PHOENIX, ARIZ. Pinnacle West Capital Corporation (NYSE:PNW) today reported consolidated net income for the quarter ended March 31, 1999 of $30.7 million or $0.36 per diluted share of common stock, approximately the same as the corresponding quarter a year ago.
Chief Executive Officer Bill Post said that the positive effects of four percent customer growth, lower financing costs and increased contributions from power marketing and trading were offset by the effects of milder weather, lower results from the company's non-utility subsidiaries and an electricity price decrease that became effective July 1, 1998.
"Our markets and our fundamentals are strong," said Post. "We will continue to capture the advantages of our electricity customer growth that is three times the national average."
Arizona Public Service earnings were $31.8 million for the quarter, compared with $29.1 million for the corresponding period in 1998.
SunCor, the Company's real estate subsidiary, and El Dorado, its investment subsidiary, contributed a combined $1.2 million to consolidated results for the first quarter of 1999, compared with $6.4 million in the first quarter last year. The decline was primarily related to El Dorado's harvesting of investment gains in early 1998.
Also today, the Pinnacle West board of directors declared a quarterly dividend of 32.5 cents per share of common stock, payable on June 1, 1999 to shareholders of record on May 3, 1999.
Pinnacle West is a Phoenix-based holding company with consolidated assets of approximately $7 billion. Its major subsidiary is APS, the state's largest electric utility.
Pinnacle West Capital Corporation Consolidated Statements of Income
(In Thousands, Except Per Share Amounts)
(Unaudited)
Three Months Ended
March 31, |
Twelve Months Ended
March 31, |
|
|
|
|
1999 |
1998 |
1999 |
1998 |
|
|
|
|
|
| Operating Revenues |
| Electric |
$ |
413,983 |
$ |
380,423 |
$ |
2,039,958 |
$ |
1,879,955 |
| Real estate |
|
24,533 |
|
34,161 |
|
114,560 |
|
131,091 |
|
|
|
|
|
| Total |
|
438,516 |
|
414,584 |
|
2,154,518 |
|
2,011,046 |
|
|
|
|
|
| Operating Expenses |
| Fuel and purchased power |
|
99,241 |
|
73,917 |
|
562,825 |
|
425,075 |
| Utility operations and maintenance |
|
97,404 |
|
96,416 |
|
415,029 |
|
407,834 |
| Real estate operations |
|
22,235 |
|
30,236 |
|
107,330 |
|
122,102 |
| Depreciation and amortization |
|
96,873 |
|
92,830 |
|
383,722 |
|
368,513 |
| Taxes other than income taxes |
|
29,447 |
|
30,348 |
|
116,005 |
|
121,650 |
|
|
|
|
|
| Total |
|
345,200 |
|
323,747 |
|
1,584,911 |
|
1,445,174 |
|
|
|
|
|
| Operating Income |
|
93,316 |
|
90,837 |
|
569,607 |
|
565,872 |
|
|
|
|
|
| Other Income (Expenses) |
| Preferred stock dividend requirements of APS |
|
(1,016) |
|
(2,878) |
|
(7,841) |
|
(12,055) |
| Net other income and expense |
|
(4,045) |
|
4,359 |
|
(7,804) |
|
4,705 |
| Total |
|
(5,070) |
|
1,481 |
|
(15,645) |
|
(7,350) |
|
|
|
|
|
| Income Before Interest and Income Taxes |
|
88,246 |
|
92,318 |
|
553,962 |
|
558,522 |
|
|
|
|
|
| Interest Expense |
| Interest charges |
|
40,769 |
|
42,922 |
|
166,992 |
|
180,971 |
| Capitalized interest |
|
(4,074) |
|
(4,656) |
|
(18,014) |
|
(19,688) |
| Total |
|
36,695 |
|
38,266 |
|
148,978 |
|
161,283 |
|
|
|
|
|
| Income Before Income Taxes |
|
51,551 |
|
54,052 |
|
404,984 |
|
397,239 |
| Income Taxes |
|
20,861 |
|
22,966 |
|
162,488 |
|
155,679 |
|
|
|
|
|
| Net Income |
$ |
30,690 |
$ |
31,086 |
$ |
242,496 |
$ |
241,560 |
|
|
|
|
|
| Average Common Shares Outstanding - Basic |
|
84,670 |
|
84,785 |
|
84,746 |
|
84,854 |
| Average Common Shares Outstanding - Diluted |
|
85,176 |
|
85,332 |
|
85,352 |
|
85,384 |
Earnings Per Average
Common Share Outstanding |
|
|
|
|
|
| Net income - Basic |
$ |
0.36 |
$ |
0.37 |
$ |
2.86 |
$ |
2.85 |
|
|
|
|
|
| Net income - Diluted |
$ |
0.36 |
$ |
0.36 |
$ |
2.84 |
$ |
2.83 |
|
|
|
|
|
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.