SJW Group Announces First Quarter 2024 Financial Results
-
Delivers
$0.36 of diluted earnings per share (EPS), a slight year-over-year decrease of$0.01 -
Invests
$69 million in infrastructure -
Secures 10.01% Water Cost of Capital Mechanism (WCCM)-adjusted return on equity in
California as ofJanuary 1, 2024 -
Reaffirms 2024 guidance range of
$2.68 to$2.78 diluted EPS -
Declares
$0.40 cash dividend per share of common stock
“We are pleased with our financial results for the quarter, which demonstrate the strength of our local water operations and the continued successful execution of our proven business strategy,” stated SJW Group Chair, CEO, and President,
First Quarter Operating Results
Net income for the quarter ended
Operating revenue for first quarter was
Operating expenses for the quarter ended
-
An increase in water production expenses of
$4.8 million compared to the same quarter last year; -
An increase in depreciation and amortization of
$2.1 million primarily due to utility plant additions; and -
An increase in administrative and general expenses of
$1.4 million .
The effective consolidated income tax rates for the first quarter of
Capital Expenditures
In the first quarter of 2024,
Rate Activity and Regulatory Updates
The CPUC approved
On
On
- Treating PFAS in drinking water;
- Reducing greenhouse gas emissions through solar generation, energy storage systems, continued electrification of our vehicle fleet, and expansion of our advanced leak detection program; and
- Advancing the CPUC’s Environmental and Social Justice Action Plan by improving access to high-quality water service, climate resiliency, and economic and workforce development.
A decision on the GRC is expected in fourth quarter of 2024 and new rates are anticipated to be effective on
On
On
On
On
On
On
Corporate Responsibility Recognition
CWC was recently recognized by
2024 Guidance Reaffirmed
The company’s 2024 full-year guidance is reaffirmed and includes:
-
Net income per diluted common share of
$2.68 to$2.78 ; and, -
Regulated infrastructure investments of approximately
$332 million
In addition, we reiterate our non-linear long-term diluted EPS growth of 5% to 7%, anchored off 2022's diluted EPS of
When considering the company's 2024 guidance relative to actual results in 2023 of
Our guidance is subject to risks and uncertainties, including, without limitation, those factors outlined in the “Forward Looking Statements” of this release and the “Risk Factors” section of the company’s annual and quarterly reports filed with the
Dividend
The directors of
Financial Results Call Information
Interested parties may access the webcast and related presentation materials at the website www.sjwgroup.com. An archive of the webcast will be available until
About
Forward-Looking Statements
This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Some of these forward-looking statements can be identified by the use of forward-looking words such as “believes,” “expects,” “estimates,” “anticipates,” “intends,” “seeks,” “plans,” “projects,” “may,” “should,” “will,” or the negative of those words or other comparable terminology. These forward-looking statements are only predictions and are subject to risks, uncertainties, and assumptions that are difficult to predict.
These forward-looking statements involve a number of risks, uncertainties and assumptions including, but not limited to, the following factors: (1) the effect of water, utility, environmental and other governmental policies and regulations, including regulatory actions concerning rates, authorized return on equity, authorized capital structures, capital expenditures, PFAS and other decisions; (2) changes in demand for water and other services; (3) unanticipated weather conditions and changes in seasonality including those affecting water supply and customer usage; (4) the effect of the impact of climate change; (5) unexpected costs, charges or expenses; (6) our ability to successfully evaluate investments in new business and growth initiatives; (7) contamination of our water supplies and damage or failure of our water equipment and infrastructure; (8) the risk of work stoppages, strikes and other labor-related actions; (9) catastrophic events such as fires, earthquakes, explosions, floods, ice storms, tornadoes, hurricanes, terrorist acts, physical attacks, cyber-attacks, epidemic, or similar occurrences; (10) changes in general economic, political, business and financial market conditions; (11) the ability to obtain financing on favorable terms, which can be affected by various factors, including credit ratings, changes in interest rates, compliance with regulatory requirements, compliance with the terms and conditions of our outstanding indebtedness, and general market and economic conditions; and (12) legislative, and general market and economic developments. The risks, uncertainties and other factors may cause the actual results, performance or achievements of
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 Group’s most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K filed with the
|
||||||
Condensed Consolidated Statements of Comprehensive Income |
||||||
(Unaudited) |
||||||
(in thousands, except share and per share data) |
||||||
|
Three months ended |
|||||
|
2024 |
|
2023 |
|||
Operating revenue |
$ |
149,382 |
|
|
137,296 |
|
Operating expense: |
|
|
|
|||
Production Expenses: |
|
|
|
|||
Purchased water |
|
26,192 |
|
|
22,418 |
|
Power |
|
2,427 |
|
|
2,199 |
|
Groundwater extraction charges |
|
12,126 |
|
|
10,359 |
|
Other production expenses |
|
11,049 |
|
|
12,043 |
|
Total production expenses |
|
51,794 |
|
|
47,019 |
|
Administrative and general |
|
25,788 |
|
|
24,344 |
|
Maintenance |
|
6,687 |
|
|
6,058 |
|
Property taxes and other non-income taxes |
|
8,830 |
|
|
8,401 |
|
Depreciation and amortization |
|
28,370 |
|
|
26,296 |
|
Total operating expense |
|
121,469 |
|
|
112,118 |
|
Operating income |
|
27,913 |
|
|
25,178 |
|
Other (expense) income: |
|
|
|
|||
Interest on long-term debt and other interest expense |
|
(17,584 |
) |
|
(15,772 |
) |
Pension non-service credit (cost) |
|
950 |
|
|
(64 |
) |
Other, net |
|
2,651 |
|
|
3,266 |
|
Income before income taxes |
|
13,930 |
|
|
12,608 |
|
Provision for income taxes |
|
2,231 |
|
|
1,078 |
|
Net income |
|
11,699 |
|
|
11,530 |
|
Other comprehensive (loss) income, net |
|
(442 |
) |
|
93 |
|
Comprehensive income |
$ |
11,257 |
|
|
11,623 |
|
|
|
|
|
|||
Earnings per share |
|
|
|
|||
Basic |
$ |
0.36 |
|
|
0.37 |
|
Diluted |
$ |
0.36 |
|
|
0.37 |
|
Dividends per share |
$ |
0.40 |
|
|
0.38 |
|
Weighted average shares outstanding |
|
|
|
|||
Basic |
|
32,077 |
|
|
30,936 |
|
Diluted |
|
32,145 |
|
|
31,041 |
|
|
||||||
Condensed Consolidated Balance Sheets |
||||||
(Unaudited) |
||||||
(in thousands, except share and per share data) |
||||||
|
|
|
|
|||
Assets |
|
|
|
|||
Utility plant: |
|
|
|
|||
Land |
$ |
41,415 |
|
41,415 |
||
Depreciable plant and equipment |
|
4,005,195 |
|
|
3,967,911 |
|
Construction work in progress |
|
133,369 |
|
|
106,980 |
|
Intangible assets |
|
35,946 |
|
|
35,946 |
|
Total utility plant |
|
4,215,925 |
|
|
4,152,252 |
|
Less accumulated depreciation and amortization |
|
1,007,078 |
|
|
981,598 |
|
Net utility plant |
|
3,208,847 |
|
|
3,170,654 |
|
|
|
|
|
|||
Nonutility properties and real estate investments |
|
13,377 |
|
|
13,350 |
|
Less accumulated depreciation and amortization |
|
195 |
|
|
194 |
|
Net nonutility properties and real estate investments |
|
13,182 |
|
|
13,156 |
|
|
|
|
|
|||
Current assets: |
|
|
|
|||
Cash and cash equivalents |
|
4,542 |
|
|
9,723 |
|
Accounts receivable: |
|
|
|
|||
Customers, net of allowances for uncollectible accounts of |
|
62,649 |
|
|
67,870 |
|
Income tax |
|
2,911 |
|
|
5,187 |
|
Other |
|
2,199 |
|
|
3,684 |
|
Accrued unbilled utility revenue |
|
44,345 |
|
|
49,543 |
|
Assets held for sale |
|
40,850 |
|
|
40,850 |
|
Prepaid expenses |
|
12,822 |
|
|
11,110 |
|
Current regulatory assets |
|
1,850 |
|
|
4,276 |
|
Other current assets |
|
5,914 |
|
|
6,146 |
|
Total current assets |
|
178,082 |
|
|
198,389 |
|
Other assets: |
|
|
|
|||
Regulatory assets, less current portion |
|
238,842 |
|
|
235,910 |
|
Investments |
|
17,435 |
|
|
16,411 |
|
Postretirement benefit plans |
|
34,244 |
|
|
33,794 |
|
Other intangible asset |
|
28,386 |
|
|
28,386 |
|
|
|
640,311 |
|
|
640,311 |
|
Other |
|
8,183 |
|
|
8,056 |
|
Total other assets |
|
967,401 |
|
|
962,868 |
|
Total assets |
$ |
4,367,512 |
|
|
4,345,067 |
|
|
||||||
Condensed Consolidated Balance Sheets |
||||||
(Unaudited) |
||||||
(in thousands, except share and per share data) |
||||||
|
|
|
|
|||
Capitalization and liabilities |
|
|
|
|||
Capitalization: |
|
|
|
|||
Stockholders’ equity: |
|
|
|
|||
Common stock, |
$ |
32 |
|
32 |
||
Additional paid-in capital |
|
744,621 |
|
|
736,191 |
|
Retained earnings |
|
494,249 |
|
|
495,383 |
|
Accumulated other comprehensive income |
|
1,349 |
|
|
1,791 |
|
Total stockholders’ equity |
|
1,240,251 |
|
|
1,233,397 |
|
Long-term debt, less current portion |
|
1,550,298 |
|
|
1,526,699 |
|
Total capitalization |
|
2,790,549 |
|
|
2,760,096 |
|
|
|
|
|
|||
Current liabilities: |
|
|
|
|||
Lines of credit |
|
210,748 |
|
|
171,500 |
|
Current portion of long-term debt |
|
9,002 |
|
|
48,975 |
|
Accrued groundwater extraction charges, purchased water and power |
|
17,205 |
|
|
24,479 |
|
Accounts payable |
|
34,397 |
|
|
46,121 |
|
Accrued interest |
|
19,056 |
|
|
15,816 |
|
Accrued payroll |
|
8,818 |
|
|
12,229 |
|
Current regulatory liabilities |
|
2,480 |
|
|
3,059 |
|
Other current liabilities |
|
21,554 |
|
|
20,795 |
|
Total current liabilities |
|
323,260 |
|
|
342,974 |
|
|
|
|
|
|||
Deferred income taxes |
|
239,960 |
|
|
238,528 |
|
Advances for construction |
|
141,431 |
|
|
146,582 |
|
Contributions in aid of construction |
|
331,869 |
|
|
326,451 |
|
Postretirement benefit plans |
|
47,323 |
|
|
46,836 |
|
Regulatory liabilities, less current portion |
|
469,953 |
|
|
461,108 |
|
Other noncurrent liabilities |
|
23,167 |
|
|
22,492 |
|
Commitments and contingencies |
|
|
|
|||
Total capitalization and liabilities |
$ |
4,367,512 |
|
|
4,345,067 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240425056403/en/
Chief Financial Officer and Treasurer
408.279.7818
Andrew.Walters@sjwater.com
Director of Investor Relations
860.664.6016
Daniel.Meaney@ctwater.com
Source: