Board Declares Quarterly Dividend on Common Stock

SAN JOSE, Calif. -- (Business Wire)

SJW Corp. (NYSE:SJW) today reported financial results for the third quarter ended September 30, 2011. Operating revenue was $73.9 million in the quarter compared to $70.3 million in 2010. The $3.6 million increase in revenue reflects cumulative rate increases of $4.4 million, $221,000 in new customers, partially offset by lower customer usage (a $1.4 million impact), and $353,000 in higher revenue from real estate operations.

Net income was $8.2 million and diluted earnings per common share were $0.44, compared to $10.8 million and $0.58 per share, respectively, in the third quarter of 2010.

Water production costs for the quarter ended September 30, 2011 were $32.0 million compared to $30.2 million in 2010, an increase of $1.8 million. The increase in water production costs is primarily attributable to $2.2 million in a higher per unit cost for purchased water and groundwater extraction charges, partially offset by $266,000 in lower costs caused by reduced customer water usage and an $82,000 reduction in costs due to an increase in use of available surface water supply.

Operating expenses, excluding water production costs, for the third quarter were $23.4 million compared to $22.3 million in 2010. The increase of $1.1 million reflects an additional $721,000 of depreciation expense, $436,000 of maintenance expenses and $341,000 more in taxes other than income tax, partially offset by a decrease of $352,000 in administrative and general expenses.

In addition, 2010 income before taxes included $4.5 million gain on the sale of California Water Service group shares which did not recur in 2011. Income tax expense for the third quarter decreased to $5.4 million in 2011 from $7.3 million in 2010.

Year-to-date operating revenue increased by $11.7 million to $176.6 million from $164.9 million in the first nine months of 2011. The increase was attributable to $8.9 million in cumulative rate increases, higher customer water usage (a $1.4 million impact), $544,000 in revenue from new customers and $910,000 in higher revenue from real estate operations.

Year-to-date net income was $14.3 million, compared to $16.3 million in 2010. Diluted earnings per share were $0.76 in the first nine months of 2011, compared to $0.87 per diluted share for the same period in 2010.

Year-to-date water production costs increased to $69.7 million from $66.4 million in 2010. The $3.3 million increase was primarily attributable to $2.4 million in a higher per unit cost for purchased water and groundwater extraction charges, $492,000 in higher costs related to customer water usage and $433,000 in increased costs due to decreased use of surface water supply. Operating expenses, excluding water production costs, increased $5.1 million to $69.0 million from $63.9 million. The increase was due to an increase in depreciation expense of $2.1 million, $1.3 million in administrative and general expenses, $895,000 in maintenance expenses and $788,000 in taxes other than income taxes. Income tax expense decreased by $1.5 million year-to-date due to lower pre-tax income. Other (expense) income increased due to interest expense on new senior note borrowings. In addition, the Company recorded a pre-tax gain of $4.5 million in 2010 related to the sale of California Water Service Group shares. No similar sale occurred in 2011.

The Directors of SJW Corp. today declared a quarterly dividend on common stock of $0.1725 per share. The dividend is payable on December 1, 2011 to shareholders of record on November 7, 2011.

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., Texas Water Alliance Limited, 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.

Contacts:

SJW Corp.
Suzy Papazian, 408-279-7961
Corporate Secretary/Attorney

Source: SJW Corp.