SJW Corp. (NYSE:SJW) today reported financial results for the third quarter ended September 30, 2012. Operating revenue was $82.4 million in the quarter compared to $73.9 million in 2011. The $8.5 million increase in revenue reflects cumulative rate increases of $6.3 million, $1.8 million in higher customer water usage and $406,000 from new customers compared to a year ago.
Net income was $10.1 million and diluted earnings per common share were $0.53, compared to $8.2 million and $0.44 per share, respectively, in the third quarter of 2011.
Water production costs for the quarter ended September 30, 2012 were $36.6 million compared to $32.0 million in 2011, an increase of $4.6 million. The increase in water production costs is primarily attributable to $2.6 million in higher per unit costs for purchased water and groundwater extraction charges, $1.7 million in higher costs due to a decrease in available surface water supply and $328,000 in higher customer water usage.
Operating expenses, excluding water production costs, for the third quarter were $24.9 million compared to $23.4 million in 2011. The increase of $1.5 million reflects an additional $891,000 of administrative and general expenses primarily due to higher payroll and benefit costs, $485,000 of higher depreciation expense and $80,000 higher maintenance expenses. The effective consolidated income tax rate was 41% and 39% for the three-month periods ended September 30, 2012 and 2011, respectively.Year-to-date operating revenue increased by $22.5 million to $199.1 million from $176.6 million in the first nine months of 2012. The increase was attributable to $13.6 million in cumulative rate increases, $7.7 million in higher customer water usage and $907,000 in revenue from new customers. In addition, the Company earned $305,000 in higher revenue from real estate operations. Year-to-date net income was $16.4 million, compared to $14.3 million in 2011. Diluted earnings per share were $0.87 in the first nine months of 2012, compared to $0.76 per diluted share for the same period in 2011.
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