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FOLSOM, N.J. -- South Jersey Industries (SJI: NYSE) today reported a restatement to its previously reported first quarter 2001 operating results due to the implementation of SFAS 133.
SJI's net income from continuing operations totaled $21.7 million, or $1.87 per share, for the three months ended March 31, 2001, compared with $19.1 million, or $1.69 per share, for the prior year period. Previously, SJI reported earnings from continuing operations of $20.0 million, or $1.73 per share for the first quarter of 2001. There was no change in reported results for any prior period. Earnings per share including discontinued operations and the cumulative effect of a change in accounting for the first three months ended March 31, 2001, were also revised to $1.87 per share from the previously reported $1.72 per share. SJI's earnings per share including discontinued operations were $1.68 for the first quarter of 2000.
The restatement results exclusively from implementing SFAS 133, "Accounting for Derivative Instruments and Hedging Activities," in conjunction with acquiring 100 percent ownership of South Jersey Resources Group, both effective January 1, 2001. SJRG is a marketer of natural gas storage, commodity and transportation in the mid-Atlantic and Southern states. Prior to January 1, 2001, SJI and an affiliate of Anadarko Petroleum Company had equal ownership interests in SJRG.
"We anticipated utilizing hedge accounting treatment for the majority of our derivative activities," stated David Kindlick, SJI's vice president and treasurer. "However, it became clear that the ongoing cost and workload necessary to maintain the documentation to support hedge accounting treatment outweighed the benefits. By adopting mark-to-market treatment for these derivative activities, we're better positioned to focus our efforts and resources on running the business."
South Jersey Industries will conduct an open conference call today, May 16, 2001 at 4 p.m. to discuss this announcement. To participate in this call, please dial 1-800-360-9865 approximately 10 minutes ahead of the scheduled time. A rebroadcast of the call will be available at 5 p.m. by dialing 1-800-428-6051 and entering the PIN 191568.
South Jersey Industries is an energy services holding company. To learn more about SJI and its subsidiaries, please visit our website at http://www.sjindustries.com.