PHOENIX, Ariz. - Pinnacle West Capital Corporation (NYSE:PNW) today reported consolidated net income for the quarter ended June 30, 1999 of $68.7 million or $0.81 per diluted share of common stock, compared with $49.0 million or $0.57 per share a year ago.
The earnings comparison was distorted by weather that in the second quarter of 1998 was the mildest it had been in 20 years.
Positive effects for the quarter included 4 percent customer growth at Arizona Public Service, increased contributions from power marketing and trading activities and lower financing costs, partially offset by a 1998 electricity price decrease, increased fuel costs and minor increases in other expenses.
For the quarter ended June 30, 1999, APS earned $69.5 million, compared with $49.7 million for the year-ago quarter.
SunCor Development, the company's real estate subsidiary, and El Dorado, its investment subsidiary, contributed a combined $2.9 million to consolidated results for the second quarter, compared with $3.1 million in the second quarter last year.
For the six-month period ended June 30, 1999, Pinnacle West reported consolidated net income of $99.4 million or $1.17 per share of diluted common stock, compared with $80.1 million or $0.94 per share for the corresponding period in 1998.
Pinnacle West is a Phoenix-based company with consolidated assets of approximately $7 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.
Three Months Ended
June 30, |
Six Months Ended
June 30, |
Twelve Months Ended
June 30, |
|
1999 |
1998 |
1999 |
1998 |
1999 |
1998 |
|
|
Operating Revenues |
Electric |
$ 511,434 |
$ 441,715 |
$ 925,417 |
$ 822,138 |
$2,109,677 |
$1,862,919 |
Real estate |
32,697 |
28,916 |
57,230 |
63,077 |
118,341 |
129,841 |
|
|
Total |
544,131 |
470,631 |
982,647 |
885,215 |
2,228,018 |
1,992,760 |
|
|
Operating Expenses |
Fuel and purchased power |
132,543 |
95,585 |
231,784 |
169,502 |
599,783 |
421,350 |
Utility operations and maintenance |
106,234 |
102,713 |
205,318 |
199,129 |
420,230 |
421,385 |
Real estate operations |
29,401 |
26,213 |
51,636 |
56,449 |
110,518 |
120,014 |
Depreciation and amortization |
97,383 |
93,585 |
194,293 |
186,415 |
387,557 |
370,289 |
Taxes other than income taxes |
29,602 |
29,930 |
59,049 |
60,278 |
115,677 |
121,269 |
|
|
Total |
395,163 |
348,026 |
742,080 |
671,773 |
1,633,765 |
1,454,307 |
|
|
Operating Income |
148,968 |
122,605 |
240,567 |
213,442 |
594,253 |
538,453 |
|
|
Other Income (Expenses) |
Preferred stock dividend requirements of APS |
-- |
(2,435) |
(1,016) |
(5,313) |
(5,406) |
(11,295) |
Net other income and expense |
399 |
192 |
(1,938) |
4,551 |
(5,880) |
74 |
|
|
Total |
399 |
(2,243) |
(2,954) |
(762) |
(11,286) |
(11,221) |
|
|
Income Before Interest and Income Taxes |
149,367 |
120,362 |
237,613 |
212,680 |
582,967 |
527,232 |
|
|
Interest Expense |
Interest charges |
41,105 |
42,441 |
81,874 |
85,363 |
165,656 |
176,207 |
Capitalized interest |
(4,189) |
(4,874) |
(8,263) |
(9,530) |
(17,329) |
(19,223) |
|
|
Total |
36,916 |
37,567 |
73,611 |
75,833 |
148,327 |
156,984 |
|
|
Income Before Income Taxes |
112,451 |
82,795 |
164,002 |
136,847 |
434,640 |
370,248 |
Income Taxes |
43,749 |
33,798 |
64,610 |
56,764 |
172,439 |
146,873 |
|
|
Net Income |
$ 68,702 |
$ 48,997 |
$ 99,392 |
$ 80,083 |
$ 262,201 |
$ 223,375 |
|
|
Average Common Shares Outstanding - Basic |
84,716 |
84,811 |
84,693 |
84,798 |
84,722 |
84,768 |
Average Common Shares Outstanding - Diluted |
85,093 |
85,416 |
85,135 |
85,375 |
85,232 |
85,299 |
Earnings Per Average
Common Share Outstanding |
Net income - Basic |
$ 0.81 |
$ 0.58 |
$ 1.17 |
$ 0.94 |
$ 3.09 |
$ 2.64 |
|
|
Net income - Diluted |
$ 0.81 |
$ 0.57 |
$ 1.17 |
$ 0.94 |
$ 3.08 |
$ 2.62 |
|
|
Contacts
This press release contains forward-looking statements that involve risks and uncertainties, which include, but are not limited to, the ongoing restructuring of the electric industry; the outcome of the regulatory proceedings relating to the restructuring; regional economic and market conditions, which could affect customer growth and the cost of power supplies; the cost of debt and equity capital; weather variations affecting customer usage; and the strength of the real estate market. These factors and the other matters discussed above may cause future results to differ materially from historical results, or from results or outcomes currently expected or sought by the Company.