Attached files
EXHIBIT 99.1
SJW CORP. ANNOUNCES
SECOND QUARTER FINANCIAL RESULTS
Board Declares Quarterly Dividend on Common Stock
SAN JOSE, CA, July 27, 2011 - SJW Corp. (NYSE: SJW) today reported
financial results for the second quarter ended June 30, 2011. Operating
revenue was $59.0 million in the quarter compared to $54.1 million in
2010. The $4.9 million increase in revenue reflects cumulative rate
increases of $2.1 million, $2.5 million in higher customer water usage
and new customers compared to a year ago and $256,000 in higher revenue
from real estate operations.
Net income was $5.5 million and diluted earnings per common share
were $0.29, compared to $4.5 million and $0.24 per share, respectively,
in the second quarter of 2010.
Water production costs for the quarter ended June 30, 2011 were
$22.2 million compared to $21.7 million in 2010, an increase of $449,000.
The increase in water production costs is primarily attributable to
$739,000 in higher customer water usage and $235,000 in a higher unit
cost for energy, offset by $525,000 due to an increase in use of
available surface water supply.
Operating expenses, excluding water production costs, for the
second quarter were $23.0 million compared to $21.0 million in 2010.
The increase of $2.0 million reflects an additional $1.0 million of
administrative and general expenses, $722,000 of depreciation expense
and $250,000 more in taxes other than income tax and maintenance
expenses. Income tax expense for the second quarter increased to
$3.8 million in 2011 from $3.1 million in 2010 as a result of higher
pre-tax income.
Year-to-date operating revenue increased by $8.2 million to $102.7
million from $94.5 million in the first six months of 2011. The
increase was attributable to $4.5 million in cumulative rate increases,
$2.8 million in higher customer water usage, $323,000 in revenue from
new customers and $557,000 in higher revenue from real estate operations.
Year-to-date net income was $6.1 million, compared to $5.5 million
in 2010. Diluted earnings per share were $0.32 in the first six months
of 2011, compared to $0.29 per diluted share for the same period in 2010.
Year-to-date water production costs increased to $37.7 million from
$36.2 million in 2010. The $1.5 million increase was primarily
attributable to $758,000 in higher customer water usage, $515,000 in
decreased surface water supply and $210,000 in higher unit cost for
energy. Operating expenses, excluding water production costs, increased
$4.0 million to $45.6 million from $41.6 million. The increase was due
to an increase in administrative and general expenses of $1.7 million,
$1.4 million of depreciation expense, $459,000 in maintenance expenses
and $447,000 in taxes other than income taxes. Income tax expense
increased by $467,000 year-to-date due to higher pre-tax income.
The Directors of SJW Corp. today declared a quarterly dividend
on common stock of $0.1725 per share. The dividend is payable on
September 1, 2011 to shareholders of record on August 8, 2011.
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., Texas Water Alliance Limited, 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 real estate investments.
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
and other factors. 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 SIX MONTHS ENDED
JUNE 30 JUNE 30
2011 2010 2011 2010
-------------------------------------------
OPERATING REVENUE $ 59,007 54,128 102,703 94,539
OPERATING EXPENSE:
Operation:
Purchased water 12,681 11,335 20,097 17,154
Power 1,373 1,584 2,387 2,728
Groundwater extraction charge 5,300 6,238 9,808 11,233
Other production costs 2,820 2,568 5,412 5,106
-------- -------- ------- ------
Total production costs 22,174 21,725 37,704 36,221
Administrative and general 9,658 8,639 19,294 17,627
Maintenance 3,476 3,289 6,524 6,065
Taxes other than income 2,123 2,060 4,210 3,763
Depreciation and amortization 7,792 7,070 15,586 14,181
-------- -------- ------- ------
Total operating expense 45,223 42,783 83,318 77,857
-------- -------- ------- ------
OPERATING INCOME 13,784 11,345 19,385 16,682
Interest on long-term debt
and other (4,516) (3,728) (9,074) (7,398)
-------- -------- ------- ------
Income before income taxes $ 9,268 7,617 10,311 9,284
Provision for income taxes 3,817 3,101 4,250 3,783
-------- -------- ------- ------
NET INCOME $ 5,451 4,516 6,061 5,501
======== ======== ======= ======
Other comprehensive income
(loss), net 28 (1,240) 17 (727)
-------- --------- ------- ------
COMPREHENSIVE INCOME $ 5,479 3,276 6,078 4,774
======== ======== ======= ======
Earnings per share
-Basic $ 0.29 0.24 0.33 0.29
-Diluted $ 0.29 0.24 0.32 0.29
Dividend per share $ 0.17 0.17 0.34 0.34
Weighted average shares outstanding
-Basic 18,577 18,528 18,574 18,524
-Diluted 18,785 18,741 18,780 18,731
SJW Corp.
Condensed Consolidated Balance Sheets
(Unaudited)
(in thousands)
June 30 December 31
2011 2010
ASSETS ---------------------------
UTILITY PLANT:
Land $ 8,579 8,579
Depreciable plant and equipment 1,029,305 1,004,689
Construction in progress 17,912 10,103
Intangible assets 14,730 13,538
---------- ---------
Total utility plant 1,070,526 1,036,909
Less accumulated depreciation and amortization 336,866 322,102
---------- ---------
Net utility plant 733,660 714,807
---------- ---------
REAL ESTATE INVESTMENT: 89,055 88,943
Less accumulated depreciation and amortization 9,692 8,854
---------- ---------
Net real estate investment 79,363 80,089
---------- ---------
CURRENT ASSETS:
Cash and equivalents 45,356 1,730
Accounts receivable and accrued
unbilled utility revenue 36,105 33,835
Prepaid expenses and other 2,353 2,462
---------- ---------
Total current assets 83,814 38,027
---------- ---------
OTHER ASSETS:
Investment in California Water Service Group 7,206 7,177
Debt issuance costs, net
of accumulated amortization 4,893 4,308
Regulatory assets 87,721 87,721
Other 3,657 3,233
---------- ---------
103,477 102,439
---------- ---------
$1,000,314 935,362
========== =========
CAPITALIZATION AND LIABILITIES
CAPITALIZATION:
Common stock $ 9,676 9,662
Additional paid-in capital 23,941 23,443
Retained earnings 219,155 219,568
Accumulated other comprehensive income 2,376 2,359
---------- ---------
Total shareholders' equity 255,148 255,032
Long-term debt, less current portion 344,811 295,704
---------- ---------
Total capitalization 599,959 550,736
---------- ---------
CURRENT LIABILITIES:
Line of credit 6,800 4,000
Current portion of long-term debt 1,119 1,133
Accrued groundwater extraction charge and
purchased water 7,002 4,359
Purchased power 609 495
Accounts payable 9,765 5,487
Accrued interest 5,263 5,244
Other current liabilities 8,806 8,437
---------- ---------
Total current liabilities 39,364 29,155
---------- ---------
DEFERRED INCOME TAXES AND CREDITS 111,954 107,961
ADVANCES FOR CONSTRUCTION AND CONTRIBUTIONS
IN AID OF CONSTRUCTION 189,862 190,155
POSTRETIREMENT BENEFIT PLANS 51,923 50,213
OTHER NONCURRENT LIABILITIES 7,252 7,142
---------- ---------
$1,000,314 935,362
========== =========
