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

Nov 02, 2012, 07:00 ET from NV Energy, Inc.

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.

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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