Exhibit 99.9
| FOR IMMEDIATE RELEASE | July 30, 2008 | |||
| Media Contact: | Alan Bunnell, (602) 250-3376 | Page 1 of 2 | ||
| Analyst Contacts: | Rebecca Hickman, (602) 250-5668 | |||
| Lisa Malagon, (602) 250-5671 | ||||
| Web site: | www.pinnaclewest.com | |||
PINNACLE WEST ON-GOING YEAR-TO-DATE EARNINGS FLAT
Prior-Year Tax Credits and Real Estate Sale Drive Second-Quarter Results
Prior-Year Tax Credits and Real Estate Sale Drive Second-Quarter Results
PHOENIX – Pinnacle West Capital Corporation (NYSE: PNW) today reported consolidated net income of $133.9 million, or $1.33 per diluted share of common stock, for the quarter ended June 30, 2008. These results compare with net income of $79.0 million, 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 visitwww.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 atwww.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 SECOND QUARTER EARNINGS | July 30, 2008 | |
| Page 2 of 2 |
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.
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PINNACLE WEST CAPITAL CORPORATION
NON-GAAP FINANCIAL MEASURE RECONCILIATION – NET INCOME
(GAAP MEASURE) TO ON-GOING EARNINGS (NON-GAAP FINANCIAL MEASURE)
NON-GAAP FINANCIAL MEASURE RECONCILIATION – NET INCOME
(GAAP MEASURE) TO ON-GOING EARNINGS (NON-GAAP FINANCIAL MEASURE)
| Three Months Ended | Three Months Ended | |||||||||||||||
| June 30, 2008 | June 30, 2007 | |||||||||||||||
| $ in | Diluted | $ in | Diluted | |||||||||||||
| Millions | EPS | Millions | EPS | |||||||||||||
PINNACLE WEST CAPITAL CORPORATION | ||||||||||||||||
| Net Income | $ | 133.9 | $ | 1.33 | $ | 79.0 | $ | 0.78 | ||||||||
| Adjustments: | ||||||||||||||||
| Income tax credits related to prior years | (30.0 | ) | (0.30 | ) | (1.8 | ) | (0.02 | ) | ||||||||
| Regulatory disallowance | — | — | 8.0 | 0.08 | ||||||||||||
| On-going Earnings | $ | 103.9 | $ | 1.03 | $ | 85.2 | $ | 0.84 | ||||||||
| Six Months Ended | Six Months Ended | |||||||||||||||
| June 30, 2008 | June 30, 2007 | |||||||||||||||
| $ in | Diluted | $ in | Diluted | |||||||||||||
| Millions | EPS | Millions | EPS | |||||||||||||
PINNACLE WEST CAPITAL CORPORATION | ||||||||||||||||
| Net Income | $ | 129.4 | $ | 1.28 | $ | 95.5 | $ | 0.95 | ||||||||
| Adjustments: | ||||||||||||||||
| Income tax credits related to prior years | (30.0 | ) | (0.30 | ) | (3.3 | ) | (0.03 | ) | ||||||||
| Regulatory disallowance | — | — | 8.0 | 0.08 | ||||||||||||
| On-going Earnings | $ | 99.4 | $ | 0.98 | $ | 100.2 | $ | 1.00 | ||||||||
ARIZONA PUBLIC SERVICE | ||||||||||||||||
| Net Income | $ | 119.0 | $ | 79.4 | ||||||||||||
| Adjustments: | ||||||||||||||||
| Income tax credits related to prior years | (29.3 | ) | (1.5 | ) | ||||||||||||
| Regulatory disallowance | — | 8.0 | ||||||||||||||
| On-going Earnings | $ | 89.7 | $ | 85.9 | ||||||||||||
PINNACLE WEST CAPITAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
(in thousands, except per share amounts)
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
(in thousands, except per share amounts)
| THREE MONTHS ENDED | SIX MONTHS ENDED | |||||||||||||||
| JUNE 30, | JUNE 30, | |||||||||||||||
| 2008 | 2007 | 2008 | 2007 | |||||||||||||
Operating Revenues | ||||||||||||||||
| Regulated electricity segment | $ | 829,478 | $ | 711,293 | $ | 1,452,279 | $ | 1,247,344 | ||||||||
| Real estate segment | 36,880 | 47,819 | 84,622 | 124,951 | ||||||||||||
| Marketing and trading | 50,673 | 92,637 | 108,131 | 165,108 | ||||||||||||
| Other revenues | 9,162 | 11,153 | 17,899 | 20,516 | ||||||||||||
| Total | 926,193 | 862,902 | 1,662,931 | 1,557,919 | ||||||||||||
Operating Expenses | ||||||||||||||||
| Regulated electricity segment fuel and purchased power | 327,561 | 270,337 | 596,939 | 473,690 | ||||||||||||
| Real estate segment operations | 41,746 | 45,917 | 89,965 | 107,253 | ||||||||||||
| Marketing and trading fuel and purchased power | 45,245 | 74,533 | 96,767 | 132,477 | ||||||||||||
| Operations and maintenance | 194,909 | 177,310 | 389,033 | 348,888 | ||||||||||||
| Depreciation and amortization | 97,784 | 92,476 | 193,391 | 181,854 | ||||||||||||
| Taxes other than income taxes | 33,251 | 34,757 | 66,403 | 69,476 | ||||||||||||
| Other expenses | 6,822 | 8,803 | 12,760 | 17,291 | ||||||||||||
| Total | 747,318 | 704,133 | 1,445,258 | 1,330,929 | ||||||||||||
Operating Income | 178,875 | 158,769 | 217,673 | 226,990 | ||||||||||||
Other | ||||||||||||||||
| Allowance for equity funds used during construction | 5,414 | 5,195 | 11,538 | 9,639 | ||||||||||||
| Other income | 3,928 | 5,869 | 7,776 | 8,642 | ||||||||||||
| Other expense | (10,063 | ) | (3,269 | ) | (14,971 | ) | (7,883 | ) | ||||||||
| Total | (721 | ) | 7,795 | 4,343 | 10,398 | |||||||||||
Interest Expense | ||||||||||||||||
| Interest charges | 51,583 | 51,827 | 106,349 | 101,953 | ||||||||||||
| Capitalized interest | (4,938 | ) | (5,213 | ) | (10,617 | ) | (10,020 | ) | ||||||||
| Total | 46,645 | 46,614 | 95,732 | 91,933 | ||||||||||||
Income From Continuing Operations Before Income Taxes | 131,509 | 119,950 | 126,284 | 145,455 | ||||||||||||
Income Taxes | 17,076 | 40,713 | 16,519 | 49,754 | ||||||||||||
Income From Continuing Operations | 114,433 | 79,237 | 109,765 | 95,701 | ||||||||||||
Income (Loss) From Discontinued Operations | ||||||||||||||||
Net of Income Taxes | 19,429 | (243 | ) | 19,624 | (177 | ) | ||||||||||
Net Income | $ | 133,862 | $ | 78,994 | $ | 129,389 | $ | 95,524 | ||||||||
Weighted-Average Common Shares Outstanding — Basic | 100,653 | 100,229 | 100,587 | 100,138 | ||||||||||||
Weighted-Average Common Shares Outstanding — Diluted | 100,917 | 100,779 | 100,856 | 100,718 | ||||||||||||
Earnings Per Weighted-Average Common Share Outstanding | ||||||||||||||||
| Income from continuing operations — basic | $ | 1.14 | $ | 0.79 | $ | 1.09 | $ | 0.96 | ||||||||
| Net income — basic | $ | 1.33 | $ | 0.79 | $ | 1.29 | $ | 0.95 | ||||||||
| Income from continuing operations — diluted | $ | 1.13 | $ | 0.79 | $ | 1.09 | $ | 0.95 | ||||||||
| Net income — diluted | $ | 1.33 | $ | 0.78 | $ | 1.28 | $ | 0.95 | ||||||||