News Releases
NV Energy Reports Second Quarter Earnings
PRNewswire-FirstCall
LAS VEGAS
Aug 2, 2010
5:00am
NV Energy, Inc. (NYSE: NVE) today announced consolidated net income of $36.9 million, or 16 cents per share, for the quarter ended June 30, 2010, compared with consolidated net income of $18.4 million, or 8 cents per share, for the same period in 2009.
For the first six-months, NV Energy earned $35.2 million or 15 cents per share in 2010 compared with a net loss of $3.9 million or 2 cents per share for the same period in 2009.
"We are very pleased with the results we achieved in this year's second quarter," Michael Yackira, president and chief executive officer of NV Energy, said. "While the increase was largely a result of higher income associated with investment in generating facilities, it was also due to cost discipline throughout the company."
Webcast Scheduled for 7 a.m. PDT today, Monday, August 2, 2010
Senior management of NV Energy will review the company's 2010 second quarter financial results and other matters during a conference call and live webcast today, Monday, August 2, 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An archived version of the webcast will remain on the NV Energy website for approximately one month following the live webcast.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, 163910, 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 and Sierra Pacific Power Company both 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 Renewable Energy 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 and wholesale 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 quarterly reports on Form 10-Q for the quarter ended March 31, 2010, and their Annual Reports on Form 10-K as amended by 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
June 30,
--------
2010 2009
---- ----
OPERATING REVENUES $785,361 $838,641
OPERATING EXPENSES:
Fuel for power generation 181,662 204,285
Purchased power 165,321 194,970
Gas purchased for resale 25,154 19,916
Deferred energy 54,933 93,577
Other operating expenses 104,066 109,886
Maintenance 28,860 27,632
Depreciation and amortization 84,696 80,323
Taxes other than income 15,939 13,753
------ ------
Total Operating Expenses 660,631 744,342
------- -------
OPERATING INCOME 124,730 94,299
OTHER INCOME (EXPENSE):
Interest expense (net of AFUDC-debt:
$5,926, $7,022, $10,864 and $12,168) (80,772) (83,559)
Interest income (expense) on regulatory
items (2,997) (254)
AFUDC-equity 7,138 8,548
Other income 15,401 18,402
Other expense (9,659) (9,460)
------ ------
Total Other Income (Expense) (70,889) (66,323)
------- -------
Income (Loss) Before Income Tax Expense 53,841 27,976
Income tax expense (benefit) 16,895 9,593
------ -----
NET INCOME (LOSS) $36,946 $18,383
======= =======
Amount per share basic and diluted -
(Note 9)
Net income (loss) per share basic and
diluted $0.16 $0.08
Weighted Average Shares of Common Stock
Outstanding -basic 234,995,083 234,474,727
=========== ===========
Weighted Average Shares of Common Stock
Outstanding -diluted 236,134,449 235,089,193
=========== ===========
Dividends Declared Per Share of Common
Stock $0.11 $0.10
===== =====
Six Months Ended
June 30,
--------
2010 2009
---- ----
OPERATING REVENUES $1,502,330 $1,593,908
OPERATING EXPENSES:
Fuel for power generation 403,281 434,389
Purchased power 272,684 320,357
Gas purchased for resale 90,713 90,188
Deferred energy 72,499 139,212
Other operating expenses 213,172 224,563
Maintenance 54,589 62,032
Depreciation and amortization 165,644 158,371
Taxes other than income 32,112 28,400
------ ------
Total Operating Expenses 1,304,694 1,457,512
--------- ---------
OPERATING INCOME 197,636 136,396
OTHER INCOME (EXPENSE):
Interest expense (net of AFUDC-debt:
$5,926, $7,022, $10,864 and $12,168) (160,836) (166,192)
Interest income (expense) on
regulatory items (5,068) 926
AFUDC-equity 13,091 14,766
Other income 21,278 23,460
Other expense (12,725) (15,038)
------- -------
Total Other Income (Expense) (144,260) (142,078)
-------- --------
Income (Loss) Before Income Tax
Expense 53,376 (5,682)
Income tax expense (benefit) 18,151 (1,821)
------ ------
NET INCOME (LOSS) $35,225 $(3,861)
======= =======
Amount per share basic and diluted -
(Note 9)
Net income (loss) per share basic and
diluted $0.15 $(0.02)
Weighted Average Shares of Common
Stock Outstanding -basic 234,927,239 234,403,282
=========== ===========
Weighted Average Shares of Common
Stock Outstanding -diluted 235,965,452 234,403,282
=========== ===========
Dividends Declared Per Share of Common
Stock $0.22 $0.20
===== =====
NEVADA POWER COMPANY
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in Thousands)
(unaudited)
Three Months Ended
June 30,
--------
2010 2009
---- ----
OPERATING REVENUES $540,799 $575,769
OPERATING EXPENSES:
Fuel for power generation 132,067 140,333
Purchased power 124,740 165,292
Deferred energy 39,960 59,809
Other operating expenses 64,696 68,057
Maintenance 18,219 18,732
Depreciation and amortization 57,654 53,510
Taxes other than income 9,793 8,361
Total Operating Expenses 447,129 514,094
------- -------
OPERATING INCOME (LOSS) 93,670 61,675
OTHER INCOME (EXPENSE):
Interest expense (net of AFUDC-
debt: $5,444, $6,106, $9,976 and
$10,668) (53,996) (57,137)
Interest income (expense) on
regulatory items (777) 790
AFUDC-equity 6,398 7,552
Other income 2,659 12,608
Other expense (5,172) (7,591)
Total Other Income (Expense) (50,888) (43,778)
------- -------
Income (Loss) Before Income Tax
Expense 42,782 17,897
Income tax expense (benefit) 12,998 5,396
------ -----
NET INCOME (LOSS) $29,784 $12,501
======= =======
Six Months Ended
June 30,
--------
2010 2009
---- ----
OPERATING REVENUES $967,759 $1,012,298
OPERATING EXPENSES:
Fuel for power generation 288,182 294,395
Purchased power 195,967 253,498
Deferred energy 59,423 97,999
Other operating expenses 132,576 138,250
Maintenance 35,238 46,266
Depreciation and amortization 112,755 105,873
Taxes other than income 19,819 17,424
Total Operating Expenses 843,960 953,705
------- -------
OPERATING INCOME (LOSS) 123,799 58,593
OTHER INCOME (EXPENSE):
Interest expense (net of AFUDC-
debt: $5,444, $6,106, $9,976 and
$10,668) (107,352) (112,180)
Interest income (expense) on
regulatory items (808) 2,643
AFUDC-equity 11,760 13,173
Other income 5,242 14,950
Other expense (6,304) (10,798)
Total Other Income (Expense) (97,462) (92,212)
------- -------
Income (Loss) Before Income Tax
Expense 26,337 (33,619)
Income tax expense (benefit) 8,879 (10,969)
----- -------
NET INCOME (LOSS) $17,458 $(22,650)
======= ========
SIERRA PACIFIC POWER COMPANY
CONSOLIDATED INCOME STATEMENTS
(Dollars in Thousands)
(unaudited)
Three Months Ended
June 30,
--------
2010 2009
---- ----
OPERATING REVENUES:
Electric $204,151 $230,914
Gas 40,405 31,948
------
Total Operating Revenues 244,556 262,862
------- -------
OPERATING EXPENSES:
Fuel for power generation 49,595 63,952
Purchased power 40,581 29,678
Gas purchased for resale 25,154 19,916
Deferral of energy -electric -
net 8,725 29,780
Deferral of energy -gas -net 6,248 3,988
Other operating expenses 38,288 40,890
Maintenance 10,641 8,900
Depreciation and amortization 27,042 26,813
Taxes other than income 6,098 5,360
-----
Total Operating Expenses 212,372 229,277
------- -------
OPERATING INCOME 32,184 33,585
OTHER INCOME (EXPENSE):
Interest expense (net of AFUDC-
debt: $482, $916, $888 and
$1,500) (17,113) (16,759)
Interest income (expense) on
regulatory items (2,220) (1,044)
AFUDC-equity 740 996
Other income 10,142 5,792
Other expense (4,401) (1,797)
Total Other Income (Expense) (12,852) (12,812)
------- -------
Income Before Income Tax Expense 19,332 20,773
Income tax expense 8,017 5,969
----- -----
NET INCOME $11,315 $14,804
======= =======
Six Months Ended
June 30,
--------
2010 2009
---- ----
OPERATING REVENUES:
Electric $414,132 $468,652
Gas 120,425 112,941
-------
Total Operating Revenues 534,557 581,593
------- -------
OPERATING EXPENSES:
Fuel for power generation 115,099 139,994
Purchased power 76,717 66,859
Gas purchased for resale 90,713 90,188
Deferral of energy -electric -
net 7,225 41,576
Deferral of energy -gas -net 5,851 (363)
Other operating expenses 78,960 84,905
Maintenance 19,351 15,766
Depreciation and amortization 52,889 52,498
Taxes other than income 12,164 10,884
------
Total Operating Expenses 458,969 502,307
------- -------
OPERATING INCOME 75,588 79,286
OTHER INCOME (EXPENSE):
Interest expense (net of AFUDC-
debt: $482, $916, $888 and
$1,500) (34,158) (34,686)
Interest income (expense) on
regulatory items (4,260) (1,717)
AFUDC-equity 1,331 1,593
Other income 11,897 8,507
Other expense (6,270) (3,788)
Total Other Income (Expense) (31,460) (30,091)
------- -------
Income Before Income Tax Expense 44,128 49,195
Income tax expense 15,693 15,255
------ ------
NET INCOME $28,435 $33,940
======= =======
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 revenues 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 June 30,
----------------------------
Change
from
Prior
2010 2009 Year %
---- ---- -------
Operating Revenues $540,799 $575,769 -6.1%
Energy Costs:
Fuel for power generation 132,067 140,333
Purchased power 124,740 165,292
Deferred energy 39,960 59,809
------ ------
$296,767 $365,434 -18.8%
-------- --------
Gross Margin $244,032 $210,335 16.0%
======== ========
Other operating expenses 64,696 68,057
Maintenance 18,219 18,732
Depreciation and
amortization 57,654 53,510
Taxes other than income 9,793 8,361
----- -----
Operating Income $93,670 $61,675 -51.9%
======= =======
Six Months Ended June 30,
-------------------------
Change
from
Prior
2010 2009 Year %
---- ---- -------
Operating Revenues $967,759 $1,012,298 -4.4%
Energy Costs:
Fuel for power generation 288,182 294,395
Purchased power 195,967 253,498
Deferred energy 59,423 97,999
$543,572 $645,892 -15.8%
-------- --------
Gross Margin $424,187 $366,406 15.8%
======== ========
Other operating expenses 132,576 138,250
Maintenance 35,238 46,266
Depreciation and
amortization 112,755 105,873
Taxes other than income 19,819 17,424
------ ------
Operating Income $123,799 $58,593 -111.3%
======== =======
Sierra Pacific Power Company
Three Months Ended June 30,
----------------------------
Change
from
Prior
2010 2009 Year %
---- ---- -------
Operating Revenues:
Electric $204,151 $230,914
Gas 40,405 31,948
$244,556 $262,862 -7.0%
-------- --------
Energy Costs:
Fuel for power generation 49,595 63,952
Purchased power 40,581 29,678
Gas purchased for resale 25,154 19,916
Deferred energy -
electric 8,725 29,780
Deferred energy -gas 6,248 3,988
$130,303 $147,314 -11.5%
-------- --------
Gross Margin $114,253 $115,548 -1.1%
======== ========
Other operating expenses 38,288 40,890
Maintenance 10,641 8,900
Depreciation and
amortization 27,042 26,813
Taxes other than income 6,098 5,360
----- -----
Operating Income $32,184 $33,585 -4.2%
======= =======
Six Months Ended June 30,
-------------------------
Change
from
Prior
2010 2009 Year %
---- ---- -------
Operating Revenues:
Electric $414,132 $468,652
Gas 120,425 112,941
$534,557 $581,593 -8.1%
-------- --------
Energy Costs:
Fuel for power generation 115,099 139,994
Purchased power 76,717 66,859
Gas purchased for resale 90,713 90,188
Deferred energy -
electric 7,225 41,576
Deferred energy -gas 5,851 (363)
$295,605 $338,254 -12.6%
-------- --------
Gross Margin $238,952 $243,339 -1.8%
======== ========
Other operating expenses 78,960 84,905
Maintenance 19,351 15,766
Depreciation and
amortization 52,889 52,498
Taxes other than income 12,164 10,884
------ ------
Operating Income $75,588 $79,286 -4.7%
======= =======
Summary of Selected Operating Statistics
Nevada Power Company
Operating Revenues
(dollars in thousands)
Three Months Ended June 30,
----------------------------
Change Avg.
from Change
Prior in
2010 2009 Year % customers
---- ---- ------- ----------
Operating Revenues:
Residential $242,295 $263,556 -8.1% 0.2%
Commercial 113,806 120,297 -5.4% 0.5%
Industrial 168,747 171,895 -1.8% -0.2%
------- -------
Retail revenues 524,848 555,748 -5.6%
Other 15,951 20,021 -20.3%
------ ------
Total Operating
Revenues $540,799 $575,769 -6.1%
======== ========
Retail sales in
thousands of MWhs 4,960 5,309 -6.6%
Sierra Pacific Power
Company
Operating Revenues
(dollars in
thousands)
Three Months Ended June 30,
----------------------------
Change Avg.
from Change
Prior in
2010 2009 Year % customers
---- ---- ------- ----------
Electric Operating
Revenues:
Residential $70,363 $75,908 -7.3% 0.2%
Commercial 81,643 98,066 -16.7% 0.3%
Industrial 44,830 49,277 -9.0% -1.7%
------ ------
Retail revenues 196,836 223,251 -11.8%
Other 7,315 7,663 -4.5%
----- -----
Total Revenues $204,151 $230,914 -11.6%
======== ========
Retail sales in
thousands of MWhs 1,923 1,942 -1.0%
Three Months Ended June 30,
----------------------------
Change Avg.
from Change
Prior in
2010 2009 Year % customers
---- ---- ------- ----------
Gas Operating
Revenues:
Residential $20,382 $17,788 14.6%
Commercial 8,916 8,439 5.7%
Industrial 3,505 3,733 -6.1%
----- -----
Retail revenues 32,803 29,960 9.5% 0.7%
Wholesale revenue 7,007 1,426 391.4%
Miscellaneous 595 562 5.9%
--- ---
Total Revenues $40,405 $31,948 26.5%
======= =======
Retail sales in
thousands of
decatherms 2,852 2,260 26.2%
Nevada Power Company
Operating Revenues
(dollars in thousands)
Six Months Ended June 30,
--------------------------
Change
from
Prior
2010 2009 Year %
---- ---- -------
Operating Revenues:
Residential $438,888 $454,926 -3.5%
Commercial 208,075 217,091 -4.2%
Industrial 288,395 299,934 -3.8%
------- -------
Retail revenues 935,358 971,951 -3.8%
Other 32,401 40,347 -19.7%
------ ------
Total Operating Revenues $967,759 $1,012,298 -4.4%
======== ==========
Retail sales in thousands of
MWhs 9,047 9,429 -4.1%
Sierra Pacific Power Company
Operating Revenues
(dollars in thousands)
Six Months Ended June 30,
--------------------------
Change
from
Prior
2010 2009 Year %
---- ---- -------
Electric Operating Revenues:
Residential $153,522 $169,693 -9.5%
Commercial 158,618 188,504 -15.9%
Industrial 87,462 95,344 -8.3%
------ ------
Retail revenues 399,602 453,541 -11.9%
Other 14,530 15,111 -3.8%
------ ------
Total Revenues $414,132 $468,652 -11.6%
======== ========
Retail sales in thousands of
MWhs 3,883 3,922 -1.0%
Six Months Ended June 30,
--------------------------
Change
from
Prior
2010 2009 Year %
---- ---- -------
Gas Operating Revenues:
Residential $62,745 $63,670 -1.5%
Commercial 29,397 30,279 -2.9%
Industrial 9,444 9,625 -1.9%
----- -----
Retail revenues 101,586 103,574 -1.9%
Wholesale revenue 17,569 8,160 115.3%
Miscellaneous 1,270 1,207 5.2%
----- -----
Total Revenues $120,425 $112,941 6.6%
======== ========
Retail sales in thousands of
decatherms 8,836 8,366 5.6%
Financial Highlights
(Dollars in Thousands)
(Unaudited)
NV Energy, Inc.
Capital Structure June 30, 2010
-------------
Current maturities of long-term
debt $357,163 4.1%
Long-term debt 5,242,442 59.5%
Total debt $5,599,605 63.6%
Total shareholders' equity 3,210,763 36.4%
--------- ----
Total capitalization (including
current maturities of long-term
debt) $8,810,368 100.0%
========== =====
Nevada Power Company
Capital Structure June 30, 2010
-------------
Current maturities of long-term
debt $357,163 5.5%
Long-term debt 3,475,347 53.9%
Total debt $3,832,510 59.4%
Total shareholders' equity 2,614,530 40.6%
--------- ----
Total capitalization (including
current maturities of long-term
debt) $6,447,040 100.0%
========== =====
Sierra Pacific Power Company
Capital Structure June 30, 2010
-------------
Current maturities of long-term
debt $- 0.0%
Long-term debt 1,281,500 55.9%
Total debt $1,281,500 55.9%
Total shareholders' equity 1,012,710 44.1%
--------- ----
Total capitalization (including
current maturities of long-term
debt) $2,294,210 100.0%
========== =====
NVE Available Liquidity as of June
30, 2010 (dollars in millions)
----------------------------------
NVE NPC
--- ---
Cash and Cash Equivalents $17.5 $46.9
Balance available on Revolving
Credit Facilities N/A 310.3
-Less reduction for hedging
obligations N/A (65.8)
--- -----
$17.5 $291.4
===== ======
NV Energy, Inc
Capital Structure June 30, 2009
-------------
Current maturities of long-term
debt $9,085 0.1%
Long-term debt 5,571,799 64.3%
Total debt $5,580,884 64.4%
Total shareholders' equity 3,083,773 35.6%
--------- ----
Total capitalization (including
current maturities of long-term
debt) $8,664,657 100.0%
========== =====
Nevada Power Company
Capital Structure June 30, 2009
-------------
Current maturities of long-term
debt $9,085 0.1%
Long-term debt 3,712,016 59.3%
Total debt $3,721,101 59.4%
Total shareholders' equity 2,542,948 40.6%
--------- ----
Total capitalization (including
current maturities of long-term
debt) $6,264,049 100.0%
========== =====
Sierra Pacific Power Company
Capital Structure June 30, 2009
-------------
Current maturities of long-term
debt $- 0.0%
Long-term debt 1,373,992 58.6%
Total debt $1,373,992 58.6%
Total shareholders' equity 970,218 41.4%
------- ----
Total capitalization (including
current maturities of long-term
debt) $2,344,210 100.0%
========== =====
NVE Available Liquidity as of June
30, 2010 (dollars in millions)
----------------------------------
SPPC
----
Cash and Cash Equivalents $67.0
Balance available on Revolving
Credit Facilities 233.9
-Less reduction for hedging
obligations (21.4)
-----
$279.5
======
First Call Analyst:
FCMN Contact: rstillwell@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, Inc.
Web Site: http://www.nvenergy.com/
