Exhibit 99.1
SJW CORP. (NYSE: SJW) ANNOUNCES
FIRST QUARTER FINANCIAL RESULTS
Board Declares Quarterly Dividend on Common Stock
SAN JOSE, CA, April 26, 2007 - SJW Corp. (NYSE: SJW) today
reported net income of $2.122 million for the quarter ended March 31,
2007, or diluted earnings per common share of $0.11, compared to
$4.203 million or $0.23 per share for the same quarter in 2006.
During the first quarter of 2006, a sale of nonutility property
contributed approximately $1.535 million or $0.08 per share to
earnings.
Operating revenue for the first quarter was $39,017,000 versus
$33,741,000 for the same period in 2006, representing an increase of
$5,276,000 or 16%. Approximately $2,284,000 of the total revenue
increase was attributable to cumulative rate increases, $1,453,000
came from increased customer demand, $1,365,000 was attributable to
new connections, and $174,000 was from other sources.
"The first quarter represented another strong revenue period for
SJW Corp.," said W. Richard Roth, President and Chief Executive
Officer. "Our team is executing well, and we are excited about the
progress we are making with Canyon Lake Water Service Company in
Texas."
"At the same time, during the quarter, we experienced increased
production costs due to increased purchased water. Rainfall to date
in our watershed in California has been a little less than half of
normal levels, and this could mean continued increases in purchased
water and groundwater production for the next few quarters."
Total water production costs for the first quarter of 2007,
consisting of purchased water, energy and groundwater extraction
charges, increased $4,455,000, or 15% from the first quarter of 2006.
Of this increase in production costs, $2,185,000 was attributable to
decreased surface water supply necessitating additional purchased
water, $1,923,000 was due to higher customer demand and $347,000 was
spent on higher costs for groundwater extraction, higher energy prices
and other costs.
Total quarterly administrative and general expenses in the first
quarter of 2007 increased $699,000 from 2006 due to $370,000 dedicated
to operation of the Canyon Lake Water Service Company which was
acquired in the second quarter of 2006, $396,000 in increased
salaries, benefits and retirement costs, $142,000 in increased
worker's compensation costs due to a nonrecurring refund received in
the first quarter of 2006, offset by a $209,000 decrease in other
costs. In addition, maintenance expenses increased $487,000,
depreciation expense increased $423,000, and taxes other than income
increased $112,000. Income tax expense decreased $488,000 in the
first quarter of 2007 versus the first quarter of 2006.
During the quarter, SJW Land Company, a wholly-owned subsidiary
of SJW Corp., announced the purchase of real estate located in
Knoxville, Tennessee, for an aggregate purchase price of approximately
$47,625,000. The purchase was funded from proceeds of a nonutility
property sale that occurred in the fourth quarter of 2006,
along with borrowed funds of approximately $13,500,000. "The
purchase of the office building, distribution facility and adjacent
acreage in Knoxville is in line with our goal of owning income-
producing properties that provide a return consistent with the return
on the entire real estate portfolio," said Mr. Roth.
For the three months ended March 31, 2007, other comprehensive
loss of $1,350,000, net of tax, was due to a decrease in the market
value of the investment in California Water Service Group as of that
date.
Additionally, the Directors of SJW Corp. today declared a
quarterly dividend on common stock of $0.15125 per share. The
dividend is payable on June 1, 2007 to shareholders of record on May
7, 2007.
SJW Corp. is a publicly traded holding company headquartered in San
Jose, California. SJW Corp. is the parent company of San Jose Water
Company, Canyon Lake Water Service Company and SJW Land Company.
Together San Jose Water Company and Canyon Lake Water Service Company
provide regulated and nonregulated water service to more than one
million people in San Jose, California and nearby communities and Canyon
Lake, Texas. SJW Land Company owns and operates commercial buildings,
has a majority interest in a real estate partnership, and has properties
in the states of California, Florida, Connecticut, Texas, Arizona and
Tennessee.
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 and per share data)
THREE MONTHS ENDED
MARCH 31
2007 2006
----------------------
OPERATING REVENUE $39,017 33,741
OPERATING EXPENSE:
Operation:
Purchased water 9,326 6,654
Power 912 559
Groundwater extraction charge 3,566 2,136
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Total production costs 13,804 9,349
Administrative and general 5,790 5,091
Other 3,621 3,661
Maintenance 2,792 2,305
Taxes, other than income 1,582 1,470
Depreciation & amortization 5,613 5,190
Income taxes 1,406 1,894
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Total operating expense 34,608 28,960
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OPERATING INCOME 4,409 4,781
Gain on sale of nonutility property,
net of taxes of $1,056 - 1,535
Interest on long-term debt
and other (2,287) (2,113)
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NET INCOME $2,122 4,203
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Other comprehensive income
(loss), net (1,350) 4,426
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COMPREHENSIVE INCOME $ 772 8,629
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Earnings per share
-Basic $0.12 0.23
-Diluted $0.11 0.23
Dividend per share $0.15 0.14
Weighted average shares outstanding
- Basic 18,300,260 18,271,270
- Diluted 18,526,120 18,530,097
SJW Corp.
Condensed Consolidated Balance Sheets
(Unaudited)
(thousands of dollars, except share and per share data)
March 31 December 31
2007 2006
-------- -----------
ASSETS
UTILITY PLANT:
Land $ 4,837 4,837
Depreciable plant and equipment 726,757 716,679
Construction in progress 13,924 10,863
Intangible assets 8,040 8,040
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Total utility plant 753,558 740,419
Less accumulated depreciation and amortization 240,243 234,173
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Net utility plant 513,315 506,246
NONUTILITY PROPERTY: 91,721 43,868
Less accumulated depreciation and amortization 3,220 3,303
------- -------
Net nonutility property 88,501 40,565
CURRENT ASSETS:
Cash and cash equivalents 2,691 3,788
Accounts receivable and accrued
unbilled utility revenue 21,121 21,956
Sale proceeds held in trust account - 31,261
Prepaid expenses and other 2,034 2,470
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Total current assets 25,846 59,475
OTHER ASSETS:
Investment in California Water Service Group 42,150 44,438
Unamortized debt issuance and
reacquisition costs 3,356 3,220
Regulatory assets 50,483 50,483
Other 1,267 1,437
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97,256 99,578
------- -------
$724,918 705,864
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CAPITALIZATION AND LIABILITIES
CAPITALIZATION:
Common stock $ 9,538 9,522
Additional paid-in capital 17,390 16,267
Retained earnings 186,612 186,876
Accumulated other comprehensive income 14,167 15,517
======= =======
Shareholders' equity 227,707 228,182
Long-term debt, less current portion 196,836 163,648
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Total capitalization 424,543 391,830
CURRENT LIABILITIES:
Line of credit - 15,500
Current portion of long-term debt 644 485
Accrued groundwater extraction charge and
purchased water 4,971 4,244
Purchased power 419 301
Accounts payable 4,351 7,267
Accrued interest 2,827 3,871
Accrued taxes 2,409 -
Other current liabilities 4,213 5,578
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Total current liabilities 19,834 37,246
DEFERRED INCOME TAXES AND CREDITS 82,087 83,347
ADVANCES FOR CONSTRUCTION AND CONTRIBUTIONS
IN AID OF CONSTRUCTION 166,403 163,180
POSTRETIREMENT BENEFIT PLANS 27,368 26,298
OTHER NONCURRENT LIABILITIES 4,683 3,963
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$724,918 705,864
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