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FOLSOM, N.J. -- South Jersey Industries (NYSE: SJI) reported record total earnings per share of $1.51, or $17.6 million, for the 9-month period ended September 30, 2001, compared with $1.29 per share, or $14.7 million, for the prior year period. For the third quarter, SJI's net loss narrowed to $.32 per share, or $3.8 million, compared with a loss of $.36 per share, or $4.1 million, for the same period last year. "SJI remains on track to report another year of record earnings and to exceed First Call earnings expectations for 2001," stated Charles Biscieglia, chairman, president and CEO of SJI. "I am particularly gratified that we have been able to maintain strong, positive momentum in the face of significant economic weakness in the national economy."
Non-utility operations produced pre-tax earnings of $9.4 million during the first nine months of 2001, more than doubling the $4.1 million earned in 2000. For the quarter, pre-tax earnings increased 21 percent to almost $500,000. The largest contributors, year to date to this performance were our wholesale and retail gas marketing operations. For the quarter, wholesale gas sales, energy services activities and our meter reading business were the primary contributors to non-utility earnings.
SJI's utility operations generally produce a third quarter loss as natural gas usage is minimal during the non-heating months of July, August and September. The pre-tax loss for both the third quarters 2001 and 2000 was $6.7 million. Improved margins and lower interest rates experienced during the quarter were offset by increases in our reserve for uncollectable accounts, carrying costs on higher customer receivable balances related to last winter's high gas prices and increased depreciation expenses due to ongoing system expansion. As of September 30, 2001, South Jersey Gas' total customer base was 284,240, an increase of 5,745 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 fourth quarter.
For the first nine
months of 2001, utility pre-tax earnings totaled $21.4 million,
compared with $22.5 million in 2000. Earnings for the first nine
months were primarily impacted by factors occurring early in the
year such as timing differences resulting in lower contributions
from off-system sales, increased depreciation expenses and certain
non-recurring interest expenses. The increase in the reserve for
uncollectable accounts taken in the third quarter was
also a factor. The timing differences that impacted earnings from
off-system sales for the 9-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 $4.3 million over the prior year period. Interest
expense rose primarily as a result of the need to finance higher
natural gas costs during the first quarter.
Webcast & Conference Call
SJI will hold an open
conference call and webcast to discuss its third quarter 2001
results today at 2:30 p.m. Eastern. To participate in the call,
dial 1-800-388-8975 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: 211777.
South Jersey Industries
(NYSE:
SJI) is an energy services holding company for South Jersey
Gas, South Jersey Energy and Marina 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 Forms 10K and 10Q for a complete discussion of risks and/or uncertainties that may cause actual results to vary.
Source: South Jersey Industries