|
|
SJI Reports Higher Second Quarter Earnings
FOLSOM, N.J. -- South Jersey Industries (NYSE: SJI) today reported earnings from continuing operations of $721,000, or $0.06 per share, for the second quarter of 2002 compared to a loss of $156,000, or $0.01 per share, for the same period last year. For the six months ended June 30, 2002, earnings from continuing operations totaled $20.4 million, or $1.71 per share, compared with $21.6 million, or $1.85 per share, for the first six months of 2001. Improved second quarter performance is primarily attributable to strength in our utility business, particularly the appliance services business line, and significant growth of the number of non-utility retail natural gas customers.
“SJI remains on course to produce the 6 to 7 percent per share earnings growth we charted for our shareholders in the first quarter for 2002,” stated Charles Biscieglia, chairman, president and CEO of SJI. “Our business model is intended to produce a highly consistent and predictable earnings performance, and that is exactly what we’ve accomplished in the face of extremely warm weather,” said Biscieglia.
Highlights for the quarter include:
- SJI produced a combined $0.07 per share earnings improvement over last year.
- Strong performance from the appliance service business line within SJI’s natural gas utility. Operational initiatives undertaken over the last year produced almost $400,000 of pre-tax income in the second quarter of 2002 compared with a loss last year.
- Strong utility customer growth continues. South Jersey Gas had 291,691 customers at June 30, 2002, up 7,711 over last year at the same time. The 2.7% growth rate is well above the industry average.
- Strong non-utility retail natural gas customer growth. South Jersey Energy had 53,495 customers as of June 30, 2002. This represents a 66% increase in the last six months, exceeding our initial customer growth expectations for the entire year. Retail natural gas sales are expected to be the largest contributor from SJI’s non-utility operations this year.
- SJI subsidiary Marina Energy executed a 20-year agreement to provide all of the heating, cooling and customer comfort systems for the Resorts International Hotel Casino in Atlantic City, NJ. Equipment replacement and system improvements were completed and we began generating income in mid-June.
- Marina Energy remains ahead of schedule for constructing the thermal energy plant that will provide for the heating, hot water and cooling needs of The Borgata casino/resort being developed in Atlantic City. The resort is targeted for a summer 2003 opening.
- SJG also sold stock obtained as part of the demutualization of Prudential’s mutual life insurance company. This transaction generated a gain of $0.03 per share, which is included in other income.
EARNINGS CONFERENCE CALL
SJI Chairman, President & CEO, Charles Biscieglia will host an open conference call and webcast to discuss the company's second quarter 2002 results today at 11:00 a.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: 252347.
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 in excess of five 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, and subsequently filed SEC Forms 10Q for a complete discussion of risks and/or uncertainties that may cause actual results to vary.
###