News Releases
NV Energy, Inc., Reports First Quarter Results
PRNewswire-FirstCall
LAS VEGAS
Apr 26, 2010
5:00am
NV Energy, Inc. (NYSE: NVE) today announced a consolidated net loss of $1.7 million, or 1 cent per share, for the quarter ended March 31, 2010, compared with a consolidated net loss of $22.2 million, or 9 cents per share, for the quarter ended March 31, 2009.
The improvement in the first quarter 2010 versus the first quarter 2009 was due to an increase in rates as a result of the southern Nevada utility's general rate case, effective on July 1, 2009.
NV Energy's two utilities contributed gross margin of $304.9 million in the first quarter 2010, $21 million higher than the first quarter 2009.
"Much of the first quarter-to-quarter improvement is attributable to our investments in new generating facilities in southern Nevada that are now included in rates," said Michael Yackira, president and chief executive officer of NV Energy.
Webcast Scheduled for 7 a.m. PDT today, Monday, April 26
Senior management of NV Energy will review the company's 2010 first quarter financial results and other matters during a conference call and live webcast today, Monday, April 26, at 7 a.m. Pacific Daylight Time.
The webcast will be accessible on the NV Energy website: www.nvenergy.com.
An archived version of the webcast will remain on the NV Energy website for approximately one month following the live webcast. To listen to a recording of the call by telephone, call (800) 475-6701, and international callers should dial (320) 365-3844. Use the conference call access code, 153625, to listen to the recording.
Headquartered in Las Vegas, NV Energy, Inc. is a holding company whose principal subsidiaries, Nevada Power Company and Sierra Pacific Power Company, are doing business as NV Energy. Serving a 54,500-square-mile service territory that stretches north to south from Elko to Laughlin, NV Energy provides a wide range of energy services and products to approximately 2.4 million citizens of Nevada as well as approximately 40 million tourists annually.
This press release may contain forward-looking statements regarding the future performance of NV Energy, Inc. and its subsidiaries, Nevada Power Company d/b/a NV Energy and Sierra Pacific Power Company d/b/a NV Energy, within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are subject to a variety of risks and uncertainties that could cause actual results to differ materially from current expectations. These risks and uncertainties include, but are not limited to, NV Energy Inc.'s ability to maintain access to the capital markets, NV Energy Inc.'s ability to receive dividends from its subsidiaries, the financial performance of NV Energy Inc.'s subsidiaries, particularly Nevada Power Company and Sierra Pacific Power Company both d/b/a NV Energy, and the discretion of NV Energy Inc.'s Board of Directors with respect to the payment of future dividends based on its periodic review of factors that ordinarily affect dividend policy, such as current and prospective financial condition, earnings and liquidity, prospective business conditions, regulatory factors, and dividend restrictions in NV Energy Inc.'s and its subsidiaries' financing agreements. For Nevada Power Company and Sierra Pacific Power Company both d/b/a NV Energy, these risks and uncertainties include, but are not limited to, future economic conditions both nationally and regionally, changes in the rate of industrial, commercial and residential growth in their service territories, their ability to procure sufficient renewable energy sources in each compliance year to satisfy the Nevada Portfolio Standard, changes in environmental laws and regulations, construction risks, their ability to maintain access to the capital markets for general corporate purposes and to finance construction projects, employee workforce factors, including changes in and renewals of collective bargaining agreements, strikes or work stoppages, unseasonable weather, drought, threat of wildfire and other natural phenomena, their ability to purchase sufficient fuel, natural gas and power to meet their power demands and natural gas demands for Sierra Pacific Power Company d/b/a NV Energy, financial market conditions, and unfavorable rulings in their pending and future regulatory filings. Additional cautionary statements regarding other risk factors that could have an effect on the future performance of NV Energy, Inc., Nevada Power Company and Sierra Pacific Power Company both d/b/a NV Energy are contained in their Annual Reports on Form 10-K/A for the year ended December 31, 2009, each filed with the SEC. NV Energy Inc., Nevada Power Company and Sierra Pacific Power Company both d/b/a NV Energy undertake no obligation to release publicly the result of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
NV ENERGY, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in Thousands, Except Per Share Amounts)
(unaudited)
Three Months Ended
March 31,
---------
2010 2009
---- ----
OPERATING REVENUES $716,969 $755,267
OPERATING EXPENSES:
Fuel for power generation 221,619 230,104
Purchased power 107,363 125,387
Gas purchased for resale 65,559 70,272
Deferred energy 17,566 45,635
Other operating expenses 109,106 114,677
Maintenance 25,729 34,400
Depreciation and amortization 80,948 78,048
Taxes other than income 16,173 14,647
Total Operating Expenses 644,063 713,170
------- -------
OPERATING INCOME 72,906 42,097
OTHER INCOME (EXPENSE):
Interest expense (net of AFUDC-
debt: 2010-$4,939, 2009-$5,146) (80,064) (82,633)
Interest income (expense) on
regulatory items (2,071) 1,180
AFUDC-equity 5,953 6,218
Other income 5,877 5,058
Other expense (3,066) (5,578)
Total Other Income (Expense) (73,371) (75,755)
------- -------
Loss Before Income Tax Expense (465) (33,658)
Income tax expense (benefit) 1,256 (11,414)
----- -------
NET LOSS $(1,721) $(22,244)
======= ========
Amount per share basic and diluted
Net loss per share basic and diluted $(0.01) $(0.09)
Weighted Average Shares of Common
Stock Outstanding -basic and
diluted 234,858,642 234,331,044
=========== ===========
Dividends Declared Per Share of
Common Stock $0.11 $0.10
===== =====
NEVADA POWER COMPANY
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in Thousands)
(unaudited)
Three Months Ended
March 31,
---------
2010 2009
---- ----
OPERATING REVENUES $426,960 $436,529
OPERATING EXPENSES:
Fuel for power generation 156,115 154,062
Purchased power 71,227 88,206
Deferred energy 19,463 38,190
Other operating expenses 67,880 70,193
Maintenance 17,019 27,534
Depreciation and amortization 55,101 52,363
Taxes other than income 10,026 9,063
Total Operating Expenses 396,831 439,611
------- -------
OPERATING INCOME (LOSS) 30,129 (3,082)
OTHER INCOME (EXPENSE):
Interest expense (net of AFUDC-debt: 2010-
$4,532, 2009-$4,562) (53,356) (55,043)
Interest income (expense) on regulatory items (31) 1,853
AFUDC-equity 5,362 5,621
Other income 2,583 2,342
Other expense (1,132) (3,207)
Total Other Income (Expense) (46,574) (48,434)
------- -------
Loss Before Income Tax Expense (16,445) (51,516)
Income tax (benefit) (4,119) (16,365)
------ -------
NET LOSS $(12,326) $(35,151)
======== ========
SIERRA PACIFIC POWER COMPANY
CONSOLIDATED INCOME STATEMENTS
(Dollars in Thousands)
(unaudited)
Three Months Ended
March 31,
---------
2010 2009
---- ----
OPERATING REVENUES:
Electric $209,981 $237,738
Gas 80,020 80,993
------
Total Operating Revenues 290,001 318,731
------- -------
OPERATING EXPENSES:
Fuel for power generation 65,504 76,042
Purchased power 36,136 37,181
Gas purchased for resale 65,559 70,272
Deferred energy - electric - net (1,500) 11,796
Deferred energy - gas - net (397) (4,351)
Other operating expenses 40,672 44,015
Maintenance 8,710 6,866
Depreciation and amortization 25,847 25,685
Taxes other than income 6,066 5,524
-----
Total Operating Expenses 246,597 273,030
------- -------
OPERATING INCOME 43,404 45,701
OTHER INCOME (EXPENSE):
Interest expense (net of AFUDC-debt: 2010-
$407, 2009-$584) (17,045) (17,927)
Interest income (expense) on regulatory items (2,040) (673)
AFUDC-equity 591 597
Loss Before Income Tax Expense 1,755 2,715
Other expense (1,869) (1,991)
Income tax expense (benefit) (18,608) (17,279)
------- -------
Income Before Income Tax Expense 24,796 28,422
Income tax expense 7,676 9,286
----- -----
NET INCOME $17,120 $19,136
======= =======
Gross margin is presented by Nevada Power Company and Sierra Pacific Power Company both d/b/a NV Energy in order to provide information by segment that management believes aids the reader in determining how profitable the electric and gas business is at the most fundamental level. Gross margin, which is a "non-GAAP financial measure" as defined in accordance with SEC rules, provides a measure of income available to support the other operating expenses of the business and is utilized by management in its analysis of its business.
Nevada Power Company and Sierra Pacific Power Company both d/b/a NV Energy believe presenting gross margin allows the reader to assess the impact of regulatory treatment and their overall regulatory environment on a consistent basis. Gross margin, as a percentage of revenue, is primarily impacted by the fluctuations in regulated electric and natural gas supply costs versus the fixed rates collected from customers. While these fluctuating costs impact gross margin as a percentage of revenue, they only impact gross margin amounts if the costs cannot be passed through to customers. Gross margin, which Nevada Power Company and Sierra Pacific Power Company both d/b/a NV Energy calculate as operating revenues less energy costs, provides a measure of income available to support the other operating expenses. Gross margin changes based on such factors as general base rate adjustments (which are required to be filed by statute every three years) and reflect Nevada Power Company and Sierra Pacific Power Company's both d/b/a NV Energy strategy to increase internal power generation versus purchased power, which generates no gross margin. Reconciliations between GAAP operating income and gross margin are provided in tables herein. These non-GAAP measures should not be considered as substitutes for the GAAP measures.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
Gross Margin
(Dollars in Thousands)
(Unaudited)
Nevada Power Company Three Months Ended % Change
March 31, from Prior
2010 2009 Year
---- ---- ----
Operating Revenues $426,960 $436,529 -2.2%
Energy Costs:
Fuel for power generation 156,115 154,062
Purchased Power 71,227 88,206
Deferred energy - net 19,463 38,190
$246,805 $280,458 -12.0%
-------- --------
Gross Margin $180,155 $156,071 15.4%
======== ========
Other operating expenses 67,880 70,193
Maintenance 17,019 27,534
Depreciation and
amortization 55,101 52,363
Taxes other than income 10,026 9,063
------ -----
Operating Income (Loss) $30,129 ($3,082) 1077.6%
======= =======
Three Months Ended % Change
March 31, from Prior
2010 2009 Year
---- ---- ----
Operating Revenues:
Electric $209,981 $237,738
Gas 80,020 80,993
------ ------
$290,001 $318,731 -9.0%
-------- --------
Energy Costs:
Fuel for power generation 65,504 76,042
Purchased Power 36,136 37,181
Gas purchased for resale 65,559 70,272
Deferred energy -electric
-net (1,500) 11,796
Deferred energy -gas -net (397) (4,351)
---- ------
$165,302 $190,940 -13.4%
-------- --------
Gross Margin $124,699 $127,791 -2.4%
======== ========
Other operating expenses 40,672 44,015
Maintenance 8,710 6,866
Depreciation and
amortization 25,847 25,685
Taxes other than income 6,066 5,524
----- -----
Operating Income $43,404 $45,701 -5.0%
======= =======
Energy Costs by Segment:
Electric $100,140 $125,019
Gas 65,162 65,921
------ ------
$165,302 $190,940 -13.4%
-------- --------
Gross Margin by Segment:
Electric $109,841 $112,719
Gas 14,858 15,072
$124,699 $127,791 -2.4%
======== ========
Summary of Selected Operating Statistics
Nevada Power Company
Operating Revenues
(dollars in thousands)
Three Months Ended
March 31,
2010 2009
---- ----
Operating Revenues:
Residential $196,593 $191,370
Commercial 94,269 96,794
Industrial 119,648 128,039
------- -------
Retail revenues 410,510 416,203
Other 16,450 20,326
------ ------
Total Operating Revenues $426,960 $436,529
======== ========
Retail sales in thousands of
MWhs 4,086 4,121
% Change
from
Prior Avg. Change
in
Year customers
---- ---------
Operating Revenues:
Residential 2.7% -0.4%
Commercial -2.6% 1.6%
Industrial -6.6% 0.1%
Retail revenues -1.4%
Other -19.1%
Total Operating Revenues -2.2%
Retail sales in thousands of
MWhs -0.8%
Sierra Pacific Power Company
Operating Revenues
(dollars in thousands)
Three Months Ended
March 31,
2010 2009
---- ----
Electric Operating Revenues:
Residential $83,159 $93,785
Commercial 76,974 90,437
Industrial 42,631 46,067
------ ------
Retail revenues 202,764 230,289
Other 7,217 7,449
----- -----
Total Revenues $209,981 $237,738
======== ========
Retail sales in thousands of
MWhs 1,960 1,980
% Change
from
Prior Avg. Change
in
Year customers
---- ---------
Electric Operating Revenues:
Residential -11.3% -0.2%
Commercial -14.9% 0.1%
Industrial -7.5% -1.9%
Retail revenues -12.0%
Other -3.1%
Total Revenues -11.7%
Retail sales in thousands of
MWhs -1.0%
Three Months Ended
March 31,
2010 2009
---- ----
Gas Operating Revenues:
Residential $42,363 $45,881
Commercial 20,482 21,840
Industrial 5,939 5,892
----- -----
Retail revenues 68,784 73,613
Wholesale revenue 10,561 6,734
Miscellaneous 675 646
--- ---
Total Revenues $80,020 $80,993
======= =======
Retail sales in thousands of
decatherms 5,985 6,107
% Change
from
Prior Avg. Change
in
Year customers
---- ---------
Gas Operating Revenues:
Residential -7.7%
Commercial -6.2%
Industrial 0.8%
Retail revenues -6.6% 0.6%
Wholesale revenue 56.8%
Miscellaneous 4.5%
Total Revenues -1.2%
Retail sales in thousands of
decatherms -2.0%
Financial Highlights
(Dollars in Thousands)
(Unaudited)
NV Energy, Inc
Capital Structure March 31, 2010
--------------
Current maturities of long-term
debt(1) $237,785 2.7%
Long-term debt 5,316,626 60.7%
Total Debt $5,554,411 63.5%
Total shareholders' equity 3,197,525 36.5%
--------- ----
Total Capitalization (including
current maturities of long-
term debt) $8,751,936 100.0%
========== =====
NV Energy, Inc
Capital Structure March 31, 2009
--------------
Current maturities of long-term
debt(1) $8,885 0.1%
Long-term debt 5,485,643 63.9%
Total Debt $5,494,528 64.0%
Total shareholders' equity 3,086,337 36.0%
--------- ----
Total Capitalization (including
current maturities of long-
term debt) $8,580,865 100.0%
========== =====
Nevada Power Company
Capital Structure March 31, 2010
--------------
Current maturities of long-term
debt(1) $237,785 3.7%
Long-term debt 3,549,120 55.5%
Total Debt $3,786,905 59.2%
Total shareholder's equity 2,610,729 40.8%
--------- ----
Total Capitalization (including
current maturities of long-
term debt) $6,397,634 100.0%
========== =====
Nevada Power Company
Capital Structure March 31, 2009
--------------
Current maturities of long-term
debt(1) $8,885 0.1%
Long-term debt 3,596,840 58.2%
Total Debt $3,605,725 58.3%
Total shareholder's equity 2,570,426 41.7%
--------- ----
Total Capitalization (including
current maturities of long-
term debt) $6,176,151 100.0%
========== =====
Sierra Pacific Power Company
Capital Structure March 31, 2010
--------------
Current maturities of long-term
debt $- 0.0%
Long-term debt 1,281,863 55.8%
Total Debt $1,281,863 55.8%
Total shareholder's equity 1,013,388 44.2%
--------- ----
Total Capitalization (including
current maturities of long-
term debt) $2,295,251 100.0%
========== =====
Sierra Pacific Power Company
Capital Structure March 31, 2009
--------------
Current maturities of long-term
debt $- 0.0%
Long-term debt 1,402,964 59.0%
Total Debt $1,402,964 59.0%
Total shareholder's equity 975,406 41.0%
------- ----
Total Capitalization (including
current maturities of long-
term debt) $2,378,370 100.0%
========== =====
(1) Includes amounts borrowed under NPC's revolving credit facility
as of March 31, 2010 that is expected to be reclassified to long-
term debt upon closing of its new revolving credit facility.
NVE Available Liquidity as of March 31, 2010 (dollars in millions)
NVE NPC SPPC
--- --- ----
Cash and Cash Equivalents $10.6 $34.8 $28.5
Balance available on Revolving Credit
Facilities N/A 344.3 317.9
--- ----- -----
$10.6 $379.1 $346.4
===== ====== ======
First Call Analyst:
FCMN Contact: kwalquist@nvenergy.com
SOURCE: NV Energy, Inc.
CONTACT: Analysts, Britta Carlson, +1-702-402-5624, or Media, Karl
Walquist, +1-775-834-3891, both of NV Energy
Web Site: http://www.nvenergy.com/
