NV Energy Reports First Quarter Earnings, Increases Dividend 31% and Initiates Earnings Guidance

LAS VEGAS, May 8, 2012 /PRNewswire/ -- NV Energy, Inc. (NYSE: NVE) today announced financial results for the three months ended March 31, 2012.


NV Energy, Inc.



Consolidated Results



Three Months Ended March 31,
















Net Income


EPS



($ in millions)


(diluted)



2012


2011


2012


2011



$

12.2


$

2.3


$

0.05


$

0.01


"Results for the first quarter met our expectations," said Michael Yackira, NV Energy president and chief executive officer. "Earnings increased despite mild weather, largely due to higher income associated with our investment in the Harry Allen generating station. Operating and maintenance expenses were virtually unchanged, reflecting the continued success of our cost control efforts."

Dividend Increase and Earnings Guidance

The Company also announced that its board of directors has declared a cash dividend of $0.17 per share, payable June 20, 2012 to shareholders of record on June 5, 2012. The company paid a quarterly dividend of $0.13 per share in March 2012. Assuming continuation of the $0.17 quarterly payment for the remainder of this year, total dividends for 2012 would be $0.64 per share, a 31 percent increase compared to the $0.49 paid in 2011.

"The dividend increase we announce today demonstrates our confidence that NV Energy is entering a period of more stable earnings and sustained free cash flow," said Mr. Yackira. "In 2012, we expect to earn between $1.15 and $1.25 per share, resulting in a dividend payout ratio of approximately 50 percent.

"Our policy will be to target a dividend payout ratio in the range of 55 to 65 percent. Given our current expectations for earnings and cash flow, this should allow us to increase dividends by about 10 percent annually for the next few years. Thereafter, our policy will be to grow dividends in line with sustainable earnings growth," Mr. Yackira said. "Earnings and free cash flow should be sufficient to achieve our target payout ratio while reducing debt, strengthening our capital structure and considering potential new investments."

With the increase announced today, NV Energy has more than doubled its dividend since reinstating it in July 2007 at $0.08 per share. During this period the company also:

  • successfully completed a major generation expansion plan,
  • reduced reliance on purchased power,
  • increased its commitment to renewable energy,
  • expanded customer energy efficiency and conservation programs, and
  • began installing smart meters system-wide.

Key factors expected to drive financial results in 2012 and beyond are shown in the "First Quarter 2012: Financial Results" presentation posted on www.nvenergy.com this morning. 

Management's earnings expectations assume normal weather and other drivers listed in the presentation.  The declaration of future dividends is at the discretion of the Board of Directors and is subject to numerous factors that ordinarily affect dividend policy, including the results of NV Energy operations and its financial position as well as general economic and business conditions.

Webcast Scheduled for 7 a.m. PDT today, Tuesday, May 8, 2012

Senior management of NV Energy will review the company's first quarter 2012 financial results and other matters during a conference call and live webcast today, Tuesday, May 8, at 7 a.m. Pacific Daylight Time.

The webcast will be accessible on the NV Energy website at: www.nvenergy.com.

A taped replay will be available on the company's website and by telephone for approximately 30 days.  To listen to the replay by telephone, call (800) 475-6701. International callers should dial (320) 365-3844. Use the conference call access code, 244930.

May 16 Investor Meeting and Webcast

NV Energy's senior management will host a meeting with the financial community on Wednesday, May 16, 2012 in New York.  The presentation will be accessible to the public via webcast on www.nvenergy.com.   

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 combined 45,592 square-mile service territory, NV Energy provides a wide range of energy services and products to approximately 2.4 million citizens of Nevada and nearly 40 million tourists annually.

This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 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. Forward-looking statements include earnings guidance and estimates or forecasts of operating and financial metrics.  These statements reflect current expectations of future conditions and events and as such are subject to a variety of risks, uncertainties and assumptions that could cause actual results to differ materially from current expectations. These risks, uncertainties and assumptions 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, including but not limited to those associated with the ON Line project, their ability to maintain access to the capital markets for general corporate purposes and to finance construction projects, employee workforce factors, unseasonable weather, drought, wildfire and other natural phenomena, explosions, fires, accidents, mechanical breakdowns that may occur while operating and maintaining an electric and natural gas system,  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. Further risks, uncertainties and assumptions that may cause actual results to differ from current expectations pertain to weather conditions, customer and sales growth, plant outages, operations and maintenance expense, depreciation and allowance for funds used during construction, interest rates and expense, cash flow and regulatory matters.  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 for the year ended December 31, 2011, each filed with the Securities and Exchange Commission. 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 COMPREHENSIVE INCOME



(Dollars in Thousands, Except Share Amounts)



(Unaudited)























Three Months Ended





March 31,





2012


2011












OPERATING REVENUES

$

611,420


$

640,983












OPERATING EXPENSES:









Fuel for power generation


117,035



146,338




Purchased power


117,116



135,016




Gas purchased for resale


31,617



52,632




Deferred energy


(11,739)



(1,952)




Energy efficiency program costs


19,425



-




Other operating expenses


103,601



105,974




Maintenance


32,526



29,762




Depreciation and amortization


90,862



83,102




Taxes other than income


14,509



16,245



Total Operating Expenses


514,952



567,117



OPERATING INCOME


96,468



73,866












OTHER INCOME (EXPENSE):









Interest expense









(net of AFUDC-debt: $1,595 and $6,210)


(77,931)



(77,343)




Interest income (expense) on regulatory items


(2,202)



(888)




AFUDC-equity


1,932



7,642




Other income


4,194



2,984




Other expense


(3,060)



(4,656)



Total Other Income (Expense)


(77,067)



(72,261)



Income Before Income Tax Expense


19,401



1,605












Income tax expense (benefit)


7,228



(725)












NET INCOME


12,173



2,330












Other comprehensive income (loss):








Change in compensation retirement benefits liability and amortization








(Net of taxes $(89) and $(615))


155



1,142



Change in market value of risk management assets and liabilities








(Net of taxes $141 in 2012)


(246)



-



OTHER COMPREHENSIVE INCOME (LOSS)


(91)



1,142











COMPREHENSIVE INCOME

$

12,082


$

3,472











Amount per share basic and diluted









Net income per share - basic and diluted

$

0.05


$

0.01











Weighted Average Shares of Common Stock Outstanding - basic

235,999,750


235,526,425



Weighted Average Shares of Common Stock Outstanding - diluted

237,526,863


236,784,658



Dividends Declared Per Share of Common Stock

$

0.13


$

0.12






NV ENERGY, INC.



CONSOLIDATED BALANCE SHEETS



(Dollars in Thousands, Except Share Amounts)



(Unaudited)


















March 31,


December 31,







2012


2011



ASSETS




















Current Assets: 










Cash and cash equivalents


$

100,335


$

145,944




Accounts receivable less allowance for uncollectible accounts:











2012 - $6,453; 2011 - $8,150



325,388



355,091




Materials, supplies and fuel, at average cost



130,628



129,663




Current income taxes receivable



82



82




Deferred income taxes



117,079



104,958




Other current assets



49,802



36,782



Total Current Assets



723,314



772,520














Utility Property:










Plant in service



11,955,428



11,923,717




Construction work-in-progress



556,170



487,427





Total



12,511,598



12,411,144




Less accumulated provision for depreciation



3,240,688



3,184,071





Total Utility Property, Net



9,270,910



9,227,073














Investments and other property, net



59,273



57,021














Deferred Charges and Other Assets:










Deferred energy



99,566



102,525




Regulatory assets



1,174,069



1,186,127




Regulatory asset for pension plans



212,259



215,656




Other deferred charges and assets



88,020



74,206



Total Deferred Charges and Other Assets



1,573,914



1,578,514

























TOTAL ASSETS


$

11,627,411


$

11,635,128



























(Continued)






NV ENERGY, INC.



CONSOLIDATED BALANCE SHEETS



(Dollars in Thousands, Except Share Amounts)



(Unaudited)


















March 31,


December 31,



LIABILITIES AND SHAREHOLDERS' EQUITY


2012


2011














Current Liabilities:










Current maturities of long-term debt


$

138,048


$

139,985




Accounts payable



270,828



312,990




Accrued expenses



97,816



128,144




Deferred energy



233,071



245,164




Other current liabilities



68,489



65,572



Total Current Liabilities



808,252



891,855














Long-term debt



5,035,066



5,008,931














Commitments and Contingencies




















Deferred Credits and Other Liabilities:










Deferred income taxes



1,311,996



1,306,510




Deferred investment tax credit



15,500



16,140




Accrued retirement benefits



94,572



92,351




Regulatory liabilities



503,911



486,259




Other deferred credits and liabilities



470,633



427,003



Total Deferred Credits and Other Liabilities



2,396,612



2,328,263












Shareholders' Equity:










Common stock, $1.00 par value; 350 million shares authorized










235,999,750 issued and outstanding for 2012 and 2011



236,000



236,000




Other paid-in capital



2,713,736



2,713,736




Retained earnings



445,770



464,277




Accumulated other comprehensive loss



(8,025)



(7,934)



Total Shareholders' Equity



3,387,481



3,406,079












TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY


$

11,627,411


$

11,635,128














(Concluded)



NV ENERGY, INC.

CONSOLIDATED CASH FLOW HIGHLIGHTS AND OPERATING STATISTICS

(unaudited)

























CONSOLIDATED CASH FLOW HIGHLIGHTS










(dollars in thousands)













Three Months Ended March 31,











Change from





2012


2011


Prior Year














Net Cash from Operating Activities

$

67,316


$

85,523


(21.3)%















Additions to Utility Plant (Excluding AFUDC-Equity)

$

(115,817)


$

(144,097)


(19.6)%















ELECTRIC SALES - MWh's










(in thousands)
















Three Months Ended March 31,













Change in










Change from


Average






2012


2011


Prior Year


Customers
















Residential


2,136


2,123


0.6%



1.3%



Commercial


1,616


1,570


2.9%



(0.3)%



Industrial


2,285


2,300


(0.7)%



(2.6)%




TOTAL RETAIL


6,037


5,993


0.7%



1.1%



GAS SALES - Dth









(in thousands)













Three Months Ended March 31,










Change from






2012


2011


Prior Year













Residential


3,708


3,962


(6.4)%



Commercial


1,879


2,001


(6.1)%



Industrial


476


571


(16.6)%




TOTAL RETAIL


6,063


6,534


(7.2)%



ELECTRIC SOURCES - MWh's





(in thousands)











Three Months Ended March 31,








Change from




2012


2011


Prior Year


Generated


4,465


3,822


16.8%



Purchased


2,037


2,682


(24.0)%



TOTAL


6,502


6,504





DEGREE DAYS


























Three Months Ended March 31,









Change from







2012


2011


Prior Year


Normal


SOUTH












Heating


924


1,046


(11.7)%



1,035



Cooling


41


32


28.1%



29














NORTH












Heating


2,128


2,315


(8.1)%



2,228



Cooling


-


-


-%



-






NEVADA POWER COMPANY



CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS



(Dollars in Thousands)



(unaudited)























Three Months Ended





March 31,





2012


2011












OPERATING REVENUES

$

395,688


$

390,068












OPERATING EXPENSES:









Fuel for power generation


80,549



101,070




Purchased power


81,531



95,566




Deferred energy


2,171



6,730




Energy efficiency program costs


15,774



-




Other operating expenses


66,462



65,101




Maintenance


23,073



22,337




Depreciation and amortization


64,990



57,673




Taxes other than income


8,454



10,058



Total Operating Expenses


343,004



358,535



OPERATING INCOME


52,684



31,533












OTHER INCOME (EXPENSE):









Interest expense









(net of AFUDC-debt: $1,179 and $5,790)


(54,405)



(52,033)




Interest income (expense) on regulatory items


(2,016)



635




AFUDC-equity


1,413



7,098




Other income


1,709



1,546




Other expense


(1,346)



(2,732)



Total Other Expense


(54,645)



(45,486)



Loss Before Income Tax Expense


(1,961)



(13,953)












Income tax benefit


(645)



(4,933)












NET LOSS


(1,316)



(9,020)












Other comprehensive income (loss):








Change in compensation retirement benefits liability and amortization








(Net of taxes $(32) and $(405))


63



753












COMPREHENSIVE LOSS

$

(1,253)


$

(8,267)



NEVADA POWER COMPANY

 CONSOLIDATED OPERATING STATISTICS

(unaudited)





























ELECTRIC SALES - MWh's










(in thousands)
















Three Months Ended March 31,












Change in










Change from


Average






2012


2011


Prior Year


Customers
















Residential


1,536


1,528


0.5%



1.5%



Commercial


957


915


4.6%



0.1%



Industrial


1,652


1,697


(2.7)%



(2.5)%




TOTAL RETAIL


4,145


4,140


0.1%



1.4%



ELECTRIC SOURCES - MWh's





(in thousands)











Three Months Ended March 31,








Change from




2012


2011


Prior Year


Generated


3,287


2,773


18.5%



Purchased


1,026


1,583


(35.2)%



TOTAL


4,313


4,356









SIERRA PACIFIC POWER COMPANY



CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME



(Dollars in Thousands)



(unaudited)























Three Months Ended





March 31,





2012


2011



OPERATING REVENUES:









Electric

$

169,806


$

178,617




Gas


45,922



72,294



Total Operating Revenues


215,728



250,911












OPERATING EXPENSES:









Fuel for power generation


36,486



45,268




Purchased power


35,585



39,450




Gas purchased for resale


31,617



52,632




Deferral of energy - electric - net


(12,670)



(11,931)




Deferral of energy - gas - net


(1,240)



3,249




Energy efficiency program costs


3,651



-




Other operating expenses


36,432



40,216




Maintenance


9,453



7,425




Depreciation and amortization


25,872



25,429




Taxes other than income


5,863



6,024



Total Operating Expenses


171,049



207,762



OPERATING INCOME


44,679



43,149












OTHER INCOME (EXPENSE):









Interest expense









(net of AFUDC-debt: $416 and $420)


(16,973)



(16,946)




Interest income (expense) on regulatory items


(186)



(1,523)




AFUDC-equity


519



544




Other income


2,183



1,264




Other expense


(1,335)



(1,594)



Total Other Income (Expense)


(15,792)



(18,255)



Income Before Income Tax Expense


28,887



24,894












Income tax expense


10,243



8,318












NET INCOME


18,644



16,576












Other comprehensive income:








Change in compensation retirement benefits liability and amortization








(Net of taxes $(23) and $(841))


42



1,561












COMPREHENSIVE INCOME

$

18,686


$

18,137



SIERRA PACIFIC POWER COMPANY

 CONSOLIDATED OPERATING STATISTICS

(unaudited)





























ELECTRIC SALES - MWh's










(in thousands)
















Three Months Ended March 31,













Change in










Change from


Average






2012


2011


Prior Year


Customers
















Residential


600


595


0.8%



0.6%



Commercial


659


655


0.6%



(1.1)%



Industrial


633


603


5.0%



(3.7)%




TOTAL RETAIL


1,892


1,853


2.1%



0.3%



GAS SALES - Dth









(in thousands)













Three Months Ended March 31,










Change from






2012


2011


Prior Year













Residential


3,708


3,962


(6.4)%



Commercial


1,879


2,001


(6.1)%



Industrial


476


571


(16.6)%




TOTAL RETAIL


6,063


6,534


(7.2)%



ELECTRIC SOURCES - MWh's





(in thousands)











Three Months Ended March 31,








Change from




2012


2011


Prior Year


Generated


1,178


1,049


12.3%



Purchased


1,011


1,099


(8.0)%



TOTAL


2,189


2,148





Consolidated gross margin is presented by NV Energy, Inc. in order to provide information that management believes aids the reader in determining how profitable the Utilities' electric and gas businesses are at the most fundamental level. Consolidated 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.

NV Energy, Inc. believes presenting consolidated gross margin allows the reader to assess the impact of the Utilities' regulatory treatment and their overall regulatory environment on a consistent basis. Consolidated gross margin, as a percentage of revenue, is primarily impacted by the fluctuations in regulated utility electric and natural gas supply costs versus the fixed rates collected from utility 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 utility customers. Consolidated gross margin, which NV Energy, Inc. calculates as operating revenues less energy and energy efficiency program costs, provides a measure of income available to support the other operating expenses of the Utilities. Consolidated gross margin changes are based primarily on the Utilities' general base rate adjustments (which are required to be filed by statute every three years). Reconciliations between GAAP operating income and gross margin are provided in the table herein. These non-GAAP measures should not be considered as substitutes for the GAAP measures.

NV Energy, Inc.

Consolidated Gross Margin

(dollars in thousands)



Three Months Ended March 31,










Change from




2012


2011


Prior Year %


Operating Revenues:

$

611,420


$

640,983


(4.6)%












Energy Costs:










Fuel for power generation


117,035



146,338


(20.0)%



Purchased power


117,116



135,016


(13.3)%



Gas purchased for resale


31,617



52,632


(39.9)%



Deferred energy


(11,739)



(1,952)


501.4%


Energy efficiency program costs


19,425



-


N/A




$

273,454


$

332,034


(17.6)%












Gross Margin

$

337,966


$

308,949


9.4%












Other operating expenses


103,601



105,974




Maintenance


32,526



29,762




Depreciation and amortization


90,862



83,102




Taxes other than income


14,509



16,245














Operating Income

$

96,468


$

73,866


30.6%



 

SOURCE NV Energy, Inc.



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