PHOENIX– Pinnacle West Capital Corporation (NYSE: PNW) today reported consolidated net income of $133.9million, or $1.33 per diluted share of common stock, for the quarter ended June 30, 2008. These results compare with net income of $79.0million, or $0.78 per diluted share, for the same period a year ago. The higher results were due in large part to $30 million of credits attributable to the resolution of tax issues applicable to prior years at the Company’s regulated utility and a $19 million gain from the sale of a large asset in its real estate business.
Pinnacle West Chairman Bill Post pointed out that Pinnacle West’s on-going earnings for the first six months of 2008 were the same as a year ago.
“Although earnings for the second quarter are up, after adjusting for the tax impacts, on‑going earnings are flat for the year with inflation offsetting our efficiency savings and revenue growth,” said Post. “Year-to-date, on-going earnings at Arizona Public Service are essentially flat, increasing only $4 million compared to last year.”
SunCor Development Co., Pinnacle West’s real estate subsidiary, reported net income of $14.7 million for the second quarter of 2008, compared with $0.3 million in the 2007 second quarter. The increase was entirely related to the sale of a 12-story office building at SunCor’s Hayden Ferry Lakeside development in Tempe, Ariz.
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 2008 second quarter earnings and recent developments at 1 p.m. (ET), today, Wednesday, July 30, 2008. 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 52534276. A replay of the call also will be available until 11:55 p.m. (ET), Wednesday, August 6, 2008, 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 $11.5 billion. Through its subsidiaries, the Company generates, sells and delivers electricity and sells energy-related products and services to retail and wholesale customers in the western United States. It also develops residential, commercial, and industrial real estate projects.
PINNACLE WEST CAPITAL CORPORATION
NON-GAAP FINANCIAL MEASURE RECONCILIATION – NET INCOME
(GAAP MEASURE) TO ON-GOING EARNINGS (NON-GAAP FINANCIAL MEASURE)
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Three Months Ended
June 30, 2008
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Three Months Ended
June 30, 2007
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|
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$ in
Millions
|
Diluted EPS
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$ in
Millions
|
Diluted EPS
|
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|
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|
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| Pinnacle West Capital Corporation |
|
|
|
|
| Net Income |
$ 133.9
|
$ 1.33
|
$ 79.0
|
$ 0.78
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| Adjustments: |
|
|
|
|
| Income tax credits related to prior years |
(30.0)
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(0.30)
|
(1.8)
|
(0.02)
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| Regulatory disallowance |
--
|
--
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8.0
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0.08
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|
|
|
|
| On-going Earnings |
$ 103.9
|
$ 1.03
|
$ 85.2
|
$ 0.84
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|
|
|
|
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|
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Six Months Ended
June 30, 2008
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Six Months Ended
June 30, 2007
|
| |
|
|
| |
$ in
Millions
|
Diluted EPS
|
$ in
Millions
|
Diluted EPS
|
| |
|
|
|
|
| Pinnacle West Capital Corporation |
|
|
|
|
| Net Income |
$ 129.4
|
$ 1.28
|
$ 95.5
|
$ 0.95
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| Adjustments: |
|
|
|
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| Income tax credits related to prior years |
(30.0)
|
(0.30)
|
(3.3)
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(0.03)
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| Regulatory disallowance |
--
|
--
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8.0
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0.08
|
| |
|
|
|
|
| On-going Earnings |
$ 99.4
|
$ 0.98
|
$ 100.2
|
$ 1.00
|
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|
|
|
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|
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| Arizona Publlic Service |
|
|
|
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| Net Income |
$ 119.0
|
|
$ 79.4
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| Adjustments: |
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|
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| Income tax credits related to prior years |
(29.3)
|
|
(1.5)
|
|
| Regulatory disallowance |
--
|
|
8.0
|
|
| |
|
|
|
|
| On-going Earnings |
$ 89.7
|
|
$ 85.9
|
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Contacts
Media:
Alan Bunnell, (602) 250-3376
Analyst:
Rebecca Hickman, (602) 250-5668
Lisa Malagon, (602) 250-5671