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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, 2010
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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.)
110 W. Taylor Street, San Jose, California 95110
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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)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under
any of the following provisions:
[ ] Written communications pursuant to Rule 425 under the
Securities Act (17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the
Exchange Act (17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b)
under the Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c)
under the Exchange Act (17 CFR 240.13e-4(c))
Item 2.02 Results of Operations and Financial Condition.
On October 27, 2010, SJW Corp. (the "Company") announced its financial
results for the quarter ended September 30, 2010. A copy of the press
release announcing these financial results is attached hereto as
Exhibit 99.1 and incorporated into this Form 8-K by reference.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
Exhibit
Number Description of Document
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99.1 Press Release issued by SJW Corp., dated October 27, 2010
announcing the 2010 Third Quarter Financial Results
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 27, 2010 /s/ James P. Lynch
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James P. Lynch, Chief Financial
Officer and Treasurer
Exhibit
Number Description of Document
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99.1 Press Release issued by SJW Corp., dated October 27, 2010
announcing the 2010 Third Quarter Financial Results
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Exhibit 99.1
SJW CORP. ANNOUNCES
THIRD QUARTER FINANCIAL RESULTS
Board Declares Quarterly Dividend on Common Stock
SAN JOSE, CA -- SJW Corp. (NYSE:SJW) today reported financial results
for the third quarter ended September 30, 2010. Operating revenue was $70.3
million in the quarter compared to $69.3 million in 2009. The $1.0 million
increase in revenue primarily reflects $0.9 million in cumulative rate
increases.
Net income for the quarter ended September 30, 2010 was $10.8 million
and basic and diluted earnings per common share were $0.58, compared to $8.0
million and $0.43 per share, respectively, in the third quarter of 2009. The
Company sold 223,112 shares of California Water Service stock during the
quarter ended September 30, 2010, which contributed $0.14 per share to the
results. No sales of California Water Service stock occurred during the same
period in 2009.
Water production costs for the quarter ended September 30, 2010 were
$27.4 million compared to $28.6 million in 2009, a decrease of $1.2 million.
The decline in water production cost is primarily attributable to $0.6 million
in savings due to greater surface water supply and $0.5 million in lower
customer water usage.
Operating expenses, excluding water production costs and income taxes,
for the third quarter were $25.0 million compared to $23.3 million in 2009.
The increase of $1.7 million was due to an increase of $1.4 million in
administrative and general expenses primarily as a result of increases in
retirement benefits, $0.7 million in depreciation expense as more capital
expenditures were made, and $0.3 million in other expenses. These increases
were partially offset by a $0.7 million decrease in maintenance expenses
primarily due to a decrease in contracting and paving costs as a result of a
decrease in the number of main leak repairs. Income tax expense for the
third quarter decreased to $5.5 million in 2010 from $5.7 million in 2009.
Year-to-date operating revenue decreased by $2.6 million to $164.9
million from $167.5 million in 2009. The decrease was attributable to $6.2
million in lower customer water usage and $0.5 million in lower revenue from
real estate operations, partially offset by $3.8 million in cumulative rate
increases and $0.3 million in revenue from new customers.
Year-to-date net income was $16.3 million, compared to $12.6 million in
2009. Earnings per basic and diluted share was $0.87 in the first nine months
of 2010, compared to $0.68 and $0.67 per basic and diluted share,
respectively, for the same period in 2009. The gain on sale of California
Water Services shares contributed $0.14 per share in the first nine months of
2010. No sales of California Water Service stock occurred during the same
period of 2009.
Year-to-date water production costs decreased to $58.5 million from $66.1
million in 2009. The $7.6 million decrease was primarily attributable to
lower customer demand of $4.7 million and savings due to greater surface water
supply of $3.6 million, offset by $0.7 million in a net higher unit cost for
energy and purchased water. Operating expenses, excluding water production
costs and income taxes, increased $2.2 million to $71.7 million from $69.5
million. The increase of $2.2 million was due to an increase of $2.1 million
in depreciation expense, reflecting greater capital expenditures, $1.1 million
in administrative and general expenses due primarily to an increase in
retirement benefits, and $0.5 million in other operating expenses. These
increases were partially offset by a $0.8 million decrease in taxes other than
income taxes and $0.7 million decrease in maintenance expenses. Income tax
expense increased to $9.3 million year-to-date from $8.8 million in 2009.
The Directors of SJW Corp. today declared a quarterly dividend on common
stock of $0.17 per share. The dividend is payable on December 1, 2010 to
shareholders of record on November 8, 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., TWA, 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
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. The results for a quarter are not indicative of
results for a full year due to seasonality and other factors. 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)
(in thousands, except per share data)
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
2010 2009 2010 2009
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OPERATING REVENUE $70,347 69,326 $164,886 167,541
OPERATING EXPENSE: -------- -------- -------- -------
Operation:
Purchased water 16,574 15,174 33,728 35,564
Power 2,122 2,666 4,850 5,243
Groundwater extraction charge 8,736 10,743 19,969 25,275
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Total production costs 27,432 28,583 58,547 66,082
Administrative and general 8,168 6,807 21,909 20,834
Other 4,792 4,697 13,784 13,221
Maintenance 2,895 3,550 8,960 9,682
Taxes, other than income 2,056 1,882 5,819 6,564
Depreciation & amortization 7,082 6,403 21,263 19,192
Income taxes 5,502 5,735 9,285 8,811
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Total operating expense 57,927 57,657 139,567 144,386
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OPERATING INCOME 12,420 11,669 25,319 23,155
Gain on sale of California Water
Service stock, net of taxes
of $1,831 2,635 - 2,635 -
Interest on long-term debt
and other (4,268) (3,652) (11,666) (10,604)
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NET INCOME $10,787 8,017 $ 16,288 12,551
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Other comprehensive (loss)
income, net (1,881) 1,363 (2,608) (4,861)
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COMPREHENSIVE INCOME $ 8,906 9,380 $ 13,680 7,690
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Earnings per share
-Basic $0.58 0.43 0.87 0.68
-Diluted $0.58 0.43 0.87 0.67
Dividend per share $0.17 0.16 0.51 0.49
Weighted average shares outstanding
-Basic 18,537 18,494 18,528 18,482
-Diluted 18,752 18,690 18,738 18,673
SJW Corp.
Condensed Consolidated Balance Sheets
(Unaudited)
(in thousands)
September December
30, 2010 31, 2009
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ASSETS
UTILITY PLANT:
Land $ 8,580 8,558
Depreciable plant and equipment 985,853 913,071
Construction in progress 20,243 11,119
Intangible assets 13,258 11,278
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Total utility plant 1,027,934 944,026
Less accumulated depreciation and amortization 315,815 298,921
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Net utility plant 712,119 645,105
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REAL ESTATE INVESTMENT: 91,286 88,000
Less accumulated depreciation and amortization 8,446 7,188
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Net real estate investment 82,840 80,812
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CURRENT ASSETS:
Cash and equivalents 3,335 1,416
Restricted cash 148 -
Accounts receivable and accrued
unbilled utility revenue 36,204 24,004
Prepaid expenses and other 2,957 2,590
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Total current assets 42,644 28,010
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OTHER ASSETS:
Investment in California Water Service Group 32,399 40,500
Debt issuance costs and broker fees, net
of accumulated amortization 4,112 3,098
Regulatory assets 78,274 78,525
Other 3,004 2,424
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117,789 124,547
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$ 955,392 878,474
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CAPITALIZATION AND LIABILITIES
CAPITALIZATION:
Common stock $ 9,657 9,635
Additional paid-in capital 23,099 22,046
Retained earnings 214,632 207,888
Accumulated other comprehensive income 10,579 13,187
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Total shareholders' equity 257,967 252,756
Long-term debt, less current portion 295,990 246,879
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Total capitalization 553,957 499,635
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CURRENT LIABILITIES:
Line of credit 3,500 5,800
Current portion of long-term debt 1,144 1,081
Accrued groundwater extraction charge and
purchased water 8,223 4,496
Purchased power 718 486
Accounts payable 21,273 6,562
Accrued interest 4,788 4,979
Income tax payable 3,437 728
Other current liabilities 10,080 7,826
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Total current liabilities 53,163 31,958
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DEFERRED INCOME TAXES AND CREDITS 100,841 102,381
ADVANCES FOR CONSTRUCTION AND CONTRIBUTIONS
IN AID OF CONSTRUCTION 190,900 190,506
POSTRETIREMENT BENEFIT PLANS 49,937 47,484
OTHER NONCURRENT LIABILITIES 6,594 6,510
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$ 955,392 878,474
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