EX-99.3 12 p71004exv99w3.htm EXHIBIT 99.3 exv99w3
 

EXHIBIT 99.3
PINNACLE WEST CAPITAL CORPORATION
NON-GAAP MEASURE RECONCILIATION — OPERATING INCOME (GAAP MEASURE) TO GROSS MARGIN (NON-GAAP MEASURE)
(in thousands)
                                 
    THREE MONTHS ENDED     Pretax     After Tax  
    JUNE 30,     Increase     Increase  
    2005     2004     (Decrease)     (Decrease)  
RECONCILIATION OF REGULATED ELECTRICITY SEGMENT GROSS MARGIN
                                
Operating Income (closest GAAP measure)
   $ 178,627     $ 123,167     $ 55,460     $ 33,703  
Plus:
                                
Operations and maintenance
     153,097       138,595       14,502       8,813  
Real estate segment operations
     68,593       62,217       6,376       3,875  
Depreciation and amortization
     85,142       102,012       (16,870 )     (10,252 )
Taxes other than income taxes
     34,638       32,308       2,330       1,416  
Other expenses
     17,556       7,575       9,981       6,065  
Marketing and trading segment purchased power and fuel
     57,593       88,067       (30,474 )     (18,519 )
Less:
                                
Real estate segment revenues
     84,753       66,084       18,669       11,345  
Other revenues
     20,259       9,414       10,845       6,591  
Marketing and trading segment revenues
     71,172       110,156       (38,984 )     (23,691 )
 
                        
 
                                
Regulated electricity segment gross margin
   $ 419,062     $ 368,287     $ 50,775     $ 30,856  
 
                        
 
                                
RECONCILIATION OF MARKETING AND TRADING SEGMENT GROSS MARGIN
                                
Operating Income (closest GAAP measure)
   $ 178,627     $ 123,167     $ 55,460     $ 33,703  
Plus:
                                
Operations and maintenance
     153,097       138,595       14,502       8,813  
Real estate segment operations
     68,593       62,217       6,376       3,875  
Depreciation and amortization
     85,142       102,012       (16,870 )     (10,252 )
Taxes other than income taxes
     34,638       32,308       2,330       1,416  
Other expenses
     17,556       7,575       9,981       6,065  
Regulated electricity segment purchased power and fuel
     160,590       151,642       8,948       5,438  
Less:
                                
Real estate segment revenues
     84,753       66,084       18,669       11,345  
Other revenues
     20,259       9,414       10,845       6,591  
Regulated electricity segment revenues
     579,652       519,929       59,723       36,294  
 
                        
 
                                
Marketing and trading segment gross margin
   $ 13,579     $ 22,089     $ (8,510 )   $ (5,172 )
 
                        

 

 

PINNACLE WEST CAPITAL CORPORATION
NON-GAAP MEASURE RECONCILIATION — OPERATING INCOME (GAAP MEASURE) TO GROSS MARGIN (NON-GAAP MEASURE)
(in thousands)
                                 
    SIX MONTHS ENDED     Pretax     After Tax  
    JUNE 30,     Increase     Increase  
    2005     2004     (Decrease)     (Decrease)  
RECONCILIATION OF REGULATED ELECTRICITY SEGMENT GROSS MARGIN
                                
Operating Income (closest GAAP measure)
   $ 270,981     $ 207,445     $ 63,536     $ 38,611  
Plus:
                                
Operations and maintenance
     308,181       275,981       32,200       19,568  
Real estate segment operations
     125,069       109,510       15,559       9,455  
Depreciation and amortization
     176,535       203,115       (26,580 )     (16,153 )
Taxes other than income taxes
     69,203       62,638       6,565       3,990  
Other expenses
     25,930       16,325       9,605       5,837  
Marketing and trading segment purchased power and fuel
     128,402       155,832       (27,430 )     (16,669 )
Less:
                                
Real estate segment revenues
     156,809       116,547       40,262       24,467  
Other revenues
     30,394       20,319       10,075       6,123  
Marketing and trading segment revenues
     160,429       198,840       (38,411 )     (23,342 )
 
                        
 
                                
Regulated electricity segment gross margin
   $ 756,669     $ 695,140     $ 61,529     $ 37,391  
 
                        
 
                                
RECONCILIATION OF MARKETING AND TRADING SEGMENT GROSS MARGIN
                                
Operating Income (closest GAAP measure)
   $ 270,981     $ 207,445     $ 63,536     $ 38,611  
Plus:
                                
Operations and maintenance
     308,181       275,981       32,200       19,568  
Real estate segment operations
     125,069       109,510       15,559       9,455  
Depreciation and amortization
     176,535       203,115       (26,580 )     (16,153 )
Taxes other than income taxes
     69,203       62,638       6,565       3,990  
Other expenses
     25,930       16,325       9,605       5,837  
Regulated electricity segment purchased power and fuel
     239,013       240,253       (1,240 )     (754 )
Less:
                                
Real estate segment revenues
     156,809       116,547       40,262       24,467  
Other revenues
     30,394       20,319       10,075       6,123  
Regulated electricity segment revenues
     995,682       935,393       60,289       36,638  
 
                        
 
                                
Marketing and trading segment gross margin
   $ 32,027     $ 43,008     $ (10,981 )   $ (6,674 )