EX-99.1 2 exhibit99-1.txt EXHIBIT 99.1 SJW CORP. ANNOUNCES FIRST QUARTER FINANCIAL RESULTS Board Declares Quarterly Dividend on Common Stock SAN JOSE, CA, April 27, 2011 - SJW Corp. (NYSE: SJW) today reported financial results for the first quarter ended March 31, 2011. Operating revenue was $43.7 million in the quarter compared to $40.4 million in 2010. The $3.3 million increase in revenue reflects cumulative rate increases of $2.4 million, $628,000 in higher customer water usage and new customers compared to a year ago and $300,000 in higher revenue from real estate operations. Net income was $610,000 and diluted earnings per common share were $0.03, compared to $985,000 and $0.05 per share, respectively, in the first quarter of 2010. Water production costs for the quarter ended March 31, 2011 were $15.5 million compared to $14.5 million in 2010, an increase of $1.0 million. The increase in water production cost is primarily attributable to a decrease in use of available surface water supply. Operating expenses, excluding water production costs, for the first quarter were $22.6 million compared to $20.6 million in 2010. The increase of $2.0 million reflects an additional $683,000 of depreciation expense compared to last year, higher administrative and general expenses of $648,000, $384,000 more in taxes other than income tax and an increase of $272,000 in maintenance expenses. Income tax expense for the first quarter decreased to $433,000 in 2011 from $682,000 in 2010 as a result of lower pre-tax income. The Directors of SJW Corp. today declared a quarterly dividend on common stock of $0.1725 per share. The dividend is payable on June 1, 2011 to shareholders of record on May 9, 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. SJW Corp. Condensed Consolidated Statements of Income and Comprehensive Income (Unaudited) (in thousands, except per share data) THREE MONTHS ENDED MARCH 31 2011 2010 ------------------------ OPERATING REVENUE $ 43,696 40,411 OPERATING EXPENSE: Operation: Purchased water 7,416 5,819 Power 1,014 1,144 Groundwater extraction charge 4,508 4,995 Other production costs 2,592 2,538 -------- -------- Total production costs 15,530 14,496 Administrative and general 9,636 8,988 Maintenance 3,048 2,776 Taxes other than income 2,087 1,703 Depreciation and amortization 7,794 7,111 -------- -------- Total operating expense 38,095 35,074 -------- -------- OPERATING INCOME 5,601 5,337 Interest on long-term debt and other (4,558) (3,670) -------- -------- Income before income taxes $ 1,043 1,667 Provision for income taxes 433 682 -------- -------- NET INCOME $ 610 985 ======== ======== Other comprehensive income (loss), net (11) 513 --------- -------- COMPREHENSIVE INCOME $ 599 1,498 ======== ======== Earnings per share - Basic $ 0.03 0.05 - Diluted $ 0.03 0.05 Dividend per share $ 0.17 0.17 Weighted average shares outstanding - Basic 18,570 18,519 - Diluted 18,775 18,721 SJW Corp. Condensed Consolidated Balance Sheets (Unaudited) (in thousands) March 31 December 31 2011 2010 ASSETS ----------------------- UTILITY PLANT: Land $ 8,579 8,579 Depreciable plant and equipment 1,018,311 1,004,689 Construction in progress 14,501 10,103 Intangible assets 14,313 13,538 -------- -------- Total utility plant 1,055,704 1,036,909 Less accumulated depreciation and amortization 329,597 322,102 -------- -------- Net utility plant 726,107 714,807 -------- -------- REAL ESTATE INVESTMENT: 88,962 88,943 Less accumulated depreciation and amortization 9,273 8,854 -------- -------- Net real estate investment 79,689 80,089 -------- -------- CURRENT ASSETS: Cash and equivalents 2,354 1,730 Accounts receivable and accrued unbilled utility revenue 34,572 33,835 Prepaid expenses and other 2,135 2,462 -------- -------- Total current assets 39,061 38,027 -------- -------- OTHER ASSETS: Investment in California Water Service Group 7,158 7,177 Debt issuance costs, net of accumulated amortization 4,479 4,308 Regulatory assets 87,721 87,721 Other 3,463 3,233 -------- -------- 102,821 102,439 ------- -------- $947,678 935,362 ======== ======== CAPITALIZATION AND LIABILITIES CAPITALIZATION: Common stock $ 9,675 9,662 Additional paid-in capital 23,808 23,443 Retained earnings 216,942 219,568 Accumulated other comprehensive income 2,348 2,359 -------- -------- Total shareholders' equity 252,773 255,032 Long-term debt, less current portion 295,059 295,704 -------- -------- Total capitalization 547,832 550,736 -------- -------- CURRENT LIABILITIES: Line of credit 11,500 4,000 Current portion of long-term debt 1,149 1,133 Accrued groundwater extraction charge and purchased water 3,721 4,359 Purchased power 454 495 Accounts payable 10,609 5,487 Accrued interest 4,897 5,244 Other current liabilities 8,741 8,437 -------- -------- Total current liabilities 41,071 29,155 -------- -------- DEFERRED INCOME TAXES AND CREDITS 111,293 107,961 ADVANCES FOR CONSTRUCTION AND CONTRIBUTIONS IN AID OF CONSTRUCTION 189,092 190,155 POSTRETIREMENT BENEFIT PLANS 51,248 50,213 OTHER NONCURRENT LIABILITIES 7,142 7,142 -------- -------- $947,678 935,362 ======== ========