Company Returns to Profitability for Full Year, Fourth Quarter
LAS VEGAS, March 7 /PRNewswire-FirstCall/ -- Sierra Pacific Resources
(NYSE: SRP) today announced consolidated earnings applicable to common stock
of $28.6 million, or $0.16 per share, for the 12 months ended December 31,
2004, compared with a consolidated loss applicable to common stock of $140.5
million, or $1.21 per share, for 2003.
Fourth-quarter consolidated earnings applicable to common stock totaled
$27.3 million, or $0.15 per share, compared with a consolidated loss of $19.8
million, or $0.17 per share, in the same 2003 quarter.
Walter Higgins, chairman and chief executive officer of Sierra Pacific
Resources, said, "These results are indicative of both financial and operating
improvements our company realized during 2004 and we believe signal that we
have turned the corner in moving toward full recovery from the difficulties we
encountered during and following the 2000-2001 Western energy crisis. While
we still have many challenges ahead, we are pleased with our progress."
Positive factors affecting the earnings results were continued strong
customer growth at both of the company's utilities, Nevada Power Company and
Sierra Pacific Power Company; the effects of the general rate case decisions
by the Public Utilities Commission of Nevada, and a favorable court decision
in the Enron lawsuit that resulted in a reversal of interest charges of $40
million in the fourth quarter.
Partially offsetting the increase in earnings for 2004 were a non-cash
goodwill impairment charge of approximately $11.7 million resulting from
regulatory disallowances; charges of $23.7 million involving tender fees and
other costs associated with the early extinguishment of debt; and a charge of
$47.1 million resulting from the PUCN's decision to disallow recovery of a
portion of Sierra Pacific Power's costs associated with the Pinon Pine coal
gasifier.
Nevada Power Company 2004 Results
Nevada Power Company reported net income of $104.3 million for 2004,
compared to $19.3 million in 2003. During the 2004 fourth quarter, Nevada
Power reported net income of $19.9 million, compared with a loss of $5.8
million for the same period of 2003.
Nevada Power's retail electric revenues were higher during 2004 primarily
due to increases in the number of residential, commercial and industrial
customers (5.2%, 5.5% and 4.5%, respectively) and increases in energy related
rates that became effective April 1, 2004.
Sierra Pacific Power Company 2004 Results
Sierra Pacific Power reported net earnings applicable to common stock of
$14.7 million for 2004, compared with a loss of $27.2 million in 2003. For
the fourth quarter, Sierra Pacific Power reported earnings applicable to
common stock of $20.3 million for 2004, compared with $24,000 in the same 2003
quarter.
Sierra Pacific Power's retail electric revenues increased during 2004 as a
result of customer rate increases in Nevada and California and overall growth
of 2.9% in retail electric customers.
Sierra Pacific Power's retail natural gas revenues rose in 2004, primarily
due to colder temperature in both the fall and winter compared with the 2003
seasons. These increases in revenues were partially offset by warmer spring
temperatures. Also contributing to the improvement were year-to-year increases
in the number of residential and commercial customers of 4.3% and 2.8%,
respectively.
The company said it plans to file its Form 10-K for the year ended
December 31, 2004, with the Securities and Exchange Commission on March 15,
2005, at which time it will be available without charge through the EDGAR
system at the SEC's website. The Form 10-K report will also be posted on
Sierra Pacific Resources' website, http://www.sierrapacificresources.com.
Webcast Scheduled for 6:30 a.m. PST Today
Senior management of Sierra Pacific Resources (NYSE: SRP) will review the
company's year-end 2004 financial results, regulatory issues and other matters
during a conference call and live webcast today, March 7, at 6:30 a.m. Pacific
Standard Time.
The webcast will be accessible on the Sierra Pacific Resources web site:
http://www.sierrapacificresources.com .
An archived version of the webcast will remain on the Sierra Pacific
Resources' web site for approximately one month following the live webcast.
To listen to a recording of the call by telephone, call 1-800-475-6701 and use
the conference call ID number, 771667, to access the recording.
Headquartered in Nevada, Sierra Pacific Resources is a holding company
whose principal subsidiaries are Nevada Power Company, the electric utility
for most of southern Nevada, and Sierra Pacific Power Company, the electric
utility for most of northern Nevada and the Lake Tahoe area of California.
Sierra Pacific Power Company also distributes natural gas in the Reno-Sparks
area of northern Nevada. Other subsidiaries include the Tuscarora Gas Pipeline
Company, which owns 50 percent interest in an interstate natural gas
transmission partnership.
This press release contains forward-looking statements regarding the
future performance of Sierra Pacific Resources and its subsidiaries, Nevada
Power Company and Sierra Pacific Power Company, within the meaning of the
Private Securities Litigation Reform Act of 1995. These statements are
subject to a variety of risks and uncertainties that could cause actual
results to differ materially from current expectations. For Sierra Pacific
Resources, these risks and uncertainties include, but are not limited to,
Resources' ability to maintain access to the capital markets, Resources'
ability to receive dividends from its subsidiaries and the financial
performance of the Company's subsidiaries, particularly Nevada Power Company
and Sierra Pacific Power Company. For Nevada Power Company and Sierra Pacific
Power Company, these risks and uncertainties include, but are not limited to,
adverse decisions in the Enron litigation or other pending or future
litigation, unfavorable rulings in their pending and future rate cases, their
ability to maintain access to the capital markets for general corporate
purposes, their ability to purchase sufficient power to meet their power
demands and weather conditions during the summer months of 2005 and beyond.
Additional cautionary statements regarding other risk factors that could have
an effect on the future performance of Sierra Pacific Resources, Nevada Power
Company and Sierra Pacific Power Company are contained in their Quarterly
Reports on Form 10-Q for the quarter ended September 30, 2004, filed with the
SEC. The Companies undertake no obligation to release publicly the result of
any revisions to these forward-looking statements that may be made to reflect
events or circumstances after the date hereof or to reflect the occurrence of
unanticipated events.
Sierra Pacific Resources, Nevada Power Company, Sierra Pacific Power Company
2004 FINANCIAL HIGHLIGHTS
(in thousands, except for per share amounts)
Year of 2004 SRP SRP NPC
2004 2003 2004
Revenues $2,823,839 $2,787,543 $1,784,092
Operating
Expenses $2,485,054 $2,516,079 $1,567,602
Earnings (Deficit) Applicable to
Common Stock $28,571 ($140,529)
Net Income
(Loss) $104,312
Earnings (Deficit) Per Share
Applicable to Common Stock $0.16 ($1.21)
Year of 2004 NPC SPP SPP
2003 2004 2003
Revenues $1,756,146 $1,035,660 $1,029,866
Operating
Expenses $1,572,413 $924,415 $961,300
Earnings (Deficit) Applicable to
Common Stock $14,677 ($27,175)
Net Income
(Loss) $19,277
Earnings (Deficit) Per Share
Applicable to Common Stock
Sierra Pacific Resources, Nevada Power Company, Sierra Pacific Power Company
4th Quarter, 2004 FINANCIAL HIGHLIGHTS
(in thousands, except for per share amounts)
Fourth Quarter 2004 SRP SRP NPC
2004 2003 2004
Revenues $654,387 $614,433 $374,025
Earnings (Deficit) Applicable to
Common Stock $27,258 ($19,831)
Net Income (Loss) $19,930
Earnings (Deficit) Per Share
Applicable to Common Stock $0.15 ($0.17)
Fourth Quarter 2004 NPC SPP SPP
2003 2004 2003
Revenues $359,321 $280,037 $254,489
Earnings (Deficit) Applicable to
Common Stock $20,330 $24
Net Income (Loss) ($5,809)
Earnings (Deficit) Per Share
Applicable to Common Stock
SOURCE Sierra Pacific Resources
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Related links:
http://www.sierrapacificresources.com
CONTACT:
Media: Karl Walquist, +1-775-834-3891, or
Analyst: Britta Carlson, +1-702-367-5634, both of Sierra Pacific
Resources
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