SJW Corp. Announces First Quarter Financial Results

SJW Corp. (NYSE:SJW) today reported financial results for the first quarter ended March 31, 2015. Operating revenue was $62.1 million in the quarter compared to $54.6 million in 2014. The $7.5 million increase in revenue was primarily attributable to $9 million in cumulative rate increases, $1.8 million in true-up revenue recognized as a part of the 2012 California General Rate Case decision, and $400,000 in revenue from new customers. These increases were partially offset by a decrease of $3.8 million in lower customer water usage.

Water production expenses for the first quarter of 2015 were $21.4 million versus $23.5 million for the same period in 2014, a decrease of $2.1 million. The decrease in water production expenses was attributable to $2.1 million in lower expenses due to an increase in the availability of surface water supply and $1.5 million in lower customer water usage. These decreases were partially offset by $1.5 million in higher per unit costs for purchased water, groundwater extraction and energy charges. Operating expenses, excluding water production expenses, increased $2.9 million to $27.9 million from $25 million. The increase was due to $1.8 million in higher administrative and general expenses, $674,000 of higher depreciation expense, $291,000 in higher taxes other than income taxes, and an increase of $94,000 in maintenance expenses.

Other expense and income in 2015 included interest on our Series L Senior Note which was funded in August 2014.

The effective consolidated income tax rates were 37% and 38% for the quarters ended March 31, 2015 and 2014, respectively.

Net income was $4.7 million for the quarter ended March 31, 2015, compared to $906,000 for the same period in 2014. Diluted earnings per share were $0.23 for the quarter ended March 31, 2015, compared to $0.04 per diluted share for the same period in 2014.

The Directors of SJW Corp. today declared a quarterly dividend on common stock of $0.195 per share. The dividend is payable on June 1, 2015 to shareholders of record on May 11, 2015.

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.