LAS VEGAS, Aug. 9 /PRNewswire-FirstCall/ -- Sierra Pacific Resources
(NYSE: SRP) today reported a consolidated net loss applicable to common stock
of $44.9 million, or $0.38 per share, for the second quarter of 2004, compared
with a revised loss of $217.3 million in the comparable quarter of 2003. The
company's loss from continuing operations was $40.9 million, or $0.35 per
share, in the 2004 second quarter, compared with a loss of $188.3 million, or
$1.61 per share, in the same 2003 quarter.
The net loss during the most recent quarter principally was the result of
a pre-tax write-off of $47 million related to Pinon Pine, an experimental
coal-gasification project for which certain costs were disallowed during a
recent rate case, and $10 million in interest costs incurred during the
quarter to extinguish debt.
Walter Higgins, chairman and chief executive officer of Sierra Pacific
Resources, said, "While any loss is disappointing, we are pleased to report
that results from our combined utility operations showed continuing
improvement. At the same time, we strengthened our company's financial
condition significantly through the refinancing of debt. Since the beginning
of this year, we have refinanced nearly $800 million, reducing our annual
interest costs by approximately $3 million and improving our liquidity."
For the first six months of 2004, Sierra Pacific Resources reported a net
loss applicable to common stock of $89.3 million, or $0.76 per share, compared
with a loss of $228.5 million, or $2.00 per share for the comparable 2003
period. The loss from continuing operations for the 2004 six months was
$83.7 million, or $0.71 per share, compared with $196.6 million, or $1.72 per
share in the 2003 period.
The 2003 second quarter results reflect an unrealized loss of $124
million on the derivative instrument related to a convertible issuance, a
write-off of disallowed deferred energy costs totaling $91 million, and losses
of $33 million due to asset impairments of the company's telecommunications
investment.
Nevada Power Company
Nevada Power Company reported a net income of $13.6 million for the second
quarter compared to a loss of $22.2 million for the same period in 2003.
Revenue margin increased by $64 million over the second quarter of last
year due largely to a 2003 write-off of $46 million of deferred energy costs.
Of the 2004 remainder, revenue margin increased $12 million due to a
weather-related increase in use per customer, higher general rates and
customer growth. Nevada Power's operating and maintenance expenses remained
flat with the same period last year.
Depreciation and amortization increased $3 million in the second quarter
of 2004 as a result of increases to plant in service including the Centennial
Project. Interest on long-term debt increased $5 million due primarily to the
August 2003 issuance of $350 million of General and Refunding bonds.
Sierra Pacific Power Company
At Sierra Pacific Power, the second quarter loss after preferred dividends
was $33.2 million compared with a loss of $28.9 million for the same period
last year. An impairment loss of $47 million was recorded in the 2004 second
quarter for plant costs for the Pinon Pine generating facility that was
disallowed in the company's recent general rate case. The company has filed
for judicial review in the Pinon Pine case.
Electric revenue margin increased by $47.2 million over the 2003 quarter,
due largely to a 2003 write off of $45 million in deferred energy costs.
Contributing to a higher electric margin in the recent quarter were customer
growth and a general rate increase in both Nevada and California. Mild
weather led to a decline in use per customer during the 2004 quarter.
Gas revenue margin decreased by $1 million, or 14 percent over last year's
quarter as a decline in weather-related use per customer was partially offset
by customer growth.
Year to date, gas revenue margin increased by about $1 million due to
customer growth that was partially offset by a weather-related decrease in use
per customer.
A detailed explanation of Sierra Pacific Resources' second quarter 2004
financial results is available in the company's Form 10-Q for the quarter
ended June 30, 2004, which has been filed with the Securities and Exchange
Commission and is available without charge through the EDGAR system at the
SEC's website. The Form 10-Q report will also be posted on the Sierra Pacific
Resources website at sierrapacificresources.com.
About Sierra Pacific Resources
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 and several unregulated energy services companies.
Forward Looking Statements:
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 receive dividends from its subsidiaries in the near
future 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
future rate cases, their ability to purchase sufficient power to meet their
power demands, their ability to access the capital markets for general
corporate purposes and NPC's ability to access the capital markets to finance
its previously-announced acquisition of Duke's Moapa Power Plant upon approval
of such acquisition, whether terminated power suppliers will be successful in
pursuing claims against Nevada Power for liquidated damages under their
terminated power contracts and weather conditions during the summer months of
2004 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 June 30, 2004
and their Annual Reports on Form 10-K for the year ended December 31, 2003,
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.
Financial Highlights:
Sierra Pacific Resources
Financial Highlights
(In thousands, except for per share amount)
SRP NPC SPP
Second Quarter 2004
2004 2003 2004 2003 2004 2003
Revenues $677,420 $666,251 $449,925 $425,512 $224,304 $240,899
Operating
Expenses 602,686 660,058 400,455 415,028 206,412 248,949
Net Income
(Loss)
Available
for Common (44,884) (217,250) 13,590 (22,192) (33,162) (28,930)
Net Income
(Loss)
Per Share
Applicable to
Common
Stock $(0.38) $(1.85) -- -- -- --
Net Income
(Loss)
Contribution
Per Share -- -- $0.12 $(0.19) $(0.28) $(0.25)
SRP Weighted
Average
Shares
Outstanding 117,280 117,144 117,280 117,144 117,280 117,144
Year to Date June 30, 2004
2004 2003 2004 2003 2004 2003
Revenues $1,265,537 $1,268,763 $776,458 $757,164 $485,621 $510,970
Operating
Expenses 1,144,717 1,215,747 705,988 729,267 440,087 495,200
Net Loss
Available
For Common (89,334) (228,470) (1,816) (37,438) (26,466) (25,907)
Net Loss
Per Share
Applicable to
Common Stock $(0.76) $(2.00) -- -- -- --
Net Loss
Contribution
Per Share -- -- $(0.02) $(0.33) $(0.23) $(0.23)
SRP Weighted
Average
Shares
Outstanding 117,260 114,338 117,260 114,338 117,260 114,338
SOURCE Sierra Pacific Resources
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Related links:
http://www.sierrapacificresources.com
CONTACT:
Media, Andrea Smith, +1-702-367-5683, or
Analyst, Vicki Erickson, +1-775-834-5646, both of Sierra Pacific
Resources
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