PHOENIX - Pinnacle West Capital Corporation (NYSE: PNW) today reported consolidated net income for the quarter ended June 30, 2006, of $112.2 million, or $1.13 per diluted share of common stock. This result compares with net income of $26.7 million, or $0.28 per diluted share, for the same quarter a year ago.
On-going consolidated earnings in the 2006 second quarter were $102 million, or $1.03 per share, compared with $86 million, or $0.89 per share in the comparable 2005 quarter. The 2006 results exclude income tax credits related to prior years of $10 million, or $0.10 per share. On-going earnings for the second quarter of 2005 exclude an after-tax loss of $59 million, or $0.61 per share, related to the sale of the Silverhawk Power Station.
“Growth in our service territory remains robust,” said Pinnacle West Chairman Bill Post, citing Arizona’s population growth, which is three times the national average. “Successfully serving this growth will require continuing cooperation from state regulators as our company invests in new, long-term resources to meet the ever-increasing demand for electricity.”
Results for the quarter were positively impacted by higher retail sales at Arizona Public Service (APS) due to customer growth of 4.6 percent; fuel and purchased power cost deferrals; and warmer weather, punctuated by the hottest June on record. The average temperature during June was almost 5 degrees above normal. The warmer weather added $0.10 per share compared with last year’s second quarter.
These positive items were partially offset by higher fuel and purchased power costs; and an increase in operating costs primarily related to higher generation maintenance and customer service costs.
APS reported net income of $93.8 million for the second quarter of 2006, compared with net income of $64.0 million for the same period a year ago. In addition, SunCor Development Co., Pinnacle West’s real estate subsidiary, reported net income of $9.6 million, compared with $11.3 million in the 2005 second quarter.
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 2006 second quarter earnings and recent developments at 1:00 p.m. (ET), today, Friday, July 21, 2006. 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 2026344. A replay of the call also will be available until 11:55 p.m. (ET), Friday, July 28, 2006, 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 is a Phoenix-based company with consolidated assets of about $11 billion. Through its subsidiaries, the Company generates, sells and delivers electricity and sells energy-related products and services to retail and wholesale customers in the western United States. It also develops residential, commercial, and industrial real estate projects.
PINNACLE WEST CAPITAL CORPORATION
NON-GAAP FINANCIAL MEASURE RECONCILIATION – NET INCOME (GAAP MEASURE)
TO ON-GOING EARNINGS (NON-GAAP FINANCIAL MEASURE)
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Three Months Ended
June 30, 2006
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Three Months Ended
June 30, 2005
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$ in
Millions
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Diluted EPS
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$ in
Millions
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Diluted EPS
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|
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| Net Income |
$ 112
|
$ 1.13
|
$ 27
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$ 0.28
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| Adjustments: |
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| Income tax credits related to prior periods |
(10)
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(0.10)
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--
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--
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Loss from discontinued operations - Silverhawk
Power Station write-down |
--
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--
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56
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0.57
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Loss from discontinued operations - Silverhawk
Power Station operations |
--
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--
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3
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0.04
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| On-going Earnings |
$ 102
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$ 1.03
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$ 86
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$ 0.89
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Contacts
Media:
Alan Bunnell, (602) 250-3376
Analyst:
Rebecca Hickman, (602) 250-5668
Lisa Malagon, (602) 250-5671