-----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, FJEaU4yltEXWooTDDguKxgRNL/o+lfXOPi00QGVZ8X5OY63u/rdJUwpXcx85I8TT PJTwvvrrjvL0skii9x6vRQ== 0000091928-03-000014.txt : 20031028 0000091928-03-000014.hdr.sgml : 20031028 20031028162634 ACCESSION NUMBER: 0000091928-03-000014 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20030930 ITEM INFORMATION: ITEM INFORMATION: Regulation FD Disclosure FILED AS OF DATE: 20031028 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SOUTH JERSEY INDUSTRIES INC CENTRAL INDEX KEY: 0000091928 STANDARD INDUSTRIAL CLASSIFICATION: NATURAL GAS DISTRIBUTION [4924] IRS NUMBER: 221901645 STATE OF INCORPORATION: NJ FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-06364 FILM NUMBER: 03961210 BUSINESS ADDRESS: STREET 1: 1 SOUTH JERSEY PLAZA STREET 2: ROUTE 54 CITY: FOLSOM STATE: NJ ZIP: 08037 BUSINESS PHONE: 609-561-9000 MAIL ADDRESS: STREET 1: 1 SOUTH JERSEY PLAZA STREET 2: ROUTE 54 CITY: FOLSOM STATE: NJ ZIP: 08037 FORMER COMPANY: FORMER CONFORMED NAME: SOUTH JERSEY GAS CO DATE OF NAME CHANGE: 19700507 FORMER COMPANY: FORMER CONFORMED NAME: ATLANTIC CITY GAS CO DATE OF NAME CHANGE: 19680301 8-K 1 sji3q8k.txt SOUTH JERSEY INDUSTRIES FORM 8-K 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 October 28, 2003 Commission File Number 1-6364 SOUTH JERSEY INDUSTRIES, INC. (Exact name of registrant as specified in its charter) New Jersey 22-1901645 (State of incorporation) (IRS employer identification no.) 1 South Jersey Plaza, Folsom, New Jersey 08037 (Address of principal executive offices, including zip code) (609) 561-9000 (Registrant's telephone number, including area code) - ------------------------------------------------------------------------ Item 12. Results of Operations and Financial Conditions Recent Earnings South Jersey Industries' (SJI) unaudited consolidated revenues, loss from continuing operations before accounting changes and discontinued operations and net income for the third quarter of 2003 were $90.1 million, $1.6 million and $2.0 million, respectively. These results compared with the following respective unaudited amounts for the quarter ended September 30, 2002: $69.1 million, $3.2 million and $3.2 million. Strong performance at SJI's wholesale energy marketing business, the commencement of full operations at our thermal energy plant in Atlantic City, NJ, customer growth at SJI's utility and retail gas marketing businesses, and lower interest rates, were the primary contributors to performance improvement. Page 1 Item 9. Regulation FD Disclosure The following information is furnished pursuant to Item 9, "Regulation FD Disclosure" and Item 12, "Disclosure of Results of Operations and Financial Condition." On October 28, 2003, South Jersey Industries (SJI) issued a press release setting forth SJI's third quarter 2003 earnings. A copy of the press release is attached hereto as Exhibit 99 and hereby incorporated by reference. Exhibit Index (99) Press release, dated: October 28, 2003, issued by South Jersey Industries. - ------------------------------------------------------------------------------- Signature Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be singed on its behalf by the undersigned thereunto duly authorized. SOUTH JERSEY INDUSTRIES By: /s/ David A. Kindlick ---------------------------------------- David A. Kindlick Vice President, Treasurer & Chief Financial Officer Date: October 28, 2003 EX-99 3 sji3qpresrel.txt SOUTH JERSEY INDUSTRIES PRESS RELEASE DATED OCTOBER 28, 2003 FOR IMMEDIATE RELEASE TELEPHONE: (609) 561-9000 MEDIA CONTACT: JOANNE BRIGANDI x4240 INVESTOR CONTACT: STEPHEN CLARK x4260 OCTOBER 28, 2003 SJI Posts Strong Third Quarter Performance Improvement Delivers Nine Month Record Earnings Folsom, NJ-South Jersey Industries (NYSE:SJI) delivered a $0.14 per share improvement in earnings from continuing operations for the third quarter. Commenting on SJI's third quarter results, Charles Biscieglia, Chairman and CEO of SJI, said, "Consistent execution of our strategy has enabled SJI to deliver strong earnings performance for not only the third quarter and first nine months of 2003, but the last five years as well. The results of the first nine months of 2003 keep SJI on track to deliver the earnings per share growth for the year of at least the 7% to 10 % that we outlined previously," continued Biscieglia. SJI's earnings from continuing operations for the first nine months of 2003 were a record $23.2 million or $1.87 per share compared with $17.2 million, or $1.44 per share for 2002. Although SJI typically produces a loss in the third quarter when natural gas usage is minimal, the company was able to minimize its third quarter loss from continuing operations to $1.6 million, or $0.13 per share. This compares favorably with a loss of $3.2 million, or $0.27 per share, for the same period in 2002. Third Quarter 2003 Highlights: Non-Utility Operations Net Income Increases o Net income contribution for the quarter from our non-utility business increased to $2.2 million due to strong performance in our wholesale energy marketing and on-site energy production businesses. These results were partially offset by lower than targeted comparative net income posted by our retail gas marketing business. o South Jersey Resources Group, SJI's wholesale energy marketing business, increased its contribution to SJI's net income to $1.2 million for the third quarter of 2003, a $1 million increase over the prior year period. The profit increase resulted from effectively managing storage and pipeline capacity rights while serving the growing needs of our wholesale customer base. o Marina Energy, SJI's on-site energy production business, contributed almost $700,000 to earnings for the quarter, due in large part to the July commencement of full operations at our thermal energy plant serving the Borgata Hotel Casino & Spa in Atlantic City, N.J. Since start-up, operation of the plant has exceeded our expectations for the facility. -MORE- Page 1 SJI Third Quarter 2003 Earnings Report-ADD 1 o South Jersey Energy, SJI's non-regulated energy supplier, had 90,300 residential, commercial and industrial customers at the end of the third quarter of 2003 compared with 66,400 at the end of the same period in 2002, a 36% increase. SJE added almost 1,900 customers during the third quarter of 2003. Net income performance for the quarter at our retail gas marketing business was approximately $190,000 lower than the same period last year. However, the large customer increase experienced over the last year should significantly benefit fourth quarter 2003 results. Utility Operations Continued Strong Customer Growth Fuels Utility o At South Jersey Gas Company, our regulated utility, a larger customer base, lower interest expenses and a 10% performance improvement from our appliance service business offset the effects of increased administrative expenses that include health and pension costs. Because natural gas usage for heating is typically minimal in the third quarter, expenses associated with serving customers exceed revenues earned from those customers. The utility net loss for the quarter of $3.8 million mirrored third quarter 2002 results. o Fueled by new construction and conversions from other energy sources, SJG's customer total climbed to 299,600 at September 30, 2003, an increase of 7,900 over the same period last year. The 2.7% customer growth is well above the industry average of 1.5%. We continue to project that customer growth will be close to 3% for the full year based upon the strength of development in our service territory. Customer growth contributes significantly to annual profitability. o SJG took advantage of historically low interest rates by issuing $110 million of long-term debt during the quarter at an average weighted interest rate of 4.97% and with an average life of 17 years. Proceeds of the debt were used to repay short-term borrowings outstanding under existing lines of credit. Those short-term line borrowings were incurred to temporarily finance the expansion of SJG's gas distribution system and to redeem high rate debt. During the quarter we called $32 million of 6.95% First Mortgage Bonds, the refinancing of which will provide an earnings benefit for the remainder of 2003, 2004 and beyond. Webcast and Conference Call Details South Jersey Industries President and COO, Edward J. Graham, will host an open conference call and webcast to discuss the company's third quarter 2003 earnings on Tuesday, October 28, 2003 at 11:00 a.m. EST. To participate in the conference call, dial 1-800-360-9865 approximately 10 minutes ahead of the scheduled time. To listen to the live webcast, simply visit the South Jersey Industries website at http://www.sjindustries.com and click the webcast icon. A recorded version of the webcast will be available at SJI's website following the call. A rebroadcast of the conference call will also be available by calling 1-800-428-6051 and entering the code: 309287. SJI encourages shareholders, media and members of the financial community to attend the conference call and/or listen to the webcast. South Jersey Industries (NYSE: SJI) is an energy services holding company for South Jersey Gas, South Jersey Energy, South Jersey Resources Group and Marina Energy. Visit http://www.sjindustries.com for more information about SJI and its subsidiaries. ### Page 2 - ------------------------------------------------------------------------------- SJI Third Quarter Earnings Report-ADD 2 - ------------------------------------------------------------------------------- This release contains forward-looking statements about SJI's financial performance. The statements are made in good faith and deemed reasonable at the date of this release. SJI assumes no responsibility to update this information. Actual results may vary and SJI encourages you to conduct your own research before making any investment decisions including a review of SJI's second quarter 2003 SEC Form 10Q for a discussion of risks and/or uncertainties that may cause actual results to vary. - ------------------------------------------------------------------------------- Page 3 SOURCE: DAVID A. KINDLICK 609-561-9000 STEPHEN H. CLARK COMPANY NAME: SOUTH JERSEY INDUSTRIES, INC. MARKET: N STOCK SYMBOL: SJI SOUTH JERSEY INDUSTRIES, INC. AND SUBSIDIARIES COMPARATIVE EARNINGS STATEMENTS (In Thousands Except for Per Share Data) UNAUDITED Three Months Ended September 30, 2003 2002 Operating Revenues: Utility $ 53,267 $ 48,939 Nonutility 36,868 20,127 Total Operating Revenues 90,135 69,066 Operating Expenses: Cost of Gas Sold - Utility 34,910 31,584 Cost of Sales - Nonutility 30,332 18,202 Operation and Maintenance 20,764 18,191 Energy and Other Taxes 1,414 1,446 Operating Income (Loss) 2,715 (357) Other Income and Expense: Equity in Affiliated Companies 170 287 Other 6 (54) Total Other Income and Expense 176 233 Interest Charges * 5,836 5,161 Income Taxes (1,327) (2,063) Loss from Continuing Operations (1,618) (3,222) Discontinued Operations - Net (426) (18) Cumulative Effect of a Change in Accounting Principle - Net 0 0 Net Loss Applicable to Common Stock $ (2,044) $ (3,240) Basic Earnings Per Common Share (Based on Average Basic Common Shares Outstanding): Continuing Operations $ (0.13) $ (0.27) Discontinued Operations - Net (0.03) 0.00 Cumulative Effect of a Change in Accounting Principle - Net 0.00 0.00 Basic Earnings Per Common Share $ (0.16) $ (0.27) Average Common Shares Outstanding - Basic 12,604 12,084 Diluted Earnings Per Common Share (Based on Average Diluted Common Shares Outstanding): Continuing Operations $ (0.13) $ (0.27) Discontinued Operations - Net (0.03) 0.00 Cumulative Effect of a Change in Accounting Principle - Net 0.00 0.00 Diluted Earnings Per Common Share $ (0.16) $ (0.27) Average Common Shares Outstanding - Diluted 12,604 12,084 Nine Months Ended September 30, 2003 2002 Operating Revenues: Utility $ 337,571 $ 253,897 Nonutility 138,605 76,400 Total Operating Revenues 476,176 330,297 Operating Expenses: Cost of Gas Sold - Utility 231,943 157,902 Cost of Sales - Nonutility 121,231 66,896 Operation and Maintenance 60,137 54,033 Energy and Other Taxes 8,734 7,408 Operating Income 54,131 44,058 Other Income and Expense: Equity in Affiliated Companies 549 653 Other (45) 556 Total Other Income and Expense 504 1,209 Interest Charges * 15,115 15,729 Income Taxes 16,345 12,321 Income from Continuing Operations 23,175 17,217 Discontinued Operations - Net (728) (168) Cumulative Effect of a Change in Accounting Principle - Net (426) 0 Net Income Applicable to Common Stock 22,021 17,049 Basic Earnings Per Common Share (Based on Average Basic Common Shares Outstanding): Continuing Operations $ 1.87 $ 1.44 Discontinued Operations - Net (0.06) (0.02) Cumulative Effect of a Change in Accounting Principle - Net (0.04) 0.00 Basic Earnings Per Common Share $ 1.77 $ 1.42 Average Common Shares Outstanding - Basic 12,412 11,996 Diluted Earnings Per Common Share (Based on Average Diluted Common Shares Outstanding): Continuing Operations $ 1.85 $ 1.43 Discontinued Operations - Net (0.06) (0.02) Cumulative Effect of a Change in Accounting Principle - Net (0.03) 0.00 Diluted Earnings Per Common Share $ 1.76 $ 1.41 Average Common Shares Outstanding - Diluted 12,508 12,068 Twelve Months Ended September 30, 2003 2002 Operating Revenues: Utility $ 469,794 $ 361,759 Nonutility 181,211 98,406 Total Operating Revenues 651,005 460,165 Operating Expenses: Cost of Gas Sold - Utility 317,381 223,996 Cost of Sales - Nonutility 159,577 86,881 Operation and Maintenance 82,767 74,090 Energy and Other Taxes 12,132 10,184 Operating Income 79,148 65,014 Other Income and Expense: Equity in Affiliated Companies 837 461 Other (67) 621 Total Other Income and Expense 770 1,082 Interest Charges * 20,119 21,418 Income Taxes 24,429 18,394 Income from Continuing Operations 35,370 26,284 Discontinued Operations - Net (984) (303) Cumulative Effect of a Change in Accounting Principle - Net (426) 0 Net Income Applicable to Common Stock $ 33,960 $ 25,981 Basic Earnings Per Common Share (Based on Average Basic Common Shares Outstanding): Continuing Operations $ 2.86 $ 2.20 Discontinued Operations - Net (0.08) (0.03) Cumulative Effect of a Change in Accounting Principle - Net (0.03) 0.00 Basic Earnings Per Common Share $ 2.75 $ 2.17 Average Common Shares Outstanding - Basic 12,350 11,957 Diluted Earnings Per Common Share (Based on Average Diluted Common Shares Outstanding): Continuing Operations $ 2.84 $ 2.19 Discontinued Operations - Net (0.08) (0.03) Cumulative Effect of a Change in Accounting Principle - Net (0.03) 0.00 Diluted Earnings Per Common Share $ 2.73 $ 2.16 Average Common Shares Outstanding - Diluted 12,446 12,025 * Net of rate recovery of carrying costs on certain unrecovered fuel and environmental remediation expenses. -----END PRIVACY-ENHANCED MESSAGE-----