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SJI Performance Improves in Third Quarter
FOLSOM, N.J. -- South Jersey Industries (NYSE: SJI) today reported a loss from continuing operations of $3.2 million, or $0.27 per share, for the third quarter of 2002 compared with a loss of $3.8 million, or $0.32 per share, for the same period last year. For the nine months ended September 30, 2002, earnings from continuing operations totaled $17.2 million, or $1.43 per share, compared with $17.8 million, or $1.52 per share, for the first nine months of 2001. Performance in our appliance service and retail and wholesale gas marketing business lines accounted for most of the improvement for the quarter.
SJI typically produces a loss in the third quarter as natural gas usage is minimal during the non-heating months of July, August and September.
“ I am very pleased with our improved
performance results for the second and third quarters of this year,” stated
Charles Biscieglia, chairman, president and CEO of SJI. “Growth from both
our utility and non-utility businesses continues to support our expectation
of 6 to 7 percent per share earnings growth for the year,” continued Biscieglia.
Operating Highlights include:
- Continued strong performance from the appliance service business line within SJI’s natural gas utility. Operational initiatives undertaken over the last year produced $250,000 of pre-tax income in the third quarter of 2002 compared with a loss last year.
- Increased profit contributions from all non-utility operating companies. These companies produced over $500,000 more pre-tax income in 2002 than during the prior year quarter.
- Strong non-utility retail natural gas customer growth continues. Since the beginning of 2002, South Jersey Energy doubled its customer total to 63,941 as of September 30, 2002. We are now projecting a customer total of over 70,000 by year-end, representing a 40% increase over our initial customer growth expectations for the entire year. Retail natural gas sales are expected to be the largest earnings contributor from SJI’s non-utility operations this year.
- Strong utility customer growth. South Jersey Gas had 291,733 customers at September 30, 2002, an increase of 7,493 over last year at the same time.
Other Highlights include:
- South Jersey Gas filed a petition with the New Jersey Board of Public Utilities in August 2002 to transfer the appliance service business from within the utility to become an unregulated subsidiary of SJI. The move is expected to improve management’s ability to react to market opportunities.
- South Jersey Energy won a contract to install a $1.3 million fuel cell for Stockton State College. Construction is scheduled to begin in the fourth quarter of 2002.
- 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.
EARNINGS CONFERENCE CALL
SJI Chairman, President & CEO, Charles Biscieglia will host an open conference call and webcast to discuss the company's third quarter 2002 results today at 2:00 p.m. EDT. To participate in the call, dial 1-800-360-9865 approximately 5 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: 265195.
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.
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