SJW Corp. (NYSE: SJW) today reported financial results for the second quarter ended June 30, 2012. Operating revenue was $65.6 million in the quarter compared to $59.0 million in 2011. The $6.6 million increase in revenue reflects cumulative rate increases of $4.9 million, $1.2 million in higher customer water usage and $323,000 from new customers compared to a year ago. In addition, the Company earned $172,000 in higher revenue from real estate operations.
Net income was $5.2 million and diluted earnings per common share were $0.28, compared to $5.5 million and $0.29 per share, respectively, in the second quarter of 2011.
Water production costs for the quarter ended June 30, 2012 were $27.4 million compared to $22.2 million in 2011, an increase of $5.2 million. The increase in water production costs is primarily attributable to $2.5 million in higher costs due to a decrease in available surface water supply, $1.5 million in higher per unit costs for purchased water and groundwater extraction charges and $1.2 million in higher customer water usage.
Operating expenses, excluding water production costs, for the second quarter were $24.6 million compared to $23.0 million in 2011. The increase of $1.6 million reflects an additional $1.1 million of administrative and general expenses, $534,000 of depreciation expense and $296,000 more in taxes other than income tax, partially offset by a decrease of $343,000 in maintenance expenses. The effective consolidated income tax rates were 41% for the three-month periods ended June 30, 2012 and 2011.
Year-to-date operating revenue increased by $14.0 million to $116.7 million from $102.7 million in the first six months of 2012. The increase was attributable to $7.3 million in cumulative rate increases, $5.9 million in higher customer water usage and $501,000 in revenue from new customers. In addition, the Company earned $316,000 in higher revenue from real estate operations.