EX-99.9 10 p75432exv99w9.htm EX-99.9 exv99w9
 

Exhibit 99.9
(PINNACLE LOGO)
         
FOR IMMEDIATE RELEASE   April 29, 2008
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 2008 FIRST QUARTER LOSS
Costs to Serve Arizona’s Growth Continue to Rise
PHOENIX — Pinnacle West Capital Corporation (NYSE: PNW) today reported a consolidated net loss for the quarter ended March 31, 2008, of $4.5 million, or $0.04 per diluted share of common stock. This result compares with net income of $16.5 million, or $0.16 per share, for the first quarter of 2007.
Rising costs incurred by Arizona Public Service Co. (APS) to maintain and expand its electric system to sustain Arizona’s growth, and decreased earnings from Pinnacle West’s real estate operations, drove the lower results.
APS reported a net loss of $6.4 million for the 2008 first quarter, compared with net income of $4.3 million in the 2007 first quarter. APS’ increased operating costs in 2008 were related to a greater number of planned power plant overhauls and system maintenance, as well as higher customer service costs. Increased depreciation and interest costs related to growth also dampened the quarterly results. Higher retail sales, primarily due to customer growth, partially offset the increased costs.
SunCor Development Co. reported a net loss of $0.9 million for the current-year first quarter, compared with earnings of $9.3 million for the same period a year ago. SunCor’s results reflect the distressed national real estate market.
“Arizona continues to grow even with a slower economy. To support current growth levels, we must continue building more electricity infrastructure at a time when basic building materials (such as steel, copper, aluminum and concrete) for providing electricity are at record-high prices,” said Chairman Bill Post. “As a result, our costs for constructing needed facilities and maintaining APS’ existing electric service continue to increase.”
In a continuing effort to mitigate the rising costs, Post said the Company’s focus on cost-management remains a top priority. As previously reported, the Company has streamlined its organizational structure to better serve APS’ customers and is eliminating about 300 positions. These moves — and other operating cost reductions — are expected to decrease APS’ operating costs by $14 million annually.

 

 

     
PINNACLE WEST REPORTS FIRST QUARTER RESULTS
  April 29, 2008
 
  Page 2 of 2
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 first quarter earnings and recent developments at 1:30 p.m. (ET), today, Tuesday, April 29, 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 41125109. A replay of the call also will be available until 11:55 p.m. (ET), Tuesday, May 6, 2008, by calling (800) 642-1687 in the U.S. and Canada or (706) 645-9291 internationally and entering the same Conference ID number as above.
Based in Phoenix, Pinnacle West has 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.
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This press release contains a forward-looking statement regarding expected decreases in annual operating costs resulting from the elimination of about 300 positions. The Company assumes no obligation to update this statement or to make any further statement on this issue, except as required by applicable law. Because actual results may differ materially from our expectations, the Company cautions readers not to place undue reliance on this statement. A number of factors could cause future results to differ materially from the results we currently expect. These factors include our ability to eliminate positions while maintaining required reliability and customer service levels and unexpected developments that would require us not to eliminate all or a portion of these positions or to reinstate all of a portion of these or other positions.

 

 

PINNACLE WEST CAPITAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
( in thousands, except per share amounts)
                 
    THREE MONTHS ENDED  
    MARCH 31,  
    2008     2007  
Operating Revenues
                
Regulated electricity segment
   $ 622,801     $ 536,051  
Real estate segment
     47,742       77,132  
Marketing and trading
     57,458       72,471  
Other revenues
     8,737       9,363  
 
            
Total
     736,738       695,017  
 
            
 
                
Operating Expenses
                
Regulated electricity segment fuel and purchased power
     269,378       203,353  
Real estate segment operations
     48,219       61,336  
Marketing and trading fuel and purchased power
     51,522       57,944  
Operations and maintenance
     194,124       171,578  
Depreciation and amortization
     95,607       89,378  
Taxes other than income taxes
     33,152       34,719  
Other expenses
     5,938       8,488  
 
            
Total
     697,940       626,796  
 
            
 
                
Operating Income
     38,798       68,221  
 
            
 
                
Other
                
Allowance for equity funds used during construction
     6,124       4,444  
Other income
     3,848       4,512  
Other expense
     (4,908 )     (6,353 )
 
            
Total
     5,064       2,603  
 
            
 
                
Interest Expense
                
Interest charges
     54,766       50,126  
Capitalized interest
     (5,679 )     (4,807 )
 
            
Total
     49,087       45,319  
 
            
 
                
Income (Loss) From Continuing Operations Before Income Taxes
     (5,225 )     25,505  
 
                
Income Taxes
     (557 )     9,041  
 
            
 
                
Income (Loss) From Continuing Operations
     (4,668 )     16,464  
 
                
Income From Discontinued Operations Net of Income Taxes
     195       66  
 
            
 
                
Net Income (Loss)
   $ (4,473 )   $ 16,530  
 
            
 
                
Weighted-Average Common Shares Outstanding — Basic
     100,521       100,045  
 
                
Weighted-Average Common Shares Outstanding — Diluted
     100,521       100,622  
 
                
Earnings Per Weighted-Average Common Share Outstanding
                
Income (loss) from continuing operations — basic
   $ (0.05 )   $ 0.16  
Net income (loss) — basic
   $ (0.04 )   $ 0.17  
Income (loss) from continuing operations — diluted
   $ (0.05 )   $ 0.16  
Net income (loss) — diluted
   $ (0.04 )   $ 0.16