EXHIBIT 99.1
For Immediate Release
Cleco Corporation Reports Increased First Quarter 2002 Earnings
PINEVILLE, La., April 30, 2002 -- Cleco Corp. (NYSE, PCX: CNL) today reported higher consolidated diluted earnings per share for the quarter ended March 31, 2002.
David Eppler, Cleco president and CEO, said, "We were very pleased with how our regulated utility helped drive a $0.07 per share increase over last year's first-quarter results. We were equally pleased with the continued expansion of our wholesale energy business.
"As we announced last month, we have an agreement to purchase Mirant's half of the 725-megawatt power plant we are building as a joint venture in Perryville, La. And our energy marketing arm just recently began providing energy management services to two small communities in Mississippi," Eppler said.
"Both of those deals expand our midstream business and demonstrate our employees' ability to quickly assess and seize opportunities in today's constantly evolving market without sacrificing our creditworthiness," he said. "We've decided to issue up to 2 million shares of common stock to fund the purchase of Mirant's Perryville interest rather than the 1 million we had originally planned. It's a clear signal of our strong commitment to credit quality. We anticipate completing the Perryville purchase during the second quarter."
| | Diluted Earnings per Share |
| | Three Months Ended March 31, |
Subsidiary | 2002 | 2001 |
Cleco Power LLC | $0.30 | $0.19 |
Cleco Midstream Resources LLC | 0.01 | 0.07 |
Corporate and Other | (0.02) | (0.01) |
Earnings from continuing operations | $0.29 | $0.25 |
Discontinued operations | -- | (0.03) |
Earnings applicable to common stock | $0.29 | $0.22 |
News Release
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All historical per share figures reflect a two-for-one stock split effective May 7, 2001.
Detailed Financial Results For the Quarter:
Cleco Power LLC
Higher revenues and reduced expenses pushed Cleco Power's first-quarter earnings up $0.11 per share from a year earlier. Nonfuel-related revenues at Cleco Power increased overall $0.06 per share. Of that, approximately $0.03 per share was due to service to two new wholesale customers (one which began service in June 2001 and the other whose service started January 2002), $0.01 per share came through slightly higher revenues from trading activities, and the remaining $0.02 per share was a variance caused by a change in billing processes implemented in the fourth quarter of 2001.
Expenses at Cleco Power were down $0.04 per share overall from last year's levels, reflecting timing changes and are expected to accelerate in later quarters. Cleco Power also benefited $0.01 per share from lower interest costs during the first quarter.
Cleco Midstream Resources LLC
Midstream operations added $0.01 per share to corporate earnings during the first quarter of 2002, compared to a $0.07 per share contribution for the same period of 2001. The difference was primarily attributable to a $0.07 lower earnings per share contribution from Midstream's marketing and trading activities in the first quarter of 2002. Other factors affecting Midstream's first-quarter earnings included Cleco Evangeline contributing $0.03 per share, offset by $0.02 per share of other operations and asset development activities. By comparison, Cleco Evangeline contributed $0.02 per share during the first quarter of 2001, which was also offset by $0.02 in other operations and asset development costs.
Other
Corporate and other expenses reduced net earnings $0.02 per share for the quarter, $0.01 per share more than the loss recorded in first quarter 2001 because of higher administrative costs. A loss of $0.03 per share was recognized from the disposal of UTS, LLC (formerly known as Utility Construction & Technology Solutions LLC) during the first quarter of 2001. Substantially all of the assets of UTS, LLC were sold on March 31, 2001, and the subsidiary had no impact on 2002 first-quarter earnings.
Reconciliation of First Quarter EPS 2002 vs. 2001: |
| | | |
$0.22 | | 2001 First Quarter Diluted EPS |
0.06 | | Higher Cleco Power nonfuel revenue |
0.04 | | Lower Cleco Power expenses |
0.01 | | Lower Cleco Power interest expense |
0.01 | | Higher contribution from Cleco Evangeline LLC |
(0.07) | | Lower Cleco Midstream marketing and trading revenue |
(0.01) | | Corporate and other, net |
$0.26 | | |
0.03 | | Lower recorded losses from UTS |
$0.29 | | 2002 First Quarter Diluted EPS |
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2002 Update
Eppler said, "Cleco Power's results during the first quarter were satisfying. As we said in January, our goal this year is to achieve Cleco Power earnings equal to those achieved during 2001, when we benefited from additional fuel recovery revenue attributable to previous periods. So, we'll have to build on first-quarter results by very carefully controlling expenses for the rest of the year in order to meet our target. And summer weather will certainly impact our ability to deliver on our objectives.
"Further, we continue to expect the Acadia and Perryville power projects to contribute about $0.16 per share to earnings this year after beginning commercial operations in July. Construction at both facilities continues to proceed well."
Cleco management will discuss the company's 2002 first quarter results during a conference call scheduled for 11 a.m. EDT (10 a.m. CDT) Wednesday, May 1, 2002. The call will be broadcast live on the Internet, and replays will be available for 90 days. Investors may access the webcast at http://www.shareholder.com/cnl.
Cleco's businesses referred to in this news release are:
Cleco Power LLC
Cleco Midstream Resources LLC
Cleco Evangeline LLC
UTS, LLC (formerly known as Utility Construction & Technology Solutions LLC)
Other (Cleco Corporation; Cleco Support Group LLC)
Cleco Corporation is a regional energy services company headquartered in Pineville, La. It operates a nonregulated midstream energy business that has approximately 1,700 megawatts of generating capacity either in operation or under construction. Cleco also operates a regulated electric utility company that serves more than 250,000 customers across Louisiana. For more information about Cleco, visitwww.cleco.com.
Financial tables follow:
News Release
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CLECO CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except share and per share amounts)
(unaudited)
Three Months Ended March 31 | 2002 | 2001 |
| | |
OPERATING REVENUES | | |
Retail electric operations, net | $ 121,962 | $ 149,277 |
Energy trading | 71,600 | 56,481 |
Energy operations | 20,257 | 40,623 |
Other operations | 6,795 | 6,736 |
Gross Operating Revenues | 220,614 | 253,117 |
Retail electric customer credits | (350) | -- |
Total Operating Revenues | 220,264 | 253,117 |
| | |
OPERATING EXPENSES | | |
Fuel used for electric generation | 26,460 | 60,372 |
Power purchased for utility customers | 32,023 | 30,224 |
Purchases for energy trading | 70,588 | 55,999 |
Purchases for energy operations | 7,740 | 21,402 |
Operations and maintenance | 25,357 | 27,733 |
Depreciation | 14,948 | 15,400 |
Taxes other than income taxes | 10,078 | 9,504 |
Total Operating Expenses | 187,194 | 220,634 |
| | |
OPERATING INCOME | 33,070 | 32,483 |
Interest expense and AFUDC, net | (11,812) | (15,039) |
Other income, net | 897 | 780 |
| | |
NET INCOME FROM CONTINUING OPERATIONS BEFORE | | |
INCOME TAXES AND PREFERRED DIVIDENDS | 22,155 | 18,224 |
Federal and state income tax expense | 8,102 | 6,124 |
Net income from continuing operations | 14,053 | 12,100 |
Discontinued operations | | |
Loss from disposal of segment, net of income taxes | -- | 1,406 |
Total discontinued operations | -- | 1,406 |
Net income before preferred dividends | 14,053 | 10,694 |
Preferred dividend requirements, net | 472 | 473 |
Net income applicable to common stock | $ 13,581 | $ 10,221 |
| ======= | ======= |
Earnings per share | | |
Basic | | |
Net income from continuing operations | $ 0.30 | $ 0.26 |
Discontinued operations | $ -- | $ (0.03) |
Net income applicable to common stock | $ 0.30 | $ 0.23 |
Diluted | | |
Net income from continuing operations | $ 0.29 | $ 0.25 |
Discontinued operations | $ -- | $ (0.03) |
Net income applicable to common stock | $ 0.29 | $ 0.22 |
| | |
Average number of shares outstanding | | |
Basic | 44,973,466 | 45,005,892 |
Diluted | 47,663,219 | 47,896,408 |
| | |
Cash dividends paid per share of common stock | $ 0.22 | $ 0.2125 |
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CLECO CORPORATION
CONSOLIDATED BALANCE SHEETS
(In thousands)
(unaudited)
| | March 31,
2002 | March 31,
2001 |
| | | |
Assets | | |
Current assets | | |
Cash and cash equivalents | $ 2,120 | $ 7,803 |
Accounts receivable, net | 84,784 | 75,452 |
Other current assets | 76,789 | 86,607 |
Total current assets | 163,693 | 169,862 |
Property, plant and equipment, net | 1,225,255 | 1,235,905 |
Prepayments, deferred charges and other | 397,589 | 276,972 |
Total Assets | $ 1,786,537 | $ 1,682,739 |
| | ======== | ======== |
Liabilities and Shareholders' Equity | | |
Liabilities | | |
Current liabilities | | |
Short-term debt | $ 217,856 | $ 138,784 |
Accounts payable | 86,295 | 67,950 |
Other current liabilities | 55,189 | 55,784 |
Total current liabilities | 359,340 | 262,518 |
Deferred credits and other liabilities | 275,642 | 280,600 |
Long-term debt, net | 638,568 | 657,693 |
Total liabilities | 1,273,550 | 1,200,811 |
Shareholders' equity | | |
Common stock | 496,059 | 466,150 |
Preferred stock | 16,928 | 15,871 |
Other comprehensive income | -- | (93) |
Total shareholders' equity | 512,987 | 481,928 |
Total Liabilities and Shareholders' Equity | $ 1,786,537 | $ 1,682,739 |
| | ======== | ======== |
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Please note: In addition to historical financial information, this news release contains forward-looking statements about future results and circumstances with respect to which there are many risks and uncertainties, including the weather and other natural phenomena, state and federal legislative and regulatory initiatives, the timing and extent of changes in commodity prices and interest rates, the operating performance of Cleco Power's and Midstream's facilities, and the other risks and uncertainties more fully described in the Company's latest Annual Report on Form 10-K. Actual results may differ materially from those indicated in such forward-looking statements.
This news release does not constitute an offer to sell or the solicitation of an offer to buy any securities of Cleco Corporation, nor will there be any sale of any such securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state. Any offering of securities of Cleco Corporation will be made only by means of a final prospectus.
