Total Number of Pages 8
FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
Quarterly Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
For Quarter Ended March 31, 1994
Commission file number 1-8966
SJW Corp.
(Exact name of registrant as specified in its charter)
California 77-0066628
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
374 West Santa Clara Street, San Jose, CA 95196
(Address of principal executive offices)
(Zip Code)
408-279-7810
(Registrant's telephone number, including area code)
Not Applicable
(Former name, former address and former fiscal year changed
since last report)
Indicate by check mark whether the registrant (1) has
filed all reports required to be filed by Section 13 or 15(d)
of the Securities Exchange Act of 1934 during the preceding
12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days.
Yes x No
APPLICABLE ONLY TO CORPORATE ISSUERS:
Common stock outstanding as of April 1, 1994 and as of the
date of this report is 3,250,746 shares.
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PART 1. FINANCIAL INFORMATION
Item 1. FINANCIAL STATEMENTS
--------------------
SJW CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF INCOME
(UNAUDITED)
(In thousands, except share data)
THREE MONTHS ENDED
MARCH 31
1994 1993
------ ------
Operating revenue $ 18,991 17,176
Operating expense:
Operation:
Purchased water 3,489 3,931
Power 757 372
Pump taxes 2,794 1,357
Other 5,641 4,708
Maintenance 1,354 1,185
Property and other
nonincome taxes 716 677
Depreciation 1,825 1,691
Income taxes 629 946
------ ------
17,205 14,867
------ ------
Operating income 1,786 2,309
Other income 147 173
Dividend income 272 264
Interest and other charges (1,381) (1,355)
------ ------
Net income $ 824 1,391
====== ======
Earnings per share of common stock $ 0.25 0.43
====== ======
Dividends per share of common stock $ 0.525 0.510
====== ======
Weighted average outstanding
commom shares 3,236,992 3,232,377
========= =========
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SJW CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET
(UNAUDITED)
(In thousands)
MARCH 31 DECEMBER 31
1994 1993
---- ----
ASSETS
Utility plant $ 297,504 293,683
Less accumulated depreciation 91,072 90,030
------- -------
Net utility plant 206,432 203,653
Nonutility property 7,041 6,775
Current assets:
Cash and equivalents 1,025 2,363
Temporary investments 0 195
Accounts receivable and accrued revenue 7,859 8,025
Prepaid expenses and other 2,802 3,099
------ ------
Total current assets 11,686 13,682
Other assets:
Investment in California Water
Service Company 18,974 21,999
Debt issuance and reacquisition costs 4,375 4,389
Regulatory asset 4,060 4,060
Goodwill 1,890 1,906
Other 315 387
------- -------
Total other assets 29,614 32,741
------- -------
$ 254,773 256,851
======= =======
CAPITALIZATION AND LIABILITIES
Capitalization:
Common stock $ 10,116 10,116
Additional paid-in capital 21,763 21,763
Retained earnings 68,098 68,980
Unrealized gain on investment 486 2,271
------- -------
Total common shareholders' equity 100,463 103,130
Long-term debt,
less current maturities 64,000 64,000
------- -------
Total capitalization 164,463 167,130
Current liabilities:
Current maturities of long-term debt 2,000 2,000
Line of credit 1,100 -
Accounts payable 626 421
Accrued interest 1,509 1,431
Accrued pump taxes and purchased water 2,391 3,264
Postretirement benefits 1,309 1,168
Other current liabilities 2,454 1,787
------- -------
Total current liabilities 11,389 10,071
Deferred income taxes and tax credits 15,981 16,937
Other noncurrent liabilities 1,800 1,933
Advances for and contributions in aid
of construction 61,140 60,780
------- -------
$ 254,773 256,851
======= =======
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SJW CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(UNAUDITED)
(In thousands)
THREE MONTHS ENDED
MARCH 31
1994 1993
---- ----
Operating activities:
Net income $ 824 1,391
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation 1,825 1,655
Deferred income taxes and credits 283 (229)
Changes in operating assets and
liabilities:
Accounts receivable and
accrued revenue 166 1,346
Accounts payable and other
current liabilities 872 (255)
Accrued pump taxes and
purchased water (873) (295)
Conservation fees 0 (190)
Income taxes payable 384 1,054
Accrued interest 78 753
Other changes, net 90 955
------ ------
Net cash provided by operating activities 3,649 6,185
------ ------
Investing activities:
Additions to utility plant (4,859) (4,157)
Additions to nonutility property (224) -
Cost to retire utility plant (52) (65)
Temporary investments 195 1,605
------ ------
Net cash used in investing activities (4,940) (2,617)
------ ------
Financing activities:
Dividends paid (1,707) (1,661)
Line of credit 1,100 (1,594)
Advances and contributions in aid of
construction 799 1,044
Refunds of advances (239) (236)
------ ------
Net cash used in financing activities (47) (2,447)
------ ------
Net change in cash andequivalents (1,338) 1,121
Cash and equivalents, beginning of period 2,363 5,616
------ ------
Cash and equivalents, end of period $ 1,025 6,737
====== ======
Supplemental disclosures of cash flow information:
Cash paid during period for:
Interest $ 1,229 588
Income taxes $ - -
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SJW CORP. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
March 31, 1994
NOTE I - General
In the opinion of SJW Corp., the accompanying
unaudited condensed consolidated financial
statements contain all adjustments, consisting only
of normal recurring adjustments, necessary for the
fair presentation of the results for the interim
periods.
The Notes to Consolidated Financial Statements
in the Company's 1993 Annual Report on Form 10-K should
be read with the accompanying condensed consolidated
financial statements.
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PART II. OTHER INFORMATION
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
Liquidity and Capital Resources:
On November 1, 1994 San Jose Water Company ("SJWC") will
retire its 4.65% Series M first mortgage bonds in the
amount of $2,000,000, plus accrued interest.
SJWC's 1994 construction budget of $10,100,000 will be
funded by cash flow from operations and the commercial
bank line of credit. SJWC does not currently intend to
issue long-term debt in 1994.
As of March 31, 1994, SJWC had $1,100,000 outstanding on
its commercial bank line of credit. The line of credit
provides for unsecured borrowings of up to $15,000,000 at
rates which approximate the bank's reference rate.
Results of Operations:
First Quarter of 1994
First quarter 1994 operating revenue increased $1,815,000
or 10.6%, from the first quarter 1993, while operating
expense increased $2,338,000, or 15.7%. The increase in
revenue results primarily from a 14% increase in usage
over the first quarter of 1993. The increase in
operating expense is due primarily to a 1.1 billion
gallon, or 71% decrease in surface water supplies.
Surface water is the least costly of SJWC's sources of
water supply.
Consolidated earnings per common share for the first
quarter of 1994 were $0.25, as compared to earnings of
$0.43 per common share in the first quarter of 1993.
Since the water business is highly seasonal in nature, a
comparison of the revenues and expenses of the current
quarter with the immediately preceding quarter would not
be meaningful. The first quarter is normally the quarter
with the lowest average usage per metered customer and is
not indicative of the results for the calendar year.
Water Supply
SJWC and its wholesale supplier, the Santa Clara Valley
Water District, terminated mandatory water rationing
effective March 14, 1993. In place of the terminated
mandatory water rationing plan the Company instituted a
voluntary conservation program intended to achieve a 15%
reduction in usage from the 1987 pre-drought usage
levels.
During the recent six year drought, customers installed
various water savings devices, changed landscaping to
include drought resistant plants and modified water
consumption behavior. SJWC actively promotes these and
other effective water conservation programs in conjunction
with various governmental agencies. Over time, these
conservation efforts may result in permanently lowering
water usage.
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Regulatory Affairs
Concurrent with the end of mandatory rationing the
Company terminated its mandatory rationing memorandum
account and ceased to levy conservation fees upon
customers who exceed their allotted usage. The Company
will no longer be able to recover revenue lost due to
mandatory water rationing or conservation through the
mandatory water rationing memorandum account, nor will it
be able to collect penalties and a surcharge.
The CPUC has authorized the Company to establish a
voluntary conservation memorandum account which will
track revenue lost due to voluntary conservation. If the
Company elects to recover amounts recorded in the
voluntary conservation memorandum account it will endeavor
to do so in its next general rate case.
Item 5. OTHER INFORMATION
On April 21, 1994, SJW Corp. declared a regular quarterly
dividend of $.525 per common share. The dividend will be
paid June 1, 1994 to shareholders of record as of the
close of business on May 1, 1994.
Item 6. EXHIBITS AND REPORTS ON FORM 8-K
(a.) Exhibits required to be filed by Item 601 of Regulation S-K.
There were no exhibits required to be filed by Item 601
of Regulation S-K for the quarter ended March 31, 1994.
(b.) Reports on Form 8-K
No reports were filed on Form 8-K during the quarter ended
March 31, 1994.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange
Act of 1934, the registrant has duly caused this report
to be signed on its behalf by the undersigned thereunto
duly authorized.
SJW Corp.
Date: May 3, 1994 By /s/ W. R. Roth
W. R. ROTH
Chief Financial Officer
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