Oct 22 - Business Wire
Pinnacle West Capital Corp. (NYSE: PNW) today reported consolidated net income for the quarter ended September 30, 2004, of $105.4 million, or $1.15 per diluted share of common stock. This result compares with consolidated net income of $110.0 million, or $1.20 per diluted share, for the same period in 2003.
The decrease in quarter-to-quarter earnings was primarily the result of
hotter-than-normal weather in the 2003 summer period; a net increase in costs
related to new electricity generating units placed into service in mid-2003 and
mid-2004; an increase in customer service and other operating costs; and higher
fuel and purchased power prices.
These factors were partially offset by lower replacement power costs due to
fewer unplanned power plant outages; improved wholesale power marketing results;
the absence of regulatory asset amortization; and higher retail sales volumes
due to customer growth of 3.9 percent during the 2004 third quarter.
For the nine-month period ended September 30, 2004, Pinnacle West's
consolidated net income was $209.5 million, or $2.29 per diluted share of common
stock. This result compares with consolidated net income of $191.5 million, or
$2.09 per diluted share, in last year's corresponding period.
For more information on Pinnacle West's operating statistics and earnings,
please visit http://www.pinnaclewest.com/main/pnw/investors/default.html
.
Pinnacle West is a Phoenix-based company with consolidated assets of
approximately $9.9 billion. Through its subsidiaries, the Company generates,
sells and delivers electricity and sells energy-related products and services to
retail and wholesale customers in the western United States. It also develops
residential, commercial, and industrial real estate projects.
Webcast and Conference Call
The Company will hold a conference call and live webcast at 12 noon (ET)
today, Friday, October 22 to discuss its earnings. The webcast can be accessed
at www.pinnaclewest.com/main/pnw/investors/presentations/default.html
and will be available for replay on the web site for 30 days. To access the live
conference call by telephone, dial (877) 356-3961 and enter reservation number
9289484. A replay of the call also will be available until 11:55 p.m. (ET),
Friday, October 29, 2004, by calling (800) 642-1687 in the U.S. and Canada or
(706) 645-9291 internationally and entering the same reservation number.
This press release may contain forward-looking statements within the meaning
of the safe harbor of the Private Securities Litigation Reform Act of 1995.
These statements are subject to risks and uncertainties and are based on the
beliefs and assumptions of our management, based on information currently
available to our management. When we use words such as "believes,"
"expects," "anticipates," "intends,"
"plans," "estimates," "predicts,"
"should," or similar expressions, we are making forward-looking
statements. Forward-looking statements are not guarantees of performance. They
involve risks, (including those described in the "Risk Factors" in
Exhibit 99.1 to our most recent Report on Form 10-Q filed with the SEC),
uncertainties, and assumptions. Our future results may differ materially from
those expressed in these forward-looking statements. Many of the factors that
will determine these results are beyond our ability to control or predict.
Except to the extent required by applicable laws, we undertake no obligation to
publicly update any forwarding-looking statement, whether as a result of new
information, future events or otherwise. These factors include, but are not
limited to: state and federal regulatory and legislative decisions and actions,
including the outcome of the rate case APS filed with the ACC on June 27, 2003
and the wholesale electric price mitigation plan adopted by the FERC; the
ongoing restructuring of the electric industry, including the introduction of
retail electric competition in Arizona and decisions impacting wholesale
competition; the outcome of regulatory, legislative and judicial proceedings
relating to the restructuring; market prices for electricity and natural gas;
power plant performance and outages, including transmission outages and
constraints; weather variations affecting local and regional customer energy
usage; customer growth and energy usage; regional economic and market
conditions, including the results of litigation and other proceedings resulting
from the California energy situation, volatile purchased power and fuel costs
and the completion of generation and transmission construction in the region,
which could affect customer growth and the cost of power supplies; the cost of
debt and equity capital and access to capital markets; the uncertainty that
current credit ratings will remain in effect for any given period of time; our
ability to compete successfully outside traditional regulated markets (including
the wholesale market); the performance of our marketing and trading activities
due to volatile market liquidity and any deteriorating counterparty credit and
the use of derivative contracts in our business (including the interpretation of
the subjective and complex accounting rules related to these contracts); changes
in accounting principles generally accepted in the United States of America and
the interpretation of those principles; the performance of the stock market and
the changing interest rate environment, which affect the amount of our required
contributions to our pension plan and nuclear decommissioning trust funds, as
well as our reported costs of providing pension and other postretirement
benefits; technological developments in the electric industry; strength of the
real estate market in SunCor's market areas, which include Arizona, Idaho, New
Mexico and Utah; conservation programs; and other uncertainties, all of which
are difficult to predict and many of which are beyond our control. -0- *T
PINNACLE WEST CAPITAL CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF INCOME (unaudited)
(in thousands, except per share amounts) THREE MONTHS ENDED NINE MONTHS ENDED
September 30, September 30, 2004 2003 2004 2003 -------------------
----------------------- Operating Revenues Regulated electricity segment
$670,559 $667,400 $1,605,952 $1,545,829 Marketing and trading segment 128,563
82,558 332,186 300,439 Real estate segment 75,072 75,009 193,965 172,886 Other
revenues 12,585 6,035 32,904 16,774 --------- --------- ----------- -----------
Total 886,779 831,002 2,165,007 2,035,928 --------- --------- -----------
----------- Operating Expenses Regulated electricity segment purchased power and
fuel 202,156 208,757 442,409 394,373 Marketing and trading segment purchased
power and fuel 107,377 84,195 269,261 263,201 Operations and maintenance 160,765
133,852 437,126 408,488 Real estate segment operations 67,079 63,196 177,374
157,297 Depreciation and amortization 97,349 110,242 302,919 321,197 Taxes other
than income taxes 31,649 28,206 94,511 84,851 Other expenses 9,568 5,193 25,893
12,445 --------- --------- ----------- ----------- 675,943 633,641 1,749,493
1,641,852 --------- --------- ----------- ----------- Operating Income 210,836
197,361 415,514 394,076 --------- --------- ----------- ----------- Other
Allowance for equity funds used during construction (1,327) 11,194 2,859 11,194
Other income 2,836 5,533 50,653 13,886 Other expense (4,568) (5,791) (14,444)
(15,079) --------- --------- ----------- ----------- Total (3,059) 10,936 39,068
10,001 --------- --------- ----------- ----------- Interest Expense Interest
charges 49,497 52,527 144,645 151,332 Capitalized interest (4,506) (2,851)
(13,537) (24,061) --------- --------- ----------- ----------- Total 44,991
49,676 131,108 127,271 --------- --------- ----------- ----------- Income From
Continuing Operations Before Income Taxes 162,786 158,621 323,474 276,806 Income
Taxes 58,900 49,961 117,574 96,054 --------- --------- ----------- -----------
Income From Continuing Operations 103,886 108,660 205,900 180,752 Income From
Discontinued Operations - Net of Income Tax Expense 1,514 1,388 3,566 10,736
--------- --------- ----------- ----------- Net Income $105,400 $110,048
$209,466 $191,488 ========= ========= =========== =========== Weighted-Average
Common Shares Outstanding - Basic 91,357 91,271 91,322 91,262 Weighted-Average
Common Shares Outstanding - Diluted 91,491 91,467 91,430 91,432 Earnings Per
Weighted- Average Common Share Outstanding Income From Continuing Operations -
Basic $1.14 $1.19 $2.25 $1.98 Net Income - Basic $1.15 $1.21 $2.29 $2.10 Income
From Continuing Operations - Diluted $1.14 $1.19 $2.25 $1.98 Net Income -
Diluted $1.15 $1.20 $2.29 $2.09 Certain prior year amounts have been restated to
conform to the 2004 presentation. *T