Sjw Corp (SJW) SEC Filing 10-K Annual report for the fiscal year ending Wednesday, December 31, 2014

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Sjw Group
Ticker: SJW CIK: 766829

EXHIBIT 99.1

SJW CORP. ANNOUNCES 2014 ANNUAL AND

FOURTH QUARTER FINANCIAL RESULTS

SAN JOSE, CA, February 19, 2015 – SJW Corp. (NYSE: SJW) today reported operating revenue for the year ended December 31, 2014 of $319.7 million versus $276.9 million for the year ended December 31, 2013, an increase of $42.8 million. The increase was attributable to $46.5 million in true-up revenue recognized as a part of the 2012 California General Rate Case decision, $20.2 million in cumulative rate increases, $1.8 million in revenue from new customers, and $1 million due to the Texas general rate case refund in the prior year. These increases were offset by a decrease of $17.9 million in lower customer water usage and a $9.6 million decrease in certain balancing and memorandum accounts. The Company also earned $800,000 in higher revenue from real estate operations.

Water production expenses for the year ended December 31, 2014 were $122.8 million compared to $120.8 million in 2013, an increase of $2 million. The increase in water production expenses was attributable to $8.5 million in higher per unit costs for purchased water, groundwater extraction and energy charges and $4.9 million in higher expenses due to a decrease in the availability of surface water supply. These increases were partially offset by $11.4 million in lower customer water usage. Operating expenses, excluding water production expenses increased to $104.0 million from $102.6 million. The $1.4 million increase was due to $2.9 million of higher depreciation expense, $900,000 in higher maintenance expenses, and $800,000 in higher taxes other than income taxes, partially offset by $3.2 million in lower administrative and general expenses.

Other expense and income in 2014 included a pre-tax gain on the sale of 125,969 shares of California Water Service Group stock of $2 million and sales of real estate investment properties in Texas and California of approximately $300,000 each compared to a pre-tax gain on the sale of real estate investment property in Connecticut of approximately $1.1 million in 2013.

The effective consolidated income tax rates were 33% and 39% for the years ended December 31, 2014 and 2013, respectively. The change in the effective consolidated income tax rate was primarily due to a state income tax benefit of $5.1 million related to the adoption of new Department of Treasury and Internal Revenue Service Tangible Property Regulations and a credit of $880,000 related to State of California enterprise zone sales and use tax credits.

Net income was $51.8 million for the year ended December 31, 2014, compared to $22.4 million for the same period in 2013. Diluted earnings per share were $2.54 for the year ended December 31, 2014, compared to $1.12 per diluted share for the same period in 2013.

Fourth Quarter Financial Results

Operating revenue for the fourth quarter ended December 31, 2014 was $69.3 million versus $67.3 million for the same period in 2013, an increase of $2 million. The increase was attributable to $10.2 million in cumulative rate increases and $500,000 in revenue from new customers, offset by $7.2 million in lower customer water usage, and a net decrease in certain balancing and memorandum accounts and the Texas general rate case refund of $900,000. In addition, the Company earned $600,000 less from real estate operations.

Water production expenses for the fourth quarter of 2014 were $26.7 million compared to $29.7 million in 2013, a decrease of $3 million. The decrease in water production expenses was attributable to $5.2 million in lower customer water usage, offset by $1.9 million in higher per unit costs for purchased water, groundwater extraction and energy charges and $300,000 in higher expenses due to a decrease in the availability of surface water supply. Operating expenses, excluding water production expenses, increased $700,000 to $27.0 million from $26.3 million. The increase was due to $800,000 of higher depreciation expenses and $300,000 in higher taxes other than income taxes, partially offset by $400,000 of lower administrative and general expenses.

The following information was filed by Sjw Group (SJW) on Friday, February 20, 2015 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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