0000766829-11-000033.txt : 20110728 0000766829-11-000033.hdr.sgml : 20110728 20110727194959 ACCESSION NUMBER: 0000766829-11-000033 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20110630 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20110728 DATE AS OF CHANGE: 20110727 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: 0630 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-08966 FILM NUMBER: 11991349 BUSINESS ADDRESS: STREET 1: 110 W. TAYLOR STREET CITY: SAN JOSE STATE: CA ZIP: 95110 BUSINESS PHONE: 4082797800 MAIL ADDRESS: STREET 1: 110 W. TAYLOR STREET CITY: SAN JOSE STATE: CA ZIP: 95110 8-K 1 sjw8k2qtr2011form.txt FORM 8-K, 2ND QUARTER 2011 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 27, 2011 ------------------ 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.) 110 W. Taylor Street, San Jose, California 95110 ------------------------------------------------------------------ (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 27, 2011, SJW Corp. (the "Company") announced its financial results for the quarter ended June 30, 2011. 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. (d) Exhibits Exhibit Number Description of Document ------- ----------------------- 99.1 Press Release issued by SJW Corp., dated July 27, 2011 Announcing the 2011 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 27, 2011 /s/ James P. Lynch ----------------- ----------------------------- James P. Lynch, Chief Financial Officer and Treasurer Exhibit Number Description of Document ------- ----------------------- 99.1 Press Release issued by SJW Corp., dated July 27, 2011 Announcing the 2011 Second Quarter Financial Results. EX-99.1 2 exhibit99-1.txt PR 2ND QTR FINANCIAL RESULTS EXHIBIT 99.1 SJW CORP. ANNOUNCES SECOND QUARTER FINANCIAL RESULTS Board Declares Quarterly Dividend on Common Stock SAN JOSE, CA, July 27, 2011 - SJW Corp. (NYSE: SJW) today reported financial results for the second quarter ended June 30, 2011. Operating revenue was $59.0 million in the quarter compared to $54.1 million in 2010. The $4.9 million increase in revenue reflects cumulative rate increases of $2.1 million, $2.5 million in higher customer water usage and new customers compared to a year ago and $256,000 in higher revenue from real estate operations. Net income was $5.5 million and diluted earnings per common share were $0.29, compared to $4.5 million and $0.24 per share, respectively, in the second quarter of 2010. Water production costs for the quarter ended June 30, 2011 were $22.2 million compared to $21.7 million in 2010, an increase of $449,000. The increase in water production costs is primarily attributable to $739,000 in higher customer water usage and $235,000 in a higher unit cost for energy, offset by $525,000 due to an increase in use of available surface water supply. Operating expenses, excluding water production costs, for the second quarter were $23.0 million compared to $21.0 million in 2010. The increase of $2.0 million reflects an additional $1.0 million of administrative and general expenses, $722,000 of depreciation expense and $250,000 more in taxes other than income tax and maintenance expenses. Income tax expense for the second quarter increased to $3.8 million in 2011 from $3.1 million in 2010 as a result of higher pre-tax income. Year-to-date operating revenue increased by $8.2 million to $102.7 million from $94.5 million in the first six months of 2011. The increase was attributable to $4.5 million in cumulative rate increases, $2.8 million in higher customer water usage, $323,000 in revenue from new customers and $557,000 in higher revenue from real estate operations. Year-to-date net income was $6.1 million, compared to $5.5 million in 2010. Diluted earnings per share were $0.32 in the first six months of 2011, compared to $0.29 per diluted share for the same period in 2010. Year-to-date water production costs increased to $37.7 million from $36.2 million in 2010. The $1.5 million increase was primarily attributable to $758,000 in higher customer water usage, $515,000 in decreased surface water supply and $210,000 in higher unit cost for energy. Operating expenses, excluding water production costs, increased $4.0 million to $45.6 million from $41.6 million. The increase was due to an increase in administrative and general expenses of $1.7 million, $1.4 million of depreciation expense, $459,000 in maintenance expenses and $447,000 in taxes other than income taxes. Income tax expense increased by $467,000 year-to-date due to higher pre-tax income. The Directors of SJW Corp. today declared a quarterly dividend on common stock of $0.1725 per share. The dividend is payable on September 1, 2011 to shareholders of record on August 8, 2011. 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., Texas Water Alliance Limited, 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 real estate investments. 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 and other factors. 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) (in thousands, except per share data) THREE MONTHS ENDED SIX MONTHS ENDED JUNE 30 JUNE 30 2011 2010 2011 2010 ------------------------------------------- OPERATING REVENUE $ 59,007 54,128 102,703 94,539 OPERATING EXPENSE: Operation: Purchased water 12,681 11,335 20,097 17,154 Power 1,373 1,584 2,387 2,728 Groundwater extraction charge 5,300 6,238 9,808 11,233 Other production costs 2,820 2,568 5,412 5,106 -------- -------- ------- ------ Total production costs 22,174 21,725 37,704 36,221 Administrative and general 9,658 8,639 19,294 17,627 Maintenance 3,476 3,289 6,524 6,065 Taxes other than income 2,123 2,060 4,210 3,763 Depreciation and amortization 7,792 7,070 15,586 14,181 -------- -------- ------- ------ Total operating expense 45,223 42,783 83,318 77,857 -------- -------- ------- ------ OPERATING INCOME 13,784 11,345 19,385 16,682 Interest on long-term debt and other (4,516) (3,728) (9,074) (7,398) -------- -------- ------- ------ Income before income taxes $ 9,268 7,617 10,311 9,284 Provision for income taxes 3,817 3,101 4,250 3,783 -------- -------- ------- ------ NET INCOME $ 5,451 4,516 6,061 5,501 ======== ======== ======= ====== Other comprehensive income (loss), net 28 (1,240) 17 (727) -------- --------- ------- ------ COMPREHENSIVE INCOME $ 5,479 3,276 6,078 4,774 ======== ======== ======= ====== Earnings per share -Basic $ 0.29 0.24 0.33 0.29 -Diluted $ 0.29 0.24 0.32 0.29 Dividend per share $ 0.17 0.17 0.34 0.34 Weighted average shares outstanding -Basic 18,577 18,528 18,574 18,524 -Diluted 18,785 18,741 18,780 18,731 SJW Corp. Condensed Consolidated Balance Sheets (Unaudited) (in thousands) June 30 December 31 2011 2010 ASSETS --------------------------- UTILITY PLANT: Land $ 8,579 8,579 Depreciable plant and equipment 1,029,305 1,004,689 Construction in progress 17,912 10,103 Intangible assets 14,730 13,538 ---------- --------- Total utility plant 1,070,526 1,036,909 Less accumulated depreciation and amortization 336,866 322,102 ---------- --------- Net utility plant 733,660 714,807 ---------- --------- REAL ESTATE INVESTMENT: 89,055 88,943 Less accumulated depreciation and amortization 9,692 8,854 ---------- --------- Net real estate investment 79,363 80,089 ---------- --------- CURRENT ASSETS: Cash and equivalents 45,356 1,730 Accounts receivable and accrued unbilled utility revenue 36,105 33,835 Prepaid expenses and other 2,353 2,462 ---------- --------- Total current assets 83,814 38,027 ---------- --------- OTHER ASSETS: Investment in California Water Service Group 7,206 7,177 Debt issuance costs, net of accumulated amortization 4,893 4,308 Regulatory assets 87,721 87,721 Other 3,657 3,233 ---------- --------- 103,477 102,439 ---------- --------- $1,000,314 935,362 ========== ========= CAPITALIZATION AND LIABILITIES CAPITALIZATION: Common stock $ 9,676 9,662 Additional paid-in capital 23,941 23,443 Retained earnings 219,155 219,568 Accumulated other comprehensive income 2,376 2,359 ---------- --------- Total shareholders' equity 255,148 255,032 Long-term debt, less current portion 344,811 295,704 ---------- --------- Total capitalization 599,959 550,736 ---------- --------- CURRENT LIABILITIES: Line of credit 6,800 4,000 Current portion of long-term debt 1,119 1,133 Accrued groundwater extraction charge and purchased water 7,002 4,359 Purchased power 609 495 Accounts payable 9,765 5,487 Accrued interest 5,263 5,244 Other current liabilities 8,806 8,437 ---------- --------- Total current liabilities 39,364 29,155 ---------- --------- DEFERRED INCOME TAXES AND CREDITS 111,954 107,961 ADVANCES FOR CONSTRUCTION AND CONTRIBUTIONS IN AID OF CONSTRUCTION 189,862 190,155 POSTRETIREMENT BENEFIT PLANS 51,923 50,213 OTHER NONCURRENT LIABILITIES 7,252 7,142 ---------- --------- $1,000,314 935,362 ========== =========