Sunday
January 28, 2007
SJW Corp. Announces Dividend Increase and Fourth Quarter Financial Results
Source: Business Wire
Operating revenue for the fourth quarter was $44,504,000 versus $43,531,000 for the same period in 2005, representing an increase of $973,000 or 2%. Revenues increased $620,000 due to cumulative water rate increases, $321,000 due to customer growth, and $136,000 from other non-water sources and was partially offset by $104,000 due to decreased customer usage.
Water production costs for the fourth quarter of 2006, consisting of purchased water, power and groundwater extraction charges, were $15,906,000 versus $15,665,000 for the same period in 2005, an increase of $241,000 or 2%. The increase in water production costs was primarily attributable to $671,000 due to higher purchased water and related groundwater extraction charges, which was partially offset by $279,000 attributable to a greater availability of surface water, $134,000 due to decreased customer usage and $17,000 from other costs.
Quarterly operating expenses for the fourth quarter of 2006, excluding water production costs and income taxes, increased $447,000 from the fourth quarter of 2005. The increase consisted principally of $589,000 in depreciation expense and $82,000 in maintenance and other nonincome taxes, which was partially offset $224,000 in other operating, general and administrative costs. Income tax expense for the fourth quarter of 2006 decreased by $411,000 from the fourth quarter of 2005, which was largely attributable to decreased pre-tax operating earnings.
Other comprehensive income for the fourth quarter of 2006 was $10,016,000 and was primarily due to an increase in the market value of the investment in California Water Service Group of approximately $3,817,000 and the recognition of $6,187,000 transferred from accumulated other comprehensive loss to regulatory assets due to the implementation of the Financial Accounting Standards Board Statement No. 158 (Statement 158), Employer's Accounting for Defined Benefit Pension and Other Postretirement Plans. The tax impact of the two items was approximately $4,091,000. In contrast, other comprehensive income decreased $7,121,000 for the fourth quarter ended December 31, 2005 primarily due to the decrease in market value of the investment in California Water Service Group and increased post-retirement obligations.
For the twelve months ended December 31, 2006, diluted earnings per common share were $2.08 compared to $1.18 for the year ended December 31, 2005. Operating revenue for 2006 was $189,238,000 versus $180,105,000 for 2005, representing an increase of $9,133,000 or 5%. Revenues increased $3,120,000 due to new customers, $2,609,000 due to cumulative water rate increases, $2,556,000 due to higher customer usage and other non-water revenues of $848,000.
The 2006 water production costs increased $2,170,000, which was primarily attributable to a $2,448,000 increase in purchased water and groundwater extraction charges, $1,661,000 increase in usage, $270,000 in other operating costs, which was partially offset by a greater availability of surface water of $2,209,000. Other non-water production costs increased $3,902,000 in 2006 and were largely attributable to $1,645,000 increase in depreciation expense, $912,000 in other operating costs, $714,000 in maintenance costs, $411,000 in general and administrative costs and $220,000 in other nonincome taxes. The increase in 2006 income taxes was due to increased pre-tax operating earnings.
The increase in comprehensive earnings in 2006 was primarily due to an increase in the market value of the investment in California Water Service Group of approximately $2,387,000 and the recognition of $6,187,000 transferred from accumulated other comprehensive loss to regulatory assets due to the implementation of Statement 158. The tax impact of the two items was approximately $3,505,000. In contrast other comprehensive income decreased $3,216,000 in 2005 primarily due to the decrease in the market value of the investment in California Water Service Group and increased post-retirement benefit obligations.
At its meeting on January 25, 2007, the Board of Directors of SJW Corp. approved a $0.04 per share increase in the annual dividend to $0.605 per share. A quarterly dividend of $0.15125 per share is payable on March 1, 2007 to shareholders of record on February 5, 2007.
SJW Corp. is a publicly traded holding company headquartered in San Jose, California. SJW Corp. is the parent company of San Jose Water Company, Canyon Lake Water Service Company, SJW Land Company and Crystal Choice Water Service, LLC. Together these companies provide regulated and nonregulated water service to more than one million people in San Jose, California and nearby communities and Canyon Lake, Texas. SJW Land Company owns and operates commercial buildings, undeveloped land, has a majority interest in a real estate partnership, and has properties in the states of California, Florida, Connecticut, Texas and Arizona.
Contact:
SJW Corp.
Richard Balocco, V.P. Corporate Communication,
408-279-7933
