Pinnacle West Reports 2018 Full-Year and Fourth-Quarter Results
PHOENIX--(BUSINESS WIRE)--Feb 22, 2019--Pinnacle West Capital Corporation (NYSE: PNW) today reported consolidated net income attributable to common shareholders of $511.0 million, or $4.54 per diluted share, for full-year 2018. This result compares with net income of $488.5 million, or $4.35 per share, in 2017.
“Strong operational performance and a robust Arizona economy helped us achieve solid 2018 results at the top of our earnings guidance,” said Pinnacle West Chairman, President and Chief Executive Officer Don Brandt. “And, by operating efficiently and safely, our employees provided our 1.2 million customers with clean, reliable and affordable electricity.”
“Whether it’s operating Palo Verde Generating Station, the nation’s largest producer of clean-energy; quickly restoring electric service after a violent monsoon storm; or holding the line on operational costs,” Brandt said, “our employees’ commitment to our customers defines who we are as a company.”
As an example of the company’s commitment to keep rates affordable, APS was among the first energy companies in the nation to return the benefits of federal tax reform to customers. Disciplined operational cost management has enabled the company to limit price increases to less than the rate of inflation over the last 25 years. In fact, earlier this month, APS lowered monthly bills more than $3 on average for residential customers. Added to the $119 million in savings passed along to customers from federal tax reform, the average APS customer’s monthly bill is $9.59 less than it was on March 1, 2018.
Brandt cited several additional examples of the company’s 2018 achievements:increased its common dividendPalo Verde Generating Station
Looking forward, Brandt said the company will keep working in partnership with customers and policy makers “to support Arizona’s sustained growth and continue to advance a clean-energy vision.”
The 2018 full-year financial results comparison was positively impacted by the following major factors:
The above positive factors were offset in part by the following factors:
For the quarter ended December 31, 2018, Pinnacle West reported higher consolidated net income attributable to common shareholders of $26.1 million, or $0.23 per diluted share. This result compares with net income of $21.6 million, or $0.19 per share, for the same period a year ago.
The 2018 fourth-quarter results comparison versus 2017 was positively impacted by higher retail sales revenue, including residential rate design and seasonal rates; recovery of lost revenue resulting from customer energy efficiency and distributed generation programs; adoption of new accounting guidance and higher market returns for pension and other post-retirement benefits; and lower operations and maintenance expenses. These factors were partially offset by income taxes, net of tax refunds, and the effects of weather.
The company reaffirmed its 2019 consolidated earnings will be within a range of $4.75 to $4.95 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 2019 outlook can be found in the year-end/fourth-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 year-end and fourth-quarter results, as well as recent developments, at 11 a.m. ET (9 a.m. Arizona time) today, February 22. The webcast can be accessed at pinnaclewest.com/presentations. To access the live conference call by telephone, dial (866) 682-6100 or (862) 298-0702 for international callers. A replay of the call also will be available until 11:59 p.m. (ET), Friday, March 1, 2019, by calling (877) 481-4010 in the U.S. and Canada or (919) 882-2331 internationally and entering passcode 41840.
Pinnacle West Capital Corp., an energy holding company based in Phoenix, has consolidated assets of almost $18 billion, about 6,000 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.
Dollar amounts in this news release are after income taxes. 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.
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, 2018, 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.
View source version on businesswire.com:https://www.businesswire.com/news/home/20190222005042/en/
CONTACT: Media Contact: Alan Bunnell (602) 250-3376
Analyst Contact: Stefanie Layton (602) 250-4541
KEYWORD: UNITED STATES NORTH AMERICA ARIZONA
INDUSTRY KEYWORD: ENERGY UTILITIES
SOURCE: Pinnacle West Capital Corporation
Copyright Business Wire 2019.
PUB: 02/22/2019 08:40 AM/DISC: 02/22/2019 08:41 AM