SJW Corp. Announces First Quarter Financial Results

In the first quarter of 2009, net income was $116,000 and diluted earnings per common share were $0.01, compared to $2.7 million and $0.15 per share, respectively, in the first quarter of 2008.

Water production costs for the quarter ended March 31, 2009 were $13.6 million compared to $13.5 million in 2008 despite lower unit sales volume. The increase of approximately $100,000 in water production costs reflects $794,000 in higher per unit costs for purchased water, groundwater extraction and energy cost and $553,000 in decreased surface water supply, offset by lower expenses of $1.2 million due to lower customer demand.

Nonwater production costs for the first quarter were $22.9 million compared to $20.2 million in 2008. The increase of $2.7 million was primarily attributable to an increase of $1.3 million in administrative and general expense, primarily due to pension funding and legal and administrative fees related to the closing of the Bulverde, Texas acquisition which was finalized in the first quarter. Other increases were $700,000 in taxes other than income tax, $488,000 in depreciation expense and $166,000 in all other expenses. Income tax expense for the first quarter decreased to $101,000 in 2009 from $1.8 million in 2008.

The Directors of SJW Corp. today declared a quarterly dividend on common stock of $0.165 per share. The dividend is payable on June 1, 2009 to shareholders of record on May 18, 2009.

SJW Corp. is a publicly traded holding company headquartered in San Jose, California. SJW Corp. is the parent company of San Jose Water Company, SJWTX, Inc. and SJW Land Company. Together, San Jose Water Company and SJWTX, Inc. provide regulated and nonregulated water service to more than one million people in San Jose, California and nearby communities and in Canyon Lake, Texas and nearby communities. SJW Land Company owns and operates commercial buildings, has a majority interest in a real estate partnership, and has properties in the states of California, Florida, Connecticut, Texas, Arizona and Tennessee.

This press release may contain certain forward-looking statements including but not limited to statements relating to SJW Corp.'s plans, strategies, objectives, expectations and intentions, which are made pursuant to the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of SJW Corp. to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. The results for a quarter are not indicative of results for a full year due to seasonality. Certain factors that may cause actual results, performance or achievements to materially differ are described in SJW Corp.'s most recent reports on Form 10-K, Form 10-Q and Form 8-K filed with the Securities and Exchange Commission. SJW Corp. undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

SJW Corp.
Condensed Consolidated Statements of Income and Comprehensive
Income
(Unaudited)
(thousands of dollars, except share and per share data)
                                     THREE MONTHS ENDED
                                     MARCH 31
                                             2009       2008
OPERATING REVENUE                    $       40,021     41,253
OPERATING EXPENSE:
Operation:
Purchased water                              7,789      6,996
Power                                        760        1,066
Groundwater extraction charge                5,052      5,416
Total production costs                       13,601     13,478
Administrative and general                   7,130      5,839
Other                                        3,977      3,683
Maintenance                                  2,916      3,044
Taxes other than income                      2,290      1,590
Depreciation and amortization                6,551      6,063
Income taxes                                 101        1,786
Total operating expense                      36,566     35,483
OPERATING INCOME                             3,455      5,770
Interest on long-term debt
and other                                    (3,339  )  (3,052  )
NET INCOME                           $       116        2,718
Other comprehensive income
(loss), net                                  (2,966  )  733
COMPREHENSIVE INCOME (LOSS)          $       (2,850  )  3,451
Earnings per share
-Basic                               $       0.01       0.15
-Diluted                             $       0.01       0.15
Dividend per share                   $       0.16       0.16
Weighted average shares outstanding
- Basic                                      18,470     18,377
- Diluted                                    18,658     18,592

SJW Corp.
Condensed Consolidated Balance Sheets
(Unaudited)
(thousands of dollars)
                                        March 31        December 31
                                               2009     2008
ASSETS
UTILITY PLANT:
Land                                    $      8,402    8,134
Depreciable plant and equipment                866,872  855,427
Construction in progress                       10,955   7,142
Intangible assets                              10,790   8,040
Total utility plant                            897,019  878,743
Less accumulated depreciation
and amortization                               279,503  272,562
Net utility plant                              617,516  606,181
REAL ESTATE INVESTMENT:                        88,000   88,000
Less accumulated depreciation
and amortization                               5,930    5,511
Net real estate investment                     82,070   82,489
CURRENT ASSETS:
Cash and equivalents                           2,436    3,406
Accounts receivable and accrued
unbilled utility revenue                       24,800   26,329
Prepaid expenses and other                     2,151    2,226
Total current assets                           29,387   31,961
OTHER ASSETS:
Investment in California Water
Service Group                                  46,044   51,071
Unamortized debt issuance and
reacquisition costs                            3,123    3,162
Regulatory assets                              73,499   73,778
Other                                          2,757    2,235
                                               125,423  130,246
                                        $      854,396  850,877
CAPITALIZATION AND LIABILITIES
CAPITALIZATION:
Common stock                            $      9,624    9,611
Additional paid-in capital                     21,112   20,548
Retained earnings                              202,079  204,744
Accumulated other comprehensive income         16,457   19,423
Total shareholders' equity                     249,272  254,326
Long-term debt, less current portion           226,407  216,613
Total capitalization                           475,679  470,939
CURRENT LIABILITIES:
Line of credit                                 16,700   18,400
Current portion of long-term debt              736      705
Accrued groundwater extraction charge
and purchased water                            4,025    5,256
Purchased power                                338      563
Accounts payable                               7,670    5,758
Accrued interest                               3,493    4,567
Other current liabilities                      7,695    8,074
Total current liabilities                      40,657   43,323
DEFERRED INCOME TAXES AND CREDITS              97,850   98,713
ADVANCES FOR CONSTRUCTION AND
CONTRIBUTIONS IN AID OF CONSTRUCTION           189,690  188,869
POSTRETIREMENT BENEFIT PLANS                   43,814   42,331
OTHER NONCURRENT LIABILITIES                   6,706    6,702
  $ 854,396  850,877

SOURCE: SJW Corp.

SJW Corp. 
Suzy Papazian, 408-279-7961 
Corporate Secretary