News Releases
Sierra Pacific Resources Reports Third Quarter Earnings
PRNewswire-FirstCall
RENO, Nev.
Nov 14, 2002
5:01am
Sierra Pacific Resources (NYSE: SRP) today reported consolidated third quarter 2002 net income of $79.4 million, or 78 cents per share, compared to net income of $80.4 million, or 89 cents per share, for the same quarter in 2001.
"Our third quarter results indicate we are making progress in efforts to restore the company's financial health," said Walt Higgins, chairman, president and chief executive officer of Sierra Pacific Resources. "Importantly, we have completed refinancing the credit facilities at both utilities and have paid continuing power suppliers amounts owed them under contract."
Quarterly earnings were affected by customer growth and above-normal temperatures, particularly in July. While retail revenues rose, total quarterly revenues for the company's utility subsidiaries, Nevada Power Company and Sierra Pacific Power Co., declined due to lower wholesale prices and sales volumes.
For the third quarter, excluding equity in earnings of Sierra Pacific Resources, Nevada Power recorded earnings of $79.3 million, compared with net income of $78.8 million a year earlier. Sierra Pacific Power reported quarterly earnings of $12.6 million for the third quarter, compared to third quarter 2001 earnings of $11.6 million.
For the first nine months of 2002, Sierra Pacific Resources had a net loss of $268 million, compared with net earnings of $51 million for the comparable period in 2001. The primary cause for the 2002 loss was the disallowance in March of $434.1 million in deferred energy costs for Nevada Power Company and the disallowance in May of $53.1 million of deferred energy costs for Sierra Pacific Power.
During the third quarter of 2002, retail electric revenues increased at Nevada Power compared with a year earlier because of recovery of deferred energy costs in 2002 and an increase in cooling degree-days resulting in higher sales. Nevada Power commercial and industrial revenues were higher for both the three and nine-month periods due to customer growth and recovery of deferred energy costs.
Retail electric revenues for Sierra Pacific Power were higher for the third quarter of 2002, compared with the same period a year earlier due to recovery of deferred energy costs, effective June 1, 2002, and warmer-than- normal weather in July.
Webcast Scheduled
Senior management of Sierra Pacific will discuss the second quarter financial results during a live webcast on Thursday, Nov. 14, 2002, at 7 a.m. Pacific Standard Time. Interested parties can access the webcast with the following link: http://www.on24.com/clients/default/audioevent.html?eventid=1150 The webcast will also be accessible on the Sierra Pacific Resources' web site at http://www.sierrapacificresources.com/investors/news /
To listen to a recording of the webcast by telephone, call 1-888-211-2648. Use conference ID number 2620485 to access the recording. The recording will be available approximately two hours after the conclusion of the webcast.
An archived version of the webcast will be available on the Sierra Pacific Resources web site for approximately one month following the live webcast.
Headquartered in Nevada, Sierra Pacific Resources is a holding company whose principal subsidiaries are Nevada Power, the electric utility for most of southern Nevada, and Sierra Pacific Power, the electric utility for most of northern Nevada and the Lake Tahoe area of California. Sierra Pacific Power also distributes natural gas in the Reno-Sparks area of northern Nevada. A third subsidiary, the Tuscarora Gas Pipeline Company, owns a 50 percent interest in an interstate natural gas transmission partnership.
This press release contains forward-looking statements regarding the future performance of Sierra Pacific Resources 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, further unfavorable rulings in pending and future rate cases, the ability of the Company to access capital markets in light of recent ratings downgrades, whether suppliers will continue to honor existing power and fuel supply contracts, whether long-term power costs can be lowered through negotiation or administrative proceedings, weather conditions during the summer of 2002 and beyond, operating hazards, uninsured risks and changes in energy-related federal or state legislation and regulations. Additional cautionary statements regarding other risk factors that could have an effect on the future performance of the Company are contained in the Company's Form 10-K filed with the SEC. The Company undertakes 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.
Financial Highlights: Sierra Pacific Resources Financial Highlights (In thousands, except for per share amount) Third Quarter 2002 SRP NPC 2002 2001 2002 2001 Revenues $1,020,019 $2,001,934 $712,536 $1,395,496 Operating Expenses 876,692 1,879,744 603,353 1,300,729 Net Income (Loss)(1) 79,374 80,409 79,304 78,751 Net Income (Loss) Per Share $0.78 $0.89 -- --- Net Income (Loss) Contribution Per Share -- -- $0.78 $0.87 SRP Weighted Average Shares Outstanding 102,131 90,303 102,131 90,303 Third Quarter 2002 SPP 2002 2001 Revenues $303,496 $600,788 Operating Expenses 273,475 575,186 Net Income (Loss)(1) 12,568 11,606 Net Income (Loss) Per Share -- -- Net Income (Loss) Contribution Per Share $0.12 $0.13 SRP Weighted Average Shares Outstanding 102,131 90,303 Year to Date September 30, 2002 SRP NPC 2002 2001 2002 2001 Revenues $2,359,280 $3,856,252 $1,545,867 $2,562,949 Operating Expenses 2,426,805 3,686,254 1,667,281 2,442,824 Net Income (Loss)(1) (268,024) 50,965 (216,025) 56,459 Net Income (Loss) Per Share $(2.62) $0.62 -- -- Net Income (Loss) Contribution Per Share -- -- $(2.11) $0.68 SRP Weighted Average Shares Outstanding 102,118 82,423 102,118 82,423 Year to Date September 30, 2002 SPP 2002 2001 Revenues $805,085 $1,279,953 Operating Expenses 764,948 1,224,725 Net Income (Loss)(1) (12,389) 36,572 Net Income (Loss) Per Share -- -- Net Income (Loss) Contribution Per Share $(0.12) $0.44 SRP Weighted Average Shares Outstanding 102,118 82,423 Notes: 1) For Nevada Power Company, does not include Equity in Earnings (Losses) of Sierra Pacific Resources
Audio: http://www.on24.com/clients/default/audioevent.html?eventid=1150
SOURCE: Sierra Pacific Resources
CONTACT: analysts, Rich Atkinson, +1-775-834-5640, or Vicki Erickson,
+1-775-834-5646, or media, Karl Walquist, +1-775-834-3891, all of Sierra
Pacific Resources
Web site: http://www.sierrapacificresources.com/investors/news
Web site: http://www.sierrapacific.com/