(Source: Business Wire)
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 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 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 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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