Attached files
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| 8-K - FORM 8-K - NEVADA POWER CO | form8-k.htm |
| EX-99.2 - EXHIBIT 99.2 - NEVADA POWER CO | exhibit99-2.htm |
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:
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EBITDA does not reflect cash expenditures, or future requirements for capital expenditures, or contractual commitments;
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EBITDA does not reflect changes in, or cash requirements for, working capital needs;
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EBITDA does not reflect the significant interest expense, or the cash requirements necessary to service interest or principal payments, on debts;
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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
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Other companies in this industry may calculate EBITDA differently than we do, which will limit its usefulness as a comparative measure.
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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.
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RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
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(Dollars in thousands)
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NV Energy, Inc.
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EBITDA
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Six Months ended June 30,
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Year Ended December 31,
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2011
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2010
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2010
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2009
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2008
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Net Income
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$ | 15,218 | $ | 35,225 | $ | 226,984 | $ | 182,936 | $ | 208,887 | ||||||||||
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Interest expense (net of AFUDC(1) - debt)
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158,222 | 160,836 | 333,010 | 334,314 | 300,857 | |||||||||||||||
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Income tax expense
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7,239 | 18,151 | 113,764 | 75,451 | 95,354 | |||||||||||||||
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Depreciation and amortization
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172,708 | 165,644 | 333,059 | 321,921 | 260,608 | |||||||||||||||
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EBITDA
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$ | 353,387 | $ | 379,856 | $ | 1,006,817 | $ | 914,622 | $ | 865,706 | ||||||||||
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EBITDA/Interest expense
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2.23 | x | 2.36 | x | 3.02 | x | 2.74 | x | 2.88 | x | ||||||||||
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Total Debt/EBITDA
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14.96 | x | 13.90 | x | 5.24 | x | 5.95 | x | 6.09 | x | ||||||||||
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NV Energy, Inc.
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Interest expense (net of AFUDC(1) - debt)
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$ | 158,222 | $ | 160,836 | $ | 333,010 | $ | 334,314 | $ | 300,857 | ||||||||||
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Long-term debt
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$ | 5,151,590 | $ | 5,242,442 | $ | 4,924,109 | $ | 5,303,357 | $ | 5,266,982 | ||||||||||
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Current maturities of long-term debt
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135,991 | 357,163 | 355,929 | 134,474 | 9,291 | |||||||||||||||
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Total Debt
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$ | 5,287,581 | $ | 5,599,605 | $ | 5,280,038 | $ | 5,437,831 | $ | 5,276,273 | ||||||||||
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(1) Allowance for funds used during construction.
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1
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Nevada Power Company
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EBITDA
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Six Months ended June 30,
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Year Ended December 31,
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2011
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2010
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2010
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2009
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2008
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Net Income
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$ | 7,043 | $ | 17,458 | $ | 185,943 | $ | 134,284 | $ | 151,431 | ||||||||||
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Interest expense (net of AFUDC(1) - debt)
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107,769 | 107,352 | 214,367 | 226,252 | 186,822 | |||||||||||||||
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Income tax expense
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3,815 | 8,879 | 91,757 | 61,652 | 71,382 | |||||||||||||||
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Depreciation and amortization
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119,586 | 112,755 | 226,252 | 215,873 | 171,080 | |||||||||||||||
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EBITDA
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$ | 238,213 | $ | 246,444 | $ | 718,319 | $ | 638,061 | $ | 580,715 | ||||||||||
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EBITDA/Interest expense
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2.21 | x | 2.30 | x | 3.35 | x | 2.82 | x | 3.11 | x | ||||||||||
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Total Debt/EBITDA
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15.12 | x | 14.52 | x | 4.98 | x | 5.73 | x | 5.84 | x | ||||||||||
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Nevada Power Company
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Interest expense (net of AFUDC(1) - debt)
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$ | 107,769 | $ | 107,352 | $ | 214,367 | $ | 226,252 | $ | 186,822 | ||||||||||
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Long-term debt
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$ | 3,465,040 | $ | 3,475,347 | $ | 3,221,833 | $ | 3,535,440 | $ | 3,385,106 | ||||||||||
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Current maturities of long-term debt
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135,991 | 357,163 | 355,929 | 119,474 | 8,691 | |||||||||||||||
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Total Debt
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$ | 3,601,031 | $ | 3,832,510 | $ | 3,577,762 | $ | 3,654,914 | $ | 3,393,797 | ||||||||||
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(1) Allowance for funds used during construction.
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Sierra Pacific Power Company
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EBITDA
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Six Months ended June 30,
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Year Ended December 31,
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2011
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2010
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2010
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2009
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2008
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Net Income
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$ | 20,088 | $ | 28,435 | $ | 72,375 | $ | 73,085 | $ | 90,582 | ||||||||||
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Interest expense (net of AFUDC(1) - debt)
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33,720 | 34,158 | 68,514 | 69,413 | 72,712 | |||||||||||||||
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Income tax expense
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9,945 | 15,693 | 40,404 | 31,225 | 37,603 | |||||||||||||||
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Depreciation and amortization
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53,122 | 52,889 | 106,807 | 106,048 | 89,528 | |||||||||||||||
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EBITDA
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$ | 116,875 | $ | 131,175 | $ | 288,100 | $ | 279,771 | $ | 290,425 | ||||||||||
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EBITDA/Interest expense
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3.47 | x | 3.84 | x | 4.20 | x | 4.03 | x | 3.99 | x | ||||||||||
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Total Debt/EBITDA
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10.10 | x | 9.12 | x | 4.15 | x | 4.64 | x | 4.81 | x | ||||||||||
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Sierra Pacific Power Company
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Interest expense (net of AFUDC(1) - debt)
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$ | 33,720 | $ | 34,158 | $ | 68,514 | $ | 69,413 | $ | 72,712 | ||||||||||
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Long-term debt
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$ | 1,180,051 | $ | 1,281,500 | $ | 1,195,775 | $ | 1,282,225 | $ | 1,395,987 | ||||||||||
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Current maturities of long-term debt
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- | - | - | 15,000 | 600 | |||||||||||||||
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Total Debt
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$ | 1,180,051 | $ | 1,281,500 | $ | 1,195,775 | $ | 1,297,225 | $ | 1,396,587 | ||||||||||
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(1) Allowance for funds used during construction.
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