展品99.1
sjw group宣布2024年第三季度财务业绩
•该季度每股收益为$1.17，按照GAAP计算，年增$0.04；调整后的每股收益（非GAAP）为$1.18，按照调整后计算，年增$0.05
•到2024年第三季，已投入制造行业约25200万美元，占2024年资本预算的约76%。
•与加州公用事业委员会在圣荷西水务公司2025至2027年一般费率案（GRC）中提交的与公共辩护办公室的和解协议。
•2024年GAAP指引为每股收益$2.65至$2.75；重申2024年调整后每股收益（非GAAP）指引范围为$2.68至$2.78
•宣布每股普通股现金股息$0.40
加州圣荷西 - 2024年10月28日 — sjw group（纽交所：SJW）今天公布了截至2024年9月30日第三季度的财务业绩报告。
「我们对本季的财务业绩感到满意，这展示了我们全国平台和地方水务业务实力相结合的优势，」sjw group主席、首席执行官和总裁Eric W. Thornburg表示。「我们继续通过在我们足迹范围内的水供应和制造行业投资2,5200万美元，或超过我们2024年资本预算的四分之三，来实施增长策略。我们还与加利福尼亚公用事业委员会提交了一份反映与公共倡导办公室在我们加利福尼亚普遍费率案件中几乎所有问题上达成解决的和解协议，并在缅因提交了水制造行业收费申请，以及在德克萨斯提交了第二个系统改善费用申请。」
「我还想表扬我们全国各地的团队对 SJW 集团的认可 新闻周刊 成为「美国最绿色公司 2025」之一。在康涅狄格州，我们的当地营运被认为顶级工作场所 哈特福德·库兰特 连续第四年，」桑堡补充。「我们强劲的营运表现和策略性执行使我们能够继续取得成功，因为我们在全国范围内实现我们为 160万名客户和社区提供高质量可靠的水服务的承诺。」
第三季度营运成果
依照美国通用会计准则（GAAP）为2024年9月30日结束的季度准备的净利润为3870万美元，每股摊薄后收益1.17美元，相较于去年同季度的3620万美元，或1.13美元，增长了7%。在调整合并及收购活动支出和房地产交易后，sjw group在2024年第三季度的调整后净利润（非GAAP）为3900万美元，每股摊薄后1.18美元（非GAAP），调整后每股收益比去年同期的1.13美元调整后每股收益增长了4%。
调整后的净利润是一项非通用会计原则衡量，代表除特殊项目外的通用会计原则净利润。2024年第四季的通用会计原则净利润与调整后的净利润之间的差异主要是由于并购活动所产生的支出，金额为30万美元，扣除税后净额。该季度通用会计原则净利润与调整后的净利润的全面调和表包含在本资讯公告末尾的表格中。
第三季度的营业收入为22510万美元，较去年同期的20480万美元增加。增加主要是由于1700万美元的费率上涨，主要在加利福尼亚州和康涅狄格州。
截至2024年9月30日的季度营业费用为16670万美元，比去年同期的14820万美元增加12%。营业费用变化主要反映：
•与去年同季相比，水生产费用增加了1310万美元，主要是由于购水和地下水提取费用上升；
•维护成本增加210万美元，主要是因为与其他人签订的工作相关开支；
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•行政和一般性支出增加了180万美元，主要是由于合同工作增加和通胀上升，部分抵销施工活动的拨款增加；和
•折旧和摊销增加100万美元，主要是由于公用事业厂房的增加。
截至2024年和2023年第三季度，合并有效所得税率分别约为5％和11％。2024年期间较低的有效税率主要是由于与修理扣除有关的税务会计方法变更。
本年度至今运营结果
2024年9月30日止九个月根据GAAP编制的净利润为7,100万美元，或每股2.18美元的摊薄后每股收益，较去年同期的6,600万美元，或每股2.09美元的摊薄后每股收益增长8%。截至2024年9月30日止九个月的非GAAP调整后净利润为7,200万美元，或每股2.21美元的非GAAP摊薄后每股收益，较去年同期的6,500万美元，或每股2.06美元的调整后摊薄每股收益增长11%。
调整后的净利润是一个非按照通用会计准则衡量的指标，表示通用会计准则净利润中排除特殊项目。2024年9月30日期间的通用会计准则净利润与调整后的净利润之间的差异主要是由于房地产业投资的70万美元净损失（税后净额），以及并购活动产生的30万美元开支（税后净额）。2024年9月30日结束的九个月内，通用会计准则净利润与调整后的净利润的全部调节明细，将在本资讯发布的最后附表中列出。
本年截至目前的营业收入为55060万美元，较去年同期的49900万美元增加。这主要是由于加州主要是4000万美元的价格上涨，客户使用量较高的480万美元， 以及在德州主要是240万美元的客户增长。 德州服务区目前正经历造成客户减少用水量的干旱条件。这些用水限制将影响2024年剩余时间的营业收入。
2024年前九个月的营业费用为$42380万，比去年同期的$38610万增加了10%。营业费用的这一变化主要反映了：
•与去年同期相比，主要是由于更高的购水和地下水提取费用，导致水生产费用增加了2,640万美元；
•折旧和摊销增加了530万美元，主要是由于公用事业厂房的增加；以及
•维护成本增加430万美元，主要是由于与他人合同工作相关的支出增加、安防费用增加，以及由于康涅狄格州GRC的最终决定而对某些规管资产进行调整。
2024年前九个月的有效合并所得税率约为10％，2023年则为6％。2024年期间较高的有效税率主要是由于2024年较低的离散税收效益。
Capital Expenditures
Through the first nine months of 2024, SJW Group invested $252 million in infrastructure and water supply. The company has a capital expenditures budget of $332 million in 2024 and plans to invest more than $1.6 billion in capital over the next five years to build and maintain its water and wastewater operations, including approximately $230 million to install treatment for per- and polyfluoroalkyl substances (PFAS), subject to regulatory approvals and availability of funding.
San Jose Water's installation of a $100 million advanced metering infrastructure (AMI) project continued in the third quarter. The project was approved by the California Public Utilities Commission (CPUC) in 2022 and is separate from the GRC capital budget approved by the CPUC. The bulk of the AMI installation is expected to be between 2024 and 2026 with approximately $27 million to be expended in 2024.
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Rate Activity and Regulatory Updates
California
On August 19, 2024, San Jose Water and the Public Advocates Office filed a settlement agreement with the CPUC on all but two policy issues in our 2025 through 2027 GRC application.
The settlement agreement enables San Jose Water to invest $450 million over the next three years in drinking water infrastructure and provides for a total revenue increase of $53.1 million over current authorized revenues over three years. The step increases in authorized revenue would be 3.91% in 2025, 2.55% in 2026, and 2.98% in 2027. In addition to the capital expenditure plan and revenue increase, the settlement agreement provides for greater revenue recovery through the service charge and further aligns authorized to actual usage through a lower sales forecast. The two policy items to be fully litigated are related to chemical and waste disposal costs in the full cost balancing account and adjusting the service charge calculation.
A decision on the settlement agreement and the two litigated items is expected in the fourth quarter of 2024, and new rates are anticipated to be effective on January 1, 2025.
Connecticut
On September 18, 2024, the Connecticut Public Utilities Regulatory Authority authorized a $4.3 million, or 3.43%, increase in annualized revenues for $41.9 million in projects completed through the Water Infrastructure and Conservation Adjustment (WICA) infrastructure recovery mechanism. The WICA surcharge increase was effective on October 1, 2024.
Maine
On October 25, 2024, Maine Water filed a GRC application for the Camden-Rockland Division with the Maine Public Utilities Commission (MPUC) requesting an increase in annual revenues of approximately $1.1 million, or 15.9%, over current authorized revenues. A decision is expected in the second quarter of 2025.
In the third quarter, the MPUC authorized an increase of $52,000 in annualized revenue for completed water main replacement projects in two of Maine Water's divisions through the Water Infrastructure Charge (WISC) infrastructure recovery mechanism. Maine Water also filed a WISC application in a third division requesting $46,000 in annualized revenue. A decision is expected in the fourth quarter of 2024.
Maine Water intends to file a petition with the MPUC before the end of this year regarding consolidation of tariffs in the company's ten rate districts. Such a move would streamline GRC and WISC filings that are currently done on a district-by-district basis. The company typically files two to four GRC and WISC filings each year. This will improve administrative efficiency, reduce regulatory lag, and ease the burden on regulatory agencies and their staffs.
Texas
On September 12, 2024, Texas Water filed an application with the Public Utilities Commission of Texas to increase the annual revenue from its System Infrastructure Charge (SIC) surcharges by $4.3 million. The SIC application covers $39.4 million in completed water and $1.8 million in completed wastewater projects. A decision is targeted in the first half of 2025.
Force for Good
In October 2024, SJW Group was recognized by Newsweek as one of America's Greenest Companies 2025, one of only two water utilities to make the list. The award highlights U.S. companies committed to reducing their environmental impact in key areas like greenhouse gas emissions, water management and waste reduction. According to Newsweek, only companies that meet the European Union's stringent sustainability criteria —considered the most advanced globally — were eligible for consideration.
In September 2024, Connecticut Water was recognized by the Hartford Courant as a top regional workplace for the fourth consecutive year. The recognition is based on an anonymous survey of company employees by an independent third party on topics such as culture, career development, and purpose and values.
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2024 Guidance
The following table includes a reconciliation of the company's 2024 diluted EPS guidance (GAAP) to adjusted diluted EPS guidance (non-GAAP):
| 2024 Earnings Guidance | |||||||||||||||||
Estimated Diluted EPS Guidance on a GAAP Basis | $ | 2.65 | to | 2.75 | |||||||||||||
| Adjustments: | |||||||||||||||||
Loss on sale of real estate investments, net of tax | 0.02 | 0.02 | |||||||||||||||
Expense for merger and acquisition activities | 0.01 | 0.01 | |||||||||||||||
Adjusted EPS Guidance (non-GAAP) | $ | 2.68 | to | 2.78 | |||||||||||||
In addition, we reiterate our non-linear long-term diluted EPS growth of 5% to 7%, anchored off of 2022's diluted EPS of $2.43.
Our guidance is subject to risks and uncertainties, including, without limitation, those factors outlined in the Forward-Looking Statements of this release and the Risk Factors section of the company’s annual and quarterly reports filed with the Securities and Exchange Commission.
Dividend
On October 25, 2024, the directors of SJW Group declared a quarterly cash dividend on common stock of $0.40 per share, payable on December 2, 2024, to shareholders of record at the close of business on November 4, 2024. Dividends have been paid on SJW Group’s and its predecessor’s common stock for more than 80 consecutive years. For 56 consecutive years, our stockholders have received an increase in their calendar year dividend, which places us in an exclusive group of companies.
Stock Market Listing
SJW Group intends to transfer its listing from the New York Stock Exchange (NYSE) to the Nasdaq Stock Market (Nasdaq) on November 7, 2024, after market close. SJW Group expects to commence trading as a Nasdaq-listed company upon market open on November 8, 2024, and will continue trading under the ticker symbol “SJW". The transfer to Nasdaq provides SJW Group increased investor and ESG support services and certain cost savings.
Financial Results Call Information
Eric W. Thornburg, president, chief executive officer, and board chair, and Andrew F. Walters, chief financial officer, treasurer, and interim principal accounting officer, will review results for the third quarter of 2024 in a live webcast presentation at 11 a.m. Pacific Daylight Time, or 2 p.m. Eastern Daylight Time, on Monday, October 28, 2024.
Interested parties may access the webcast and related presentation materials at the website www.sjwgroup.com. An archive of the webcast will be available until January 20, 2025.
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Non-GAAP Financial Measures
SJW Group's net income and diluted EPS are prepared in accordance with GAAP and represent the earnings as reported to the Securities and Exchange Commission. Adjusted net income and Adjusted diluted EPS are non-GAAP financial measures representing GAAP earnings adjusted to exclude the effects of non-utility real estate transactions and costs associated with mergers and acquisition activities, if any. These non-GAAP financial measures are provided as additional information for investors to evaluate the performance of SJW Group's business activities excluding these items. Management also believes these non-GAAP financial measures help investors and analysts better understand our actual results compared to our guidance on a non-GAAP basis. SJW Group uses adjusted net income and/or adjusted diluted EPS as the primary performance measurements when communicating with analysts and investors regarding our outlook and results. Adjusted net income and Adjusted diluted EPS are also used internally to measure performance. However, these non-GAAP financial measures may be different from non-GAAP financial measures used by other companies, even when the same or similarly titled terms are used to identify such measures, limiting their usefulness for comparative purposes. Further, these non-GAAP financial measures should be considered as a supplement to the financial information prepared on a GAAP basis rather than an alternative to the respective GAAP financial measures.
About SJW Group
SJW Group is among the largest investor-owned pure-play water and wastewater utilities in the United States, providing life-sustaining and high-quality water service to nearly 1.6 million people. SJW Group’s locally led and operated water utilities - San Jose Water Company in California, The Connecticut Water Company in Connecticut, The Maine Water Company in Maine, and SJWTX, Inc. (dba The Texas Water Company) in Texas - possess the financial strength, operational expertise, and technological innovation to safeguard the environment, deliver outstanding service to customers, and provide opportunities to employees. SJW Group remains focused on investing in its operations, remaining actively engaged in its local communities, and delivering continued sustainable value to its stockholders. For more information about SJW Group, please visit www.sjwgroup.com.
Forward-Looking Statements
This release 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,” “anticipates,” “intends,” “seeks,” “plans,” “projects,” “may,” “should,” “will,” 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.
These forward-looking statements involve a number of risks, uncertainties and assumptions including, but not limited to, the following factors: (1) the effect of water, utility, environmental and other governmental policies and regulations, including regulatory actions concerning rates, authorized return on equity, authorized capital structures, capital expenditures, PFAS and other decisions; (2) changes in demand for water and other services; (3) unanticipated weather conditions and changes in seasonality including those affecting water supply and customer usage; (4) the effect of the impact of climate change; (5) unexpected costs, charges or expenses; (6) our ability to successfully evaluate investments in new business and growth initiatives; (7) contamination of our water supplies and damage or failure of our water equipment and infrastructure; (8) the risk of work stoppages, strikes and other labor-related actions; (9) catastrophic events such as fires, earthquakes, explosions, floods, ice storms, tornadoes, hurricanes, terrorist acts, physical attacks, cyber-attacks, epidemic, or similar occurrences; (10) changes in general economic, political, business and financial market conditions; (11) the ability to obtain financing on favorable terms, which can be affected by various factors, including credit ratings, changes in interest rates, compliance with regulatory requirements, compliance with the terms and conditions of our outstanding indebtedness, and general market and economic conditions; and (12) legislative, and general market and economic developments. The risks, uncertainties and other factors may cause the actual results, performance or achievements of SJW Group to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.
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Results for a quarter are not indicative of results for a full year due to seasonality and other factors. In addition, actual results, performance or achievements are subject to other risks and uncertainties that relate more broadly to our overall business, including those more fully described in our filings with the SEC, including our most recent reports on Form 10-K, Form 10-Q and Form 8-K. Forward-looking statements are not guarantees of future performance, and speak only as of the date made, and SJW Group undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise, except as required by law.
SJW Group Contacts:
Andrew F. Walters
Chief Financial Officer, Treasurer and Interim Principal Accounting Officer
408.279.7818
Andrew.Walters@sjwater.com
Daniel J. Meaney, APR
Director of Investor Relations
860.664.6016
Daniel.Meaney@ctwater.com
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SJW Group
Condensed Consolidated Statements of Comprehensive Income
(Unaudited)
(in thousands, except share and per share data)
| Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
| Operating revenue | $ | 225,063 | 204,843 | $ | 550,619 | 499,025 | |||||||||||||||||
| Operating expense: | |||||||||||||||||||||||
| Production Expenses: | |||||||||||||||||||||||
| Purchased water | 54,310 | 46,044 | 118,631 | 101,054 | |||||||||||||||||||
| Power | 3,396 | 2,785 | 8,560 | 7,363 | |||||||||||||||||||
| Groundwater extraction charges | 25,081 | 21,398 | 54,759 | 46,751 | |||||||||||||||||||
| Other production expenses | 12,919 | 12,415 | 36,020 | 36,379 | |||||||||||||||||||
| Total production expenses | 95,706 | 82,642 | 217,970 | 191,547 | |||||||||||||||||||
| Administrative and general | 25,708 | 23,888 | 71,964 | 71,759 | |||||||||||||||||||
| Maintenance | 8,512 | 6,457 | 23,080 | 18,813 | |||||||||||||||||||
| Property taxes and other non-income taxes | 9,361 | 8,795 | 26,610 | 25,092 | |||||||||||||||||||
| Depreciation and amortization | 27,423 | 26,455 | 84,159 | 78,872 | |||||||||||||||||||
| Total operating expense | 166,710 | 148,237 | 423,783 | 386,083 | |||||||||||||||||||
| Operating income | 58,353 | 56,606 | 126,836 | 112,942 | |||||||||||||||||||
| Other (expense) income: | |||||||||||||||||||||||
| Interest on long-term debt and other interest expense | (17,516) | (16,744) | (53,394) | (48,913) | |||||||||||||||||||
| Pension non-service credit (cost) | 940 | (740) | 2,829 | (906) | |||||||||||||||||||
| Other, net | (1,197) | 1,661 | 2,659 | 7,042 | |||||||||||||||||||
| Income before income taxes | 40,580 | 40,783 | 78,930 | 70,165 | |||||||||||||||||||
| Provision for income taxes | 1,928 | 4,561 | 7,883 | 4,127 | |||||||||||||||||||
| Net income | 38,652 | 36,222 | 71,047 | 66,038 | |||||||||||||||||||
| Other comprehensive income (loss), net | — | 318 | (442) | 420 | |||||||||||||||||||
| Comprehensive income | $ | 38,652 | 36,540 | $ | 70,605 | 66,458 | |||||||||||||||||
| Earnings per share | |||||||||||||||||||||||
| Basic | $ | 1.17 | 1.14 | $ | 2.19 | 2.10 | |||||||||||||||||
| Diluted | $ | 1.17 | 1.13 | $ | 2.18 | 2.09 | |||||||||||||||||
| Dividends per share | $ | 0.40 | 0.38 | $ | 1.20 | 1.14 | |||||||||||||||||
| Weighted average shares outstanding | |||||||||||||||||||||||
| Basic | 32,896,967 | 31,862,518 | 32,458,666 | 31,436,077 | |||||||||||||||||||
| Diluted | 32,982,580 | 31,934,636 | 32,530,954 | 31,526,732 | |||||||||||||||||||
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SJW Group
Condensed Consolidated Balance Sheets
(Unaudited)
(in thousands, except share and per share data)
| September 30, 2024 | December 31, 2023 | ||||||||||
| Assets | |||||||||||
| Utility plant: | |||||||||||
| Land | $ | 44,646 | 41,415 | ||||||||
| Depreciable plant and equipment | 4,141,490 | 3,967,911 | |||||||||
| Construction work in progress | 203,040 | 106,980 | |||||||||
| Intangible assets | 64,372 | 35,946 | |||||||||
| Total utility plant | 4,453,548 | 4,152,252 | |||||||||
| Less: accumulated depreciation and amortization | 1,047,631 | 981,598 | |||||||||
| Net utility plant | 3,405,917 | 3,170,654 | |||||||||
| Nonutility properties and real estate investments | 1,352 | 13,350 | |||||||||
| Less: accumulated depreciation and amortization | 97 | 194 | |||||||||
| Net nonutility properties and real estate investments | 1,255 | 13,156 | |||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | 3,967 | 9,723 | |||||||||
| Accounts receivable: | |||||||||||
| Customers, net of allowances for uncollectible accounts of $848 and $6,551 on September 30, 2024 and December 31, 2023, respectively | 75,849 | 67,870 | |||||||||
| Income tax | 11,262 | 5,187 | |||||||||
| Other | 6,286 | 3,684 | |||||||||
| Accrued unbilled utility revenue | 68,342 | 49,543 | |||||||||
| Assets held for sale | — | 40,850 | |||||||||
| Prepaid expenses | 15,411 | 11,110 | |||||||||
| Current regulatory assets | 828 | 4,276 | |||||||||
| Other current assets | 5,331 | 6,146 | |||||||||
| Total current assets | 187,276 | 198,389 | |||||||||
| Other assets: | |||||||||||
| Regulatory assets, less current portion | 253,162 | 235,910 | |||||||||
| Investments | 18,213 | 16,411 | |||||||||
| Postretirement benefit plans | 39,387 | 33,794 | |||||||||
| Other intangible asset | — | 28,386 | |||||||||
| Goodwill | 640,311 | 640,311 | |||||||||
| Other | 6,781 | 8,056 | |||||||||
| Total other assets | 957,854 | 962,868 | |||||||||
| Total assets | $ | 4,552,302 | 4,345,067 | ||||||||
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SJW Group
Condensed Consolidated Balance Sheets
(Unaudited)
(in thousands, except share and per share data)
| September 30, 2024 | December 31, 2023 | ||||||||||
| Capitalization and liabilities | |||||||||||
| Capitalization: | |||||||||||
| Stockholders’ equity: | |||||||||||
| Common stock, $0.001 par value; authorized 70,000,000 shares; issued and outstanding shares 33,226,735 on September 30, 2024 and 32,023,004 on December 31, 2023 | $ | 33 | 32 | ||||||||
| Additional paid-in capital | 804,848 | 736,191 | |||||||||
| Retained earnings | 527,575 | 495,383 | |||||||||
| Accumulated other comprehensive income | 1,349 | 1,791 | |||||||||
| Total stockholders’ equity | 1,333,805 | 1,233,397 | |||||||||
| Long-term debt, less current portion | 1,673,715 | 1,526,699 | |||||||||
| Total capitalization | 3,007,520 | 2,760,096 | |||||||||
| Current liabilities: | |||||||||||
| Lines of credit | 93,235 | 171,500 | |||||||||
| Current portion of long-term debt | 8,088 | 48,975 | |||||||||
| Accrued groundwater extraction charges, purchased water and power | 38,433 | 24,479 | |||||||||
| Accounts payable | 44,480 | 46,121 | |||||||||
| Accrued interest | 19,549 | 15,816 | |||||||||
| Accrued payroll | 12,180 | 12,229 | |||||||||
| Current regulatory liabilities | 1,770 | 3,059 | |||||||||
| Other current liabilities | 26,314 | 20,795 | |||||||||
| Total current liabilities | 244,049 | 342,974 | |||||||||
| Deferred income taxes | 268,370 | 238,528 | |||||||||
| Advances for construction | 150,546 | 146,582 | |||||||||
| Contributions in aid of construction | 336,559 | 326,451 | |||||||||
| Postretirement benefit plans | 48,158 | 46,836 | |||||||||
| Regulatory liabilities, less current portion | 473,899 | 461,108 | |||||||||
| Other noncurrent liabilities | 23,201 | 22,492 | |||||||||
| Commitments and contingencies | |||||||||||
| Total capitalization and liabilities | $ | 4,552,302 | 4,345,067 | ||||||||
9
SJW Group
Reconciliation of Non-GAAP Financial Measures
(Unaudited)
(in thousands, except per share data)
2024 Earnings Guidance | |||||||||||||||||
Estimated Diluted EPS Guidance on a GAAP Basis | $ | 2.65 | to | 2.75 | |||||||||||||
Adjustments: | |||||||||||||||||
Loss on sale of real estate investments, net of tax | 0.02 | 0.02 | |||||||||||||||
Expense for merger and acquisition activities | 0.01 | 0.01 | |||||||||||||||
Adjusted EPS Guidance (non-GAAP) | $ | 2.68 | to | $ | 2.78 | ||||||||||||
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Reported GAAP Net Income | $ | 38,652 | 36,222 | $ | 71,047 | 66,038 | |||||||||||||||||
Adjustments: | |||||||||||||||||||||||
Loss (gain) on sale of real estate investments1 | 60 | — | 969 | (1,473) | |||||||||||||||||||
Expense for merger and acquisition activities2 | 361 | — | 361 | — | |||||||||||||||||||
Tax effect of above adjustments3 | (120) | — | (411) | 412 | |||||||||||||||||||
Adjusted Net Income (non-GAAP) | $ | 38,953 | 36,222 | $ | 71,966 | 64,977 | |||||||||||||||||
Reported GAAP Diluted Earnings Per Share | $ | 1.17 | 1.13 | $ | 2.18 | 2.09 | |||||||||||||||||
Adjustments: | |||||||||||||||||||||||
Loss (gain) on sale of real estate investments, net of tax | — | — | 0.02 | (0.03) | |||||||||||||||||||
Expense for merger and acquisition activities, net of tax | 0.01 | — | 0.01 | — | |||||||||||||||||||
Adjusted Diluted Earnings Per Share (non-GAAP) | $ | 1.18 | 1.13 | $ | 2.21 | 2.06 | |||||||||||||||||
1 Included in the "Other, net" line on the condensed consolidated statements of comprehensive income.
2 Included in the "Administrative and general" line on the condensed consolidated statements of comprehensive income.
3 The tax effect on all adjustments is calculated at the applicable statutory rate.
10