Exhibit 99.1
SJW CORP. ANNOUNCES
SECOND QUARTER FINANCIAL RESULTS
Board Declares Quarterly Dividend on Common Stock
SAN JOSE, CA, July 23, 2008 - SJW Corp. (NYSE: SJW) today reported
operating revenue for the second quarter ended June 30, 2008 of $60.1 million
versus $55.1 million for the same period in 2007, representing an increase of
$5.0 million. The increase in revenue was primarily attributable to
cumulative rate increases and increased demand for water.
Net income was $6.3 million for the quarter. Diluted earnings per common
share were $0.34, compared to $0.29 per share for the second quarter in 2007.
Water production cost for the second quarter of 2008 was $25.6 million
versus $24.1 million for the same period in 2007, representing an increase of
$1.5 million. Higher per-unit costs for purchased water and groundwater
extraction charges contributed $1.6 million to the increase along with
$488,000 due to higher demand. These expenses were partially offset by
$589,000 which is attributable to lower spending on purchased water due to
increased surface water supply compared to a year ago.
Non-water production cost for the second quarter of 2008 was $20.6
million versus $19.1 million for the same period in 2007, representing an
increase of $1.5 million. This was attributable to an increase of $441,000 in
other operating expenses, $383,000 in administrative and general expenses,
$312,000 in depreciation expense, $277,000 in maintenance expenses and $67,000
in other expenses. Income tax expense increased $474,000 in the second
quarter to $4.3 million in 2008 from $3.8 million in 2007 as a result of
higher pre-tax income.
Year-to-date operating revenue increased by $7.2 million to $101.3
million from $94.1 million in the first six months of 2007. The increase was
attributable to $5.9 million in cumulative rate increases, $646,000 in
increased customer demand, $450,000 from new customers, and $122,000 from
other sources.
Year-to-date net income was $9.0 million, compared to $7.5 million in
2007. Diluted earnings per common share were $0.48 in the first six months of
2008, compared to $0.41 per share for the same period in 2007.
Year-to-date water production costs increased to $39.1 million from $37.9
million in 2007. The increase was primarily attributable to $2.5 million in
higher costs for groundwater extraction and purchased water, offset by $1.5
million due to increased surface water supply. Non-water production cost
increased $2.3 million to $40.8 million from $38.5 million. Components of the
increase included $762,000 in depreciation expense, $529,000 in maintenance
expenses, $503,000 in other operating expenses, $432,000 in administrative and
general expenses, and $75,000 in other expenses. Income tax expense increased
$854,000 year-to-date due to higher income.
The Directors of SJW Corp. today declared a quarterly dividend on common
stock of $0.16125 per share. The dividend is payable on September 1, 2008 to
shareholders of record on August 4, 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, SJWTX,
Inc. and SJW Land Company. Together, San Jose Water Company and SJWTX, Inc.
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 SIX MONTHS ENDED
JUNE 30, JUNE 30,
2008 2007 2008 2007
OPERATING REVENUE $60,058 55,135 101,311 94,152
OPERATING EXPENSE:
Operation:
Purchased water 14,176 13,287 21,172 22,613
Power 2,010 2,264 3,076 3,176
Groundwater extraction charge 9,417 8,555 14,833 12,121
Total production costs 25,603 24,106 39,081 37,910
Administrative and general 5,648 5,265 11,487 11,055
Other 4,069 3,628 7,752 7,249
Maintenance 3,272 2,995 6,316 5,787
Taxes, other than income 1,641 1,574 3,231 3,156
Depreciation & amortization 5,984 5,672 12,047 11,285
Income taxes 4,309 3,835 6,095 5,241
Total operating expense 50,526 47,075 86,009 81,683
OPERATING INCOME 9,532 8,060 15,302 12,469
Interest on long-term debt
and other (3,254) (2,654) (6,306) (4,941)
NET INCOME $6,278 5,406 8,996 7,528
Other comprehensive income
(loss), net (3,491) ( 539) (2,758) (1,889)
COMPREHENSIVE INCOME $2,787 4,867 6,238 5,639
Earnings per share
-Basic $0.34 0.30 0.49 0.41
-Diluted $0.34 0.29 0.48 0.41
Dividend per share $0.16 0.15 0.32 0.30
Weighted average shares outstanding
- Basic 18,403 18,325 18,390 18,313
- Diluted 18,596 18,539 18,594 18,528
SJW Corp.
Condensed Consolidated Balance Sheets
(Unaudited)
(thousands of dollars)
June 30 December 31
2008 2007
ASSETS
UTILITY PLANT:
Land $ 5,704 5,695
Depreciable plant and equipment 820,732 778,277
Construction in progress 11,208 24,298
Intangible assets 8,040 8,040
Total utility plant 845,684 816,310
Less accumulated depreciation and amortization 265,194 255,025
Net utility plant 580,490 561,285
NONUTILITY PROPERTY: 88,029 88,029
Less accumulated depreciation and amortization 4,672 3,834
Net nonutility property 83,357 84,195
CURRENT ASSETS:
Cash and cash equivalents 1,836 2,354
Accounts receivable and accrued
unbilled utility revenue 35,243 26,823
Prepaid expenses and other 2,021 2,414
Total current assets 39,100 31,591
OTHER ASSETS:
Investment in California Water Service Group 36,045 40,720
Unamortized debt issuance and
reacquisition costs 3,257 3,345
Regulatory assets 44,088 44,712
Other 1,609 1,478
84,999 90,255
$787,946 767,326
CAPITALIZATION AND LIABILITIES
CAPITALIZATION:
Common stock $ 9,592 9,564
Additional paid-in capital 19,738 18,723
Retained earnings 198,302 195,331
Accumulated other comprehensive income 10,558 13,316
Shareholders' equity 238,190 236,934
Long-term debt, less current portion 217,033 216,312
Total capitalization 455,223 453,246
CURRENT LIABILITIES:
Line of credit 15,500 5,000
Current portion of long-term debt 643 622
Accrued groundwater extraction charge and
purchased water 9,065 5,595
Purchased power 1,499 514
Accounts payable 6,194 9,268
Accrued interest 4,567 4,522
Accrued taxes 395 791
Other current liabilities 7,154 6,642
Total current liabilities 45,017 32,954
DEFERRED INCOME TAXES AND CREDITS 77,414 76,378
ADVANCES FOR CONSTRUCTION AND CONTRIBUTIONS
IN AID OF CONSTRUCTION 179,081 175,167
POSTRETIREMENT BENEFIT PLANS 24,816 23,357
OTHER NONCURRENT LIABILITIES 6,395 6,224
$787,946 767,326