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FOLSOM, N.J. -- South Jersey Industries (NYSE: SJI) today reported total earnings of $19.7 million, or $1.65 per share, for the first quarter of 2002. “I am extremely pleased with SJI’s first quarter performance,” stated Charles Biscieglia, chairman, president and CEO of SJI. “We exceeded our internal expectations for the first quarter, and the level of progress achieved in key business lines has us on track to produce the 6 to 7 percent 2002 earnings per share growth we outlined during our March 28, 2002 conference call and webcast.”
In the conference call, Biscieglia targeted 6 to 7 percent earnings per share growth despite the anticipation that first quarter 2002 earnings were below the $21.7 million, or $1.87 per share, produced during the same period in 2001. “Our earnings forecast is based upon steady growth from core utility operations, a willingness to undertake small but profitable business opportunities, and complementary non-utility earnings streams that provide SJI with the ability to offset unforeseen negatives such as warm weather,” stated Biscieglia.
The comparison to first quarter 2001 performance was impacted primarily by two factors. First, weather in 2002 was 17% warmer than in 2001. Weather directly reduced the earnings contribution of SJI’s utility business by $0.13 per share. Second, non-utility performance was also affected by adopting FAS 133 in the first quarter of 2001. This action resulted in the recognition of $0.14 per share related to energy marketing activities for that period.
Partially offsetting the effect of very warm weather on the utility was strong customer growth and an increased contribution from off-system sales. Customers totaled 290,604 as of March 31, 2002, compared with 283,944 at the same time last year. First quarter 2002 new customer additions are on pace for South Jersey Gas to achieve its goal of 3 percent growth for the year. In addition, off-system sales produced $930,000 of additional pre-tax income resulting from the methodology of the utility’s sharing formula.
At SJI’s non-utility operations, substantial numbers of new customers obtained by South Jersey Energy during the quarter will positively impact the remainder of the year. SJE’s customer base increased 50 percent in the quarter to 45,000. The wholesale gas marketing,energy services and meter reading business lines performed at higher levels in the first quarter than last year and are also expected to increase their contribution for the year. This combination of factors is expected to produce double-digit earnings growth for SJI’s non-utility operations for the year.
EARNINGS CONFERENCE CALL
SJI Chairman, President & CEO, Charles Biscieglia will host an open conference call and webcast to discuss the company's first quarter 2002 results today at 2:30 p.m.EDT.
To participate in the call, dial 1-800-997-8642 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 of the conference call will also be available by phoning 1-800-428-6051 and entering the code: 238454.
South Jersey Industries (NYSE: SJI) is an energy services holding company for South Jersey Gas, South Jersey Energy, South Jersey Resources Group and Marina Energy. SJI’s goals are to provide consistent, sustainable dividend growth and to increase its earnings per share by 5 to 10 percent annually. Visit http://www.sjindustries.com to learn more about SJI and its subsidiaries.
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. SJI assumes no responsibility to update this information. Actual results may vary and SJI encourages you to conduct your own research before making any investment decisions including a review of SJI’s 2001 SEC Form 10K and Annual Report for a complete discussion of risks and/or uncertainties that may cause actual results to vary.
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