Financial Data and Key Metrics - Revenue for 2023 was $670.4 million, an 8% increase from $620.7 million in 2022 [13] - Net income for 2023 was $85 million, a 15% increase from $73.8 million in 2022 [13] - Diluted EPS for 2023 was $2.68, a 10% increase from $2.43 in 2022, driven partly by a $0.14 increase due to the partial release of income tax reserves [13] - Q4 2023 revenue was $171.3 million, compared to $171.4 million in Q4 2022, with net income of $18.9 million or $0.59 per diluted share, down from $33.5 million or $1.09 per diluted share in Q4 2022 [29] Business Line Data and Key Metrics - Texas Water achieved 12% customer growth year-over-year, serving over 28,000 water connections and 950 wastewater connections [9] - Advanced Metering Infrastructure (AMI) project in California is expected to cost approximately $100 million, with $29 million budgeted for 2024 [21] - The company invested $272 million in capital improvements in 2023, exceeding the planned expenditures by $17 million [4] Market Data and Key Metrics - Reduced water usage in Maine due to wet weather and lower industrial usage, and in Texas due to drought conditions and water restrictions [12] - Texas Water serves three of the five fastest-growing counties in the US, with a 47% increase in potential new connections to 22,000 units [67] - The company is targeting voluntary water use reductions in Texas due to ongoing drought conditions, with most service areas classified as Stage 2 or Stage 3 drought [69] Company Strategy and Industry Competition - The company plans to invest $1.6 billion over five years, including $230 million for PFAS remediation [48] - Strategic investments include advanced leak detection, solar generation, battery energy storage systems, and fleet electrification to reduce operating expenses [10] - The company is focused on regulatory outcomes, such as the general rate case in California, Connecticut, and the system improvement charge in Texas [27] Management Commentary on Operating Environment and Future Outlook - Management highlighted constructive regulatory outcomes, including the cost of capital decision and the reimplementation of the Water Conservation Memorandum Account in California [3] - The company expects 2024 diluted EPS guidance of $2.68 to $2.78, consistent with a long-term growth rate of 5% to 7% [70] - Management remains optimistic about Texas Water's growth prospects, driven by organic growth and strategic acquisitions [47] Other Important Information - The company has a gender-balanced board and spent $63 million (21% of addressable spend) with diverse suppliers in 2023 [76] - The company received an A rating from MSCI for ESG efforts and was recognized in the Newsweek Excellence 1000 Index for 2024 [57] - The company is participating in a class action lawsuit against 3M and DuPont to recover costs related to PFAS remediation [97] Q&A Session Summary Question: Connecticut Regulatory Environment and Aquarian Water - Management declined to comment specifically on Aquarian Water but expressed optimism about the regulatory process in Connecticut [60][62] - The company is focused on disciplined growth and evaluating opportunities that create shareholder value [81][82] Question: Pending Rate Case in Connecticut - Management expressed confidence in the team's transparency and collaboration with regulators, expecting a fair outcome [83][84] - The decision on the general rate case is expected by the end of June 2024, with a potential revenue increase effective July 1, 2024 [40] Question: PFAS Remediation and Public Awareness - Management emphasized the importance of EPA's proposed regulatory standards for PFAS and the company's commitment to resolving the issue [95][113] - The company is participating in a class action lawsuit to recover costs, which will benefit customers by mitigating rate impacts [97] Question: Capital Expenditures and Reinvestment in 2024 - Management highlighted that approximately 65% of the $332 million 2024 capital budget will be recovered through pre-approved projects and infrastructure recovery mechanisms [72] - Reinvestment in 2024 includes strategic projects aimed at reducing future costs and improving operational efficiency [87]

SJW Group 2023 Financial Results [2023 Operating Results](index=1&type=section&id=2023%20Operating%20Results) SJW Group reported strong 2023 financial results, with net income increasing 15% to $85.0 million and diluted EPS reaching $2.68, primarily driven by rate increases and a lower effective tax rate, alongside 8% operating revenue growth to $670.4 million Full Year 2023 vs 2022 Financial Highlights | Metric | 2023 | 2022 | Change | | :--- | :--- | :--- | :--- | | Operating Revenue | $670.4 million | $620.7 million | +8% | | Net Income | $85.0 million | $73.8 million | +15% | | Diluted EPS | $2.68 | $2.43 | +10.3% | - The increase in net income was primarily driven by rate filings in California and Maine, a **$0.14 per share** positive impact from the partial release of an uncertain tax position reserve, and lower maintenance costs[3](index=3&type=chunk) - Revenue growth of **$49.1 million** was mainly from rate filings (**$46.6 million**) and customer growth (**$3.8 million**), partially offset by a **$6.6 million** decrease from lower customer usage due to weather conditions[4](index=4&type=chunk) - Operating expenses increased by **$31.2 million**, largely due to a **$23.4 million** rise in water production expenses from higher purchased water costs[4](index=4&type=chunk)[6](index=6&type=chunk) [Fourth Quarter 2023 Operating Results](index=2&type=section&id=Quarterly%20Operating%20Results) SJW Group's Q4 2023 net income decreased 43% to $18.9 million, or $0.59 per diluted share, primarily due to a tough year-over-year comparison from a retroactive revenue increase in Q4 2022, while operating expenses rose 11% Q4 2023 vs Q4 2022 Financial Highlights | Metric | Q4 2023 | Q4 2022 | Change | | :--- | :--- | :--- | :--- | | Operating Revenue | $171.3 million | $171.4 million | ~0% | | Net Income | $18.9 million | $33.5 million | -43% | | Diluted EPS | $0.59 | $1.09 | -46% | - The year-over-year comparison is distorted because Q4 2022 results included a retroactive revenue increase of approximately **$20.7 million** for all of 2022, following a delayed general rate case (GRC) decision[8](index=8&type=chunk)[11](index=11&type=chunk) - Q4 operating expenses rose by **11%** to **$134.8 million**, mainly due to an **$11.6 million** increase in water production expenses from higher groundwater extraction charges[12](index=12&type=chunk)[13](index=13&type=chunk) - The California Public Utilities Commission (CPUC) reinstated the Water Conservation Memorandum Account (WCMA) and Water Conservation Expense Memorandum Account (WCEMA), providing revenue protection mechanisms retroactive to April 20, 2023[9](index=9&type=chunk) [Capital Expenditures](index=2&type=section&id=Capital%20Expenditures) SJW Group invested **$272 million** in infrastructure in 2023, exceeding guidance, and plans over **$1.6 billion** in capital expenditures over the next five years, including approximately **$230 million** for PFAS treatment pending approvals - Invested **$272 million** in infrastructure in 2023, exceeding the guidance of **$255 million**[13](index=13&type=chunk) - Plans to invest over **$1.6 billion** in capital over the next 5 years[14](index=14&type=chunk) - The 5-year plan includes approximately **$230 million** to install treatment for PFAS, subject to regulatory approvals[14](index=14&type=chunk) [Rate Activity and Regulatory Updates](index=3&type=section&id=Rate%20Activity%20and%20Regulatory%20Updates) SJW Group actively pursued regulatory rate adjustments across California, Connecticut, Maine, and Texas, securing new rates and filing for future increases while expanding its customer base in Texas - **California:** New rates effective Jan 1, 2024, include a WCCM-adjusted ROE of **10.01%**. A new GRC application for 2025-2027 requests an **11.1%** revenue increase in 2025[16](index=16&type=chunk)[17](index=17&type=chunk) - **Connecticut:** Filed a GRC application for a **$21.4 million (18.1%)** increase in authorized revenues, with a decision expected around July 1, 2024[18](index=18&type=chunk) - **Maine:** Received approval for a **$2.6 million (17.6%)** annual revenue increase, effective January 1, 2024, to cover costs for the Saco River Drinking Water Resource Center[19](index=19&type=chunk) - **Texas:** Grew customer base by **12%** in 2023 through organic growth and acquisitions. An application for a system improvement charge (SIC) is pending, which is projected to increase annualized water revenue by **$1.6 million**[2](index=2&type=chunk)[21](index=21&type=chunk) [2024 Guidance and Corporate Outlook](index=4&type=section&id=2024%20Guidance) SJW Group projects 2024 diluted EPS between **$2.68** and **$2.78**, plans **$332 million** in infrastructure investments, and reiterates a long-term diluted EPS growth target of **5% to 7%** from a 2022 base 2024 Full-Year Guidance | Metric | 2024 Guidance | | :--- | :--- | | Net Income per Diluted Share | $2.68 to $2.78 | | Regulated Infrastructure Investments | ~$332 million | - Reiterated long-term diluted EPS growth target of **5% to 7%**, using 2022's diluted EPS of **$2.43** as the anchor[23](index=23&type=chunk) - The company highlighted that 2023 results were positively impacted by a **$0.14 per diluted share** adjustment to income tax reserves, which should be considered when comparing to 2024 guidance[23](index=23&type=chunk) [Condensed Consolidated Financial Statements](index=6&type=section&id=Condensed%20Consolidated%20Financial%20Statements) The unaudited condensed consolidated financial statements show full-year operating revenue increasing to **$670.4 million** and net income to **$85.0 million**, with total assets growing to **$4.35 billion** and stockholders' equity to **$1.23 billion** Condensed Consolidated Income Statement (Full Year) | (in thousands) | 2023 | 2022 | | :--- | :--- | :--- | | **Operating Revenue** | **$670,363** | **$620,698** | | Operating Income | $149,435 | $130,978 | | **Net Income** | **$84,987** | **$73,828** | | Diluted EPS | $2.68 | $2.43 | Condensed Consolidated Balance Sheet Highlights | (in thousands) | Dec 31, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | Net Utility Plant | $3,170,654 | $2,630,317 | | **Total Assets** | **$4,345,067** | **$3,755,056** | | Long-Term Debt | $1,526,699 | $1,491,965 | | **Total Stockholders' Equity** | **$1,233,397** | **$1,110,868** |

SJW Group (NYSE:SJW) Q3 2023 Earnings Conference Call October 30, 2023 2:00 PM ET Company Participants Andrew Walters - Chief Financial Officer and Treasurer Eric Thornburg - Chair, Board, President and CEO Conference Call Participants Angie Storozynski - Seaport Research Richard Sunderland - JPMorgan Jonathan Reeder - Wells Fargo Securities Gregg Orrill - UBS Operator Ladies and gentlemen, thank you for standing by. And welcome to the SJW Group Third Quarter 2023 Financial Results Call. At this time, all p ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 1-8966 SJW GROUP (Exact name of registrant as specified in its charter) 110 West Taylor Street, San Jose, CA 95110 (Address of principal ex ...

SJW Group (NYSE:SJW) Q2 2023 Earnings Conference Call July 31, 2023 2:00 PM ET Company Participants Andrew Walters - Chief Financial Officer & Treasurer Eric Thornburg - Chair of the Board, President & Chief Executive Officer Conference Call Participants Richard Sunderland - JPMorgan Gregg Orrill - UBS Jonathan Reeder - Wells Fargo Securities Operator Welcome to the SJW Group Second Quarter 2023 Financial Results Conference Call. At this time, all participants are in a listen-only mode. After the speakers' ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 1-8966 SJW GROUP (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) (I.R.S. E ...

SJW Group Financial Results Presentation Second Quarter 2023 S/W Group On Today's Call Eric Thornburg Chair, President and CEO Andrew Walters Chief Financial Officer and Treasurer 2 Forward-Looking Statements Safe Harbor This presentation 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," "anticipat ...

SJW Group (NYSE:SJW) Q1 2023 Earnings Conference Call May 1, 2023 2:00 PM ET Company Participants Andrew Walters - Chief Financial Officer & Treasurer Eric Thornburg - Chair of the Board, President & Chief Executive Officer Conference Call Participants Angie Storozynski - Seaport Research Richard Sunderland - JPMorgan Jonathan Reeder - Wells Fargo Gregg Orrill - UBS Operator Good afternoon, and thank you for standing by. Welcome to the SJW Group First Quarter 2023 Financial Results Conference Call. At this ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 1-8966 SJW GROUP (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) (I.R.S. ...

Eric Thornburg Chair, President and CEO Andrew Walters Chief Financial Officer and Treasurer SJW Group 2 Forward-Looking Statements Safe Harbor This presentation 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," "approximately," "plans," "projects," "may," "should ...