EX-99.01 2 y23865exv99w01.htm EX-99.01: PRESS RELEASE EX-99.01
 

Exhibit 99.01
(PRESS RELEASE LETTERHEAD)
             
DATE:
  August 2, 2006   CONTACTS:   Michael Kinney (media)
 
          732-938-1031
 
               or
 
          Dennis Puma (investors)
 
          732-938-1229
NJR REPORTS FISCAL YEAR-TO-DATE AND
THIRD-QUARTER EARNINGS PER SHARE

•   NJR’s fiscal year-to-date earnings increase 7.3 percent over last year to $3.25 per basic share due primarily to improved wholesale energy services results
 
•   Earnings guidance for fiscal 2006 increased to upper end of $2.75 to $2.85 per basic share range
 
•   NJR on track for record 15th year of increased earnings per share
WALL, N.J. — New Jersey Resources (NYSE: NJR) today reported a 7.3 percent increase in basic earnings per share for the nine months ended June 30, 2006, to $3.25, compared with $3.03 last year. On a diluted basis, earnings per share for the nine months ended June 30, 2006, increased to $3.22, compared with $2.97 last year, an 8.4 percent increase. The increase in earnings for the 9-month period is due primarily to improved results at NJR Energy Services (NJRES), NJR’s unregulated wholesale energy services subsidiary. Last year’s 9-month earnings included a $.22 per basic share gain on the sale of a commercial office building and a charge of $.05 per basic share associated with an early retirement program for officers. Net of these items, NJR’s earnings for the nine months ended June 30, 2005 were $79.2 million, or $2.87 per basic share and $2.81 per diluted share.
NJR’s fiscal 2006 earnings have been driven by NJRES, which saw earnings grow to $35.5 million, a 90 percent increase over $18.7 million for the same period last year. These strong results more than offset the impact of lower customer usage at New Jersey Natural Gas (NJNG), NJR’s largest subsidiary.
“Based on our results over the first nine months and our earnings guidance, we expect to achieve our 15th consecutive year of earnings growth — a streak that we believe is the longest in our industry,” said Laurence M. Downes, chairman and CEO of NJR. “As always, our employees deserve the credit for our continued strong financial performance. Their dedication is what drives our ability to meet our commitment to all our stakeholders.”
-more-

 

 

NJR REPORTS FISCAL YEAR-TO-DATE AND THIRD-QUARTER EARNINGS PER SHARE
Page 2 of 12
For the third quarter of fiscal 2006, NJR posted a loss of $.14 per basic and diluted earnings per share compared with earnings of $.07 per basic and diluted earnings per share last year. The decrease in earnings for the 3-month period is attributable primarily to weaker results at both NJRES and NJNG, due primarily to the impact of seasonality and fixed costs associated with their capacity assets.
Price Reduction and Customer Credits Announced
Benefiting from a decline in wholesale commodity price and its hedging and incentive programs, on June 1, 2006, NJNG filed for a reduction in its Basic Gas Supply Service (BGSS). The reduction would represent a decrease of 6.6 percent for the average residential heating customer. The BGSS charge reflects the portion of customers’ bills that goes towards purchasing and interstate transporting of natural gas. Any changes do not impact NJNG’s profits. The reduction will save an average customer, using 100 therms of natural gas per month, approximately $11 on their monthly bill.
Additionally, in September’s natural gas bills, NJNG will provide refunds totaling at least $20 million to residential and small commercial sales customers. The refunds will be based on individual customer usage from February through August and are currently estimated to be approximately $49 for the average residential customer. This action was made possible by the warmer temperatures experienced this past winter, which lowered customer requirements and avoided the need to purchase more expensive incremental natural gas supplies, and lower wholesale natural gas prices. NJNG will determine the exact amount of the refund in late August.
Financial and operating highlights included:
•   Higher Net Income and Basic Earnings per Share
 
    For the nine months ended June 30, 2006, NJR earned $90.5 million, or $3.25 per basic share, compared with $83.7 million, or $3.03 per basic share, last year. Last year’s earnings for the 9-month period included a gain on the sale of a commercial office building of $.22 per basic share by NJR’s commercial real estate subsidiary, Commercial Realty and Resources (CR&R), and a charge of $.05 per basic share associated with a voluntary officer retirement program as part of an overall management restructuring plan for the organization. The increase in earnings was due primarily to improved results at NJRES.
 
    NJR posted a loss of $4 million, or $.14 per basic share, for the three months ended June 30, 2006, compared with earnings of $1.8 million, or $.07 per basic share, for the same period last year. The lower earnings were due primarily to seasonal losses at NJRES and lower customer usage at NJNG, as previously forecast by management.
 
    NJNG earned $53.8 million for the 9-month period ended June 30, 2006, compared with $57 million last year. For the three months ended June 30, 2006, NJNG earned $1.7 million, compared with $3.9 million last year. The decrease in both periods was due primarily to the impact of lower customer usage per degree day. NJNG believes that the lower usage was due primarily to the pass-through of higher wholesale natural gas prices, which offset continued strong customer growth.
-more-

 

 

NJR REPORTS FISCAL YEAR-TO-DATE AND THIRD-QUARTER EARNINGS PER SHARE
Page 3 of 12
    NJRES reported a 90 percent increase in earnings for the nine months ended June 30, 2006 to $35.5 million, compared with $18.7 million last year. For the three months ended June 30, 2006, NJRES reported a loss of $6.4 million, compared with a loss of $3.3 million last year.
 
•   Continued Customer Growth at NJNG
 
    During the first nine months of fiscal 2006, NJNG added 7,871 new customers, 34 percent of which converted from other fuels. In addition, 175 existing customers added natural gas heat to their service. NJNG anticipates an annual customer growth rate of approximately 2.3 percent in fiscal 2006. About one-third of the anticipated new customers are expected to convert from other fuels.
 
•   Impact of Weather and Usage
 
    Weather during the nine months ended June 30, 2006 was 9.8 percent warmer than normal and 11.9 percent warmer than last year. Weather for the three months ended June 30, 2006, was 26.3 percent warmer than normal and 27.6 percent warmer than last year. “Normal” weather is based on 20-year average temperatures. The impact of the weather is offset by NJNG’s weather-normalization clause (WNC), which is designed to smooth out year-to-year fluctuations on both NJNG’s gross margin and customers’ bills that may result from changing weather patterns. Included in the WNC is the assumption that usage per degree day is equal to the average over the last four years. As a result of the warmer-than-normal weather, NJNG accrued $10.2 million of gross margin for the nine months ended June 30, 2006, to be collected from customers in the future. However, gross margin was negatively impacted by lower usage per degree day which was 5.6 percent lower than the 4-year average. NJNG believes that this resulted mainly from the impact of the pass-through of higher wholesale natural gas prices on customer usage.
 
    NJNG’s gross margin is defined as natural gas revenues less natural gas costs; sales tax; a Transitional Energy Facilities Assessment (TEFA), which is included in Energy and other taxes on the Consolidated Statements of Income; and regulatory rider expenses. Management believes that gross margin provides a more meaningful basis for evaluating utility operations than revenue since natural gas costs, sales tax, TEFA and regulatory rider expenses are, subject to BPU approval, passed through to customers, and therefore, have no effect on gross margin. This definition of utility gross margin may not be comparable to the definition of gross margin used by others in the natural gas distribution business and other industries. Natural gas costs are charged to operating expenses on the basis of therm sales at the prices approved by the New Jersey Board of Public Utilities (BPU) through NJNG’s BGSS tariff. The BGSS allows NJNG to recover natural gas costs. Sales tax is calculated at 6 percent on sales prior to July 15, 2006 and 7 percent thereafter, of revenue and excludes sales to cogeneration facilities, other utilities, off-system sales and federal accounts. TEFA is calculated on a per-therm basis and excludes sales to cogeneration facilities, other utilities and off-system sales. Regulatory rider expenses are calculated on a per-therm basis. NJNG’s gross margin also includes benefits received by shareowners under its BGSS incentive programs.
-more-

 

 

NJR REPORTS FISCAL YEAR-TO-DATE AND THIRD-QUARTER EARNINGS PER SHARE
Page 4 of 12
    In December 2005, NJNG filed a proposal with the BPU, which would replace the existing WNC with a Conservation and Usage Adjustment (CUA) clause that would capture variations related to weather and customer usage. The proposal would establish a benchmark for customer usage. NJNG would compare actual results to the benchmark on an annual basis. Any adjustments, positive or negative, would be made in the following year. Discussions on the proposal with the BPU staff and the Department of Public Advocate, Division of Rate Counsel continue. If NJNG is not successful in receiving approval of the CUA proposal, it will consider other regulatory strategies to address this issue such as expanded incentive programs and/or the filing of a base rate case.
 
•   Incentive Programs Offer Benefits to Customers and Shareowners
 
    During the first nine months of the fiscal year, NJNG’s gross margin-sharing incentive programs, which include off-system sales, capacity management, storage optimization and financial risk management programs, totaled 30 billion cubic feet (Bcf) and $6.5 million of gross margin, compared with 38.7 Bcf and $4.8 million of gross margin for the same period last year. The increase in gross margin was due primarily to the storage incentive and financial risk management programs, both of which benefited from the volatile wholesale natural gas commodity market. For the three months ended June 30, 2006, these programs totaled 8.3 Bcf and $481,000 of gross margin, compared with 10.1 Bcf and $799,000 of gross margin for the same period last year. The decrease in gross margin in the quarter was due primarily to timing differences in the storage incentive program. NJNG shares the gross margin earned from these incentive programs with customers and shareowners according to gross margin-sharing formulas. In April 2006, the BPU authorized an extension of the incentive programs through October 2007.
 
    This fiscal year, customers have saved approximately $32 million in natural gas costs through these programs. Since the establishment of these incentive programs in 1992, NJNG customers have saved over $297 million on their natural gas bills, or approximately 4 percent annually.
 
•   Wholesale Energy Services Experiences Seasonal Loss
 
    NJRES earned $35.5 million during the first nine months of the fiscal year compared with $18.7 million last year. NJRES has developed a portfolio of storage and transportation capacity in the Northeast, Gulf Coast, Mid-Continent, Appalachia and Eastern Canada. These assets become more valuable when prices change between these areas and/or time periods.
 
    For the three months ended June 30, 2006, NJRES had a loss of $6.4 million, compared with a loss of $3.3 million last year. The larger loss in the quarter reflects the increased amount of demand costs and interest expense associated with NJRES’ growing portfolio of storage and transportation capacity contracts.
-more-

 

 

NJR REPORTS FISCAL YEAR-TO-DATE AND THIRD-QUARTER EARNINGS PER SHARE
Page 5 of 12
    Gross margin, defined as natural gas revenues and management fees less natural gas costs, from this portfolio is generally greater during the winter months, while the fixed costs of these assets are spread throughout the year. Therefore, consistent with this seasonality, a loss
in the third and fourth fiscal quarters is anticipated. Accordingly, the results for the nine months are not indicative of the results for the fiscal year.
 
•   NJRHS and Other
 
    This business segment consists of NJR Home Services (NJRHS), which provides service, sales and installation of appliances to nearly 147,000 customers; CR&R, which develops commercial real estate; and NJR Energy, which consists primarily of a 5.53 percent equity investment in Iroquois Gas Transmission System, L.P. Earnings for the nine months ended June 30, 2006, were $1.1 million, compared with $8 million last year. Last year’s 9-month earnings included a gain on the sale of a commercial office building of approximately $6 million. Net of this gain and this segment’s portion of the early retirement charge, earnings for the nine months ended June 30, 2005 were $2.6 million. For the three months ended June 30, 2006, this segment earned $724,000, compared with earnings of $1.3 million last year. The decrease in the three months was due primarily to higher corporate expenses and last year’s 3-month earnings including an after-tax gain of $210,000 on the sale of real estate.
 
•   Share Repurchase Update
 
    NJR purchased 305,100 shares under the share repurchase plan in the nine months ended June 30, 2006. In January 2006, the NJR Board of Directors authorized an increase in the company’s share repurchase plan from 2.5 million to 3.5 million shares. The plan authorizes NJR to purchase its shares on the open market or in negotiated transactions, based on market and other conditions. Since the plan began in September 1996, NJR has invested over $94 million to repurchase 2.46 million shares.
Fiscal 2006 Earnings Guidance
Assuming a continuation of lower customer usage, stable economic conditions, continued customer growth at NJNG, continued volatility in the wholesale natural gas markets at NJRES, the impact of seasonality on the company’s businesses and subject to the factors discussed below under “Forward-Looking Statements,” NJR estimates that earnings for fiscal 2006 will be toward the upper end of the $2.75—$2.85 per basic share range.
Webcast Information
NJR will host a live webcast to discuss the quarter’s financial results today at 2 p.m. ET. To listen to the call, logon to NJR’s Web site, njliving.com, and select “Investor Relations,” then click just below the microphone on the right side of the Investor Relations home page.
-more-

 

 

NJR REPORTS FISCAL YEAR-TO-DATE AND THIRD-QUARTER EARNINGS PER SHARE
Page 6 of 12
About New Jersey Resources
New Jersey Resources (NYSE:NJR), a Fortune 1000 company and a member of the Forbes Platinum 400, provides reliable retail and wholesale energy services to customers in New Jersey and in states from the Gulf Coast to New England, and Canada. Its principal subsidiary, New Jersey Natural Gas, is one of the fastest-growing local distribution companies in the United States, serving more than 468,000 customers in central and northern New Jersey. Other major NJR subsidiaries include NJR Energy Services and NJR Home Services. NJR Energy Services provides customer service and management of natural gas storage and capacity assets in the unregulated energy services market. NJR Home Services offers retail customers heating, air conditioning and appliance services. NJR’s progress is a tribute to the more than 5,000 dedicated employees who have shared their expertise and focus on quality through more than 50 years of serving customers and the community to make NJR a leader in the competitive energy marketplace. For more information, visit NJR’s Web site at njliving.com.
Forward-Looking Statements
This news release contains estimates, earnings guidance and other forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. NJR cautions readers that the assumptions forming the basis for forward-looking statements include many factors that are beyond NJR’s ability to control or estimate precisely, such as estimates of future market conditions and the behavior of other market participants. Other factors that could cause actual results, including gross margin, earnings and customer growth, to differ materially from the company’s expectations include, but are not limited to, weather, economic conditions and demographic changes in NJNG’s service territory, the rate of customer growth, volatility of natural gas commodity prices and its impact on customer usage and NJRES operations, the impact of the company’s risk management efforts, including commercial and wholesale credit risks, the impact of regulation (including the regulation of rates), fluctuations in energy-related commodity prices, conversion activity, other marketing efforts, actual energy usage patterns of NJNG’s customers, the pace of deregulation of retail gas markets, access to adequate supplies of natural gas, the regulatory and pricing policies of federal and state regulatory agencies, changes due to legislation at the federal and state level, the availability of an adequate number of appropriate counterparties, sufficient liquidity in the energy trading market and continued access to the capital markets, the disallowance of recovery of environmental-related expenditures and other regulatory changes, environmental and other litigation and other uncertainties. More detailed information about these factors is set forth in NJR’s filings with the Securities and Exchange Commission (SEC), including NJR’s annual report on Form 10-K filed on November 29, 2005 and on NJR’s quarterly report filed on Form 10-Q filed on May 4, 2006. NJR’s SEC documents are available at www.sec.gov. NJR does not, by including this paragraph, assume any obligation to review or revise any particular forward-looking statement referenced herein in light of future events.
-more-

 

 

NJR REPORTS FISCAL YEAR-TO-DATE AND THIRD-QUARTER EARNINGS PER SHARE
Page 7 of 12
NEW JERSEY RESOURCES
CONSOLIDATED FINANCIAL RESULTS

                                 
(Unaudited)   Three Months Ended     Nine Months Ended  
Thousands, except per share data   June 30,     June 30,  
    2006     2005     2006     2005  
 
 
                                
Operating Revenues
   $ 536,103     $ 544,280     $ 2,765,101     $ 2,463,325  
 
                                
Net (Loss) Income
   $ (3,975 )   $ 1,835     $ 90,490     $ 83,702  
 
                                
(Loss) Earnings Per Common Share
                                
Basic
   $ (.14 )   $ .07     $ 3.25     $ 3.03  
Diluted
   $ (.14 )   $ .07     $ 3.22     $ 2.97  
 
                                
Average Shares Outstanding
                                
Basic
     28,055       27,468       27,809       27,616  
Diluted
     28,396       28,079       28,139       28,198  
 
                                
-more-

 

 

Page 8 of 12
NEW JERSEY RESOURCES
CONSOLIDATED STATEMENTS OF INCOME
                                 
(Unaudited)            
 
(Thousands, except per share data)            
 
    Three Months Ended     Nine Months Ended  
    June 30,     June 30,  
    2006     2005     2006     2005  
 
OPERATING REVENUES
   $ 536,103     $ 544,280     $ 2,765,101     $ 2,463,325  
 
 
                                
OPERATING EXPENSES
                                
Gas purchases
     489,677       492,036       2,410,840       2,133,386  
Operation and maintenance
     28,657       24,298       86,160       77,834  
Regulatory rider expenses
     4,005       4,793       25,868       28,707  
Depreciation and amortization
     8,735       8,424       25,923       25,135  
Energy and other taxes
     8,428       8,878       53,098       50,489  
 
Total operating expenses
     539,502       538,429       2,601,889       2,315,551  
 
 
                                
OPERATING (LOSS) INCOME
     (3,399 )     5,851       163,212       147,774  
 
                                
Other income
     1,769       1,659       4,031       4,823  
 
                                
Interest charges, net
     5,358       4,897       18,014       14,968  
 
 
                                
(LOSS) INCOME BEFORE INCOME TAXES
     (6,988 )     2,613       149,229       137,629  
 
                                
Income tax (benefit) provision
     (3,013 )     778       58,739       53,927  
 
 
                                
NET (LOSS) INCOME
   $ (3,975 )   $ 1,835     $ 90,490     $ 83,702  
 
 
                                
(LOSS) EARNINGS PER COMMON SHARE
                                
BASIC
   $ (0.14 )   $ 0.07     $ 3.25     $ 3.03  
DILUTED
   $ (0.14 )   $ 0.07     $ 3.22     $ 2.97  
 
 
                                
DIVIDENDS PER COMMON SHARE
   $ 0.36     $ 0.34     $ 1.08     $ 1.02  
 
 
                                
AVERAGE SHARES OUTSTANDING
                                
BASIC
     28,055       27,468       27,809       27,616  
DILUTED
     28,396       28,079       28,139       28,198  
 

 

 

Page 9 of 12
NEW JERSEY RESOURCES
 
                                 
    Three Months Ended     Nine Months Ended  
(Unaudited)   June 30,     June 30,  
(Thousands, except per share data)   2006     2005     2006     2005  
 
Operating Revenues
                                
New Jersey Natural Gas
   $ 163,914     $ 174,761     $ 1,029,666     $ 957,807  
NJR Energy Services
     365,373       362,727       1,716,093       1,476,519  
NJR Home Services and Other
     6,884       6,816       19,547       29,072  
     
Sub-total
     536,171       544,304       2,765,306       2,463,398  
     
Intercompany Eliminations
     (68 )     (24 )     (205 )     (73 )
     
Total
   $ 536,103     $ 544,280     $ 2,765,101     $ 2,463,325  
     
 
                                
 
Operating Income (Loss)
                                
New Jersey Natural Gas
   $ 5,365     $ 8,865     $ 96,305     $ 101,014  
NJR Energy Services
     (9,906 )     (4,926 )     65,257       33,817  
NJR Home Services and Other
     1,142       1,912       1,650       12,943  
     
Total
   $ (3,399 )   $ 5,851     $ 163,212     $ 147,774  
     
 
                                
 
Net Income (Loss)
                                
New Jersey Natural Gas
   $ 1,698     $ 3,868     $ 53,890     $ 56,959  
NJR Energy Services
     (6,397 )     (3,314 )     35,499       18,692  
NJR Home Services and Other
     724       1,281       1,101       8,051  
     
Total
   $ (3,975 )   $ 1,835     $ 90,490     $ 83,702  
     
 
                                
 
Throughput (Bcf)
                                
NJNG, Core Customers
     9.0       11.1       56.8       64.3  
NJNG, Off System/Capacity Management
     8.3       10.1       30.0       38.7  
NJRES Fuel Mgmt. and Wholesale Sales
     50.7       49.6       170.3       202.2  
     
Total
     68.0       70.8       257.1       305.2  
     
 
                                
 
Common Stock Data
                                
Yield at June 30
     3.1 %     2.8 %     3.1 %     2.8 %
Market Price
                               
High
   $ 47.38     $ 48.42     $ 47.38     $ 48.42  
Low
   $ 42.85     $ 42.63     $ 40.68     $ 40.54  
Close at June 30
   $ 46.78     $ 48.25     $ 46.78     $ 48.25  
Shares Out. at June 30
     28,074       27,485       28,074       27,485  
Market Cap. at June 30
   $ 1,313,302     $ 1,326,151     $ 1,313,302     $ 1,326,151  
 

 

 

Page 10 of 12
NEW JERSEY NATURAL GAS
 
                                 
    Three Months Ended     Nine Months Ended  
(Unaudited)   June 30,     June 30,  
(Thousands, except customer & weather data)   2006     2005     2006     2005  
 
Operating Revenues
                                
Residential
   $ 76,567     $ 85,247     $ 562,832     $ 521,486  
Commercial, Industrial & Other
     26,376       20,405       162,263       131,138  
Firm Transportation
     6,856       5,669       23,527       25,393  
     
Total Utility Firm Revenues
     109,799       111,321       748,622       678,017  
Interruptible
     2,145       3,232       6,792       9,343  
     
Total System Revenues
     111,944       114,553       755,414       687,360  
     
Incentive Programs
     51,970       60,208       274,252       270,447  
     
TOTAL REVENUES
   $ 163,914     $ 174,761     $ 1,029,666     $ 957,807  
     
 
                                
 
Utility Gross Margin and Operating Income
                                
Residential
   $ 24,000     $ 25,188     $ 133,961     $ 134,510  
Commercial, Industrial & Other
     4,571       4,798       25,516       25,621  
Firm Transportation
     5,516       4,660       18,377       19,465  
     
Total Utility Firm Margin
     34,087       34,646       177,854       179,596  
Interruptible
     229       264       757       831  
     
Total System Margin
     34,316       34,910       178,611       180,427  
     
Incentive Programs
     481       799       6,527       4,807  
     
TOTAL UTILITY GROSS MARGIN
     34,797       35,709       185,138       185,234  
     
Operation and maintenance expense
     20,199       17,964       61,170       57,461  
Depreciation and amortization
     8,580       8,243       25,480       24,547  
Other taxes not reflected in gross margin
     653       637       2,183       2,212  
     
OPERATING INCOME
   $ 5,365     $ 8,865     $ 96,305     $ 101,014  
     
 
                                
 
Throughput (Bcf)
                                
Residential
     4.3       6.2       36.4       40.6  
Commercial, Industrial & Other
     1.6       1.5       9.6       10.4  
Firm Transportation
     1.7       1.2       6.6       7.0  
     
Total Firm Throughput
     7.6       8.9       52.6       58.0  
Interruptible
     1.4       2.2       4.2       6.3  
     
Total System Throughput
     9.0       11.1       56.8       64.3  
     
Incentive Programs
     8.3       10.1       30.0       38.7  
     
TOTAL THROUGHPUT
     17.3       21.2       86.8       103.0  
     
 
                                
 
Customers
                                
Residential
     427,655       417,639       427,655       417,639  
Commercial, Industrial & Other
     29,582       29,234       29,582       29,234  
Firm Transportation
     12,186       14,622       12,186       14,622  
     
Total Firm Customers
     469,423       461,495       469,423       461,495  
Interruptible
     48       50       48       50  
     
Total System Customers
     469,471       461,545       469,471       461,545  
     
Incentive Programs
     35       36       35       36  
     
TOTAL CUSTOMERS
     469,506       461,581       469,506       461,581  
     

 

 

Page 11 of 12
NEW JERSEY NATURAL GAS
 
                                 
    Three Months Ended     Nine Months Ended  
(Unaudited)   June 30,     June 30,  
(Thousands, except customer & weather data)   2006     2005     2006     2005  
 
Degree Days
                                
Actual
     423       584       4,329       4,911  
Normal
     574       584       4,799       4,803  
     
Percent of Normal
     73.7 %     100.0 %     90.2 %     102.2 %
     
 
                                
NJR ENERGY SERVICES
                                
 
 
                                
Operating Revenues
   $ 365,373     $ 362,727     $ 1,716,093     $ 1,476,519  
Gas Purchases
     371,589       365,136       1,640,970       1,435,740  
     
Gross Margin
   $ (6,216 )   $ (2,409 )   $ 75,123     $ 40,779  
     
 
                                
Operating (Loss) Income
   $ (9,906 )   $ (4,926 )   $ 65,257     $ 33,817  
     
 
                                
Net (Loss) Income
   $ (6,397 )   $ (3,314 )   $ 35,499     $ 18,692  
     
 
                                
Gas Sold and Managed (Bcf)
     50.7       49.6       170.3       202.2  
     
 
                                
NJR HOME SERVICES AND OTHER
                                
 
 
                                
Operating Revenues
   $ 6,884     $ 6,816     $ 19,547     $ 29,072  
     
 
                                
Operating Income
   $ 1,142     $ 1,912     $ 1,650     $ 12,943  
     
 
                                
Net Income
   $ 724     $ 1,281     $ 1,101     $ 8,051  
     
 
                                
Total Customers at June 30
     146,655       144,463       146,655       144,463  
     

 

 

Page 12 of 12
NEW JERSEY RESOURCES
ADJUSTED NET INCOME AND EARNINGS PER SHARE RECONCILIATION
Provided below is a reconciliation of as reported and as adjusted information for Net Income and basic and diluted earnings per share for the nine months ended June 30, 2005. This reconciliation reflects the impact of a gain on the sale of a commercial office building and a charge related to an early retirement program for officers.
Management believes that this reconciliation is needed due to the unusual nature of the two items described above and that they are not indicative of core results. It also provides for a more consistent comparison for year-over-year results.
                                 
(Unaudited)   Nine Months Ended  
(Thousands, except per share data)   June 30, 2005  
 
    NJNG     NJRES     NJRHS and     Total  
                    Other          
 
 
                                
Net Income, as reported
   $ 56,959     $ 18,692     $ 8,051     $ 83,702  
 
                                
Exclude:
                                
Gain on sale of commercial office building
                     (5,972 )     (5,972 )
Charge for early retirement program
     915       8       569       1,492  
     
 
                                
Net Income, as adjusted
   $ 57,874     $ 18,700     $ 2,648     $ 79,222  
     
 
                                
 
 
                                
Earnings per share basic, as reported
                           $ 3.03  
 
                                
Exclude:
                                
Gain on sale of commercial office building
                             (.22 )
Charge for early retirement program
                             .05  
 
                              
 
                                
Earnings per share basic, as adjusted *
                           $ 2.87  
 
                              
 
                                
 
 
                                
Earnings per share diluted, as reported
                           $ 2.97  
 
                                
Exclude:
                                
Gain on sale of commercial office building
                             (.21 )
Charge for early retirement program
                             .05  
 
                              
 
                                
Earnings per share diluted, as adjusted
                           $ 2.81  
 
                              
 
 
* Amount does not foot due to rounding.
###