SAN JOSE, Calif.--(BUSINESS WIRE)--SJW Corp. (NYSE:SJW) today reported financial results for the first quarter ended March 31, 2014. Operating revenue was $54.6 million in the quarter compared to $50.1 million in 2013. The $4.5 million increase in revenue was attributable to $3.3 million in higher customer water usage, $2.7 million in cumulative rate increases and $300,000 in revenue from new customers. These increases were offset by a decrease in the net recognition of certain balancing and memorandum accounts of $2.3 million. In addition, the Company earned $486,000 in higher revenue from real estate operations.
Water production expenses for the first quarter of 2014 were $23.5 million versus $18.3 million for the same period in 2013, an increase of $5.2 million. The increase in water production expenses was attributable to $2.7 million in higher expenses due to a decrease in the availability of surface water supply, $1.6 million in higher per unit costs for purchased water, groundwater extraction and energy charges and $900,000 in higher customer water usage. Operating expenses, excluding water production expenses, decreased $1 million to $25 million from $26 million. The decrease was due to $2 million in lower administrative and general expenses, partially offset by $669,000 of higher depreciation expense, $255,000 in higher taxes other than income taxes, and an increase of $74,000 in maintenance expenses.
Other, net in 2013 included a pre-tax gain on the sale of a real estate investment property in Connecticut of approximately $1.1 million. No similar sale occurred in 2014.
The effective consolidated income tax rates were 38% and 41% for the quarters ended March 31, 2014 and 2013, respectively.
Net income was $906,000 for the quarter ended March 31, 2014, compared to $1.3 million for the same period in 2013. Diluted earnings per share were $0.04 for the quarter ended March 31, 2014, compared to $0.07 per diluted share for the same period in 2013.
The Directors of SJW Corp. today declared a quarterly dividend on common stock of $0.1875 per share. The dividend is payable on June 2, 2014 to shareholders of record on May 12, 2014.
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 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. Results for a quarter are not indicative of results for a full year due to seasonality and other factors. Other 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.
|Condensed Consolidated Statements of Comprehensive Income|
|(in thousands, except shares and per share data)|
|Three months ended March 31,|
|Groundwater extraction charges||9,448||4,590|
|Other production expenses||2,862||2,713|
|Total production expenses||23,529||18,307|
|Administrative and general||9,450||11,494|
|Property taxes and other non-income taxes||2,804||2,549|
|Depreciation and amortization||9,485||8,816|
|Total operating expense||48,542||44,366|
|Income before income taxes||1,467||2,247|
|Provision for income taxes||561||930|
|Other comprehensive income, net||198||354|
|EARNINGS PER SHARE|
|DIVIDENDS PER SHARE||$||0.19||0.18|
|WEIGHTED AVERAGE SHARES OUTSTANDING|
|Condensed Consolidated Balance Sheets|
|Depreciable plant and equipment||1,275,335||1,254,586|
|Construction in progress||35,335||30,846|
|Total utility plant||1,340,662||1,314,191|
|Less accumulated depreciation and amortization||424,786||415,453|
|Net utility plant||915,876||898,738|
|Real estate investments||73,783||78,477|
|Less accumulated depreciation and amortization||10,410||10,658|
|Net real estate investments||63,373||67,819|
|Cash and cash equivalents||3,118||2,299|
|Accounts receivable and accrued unbilled utility revenue||30,464||34,189|
|Long-lived assets held-for-sale||4,028||—|
|Prepaid expenses and other||3,142||3,164|
|Total current assets||40,752||39,652|
|Investment in California Water Service Group||9,220||8,885|
|Debt issuance costs and other, net of accumulated amortization||5,056||5,176|
|Regulatory assets, net||83,220||83,543|
|CAPITALIZATION AND LIABILITIES|
|Additional paid-in capital||63,887||63,017|
|Accumulated other comprehensive income||3,585||3,387|
|Total shareholders' equity||319,346||321,175|
|Long-term debt, less current portion||334,876||334,997|
|Line of credit||37,000||22,400|
|Current portion of long-term debt||537||554|
|Accrued groundwater extraction charge, purchased water and purchased power||7,135||7,781|
|Other current liabilities||11,009||10,504|
|Total current liabilities||71,926||59,195|
|DEFERRED INCOME TAXES AND CREDITS||142,180||142,111|
ADVANCES FOR CONSTRUCTION AND CONTRIBUTIONS IN AID OF CONSTRUCTION
|POSTRETIREMENT BENEFIT PLANS||45,003||43,496|
|OTHER NONCURRENT LIABILITIES||6,654||6,709|