Exhibit 99.1
SJW CORP. (NYSE: SJW) ANNOUNCES
FIRST QUARTER FINANCIAL RESULTS
SAN JOSE, CA, April 27, 2006 - SJW Corp. (NYSE:SJW) diluted
earnings per common share for the quarter ended March 31, 2006 were
$0.23, compared to $0.15 for the same quarter in 2005. The increase
in net income is inclusive of the net of tax gain on the sale of
nonutility property of $1,535,000, or $0.08 per share, in January
2006.
Operating revenue for the first quarter was $33,741,000 versus
$33,306,000 for the same period in 2005, representing an increase of
$435,000 or 1%. Approximately $274,000 of the total revenue
increase was attributable to cumulative rate increases, $209,000 was
due to new customers, and $237,000 was due to increased parking
revenue. The revenue increase was offset by approximately a
$274,000 decrease due to lower customer demand and an $11,000
decrease resulting from other sources.
Total water production costs for the first quarter of 2006
consisting of purchased water, power and pump taxes, decreased
$945,000, or 9% from the first quarter of 2005. The decrease in
production costs of $1,397,000 was primarily attributable to a
greater availability of surface water. However, the decrease was
partially offset by increases of approximately $87,000 due to higher
customer demand, increases in the cost of purchased water and pump
tax of $341,000, and higher energy prices and other cost of $24,000.
Total quarterly operating expenses for the first quarter of
2006, excluding water production costs and income taxes, increased
$1,505,000 or 9% from 2005. The changes consisted principally of:
$543,000 increase in general and administrative costs which included
a $433,000 increase for salaries, benefits and retirement costs, a
$153,000 increase for liability insurance, a $137,000 increase for
professional services, and a $52,000 increase in other expenses
offset by a $232,000 refund of 2005 worker's compensation premiums.
In addition, other operating expenses increased $470,000,
maintenance expenses increased $267,000, and other taxes and
depreciation expense increased $225,000. Income tax expense
decreased $26,000 in the first quarter of 2006.
For the three months ended March 31, 2006, other comprehensive
income of $4,426,000, net of tax, was due to an increase in the
market value of the investment in California Water Service Group.
The Directors of SJW Corp. today declared a quarterly dividend
on common stock of $0.14125 per share. The dividend is payable on
June 1, 2006 to shareholders of record on May 8, 2006.
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 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. Certain factors that may cause actual
results, performance or achievements to materially differ are
described in SJW Corp.'s most recent reports on Form 10-K, Form 10-Q
and Form 8-K filed with the Securities and Exchange Commission. 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.
Condensed Consolidated Statements of Income and Comprehensive Income
(Unaudited)
(thousands of dollars, except share data)
THREE MONTHS ENDED TWELVE MONTHS ENDED
MARCH 31 MARCH 31
2006 2005 2006 2005
--------------------------------------------
OPERATING REVENUE $33,741 $33,306 $180,540 $169,154
OPERATING EXPENSE:
Operation:
Purchased water 6,654 7,012 44,595 41,722
Power 559 671 4,207 5,369
Pump taxes 2,136 2,611 16,887 21,263
------ ------ ------ ------
Total production costs 9,349 10,294 65,689 68,354
Administrative and general 5,091 4,548 21,239 17,522
Other 3,661 3,191 14,652 12,834
Maintenance 2,305 2,038 9,742 8,604
Taxes, other than income 1,470 1,412 5,731 5,398
Depreciation & amortization 5,190 5,023 19,822 19,111
Income taxes 1,894 1,920 14,747 12,319
------- ------ ------- -------
Total operating expense 28,960 28,426 151,622 144,142
------- ------ ------- -------
OPERATING INCOME 4,781 4,880 28,918 25,012
Condemnation gain, net of
taxes of $2,624 - - - 3,776
Sale of nonutility property, net
of taxes of $1,056 and $1,817 1,535 - 2,630 -
Interest on long-term debt
and other (2,113) (2,199) (8,186) (8,095)
-------- --------- -------- -------
NET INCOME $4,203 2,681 $23,362 20,693
======= ======== ======= ======
Other comprehensive income
(loss), net 4,426 (2,777) 5,295 3,570
------- --------- ------- ------
COMPREHENSIVE INCOME (LOSS) $8,629 (96) $28,657 24,263
======= ========= ======= ======
Earnings per share
-Basic $0.23 $0.15 $1.28 $1.13
-Diluted $0.23 $0.15 $1.26 $1.12
Comprehensive income (loss)
per share
-Basic $0.47 ($0.01) $1.57 $1.33
-Diluted $0.47 ($0.01) $1.55 $1.32
Dividend per share $0.14 $0.14 $0.54 $0.52
- Basic 18,271,270 18,271,026 18,271,340 18,273,242
- Diluted 18,530,097 18,441,938 18,502,248 18,411,390
SJW Corp.
Condensed Consolidated Balance Sheets
(Unaudited)
(thousands of dollars)
March 31 December 31
2006 2005
--------- -----------
ASSETS
UTILITY PLANT:
Land $ 4,412 1,735
Depreciable plant and equipment 657,053 648,931
Construction in progress 6,766 5,611
Intangible assets 7,840 7,840
------- -------
Total utility plant 676,071 664,117
Less accumulated depreciation and amortization 213,319 208,909
-------- --------
Net utility plant 462,752 455,208
NONUTILITY PROPERTY: 35,439 38,720
Less accumulated depreciation 3,533 3,870
------- -------
Net nonutility property 31,906 34,850
CURRENT ASSETS:
Cash and equivalents 9,817 9,398
Accounts receivable and accrued
unbilled utility revenue 16,794 19,851
Long-lived assets held-for-sale 2,738 149
Prepaid expenses and other 2,287 2,294
-------- -------
Total current assets 31,636 31,692
OTHER ASSETS:
Investment in California Water Service 49,553 42,051
Unamortized debt issuance and
reacquisition costs 3,089 3,131
Regulatory assets 13,119 13,037
Other 7,690 7,740
-------- -------
73,451 65,959
-------- -------
$599,745 $587,709
======== ========
CAPITALIZATION AND LIABILITIES
CAPITALIZATION:
Common stock $ 9,516 9,516
Additional paid-in capital 15,736 15,368
Retained earnings 162,210 160,588
Accumulated other comprehensive income 14,862 10,436
-------- -------
Shareholders' equity 202,324 195,908
Long-term debt 145,163 145,281
-------- -------
Total capitalization 347,487 341,189
CURRENT LIABILITIES:
Current portion of long-term debt 378 332
Pump tax and purchased water 2,936 3,985
Purchased power 611 804
Accounts payable 4,595 5,120
Accrued interest 2,215 3,618
Accrued taxes 4,527 1,619
Other current liabilities 5,047 5,466
------- -------
Total current liabilities 20,309 20,944
DEFERRED INCOME TAXES AND CREDITS 57,901 54,100
ADVANCES AND CONTRIBUTIONS 155,835 154,235
OTHER NONCURRENT LIABILITIES 18,213 17,241
------- -------
$599,745 $587,709
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