Exhibit 99.1
The information set forth below is a reconciliation of certain non-GAAP financial information that will be included in a presentation to investors, bankers and analysts in meetings to be held in December 2005. The information furnished pursuant to this exhibit shall not be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section. The following tables define Funds from Operations for the periods shown below.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(in thousands)
(in thousands)
Sierra Pacific Resources
Year ended December 31, | 12 mos. ended | |||||||||||||||
2002 | 2003 | 2004 | Sept. 30, 2005 | |||||||||||||
Net Income (Loss) | (303,621 | ) | (136,629 | ) | 32,471 | 91,741 | ||||||||||
Non-cash items included in net income (loss): | ||||||||||||||||
Depreciation and amortization | 174,200 | 191,259 | 205,647 | 212,095 | ||||||||||||
Deferred taxes and deferred investment tax credit | (169,714 | ) | (50,724 | ) | 33,690 | 57,939 | ||||||||||
AFUDC and capitalized interest | (5,234 | ) | (11,741 | ) | (14,536 | ) | (37,820 | ) | ||||||||
Deferred energy costs disallowed | 493,053 | 90,964 | 1,586 | — | ||||||||||||
Goodwill impairment | — | — | 11,695 | — | ||||||||||||
Early retirement and severance amortization | 2,706 | 2,786 | — | — | ||||||||||||
Unrealized loss on derivative instrument | — | 46,065 | — | — | ||||||||||||
Impairment of assets of subsidiary | — | 32,911 | — | — | ||||||||||||
Loss on disposal of discontinued operations | — | 9,555 | 2,346 | — | ||||||||||||
Plant costs disallowed | — | — | 47,092 | — | ||||||||||||
Other non-cash | 10,341 | (7,131 | ) | (27,353 | ) | (23,262 | ) | |||||||||
Funds from Operations (Before Deferred Energy Costs) | 201,731 | 167,315 | 292,638 | 300,693 | ||||||||||||
Amortization of deferred energy costs — electric | 176,718 | 250,134 | 265,418 | 196,172 | ||||||||||||
Amortization of deferred energy costs — gas | 13,231 | 13,095 | 3,242 | (370 | ) | |||||||||||
Deferral of energy costs — electric | (434,279 | ) | (179,826 | ) | (147,589 | ) | (191,499 | ) | ||||||||
Deferral of energy costs — gas | 10,270 | 2,592 | (7,480 | ) | (5,477 | ) | ||||||||||
Total Impact of Deferred Energy Costs | (234,060 | ) | 85,995 | 113,591 | (1,174 | ) | ||||||||||
Adjusted Funds from Operations | (32,329 | ) | 253,310 | 406,229 | 299,519 | |||||||||||
Debt | 3,930,491 | 3,823,644 | 4,089,772 | 3,773,626 | (1) | |||||||||||
Preferred | 50,000 | |||||||||||||||
Net Interest Expense | 279,057 | 366,282 | 306,427 | 276,266 | ||||||||||||
AFUDC | (5,270 | ) | (5,976 | ) | (8,587 | ) | ||||||||||
Adjusted Interest Expense | 284,327 | 372,258 | 315,014 | 297,173 | ||||||||||||
Debt/Funds from Operations | 19.48x | 22.85x | 13.98x | 12.55x | ||||||||||||
Debt/ adjusted Funds from Operations | (121.58x | ) | 15.09x | 10.07x | 12.60x | |||||||||||
Funds from Operations Interest Coverage | 1.71x | 1.45x | 1.93x | 2.01x | ||||||||||||
Adjusted Funds from Operations Interest Coverage | 0.89x | 1.68x | 2.29x | 2.01x | ||||||||||||
Common shareholders’ equity | 1,807,408 | |||||||||||||||
Total Capitalization | 5,631,034 | |||||||||||||||
Debt/Capitalization | 67.01 | % |
(1) | The temporary bridge financing of $240 mm in short term debt related to the PIES remarketing is not included. |
Nevada Power Company
Year ended December 31, | 12 mos. ended | |||||||||||||||
2002 | 2003 | 2004 | Sept. 30, 2005 | |||||||||||||
Net Income | (235,070 | ) | 19,277 | 104,312 | 132,338 | |||||||||||
Non-cash items included in net income: | ||||||||||||||||
Depreciation and amortization | 98,198 | 109,655 | 118,841 | 122,632 | ||||||||||||
Deferred taxes and deferred investment tax credit | (131,076 | ) | 2,710 | 57,066 | 61,202 | |||||||||||
AFUDC | (3,259 | ) | (5,545 | ) | (9,969 | ) | (34,906 | ) | ||||||||
Deferred energy costs disallowed | 434,125 | 45,964 | 1,586 | — | ||||||||||||
Other non-cash | (6,332 | ) | (8,962 | ) | (44,149 | ) | (42,620 | ) | ||||||||
Funds from Operations (Before Deferred Energy Costs) | 156,586 | 163,099 | 227,687 | 238,646 | ||||||||||||
Amortization of deferred energy costs | 146,554 | 204,610 | 228,765 | 158,794 | ||||||||||||
Deferral of energy costs | (338,152 | ) | (131,590 | ) | (112,992 | ) | (147,877 | ) | ||||||||
Total Impact of Deferred Energy Costs | (191,598 | ) | 73,020 | 115,773 | 10,917 | |||||||||||
Adjusted Funds from Operations | (35,012 | ) | 236,119 | 343,460 | 249,563 | |||||||||||
Debt | 2,119,774 | |||||||||||||||
Net Interest Expense | 137,388 | 131,981 | ||||||||||||||
AFUDC | (5,738 | ) | ||||||||||||||
Adjusted Interest Expense | 143,126 | 151,408 | ||||||||||||||
Debt/Funds from Operations | 8.88x | |||||||||||||||
Debt/ adjusted Funds from Operations | 8.49x | |||||||||||||||
Funds from Operations Interest Coverage | 2.58x | |||||||||||||||
Adjusted Funds from Operations Interest Coverage | 2.65x | |||||||||||||||
Common shareholders’ equity | 1,751,301 | |||||||||||||||
Total Cap | 3,871,075 | |||||||||||||||
Debt/Capitalization | 54.76 | % |
Sierra Pacific Power Company
Year ended December 31, | 12 mos. ended | |||||||||||||||
2002 | 2003 | 2004 | Sept. 30, 2005 | |||||||||||||
Net Income (Loss) | 18,577 | 60,199 | ||||||||||||||
Non-cash items included in net income (loss): | ||||||||||||||||
Depreciation and amortization | 86,806 | 89,474 | ||||||||||||||
Deferred taxes and deferred investment tax credit | 11,640 | 19,982 | ||||||||||||||
AFUDC | (4,567 | ) | (2,914 | ) | ||||||||||||
Plant costs disallowed | 47,092 | — | ||||||||||||||
Other non-cash | 474 | (1,534 | ) | |||||||||||||
Funds from Operations (Before Deferred Energy Costs) | 160,022 | 165,207 | ||||||||||||||
Amortization of deferred energy costs — electric | 36,653 | 37,376 | ||||||||||||||
Amortization of deferred energy costs — gas | 3,241 | (371 | ) | |||||||||||||
Deferral of energy costs — electric | (34,598 | ) | (43,623 | ) | ||||||||||||
Deferral of energy costs — gas | (7,480 | ) | (5,477 | ) | ||||||||||||
Total Impact of Deferred Energy Costs | (2,184 | ) | (12,095 | ) | ||||||||||||
Adjusted Funds from Operations | 157,838 | 153,112 | ||||||||||||||
Debt | 994,711 | |||||||||||||||
Interest | 62,831 | 59,958 | ||||||||||||||
AFUDC | (2,849 | ) | ||||||||||||||
Adjusted Interest Expense | 65,680 | 61,438 | ||||||||||||||
Preferred | 50,000 | |||||||||||||||
Debt/Funds from Operations | 6.02x | |||||||||||||||
Debt/ adjusted Funds from Operations | 6.50x | |||||||||||||||
Funds from Operations Interest Coverage | 3.69x | |||||||||||||||
Adjusted Funds from Operations Interest Coverage | 3.49x | |||||||||||||||
Common shareholders’ equity | 720,826 | |||||||||||||||
Total Cap | 1,765,537 | |||||||||||||||
Debt/Capitalization | 56.34 | % |