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SJW Corp. (NYSE:SJW) Announces 2008 Annual and Fourth Quarter Financial Results

^{Published on 2009-02-25 16:13:43, Last Modified on 2009-02-25 16:16:10 - Market Wire}
 

SAN JOSE, Calif.--([ BUSINESS WIRE ])--SJW Corp. (NYSE:SJW) today reported operating revenue for the year ended December 31, 2008 of $220.3 million versus $206.6 million for the year ended December 31, 2007, an increase of $13.7 million. The increase in revenue was primarily attributable to cumulative rate increases.

Net income was $21.4 million for the year ended December 31, 2008, compared to $19.3 million for the year ended December 31, 2007. Diluted earnings per common share for the year ended December 31, 2008 were $1.15, compared to $1.04 per share in 2007.

Water production costs for the year ended December 31, 2008 were $90.2 million versus $86.3 million in 2007, an increase of $3.9 million. Higher per-unit costs for purchased water and groundwater extraction charges contributed $6.0 million to the increase. These higher costs were significantly offset by $2.1 million in lower spending on purchased water due to increased surface water supply in 2008 compared to 2007.

Non-water production costs for the year ended December 31, 2008 were $84.0 million versus $78.0 million for 2007, an increase of $6.0 million. This increase was attributable to increases in 2008 of $1.5 million in maintenance expenses, $1.5 million in other operating expenses, $1.4 million in administrative and general expenses, $1.2 million in depreciation and amortization and $486,000 in taxes other than income tax expense. Income tax expense increased $649,000 for the year ended December 31, 2008 to $13.2 million from $12.5 million for the year ended December 31, 2007 as a result of higher pre-tax income. Total operating expense for the year ended December 31, 2008 was $187.5 million, compared to total operating expense of $176.9 million in 2007.

Fourth Quarter Financial Results

Operating revenue for the fourth quarter ended December 31, 2008 was $49.5 million versus $47.6 million for the same period in 2007, an increase of $1.9 million. The increase was attributable to $3.5 million in cumulative rate increases, partially offset by $1.6 million in lower customer usage.

Net income was $4.2 million for the fourth quarter ended December 31, 2008, compared to $3.8 million for the same period in 2007. Diluted earnings per common share were $0.23 for the quarter ended December 31, 2008, compared to $0.20 per share for the same period in 2007.

Water production costs for the fourth quarter of 2008 were $20.3 million versus $18.8 million for the same period in 2007, an increase of $1.5 million. Higher per-unit costs for purchased water and groundwater extraction charges contributed $1.4 million to the increase.

Non-water production costs for the fourth quarter of 2008 were $21.5 million versus $20.1 million for the same period in 2007, an increase of $1.4 million. This was attributable to increases of $489,000 in additional maintenance expense, $361,000 of other operating expenses, $231,000 of taxes other than income tax expense and $304,000 of other combined expenses. Income tax expense decreased $543,000 for the fourth quarter in 2008 to $1.6 million from $2.1 million for the same period in 2007. Total operating expense for the quarter ended December 31, 2008, was $43.4 million compared to $41.1 million in the period ended December 31, 2007.

Other comprehensive income of $6.1 million and $5.1 million, net of tax, for the full year and fourth quarter of 2008, respectively, was primarily due to changes in the market value of SJW Corp.'s investment in California Water Service Group.

SJW Corp. management will discuss the annual and fourth quarter results in a webcast presentation available to interested parties from the Company's website, [ www.sjwater.com ], at 10:00 A.M. Pacific Time on Thursday, February 26, 2009. The webcast will be accessible until May 5, 2009.

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. 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 buildings, has a majority interest in a real estate partnership, and has properties in the states of California, Florida, Connecticut, Texas, Arizona and Tennessee.

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. 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.