Earnings Call Excerpt
South Jersey Industries (SJI)
Q4 2008 Earnings Call
February 26, 2008 1:30 pm ET
Executives
Ed Graham - Chairman and Chief Executive Officer
David Kindlick - Chief Financial Officer
Stephen Clark - Treasurer
Analysts
Ryan Rosenthal - Sidoti & Co.
James Lykins - Hilliard Lyons
Kathleen Vuchetich - W. H Reaves
Christopher Ellinghaus - Shields & Company
Darren Conti - Wachovia Securities
Igor Grinman - Zimmer Lucas Partners
Peter Hawk - Cowen Capital
Presentation
Operator
Good day, ladies and gentlemen, and welcome to the South Jersey Industries Fourth Quarter 2008 Earnings Conference Call. My name is Mary and I will be your coordinator for today. (Operator instructions). As a reminder, this conference is being recorded for replay purposes.
I would now like to turn the presentation over to your host for today’s call Mr. Ed Graham, Chairman and the CEO of South Jersey Industries. Please proceed, sir.
Ed Graham
Good afternoon. I would like to welcome you to South Jersey Industries year-end 2008 earnings conference call and webcast. Joining me today on the call are; Dave Kindlick, our Chief Financial Officer, and Steve Clark, our Treasurer.
During the course of this call, we may make various remarks about future expectations, plans and prospects for South Jersey Industries. These remarks constitute forward-looking statements for the purposes of the Safe Harbor provisions under the Private Securities Litigation Reform Act of 1995.
Actual results may differ materially from those indicated by these statements as a result of various important factors, including those discussed in the company’s Form 10-K filed with the SEC. Further, we assume no duty to update these statements should actual events differ from expectations.
Now let’s review the 2008 results. GAAP consolidated earnings from continuing operations reflected net income of $77.2 million or $2.59 per share compared with earnings of $62.7 million or $2.12 per share for the full year of 2008 and 2007, respectively. For the fourth quarter on a GAAP basis, SJI produced income from continuing operations of $21.9 million or $0.73 per share in 2008 compared with $16.1 million or $0.54 per share in 2007.
GAAP results reflect the impact of unrealized gains from mark-to-market accounting at our commodity asset management and marketing business as well as portions of certain interest rate swaps that we used in our energy production business, which had deemed ineffective at this time.
As discussed previously, when managing the company we measure performance based on economic earnings. Economic earnings eliminates unrealized gains and losses on both commodity and ineffective portions of interest rate derivative transactions and adjust for realized gains and losses attributed to hedges on inventory transactions.
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