Exhibit 99.1
SJW CORP. (NYSE:SJW) ANNOUNCES 2008 ANNUAL AND FOURTH QUARTER
FINANCIAL RESULTS
SAN JOSE, CA, February 25, 2009 - SJW Corp. (NYSE:SJW) today reported
operating revenue for the year ended December 31, 2008 of $220.3 million
versus $206.6 million for the year ended December 31, 2007, an increase of
$13.7 million. The increase in revenue was primarily attributable to
cumulative rate increases.
Net income was $21.4 million for the year ended December 31, 2008,
compared to $19.3 million for the year ended December 31, 2007. Diluted
earnings per common share for the year ended December 31, 2008 were $1.15,
compared to $1.04 per share in 2007.
Water production costs for the year ended December 31, 2008 were $90.2
million versus $86.3 million in 2007, an increase of $3.9 million. Higher
per-unit costs for purchased water and groundwater extraction charges
contributed $6.0 million to the increase. These higher costs were
significantly offset by $2.1 million in lower spending on purchased water
due to increased surface water supply in 2008 compared to 2007.
Non-water production costs for the year ended December 31, 2008 were
$84.0 million versus $78.0 million for 2007, an increase of $6.0 million.
This increase was attributable to increases in 2008 of $1.5 million in
maintenance expenses, $1.5 million in other operating expenses, $1.4 million
in administrative and general expenses, $1.2 million in depreciation and
amortization and $486,000 in taxes other than income tax expense. Income
tax expense increased $649,000 for the year ended December 31, 2008 to $13.2
million from $12.5 million for the year ended December 31, 2007 as a result
of higher pre-tax income. Total operating expense for the year ended
December 31, 2008 was $187.5 million, compared to total operating expense
of $176.9 million in 2007.
Fourth Quarter Financial Results
- --------------------------------
Operating revenue for the fourth quarter ended December 31, 2008 was
$49.5 million versus $47.6 million for the same period in 2007, an increase
of $1.9 million. The increase was attributable to $3.5 million in cumulative
rate increases, partially offset by $1.6 million in lower customer usage.
Net income was $4.2 million for the fourth quarter ended December 31,
2008, compared to $3.8 million for the same period in 2007. Diluted
earnings per common share were $0.23 for the quarter ended December 31,
2008, compared to $0.20 per share for the same period in 2007.
Water production costs for the fourth quarter of 2008 were $20.3
million versus $18.8 million for the same period in 2007, an increase of
$1.5 million. Higher per-unit costs for purchased water and groundwater
extraction charges contributed $1.4 million to the increase.
Non-water production costs for the fourth quarter of 2008 were $21.5
million versus $20.1 million for the same period in 2007, an increase of
$1.4 million. This was attributable to increases of $489,000 in additional
maintenance expense, $361,000 of other operating expenses, $231,000 of taxes
other than income tax expense and $304,000 of other combined expenses. Income
tax expense decreased $543,000 for the fourth quarter in 2008 to $1.6 million
from $2.1 million for the same period in 2007. Total operating expense for
the quarter ended December 31, 2008, was $43.4 million compared to $41.1
million in the period ended December 31, 2007.
Other comprehensive income of $6.1 million and $5.1 million, net of tax,
for the full year and fourth quarter of 2008, respectively, was primarily due
to changes in the market value of SJW Corp's investment in California Water
Service Group.
SJW Corp. management will discuss the annual and fourth quarter results
in a webcast presentation available to interested parties from the Company's
website, www.sjwater.com, at 10:00 A.M. Pacific Time on Thursday, February 26,
2009. The webcast will be accessible until May 5, 2009.
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 TWELVE MONTHS ENDED
DECEMBER 31 DECEMBER 31
2008 2007 2008 2007
-------------------------------------------
OPERATING REVENUE $ 49,529 47,602 $220,347 206,601
OPERATING EXPENSE:
Operation:
Purchased water 10,729 9,223 48,291 48,596
Power 1,904 1,791 7,559 7,532
Groundwater extraction charge 7,690 7,798 34,368 30,141
---------------------------------------------
Total water production costs 20,323 18,812 90,218 86,269
Administrative and general 5,879 5,704 23,688 22,334
Other 4,295 3,934 16,390 14,907
Maintenance 3,511 3,022 13,123 11,628
Taxes other than income 1,799 1,568 6,793 6,307
Depreciation and amortization 6,008 5,879 24,043 22,854
Income taxes 1,587 2,130 13,198 12,549
--------------------------------------------
Total operating expense 43,402 41,049 187,453 176,848
--------------------------------------------
OPERATING INCOME 6,127 6,553 32,894 29,753
Sale of real estate investments, net of
taxes of $567 in 2008 832 - 832 -
Sale of utility property, net of taxes
of $269 in 2008 392 - 392 -
Interest on long-term debt and other (3,143) (2,769) (12,657) (10,430)
--------------------------------------------
NET INCOME $ 4,208 3,784 $ 21,461 19,323
============================================
Other comprehensive income
(loss), net $ 5,147 (954) $ 6,107 (2,201)
---------------------------------------------
COMPREHENSIVE INCOME $ 9,355 2,830 $ 27,568 17,122
=============================================
Earnings per share
-Basic $ 0.23 0.21 $ 1.17 1.05
-Diluted 0.23 0.20 1.15 1.04
Dividends per share $ 0.16 0.15 $ 0.65 0.60
Weighted average shares outstanding
-Basic 18,435,907 18,361,479 18,410,122 18,334,352
-Diluted 18,631,466 18,581,051 18,609,836 18,552,228
SJW CORP.
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(thousands of dollars)
DECEMBER 31 DECEMBER 31
ASSETS 2008 2007
-------------------------
UTILITY PLANT:
Land $ 8,134 $ 5,695
Depreciable plant and equipment 855,427 778,277
Construction in progress 7,142 24,298
Intangible assets 8,040 8,040
----------------------
Total utility plant 878,743 816,310
Less accumulated depreciation and amortization 272,562 255,025
----------------------
Net utility plant 606,181 561,285
REAL ESTATE INVESTMENT: 88,000 88,029
Less accumulated depreciation and amortization 5,511 3,834
----------------------
Net real estate investment 82,489 84,195
CURRENT ASSETS:
Cash and equivalents 3,406 2,354
Accounts receivable and accrued unbilled utility revenue 26,329 26,823
Prepaid expenses and other 2,226 2,414
----------------------
Total current assets 31,961 31,591
OTHER ASSETS:
Investment in California Water Service Group 51,071 40,720
Unamortized debt issuance and reacquisition costs 3,162 3,345
Regulatory assets 73,778 44,712
Other 2,235 1,478
----------------------
130,246 90,255
----------------------
$850,877 $767,326
======================
CAPITALIZATION AND LIABILITIES
CAPITALIZATION:
Common stock $ 9,611 $ 9,564
Additional paid-in capital 20,548 18,723
Retained earnings 204,744 195,331
Accumulated other comprehensive income 19,423 13,316
----------------------
Total shareholders' equity 254,326 236,934
Long-term debt, less current portion 216,613 216,312
----------------------
Total capitalization 470,939 453,246
CURRENT LIABILITIES:
Line of credit 18,400 5,000
Current portion of long-term debt 705 622
Accrued groundwater extraction charge and
purchased water 5,256 5,595
Purchased power 563 514
Accounts payable 5,758 9,268
Accrued interest 4,567 4,522
Other current liabilities 8,074 7,433
----------------------
Total current liabilities 43,323 32,954
DEFERRED INCOME TAXES AND CREDITS 98,713 76,378
ADVANCES FOR CONSTRUCTION AND CONTRIBUTIONS
IN AID OF CONSTRUCTION 188,869 175,167
POSTRETIREMENT BENEFIT PLANS 42,331 23,357
OTHER NONCURRENT LIABILITIES 6,702 6,224
----------------------
$850,877 $767,326
======================