SJW Group Files 2023 Annual Report on Form 10-K

TL;DR

<b>SJW Group has filed its 2023 annual report (10-K) detailing its financial performance and operations for the fiscal year ending December 31, 2023.</b>

AI Summary

SJW GROUP (HTO) filed a Annual Report (10-K) with the SEC on February 23, 2024. SJW Group filed its 2023 Form 10-K on February 23, 2024. The filing covers the fiscal year ending December 31, 2023. The company's principal business is water supply, classified under SIC code 4941. SJW Group is incorporated in Delaware. The company's headquarters are located at 110 W. Taylor Street, San Jose, CA.

Why It Matters

For investors and stakeholders tracking SJW GROUP, this filing contains several important signals. This 10-K filing provides a comprehensive overview of SJW Group's financial health, operational activities, and strategic direction for the past fiscal year, which is crucial for investors to assess the company's performance and future prospects. As a regulated utility, SJW Group's operations are subject to specific regulatory frameworks, and this filing will contain details on compliance, rate-setting, and any potential regulatory changes that could impact its business.

Risk Assessment

Risk Level: medium — SJW GROUP shows moderate risk based on this filing. The company operates in the regulated water utility sector, which is subject to extensive government regulation and rate-setting processes that can impact profitability and operational flexibility.

Analyst Insight

Investors should review the detailed financial statements and risk factors in the 10-K to understand SJW Group's performance and potential challenges in the regulated utility market.

Key Numbers

• 20231231 — CONFORMED PERIOD OF REPORT (20231231)
• 20240223 — FILED AS OF DATE (20240223)
• 3.80 — EPS (0000766829 2023 FY FALSE 3.80)
• 0.20 — EPS (0000766829 2023 FY FALSE 3.80 0.20)
• 1.51 — EPS (0000766829 2023 FY FALSE 3.80 0.20 1.51)

Key Players & Entities

• SJW GROUP (company) — FILER
• SJW GROUP (company) — COMPANY CONFORMED NAME
• WATER SUPPLY (company) — STANDARD INDUSTRIAL CLASSIFICATION
• DE (company) — STATE OF INCORPORATION
• 110 W. TAYLOR STREET (company) — BUSINESS ADDRESS
• SAN JOSE (company) — BUSINESS ADDRESS CITY
• CA (company) — BUSINESS ADDRESS STATE
• SJW CORP (company) — FORMER COMPANY

FAQ

Key Dates

• 2023-12-31: Fiscal Year End — Covers the period reported in the 10-K.
• 2024-02-23: Filing Date — Date the 10-K was officially filed with the SEC.

Key Financial Figures

• $0.001 — ich registered Common Stock, par value $0.001 per share SJW New York Stock Exchange L
• $1,113.7 — 70% Authorized rate base (in millions) $1,113.7 $620.1 $43.3 $135.1 Estimated rate bas
• $620.1 — orized rate base (in millions) $1,113.7 $620.1 $43.3 $135.1 Estimated rate base at ye
• $43.3 — rate base (in millions) $1,113.7 $620.1 $43.3 $135.1 Estimated rate base at year-end
• $135.1 — ase (in millions) $1,113.7 $620.1 $43.3 $135.1 Estimated rate base at year-end (in mi
• $1,136.3 — ate base at year-end (in millions) (d) $1,136.3 $731.3 $106.5 $172.0 ________________
• $731.3 — at year-end (in millions) (d) $1,136.3 $731.3 $106.5 $172.0 _______________________
• $106.5 — -end (in millions) (d) $1,136.3 $731.3 $106.5 $172.0 ______________________________
• $172.0 — n millions) (d) $1,136.3 $731.3 $106.5 $172.0 ___________________________________
• $6.4 million — he request sought a revenue increase of $6.4 million or 1.61% in 2022. The application also
• $25.1 million — r an increase of revenue requirement by $25.1 million or 6.03% in 2022, $13.0 million or 2.94
• $13.0 million — ment by $25.1 million or 6.03% in 2022, $13.0 million or 2.94% in 2023, and $16.1 million or
• $16.1 million — 22, $13.0 million or 2.94% in 2023, and $16.1 million or 3.56% in 2024. The application inclu
• $18.2 million — pplication included requests to recover $18.2 million from balancing and memorandum accounts
• $350 million — randum accounts and authorization for a $350 million capital budget. Additionally, it furthe

Filing Documents

• sjw-20231231.htm (10-K) — 2390KB
• a2023q4ex34compositeamende.htm (EX-3.4) — 19KB
• a2023q410kexhibit211.htm (EX-21.1) — 8KB
• a2023q410kexhibit231.htm (EX-23.1) — 2KB
• a2023q410kexhibit311.htm (EX-31.1) — 9KB
• a2023q410kexhibit312.htm (EX-31.2) — 9KB
• a2023q410kexhibit321.htm (EX-32.1) — 5KB
• a2023q410kexhibit322.htm (EX-32.2) — 5KB
• a2023q4exex971clawbackpoli.htm (EX-97.1) — 29KB
• sjw-20231231_g1.jpg (GRAPHIC) — 83KB
• 0000766829-24-000023.txt (&nbsp;) — 13325KB
• sjw-20231231.xsd (EX-101.SCH) — 94KB
• sjw-20231231_cal.xml (EX-101.CAL) — 134KB
• sjw-20231231_def.xml (EX-101.DEF) — 496KB
• sjw-20231231_lab.xml (EX-101.LAB) — 1157KB
• sjw-20231231_pre.xml (EX-101.PRE) — 796KB
• sjw-20231231_htm.xml (XML) — 2069KB

Forward-Looking Statements

Forward-Looking Statements 3

Risk Factors

Item 1A. Risk Factors 15

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments 26 Item 1C. Cyberse curit y 26

Properties

Item 2. Properties 27

Legal Proceedings

Item 3. Legal Proceedings 28

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 28 PART II

Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 29

[Reserved]

Item 6. [Reserved] 29

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 30

Quantitative and Qualitative Disclosures About Market Risk

Item 7A. Quantitative and Qualitative Disclosures About Market Risk 44

Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data 45

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 85

Controls and Procedures

Item 9A. Controls and Procedures 85

Other Information

Item 9B. Other Information 86

Disclosure Regarding Foreign Jurisdictions that Prevent Inspection

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspection 86 PART III

Directors, Executive Officers and Corporate Governance

Item 10. Directors, Executive Officers and Corporate Governance 86

Executive Compensation

Item 11. Executive Compensation 86

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 86

Certain Relationships and Related Transactions, and Director Independence

Item 13. Certain Relationships and Related Transactions, and Director Independence 86

Principal Accountant Fees and Services

Item 14. Principal Accountant Fees and Services 86 PART IV

Exhibits and Financial Statement Schedules

Item 15. Exhibits and Financial Statement Schedules 87 Exhibit Index 88

Signatures

Signatures 94 PART I

Forward-Looking Statements

Forward-Looking Statements This report contains forward-looking statements within the meaning of the federal securities laws relating to future events and future results of SJW Group and its subsidiaries that are based on current expectations, estimates, forecasts, and projections about SJW Group and its subsidiaries and the industries in which SJW Group and its subsidiaries operate and the beliefs and assumptions of the management of SJW Group. Some of these forward-looking statements can be identified by the use of forward-looking words such as "believes," "expects," "may," "will," "should," "seeks," "approximately," "intends," "plans," "estimates," "projects," "strategy," or "anticipates," or the negative of those words or other comparable terminology. These forward-looking statements are only predictions and are subject to risks, uncertainties and assumptions that are difficult to predict. Therefore, actual results may differ materially and adversely from those expressed in any forward-looking statements. Important factors that could cause or contribute to such differences include, but are not limited to, those discussed in this report under Item 1A, "Risk Factors," and Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations," and elsewhere, and in other reports and documents SJW Group files with the Securities and Exchange Commission (the "SEC"), specifically the most recent Form 10-Q and reports on Form 8-K filed with the SEC, each as it may be amended from time to time. The accuracy of such statements is subject to a number of risks, uncertainties and assumptions including, but not limited to, the following factors: the effect of water, utility, environmental and other governmental policies and regulations, including actions concerning rates, authorized return on equity, authorized capital structures, capital expenditures and other decisions; changes in demand for water and other services; unanticipated weather cond

Business

Item 1. Business General Development of Business SJW Group was initially incorporated as SJW Corp. in the state of California on February 8, 1985. SJW Group is a holding company with four wholly owned subsidiaries: San Jose Water Company ("SJWC"), with its headquarters located at 110 West Taylor Street in San Jose, California 95110, was originally incorporated under the laws of the State of California in 1866. As part of a reorganization on February 8, 1985, SJWC became a wholly owned subsidiary of SJW Group. SJWC is a public utility in the business of providing water service in the metropolitan San Jose, California area. SJWNE LLC, a Delaware limited liability company, was formed in 2019, and is a wholly owned subsidiary of SJW Group. SJWNE LLC is a special purpose entity established to hold SJW Group's investment in Connecticut Water Service, Inc. Connecticut Water Service, Inc. with its headquarters located in Clinton, Connecticut, was incorporated in 1974 in the State of Connecticut. As part of the merger transaction between SJW Group and Connecticut Water Service, Inc. on October 9, 2019, Connecticut Water Service, Inc. and its subsidiaries ("CTWS") became a wholly owned subsidiary of SJWNE LLC. Connecticut Water Service, Inc. is a holding company with four wholly owned subsidiaries. The Connecticut Water Company ("CWC") and The Maine Water Company ("MWC") are public utilities in the business of providing water service throughout Connecticut and Maine. The remaining two subsidiaries are Chester Realty, Inc., a real estate company in Connecticut, and New England Water Utility Services, Inc. ("NEWUS"), which provides contract water and sewer operations and other water related services. In the third quarter of 2023, the corporate reorganization of our water services organization in Texas was completed. SJWTX Holdings, Inc. is the holding company for SJWTX, Inc., doing business as The Texas Water Company ("TWC"), Texas Water Operation Services, LLC ("TWOS") an

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View this 10-K filing on SEC EDGAR