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FOLSOM, N.J. -- South Jersey Industries (NYSE: SJI) reported record total earnings per share of $1.84, or $21.4 million, for the 6-month period ended June 30, 2001, compared with $1.66 per share, or $18.8 million, for the prior year period. For the second quarter, SJI posted a net loss of $.02 per share, or $240,000, compared with a loss of $.01 per share, or $136,000, for the same period last year. "We continue to be pleased with the growth of our business," stated Charles Biscieglia, chairman, president and CEO of SJI. "The performance of our non-utility businesses makes me highly confident in our ability to exceed First Call's consensus earnings estimate from continuing operations of $2.27 per share for 2001."
Non-utility operations produced pre-tax earnings of $8.9 million during the first half of 2001, more than doubling the $3.8 million earned in 2000. For the quarter, pre-tax earnings increased 6.7 percent to $1.4 million. For the year, the largest contributors to this performance were our wholesale and retail gas businesses. For the quarter, wholesale gas sales and our energy services activities were the primary contributors to earnings. Earnings from energy services of over $250,000 accounted for all of the increase in profitability compared with the same quarter last year. That performance is attributable to three major energy conservation contracts currently underway.
SJI's utility operations generally produce a second quarter loss as seasonally warmer weather reduces natural gas usage. The pre-tax loss for the second quarter was $1.4 million, $360,000 more than in 2000. As of June 30, 2001, South Jersey Gas's total customer base was 283,980, an increase of 6,453 customers from the prior year. System expansion and related increases in total customers will positively impact utility profits as consumers begin heating their homes again in the fall. Offsetting customer growth for the quarter were increased depreciation expense, carrying costs on customer receivable balances and the absence of heating revenues during June 2001. Increased depreciation expenses were due to continued expansion and upgrade of our distribution system. Higher customer receivable balances are due to the significant rise in gas prices over the last year.
For the first six months of 2001, pre-tax earnings totaled $28.1 million, compared with $29.2 million in 2000. Earnings for the first six months were impacted by timing differences which resulted in lower contributions from off-system sales, increased depreciation expenses and increased interest expenses. The timing differences that impacted earnings from off-system sales for the 6-month period were due to the way these revenues are shared between the utility and its rate payers. Before the effect of SJG's sharing formula, pre-tax earnings from off-system sales increased $3.4 million over the prior year period. Interest expense rose primarily as a result of financing higher natural gas costs during the first quarter.
Webcast & Conference Call
SJI will hold an open conference call and webcast to discuss its first quarter 2001 results today at 11 a.m. Eastern. To participate in the call, dial 1-800-360-9865 approximately 10 minutes ahead of the scheduled time. To listen to the live webcast, simply visit the South Jersey Industries website at http://www.sjindustries.com and click the webcast icon. A recorded version of the webcast will be available at SJI's website following the call. A rebroadcast will also be available by phoning 1-800-428-6051 and entering the code: 198912.
South Jersey Industries (NYSE: SJI) is an energy services holding company for South Jersey Gas and South Jersey Energy. To learn more about SJI and its subsidiaries please visit http://www.sjindustries.com on the Internet.
This release contains forward-looking statements about SJI's financial performance. The statements are made in good faith and deemed reasonable at the date of this release. Actual results may vary and SJI encourages you to conduct your own research before making any investment decisions including a review of SJI's Annual Report to Shareholders and Form 10K for a complete discussion of risks and/or uncertainties that may cause actual results to vary.
Source: South Jersey Industries