EX-99.8 9 p72248exv99w8.htm EXHIBIT 99.8 exv99w8
 

Exhibit 99.8
(PINNACLEWEST CAPITAL CORPORATION LOGO)
         
FOR IMMEDIATE RELEASE   May 9, 2006
Media Contact:
  Alan Bunnell, (602) 250-3376   Page 1 of 2
Analyst Contact:
  Rebecca Hickman, (602) 250-5668    
Web site:
  www.pinnaclewest.com    
PINNACLE WEST FIRST QUARTER EARNINGS
LOWER DUE TO HIGHER FUEL COSTS
PHOENIX — Pinnacle West Capital Corporation (NYSE: PNW) today reported lower consolidated net income for the quarter ended March 31, 2006, of $12.5 million, or $0.13 per diluted share of common stock. This result compares with net income of $24.4 million, or $0.27 per share, for the comparable quarter a year ago.
Arizona Public Service (APS) reported a net loss of $5.5 million for the first quarter of 2006, compared with net income of $27.0 million for the same period a year ago. Whereas, SunCor Development Co., Pinnacle West’s real estate subsidiary, delivered solid performance, reporting net income of $22.0 million, compared with $9.4 million in the 2005 first quarter.
“APS’ first quarter sales growth was strong, increasing 4 percent in 2006. But the associated revenue growth was more than offset by high natural gas and purchased power prices,” said Chairman Bill Post. “The power supply adjustor approved by the Arizona Corporation Commission (ACC) last week allows us to begin collecting a significant portion of our fuel cost increases on a timely basis.
“And, the ACC’s order will improve APS’ cash flow, which is essential to maintaining its financial integrity and investment grade credit ratings so as to allow us to continue supporting Arizona’s growth in the most cost-effective manner for our customers.”
For more information on Pinnacle West’s operating statistics and earnings, please visit www.pinnaclewest.com/financials.
Pinnacle West is a Phoenix-based company with consolidated assets of about $11 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 FIRST QUARTER EARNINGS   May 9, 2006
    Page 2 of 2
Conference Call
Pinnacle West invites interested parties to listen to the live web cast of management’s conference call to discuss the Company’s 2006 first quarter earnings and recent developments at 1:00 p.m. (ET), today, Tuesday, May 9, 2006. 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 reservation number 8073391. A replay of the call also will be available until 11:55 p.m. (ET), Tuesday, May 16, 2006, by calling (800) 642-1687 in the U.S. and Canada or (706) 645-9291 internationally and entering the same reservation number as above.

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PINNACLE WEST CAPITAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
(in thousands, except per share amounts)
                 
    THREE MONTHS ENDED  
    MARCH 31,  
    2006     2005  
Operating Revenues
                
Regulated electricity segment
   $ 466,126     $ 416,030  
Marketing and trading segment
     85,002       89,257  
Real estate segment
     107,854       69,936  
Other revenues
     11,224       10,135  
 
            
Total
     670,206       585,358  
 
            
 
                
Operating Expenses
                
Regulated electricity segment fuel and purchased power
     157,395       78,423  
Marketing and trading segment fuel and purchased power
     74,175       70,809  
Operations and maintenance
     178,427       155,084  
Real estate segment operations
     71,330       55,334  
Depreciation and amortization
     87,621       90,944  
Taxes other than income taxes
     35,573       34,565  
Other expenses
     8,522       8,374  
 
            
Total
     613,043       493,533  
 
            
 
                
Operating Income
     57,163       91,825  
 
            
 
                
Other
                
Allowance for equity funds used during construction
     3,801       2,603  
Other income
     5,467       1,726  
Other expense
     (4,541 )     (5,309 )
 
            
Total
     4,727       (980 )
 
            
 
                
Interest Expense
                
Interest charges
     47,526       45,965  
Capitalized interest
     (4,024 )     (3,289 )
 
            
Total
     43,502       42,676  
 
            
 
                
Income From Continuing Operations Before Income Taxes
     18,388       48,169  
 
                
Income Taxes
     6,793       18,570  
 
            
 
                
Income From Continuing Operations
     11,595       29,599  
 
                
Income (Loss) From Discontinued Operations
                
Net of Income Taxes
     860       (5,151 )
 
            
 
                
Net Income
   $ 12,455     $ 24,448  
 
            
 
                
Weighted-Average Common Shares Outstanding — Basic
     99,115       91,962  
 
                
Weighted-Average Common Shares Outstanding — Diluted
     99,449       92,045  
 
                
Earnings Per Weighted-Average Common Share Outstanding
                
Income From Continuing Operations — Basic
   $ 0.12     $ 0.32  
Net Income — Basic
   $ 0.13     $ 0.27  
Income From Continuing Operations — Diluted
   $ 0.12     $ 0.32  
Net Income — Diluted
   $ 0.13     $ 0.27  
Certain prior year amounts have been reclassified to conform to the 2006 presentation.