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SJW CORP
Symbol U : SJW
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SJW Corp. Announces 2012 Annual and Fourth Quarter Financial Results

2013-02-19 19:00 ET - News Release


SAN JOSE, Calif. -- (Business Wire)

SJW Corp. (NYSE: SJW) today reported operating revenue for the year ended December 31, 2012 of $261.5 million versus $238.9 million for the year ended December 31, 2011, an increase of $22.6 million. The increase in revenue was attributable to cumulative rate increases of $17.6 million, $5.5 million in higher customer water usage, the recognition of certain balancing and memorandum accounts of $3.6 million in December 2012, $1.3 million from new customers and $383,000 from real estate operations. These increases were partially offset by the Mandatory Conservation Revenue Adjustment Memorandum Account ("MCRAM") of $5.7 million that was recognized in December 2011.

Water production costs for the year ended December 31, 2012 were $107.3 million compared to $92.1 million in 2011, an increase of $15.2 million. The increase in water production costs is primarily attributable to $6.7 million in higher per unit costs for purchased water and groundwater extraction charges, $5.3 million in higher costs due to a decrease in available surface water supply and $3.2 million in higher customer water usage.

Operating expenses, excluding water production costs, for the year ended December 31, 2012 were $99.0 million compared to $92.5 million in 2011. The increase of $6.5 million reflects an additional $3.7 million of administrative and general expenses primarily due to higher payroll and benefit costs, $1.9 million of higher depreciation expense, $782,000 in higher property taxes and $89,000 in higher maintenance expenses. The effective consolidated income tax rate was 41% for the years ended December 31, 2012 and 2011.

Net income was $22.3 million and diluted earnings per common share were $1.18, compared to $20.9 million and $1.11 per share, respectively, for the year ended December 31, 2011.

Fourth Quarter Financial Results

Operating revenue for the fourth quarter ended December 31, 2012 was $62.4 million versus $62.3 million for the same period in 2011, an increase of $100,000. The change was primarily attributable to $4.0 million in cumulative rate increases, $3.6 million due to the recognition of balancing and memorandum accounts and $358,000 from new customers. These increases were partially offset by the recognition of the MCRAM of $5.7 million in December 2011 and $2.1 million due to lower customer usage.

Water production costs for the fourth quarter of 2012 were $23.1 million versus $22.3 million for the same period in 2011, an increase of $800,000. The increase in water production costs is primarily attributable to $1.3 million in higher per unit costs for purchased water and groundwater extraction charges, $127,000 in higher costs due to a decrease in available surface water supply, partially offset by $585,000 in lower customer water usage. Operating expenses, excluding water production costs, increased $1.7 million to $25.2 million from $23.5 million. The increase was due to an increase in administrative and general expenses of $785,000, $411,000 in higher maintenance expenses, $372,000 of higher depreciation expense and $138,000 in higher taxes other than income taxes. The effective consolidated income tax rate was 42% and 43% for the quarter ended December 31, 2012 and 2011, respectively.

Net income was $5.9 million for the fourth quarter ended December 31, 2012, compared to $6.7 million for the same period in 2011. Diluted earnings per share were $0.31 for the quarter ended December 31, 2012, compared to $0.35 per diluted share for the same period in 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 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.Results for a quarter are not indicative of results for a full year due to seasonality and other factors.Other 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 Comprehensive Income

(Unaudited)
(in thousands, except per share data)
 
 

Three months ended
December 31,

Twelve months ended
December 31,

2012   20112012   2011
OPERATING REVENUE $ 62,449   62,338   $ 261,547   238,955  
OPERATING EXPENSE:
Production Costs:
Purchased water 11,978 15,038 66,106 54,317
Power 1,354 1,028 5,796 5,394
Groundwater extraction charges 6,883 3,365 23,940 20,997
Other production costs 2,934   2,903   11,445   11,345  
Total production costs 23,149 22,334 107,287 92,053
Administrative and general 10,745 9,960 42,812 39,136
Maintenance 3,817 3,406 13,350 13,261
Property taxes and other non-income taxes 2,452 2,314 9,703 8,921
Depreciation and amortization 8,176   7,804   33,098   31,193  
Total operating expense 48,339   45,818   206,250   184,564  
OPERATING INCOME 14,110 16,520 55,297 54,391
Interest on long-term debt and other (3,866 ) (4,962 ) (17,437 ) (18,947 )
Income before income taxes 10,244 11,558 37,860 35,444
Provision for income taxes 4,320   4,956   15,542   14,566  
NET INCOME 5,924   6,602   22,318   20,878  
Other comprehensive income, net (53 ) 125   36   (85 )
COMPREHENSIVE INCOME $ 5,871   6,727   $ 22,354   20,793  
 
EARNINGS PER SHARE
Basic $ 0.32 0.36 $ 1.20 1.12
Diluted $ 0.31 0.35 $ 1.18 1.11
DIVIDENDS PER SHARE $ 0.18 0.17 $ 0.71 0.69
WEIGHTED AVERAGE SHARES OUTSTANDING
Basic 18,671 18,592 18,635 18,582
Diluted 18,857 18,813 18,839 18,794
 
   
SJW Corp.
Condensed Consolidated Balance Sheets
(Unaudited)
(in thousands)
 

December 31,
2012

December 31,
2011

ASSETS
Utility plant:
Land $ 10,156 8,852
Depreciable plant and equipment 1,166,220 1,070,016
Construction in progress 24,298 18,527
Intangible assets 15,561   14,732
Total utility plant 1,216,235 1,112,127
Less accumulated depreciation and amortization 384,675   355,914
Net utility plant 831,560   756,213
 
Real estate investments 74,232 89,099
Less accumulated depreciation and amortization 9,045   10,557
Net real estate investments 65,187   78,542
CURRENT ASSETS:
Cash and cash equivalents 2,522 26,734
Accounts receivable and accrued unbilled utility revenue 29,944 33,853
Long-lived assets held-for-sale 7,768
Prepaid expenses and other 2,677   8,328
Total current assets 42,911   68,915
OTHER ASSETS:
Investment in California Water Service Group 7,067 7,032
Debt issuance costs, net of accumulated amortization 5,226 4,865
Regulatory assets, net 130,488 119,248
Other 5,060   3,995
147,841   135,140
$ 1,087,499   1,038,810
 
CAPITALIZATION AND LIABILITIES
CAPITALIZATION:
Common stock $ 9,724 9,684
Additional paid-in capital 26,117 24,552
Retained earnings 236,453 227,494
Accumulated other comprehensive income 2,310   2,274
Total shareholders' equity 274,604 264,004
Long-term debt, less current portion 335,598   343,848
Total capitalization 610,202   607,852
CURRENT LIABILITIES:
Line of credit 15,300
Current portion of long-term debt 5,392 838
Accrued groundwater extraction charge, purchased water and purchased power 5,072 6,212
Accounts payable 8,481 7,417
Accrued interest 5,355 5,376
Other current liabilities 9,507   8,445
Total current liabilities 49,107   28,288
 
DEFERRED INCOME TAXES AND CREDITS 149,013 135,036

ADVANCES FOR CONSTRUCTION AND CONTRIBUTIONS IN AID OF CONSTRUCTION

196,743 190,668
POSTRETIREMENT BENEFIT PLANS 73,425 68,855
OTHER NONCURRENT LIABILITIES 9,009   8,111
$ 1,087,499   1,038,810

Contacts:

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

Source: SJW Corp.

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