Exhibit 99.1
SJW CORP. (NYSE: SJW) ANNOUNCES
THIRD QUARTER FINANCIAL RESULTS
Board Declares Quarterly Dividend on Common Stock
SAN JOSE, CA, October 25, 2007 - SJW Corp. (NYSE: SJW) today reported
net income of $8,011,000 for the quarter ended September 30, 2007, or diluted
earnings per common share of $0.43, compared to $8,858,000 or $0.48 per share
for the same quarter in 2006.
Operating revenue for the third quarter was $64,847,000 versus $63,119,000
for the same period in 2006, representing an increase of $1,728,000. The
increased revenue was due to $3,157,000 of cumulative rate increases, $260,000
from new connections, and $357,000 from other sources, partially offset by a
$2,046,000 decrease in revenue due to lower customer usage.
Total water production costs for the third quarter of 2007, consisting
of purchased water, energy costs and groundwater extraction charges increased
$3,042,000. Of this increase in production costs, $2,029,000 was from
additional purchased water due to decreased surface water supply and $2,231,000
was due to higher per unit costs for groundwater extraction, purchased water
and energy. These increased costs were partially offset by a $1,218,000
decrease due to lower customer usage.
Nonwater production cost increases include increased depreciation expense
of $182,000 due to higher investment in plant and $139,000 additional
maintenance expense compared to the third quarter of 2006. Administrative
and general expense, along with taxes other than income and other expenses
decreased $24,000. Income tax expense decreased by $941,000 to $5,178,000
in the third quarter of 2007 versus $6,119,000 in the third quarter of 2006.
Year-to-date diluted earnings per common share were $0.84 compared to
$1.05 for the same period in 2006. The decrease in year-to-date earnings was
primarily due to the increase in water production costs which is attributable
to the lack of surface water supply. There was no impact from the sale of
nonutility property in the first nine months of 2007 versus an $.08 gain from
the sale of nonutility property for the same period of 2006.
Operating revenue for the first nine months of the year increased
$14,265,000 due to cumulative rate increases of $7,723,000, increased
customer usage of $2,912,000, new customers of $2,711,000 and $919,000
from other sources.
Year-to-date water production costs increased by $14,560,000 which
was primarily attributable to $7,378,000 in water purchases necessitated
by decreases in surface water supply, $3,832,000 due to higher customer
demand and $3,350,000 due to higher per unit costs for groundwater
extraction, purchased water and energy. Nonwater production costs
increased $3,463,000, attributable to an increase of $1,298,000 in
maintenance expenses, an increase of $991,000 in depreciation expense,
an increase of $960,000 in administrative and general costs, and an
increase of $214,000 in taxes other than income and other expenses.
Year-to-date income tax expense decreased $2,139,000 to $10,419,000
from $12,558,000 in 2006.
Other comprehensive income of $642,000, net of tax, in the third
quarter of 2007 and other comprehensive loss of $1,247,000, net of tax,
year-to-date, was primarily due to changes in the market value of
SJW Corp.'s investment in California Water Service Group.
The Directors of SJW Corp. today declared a quarterly dividend on
common stock of $0.15125 per share. The dividend is payable on
December 1, 2007 to shareholders of record on November 5, 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 in 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 NINE MONTHS ENDED
SEPTEMBER 30 SEPTEMBER 30
2007 2006 2007 2006
-------------------------------------------
OPERATING REVENUE $64,847 63,119 158,999 144,734
OPERATING EXPENSE:
Operation:
Purchased water 16,760 16,067 39,373 34,233
Power 2,565 2,415 5,741 4,137
Groundwater extraction charge 10,222 8,023 22,343 14,527
------- ------- ------- -------
Total production costs 29,547 26,505 67,457 52,897
Administrative and general 5,575 5,632 16,630 15,670
Other 3,724 3,709 10,973 11,084
Maintenance 2,819 2,680 8,606 7,308
Taxes, other than income 1,583 1,565 4,739 4,414
Depreciation & amortization 5,690 5,508 16,975 15,984
Income taxes 5,178 6,119 10,419 12,558
------- ------- ------- -------
Total operating expense 54,116 51,718 135,799 119,915
------- ------- ------- -------
OPERATING INCOME 10,731 11,401 23,200 24,819
Gain on sale of nonutility property,
net of taxes of $1,056 - - - 1,535
Interest on long-term debt
and other (2,720) (2,543) (7,661) (6,822)
------- ------- ------- -------
NET INCOME $8,011 8,858 15,539 19,532
======= ======= ======= =======
Other comprehensive income
(loss), net 642 772 (1,247) ( 844)
------- ------- ------- -------
COMPREHENSIVE INCOME $8,653 9,630 14,292 18,688
======= ======= ======= =======
Earnings per share
-Basic $0.44 0.48 0.85 1.07
-Diluted $0.43 0.48 0.84 1.05
Dividend per share $0.15 0.14 0.45 0.42
Weighted average shares outstanding
- Basic 18,350,007 18,277,728 18,325,206 18,273,558
- Diluted 18,561,631 18,558,508 18,539,587 18,539,781
SJW Corp.
Condensed Consolidated Balance Sheets
(Unaudited)
(thousands of dollars, except share and per share data)
SEPTEMBER 30 DECEMBER 31
2007 2006
------------ -----------
ASSETS
UTILITY PLANT:
Land $ 5,668 4,837
Depreciable plant and equipment 764,249 716,679
Construction in progress 14,748 10,863
Intangible assets 8,040 8,040
------- -------
Total utility plant 792,705 740,419
Less accumulated depreciation and amortization 251,836 234,173
------- -------
Net utility plant 540,869 506,246
NONUTILITY PROPERTY: 88,010 43,868
Less accumulated depreciation and amortization 3,291 3,303
------- -------
Net nonutility property 84,719 40,565
CURRENT ASSETS:
Cash and cash equivalents 2,227 3,788
Accounts receivable and accrued
unbilled utility revenue 33,537 21,956
Sale proceeds held in trust account - 31,261
Prepaid expenses and other 2,842 2,470
------- -------
Total current assets 38,606 59,475
OTHER ASSETS:
Investment in California Water Service Group 42,337 44,438
Unamortized debt issuance and
reacquisition costs 3,264 3,220
Regulatory assets 49,581 50,483
Other 2,230 1,437
------- -------
97,412 99,578
------- -------
$761,606 705,864
======= =======
CAPITALIZATION AND LIABILITIES
CAPITALIZATION:
Common stock $ 9,563 9,522
Additional paid-in capital 18,574 16,267
Retained earnings 194,377 186,876
Accumulated other comprehensive income 14,270 15,517
------- -------
Shareholders' equity 236,784 228,182
Long-term debt, less current portion 196,461 163,648
------- -------
Total capitalization 433,245 391,830
CURRENT LIABILITIES:
Line of credit 7,500 15,500
Current portion of long-term debt 654 485
Accrued groundwater extraction charge and
purchased water 12,033 4,244
Purchased power 1,601 301
Accounts payable 7,978 7,267
Accrued interest 3,004 3,871
Accrued taxes 2,863 -
Other current liabilities 5,430 5,578
------- -------
Total current liabilities 41,063 37,246
DEFERRED INCOME TAXES AND CREDITS 80,445 83,347
ADVANCES FOR CONSTRUCTION AND CONTRIBUTIONS
IN AID OF CONSTRUCTION 172,347 163,180
POSTRETIREMENT BENEFIT PLANS 28,921 26,298
OTHER NONCURRENT LIABILITIES 5,585 3,963
------- -------
$761,606 705,864
======= =======