EX-99.9 10 p73728exv99w9.htm EX-99.9 exv99w9
 

Exhibit 99.9
(NEWS)
         
FOR IMMEDIATE RELEASE   April 25, 2007
Media Contact:
  Alan Bunnell, (602) 250-3376   Page 1 of 2
Analyst Contacts:
  Rebecca Hickman, (602) 250-5668    
 
  Lisa Malagon, (602) 250-5671    
Web site:
  www.pinnaclewest.com    
PINNACLE WEST REPORTS FIRST QUARTER EARNINGS IMPROVEMENT
Cooler Weather Spurs Increase in Electricity Sales
PHOENIX — Pinnacle West Capital Corporation (NYSE: PNW) today reported consolidated net income for the quarter ended March 31, 2007, of $16.5 million, or $0.16 per diluted share of common stock. This result compares with net income of $12.5 million, or $0.13 per share, for the comparable quarter a year ago.
The improved results were driven largely by higher retail sales at Arizona Public Service (APS) due to cooler weather and by fewer power plant outages, partially offset by lower results from the Company’s real estate operations. Weather effects, highlighted by the coldest Arizona January in nearly two decades, contributed $8 million, or $0.08 per share, to the quarterly improvement.
Compared with the first quarter a year ago, electricity consumption by APS retail customers increased 7.1 percent in 2007 with a customer base that grew 3.8 percent, according to Chairman Bill Post.
“Serving Arizona’s growth continues to drive our business and our strategies,” he said. “During the first quarter alone, we invested more than $180 million in capital improvements to Arizona’s electric infrastructure. And, over the balance of the year, we expect to invest an additional $750 million to continue reliably serving our retail customers.”
APS reported earnings of $4.3 million for the first quarter of 2007, compared with a net loss of $5.5 million in the 2006 first quarter. Operationally, the 2007 quarter reflected significantly improved performance at the Palo Verde Nuclear Generating Station, which recorded a site capacity factor of 94 percent.
SunCor Development Co., Pinnacle West’s real estate subsidiary, reported net income of $9.3 million, down from $22.0 million for the same period a year ago, primarily due to decreased sales of land parcels and residential property.
For more information on Pinnacle West’s operating statistics and earnings, please visit www.pinnaclewest.com/financials.

 

 

         
PINNACLE WEST FIRST QUARTER EARNINGS   April 25, 2007
 
      Page 2 of 2
Pinnacle West is a Phoenix-based company with consolidated assets of about $12 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.
Conference Call
Pinnacle West invites interested parties to listen to the live web cast of management’s conference call to discuss the Company’s 2007 first quarter earnings and recent developments at 2 p.m. (ET), today, Wednesday, April 25, 2007. 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 5864791. A replay of the call also will be available until 11:55 p.m. (ET), Tuesday, May 1, 2007, 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,  
    2007     2006  
Operating Revenues
                
Regulated electricity segment
   $ 536,051     $ 466,126  
Real estate segment
     77,250       107,854  
Marketing and trading
     72,471       85,002  
Other revenues
     9,363       11,224  
 
            
Total
     695,135       670,206  
 
            
 
                
Operating Expenses
                
Regulated electricity segment fuel and purchased power
     203,353       157,395  
Real estate segment operations
     61,443       71,330  
Marketing and trading fuel and purchased power
     57,944       74,175  
Operations and maintenance
     171,578       178,427  
Depreciation and amortization
     89,621       87,621  
Taxes other than income taxes
     34,719       35,573  
Other expenses
     8,488       8,522  
 
            
Total
     627,146       613,043  
 
            
 
                
Operating Income
     67,989       57,163  
 
            
 
                
Other
                
Allowance for equity funds used during construction
     4,444       3,801  
Other income
     4,512       5,467  
Other expense
     (6,353 )     (4,541 )
 
            
Total
     2,603       4,727  
 
            
 
                
Interest Expense
                
Interest charges
     50,992       47,526  
Capitalized interest
     (4,807 )     (4,024 )
 
            
Total
     46,185       43,502  
 
            
 
                
Income From Continuing Operations Before Income Taxes
     24,407       18,388  
 
                
Income Taxes
     8,609       6,793  
 
            
 
                
Income From Continuing Operations
     15,798       11,595  
 
                
Income From Discontinued Operations Net of Income Taxes
     732       860  
 
            
 
                
Net Income
   $ 16,530     $ 12,455  
 
            
 
                
Weighted-Average Common Shares Outstanding — Basic
     100,045       99,115  
 
                
Weighted-Average Common Shares Outstanding — Diluted
     100,622       99,449  
 
                
Earnings Per Weighted-Average Common Share Outstanding
                
Income from continuing operations — basic
   $ 0.16     $ 0.12  
Net income — basic
   $ 0.17     $ 0.13  
Income from continuing operations — diluted
   $ 0.16     $ 0.12  
Net income — diluted
   $ 0.16     $ 0.13