Attached files
EXHIBIT 99.1
SJW CORP. ANNOUNCES
FIRST QUARTER FINANCIAL RESULTS
Board Declares Quarterly Dividend on Common Stock
SAN JOSE, CA, April 27, 2011 - SJW Corp. (NYSE: SJW) today reported
financial results for the first quarter ended March 31, 2011. Operating
revenue was $43.7 million in the quarter compared to $40.4 million in 2010.
The $3.3 million increase in revenue reflects cumulative rate increases of
$2.4 million, $628,000 in higher customer water usage and new customers
compared to a year ago and $300,000 in higher revenue from real estate
operations.
Net income was $610,000 and diluted earnings per common share were
$0.03, compared to $985,000 and $0.05 per share, respectively, in the
first quarter of 2010.
Water production costs for the quarter ended March 31, 2011 were $15.5
million compared to $14.5 million in 2010, an increase of $1.0 million.
The increase in water production cost is primarily attributable to a
decrease in use of available surface water supply.
Operating expenses, excluding water production costs, for the first
quarter were $22.6 million compared to $20.6 million in 2010. The increase
of $2.0 million reflects an additional $683,000 of depreciation expense
compared to last year, higher administrative and general expenses of $648,000,
$384,000 more in taxes other than income tax and an increase of $272,000 in
maintenance expenses. Income tax expense for the first quarter decreased to
$433,000 in 2011 from $682,000 in 2010 as a result of lower 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 June 1, 2011 to
shareholders of record on May 9, 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
MARCH 31
2011 2010
------------------------
OPERATING REVENUE $ 43,696 40,411
OPERATING EXPENSE:
Operation:
Purchased water 7,416 5,819
Power 1,014 1,144
Groundwater extraction charge 4,508 4,995
Other production costs 2,592 2,538
-------- --------
Total production costs 15,530 14,496
Administrative and general 9,636 8,988
Maintenance 3,048 2,776
Taxes other than income 2,087 1,703
Depreciation and amortization 7,794 7,111
-------- --------
Total operating expense 38,095 35,074
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OPERATING INCOME 5,601 5,337
Interest on long-term debt and other (4,558) (3,670)
-------- --------
Income before income taxes $ 1,043 1,667
Provision for income taxes 433 682
-------- --------
NET INCOME $ 610 985
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Other comprehensive income (loss), net (11) 513
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COMPREHENSIVE INCOME $ 599 1,498
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Earnings per share
- Basic $ 0.03 0.05
- Diluted $ 0.03 0.05
Dividend per share $ 0.17 0.17
Weighted average shares outstanding
- Basic 18,570 18,519
- Diluted 18,775 18,721
SJW Corp.
Condensed Consolidated Balance Sheets
(Unaudited)
(in thousands)
March 31 December 31
2011 2010
ASSETS -----------------------
UTILITY PLANT:
Land $ 8,579 8,579
Depreciable plant and equipment 1,018,311 1,004,689
Construction in progress 14,501 10,103
Intangible assets 14,313 13,538
-------- --------
Total utility plant 1,055,704 1,036,909
Less accumulated depreciation and amortization 329,597 322,102
-------- --------
Net utility plant 726,107 714,807
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REAL ESTATE INVESTMENT: 88,962 88,943
Less accumulated depreciation and amortization 9,273 8,854
-------- --------
Net real estate investment 79,689 80,089
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CURRENT ASSETS:
Cash and equivalents 2,354 1,730
Accounts receivable and accrued
unbilled utility revenue 34,572 33,835
Prepaid expenses and other 2,135 2,462
-------- --------
Total current assets 39,061 38,027
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OTHER ASSETS:
Investment in California Water Service Group 7,158 7,177
Debt issuance costs, net
of accumulated amortization 4,479 4,308
Regulatory assets 87,721 87,721
Other 3,463 3,233
-------- --------
102,821 102,439
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$947,678 935,362
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CAPITALIZATION AND LIABILITIES
CAPITALIZATION:
Common stock $ 9,675 9,662
Additional paid-in capital 23,808 23,443
Retained earnings 216,942 219,568
Accumulated other comprehensive income 2,348 2,359
-------- --------
Total shareholders' equity 252,773 255,032
Long-term debt, less current portion 295,059 295,704
-------- --------
Total capitalization 547,832 550,736
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CURRENT LIABILITIES:
Line of credit 11,500 4,000
Current portion of long-term debt 1,149 1,133
Accrued groundwater extraction charge and
purchased water 3,721 4,359
Purchased power 454 495
Accounts payable 10,609 5,487
Accrued interest 4,897 5,244
Other current liabilities 8,741 8,437
-------- --------
Total current liabilities 41,071 29,155
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DEFERRED INCOME TAXES AND CREDITS 111,293 107,961
ADVANCES FOR CONSTRUCTION AND CONTRIBUTIONS
IN AID OF CONSTRUCTION 189,092 190,155
POSTRETIREMENT BENEFIT PLANS 51,248 50,213
OTHER NONCURRENT LIABILITIES 7,142 7,142
-------- --------
$947,678 935,362
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