Exhibit 99.1
The information set forth below are reconciliations of certain non-GAAP financial information that will be included in presentations to investors, bankers and analysts. 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 (FFO) and Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA) for the periods shown below.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(Dollars in Thousands)
(Dollars in Thousands)
Sierra Pacific Resources
Funds From Operations (FFO)
| Year ended December 31, | ||||||||||||||||
| 2005 | 2004 | 2003 | 2002 | |||||||||||||
Net Income (Loss) | $ | 86,137 | $ | 32,471 | $ | (136,629 | ) | $ | (303,621 | ) | ||||||
Non-Cash items included in net income | ||||||||||||||||
| Depreciation and amortization | 214,662 | 205,647 | 191,259 | 174,200 | ||||||||||||
| Deferred taxes and deferred investment tax credit | 41,609 | 33,690 | (50,724 | ) | (169,714 | ) | ||||||||||
| AFUDC and capitalized interest | (45,013 | ) | (14,536 | ) | (11,741 | ) | (5,234 | ) | ||||||||
| Deferred Energy Costs Disallowed | — | 1,586 | 90,964 | 493,053 | ||||||||||||
| Goodwill Impairment | — | 11,695 | — | — | ||||||||||||
| Early retirement and severance amortization | — | — | 2,786 | 2,706 | ||||||||||||
| Unrealized loss on derivative instrument | — | — | 46,065 | — | ||||||||||||
| Impairment of assets of subsidiary | — | — | 32,911 | — | ||||||||||||
| Loss on disposal of discontinued operations | — | 2,346 | 9,555 | — | ||||||||||||
| Plant Costs disallowed | — | 47,092 | — | — | ||||||||||||
| Other non-cash | (4,119 | ) | (27,353 | ) | (7,131 | ) | 10,341 | |||||||||
Funds from Operations (Before Deferred Energy Costs) | 293,276 | 292,638 | 167,315 | 201,731 | ||||||||||||
| Amortization Deferred energy costs — electric | 188,221 | 265,418 | 250,134 | 176,718 | ||||||||||||
| Amortization Deferred energy costs — gas | 1,446 | 3,242 | 13,095 | 13,231 | ||||||||||||
| Deferral of energy costs — electric plus terminated suppliers | (241,103 | )(1) | (147,589 | ) | (179,827 | ) | (434,279 | ) | ||||||||
| Deferral of energy costs — gas | (2,519 | ) | (7,480 | ) | 2,592 | 10,270 | ||||||||||
Adjusted Funds from Operations | $ | 239,321 | $ | 406,229 | $ | 253,309 | $ | (32,329 | ) | |||||||
| Long-term Debt | 3,817,122 | 4,081,281 | 3,579,674 | 3,266,281 | ||||||||||||
| Current maturities of long term debt plus short-term debt | 58,909 | 8,491 | 243,970 | 672,895 | ||||||||||||
Total Debt | $ | 3,876,031 | $ | 4,089,772 | $ | 3,823,644 | $ | 3,899,176 | ||||||||
Preferred Stock | 50,000 | 50,000 | 50,000 | 50,000 | ||||||||||||
| Net interest expense | 284,927 | 306,427 | 366,282 | 279,057 | ||||||||||||
| AFUDC | (24,691 | ) | (8,587 | ) | (5,976 | ) | (5,270 | ) | ||||||||
Adjusted Interest Expense | $ | 309,618 | $ | 315,014 | $ | 372,258 | $ | 284,327 | ||||||||
| Debt/Funds from operations | 13.22x | 13.98x | 22.85x | 19.33x | ||||||||||||
| Debt/adjusted FFO | 16.20x | 10.07x | 15.09x | -120.61x | ||||||||||||
| Funds from Operations Interest Coverage | 1.95x | 1.93x | 1.45x | 1.71x | ||||||||||||
| Adjusted Funds From Operations Interest Coverage | 1.77x | 2.29x | 1.68x | 0.89x | ||||||||||||
| Common shareholders equity | $ | 2,060,154 | $ | 1,498,616 | $ | 1,435,394 | $ | 1,327,166 | ||||||||
| Total Capitalization | $ | 5,986,185 | $ | 5,638,388 | $ | 5,309,038 | $ | 5,276,342 | ||||||||
| Debt/Capitalization | 64.75 | % | 72.53 | % | 72.02 | % | 73.90 | % | ||||||||
(1) For 2005, deferral of energy costs electric plus terminated suppliers does not include the non-cash net change in deferred energy of $218 million associated primarily with the November 2005 settlement with Enron.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(Dollars in Thousands)
(Dollars in Thousands)
Nevada Power Company
Funds From Operations (FFO)
| Year ended December 31, | ||||||||||||||||
| 2005 | 2004 | 2003 | 2002 | |||||||||||||
Net Income (Loss) | $ | 132,734 | $ | 104,312 | $ | 19,277 | $ | (235,070 | ) | |||||||
Non-Cash items included in net income | ||||||||||||||||
| Depreciation and amortization | 124,098 | 118,841 | 109,655 | 98,198 | ||||||||||||
| Deferred taxes and deferred investment tax credit | 86,910 | 57,066 | 2,710 | (131,076 | ) | |||||||||||
| AFUDC and capitalized interest | (41,870 | ) | (9,969 | ) | (5,545 | ) | (3,259 | ) | ||||||||
| Deferred Energy Costs Disallowed | — | 1,586 | 45,964 | 434,125 | ||||||||||||
| Plant Costs disallowed | — | — | — | — | ||||||||||||
| Other non-cash | (7,433 | ) | (44,149 | ) | (8,962 | ) | (6,332 | ) | ||||||||
Funds from Operations (Before Deferred Energy Costs) | 294,439 | 227,687 | 163,099 | 156,586 | ||||||||||||
| Amortization Deferred energy costs | 131,471 | 228,765 | 204,610 | 146,554 | ||||||||||||
| Deferral of energy costs plus terminated suppliers | (186,338 | )(1) | (112,992 | ) | (131,591 | ) | (338,152 | ) | ||||||||
Adjusted Funds from Operations | $ | 239,572 | $ | 343,460 | $ | 236,118 | $ | (35,012 | ) | |||||||
| Long-term Debt | 2,214,063 | 2,275,690 | 1,899,709 | 1,683,310 | ||||||||||||
| Current maturities of long term debt | 6,509 | 6,091 | 135,570 | 354,677 | ||||||||||||
Total Debt | $ | 2,220,572 | $ | 2,281,781 | $ | 2,035,279 | $ | 2,037,987 | ||||||||
| Net interest expense | 134,657 | 137,388 | 190,472 | 132,510 | ||||||||||||
| AFUDC | (23,187 | ) | (5,738 | ) | (2,700 | ) | (3,412 | ) | ||||||||
Adjusted Interest Expense | $ | 157,844 | $ | 143,126 | $ | 193,172 | $ | 135,922 | ||||||||
| Debt/Funds from operations | 7.54x | 10.02x | 12.48x | 13.02x | ||||||||||||
| Debt/adjusted FFO | 9.27x | 6.64x | 8.62x | -58.21x | ||||||||||||
| Funds from Operations Interest Coverage | 2.87x | 2.59x | 1.84x | 2.15x | ||||||||||||
| Adjusted Funds From Operations Interest Coverage | 2.52x | 3.40x | 2.22x | 0.74x | ||||||||||||
| Common shareholders equity | $ | 1,762,089 | $ | 1,436,788 | $ | 1,174,645 | $ | 1,149,131 | ||||||||
| Total Capitalization | $ | 3,982,661 | $ | 3,718,569 | $ | 3,209,924 | $ | 3,187,118 | ||||||||
| Debt/Capitalization | 55.76 | % | 61.36 | % | 63.41 | % | 63.94 | % | ||||||||
(1) For 2005, deferral of energy costs electric plus terminated suppliers does not include the non-cash net change in deferred energy of $155 million associated primarily with the November 2005 settlement with Enron.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(Dollars in Thousands)
(Dollars in Thousands)
Sierra Pacific Power Company
Funds From Operations (FFO)
| Year ended December 31, | ||||||||||||||||
| 2005 | 2004 | 2003 | 2002 | |||||||||||||
Net Income (Loss) | $ | 52,074 | $ | 18,577 | $ | (23,275 | ) | $ | (13,968 | ) | ||||||
Non-Cash items included in net income Depreciation and amortization | 90,569 | 86,806 | 81,514 | 76,373 | ||||||||||||
| Deferred taxes and deferred investment tax credit | 209 | 11,640 | (23,676 | ) | (5,107 | ) | ||||||||||
| AFUDC and capitalized interest | (3,143 | ) | (4,567 | ) | (6,196 | ) | (1,975 | ) | ||||||||
| Deferred Energy Costs Disallowed | — | — | 45,000 | 58,928 | ||||||||||||
| Early retirement and severance amortization | — | — | 2,786 | 2,706 | ||||||||||||
| Plant Costs disallowed | — | 47,092 | — | — | ||||||||||||
| Other non-cash | 318 | 474 | (5,203 | ) | (4,093 | ) | ||||||||||
Funds from Operations (Before Deferred Energy Costs) | 140,027 | 160,022 | 70,950 | 112,864 | ||||||||||||
| Amortization Deferred energy costs — electric | 56,750 | 36,653 | 45,524 | 30,164 | ||||||||||||
| Amortization Deferred energy costs — gas | 1,446 | 3,241 | 13,095 | 13,231 | ||||||||||||
| Deferral of energy costs — electric plus terminated suppliers | (54,765 | )(1) | (34,598 | ) | (48,236 | ) | (96,127 | ) | ||||||||
| Deferral of energy costs — gas | (2,519 | ) | (7,480 | ) | 2,592 | 10,270 | ||||||||||
Adjusted Funds from Operations | $ | 140,939 | $ | 157,838 | $ | 83,925 | $ | 70,402 | ||||||||
| Long-term Debt | 941,804 | 994,309 | 912,800 | 914,788 | ||||||||||||
| Current maturities of long term debt plus short term debt | 52,400 | 2,400 | 108,400 | 101,400 | ||||||||||||
Total Debt | $ | 994,204 | $ | 996,709 | $ | 1,021,200 | $ | 1,016,188 | ||||||||
Preferred Stock | 50,000 | 50,000 | 50,000 | 50,000 | ||||||||||||
| Net interest expense | 69,067 | 62,831 | 96,093 | 75,279 | ||||||||||||
| AFUDC | (1,504 | ) | (2,849 | ) | (3,276 | ) | (1,858 | ) | ||||||||
Adjusted Interest Expense | $ | 70,571 | $ | 65,680 | $ | 99,369 | $ | 77,137 | ||||||||
| Debt/Funds from operations | 7.10x | 6.23x | 14.39x | 9.00x | ||||||||||||
| Debt/adjusted FFO | 7.05x | 6.31x | 12.17x | 14.43x | ||||||||||||
| Funds from Operations Interest Coverage | 2.98x | 3.44x | 1.71x | 2.46x | ||||||||||||
| Adjusted Funds From Operations Interest Coverage | 3.00x | 3.40x | 1.84x | 1.91x | ||||||||||||
| Common shareholders equity | $ | 727,777 | $ | 705,395 | $ | 593,771 | $ | 639,295 | ||||||||
| Total Capitalization | $ | 1,771,981 | $ | 1,752,104 | $ | 1,664,971 | $ | 1,705,483 | ||||||||
| Debt/Capitalization | 56.11 | % | 56.89 | % | 61.33 | % | 59.58 | % | ||||||||
(1) For 2005, deferral of energy costs electric plus terminated suppliers does not include the non-cash net change in deferred energy of $63 million associated primarily with the November 2005 settlement with Enron.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(in thousands)
(in thousands)
Sierra Pacific Resources
EBITDA
| Year ended December 31, | ||||||||||||||||
| 2005 | 2004 | 2003 | 2002 | |||||||||||||
Net Income (Loss) | $ | 86,137 | $ | 32,471 | $ | (136,629 | ) | $ | (303,621 | ) | ||||||
| Interest Charges | 284,927 | 306,427 | 366,282 | 279,057 | ||||||||||||
| Income taxes | 43,173 | 20,631 | (44,207 | ) | (161,191 | ) | ||||||||||
| Depreciation and Amortization | 214,662 | 205,647 | 191,259 | 174,200 | ||||||||||||
EBITDA | $ | 628,899 | $ | 565,176 | $ | 376,705 | $ | (11,555 | ) | |||||||
EBITDA/Interest Expense | 2.03x | 1.79x | 1.01x | -0.04x | ||||||||||||
Debt/EBITDA | 6.16x | 7.24x | 10.15x | -337.44x | ||||||||||||
Sierra Pacific Resources | ||||||||||||||||
| Net interest expense | $ | 284,927 | 306,427 | 366,282 | 279,057 | |||||||||||
| AFUDC | (24,691 | ) | (8,587 | ) | (5,976 | ) | (5,270 | ) | ||||||||
Adjusted Interest Expense | $ | 309,618 | $ | 315,014 | $ | 372,258 | $ | 284,327 | ||||||||
| Long-Term Debt | $ | 3,817,122 | $ | 4,081,281 | $ | 3,579,674 | $ | 3,226,281 | ||||||||
| Current maturities of long term debt plus short-term borrowings | 58,909 | 8,491 | 243,970 | 672,895 | ||||||||||||
Total Debt | $ | 3,876,031 | $ | 4,089,772 | $ | 3,823,644 | $ | 3,899,176 | ||||||||
Nevada Power | ||||||||||||||||
EBITDA | Year ended December 31, | |||||||||||||||
| 2005 | 2004 | 2003 | 2002 | |||||||||||||
Net Income (Loss) | $ | 132,734 | $ | 104,312 | $ | 19,277 | $ | (235,070 | ) | |||||||
| Interest Charges | 134,657 | 137,388 | 190,472 | 132,510 | ||||||||||||
| Income taxes | 63,995 | 56,572 | (614 | ) | (131,784 | ) | ||||||||||
| Depreciation and Amortization | 124,098 | 118,841 | 109,655 | 98,198 | ||||||||||||
EBITDA | $ | 455,484 | $ | 417,113 | $ | 318,790 | $ | (136,146 | ) | |||||||
EBITDA/Interest Expense | 2.89x | 2.91x | 1.65x | -1.00x | ||||||||||||
Debt/EBITDA | 4.88x | 5.47x | 6.38x | -14.97x | ||||||||||||
Nevada Power Company | ||||||||||||||||
| Net interest expense | $ | 134,657 | $ | 137,388 | $ | 190,472 | $ | 132,510 | ||||||||
| AFUDC | (23,187 | ) | (5,738 | ) | (2,700 | ) | (3,412 | ) | ||||||||
Adjusted Interest Expense | $ | 157,844 | $ | 143,126 | $ | 193,172 | $ | 135,922 | ||||||||
| Long-Term Debt | $ | 2,214,063 | $ | 2,275,690 | $ | 1,899,709 | $ | 1,683,310 | ||||||||
| Current maturities of long term debt | 6,509 | 6,091 | 135,570 | 354,677 | ||||||||||||
Total Debt | $ | 2,220,572 | $ | 2,281,781 | $ | 2,035,279 | $ | 2,037,987 | ||||||||
Sierra Pacific Power | ||||||||||||||||
EBITDA | Year ended December 31, | |||||||||||||||
| 2005 | 2004 | 2003 | 2002 | |||||||||||||
Net Income (Loss) | $ | 52,074 | $ | 18,577 | $ | (23,275 | ) | $ | (13,968 | ) | ||||||
| Interest Charges | 69,067 | 62,831 | 96,093 | 75,279 | ||||||||||||
| Income Taxes | 28,379 | 325 | (12,237 | ) | (4,491 | ) | ||||||||||
| Depreciation and Amortization | 90,569 | 86,806 | 81,514 | 76,373 | ||||||||||||
EBITDA | $ | 240,089 | $ | 168,539 | $ | 142,095 | $ | 133,193 | ||||||||
EBITDA/Interest Expense | 3.40x | 2.57x | 1.43x | 1.73x | ||||||||||||
Debt/EBITDA | 4.14x | 5.91x | 7.19x | 7.63x | ||||||||||||
Sierra Pacific Power Company | ||||||||||||||||
| Net interest expense | $ | 69,067 | $ | 62,831 | $ | 96,093 | $ | 75,279 | ||||||||
| AFUDC | (1,504 | ) | (2,849 | ) | (3,276 | ) | (1,858 | ) | ||||||||
Adjusted Interest Expense | $ | 70,571 | $ | 65,680 | $ | 99,369 | $ | 77,137 | ||||||||
| Long-Term Debt | $ | 941,804 | $ | 994,309 | $ | 912,800 | $ | 914,788 | ||||||||
| Current maturities of long term debt plus short-term borrowings | 52,400 | 2,400 | 108,400 | 101,400 | ||||||||||||
Total Debt | $ | 994,204 | $ | 996,709 | $ | 1,021,200 | $ | 1,016,188 | ||||||||