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.

Year-to-date net income was $16.3 million, compared to $12.6 million in 2009. Earnings per basic and diluted share was $0.87 in the first nine months of 2010, compared to $0.68 and $0.67 per basic and diluted share, respectively, for the same period in 2009. The gain on sale of California Water Services shares contributed $0.14 per share in the first nine months of 2010. No sales of California Water Service stock occurred during the same period of 2009.

Year-to-date water production costs decreased to $58.5 million from $66.1 million in 2009. The $7.6 million decrease was primarily attributable to lower customer demand of $4.7 million and savings due to greater surface water supply of $3.6 million, offset by $0.7 million in a net higher unit cost for energy and purchased water. Operating expenses, excluding water production costs and income taxes, increased $2.2 million to $71.7 million from $69.5 million. The increase of $2.2 million was due to an increase of $2.1 million in depreciation expense, reflecting greater capital expenditures, $1.1 million in administrative and general expenses due primarily to an increase in retirement benefits, and $0.5 million in other operating expenses. These increases were partially offset by a $0.8 million decrease in taxes other than income taxes and $0.7 million decrease in maintenance expenses. Income tax expense increased to $9.3 million year-to-date from $8.8 million in 2009.

The Directors of SJW Corp. today declared a quarterly dividend on common stock of $0.17 per share. The dividend is payable on December 1, 2010 to shareholders of record on November 8, 2010.

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., TWA, 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

 

NINE MONTHS ENDED
SEPTEMBER 30,

 

SEPTEMBER 30,

2010
       

2009
 

2010
   

2009
 
OPERATING REVENUE

$

70,347
   

 

69,326
  $

164,886
 

167,541
 
OPERATING EXPENSE:
Operation:
Purchased water

16,574
 

15,174

33,728

35,564
Power

2,122

2,666

4,850

5,243
Groundwater extraction charge

8,736
 

10,743
 

19,969

25,275
 
Total production costs

27,432

28,583

58,547

66,082
 
Administrative and general

8,168

6,807

21,909

20,834
Other

4,792

4,697

13,784

13,221
Maintenance

2,895

3,550

8,960

9,682
Taxes, other than income

2,056

1,882

5,819

6,564
Depreciation & amortization

7,082

6,403

21,263

19,192
Income taxes

5,502
 

5,735
 

9,285

8,811
 
 
Total operating expense

57,927
 

57,657
 

139,567

144,386
 
 
OPERATING INCOME

12,420

11,669

25,319

23,155
 
Gain on sale of California Water
Service stock, net of taxes
of $1,831

2,635

-

2,635

-
Interest on long-term debt
and other

(4,268)

 

 

(3,652)

 

 

(11,666

)

(10,604

)

 
 
NET INCOME

$

10,787
 

 

8,017
  $

16,288

12,551
 
 
Other comprehensive (loss)
income, net

(1,881)

 

 

1,363
 

(2,608

)

(4,861

)

 
 
COMPREHENSIVE INCOME

$

8,906
 

 

9,380
  $

13,680

7,690
 
 
Earnings per share
-Basic

$0.58
$

0.43

0.87

0.68
-Diluted

$0.58
$

0.43

0.87

0.67
 
Dividend per share

$0.17
$

0.16

0.51

0.49
 
Weighted average shares outstanding
-Basic

18,537

18,494

18,528

18,482
-Diluted

18,752

18,690

18,738

18,673

 
 

SJW Corp.

Condensed Consolidated Balance Sheets

(Unaudited)

(in thousands)
               
September December
30, 2010 31, 2009
ASSETS
UTILITY PLANT:
Land $ 8,580 8,558
Depreciable plant and equipment 985,853 913,071
Construction in progress 20,243 11,119
Intangible assets 13,258 11,278
Total utility plant 1,027,934 944,026
Less accumulated depreciation and amortization 315,815 298,921
Net utility plant 712,119 645,105
 
REAL ESTATE INVESTMENT: 91,286 88,000
Less accumulated depreciation and amortization 8,446 7,188
Net real estate investment 82,840 80,812
CURRENT ASSETS:
Cash and equivalents 3,335 1,416
Restricted cash 148 -
Accounts receivable and accrued
unbilled utility revenue 36,204 24,004
Prepaid expenses and other 2,957 2,590
Total current assets 42,644 28,010
OTHER ASSETS:
Investment in California Water Service Group 32,399 40,500
Debt issuance costs and broker fees, net
of accumulated amortization 4,112 3,098
Regulatory assets 78,274 78,525
Other 3,004 2,424
117,789 124,547
$ 955,392 878,474
CAPITALIZATION AND LIABILITIES
CAPITALIZATION:
Common stock $ 9,657 9,635
Additional paid-in capital 23,099 22,046
Retained earnings 214,632 207,888
Accumulated other comprehensive income 10,579 13,187
Total shareholders’ equity 257,967 252,756
Long-term debt, less current portion 295,990 246,879
Total capitalization 553,957 499,635
CURRENT LIABILITIES:
Line of credit 3,500 5,800
Current portion of long-term debt 1,144 1,081
Accrued groundwater extraction charge and
purchased water 8,223 4,496
Purchased power 718 486
Accounts payable 21,273 6,562
Accrued interest 4,788 4,979
Income tax payable 3,437 728
Other current liabilities 10,080 7,826
Total current liabilities 53,163 31,958
 
DEFERRED INCOME TAXES AND CREDITS 100,841 102,381
ADVANCES FOR CONSTRUCTION AND CONTRIBUTIONS
IN AID OF CONSTRUCTION 190,900 190,506
POSTRETIREMENT BENEFIT PLANS 49,937 47,484
OTHER NONCURRENT LIABILITIES 6,594 6,510
$ 955,392 878,474

Copyright Business Wire 2010

More from Press Releases

NFL Pushes for Regulation Following Supreme Court's Sports Gambling Ruling

NFL Pushes for Regulation Following Supreme Court's Sports Gambling Ruling

21st Century Fox Scoops Up Local News Stations

21st Century Fox Scoops Up Local News Stations

Walmart CEO: 'We Are Transforming Globally' With Flipkart

Walmart CEO: 'We Are Transforming Globally' With Flipkart

Three-Part FREE Webinar Series

Three-Part FREE Webinar Series

March 24 Full-Day Course Offering: Professional Approach to Trading SPX

March 24 Full-Day Course Offering: Professional Approach to Trading SPX