Business Context and Reporting Period
This Form 8-K is a combined current report filed by Pinnacle West Capital Corporation and its subsidiary, Arizona Public Service Company (APS). The report covers the fiscal quarter ended June 30, 2005, with the filing date of July 27, 2005. The document serves to disclose results of operations, financial condition, and Regulation FD disclosures regarding the quarter.
Key Financial Metrics
The filing text does not provide specific numerical values for revenue, profit, cash flow, margins, debt, or liquidity. These figures are contained within attached exhibits (specifically Exhibits 99.2, 99.3, 99.7, and 99.9) which are referenced but not included in the provided text.
- GAAP Measure: Net Income (specific value not provided in text).
- Non-GAAP Measure: "On-going earnings" and "on-going earnings per share" are utilized to exclude unusual items for period-to-period comparability.
- Reconciliation: Exhibit 99.9 contains a reconciliation table between Net Income (GAAP) and On-going Earnings (Non-GAAP).
Material Changes and Variance Explanations
The filing references Exhibit 99.7 for "earnings variance explanations" comparing the periods ended June 30, 2005, and 2004. While the text confirms that variance explanations and condensed consolidated statements of income for the three and six months ended June 30, 2005, and 2004, are available, the specific drivers of change (e.g., volume, price, cost variances) are not detailed in the main body of this report.
Guidance, Outlook, and Management Commentary
Management Commentary: Management utilizes "on-going earnings" internally to measure performance, believing it provides a useful indicator of results by excluding irregular unusual items. The company notes that these non-GAAP measures involve management judgment regarding the classification of unusual items.
Forward-Looking Information: The report includes a disclaimer regarding the statistical summaries and earnings variance explanations provided in the exhibits. The company states that some information is preliminary and subject to significant adjustment. Furthermore, the company assumes no obligation to update or correct this information and reserves the right to discontinue its provision at any time.
Risks and Contingencies: The filing notes that the information provided may not represent all factors affecting operating or financial results. Additionally, some data is based on third-party information and may contain inaccuracies for which the company is not responsible.
Investor Verification Checklist
- Verify specific Net Income and On-going Earnings figures in Exhibit 99.9 (Earnings News Release).
- Review Exhibit 99.7 for detailed earnings variance explanations comparing Q2 2005 to Q2 2004.
- Examine the reconciliation table in Exhibit 99.9 to understand the specific "unusual items" excluded from on-going earnings.
- Check Exhibit 99.2 for the quarterly consolidated statistical summary containing revenue and margin data.
- Confirm if any preliminary data referenced in the exhibits has been subsequently adjusted or corrected.