South Jersey Industries, Inc. (NYSE:SJI) Q3 2019 Earnings Conference Call - Final Transcript
Nov 07, 2019 • 11:00 am ET
Ladies and gentlemen thank you for standing by and welcome to the Q3 2019 South Jersey Industries Earnings Conference Call. [Operator Instructions]
I would now like to hand the conference over to your speaker Mr. Dan Fidell. Sir please go ahead.
Thank you, Valerie. Good morning everyone. Welcome to SJI's third quarter earnings conference call and webcast. I'm joined today by Mike Renna our President and Chief Executive Officer; as well as several additional members of our senior management team. Our earnings release and the presentation slides that accompany the call were issued yesterday after the close of the market and are also available on our website at www.sjindustries.com. The release and the associated 10-Q provide an in-depth review of earnings on both the GAAP and non-GAAP basis using our non-GAAP measure of economic earnings. Reconciliations of economic earnings to the comparable GAAP measures appear in both documents. Let me note that throughout today's call we'll be making references to future expectations plans and opportunities for SJI. 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 Forms 10-K and 10-Q on file with the SEC. With that said I'm pleased to introduce our CEO Mike Renna who will review our current operations significant initiatives and outlook. SJI's Chief Financial Officer Cielo Hernandez will then review the financial performance of our individual segments and discuss our ongoing balance sheet-strengthening activities. Mike will then offer some final remarks. After that we'll be happy to take your questions. And with that introduction let me now turn it over to Mike.
Thanks, Dan and thank you for joining us today. I am pleased to report that our third quarter results were in line with our expectations. And that our transformation efforts continue to proceed on track. Before we review the third quarter financials I want to give you an update on several key pieces of our strategic transformation. The integration of Elizabethtown is going very well. It remains a largely efficient process thanks to the hard work of our dedicated employees with full integration of services and systems including the winding down of our TSA with Southern on track to be completed in Q1 2020. We are encouraged by the continued strong demand for natural gas across the different regions we serve. At South Jersey Gas annual customer growth remained solidly above national averages fueled primarily by conversions. At Elizabethtown Gas we expected steadily improving customer growth numbers as we integrated our sales teams. I am very encouraged by our early results particularly in new construction highlighting the sustained appeal of natural gas across geographies and across demographics. On the regulatory front as you know we have been busy this year planning and executing several important long-term initiatives for Elizabethtown. In June the BPU approved a 5-year $300 million infrastructure replacement program for Elizabethtown authorizing replacement of 250 miles of aging cast iron and bare steel pipe. Recall this important