Pinnacle West Capital Corp. (NYSE: PNW) today reported consolidated net income attributable to common shareholders of $3.2 million, or $0.03 per diluted share of common stock, for the quarter ended March 31, 2018. This result compares with $23.3 million, or $0.21 per diluted share, for the same period in 2017.
“We are well-positioned for a solid year as our service territory continues to experience a steady improvement in economic conditions and solid customer growth,” said Pinnacle West Chairman, President and Chief Executive Officer Don Brandt, citing 1.7 percent customer growth and metropolitan Phoenix being on pace for the most home sales in any first-quarter period since the great recession officially started in December 2007.
“Clearly, Arizona and the Phoenix metropolitan area continue to be attractive places to live and do business. Arizona’s population surpassed 7 million in 2017, and Maricopa County – home to 70 percent of our customers – has been ranked as the fastest growing county in the nation for the past two years, according to the U.S. Census Bureau.”
The 2018 first-quarter results were negatively impacted by the following factors compared to the same period in 2017:
These factors were offset in part by the following positive items:
Financial Outlook
For 2018, the Company continues to expect its consolidated earnings guidance will be in the range of $4.35 to $4.55 per diluted share, and expects to achieve a consolidated earned return on average common equity of more than 9.5 percent.
Key factors and assumptions underlying the 2018 outlook can be found in the first-quarter 2018 earnings presentation slides on the Company’s website at pinnaclewest.com/investors.
Conference Call and Webcast
Pinnacle West invites interested parties to listen to the live webcast of management’s conference call to discuss the Company’s 2018 first-quarter results, as well as recent developments, at noon ET (9 a.m. Arizona time) today, May 2. A replay of the webcast can be accessed at pinnaclewest.com/presentations. To access the live conference call by telephone, dial (877) 407-8035 or (201) 689-8035 for international callers. A replay of the call also will be available until 11:59 p.m. (ET), Wednesday, May 9, 2018, by calling (877) 481-4010 in the U.S. and Canada or (919) 882-2331 internationally and entering conference ID number 27282.
General Information
Pinnacle West Capital Corp., an energy holding company based in Phoenix, has consolidated assets of about $17 billion, about 6,200 megawatts of generating capacity and 6,300 employees in Arizona and New Mexico. Through its principal subsidiary, Arizona Public Service, the Company provides retail electricity service to nearly 1.2 million Arizona homes and businesses. For more information about Pinnacle West, visit the Company’s website at pinnaclewest.com.
Earnings per share amounts are based on average diluted common shares outstanding. For more information on Pinnacle West’s operating statistics and earnings, please visit pinnaclewest.com/investors.
FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements based on our current expectations, including statements regarding our earnings guidance and financial outlook and goals. These forward-looking statements are often identified by words such as “estimate,” “predict,” “may,” “believe,” “plan,” “expect,” “require,” “intend,” “assume,” “project” and similar words. Because actual results may differ materially from expectations, we caution readers not to place undue reliance on these statements. A number of factors could cause future results to differ materially from historical results, or from outcomes currently expected or sought by Pinnacle West or APS. These factors include, but are not limited to:
These and other factors are discussed in Risk Factors described in Part 1, Item 1A of the Pinnacle West/APS Annual Report on Form 10-K for the fiscal year ended December 31, 2017, which readers should review carefully before placing any reliance on our financial statements or disclosures. Neither Pinnacle West nor APS assumes any obligation to update these statements, even if our internal estimates change, except as required by law.
PINNACLE WEST CAPITAL CORPORATION | |||||||||
CONSOLIDATED STATEMENTS OF INCOME | |||||||||
(unaudited) | |||||||||
(dollars and shares in thousands, except per share amounts) |
|||||||||
THREE MONTHS ENDED | |||||||||
MARCH 31, | |||||||||
2018 | 2017 | ||||||||
Operating Revenues | $ | 692,714 | $ | 677,728 | |||||
Operating Expenses | |||||||||
Fuel and purchased power | 197,110 | 212,395 | |||||||
Operations and maintenance | 265,682 | 226,071 | |||||||
Depreciation and amortization | 144,825 | 127,627 | |||||||
Taxes other than income taxes | 53,600 | 43,836 | |||||||
Other expenses | 163 | 388 | |||||||
Total | 661,380 | 610,317 | |||||||
Operating Income | 31,334 | 67,411 | |||||||
Other Income (Deductions) | |||||||||
Allowance for equity funds used during construction | 14,079 | 9,482 | |||||||
Pension and other postretirement non-service credits - net | 12,859 | 6,095 | |||||||
Other income | 3,985 | 480 | |||||||
Other expense | (3,229 | ) | (3,680 | ) | |||||
Total | 27,694 | 12,377 | |||||||
Interest Expense | |||||||||
Interest charges | 58,954 | 51,864 | |||||||
Allowance for borrowed funds used during construction | (6,755 | ) | (4,472 | ) | |||||
Total | 52,199 | 47,392 | |||||||
Income Before Income Taxes | 6,829 | 32,396 | |||||||
Income Taxes | (1,265 | ) | 4,211 | ||||||
Net Income | 8,094 | 28,185 | |||||||
Less: Net income attributable to noncontrolling interests | 4,873 | 4,873 | |||||||
Net Income Attributable To Common Shareholders | $ | 3,221 | $ | 23,312 | |||||
Weighted-Average Common Shares Outstanding - Basic | 112,017 | 111,728 | |||||||
Weighted-Average Common Shares Outstanding - Diluted | 112,493 | 112,195 | |||||||
Earnings Per Weighted-Average Common Share Outstanding | |||||||||
Net income attributable to common shareholders - basic | $ | 0.03 | $ | 0.21 | |||||
Net income attributable to common shareholders - diluted | $ | 0.03 | $ | 0.21 |
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Pinnacle West Capital Corporation
Media Contact:
Alan Bunnell,
602-250-3376
Analyst Contact:
Stefanie Layton, 602-250-4541
Website:
pinnaclewest.com