SJI Reports Third Quarter 2022 Results
SJI reported its Q3 2022 results, showing GAAP earnings of $(0.31) per diluted share, down from $(0.23) in 2021. Economic earnings were $(0.18) per share, slightly up from $(0.17) in 2021. YTD 2022 GAAP earnings rose to $0.59 per share from $0.06 in 2021, driven by increased profitability across operations. The acquisition by IIF is proceeding on track, pending regulatory approvals. Key highlights include customer growth, infrastructure investment programs totaling $200 million, and ongoing regulatory initiatives.
- YTD 2022 GAAP earnings increased to $0.59 per share from $0.06 in 2021.
- Economic earnings improved to $1.08 per share YTD 2022 compared to $1.02 in 2021.
- Customer added approximately 5,000 new customers, with a total of 412,000 served.
- Infrastructure Investment Program authorizes $200 million investment to enhance safety and reliability.
- Q3 2022 GAAP earnings were $(37.8) million compared to $(25.8) million in the prior year.
- Economic earnings for Q3 2022 were $(22.4) million, worsening from $(18.8) million year-over-year.
- Increased total expenses of $2.3 million in Q3 2022 mainly due to higher depreciation and interest.
Acquisition Proceeding on Track
FOLSOM, NJ , Nov. 02, 2022 (GLOBE NEWSWIRE) --
| Investor Contact: | |
| Daniel Fidell | |
| 609-561-9000 x7027 | |
| dfidell@sjindustries.com | |
| Media Contact: | |
| Dominick DiRocco | |
| 609-561-9000 x4262 | |
| ddirocco@sjindustries.com |
SJI Reports Third Quarter 2022 Results
Acquisition Proceeding on Track
FOLSOM, NJ (November 2, 2022) - SJI (NYSE: SJI) today reported operating results for the third quarter ended September 30, 2022. Highlights include:
- Q3 2022 GAAP earnings
$(0.31) per diluted share compared to$(0.23) per diluted share in 2021 Economic Earnings*$(0.18) per diluted share compared to$(0.17) per diluted share in 2021 - YTD 2022 GAAP earnings
$0.59 per diluted share compared to$0.06 per diluted share in 2021 Economic Earnings$1.08 per diluted share compared to$1.02 per diluted share in 2021 - YTD Economic EPS improvement reflects increased profitability from both Utility and Non-Utility operations and the impact of financing activities
- Acquisition by IIF — Transaction proceeding on track with requisite approvals; NJBPU review underway
- Regulatory Initiatives — ETG base rate case completed in August; SJG base rate case proceeding on schedule
- RNG Production — ten dairy farms under development; Expected in-service in 2023
"Our businesses have performed very well in 2022, and we remain on track to achieve our goals for the year," said Mike Renna, SJI President and Chief Executive Officer. "Our regulatory initiatives and clean energy investments targeting enhanced infrastructure safety, reliability and decarbonization continue to advance. And our acquisition by IIF continues to secure requisite approvals. We look forward to the start of a new chapter for SJI in 2023, alongside our experienced partners at IIF, and ever dedicated to our mission of providing exceptional service to the more than 700,000 New Jersey customers we are honored to serve every day,” added Renna.
| Three Months Ended September 30, 2022 | Three Months Ended September 30, 2021 | |||||||||||||||||||||||||
| GAAP | GAAP | Economic | Economic | GAAP | GAAP | Economic | Economic | |||||||||||||||||||
| Earnings | EPS | Earnings | EPS | Earnings | EPS | Earnings | EPS | |||||||||||||||||||
| Utility | $ | (24.5 | ) | $ | (0.20 | ) | $ | (19.3 | ) | $ | (0.16 | ) | $ | (9.4 | ) | $ | (0.08 | ) | $ | (17.2 | ) | $ | (0.15 | ) | ||
| Non-Utility | $ | 15.7 | $ | 0.13 | $ | 7.8 | $ | 0.06 | $ | (6.8 | ) | $ | (0.06 | ) | $ | 8.1 | $ | 0.07 | ||||||||
| Other | $ | (29.0 | ) | $ | (0.24 | ) | $ | (10.8 | ) | $ | (0.09 | ) | $ | (9.6 | ) | $ | (0.09 | ) | $ | (9.6 | ) | $ | (0.09 | ) | ||
| Total - Continuing Ops | $ | (37.8 | ) | $ | (0.31 | ) | $ | (22.4 | ) | $ | (0.18 | ) | $ | (25.8 | ) | $ | (0.23 | ) | $ | (18.8 | ) | $ | (0.17 | ) | ||
| Average Diluted Shares | 122.5 | 122.5 | 112.4 | 112.4 | ||||||||||||||||||||||
| *Non-GAAP, see "Explanation and Reconciliation of Non-GAAP Financial Measures." | ||||||||||||||||||||||||||
| Note: Earnings and average shares outstanding are in millions. Amounts and/or EPS may not add due to rounding. | ||||||||||||||||||||||||||
Third Quarter 2022 Results
For the three-month period ended September 30, 2022, SJI reported consolidated GAAP earnings of
SJI uses the non-GAAP measure of economic earnings when discussing results. We believe this presentation provides clarity into the continuing earnings of our business. A full explanation and reconciliation of economic earnings is provided under “Explanation and Reconciliation of Non-GAAP Financial Measures” later in this report and in our 10-K for the year ending December 31, 2021.
For the three-month period ended September 30, 2022, economic earnings were
UTILITY
Utility entities include the regulated operations of South Jersey Gas (SJG) and Elizabethtown Gas (ETG). Third quarter 2022 GAAP earnings were
South Jersey Gas
Performance. Third quarter 2022 GAAP/economic earnings were
Customer Growth. SJG added approximately 5,000 new customers over the last 12 months and now serves approximately 412,000 customers. SJG’s
Infrastructure Modernization. SJG's Infrastructure Investment Program (IIP) accelerates planned capital expenditures to enhance the delivery of safe, reliable, affordable natural gas, create jobs, and support the State’s environmental goals. SJG's program authorizes investment of
Base Rate Case. In April, SJG filed a petition with the NJBPU requesting an increase of
Energy Efficiency. Through energy efficiency programs, SJG advances New Jersey’s clean energy goals in a manner that benefits customers, the environment and the State’s green economy while recovering our investments in a timely manner. SJG's energy efficiency program, as approved by the BPU in April 2021, authorizes investment of
Elizabethtown Gas
Performance. Third quarter 2022 GAAP earnings were
Customer Growth. ETG added approximately 5,000 new customers over the last 12 months and now serves approximately 307,000 customers. ETG’s
Infrastructure Modernization. ETG's Infrastructure Investment Plan (IIP) authorizes investment of
Base Rate Case. In August, the NJBPU approved a settlement authorizing ETG to increase base rates by
Energy Efficiency. ETG's energy efficiency program, as approved by the BPU in April 2021, authorizes investment of
NON-UTILITY
SJI's non-utility entities include Energy Management, Energy Production and Midstream. Third quarter 2022 GAAP earnings were
Energy Management
Performance. Energy Management includes Wholesale Services (Fuel Management/Marketing) and Retail Services (Account Services/Energy Consulting). Third quarter 2022 GAAP earnings were
Energy Production
Performance. Energy Production primarily includes renewable (fuel cell/solar) and decarbonization (REV/RNG development) investments. Third quarter 2022 GAAP earnings were
Midstream
Performance. Third quarter GAAP earnings were
OTHER
Performance. Other entity includes interest on debt, including debt associated with past acquisitions. Third quarter 2022 GAAP earnings were
Nine Months 2022 Results
| Nine Months Ended September 30, 2022 | Nine Months Ended September 30, 2021 | |||||||||||||||||||||||||
| GAAP | GAAP | Economic | Economic | GAAP | GAAP | Economic | Economic | |||||||||||||||||||
| Earnings | EPS | Earnings | EPS | Earnings | EPS | Earnings | EPS | |||||||||||||||||||
| Utility | $ | 104.2 | $ | 0.84 | $ | 110.7 | $ | 0.89 | $ | 115.5 | $ | 1.05 | $ | 107.7 | $ | 0.98 | ||||||||||
| Non-Utility | $ | 19.1 | $ | 0.15 | $ | 51.3 | $ | 0.41 | $ | (81.2 | ) | $ | (0.74 | ) | $ | 32.2 | $ | 0.29 | ||||||||
| Other | $ | (50.3 | ) | $ | (0.40 | ) | $ | (28.7 | ) | $ | (0.23 | ) | $ | (28.1 | ) | $ | (0.26 | ) | $ | (27.8 | ) | $ | (0.25 | ) | ||
| Total - Continuing Ops | $ | 73.0 | $ | 0.59 | $ | 133.3 | $ | 1.08 | $ | 6.3 | $ | 0.06 | $ | 112.1 | $ | 1.02 | ||||||||||
| Average Diluted Shares | 123.9 | 123.9 | 109.6 | 109.6 | ||||||||||||||||||||||
| *Non-GAAP, see "Explanation and Reconciliation of Non-GAAP Financial Measures." | ||||||||||||||||||||||||||
| Note: Earnings and average shares outstanding are in millions. Amounts and/or EPS may not add due to rounding. | ||||||||||||||||||||||||||
Nine months YTD GAAP earnings were
UTILITY
Utility entities contributed nine months YTD GAAP earnings of
- SJG. YTD GAAP earnings were
$85.4 million compared with$82.2 million in 2021. Economic earnings were$86.8 million compared with$82.2 million in 2021. Utility margin increased$15.3 million , reflecting customer growth and the roll-in of investments from infrastructure replacement programs. Total expenses increased$10.7 million , primarily reflecting higher depreciation and interest expenses. - ETG. YTD GAAP earnings were
$18.8 million compared with$33.3 million in 2021. Economic earnings were$23.9 million compared with$25.4 million in 2021. Utility margin increased$9.6 million , reflecting an increase in base rates, customer growth and the roll-in of investments from infrastructure replacement programs. Total expenses increased$11.1 million , primarily reflecting higher depreciation and interest expenses.
NON-UTILITY
Nine months YTD GAAP earnings were
- Energy Management. YTD GAAP earnings were
$9.7 million compared with$(0.4) million in 2021. Economic earnings were$41.5 million compared with$25.4 million in 2021, reflecting improved asset optimization opportunities, colder weather and contributions from consulting activities. - Energy Production. YTD GAAP earnings were
$7.7 million compared with$4.6 million in 2021. Economic earnings were$9.9 million compared with$4.9 million in 2021, reflecting ITC's and income associated with fuel cell and solar investments and contributions from SJI's equity interest in REV. - Midstream. YTD GAAP earnings were
$1.7 million compared with$(85.4) million in 2021. Economic earnings were$0.0 million compared with$1.9 million in 2021, reflecting the absence of AFUDC related to the project.
OTHER
Nine months YTD GAAP earnings were
Capital Expenditures and Cash Flow
For the nine months ended September 30, 2022:
- Net cash provided by operating activities was
$374.9 million compared with$273.9 million in the prior year period, primarily reflecting improved wholesale marketing results and customer growth. - Net cash used in investing activities was
$(586.5) million compared with$(434.2) million in the prior year period, primarily reflecting utility capital expenditures and REV, fuel cell and solar investments. - Net cash provided by financing activities was
$235.7 million compared with$143.9 million in the prior year period, primarily reflecting debt and equity issuance partially offset by debt repayment.
Balance Sheet
- Equity-to-total capitalization was
35.2% at September 30, 2022 compared with35.8% at December 31, 2021, largely reflecting debt and equity financing, and repayment of debt. - Assuming conversion of mandatory convertible equity units and equity credit from rating agencies for long-duration debt, SJI's adjusted equity-to-total capitalization, a non-GAAP measure, was
42.8% at September 30, 2022 compared with43.6% at December 31, 2021. - At September 30, 2022, SJI had total credit facilities of
$1.0 billion , with$787.8 million of available liquidity.
Acquisition
On February 24, 2022, SJI announced that it had entered into a definitive agreement to be acquired by IIF. The per share purchase price of
About SJI
SJI (NYSE: SJI), an energy infrastructure holding company based in Folsom, NJ, delivers energy services to customers through two primary subsidiaries: SJI Utilities (SJIU) and SJI Energy Enterprises (SJIEE). SJIU houses the company’s regulated natural gas utility operations, delivering safe, reliable and affordable natural gas to more than 700,000 residential, commercial and industrial customers across New Jersey via its South Jersey Gas and Elizabethtown Gas subsidiaries. SJIEE houses the company’s non-utility operations primarily focused on clean energy development and decarbonization via renewable energy production and energy management activities. Visit sjindustries.com for more information about SJI and its subsidiaries.
Forward-Looking Statements and Risk Factors
This news release, including information incorporated by reference, contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact, including statements regarding guidance, industry prospects or future results of operations or financial position, expected sources of incremental margin, strategy, financing needs, future capital expenditures and the outcome or effect of ongoing litigation, are forward-looking. This Quarterly Report uses words such as "anticipate," "believe," "expect," "estimate," "forecast," "goal," "intend," "objective," "plan," "project," "seek," "strategy," "target," "will" and similar expressions are intended to identify forward-looking statements. These forward-looking statements are based on the beliefs and assumptions of management at the time that these statements were prepared and are inherently uncertain. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statements. These risks and uncertainties include, but are not limited to, general economic conditions on an international, national, state and local level; weather conditions in SJI’s marketing areas; changes in commodity costs; changes in the availability of natural gas; “non-routine” or “extraordinary” disruptions in SJI’s distribution system; cybersecurity incidents and related disruptions; regulatory, legislative and court decisions; competition; the availability and cost of capital; costs and effects of legal proceedings and environmental liabilities; the failure of customers, suppliers or business partners to fulfill their contractual obligations; changes in business strategies; failure to satisfy the conditions to closing of the Merger; the diversion of management time on Merger-related issues; and public health crises and epidemics or pandemics, such as the COVID-19 pandemic. These risks and uncertainties, as well as other risks and uncertainties that could cause our actual results to differ materially from those expressed in the forward-looking statements, are described in greater detail in Part II, Item 1A in this Quarterly Report, and Part I, Item 1A in SJI’s and SJG's Annual Report on Form 10-K for the year ended December 31, 2021, as they may be supplemented from time to time by other SEC filings made by SJI or SJG. earnings release. Also refer to the additional risk factor described below:
Explanation of Non-GAAP Financial Measures
Management uses the non-GAAP financial measures of Economic Earnings and Economic Earnings per share when evaluating its results of operations. These non-GAAP financial measures should not be considered as an alternative to GAAP measures, such as net income, operating income, earnings per share from continuing operations or any other GAAP measure of financial performance. We define Economic Earnings as: Income from Continuing Operations, (i) less the change in unrealized gains and plus the change in unrealized losses on non-utility derivative transactions; (ii) less income and plus losses attributable to noncontrolling interests; and (iii) less the impact of transactions, contractual arrangements or other events where management believes period to period comparisons of SJI's operations could be difficult or potentially confusing. With respect to part (iii) of the definition of Economic Earnings, items excluded from Economic Earnings for the three and nine months ended September 30, 2022 and 2021, are described in (A)-(F) in the table below. Economic Earnings is a significant financial measure used by our management to indicate the amount and timing of income from continuing operations that we expect to earn after taking into account the impact of the items described above. Management uses Economic Earnings to manage its business and to determine such items as incentive/compensation arrangements and allocation of resources. Specifically regarding derivatives, we believe that this financial measure indicates to investors the profitability of the entire derivative-related transaction and not just the portion that is subject to mark-to-market valuation under GAAP. We believe that considering only the change in market value on the derivative side of the transaction can produce a false sense as to the ultimate profitability of the total transaction as no change in value is reflected for the non-derivative portion of the transaction.
Reconciliation of Non-GAAP Financial Measures
The following table presents a reconciliation of our income from continuing operations and earnings per share from continuing operations to Economic Earnings and Economic Earnings per share (in thousands, except per share data):
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||
| (Loss) Income from Continuing Operations | $ | (37,771 | ) | $ | (25,830 | ) | $ | 72,965 | $ | 6,308 | |||||
| Minus/Plus: | |||||||||||||||
| Unrealized Mark-to-Market (Gains) Losses on Derivatives | (11,319 | ) | 19,815 | 43,872 | 35,089 | ||||||||||
| Income Attributable to Noncontrolling Interests | (196 | ) | (238 | ) | (491 | ) | (540 | ) | |||||||
| Impairment of Equity Method Investment (A) | 1,158 | — | 1,158 | 87,370 | |||||||||||
| Impairment of Property, Plant & Equipment (B) | 7,217 | — | 9,114 | — | |||||||||||
| Acquisition/Sale Net Costs (C) | 1,248 | 924 | 6,401 | 1,602 | |||||||||||
| Other (D) | — | (10,960 | ) | — | (10,960 | ) | |||||||||
| Income Taxes (E) | 434 | (2,519 | ) | (16,488 | ) | (20,971 | ) | ||||||||
| Additional Tax Adjustments (F) | 16,821 | — | 16,821 | 14,176 | |||||||||||
| Economic Earnings | $ | (22,408 | ) | $ | (18,808 | ) | $ | 133,352 | $ | 112,074 | |||||
| Earnings per Share from Continuing Operations | $ | (0.31 | ) | $ | (0.23 | ) | $ | 0.59 | $ | 0.06 | |||||
| Minus/Plus: | |||||||||||||||
| Unrealized Mark-to-Market (Gains) Losses on Derivatives | (0.09 | ) | 0.17 | 0.36 | 0.32 | ||||||||||
| Income Attributable to Noncontrolling Interests | (0.01 | ) | — | (0.01 | ) | (0.01 | ) | ||||||||
| Impairment of Equity Method Investment (A) | 0.01 | — | 0.01 | 0.80 | |||||||||||
| Impairment of Property, Plant & Equipment (B) | 0.06 | — | 0.08 | — | |||||||||||
| Acquisition/Sale Net Costs (C) | 0.01 | 0.01 | 0.05 | 0.01 | |||||||||||
| Other (D) | — | (0.10 | ) | — | (0.10 | ) | |||||||||
| Income Taxes (E) | 0.01 | (0.02 | ) | (0.14 | ) | (0.19 | ) | ||||||||
| Additional Tax Adjustments (F) | 0.14 | — | 0.14 | 0.13 | |||||||||||
| Economic Earnings per Share | $ | (0.18 | ) | $ | (0.17 | ) | $ | 1.08 | $ | 1.02 | |||||
(A) Represents other-than-temporary impairment charges taken on the Company’s equity method investments in Energenic (2022) and PennEast (2021).
(B) Represents charges on property, plant & equipment and on a regulatory asset which consisted of certain property, plant & equipment that were deemed unrecoverable at SJG and ETG, respectively.
(C) In 2022, represents costs incurred related to the Merger Agreement and to finalize the transactions related to acquiring Bronx Midco and solar projects, partially offset with amounts included in continuing operations related to PennEast partnership distributions. In 2021, represents costs incurred to finalize acquisitions of solar projects, along with the final working capital payment on the sale of Elkton.
(D) For 2021, represents a gain recognized by ETG from a UTUA settlement agreement.
(E) The income taxes were determined using a combined average statutory tax rate.
(F) Represents state and federal deferred tax asset valuation allowances taken in 2022 and 2021, respectively.
Summary of Utility Margin
The following tables summarize Utility Margin for SJG and ETG (in thousands):
South Jersey Gas
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||
| Utility Margin: | ||||||||||||
| Residential | $ | 25,987 | $ | 23,630 | $ | 189,822 | $ | 181,330 | ||||
| Commercial and Industrial | 16,370 | 15,111 | 82,455 | 76,233 | ||||||||
| Cogeneration and Electric Generation | 1,290 | 1,136 | 3,494 | 3,558 | ||||||||
| Interruptible | 27 | 15 | 72 | 94 | ||||||||
| Off-System Sales & Capacity Release | 813 | 237 | 3,996 | 1,170 | ||||||||
| Other Revenues | 1,114 | 523 | 2,015 | 1,502 | ||||||||
| Margin Before Weather Normalization & Decoupling | 45,601 | 40,652 | 281,854 | 263,887 | ||||||||
| CIP Mechanism | (1,343 | ) | 1,011 | (2,738 | ) | 885 | ||||||
| EET Mechanism | 951 | 1,644 | 5,651 | 4,653 | ||||||||
| Utility Margin** | $ | 45,209 | $ | 43,307 | $ | 284,767 | $ | 269,425 | ||||
Elizabethtown Gas
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||
| Utility Margin: | ||||||||||||||
| Residential | $ | 15,331 | $ | 13,634 | $ | 104,364 | $ | 101,168 | ||||||
| Commercial & Industrial | 15,252 | 14,623 | 63,027 | 64,396 | ||||||||||
| Regulatory Rider Mechanisms* | (325 | ) | (1,871 | ) | (8,292 | ) | (16,049 | ) | ||||||
| Utility Margin** | $ | 30,258 | $ | 26,386 | $ | 159,099 | $ | 149,515 | ||||||
*Represents pass-through expenses for which there is a corresponding credit in operating revenues. Therefore, such recoveries have no impact on financial results.
**Utility Margin is a non-GAAP financial measure and is further defined on page 2 under SJG performance. The definition of Utility Margin is the same for SJG and ETG gas utility operations.
SOUTH JERSEY INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF (LOSS)/INCOME (UNAUDITED)
(In Thousands Except for Per Share Data)
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||
| Operating Revenues: | |||||||||||||||
| Utility | $ | 147,261 | $ | 106,123 | $ | 818,591 | $ | 653,009 | |||||||
| Nonutility | 461,257 | 259,508 | 1,125,936 | 698,750 | |||||||||||
| Total Operating Revenues | 608,518 | 365,631 | 1,944,527 | 1,351,759 | |||||||||||
| Operating Expenses: | |||||||||||||||
| Cost of Sales - (Excluding depreciation and amortization) | |||||||||||||||
| - Utility | 62,598 | 24,128 | 330,235 | 183,927 | |||||||||||
| - Nonutility | 430,214 | 264,237 | 1,092,215 | 677,507 | |||||||||||
| Operations and Maintenance | 63,968 | 61,198 | 205,737 | 194,182 | |||||||||||
| Depreciation | 36,927 | 33,081 | 105,065 | 97,924 | |||||||||||
| Impairment Charges | 7,217 | — | 9,114 | — | |||||||||||
| Energy and Other Taxes | 3,411 | (8,040 | ) | 11,524 | (1,245 | ) | |||||||||
| Total Operating Expenses | 604,335 | 374,604 | 1,753,890 | 1,152,295 | |||||||||||
| Operating Income (Loss) | 4,183 | (8,973 | ) | 190,637 | 199,464 | ||||||||||
| Other Income and Expense | 7,801 | 2,225 | 13,295 | 7,885 | |||||||||||
| Interest Charges | (38,478 | ) | (31,468 | ) | (101,618 | ) | (94,112 | ) | |||||||
| (Loss) Income Before Income Taxes | (26,494 | ) | (38,216 | ) | 102,314 | 113,237 | |||||||||
| Income Taxes | (9,989 | ) | 11,727 | (28,588 | ) | (25,340 | ) | ||||||||
| Equity in (Loss) Earnings of Affiliated Companies | (1,288 | ) | 659 | (761 | ) | (81,589 | ) | ||||||||
| (Loss) Income from Continuing Operations | (37,771 | ) | (25,830 | ) | 72,965 | 6,308 | |||||||||
| Loss from Discontinued Operations - (Net of tax benefit) | (93 | ) | (127 | ) | (315 | ) | (278 | ) | |||||||
| Net (Loss) Income | (37,864 | ) | (25,957 | ) | 72,650 | 6,030 | |||||||||
| Less: Income Attributable to Noncontrolling Interests | 143 | 173 | 354 | 390 | |||||||||||
| Net (Loss) Income Attributable to South Jersey Industries, Inc. | $ | (38,007 | ) | $ | (26,130 | ) | $ | 72,296 | $ | 5,640 | |||||
| Basic Earnings Per Common Share: | |||||||||||||||
| Continuing Operations | $ | (0.31 | ) | $ | (0.23 | ) | $ | 0.60 | $ | 0.06 | |||||
| Discontinued Operations | — | — | — | — | |||||||||||
| Net (Loss) Income | (0.31 | ) | (0.23 | ) | 0.60 | 0.06 | |||||||||
| Less: Income Attributable to Noncontrolling Interests | — | — | — | — | |||||||||||
| Net (Loss) Income Attributable to South Jersey Industries, Inc. | $ | (0.31 | ) | $ | (0.23 | ) | $ | 0.60 | $ | 0.06 | |||||
| Average Shares of Common Stock Outstanding - Basic | 122,465 | 112,448 | 121,040 | 108,108 | |||||||||||
| Diluted Earnings Per Common Share: | |||||||||||||||
| Continuing Operations | $ | (0.31 | ) | $ | (0.23 | ) | $ | 0.59 | $ | 0.06 | |||||
| Discontinued Operations | — | — | — | — | |||||||||||
| Net (Loss) Income | (0.31 | ) | (0.23 | ) | 0.59 | 0.06 | |||||||||
| Less: Income Attributable to Noncontrolling Interests | — | — | — | — | |||||||||||
| Net (Loss) Income Attributable to South Jersey Industries, Inc. | $ | (0.31 | ) | $ | (0.23 | ) | $ | 0.59 | $ | 0.06 | |||||
| Average Shares of Common Stock Outstanding - Diluted | 122,465 | 112,448 | 123,888 | 109,589 | |||||||||||
SOUTH JERSEY INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(In Thousands)
| Nine Months Ended September 30, | |||||||
| 2022 | 2021 | ||||||
| Net Cash Provided by Operating Activities | $ | 374,907 | $ | 273,927 | |||
| Cash Flows from Investing Activities: | |||||||
| Capital Expenditures | (462,969 | ) | (373,516 | ) | |||
| Investment in Contract Receivables | (17,828 | ) | (16,429 | ) | |||
| Proceeds from Contract Receivables | 10,115 | 10,494 | |||||
| Investment in Affiliates | (76,495 | ) | (13,155 | ) | |||
| Return of Investment in Affiliates | 12,138 | — | |||||
| Advances to Affiliates | (30,449 | ) | (26,615 | ) | |||
| Divestiture Working Capital Settlement | — | (267 | ) | ||||
| Investment in Subsidiary, Net of Cash Acquired | (21,034 | ) | (14,683 | ) | |||
| Net Cash Used in Investing Activities | (586,522 | ) | (434,171 | ) | |||
| Cash Flows from Financing Activities: | |||||||
| Net Repayments of Short-Term Credit Facilities | (130,800 | ) | (453,900 | ) | |||
| Proceeds from Issuance of Long-Term Debt | 400,000 | 460,000 | |||||
| Principal Repayments of Long-Term Debt | (58,175 | ) | (110,000 | ) | |||
| Payments for Issuance of Long-Term Debt | (2,306 | ) | (16,304 | ) | |||
| Dividends on Common Stock | (74,362 | ) | (64,460 | ) | |||
| Proceeds from Sale of Common Stock | 100,380 | 329,772 | |||||
| Payments for the Issuance of Common Stock | — | (2,318 | ) | ||||
| Capital Distributions to Noncontrolling Interests in Subsidiaries | (392 | ) | — | ||||
| Capital Contributions of Noncontrolling Interests in Subsidiaries | 1,368 | 1,072 | |||||
| Net Cash Provided by Financing Activities | 235,713 | 143,862 | |||||
| Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash | 24,098 | (16,382 | ) | ||||
| Cash, Cash Equivalents and Restricted Cash at Beginning of Period | 29,440 | 41,831 | |||||
| Cash, Cash Equivalents and Restricted Cash at End of Period | $ | 53,538 | $ | 25,449 | |||
SOUTH JERSEY INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(In Thousands)
| September 30, 2022 | December 31, 2021 | ||||||
| Assets | |||||||
| Property, Plant and Equipment: | |||||||
| Utility Plant, at original cost | $ | 5,995,962 | $ | 5,682,805 | |||
| Accumulated Depreciation | (1,024,072 | ) | (975,619 | ) | |||
| Nonutility Property and Equipment, at cost | 367,361 | 240,503 | |||||
| Accumulated Depreciation | (40,955 | ) | (35,367 | ) | |||
| Property, Plant and Equipment - Net | 5,298,296 | 4,912,322 | |||||
| Investments: | |||||||
| Available-for-Sale Securities | 37 | 37 | |||||
| Restricted | 775 | 686 | |||||
| Investment in Affiliates | 105,525 | 38,509 | |||||
| Total Investments | 106,337 | 39,232 | |||||
| Current Assets: | |||||||
| Cash and Cash Equivalents | 52,763 | 28,754 | |||||
| Accounts Receivable | 352,437 | 343,835 | |||||
| Unbilled Revenues | 22,021 | 87,357 | |||||
| Provision for Uncollectibles | (44,407 | ) | (41,763 | ) | |||
| Notes Receivable - Affiliates | 5,586 | 5,695 | |||||
| Natural Gas in Storage, average cost | 119,331 | 59,744 | |||||
| Materials and Supplies, average cost | 1,571 | 1,053 | |||||
| Prepaid Taxes | 37,479 | 33,977 | |||||
| Derivatives - Energy Related Assets | 187,126 | 95,041 | |||||
| Other Prepayments and Current Assets | 30,498 | 25,269 | |||||
| Total Current Assets | 764,405 | 638,962 | |||||
| Regulatory and Other Noncurrent Assets: | |||||||
| Regulatory Assets | 646,349 | 672,416 | |||||
| Derivatives - Energy Related Assets | 52,461 | 22,488 | |||||
| Notes Receivable - Affiliates | 93,818 | 64,254 | |||||
| Contract Receivables | 52,391 | 45,339 | |||||
| Goodwill | 706,960 | 706,960 | |||||
| Other | 196,931 | 206,699 | |||||
| Total Regulatory and Other Noncurrent Assets | 1,748,910 | 1,718,156 | |||||
| Total Assets | $ | 7,917,948 | $ | 7,308,672 | |||
| September 30, 2022 | December 31, 2021 | ||||||
| Capitalization and Liabilities | |||||||
| Equity: | |||||||
| Common Stock | $ | 153,081 | $ | 146,675 | |||
| Premium on Common Stock | 1,655,694 | 1,559,060 | |||||
| Treasury Stock (at par) | (319 | ) | (287 | ) | |||
| Accumulated Other Comprehensive Loss | (26,704 | ) | (26,729 | ) | |||
| Retained Earnings | 270,403 | 310,433 | |||||
| Total South Jersey Industries, Inc. Equity | 2,052,155 | 1,989,152 | |||||
| Noncontrolling Interests | 11,619 | 10,289 | |||||
| Total Equity | 2,063,774 | 1,999,441 | |||||
| Long-Term Debt | 3,566,763 | 3,189,009 | |||||
| Total Capitalization | 5,630,537 | 5,188,450 | |||||
| Current Liabilities: | |||||||
| Notes Payable | 203,200 | 334,000 | |||||
| Current Portion of Long-Term Debt | 31,075 | 66,076 | |||||
| Accounts Payable | 483,060 | 330,164 | |||||
| Customer Deposits and Credit Balances | 50,932 | 40,355 | |||||
| Environmental Remediation Costs | 41,583 | 40,905 | |||||
| Taxes Accrued | 2,276 | 4,937 | |||||
| Derivatives - Energy Related Liabilities | 159,805 | 60,002 | |||||
| Deferred Contract Revenues | 526 | 753 | |||||
| Derivatives - Other Current | 215 | 568 | |||||
| Dividends Payable | 37,964 | — | |||||
| Interest Accrued | 37,160 | 23,611 | |||||
| Other Current Liabilities | 38,762 | 54,311 | |||||
| Total Current Liabilities | 1,086,558 | 955,682 | |||||
| Deferred Credits and Other Noncurrent Liabilities: | |||||||
| Deferred Income Taxes - Net | 215,620 | 198,901 | |||||
| Environmental Remediation Costs | 122,329 | 125,176 | |||||
| Asset Retirement Obligations | 231,595 | 229,030 | |||||
| Derivatives - Energy Related Liabilities | 39,359 | 16,079 | |||||
| Derivatives - Other Noncurrent | 2,646 | 7,432 | |||||
| Regulatory Liabilities | 408,599 | 398,951 | |||||
| Other | 180,705 | 188,971 | |||||
| Total Deferred Credits and Other Noncurrent Liabilities | 1,200,853 | 1,164,540 | |||||
| Commitments and Contingencies (Note 11) | |||||||
| Total Capitalization and Liabilities | $ | 7,917,948 | $ | 7,308,672 | |||
FAQ
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