EX-99.1 4 exhibit99-1.txt Exhibit 99.1 SJW CORP. ANNOUNCES SECOND QUARTER FINANCIAL RESULTS Board Declares Quarterly Dividend on Common Stock SAN JOSE, CA, July 23, 2008 - SJW Corp. (NYSE: SJW) today reported operating revenue for the second quarter ended June 30, 2008 of $60.1 million versus $55.1 million for the same period in 2007, representing an increase of $5.0 million. The increase in revenue was primarily attributable to cumulative rate increases and increased demand for water. Net income was $6.3 million for the quarter. Diluted earnings per common share were $0.34, compared to $0.29 per share for the second quarter in 2007. Water production cost for the second quarter of 2008 was $25.6 million versus $24.1 million for the same period in 2007, representing an increase of $1.5 million. Higher per-unit costs for purchased water and groundwater extraction charges contributed $1.6 million to the increase along with $488,000 due to higher demand. These expenses were partially offset by $589,000 which is attributable to lower spending on purchased water due to increased surface water supply compared to a year ago. Non-water production cost for the second quarter of 2008 was $20.6 million versus $19.1 million for the same period in 2007, representing an increase of $1.5 million. This was attributable to an increase of $441,000 in other operating expenses, $383,000 in administrative and general expenses, $312,000 in depreciation expense, $277,000 in maintenance expenses and $67,000 in other expenses. Income tax expense increased $474,000 in the second quarter to $4.3 million in 2008 from $3.8 million in 2007 as a result of higher pre-tax income. Year-to-date operating revenue increased by $7.2 million to $101.3 million from $94.1 million in the first six months of 2007. The increase was attributable to $5.9 million in cumulative rate increases, $646,000 in increased customer demand, $450,000 from new customers, and $122,000 from other sources. Year-to-date net income was $9.0 million, compared to $7.5 million in 2007. Diluted earnings per common share were $0.48 in the first six months of 2008, compared to $0.41 per share for the same period in 2007. Year-to-date water production costs increased to $39.1 million from $37.9 million in 2007. The increase was primarily attributable to $2.5 million in higher costs for groundwater extraction and purchased water, offset by $1.5 million due to increased surface water supply. Non-water production cost increased $2.3 million to $40.8 million from $38.5 million. Components of the increase included $762,000 in depreciation expense, $529,000 in maintenance expenses, $503,000 in other operating expenses, $432,000 in administrative and general expenses, and $75,000 in other expenses. Income tax expense increased $854,000 year-to-date due to higher income. The Directors of SJW Corp. today declared a quarterly dividend on common stock of $0.16125 per share. The dividend is payable on September 1, 2008 to shareholders of record on August 4, 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, SJWTX, Inc. 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. 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 SIX MONTHS ENDED JUNE 30, JUNE 30, 2008 2007 2008 2007 OPERATING REVENUE $60,058 55,135 101,311 94,152 OPERATING EXPENSE: Operation: Purchased water 14,176 13,287 21,172 22,613 Power 2,010 2,264 3,076 3,176 Groundwater extraction charge 9,417 8,555 14,833 12,121 Total production costs 25,603 24,106 39,081 37,910 Administrative and general 5,648 5,265 11,487 11,055 Other 4,069 3,628 7,752 7,249 Maintenance 3,272 2,995 6,316 5,787 Taxes, other than income 1,641 1,574 3,231 3,156 Depreciation & amortization 5,984 5,672 12,047 11,285 Income taxes 4,309 3,835 6,095 5,241 Total operating expense 50,526 47,075 86,009 81,683 OPERATING INCOME 9,532 8,060 15,302 12,469 Interest on long-term debt and other (3,254) (2,654) (6,306) (4,941) NET INCOME $6,278 5,406 8,996 7,528 Other comprehensive income (loss), net (3,491) ( 539) (2,758) (1,889) COMPREHENSIVE INCOME $2,787 4,867 6,238 5,639 Earnings per share -Basic $0.34 0.30 0.49 0.41 -Diluted $0.34 0.29 0.48 0.41 Dividend per share $0.16 0.15 0.32 0.30 Weighted average shares outstanding - Basic 18,403 18,325 18,390 18,313 - Diluted 18,596 18,539 18,594 18,528 SJW Corp. Condensed Consolidated Balance Sheets (Unaudited) (thousands of dollars) June 30 December 31 2008 2007 ASSETS UTILITY PLANT: Land $ 5,704 5,695 Depreciable plant and equipment 820,732 778,277 Construction in progress 11,208 24,298 Intangible assets 8,040 8,040 Total utility plant 845,684 816,310 Less accumulated depreciation and amortization 265,194 255,025 Net utility plant 580,490 561,285 NONUTILITY PROPERTY: 88,029 88,029 Less accumulated depreciation and amortization 4,672 3,834 Net nonutility property 83,357 84,195 CURRENT ASSETS: Cash and cash equivalents 1,836 2,354 Accounts receivable and accrued unbilled utility revenue 35,243 26,823 Prepaid expenses and other 2,021 2,414 Total current assets 39,100 31,591 OTHER ASSETS: Investment in California Water Service Group 36,045 40,720 Unamortized debt issuance and reacquisition costs 3,257 3,345 Regulatory assets 44,088 44,712 Other 1,609 1,478 84,999 90,255 $787,946 767,326 CAPITALIZATION AND LIABILITIES CAPITALIZATION: Common stock $ 9,592 9,564 Additional paid-in capital 19,738 18,723 Retained earnings 198,302 195,331 Accumulated other comprehensive income 10,558 13,316 Shareholders' equity 238,190 236,934 Long-term debt, less current portion 217,033 216,312 Total capitalization 455,223 453,246 CURRENT LIABILITIES: Line of credit 15,500 5,000 Current portion of long-term debt 643 622 Accrued groundwater extraction charge and purchased water 9,065 5,595 Purchased power 1,499 514 Accounts payable 6,194 9,268 Accrued interest 4,567 4,522 Accrued taxes 395 791 Other current liabilities 7,154 6,642 Total current liabilities 45,017 32,954 DEFERRED INCOME TAXES AND CREDITS 77,414 76,378 ADVANCES FOR CONSTRUCTION AND CONTRIBUTIONS IN AID OF CONSTRUCTION 179,081 175,167 POSTRETIREMENT BENEFIT PLANS 24,816 23,357 OTHER NONCURRENT LIABILITIES 6,395 6,224 $787,946 767,326