EX-99.1 2 exhibit99-1.txt Exhibit 99.1 SJW CORP. (NYSE:SJW) ANNOUNCES 2008 ANNUAL AND FOURTH QUARTER FINANCIAL RESULTS SAN JOSE, CA, February 25, 2009 - SJW Corp. (NYSE:SJW) today reported operating revenue for the year ended December 31, 2008 of $220.3 million versus $206.6 million for the year ended December 31, 2007, an increase of $13.7 million. The increase in revenue was primarily attributable to cumulative rate increases. Net income was $21.4 million for the year ended December 31, 2008, compared to $19.3 million for the year ended December 31, 2007. Diluted earnings per common share for the year ended December 31, 2008 were $1.15, compared to $1.04 per share in 2007. Water production costs for the year ended December 31, 2008 were $90.2 million versus $86.3 million in 2007, an increase of $3.9 million. Higher per-unit costs for purchased water and groundwater extraction charges contributed $6.0 million to the increase. These higher costs were significantly offset by $2.1 million in lower spending on purchased water due to increased surface water supply in 2008 compared to 2007. Non-water production costs for the year ended December 31, 2008 were $84.0 million versus $78.0 million for 2007, an increase of $6.0 million. This increase was attributable to increases in 2008 of $1.5 million in maintenance expenses, $1.5 million in other operating expenses, $1.4 million in administrative and general expenses, $1.2 million in depreciation and amortization and $486,000 in taxes other than income tax expense. Income tax expense increased $649,000 for the year ended December 31, 2008 to $13.2 million from $12.5 million for the year ended December 31, 2007 as a result of higher pre-tax income. Total operating expense for the year ended December 31, 2008 was $187.5 million, compared to total operating expense of $176.9 million in 2007. Fourth Quarter Financial Results -------------------------------- Operating revenue for the fourth quarter ended December 31, 2008 was $49.5 million versus $47.6 million for the same period in 2007, an increase of $1.9 million. The increase was attributable to $3.5 million in cumulative rate increases, partially offset by $1.6 million in lower customer usage. Net income was $4.2 million for the fourth quarter ended December 31, 2008, compared to $3.8 million for the same period in 2007. Diluted earnings per common share were $0.23 for the quarter ended December 31, 2008, compared to $0.20 per share for the same period in 2007. Water production costs for the fourth quarter of 2008 were $20.3 million versus $18.8 million for the same period in 2007, an increase of $1.5 million. Higher per-unit costs for purchased water and groundwater extraction charges contributed $1.4 million to the increase. Non-water production costs for the fourth quarter of 2008 were $21.5 million versus $20.1 million for the same period in 2007, an increase of $1.4 million. This was attributable to increases of $489,000 in additional maintenance expense, $361,000 of other operating expenses, $231,000 of taxes other than income tax expense and $304,000 of other combined expenses. Income tax expense decreased $543,000 for the fourth quarter in 2008 to $1.6 million from $2.1 million for the same period in 2007. Total operating expense for the quarter ended December 31, 2008, was $43.4 million compared to $41.1 million in the period ended December 31, 2007. Other comprehensive income of $6.1 million and $5.1 million, net of tax, for the full year and fourth quarter of 2008, respectively, was primarily due to changes in the market value of SJW Corp's investment in California Water Service Group. SJW Corp. management will discuss the annual and fourth quarter results in a webcast presentation available to interested parties from the Company's website, www.sjwater.com, at 10:00 A.M. Pacific Time on Thursday, February 26, 2009. The webcast will be accessible until May 5, 2009. 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 and nearby communities. 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 share and per share data) THREE MONTHS ENDED TWELVE MONTHS ENDED DECEMBER 31 DECEMBER 31 2008 2007 2008 2007 ------------------------------------------- OPERATING REVENUE $ 49,529 47,602 $220,347 206,601 OPERATING EXPENSE: Operation: Purchased water 10,729 9,223 48,291 48,596 Power 1,904 1,791 7,559 7,532 Groundwater extraction charge 7,690 7,798 34,368 30,141 --------------------------------------------- Total water production costs 20,323 18,812 90,218 86,269 Administrative and general 5,879 5,704 23,688 22,334 Other 4,295 3,934 16,390 14,907 Maintenance 3,511 3,022 13,123 11,628 Taxes other than income 1,799 1,568 6,793 6,307 Depreciation and amortization 6,008 5,879 24,043 22,854 Income taxes 1,587 2,130 13,198 12,549 -------------------------------------------- Total operating expense 43,402 41,049 187,453 176,848 -------------------------------------------- OPERATING INCOME 6,127 6,553 32,894 29,753 Sale of real estate investments, net of taxes of $567 in 2008 832 - 832 - Sale of utility property, net of taxes of $269 in 2008 392 - 392 - Interest on long-term debt and other (3,143) (2,769) (12,657) (10,430) -------------------------------------------- NET INCOME $ 4,208 3,784 $ 21,461 19,323 ============================================ Other comprehensive income (loss), net $ 5,147 (954) $ 6,107 (2,201) --------------------------------------------- COMPREHENSIVE INCOME $ 9,355 2,830 $ 27,568 17,122 ============================================= Earnings per share -Basic $ 0.23 0.21 $ 1.17 1.05 -Diluted 0.23 0.20 1.15 1.04 Dividends per share $ 0.16 0.15 $ 0.65 0.60 Weighted average shares outstanding -Basic 18,435,907 18,361,479 18,410,122 18,334,352 -Diluted 18,631,466 18,581,051 18,609,836 18,552,228 SJW CORP. CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (thousands of dollars) DECEMBER 31 DECEMBER 31 ASSETS 2008 2007 ------------------------- UTILITY PLANT: Land $ 8,134 $ 5,695 Depreciable plant and equipment 855,427 778,277 Construction in progress 7,142 24,298 Intangible assets 8,040 8,040 ---------------------- Total utility plant 878,743 816,310 Less accumulated depreciation and amortization 272,562 255,025 ---------------------- Net utility plant 606,181 561,285 REAL ESTATE INVESTMENT: 88,000 88,029 Less accumulated depreciation and amortization 5,511 3,834 ---------------------- Net real estate investment 82,489 84,195 CURRENT ASSETS: Cash and equivalents 3,406 2,354 Accounts receivable and accrued unbilled utility revenue 26,329 26,823 Prepaid expenses and other 2,226 2,414 ---------------------- Total current assets 31,961 31,591 OTHER ASSETS: Investment in California Water Service Group 51,071 40,720 Unamortized debt issuance and reacquisition costs 3,162 3,345 Regulatory assets 73,778 44,712 Other 2,235 1,478 ---------------------- 130,246 90,255 ---------------------- $850,877 $767,326 ====================== CAPITALIZATION AND LIABILITIES CAPITALIZATION: Common stock $ 9,611 $ 9,564 Additional paid-in capital 20,548 18,723 Retained earnings 204,744 195,331 Accumulated other comprehensive income 19,423 13,316 ---------------------- Total shareholders' equity 254,326 236,934 Long-term debt, less current portion 216,613 216,312 ---------------------- Total capitalization 470,939 453,246 CURRENT LIABILITIES: Line of credit 18,400 5,000 Current portion of long-term debt 705 622 Accrued groundwater extraction charge and purchased water 5,256 5,595 Purchased power 563 514 Accounts payable 5,758 9,268 Accrued interest 4,567 4,522 Other current liabilities 8,074 7,433 ---------------------- Total current liabilities 43,323 32,954 DEFERRED INCOME TAXES AND CREDITS 98,713 76,378 ADVANCES FOR CONSTRUCTION AND CONTRIBUTIONS IN AID OF CONSTRUCTION 188,869 175,167 POSTRETIREMENT BENEFIT PLANS 42,331 23,357 OTHER NONCURRENT LIABILITIES 6,702 6,224 ---------------------- $850,877 $767,326 ======================