-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, U1JNXFakpYIuZMKZa5MeMmFYXzfDVAd5Z8HtcM+ZEb+1if9B6jiQF5fpyxAQQ45D e8VKIL+WvRdUQm0NKR2GmA== 0000766829-07-000016.txt : 20070727 0000766829-07-000016.hdr.sgml : 20070727 20070726211319 ACCESSION NUMBER: 0000766829-07-000016 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20070630 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20070727 DATE AS OF CHANGE: 20070726 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SJW CORP CENTRAL INDEX KEY: 0000766829 STANDARD INDUSTRIAL CLASSIFICATION: WATER SUPPLY [4941] IRS NUMBER: 770066628 STATE OF INCORPORATION: CA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-08966 FILM NUMBER: 071004558 BUSINESS ADDRESS: STREET 1: 374 WEST SANTA CLARA STREET CITY: SAN JOSE STATE: CA ZIP: 95113 BUSINESS PHONE: 4082797800 MAIL ADDRESS: STREET 1: 374 WEST SANTA CLARA STREET CITY: SAN JOSE STATE: CA ZIP: 95113 8-K 1 sjw-8k2q2007form.txt FORM 8-K, JULY 26, 2007 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934 Date of Report (Date of earliest event reported) July 26, 2007 ---------------- SJW Corp. - ---------------------------------------------------------------- (Exact name of registrant as specified in its charter) California 1-8966 77-0066628 - ---------------------------------------------------------------- (State or other jurisdiction (Commission (IRS Employer of incorporation) File Number) Identification No.) 374 W. Santa Clara Street, San Jose, California 95113 - ---------------------------------------------------------------- (Address of principal executive offices) (Zip Code) (408) 279-7800 - ---------------------------------------------------------------- Registrant's telephone number, including area code Not Applicable - ---------------------------------------------------------------- (Former name or former address, if changed since last report) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: [ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Item 2.02 Results of Operations and Financial Condition. On July 26, 2007, SJW Corp. (the "Company") announced its financial results for the quarter ended June 30, 2007. A copy of the press release announcing these financial results is attached hereto as Exhibit 99.1 and incorporated into this Form 8-K by reference. Item 9.01 Financial Statements and Exhibits. (c) Exhibits Exhibit Number Description of Document - -------- ------------------------ 99.1 Press Release issued by SJW Corp., dated July 26, 2007, announcing the Second Quarter Financial Results. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. SJW Corp. ----------------------------- July 26, 2007 /s/ Angela Yip - --------------------- ----------------------------- Angela Yip, Chief Financial Officer and Treasurer Exhibit Number Description of Document - -------- ------------------------ 99.1 Press Release issued by SJW Corp., dated July 26, 2007, announcing the Second Quarter Financial Results. EX-99.1 2 exhibit99-1.txt EXHIBIT 99.1, PRESS RELEASE Exhibit 99.1 SJW CORP. (NYSE: SJW) ANNOUNCES SECOND QUARTER FINANCIAL RESULTS Board Declares Quarterly Dividend on Common Stock SAN JOSE, CA, July 26, 2007 - SJW Corp. (NYSE: SJW) today reported net income of $5,406,000 for the quarter ended June 30, 2007, or diluted earnings per common share of $0.29, compared to $6,471,000 or $0.35 per share for the same quarter in 2006. Operating revenue for the second quarter was $55,135,000 versus $47,873,000 for the same period in 2006, representing an increase of $7,262,000. Approximately $3,505,000 of the total revenue increase was attributable to increased customer demand, $2,282,000 was from cumulative rate increases, $1,086,000 was from new connections, and $389,000 was from other sources. Total water production costs for the second quarter of 2007, consisting of purchased water, energy and groundwater extraction charges increased $7,065,000. Of this increase in production costs, $3,164,000 was attributable to decreases in our surface water supply necessitating additional purchased water, $3,129,000 was due to higher customer demand and $772,000 was due to higher per unit costs for groundwater extraction, purchased water and energy. Overall, water production cost as a percentage of revenue increased from 36% in the second quarter of 2006 to 44% in the second quarter of 2007. The increase in the water production cost was the primary factor that produced operating income that compares unfavorably with a year ago. "In California we are in a period of below average rainfall and reduced supply of our lowest-cost water, which is surface water," said W. Richard Roth, President and Chief Executive Officer of SJW Corp. "The result is that in the second quarter compared to a year ago, we delivered more purchased water and groundwater, with their inherently higher costs. We believe our water resources in California, however, are adequate to address our customers' needs for the foreseeable future." He added, "We see the impact on our results from fluctuating water conditions in California as validation of our moves to diversify revenues, and we are pleased with the performance of our real estate portfolio businesses." Total quarterly maintenance expenses increased $672,000 in the second quarter of 2007 from 2006 due to $388,000 which is attributable to higher leak repairs and $165,000 in increased labor costs. Nonwater production cost increases include a depreciation expense increase of $386,000, administrative and general expense increase of $318,000, and taxes other than income and other increase of $108,000. Income tax expense decreased $710,000 in the second quarter of 2007 versus the second quarter of 2006. Year-to-date diluted earnings per common share were $0.41 compared to $0.58 for the same period in 2006. The decrease in year-to-date earnings was primarily due to the increase in water production costs which is attributable to the lack of surface water supply and the sale of nonutility property in the first quarter of 2006 which contributed approximately $0.08 per share to earnings. Year-to-date operating revenue increased $12,537,000 due to increased customer demand of $4,958,000, cumulative rate increases of $4,566,000, new customers of $2,451,000 and $562,000 from other sources. Year-to-date water production costs increased by $11,518,000 and were primarily attributable to $5,349,000 decreases in our surface water supply, $5,050,000 was due to higher customer demand and $1,119,000 was spent on higher costs for groundwater extraction, purchased water and energy. Nonwater production costs increased $3,166,000 and were primarily attributable to $1,159,000 in maintenance expenses, $1,017,000 in administrative and general costs, $809,000 in depreciation expense and $181,000 in taxes other than income and other expenses. Income tax expense decreased $1,198,000 for year-to-date. Other comprehensive loss of $539,000 and $1,889,000, net of tax, for the second quarter of 2007 and year-to-date, was due to a decrease in the market value of the investment in California Water Service Group. The Directors of SJW Corp. today declared a quarterly dividend on common stock of $0.15125 per share. The dividend is payable on September 1, 2007 to shareholders of record on August 6, 2007. SJW Corp. is a publicly traded holding company headquartered in San Jose, California. SJW Corp. is the parent company of San Jose Water Company, Canyon Lake Water Service Company and SJW Land Company. Together, San Jose Water Company and Canyon Lake Water Service Company provide regulated and nonregulated water service to more than one million people in San Jose, California and nearby communities and Canyon Lake, Texas. SJW Land Company owns and operates commercial buildings, has a majority interest in a real estate partnership, and has properties in the states of California, Florida, Connecticut, Texas, Arizona and Tennessee. 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. 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) (thousands of dollars, except share and per share data) THREE MONTHS ENDED SIX MONTHS ENDED JUNE 30 JUNE 30 2007 2006 2007 2006 ----------------------------------------- OPERATING REVENUE $55,135 47,873 94,152 81,615 OPERATING EXPENSE: Operation: Purchased water 13,287 11,512 22,613 18,166 Power 2,264 1,162 3,176 1,722 Groundwater extraction charge 8,555 4,367 12,121 6,504 ----------------------------------------- Total production costs 24,106 17,041 37,910 26,392 Administrative and general 5,265 4,947 11,055 10,038 Other 3,628 3,715 7,249 7,375 Maintenance 2,995 2,323 5,787 4,628 Taxes, other than income 1,574 1,379 3,156 2,849 Depreciation & amortization 5,672 5,286 11,285 10,476 Income taxes 3,835 4,545 5,241 6,439 --------------------------------------- Total operating expense 47,075 39,236 81,683 68,197 --------------------------------------- OPERATING INCOME 8,060 8,637 12,469 13,418 Gain on sale of nonutility property, net of taxes of $1,056 - - - 1,535 Interest on long-term debt and other (2,654) (2,166) (4,941) (4,279) --------------------------------------- NET INCOME $5,406 6,471 7,528 10,674 ======================================= Other comprehensive income (loss), net (539) (6,042) (1,889) (1,616) --------------------------------------- COMPREHENSIVE INCOME $4,867 429 5,639 9,058 ======================================= Earnings per share -Basic $0.30 0.35 0.41 0.58 -Diluted $0.29 0.35 0.41 0.58 Dividend per share $0.15 0.14 0.30 0.28 Weighted average shares outstanding - Basic 18,324,819 18,271,608 18,312,604 18,271,439 - Diluted 18,539,267 18,530,671 18,528,363 18,530,384 SJW Corp. Condensed Consolidated Balance Sheets (Unaudited) (thousands of dollars, except share and per share data) June 30 December 31 2007 2006 ------------------------- ASSETS UTILITY PLANT: Land $ 5,668 4,837 Depreciable plant and equipment 743,335 716,679 Construction in progress 15,864 10,863 Intangible assets 8,040 8,040 -------------------------- Total utility plant 772,907 740,419 Less accumulated depreciation and amortization 245,930 234,173 -------------------------- Net utility plant 526,977 506,246 NONUTILITY PROPERTY: 88,010 43,868 Less accumulated depreciation and amortization 2,921 3,303 Net nonutility property 85,089 40,565 -------------------------- CURRENT ASSETS: Cash and cash equivalents 5,693 3,788 Accounts receivable and accrued unbilled utility revenue 30,407 21,956 Sale proceeds held in trust account - 31,261 Prepaid expenses and other 1,975 2,470 -------------------------- Total current assets 38,075 59,475 OTHER ASSETS: Investment in California Water Service Group 41,237 44,438 Unamortized debt issuance and reacquisition costs 3,310 3,220 Regulatory assets 49,882 50,483 Other 1,353 1,437 -------------------------- 95,782 99,578 -------------------------- $745,923 705,864 ========================== CAPITALIZATION AND LIABILITIES CAPITALIZATION: Common stock $ 9,549 9,522 Additional paid-in capital 17,780 16,267 Retained earnings 189,192 186,876 Accumulated other comprehensive income 13,629 15,517 -------------------------- Shareholders' equity 230,150 228,182 Long-term debt, less current portion 196,690 163,648 -------------------------- Total capitalization 426,840 391,830 CURRENT LIABILITIES: Line of credit 3,500 15,500 Current portion of long-term debt 613 485 Accrued groundwater extraction charge and purchased water 11,265 4,244 Purchased power 1,002 301 Accounts payable 5,082 7,267 Accrued interest 4,372 3,871 Accrued taxes 3,312 - Other current liabilities 5,400 5,578 -------------------------- Total current liabilities 34,546 37,246 DEFERRED INCOME TAXES AND CREDITS 80,372 83,347 ADVANCES FOR CONSTRUCTION AND CONTRIBUTIONS IN AID OF CONSTRUCTION 170,537 163,180 POSTRETIREMENT BENEFIT PLANS 28,045 26,298 OTHER NONCURRENT LIABILITIES 5,583 3,963 -------------------------- $745,923 705,864 ========================== -----END PRIVACY-ENHANCED MESSAGE-----