SJW Group (NYSE:SJW) Q4 2020 Results Conference Call February 19, 2021 11:00 AM ET Company Participants Jim Lynch - Chief Financial Officer Eric Thornburg - President & Chief Executive Officer Conference Call Participants Richard Sutherland - JPMorgan Hasan Doza - WAM Michael Gaugler - Janney Montgomery Scott Jonathan Reeder - Wells Fargo Operator Ladies and gentlemen, thank you for standing by, and welcome to the SJW Group Q4 2020 Earnings Conference Call. At this time, all participants are in a listen-onl ...

Financial Data and Key Metrics Changes - Third-quarter revenue was $165.9 million, an increase of $51.9 million compared to $114 million in the third quarter of 2019 [14] - Net income for the third quarter was $26.1 million or $0.91 per diluted share, compared to $9.5 million or $0.33 per diluted share in the same period last year [14] - Year-to-date revenue was $428.8 million, a 46% increase over the same period last year, with net income of $48.2 million or $1.68 per diluted share [21] Business Line Data and Key Metrics Changes - The merger with Connecticut Water Service (CTWS) contributed $37.1 million to the revenue increase in Q3 2020 [18] - Increased customer usage in California and Texas contributed an additional $2.4 million in revenue [18] - Water production expenses increased by $13.3 million compared to Q3 2019, primarily due to CTWS water sales and higher customer usage [19] Market Data and Key Metrics Changes - The effective income tax rate for Q3 was 15%, down from 21% in Q3 2019, primarily due to certain CTWS tax deductions [20] - The company experienced a $6.7 million increase in payments for previously invoiced amounts and a $5 million upfront payment related to a service concession agreement [29] Company Strategy and Development Direction - The company remains focused on its core growth strategy of investing in the water system to provide safe and reliable water service [10] - A capital plan of $237.8 million for 2021 has been set, marking the largest capital plans in the history of its New England and Texas subsidiaries [11] - The company is preparing rate case filings in California, Connecticut, and Maine, with a general rate case filing for San Jose Water scheduled for January 2021 [34][36] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges faced in 2020, including COVID-19, wildfires, and drought, but emphasized the resilience of employees and the importance of investments in clean drinking water [6][10] - The company reaffirmed its guidance of $1.95 to $2.05 per share for 2020 [12] - Management expressed caution regarding surface water availability in California, indicating a conservative approach for future forecasts [58] Other Important Information - The company has established a diversity, equity, and inclusion council to foster an inclusive work environment [42] - SJW Group has a 154-year track record of serving customers and has made 309 consecutive dividend payments [67] Q&A Session Summary Question: Will the company provide 2021 guidance considering the upcoming Connecticut rate case? - Management is considering guidance for 2021 but is cautious due to the rate case and will provide clarity as the first quarter approaches [48][49] Question: Should investors expect conservatism regarding purchased water costs for San Jose Water? - Management acknowledged the need for transparency regarding surface water projections and indicated a conservative approach moving forward [50][51] Question: How should investors think about surface water availability in California heading into 2021? - Management advised caution due to the lack of rain and indicated that they would provide updates as conditions change [57][58] Question: Is the long-term EPS growth rate target of 5% still applicable? - Management confirmed that the target is based on a conservative view of capital expenditures and rate base growth over the next five years [61][62]

SJW Group (NYSE:SJW) Q2 2020 Earnings Conference Call August 7, 2020 11:00 AM ET Company Participants Jim Lynch - CFO & Treasurer Eric Thornburg - Chairman, President & CEO Conference Call Participants Richard Sunderland - JPMorgan Jonathan Reeder - Wells Fargo Securities Operator Ladies and gentlemen, thank you for standing by, and welcome to the SJW Group's Second Quarter 2020 Financial Results Conference Call. [Operator Instructions]. I would now like to hand the conference over to your speaker today, Ji ...

Financial Data and Key Metrics Changes - First quarter revenue was $115.8 million, a 49% increase over the first quarter of 2019 [25] - Net income for the quarter was $2.4 million, or $0.08 per diluted share, compared to $5.9 million, or $0.21 diluted earnings per share for the first quarter of 2019 [25] - The change in diluted earnings per share was primarily due to increased customer usage, CTWS results, rate increases, and savings in merger-related costs, offset by interest expense and decreased surface water production [26] Business Line Data and Key Metrics Changes - The revenue increase was attributed to $27.4 million from the CTWS merger, $6 million from higher customer usage, and $3.5 million from cumulative rate increases [27] - Total water production costs increased by 26% compared to the first quarter of 2019, primarily due to new CTWS expenses and decreased lower-cost surface water production [28] Market Data and Key Metrics Changes - California demand was reported to be ahead of last year and the 5-year average, with a 13% increase in system delivery through April [22][59] - The company anticipates significant increases in operating costs due to reliance on purchased water, with every billion gallons costing an additional $4.2 million compared to using its own supply [21][30] Company Strategy and Development Direction - The company continues to execute its core growth strategy of investing in high-quality water systems and ensuring resilient water systems [36] - Capital programs are expected to add rate base and support future earnings, with a focus on completing $320 million in investments authorized in the current general rate case by the end of 2020 [37] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by the COVID-19 pandemic but noted that there had not yet been a material financial impact through Q1 [18] - The company is closely monitoring revenue impacts and adjusting operations to mitigate them, with a focus on maintaining public health responsibilities [41][44] Other Important Information - The company has a decoupling mechanism in Connecticut that provides downside protection in the event of a decline in demand [61] - The company has continuously paid dividends for over 76 years and increased annual dividends for the last 53 years [23] Q&A Session Summary Question: Can you explain the CMA memo account and its impact on P&L? - The CMA memo account tracks COVID-19 related costs and quantifiable revenue impacts, which will be submitted for review to regulatory authorities in the future [52] Question: What is the process for recovering higher purchased water costs? - The company is evaluating the possibility of applying for a water supply cost balancing account in the next general rate filing [55] Question: What are the demand trends in your jurisdictions? - Demand in California is currently about 13% ahead of the 5-year average, with no revenue impact seen in Q1 [59] Question: Is the guidance adjustment solely due to purchased water expenses? - Yes, the guidance adjustment is completely driven by the need to purchase additional water due to lower surface water availability [64] Question: Will the CapEx budget be affected by the pause in activity? - The company expects to meet its $320 million CapEx budget for California, with any delays shifting into future years rather than reducing the total amount [68]

SJW Group (NYSE:SJW) Q4 2019 Results Earnings Conference Call February 27, 2020 2:00 PM ET Company Participants Suzy Papazian - General Counsel Eric Thornburg - Chairman, President and Chief Executive Officer James Lynch - Chief Financial Officer Conference Call Participants Operator Ladies and gentlemen, thank you for standing by and welcome to the Full Year Fourth Quarter 2019 Financial Results Conference Call. At this time, all participants are in a listen-only mode. After the speakers presentation there ...

Financial Data and Key Metrics Changes - Third quarter revenue was $114 million, a decrease of $10.9 million from $124.9 million in the same quarter of 2018 [16] - Net income for the third quarter was $9.5 million or $0.33 per diluted share, compared to $15.8 million or $0.76 per diluted share in Q3 2018 [16][17] - Year-to-date revenue for 2019 was $294.6 million, a 1% decrease compared to the same period last year [24] Business Line Data and Key Metrics Changes - Increased availability of surface water contributed $0.12 per share, while decreased merger-related costs contributed $0.17 per share in Q3 [18] - Water production expenses increased by $1.2 million compared to Q3 2018, primarily due to higher per unit costs for purchased water and power [22] - Other operating expenses decreased by $3.3 million in Q3 2019 due to a decrease in merger expenses related to the Connecticut Water transaction [23] Market Data and Key Metrics Changes - The WCMA balance for Q3 2019 dropped to $900,000 from $4.1 million in Q3 2018, indicating better alignment of authorized and actual usage [20] - Customer usage showed a 4% increase for residential customers and a 5% decrease for business customers in Q3 [61] Company Strategy and Development Direction - The merger with Connecticut Water Service, Inc. is expected to drive future success and expand the company's footprint [14] - The company is focused on continuous improvements through innovative technology and prudent financial management [13] - A commitment to environmental stewardship and community support remains a priority, with a focus on water and energy conservation [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver sustained growth in profitability, earnings, and dividends following the merger [43] - Future financial results are expected to be less impacted by the WCMA situation, with a better alignment of fixed and variable costs [36] - The company is working on providing clearer forward-looking guidance for analysts and investors [105] Other Important Information - The company has invested over $1 billion in water systems and communities in California and Texas over the last decade [13] - A new President for Connecticut Water Service has been appointed, effective December 1, 2019 [42] Q&A Session Summary Question: What was the rationale behind the commission's decision not in favor of recovering balances? - The denial was based on the argument that the drought has been over since 2016 and concerns about the company potentially over-earning [48] Question: Is there a risk that the company may not be able to book WCMA entries going forward? - The WCMA remains an active account, and the company believes it has good standing for requesting the balance despite the proposed decisions [51] Question: Can you provide details on actual usage per customer compared to new rates? - Residential customer usage is about 4% ahead, while business usage is about 5% behind for the quarter [61] Question: What are the expected merger costs for the fourth quarter? - There are two significant outstanding expenses related to the merger totaling around $12 million, along with some integration costs [67] Question: What is the revenue increase from San Jose Water's GRC for the full year? - The revenue increase from the GRC is approximately $16.5 million for the full year [78]