Exhibit 99.1
SJW CORP. ANNOUNCES 2009 ANNUAL AND FOURTH QUARTER
FINANCIAL RESULTS
SAN JOSE, CA, February 24, 2010 - SJW Corp. (NYSE: SJW) today
reported operating revenue for the year ended December 31, 2009 of
$216.1 million versus $220.3 million for the year ended December 31,
2008, a decrease of $4.2 million. The decrease in revenue was primarily
attributable to a decline in customer water usage of $12.8 million, as
well as $2.7 million in lower revenue from real estate operations due to
a tenant vacancy in the real estate portfolio. The revenue decreases
were partially offset by cumulative rate increases of $10.7 million and
revenue from new customers of $0.6 million.
Net income was $15.2 million for the year ended December 31, 2009,
compared to $21.5 million for the year ended December 31, 2008. Diluted
earnings per common share for the year ended December 31, 2009 were
$0.81, compared to $1.15 per share in 2008.
Water production costs for the year ended December 31, 2009 were
$83.5 million versus $90.2 million in 2008, a decrease of $6.7 million.
The decline in water production costs is primarily attributable to $7.3
million in lower customer water usage and $2.6 million in savings due to
greater surface water supply, offset by $3.2 million in higher per unit
costs paid for purchased water and groundwater extraction charges.
Operating expenses, excluding water production costs and income
taxes, for the year ended December 31, 2009 were $92.9 million versus
$84.0 million for 2008, an increase of $8.9 million. This increase was
primarily attributable to increases in 2009 of $4.0 million in
administrative and general expenses largely related to pension plan
expenses, $1.8 million in taxes other than income tax expense, $1.6
million in depreciation and amortization and $1.5 million in other
operating expenses. Income tax expense decreased $2.9 million for the
year ended December 31, 2009 to $10.3 million from $13.2 million for the
year ended December 31, 2008 as a result of lower pre-tax income. Total
operating expense, including water production costs, for the year ended
December 31, 2009 was $186.7 million, compared to total operating
expense of $187.5 million in 2008.
Fourth Quarter Financial Results
- --------------------------------
Operating revenue for the fourth quarter ended December 31, 2009 was
$48.6 million versus $49.5 million for the same period in 2008, a
decrease of $900,000. The decrease was attributable to $2.0 million in
lower customer water usage and $660,000 in lower revenue from real
estate operations, partially offset by $1.6 million in cumulative rate
increases and $79,000 in revenue from new customers.
Net income was $2.6 million for the fourth quarter ended December
31, 2009, compared to $4.2 million for the same period in 2008. Diluted
earnings per common share were $0.14 for the quarter ended December 31,
2009, compared to $0.23 per share for the same period in 2008.
Water production costs for the fourth quarter of 2009 were $17.4
million versus $20.3 million for the same period in 2008, a decrease of
$2.9 million. Lower customer water usage and savings due to greater
surface water supply contributed to the decrease.
Operating expenses, excluding water production costs and income
taxes, for the fourth quarter of 2009 were $23.4 million versus $21.5
million for the same period in 2008, an increase of $1.9 million. This
was attributable to increases of $945,000 in administrative and general
expenses due to pension plan expenses, $443,000 in depreciation and
amortization, $345,000 in other operating expenses and $186,000 in taxes
other than income tax expense. Income tax expense decreased $118,000
for the fourth quarter in 2009 to $1.5 million from $1.6 million for the
same period in 2008 due to lower pre-tax income. Total operating
expense for the quarter ended December 31, 2009, was $42.3 million
compared to $43.4 million in the period ended December 31, 2008.
Other comprehensive loss of $6.2 million and $1.4 million, net of
tax, for the full year and fourth quarter of 2009, 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 25, 2010. The webcast will be accessible until
April 26, 2010.
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)
(in thousands, except per share data)
THREE MONTHS ENDED TWELVE MONTHS ENDED
DECEMBER 31 DECEMBER 31
2009 2008 2009 2008
-----------------------------------------
OPERATING REVENUE $48,556 49,529 $216,097 220,347
OPERATING EXPENSE:
Operation:
Purchased water 9,753 10,729 45,317 48,291
Power 1,339 1,904 6,582 7,559
Groundwater extraction
charge 6,360 7,690 31,635 34,368
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Total water production
costs 17,452 20,323 83,534 90,218
Administrative and general 6,824 5,879 27,658 23,688
Other 4,640 4,295 17,861 16,390
Maintenance 3,490 3,511 13,172 13,123
Taxes other than income 1,985 1,799 8,549 6,793
Depreciation and amortization 6,451 6,008 25,643 24,043
Income taxes 1,469 1,587 10,280 13,198
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Total operating expense 42,311 43,402 186,697 187,453
-------------------------------------------
OPERATING INCOME 6,245 6,127 29,400 32,894
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 (3,625) (3,143) (14,229) (12,657)
-------------------------------------------
NET INCOME $ 2,620 4,208 $ 15,171 21,461
===========================================
Other comprehensive income
(loss), net $(1,375) 5,147 $ (6,236) 6,107
--------------------------------------------
COMPREHENSIVE INCOME $ 1,245 9,355 $ 8,935 27,568
============================================
Earnings per share
-Basic $ 0.14 0.23 $ 0.82 1.17
-Diluted 0.14 0.23 0.81 1.15
Dividends per share $ 0.17 0.16 $ 0.66 0.65
Weighted average shares outstanding
-Basic 18,498,920 18,435,907 18,486,536 18,410,122
-Diluted 18,703,127 18,631,466 18,680,458 18,609,836
SJW CORP.
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(in thousands)
DECEMBER 31 DECEMBER 31
2009 2008
--------------------------
ASSETS
UTILITY PLANT:
Land $ 8,558 $ 8,134
Depreciable plant and equipment 913,071 855,427
Construction in progress 11,119 7,142
Intangible assets 11,278 8,040
-----------------------
Total utility plant 944,026 878,743
Less accumulated depreciation and amortization 298,921 272,562
-----------------------
Net utility plant 645,105 606,181
REAL ESTATE INVESTMENT: 88,000 88,000
Less accumulated depreciation and amortization 7,188 5,511
-----------------------
Net real estate investment 80,812 82,489
CURRENT ASSETS:
Cash and equivalents 1,416 3,406
Accounts receivable and accrued unbilled
utility revenue 24,004 26,329
Prepaid expenses and other 2,590 2,226
-----------------------
Total current assets 28,010 31,961
OTHER ASSETS:
Investment in California Water Service Group 40,500 51,071
Debt issuance costs, net of accumulated
amortization 3,098 3,162
Regulatory assets 78,525 73,778
Other 2,424 2,235
-----------------------
124,547 130,246
-----------------------
$878,474 $850,877
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CAPITALIZATION AND LIABILITIES
CAPITALIZATION:
Common stock $ 9,635 $ 9,611
Additional paid-in capital 22,046 20,548
Retained earnings 207,888 204,744
Accumulated other comprehensive income 13,187 19,423
-----------------------
Total shareholders' equity 252,756 254,326
-----------------------
Long-term debt, less current portion 246,879 216,613
-----------------------
Total capitalization 499,635 470,939
CURRENT LIABILITIES:
Line of credit 5,800 18,400
Current portion of long-term debt 1,081 705
Accrued groundwater extraction charge and
purchased water 4,496 5,256
Purchased power 486 563
Accounts payable 6,562 5,758
Accrued interest 4,979 4,567
Other current liabilities 8,554 8,074
-----------------------
Total current liabilities 31,958 43,323
-----------------------
DEFERRED INCOME TAXES AND CREDITS 102,381 98,713
ADVANCES FOR CONSTRUCTION AND CONTRIBUTIONS
IN AID OF CONSTRUCTION 190,506 188,869
POSTRETIREMENT BENEFIT PLANS 47,484 42,331
OTHER NONCURRENT LIABILITIES 6,510 6,702
-----------------------
$878,474 $850,877
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