EX-99.9 10 p74894exv99w9.htm EX-99.9 exv99w9
 

Exhibit 99.9
(PINNACLE WEST CAPITAL CORPORATION LOGO)
         
FOR IMMEDIATE RELEASE   January 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 REPORTS LOWER FOURTH QUARTER EARNINGS
APS Quarterly Results Down 98 Percent
PHOENIX — Pinnacle West Capital Corporation (NYSE: PNW) today reported consolidated net income for the quarter ended December 31, 2007, of $2.9 million, or $0.03 per diluted share of common stock. This result compares with net income of $18.5 million, or $0.18 per diluted share, for the same quarter a year ago.
The quarterly results were impacted by lower results from the Company’s utility and real estate operations. Arizona Public Service (APS), the Company’s principal subsidiary, reported net income of $0.3 million, compared with earnings of $12.9 million for the same period a year ago. In addition, real estate subsidiary SunCor Development Co. reported lower net income of $8.1 million, compared with $11.4 million in the final quarter of 2006, reflecting a continued slowdown in the western U.S. real estate markets.
The 2007 fourth-quarter earnings were negatively impacted by increased operation and maintenance costs primarily related to power plant maintenance and planned overhauls, as well as higher customer service, depreciation and other growth-related costs. These factors more than offset increased retail sales at APS primarily due to customer growth of 2.6 percent.
“Arizona’s growth and the increasing demand for energy require additional capital investment,” said Chairman Bill Post. “Meeting this growth — and finding a way to effectively pay for and recover the associated costs — will require a transparent, collaborative and forward-looking process with all our stakeholders. We are committed to working with our customers, communities and regulators to find solutions to these challenges.”
Post added that in 2007 the Company’s employees continued meeting the challenges of growth in Arizona. The Company recorded all-time best results in measures such as customer outage frequency and average outage duration, all while setting 35,000 new meters and managing one of the hottest summers on record. APS’ top-tier customer service also was recognized in 2007 survey results from J.D. Power and Associates. APS was rated number two among investor-owned electric utilities in the West for superior customer satisfaction by both residential and business customers.

 

 

PINNACLE WEST FOURTH QUARTER EARNINGS   January 30, 2008
    Page 2 of 2
For the year 2007 as a whole, Pinnacle West’s consolidated net income decreased 6 percent to $307.1 million, or $3.05 per share, compared with 2006 net income of $327.3 million, or $3.27 per diluted share. APS reported earnings of $283.9 million during the same period compared with $269.7 million in 2006. And, SunCor reported net income of $23.7 million, down from $60.5 million for the same period a year ago.
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 2007 fourth-quarter earnings and year-end results, as well as recent developments at 11 a.m. (ET) today, January 30. 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 28391511. A replay of the call also will be available until 11:55 p.m. (ET), Thursday, February 7, 2008, by calling (800) 642-1687 in the U.S. and Canada or (706) 645-9291 internationally and entering the same reservation number.
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.

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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,  
    2007     2006     2007     2006  
Operating Revenues
                                
Regulated electricity segment
   $ 627,096     $ 569,213     $ 2,918,163     $ 2,635,036  
Real estate segment
     42,055       81,470       215,068       399,798  
Marketing and trading
     78,060       71,390       342,371       330,742  
Other revenues
     11,905       7,999       48,018       36,172  
 
                        
Total
     759,116       730,072       3,523,620       3,401,748  
 
                        
 
                                
Operating Expenses
                                
Regulated electricity segment fuel and purchased power
     259,991       225,160       1,140,923       960,649  
Real estate segment operations
     39,918       76,266       193,926       324,861  
Marketing and trading fuel and purchased power
     67,899       62,840       294,236       290,637  
Operations and maintenance
     207,398       180,122       734,705       691,277  
Depreciation and amortization
     95,921       91,336       373,436       358,644  
Taxes other than income taxes
     23,802       28,425       128,218       128,395  
Other expenses
     10,388       5,853       38,925       28,415  
 
                        
Total
     705,317       670,002       2,904,369       2,782,878  
 
                        
 
                                
Operating Income
     53,799       60,070       619,251       618,870  
 
                        
 
                                
Other
                                
Allowance for equity funds used during construction
     6,321       3,700       21,195       14,312  
Other income
     12,718       9,568       24,694       44,016  
Other expense
     (12,198 )     (14,847 )     (25,883 )     (27,800 )
 
                        
Total
     6,841       (1,579 )     20,006       30,528  
 
                        
 
                                
Interest Expense
                                
Interest charges
     54,268       52,841       212,620       196,826  
Capitalized interest
     (7,608 )     (6,394 )     (23,063 )     (20,989 )
 
                        
Total
     46,660       46,447       189,557       175,837  
 
                        
 
                                
Income From Continuing Operations Before Income Taxes
     13,980       12,044       449,700       473,561  
 
                                
Income Taxes
     10,492       1,518       150,920       156,418  
 
                        
 
                                
Income From Continuing Operations
     3,488       10,526       298,780       317,143  
 
                                
Income (Loss) From Discontinued Operations
                                
Net of Income Taxes
     (577 )     7,953       8,363       10,112  
 
                        
 
                                
Net Income
   $ 2,911     $ 18,479     $ 307,143     $ 327,255  
 
                        
 
                                
Weighted—Average Common Shares Outstanding — Basic
     100,420       99,832       100,256       99,417  
 
                                
Weighted-Average Common Shares Outstanding — Diluted
     100,963       100,474       100,835       100,010  
 
                                
Earnings Per Weighted-Average Common Share Outstanding
                                
Income from continuing operations — basic
   $ 0.03     $ 0.11     $ 2.98     $ 3.19  
Net income — basic
   $ 0.03     $ 0.19     $ 3.06     $ 3.29  
Income from continuing operations — diluted
   $ 0.03     $ 0.10     $ 2.96     $ 3.17  
Net income — diluted
   $ 0.03     $ 0.18     $ 3.05     $ 3.27