News Releases
Sierra Pacific Resources Reports Second Quarter Financial Results
Aug 8, 2004
9:00pm
Sierra Pacific Resources
Contact: Andrea Smith
Phone: (702) 367-5683
For Immediate Release
Las Vegas, Nev. -- Sierra Pacific Resources (NYSE:SRP) today reported a consolidated net loss applicable to common stock of $44.9 million, or $0.38 per share, for the second quarter of 2004, compared with a revised loss of $217.3 million in the comparable quarter of 2003. The company's loss from continuing operations was $40.9 million, or $0.35 per share, in the 2004 second quarter, compared with a loss of $188.3 million, or $1.61 per share, in the same 2003 quarter.The net loss during the most recent quarter principally was the result of a pre-tax write-off of $47 million related to Piñon Pine, an experimental coal- gasification project for which certain costs were disallowed during a recent rate case, and $10 million in interest costs incurred during the quarter to extinguish debt.Walter Higgins, chairman and chief executive officer of Sierra Pacific Resources, said,"While any loss is disappointing, we are pleased to report that results from our combined utility operations showed continuing improvement. At the same time, we strengthened our company's financial condition significantly through the refinancing of debt. Since the beginning of this year, we have refinanced nearly $800 million, reducing our annual interest costs by approximately $3 million and improving our liquidity."For the first six months of 2004, Sierra Pacific Resources reported a net loss applicable to common stock of $89.3 million, or $0.76 per share, compared with a loss of $228.5 million, or $2.00 per share for the comparable 2003 period. The loss from continuing operations for the 2004 six months was $83.7 million, or $0.71 per share, compared with $196.6 million, or $1.72 per share in the 2003 period.The 2003 second quarter results reflect an unrealized loss of $124 million on the derivative instrument related to a convertible issuance, a write-off of disallowed deferred energy costs totaling $91 million, and losses of $33 million due to asset impairments of the company's telecommunications investment.Nevada Power CompanyNevada Power Company reported a net income of $13.6 million for the second quarter compared to a loss of $22.2 million for the same period in 2003.Revenue margin increased by $64 million over the second quarter of last year due largely to a 2003 write-off of $46 million of deferred energy costs. Of the 2004 remainder, revenue margin increased $12 million due to a weather- related increase in use per customer, higher general rates and customer growth. Nevada Power's operating and maintenance expenses remained flat with the same period last year.Depreciation and amortization increased $3 million in the second quarter of 2004 as a result of increases to plant in service including the Centennial Project. Interest on long-term debt increased $5 million due primarily to the August 2003 issuance of $350 million of General and Refunding bonds.Sierra Pacific Power CompanyAt Sierra Pacific Power, the second quarter loss after preferred dividends was $33.2 million compared with a loss of $28.9 million for the same period last year. An impairment loss of $47 million was recorded in the 2004 second quarter for plant costs for the Piñon Pine generating facility that was disallowed in the company's recent general rate case. The company has filed for judicial review in the Piñon Pine case.Electric revenue margin increased by $47.2 million over the 2003 quarter, due largely to a 2003 write off of $45 million in deferred energy costs. Contributing to a higher electric margin in the recent quarter were customer growth and a general rate increase in both Nevada and California. Mild weather led to a decline in use per customer during the 2004 quarter.Gas revenue margin decreased by $1 million, or 14 percent over last year's quarter as a decline in weather-related use per customer was partially offset by customer growth.Year to date, gas revenue margin increased by about $1 million due to customer growth that was partially offset by a weather-related decrease in use per customer.A detailed explanation of Sierra Pacific Resources'second quarter 2004 financial results is available in the company's Form 10-Q for the quarter ended June 30, 2004, which has been filed with the Securities and Exchange Commission and is available without charge through the EDGAR system at the SEC's website. The Form 10-Q report will also be posted on the Sierra Pacific Resources website at sierrapacificresources.com.About Sierra Pacific ResourcesHeadquartered in Nevada, Sierra Pacific Resources is a holding company whose principal subsidiaries are Nevada Power Company, the electric utility for most of southern Nevada, and Sierra Pacific Power Company, the electric utility for most of northern Nevada and the Lake Tahoe area of California. Sierra Pacific Power Company also distributes natural gas in the Reno-Sparks area of northern Nevada. Other subsidiaries include the Tuscarora Gas Pipeline Company, which owns 50 percent interest in an interstate natural gas transmission partnership and several unregulated energy services companies.Forward Looking Statements:This press release contains forward-looking statements regarding the future performance of Sierra Pacific Resources and its subsidiaries, Nevada Power Company and Sierra Pacific Power Company, 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. For Sierra Pacific Resources, these risks and uncertainties include, but are not limited to, Resources'ability to receive dividends from its subsidiaries in the near future and the financial performance of the Company's subsidiaries, particularly Nevada Power Company and Sierra Pacific Power Company. For Nevada Power Company and Sierra Pacific Power Company, these risks and uncertainties include, but are not limited to, adverse decisions in the Enron litigation or other pending or future litigation, unfavorable rulings in their future rate cases, their ability to purchase sufficient power to meet their power demands, their ability to access the capital markets for general corporate purposes and NPC's ability to access the capital markets to finance its previously-announced acquisition of Duke's Moapa Power Plant upon approval of such acquisition, whether terminated power suppliers will be successful in pursuing claims against Nevada Power for liquidated damages under their terminated power contracts and weather conditions during the summer months of 2004 and beyond. Additional cautionary statements regarding other risk factors that could have an effect on the future performance of Sierra Pacific Resources, Nevada Power Company and Sierra Pacific Power Company are contained in their Quarterly Reports on Form 10-Q for the quarter ended June 30, 2004 and their Annual Reports on Form 10-K for the year ended December 31, 2003, filed with the SEC. The Companies 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.Sierra Pacific Resources
Financial Highlights
(in thousands, except for per share amount)
###
Contact: Andrea Smith
Phone: (702) 367-5683
For Immediate Release
Las Vegas, Nev. -- Sierra Pacific Resources (NYSE:SRP) today reported a consolidated net loss applicable to common stock of $44.9 million, or $0.38 per share, for the second quarter of 2004, compared with a revised loss of $217.3 million in the comparable quarter of 2003. The company's loss from continuing operations was $40.9 million, or $0.35 per share, in the 2004 second quarter, compared with a loss of $188.3 million, or $1.61 per share, in the same 2003 quarter.The net loss during the most recent quarter principally was the result of a pre-tax write-off of $47 million related to Piñon Pine, an experimental coal- gasification project for which certain costs were disallowed during a recent rate case, and $10 million in interest costs incurred during the quarter to extinguish debt.Walter Higgins, chairman and chief executive officer of Sierra Pacific Resources, said,"While any loss is disappointing, we are pleased to report that results from our combined utility operations showed continuing improvement. At the same time, we strengthened our company's financial condition significantly through the refinancing of debt. Since the beginning of this year, we have refinanced nearly $800 million, reducing our annual interest costs by approximately $3 million and improving our liquidity."For the first six months of 2004, Sierra Pacific Resources reported a net loss applicable to common stock of $89.3 million, or $0.76 per share, compared with a loss of $228.5 million, or $2.00 per share for the comparable 2003 period. The loss from continuing operations for the 2004 six months was $83.7 million, or $0.71 per share, compared with $196.6 million, or $1.72 per share in the 2003 period.The 2003 second quarter results reflect an unrealized loss of $124 million on the derivative instrument related to a convertible issuance, a write-off of disallowed deferred energy costs totaling $91 million, and losses of $33 million due to asset impairments of the company's telecommunications investment.Nevada Power CompanyNevada Power Company reported a net income of $13.6 million for the second quarter compared to a loss of $22.2 million for the same period in 2003.Revenue margin increased by $64 million over the second quarter of last year due largely to a 2003 write-off of $46 million of deferred energy costs. Of the 2004 remainder, revenue margin increased $12 million due to a weather- related increase in use per customer, higher general rates and customer growth. Nevada Power's operating and maintenance expenses remained flat with the same period last year.Depreciation and amortization increased $3 million in the second quarter of 2004 as a result of increases to plant in service including the Centennial Project. Interest on long-term debt increased $5 million due primarily to the August 2003 issuance of $350 million of General and Refunding bonds.Sierra Pacific Power CompanyAt Sierra Pacific Power, the second quarter loss after preferred dividends was $33.2 million compared with a loss of $28.9 million for the same period last year. An impairment loss of $47 million was recorded in the 2004 second quarter for plant costs for the Piñon Pine generating facility that was disallowed in the company's recent general rate case. The company has filed for judicial review in the Piñon Pine case.Electric revenue margin increased by $47.2 million over the 2003 quarter, due largely to a 2003 write off of $45 million in deferred energy costs. Contributing to a higher electric margin in the recent quarter were customer growth and a general rate increase in both Nevada and California. Mild weather led to a decline in use per customer during the 2004 quarter.Gas revenue margin decreased by $1 million, or 14 percent over last year's quarter as a decline in weather-related use per customer was partially offset by customer growth.Year to date, gas revenue margin increased by about $1 million due to customer growth that was partially offset by a weather-related decrease in use per customer.A detailed explanation of Sierra Pacific Resources'second quarter 2004 financial results is available in the company's Form 10-Q for the quarter ended June 30, 2004, which has been filed with the Securities and Exchange Commission and is available without charge through the EDGAR system at the SEC's website. The Form 10-Q report will also be posted on the Sierra Pacific Resources website at sierrapacificresources.com.About Sierra Pacific ResourcesHeadquartered in Nevada, Sierra Pacific Resources is a holding company whose principal subsidiaries are Nevada Power Company, the electric utility for most of southern Nevada, and Sierra Pacific Power Company, the electric utility for most of northern Nevada and the Lake Tahoe area of California. Sierra Pacific Power Company also distributes natural gas in the Reno-Sparks area of northern Nevada. Other subsidiaries include the Tuscarora Gas Pipeline Company, which owns 50 percent interest in an interstate natural gas transmission partnership and several unregulated energy services companies.Forward Looking Statements:This press release contains forward-looking statements regarding the future performance of Sierra Pacific Resources and its subsidiaries, Nevada Power Company and Sierra Pacific Power Company, 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. For Sierra Pacific Resources, these risks and uncertainties include, but are not limited to, Resources'ability to receive dividends from its subsidiaries in the near future and the financial performance of the Company's subsidiaries, particularly Nevada Power Company and Sierra Pacific Power Company. For Nevada Power Company and Sierra Pacific Power Company, these risks and uncertainties include, but are not limited to, adverse decisions in the Enron litigation or other pending or future litigation, unfavorable rulings in their future rate cases, their ability to purchase sufficient power to meet their power demands, their ability to access the capital markets for general corporate purposes and NPC's ability to access the capital markets to finance its previously-announced acquisition of Duke's Moapa Power Plant upon approval of such acquisition, whether terminated power suppliers will be successful in pursuing claims against Nevada Power for liquidated damages under their terminated power contracts and weather conditions during the summer months of 2004 and beyond. Additional cautionary statements regarding other risk factors that could have an effect on the future performance of Sierra Pacific Resources, Nevada Power Company and Sierra Pacific Power Company are contained in their Quarterly Reports on Form 10-Q for the quarter ended June 30, 2004 and their Annual Reports on Form 10-K for the year ended December 31, 2003, filed with the SEC. The Companies 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.Sierra Pacific Resources
Financial Highlights
(in thousands, except for per share amount)
| SRP | NPC | SPP | ||||
| Revenues | $ 677,420 | $ 666,251 | $ 449,925 | $ 425,512 | $ 224,304 | $ 240,899 |
| Operating Expenses | 602,686 | 660,058 | 400,455 | 415,028 | 206,412 | 248,949 |
| Net Income (Loss) Available for Common | (44,884) | (217,250) | 13,590 | (22,192) | (33,162) | (28,930) |
| Net Income (Loss) Per Share Applicable to Common Stock | $ (0.38) | $ (1.85) | ___ | ___ | ___ | ___ |
| Net Income (Loss) Contribution er Share | __ | ___ | $0.12 | $(0.19) | $(0.28) | $(0.25) |
| SRP Weighted Average Shares Outstanding | 117,280 | 117,144 | 117,280 | 117,144 | 117,280 | 117,144 |
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Year to Date | SRP | NPC | SPP | |||
|  | 2004 | 2003 | 2004 | 2003 | 2004 | 2003 |
| Revenues | $1,265,537 | $1,268,763 | $776,458 | $757,164 | $485,621 | $510,970 |
| Operating Expenses | 1,144,717 | 1,215,747 | 705,988 | 729,267 | 440,087 | 495,200 |
Net Loss Available for Common | (89,334) | (228,470) | (1,816) | (37,438) | (26,466) | 25,907 |
| Net Loss Per Share Applicable to Common Stock | $(0.76) | $(2.00) | __ | __ | __ | __ |
| Net Loss Contribution Per Share | __ | __ | $(0.02) | $(0.33) | $(0.23) | $(0.23) |
| SRP Weighted Average Shares Outstanding | 117,260 | 114,388 | 117,260 | 114,338 | 117,260 | 114,338 |
