Q2 2024 SJW Group Earnings Call Transcript
Key Points
- SJW Group (SJW) reported a 12% increase in revenue for Q2 2024, reaching $176.2 million, driven by rate increases and customer growth.
- Net income for the quarter was $20.7 million, a 13% increase over the same period in 2023.
- The company invested $158 million in water and wastewater utility infrastructure, representing 48% of its 2024 capital expenditure plan.
- SJW Group (SJW) secured additional financial assistance funds in California and expanded eligibility for its water rate assistance program in Connecticut.
- The company delivered earnings per diluted share of $0.64 and adjusted non-GAAP earnings per diluted share of $0.66 in Q2 2024.
- Higher water production expenses offset some of the revenue gains, with a 14% increase in water production costs compared to 2023.
- The Connecticut rate case did not meet all expectations, resulting in $3.9 million in unrecovered expenses.
- The Texas service area is experiencing severe to extreme drought, which may impact water usage and revenue.
- Total other operating expenses increased by 2% year-over-year, driven by higher depreciation and administrative costs.
- The company faces significant challenges ahead, including PFAS remediation, new lead and copper standards, and the replacement of aging infrastructure.
Good day, and thank you for standing by, and welcome to the 2024 second quarter SJW Group Financial Results Conference Call. At this time, all participants are in a listen only mode. After the speakers' presentation, there will be a question and answer session to ask a question. During this session, you'll need to press star one one on your telephone. You will then hear an automated message. Revising your hand is raised to withdraw your question, please press star one one. Again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Andrew Walter, Chief Financial Officer, Treasurer, Interim Principal Accounting Officer.
Please go ahead.
Thank you, operator. Welcome to the Second Quarter 2024 financial results conference call for SJW Group. I will be presenting today with Eric Thornburg, Chair of the Board, President and Chief Executive Officer.
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