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Sjw Group (SJW) SEC Filing 10-Q Quarterly report for the period ending Sunday, September 30, 2018

Sjw Group

CIK: 766829 Ticker: SJW


EXHIBIT 99.1


SJW GROUP ANNOUNCES 2018 THIRD QUARTER FINANCIAL RESULTS

SAN JOSE, CA, October 24, 2018 – SJW Group (NYSE: SJW) today reported financial results for the third quarter ended
September 30, 2018. SJW Group net income was $15.8 million for the quarter ended September 30, 2018, compared to $19.5 million for the same period in 2017. Diluted earnings per share were $0.76 and $0.94 for the quarters ended September 30, 2018 and 2017, respectively. Diluted earnings per share includes $1.08 per share from recurring operations offset by $0.32 per share related to the company's activities around the proposed combination with Connecticut Water Service, Inc.

Operating revenue was $124.9 million for the quarter ended September 30, 2018 compared to $124.6 million in the same period in 2017. The $300,000 increase in revenue was primarily attributable to a $3.1 million increase in cumulative water rate changes, net of approximately $1.8 million rate decrease from our 2018 cost of capital proceeding and $3.2 million from the federal rate change related to the implementation of the Tax Cuts and Jobs Act (H.R.1) (the "Tax Act"), and $1.0 million increase in revenue from new customers. The increase was partially offset by a $3.1 million decrease in the net recognition of certain balancing and memorandum accounts, which includes $2.5 million in cost-recovery accounts that were recorded in revenue in 2017 which upon adoption of Topic 606, "Revenue from Contracts with Customers" on January 1, 2018 are now recorded as capitalized costs until recovery is approved by the California Public Utilities Commission, and a decrease in customer usage of $752,000.

Water production expenses for the third quarter of 2018 were $55.1 million compared to $53.3 million for the same period in 2017, an increase of $1.8 million. The increase in water production expenses was attributable to $4.9 million in higher per unit costs for purchased water, groundwater extraction and energy charges, partially offset by $2.4 million related to cost-recovery balancing and memorandum accounts and $1.0 million due to an increase in the use of available surface water supplies. Operating expenses, excluding water production costs, increased $11.8 million to $43.9 million from $32.1 million. The increase was primarily due to $8.4 million in merger expenses related to our proposed combination with Connecticut Water Service, Inc., $1.6 million of higher depreciation expenses due to assets placed in service in 2017, $935,000 in higher maintenance and property taxes and other non-income taxes, and $803,000 of higher administrative and general expenses, net of cost-recovery balancing and memorandum accounts.

The effective consolidated income tax rates were approximately 21% and 41% for the quarters ended September 30, 2018 and 2017, respectively. The effective tax rate decreased primarily due to the change in the statutory federal income tax rate from 35% to 21% as a result of the Tax Act.

Year-to-date net income was $29.9 million, compared to $41.9 million in 2017. Diluted earnings per share were $1.45 in the first nine months of 2018, compared to $2.03 per diluted share for the same period in 2017. Diluted earnings per share includes $2.03 per share from recurring operations offset by $0.58 per share related to the company's activities around the proposed combination with Connecticut Water Service, Inc. In addition, the company's diluted earnings per share for 2017 includes $0.15 per share from real estate transactions that did not re-occur in 2018.

Year-to-date operating revenue increased by $3.3 million to $299.0 million from $295.7 million in the first nine months of 2018. The increase was attributable to $14.9 million in cumulative rate increases, net of approximately $2.8 million rate decrease from our 2018 cost of capital proceeding and $3.2 million from the federal rate change related to the implementation of the Tax Act, $7.4 million in higher customer usage, and $1.8 million in revenue from new customers. These increases were partially offset by a $20.6 million decrease in the net recognition of certain balancing and memorandum accounts, which includes $6.7 million related to the implementation of the Tax Act, $6.5 million in lower revenue recorded in our Water Conservation Memorandum Account, $4.2 million related to cost-recovery accounts, an additional $1.4 million related to the outcome of our cost of capital proceeding, and $1.4 million related to a redistribution of certain customer accounts between residential and business customers for the year ended December 31, 2016 that was recorded in the 2017 first quarter.
 

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The following information was filed by Sjw Group (SJW) on Thursday, October 25, 2018 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-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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Inside Sjw Group's 10-Q Quarterly Report:

Financial Statements, Disclosures and Schedules

Inside this 10-Q Quarterly Report

Document And Entity Information Document
Condensed Consolidated Balance Sheets
Condensed Consolidated Balance Sheets (Parenthetical)
Condensed Consolidated Statements Of Cash Flows
Condensed Consolidated Statements Of Comprehensive Income
Balancing And Memorandum Account Recovery Procedures
Balancing And Memorandum Account Recovery Procedures (Details)
Balancing And Memorandum Account Recovery Procedures (Tables)
California Water Service Group Stock (Details)
California Water Service Group Stock California Water Service Group Stock
Defined Benefit Plan
Defined Benefit Plan (Details)
Defined Benefit Plan (Tables)
Equity Plans
Equity Plans (Details)
Equity Plans (Tables)
Fair Value Measurement
Fair Value Measurement (Details)
General
General (Policies)
General - Additional Information (Details)
General - Depreciation (Details)
General - Earnings Per Share (Details)
General - Schedule Of Major Streams Of Revenue (Details)
General Revenue (Tables)
Legal Proceedings
Long-Term Liabilities And Bank Borrowings
Real Estate Investments
Real Estate Investments (Details)
Real Estate Investments (Tables)
Regulatory Assets And Liabilities
Regulatory Assets And Liabilities (Details)
Regulatory Assets And Liabilities (Tables)
Regulatory Rate Filings
Regulatory Rate Filings (Details)
Segment And Non-Tariffed Business Reporting
Segment And Non-Tariffed Business Reporting (Details)
Segment And Non-Tariffed Business Reporting (Tables)
Sjw Group And Connecticut Water Service Merger Agreement (Details)
Sjw Group And Ctws Merger Agreement
Ticker: SJW
CIK: 766829
Form Type: 10-Q Quarterly Report
Accession Number: 0000766829-18-000131
Submitted to the SEC: Fri Oct 26 2018 12:50:53 PM EST
Accepted by the SEC: Fri Oct 26 2018
Period: Sunday, September 30, 2018
Industry: Water Supply

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