EX-99.8 9 p14136exv99w8.htm EX-99.8 exv99w8
Exhibit 99.8
(PINNACLE WEST NEWS)
         
FOR IMMEDIATE RELEASE   February 20, 2009
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 FOURTH-QUARTER LOSS
Real Estate Write-Down Dominates Consolidated Results
PHOENIX — Pinnacle West Capital Corporation (NYSE: PNW) today reported a consolidated net loss for the quarter ended December 31, 2008, of $38.9 million, or $0.39 per diluted share of common stock. This result compares with consolidated net income of $2.9 million, or $0.03 per diluted share, for the same quarter a year ago. The lower quarterly results were due largely to real estate impairment charges of $32.5 million, net of tax, for SunCor, the Company’s real estate subsidiary.
Arizona Public Service (APS), the Company’s principal subsidiary, reported a 2008 fourth-quarter net loss of $16.4 million, compared with net income of $0.3 million for the same period a year ago. The utility’s 2008 results were negatively impacted by higher expenditures for continuing infrastructure additions and improvements and lower mark-to-market valuations of fuel and purchased power contracts.
“Our fourth-quarter results reflect the need to continue to meet our customers’ electric demand in the future” said Chairman Bill Post. “While our growth rate has dropped significantly, we still ended the year with more than 10,000 new customers.”
Earlier this year, APS filed a comprehensive long-term resource plan with the Arizona Corporation Commission to address the future energy needs of Arizona. “Although our economy has been damaged by the real estate downturn and national recession, we must stay diligent in our focus to ensure Arizona has the energy resources to meet our future needs,” said APS CEO Don Brandt. “We are working aggressively to minimize our costs while maintaining our electric reliability.”
For the year 2008 as a whole, Pinnacle West reported 2008 consolidated net income of $242.1 million, or $2.40 per diluted share, compared with 2007 net income of $307.1 million, or $3.05 per diluted share.
For more information on Pinnacle West’s operating statistics and earnings, please visit www.pinnaclewest.com/financials.

 

 

     
PINNACLE WEST REPORTS 2008 EARNINGS
  February 20, 2009
 
  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 fourth-quarter and year-end results, as well as recent developments at 12:00 noon (ET), today, Friday, February 20, 2009. 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 81428217. A replay of the call also will be available until 11:55 p.m. (ET), Friday, February 27, 2009, 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.
Pinnacle West is a Phoenix-based company with consolidated assets of about $11.6 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
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
( in thousands, except per share amounts)
                                 
    THREE MONTHS ENDED     TWELVE MONTHS ENDED  
    DECEMBER 31,     DECEMBER 31,  
    2008     2007     2008     2007  
Operating Revenues
                                
Regulated electricity segment
   $ 634,756     $ 627,096     $ 3,127,383     $ 2,918,163  
Real estate segment
     27,480       40,924       131,067       212,586  
Marketing and trading
     9,274       29,149       66,897       138,247  
Other revenues
     14,905       11,905       41,729       48,018  
 
                        
Total
     686,415       709,074       3,367,076       3,317,014  
 
                        
 
                                
Operating Expenses
                                
Regulated electricity segment fuel and purchased power
     267,198       259,991       1,284,116       1,140,923  
Real estate segment operations
     30,219       39,644       149,125       192,972  
Real estate impairment charge
     53,250       —       53,250       —  
Marketing and trading fuel and purchased power
     1,443       19,589       45,572       100,462  
Operations and maintenance
     209,797       205,579       807,852       728,340  
Depreciation and amortization
     98,434       95,536       390,358       372,102  
Taxes other than income taxes
     30,510       23,802       125,336       128,210  
Other expenses
     13,090       10,388       34,171       38,925  
 
                        
Total
     703,941       654,529       2,889,780       2,701,934  
 
                        
 
                                
Operating Income
     (17,526 )     54,545       477,296       615,080  
 
                        
 
                                
Other
                                
Allowance for equity funds used during construction
     2,425       6,321       18,636       21,195  
Other income
     2,028       12,718       12,078       24,694  
Other expense
     (9,523 )     (12,183 )     (31,576 )     (25,857 )
 
                        
Total
     (5,070 )     6,856       (862 )     20,032  
 
                        
 
                                
Interest Expense
                                
Interest charges
     58,710       53,417       216,290       208,521  
Capitalized interest
     (4,227 )     (7,608 )     (18,820 )     (23,063 )
 
                        
Total
     54,483       45,809       197,470       185,458  
 
                        
 
                                
Income (Loss) From Continuing Operations Before Income Taxes
     (77,079 )     15,592       278,964       449,654  
 
                                
Income Taxes
     (28,373 )     11,124       65,407       150,910  
 
                        
 
                                
Income (Loss) From Continuing Operations
     (48,706 )     4,468       213,557       298,744  
 
                                
Income (Loss) From Discontinued Operations
                                
Net of Income Taxes
     9,856       (1,557 )     28,568       8,399  
 
                        
 
                                
Net Income (Loss)
   $ (38,850 )   $ 2,911     $ 242,125     $ 307,143  
 
                        
 
                                
Weighted-Average Common Shares Outstanding — Basic
     100,836       100,420       100,691       100,256  
 
                                
Weighted-Average Common Shares Outstanding — Diluted
     100,836       100,963       100,965       100,835  
 
                                
Earnings Per Weighted-Average Common Share Outstanding
                                
Income (loss) from continuing operations — basic
   $ (0.48 )   $ 0.04     $ 2.12     $ 2.98  
Net income (loss) — basic
   $ (0.39 )   $ 0.03     $ 2.40     $ 3.06  
Income (loss) from continuing operations — diluted
   $ (0.48 )   $ 0.04     $ 2.12     $ 2.96  
Net income (loss) — diluted
   $ (0.39 )   $ 0.03     $ 2.40     $ 3.05