NJR Reports Fiscal Year-to-Date and Third-Quarter Earnings Per Share.WALL, N.J. -- -New Jersey Resources (NYSE NYSE See: New York Stock Exchange : NJR NJR National Joint Registry (UK) NJR New Japan Radio Corp (Japan) NJR New Jersey Resources, Inc. (stock symbol) NJR Nonjob-Routed ): --NJR's fiscal year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. earnings increase 7.3 percent over last year to $3.25 per basic share due primarily to improved wholesale energy services results --Earnings guidance for fiscal 2006 increased to upper end of $2.75 to $2.85 per basic share range --NJR on track for record 15th year of increased earnings per share New Jersey Resources (NYSE: NJR) today reported a 7.3 percent increase in basic earnings per share for the nine months ended June June: see month. 30, 2006, to $3.25, compared with $3.03 last year. On a diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. basis, earnings per share for the nine months ended June 30, 2006, increased to $3.22, compared with $2.97 last year, an 8.4 percent increase. The increase in earnings for the 9-month period is due primarily to improved results at NJR Energy Services (NJRES), NJR's unregulated Adj. 1. unregulated - not regulated; not subject to rule or discipline; "unregulated off-shore fishing" regulated - controlled or governed according to rule or principle or law; "well regulated industries"; "houses with regulated temperature" 2. wholesale energy services subsidiary. Last year's 9-month earnings included a $.22 per basic share gain on the sale of a commercial office building and a charge of $.05 per basic share associated with an early retirement program for officers. Net of these items, NJR's earnings for the nine months ended June 30, 2005 were $79.2 million, or $2.87 per basic share and $2.81 per diluted share. NJR's fiscal 2006 earnings have been driven by NJRES, which saw earnings grow to $35.5 million, a 90 percent increase over $18.7 million for the same period last year. These strong results more than offset the impact of lower customer usage at New Jersey Natural Gas (NJNG NJNG New Jersey Natural Gas ), NJR's largest subsidiary. "Based on our results over the first nine months and our earnings guidance, we expect to achieve our 15th consecutive year of earnings growth -- a streak streak Colour of a mineral in its powdered form, usually obtained by rubbing the mineral on a hard, white surface (e.g., a tile of unglazed porcelain) to yield a streak of fine powder. that we believe is the longest in our industry," said Laurence Laurence is the surname or the given name of several people: Surname
All parties that have an interest, financial or otherwise, in a firm-stockholders, creditors, bondholders, employees, customers, management, the community, and the government. ." For the third quarter of fiscal 2006, NJR posted a loss of $.14 per basic and diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of compared with earnings of $.07 per basic and diluted earnings per share last year. The decrease in earnings for the 3-month period is attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk primarily to weaker results at both NJRES and NJNG, due primarily to the impact of seasonality and fixed costs fixed costs, n.pl the costs that do not change to meet fluctuations in enrollment or in use of services (e.g., salaries, rent, business license fees, and depreciation). associated with their capacity assets. Price Reduction and Customer Credits Announced Benefiting from a decline in wholesale commodity price and its hedging and incentive programs, on June 1, 2006, NJNG filed for a reduction in its Basic Gas Supply Service (BGSS BGSS Bedok Green Secondary School (Singapore) BGSS Battalion Ground Surveillance Section BGSS Biomedical Graduate Student Symposium (Case Western Reserve University, Ohio) ). The reduction would represent a decrease of 6.6 percent for the average residential heating customer. The BGSS charge reflects the portion of customers' bills that goes towards purchasing and interstate in·ter·state adj. Involving, existing between, or connecting two or more states. n. One of a system of highways extending between the major cities of the 48 contiguous United States. Noun 1. transporting of natural gas. Any changes do not impact NJNG's profits. The reduction will save an average customer, using 100 therms of natural gas per month, approximately $11 on their monthly bill. Additionally, in September's natural gas bills, NJNG will provide refunds totaling at least $20 million to residential and small commercial sales customers. The refunds will be based on individual customer usage from February February: see month. through August and are currently estimated to be approximately $49 for the average residential customer. This action was made possible by the warmer temperatures experienced this past winter, which lowered customer requirements and avoided the need to purchase more expensive incremental Additional or increased growth, bulk, quantity, number, or value; enlarged. Incremental cost is additional or increased cost of an item or service apart from its actual cost. natural gas supplies, and lower wholesale natural gas prices. NJNG will determine the exact amount of the refund TO REFUND. To pay back by the party who has received it, to the party who has paid it, money which ought not to have been paid. 2. On a deficiency of assets, executors and administrators cum testamento annexo, are entitled to have refunded to them legacies in late August. Financial and operating highlights included: --Higher Net Income and Basic Earnings per Share For the nine months ended June 30, 2006, NJR earned $90.5 million, or $3.25 per basic share, compared with $83.7 million, or $3.03 per basic share, last year. Last year's earnings for the 9-month period included a gain on the sale of a commercial office building of $.22 per basic share by NJR's commercial real estate subsidiary, Commercial Realty realty n. a short form of "real estate." (See: real estate) REALTY. An abstract of real, as distinguished from personalty. Realty relates to lands and tenements, rents or other hereditaments. Vide Real Property. and Resources (CR&R), and a charge of $.05 per basic share associated with a voluntary officer retirement program as part of an overall management restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). plan for the organization. The increase in earnings was due primarily to improved results at NJRES. NJR posted a loss of $4 million, or $.14 per basic share, for the three months ended June 30, 2006, compared with earnings of $1.8 million, or $.07 per basic share, for the same period last year. The lower earnings were due primarily to seasonal losses at NJRES and lower customer usage at NJNG, as previously forecast by management. NJNG earned $53.8 million for the 9-month period ended June 30, 2006, compared with $57 million last year. For the three months ended June 30, 2006, NJNG earned $1.7 million, compared with $3.9 million last year. The decrease in both periods was due primarily to the impact of lower customer usage per degree day. NJNG believes that the lower usage was due primarily to the pass-through pass-through n. 1. An opening between two rooms, especially a shelved space between a kitchen and dining room that is used for passing food. 2. A route through which something is permitted to pass. 3. of higher wholesale natural gas prices, which offset continued strong customer growth. NJRES reported a 90 percent increase in earnings for the nine months ended June 30, 2006 to $35.5 million, compared with $18.7 million last year. For the three months ended June 30, 2006, NJRES reported a loss of $6.4 million, compared with a loss of $3.3 million last year. --Continued Customer Growth at NJNG During the first nine months of fiscal 2006, NJNG added 7,871 new customers, 34 percent of which converted from other fuels. In addition, 175 existing customers added natural gas heat to their service. NJNG anticipates an annual customer growth rate of approximately 2.3 percent in fiscal 2006. About one-third of the anticipated new customers are expected to convert from other fuels. --Impact of Weather and Usage Weather during the nine months ended June 30, 2006 was 9.8 percent warmer than normal and 11.9 percent warmer than last year. Weather for the three months ended June 30, 2006, was 26.3 percent warmer than normal and 27.6 percent warmer than last year. "Normal" weather is based on 20-year average temperatures. The impact of the weather is offset by NJNG's weather-normalization clause (WNC WNC Western North Carolina WNC World News Connection (US government online news service) WNC Washington National Cathedral (Washington, DC) WNC Women's National Commission (UK) ), which is designed to smooth out year-to-year fluctuations on both NJNG's gross margin and customers' bills that may result from changing weather patterns. Included in the WNC is the assumption that usage per degree day is equal to the average over the last four years. As a result of the warmer-than-normal weather, NJNG accrued ac·crue v. ac·crued, ac·cru·ing, ac·crues v.intr. 1. To come to one as a gain, addition, or increment: interest accruing in my savings account. 2. $10.2 million of gross margin for the nine months ended June 30, 2006, to be collected from customers in the future. However, gross margin was negatively impacted by lower usage per degree day which was 5.6 percent lower than the 4-year average. NJNG believes that this resulted mainly from the impact of the pass-through of higher wholesale natural gas prices on customer usage. NJNG's gross margin is defined as natural gas revenues less natural gas costs; sales tax sales tax, levy on the sale of goods or services, generally calculated as a percentage of the selling price, and sometimes called a purchase tax. It is usually collected in the form of an extra charge by the retailer, who remits the tax to the government. ; a Transitional Energy Facilities Assessment (TEFA TEFA Technology Education Federation of Australia TEFA Tube Excited Fluorescence Analysis ), which is included in Energy and other taxes on the Consolidated Statements of Income; and regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. rider expenses. Management believes that gross margin provides a more meaningful basis for evaluating utility operations than revenue since natural gas costs, sales tax, TEFA and regulatory rider expenses are, subject to BPU BPU benzoylphenyl urea. approval, passed through to customers, and therefore, have no effect on gross margin. This definition of utility gross margin may not be comparable to the definition of gross margin used by others in the natural gas distribution business and other industries. Natural gas costs are charged to operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. on the basis of therm therm (therm) a unit of heat. The word has been used as equivalent to (a) large calorie; (b) small calorie; (c) 1000 large calories; (d) 100,000 British thermal units. sales at the prices approved by the New Jersey Board of Public Utilities The New Jersey Board of Public Utilities (NJBPU) is a regulatory authority in New Jersey charged with the responsibility of seeing that "safe, adequate, and proper utility services are provided at reasonable rates for customers in New Jersey. (BPU) through NJNG's BGSS tariff tariff, tax on imported and, more rarely, exported goods. It is also called a customs duty. Tariffs may be distinguished from other taxes in that their predominant purpose is not financial but economic—not to increase a nation's revenue but to protect domestic . The BGSS allows NJNG to recover natural gas costs. Sales tax is calculated at 6 percent on sales prior to July July: see month. 15, 2006 and 7 percent thereafter, of revenue and excludes sales to cogeneration cogeneration In power systems, use of steam for both power generation and heating. High-temperature, high-pressure steam from a boiler and superheater first passes through a turbine to produce power. facilities, other utilities, off-system sales and federal accounts. TEFA is calculated on a per-therm basis and excludes sales to cogeneration facilities, other utilities and off-system sales. Regulatory rider expenses are calculated on a per-therm basis. NJNG's gross margin also includes benefits received by shareowners under its BGSS incentive programs. In December December: see month. 2005, NJNG filed a proposal with the BPU, which would replace the existing WNC with a Conservation and Usage Adjustment (CUA (Common User Access) SAA specifications for user interfaces, which includes OS/2 PM and character-based formats of 3270 terminals. It is intended to provide a consistent look and feel across platforms and between applications. CUA - Common User Access ) clause that would capture variations related to weather and customer usage. The proposal would establish a benchmark A performance test of hardware and/or software. There are various programs that very accurately test the raw power of a single machine, the interaction in a single client/server system (one server/multiple clients) and the transactions per second in a transaction processing system. for customer usage. NJNG would compare actual results to the benchmark on an annual basis. Any adjustments, positive or negative, would be made in the following year. Discussions on the proposal with the BPU staff and the Department of Public Advocate Public Advocate is a governmental position similar to an ombudsman. Depending on the jurisdiction it could be an elected or an appointed position. , Division of Rate Counsel continue. If NJNG is not successful in receiving approval of the CUA proposal, it will consider other regulatory strategies to address this issue such as expanded incentive programs and/or and/or conj. Used to indicate that either or both of the items connected by it are involved. Usage Note: And/or is widely used in legal and business writing. the filing of a base rate case. --Incentive Programs Offer Benefits to Customers and Shareowners During the first nine months of the fiscal year, NJNG's gross margin-sharing incentive programs, which include off-system sales, capacity management, storage optimization optimization Field of applied mathematics whose principles and methods are used to solve quantitative problems in disciplines including physics, biology, engineering, and economics. and financial risk management programs, totaled 30 billion cubic feet (Bcf) and $6.5 million of gross margin, compared with 38.7 Bcf and $4.8 million of gross margin for the same period last year. The increase in gross margin was due primarily to the storage incentive and financial risk management programs, both of which benefited from the volatile wholesale natural gas commodity market. For the three months ended June 30, 2006, these programs totaled 8.3 Bcf and $481,000 of gross margin, compared with 10.1 Bcf and $799,000 of gross margin for the same period last year. The decrease in gross margin in the quarter was due primarily to timing differences in the storage incentive program. NJNG shares the gross margin earned from these incentive programs with customers and shareowners according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. gross margin-sharing formulas. In April 2006, the BPU authorized au·thor·ize tr.v. au·thor·ized, au·thor·iz·ing, au·thor·iz·es 1. To grant authority or power to. 2. To give permission for; sanction: an extension of the incentive programs through October October: see month. 2007. This fiscal year, customers have saved approximately $32 million in natural gas costs through these programs. Since the establishment of these incentive programs in 1992, NJNG customers have saved over $297 million on their natural gas bills, or approximately 4 percent annually. --Wholesale Energy Services Experiences Seasonal Loss NJRES earned $35.5 million during the first nine months of the fiscal year compared with $18.7 million last year. NJRES has developed a portfolio of storage and transportation capacity in the Northeast, Gulf Coast, Mid-Continent, Appalachia Appalachia, region: see Appalachian Mountains. Appalachia West Virginia coal mining region known for its abysmal poverty. [Am. Hist.: NCE, 160] See : Poverty and Eastern Canada Eastern Canada (also the Eastern provinces) is the region of Canada generally considered to be east of Manitoba, consisting of the following provinces:
For the three months ended June 30, 2006, NJRES had a loss of $6.4 million, compared with a loss of $3.3 million last year. The larger loss in the quarter reflects the increased amount of demand costs and interest expense associated with NJRES' growing portfolio of storage and transportation capacity contracts. Gross margin, defined as natural gas revenues and management fees less natural gas costs, from this portfolio is generally greater during the winter months, while the fixed costs of these assets are spread throughout the year. Therefore, consistent with this seasonality, a loss in the third and fourth fiscal quarters is anticipated. Accordingly, the results for the nine months are not indicative of the results for the fiscal year. --NJRHS and Other This business segment consists of NJR Home Services (NJRHS), which provides service, sales and installation of appliances to nearly 147,000 customers; CR&R, which develops commercial real estate; and NJR Energy, which consists primarily of a 5.53 percent equity investment in Iroquois Iroquois Any of the North American Indian tribes speaking a language of the Iroquoian family and living at the time of European contact in a continuous territory around Lakes Ontario, Huron, and Erie. Gas Transmission System, L.P. Earnings for the nine months ended June 30, 2006, were $1.1 million, compared with $8 million last year. Last year's 9-month earnings included a gain on the sale of a commercial office building of approximately $6 million. Net of this gain and this segment's portion of the early retirement charge, earnings for the nine months ended June 30, 2005 were $2.6 million. For the three months ended June 30, 2006, this segment earned $724,000, compared with earnings of $1.3 million last year. The decrease in the three months was due primarily to higher corporate expenses and last year's 3-month earnings including an after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. gain of $210,000 on the sale of real estate. --Share Repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. Update NJR purchased 305,100 shares under the share repurchase plan share repurchase plan A corporation's plan for buying back a predetermined number of its own shares in the open market. Institution of a share repurchase plan derives from management's view that the company has limited outside investment opportunities and in the nine months ended June 30, 2006. In January January: see month. 2006, the NJR Board of Directors authorized an increase in the company's share repurchase plan from 2.5 million to 3.5 million shares. The plan authorizes NJR to purchase its shares on the open market or in negotiated transactions, based on market and other conditions. Since the plan began in September September: see month. 1996, NJR has invested over $94 million to repurchase 2.46 million shares. Fiscal 2006 Earnings Guidance Assuming a continuation of lower customer usage, stable economic conditions, continued customer growth at NJNG, continued volatility in the wholesale natural gas markets at NJRES, the impact of seasonality on the company's businesses and subject to the factors discussed below under "Forward-Looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. ," NJR estimates that earnings for fiscal 2006 will be toward the upper end of the $2.75-$2.85 per basic share range. Webcast Information NJR will host a live webcast to discuss the quarter's financial results today at 2 p.m. ET. To listen to the call, logon See login. 1. (jargon) logon - login. 2. (networking) logon - In ACF/VTAM, an unformatted session-initiation request for a session between two logical units. to NJR's Web site, njliving.com, and select "Investor Relations Investor relations The process by which the corporation communicates with its investors. ," then click just below the microphone microphone, device for converting sound into electrical energy, used in radio broadcasting, recording, and sound amplifying systems. Its basic component is a diaphragm that responds to the pressure or particle velocity of sound waves. on the right side of the Investor Relations home page. About New Jersey Resources New Jersey Resources (NYSE:NJR), a Fortune 1000 company and a member of the Forbes Forbes , B(ertie) C(harles) 1880-1954. American publisher and businessman who founded and edited (1916-1954) Forbes magazine. His son Malcolm Stevenson Forbes Platinum platinum (plăt`ənəm), metallic chemical element; symbol Pt; at. no. 78; at. wt. 195.08; m.p. 1,772°C;; b.p. 3,827±100°C;; sp. gr. 21.45 at 20°C;; valence +2 or +4. 400, provides reliable retail and wholesale energy services to customers in New Jersey and in states from the Gulf Coast to New England New England, name applied to the region comprising six states of the NE United States—Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, and Connecticut. The region is thought to have been so named by Capt. , and Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of . Its principal subsidiary, New Jersey Natural Gas, is one of the fastest-growing local distribution companies in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , serving more than 468,000 customers in central and northern New Jersey. Other major NJR subsidiaries include NJR Energy Services and NJR Home Services. NJR Energy Services provides customer service and management of natural gas storage and capacity assets in the unregulated energy services market. NJR Home Services offers retail customers heating, air conditioning air conditioning, mechanical process for controlling the humidity, temperature, cleanliness, and circulation of air in buildings and rooms. Indoor air is conditioned and regulated to maintain the temperature-humidity ratio that is most comfortable and healthful. and appliance A stand-alone hardware device or software environment dedicated to a specific task. See hardware appliance and software appliance. services. NJR's progress is a tribute to the more than 5,000 dedicated employees who have shared their expertise and focus on quality through more than 50 years of serving customers and the community to make NJR a leader in the competitive energy marketplace. For more information, visit NJR's Web site at njliving.com. Forward-Looking Statements This news release contains estimates, earnings guidance and other forward-looking statements within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. NJR cautions readers that the assumptions forming the basis for forward-looking statements include many factors that are beyond NJR's ability to control or estimate precisely, such as estimates of future market conditions and the behavior of other market participants The term market participant is used in United States constitutional law to describe a U.S. State which is acting as a producer or supplier of a marketable good or service. When a state is acting in such a role, it may permissibly discriminate against non-residents. . Other factors that could cause actual results, including gross margin, earnings and customer growth, to differ materially from the company's expectations include, but are not limited to, weather, economic conditions and demographic changes in NJNG's service territory, the rate of customer growth, volatility of natural gas commodity prices and its impact on customer usage and NJRES operations, the impact of the company's risk management efforts, including commercial and wholesale credit risks, the impact of regulation (including the regulation of rates), fluctuations in energy-related commodity prices, conversion activity, other marketing efforts, actual energy usage patterns of NJNG's customers, the pace of deregulation Deregulation The reduction or elimination of government power in a particular industry, usually enacted to create more competition within the industry. Notes: Traditional areas that have been deregulated are the telephone and airline industries. of retail gas markets, access to adequate supplies of natural gas, the regulatory and pricing policies of federal and state regulatory agencies state regulatory agency A state body responsible for establishing professional standards, and for certifying professionals or organizations through appropriate documentation , changes due to legislation at the federal and state level, the availability of an adequate number of appropriate counterparties Counterparties The parties on either side of an interest rate swap or a currency, equity or commodity swap, or to an options or futures position. , sufficient liquidity in the energy trading market and continued access to the capital markets, the disallowance dis·al·low tr.v. dis·al·lowed, dis·al·low·ing, dis·al·lows 1. To refuse to allow: "[The government] of recovery of environmental-related expenditures and other regulatory changes, environmental and other litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. and other uncertainties. More detailed information about these factors is set forth in NJR's filings with the Securities and Exchange Commission (SEC), including NJR's annual report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. filed on November November: see month. 29, 2005 and on NJR's quarterly report filed on Form 10-Q Form 10-Q See 10-Q. filed on May 4, 2006. NJR's SEC documents are available at www.sec.gov See .gov and GovNet. (networking) gov - The top-level domain for US government bodies. . NJR does not, by including this paragraph, assume any obligation to review or revise any particular forward-looking statement referenced herein in light of future events.
NEW JERSEY RESOURCES
CONSOLIDATED FINANCIAL RESULTS
(Unaudited) Three Months Ended Nine Months Ended
Thousands, except per June 30, June 30,
share data
2006 2005 2006 2005
--------------------------------- --------- - ----------- -----------
Operating Revenues $536,103 $544,280 $2,765,101 $2,463,325
Net (Loss) Income $(3,975) $1,835 $90,490 $83,702
(Loss) Earnings Per
Common Share
Basic $(.14) $.07 $3.25 $3.03
Diluted $(.14) $.07 $3.22 $2.97
Average Shares
Outstanding
Basic 28,055 27,468 27,809 27,616
Diluted 28,396 28,079 28,139 28,198
NEW JERSEY RESOURCES
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(Thousands, except per share data)
---------------------------------------------------------------------
Three Months Ended Nine Months Ended
June 30, June 30,
2006 2005 2006 2005
---------------------------------------------------------------------
OPERATING REVENUES $536,103 $544,280 $2,765,101 $2,463,325
---------------------------------------------------------------------
OPERATING EXPENSES
Gas purchases 489,677 492,036 2,410,840 2,133,386
Operation and
maintenance 28,657 24,298 86,160 77,834
Regulatory rider
expenses 4,005 4,793 25,868 28,707
Depreciation and
amortization 8,735 8,424 25,923 25,135
Energy and other taxes 8,428 8,878 53,098 50,489
---------------------------------------------------------------------
Total operating expenses 539,502 538,429 2,601,889 2,315,551
---------------------------------------------------------------------
OPERATING (LOSS) INCOME (3,399) 5,851 163,212 147,774
Other income 1,769 1,659 4,031 4,823
Interest charges, net 5,358 4,897 18,014 14,968
---------------------------------------------------------------------
(LOSS) INCOME BEFORE
INCOME TAXES (6,988) 2,613 149,229 137,629
Income tax (benefit)
provision (3,013) 778 58,739 53,927
---------------------------------------------------------------------
NET (LOSS) INCOME $(3,975) $1,835 $90,490 $83,702
---------------------------------------------------------------------
(LOSS) EARNINGS PER
COMMON SHARE
BASIC $(0.14) $0.07 $3.25 $3.03
DILUTED $(0.14) $0.07 $3.22 $2.97
=====================================================================
DIVIDENDS PER COMMON SHARE $0.36 $0.34 $1.08 $1.02
=====================================================================
AVERAGE SHARES
OUTSTANDING
BASIC 28,055 27,468 27,809 27,616
DILUTED 28,396 28,079 28,139 28,198
=====================================================================
NEW JERSEY RESOURCES
====================================================================
Three Months Ended Nine Months Ended
(Unaudited) June 30, June 30,
(Thousands, except per
share data) 2006 2005 2006 2005
--------------------------------------------------------------------
Operating Revenues
New Jersey Natural
Gas $163,914 $174,761 $1,029,666 $957,807
NJR Energy
Services 365,373 362,727 1,716,093 1,476,519
NJR Home Services
and Other 6,884 6,816 19,547 29,072
---------------------------------------------
Sub-total 536,171 544,304 2,765,306 2,463,398
---------------------------------------------
Intercompany
Eliminations (68) (24) (205) (73)
---------------------------------------------
Total $536,103 $544,280 $2,765,101 $2,463,325
=============================================
--------------------------------------------------------------------
Operating Income (Loss)
New Jersey Natural
Gas $5,365 $8,865 $96,305 $101,014
NJR Energy Services (9,906) (4,926) 65,257 33,817
NJR Home Services
and Other 1,142 1,912 1,650 12,943
---------------------------------------------
Total $(3,399) $5,851 $163,212 $147,774
=============================================
--------------------------------------------------------------------
Net Income (Loss)
New Jersey Natural
Gas $1,698 $3,868 $53,890 $56,959
NJR Energy Services (6,397) (3,314) 35,499 18,692
NJR Home Services
and Other 724 1,281 1,101 8,051
---------------------------------------------
Total $(3,975) $1,835 $90,490 $83,702
=============================================
--------------------------------------------------------------------
Throughput (Bcf)
NJNG, Core Customers 9.0 11.1 56.8 64.3
NJNG, Off
System/Capacity
Management 8.3 10.1 30.0 38.7
NJRES Fuel Mgmt.
and Wholesale Sales 50.7 49.6 170.3 202.2
---------------------------------------------
Total 68.0 70.8 257.1 305.2
=============================================
--------------------------------------------------------------------
Common Stock Data
Yield at June 30 3.1% 2.8% 3.1% 2.8%
Market Price
High $47.38 $48.42 $47.38 $48.42
Low $42.85 $42.63 $40.68 $40.54
Close at
June 30 $46.78 $48.25 $46.78 $48.25
Shares Out. at
June 30 28,074 27,485 28,074 27,485
Market Cap. at
June 30 $1,313,302 $1,326,151 $1,313,302 $1,326,151
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NEW JERSEY NATURAL GAS
====================================================================
Three Months Ended Nine Months Ended
(Unaudited) June 30, June 30,
(Thousands, except
customer & weather
data) 2006 2005 2006 2005
--------------------------------------------------------------------
Operating Revenues
Residential $76,567 $85,247 $562,832 $521,486
Commercial,
Industrial &
Other 26,376 20,405 162,263 131,138
Firm
Transportation 6,856 5,669 23,527 25,393
---------------------------------------------
Total Utility Firm
Revenues 109,799 111,321 748,622 678,017
Interruptible 2,145 3,232 6,792 9,343
---------------------------------------------
Total System Revenues 111,944 114,553 755,414 687,360
---------------------------------------------
Incentive
Programs 51,970 60,208 274,252 270,447
---------------------------------------------
TOTAL REVENUES $163,914 $174,761 $1,029,666 $957,807
=============================================
--------------------------------------------------------------------
Utility Gross Margin
and Operating Income
Residential $24,000 $25,188 $133,961 $134,510
Commercial,
Industrial &
Other 4,571 4,798 25,516 25,621
Firm
Transportation 5,516 4,660 18,377 19,465
---------------------------------------------
Total Utility Firm
Margin 34,087 34,646 177,854 179,596
Interruptible 229 264 757 831
---------------------------------------------
Total System Margin 34,316 34,910 178,611 180,427
---------------------------------------------
Incentive
Programs 481 799 6,527 4,807
---------------------------------------------
TOTAL UTILITY GROSS
MARGIN 34,797 35,709 185,138 185,234
---------------------------------------------
Operation and
maintenance
expense 20,199 17,964 61,170 57,461
Depreciation
and
amortization 8,580 8,243 25,480 24,547
Other taxes not
reflected in
gross margin 653 637 2,183 2,212
---------------------------------------------
OPERATING INCOME $5,365 $8,865 $96,305 $101,014
=============================================
--------------------------------------------------------------------
Throughput (Bcf)
Residential 4.3 6.2 36.4 40.6
Commercial,
Industrial &
Other 1.6 1.5 9.6 10.4
Firm
Transportation 1.7 1.2 6.6 7.0
---------------------------------------------
Total Firm Throughput 7.6 8.9 52.6 58.0
Interruptible 1.4 2.2 4.2 6.3
---------------------------------------------
Total System Throughput 9.0 11.1 56.8 64.3
---------------------------------------------
Incentive
Programs 8.3 10.1 30.0 38.7
---------------------------------------------
TOTAL THROUGHPUT 17.3 21.2 86.8 103.0
=============================================
--------------------------------------------------------------------
Customers
Residential 427,655 417,639 427,655 417,639
Commercial,
Industrial &
Other 29,582 29,234 29,582 29,234
Firm
Transportation 12,186 14,622 12,186 14,622
---------------------------------------------
Total Firm Customers 469,423 461,495 469,423 461,495
Interruptible 48 50 48 50
---------------------------------------------
Total System Customers 469,471 461,545 469,471 461,545
---------------------------------------------
Incentive
Programs 35 36 35 36
---------------------------------------------
TOTAL CUSTOMERS 469,506 461,581 469,506 461,581
=============================================
NEW JERSEY NATURAL GAS
====================================================================
Three Months Ended Nine Months Ended
(Unaudited) June 30, June 30,
(Thousands, except
customer & weather
data) 2006 2005 2006 2005
--------------------------------------------------------------------
Degree Days
Actual 423 584 4,329 4,911
Normal 574 584 4,799 4,803
---------------------------------------------
Percent of
Normal 73.7% 100.0% 90.2% 102.2%
---------------------------------------------
NJR ENERGY SERVICES
====================================================================
Operating Revenues $365,373 $362,727 $1,716,093 $1,476,519
Gas Purchases 371,589 365,136 1,640,970 1,435,740
---------------------------------------------
Gross Margin $(6,216) $(2,409) $75,123 $40,779
=============================================
Operating (Loss) Income $(9,906) $(4,926) $65,257 $33,817
=============================================
Net (Loss) Income $(6,397) $(3,314) $35,499 $18,692
=============================================
Gas Sold and Managed
(Bcf) 50.7 49.6 170.3 202.2
=============================================
NJR HOME SERVICES AND OTHER
====================================================================
Operating Revenues $6,884 $6,816 $19,547 $29,072
=============================================
Operating Income $1,142 $1,912 $1,650 $12,943
=============================================
Net Income $724 $1,281 $1,101 $8,051
=============================================
Total Customers at June
30 146,655 144,463 146,655 144,463
=============================================
NEW JERSEY RESOURCES
ADJUSTED NET INCOME AND EARNINGS PER SHARE RECONCILIATION
Provided below is a reconciliation of as reported and as adjusted
information for Net Income and basic and diluted earnings per share
for the nine months ended June 30, 2005. This reconciliation reflects
the impact of a gain on the sale of a commercial office building and a
charge related to an early retirement program for officers.
Management believes that this reconciliation is needed due to the
unusual nature of the two items described above and that they are not
indicative of core results. It also provides for a more consistent
comparison for year-over-year results.
(Unaudited) Nine Months Ended
(Thousands, except per share data) June 30, 2005
--------------------------------------------------------------------
NJNG NJRES NJRHS and Total
Other
--------------------------------------------------------------------
Net Income, as reported $56,959 $18,692 $8,051 $83,702
Exclude:
Gain on sale of commercial
office building (5,972) (5,972)
Charge for early
retirement program 915 8 569 1,492
-------- -------- ------- --------
Net Income, as adjusted $57,874 $18,700 $2,648 $79,222
======== ======== ======= ========
--------------------------------------------------------------------
Earnings per share basic, as reported $3.03
Exclude:
Gain on sale of commercial
office building (.22)
Charge for early retirement
program .05
--------
Earnings per share basic, as
adjusted * $2.87
========
--------------------------------------------------------------------
Earnings per share diluted, as
reported $2.97
Exclude:
Gain on sale of commercial
office building (.21)
Charge for early retirement
program .05
--------
Earnings per share diluted, as
adjusted $2.81
========
--------------------------------------------------------------------
*Amount does not foot due to rounding.
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