EXHIBIT 99.1
EBITDA represents net income before interest, taxes, depreciation and amortization. EBITDA is presented here because Sierra Pacific Resources (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:
w | EBITDA does not reflect cash expenditures, or future requirements for capital expenditures, or contractual commitments; | ||
w | EBITDA does not reflect changes in, or cash requirements for, working capital needs; | ||
w | EBITDA does not reflect the significant interest expense, or the cash requirements necessary to service interest or principal payments, on debts; | ||
w | 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 | ||
w | 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.
(Dollars in thousands) | ||||||||||||||||||||
Sierra Pacific Resources | ||||||||||||||||||||
EBITDA | ||||||||||||||||||||
Three Months ended March 31, | Year ended December 31, | LTM March 31, | ||||||||||||||||||
2007 | 2006 | 2006 | 2005 | 2004 | 2007 | |||||||||||||||
Net Income Applicable to Common Stock | $ | 15,607 | $ | 1,242 | $ | 277,451 | $ | 82,237 | $ | 28,571 | $ | 291,816 | ||||||||
Interest Charges | 69,669 | 72,599 | 311,088 | 284,927 | 307,546 | 308,158 | ||||||||||||||
Income taxes | 10,628 | 1,281 | 145,605 | 43,118 | 18,050 | 154,952 | ||||||||||||||
Depreciation and Amortization | 56,233 | 57,461 | 228,875 | 214,662 | 205,922 | 227,647 | ||||||||||||||
EBITDA | $ | 152,137 | $ | 132,583 | $ | 963,019 | $ | 624,944 | $ | 560,089 | $ | 982,573 | ||||||||
EBITDA/Interest Expense | 3.10x | 2.19x | 1.82x | 3.19x | ||||||||||||||||
Debt/EBITDA | 4.16x | 6.20x | 7.30x | 4.23x | ||||||||||||||||
Sierra Pacific Resources | ||||||||||||||||||||
Net interest expense | $ | 69,669 | $ | 72,599 | $ | 311,088 | $ | 284,927 | $ | 307,546 | $ | 308,158 | ||||||||
Long-Term Debt | $ | 4,147,322 | $ | 4,001,542 | $ | 4,001,542 | $ | 3,817,122 | $ | 4,081,281 | $ | 4,147,322 | ||||||||
Current maturities of long term debt | 8,625 | 8,348 | 8,348 | 58,909 | 8,491 | 8,625 | ||||||||||||||
Total Debt | $ | 4,155,947 | $ | 4,009,890 | $ | 4,009,890 | $ | 3,876,031 | $ | 4,089,772 | $ | 4,155,947 | ||||||||
Nevada Power Company | ||||||||||||||||||||
EBITDA | ||||||||||||||||||||
Three Months ended March 31, | Year ended December 31, | LTM March 31, | ||||||||||||||||||
2007 | 2006 | 2006 | 2005 | 2004 | 2007 | |||||||||||||||
Net Income (Loss) | $ | 4,582 | $ | (3,296 | ) | $ | 224,540 | $ | 132,734 | $ | 104,312 | $ | 232,418 | |||||||
Interest Charges | 43,992 | 41,194 | 176,612 | 134,657 | 137,388 | 179,410 | ||||||||||||||
Income taxes | 2,366 | (1,686 | ) | 117,510 | 63,995 | 56,572 | 121,562 | |||||||||||||
Depreciation and Amortization | 35,761 | 34,237 | 141,585 | 124,098 | 118,841 | 143,109 | ||||||||||||||
EBITDA | $ | 86,701 | $ | 70,449 | $ | 660,247 | $ | 455,484 | $ | 417,113 | $ | 676,499 | ||||||||
EBITDA/Interest Expense | 3.74x | 3.38x | 3.04x | 3.77x | ||||||||||||||||
Debt/EBITDA | 3.61x | 4.88x | 5.47x | 3.71x | ||||||||||||||||
Nevada Power Company | ||||||||||||||||||||
Net interest expense | $ | 43,992 | $ | 41,194 | $ | 176,612 | $ | 134,657 | $ | 137,388 | $ | 179,410 | ||||||||
Long-Term Debt | $ | 2,501,650 | $ | 2,380,139 | $ | 2,380,139 | $ | 2,214,063 | $ | 2,275,690 | $ | 2,501,650 | ||||||||
Current maturities of long term debt | 6,225 | 5,948 | 5,948 | 6,509 | 6,091 | 6,225 | ||||||||||||||
Total Debt | $ | 2,507,875 | $ | 2,386,087 | $ | 2,386,087 | $ | 2,220,572 | $ | 2,281,781 | $ | 2,507,875 | ||||||||
Sierra Pacific Power Company | ||||||||||||||||||||
EBITDA | ||||||||||||||||||||
Three Months ended March 31, | Year ended December 31, | LTM March 31, | ||||||||||||||||||
2007 | 2006 | 2006 | 2005 | 2004 | 2007 | |||||||||||||||
Net Income | $ | 21,968 | $ | 13,272 | $ | 57,709 | $ | 52,074 | $ | 18,577 | $ | 66,405 | ||||||||
Interest Charges | 14,783 | 18,156 | 71,506 | 69,067 | 62,831 | 68,133 | ||||||||||||||
Income Taxes | 9,571 | 7,672 | 27,829 | 28,379 | 325 | 29,728 | ||||||||||||||
Depreciation and Amortization | 20,472 | 23,224 | 87,279 | 90,569 | 86,806 | 84,527 | ||||||||||||||
EBITDA | $ | 66,794 | $ | 62,324 | $ | 244,323 | $ | 240,089 | $ | 168,539 | $ | 248,793 | ||||||||
EBITDA/Interest Expense | 3.42x | 3.48x | 2.68x | 3.65x | ||||||||||||||||
Debt/EBITDA | 4.39x | 4.14x | 5.91x | 4.41x | ||||||||||||||||
Sierra Pacific Power Company | ||||||||||||||||||||
Net interest expense | $ | 14,783 | $ | 18,156 | $ | 71,506 | $ | 69,067 | $ | 62,831 | $ | 68,133 | ||||||||
Long-Term Debt | $ | 1,095,180 | $ | 1,070,858 | $ | 1,070,858 | $ | 941,804 | 994,309 | $ | 1,095,180 | |||||||||
Current maturities of long term debt plus short-term borrowings | 2,400 | 2,400 | 2,400 | 52,400 | 2,400 | 2,400 | ||||||||||||||
Total Debt | $ | 1,097,580 | $ | 1,073,258 | $ | 1,073,258 | $ | 994,204 | $ | 996,709 | $ | 1,097,580 | ||||||||