SJW Corp. (NYSE:SJW) today reported financial results for the third quarter ended September 30, 2010. Operating revenue was $70.3 million in the quarter compared to $69.3 million in 2009. The $1.0 million increase in revenue primarily reflects $0.9 million in cumulative rate increases.
Net income for the quarter ended September 30, 2010 was $10.8 million and basic and diluted earnings per common share were $0.58, compared to $8.0 million and $0.43 per share, respectively, in the third quarter of 2009. The Company sold 223,112 shares of California Water Service stock during the quarter ended September 30, 2010, which contributed $0.14 per share to the results. No sales of California Water Service stock occurred during the same period in 2009.
Water production costs for the quarter ended September 30, 2010 were $27.4 million compared to $28.6 million in 2009, a decrease of $1.2 million. The decline in water production cost is primarily attributable to $0.6 million in savings due to greater surface water supply and $0.5 million in lower customer water usage.
Operating expenses, excluding water production costs and income taxes, for the third quarter were $25.0 million compared to $23.3 million in 2009. The increase of $1.7 million was due to an increase of $1.4 million in administrative and general expenses primarily as a result of increases in retirement benefits, $0.7 million in depreciation expense as more capital expenditures were made, and $0.3 million in other expenses. These increases were partially offset by a $0.7 million decrease in maintenance expenses primarily due to a decrease in contracting and paving costs as a result of a decrease in the number of main leak repairs. Income tax expense for the third quarter decreased to $5.5 million in 2010 from $5.7 million in 2009.Year-to-date operating revenue decreased by $2.6 million to $164.9 million from $167.5 million in 2009. The decrease was attributable to $6.2 million in lower customer water usage and $0.5 million in lower revenue from real estate operations, partially offset by $3.8 million in cumulative rate increases and $0.3 million in revenue from new customers.