Exhibit 99.1
FROM: Sierra Pacific Resources TO: PR Newswire
Analyst Contact: US1
Vicki Erickson 775-834-5646 1-800-473-5152
Media Contact:
Karl Walquist 775-834-3891
Feb. 10, 2003
Sierra Pacific Resources Reports Fourth Quarter and Year-End 2002 Financial
Results
Las Vegas - Sierra Pacific Resources (NYSE: SRP) today announced financial
results for 2002, a year in which it would have recorded a profit except for a
pre-tax write-off of $527 million.
For the year ended Dec. 31, 2002, the company reported a net loss of
$(307.5) million, or $(3.01) per share, compared with net earnings of $56.7
million, or $0.65 per share, in 2001. Excluding the write-off related to
disallowances on deferred energy costs during 2002, Sierra Pacific Resources
would have recorded net income of approximately $35 million for the year.
In the fourth quarter of 2002, Sierra Pacific Resources had a loss of
$(39.5) million, or $(0.39) per share, compared with net income of $5.8 million,
or $0.06 per share, for the comparable quarter in 2001. The loss is attributable
to milder-than-normal weather, higher interest expense and other charges.
Walt Higgins, chairman, president and chief executive officer, said, "While
the past year was extremely difficult due to the extraordinary events, we are
focusing our efforts on strengthening the company's balance sheet and liquidity
with several initiatives, some of which we recently announced. Our number one
priority continues to be restoring the company's financial health."
Last week, the company announced that it had reached agreements to exchange
30 percent of its mandatorily convertible securities for common stock, reducing
the company's outstanding debt by approximately $105 million and its future
interest expense by approximately $26 million through 2005.
The $527 million pre-tax write-off of deferred energy charges and related
carrying charges resulted from decisions by regulators to disallow the recovery
of a significant portion of purchased power and gas costs incurred by the
company's utility subsidiaries, Nevada Power Company and Sierra Pacific Power
Company. Regulators disallowed recovery of $434.1 million in deferred energy
costs, excluding carrying charges, for Nevada Power and $57 million in deferred
energy and gas costs, excluding carrying charges, for Sierra Pacific Power.
Nevada Power recorded a fourth quarter 2002 loss of $(19) million, compared
with net income of $6.9 million for the comparable quarter in 2001. Sierra
Pacific Power reported a fourth quarter 2002 loss of $(5.5) million, compared
with earnings of $9.3 million in the comparable quarter a year earlier.
Webcast Scheduled for 7 a.m. PST Today
Senior management of Sierra Pacific will review the company's quarterly and
year-end financial results during a conference call and webcast today at 7 a.m.
Pacific Standard Time. Interested parties can access the conference call at
1-800-553-2720 Callers must use conference call ID number 3041928 to listen to
the call. Interested parties can access a webcast of the call with the following
link:
www.on24.com/clients/default/irevent.html?eventid=1503
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The webcast will be accessible on the Sierra Pacific Resources' web site at
http://www.sierrapacificresources.com/investors/news/. An archived version
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of the webcast will be available on the Sierra Pacific Resources web site.
To listen to a recording of the call by telephone, call 1-888-211-2648 and
use the conference call ID number to access the recording.
Headquartered in Nevada, Sierra Pacific Resources is a holding company
whose principal subsidiaries are Nevada Power Company, the electric utility for
most of southern Nevada, and Sierra Pacific Power Company, the electric utility
for most of northern Nevada and the Lake Tahoe area of California. Sierra
Pacific Power Company also distributes natural gas in the Reno-Sparks area of
northern Nevada. Other subsidiaries include the Tuscarora Gas Pipeline Company,
which owns 50 percent interest in an interstate natural gas transmission
partnership, Sierra Pacific Communications, a telecommunications company, and
Sierra Pacific Energy (e-three), an energy conservation services company.
This press release contains forward-looking statements regarding the future
performance of Sierra Pacific Resources and its subsidiaries, Nevada Power
Company and Sierra Pacific Power Company, within the meaning of the Private
Securities Litigation Reform Act of 1995. These statements are subject to a
variety of risks and uncertainties that could cause actual results to differ
materially from current expectations. For Sierra Pacific Resources, these risks
and uncertainties include, but are not limited to, Resource's ability to access
the capital markets to refinance upcoming debt maturities and for general
corporate purposes, Resource's ability to receive dividends from its
subsidiaries in the near future and the financial performance of the Company's
subsidiaries, particularly Nevada Power Company and Sierra Pacific Power
Company. For Nevada Power Company and Sierra Pacific Power Company, these risks
and uncertainties include, but are not limited to, unfavorable rulings in their
pending and future rate cases, their ability to access the capital markets to
refinance debt and for general corporate purposes, their ability to purchase
sufficient power to meet their power demands, whether terminated power suppliers
will be successful in pursuing claims against Nevada Power and Sierra Pacific
Power for liquidated damages under their terminated power contracts and weather
conditions during the summer of 2003 and beyond. Additional cautionary
statements regarding other risk factors that could have an effect on the future
performance of Sierra Pacific Resources, Nevada Power Company and Sierra Pacific
Power Company are contained in their Quarterly Report on Form 10-Q for the
quarter ended September 30, 2002 filed with the SEC. The Companies undertake no
obligation to release publicly the result of any revisions to these
forward-looking statements that may be made to reflect events or circumstances
after the date hereof or to reflect the occurrence of unanticipated events.
Financial Highlights:
Sierra Pacific Resources
Financial Highlights
(In thousands, except for per share amount)
SRP NPC SPP
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Fourth Quarter 2002
2002 2001 2002 2001 2002 2001
---- ---- ---- ---- ---- ----
Revenues $630,811 $732,996 $355,167 $462,154 $274,337 $265,351
Operating Expenses 596,342 680,125 337,756 437,915 259,182 241,611
Net Income (Loss) Available for Common (39,497) 5,768 (19,045) 6,946 (5,479) 9,338
Net Income (Loss) Per Share $(0.39) $0.06 - - - -
Net Income (Loss) Contribution Per Share - - $(0.19) $0.07 $(0.05) $0.09
SRP Weighted Average Shares Outstanding 102,150 102,099 102,150 102,099 102,150 102,099
Year to Date December 31, 2002
2002 2001 2002 2001 2002 2001
---- ---- ---- ---- ---- ----
Revenues $2,991,703 $4,591,374 $1,901,034 $3,025,103 $1,081,034 $1,547,430
Operating Expenses 3,024,759 4,368,505 2,005,037 2,880,739 1,025,742 1,468,462
Net Income (Loss) Available For Common (307,521) 56,733 (235,070) 63,405 (17,868) 45,910
Net Income (Loss) Per Share $(3.01) $0.65 - - - -
Net Income (Loss) Contribution Per Share - - $(2.30) $0.72 $(0.17) $0.52
SRP Weighted Average Shares Outstanding 102,126 87,542 102,126 87,542 102,126 87,542