EXHIBIT 99.1
EBITDA represents net income before interest, taxes, depreciation and amortization. EBITDA is presented here because NV Energy, Inc. (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) | ||||||||||||||||||||||||
NV Energy, Inc. | ||||||||||||||||||||||||
EBITDA | ||||||||||||||||||||||||
Six Months ended June 30, | Year ended December 31, | LTM June 30, | ||||||||||||||||||||||
2009 | 2008 | 2008 | 2007 | 2006 | 2009 | |||||||||||||||||||
Net Income (Loss) | $ | (3,861 | ) | $ | 60,192 | $ | 208,887 | $ | 197,295 | $ | 277,451 | $ | 144,834 | |||||||||||
Interest charges (including AFUDC(1)) | 166,192 | 135,804 | 300,857 | 279,788 | 311,088 | 331,245 | ||||||||||||||||||
Income taxes (benefit) | (1,821 | ) | 33,735 | 95,354 | 87,555 | 145,605 | 59,798 | |||||||||||||||||
Depreciation and amortization | 158,371 | 126,411 | 260,608 | 235,532 | 228,875 | 292,568 | ||||||||||||||||||
EBITDA | $ | 318,881 | $ | 356,142 | $ | 865,706 | $ | 800,170 | $ | 963,019 | $ | 828,445 | ||||||||||||
EBITDA/Interest Charges | 1.92 | x | 2.62 | x | 2.88 | x | 2.86 | x | 3.10 | x | 2.50 | x | ||||||||||||
Debt/EBITDA | 17.50 | x | 12.53 | x | 6.09 | x | 5.31 | x | 4.16 | x | 6.74 | x | ||||||||||||
NV Energy, Inc. | ||||||||||||||||||||||||
Interest charges (including AFUDC(1)) | $ | 166,192 | $ | 135,804 | $ | 300,857 | $ | 279,788 | $ | 311,088 | $ | 331,245 | ||||||||||||
Long-Term debt | $ | 5,571,799 | $ | 4,451,781 | $ | 5,266,982 | $ | 4,137,864 | $ | 4,001,542 | $ | 5,571,799 | ||||||||||||
Current maturities of long term debt | 9,085 | 10,298 | 9,291 | 110,285 | 8,348 | 9,085 | ||||||||||||||||||
Total Debt | $ | 5,580,884 | $ | 4,462,079 | $ | 5,276,273 | $ | 4,248,149 | $ | 4,009,890 | $ | 5,580,884 | ||||||||||||
Nevada Power Company | ||||||||||||||||||||||||
EBITDA | ||||||||||||||||||||||||
Six Months ended June 30, | Year ended December 31, | LTM June 30, | ||||||||||||||||||||||
2009 | 2008 | 2008 | 2007 | 2006 | 2009 | |||||||||||||||||||
Net Income (Loss) | $ | (22,650 | ) | $ | 41,146 | $ | 151,431 | $ | 165,694 | $ | 224,540 | $ | 87,635 | |||||||||||
Interest charges (including AFUDC(1)) | 112,180 | 82,461 | 186,822 | 174,667 | 176,612 | 216,541 | ||||||||||||||||||
Income taxes (benefit) | (10,969 | ) | 22,519 | 71,382 | 78,352 | 117,510 | 37,894 | |||||||||||||||||
Depreciation and amortization | 105,873 | 82,953 | 171,080 | 152,139 | 141,585 | 194,000 | ||||||||||||||||||
EBITDA | $ | 184,434 | $ | 229,079 | $ | 580,715 | $ | 570,852 | $ | 660,247 | $ | 536,070 | ||||||||||||
EBITDA/Interest Charges | 1.64 | x | 2.78 | x | 3.11 | x | 3.27 | x | 3.74 | x | 2.48 | x | ||||||||||||
Debt/EBITDA | 20.18 | x | 11.67 | x | 5.84 | x | 4.44 | x | 3.61 | x | 6.94 | x | ||||||||||||
Nevada Power Company | ||||||||||||||||||||||||
Interest charges (including AFUDC(1)) | $ | 112,180 | $ | 82,461 | $ | 186,822 | $ | 174,667 | $ | 176,612 | $ | 216,541 | ||||||||||||
Long-Term debt | $ | 3,712,016 | $ | 2,664,929 | $ | 3,385,106 | $ | 2,528,141 | $ | 2,380,139 | $ | 3,712,016 | ||||||||||||
Current maturities of long term debt | 9,085 | 8,636 | 8,691 | 8,642 | 5,948 | 9,085 | ||||||||||||||||||
Total Debt | $ | 3,721,101 | $ | 2,673,565 | $ | 3,393,797 | $ | 2,536,783 | $ | 2,386,087 | $ | 3,721,101 | ||||||||||||
Sierra Pacific Power Company | ||||||||||||||||||||||||
EBITDA | ||||||||||||||||||||||||
Six Months ended June 30, | Year ended December 31, | LTM June 30, | ||||||||||||||||||||||
2009 | 2008 | 2008 | 2007 | 2006 | 2009 | |||||||||||||||||||
Net Income | $ | 33,940 | $ | 35,133 | $ | 90,582 | $ | 65,667 | $ | 57,709 | $ | 89,389 | ||||||||||||
Interest charges (including AFUDC(1)) | 34,686 | 32,466 | 72,712 | 60,735 | 71,506 | 74,932 | ||||||||||||||||||
Income taxes | 15,255 | 18,138 | 37,603 | 26,009 | 27,829 | 34,720 | ||||||||||||||||||
Depreciation and amortization | 52,498 | 43,458 | 89,528 | 83,393 | 87,279 | 98,568 | ||||||||||||||||||
EBITDA | $ | 136,379 | $ | 129,195 | $ | 290,425 | $ | 235,804 | $ | 244,323 | $ | 297,609 | ||||||||||||
EBITDA/Interest Charges | 3.93 | x | 3.98 | x | 3.99 | x | 3.88 | x | 3.42 | x | 3.97 | x | ||||||||||||
Debt/EBITDA | 10.07 | x | 9.78 | x | 4.81 | x | 5.03 | x | 4.39 | x | 4.62 | x | ||||||||||||
Sierra Pacific Power Company | ||||||||||||||||||||||||
Interest charges (including AFUDC(1)) | $ | 34,686 | $ | 32,466 | $ | 72,712 | $ | 60,735 | $ | 71,506 | $ | 74,932 | ||||||||||||
Long-Term debt | $ | 1,373,992 | $ | 1,261,788 | $ | 1,395,987 | $ | 1,084,550 | $ | 1,070,858 | $ | 1,373,992 | ||||||||||||
Current maturities of long term debt | - | 1,662 | 600 | 101,643 | 2,400 | - | ||||||||||||||||||
Total Debt | $ | 1,373,992 | $ | 1,263,450 | $ | 1,396,587 | $ | 1,186,193 | $ | 1,073,258 | $ | 1,373,992 | ||||||||||||
(1) Allowance for Funds Used During Construction or Allowance for Borrowed Funds Used During Construction. |