NV Energy, Inc., Reports First Quarter Results
LAS VEGAS, April 26 /PRNewswire-FirstCall/ -- NV Energy, Inc. (NYSE: NVE) today announced a consolidated net loss of $1.7 million, or 1 cent per share, for the quarter ended March 31, 2010, compared with a consolidated net loss of $22.2 million, or 9 cents per share, for the quarter ended March 31, 2009.
The improvement in the first quarter 2010 versus the first quarter 2009 was due to an increase in rates as a result of the southern Nevada utility's general rate case, effective on July 1, 2009.
NV Energy's two utilities contributed gross margin of $304.9 million in the first quarter 2010, $21 million higher than the first quarter 2009.
"Much of the first quarter-to-quarter improvement is attributable to our investments in new generating facilities in southern Nevada that are now included in rates," said Michael Yackira, president and chief executive officer of NV Energy.
Webcast Scheduled for 7 a.m. PDT today, Monday, April 26
Senior management of NV Energy will review the company's 2010 first quarter financial results and other matters during a conference call and live webcast today, Monday, April 26, 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An archived version of the webcast will remain on the NV Energy website for approximately one month following the live webcast.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, 153625, 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 d/b/a NV Energy and Sierra Pacific Power Company 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 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 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 Annual Reports on 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 |
||||
March 31, |
||||
2010 |
2009 |
|||
OPERATING REVENUES |
$ 716,969 |
$ 755,267 |
||
OPERATING EXPENSES: |
||||
Fuel for power generation |
221,619 |
230,104 |
||
Purchased power |
107,363 |
125,387 |
||
Gas purchased for resale |
65,559 |
70,272 |
||
Deferred energy |
17,566 |
45,635 |
||
Other operating expenses |
109,106 |
114,677 |
||
Maintenance |
25,729 |
34,400 |
||
Depreciation and amortization |
80,948 |
78,048 |
||
Taxes other than income |
16,173 |
14,647 |
||
Total Operating Expenses |
644,063 |
713,170 |
||
OPERATING INCOME |
72,906 |
42,097 |
||
OTHER INCOME (EXPENSE): |
||||
Interest expense (net of AFUDC-debt: 2010-$4,939, 2009-$5,146) |
(80,064) |
(82,633) |
||
Interest income (expense) on regulatory items |
(2,071) |
1,180 |
||
AFUDC-equity |
5,953 |
6,218 |
||
Other income |
5,877 |
5,058 |
||
Other expense |
(3,066) |
(5,578) |
||
Total Other Income (Expense) |
(73,371) |
(75,755) |
||
Loss Before Income Tax Expense |
(465) |
(33,658) |
||
Income tax expense (benefit) |
1,256 |
(11,414) |
||
NET LOSS |
$ (1,721) |
$ (22,244) |
||
Amount per share basic and diluted |
||||
Net loss per share basic and diluted |
$ (0.01) |
$ (0.09) |
||
Weighted Average Shares of Common Stock Outstanding - basic and diluted |
234,858,642 |
234,331,044 |
||
Dividends Declared Per Share of Common Stock |
$ 0.11 |
$ 0.10 |
||
NEVADA POWER COMPANY |
||||
CONSOLIDATED STATEMENTS OF OPERATIONS |
||||
(Dollars in Thousands) |
||||
(unaudited) |
||||
Three Months Ended |
||||
March 31, |
||||
2010 |
2009 |
|||
OPERATING REVENUES |
$ 426,960 |
$ 436,529 |
||
OPERATING EXPENSES: |
||||
Fuel for power generation |
156,115 |
154,062 |
||
Purchased power |
71,227 |
88,206 |
||
Deferred energy |
19,463 |
38,190 |
||
Other operating expenses |
67,880 |
70,193 |
||
Maintenance |
17,019 |
27,534 |
||
Depreciation and amortization |
55,101 |
52,363 |
||
Taxes other than income |
10,026 |
9,063 |
||
Total Operating Expenses |
396,831 |
439,611 |
||
OPERATING INCOME (LOSS) |
30,129 |
(3,082) |
||
OTHER INCOME (EXPENSE): |
||||
Interest expense (net of AFUDC-debt: 2010-$4,532, 2009-$4,562) |
(53,356) |
(55,043) |
||
Interest income (expense) on regulatory items |
(31) |
1,853 |
||
AFUDC-equity |
5,362 |
5,621 |
||
Other income |
2,583 |
2,342 |
||
Other expense |
(1,132) |
(3,207) |
||
Total Other Income (Expense) |
(46,574) |
(48,434) |
||
Loss Before Income Tax Expense |
(16,445) |
(51,516) |
||
Income tax (benefit) |
(4,119) |
(16,365) |
||
NET LOSS |
$ (12,326) |
$ (35,151) |
||
SIERRA PACIFIC POWER COMPANY |
||||
CONSOLIDATED INCOME STATEMENTS |
||||
(Dollars in Thousands) |
||||
(unaudited) |
||||
Three Months Ended |
||||
March 31, |
||||
2010 |
2009 |
|||
OPERATING REVENUES: |
||||
Electric |
$ 209,981 |
$ 237,738 |
||
Gas |
80,020 |
80,993 |
||
Total Operating Revenues |
290,001 |
318,731 |
||
OPERATING EXPENSES: |
||||
Fuel for power generation |
65,504 |
76,042 |
||
Purchased power |
36,136 |
37,181 |
||
Gas purchased for resale |
65,559 |
70,272 |
||
Deferred energy - electric - net |
(1,500) |
11,796 |
||
Deferred energy - gas - net |
(397) |
(4,351) |
||
Other operating expenses |
40,672 |
44,015 |
||
Maintenance |
8,710 |
6,866 |
||
Depreciation and amortization |
25,847 |
25,685 |
||
Taxes other than income |
6,066 |
5,524 |
||
Total Operating Expenses |
246,597 |
273,030 |
||
OPERATING INCOME |
43,404 |
45,701 |
||
OTHER INCOME (EXPENSE): |
||||
Interest expense (net of AFUDC-debt: 2010-$407, 2009-$584) |
(17,045) |
(17,927) |
||
Interest income (expense) on regulatory items |
(2,040) |
(673) |
||
AFUDC-equity |
591 |
597 |
||
Loss Before Income Tax Expense |
1,755 |
2,715 |
||
Other expense |
(1,869) |
(1,991) |
||
Income tax expense (benefit) |
(18,608) |
(17,279) |
||
Income Before Income Tax Expense |
24,796 |
28,422 |
||
Income tax expense |
7,676 |
9,286 |
||
NET INCOME |
$ 17,120 |
$ 19,136 |
||
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 income 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 |
% Change |
||||
March 31, |
from Prior |
|||||
2010 |
2009 |
Year |
||||
Operating Revenues |
$426,960 |
$436,529 |
-2.2% |
|||
Energy Costs: |
||||||
Fuel for power generation |
156,115 |
154,062 |
||||
Purchased Power |
71,227 |
88,206 |
||||
Deferred energy - net |
19,463 |
38,190 |
||||
$246,805 |
$280,458 |
-12.0% |
||||
Gross Margin |
$180,155 |
$156,071 |
15.4% |
|||
Other operating expenses |
67,880 |
70,193 |
||||
Maintenance |
17,019 |
27,534 |
||||
Depreciation and amortization |
55,101 |
52,363 |
||||
Taxes other than income |
10,026 |
9,063 |
||||
Operating Income (Loss) |
$ 30,129 |
($3,082) |
1077.6% |
|||
Three Months Ended |
% Change |
|||||
March 31, |
from Prior |
|||||
2010 |
2009 |
Year |
||||
Operating Revenues: |
||||||
Electric |
$209,981 |
$237,738 |
||||
Gas |
80,020 |
80,993 |
||||
$290,001 |
$318,731 |
-9.0% |
||||
Energy Costs: |
||||||
Fuel for power generation |
65,504 |
76,042 |
||||
Purchased Power |
36,136 |
37,181 |
||||
Gas purchased for resale |
65,559 |
70,272 |
||||
Deferred energy - electric - net |
(1,500) |
11,796 |
||||
Deferred energy - gas - net |
(397) |
(4,351) |
||||
$165,302 |
$190,940 |
-13.4% |
||||
Gross Margin |
$124,699 |
$127,791 |
-2.4% |
|||
Other operating expenses |
40,672 |
44,015 |
||||
Maintenance |
8,710 |
6,866 |
||||
Depreciation and amortization |
25,847 |
25,685 |
||||
Taxes other than income |
6,066 |
5,524 |
||||
Operating Income |
$ 43,404 |
$ 45,701 |
-5.0% |
|||
Energy Costs by Segment: |
||||||
Electric |
$100,140 |
$125,019 |
||||
Gas |
65,162 |
65,921 |
||||
$165,302 |
$190,940 |
-13.4% |
||||
Gross Margin by Segment: |
||||||
Electric |
$109,841 |
$112,719 |
||||
Gas |
14,858 |
15,072 |
||||
$124,699 |
$127,791 |
-2.4% |
||||
Summary of Selected Operating Statistics |
||||||||
Nevada Power Company |
||||||||
Operating Revenues |
||||||||
(dollars in thousands) |
||||||||
Three Months Ended |
% Change |
|||||||
March 31, |
from Prior |
Avg. Change |
||||||
2010 |
2009 |
Year |
in customers |
|||||
Operating Revenues: |
||||||||
Residential |
$196,593 |
$191,370 |
2.7% |
-0.4% |
||||
Commercial |
94,269 |
96,794 |
-2.6% |
1.6% |
||||
Industrial |
119,648 |
128,039 |
-6.6% |
0.1% |
||||
Retail revenues |
410,510 |
416,203 |
-1.4% |
|||||
Other |
16,450 |
20,326 |
-19.1% |
|||||
Total Operating Revenues |
$426,960 |
$436,529 |
-2.2% |
|||||
Retail sales in thousands of MWhs |
4,086 |
4,121 |
-0.8% |
|||||
Sierra Pacific Power Company |
||||||||
Operating Revenues |
||||||||
(dollars in thousands) |
||||||||
Three Months Ended |
% Change |
|||||||
March 31, |
from Prior |
Avg. Change |
||||||
2010 |
2009 |
Year |
in customers |
|||||
Electric Operating Revenues: |
||||||||
Residential |
$83,159 |
$93,785 |
-11.3% |
-0.2% |
||||
Commercial |
76,974 |
90,437 |
-14.9% |
0.1% |
||||
Industrial |
42,631 |
46,067 |
-7.5% |
-1.9% |
||||
Retail revenues |
202,764 |
230,289 |
-12.0% |
|||||
Other |
7,217 |
7,449 |
-3.1% |
|||||
Total Revenues |
$209,981 |
$237,738 |
-11.7% |
|||||
Retail sales in thousands of MWhs |
1,960 |
1,980 |
-1.0% |
|||||
Three Months Ended |
% Change |
|||||||
March 31, |
from Prior |
Avg. Change |
||||||
2010 |
2009 |
Year |
in customers |
|||||
Gas Operating Revenues: |
||||||||
Residential |
$42,363 |
$45,881 |
-7.7% |
|||||
Commercial |
20,482 |
21,840 |
-6.2% |
|||||
Industrial |
5,939 |
5,892 |
0.8% |
|||||
Retail revenues |
68,784 |
73,613 |
-6.6% |
0.6% |
||||
Wholesale revenue |
10,561 |
6,734 |
56.8% |
|||||
Miscellaneous |
675 |
646 |
4.5% |
|||||
Total Revenues |
$80,020 |
$80,993 |
-1.2% |
|||||
Retail sales in thousands of decatherms |
5,985 |
6,107 |
-2.0% |
|||||
Financial Highlights |
|||||||||
(Dollars in Thousands) |
|||||||||
(Unaudited) |
|||||||||
NV Energy, Inc |
|||||||||
Capital Structure |
March 31, 2010 |
March 31, 2009 |
|||||||
Current maturities of long-term debt(1) |
$ 237,785 |
2.7% |
$ 8,885 |
0.1% |
|||||
Long-term debt |
5,316,626 |
60.7% |
5,485,643 |
63.9% |
|||||
Total Debt |
$ 5,554,411 |
63.5% |
$ 5,494,528 |
64.0% |
|||||
Total shareholders' equity |
3,197,525 |
36.5% |
3,086,337 |
36.0% |
|||||
Total Capitalization (including current maturities of long-term debt) |
$ 8,751,936 |
100.0% |
$ 8,580,865 |
100.0% |
|||||
Nevada Power Company |
|||||||||
Capital Structure |
March 31, 2010 |
March 31, 2009 |
|||||||
Current maturities of long-term debt(1) |
$ 237,785 |
3.7% |
$ 8,885 |
0.1% |
|||||
Long-term debt |
3,549,120 |
55.5% |
3,596,840 |
58.2% |
|||||
Total Debt |
$ 3,786,905 |
59.2% |
$ 3,605,725 |
58.3% |
|||||
Total shareholder's equity |
2,610,729 |
40.8% |
2,570,426 |
41.7% |
|||||
Total Capitalization (including current maturities of long-term debt) |
$ 6,397,634 |
100.0% |
$ 6,176,151 |
100.0% |
|||||
Sierra Pacific Power Company |
|||||||||
Capital Structure |
March 31, 2010 |
March 31, 2009 |
|||||||
Current maturities of long-term debt |
$ - |
0.0% |
$ - |
0.0% |
|||||
Long-term debt |
1,281,863 |
55.8% |
1,402,964 |
59.0% |
|||||
Total Debt |
$ 1,281,863 |
55.8% |
$ 1,402,964 |
59.0% |
|||||
Total shareholder's equity |
1,013,388 |
44.2% |
975,406 |
41.0% |
|||||
Total Capitalization (including current maturities of long-term debt) |
$ 2,295,251 |
100.0% |
$ 2,378,370 |
100.0% |
|||||
(1) Includes amounts borrowed under NPC's revolving credit facility as of March 31, 2010 that is expected to be reclassified to long-term debt upon closing of its new revolving credit facility. |
|||||||||
NVE Available Liquidity as of March 31, 2010 (dollars in millions) |
|||||||
NVE |
NPC |
SPPC |
|||||
Cash and Cash Equivalents |
$10.6 |
$34.8 |
$28.5 |
||||
Balance available on Revolving Credit Facilities |
N/A |
344.3 |
317.9 |
||||
$10.6 |
$379.1 |
$346.4 |
|||||
SOURCE NV Energy, Inc.
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