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 | ||||||||||||||||||||||||
Nine Months ended September 30, | Year ended December 31, | LTM September 30, | ||||||||||||||||||||||
2009 | 2008 | 2008 | 2007 | 2006 | 2009 | |||||||||||||||||||
Net Income | $ | 178,785 | $ | 210,975 | $ | 208,887 | $ | 197,295 | $ | 277,451 | $ | 176,697 | ||||||||||||
Interest charges (including AFUDC(1)) | 250,996 | 213,500 | 300,857 | 279,788 | 311,088 | 338,353 | ||||||||||||||||||
Income taxes | 80,704 | 99,146 | 95,354 | 87,555 | 145,605 | 76,912 | ||||||||||||||||||
Depreciation and amortization | 240,912 | 185,656 | 260,608 | 235,532 | 228,875 | 315,864 | ||||||||||||||||||
EBITDA | $ | 751,397 | $ | 709,277 | $ | 865,706 | $ | 800,170 | $ | 963,019 | $ | 907,826 | ||||||||||||
EBITDA/Interest Expense | 2.99 | x | 3.32 | x | 2.88 | x | 2.86 | x | 3.10 | x | 2.68 | x | ||||||||||||
Debt/EBITDA | 7.40 | x | 6.77 | x | 6.09 | x | 5.31 | x | 4.16 | x | 6.12 | x | ||||||||||||
NV Energy, Inc. | ||||||||||||||||||||||||
Interest charges (including AFUDC(1)) | $ | 250,996 | $ | 213,500 | $ | 300,857 | $ | 279,788 | $ | 311,088 | $ | 338,353 | ||||||||||||
Long-Term debt | $ | 5,549,052 | $ | 4,793,078 | $ | 5,266,982 | $ | 4,137,864 | $ | 4,001,542 | $ | 5,549,052 | ||||||||||||
Current maturities of long term debt | 9,286 | 9,794 | 9,291 | 110,285 | 8,348 | 9,286 | ||||||||||||||||||
Total Debt | $ | 5,558,338 | $ | 4,802,872 | $ | 5,276,273 | $ | 4,248,149 | $ | 4,009,890 | $ | 5,558,338 | ||||||||||||
Nevada Power Company | ||||||||||||||||||||||||
EBITDA | ||||||||||||||||||||||||
Nine Months ended September 30, | Year ended December 31, | LTM September 30, | ||||||||||||||||||||||
2009 | 2008 | 2008 | 2007 | 2006 | 2009 | |||||||||||||||||||
Net Income | $ | 140,941 | $ | 165,482 | $ | 151,431 | $ | 165,694 | $ | 224,540 | $ | 126,890 | ||||||||||||
Interest charges (including AFUDC(1)) | 170,535 | 130,732 | 186,822 | 174,667 | 176,612 | 226,625 | ||||||||||||||||||
Income taxes | 65,857 | 80,942 | 71,382 | 78,352 | 117,510 | 56,297 | ||||||||||||||||||
Depreciation and amortization | 160,869 | 120,855 | 171,080 | 152,139 | 141,585 | 211,094 | ||||||||||||||||||
EBITDA | $ | 538,202 | $ | 498,011 | $ | 580,715 | $ | 570,852 | $ | 660,247 | $ | 620,906 | ||||||||||||
EBITDA/Interest Expense | 3.16 | x | 3.81 | x | 3.11 | x | 3.27 | x | 3.74 | x | 2.74 | x | ||||||||||||
Debt/EBITDA | 6.89 | x | 5.99 | x | 5.84 | x | 4.44 | x | 3.61 | x | 5.98 | x | ||||||||||||
Nevada Power Company | ||||||||||||||||||||||||
Interest charges (including AFUDC(1)) | $ | 170,535 | $ | 130,732 | $ | 186,822 | $ | 174,667 | $ | 176,612 | $ | 226,625 | ||||||||||||
Long-Term debt | $ | 3,701,308 | $ | 2,975,201 | $ | 3,385,106 | $ | 2,528,141 | $ | 2,380,139 | $ | 3,701,308 | ||||||||||||
Current maturities of long term debt | 9,286 | 8,656 | 8,691 | 8,642 | 5,948 | 9,286 | ||||||||||||||||||
Total Debt | $ | 3,710,594 | $ | 2,983,857 | $ | 3,393,797 | $ | 2,536,783 | $ | 2,386,087 | $ | 3,710,594 | ||||||||||||
Sierra Pacific Power Company | ||||||||||||||||||||||||
EBITDA | ||||||||||||||||||||||||
Nine Months ended September 30, | Year ended December 31, | LTM September 30, | ||||||||||||||||||||||
2009 | 2008 | 2008 | 2007 | 2006 | 2009 | |||||||||||||||||||
Net Income | $ | 58,206 | $ | 68,052 | $ | 90,582 | $ | 65,667 | $ | 57,709 | $ | 80,736 | ||||||||||||
Interest charges (including AFUDC(1)) | 51,473 | 51,458 | 72,712 | 60,735 | 71,506 | 72,727 | ||||||||||||||||||
Income taxes | 25,926 | 29,423 | 37,603 | 26,009 | 27,829 | 34,106 | ||||||||||||||||||
Depreciation and amortization | 80,043 | 64,801 | 89,528 | 83,393 | 87,279 | 104,770 | ||||||||||||||||||
EBITDA | $ | 215,648 | $ | 213,734 | $ | 290,425 | $ | 235,804 | $ | 244,323 | $ | 292,339 | ||||||||||||
EBITDA/Interest Expense | 4.19 | x | 4.15 | x | 3.99 | x | 3.88 | x | 3.42 | x | 4.02 | x | ||||||||||||
Debt/EBITDA | 6.32 | x | 6.05 | x | 4.81 | x | 5.03 | x | 4.39 | x | 4.66 | x | ||||||||||||
Sierra Pacific Power Company | ||||||||||||||||||||||||
Interest charges (including AFUDC(1)) | $ | 51,473 | $ | 51,458 | $ | 72,712 | $ | 60,735 | $ | 71,506 | $ | 72,727 | ||||||||||||
Long-Term debt | $ | 1,362,002 | $ | 1,292,867 | $ | 1,395,987 | $ | 1,084,550 | $ | 1,070,858 | $ | 1,362,002 | ||||||||||||
Current maturities of long term debt | - | 1,139 | 600 | 101,643 | 2,400 | - | ||||||||||||||||||
Total Debt | $ | 1,362,002 | $ | 1,294,006 | $ | 1,396,587 | $ | 1,186,193 | $ | 1,073,258 | $ | 1,362,002 | ||||||||||||
(1) Allowance for Funds Used During Construction or Allowance for Borrowed Funds Used During Construction.