EX-99.1 CHARTER 4 exhibit99-1.txt SJW CORP. ANNOUNCES FIRST QUARTER FINANCIAL RESULTS Board Declares Quarterly Dividend on Common Stock SAN JOSE, CA, April 30, 2008 - SJW Corp. (NYSE: SJW) today reported operating revenue of $41.3 million in the quarter ended March 31, 2008, compared to $39.0 million in 2007. The increase of $2.2 million was primarily attributable to cumulative rate increases of $2.5 million, $185,000 from new connections and $146,000 from other sources, partially offset by a $618,000 decrease in operating revenue due to lower customer usage. Net income was $2.7 million in the first quarter. Diluted earnings per common share were $0.15, compared to net income of $2.1 million and $0.11 per share in the first quarter of 2007. Water production costs for the quarter ended March 31, 2008 were $13.5 million compared to $13.8 million in 2007. Compared to the first quarter of 2007, unit costs for purchased water, groundwater extraction and energy were higher, but were more than offset by purchasing less water because of increased surface water supply and lower customer demand. The decrease of $326,000 in water production costs quarter-to-quarter reflects $896,000 in higher per unit costs for purchased water, groundwater extraction and energy cost, offset by lower expenses of $922,000 due to increased surface water supply, and by $300,000 due to lower customer demand. Nonwater production costs for the first quarter were $20.2 million compared to $19.4 in 2007. The increase of $821,000 was primarily attributable to an increase of $450,000 in depreciation expense, $252,000 in maintenance expenses and $119,000 in all other expenses. Income tax expense for the first quarter increased to $1.8 million in 2008 from $1.4 in 2007. The Directors of SJW Corp. today declared a quarterly dividend on common stock of $0.16125 per share. The dividend is payable on June 1, 2008 to shareholders of record on May 12, 2008. 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 in 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. The results for a quarter are not indicative of results for a full year due to seasonality. 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 per share data) THREE MONTHS ENDED MARCH 31 2008 2007 ---------------------- OPERATING REVENUE $41,253 39,017 OPERATING EXPENSE: Operation: Purchased water 6,996 9,326 Power 1,066 912 Groundwater extraction charge 5,416 3,566 ------- ------- Total production costs 13,478 13,804 Administrative and general 5,839 5,790 Other 3,683 3,621 Maintenance 3,044 2,792 Taxes, other than income 1,590 1,582 Depreciation & amortization 6,063 5,613 Income taxes 1,786 1,406 ------- ------- Total operating expense 35,483 34,608 ------- ------- OPERATING INCOME 5,770 4,409 Interest on long-term debt and other (3,052) (2,287) ------- ------- NET INCOME $2,718 2,122 ======= ======= Other comprehensive income (loss), net 733 (1,350) ------- ------- COMPREHENSIVE INCOME $ 3,451 772 ======= ======= Earnings per share -Basic $0.15 0.12 -Diluted $0.15 0.11 Dividend per share $0.16 0.15 Weighted average shares outstanding - Basic 18,377 18,300 - Diluted 18,592 18,526 SJW Corp. Condensed Consolidated Balance Sheets (Unaudited) (thousands of dollars) March 31 December 31 2008 2007 ---------- ----------- ASSETS UTILITY PLANT: Land $ 5,704 5,695 Depreciable plant and equipment 793,524 778,277 Construction in progress 23,572 24,298 Intangible assets 8,040 8,040 ------- ------- Total utility plant 830,840 816,310 Less accumulated depreciation and amortization 259,489 255,025 ------- ------- Net utility plant 571,351 561,285 NONUTILITY PROPERTY: 88,029 88,029 Less accumulated depreciation and amortization 4,253 3,834 ------- ------- Net nonutility property 83,776 84,195 CURRENT ASSETS: Cash and cash equivalents 1,715 2,354 Accounts receivable and accrued unbilled utility revenue 23,726 26,823 Prepaid expenses and other 2,193 2,414 ------- ------- Total current assets 27,634 31,591 OTHER ASSETS: Investment in California Water Service Group 41,963 40,720 Unamortized debt issuance and reacquisition costs 3,302 3,345 Regulatory assets 44,712 44,712 Other 1,573 1,478 ------- ------- 91,550 90,255 ------- ------- $774,311 767,326 ======= ======= CAPITALIZATION AND LIABILITIES CAPITALIZATION: Common stock $ 9,574 9,564 Additional paid-in capital 19,336 18,723 Retained earnings 195,038 195,331 Accumulated other comprehensive income 14,050 13,316 ------- ------- Shareholders' equity 237,998 236,934 Long-term debt, less current portion 217,186 216,312 ------- ------- Total capitalization 455,184 453,246 CURRENT LIABILITIES: Line of credit 10,000 5,000 Current portion of long-term debt 675 622 Accrued groundwater extraction charge and purchased water 4,845 5,595 Purchased power 386 514 Accounts payable 6,697 9,268 Accrued interest 3,349 4,522 Accrued taxes 2,597 791 Other current liabilities 5,648 6,642 ------- ------- Total current liabilities 34,197 32,954 DEFERRED INCOME TAXES AND CREDITS 76,644 76,378 ADVANCES FOR CONSTRUCTION AND CONTRIBUTIONS IN AID OF CONSTRUCTION 177,790 175,167 POSTRETIREMENT BENEFIT PLANS 24,343 23,357 OTHER NONCURRENT LIABILITIES 6,153 6,224 ------- ------- $774,311 767,326 ======= =======