SJW - Earnings call transcript Q3 2019

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Operator

Ladies and gentlemen, thank you for standing by and welcome to the SJW Group Q3 2019 Financial Results Conference Call. [Operator Instructions]

I would now like to hand the conference over to your speaker today, General Counsel, Suzy Papazian. Ma’am, please go ahead.

Suzy Papazian

Thank you, operator. quarter results third SJW call the Group. to XXXX conference financial for Welcome Eric the Officer. Chairman Chief today Thornburg, Presenting are of and Lynch, Executive James Board, Chief Financial Officer; and President

along, For would available our at those website the like follow on who www.sjwgroup.com. remarks slides to are accompanying

implied trends, company we well the current presentation, based the forward-looking contain the are developments those the and like conditions experience, by made circumstances. and statements. statements are expected I Before estimates or differ actual its to under this company’s and that as by may company you the future begin our light as to forward-looking appropriate related cause that other and from website today’s on performance factors statements. historical assumptions presentation materials could would of remind results in posted Many on factors materially believes expressed These

that different and we Commission. on actual to to which some with descriptions of cause press release XX-Q recent results the our presentation, and Securities the obtained this filed could Copies may and and most be our factor forms to refer financial be statements results XX-K, For of X-K website. the of Exchange you from

are as statements or revise today, Group and such SJW any forward-looking All made statements. duty of disclaims to update

the to have end ask opportunity presentation. will of You questions at the the

being is XX, of archive an this the be and reminder, XXXX. January recorded available will a until webcast As webcast

the access and You can corporate webcast press release our the on website.

over the turn call now to Eric. will I

Eric Thornburg

SJW Group. Thornburg, thank Thank you, of President joining Chairman, Welcome, and you us. for CEO Eric and everyone Suzy. I’m

X, and serve more in good combination on the States. largest SJW Water million water rate Group than forward on play will As XXX and San customers. XXX transformative the Together on employees over XX, water Texas. base Company, XXXX completed some Maine California of water XXX Jose know, October United in Service, serve later third utility November Inc. the years may pure across people pure with over Connecticut forming Fast utility XXXX to to we with our incorporated was Water Connecticut, you our investor-owned based X.X California, flagship

the of shared Water service. high two and life-sustaining, for water quality a organizations passion customer delivering with exceptional acquisition The together Connecticut brings

of under Group Canyon Lake locally is it remaining with Connecticut all today. San operations and service, All Heritage Jose Water Avon locally ownership, will based the community Maine and utilities outstanding environmental continue Water as deliver operating SJW our Water, to Water, Village Water, just Water, stewardship and customer of managed support

where in growth environmental and diversified will a building source reliable manner combined providing each open serve. fostering leading socially and utility, of and stewardship promotes water throughout delivering to by the care supported Maintaining to with in, the long-standing We local operating local through who resources expertise passionate, and systems, operating the ensuring and professionals opportunities charged with service, responsible protection by safe benefits and exceptional sharing water customer preservation best energy supporting team the water a conservation, dedicated local communities; space, customer of company’s operational entire be communities focusing communities their supporting commitment a utilities deliver on are for improving engaged for and of our and on live, our intend practices, that service company. programs work our we communities. employees locally locally of system, record a state and As continue of serving with to water Presidents strong based

had with serve On Board serve. and working led Directors with its whom be strength to local company Board pleasure adding SJW’s an the leverages combined experienced their Mary I to to had Connecticut new The Wallace communities joined that with behalf of will the have forward Water Three subsidiaries. we Ann look and strengths of Hanley, them. Board, organization experiences and Carol Hunt perspectives, at unique by Heather members and of of entire and our the diversity they knowledge capabilities welcome the

Group of its half beyond. Group’s environment safe, health women. service locally is few companies one of our to SJW publicly linked the with quality to now and traded SJW high of inextricably Board is almost reliable of comprised both water ability deliver and the

cement in we program This environment our reported, reaffirmed the on guidance as to preserving status and and the treatment, responsibility commitment social Board leaders of our to As Sustainability as long-standing we and and further our industry supply, of delivery. through operations water aspects to look Board water protecting corporate key including Committee. health previously stewardship committee safety, environmental a creation our service provides

published protecting our continue environment. to first allow serve in corporate technologies report XXXX We will and also and and evaluate deploy that better communities to new our sustainability shareholders, customers, us while

customers return our fair a investment. executing and are water of and We to necessary to earning business provide in on reliable then plan, service infrastructure safe that communities and investing and

In serve and communities $X California the and Texas. been more invested we in water the our billion decade last systems has alone, than in

our We of to technology, deployment world-class service. our keenly financial innovative through on also water focused prudent remain management deliver and in employees continuous operations improvements in investments the

future years of the in recurring line continuously XX% of are thereby and will initiatives earnings should will of capital each returning ultimately success that way XX% and Water other value and for plan last that annual target a evident big combination The our so our between XX the to various and shareholders. long-term further XX of a under increased be our delivering transformative strong build investments but in record business our SJW, dividend to SJW’s payout more with paid at driver has the our is scale. Our success, with significant expand us and years dividend We’ve bringing shareholders. growth organic Connecticut of footprint over of dividend

of Jim’s I’ll and QX additional and With other I’ll business information commentary. after and review who Jim matters. Jim? Lynch, regulatory other things turn results a on analysis that, the now with provide you remarks, financial provide detailed to over will And

James Lynch

or our positive Thank supplies the costs rate merger-related quarter, in a XXXX reflect general connection operating second increased and water decrease of Much incurred Water you, Eric. Connecticut of merger. third like with GRC. surface case use in quarter our The California impact our results the

reserves Water water reflect Our established amounts in recorded a impact the results WCMA Valley Clara Santa and Valley from District Memorandum also Water. or of against Accounts purchase the Conservation our Water and XXXX higher or XXXX cost

was million, with diluted per decrease a Third diluted for quarter per share. million. share $X.XX million or quarter revenue revenue third income quarter million third $XXX of or of Net the XXXX. million over reported third XXXX $XX.X for $X.X $X.XX the compares $XX.X quarter This $XXX.X was

in the in merger-related totaling the availability items share. water share. During contributed third share, per the per new of contributed cost per were a $X.XX surface balance, per quarter other increased increased share increases of including of These offset and per WCMA the reserves $X.XX water $X.XX share costs of production change $X.XX by our XXXX, $X.XX decrease in decrease and

In share. XXXX, equity merger issued shares to the common addition, per of dilution due we for $X.XX Connecticut in was the December

XXXX advice two or California Public filed X, March balance. proposed WCMA for XXXX, of recovery we for CPUC issued the letter our Commission of the October resolutions an in XXXX Utilities On

agenda. appear resolution XXXX of X, balance proposed on XXXX while CPUC’s meeting nice approves second, November the the proposed WCMA, the recovery. to recovery first resolutions The Both

longer the alternative result probability reserved, criteria recovery company As revenue conflicting as the of million a fully the programs, the meets accounting September of $X.X no as XXXX. balance proposals, of and for WCMA XX,

with of note and before XXXX balance. XXXX Of company from million reserved primarily had decrease $X.X $X.X better actual XXXX. million the alignment GRC and same usage cost. the consideration of million for authorized alignment has periods fixed actual fully variable reserves, of and the WCMA the coupled and XXXX the due addition, dropped with for In $X.X to third million was respectively balance in $XXX,XXX the rate the customer $X.X better XXXX quarter in to WCMA This the and of respectively year-to-date structure

anticipate future impact we WCMA will on that diminished result, a the a have our results. As

million XXXX comparative to the in a $XX.X our new primarily the offset third of to partially memorandum revenue for of change compared Turning customer and attributable that accounts increases $X.X to new in added balancing revenue $XXX,XXX rate with revenue analysis in which WCMA, net in by the million was decrease $XXX,XXX. the quarter, reserves, the including and change was along new revenue

change million the compared to in higher cost of $X.X the offset partially were an of million, increased customer during power of third cost XXXX. million. accounts $XXX,XXX increase to the The use for supplies quarter $X.X usage. $X.X These and production balancing surface higher of primarily in a expenses in the water $X.X million memorandum recovery increases by of lower and was the purchased costs water quarter per Water due increase unit

decrease Other in -- higher during was related million million quarter due general by operating increased $X.X and to partially a expenses in This additions. decreased $X $X.X XXXX transaction. in merger and related $X.X third the expenses, utility compensation our million to integration and higher plant to million million depreciation offset expenses costs, due primarily to administrative Connecticut Water $X.X

$X.XX was a per or $XX.X the increased $X.XX Net impacted $XX.X same period same year-to-date the income year. in period a share, per $X.XX of the three share year-to-date an decrease share Turning merger-related months of Diluted share the to for last was earnings provided to decrease or per $XXX.X results, million share. $X.XX use surface cost XXXX. XXXX were for compared diluted million $X.XX share million, per increases per that of revenue rate during the and X% diluted the over year-to-date per water period in by or

new WCMA amortization memorandum per reserves share $X.XX in in totaling share. other balancing were a per funds usage per cost, $X.XX decrease money per an $X.XX share. water a and increase contributed In per including in our of share, interest depreciation by increase costs certain market change production increases balance, share offset and the $X.XX $X.XX per in and addition, contributed on accounts $X.XX These and share

$XX.X million to new due change common million an $X in to The discussed Connecticut in also million reserves, in $X.XX dilution customer revenue We share. $X partially credits in experienced rate million in XXXX, XXXX. million decrease attributable equity our changes customer $X.XX and to revenue decrease the offset in of items to production was the in and on due from by including share $X.X December in million $XXX,XXX quarter of accounts, OII for nine increases memorandum of WCMA second customers. primarily usage, per attributable $XX.X change net issued per a Water first call. cumulative and a The decreased of months $X.X balancing in expenses decrease I the the the we and the various was increase the merger other

decrease million due increase primarily water $X.X surface offset This in the an increase partially in was of for million million water and cost recovery per memorandum in usage. decrease customer $XX.X was $XX.X and lower $X.X costs and The cost by to balancing of and water million net decrease higher accounts. of unit use power, a

Other the operating million by a in of million in higher decrease XXXX, in other due in of taxes offset taxes, expenses in administrative higher CTWS first nine depreciation $X.X expense, than $XXX,XXX general million higher partially $X.X and merger and increased expenses. to months expenses $XXX,XXX primarily income $X.X

included general income in market integration and of of from Other due offering. and interest investments fund to the company’s and expense annual money was on increase earned proceeds XXXX the wage $X.X merger administrative for with costs The primarily equity CTWS. December the increases expenses income million

million capital our in approximately XXXX. funded expenditure XXXX $XX.X $XXX.X utility totally or company capital our in bringing to turning XX% planned additions third program, of the million company-funded spending we added for quarter year-to-date Now plant of

period and of XXXX and accounts in cash the items. primarily same was and increase adjustment $X.X a after net flows increase income for million increased increase working XX% general balancing XXXX. operations from memorandum $XX.X Our the over collection million capital result in year-to-date of a non-cash in The the

bank $X plant end and accrued increases the These for utility $XX the decrease of additions our million and of payable offset and an receivables operating were on had previously activities. in taxes partially of financing we available a quarter, short-term decrease in lines million build by credit at million net $X.X

With over to that turn call I’ll Eric. stop and the back

Eric Thornburg

Thank you, Jim.

few a opening Before third touch in quarter. floor the to I’d the on up questions, like to developments

accordingly have regulators infrastructure to need those water make our and regulated and across utilities our the Utility enabled organization system investments. recognized investments continued water for have historically

benefits We’re strong system California. and water resilient a seeing of the in

recent not than program water This PSPS reliable electrical investments to Shutoff San deliver our at a to we Gas around California, two and customers Pacific to communities the & can was many Jose Public Power were is Safety in and Water also testament Electric’s the events, of lack facilities. ensure who knowledgeable not team passionate investments, during key service has worked in water Because spared. continue community. system, of impacted despite distribution our dedicated of but we our to serve and XX able the to and the power clock more only our production continue the

November As note the improving the XXX resolutions, recovery have Jose is state the for Jim by item policies Jose Water commission this remarks, supported balances. reserve currently on WCMA XXXX. San agenda. of we one XXXX noted denying and the recovery under review. decisions his XXXX for that and We approving Water’s a currently and commission believe XXXX Xth with the is Advice XXXX through commission’s as WCMA years established Two We past the in San in of one recoveries recoveries associated the Letter filed are and

we financial that XXX. of level on impacted the ahead, XXXX decision necessitated Water’s likely a nicely the by sales XXXX Jose general the actual less aligns authorized current Letter believe are years Advice with situation lowered results through consumption. be future case to final that rate to its San Looking covering XXXX filing

cost in opportunity the revenue authorized allowing realistic company of shift of total a charge, a through rate to provides its the collected earn addition, to XX% recovery In return. for be fixed

citing project an for Other the of And the XXXX Water memorandum plant the for the XXXX be by Demonstration Jose quarter. the balance related Hydrogeneration, Jose XX, to regulatory of the authorized filing XX, Jose will underlying Research, new plant record corrected commission the San of $XXX,XXX to requirement XXXX, September a XXXX. in anticipates revenue the new commission San $X.X of filing followed million. on the developments for approval Water’s The recovery of for error Water’s the include of total and decision request Development rejection rejected Montevina correction upgrade filing in Advice additions treatment increase October recovery Letter San Letter and in recommended an decision on and recovery. a that a Advice fourth account

customer safe, to success measured continue and SJW will our has to ability exceptional service. quality reliable water by high and be and deliver

engagement are efforts. Over to of stakeholders the last story, customers customer program, we’ve the year our what I’m result more happy telling report our significantly that and them. expanded from hearing about our we seeing importantly, and our concerns

a compared service to customer annual recent Our showed in improvement customer survey as satisfaction in levels XXXX. California market

customers our ratings for quality Our biggest us concern be their emergencies, comes ready give include continues top it possible Their while is and system when the water positive priorities that reliability, to and cost. commitment to to prepared future our conservation. for knowing

Jose levels. program. Service, customer on evaluate Vice a We San of recognize will do initiative more drive to front service there by our Led experience is this to project all Zacharisen. customer that have This initiated customer satisfaction and Customer of facets Water’s further President new Tricia

the and clearly world-class customers at Our we goal right levels are to serve direction. remains headed in

Water effective As has X, December today, Westbrook been Connecticut Maureen the XXXX. of Service earlier President appointed announced

are a after who David’s President Company as having and Water numerous retirement. and Maureen, of we accomplished David veteran best too and at peers is the his well strong Benoit and him Connecticut of in our very among to local contributions regulators Water at is national by industry. our as list, distinguished want as also within be I widely XX-year an operations, and tradition the career. year Service in levels wish experienced officials respected our and leadership will Following retiring Connecticut state and the thank to XX regional accomplishments

express our the We Commission a the utilities. California look their like to Michael and warm address the President, working water Marybel about outgoing would welcome President, President, his to issues to appreciation many to forward Batjer future excited with for Batjer Picker facing water-related SJW of to and colleagues extend and Group. staff Utilities Public regulated to I’m California’s service. our we Lastly,

scale ability Connecticut with customers, and serve communities and shareholders combination transformative the and Our adds furthering diversification Water environment. to our

ability in haul, we and growth remain profitability, dividends. long in the Over earnings sustained to confident our deliver

happy SJW, and support we’ll continued questions might in your trust answer for you any have. and Thank you be to

Operator

the Chopra first comes line Our Durgesh Evercore from Instructions] [Operator ISI. of of question

Your question please.

Durgesh Chopra

Hey, good morning, James.

James Lynch

are you? how Durgesh, morning. Good

Durgesh Chopra

Fantastic. Good.

getting So, here, the in pretty accomplishment. deal first, congrats that’s big completed

to the of writedown in wanted the I related on you that reserves. the you ask kind took Just has that quarter,

You the recovering you there favor mentioned were What commission one favor, two in in in was balances. the those rulings, or was not one the favor. rationale not which behind decision, of reasoning

James Lynch

of by Control would that the declared over And were two the earning. -- a since place District XXXX, April resolution. to or by declared quite be Clara they essentially me drought that out decision the for advocate, denying Board will, recovery, first drought been has we essentially in voted is. in proposed company ratepayers be the the by state restrictions over proposed find will proposed governor the -- place rationale fact XX% what let Water to essentially even has November on not response the on Xth by or that frankly, the opposed afterwards such clear been will call been conservation and in were of allowing has Well, points recovery will The resolutions focused place. denial And proposed commission, though put the in there all, the has in the the contention we you the as main Valley be was of the many still for Those as remain it XXXX. office Water Santa that in since if Resources over the a the decisions,

the the if of you company restrictions restrictions of influence so while the to in And place time through also and the to and it’s allow we impact promoting recover the will, was return put us water conservation. continue to that insulate, from our authorized WCMA drought same at contention feel to the our these

WCMA So functioning it a do still so. from as is that still and it the purpose perspective, we believe has intended to that was

Durgesh Chopra

may Okay, on, guess think the I’m to forward, so like, you know, to November book commission you way right early the that risk about from standpoint if WCMA thanks. know if it? date wrong able mean, provided the chooses entries I you just guess, here. is I you about our Xth, if that correct me I the going is think that here not you a that on But be

James Lynch

remains the commission are account or one eliminate WCMA proposed because the not proposed accounting to active that used meet has memorandum this of as reserves place company. for in The the WCMA an can two balancing mechanism the we us, the be we account by the decisions, put still The reason at criteria. of point that a don’t

balance, this record intersecting practices and is accounting have sites one forward conclusions. the collecting where standing to prior and we we regulatory we of go move as approval good in commission will potentially that those balances of requesting track have feel that leading still certainly So do and that WCMA through are process. terms terms of and in upon different support the we based this We situations particular

the as benefit -- authorized this that As though, alignment conservation terms the and forward. going we recover that fixed fixed if move relative our WCMA we of well cost, even it moving in And relative of a better variable the our total believe revenue you of like as that change have general impact the the made absent in drives usage, with we forward. costs on going our this and to, far to actual WCMA rate forward, the profitability for only the we that in million. our on I or quarter, return morning, as criteria less also heed think of kind last WCMA of provide were the the record, -- $XXX,XXX the take third quarter we a number authorized will will we as which forward, the And case, impact comments year’s to as benefit had that in $XXX,XXX have and I usage have meet variable of because had the because would would to our the from have ability the by the my that the compared to the that’s that therefore absent would Eric made some going demonstrated where reserve, of benefit fact was to I last only but $X.X much effectiveness about forward of morning about us

Durgesh Chopra

$XXX,XXX, is pre-tax that That number, James? a

James Lynch

a pre-tax that’s Yes, number.

Durgesh Chopra

That’s QX XXXX.

James Lynch

That’s correct.

Durgesh Chopra

Appreciate much. all Okay, thank you color. so the

James Lynch

you, bet. Thank Durgesh. You

Eric Thornburg

you. Thank

Operator

Thank you.

Our Doza from next Hasan question of Asset Water Management. comes

line is open. Your

Hasan Doza

morning, basis, and which alluded good dollar a it for to gentlemen. you was Hi, Jim, On XXXX, WCMA, very on helpful.

that. for you customer is a follow-up thank So My per on basis. usage

your you on customer rates the is XXXX, So can both? usage a new actual per tracking on for actual your help like how embedded usage versus levels us basis CCF is understand for the a basis level what are in

James Lynch

give So, we Hasan. I is it I to on you can tell you recollection is basis, what are, correct. your if for Thank you my can’t CCF that a question. But

we’re from about We’re is ahead to about quarter customers. usage, total residential the generated customers And generated a about about and perspective, our business that just our residential in our in business the our for usage of in is from XX% and behind XX% X% revenue quarter. our X% little customer put for

Hasan Doza

Jim. it, Appreciate you. thank Okay,

Operator

you. Thank

Scott. question Janney Montgomery Our of from next Michael Gaugler comes

Your line open. is

Michael Gaugler

Good morning, everyone.

James Lynch

Hey, Michael.

Eric Thornburg

Michael.

Michael Gaugler

On a what the Any quarter? we could terms third further in fourth be was in it nickel of said think merger cost, at quarter. the I idea looking you

James Lynch

were we to I in total, and leading in -- consequences $XX items outstanding. creating up deferred one the Well, relates those the tax the we One relates to transaction, still treatment for as two expenses fee roughly our think is merger that be the do of have merger we spending that around that paying of the two deferred our the to expenses are a taxes were that fairly will and taxes related to larger the million. it bankers

in two terms integration looking the So of be that and cost. then would some be the quarter those expenses at largest that, would fourth we

Michael Gaugler

third equity you said $X.XX, in I year-to-date the dilution, you know think quarter. that was Okay. was And roughly then

James Lynch

I for $X.XX. quarter that number the was just think

it was for that. me Let Yes, $X.XX the third quarter. confirm

Michael Gaugler

the to approve of till wait see -- Okay. reversing quarter Depending can the the you treatment on votes say that? press SJW recovery we release a how do thereafter? accounting expect Or let’s to the to WCMA, but shortly commission from would the

James Lynch

would non-cash a enough we to would charge, We -- -- it’s a feel we large probably we number file feel while release. where it’s press it, would we a

Michael Gaugler

Okay.

probably be looking something the I’ll So, Xth. for on

James Lynch

good, Very Michael.

Eric Thornburg

Thanks, Mike.

Michael Gaugler

Thanks, guys. Perfect.

Operator

Thank of you. [Operator comes Jonathan Instructions] line Fargo. question next the Wells from The of Reeder

please. question Your

Jonathan Reeder

morning, gentlemen. good Hey,

James Lynch

Hi, Jonathan.

Jonathan Reeder

the increase was could remind the full from Jim, That you me revenue San Jose Water’s year? million, GRC $XX.X right? for like

James Lynch

right. That’s

Jonathan Reeder

QX and So, a was only in in was QX QX are in usage there the X was $X.X to similar the million and rates? why I period. then increase much revenue know higher higher from change water it

James Lynch

Valley Yeah. It’s technical want be real on good I’d it Jonathan. to to response, the offline, of able give short as on rate you cost. for adjustment get get question general some part the of our I Santa in And long were additional too increase, Clara information it rate and initial case, is we the to mid-year a Water happy the don’t -- but

Water cost third a associated full quarters, into quarter, quarters. account balancing had place. out. beginning cost rate in in sensibly, with the there. the the first we’re Where -- the increase included that impact put already difference reversing effect the put reported that the actual been cost -- into And the then water for two in we Clara rates the So in Santa rate went it were first And when the was two water Valley

in So accounts. going you’re impact you’re in the have see balancing rates, see the -- included is the it not going to in change but would to that change been is what it in

Jonathan Reeder

Okay. Yes. be useful. might It

that. the me after to that. Help chat on Let’s find call

James Lynch

it’s the for of long the guess, short I that That’s rate rate is, be general the allowed we case. way it. walk you the just of increase the answer. through the in were happy of year long to it I’d the and first district And Yes, short and the

Jonathan Reeder

Yes, yes.

recorded year first would think, of of the there. million, pick second that of half $X.X may the would half had during imply you be Okay. that because sounds of it $XX $X.X Yeah, case up I that. year like not million the another the But like million during the the kind

So...

James Lynch

Yes.

fact to on relative in numbers, as listened if revenue will, on hitting where the are that’s to the are over we quarter. our in to, the track change of We geography our usage where to number, represented I we you we pretty it’s track said just are authorized well

Jonathan Reeder

And side, on what was residential compared the Okay. usage you the to? said

James Lynch

were the We up quarter. about on X%

Jonathan Reeder

Okay. Year-to-date business. residential, down you’re on X% X% up the on

James Lynch

about that’s Yeah, right.

Jonathan Reeder

Okay. is that And proxy, was Connecticut projected, basis. that expect And was then stand-alone $X.XX $X.XX, from single-digit I still high accretion Water should mid off like in think the your XXXX, indicated you then that EPS it’s accurate? had we stand-alone the deal to of it

James Lynch

comfortable pretty pretty, we’re that. think I with Yes,

XXXX. For -- XXXX, I you in mentioned Right. That was XXXX. That’s XXXX.

Jonathan Reeder

had I think [indiscernible]. you it guys XXXX that was

James Lynch

XXXX. Yes. That sounds right.

yes. XXXX, For

Jonathan Reeder

Okay.

income also helps to-date, accounts. million what recovery $X.X like an [ph] anything, help or so neutral are expenses, in And what can those production like -- that kind balancing balancing it’s caused is the like it’s me items lot. I understated $X.X there million recognition then Because of? you your think increase that a yes memorandum cost revenue it offsetting So and

James Lynch

Yes.

in things. an One two purchase the driven within of anything I is So the have earlier. absent the through from as by or cost covered increase and Water primarily pumping mentioned water, case, either is by customer -- imported general pump District rates that’s actual usage the rate in the tax we or increase

of are coming higher because water, that Treatment really dispose those we our the of we of the costs treating of brackish of it’s costs the water to Water driven more treatment to some In costing Montevina out incrementally -- the have fact were addition, more we relative and Plant, that, out us particulars plant. did take [ph] out by the

really really you to those -- that So, relative things more that higher driving fact are the and at that to of look a that are also we’re water have the cost out the getting plant. take water

Jonathan Reeder

Okay.

kind that of offset So, that.

James Lynch

Yes.

Jonathan Reeder

that’s had All today. I all right,

Eric Thornburg

would first we on Yes, up Thank if follow useful. could point the that be Jim, you.

James Lynch

You good. bet. Very

Operator

like any sorry, I’d Eric we turn follow-up Chopra time, over question remarks. do the this of a you. to Thank call ISI. Actually, for At have to closing I’m from Thornburg Evercore Durgesh back

is line Your open.

Durgesh Chopra

any I the like might first Any, dial just -- time. sorry And forgot that is on the when guys, we commentary now this Hey when expect, to merger closed. in might forward-looking that guidance.

Eric Thornburg

talking on XQ... how about sorry forward-looking the just items I’m we you’re generally, see

Durgesh Chopra

peers, like your or of EPS out. some put your peers

Eric Thornburg

you. Got you. Got Thank you.

Durgesh Chopra

a lines. like long-term with those something that, EPS Along growth, along

Eric Thornburg

to we and the the considering that, want benefit able and And We that transformative received a would, our sure to make putting that Appreciate is to Board. Yes. have that We’ve that question. we’re truly a together, two be lot. we would are investors, our and that and that. we companies out real give in a and We it understand analysts and we’re good December and -- we’re on be doing. our clear how forward some on would we’ll you strong sense investor to give do forward of expect can to we everything you site there meetings, and momentum you January -- working give

Durgesh Chopra

Excellent. Thank guys. you,

Eric Thornburg

bet. You

Operator

Eric to remarks, for call Thank any to sir. time, I’d you. At like Thornburg turn closing the this over

Eric Thornburg

SJW your call Yes. your and everyone Thank appreciate We thank support. operator Group you, you and today. joining the for interest in

infrastructure, return part provide strategy in growth business program strategy. our to to earning and as core and other executing continue going on in acquisition invest on to investment our to a continue and We return forward, to our focus utilities services of our

future. So to look we the forward continue to

in we’ve not merger forward. having territory, And environments this service our diversification new additional environment. about excited just We’re achieved, and we’re very the concluded but about very getting and in economic company excited and regulatory that

you for thank your So company. in our for your interest again --

Operator

Thank Ladies you gentlemen today’s for this and call. concludes conference participating.

disconnect. may now You

SJW (SJW) 1 Nov 192019 Q3 Earnings call transcript