SAN JOSE, Calif. -- (Business Wire)
SJW Corp. (NYSE: SJW) today reported operating revenue for the year
ended December 31, 2011 of $238.9 million versus $215.6 million for the
year ended December 31, 2010, an increase of $23.3 million. The increase
in revenue was primarily attributable to cumulative rate increases of
$12.4 million, the recovery of a Mandatory Conservation Revenue
Adjustment Memorandum account (“MCRAM”) that was authorized by the
California Public Utilities Commission in December 2011 of $5.7 million,
higher customer usage of $3.4 million, $706,000 in new customers, and
$1.1 million in higher revenue from real estate operations.
Water production costs for the year ended December 31, 2011 were $92.1
million versus $87.3 million in 2010, an increase of $4.8 million. The
increase in water production costs is primarily attributable to $3.7
million in higher per unit costs for purchased water and groundwater
extraction charges, $743,000 higher customer water usage and $265,000
increase in costs due to a decrease in the use of available surface
water supply.
Operating expenses, excluding water production costs, for the year ended
December 31, 2011 were $92.5 million versus $90.3 million for 2010, an
increase of $2.2 million. This increase was primarily attributable to
$2.9 million higher depreciation and amortization, $1.0 million in
maintenance expenses, $1.0 million in taxes other than income tax and
$952,000 in administrative and general expenses. In 2010, $3.6 million
in impairment loss on a real estate investment was recognized. No
impairment loss was recognized in 2011.
Other (expense) income increased due to interest expense on new senior
note borrowings. In addition, the Company sold 907,392 shares of
California Water Service Group stock and recorded a gain of $19.0
million in 2010. No similar sale occurred in 2011. Income taxes for the
year ended December 31, 2011 were $14.6 million versus $16.7 million for
2010, a decrease of $2.1 million due to lower pre-tax income.
Net income was $20.9 million for the year ended December 31, 2011,
compared to $24.4 million for the year ended December 31, 2010. Diluted
earnings per common share for the year ended December 31, 2011 were
$1.11, compared to $1.30 per share in 2010. For the year ended December
31, 2011, recognition of the MCRAM contributed $0.18 to diluted earnings
per share. For the year ended December 31, 2010, the sale of California
Water Service Group stock contributed $0.60 to diluted earnings per
share, offset by the impairment loss of $0.11 per diluted share.
Fourth Quarter Financial Results
Operating revenue for the fourth quarter ended December 31, 2011 was
$62.3 million versus $50.7 million for the same period in 2010, an
increase of $11.6 million. The increase was attributable to $5.7 million
due to the recognition of the MCRAM, cumulative rate increases of $3.5
million, higher customer usage of $2.1 million, $162,000 in new
customers and $138,000 in higher revenue from real estate operations.
Water production costs for the fourth quarter of 2011 were $22.3 million
versus $20.9 million for the same period in 2010, an increase of $1.4
million. 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, $251,000 higher customer water
usage, partially offset by $168,000 decrease in costs due to an increase
in the use of available surface water supply.
Operating expenses, excluding water production costs, for the fourth
quarter of 2011 were $23.4 million versus $26.4 million for the same
period in 2010, a decrease of $3.0 million. This was attributable to
decreases of $3.6 million in impairment loss on a real estate investment
and $363,000 in administrative and general expenses, partially offset by
increases of $736,000 in depreciation and amortization, $226,000 in
taxes other than income tax expense and $124,000 in maintenance expenses.
Other (expense) income increased due to interest expense on new senior
note borrowings. In addition, the Company sold 684,280 shares of
California Water Service Group stock and recorded a gain of $14.5
million in 2010. No similar sale occurred in 2011. Income taxes for the
fourth quarter of 2011 were $5.0 million versus $5.6 million for 2010, a
decrease of $0.6 million due to lower pre-tax income.
Net income was $6.6 million for the fourth quarter ended December 31,
2011, compared to $8.1 million for the same period in 2010. Diluted
earnings per common share were $0.35 for the quarter ended December 31,
2011, compared to $0.43 per share for the same period in 2010. In the
fourth quarter of 2011, the recognition of the MCRAM contributed $0.18
to diluted earnings per share. In the fourth quarter of 2010, the sale
of California Water Service Group stock contributed $0.46 to diluted
earnings per share, offset by the impairment loss of $0.11 per diluted
share.
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.
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SJW Corp.
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Condensed Consolidated Statements of Income and Comprehensive
Income (Loss)
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(Unaudited)
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|
(in thousands, except per share data)
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THREE MONTHS ENDED
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TWELVE MONTHS ENDED
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DECEMBER 31
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DECEMBER 31
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| |
2011
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2010
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2011
|
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2010
|
|
|
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OPERATING REVENUE
| |
$
|
62,338
| |
|
50,752
| | |
238,955
| |
|
215,638
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OPERATING EXPENSE:
| | | | | | | | |
Production Costs:
| | | | | | | | |
|
Purchased water
| | |
15,038
| | |
9,829
| | |
54,317
| | |
43,557
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|
Power
| | |
1,028
| | |
1,579
| | |
5,394
| | |
6,429
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|
Groundwater extraction charge
| | |
3,365
| | |
6,645
| | |
20,997
| | |
26,614
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|
Other production costs
| |
|
2,903
|
| |
2,870
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| |
11,345
|
| |
10,702
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Total production costs
| | |
22,334
| | |
20,923
| | |
92,053
| | |
87,302
| |
|
|
|
Administrative and general
| | |
9,960
| | |
10,323
| | |
39,136
| | |
38,184
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|
Maintenance
| | |
3,406
| | |
3,282
| | |
13,261
| | |
12,242
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Taxes other than income
|
| |
2,314
| | |
2,088
| | |
8,921
| | |
7,907
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|
Depreciation and amortization
| | |
7,804
| | |
7,068
| | |
31,193
| | |
28,331
| |
Impairment on real estate investment
| |
-
|
| |
3,597
|
| |
-
|
| |
3,597
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Total operating expense
| |
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45,818
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47,281
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| |
184,564
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177,563
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OPERATING INCOME
| | |
16,520
| | |
3,471
| | |
54,391
| | |
38,075
| |
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Gain on sale of California Water Service stock
| |
-
| | |
14,500
| | |
-
| | |
18,966
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Interest on long-term debt and other
| |
|
(4,962
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)
|
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(4,229
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)
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(18,947
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)
| |
(15,895
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)
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|
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Income before income taxes
| |
$
|
11,558
| | |
13,742
| | |
35,444
| | |
41,146
| |
|
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Provision for income taxes
| |
|
4,956
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| |
5,624
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| |
14,566
|
| |
16,740
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NET INCOME
| |
$
|
6,602
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|
|
8,118
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| |
20,878
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24,406
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Other comprehensive income (loss), net
| |
|
125
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| |
(8,220
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)
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(85
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)
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(10,828
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)
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COMPREHENSIVE INCOME (LOSS)
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$
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6,727
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(102
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)
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20,793
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13,578
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Earnings per share
| | | | | | | | |
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-Basic
| |
$
|
0.36
| | |
0.45
| | |
1.12
| | |
1.32
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|
-Diluted
| |
$
|
0.35
| | |
0.43
| | |
1.11
| | |
1.30
| |
|
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Dividend per share
| |
$
|
0.17
| | |
0.17
| | |
0.69
| | |
0.68
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Weighted average shares outstanding
| | | | | | | | |
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-Basic
| | |
18,592
| | |
18,541
| | |
18,582
| | |
18,531
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-Diluted
| | |
18,813
| | |
18,755
| | |
18,794
| | |
18,742
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SJW Corp.
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Condensed Consolidated Balance Sheets
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(Unaudited)
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(in thousands)
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December 31
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December 31
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2011
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2010
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ASSETS
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UTILITY PLANT:
| | | | |
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Land
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$
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8,852
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8,579
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Depreciable plant and equipment
| | |
1,070,016
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1,004,689
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Construction in progress
| | |
18,527
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10,103
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Intangible assets
| |
|
14,732
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13,538
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Total utility plant
| | |
1,112,127
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1,036,909
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Less accumulated depreciation and amortization
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355,914
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322,102
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Net utility plant
| |
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756,213
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714,807
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Real estate investment
| | |
89,099
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88,943
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Less accumulated depreciation and amortization
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|
10,557
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8,854
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Net real estate investment
| |
|
78,542
| |
80,089
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CURRENT ASSETS:
| | | | |
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Cash and equivalents
| | |
26,734
| |
1,730
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Accounts receivable and accrued unbilled utility revenue
| | |
33,853
| |
33,835
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|
Prepaid expenses and other
| |
|
8,328
| |
2,462
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Total current assets
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68,915
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38,027
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OTHER ASSETS:
| | | | |
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Investment in California Water Service Group
| | |
7,032
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7,177
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Debt issuance costs, net of accumulated amortization
| | |
4,865
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4,308
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Regulatory assets, net
| | |
119,248
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87,721
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Other
| |
|
3,995
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3,233
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| |
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135,140
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102,439
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$
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1,038,810
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935,362
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CAPITALIZATION AND LIABILITIES
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CAPITALIZATION:
| | | | |
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Common stock
| |
$
|
9,684
| |
9,662
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Additional paid-in capital
| | |
24,552
| |
23,443
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Retained earnings
| | |
227,494
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219,568
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Accumulated other comprehensive income
| |
|
2,274
| |
2,359
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Total shareholders’ equity
| | |
264,004
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255,032
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Long-term debt, less current portion
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343,848
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295,704
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Total capitalization
| |
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607,852
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550,736
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CURRENT LIABILITIES:
| | | | |
|
Line of credit
| |
-
| |
4,000
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Current portion of long-term debt
| | |
838
| |
1,133
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Accrued groundwater extraction charge, purchased water and
purchased power
| | |
6,212
| |
4,854
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Accounts payable
| | |
7,417
| |
5,487
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|
Accrued interest
| | |
5,376
| |
5,244
|
|
Other current liabilities
| |
|
8,445
| |
8,437
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Total current liabilities
| |
|
28,288
| |
29,155
|
|
|
|
DEFERRED INCOME TAXES AND CREDITS
| | |
135,036
| |
107,961
|
ADVANCES FOR CONSTRUCTION AND CONTRIBUTIONS IN AID OF CONSTRUCTION
| | |
190,668
| |
190,155
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POSTRETIREMENT BENEFIT PLANS
| | |
68,855
| |
50,213
|
|
OTHER NONCURRENT LIABILITIES
| |
|
8,111
| |
7,142
|
| |
$
|
1,038,810
| |
935,362
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Contacts:
SJW Corp.
Suzy Papazian, 408-279-7961
Corporate
Secretary/Attorney
Source: SJW Corp.
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