Wednesday February 24, 2010
SJW Corp. Announces 2009 Annual and Fourth Quarter Financial Results
Source: Business Wire
Net income was $15.2 million for the year ended December 31, 2009, compared to $21.5 million for the year ended December 31, 2008. Diluted earnings per common share for the year ended December 31, 2009 were $0.81, compared to $1.15 per share in 2008.
Water production costs for the year ended December 31, 2009 were $83.5 million versus $90.2 million in 2008, a decrease of $6.7 million. The decline in water production costs is primarily attributable to $7.3 million in lower customer water usage and $2.6 million in savings due to greater surface water supply, offset by $3.2 million in higher per unit costs paid for purchased water and groundwater extraction charges.
Operating expenses, excluding water production costs and income taxes, for the year ended December 31, 2009 were $92.9 million versus $84.0 million for 2008, an increase of $8.9 million. This increase was primarily attributable to increases in 2009 of $4.0 million in administrative and general expenses largely related to pension plan expenses, $1.8 million in taxes other than income tax expense, $1.6 million in depreciation and amortization and $1.5 million in other operating expenses. Income tax expense decreased $2.9 million for the year ended December 31, 2009 to $10.3 million from $13.2 million for the year ended December 31, 2008 as a result of lower pre-tax income. Total operating expense, including water production costs, for the year ended December 31, 2009 was $186.7 million, compared to total operating expense of $187.5 million in 2008.
Fourth Quarter Financial Results
Operating revenue for the fourth quarter ended December 31, 2009 was $48.6 million versus $49.5 million for the same period in 2008, a decrease of $900,000. The decrease was attributable to $2.0 million in lower customer water usage and $660,000 in lower revenue from real estate operations, partially offset by $1.6 million in cumulative rate increases and $79,000 in revenue from new customers.
Net income was $2.6 million for the fourth quarter ended December 31, 2009, compared to $4.2 million for the same period in 2008. Diluted earnings per common share were $0.14 for the quarter ended December 31, 2009, compared to $0.23 per share for the same period in 2008.
Water production costs for the fourth quarter of 2009 were $17.4 million versus $20.3 million for the same period in 2008, a decrease of $2.9 million. Lower customer water usage and savings due to greater surface water supply contributed to the decrease.
Operating expenses, excluding water production costs and income taxes, for the fourth quarter of 2009 were $23.4 million versus $21.5 million for the same period in 2008, an increase of $1.9 million. This was attributable to increases of $945,000 in administrative and general expenses due to pension plan expenses, $443,000 in depreciation and amortization, $345,000 in other operating expenses and $186,000 in taxes other than income tax expense. Income tax expense decreased $118,000 for the fourth quarter in 2009 to $1.5 million from $1.6 million for the same period in 2008 due to lower pre-tax income. Total operating expense for the quarter ended December 31, 2009, was $42.3 million compared to $43.4 million in the period ended December 31, 2008.
Other comprehensive loss of $6.2 million and $1.4 million, net of tax, for the full year and fourth quarter of 2009, 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 25, 2010. The webcast will be accessible until April 26, 2010.
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.
Contact:
SJW Corp.
Suzy Papazian, 408-279-7961
Corporate Secretary/Attorney
