SJW CORP. ANNOUNCES
FIRST QUARTER FINANCIAL RESULTS
Board Declares Quarterly Dividend on Common Stock
SAN JOSE, CA, April 30, 2008 - SJW Corp. (NYSE: SJW) today reported operating
revenue of $41.3 million in the quarter ended March 31, 2008, compared to $39.0
million in 2007. The increase of $2.2 million was primarily attributable to
cumulative rate increases of $2.5 million, $185,000 from new connections and
$146,000 from other sources, partially offset by a $618,000 decrease in
operating revenue due to lower customer usage.
Net income was $2.7 million in the first quarter. Diluted earnings per
common share were $0.15, compared to net income of $2.1 million and $0.11 per
share in the first quarter of 2007.
Water production costs for the quarter ended March 31, 2008 were $13.5
million compared to $13.8 million in 2007. Compared to the first quarter of
2007, unit costs for purchased water, groundwater extraction and energy were
higher, but were more than offset by purchasing less water because of
increased surface water supply and lower customer demand.
The decrease of $326,000 in water production costs quarter-to-quarter
reflects $896,000 in higher per unit costs for purchased water, groundwater
extraction and energy cost, offset by lower expenses of $922,000 due to
increased surface water supply, and by $300,000 due to lower customer demand.
Nonwater production costs for the first quarter were $20.2 million
compared to $19.4 in 2007. The increase of $821,000 was primarily
attributable to an increase of $450,000 in depreciation expense, $252,000 in
maintenance expenses and $119,000 in all other expenses. Income tax expense
for the first quarter increased to $1.8 million in 2008 from $1.4 in 2007.
The Directors of SJW Corp. today declared a quarterly
dividend on common stock of $0.16125 per share. The dividend is payable on
June 1, 2008 to shareholders of record on May 12, 2008.
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. The results for a quarter are not indicative of
results for a full year due to seasonality. 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 per share data)
THREE MONTHS ENDED
MARCH 31
2008 2007
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OPERATING REVENUE $41,253 39,017
OPERATING EXPENSE:
Operation:
Purchased water 6,996 9,326
Power 1,066 912
Groundwater extraction charge 5,416 3,566
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Total production costs 13,478 13,804
Administrative and general 5,839 5,790
Other 3,683 3,621
Maintenance 3,044 2,792
Taxes, other than income 1,590 1,582
Depreciation & amortization 6,063 5,613
Income taxes 1,786 1,406
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Total operating expense 35,483 34,608
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OPERATING INCOME 5,770 4,409
Interest on long-term debt
and other (3,052) (2,287)
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NET INCOME $2,718 2,122
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Other comprehensive income
(loss), net 733 (1,350)
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COMPREHENSIVE INCOME $ 3,451 772
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Earnings per share
-Basic $0.15 0.12
-Diluted $0.15 0.11
Dividend per share $0.16 0.15
Weighted average shares outstanding
- Basic 18,377 18,300
- Diluted 18,592 18,526
SJW Corp.
Condensed Consolidated Balance Sheets
(Unaudited)
(thousands of dollars)
March 31 December 31
2008 2007
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ASSETS
UTILITY PLANT:
Land $ 5,704 5,695
Depreciable plant and equipment 793,524 778,277
Construction in progress 23,572 24,298
Intangible assets 8,040 8,040
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Total utility plant 830,840 816,310
Less accumulated depreciation and amortization 259,489 255,025
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Net utility plant 571,351 561,285
NONUTILITY PROPERTY: 88,029 88,029
Less accumulated depreciation and amortization 4,253 3,834
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Net nonutility property 83,776 84,195
CURRENT ASSETS:
Cash and cash equivalents 1,715 2,354
Accounts receivable and accrued
unbilled utility revenue 23,726 26,823
Prepaid expenses and other 2,193 2,414
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Total current assets 27,634 31,591
OTHER ASSETS:
Investment in California Water Service Group 41,963 40,720
Unamortized debt issuance and
reacquisition costs 3,302 3,345
Regulatory assets 44,712 44,712
Other 1,573 1,478
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91,550 90,255
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$774,311 767,326
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CAPITALIZATION AND LIABILITIES
CAPITALIZATION:
Common stock $ 9,574 9,564
Additional paid-in capital 19,336 18,723
Retained earnings 195,038 195,331
Accumulated other comprehensive income 14,050 13,316
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Shareholders' equity 237,998 236,934
Long-term debt, less current portion 217,186 216,312
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Total capitalization 455,184 453,246
CURRENT LIABILITIES:
Line of credit 10,000 5,000
Current portion of long-term debt 675 622
Accrued groundwater extraction charge and
purchased water 4,845 5,595
Purchased power 386 514
Accounts payable 6,697 9,268
Accrued interest 3,349 4,522
Accrued taxes 2,597 791
Other current liabilities 5,648 6,642
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Total current liabilities 34,197 32,954
DEFERRED INCOME TAXES AND CREDITS 76,644 76,378
ADVANCES FOR CONSTRUCTION AND CONTRIBUTIONS
IN AID OF CONSTRUCTION 177,790 175,167
POSTRETIREMENT BENEFIT PLANS 24,343 23,357
OTHER NONCURRENT LIABILITIES 6,153 6,224
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$774,311 767,326
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