Pinnacle West Capital Corporation (NYSE: PNW) today reported consolidated net income of $133.9 million, or $1.33 per diluted share of common stock, for the quarter ended June 30, 2008. These results compare with net income of $79.0 million, or $0.78 per diluted share, for the same period a year ago. The higher results were due in large part to $30 million of credits attributable to the resolution of tax issues applicable to prior years at the Company’s regulated utility and a $19 million gain from the sale of a large asset in its real estate business.
Pinnacle West Chairman Bill Post pointed out that Pinnacle West’s on-going earnings for the first six months of 2008 were the same as a year ago.
“Although earnings for the second quarter are up, after adjusting for the tax impacts, on-going earnings are flat for the year with inflation offsetting our efficiency savings and revenue growth,” said Post. “Year-to-date, on-going earnings at Arizona Public Service are essentially flat, increasing only $4 million compared to last year.”
SunCor Development Co., Pinnacle West’s real estate subsidiary, reported net income of $14.7 million for the second quarter of 2008, compared with $0.3 million in the 2007 second quarter. The increase was entirely related to the sale of a 12-story office building at SunCor’s Hayden Ferry Lakeside development in Tempe, Ariz.
For more information on Pinnacle West’s operating statistics and earnings, please visit www.pinnaclewest.com/financials.
Conference Call
Pinnacle West invites interested parties to listen to the live web cast of management’s conference call to discuss the Company’s 2008 second quarter earnings and recent developments at 1 p.m. (ET), today, Wednesday, July 30, 2008. The web cast can be accessed at www.pinnaclewest.com/presentations 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 Conference ID Number 52534276. A replay of the call also will be available until 11:55 p.m. (ET), Wednesday, August 6, 2008, by calling (800) 642-1687 in the U.S. and Canada or (706) 645-9291 internationally and entering the same ID number as above.
Pinnacle West is a Phoenix-based company with consolidated assets of about $11.5 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.
PINNACLE WEST CAPITAL CORPORATION | ||||||||||||||||
Three Months Ended | Three Months Ended June 30, 2007 | |||||||||||||||
$ in | Diluted EPS | $ in Millions | Diluted EPS | |||||||||||||
PINNACLE WEST CAPITAL CORPORATION | ||||||||||||||||
Net Income | $ | 133.9 | $ | 1.33 | $ | 79.0 | $ | 0.78 | ||||||||
Adjustments: | ||||||||||||||||
Income tax credits related to prior years | (30.0 | ) | (0.30 | ) | (1.8 | ) | (0.02 | ) | ||||||||
Regulatory disallowance | -- | -- | 8.0 | 0.08 | ||||||||||||
On-going Earnings | $ | 103.9 | $ | 1.03 | $ | 85.2 | $ | 0.84 | ||||||||
Six Months Ended | Six Months Ended June 30, 2007 | |||||||||||||||
$ in | Diluted EPS | $ in Millions | Diluted EPS | |||||||||||||
PINNACLE WEST CAPITAL CORPORATION | ||||||||||||||||
Net Income | $ | 129.4 | $ | 1.28 | $ | 95.5 | $ | 0.95 | ||||||||
Adjustments: | ||||||||||||||||
Income tax credits related to prior years | (30.0 | ) | (0.30 | ) | (3.3 | ) | (0.03 | ) | ||||||||
Regulatory disallowance | -- | -- | 8.0 | 0.08 | ||||||||||||
On-going Earnings | $ | 99.4 | $ | 0.98 | $ | 100.2 | $ | 1.00 | ||||||||
ARIZONA PUBLIC SERVICE | ||||||||||||||||
Net Income | $ | 119.0 | $ | 79.4 | ||||||||||||
Adjustments: | ||||||||||||||||
Income tax credits related to prior years | (29.3 | ) | (1.5 | ) | ||||||||||||
Regulatory disallowance | -- | 8.0 | ||||||||||||||
On-going Earnings | $ | 89.7 | $ | 85.9 | ||||||||||||
PINNACLE WEST CAPITAL CORPORATION | ||||||||||||||||||
THREE MONTHS ENDED |
SIX MONTHS ENDED JUNE 30, | |||||||||||||||||
| 2008 | 2007 | 2008 | 2007 | |||||||||||||||
| Operating Revenues | ||||||||||||||||||
| Regulated electricity segment | $ | 829,478 | $ | 711,293 | $ | 1,452,279 | $ | 1,247,344 | ||||||||||
| Real estate segment | 36,880 | 47,819 | 84,622 | 124,951 | ||||||||||||||
| Marketing and trading | 50,673 | 92,637 | 108,131 | 165,108 | ||||||||||||||
| Other revenues | 9,162 | 11,153 | 17,899 | 20,516 | ||||||||||||||
| Total | 926,193 | 862,902 | 1,662,931 | 1,557,919 | ||||||||||||||
| Operating Expenses | ||||||||||||||||||
| Regulated electricity segment fuel and purchased power | 327,561 | 270,337 | 596,939 | 473,690 | ||||||||||||||
| Real estate segment operations | 41,746 | 45,917 | 89,965 | 107,253 | ||||||||||||||
| Marketing and trading fuel and purchased power | 45,245 | 74,533 | 96,767 | 132,477 | ||||||||||||||
| Operations and maintenance | 194,909 | 177,310 | 389,033 | 348,888 | ||||||||||||||
| Depreciation and amortization | 97,784 | 92,476 | 193,391 | 181,854 | ||||||||||||||
| Taxes other than income taxes | 33,251 | 34,757 | 66,403 | 69,476 | ||||||||||||||
| Other expenses | 6,822 | 8,803 | 12,760 | 17,291 | ||||||||||||||
| Total | 747,318 | 704,133 | 1,445,258 | 1,330,929 | ||||||||||||||
| Operating Income | 178,875 | 158,769 | 217,673 | 226,990 | ||||||||||||||
| Other | ||||||||||||||||||
| Allowance for equity funds used during construction | 5,414 | 5,195 | 11,538 | 9,639 | ||||||||||||||
| Other income | 3,928 | 5,869 | 7,776 | 8,642 | ||||||||||||||
| Other expense | (10,063 | ) | (3,269 | ) | (14,971 | ) | (7,883 | ) | ||||||||||
| Total | (721 | ) | 7,795 | 4,343 | 10,398 | |||||||||||||
| Interest Expense | ||||||||||||||||||
| Interest charges | 51,583 | 51,827 | 106,349 | 101,953 | ||||||||||||||
| Capitalized interest | (4,938 | ) | (5,213 | ) | (10,617 | ) | (10,020 | ) | ||||||||||
| Total | 46,645 | 46,614 | 95,732 | 91,933 | ||||||||||||||
| Income From Continuing Operations Before Income Taxes | 131,509 | 119,950 | 126,284 | 145,455 | ||||||||||||||
| Income Taxes | 17,076 | 40,713 | 16,519 | 49,754 | ||||||||||||||
| Income From Continuing Operations | 114,433 | 79,237 | 109,765 | 95,701 | ||||||||||||||
| Income (Loss) From Discontinued Operations | ||||||||||||||||||
| Net of Income Taxes | 19,429 | (243 | ) | 19,624 | (177 | ) | ||||||||||||
| Net Income | $ | 133,862 | $ | 78,994 | $ | 129,389 | $ | 95,524 | ||||||||||
| Weighted-Average Common Shares Outstanding - Basic | 100,653 | 100,229 | 100,587 | 100,138 | ||||||||||||||
| Weighted-Average Common Shares Outstanding - Diluted | 100,917 | 100,779 | 100,856 | 100,718 | ||||||||||||||
| Earnings Per Weighted-Average Common Share Outstanding | ||||||||||||||||||
| Income from continuing operations - basic | $ | 1.14 | $ | 0.79 | $ | 1.09 | $ | 0.96 | ||||||||||
| Net income - basic | $ | 1.33 | $ | 0.79 | $ | 1.29 | $ | 0.95 | ||||||||||
| Income from continuing operations - diluted | $ | 1.13 | $ | 0.79 | $ | 1.09 | $ | 0.95 | ||||||||||
| Net income - diluted | $ | 1.33 | $ | 0.78 | $ | 1.28 | $ | 0.95 | ||||||||||
Contacts:
Media:
Alan Bunnell,
602-250-3376
Analyst:
Rebecca Hickman, 602-250-5668
Lisa
Malagon, 602-250-5671
Web site: www.pinnaclewest.com
