SAN JOSE, CA, July 29, 2004 (BUSINESS WIRE) -- SJW Corp. basic earnings per common share for the quarter ended June 30 were $0.53, compared to $0.48 for the same quarter in 2003.
Operating revenue for the second quarter was $45,609,000 vs. $38,149,000 for the same period in 2003, representing an increase of $7,460,000 or 20%. Approximately $4,571,000 of the total revenue increase was attributable to higher customer demand, which increased revenue by 12% as a result of warmer temperatures in April and May, 2004 and $2,535,000 increase was due to cumulative rate increases totaling 7%. Approximately $354,000 of the total revenue increase was contributed from parking, rental properties and other revenues.
Water production costs for the second quarter of 2004 consisting of purchased water, power and pump taxes, increased $4,715,000, or 15% of total costs and expenses from the second quarter of 2003. The increase was due to the higher cost of purchased water and pump taxes of $1,263,000, reduced surface water availability of $411,000 and higher customer demand of $3,041,000.
Quarterly operating expenses for the second quarter of 2004, excluding water production costs and income taxes, increased $1,644,000 or 5% of total costs and expenses from 2003. The increases consisted principally of: $168,000 in pension costs primarily as a result of the enhancement of pension plan benefits, $882,000 in depreciation expense on added utility plant and other nonutility properties, $209,000 in legal and professional fees, $124,000 in insurance related costs, $202,000 in contracted work and $59,000 in other costs. Income tax expense for the second quarter of 2004 was higher than the same period of 2003 due to increased earnings.
Year-to-date earnings per common share were $0.72 compared to $1.06 for the same period in 2003. The decrease in year-to-date earnings was mainly due to the sale of a SJW Land Company property in the first quarter of 2003, which resulted in an after-tax gain of $3,030,000, or $0.33 per share. Excluding the gain on sale of property in 2003, year-to-date increases in revenue were offset by increases in production and operating expenses.
Other comprehensive loss of $481,000 and other comprehensive income of $97,000, for the three months and six months ended June 30, 2004, respectively, was the result of changes in the market value of the investment in California Water Service Group.
In January 2004, SJW Corp. adopted Interpretation No. 46(R), "Consolidation of Variable Interest Entities" issued by the Financial Accounting Standard Board. In accordance with the interpretation, SJW Corp. has consolidated its limited partnership interest in 444 West Santa Clara Street, L.P. SJW Corp. has restated its previously reported June 30, 2003, consolidated financial statements to include the result of the consolidated partnership.
At its meeting today, the SJW Corp. Board declared a quarterly dividend on common stock of $0.255 per share. The dividend is payable on Sept. 1, 2004, to shareholders of record on Aug. 9, 2004.
SJW Corp. is a publicly traded holding company headquartered in San Jose, CA. SJW Corp., through its subsidiary San Jose Water Company, provides water service to a population of approximately one million people in the City of San Jose and nearby communities.
