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:
• | 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)
(Dollars in thousands)
Sierra Pacific Resources
EBITDA
EBITDA
LTM | ||||||||||||||||||||||||
Three Months ended March 31, | Year ended December 31, | March 31, | ||||||||||||||||||||||
2008 | 2007 | 2007 | 2006 | 2005 | 2008 | |||||||||||||||||||
Net Income Applicable to Common Stock | $ | 24,058 | $ | 15,607 | $ | 197,295 | $ | 277,451 | $ | 82,237 | $ | 205,746 | ||||||||||||
Interest charges | 68,504 | 69,669 | 279,788 | 311,088 | 284,927 | 278,623 | ||||||||||||||||||
Income taxes | 16,708 | 10,628 | 87,555 | 145,605 | 43,118 | 93,635 | ||||||||||||||||||
Depreciation and amortization | 62,070 | 56,233 | 235,532 | 228,875 | 214,662 | 241,369 | ||||||||||||||||||
EBITDA | $ | 171,340 | $ | 152,137 | $ | 800,170 | $ | 963,019 | $ | 624,944 | $ | 819,373 | ||||||||||||
EBITDA/Interest Expense | 2.50 | x | 2.18 | x | 2.86 | x | 3.10 | x | 2.19 | x | 2.94 | x | ||||||||||||
Debt/EBITDA | 25.00 | x | 27.32 | x | 5.31 | x | 4.16 | x | 6.20 | x | 5.23 | x | ||||||||||||
Sierra Pacific Resources | ||||||||||||||||||||||||
Net interest expense | $ | 68,504 | $ | 69,669 | $ | 279,788 | $ | 311,088 | $ | 284,927 | $ | 278,623 | ||||||||||||
Long-Term debt | $ | 4,173,617 | $ | 4,147,322 | $ | 4,137,864 | $ | 4,001,542 | $ | 3,817,122 | $ | 4,173,617 | ||||||||||||
Current maturities of long term debt | 110,168 | 8,625 | 110,285 | 8,348 | 58,909 | 110,168 | ||||||||||||||||||
Total Debt | $ | 4,283,785 | $ | 4,155,947 | $ | 4,248,149 | $ | 4,009,890 | $ | 3,876,031 | $ | 4,283,785 | ||||||||||||
Nevada Power Company
EBITDA
EBITDA
Three Months ended March 31, | Year ended December 31, | LTM March 31, | ||||||||||||||||||||||
2008 | 2007 | 2007 | 2006 | 2005 | �� | 2008 | ||||||||||||||||||
Net Income | $ | 7,971 | $ | 4,582 | $ | 165,694 | $ | 224,540 | $ | 132,734 | $ | 169,083 | ||||||||||||
Interest charges | 41,473 | 43,992 | 174,667 | 176,612 | 134,657 | 172,148 | ||||||||||||||||||
Income taxes | 6,523 | 2,366 | 78,352 | 117,510 | 63,995 | 82,509 | ||||||||||||||||||
Depreciation and amortization | 40,630 | 35,761 | 152,139 | 141,585 | 124,098 | 157,008 | ||||||||||||||||||
EBITDA | $ | 96,597 | $ | 86,701 | $ | 570,852 | $ | 660,247 | $ | 455,484 | $ | 580,748 | ||||||||||||
EBITDA/Interest Expense | 2.33 | x | 1.97 | x | 3.27 | x | 3.74 | x | 3.38 | x | 3.37 | x | ||||||||||||
Debt/EBITDA | 26.64 | x | 28.93 | x | 4.44 | x | 3.61 | x | 4.88 | x | 4.43 | x | ||||||||||||
Nevada Power Company | ||||||||||||||||||||||||
Net interest expense | $ | 41,473 | $ | 43,992 | $ | 174,667 | $ | 176,612 | $ | 134,657 | $ | 172,148 | ||||||||||||
Long-Term debt | $ | 2,564,629 | $ | 2,501,650 | $ | 2,528,141 | $ | 2,380,139 | $ | 2,214,063 | $ | 2,564,629 | ||||||||||||
Current maturities of long term debt | 8,616 | 6,225 | 8,642 | 5,948 | 6,509 | 8,616 | ||||||||||||||||||
Total Debt | $ | 2,573,245 | $ | 2,507,875 | $ | 2,536,783 | $ | 2,386,087 | $ | 2,220,572 | $ | 2,573,245 | ||||||||||||
Sierra Pacific Power Company
EBITDA
EBITDA
LTM | ||||||||||||||||||||||||
Three Months ended March 31, | Year ended December 31, | March 31, | ||||||||||||||||||||||
2008 | 2007 | 2007 | 2006 | 2005 | 2008 | |||||||||||||||||||
Net Income | $ | 24,284 | $ | 21,968 | $ | 65,667 | $ | 57,709 | $ | 52,074 | $ | 67,983 | ||||||||||||
Interest charges | 16,587 | 14,783 | 60,735 | 71,506 | 69,067 | 62,539 | ||||||||||||||||||
Income taxes | 13,233 | 9,571 | 26,009 | 27,829 | 28,379 | 29,671 | ||||||||||||||||||
Depreciation and amortization | 21,440 | 20,472 | 83,393 | 87,279 | 90,569 | 84,361 | ||||||||||||||||||
EBITDA | $ | 75,544 | $ | 66,794 | $ | 235,804 | $ | 244,323 | $ | 240,089 | $ | 244,554 | ||||||||||||
EBITDA/Interest Expense | 4.55 | x | 4.52 | x | 3.88 | x | 3.42 | x | 3.48 | x | 3.91 | x | ||||||||||||
Debt/EBITDA | 15.69 | x | 16.43 | x | 5.03 | x | 4.39 | x | 4.14 | x | 4.85 | x | ||||||||||||
Sierra Pacific Power Company | ||||||||||||||||||||||||
Net interest expense | $ | 16,587 | $ | 14,783 | $ | 60,735 | $ | 71,506 | $ | 69,067 | $ | 62,539 | ||||||||||||
Long-Term debt | $ | 1,083,870 | $ | 1,095,180 | $ | 1,084,550 | $ | 1,070,858 | $ | 941,804 | $ | 1,083,870 | ||||||||||||
Current maturities of long term debt | 101,552 | 2,400 | 101,643 | 2,400 | 52,400 | 101,552 | ||||||||||||||||||
Total Debt | $ | 1,185,422 | $ | 1,097,580 | $ | 1,186,193 | $ | 1,073,258 | $ | 994,204 | $ | 1,185,422 | ||||||||||||