Exhibit 99.1
SJW CORP. ANNOUNCES FOURTH QUARTERx
FINANCIAL RESULTS
SAN JOSE, CA, January 31, 2005 ? SJW Corp.(AMEX:SJW) diluted
earnings per common share for the quarter ended December 31,
2004 were $0.83, compared to $0.33 for the same quarter in 2003.
Earnings include the condemnation gain on settlement of an
eminent domain lawsuit with the Valley Transportation Authority
involving SJW Land Company property. The settlement resulted in
a net gain of $3,776,000, or $0.41 earnings per common share.
Operating revenue for the fourth quarter was $37,942,000 versus
$34,819,000 for the same period in 2003, representing an
increase of $3,123,000 or 9%. Approximately $4,436,000 of the
total operating revenue increase was attributable to cumulative
rate increases. Additionally, customer growth contributed
$121,000 to increased revenue. The revenue increase was offset
by a $1,325,000 decrease due to lower customer sales and a
$109,000 decrease resulting from other sources.
Water production costs for the fourth quarter of 2004 consisting
of purchased water, power and pump taxes, increased $507,000 or
4% to $14,124,000 from $13,617,000 in the fourth quarter of
2003. The increase was due to relatively higher unit cost of
purchased water and related pump taxes aggregated $994,000 and
decreased surface water availability of $579,000. Lower customer
sales and power costs reduced water production costs by
$1,066,000.
Quarterly operating expenses for the fourth quarter of 2004,
excluding water production costs and income taxes, increased
$1,160,000 or 8% to $15,448,000 from $14,288,000 in the fourth
quarter of 2003. The increase consisted principally of $193,000
in maintenance expenses, $862,000 in depreciation expense on
added utility plant and other non-utility properties, and
$105,000 in other costs. Income tax expense for the fourth
quarter of 2004 was higher than the same period in 2003 due to
increased earnings.
Operating revenue for 2004 increased by $16,457,000, or 11%,
from 2003 primarily due to $3,414,000 from increased customer
consumption, $458,000 from new customers, $11,754,000 from rate
increases, and $831,000 in other revenue. The rate increases
were the result of the California Public Utilities Commission?s
approval of San Jose Water Company?s general rate case
application authorizing new rates effective August 2004 and an
offset rate increase to recover higher production costs. The
revenue increase was offset by increases in production and
operating expenses of $15,535,000, consisting principally of
$8,569,000 in water production costs, $1,083,000 in
administrative and general expenses, $3,256,000 in depreciation
expense and $2,627,000 in tax and other expenses. Diluted
earnings per common share in 2004 were $2.15 compared to $2.04
in 2003. The increase in 2004 earnings was primarily the result
of increased revenue due to rate increases partially offset by
increases in costs and expenses.
Other comprehensive income of $6,925,000 for the twelve months
ended December 31, 2004 was primarily due to the change in the
market value of the Company?s investment in California Water
Service Group.
In January 2004, SJW Corp. adopted Interpretation No. 46(R),
?Consolidation of Variable Interest Entities?, issued by the
Financial Accounting Standards Board. As a result, SJW Corp.
has restated its previously reported December 31, 2003
consolidated financial statements.
At the Board meeting held on January 27, 2005, the Board of
Directors of SJW Corp. declared a quarterly dividend on common
stock of $0.2675 per share. The dividend is payable on March 1,
2005 to shareholders of record on February 7, 2005.
SJW Corp. is a publicly traded holding company headquartered in
San Jose, California. SJW Corp., through its subsidiary San
Jose Water Company, provides water service to a population of
approximately one million people in the City of San Jose and
nearby communities.
This press release may contain certain forward-looking
statements including but not limited to statements relating to
SJW Corp.'s plans, strategies, objectives, expectations and
intentions, which are made pursuant to the safe harbor
provisions of the U.S. Private Securities Litigation Reform Act
of 1995. These forward-looking statements involve known and
unknown risks, uncertainties and other factors which may cause
the actual results, performance or achievements of SJW Corp. to
be materially different from any future results, performance or
achievements expressed or implied by such forward-looking
statements. SJW Corp. undertakes no obligation to publicly
update or revise any forward-looking statement, whether as a
result of new information, future events or otherwise.
SJW CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
AND COMPREHENSIVE INCOME
(UNAUDITED)
(In thousands, except share and per share data)
THREE MONTHS ENDED TWELVE MONTHS ENDED
DECEMBER 31 DECEMBER 31
2004 2003 2004 2003
(Restated) (Restated)
--------------------------------------------------
OPERATING REVENUE $ 37,942 34,819 $166,911 150,454
OPERATING EXPENSE:
Operation:
Purchased water 8,648 8,418 41,220 36,708
Power 992 1,036 5,511 5,296
Pump taxes 4,484 4,163 21,773 17,931
Administrative and
general 4,029 4,037 17,285 16,202
Other 3,249 3,183 12,892 12,585
Maintenance 2,171 1,978 8,674 7,724
Property taxes and other
nonincome taxes 1,308 1,261 5,314 5,065
Depreciation and
amortization 4,691 3,829 18,481 15,225
Income taxes 3,088 2,028 11,644 10,523
---------------------------------------------------
Total operating expense 32,660 29,933 142,794 127,259
---------------------------------------------------
OPERATING INCOME 5,282 4,886 24,117 23,195
Condemnation gain, net
of taxes of $2,624 3,776 - 3,776 -
Sale of non-utility property,
net of taxes of $2,106 - - - 3,030
Interest on long-term debt (2,111) (2,101) (9,247) (8,471)
Dividend income 311 309 1,243 1,237
Other, net 417 (93) (103) (314)
-------------------------------------------------
NET INCOME $ 7,675 3,001 $ 19,786 18,677
=================================================
Other comprehensive income:
Unrealized income on
investment $ 9,381 1,350 $ 11,547 4,125
Income taxes (3,734) (717) (4,622) (2,090)
-------------------------------------------------
Other comprehensive income,
net $ 5,647 633 $ 6,925 2,035
-------------------------------------------------
COMPREHENSIVE INCOME $13,322 3,634 $ 26,711 20,712
=================================================
Earnings per share
- Basic $ 0.84 0.33 $ 2.17 2.04
- Diluted 0.83 0.33 2.15 2.04
Comprehensive income per share
- Basic $ 1.46 0.40 $ 2.92 2.27
- Diluted 1.45 0.40 2.90 2.26
Dividends per share $ 0.26 0.24 $ 1.02 0.97
Weighted average shares outstanding
- Basic 9,135,441 9,135,441 9,136,599 9,135,441
- Diluted 9,208,807 9,170,187 9,197,423 9,148,476
SJW Corp. has restated its previously reported 2003 Consolidated Statements
of Income and Comprehensive Income as a result of adopting Interpretation No.
46(R), "Consolidation of Variable Interest Entities" (FIN46R). As a result
of the adoption of FIN46R, SJW Corp. has consolidated its limited partnership
interest in 444 West Santa Clara Street, L.P.
SJW CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(In thousands)
DECEMBER 31 DECEMBER 31
ASSETS 2004 2003
(Restated)
--------------------------
UTILITY PLANT:
Land $ 1,735 1,750
Depreciable plant and equipment 605,420 570,119
Construction in progress 4,595 4,000
Intangible assets 7,840 7,840
----------------------
Total utility plan 619,590 583,709
Less accumulated depreciation and amortization 189,221 174,985
----------------------
Net utility plant 430,369 408,724
NONUTILITY PROPERTY: 35,154 34,918
Less accumulated depreciation 3,167 2,349
----------------------
Net nonutility property 31,987 32,569
CURRENT ASSETS:
Cash and equivalents 10,899 10,278
Accounts receivable and accrued unbilled
utility revenue 15,260 15,043
Prepaid expenses and other 2,211 2,019
----------------------
Total current assets 28,370 27,340
OTHER ASSETS:
Investment in California Water Service Group 41,413 30,139
Unamortized debt issuance and reacquisition costs 3,300 3,447
Regulatory assets 8,064 7,976
Other 8,649 6,049
----------------------
Total other assets 61,426 47,611
----------------------
$552,152 $516,244
======================
CAPITALIZATION AND LIABILITIES
CAPITALIZATION:
Common stock $ 9,516 $ 9,516
Additional paid-in capital 14,306 13,375
Retained earnings 148,525 138,058
Accumulated other comprehensive income 12,344 5,419
----------------------
Total shareholders' equity 184,691 166,368
Long-term debt, less current portion 143,604 143,947
----------------------
Total capitalization 328,295 310,315
CURRENT LIABILITIES:
Current portion of long-term debt 275 184
Accrued pump taxes and purchased water 3,856 3,224
Purchased power 848 864
Accounts payable 870 2,217
Accrued interest 3,619 3,619
Accrued taxes 890 467
Other current liabilities 4,993 4,501
----------------------
Total current liabilities 15,351 15,076
DEFERRED INCOME TAXES 51,422 38,689
ADVANCES FOR AND CONTRIBUTIONS IN AID OF CONSTRUCTION 143,906 141,122
OTHER NONCURRENT LIABILITIES 13,178 11,042
----------------------
$552,152 $516,244
======================
SJW Corp. has restated its previously reported December 31, 2003 Consolidated
Balance Sheets as a result of adopting FIN46R. As a result of the adoption
of FIN46R, SJW Corp. has consolidated its limited partnership interest in 444
West Santa Clara Street, L.P.
Filename:ex991-4q2004
SJW Corp.
News Release
January 29, 2004
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