EXHIBIT 99.1
EBITDA represents net income before interest, taxes, depreciation and amortization. EBITDA is presented here because NV Energy, Inc. (the “Company”) considers it a supplemental measure of its performance and believes debt-holders frequently use EBITDA to analyze operating performance and debt service capacity. EBITDA has limitations as an analytical tool, and you should not consider it in isolation, or as a substitute for analysis of our operating results as reported under GAAP. Some of these limitations are:
• | EBITDA does not reflect cash expenditures, or future requirements for capital expenditures, or contractual commitments; | ||
• | EBITDA does not reflect changes in, or cash requirements for, working capital needs; | ||
• | EBITDA does not reflect the significant interest expense, or the cash requirements necessary to service interest or principal payments, on debts; | ||
• | Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and EBITDA does not reflect any cash requirements for such replacements; and | ||
• | Other companies in this industry may calculate EBITDA differently than we do, which will limit its usefulness as a comparative measure. |
Because of these limitations, the Company’s management relies primarily on our GAAP results as a measure of the Company’s performance and uses EBITDA on a supplemental basis.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES | ||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
NV Energy, Inc. | ||||||||||||||||||||||||
EBITDA | ||||||||||||||||||||||||
Three Months ended March 31, | Year ended December 31, | LTM March 31, | ||||||||||||||||||||||
2009 | 2008 | 2008 | 2007 | 2006 | 2009 | |||||||||||||||||||
Net Income (Loss) | $ | (22,244 | ) | $ | 24,058 | $ | 208,887 | $ | 197,295 | $ | 277,451 | $ | 162,585 | |||||||||||
Interest charges (including AFUDC(1)) | 82,633 | 68,504 | 300,857 | 279,788 | 311,088 | 314,986 | ||||||||||||||||||
Income taxes (benefit) | (11,414 | ) | 16,708 | 95,354 | 87,555 | 145,605 | 67,232 | |||||||||||||||||
Depreciation and amortization | 78,048 | 62,070 | 260,608 | 235,532 | 228,875 | 276,586 | ||||||||||||||||||
EBITDA | $ | 127,023 | $ | 171,340 | $ | 865,706 | $ | 800,170 | $ | 963,019 | $ | 821,389 | ||||||||||||
EBITDA/Interest Charges | 1.54 | x | 2.50 | x | 2.88 | x | 2.86 | x | 3.10 | x | 2.61 | x | ||||||||||||
Debt/EBITDA | 43.26 | x | 24.79 | x | 6.09 | x | 5.31 | x | 4.16 | x | 6.69 | x | ||||||||||||
NV Energy, Inc. | ||||||||||||||||||||||||
Interest charges (including AFUDC(1)) | $ | 82,633 | $ | 68,504 | $ | 300,857 | $ | 279,788 | $ | 311,088 | $ | 314,986 | ||||||||||||
Long-Term debt | $ | 5,485,643 | $ | 4,137,617 | $ | 5,266,982 | $ | 4,137,864 | $ | 4,001,542 | $ | 5,485,643 | ||||||||||||
Current maturities of long term debt | 8,885 | 110,168 | 9,291 | 110,285 | 8,348 | 8,885 | ||||||||||||||||||
Total Debt | $ | 5,494,528 | $ | 4,247,785 | $ | 5,276,273 | $ | 4,248,149 | $ | 4,009,890 | $ | 5,494,528 |
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Nevada Power Company | ||||||||||||||||||||||||
EBITDA | ||||||||||||||||||||||||
Three Months ended March 31, | Year ended December 31, | LTM March 31, | ||||||||||||||||||||||
2009 | 2008 | 2008 | 2007 | 2006 | 2009 | |||||||||||||||||||
Net Income (Loss) | $ | (35,151 | ) | $ | 7,971 | $ | 151,431 | $ | 165,694 | $ | 224,540 | $ | 108,309 | |||||||||||
Interest charges (including AFUDC(1)) | 55,043 | 41,473 | 186,822 | 174,667 | 176,612 | 200,392 | ||||||||||||||||||
Income taxes (benefit) | (16,365 | ) | 6,523 | 71,382 | 78,352 | 117,510 | 48,494 | |||||||||||||||||
Depreciation and amortization | 52,363 | 40,630 | 171,080 | 152,139 | 141,585 | 182,813 | ||||||||||||||||||
EBITDA | $ | 55,890 | $ | 96,597 | $ | 580,715 | $ | 570,852 | $ | 660,247 | $ | 540,008 | ||||||||||||
EBITDA/Interest Charges | 1.02 | x | 2.33 | x | 3.11 | x | 3.27 | x | 3.74 | x | 2.69 | x | ||||||||||||
Debt/EBITDA | 64.51 | x | 26.64 | x | 5.84 | x | 4.44 | x | 3.61 | x | 6.68 | x | ||||||||||||
Nevada Power Company | ||||||||||||||||||||||||
Interest charges (including AFUDC(1)) | $ | 55,043 | $ | 41,473 | $ | 186,822 | $ | 174,667 | $ | 176,612 | $ | 200,392 | ||||||||||||
Long-Term debt | $ | 3,596,840 | $ | 2,564,629 | $ | 3,385,106 | $ | 2,528,141 | $ | 2,380,139 | $ | 3,596,840 | ||||||||||||
Current maturities of long term debt | 8,885 | 8,616 | 8,691 | 8,642 | 5,948 | 8,885 | ||||||||||||||||||
Total Debt | $ | 3,605,725 | $ | 2,573,245 | $ | 3,393,797 | $ | 2,536,783 | $ | 2,386,087 | $ | 3,605,725 |
Sierra Pacific Power Company | ||||||||||||||||||||||||
EBITDA | ||||||||||||||||||||||||
Three Months ended March 31, | Year ended December 31, | LTM March 31, | ||||||||||||||||||||||
2009 | 2008 | 2008 | 2007 | 2006 | 2009 | |||||||||||||||||||
Net Income | $ | 19,136 | $ | 24,284 | $ | 90,582 | $ | 65,667 | $ | 57,709 | $ | 85,434 | ||||||||||||
Interest charges (including AFUDC(1)) | 17,927 | 16,587 | 72,712 | 60,735 | 71,506 | 74,052 | ||||||||||||||||||
Income taxes | 9,286 | 13,233 | 37,603 | 26,009 | 27,829 | 33,656 | ||||||||||||||||||
Depreciation and amortization | 25,685 | 21,440 | 89,528 | 83,393 | 87,279 | 93,773 | ||||||||||||||||||
EBITDA | $ | 72,034 | $ | 75,544 | $ | 290,425 | $ | 235,804 | $ | 244,323 | $ | 286,915 | ||||||||||||
EBITDA/Interest Charges | 4.02 | x | 4.55 | x | 3.99 | x | 3.88 | x | 3.42 | x | 3.87 | x | ||||||||||||
Debt/EBITDA | 19.48 | x | 15.69 | x | 4.81 | x | 5.03 | x | 4.39 | x | 4.89 | x | ||||||||||||
Sierra Pacific Power Company | ||||||||||||||||||||||||
Interest charges (including AFUDC(1)) | $ | 17,927 | $ | 16,587 | $ | 72,712 | $ | 60,735 | $ | 71,506 | $ | 74,052 | ||||||||||||
Long-Term debt | $ | 1,402,964 | $ | 1,083,870 | $ | 1,395,987 | $ | 1,084,550 | $ | 1,070,858 | $ | 1,402,964 | ||||||||||||
Current maturities of long term debt | - | 101,552 | 600 | 101,643 | 2,400 | - | ||||||||||||||||||
Total Debt | $ | 1,402,964 | $ | 1,185,422 | $ | 1,396,587 | $ | 1,186,193 | $ | 1,073,258 | $ | 1,402,964 | ||||||||||||
(1) Allowance for Funds Used During Construction or Allowance for Borrowed Funds Used During Construction. |
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