Exhibit 99.1
SJW CORP. ANNOUNCES
FIRST QUARTER FINANCIAL RESULTS
Board Declares Quarterly Dividend on Common Stock
SAN JOSE, CA, May 6, 2009 - SJW Corp. (NYSE: SJW) today reported
financial results for the first quarter of fiscal 2009, ended March 31,
2009. Operating revenue was $40.0 million in the quarter compared to
$41.2 million in 2008. The $1.2 million decrease in revenue primarily
reflects a decrease of $3.0 million in customer water usage as well as
$327,000 lower revenue from real estate operations. The revenue
decreases were partially offset by cumulative rate increases of $2.0
million and $67,000 from new connections.
In the first quarter of 2009, net income was $116,000 and diluted
earnings per common share were $0.01, compared to $2.7 million and $0.15
per share, respectively, in the first quarter of 2008.
Water production costs for the quarter ended March 31, 2009 were
$13.6 million compared to $13.5 million in 2008 despite lower unit sales
volume. The increase of approximately $100,000 in water production costs
reflects $794,000 in higher per unit costs for purchased water, groundwater
extraction and energy cost and $553,000 in decreased surface water supply,
offset by lower expenses of $1.2 million due to lower customer demand.
Nonwater production costs for the first quarter were $22.9 million
compared to $20.2 million in 2008. The increase of $2.7 million was
primarily attributable to an increase of $1.3 million in administrative
and general expense, primarily due to pension funding and legal and
administrative fees related to the closing of the Bulverde, Texas acquisition
which was finalized in the first quarter. Other increases were $700,000 in
taxes other than income tax, $488,000 in depreciation expense and $166,000
in all other expenses. Income tax expense for the first quarter decreased
to $101,000 in 2009 from $1.8 million in 2008.
The Directors of SJW Corp. today declared a quarterly dividend on
common stock of $0.165 per share. The dividend is payable on June 1, 2009
to shareholders of record on May 18, 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
MARCH 31
2009 2008
-----------------------
OPERATING REVENUE $40,021 41,253
OPERATING EXPENSE:
Operation:
Purchased water 7,789 6,996
Power 760 1,066
Groundwater extraction charge 5,052 5,416
-------- --------
Total production costs 13,601 13,478
Administrative and general 7,130 5,839
Other 3,977 3,683
Maintenance 2,916 3,044
Taxes other than income 2,290 1,590
Depreciation and amortization 6,551 6,063
Income taxes 101 1,786
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Total operating expense 36,566 35,483
-------- --------
OPERATING INCOME 3,455 5,770
Interest on long-term debt
and other (3,339) (3,052)
-------- --------
NET INCOME $ 116 2,718
Other comprehensive income
(loss), net (2,966) 733
-------- --------
COMPREHENSIVE INCOME (LOSS) $(2,850) 3,451
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Earnings per share
-Basic $0.01 0.15
-Diluted $0.01 0.15
Dividend per share $0.16 0.16
Weighted average shares outstanding
- Basic 18,470 18,377
- Diluted 18,658 18,592
SJW Corp.
Condensed Consolidated Balance Sheets
(Unaudited)
(thousands of dollars)
March 31 December 31
2009 2008
---------- -----------
ASSETS
UTILITY PLANT:
Land $ 8,402 8,134
Depreciable plant and equipment 866,872 855,427
Construction in progress 10,955 7,142
Intangible assets 10,790 8,040
--------- ---------
Total utility plant 897,019 878,743
Less accumulated depreciation
and amortization 279,503 272,562
--------- ---------
Net utility plant 617,516 606,181
REAL ESTATE INVESTMENT: 88,000 88,000
Less accumulated depreciation and amortization 5,930 5,511
--------- ---------
Net real estate investment 82,070 82,489
CURRENT ASSETS:
Cash and equivalents 2,436 3,406
Accounts receivable and accrued
unbilled utility revenue 24,800 26,329
Prepaid expenses and other 2,151 2,226
--------- ---------
Total current assets 29,387 31,961
OTHER ASSETS:
Investment in California Water Service Group 46,044 51,071
Unamortized debt issuance and
reacquisition costs 3,123 3,162
Regulatory assets 73,499 73,778
Other 2,757 2,235
--------- ---------
125,423 130,246
--------- ---------
$854,396 850,877
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CAPITALIZATION AND LIABILITIES
CAPITALIZATION:
Common stock $ 9,624 9,611
Additional paid-in capital 21,112 20,548
Retained earnings 202,079 204,744
Accumulated other comprehensive income 16,457 19,423
--------- ---------
Total shareholders' equity 249,272 254,326
Long-term debt, less current portion 226,407 216,613
--------- ---------
Total capitalization 475,679 470,939
CURRENT LIABILITIES:
Line of credit 16,700 18,400
Current portion of long-term debt 736 705
Accrued groundwater extraction charge and
purchased water 4,025 5,256
Purchased power 338 563
Accounts payable 7,670 5,758
Accrued interest 3,493 4,567
Other current liabilities 7,695 8,074
--------- ---------
Total current liabilities 40,657 43,323
DEFERRED INCOME TAXES AND CREDITS 97,850 98,713
ADVANCES FOR CONSTRUCTION AND CONTRIBUTIONS
IN AID OF CONSTRUCTION 189,690 188,869
POSTRETIREMENT BENEFIT PLANS 43,814 42,331
OTHER NONCURRENT LIABILITIES 6,706 6,702
--------- ---------
$854,396 850,877
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