NV Energy Reports Strong Third Quarter Results; Increases Earnings Guidance for 2012

LAS VEGAS, Nov. 2, 2012 /PRNewswire/ -- NV Energy, Inc. (NYSE: NVE) today announced financial results for the three-and nine-month periods ended September 30, 2012.

(Logo: http://photos.prnewswire.com/prnh/20100825/LA55163LOGO)


NV Energy, Inc.



Consolidated Results



Periods Ended September 30
















Net Income


EPS



($ in millions)


(diluted)



2012


2011


2012


2011


Three Months

$

223.2


$

173.5


$

0.94


$

0.73


Nine Months


304.8



188.7



1.28



0.80


"Our strong third quarter results were largely due to higher earnings from the investment in the Harry Allen Generating Station, increased electricity sales, and lower interest expense," said Michael Yackira, NV Energy president and chief executive officer. "Our investments in generating capacity over the past five years have enabled us to increase Nevada's energy independence while maintaining residential customer rates at about the same level as five years ago. Our cost control efforts remain on track. Operating and maintenance expenses for 2012 to date are virtually unchanged from last year."

The increased electricity sales in the third quarter were primarily due to increased customer usage independent of weather effects, and customer growth. Warmer weather increased earnings by approximately $0.01 per share for the third quarter of 2012 compared to the same period a year ago. Weather was hotter than normal for both quarterly periods, benefiting earnings by about $0.04 per share for the third quarter of 2012, and about $0.03 per share for the same period in 2011, compared to historically normal conditions. For information on cooling and heating degree-days and electricity sales, see the Operating Statistics section of this news release.

In the quarter ended September 30, 2012, NV Energy recorded a $0.02 per share ($5.5 million pre-tax) gain on a previously disclosed asset sale.

Earnings Guidance
NV Energy's last earnings guidance statement, dated July 27, 2012, indicated that the company expected to earn between $1.15 and $1.25 per share for 2012, with the potential for earnings to be at the upper end of that range assuming normal weather in the second half of the year. 

Aided in part by warmer-than-normal weather, results for 2012 to date have exceeded the company's expectations, and NV Energy is revising its earnings guidance accordingly. The company now expects to earn between $1.30 and $1.40 per share for calendar year 2012, assuming normal weather in the fourth quarter.

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

Webcast Scheduled for 7 a.m. PDT today, Friday, November 2, 2012
Senior management of NV Energy will review the company's third quarter 2012 financial results and other matters during a conference call and live webcast today, Friday, November 2, 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 260407.

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, and quarterly reports on Form 10-Q for the periods ended March 31, 2012 and June 30, 2012, 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


Nine Months Ended




September 30,


September 30,




2012


2011


2012


2011
















OPERATING REVENUES

$

1,026,488


$

1,017,796


$

2,378,606


$

2,333,710
















OPERATING EXPENSES:














Fuel for power generation


171,316



216,779



400,936



519,920



Purchased power


205,686



223,348



486,894



518,672



Gas purchased for resale


5,382



10,137



46,491



87,753



Deferred energy


(29,036)



(33,620)



(30,285)



(43,678)



Energy efficiency program costs


32,584



23,047



76,609



23,047



Other operating expenses


100,108



104,598



307,080



308,119



Maintenance


19,014



11,369



76,190



73,317



Depreciation and amortization


94,512



93,737



281,690



266,445



Taxes other than income


15,682



15,205



44,457



46,134


Total Operating Expenses


615,248



664,600



1,690,062



1,799,729


OPERATING INCOME


411,240



353,196



688,544



533,981
















OTHER INCOME (EXPENSE):














Interest expense














(net of AFUDC-debt: $1,976, $1,326, $5,479 and $10,371)


(73,667)



(80,496)



(226,162)



(238,718)



Interest income (expense) on regulatory items


(2,024)



(1,282)



(6,203)



(3,549)



AFUDC-equity


2,415



1,690



6,666



12,854



Other income


8,827



1,611



19,312



6,351



Other expense


(4,209)



(9,857)



(11,909)



(23,600)


Total Other Income (Expense)


(68,658)



(88,334)



(218,296)



(246,662)


Income Before Income Tax Expense


342,582



264,862



470,248



287,319
















Income tax expense


119,412



91,400



165,466



98,639
















NET INCOME


223,170



173,462



304,782



188,680
















Other comprehensive income (loss):













Change in compensation retirement benefits liability and amortization













(Net of taxes $(74), $(293), $(246) and $(1,302))


155



544



464



2,417


Change in market value of risk management assets and liabilities













(Net of taxes $91, $0, $355 and $0)


(193)



-



(668)



-
















OTHER COMPREHENSIVE INCOME (LOSS)


(38)



544



(204)



2,417
















COMPREHENSIVE INCOME

$

223,132


$

174,006


$

304,578


$

191,097
















Amount per share basic and diluted














Net income per share - basic

$

0.95


$

0.74


$

1.29


$

0.80



Net income per share - diluted

$

0.94


$

0.73


$

1.28


$

0.80


Weighted Average Shares of Common Stock Outstanding - basic


235,961,402



235,990,373



235,986,874



235,796,321


Weighted Average Shares of Common Stock Outstanding - diluted


238,121,732



237,901,330



237,850,530



237,320,796


Dividends Declared Per Share of Common Stock

$

0.17


$

0.12


$

0.47


$

0.36



















 


NV ENERGY, INC.



CONSOLIDATED BALANCE SHEETS



(Dollars in Thousands, Except Share Amounts)



(Unaudited)


















September 30,


December 31,







2012


2011



ASSETS




















Current Assets: 










Cash and cash equivalents


$

207,903


$

145,944




Accounts receivable less allowance for uncollectible accounts:











2012 - $9,750; 2011 - $8,150



511,107



355,091




Materials, supplies and fuel, at average cost



147,984



129,663




Current income taxes receivable



-



82




Deferred income taxes



165,015



104,958




Other current assets



47,172



36,782



Total Current Assets



1,079,181



772,520














Utility Property:










Plant in service



12,074,285



11,923,717




Construction work-in-progress



658,494



487,427





Total



12,732,779



12,411,144




Less accumulated provision for depreciation



3,351,132



3,184,071





Total Utility Property, Net



9,381,647



9,227,073














Investments and other property, net



58,666



57,021














Deferred Charges and Other Assets:










Deferred energy



90,244



102,525




Regulatory assets



1,121,185



1,186,127




Regulatory asset for pension plans



207,137



215,656




Other deferred charges and assets



77,999



74,206



Total Deferred Charges and Other Assets



1,496,565



1,578,514

























TOTAL ASSETS


$

12,016,059


$

11,635,128



























(Continued)



 


NV ENERGY, INC.



CONSOLIDATED BALANCE SHEETS



(Dollars in Thousands, Except Share Amounts)



(Unaudited)


















September 30,


December 31,



LIABILITIES AND SHAREHOLDERS' EQUITY


2012


2011














Current Liabilities:










Current maturities of long-term debt


$

258,024


$

139,985




Accounts payable



322,940



312,990




Accrued expenses



101,199



128,144




Deferred energy



214,181



245,164




Other current liabilities



68,172



65,572



Total Current Liabilities



964,516



891,855














Long-term debt



4,766,563



5,008,931














Commitments and Contingencies




















Deferred Credits and Other Liabilities:










Deferred income taxes



1,546,998



1,306,510




Deferred investment tax credit



14,109



16,140




Accrued retirement benefits



79,405



92,351




Regulatory liabilities



541,823



486,259




Other deferred credits and liabilities



507,417



427,003



Total Deferred Credits and Other Liabilities



2,689,752



2,328,263












Shareholders' Equity:










Common stock, $1.00 par value; 350 million shares authorized; 235,999,750 issued










for 2012 and 2011; 235,747,750 and 235,999,750 outstanding for 2012 and 2011, respectively



236,000



236,000




Treasury stock, at cost, 252,000 shares and 0 shares for 2012 and 2011, respectively



(4,509)



-




Other paid-in capital



2,713,736



2,713,736




Retained earnings



658,139



464,277




Accumulated other comprehensive loss



(8,138)



(7,934)



Total Shareholders' Equity



3,595,228



3,406,079














TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY


$

12,016,059


$

11,635,128

























(Concluded)



 

NV ENERGY, INC.


FREE CASH FLOW AND CONSOLIDATED OPERATING STATISTICS


(Unaudited)















FREE CASH FLOW











(dollars in thousands)














Nine Months Ended September 30,












Change from






2012


2011


Prior Year
















Free Cash Flow*

$

256,404


$

(2,836)


N/A


















*

Free cash flow is a non-GAAP financial measure as defined by the SEC.  See the "Non-GAAP Financial Measures" section for additional information and GAAP reconciliation.    



ELECTRIC SALES - MWh's


















(in thousands)






















Three Months Ended September 30,


Nine Months Ended September 30,













Change in

Average

Customers



















Change from

Prior Year















2012


2011




2012


2011


Change from

Prior Year


Change in

Average

Customers



























Residential

4,419


4,323


2.2

%


1.2

%


9,356


8,694


7.6

%


1.3

%



Commercial

2,223


2,141


3.8

%


0.8

%


5,713


5,472


4.4

%


0.3

%



Industrial

2,831


2,712


4.4

%


(0.4)

%


7,841


7,680


2.1

%


(1.7)

%




TOTAL RETAIL

9,473


9,176


3.2

%


1.1

%


22,910


21,846


4.9

%


1.1

%





































 

GAS SALES - Dth













(in thousands)

















Three Months Ended September 30,


Nine Months Ended September 30,




















2012


2011


Change from

Prior Year


2012


2011


Change from

Prior Year



















Residential

642


638


0.6

%


5,613


6,318


(11.2)

%


Commercial

374


389


(3.9)

%


2,939


3,228


(9.0)

%


Industrial

153


160


(4.4)

%


876


1,047


(16.3)

%



TOTAL RETAIL

1,169


1,187


(1.5)

%


9,428


10,593


(11.0)

%


 

ELECTRIC SOURCES - MWh's












(in thousands)
















Three Months Ended September 30,


Nine Months Ended September 30,


















2012


2011


Change from

Prior Year


2012


2011


Change from

Prior Year


Generated


6,617


6,180


7.1

%


16,093


14,477


11.2

%


Purchased


3,363


3,577


(6.0)

%


8,446


9,081


(7.0)

%


TOTAL


9,980


9,757


2.3

%


24,539


23,558


4.2

%


 

DEGREE DAYS


















































Three Months Ended September 30,


Nine Months Ended September 30,









% Change From








% Change From



2012


2011


Normal*


Prior Year


Normal


2012


2011


Normal*


Prior Year


Normal

SOUTH

























Heating

-


-


-


N/A



N/A



986


1,131


1,112


(12.8)

%


(11.3)

%


Cooling

2,313


2,312


2,209


-

%


4.7

%


3,771


3,329


3,390


13.3

%


11.2

%


























NORTH

























Heating

1


3


69


(66.7)

%


(98.6)

%


2,677


3,201


3,012


(16.4)

%


(11.1)

%


Cooling

1,020


848


699


20.3

%


45.9

%


1,255


960


878


30.7

%


42.9

%


























*

Normal = 20-year average






















 


NEVADA POWER COMPANY



CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME



(Dollars in Thousands)



(Unaudited)



































Three Months Ended


Nine Months Ended





September 30,


September 30,





2012


2011


2012


2011


















OPERATING REVENUES

$

802,334


$

798,914


$

1,751,165


$

1,662,880


















OPERATING EXPENSES:















Fuel for power generation


123,992



162,976



285,799



378,790




Purchased power


171,687



181,733



388,494



399,707




Deferred energy


(22,685)



(10,354)



(15,461)



(1,274)




Energy efficiency program costs


28,492



20,451



65,466



20,451




Other operating expenses


65,372



68,004



200,484



195,040




Maintenance


12,533



3,460



52,594



45,122




Depreciation and amortization


66,975



67,212



201,096



186,798




Taxes other than income


9,743



9,105



26,793



28,209



Total Operating Expenses


456,109



502,587



1,205,265



1,252,843



OPERATING INCOME


346,225



296,327



545,900



410,037


















OTHER INCOME (EXPENSE):















Interest expense















(net of AFUDC-debt: $1,528, $842, $4,021 and $8,962)


(51,784)



(55,267)



(158,791)



(163,036)




Interest income (expense) on regulatory items


(1,623)



(82)



(5,488)



679




AFUDC-equity


1,833



1,026



4,823



10,979




Other income


7,096



594



14,197



2,708




Other expense


(2,823)



(7,324)



(7,162)



(15,235)



Total Other Expense


(47,301)



(61,053)



(152,421)



(163,905)



Income Before Income Tax Expense


298,924



235,274



393,479



246,132


















Income tax expense


103,754



80,666



137,328



84,481


















NET INCOME


195,170



154,608



256,151



161,651


















Other comprehensive income:














Change in compensation retirement benefits liability and amortization














(Net of taxes $(33), $(41), $(103) and $(554))


65



75



192



1,028

















COMPREHENSIVE INCOME

$

195,235


$

154,683


$

256,343


$

162,679

















 

NEVADA POWER COMPANY


 CONSOLIDATED OPERATING STATISTICS


(Unaudited)

























ELECTRIC SALES - MWh's

















(in thousands)






















Three Months Ended September 30,


Nine Months Ended September 30,











































2012


2011


Change from

Prior Year


Change in

Average

Customers


2012


2011


Change from

Prior Year


Change in

Average

Customers

























Residential

3,752


3,711


1.1

%


1.2

%


7,619


7,021


8.5

%


1.4

%


Commercial

1,374


1,319


4.2

%


0.9

%


3,480


3,307


5.2

%


0.5

%


Industrial

2,145


2,070


3.6

%


(0.7)

%


5,836


5,793


0.7

%


(2.0)

%



TOTAL RETAIL

7,271


7,100


2.4

%


1.2

%


16,935


16,121


5.0

%


1.3

%


 

ELECTRIC SOURCES - MWh's












(in thousands)
















Three Months Ended September 30,


Nine Months Ended September 30,


















2012


2011


Change from

Prior Year


2012


2011


Change from

Prior Year


Generated


5,105


4,879


4.6

%


12,264


11,138


10.1

%


Purchased


2,392


2,520


(5.1)

%


5,415


5,821


(7.0)

%


TOTAL


7,497


7,399


1.3

%


17,679


16,959


4.2

%



 

SIERRA PACIFIC POWER COMPANY

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Dollars in Thousands)

(Unaudited)





























Three Months Ended


Nine Months Ended



September 30,


September 30,



2012


2011


2012


2011

OPERATING REVENUES:













Electric

$

212,073


$

202,263


$

549,886


$

545,462


Gas


12,077



16,615



77,543



125,357

Total Operating Revenues


224,150



218,878



627,429



670,819














OPERATING EXPENSES:













Fuel for power generation


47,324



53,803



115,137



141,130


Purchased power


33,999



41,615



98,400



118,965


Gas purchased for resale


5,382



10,137



46,491



87,753


Deferral of energy - electric - net


(5,498)



(22,095)



(13,854)



(45,924)


Deferral of energy - gas - net


(853)



(1,171)



(970)



3,520


Energy efficiency program costs


4,092



2,596



11,143



2,596


Other operating expenses


34,128



35,933



104,214



110,836


Maintenance


6,481



7,909



23,596



28,195


Depreciation and amortization


27,537



26,525



80,594



79,647


Taxes other than income


5,894



6,052



17,382



17,675

Total Operating Expenses


158,486



161,304



482,133



544,393

OPERATING INCOME


65,664



57,574



145,296



126,426














OTHER INCOME (EXPENSE):













Interest expense













(net of AFUDC-debt: $448, $484, $1,458 and $1,409)


(15,298)



(16,861)



(47,650)



(50,581)


Interest expense on regulatory items


(401)



(1,200)



(715)



(4,228)


AFUDC-equity


582



664



1,843



1,875


Other income


1,399



810



4,181



2,676


Other expense


(998)



(2,255)



(3,609)



(7,403)

Total Other Income (Expense)


(14,716)



(18,842)



(45,950)



(57,661)

Income Before Income Tax Expense


50,948



38,732



99,346



68,765














Income tax expense


16,521



13,396



33,596



23,341














NET INCOME


34,427



25,336



65,750



45,424














Other comprehensive income:












Change in compensation retirement benefits liability and amortization












(Net of taxes $(22), $(150), $(68) and $(1,201))


42



279



127



2,230














COMPREHENSIVE INCOME

$

34,469


$

25,615


$

65,877


$

47,654















 

SIERRA PACIFIC POWER COMPANY


 CONSOLIDATED OPERATING STATISTICS


(Unaudited)

























ELECTRIC SALES - MWh's


















(in thousands)






















Three Months Ended September 30,


Nine Months Ended September 30,













































2012


2011


Change from

Prior Year


Change in

Average

Customers


2012


2011


Change from

Prior Year


Change in

Average

Customers

























Residential

667


612


9.0

%


1.0

%


1,737


1,673


3.8

%


0.7

%


Commercial

849


822


3.3

%


0.7

%


2,233


2,165


3.1

%


(0.2)

%


Industrial

686


642


6.9

%


4.4

%


2,005


1,887


6.3

%


2.8

%



TOTAL RETAIL

2,202


2,076


6.1

%


0.9

%


5,975


5,725


4.4

%


0.6

%


 

GAS SALES - Dth













(in thousands)
















Three Months Ended September 30,


Nine Months Ended September 30,




















2012


2011


Change from

Prior Year


2012


2011


Change from

Prior Year



















Residential

642


638


0.6

%


5,613


6,318


(11.2)

%


Commercial

374


389


(3.9)

%


2,939


3,228


(9.0)

%


Industrial

153


160


(4.4)

%


876


1,047


(16.3)

%



TOTAL RETAIL

1,169


1,187


(1.5)

%


9,428


10,593


(11.0)

%


 

ELECTRIC SOURCES - MWh's












(in thousands)














Three Months Ended September 30,


Nine Months Ended September 30,
















2012


2011


Change from

Prior Year


2012


2011


Change from

Prior Year


Generated

1,512


1,301


16.2

%


3,829


3,339


14.7

%


Purchased

971


1,057


(8.1)

%


3,031


3,260


(7.0)

%


TOTAL

2,483


2,358


5.3

%


6,860


6,599


4.0

%



 

Non-GAAP Financial Measures

Free Cash Flow

"Free cash flow" meets the definition of a non-GAAP financial measure.  NV Energy, Inc. defines free cash flow as net cash from operating activities less additions to utility plant (excluding AFUDC-equity).  Since free cash flow is not a measure of liquidity calculated in accordance with GAAP, it should be considered in addition to, but not as a substitute for, the GAAP measure net cash from operating activities.

NV Energy, Inc. considers free cash flow to be a liquidity measure that provides useful information to management and investors about the amount of cash generated from operations after capital expenditures that may be available for increasing its common stock dividend payout ratio, strengthening its capital structure, and considering new investment opportunities.

NV Energy, Inc.'s definition of free cash flow is limited, in that it does not represent residual cash flows available for discretionary expenditures due to the fact that the measure does not deduct the payments required for debt service and other contractual obligations.  The table below provides a reconciliation between GAAP net cash from operating activities and non-GAAP free cash flow (dollars in thousands).    




Nine Months Ended September 30,
















2012


2011


Change from

Prior Year














Net Cash from Operating Activities

$

644,194


$

467,034


37.9

%














Less Additions to Utility Plant (Excluding AFUDC-Equity)


(387,790)



(469,870)


(17.5)

%














Free Cash Flow

$

256,404


$