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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) October 27, 2005
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SJW Corp.
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(Exact name of registrant as specified in its charter)
California 1-8966 77-0066628
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(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
374 W. Santa Clara Street, San Jose, California 95113
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(Address of principal executive offices) (Zip Code)
(408) 279-7800
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Registrant's telephone number, including area code
Not Applicable
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(Former name or former address, if changed since last report)
Item 2.02. Results of Operations and Financial Condition.
On October 27, 2005, SJW Corp. announced its financial results
for the third quarter ended September 30, 2005. A copy of the
press release announcing these financial results is attached as
Exhibit 99.1 hereto and incorporated into this Form 8-K by
reference.
Item 9.01 Financial Statements and Exhibits
(c) Exhibits
Exhibit
Number Description of Document
- -------- ------------------------
99.1 Press Release issued by SJW Corp., dated
October 27, 2005, announcing its
financial results for the third quarter ended
September 30, 2005.
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.
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October 28, 2005 /s/ ANGELA YIP
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Angela Yip,
Chief Financial Officer
and Treasurer
EXHIBIT INDEX
Exhibit
Number Description of Document
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99.1 Press Release issued by SJW Corp., dated
October 27, 2005, announcing its
financial results for the third quarter ended
September 30, 2005.
Exhibit 99.1
SAN JOSE, CA, October 27, 2005 - SJW Corp. (AMEX:SJW) diluted earnings
per common share for the quarter ended September 30, 2005 were $1.00, compared
to $0.60 for the same quarter in 2004. The increase in net income is
inclusive of the net of tax gain on sale of nonutility property of $1,095,000,
or $0.12 per share, in September 2005.
Operating revenue for the third quarter was $58,469,000 versus
$52,297,000 for the same period in 2004, representing an increase of
$6,172,000 or 12%. Revenues increased $6,328,000 due to cumulative rate
increases and $292,000 due to new customers, which was partially offset by a
decrease of $319,000 attributable to lower customer usage and a decrease in
other revenues of $129,000.
Water production costs for the third quarter of 2005 consisting of
purchased water, power and pump taxes, decreased $101,000 from the third
quarter of 2004. The decrease in production costs was primarily attributable
to $333,000 decrease in usage and $594,000 as a result of greater availability
of surface water. However, the decrease was partially offset by increases in
the cost of purchased water and pump tax from Santa Clara Valley Water
District of $742,000 and other costs of $84,000.
Quarterly operating expenses for the third quarter of 2005, excluding
water production costs and income taxes, increased $1,955,000 from 2004. The
increase consisted principally of $849,000 in general and administrative
costs, which includes a $356,000 increase in employee benefits' costs,
$265,000 in professional services and $228,000 in salaries and other expenses.
In addition, other operating expenses increased $593,000, taxes other than
income increased $124,000 and depreciation expense increased $353,000 as a
result of growth in utility plant. Income tax expense for the third quarter
of 2005 was higher than the same period in 2004 due to increased pre-tax
earnings. The increase in other comprehensive income of $2,375,000 was a
result of the change in the market value of the investment in California Water
Service Group.
Year-to-date diluted earnings per common share were $1.91 compared to
$1.32 for the same period in 2004. The increase in year-to-date earnings was
primarily due to cumulative rate increases that were partially offset by the
impact of lower customer demand. Year-to-date decrease in water production
costs of $3,412,000 was primarily attributable to a decrease in usage and a
greater availability of surface water and was partially offset by increases in
the cost of purchased water and pump tax. Other non-water production costs
increased $3,808,000 and the increase is largely attributable to an increase
in general and administrative costs of $1,643,000 and an increase in
depreciation expense of $1,139,000. The increase in year-to-date income taxes
is due to increased pre-tax earnings. The year-to-date increase in other
comprehensive income of $2,304,000 was a result of the change in the market
value of the investment in California Water Service Group.
At its meeting today, the Board of Directors of SJW Corp. declared a
quarterly dividend on common stock of $0.2675 per share. The dividend is
payable on December 1, 2005 to shareholders of record on November 7, 2005.
SJW Corp. is a publicly traded holding company headquartered in San Jose,
California. SJW Corp., through its subsidiary San Jose Water Company,
provides water service to a population of approximately one million people in
San Jose and nearby communities.
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. 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)
(thousands of dollars, except share data)
Three Months Nine Months Twelve Months
Ended Sept. 30 Ended Sept. 30 Ended Sept. 30
2005 2004 2005 2004 2005 2004
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Operating revenue $58,469 52,297 $136,575 128,969 $174,516 163,787
Operating expense:
Operation:
Purchased water 15,512 14,396 34,431 32,572 43,080 40,989
Power 1,872 2,108 3,392 4,519 4,383 5,555
Pump taxes 7,285 8,266 13,145 17,289 17,629 21,452
Administrative
and general 5,311 4,462 14,899 13,256 18,928 17,293
Other 3,701 3,108 10,308 9,644 13,556 12,826
Maintenance 2,252 2,216 6,633 6,503 8,803 8,482
Taxes, other than
income taxes 1,476 1,352 4,238 4,006 5,547 5,267
Depreciation and
amortization 5,042 4,689 14,928 13,789 19,619 17,618
Income taxes 5,755 3,960 11,622 8,556 14,710 10,584
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Total operating
expense 48,206 44,557 113,596 110,134 146,255 140,066
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Operating income 10,263 7,740 22,979 18,835 28,261 23,721
Sale of nonutility
property, net of
taxes of $761 1,095 - 1,095 - 4,870 -
Long-term debt interest
and other, net (2,131) (2,210) (6,451) (6,724) (7,833) (8,608)
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Net income $ 9,227 5,530 $ 17,623 12,111 $ 25,298 15,113
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Other comprehensive
income, net 2,375 1,181 2,304 1,278 7,950 1,911
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Comprehensive income $11,602 6,711 $ 19,927 13,389 $ 33,248 17,024
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Earnings per share
- Basic $ 1.01 0.61 $ 1.93 1.33 $ 2.77 1.65
- Diluted 1.00 0.60 1.91 1.32 2.74 1.64
Comprehensive income
per share
- Basic $ 1.27 0.74 $ 2.18 1.47 $ 3.64 1.86
- Diluted 1.25 0.73 2.16 1.46 3.60 1.85
Dividends per share $ 0.26 0.25 $ 0.79 0.76 $ 1.05 1.01
Weighted average shares
outstanding
- Basic 9,135,441 9,137,433 9,135,710 9,136,986 9,135,640 9,136,599
- Diluted 9,250,491 9,198,718 9,234,724 9,193,627 9,228,242 9,188,266
SJW Corp.
Condensed Consolidated Balance Sheets
(Unaudited)
(thousands of dollars)
September 30 December 31
2005 2004
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ASSETS
Utility Plant $652,244 $619,590
Less: accumulated depreciation and amortization 204,484 189,221
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Net utility plant 447,760 430,369
Nonutility property, net 29,936 31,987
Current assets:
Cash and equivalents 11,152 10,899
Accounts receivable and accrued utility revenue 31,957 15,260
Long-lived assets held-for-sale 282 -
Prepaid expenses and other 3,023 2,211
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Total current assets 46,414 28,370
Other assets:
Investment in California Water Service Group 45,318 41,413
Debt issuance costs 3,174 3,300
Goodwill 1,744 1,744
Regulatory assets 7,227 8,064
Intangible pension asset 4,357 4,357
Other 2,223 2,548
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64,043 61,426
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$588,153 $552,152
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CAPITALIZATION AND LIABILITIES
Capitalization:
Common stock $ 9,521 $ 9,516
Additional paid-in capital 15,094 14,306
Retained earnings 158,816 148,525
Accumulated other comprehensive income 14,648 12,344
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Shareholders' equity 198,079 184,691
Long-term debt 145,557 143,604
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Total capitalization 343,636 328,295
Current Liabilities:
Current portion of long-term debt 72 275
Pump tax and purchased water 7,017 3,856
Purchased power 1,472 848
Accounts payable 6,018 870
Accrued interest 2,203 3,619
Accrued taxes 4,658 890
Accrued payroll 1,323 1,066
Work order deposit 472 773
Other current liabilities 3,535 3,154
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Total current liabilities 26,770 15,351
Deferred income taxes and credits 52,679 51,422
Advances and contributions 151,078 143,906
Other noncurrent liabilities 13,990 13,178
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$588,153 $552,152
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