NV Energy, Inc. Reports Third Quarter Earnings

Oct 25, 2010, 08:00 ET from NV Energy, Inc.

LAS VEGAS, Oct. 25 /PRNewswire-FirstCall/ -- NV Energy, Inc. (NYSE: NVE) today announced consolidated net income of $182.7 million, or 78 cents per share, for the quarter ended September 30, 2010, compared with consolidated net income of $182.6 million, or 78 cents per share, for the same period in 2009.

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During the first nine months of 2010, the company earned $218 million, or 93 cents per share, compared with $178.8 million, or 76 cents per share, for the same period in 2009.  

"We are pleased with our third-quarter earnings especially in light of the slower growth in Nevada," said Michael Yackira, President and Chief Executive Officer of NV Energy, Inc. "We continue to focus on controllable costs and operational efficiencies in the implementation of our three-part energy strategy."

Webcast Scheduled for 7 a.m. PDT today, Monday, October 25, 2010

Senior management of NV Energy will review the company's 2010 third quarter financial results and other matters during a conference call and live webcast today, Monday, October  25, 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An archived version of the webcast will remain on the NV Energy website for approximately one month following the live webcast.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, 174045, 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, 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. 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 quarters ended March 31, 2010 and June 30, 2010, and their Annual Reports on Form 10-K and 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 INCOME STATEMENTS

(Dollars in Thousands, Except Per Share Amounts)

(unaudited)

Three Months Ended

Nine Months Ended

September 30,

September 30,

2010

2009

2010

2009

OPERATING REVENUES

$   1,131,561

$   1,219,007

$   2,633,891

$   2,812,915

OPERATING EXPENSES:

Fuel for power generation

247,233

250,085

650,514

684,474

Purchased power

249,854

313,828

522,538

634,185

Gas purchased for resale

10,823

11,269

101,536

101,457

Deferred energy

34,055

75,843

106,554

215,055

Other operating expenses

116,263

107,992

329,435

332,555

Maintenance

23,126

20,187

77,715

82,219

Depreciation and amortization

83,423

82,541

249,067

240,912

Taxes other than income

15,420

15,177

47,532

43,577

Total Operating Expenses

780,197

876,922

2,084,891

2,334,434

OPERATING INCOME

351,364

342,085

549,000

478,481

OTHER INCOME (EXPENSE):

Interest expense (net of AFUDC-debt: $6,485, $3,679, $17,349 and $15,847)

(80,789)

(84,804)

(241,625)

(250,996)

Interest income (expense) on regulatory items

(3,685)

(1,799)

(8,753)

(873)

AFUDC-equity

7,824

4,327

20,915

19,093

Other income

9,246

7,749

30,524

31,209

Other expense

(4,313)

(2,387)

(17,038)

(17,425)

Total Other Income (Expense)

(71,717)

(76,914)

(215,977)

(218,992)

Income Before Income Tax Expense

279,647

265,171

333,023

259,489

Income tax expense

96,901

82,525

115,052

80,704

NET INCOME

$      182,746

$      182,646

$      217,971

$      178,785

Amount per share basic and diluted - (Note 9)

Net income per share - basic

$            0.78

$            0.78

$            0.93

$            0.76

Net income per share - diluted

$            0.77

$            0.78

$            0.92

$            0.76

Weighted Average Shares of Common Stock Outstanding - basic

235,117,058

234,629,761

234,991,208

234,479,605

Weighted Average Shares of Common Stock Outstanding - diluted

236,477,187

235,368,919

236,136,725

235,025,554

Dividends Declared Per Share of Common Stock

$            0.11

$            0.10

$            0.33

$            0.30

NEVADA POWER COMPANY

CONSOLIDATED INCOME STATEMENTS

(Dollars in Thousands)

(unaudited)

Three Months Ended

Nine Months Ended

September 30,

September 30,

2010

2009

2010

2009

OPERATING REVENUES

$ 872,986

$ 933,520

$ 1,840,745

$ 1,945,818

OPERATING EXPENSES:

Fuel for power generation

181,100

160,960

469,282

455,355

Purchased power

216,309

288,248

412,276

541,746

Deferred energy

22,296

46,911

81,719

144,910

Other operating expenses

75,798

68,521

208,374

206,771

Maintenance

15,707

12,014

50,945

58,280

Depreciation and amortization

56,575

54,996

169,330

160,869

Taxes other than income

9,038

8,970

28,857

26,394

Total Operating Expenses

576,823

640,620

1,420,783

1,594,325

OPERATING INCOME

296,163

292,900

419,962

351,493

OTHER INCOME (EXPENSE):

Interest expense (net of AFUDC-debt: $5,787, $2,815, $15,763 and $13,483)

(54,144)

(58,355)

(161,496)

(170,535)

Interest income (expense) on regulatory items

(1,157)

248

(1,965)

2,891

AFUDC-equity

6,795

3,385

18,555

16,558

Other income

3,842

3,776

9,084

18,726

Other expense

(3,034)

(1,537)

(9,338)

(12,335)

Total Other Income (Expense)

(47,698)

(52,483)

(145,160)

(144,695)

Income Before Income Tax Expense

248,465

240,417

274,802

206,798

Income tax expense

84,337

76,826

93,216

65,857

NET INCOME

$ 164,128

$ 163,591

$    181,586

$    140,941

SIERRA PACIFIC POWER COMPANY

CONSOLIDATED INCOME STATEMENTS

(Dollars in Thousands)

(unaudited)

Three Months Ended

Nine Months Ended

September 30,

September 30,

2010

2009

2010

2009

OPERATING REVENUES:

Electric

$ 239,284

$ 265,734

$ 653,416

$ 734,386

Gas

19,286

19,745

139,711

132,686

Total Operating Revenues

258,570

285,479

793,127

867,072

OPERATING EXPENSES:

Fuel for power generation

66,133

89,125

181,232

229,119

Purchased power

33,545

25,580

110,262

92,439

Gas purchased for resale

10,823

11,269

101,536

101,457

Deferral of energy - electric - net

9,964

26,646

17,189

68,222

Deferral of energy - gas - net

1,795

2,286

7,646

1,923

Other operating expenses

39,490

38,843

118,450

123,748

Maintenance

7,419

8,173

26,770

23,939

Depreciation and amortization

26,848

27,545

79,737

80,043

Taxes other than income

6,330

6,162

18,494

17,046

Total Operating Expenses

202,347

235,629

661,316

737,936

OPERATING INCOME

56,223

49,850

131,811

129,136

OTHER INCOME (EXPENSE):

Interest expense (net of AFUDC-debt: $698, $864, $1,586 and $2,364)

(16,983)

(16,787)

(51,141)

(51,473)

Interest income (expense) on regulatory items

(2,528)

(2,047)

(6,788)

(3,764)

AFUDC-equity

1,029

942

2,360

2,535

Other income

2,379

3,792

14,276

12,299

Other expense

(1,285)

(813)

(7,555)

(4,601)

Total Other Income (Expense)

(17,388)

(14,913)

(48,848)

(45,004)

Income Before Income Tax Expense

38,835

34,937

82,963

84,132

Income tax expense

14,373

10,671

30,066

25,926

NET INCOME

$ 24,462

$ 24,266

$ 52,897

$ 58,206

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

% Change

Nine Months Ended

% Change

September 30,

 from Prior

September 30,

from Prior

2010

2009

 Year

2010

2009

Year

Operating Revenues

$ 872,986

$ 933,520

-6.5%

$ 1,840,745

$ 1,945,818

-5.4%

Energy Costs:

    Fuel for power generation

181,100

160,960

469,282

455,355

    Purchased Power

216,309

288,248

412,276

541,746

    Deferred energy - net

22,296

46,911

81,719

144,910

$ 419,705

$ 496,119

-15.4%

$ 963,277

$ 1,142,011

-15.7%

Gross Margin

$ 453,281

$437,401

3.6%

$    877,468

$803,807

9.2%

Other operating expenses

75,798

68,521

208,374

206,771

Maintenance

15,707

12,014

50,945

58,280

Depreciation and amortization

56,575

54,996

169,330

160,869

Taxes other than income

9,038

8,970

28,857

26,394

Operating Income

$ 296,163

$292,900

1.1%

$    419,962

$351,493

19.5%

Sierra Pacific Power Company

Three Months Ended

% Change

Nine Months Ended

% Change

September 30,

from Prior

September 30,

from Prior

2010

2009

 Year

2010

2009

Year

Operating Revenues:

    Electric

$239,284

$265,734

$653,416

$734,386

    Gas

19,286

19,745

139,711

132,686

$258,570

$ 285,479

-9.4%

$793,127

$    867,072

-8.5%

Energy Costs:

    Fuel for power generation

66,133

89,125

181,232

229,119

    Purchased power

33,545

25,580

110,262

92,439

    Gas purchased for resale

10,823

11,269

101,536

101,457

    Deferred energy - electric

9,964

26,646

17,189

68,222

    Deferred energy - gas

1,795

2,286

7,646

1,923

$122,260

$154,906

-21.1%

$417,865

$493,160

-15.3%

Energy Costs by Segment:

    Electric

$109,642

$141,351

$308,683

$389,780

    Gas

12,618

13,555

109,182

103,380

$122,260

$154,906

-21.1%

$417,865

$493,160

-15.3%

Gross Margin by Segment:

    Electric

$129,642

$124,383

$344,733

$344,606

    Gas

6,668

6,190

30,529

29,306

$136,310

$130,573

4.4%

$375,262

$373,912

0.4%

Other operating expenses

39,490

38,843

118,450

123,748

Maintenance

7,419

8,173

26,770

23,939

Depreciation and amortization

26,848

27,545

79,737

80,043

Taxes other than income

6,330

6,162

18,494

17,046

Operating Income

$56,223

$49,850

12.8%

$131,811

$129,136

2.1%

Summary of Selected Operating Statistics

Nevada Power Company

Operating Revenues

(dollars in thousands)

Three Months Ended

% Change

Nine Months Ended

% Change

Avg.

September 30,

from Prior

September 30,

 from Prior

 Change in

2010

2009

Year 

2010

2009

Year

customers

Operating Revenues:

Residential

$460,535

$484,561

-5.0%

$899,423

$939,488

-4.3%

0.2%

Commercial

132,176

148,504

-11.0%

340,258

365,595

-6.9%

0.8%

Industrial

262,129

278,728

-6.0%

550,518

578,661

-4.9%

0.4%

   Retail  revenues

854,840

911,793

-6.2%

1,790,199

1,883,744

-5.0%

Other

18,146

21,727

-16.5%

50,546

62,074

-18.6%

Total Operating Revenues

$872,986

$933,520

-6.5%

$1,840,745

$1,945,818

-5.4%

Retail sales in thousands of MWhs

7,208

7,197

0.2%

16,255

16,626

-2.2%

Sierra Pacific Power Company

Operating Revenues

(dollars in thousands)

Three Months Ended

% Change

Nine Months Ended

% Change

Avg.

September 30,

from Prior

September 30,

 from Prior

Change in

2010

2009

Year 

2010

2009

Year

customers

Electric Operating Revenues:

Residential

$82,146

$93,594

-12.2%

$235,668

$263,287

-10.5%

0.1%

Commercial

93,785

108,167

-13.3%

252,402

296,671

-14.9%

0.2%

Industrial

51,738

56,328

-8.1%

139,200

151,671

-8.2%

-1.2%

Retail  revenues

227,669

258,089

-11.8%

627,270

711,629

-11.9%

Other

11,615

7,645

51.9%

26,146

22,757

14.9%

 Total Revenues

$239,284

$265,734

-10.0%

$653,416

$734,386

-11.0%

Retail sales in thousands of MWhs

2,192

2,206

-0.6%

6,075

6,128

-0.9%

Three Months Ended

% Change

Nine Months Ended

% Change

Avg.

September 30,

from Prior 

September 30,

from Prior 

Change in

2010

2009

Year

2010

2009

Year

customers

Gas Operating Revenues:

Residential

$9,953

$10,740

-7.3%

$72,699

$74,410

-2.3%

Commercial

4,617

4,913

-6.0%

34,014

35,191

-3.3%

Industrial

1,784

2,155

-17.2%

11,228

11,779

-4.7%

Retail  revenues

16,354

17,808

-8.2%

117,941

121,380

-2.8%

0.8%

Wholesale revenue

2,408

1,406

71.3%

19,976

9,567

108.8%

Miscellaneous

524

531

-1.3%

1,794

1,739

3.2%

 Total Revenues

$19,286

$19,745

-2.3%

$139,711

$132,686

5.3%

Retail sales in thousands of decatherms

1,272

1,183

7.5%

10,108

9,549

5.9%

Financial Highlights

(Dollars in Thousands)

(Unaudited)

NV Energy, Inc

Capital Structure

September 30, 2010

September 30, 2009

Current maturities of long-term debt

$         356,538

3.9%

$        9,286

0.1%

Long-term debt

5,313,407

58.8%

5,549,052

63.0%

Total Debt

$      5,669,945

62.7%

$ 5,558,338

63.1%

Total shareholders' equity

3,368,514

37.3%

3,243,820

36.9%

Total Capitalization (including current maturities of long-term debt)

$      9,038,459

100.0%

$ 8,802,158

100.0%

Nevada Power Company

Capital Structure

September 30, 2010

September 30, 2009

Current maturities of long-term debt

$         356,538

5.3%

$        9,286

0.2%

Long-term debt

3,546,724

53.2%

3,701,308

57.8%

Total Debt

$      3,903,262

58.5%

$ 3,710,594

58.0%

Total shareholder's equity

2,769,675

41.5%

2,691,551

42.0%

Total Capitalization (including current maturities of long-term debt)

$      6,672,937

100.0%

$ 6,402,145

100.0%

Sierra Pacific Power Company

Capital Structure

September 30, 2010

September 30, 2009

Current maturities of long-term debt

$                     -

0.0%

$              -

0.0%

Long-term debt

1,281,138

55.8%

1,362,002

57.8%

Total Debt

$      1,281,138

55.8%

$ 1,362,002

57.8%

Common shareholder's equity

1,014,181

44.2%

994,495

42.2%

Total Capitalization (including current maturities of long-term debt)

$      2,295,319

100.0%

$ 2,356,497

100.0%

NVE Available Liquidity as of September 30, 2010 (dollars in millions)

NVE

NPC

SPPC

Cash and Cash Equivalents

$19.6

$265.7

$93.0

Balance available on Revolving  Credit Facilities

N/A

485.3

234.1

- Less reduction for hedging obligations

N/A

(51.8)

(22.5)

$19.6

$699.2

$304.6

SOURCE NV Energy, Inc.



RELATED LINKS

http://www.nvenergy.com