EX-99.9 10 p75965exv99w9.htm EX-99.9 exv99w9
Exhibit 99.9
(LOGO)
         
FOR IMMEDIATE RELEASE   July 30, 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 ON-GOING YEAR-TO-DATE EARNINGS FLAT
Prior-Year Tax Credits and Real Estate Sale Drive Second-Quarter Results
PHOENIX – 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 SECOND QUARTER EARNINGS   July 30, 2008
    Page 2 of 2
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.
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PINNACLE WEST CAPITAL CORPORATION
NON-GAAP FINANCIAL MEASURE RECONCILIATION – NET INCOME
(GAAP MEASURE) TO ON-GOING EARNINGS (NON-GAAP FINANCIAL MEASURE)
                                 
    Three Months Ended     Three Months Ended  
    June 30, 2008     June 30, 2007  
    $ in     Diluted     $ in     Diluted  
    Millions     EPS     Millions     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, 2008     June 30, 2007  
    $ in     Diluted     $ in     Diluted  
    Millions     EPS     Millions     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
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
(in thousands, except per share amounts)
                                 
    THREE MONTHS ENDED     SIX MONTHS ENDED  
    JUNE 30,     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