SJW Group First Quarter 2024 Financial Results [Financial Highlights & Business Overview](index=1&type=section&id=Financial%20Highlights%20%26%20Business%20Overview) SJW Group reported stable Q1 2024 results, with diluted EPS of $0.36, $69 million in infrastructure investment, and reaffirmed 2024 EPS guidance Q1 2024 Key Highlights | Metric | Value | | :--- | :--- | | Diluted EPS | $0.36 | | Infrastructure Investment | $69 million | | California Adjusted ROE | 10.01% | | 2024 Diluted EPS Guidance | $2.68 - $2.78 (Reaffirmed) | | Quarterly Dividend | $0.40 per share | - CEO Eric W. Thornburg expressed satisfaction with the quarterly results, attributing them to strong local water operations and the execution of the company's business strategy[3](index=3&type=chunk) [Operational and Financial Performance](index=1&type=section&id=Operational%20and%20Financial%20Performance) SJW Group's Q1 2024 net income increased marginally to $11.7 million, with diluted EPS at $0.36, driven by revenue growth offset by higher operating expenses Q1 2024 vs Q1 2023 Operating Results | Metric | Q1 2024 | Q1 2023 | Change | | :--- | :--- | :--- | :--- | | Operating Revenue | $149.4M | $137.3M | +8.8% | | Net Income | $11.7M | $11.5M | +1.0% | | Diluted EPS | $0.36 | $0.37 | -2.7% | | Operating Expenses | $121.5M | $112.1M | +8.4% | - The increase in operating revenue was primarily driven by **$10 million** from rate increases, mainly in California, and **$1.8 million** from higher customer usage due to weather and the end of mandatory conservation[5](index=5&type=chunk) - Operating expenses rose mainly due to a **$4.8 million** increase in water production expenses and a **$2.1 million** increase in depreciation from utility plant additions[8](index=8&type=chunk) [Capital Expenditures](index=1&type=section&id=Capital%20Expenditures) The company invested **$69 million** in Q1 2024 infrastructure, aligning with its **$332 million** annual budget and a **$1.6 billion** five-year plan Capital Investment Plan | Period | Investment Amount | | :--- | :--- | | Q1 2024 Actual | $69 million | | 2024 Budget | $332 million | | 5-Year Plan | > $1.6 billion | - A major ongoing project is the **$100 million** advanced metering infrastructure (AMI) installation by San Jose Water, with approximately **$27 million** expected to be spent in 2024[9](index=9&type=chunk) - The five-year capital plan includes approximately **$230 million** specifically for the installation of treatment for per- and polyfluoroalkyl substances (PFAS), pending regulatory approvals[7](index=7&type=chunk) [Rate Activity and Regulatory Updates](index=2&type=section&id=Rate%20Activity%20and%20Regulatory%20Updates) SJW Group actively pursued rate adjustments and regulatory approvals across its territories, including new California rates, pending GRCs in Connecticut, and approved increases in Maine and Texas [California](index=2&type=section&id=California) California's new rates, effective January 1, 2024, include a **10.01%** adjusted ROE, with a new GRC filed for 2025-2027 proposing an **11.1%** revenue increase - San Jose Water filed a General Rate Case (GRC) application for 2025-2027, proposing revenue increases of approximately **11.1%** in 2025, **4.0%** in 2026, and **4.5%** in 2027[12](index=12&type=chunk) California Rate Comparison (Effective Jan 1) | Metric | 2024 | 2023 | | :--- | :--- | :--- | | WCCM-adjusted ROE | 10.01% | 8.90% | | Cost of Debt | 5.28% | 6.20% | | Overall Rate of Return (ROR) | 7.75% | 7.53% | - The CPUC approved a one-year deferment for the Cost of Capital (COC) filing to May 1, 2025, to alleviate administrative costs[13](index=13&type=chunk) [Connecticut](index=2&type=section&id=Connecticut) Connecticut Water Company has a pending GRC seeking a **$21.4 million** (**18.1%**) revenue increase to recover **$135 million** in infrastructure investments, with a decision expected by June 28, 2024 - CWC filed a GRC application requesting a revenue increase of **$21.4 million** (approx. **18.1%**) to recover **$135 million** in infrastructure investments[14](index=14&type=chunk) [Maine](index=2&type=section&id=Maine) Maine regulators approved a **$2.6 million** (**17.6%**) annual revenue increase for Maine Water Company, effective January 1, 2024, plus an additional **$158,000** for infrastructure projects - The Maine Public Utilities Commission (MPUC) approved a **$2.6 million** (**17.6%**) annual revenue increase for the Biddeford Saco Division, effective January 1, 2024[15](index=15&type=chunk) - The MPUC also authorized a **$158,000** increase in annualized revenues for projects completed under the Water Infrastructure Charge in the Camden-Rockland Division[16](index=16&type=chunk) [Texas](index=3&type=section&id=Texas) Texas Water Company filed to acquire 3009 Water Company, with a decision expected in Q3 2024, and received approval for a System Improvement Charge generating **$1.6 million** in annualized revenues - TWC filed an application to acquire 3009 Water Company, which serves about **270 customers**[17](index=17&type=chunk) - The Public Utilities Commission of Texas (PUCT) approved TWC's application for a System Improvement Charge (SIC), expected to generate **$1.6 million** in annualized revenues[18](index=18&type=chunk) [Corporate Updates](index=3&type=section&id=Corporate%20Updates) SJW Group's Connecticut subsidiary was recognized as a Top Workplace USA, while the company reaffirmed its 2024 financial guidance, long-term EPS growth target, and quarterly dividend [Corporate Responsibility Recognition](index=3&type=section&id=Corporate%20Responsibility%20Recognition) Connecticut Water Company was recognized by USA Today as a 2024 Top Workplace USA, one of only two water utilities to receive this employee-feedback-based honor - Connecticut Water Company was named a 2024 Top Workplace USA by USA Today, making it one of only two water utilities to earn the distinction[19](index=19&type=chunk) [2024 Guidance Reaffirmed](index=3&type=section&id=2024%20Guidance%20Reaffirmed) The company reaffirmed its 2024 diluted EPS guidance of **$2.68** to **$2.78** and **$332 million** in infrastructure investments, reiterating a **5%** to **7%** long-term EPS growth target 2024 Full-Year Guidance | Metric | Guidance | | :--- | :--- | | Net income per diluted common share | $2.68 to $2.78 | | Regulated infrastructure investments | ~$332 million | - The company reiterated its long-term diluted EPS growth target of **5% to 7%**, anchored off 2022's diluted EPS of **$2.43**[20](index=20&type=chunk) [Dividend](index=3&type=section&id=Dividend) The Board declared a quarterly cash dividend of **$0.40** per share, continuing over **80** consecutive years of payments and **56** years of increases Quarterly Dividend Details | Item | Detail | | :--- | :--- | | Dividend per Share | $0.40 | | Record Date | May 6, 2024 | | Payment Date | June 3, 2024 | - The company has paid dividends for over **80 consecutive years** and has increased the calendar year dividend for **56 consecutive years**[22](index=22&type=chunk) [Financial Statements](index=5&type=section&id=Financial%20Statements) Unaudited Q1 2024 financial statements show increased operating revenue and income, with total assets rising to **$4.37 billion** driven by net utility plant growth and a modest rise in stockholders' equity [Condensed Consolidated Statements of Comprehensive Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) SJW Group reported Q1 2024 operating revenues of **$149.4 million** and net income of **$11.7 million**, with diluted EPS at **$0.36**, compared to prior-year figures Q1 2024 Income Statement Highlights (in thousands) | Line Item | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Operating revenue | $149,382 | $137,296 | | Total operating expense | $121,469 | $112,118 | | Operating income | $27,913 | $25,178 | | Net income | $11,699 | $11,530 | | Diluted EPS | $0.36 | $0.37 | [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2024, total assets reached **$4.37 billion**, driven by net utility plant growth, with stockholders' equity at **$1.24 billion** and lines of credit at **$210.7 million** Balance Sheet Highlights (in thousands) | Line Item | March 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Total assets | $4,367,512 | $4,345,067 | | Net utility plant | $3,208,847 | $3,170,654 | | Total current assets | $178,082 | $198,389 | | Total stockholders' equity | $1,240,251 | $1,233,397 | | Total capitalization and liabilities | $4,367,512 | $4,345,067 |

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 001-8966 SJW GROUP (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) (I.R.S. Em ...

Financial Performance - SJW Group's revenue for YTD 2023 increased by 8% to $670.4 million compared to $620.7 million in YTD 2022 [61] - Net income for YTD 2023 increased by 15% to $85.0 million compared to $73.8 million in YTD 2022 [61] - Diluted EPS for YTD 2023 increased by 10% to $2.68 compared to $2.43 in YTD 2022 [61] - Water production expenses increased by 10% for YTD 2023 [65] - Revenue for 4Q 2023 remained relatively flat at $171.3 million compared to $171.4 million in 4Q 2022 [60] - Net income for 4Q 2023 decreased by 43% to $18.9 million compared to $33.5 million in 4Q 2022 [60] - Diluted EPS for 4Q 2023 decreased by 46% to $0.59 compared to $1.09 in 4Q 2022 [60] Capital Expenditure and Investments - The company plans $1.6 billion in infrastructure investment for 2024-2028 [36, 59] - Approximately $230 million of the five-year CapEx is allocated for PFAS treatment [3] - The company invested $272 million in CapEx year-to-date, which is 107% of the $255 million budgeted in 2023 [43] - $29 million investment projected in 2024 for Advanced Metering Infrastructure (AMI) installation in California [73] Regulatory and Operational Updates - Outstanding development units (potential connections) increased 47% in 2023 to 22,000 units in Texas [1] - A proposed order authorizes $1.6 million in annualized revenue from a system improvement charge in Texas [1] - Maine Water revenues are expected to increase by $2.6 million effective January 1, 2024, following the approval of a stipulation agreement for the Biddeford-Saco Division general rate case [89] - The company filed a General Rate Case (GRC) with the California Public Utilities Commission (CPUC) on January 2, 2024, proposing a 3-year $540 million CapEx program [85] - The company is requesting $21.4 million, or an 18.1% annualized revenue increase in Connecticut [113]

Financial Data and Key Metrics - Revenue for 2023 was $670.4 million, an 8% increase from $620.7 million in 2022 [13] - Net income for 2023 was $85 million, a 15% increase from $73.8 million in 2022 [13] - Diluted EPS for 2023 was $2.68, a 10% increase from $2.43 in 2022, driven partly by a $0.14 increase due to the partial release of income tax reserves [13] - Q4 2023 revenue was $171.3 million, compared to $171.4 million in Q4 2022, with net income of $18.9 million or $0.59 per diluted share, down from $33.5 million or $1.09 per diluted share in Q4 2022 [29] Business Line Data and Key Metrics - Texas Water achieved 12% customer growth year-over-year, serving over 28,000 water connections and 950 wastewater connections [9] - Advanced Metering Infrastructure (AMI) project in California is expected to cost approximately $100 million, with $29 million budgeted for 2024 [21] - The company invested $272 million in capital improvements in 2023, exceeding the planned expenditures by $17 million [4] Market Data and Key Metrics - Reduced water usage in Maine due to wet weather and lower industrial usage, and in Texas due to drought conditions and water restrictions [12] - Texas Water serves three of the five fastest-growing counties in the US, with a 47% increase in potential new connections to 22,000 units [67] - The company is targeting voluntary water use reductions in Texas due to ongoing drought conditions, with most service areas classified as Stage 2 or Stage 3 drought [69] Company Strategy and Industry Competition - The company plans to invest $1.6 billion over five years, including $230 million for PFAS remediation [48] - Strategic investments include advanced leak detection, solar generation, battery energy storage systems, and fleet electrification to reduce operating expenses [10] - The company is focused on regulatory outcomes, such as the general rate case in California, Connecticut, and the system improvement charge in Texas [27] Management Commentary on Operating Environment and Future Outlook - Management highlighted constructive regulatory outcomes, including the cost of capital decision and the reimplementation of the Water Conservation Memorandum Account in California [3] - The company expects 2024 diluted EPS guidance of $2.68 to $2.78, consistent with a long-term growth rate of 5% to 7% [70] - Management remains optimistic about Texas Water's growth prospects, driven by organic growth and strategic acquisitions [47] Other Important Information - The company has a gender-balanced board and spent $63 million (21% of addressable spend) with diverse suppliers in 2023 [76] - The company received an A rating from MSCI for ESG efforts and was recognized in the Newsweek Excellence 1000 Index for 2024 [57] - The company is participating in a class action lawsuit against 3M and DuPont to recover costs related to PFAS remediation [97] Q&A Session Summary Question: Connecticut Regulatory Environment and Aquarian Water - Management declined to comment specifically on Aquarian Water but expressed optimism about the regulatory process in Connecticut [60][62] - The company is focused on disciplined growth and evaluating opportunities that create shareholder value [81][82] Question: Pending Rate Case in Connecticut - Management expressed confidence in the team's transparency and collaboration with regulators, expecting a fair outcome [83][84] - The decision on the general rate case is expected by the end of June 2024, with a potential revenue increase effective July 1, 2024 [40] Question: PFAS Remediation and Public Awareness - Management emphasized the importance of EPA's proposed regulatory standards for PFAS and the company's commitment to resolving the issue [95][113] - The company is participating in a class action lawsuit to recover costs, which will benefit customers by mitigating rate impacts [97] Question: Capital Expenditures and Reinvestment in 2024 - Management highlighted that approximately 65% of the $332 million 2024 capital budget will be recovered through pre-approved projects and infrastructure recovery mechanisms [72] - Reinvestment in 2024 includes strategic projects aimed at reducing future costs and improving operational efficiency [87]

SJW Group 2023 Financial Results [2023 Operating Results](index=1&type=section&id=2023%20Operating%20Results) SJW Group reported strong 2023 financial results, with net income increasing 15% to $85.0 million and diluted EPS reaching $2.68, primarily driven by rate increases and a lower effective tax rate, alongside 8% operating revenue growth to $670.4 million Full Year 2023 vs 2022 Financial Highlights | Metric | 2023 | 2022 | Change | | :--- | :--- | :--- | :--- | | Operating Revenue | $670.4 million | $620.7 million | +8% | | Net Income | $85.0 million | $73.8 million | +15% | | Diluted EPS | $2.68 | $2.43 | +10.3% | - The increase in net income was primarily driven by rate filings in California and Maine, a **$0.14 per share** positive impact from the partial release of an uncertain tax position reserve, and lower maintenance costs[3](index=3&type=chunk) - Revenue growth of **$49.1 million** was mainly from rate filings (**$46.6 million**) and customer growth (**$3.8 million**), partially offset by a **$6.6 million** decrease from lower customer usage due to weather conditions[4](index=4&type=chunk) - Operating expenses increased by **$31.2 million**, largely due to a **$23.4 million** rise in water production expenses from higher purchased water costs[4](index=4&type=chunk)[6](index=6&type=chunk) [Fourth Quarter 2023 Operating Results](index=2&type=section&id=Quarterly%20Operating%20Results) SJW Group's Q4 2023 net income decreased 43% to $18.9 million, or $0.59 per diluted share, primarily due to a tough year-over-year comparison from a retroactive revenue increase in Q4 2022, while operating expenses rose 11% Q4 2023 vs Q4 2022 Financial Highlights | Metric | Q4 2023 | Q4 2022 | Change | | :--- | :--- | :--- | :--- | | Operating Revenue | $171.3 million | $171.4 million | ~0% | | Net Income | $18.9 million | $33.5 million | -43% | | Diluted EPS | $0.59 | $1.09 | -46% | - The year-over-year comparison is distorted because Q4 2022 results included a retroactive revenue increase of approximately **$20.7 million** for all of 2022, following a delayed general rate case (GRC) decision[8](index=8&type=chunk)[11](index=11&type=chunk) - Q4 operating expenses rose by **11%** to **$134.8 million**, mainly due to an **$11.6 million** increase in water production expenses from higher groundwater extraction charges[12](index=12&type=chunk)[13](index=13&type=chunk) - The California Public Utilities Commission (CPUC) reinstated the Water Conservation Memorandum Account (WCMA) and Water Conservation Expense Memorandum Account (WCEMA), providing revenue protection mechanisms retroactive to April 20, 2023[9](index=9&type=chunk) [Capital Expenditures](index=2&type=section&id=Capital%20Expenditures) SJW Group invested **$272 million** in infrastructure in 2023, exceeding guidance, and plans over **$1.6 billion** in capital expenditures over the next five years, including approximately **$230 million** for PFAS treatment pending approvals - Invested **$272 million** in infrastructure in 2023, exceeding the guidance of **$255 million**[13](index=13&type=chunk) - Plans to invest over **$1.6 billion** in capital over the next 5 years[14](index=14&type=chunk) - The 5-year plan includes approximately **$230 million** to install treatment for PFAS, subject to regulatory approvals[14](index=14&type=chunk) [Rate Activity and Regulatory Updates](index=3&type=section&id=Rate%20Activity%20and%20Regulatory%20Updates) SJW Group actively pursued regulatory rate adjustments across California, Connecticut, Maine, and Texas, securing new rates and filing for future increases while expanding its customer base in Texas - **California:** New rates effective Jan 1, 2024, include a WCCM-adjusted ROE of **10.01%**. A new GRC application for 2025-2027 requests an **11.1%** revenue increase in 2025[16](index=16&type=chunk)[17](index=17&type=chunk) - **Connecticut:** Filed a GRC application for a **$21.4 million (18.1%)** increase in authorized revenues, with a decision expected around July 1, 2024[18](index=18&type=chunk) - **Maine:** Received approval for a **$2.6 million (17.6%)** annual revenue increase, effective January 1, 2024, to cover costs for the Saco River Drinking Water Resource Center[19](index=19&type=chunk) - **Texas:** Grew customer base by **12%** in 2023 through organic growth and acquisitions. An application for a system improvement charge (SIC) is pending, which is projected to increase annualized water revenue by **$1.6 million**[2](index=2&type=chunk)[21](index=21&type=chunk) [2024 Guidance and Corporate Outlook](index=4&type=section&id=2024%20Guidance) SJW Group projects 2024 diluted EPS between **$2.68** and **$2.78**, plans **$332 million** in infrastructure investments, and reiterates a long-term diluted EPS growth target of **5% to 7%** from a 2022 base 2024 Full-Year Guidance | Metric | 2024 Guidance | | :--- | :--- | | Net Income per Diluted Share | $2.68 to $2.78 | | Regulated Infrastructure Investments | ~$332 million | - Reiterated long-term diluted EPS growth target of **5% to 7%**, using 2022's diluted EPS of **$2.43** as the anchor[23](index=23&type=chunk) - The company highlighted that 2023 results were positively impacted by a **$0.14 per diluted share** adjustment to income tax reserves, which should be considered when comparing to 2024 guidance[23](index=23&type=chunk) [Condensed Consolidated Financial Statements](index=6&type=section&id=Condensed%20Consolidated%20Financial%20Statements) The unaudited condensed consolidated financial statements show full-year operating revenue increasing to **$670.4 million** and net income to **$85.0 million**, with total assets growing to **$4.35 billion** and stockholders' equity to **$1.23 billion** Condensed Consolidated Income Statement (Full Year) | (in thousands) | 2023 | 2022 | | :--- | :--- | :--- | | **Operating Revenue** | **$670,363** | **$620,698** | | Operating Income | $149,435 | $130,978 | | **Net Income** | **$84,987** | **$73,828** | | Diluted EPS | $2.68 | $2.43 | Condensed Consolidated Balance Sheet Highlights | (in thousands) | Dec 31, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | Net Utility Plant | $3,170,654 | $2,630,317 | | **Total Assets** | **$4,345,067** | **$3,755,056** | | Long-Term Debt | $1,526,699 | $1,491,965 | | **Total Stockholders' Equity** | **$1,233,397** | **$1,110,868** |

SJW Group (NYSE:SJW) Q3 2023 Earnings Conference Call October 30, 2023 2:00 PM ET Company Participants Andrew Walters - Chief Financial Officer and Treasurer Eric Thornburg - Chair, Board, President and CEO Conference Call Participants Angie Storozynski - Seaport Research Richard Sunderland - JPMorgan Jonathan Reeder - Wells Fargo Securities Gregg Orrill - UBS Operator Ladies and gentlemen, thank you for standing by. And welcome to the SJW Group Third Quarter 2023 Financial Results Call. At this time, all p ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 1-8966 SJW GROUP (Exact name of registrant as specified in its charter) 110 West Taylor Street, San Jose, CA 95110 (Address of principal ex ...

SJW Group (NYSE:SJW) Q2 2023 Earnings Conference Call July 31, 2023 2:00 PM ET Company Participants Andrew Walters - Chief Financial Officer & Treasurer Eric Thornburg - Chair of the Board, President & Chief Executive Officer Conference Call Participants Richard Sunderland - JPMorgan Gregg Orrill - UBS Jonathan Reeder - Wells Fargo Securities Operator Welcome to the SJW Group Second Quarter 2023 Financial Results Conference Call. At this time, all participants are in a listen-only mode. After the speakers' ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 1-8966 SJW GROUP (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) (I.R.S. E ...

SJW Group Financial Results Presentation Second Quarter 2023 S/W Group On Today's Call Eric Thornburg Chair, President and CEO Andrew Walters Chief Financial Officer and Treasurer 2 Forward-Looking Statements Safe Harbor This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Some of these forward-looking statements can be identified by the use of forward-looking words such as "believes," "expects," "estimates," "anticipat ...