Exhibit 99.1
SJW CORP. (NYSE: SJW) ANNOUNCES
THIRD QUARTER FINANCIAL RESULTS
Board Declares Quarterly Dividend on Common Stock
SAN JOSE, CA, October 22, 2008 - SJW Corp. (NYSE: SJW) today
reported operating revenue for the third quarter ended September 30,
2008 of $69.5 million versus $64.9 million for the same period in 2007,
representing an increase of $4.7 million. The increase in revenue was
primarily attributable to cumulative rate increases.
Net income was $8.3 million for the quarter compared to $8.0 million
for the same quarter in 2007. Diluted earnings per common share were
$0.44, compared to $0.43 per share for the same quarter in 2007.
Water production costs for the third quarter of 2008 were $30.8
million versus $29.6 million for the same period in 2007, an increase of
$1.3 million. Higher per-unit costs for purchased water and groundwater
extraction charges contributed $2.2 million to the increase. These
expenses were significantly offset by lower spending on purchased water
due to increased surface water supply compared to a year ago.
Non-water production costs for the third quarter of 2008 were $21.7
million versus $19.4 million for the same period in 2007, an increase of
$2.3 million. This was attributable to increases of $747,000 in
administrative and general expenses, $619,000 in other operating expenses,
$477,000 in maintenance expenses, $298,000 in depreciation and amortization
and $180,000 in property and other non-income taxes. Income tax expense
increased $338,000 in the third quarter to $5.5 million in 2008 from
$5.2 million in 2007 as a result of higher pre-tax income.
Year-to-date operating revenue increased by $11.8 million to $170.8
million from $159.0 million in the first nine months of 2007. The increase
was attributable to $10.4 million in cumulative rate increases, $831,000
in increased usage, $432,000 from new customers, and $144,000 from other
sources.
Year-to-date net income was $17.3 million, compared to $15.5 million
in 2007. Diluted earnings per common share were $0.93 in the first nine
months of 2008, compared to $0.84 per share for the same period in 2007.
Year-to-date water production costs increased to $69.9 million
from $67.5 million in 2007. The increase was primarily attributable to
$4.7 million in higher costs for groundwater extraction and purchased
water, partially offset by $1.9 million saved due to increased surface
water supply. Non-water production costs increased $4.6 million to $62.5
million from $57.9 million. Components of the increase included $1.2
million in administrative and general expenses, $1.1 million in other
operating expenses, $1.0 million in maintenance expenses, $1.0 million
in depreciation and amortization expense and $255,000 in property and
other non-income taxes. Income tax expense increased $1.2 million
year-to-date due to higher pre-tax income.
The Directors of SJW Corp. today declared a quarterly dividend on
common stock of $0.16125 per share. The dividend is payable on December
1, 2008 to shareholders of record on November 3, 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 and nearby communities. 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 share and per share data)
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30 SEPTEMBER 30
2008 2007 2008 2007
----------------------------------------
OPERATING REVENUE $69,507 64,847 170,818 158,999
OPERATING EXPENSE:
Operation:
Purchased water 16,390 16,760 37,562 39,373
Power 2,579 2,565 5,655 5,741
Groundwater extraction charge 11,845 10,222 26,678 22,343
------- ------- ------- -------
Total production costs 30,814 29,547 69,895 67,457
Administrative and general 6,322 5,575 17,809 16,630
Other 4,343 3,724 12,095 10,973
Maintenance 3,296 2,819 9,612 8,606
Taxes, other than income 1,763 1,583 4,994 4,739
Depreciation and amortization 5,988 5,690 18,035 16,975
Income taxes 5,516 5,178 11,611 10,419
------- ------- ------- -------
Total operating expense 58,042 54,116 144,051 135,799
------- ------- ------- -------
OPERATING INCOME 11,465 10,731 26,767 23,200
Interest on long-term debt
and other (3,208) (2,720) (9,514) (7,661)
------- ------- ------- -------
NET INCOME $8,257 8,011 17,253 15,539
======= ======= ======= =======
Other comprehensive income
(loss), net 3,718 642 960 (1,247)
------- ------- ------- -------
COMPREHENSIVE INCOME $11,975 8,653 18,213 14,292
======= ======= ======= =======
Earnings per share
-Basic $0.45 0.44 0.94 0.85
-Diluted $0.44 0.43 0.93 0.84
Dividend per share $0.16 0.15 0.48 0.45
Weighted average shares outstanding
- Basic 18,423,325 18,350,007 18,401,458 18,325,206
- Diluted 18,618,780 18,561,631 18,602,557 18,539,587
SJW Corp.
Condensed Consolidated Balance Sheets
(Unaudited)
(thousands of dollars, except share and per share data)
SEPTEMBER 30 DECEMBER 31
2008 2007
------------ -----------
ASSETS
UTILITY PLANT:
Land $ 5,687 5,695
Depreciable plant and equipment 829,202 778,277
Construction in progress 15,655 24,298
Intangible assets 8,040 8,040
-------- --------
Total utility plant 858,584 816,310
Less accumulated depreciation and amortization 267,256 255,025
-------- --------
Net utility plant 591,328 561,285
REAL ESTATE INVESTMENT: 89,302 88,029
Less accumulated depreciation and amortization 5,092 3,834
-------- --------
Net real estate investment 84,210 84,195
CURRENT ASSETS:
Cash and cash equivalents 2,177 2,354
Accounts receivable and accrued
unbilled utility revenue 37,385 26,823
Prepaid expenses and other 2,562 2,414
-------- --------
Total current assets 42,124 31,591
OTHER ASSETS:
Investment in California Water Service Group 42,348 40,720
Unamortized debt issuance and reacquisition costs 3,209 3,345
Regulatory assets 43,776 44,712
Other 1,942 1,478
-------- --------
91,275 90,255
-------- --------
$808,937 767,326
======== ========
CAPITALIZATION AND LIABILITIES
CAPITALIZATION:
Common stock $ 9,597 9,564
Additional paid-in capital 20,137 18,723
Retained earnings 203,547 195,331
Accumulated other comprehensive income 14,277 13,316
-------- --------
Shareholders' equity 247,558 236,934
Long-term debt, less current portion 216,773 216,312
-------- --------
Total capitalization 464,331 453,246
CURRENT LIABILITIES:
Line of credit 18,900 5,000
Current portion of long-term debt 758 622
Accrued groundwater extraction charge and
purchased water 9,154 5,595
Purchased power 900 514
Accounts payable 8,426 9,268
Accrued interest 3,431 4,522
Accrued taxes 3,366 791
Other current liabilities 6,864 6,642
-------- --------
Total current liabilities 51,799 32,954
DEFERRED INCOME TAXES AND CREDITS 81,441 76,378
ADVANCES FOR CONSTRUCTION AND CONTRIBUTIONS
IN AID OF CONSTRUCTION 182,372 175,167
POSTRETIREMENT BENEFIT PLANS 22,553 23,357
OTHER NONCURRENT LIABILITIES 6,441 6,224
-------- --------
$808,937 767,326
======== ========