,956 721
Discontinued Operations - Net (154) (118)
Cumulative Effect of a Change in
Accounting Principle - Net 0 0
Net Income Applicable to Common Stock $ 1,802 $ 603
Basic Earnings Per Common Share (Based on
Average Basic Common Shares Outstanding):
Continuing Operations $ 0.16 $ 0.06
Discontinued Operations - Net (0.01) (0.01)
Cumulative Effect of a Change in
Accounting Principle - Net 0.00 0.00
Basic Earnings Per Common Share $ 0.15 $ 0.05
Average Common Shares Outstanding - Basic 12,387 11,990
Diluted Earnings Per Common Share (Based on
Average Diluted Common Shares Outstanding):
Continuing Operations $ 0.16 $ 0.06
Discontinued Operations - Net (0.01) (0.01)
Cumulative Effect of a Change in
Accounting Principle - Net 0.00 0.00
Diluted Earnings Per Common Share $ 0.15 $ 0.05
Average Common Shares Outstanding - Diluted 12,489 12,073
Six Months Ended
June 30,
2003 2002
Operating Revenues:
Utility $ 284,304 $ 204,957
Nonutility 101,737 56,274
Total Operating Revenues 386,041 261,231
Operating Expenses:
Cost of Gas Sold - Utility 197,032 126,318
Cost of Sales - Nonutility 90,899 48,693
Operation and Maintenance 39,373 35,842
Energy and Other Taxes 7,321 5,962
Operating Income 51,416 44,416
Other Income and Expense:
Equity in Affiliated Companies 379 366
Other (96) 609
Total Other Income and Expense 283 975
Interest Charges * 7,705 9,039
Preferred Dividend Requirements
of Subsidiary 1,529 1,529
Income Taxes 17,672 14,384
Income from Continuing Operations 24,793 20,439
Discontinued Operations - Net (302) (150)
Cumulative Effect of a Change in
Accounting Principle - Net (426) 0
Net Income Applicable to Common Stock 24,065 20,289
Basic Earnings Per Common Share (Based on
Average Basic Common Shares Outstanding):
Continuing Operations $ 2.01 $ 1.71
Discontinued Operations - Net (0.03) (0.01)
Cumulative Effect of a Change in
Accounting Principle - Net (0.03) 0.00
Basic Earnings Per Common Share $ 1.95 $ 1.70
Average Common Shares Outstanding - Basic 12,316 11,952
Diluted Earnings Per Common Share (Based on
Average Diluted Common Shares Outstanding):
Continuing Operations $ 2.00 $ 1.70
Discontinued Operations - Net (0.03) (0.01)
Cumulative Effect of a Change in
Accounting Principle - Net (0.03) 0.00
Diluted Earnings Per Common Share $ 1.94 $ 1.69
Average Common Shares Outstanding - Diluted 12,408 12,011
Twelve Months Ended
June 30,
2003 2002
Operating Revenues:
Utility $ 465,466 $ 368,220
Nonutility 164,470 97,863
Total Operating Revenues 629,936 466,083
Operating Expenses:
Cost of Gas Sold - Utility 314,055 230,383
Cost of Sales - Nonutility 147,447 86,827
Operation and Maintenance 80,193 73,515
Energy and Other Taxes 12,165 10,183
Operating Income 76,076 65,175
Other Income and Expense:
Equity in Affiliated Companies 954 247
Other (171) 607
Total Other Income and Expense 783 854
Interest Charges * 16,342 19,172
Preferred Dividend Requirements
of Subsidiary 3,058 3,058
Income Taxes 23,693 18,070
Income from Continuing Operations 33,766 25,729
Discontinued Operations - Net (576) (321)
Cumulative Effect of a Change in
Accounting Principle - Net (426) 0
Net Income Applicable to Common Stock $ 32,764 $ 25,408
Basic Earnings Per Common Share (Based on
Average Basic Common Shares Outstanding):
Continuing Operations $ 2.76 $ 2.17
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 $ 2.68 $ 2.14
Average Common Shares Outstanding - Basic 12,220 11,878
Diluted Earnings Per Common Share (Based on
Average Diluted Common Shares Outstanding):
Continuing Operations $ 2.74 $ 2.16
Discontinued Operations - Net (0.05) (0.03)
Cumulative Effect of a Change in
Accounting Principle - Net (0.03) 0.00
Diluted Earnings Per Common Share $ 2.66 $ 2.13
Average Common Shares Outstanding - Diluted 12,315 11,931
* Net of rate recovery of carrying costs on certain
unrecovered fuel and environmental remediation expenses.