Exhibit 99.2
For further information:
Nancy Morovich, VP, Investor Relations
Phone 504/576-5506, Fax 504/576-2897
INVESTOR NEWS &nb sp; nmorovi@entergy.com
July 28, 2003
ENTERGY REPORTS SECOND QUARTER EARNINGS
NEW ORLEANS - Entergy Corporation reported second quarter 2003 earnings of $0.89 per share compared with $1.06 in the same period of 2002, reflecting a loss provision of $(0.28) per share related to the River Bend Nuclear Power Plant. Entergy's earnings on an operational basis were $1.17 per share which equaled operational earnings for second quarter 2002.
Entergy generated $475 million in operating cash flow in second quarter 2003 compared to $449 million in the same period of 2002. The increase was due primarily to higher levels of deferred fuel cost recovery in the current quarter compared to one year ago and the receipt in second quarter 2003 of a dividend from Entergy-Koch, LP. Both of these items were partially offset by higher cash expenditures at Entergy Nuclear in connection with planned refueling outages.
"Operating results reflect the structural stability we've worked to build into our business over the past five years," saidJ. Wayne Leonard, Entergy's chief executive officer. "Strong execution and results at Entergy-Koch, which is the business specifically structured to manage risks, overcame the temporary impacts of mild weather and nuclear outages we experienced this quarter. We are confident in our ability to achieve continued strong financial results, and in turn, to produce top quartile returns for our shareholders."
Table 1 provides a comparative summary of earnings per share for second quarter and year-to-date 2003.
Table 1: Entergy Corporation Consolidated Results | ||||||
Second Quarter and Year-to-Date 2003 vs. 2002 | ||||||
(Per share in U.S. $) | ||||||
Second Quarter | Year-to-Date | |||||
2003 | 2002 | $ Change | 2003 | 2002 | $ Change | |
As-Reported | ||||||
U.S. Utility | 0.53 | 0.85 | (0.32) | 1.00 | 1.31 | (0.31) |
Parent & Other | (0.04) | (0.02) | (0.02) | (0.06) | (0.05) | (0.01) |
Competitive Businesses | 0.40 | 0.23 | 0.17 | 1.67 | (0.54) | 2.21 |
Consolidated Earnings | 0.89 | 1.06 | (0.17) | 2.61 | 0.72 | 1.89 |
Less Special Items | ||||||
U.S. Utility | (0.28) | - | (0.28) | (0.38) | - | (0.38) |
Parent & Other | - | - | - | - | - | - |
Competitive Businesses | - | (0.11) | 0.11 | 0.70 | (1.26) | 1.96 |
Total | (0.28) | (0.11) | (0.17) | 0.32 | (1.26) | 1.58 |
Operational | ||||||
U.S. Utility | 0.81 | 0.85 | (0.04) | 1.38 | 1.31 | 0.07 |
Parent & Other | (0.04) | (0.02) | (0.02) | (0.06) | (0.05) | (0.01) |
Competitive Businesses | 0.40 | 0.34 | 0.06 | 0.97 | 0.72 | 0.25 |
Consolidated Earnings | 1.17 | 1.17 | - | 2.29 | 1.98 | 0.31 |
Weather Impact | (0.03) | - | (0.03) | (0.01) | 0.03 | (0.04) |
I.U.S. Utility
In second quarter 2003, Utility as-reported earnings were $0.53 per share, compared to $0.85 in second quarter 2002. Second quarter 2003 as-reported earnings include a loss provision of $(0.28) per share related to an unfavorable decision in Texas on previously disallowed River Bend construction costs. On an operational basis, as-reported earnings were $0.81 in second quarter 2003 compared to $0.85 last year. The decrease resulted primarily from lower net revenues due to milder weather and decreased sales in the industrial sector. Operation and maintenance expenses were significantly lower during second quarter 2003 due primarily to the absence in 2003 of ice storm expenses recorded in second quarter 2002 as a result of a settlement reached with the Arkansas Public Service Commission. The 2002 net income impact of this regulatory settlement was essentially zero, because revenues were recorded at the same time. After excluding the effect of the ice stor m settlement, operation and maintenance expenses were essentially flat in second quarter 2003 compared to the same period in 2002.
Usage in the residential sector was essentially flat in second quarter 2003 compared to second quarter 2002. Commercial and governmental sales were up slightly, while industrial sales experienced a 7 percent decline quarter over quarter. The decline in industrial sales reflects the loss of three industrial customers to cogeneration since second quarter 2002. A summary of sales volumes by customer class is included in Appendix A to this release.
Table 2 provides a summary of the Utility's key operational measures with quarter-to-quarter and year-to-date comparisons.
Table 2: Utility Operational Performance Measures | ||||||
Second Quarter and Year-to-Date 2003 vs. 2002(see appendix D for definitions of measures) | ||||||
Second Quarter | Year-to-Date | |||||
2003 | 2002 | % Change | 2003 | 2002 | % Change | |
Utility | ||||||
Generation in GWh | 19,915 | 22,698 | -12% | 38,446 | 43,729 | -12% |
GWh billed | ||||||
Residential | 7,170 | 7,202 | -0.4% | 15,013 | 14,476 | 4% |
Commercial and governmental | 6,828 | 6,766 | 1% | 13,283 | 12,981 | 2% |
Industrial | 9,556 | 10,294 | -7% | 18,880 | 19,884 | -5% |
Operation & maintenance expense | $19.30 | $23.87 | -19% | $19.03 | $20.46 | -7% |
Reliability | ||||||
SAIFI (number, annualized) | 1.64 | 2.00 | -18% | |||
SAIDI (minutes, annualized) | 138 | 151 | -9% | |||
Reliability complaints | 19 | 24 | -21% | 33 | 38 | -13% |
Safety | 7 | 3 | 133% | 9 | 11 | -18% |
Number of customers | ||||||
Residential | 2,245,428 | 2,233,198 | 1% | |||
Commercial & governmental | 320,006 | 315,675 | 1.4% | |||
Industrial | 39,986 | 39,455 | 1.3% | |||
The Utility continues to pursue rate mechanisms that reward operating excellence. Such efforts resulted in Entergy New Orleans, Inc. obtaining a base rate increase of $30.2 million in second quarter 2003. Appendix C provides a summary of the Utility's pending key regulatory events and regulatory recovery mechanisms by operating subsidiary.
II.Parent & Other
Parent & Other recorded an as-reported loss per share of $(0.04) in second quarter 2003, compared with a loss of $(0.02) in second quarter 2002. Operational results in each period equaled as-reported results. The loss in second quarter 2003 was due primarily to higher interest expense reflecting the impact of Parent term debt, totaling $500 million, issued since December 2002 at an average coupon rate of 7.2 percent.
III.Competitive Businesses
As-reported earnings were $0.40 per share for the competitive businesses in second quarter 2003, compared to $0.23 in the same period of 2002. As-reported earnings in 2002 reflected a charge totaling $(0.11) per share for asset impairments and restructuring expenses in the non-nuclear wholesale assets business. On an operational basis, second quarter 2003 earnings per share were $0.40 compared to $0.34 in 2002. The 18 percent increase in second quarter 2003 reflects strong performance at Energy Commodity Services which more than offset the negative impact of refueling outages at Entergy Nuclear.
Table 3 provides a 2003 vs. 2002 comparison of contributions by competitive business for second quarter and year-to-date, on both as-reported and operational bases.
Table 3: Competitive Businesses Contributions to Earnings Per Share | ||||||
Second Quarter and Year-to-Date 2003 vs. 2002 | ||||||
(Per share in U.S. $) | ||||||
Second Quarter | Year-to-Date | |||||
2003 | 2002 | $ Change | 2003 | 2002 | $ Change | |
As-Reported | ||||||
Entergy Nuclear | 0.19 | 0.24 | (0.05) | 1.05 | 0.42 | 0.63 |
Energy Commodity Services | ||||||
Non-nuclear wholesale assets | (0.01) | (0.07) | 0.06 | (0.01) | (1.24) | 1.23 |
Entergy-Koch Trading | 0.19 | 0.03 | 0.16 | 0.56 | 0.17 | 0.39 |
Gulf South Pipeline | 0.03 | 0.03 | - | 0.07 | 0.11 | (0.04) |
Total Energy Commodity Services | 0.21 | (0.01) | 0.22 | 0.62 | (0.96) | 1.58 |
Total | 0.40 | 0.23 | 0.17 | 1.67 | (0.54) | 2.21 |
Less Special Items | ||||||
Entergy Nuclear | - | - | - | 0.70 | - | 0.70 |
Energy Commodity Services | ||||||
Non-nuclear wholesale assets | - | (0.11) | 0.11 | - | (1.26) | 1.26 |
Entergy-Koch Trading | - | - | - | - | - | - |
Gulf South Pipeline | - | - | - | - | - | - |
Total Energy Commodity Services | - | (0.11) | 0.11 | - | (1.26) | 1.26 |
Total | - | (0.11) | 0.11 | 0.70 | (1.26) | 1.96 |
Operational | ||||||
Entergy Nuclear | 0.19 | 0.24 | (0.05) | 0.35 | 0.42 | (0.07) |
Energy Commodity Services | ||||||
Non-nuclear wholesale assets | (0.01) | 0.04 | (0.05) | (0.01) | 0.02 | (0.03) |
Entergy-Koch Trading | 0.19 | 0.03 | 0.16 | 0.56 | 0.17 | 0.39 |
Gulf South Pipeline | 0.03 | 0.03 | - | 0.07 | 0.11 | (0.04) |
Total Energy Commodity Services | 0.21 | 0.10 | 0.11 | 0.62 | 0.30 | 0.32 |
Total | 0.40 | 0.34 | 0.06 | 0.97 | 0.72 | 0.25 |
Table 4 provides a summary of Entergy's non-utility generation in MWh sold forward for the years 2003, 2004, and 2005. During the first two quarters of 2003, Entergy entered into eight new contracts for Entergy Nuclear plant output. Transaction terms range from 2004 to 2008. These transactions cover more than 2 million and 4 million megawatt hours in 2004 and 2005, respectively.
Table 4: Competitive Businesses Percent of Generation Sold Forward | |||
Remainder of 2003 through 2005(see appendix D for definitions of measures) | |||
Remainder of | |||
2003 | 2004 | 2005(a) | |
Entergy Nuclear | |||
Planned TWh of generation | 17 | 33 | 34 |
Percent of total planned competitive generation | 91% | 91% | 91% |
Percent of EN's total planned generation sold forward: | |||
Contracts entered into prior to second quarter 2003 | 100% | 93% | 30% |
New contracts in second quarter 2003 | 0% | 5% | 9% |
Total EN planned generation sold forward | 100% | 98% | 39% |
Percent of EN's total planned generation sold forward by contract type | |||
Unit-contingent | 55% | 56% | 21% |
Unit-contingent with capacity factor guarantees | 45% | 42% | 14% |
Firm liquidated damages (LD) | 0% | 0% | 4% |
Total | 100% | 98% | 39% |
Average contract price per MWh | $37 | $38 | $37 |
Average assumed market price per MWh | $47 | $41 | $39 |
Energy Commodity Services | |||
Planned TWh of generation | 2 | 3 | 3 |
Percent of total planned competitive generation | 9% | 9% | 9% |
Percent of ECS' total planned generation sold forward | 54% | 64% | 61% |
Average contract spark spread per MWh | $10 | $10 | $10 |
Average assumed market spark spread per MWh | $0 | $0 | $0 |
Total Competitive Businesses' planned generation sold forward | 96% | 95% | 41% |
(a) Two percent of EN's total planned generation sold forward in 2005 is associated with the Vermont Yankee contract for which pricing may be adjusted.
Entergy Nuclear
Entergy Nuclear (EN) earned $0.19 per share, compared to $0.24 in second quarter 2002. The decrease was due primarily to lower generation available for sale as the result of two planned refueling outages and several short unplanned outages. In second quarter 2002, there were no refueling outages. The contribution in 2003 of Vermont Yankee, acquired in July 2002, served to offset somewhat the negative impact of outages during the quarter. EN's average capacity factor was 84.1 percent for second quarter 2003, compared to 98.5 percent for the same period in 2002. Adjusting for the impact of planned refueling outages, EN's capacity factor for second quarter 2003 would have been approximately 95 percent.
Average production costs increased modestly quarter to quarter due to higher amortized refueling outage expenses resulting from additional planned refueling outages. Excluding the impact of these higher amortization expenses, average production costs for second quarter 2003 was less than $19 per megawatt hour. For the years 2003 and 2004, EN has sold 100 percent and 98 percent, respectively, of the output of its generating assets at average prices per megawatt hour of $37 in 2003 and $38 in 2004. In addition, 39 percent of 2005 output is currently under contract at an average price of $37 per megawatt hour.
Table 5 provides a summary of Entergy Nuclear's key operational measures with quarter-to-quarter and year-to-date comparisons.
Table 5: Entergy Nuclear Operational Performance Measures | ||||||
Second Quarter and Year-to-Date 2003 vs. 2002(see appendix D for definitions of measures) | ||||||
Second Quarter | Year-to-Date | |||||
2003 | 2002 | % Change | 2003 | 2002 | % Change | |
Entergy Nuclear | ||||||
Net MW in operation | 3,955 | 3,445 | 15% | |||
Average realized price per MWh | 39.78 | 39.88 | - | |||
Production cost per MWh | 20.85 | 19.40 | 7% | 22.26 | 19.51 | 14% |
Generation in GWh | 7,342 | 7,449 | -1% | 15,435 | 14,958 | 3% |
Capacity factor | 84.1% | 98.5% | -15% | 88.9% | 99.4% | -11% |
Refueling outage duration | Current Period |
|
| |||
Indian Point 3(b) | 26 | 26 | - | |||
Pilgrim | 24 | 28 | -14% | |||
(b) Indian Point 3 began its scheduled refueling outage on March 28, 2003.
Energy Commodity Services
Energy Commodity Services (ECS) includes earnings contributions from Entergy-Koch, LP and Entergy's non-nuclear wholesale assets business. ECS recorded as-reported earnings of $0.21 per share in second quarter 2003, compared to a loss of $(0.01) in the same period last year. The significant improvement in results reported by ECS in 2003 was due primarily to strong earnings in trading and the absence in 2003 of charges recorded in second quarter 2002 for asset impairments and restructuring expenses in the non-nuclear wholesale assets business.
Operational earnings in second quarter 2003 were $0.21, compared to $0.10 in the same period of 2002, reflecting substantially higher earnings at Entergy-Koch Trading (EKT), a subsidiary of Entergy-Koch, LP. Compared to second quarter 2002, EKT's trading results reflected substantially higher earnings in point-of-view trading. In addition, the contribution from financial optimization more than doubled while earnings from physical optimization activities increased by more than 60 percent, both as compared to second quarter 2002. Earnings at Entergy-Koch's gas transportation subsidiary, Gulf South Pipeline, were $0.03 per share which equaled the performance of second quarter 2002. Improved transportation margins and storage fees served to offset lower throughput and higher production cost during the quarter to produce the flat pipeline earnings. The income sharing mechanisms that are part of the Entergy-Koch partnership agreement allocated substantially all of the partnership's income to Entergy in second quarter 2003.
Average Daily Earnings at Risk (DEAR) during second quarter 2003 increased to $12.9 million when compared to second quarter 2002, reflecting the strength of EKT's point-of-view and the additional capital employed consistent with that point-of-view. However, DEAR decreased compared to first quarter 2003, reflecting significantly lower market volatility in the current period. In addition to DEAR, EKT employs other risk measures that test whether or not overall risk is within acceptable limits. All of these measures were managed in accordance with established trading policies and procedures during the quarter.
The duration of EKT's trading book continues to be relatively short, with essentially all of the mark-to-market value converting to cash by the end of 2003. Further, essentially all of the total market value of EKT's mark-to-market portfolio is based on actively quoted prices, and approximately 95 percent of EKT's counterparty credit exposure is associated with companies that currently have investment-grade credit ratings. Lastly, mark-to-market earnings comprised 16 percent of Entergy's consolidated operational earnings for second quarter 2003.
Table 6 provides a summary of Energy Commodity Services' key operational measures with quarter-to-quarter and year-to-date comparisons.
Table 6: Energy Commodity Services Operational Performance Measures | ||||||
Second Quarter and Year-to-Date 2003 vs. 2002(see appendix D for definitions of measures) | ||||||
Second Quarter | Year-to-Date | |||||
2003 | 2002 | % Change | 2003 | 2002 | % Change | |
Entergy-Koch Trading | ||||||
Electricity volatility | 52% | 51% | 2% | 72% | 45% | 60% |
Gas volatility | 45% | 54% | -17% | 71% | 67% | 6% |
Electricity marketed (GWh) (c) | 100,865 | 90,178 | 12% | 224,345 | 176,270 | 27% |
Gas marketed (Bcf/d) (c) | 5.3 | 5.8 | -9% | 6.6 | 5.6 | 18% |
Gain/loss days | 1.4 | 1.7 | -18% | 1.4 | 1.9 | -26% |
Daily average earnings at risk | 12.9 | 10.4 | 24% | 16.2 | 9.3 | 74% |
Low daily earnings at risk | 7.6 | 8.2 | -7% | 7.6 | 6.6 | 15% |
High daily earnings at risk | 16.6 | 14.7 | 13% | 35.2 | 14.7 | 139% |
Gulf South Pipeline | ||||||
Throughput (Bcf/d) | 1.90 | 2.31 | -18% | 2.10 | 2.50 | -16% |
Production cost ($/mmbtu) | $0.138 | $0.096 | 44% | $0.123 | $0.084 | 46% |
Non-Nuclear Wholesale Assets | ||||||
Net MW in operation | 1,421 | 1,209 | 18% | |||
Generation in GWh | 567 | 279 | 103% | |||
Net MW under construction | 385 | 597 | -36% | |||
(c) Previously reported volumes, which included only U.S. trading, have been adjusted to reflect both U.S. and Europe volumes traded.
Table 7 provides additional details on Entergy-Koch's trading activities during second quarter 2003.
Table 7: Entergy-Koch Trading Details(see appendix D for definitions of measures) | ||||
2003 | ||||
Changes in Fair Value of Trading Contracts | ||||
Fair value of contracts outstanding at December 31, 2002 after implementation of EITF 02-03 | 90.9 | |||
(Gain)/Loss from contracts realized/settled during the period | (309.4) | |||
Initial recorded value of contracts entered into during the period | 1.1 | |||
Net option premiums received during the period | 82.7 | |||
Change in fair value of contracts attributable to market movements during the period | 319.0 | |||
Other changes in fair value | 0.0 | |||
Net change in contracts outstanding during the period | 93.4 | |||
Fair value of contracts outstanding at June 30, 2003 | 184.3 | |||
Counterparty Credit Exposure | 2003 | |||
AAA | 0.3 | |||
AA | 24.8 | |||
A | 33.6 | |||
BBB | 35.7 | |||
Non-investment grade/Not rated | 5.6 | |||
2003 | 2002 | Change | ||
Balance Sheet($ in millions) | ||||
Mark-to-market accounting detail: | ||||
Fair value of contracts at end of period | 184 | 132 | 52 | |
Partners' capital | 1,245 | 1,098 | 147 | |
Fair value of contracts as percent of partners' capital | 14.8% | 12.0% | 23.3% | |
2003 | 2004 | 2005+ | Total | |
Maturities and Sources for Fair Value of Trading Contracts at | ||||
Prices actively quoted | 224.0 | 0.4 | -14.3 | 210.1 |
Prices provided by other sources | -43.3 | 26.1 | 14.8 | -2.4 |
Prices based on models | 20.6 | -20.4 | -23.6 | -23.4 |
Total | 201.3 | 6.1 | -23.1 | 184.3 |
IV.Variance Analysis
Tables 8 and 9 provide second quarter and year-to-date 2003 vs. 2002 earnings variance analyses for "U.S. Utility, Parent & Other," "Competitive Businesses," and "Consolidated."
Table 8: Entergy Corporation Reported Earnings Per Share Variance Analysis | |||||||
Second Quarter 2003 vs. 2002 | |||||||
(Per share in U.S. $, sorted in consolidated | |||||||
column, most to least favorable) | U.S. Utility, | Competitive | |||||
Parent & Other | Businesses | Consolidated | |||||
2002 earnings | 0.83 | 0.23 | 1.06 | ||||
Other operation & maintenance expense | 0.42 | (d) | (0.01) | 0.41 | |||
Asset/contract impairments and restructuring charges | - | 0.11 | (e) | 0.11 | |||
Interest expense and other charges | - | 0.04 | (f) | 0.04 | |||
Interest and dividend income | - | 0.01 | 0.01 | ||||
Depreciation/amortization expense | (0.01) | 0.01 | - | ||||
Share repurchase/dilution effect | (0.01) | - | (0.01) | ||||
Income taxes - other | 0.06 | (g) | (0.07) | (g) | (0.01) | ||
Nuclear refueling outage expense | - | (0.04) | (h) | (0.04) | |||
Decommissioning expense | (0.04) | (i) | (0.01) | (0.05) | |||
Taxes other than income taxes | (0.03) | (0.02) | (0.05) | ||||
Other income (deductions) | (0.30) | (j) | 0.17 | (k) | (0.13) | ||
Net revenue | (0.43) | (l) | (0.02) | (0.45) | |||
2003 earnings | 0.49 | 0.40 | 0.89 | ||||
Table 9: Entergy Corporation Reported Earnings Per Share Variance Analysis | |||||||
Year-to-Date 2003 vs. 2002 | |||||||
(Per share in U.S. $, sorted in consolidated | |||||||
column, most to least favorable) | U.S. Utility, | Competitive | |||||
Parent & Other | Businesses | Consolidated | |||||
2002 earnings | 1.26 | (0.54) | 0.72 | ||||
Asset/contract impairments and restructuring charges | - | 1.26 | (e) | 1.26 | |||
Cumulative effect of accounting changes | (0.09) | (m) | 0.72 | (m) | 0.63 | ||
Other operation & maintenance expense | 0.45 | (d) | (0.02) | 0.43 | |||
Other income (deductions) | (0.29) | (i) | 0.36 | (k) | 0.07 | ||
Interest expense and other charges | (0.03) | 0.09 | (f) | 0.06 | |||
Interest and dividend income | 0.02 | - | 0.02 | ||||
Income taxes - other | 0.06 | (g) | (0.04) | (g) | 0.02 | ||
Depreciation/amortization expense | (0.03) | 0.01 | (0.02) | ||||
Share repurchase/dilution effect | (0.01) | (0.02) | (0.03) | ||||
Taxes other than income taxes | (0.02) | (0.02) | (0.04) | ||||
Nuclear refueling outage expense | - | (0.08) | (h) | (0.08) | |||
Decommissioning expense | (0.08) | (i) | (0.02) | (0.10) | |||
Net revenue (loss) | (0.30) | (l) | (0.03) | (0.33) | |||
2003 earnings | 0.94 | 1.67 | 2.61 | ||||
Footnotes to Tables 8 and 9 follow:
Utility Net Revenue Variance Analysis, 2003 vs. 2002 ($ EPS) | |||
Second Quarter | Year-to-Date | ||
Weather | (0.03) | Weather | (0.04) |
Sales growth/pricing-net | - | Sales growth/pricing-net | 0.09 |
Ice Storm/TCA Regulatory settlement | (0.41) | Ice Storm/TCA Regulatory settlement | (0.41) |
Regulatory credit | 0.03 | Regulatory credit | 0.06 |
Other | (0.02) | Other | - |
Total | (0.43) | Total | (0.30) |
Table 10 lists special items by business with quarter-to-quarter and year-to-date comparisons. Special items are those events that are not routine, are related to prior periods, or are related to discontinued businesses. Special items are included in as-reported earnings per share results but are excluded from operational earnings per share. The timing of recording such items is made in accordance with generally accepted accounting principles.
Table 10: Entergy Special Items [shown as positive / (negative) impact on earnings] | |||||||
Second Quarter and Year-to-Date 2003 vs. 2002 | |||||||
(Per share in U.S. $) | Second Quarter | Year-to-Date | |||||
2003 | 2002 | $ Change | 2003 | 2002 | $ Change | ||
U.S. Utility Special Items | |||||||
River Bend loss provision | (0.28) | - | (0.28) | (0.29) | - | (0.29) | |
SFAS 143 implementation | - | - | - | (0.09) | - | (0.09) | |
Total | (0.28) | - | (0.28) | (0.38) | - | (0.38) | |
Parent & Other Special Items | |||||||
Total | - | - | - | - | - | - | |
Competitive Businesses Special Items | |||||||
Entergy Nuclear | |||||||
SFAS 143 implementation | - | - | - | 0.70 | - | 0.70 | |
Energy Commodity Services | |||||||
Asset impairments | - | (0.04) | 0.04 | - | (0.48) | 0.48 | |
Turbine commitment | - | 0.10 | (0.10) | - | (0.52) | 0.52 | |
Development costs | - | - | - | - | (0.09) | 0.09 | |
Restructuring | - | (0.17) | 0.17 | - | (0.17) | 0.17 | |
Total | - | (0.11) | 0.11 | 0.70 | (1.26) | 1.96 | |
Total Special Items | (0.28) | (0.11) | (0.17) | 0.32 | (1.26) | 1.58 | |
V.Cash and Liquidity
Entergy generated $475 million in operating cash in second quarter 2003, an increase of $26 million compared to second quarter 2002. The increase in cash flow at Utility, Parent & Other is the result of higher deferred fuel cost recovery, approximately $75 million, in second quarter 2003 compared to one year ago, and the receipt of a $75 million dividend from Entergy-Koch, LP. Partially offsetting Utility, Parent & Other improved operating cash flow was a decrease of $91 million in operating cash flow at Entergy Nuclear. The lower cash flow at EN is due primarily to expenditures associated with planned and unplanned outages during second quarter 2003, as well as reduced revenues during this period resulting from lower generation.
Table 11 provides operating cash flow information with quarter-to-quarter and year-to-date comparisons for Utility, Parent & Other, Entergy Nuclear, and Energy Commodity Services.
Table 11: Entergy Corporation Operating Cash Flow | ||||||
Second Quarter and Year-to-Date 2003 vs. 2002 | ||||||
(U.S. $ in millions) | ||||||
Second Quarter | Year-to-Date | |||||
2003 | 2002 | $ Change | 2003 | 2002 | $ Change | |
U.S. Utility, Parent & Other | 481 | 384 | 97 | 538 | 701 | (163) |
Entergy Nuclear | 23 | 114 | (91) | 73 | 165 | (92) |
Energy Commodity Services(n) | (29) | (49) | 20 | (86) | (63) | (23) |
Total Operating Cash Flow | 475 | 449 | 26 | 525 | 803 | (278) |
At the end of second quarter 2003, Entergy's combined cash balance and unused capacity on bank revolvers totaled more than $2 billion, comprised of $1.1 billion of cash and cash equivalents and unused revolver capacity of $1.2 billion at the Parent and Utility subsidiaries. Entergy's $1.45 billion corporate revolver was renewed at its previous level during second quarter 2003. The revolver has a stated termination date of May 13, 2004, but can be extended to a one-year note at Entergy's discretion through a "term-out" provision. The renewed revolver combined with $500 million in Parent term debt issued since December 2002 provides Entergy with substantial liquidity and financial flexibility.
As detailed in Table 12, Entergy expects to have significant cash available through 2005 for three potential uses: investments in new businesses or assets, repayment of debt, and dividend increases. Sources shown on the table include $1.9 billion of new debt that Entergy believes it could issue in association with new investments while maintaining a net debt ratio of 50% or less. This amount could vary depending upon the type of new investment and the credit market environment. The table also reflects the impact of Entergy's Board of Directors' decision on July 27, 2003, to approve a 29 percent increase in the Entergy common dividend to $1.80 per share on an annual basis. This dividend increase will raise cash requirements for dividend payments by $90 million per year.
Table 12 provides a summary of projected sources and uses of cash for the period from July 1, 2003 through the end of 2005.
Table 12: Entergy Corporation Projected Sources and Uses of Cash | ||
($ in billions) | 2003-2005 | |
Beginning cash at 7/1/03 | 1.1 | |
Entergy Corp. credit revolver - unused portion | 1.1 | |
Planned refinancings | 2.5 | |
New debt capacity | 1.9 | |
Total financings | 5.5 | |
Operating cash flow | 5.7 | |
Total sources | 12.3 | |
Debt maturities | 4.2 | |
Capital expenditures | 3.0 | |
Dividends | 1.0 | |
Targeted liquidity | 0.8 | |
Total uses | 9.0 | |
Net Liquidity Available for New Investment, Debt Repayment, Dividend Increase | 3.3 | |
VI.Other Financial Performance Highlights
As-reported net margin was 11.87 percent, an increase of nearly 6 percentage points over second quarter 2002, while operational net margin improved nearly 2 percentage points over last year to 10.8 percent. Return on equity, on an as-reported basis, increased by more than 6 percentage points to 12.85 percent while operational return on equity was nearly 12 percent.
Entergy's capital structure remains within the target range of 45 to 50 percent net debt to net capital. Entergy's off-balance sheet debt, exclusive of operating leases, equals $385 million and constitutes only 2 percent of total capitalization.
Table 13 provides a summary of financial measures with quarter-to-quarter and year-to-date comparisons.
Table 13: Entergy Corporation Key Financial Performance and Flexibility Measures(o) | ||||
Second Quarter 2003 vs. 2002(see appendix D for definitions of certain measures) | ||||
Second Quarter | ||||
For 12 months ending June 30 | 2003 | 2002 | Change | |
Return on average invested capital - as-reported | 8.08% | 5.46% | 2.62% | |
Return on average invested capital - operational | 7.54% | 7.07% | 0.47% | |
Return on average common equity - as-reported | 12.85% | 6.64% | 6.21% | |
Return on average common equity - operational | 11.69% | 10.28% | 1.41% | |
Net margin - as-reported | 11.87% | 5.89% | 5.98% | |
Net margin - operational | 10.80% | 9.12% | 1.68% | |
Cash flow interest coverage | 5.67 | 5.94 | (0.27) | |
Book value per share | $37.28 | $34.08 | $3.20 | |
End of period shares outstanding (millions) | 227.8 | 224.7 | 3.1 | |
As of June 30 ($ in millions) | 2003 | 2002 | Change | |
Revolver capacity | 1,158 | 843 | 315 | |
Total gross liquidity | 2,236 | 1,574 | 662 | |
Total debt | 8,951 | 8,192 | 759 | |
Off-balance sheet liabilities: | ||||
Project debt | - | - | - | |
Debt of joint ventures - Entergy's share | 385 | 346 | 39 | |
Leases - Entergy's share | 501 | 343 | 158 | |
Total off-balance sheet liabilities | 886 | 689 | 197 | |
Rating or other contingent liabilities | - | 70 | ||
Net debt to net capital ratio | 46.5% | 49.1% | (2.6%) | |
Net debt ratio including off-balance sheet liabilities | 49.1% | 51.2% | (2.1%) | |
(o) As-reported metrics are computed in accordance with GAAP as they include all components of net income, including special items. Operational metrics are non-GAAP measures as they are calculated using operational net income, which excludes the impact of special items. Reconciliations of operational earnings per share to as-reported earnings per share can be found in Appendix B.
VII.Capital Expenditures
Entergy's capital plan from 2003 through 2005 calls for $3.7 billion of investment; $2.9 billion of this amount is associated with capital projects that maintain Entergy's existing assets. The remaining $0.8 billion is associated with previously identified investments such as the steam generator replacement at Arkansas Nuclear One Unit 1, nuclear plant power uprates at Entergy Nuclear, the completion of a gas-fired power plant currently under construction in Entergy's non-nuclear wholesale assets business, and a previously deferred equity investment for Entergy's interest in Entergy-Koch.
Table 14 provides a summary of planned capital expenditures for the period 2003 through 2005.
Table 14: Entergy Corporation Planned Capital Expenditures | ||||
2003-2005 | ||||
($ in billions) | 2003 | 2004 | 2005 | Total |
Maintenance capital | ||||
U. S. Utility | 0.8 | 0.8 | 0.9 | 2.5 |
Entergy Nuclear | 0.1 | 0.2 | 0.1 | 0.4 |
Energy Commodity Services | - | - | - | - |
Subtotal | 0.9 | 1.0 | 1.0 | 2.9 |
Other capital commitments | ||||
U. S. Utility | 0.3 | 0.1 | 0.1 | 0.5 |
Entergy Nuclear | 0.1 | - | - | 0.1 |
Energy Commodity Services | 0.1 | 0.1 | - | 0.2 |
Subtotal | 0.5 | 0.2 | 0.1 | 0.8 |
Total Planned Capital Expenditures | 1.4 | 1.2 | 1.1 | 3.7 |
VIII.Debt Refinancing
Entergy has $360 million of debt that matures in the remainder of 2003, $269 million or 75 percent of which is associated with the Utility. Entergy expects to fund approximately $150 million of remaining Utility 2003 maturities and all Entergy Nuclear 2003 maturities with cash. The balance of Utility 2003 maturities is expected to be refinanced for periods up to 30 years, consistent with the long-term nature of utility assets. Refinancing activity may be modified periodically in response to changing market conditions and capital needs.
Table 15 provides details on Entergy's 2003 debt maturities and refinancing activity.
Table 15: Entergy Corporation and Subsidiaries Debt Maturity and Refinancing Schedule(p) | |||||||||||
($ in millions) | |||||||||||
Scheduled maturities at December 31, 2002 | 2003 | 2004 | 2005-2009 | 2010+ | Total | ||||||
U. S. Utility | 1,111 | 855 | 1,373 | 3,314 | 6,653 | ||||||
Parent | - | 595 | 267 | - | 862 | ||||||
Entergy Nuclear | 87 | 91 | 344 | 161 | 683 | ||||||
Energy Commodity Services | 79 | - | - | - | 79 | ||||||
Total | 1,277 | 1,541 | 1,984 | 3,475 | 8,277 | ||||||
Financings, refinancings and cash repayments completed through June 30, 2003 | |||||||||||
U. S. Utility | (842) | (75) | 700 | 560 | 343 | ||||||
Parent | - | (140) | 72 | 161 | 93 | ||||||
Entergy Nuclear | 4 | (2) | (9) | 14 | 7 | ||||||
Energy Commodity Services | (79) | - | - | - | (79) | ||||||
Total | (917) | (217) | 763 | 735 | 364 | ||||||
Remaining maturities as of June 30, 2003 | |||||||||||
U. S. Utility | 269 | 780 | 2,073 | 3,874 | 6,996 | ||||||
Parent | - | 455 | 339 | 161 | 955 | ||||||
Entergy Nuclear | 91 | 89 | 335 | 175 | 690 | ||||||
Energy Commodity Services | - | - | - | - | - | ||||||
Total | 360 | 1,324 | 2,747 | 4,210 | 8,641 | ||||||
(p) Long-term debt, including current portion.
IX.Earnings Guidance
"Through the first half of 2003 we've achieved results that move us closer to meeting our financial objectives this year," saidC. John Wilder, Entergy's chief financial officer. "We are rising to meet the demands of difficult credit markets, constantly changing economic conditions, and operational challenges as we continue to produce solid financial results. Year-to-date strong performance at Entergy-Koch Trading supports our decision to raise 2003 earnings guidance to a range $4.05 to $4.25 on an operational basis. On an as-reported basis, revised 2003 earnings guidance is $4.37 to $4.57 per share, reflecting strong trading offset by the River Bend loss provision recorded this quarter. In addition, we are issuing as-reported and operational earnings guidance for 2004 in the range of $4.10 to $4.30 per share."
Entergy's full-year 2003 earnings guidance is detailed in Table 16. Earnings guidance for 2003 includes the impact, which is not expected to be material, of Entergy's decision to expense stock options effective first quarter 2003. Additional detail on other key assumptions reflected in the earnings ranges are as follows:
Table 16 provides Entergy's projection of 2003 operational earnings per share, with 2002 as-reported and operational earnings as its data starting points. As-reported earnings per share guidance is different from operational earnings per share guidance due to special items recorded to date. At this time, Entergy anticipates recording severance costs which will be treated as special items in the third and fourth quarters of 2003. These costs, which are not presented in the table below because they cannot be estimated at the present time, will result from voluntary severance programs which will be initiated to contribute to productivity improvements in the Utility and Entergy Nuclear.
(Per share in U.S. $) | ||||||||
2002 |
|
| ||||||
Range of Impact | ||||||||
Utility | ||||||||
As-Reported | 2.57 | |||||||
Less special items | 0.00 | Operational items: | ||||||
Operational | 2.57 | Increased revenues from sales growth | 0.07 | 0.10 | ||||
Increased revenues due to rate actions | 0.17 | 0.17 | ||||||
Increased O&M, depreciation, other | (0.11) | (0.09) | ||||||
Total Operational | 0.13 | 0.18 | 2.70 | 2.75 | ||||
Special items: | ||||||||
SFAS 143 implementation | (0.09) | (0.09) | ||||||
River Bend loss provision | (0.28) | (0.28) | ||||||
Total As-reported | 2.32 | 2.37 | ||||||
Entergy Nuclear | ||||||||
As-Reported | 0.88 | |||||||
Less special items | 0.00 | Operational items: | ||||||
Operational | 0.88 | Increased revenue due to increased MWhs produced (addition of Vermont Yankee offset by unplanned outages) | - | 0.02 | ||||
Decreased revenue due to lower PPA pricing | (0.02) | (0.02) | ||||||
Increased outage amortization expense | (0.08) | (0.08) | ||||||
Decreased O&M expense, other | 0.07 | 0.10 | ||||||
Total Operational | (0.03) | 0.02 | 0.85 | 0.90 | ||||
Special items: | ||||||||
SFAS 143 implementation | 0.70 | 0.70 | ||||||
Total As-reported | 1.55 | 1.60 | ||||||
Energy Commodity Services | ||||||||
As-Reported | (0.64) | |||||||
Less special items | (1.17) | Operational items: | ||||||
Operational | 0.53 | Increased contribution from Entergy-Koch(q) | 0.06 | 0.06 | ||||
Increased income from commodity trading | 0.10 | 0.14 | ||||||
Increased income from pipeline operations | 0.01 | 0.02 | ||||||
Total Operational | 0.17 | 0.22 | 0.70 | 0.75 | ||||
Special items: | ||||||||
None | - | - | ||||||
Total As-reported | 0.70 | 0.75 | ||||||
Parent & Other | ||||||||
As-Reported | (0.17) | |||||||
Less special items | 0.00 | Operational items: | ||||||
Operational | (0.17) | Increased net interest expense | (0.05) | (0.03) | ||||
Decreased corporate expense | 0.02 | 0.05 | ||||||
Total Operational | (0.03) | 0.02 | (0.20) | (0.15) | ||||
Special items: | ||||||||
None | - | - | ||||||
Total As-reported | (0.20) | (0.15) | ||||||
Total | ||||||||
As-Reported | 2.64 | |||||||
Less special items | (1.17) | |||||||
Operational | 3.81 | Total Operational Guidance for 2003 | 4.05 | 4.25 | ||||
Total As-reported Guidance for 2003(r) | 4.37 | 4.57 | ||||||
Entergy's 2003 earnings guidance is detailed in Table 17 below, with June 2003 year-to-date actual results as its starting point. This table reflects the projected changes in the earnings profile for each of Entergy's businesses for the remainder of 2003 based upon how the second half of 2003 is expected to differ from the second half of 2002. At this time, Entergy anticipates recording severance costs which will be treated as special items in the third and fourth quarters of 2003. These costs, which are not presented in the table below because they cannot be estimated at the present time, will result from voluntary severance programs which will be initiated to contribute to productivity improvements in the Utility and Entergy Nuclear.
Table 17: 2003 Earnings Per Share Guidance Based on June 2003 Year-To-Date Earnings | ||||||||
(Per share in U.S. $) | ||||||||
|
|
| ||||||
Range of Impact | ||||||||
Utility | ||||||||
As-Reported | 1.00 | |||||||
Less special items | (0.38) | Operational items: | ||||||
Operational | 1.38 | 2002 Operational Results (normal weather) | 1.30 | 1.30 | ||||
Increased revenues due to rate actions at EMI and ENOI | 0.10 | 0.10 | ||||||
Sales growth partially offset by cogeneration losses | - | 0.03 | ||||||
Increased O&M, depreciation, other | (0.08) | (0.06) | ||||||
Total Operational | 1.32 | 1.37 | 2.70 | 2.75 | ||||
Special items: | ||||||||
SFAS 143 Implementation | (0.09) | (0.09) | ||||||
River Bend loss provision | (0.28) | (0.28) | ||||||
Total As-reported | 2.32 | 2.37 | ||||||
Entergy Nuclear | ||||||||
As-Reported | 1.05 | |||||||
Less special items | 0.70 | Operational items: | ||||||
Operational | 0.35 | 2002 Operational Results | 0.46 | 0.46 | ||||
Increased revenues due to higher capacity factors | 0.06 | 0.08 | ||||||
Decreased revenues due to lower contract prices | (0.01) | (0.01) | ||||||
Increased expense due to higher refueling outage amortization | (0.03) | (0.03) | ||||||
Decreased O&M expense, other | 0.02 | 0.05 | ||||||
Total Operational | 0.50 | 0.55 | 0.85 | 0.90 | ||||
Special items: | ||||||||
SFAS 143 implementation | 0.70 | 0.70 | ||||||
Total As-reported | 1.55 | 1.60 | ||||||
Energy Commodity Services | ||||||||
As-Reported | 0.62 | |||||||
Less special items | 0.00 | Operational items: | ||||||
Operational | 0.62 | 2002 Operational Results (s) | 0.10 | 0.10 | ||||
Income from trading operations | (0.01) | 0.03 | ||||||
Income from pipeline operations | (0.01) | - | ||||||
Total Operational | 0.08 | 0.13 | 0.70 | 0.75 | ||||
Special items: | ||||||||
None | - | - | ||||||
Total As-reported |
|
| 0.70 | 0.75 | ||||
Parent & Other | ||||||||
As-Reported | (0.06) | |||||||
Less special items | 0.00 | Operational items: | ||||||
Operational | (0.06) | 2002 Operational Results | (0.12) | (0.12) | ||||
Interest and other corporate expenses | (0.02) | 0.03 | ||||||
Total Operational | (0.14) | (0.09) | (0.20) | (0.15) | ||||
Special items: | ||||||||
None | - | - | ||||||
Total As-reported | (0.20) | (0.15) | ||||||
Total | ||||||||
As-Reported | 2.61 | |||||||
Less special items | 0.32 | |||||||
Operational | 2.29 | Total Operational for 2003 | 4.05 | 4.25 | ||||
Total As-reported for 2003(r) | 4.37 | 4.57 | ||||||
Entergy's full-year 2004 earnings guidance is detailed in Table 18. In contrast to 2003 guidance, the 2004 guidance table combines results from the Utility with Parent & Other to better reflect the way Entergy views and manages these businesses. Key assumptions reflected in the earnings ranges are as follows:
Entergy's 2004 earnings guidance is detailed in Table 18 below, with the guidance range for 2003 as-reported and operational earnings as its data starting points.
Table 18: 2004 Earnings Per Share Guidance | ||||||||
(Per share in U.S. $) | ||||||||
|
|
| ||||||
Range of Impact | ||||||||
Utility, Parent & Other | ||||||||
As-Reported | 2.12 | 2.22 | ||||||
Less special items | (0.38) | (0.38) | Operational items: | |||||
Operational | 2.50 | 2.60 | Full year impact of rate actions | 0.04 | ||||
Increased revenue due to sales growth | 0.15 | |||||||
Decreased 0&M expense (productivity improvements partially offset by inflationary increases) | 0.02 | |||||||
Decreased interest expense | 0.10 | |||||||
Increased depreciation expense, other | (0.16) | |||||||
Total Operational | 0.15 | 2.65 | 2.75 | |||||
Special items: | ||||||||
None | ||||||||
Total As-reported | 2.65 | 2.75 | ||||||
Entergy Nuclear | ||||||||
As-Reported | 1.55 | 1.60 | ||||||
Less special items | 0.70 | 0.70 | Operational items: | |||||
Operational | 0.85 | 0.90 | Increased revenue from higher contract pricing | 0.10 | ||||
Increased revenue due to higher MWhs produced from uprates | 0.05 | |||||||
Decreased O&M expense from productivity improvements | 0.10 | |||||||
Total Operational | 0.25 | 1.10 | 1.15 | |||||
Special items: | ||||||||
None | ||||||||
Total As-reported | 1.10 | 1.15 | ||||||
Energy Commodity Services | ||||||||
As-Reported | 0.70 | 0.75 | ||||||
Less special items | - | - | Operational items: | |||||
Operational | 0.70 | 0.75 | Decreased contribution from Entergy-Koch | (0.27) | ||||
Conservative commodity trading results | (0.09) | |||||||
Increased income from pipeline growth | 0.01 | |||||||
Total Operational | (0.35) | 0.35 | 0.40 | |||||
Special items: | ||||||||
None | ||||||||
Total As-reported | 0.35 | 0.40 | ||||||
Total | ||||||||
As-Reported | 4.37 | 4.57 | ||||||
Less special items | 0.32 | 0.32 | ||||||
Operational | 4.05 | 4.25 | Total Operational for 2004 | 4.10 | 4.30 | |||
Total As-reported for 2004(q) | 4.10 | 4.30 | ||||||
One of Entergy's financial aspirations is to deliver near-term earnings growth of 8-10 percent, comprised of 6% intrinsic growth and 2-4% growth from asset acquisitions. Entergy has acknowledged that this goal is achievable only if new investments are made. Entergy has consistently maintained a disciplined policy that requires new investments to exceed (on an ex ante basis) the incremental average project cost of capital while maintaining corporate credit metrics.
Over the long term, Entergy aspires to deliver earnings growth of 5-6%, equal to top-quartile industry growth over the last 20 years. Entergy's other financial aspirations include achieving a return of 9% on average invested capital in the near term, and 10% in the long term; achieving a single A credit rating over the long term by maintaining or improving its 45-50% net debt to net capital ratio and 4 times or better interest coverage; and growing the dividend annually, consistent with progress made toward the achievement of all financial aspirations.
Appendix A provides details of kwh sales and customer statistics for the Utility.
Appendix A: Utility Electric Energy Sales & Customers | ||||||||||
Three Months Ended June | ||||||||||
% Weather | ||||||||||
2003 | 2002 | % | Adjusted | |||||||
(Millions of kwh) | ||||||||||
ELECTRIC ENERGY SALES: | ||||||||||
Residential | 7,170 | 7,202 | (0.4) | (0.5) | ||||||
Commercial | 6,164 | 6,112 | 0.9 | 0.9 | ||||||
Governmental | 664 | 654 | 1.5 | 0.9 | ||||||
Industrial | 9,556 | 10,294 | (7.2) | (7.2) | ||||||
Total to Ultimate Customers | 23,554 | 24,262 | (2.9) | (3.1) | ||||||
Wholesale | 2,590 | 2,444 | 6.0 | |||||||
Total Sales | 26,144 | 26,706 | (2.1) | |||||||
Year to Date June | ||||||||||
2003 | 2002 | % | ||||||||
(Millions of kwh) | ||||||||||
ELECTRIC ENERGY SALES: | ||||||||||
Residential | 15,013 | 14,476 | 3.7 | |||||||
Commercial | 11,986 | 11,710 | 2.4 | |||||||
Governmental | 1,297 | 1,271 | 2.0 | |||||||
Industrial | 18,880 | 19,884 | (5.0) | |||||||
Total to Ultimate Customers | 47,176 | 47,341 | (0.3) | |||||||
Wholesale | 5,103 | 4,658 | 9.6 | |||||||
Total Sales | 52,279 | 51,999 | 0.5 | |||||||
Twelve Months Ended June | ||||||||||
2003 | 2002 | % | ||||||||
(Millions of kwh) | ||||||||||
ELECTRIC ENERGY SALES: | ||||||||||
Residential | 33,118 | 31,287 | 5.9 | |||||||
Commercial | 25,630 | 24,926 | 2.8 | |||||||
Governmental | 2,704 | 2,620 | 3.2 | |||||||
Industrial | 40,014 | 40,439 | (1.1) | |||||||
Total to Ultimate Customers | 101,466 | 99,272 | 2.2 | |||||||
Wholesale | 10,273 | 8,923 | 15.1 | |||||||
Total Sales | 111,739 | 108,195 | 3.3 | |||||||
June | ||||||||||
2003 | 2002 | % | ||||||||
ELECTRIC CUSTOMERS(YEAR TO DATE AVERAGE): | ||||||||||
Residential | 2,245,428 | 2,233,198 | 0.5 | |||||||
Commercial | 304,718 | 300,763 | 1.3 | |||||||
Governmental | 15,288 | 14,912 | 2.5 | |||||||
Industrial | 39,986 | 39,455 | 1.3 | |||||||
Total Ultimate Customers | 2,605,420 | 2,588,328 | 0.7 | |||||||
Wholesale | 42 | 38 | 10.5 | |||||||
Total Customers | 2,605,462 | 2,588,366 | 0.7 | |||||||
Appendix B provides a side-by-side comparison of historical performance measures.
Appendix B: Historical Performance Measures(see appendix D for definitions of measures)(t) | |||||||||||||
3Q01 | 4Q01 | 1Q02 | 2Q02 | 3Q02 | 4Q02 | 1Q03 | 2Q03 | 02 YTD | 03 YTD | ||||
Financial | |||||||||||||
EPS - as-reported ($) | 1.39 | 0.09 | -0.35 | 1.06 | 1.59 | 0.33 | 1.73 | 0.89 | 0.72 | 2.61 | |||
Less EPS - special items ($) | -0.15 | 0.09 | 1.15 | 0.11 | -0.09 | 0.01 | -0.61 | -0.28 | -1.26 | 0.32 | |||
EPS - operational ($) | 1.24 | 0.18 | 0.80 | 1.17 | 1.50 | 0.34 | 1.12 | 1.17 | 1.98 | 2.29 | |||
Trailing Twelve Months |
| ||||||||||||
ROIC - as-reported (%) | 7.31 | 7.17 | 5.65 | 5.46 | 5.46 | 5.84 | 8.71 | 8.08 |
| ||||
ROIC - operational (%) | 7.36 | 7.16 | 7.13 | 7.07 | 7.12 | 7.43 | 7.92 | 7.54 |
| ||||
ROE - as-reported (%) | 10.27 | 10.04 | 6.80 | 6.64 | 7.10 | 7.84 | 13.69 | 12.85 |
| ||||
ROE - operational (%) | 10.38 | 10.04 | 10.20 | 10.28 | 10.82 | 11.33 | 12.00 | 11.69 |
| ||||
Cash Flow Interest Coverage | 4.68 | 5.25 | 5.59 | 5.94 | 6.66 | 5.99 | 5.46 | 5.67 |
| ||||
Net debt/net capital (%) | 50.6 | 49.7 | 48.7 | 49.1 | 47.6 | 46.3 | 47.0 | 46.5 |
| ||||
Utility | |||||||||||||
Generation in GWh | 28,081 | 21,245 | 21,032 | 22,698 | 26,635 | 19,687 | 18,531 | 19,915 | 43,729 | 38,446 | |||
GWh billed |
| ||||||||||||
Residential | 10,502 | 6,309 | 7,274 | 7,202 | 10,827 | 7,279 | 7,843 | 7,170 | 14,476 | 15,013 | |||
Commercial & Gov't | 8,073 | 6,499 | 6,215 | 6,766 | 8,240 | 6,811 | 6,455 | 6,828 | 12,981 | 13,283 | |||
Industrial | 10,457 | 10,098 | 9,590 | 10,294 | 10,839 | 10,248 | 9,324 | 9,556 | 19,884 | 18,880 | |||
O&M expense/MWh | $14.17 | $19.44 | $16.79 | $23.87 | $14.01 | $23.84 | $14.71 | $19.30 | $20.46 | $19.03 | |||
Reliability |
| ||||||||||||
SAIFI | 2.10 | 2.10 | 2.00 | 2.00 | 2.10 | 2.00 | 1.94 | 1.64 |
| ||||
SAIDI | 164 | 162 | 151 | 151 | 161 | 164 | 161 | 138 |
| ||||
Nuclear | |||||||||||||
Net MW in operation | 3,445 | 3,445 | 3,445 | 3,445 | 3,955 | 3,955 | 3,955 | 3,955 |
| ||||
Average realized price per MWh | $34.62 | $35.27 | $37.14 | $39.88 | $42.59 | $40.87 | $38.28 | $39.78 |
| ||||
Production cost/MWh | $17.06 | $19.55 | $19.62 | $19.40 | $18.49 | $22.18 | $23.54 | $20.85 | $19.51 | $22.26 | |||
Generation in GWh | 5,887 | 7,260 | 7,509 | 7,449 | 8,152 | 6,843 | 8,093 | 7,342 | 14,958 | 15,435 | |||
Capacity factor | 97.5% | 95.0% | 100.3% | 98.5% | 96.8% | 78.0% | 93.7% | 84.1% | 99.4% | 88.9% | |||
Energy Commodity Services | |||||||||||||
Entergy-Koch Trading | |||||||||||||
Electricity volatility (%) | 75 | 37 | 39 | 51 | 57 | 41 | 86 | 52 | 45 | 72 | |||
Gas volatility (%) | 69 | 80 | 79 | 54 | 58 | 50 | 91 | 45 | 67 | 71 | |||
Gain/loss days | 3.3 | 2.2 | 2.1 | 1.7 | 2.0 | 1.3 | 1.3 | 1.4 | 1.9 | 1.4 | |||
Gulf South Pipeline |
| ||||||||||||
Throughput (Bcf/d) | 2.56 | 2.51 | 2.66 | 2.31 | 2.27 | 2.22 | 2.20 | 1.90 | 2.50 | 2.10 | |||
Production cost ($) | 0.088 | 0.098 | 0.077 | 0.096 | 0.096 | 0.113 | 0.113 | 0.138 | 0.084 | 0.123 | |||
Non-Nuclear Wholesale Assets | |||||||||||||
Net MW in operation | 2,330 | 2,410 | 1,870 | 1,209 | 1,209 | 1,421 | 1,421 | 1,421 | |||||
(t) As-reported metrics are computed in accordance with GAAP as they include all components of net income, including special items. Operational metrics are non-GAAP measures as they are calculated using operational net income, which excludes the impact of special items. A reconciliation of operational earnings per share to as-reported earnings per share is provided here.
Appendix C provides a summary of the Utility's key regulatory cases and events that are pending as well as regulatory recovery mechanisms by operating subsidiary.
Appendix C: Utility Regulatory Summary Table | |||
Second Quarter 2003 | |||
Company | Authorized ROE | Pending Cases/Events | Fuel Recovery Mechanism |
Entergy Arkansas | 11.0% | No cases pending. | Annual reset based on prior year's cost with over- or under-recovery true-up. |
Entergy Gulf States - TX | 10.95% | Base rates frozen since Settlement order issued in June 1999. Freeze will likely extend until the start of retail open access, which is not expected to occur until at least 2nd or 3rd quarter 2004. | Fuel Factor with semi-annual reset based on gas prices. Surcharge for under-recoveries or refund for over-recoveries based on actual cost. |
Entergy Gulf States - LA | 11.1% | The 9th revenue review (2002) and prospective revenue study are currently pending before the LPSC with hearings set for October 2003. EGSI's filing included a $11.5 million rate refund, implemented in June 2002, and requested a prospective rate increase of approximately $21.7 million. The LPSC staff filed testimony in April 2003 recommending a $30 million refund and a prospective rate reduction of at least $75 million. The company intends to vigorously oppose staff's recommendations, but the outcome cannot be predicted at this time. | Monthly reset with 60-day lag based on prior two months actual fuel and purchased power costs plus 1/12 of unrecovered fuel balance. |
Entergy Louisiana | 9.7%-11.3%(u) | ELI filed a Jurisdictional Revenue Requirement Analysis in June 2003, indicating a revenue deficiency of $170 million based upon an 11.75% ROE and potential capacity purchases. A filing to request a rate increase is anticipated in first quarter 2004. In conjunction with the Commission staff, ELI is also pursuing the development of a new formula rate plan proposal. | Monthly reset with 60-day lag based on prior two months actual fuel and purchased power costs plus 1/12th of unrecovered fuel balance. |
Entergy Mississippi | 10.64%-12.86%(v) | Annual formula rate plan is in place based upon a December 2002 order by the MPSC which approved a $48.2 million rate increase and an ROE mid point of 11.75%. EMI will make its next formula rate plan filing in March 2004. | Quarterly reset based on forecasted costs plus any deferred fuel balance (over- or under-recovery) from the second prior quarter. In May 2003, the MPSC approved EMI's request to defer collection of fuel under-recoveries for the first and second quarters of 2003. The deferred amount of $77.6 million plus carrying charges will be collected over a six-month period beginning January 2004. |
Entergy New Orleans | 10.25% - 13.25% | Effective June 2003 the New Orleans City Council approved a $30.2 million rate increase and a ROE mid point of 11.25% under a 2 year formula rate plan. | Monthly reset based on prior month's actual fuel and purchased power costs plus unrecovered fuel balance plus 1/12th ENO's share of achieved shared savings from the Generation Performance-Based Recovery Plan (G-PBR). The G-PBR provides for sharing of fuel and purchased power savings between ENO and customers. |
System Energy Resources, Inc. | 10.94% | ROE approved by July 2001 FERC order. No cases pending. | Actual costs billed as incurred. |
(u) Entergy Louisiana's formula rate plan expired with the 2001 test year. Under the expired formula, if Entergy Louisiana earned outside of the bandwidth range, rates would be adjusted on a prospective basis. If earnings were above the bandwidth range, rates would be reduced by 60% of the overage, and if below, increased by 60% of the shortfall.
(v) If Entergy Mississippi earns outside of the bandwidth range, rates will be adjusted on a prospective basis. If earnings are above the bandwidth range, rates are reduced by 50% of the overage, and if below, increased by 50% of the shortfall. The range presented above is not adjusted for performance measures, under which the ROE midpoint can increase or decrease by as much as 1%.
Appendix D provides definitions of certain operational and financial performance measures referenced in this release.
Appendix D: Definitions of Operational and Financial Performance Measures | |
Operational Measures | |
Utility | |
Generation in GWh | Total number of GWh produced by all Utility generation facilities |
GWh billed | Total number of GWh billed to all customer classes |
Operation & maintenance expense | Operation, maintenance and refueling expenses per MWh generated, excluding fuel |
SAIFI | System average interruption frequency index; average number per customer per year |
SAIDI | System average interruption duration index; average minutes per customer per year |
Reliability complaints | Number of complaints to regulators concerning reliability issues |
Number of customers | Year-to-date average number of customers |
Safety | Number of accidents resulting in lost time work |
Competitive Businesses | |
Planned TWh of generation | Amount of output expected to be generated by Entergy Nuclear for nuclear units, or by non-nuclear wholesale assets for fossil and wind units, considering plant operating characteristics, outage schedules, and expected market conditions which impact dispatch |
Percent of planned generation sold forward | Percent of planned generation output, excluding output associated with plant uprates, sold forward under capacity contracts, forward physical contracts or forward financial contracts, that may or may not require regulatory approval. All percentages reflected are consistent with assumptions used in earnings guidance |
Unit-contingent power sale | Transaction under which power is supplied from a specific generation asset; if specified generation asset is unavailable, seller is not be liable to Buyer for any damages |
Capacity factor guarantee | A contractual provision which sets the capacity factor minimum associated with a specified generation asset for which compensation for damages is not required; if actual capacity factor is below the minimum amount, compensation is required |
Firm liquidated damages (LD) | Transaction that requires receipt or delivery of firm energy not associated with a specific asset at liquid market hub delivery points; if default occurs, defaulting party must compensate the party to which performance is owed for amounts calculated per the terms of a master power purchase and sales agreement |
Average realized and assumed contract price/spark spread per MWh | Price/spark spread at which generation output is expected to be sold to third parties, given existing and anticipated contracts/market prices based on expected dispatch |
Entergy Nuclear | |
Net MW in operation | Installed capacity owned or operated by Entergy Nuclear |
Average realized price per MWh | As-reported revenue per MWh generated for all non-utility nuclear operations |
Production cost per MWh | Fuel and non-fuel operation and maintenance expenses according to accounting standards that directly relate to the production of electricity per MWh |
Generation in GWh | Total number of GWh produced by all non-utility nuclear facilities |
Capacity factor | Normalized percentage of the period that the plant generates power |
Refueling outage duration | Number of days lost for scheduled refueling outage completed during the quarter |
Energy Commodity Services | |
Entergy-Koch Trading | |
Electricity volatility | Average volatility of into-Cinergy power prices for the period. The changes in volatility numbers for the comparative prior-year periods are the result of a refinement of the definition of the initial month used in the time period selected over which the calculation of power and gas volatilities is measured |
Gas volatility | Average volatility of Henry Hub spot prices for the period (See note to Electricity Volatility immediately above) |
Electricity marketed (GWh) | Total physical GWh volumes marketed in the U.S. and Europe during the period |
Gas marketed (Bcf/d) | Physical Bcf/d volumes marketed in the U.S. and Europe during the period. The changes in gas marketed numbers for the comparative prior-year periods are the result of an adjustment to the definition to represent only sales volumes consistent with industry standards and the addition of volumes traded in Europe |
Gain/loss days | Ratio of days where aggregate trading gains exceeded trading losses across all commodities |
Daily average earnings at risk | Daily value at risk in millions of dollars for the period using a 97.5% confidence level. This measure indicates that, if prices moved against the positions, the loss in neutralizing the portfolio would not be expected to exceed the calculated value at risk |
Gulf South Pipeline | |
Throughput | Gas in Bcf/d transported by the pipeline during the period |
Production cost | Cost in $/mmbtu associated with delivering gas, excluding gas expense |
Non-nuclear Wholesale Assets | |
Net MW in operation | Total MW owned and operated |
Generation in GWh | Total number of GWh produced by all non-nuclear wholesale generating assets |
Average realized price per MWh | As-reported revenue per MWh generated for all non-nuclear wholesale generating assets |
Net MW under construction | Total MW owned and under construction |
Appendix D: Definitions of Operational and Financial Performance Measures (continued) | |
Financial Measures | |
Operational net income | As-reported net income adjusted to exclude the impact of special items |
Return on average invested capital - as-reported | 12-months rolling net income adjusted to include preferred dividends and tax-effected interest expense divided by average invested capital |
Return on average invested capital - operational | 12-months rolling operational net income adjusted to include preferred dividends and tax-effected interest expense divided by average invested capital |
Return on average common equity - as-reported | 12-months rolling net income divided by average common equity |
Return on average common equity - operational | 12-months rolling operational net income divided by average common equity |
Net margin - as-reported | 12-months rolling net income divided by 12 months rolling revenue |
Net margin - operational | 12-months rolling operational net income divided by 12 months rolling revenue |
Cash flow interest coverage | 12-months operating cash flow plus 12-months rolling interest paid, divided by net interest expense (interest expense minus interest income) |
Book value per share | Common equity divided by end of period shares outstanding |
Revolver capacity | Amount of undrawn capacity remaining on corporate and subsidiary revolvers |
Total gross liquidity | Sum of cash and revolver capacity |
Total debt | Sum of short-term and long-term debt and capital leases on the balance sheet less non-recourse debt, if any |
Project debt | Financing at subsidiaries to support specific projects |
Debt of joint ventures (Entergy share) | Debt issued for Entergy-Koch, LP and RS Cogen joint ventures |
Leases (Entergy share) | Operating leases held by subsidiaries capitalized at implicit interest rate |
Rating or other contingent liabilities | Parent guarantees for which cash collateral may be required in event of downgrade below investment grade |
Net debt to net capital | Gross debt less cash and cash equivalents divided by total capitalization less cash and cash equivalents |
Net debt including off-balance sheet liabilities | Sum of gross debt and off-balance sheet debt less cash and cash equivalents divided by total capitalization less cash and cash equivalents |
Entergy's common stock is listed on the New York, Chicago, and Pacific exchanges under the symbol "ETR".
Additional investor information can be accessed on-line at
www.entergy.com/earnings
Teleconference and Webcast Details
Entergy's senior management team will host an earnings teleconference at 10:00 a.m. CDT, Monday, July 28, 2003. The call can be accessed by dialing 719-457-2621; the confirmation code is 445025. Please call no more than 15 minutes prior to the scheduled start time. The call can also be accessed and the presentation slides can be viewed via Entergy's web site atwww.entergy.com/webcasts. A replay of the teleconference will be available for seven days following the teleconference by dialing 719-457-0820, confirmation code 445025. The replay will also be available on Entergy's web site atwww.entergy.com/webcasts.
************************************************************************************************************************************
The following constitutes a "Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995:From time to time, Entergy makes statements concerning its expectations, beliefs, plans, objectives, goals, strategies, and future events or performance. Such statements are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Although Entergy believes that these forward-looking statements and the underlying assumptions are reasonable, it cannot provide assurance that they will prove correct. Forward-looking statements involve a number of risks and uncertainties, and there are factors that could cause actual results to differ materially from those expressed or implied in the statements. Some of those factors include, but are not limited to: resolution of pending and future rate cases and negotiations, including various performance-based rate discussions, and other regulatory decisions, including those related to Entergy's utility supply plan, Entergy's ability to reduce its operation and maintenance costs, particularly at its Non-Utility Nuclear generating facilities including the uncertainty of negotiations with unions to agree to such reductions, the performance of Entergy's generating plants, and particularly the capacity factor at its nuclear generating facilities, prices for power generated by Entergy's unregulated generating facilities - - particularly the ability to extend or replace the existing power purchase agreements for the Non-Utility Nuclear plants - - and the prices and availability of power Entergy must purchase for its utility customers, Entergy's ability to develop and execute on a point of view regarding prices of electricity, natural gas, and other energy-related commodities, Entergy-Koch's profitability in trading electricity, natural gas, and other energy-related commodities, resolution of pending investigations of Entergy-Koch's past trading practices, changes in the number of participants in the energy trading market, and in their creditworthiness and risk profile, changes in the financial markets, particularly those affecting the availability of capital and Entergy's ability to refinance existing debt and to fund investments and acquisitions, actions of rating agencies, including changes in the ratings of debt and preferred stock, changes in inflation and interest rates, Entergy's ability to purchase and sell assets at attractive prices and on other attractive terms, volatility and changes in markets for electricity, natural gas, and other energy-related commodities, changes in utility regulation, including the beginning or end of retail and wholesale competition, the ability to recover net utility assets and other potential stranded costs, and the establishment of SeTrans or another regional transmission organization, changes in regulation of nuclear generating facilities and nuclear materials and fuel, including possible shutdown of Indian Point or other nuclear generating facilities, changes in environmental, tax, and other laws, including requirements for reduced emissions of sulfur, nitrogen, carbon, and other substances, the economic climate, and particularly growth in Entergy's service territory, variations in weather, hurricanes, and other disasters, advances in technology, the potential impacts of threatened or actual terrorism and war, the success of Entergy's strategies to reduce taxes, the effects of litigation, changes in accounting standards, changes in corporate governance and s ecurities law requirements and Entergy's ability to attract and retain talented management and directors.
Entergy Corporation
Consolidating Balance Sheet
June 30, 2003
(Dollars in thousands)
(Unaudited)
U.S. Parent & Competitive Eliminations Consolidated
Utilities Other Businesses
ASSETS
CURRENT ASSETS
Cash and cash equivalents:
Cash $ 92,296 $ 4,400 $ 18,366 $ - $ 115,063
Temporary cash investments - at cost,
which approximates market 806,409 32,327 123,798 - 962,535
Special deposits - 187 (4) - 183
----------- ---------- ---------- ----------- -----------
Total cash and cash equivalents 898,705 36,914 142,160 - 1,077,781
----------- ---------- ---------- ----------- -----------
Other temporary investments - - - - -
Notes receivable 14 508,344 408,100 (871,764) 44,693
Accounts receivable:
Customer 430,393 8,069 - - 438,462
Allowance for doubtful accounts (18,605) (2,633) (1,503) - (22,741)
Associated companies 16,327 189,794 (156,317) (49,804) -
Other 132,488 2,682 146,252 - 281,422
Accrued unbilled revenues 417,973 13,559 - - 431,532
----------- ---------- ---------- ----------- -----------
Total receivables 978,576 211,471 (11,568) (49,804) 1,128,674
Deferred fuel costs 294,179 - - - 294,179
Accumulated deferred income taxes - 18 - (18) -
Fuel inventory - at average cost 119,063 - 2,465 18 121,546
Materials and supplies - at average cost 352,404 56 194,793 - 547,253
Deferred nuclear refueling outage costs 27,965 - 146,576 - 174,542
Prepayments and other 117,629 7,240 32,864 - 157,733
----------- ---------- ---------- ----------- -----------
TOTAL 2,788,535 764,043 915,390 (921,568) 3,546,401
----------- ---------- ---------- ----------- -----------
OTHER PROPERTY AND INVESTMENTS
Investment in affiliates - at equity 214 9,450,961 975,694 (9,450,961) 975,907
Decommissioning trust funds 900,259 - 1,296,277 - 2,196,536
Non-utility property - at cost (less accumulated
depreciation) 165,953 72,977 475 - 239,405
Other 215,181 214,559 367,138 (343,249) 453,627
----------- ---------- ---------- ----------- -----------
TOTAL 1,281,607 9,738,497 2,639,584 (9,794,210) 3,865,475
----------- ---------- ---------- ----------- -----------
PROPERTY, PLANT, AND EQUIPMENT
Electric 25,792,004 8,678 1,256,267 - 27,056,949
Property under capital lease 761,039 - - - 761,039
Natural gas 214,393 65 - - 214,458
Construction work in progress 895,030 34,168 559,986 (3,949) 1,485,235
Nuclear fuel under capital lease 264,013 - - - 264,013
Nuclear fuel 16,819 - 261,252 - 278,071
----------- ---------- ---------- ----------- -----------
TOTAL PROPERTY, PLANT AND EQUIPMENT 27,943,298 42,911 2,077,505 (3,949) 30,059,765
Less - accumulated depreciation and amortization 12,087,146 5,531 172,783 - 12,265,459
----------- ---------- ---------- ----------- -----------
PROPERTY, PLANT AND EQUIPMENT - NET 15,856,152 37,380 1,904,722 (3,949) 17,794,306
----------- ---------- ---------- ----------- -----------
DEFERRED DEBITS AND OTHER ASSETS
Regulatory assets:
SFAS 109 regulatory asset - net 834,362 - - - 834,362
Unamortized loss on reacquired debt 149,147 - - - 149,147
Other regulatory assets 1,190,030 - - - 1,190,030
Long-term receivables 22,852 - - - 22,852
Goodwill 374,099 - 3,073 - 377,172
Other 391,967 503,461 751,609 (594,321) 1,052,716
----------- ----------- ---------- ------------ -----------
TOTAL 2,962,457 503,461 754,682 (594,321) 3,626,279
----------- ----------- ---------- ------------ -----------
TOTAL ASSETS $22,888,751 $11,043,381 $6,214,378 $(11,314,047) $28,832,461
=========== =========== ========== ============ ===========
*Totals may not foot due to rounding.
Entergy Corporation
Consolidating Balance Sheet
June 30, 2003
(Dollars in thousands)
(Unaudited)
U.S. Parent & Competitive Eliminations Consolidated
Utilities Other Businesses
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Currently maturing long-term debt $ 686,317 $ - $ 90,579 $ - $ 776,896
Notes payable:
Associated companies - 384,116 480,618 (864,734) -
Other 47 - 304 - 351
Account payable:
Associated companies (15,800) 202,119 (148,400) (37,919) -
Other 588,849 19,696 93,144 - 701,689
Customer deposits 205,399 539 164 - 206,101
Taxes accrued 197,435 (19,295) 111,159 - 289,299
Accumulated deferred income taxes 54,379 - 63,881 (18) 118,243
Nuclear refueling outage costs 2,566 - - - 2,566
Interest accrued 124,566 5,342 16,847 - 146,754
Obligations under capital leases 153,106 - - - 153,106
Other 36,457 8,098 92,650 (14,635) 122,571
----------- ---------- ---------- ----------- -----------
TOTAL 2,033,321 600,615 800,946 (917,306) 2,517,576
----------- ---------- ---------- ----------- -----------
DEFERRED CREDITS AND OTHER LIABILITIES
Accumulated deferred income taxes and taxes accrued 4,520,030 30,521 15,204 - 4,565,754
Accumulated deferred investment tax credits 430,909 - - - 430,909
Obligations under capital leases 156,960 - 1 - 156,960
Other regulatory liabilities 276,513 - - - 276,513
Decommisioning 1,454,689 - 658,573 - 2,113,263
Transition to competition 79,098 - - - 79,098
Regulatory reserves 44,358 - - - 44,358
Accumulated provisions 306,519 1,666 110,810 - 418,995
Other 1,237,054 147,349 482,258 (567,148) 1,299,515
----------- ---------- ---------- ----------- -----------
TOTAL 8,506,130 179,536 1,266,846 (567,148) 9,385,365
----------- ---------- ---------- ----------- -----------
Long-term debt 6,309,311 1,006,730 617,594 (70,021) 7,863,614
Preferred stock with sinking fund 22,077 - - - 22,077
Preferred stock without sinking fund 334,337 - 91,940 (91,940) 334,337
Company-obligated mandatorily redeemable
preferred securities of subsidiary trust holding
solely junior subordinated deferrable debentures 215,000 - - - 215,000
SHAREHOLDERS' EQUITY
Common stock 2,225,870 1,377 1,696,387 (3,921,152) 2,482
Authorized shares 500,000,000
Issued shares CY 248,174,087
Paid-in capital 1,784,097 5,805,326 1,076,623 (3,975,894) 4,690,152
Retained earnings 1,572,012 4,040,036 706,336 (1,935,626) 4,382,757
Accumulated other comprehensive income (loss) 6,596 (2,788) 1,022 1,725 6,553
Less - treasury stock, at cost 120,000 587,451 43,316 (163,316) 587,451
Shares CY 20,347,971
----------- ----------- ---------- ------------ -----------
TOTAL 5,468,575 9,256,500 3,437,052 (9,667,631) 8,494,493
----------- ----------- ---------- ------------ -----------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $22,888,751 $11,043,381 $6,214,378 $(11,314,047) $28,832,461
=========== =========== ========== ============ ===========
*Totals may not foot due to rounding.
Entergy Corporation
Consolidating Balance Sheet
December 31, 2002
(Dollars in thousands)
(Unaudited)
U.S. Parent & Competitive Eliminations Consolidated
Utilities Other Businesses
ASSETS
CURRENT ASSETS
Cash and cash equivalents:
Cash $ 118,625 $ 5,011 $ 46,152 $ - $ 169,788
Temporary cash investments - at cost,
which approximates market 969,077 24,518 171,665 - 1,165,260
Special deposits - 31 249 - 280
----------- ---------- ----------- ----------- -----------
Total cash and cash equivalents 1,087,702 29,560 218,066 - 1,335,328
----------- ---------- ----------- ----------- -----------
Other temporary investments - - - - -
Notes receivable 13 501,161 403,393 (902,490) 2,078
Accounts receivable:
Customer 321,942 1,273 - - 323,215
Allowance for doubtful accounts (24,421) (2,364) (500) - (27,285)
Associated companies 19,907 159,628 (137,646) (41,889) -
Other 112,438 1,083 131,100 - 244,621
Accrued unbilled revenues 318,101 1,032 - - 319,133
----------- ---------- ----------- ----------- -----------
Total receivables 747,967 160,652 (7,046) (41,889) 859,684
Deferred fuel costs 55,653 - - - 55,653
Accumulated deferred income taxes 14,872 18 - (14,890) -
Fuel inventory - at average cost 94,183 - 2,266 18 96,467
Materials and supplies - at average cost 333,977 25 191,898 - 525,900
Deferred nuclear refueling outage costs 51,541 - 112,106 - 163,646
Prepayments and other 131,092 3,557 32,176 - 166,827
----------- ---------- ----------- ----------- -----------
TOTAL 2,517,000 694,973 952,859 (959,251) 3,205,583
----------- ---------- ----------- ----------- -----------
OTHER PROPERTY AND INVESTMENTS
Investment in affiliates - at equity 214 8,897,127 823,996 (8,897,127) 824,209
Decommissioning trust funds 839,405 - 1,229,793 - 2,069,198
Non-utility property - at cost (less accumulated
depreciation) 222,519 74,204 571 - 297,294
Other 21,084 33,677 559,378 (343,249) 270,889
----------- ---------- ----------- ----------- -----------
TOTAL 1,083,222 9,005,008 2,613,738 (9,240,376) 3,461,591
----------- ---------- ----------- ----------- -----------
PROPERTY, PLANT, AND EQUIPMENT
Electric 25,226,879 8,498 1,554,161 - 26,789,538
Property under capital lease 746,624 - - - 746,624
Natural gas 209,913 57 - - 209,969
Construction work in progress 797,128 27,927 411,786 (3,949) 1,232,891
Nuclear fuel under capital lease 259,433 - - - 259,433
Nuclear fuel 24,475 - 239,134 - 263,609
----------- ---------- ----------- ----------- -----------
TOTAL PROPERTY, PLANT AND EQUIPMENT 27,264,452 36,482 2,205,081 (3,949) 29,502,064
Less - accumulated depreciation and amortization 12,140,375 4,703 162,035 - 12,307,112
----------- ---------- ----------- ----------- -----------
PROPERTY, PLANT AND EQUIPMENT - NET 15,124,077 31,779 2,043,046 (3,949) 17,194,952
----------- ---------- ----------- ----------- -----------
DEFERRED DEBITS AND OTHER ASSETS
Regulatory assets:
SFAS 109 regulatory asset - net 844,105 - - - 844,105
Unamortized loss on reacquired debt 155,161 - - - 155,161
Other regulatory assets 738,328 - - - 738,328
Long-term receivables 24,703 - - - 24,703
Goodwill 374,099 - 3,073 - 377,172
Other 213,430 492,721 779,032 (538,809) 946,375
----------- ---------- ----------- ----------- -----------
TOTAL 2,349,827 492,721 782,105 (538,809) 3,085,844
----------- ---------- ----------- ----------- -----------
TOTAL ASSETS $21,074,127 $10,224,481 $ 6,391,748 $(10,742,385) $26,947,969
=========== ========== =========== =========== ===========
*Totals may not foot due to rounding.
Entergy Corporation
Consolidating Balance Sheet
December 31, 2002
(Dollars in thousands)
(Unaudited)
U.S. Parent & Competitive Eliminations Consolidated
Utilities Other Businesses
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Currently maturing long-term debt $ 1,110,741 $ - $ 80,579 $ - $1,191,320
Notes payable:
Associated companies - 421,155 482,447 (903,602) -
Other 47 - 304 - 351
Account payable:
Associated companies (11,912) 150,651 (102,580) (36,160) -
Other 704,964 17,729 132,752 - 855,446
Customer deposits 198,100 179 163 - 198,442
Taxes accrued 75,044 25,943 284,328 - 385,315
Accumulated deferred income taxes - - 41,359 (14,890) 26,468
Nuclear refueling outage costs 14,244 - - - 14,244
Interest accrued 165,903 3,138 6,399 - 175,440
Obligations under capital leases 153,822 - - - 153,822
Other 68,830 12,844 98,147 (8,479) 171,341
----------- ---------- ----------- ----------- -----------
TOTAL 2,479,784 631,639 1,023,898 (963,131) 3,172,189
----------- ---------- ----------- ----------- -----------
DEFERRED CREDITS AND OTHER LIABILITIES
Accumulated deferred income taxes and taxes accrued 4,512,358 11,245 (272,804) - 4,250,800
Accumulated deferred investment tax credits 447,925 - - - 447,925
Obligations under capital leases 155,934 - 9 - 155,943
Other regulatory liabilities 185,579 - - - 185,579
Decommisioning 302,202 - 1,263,796 - 1,565,997
Transition to competition 79,098 - - - 79,098
Regulatory reserves 56,438 - - - 56,438
Accumulated provisions 299,462 1,679 88,726 - 389,868
Other 1,044,074 103,273 503,199 (505,314) 1,145,232
----------- ---------- ----------- ----------- -----------
TOTAL 7,083,069 116,197 1,582,926 (505,314) 8,276,879
----------- ---------- ----------- ----------- -----------
Long-term debt 5,542,438 915,611 697,352 (68,402) 7,086,999
Preferred stock with sinking fund 24,327 - - - 24,327
Preferred stock without sinking fund 334,337 - 91,940 (91,940) 334,337
Company-obligated mandatorily redeemable
preferred securities of subsidiary trust holding
solely junior subordinated deferrable debentures 215,000 - - - 215,000
SHAREHOLDERS' EQUITY
Common stock 2,225,870 1,360 1,696,327 (3,921,075) 2,482
Authorized shares 500,000,000
Issued shares CY 248,174,087
Paid-in capital 1,784,097 5,757,779 1,030,284 (3,905,407) 4,666,753
Retained earnings 1,500,609 3,553,724 337,699 (1,453,338) 3,938,693
Accumulated other comprehensive income (loss) 4,595 (4,498) (25,362) 2,906 (22,360)
Less - treasury stock, at cost 120,000 747,331 43,316 (163,316) 747,331
Shares CY 25,752,410
----------- ---------- ----------- ----------- -----------
TOTAL 5,395,171 8,561,034 2,995,632 (9,113,598) 7,838,238
----------- ---------- ----------- ----------- -----------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $21,074,127 $10,224,482 $6,391,749 $(10,742,384) $26,947,969
=========== ========== =========== =========== ===========
* Totals may not foot due to rounding.
Entergy Corporation
Consolidating Balance Sheet
June 30, 2003 vs December 31, 2002
Increase/(Decrease)
(Dollars in thousands)
(Unaudited)
U.S. Parent & Competitive Eliminations Consolidated
Utilities Other Businesses
ASSETS
CURRENT ASSETS
Cash and cash equivalents:
Cash $ (26,329) $ (611) $ (27,786) $ - $ (54,725)
Temporary cash investments - at cost,
which approximates market (162,668) 7,809 (47,867) - (202,725)
Special deposits - 156 (253) - (97)
----------- ---------- ----------- ----------- -----------
Total cash and cash equivalents (188,997) 7,354 (75,906) - (257,547)
----------- ---------- ----------- ----------- -----------
Other temporary investments - - - - -
Notes receivable 1 7,183 4,707 30,726 42,616
Accounts receivable:
Customer 108,451 6,796 - - 115,247
Allowance for doubtful accounts 5,816 (269) (1,003) - 4,544
Associated companies (3,580) 30,166 (18,671) (7,915) -
Other 20,050 1,599 15,152 - 36,801
Accrued unbilled revenues 99,872 12,527 - - 112,399
----------- ---------- ----------- ----------- -----------
Total receivables 230,609 50,819 (4,522) (7,915) 268,990
Deferred fuel costs 238,526 - - - 238,526
Accumulated deferred income taxes (14,872) - - 14,872 -
Fuel inventory - at average cost 24,880 - 199 - 25,079
Materials and supplies - at average cost 18,427 31 2,895 - 21,353
Deferred nuclear refueling outage costs (23,576) - 34,470 - 10,895
Prepayments and other (13,463) 3,683 688 - (9,094)
----------- ---------- ----------- ----------- -----------
TOTAL 271,535 69,070 (37,469) 37,683 340,818
----------- ---------- ----------- ----------- -----------
OTHER PROPERTY AND INVESTMENTS
Investment in affiliates - at equity - 553,834 151,698 (553,834) 151,698
Decommissioning trust funds 60,854 - 66,484 - 127,338
Non-utility property - at cost (less accumulated
depreciation) (56,566) (1,227) (96) - (57,889)
Other 194,097 180,882 (192,240) - 182,738
----------- ---------- ----------- ----------- -----------
TOTAL 198,385 733,489 25,846 (553,834) 403,884
----------- ---------- ----------- ----------- -----------
PROPERTY, PLANT, AND EQUIPMENT
Electric 565,125 180 (297,894) - 267,411
Property under capital lease 14,415 - - - 14,415
Natural gas 4,480 8 - - 4,489
Construction work in progress 97,902 6,241 148,200 - 252,344
Nuclear fuel under capital lease 4,580 - - - 4,580
Nuclear fuel (7,656) - 22,118 - 14,462
----------- ---------- ----------- ----------- -----------
TOTAL PROPERTY, PLANT AND EQUIPMENT 678,846 6,429 (127,576) - 557,701
Less - accumulated depreciation and amortization (53,229) 828 10,748 - (41,653)
----------- ---------- ----------- ----------- -----------
PROPERTY, PLANT AND EQUIPMENT - NET 732,075 5,601 (138,324) - 599,354
----------- ---------- ----------- ----------- -----------
DEFERRED DEBITS AND OTHER ASSETS
Regulatory assets:
SFAS 109 regulatory asset - net (9,743) - - - (9,743)
Unamortized loss on reacquired debt (6,014) - - - (6,014)
Other regulatory assets 451,702 - - - 451,702
Long-term receivables (1,851) - - - (1,851)
Goodwill - - - - -
Other 178,537 10,740 (27,423) (55,512) 106,341
----------- ---------- ----------- ----------- -----------
TOTAL 612,630 10,740 (27,423) (55,512) 540,435
----------- ---------- ----------- ----------- -----------
TOTAL ASSETS $ 1,814,624 $ 818,899 $ (177,371) $ (571,663) $ 1,884,491
=========== ========== =========== =========== ===========
*Totals may not foot due to rounding.
Entergy Corporation
Consolidating Balance Sheet
June 30, 2003 vs December 31, 2002
Increase/(Decrease)
(Dollars in thousands)
(Unaudited)
U.S. Parent & Competitive Eliminations Consolidated
Utilities Other Businesses
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Currently maturing long-term debt $ (424,424) $ - $ 10,000 $ - $(414,424)
Notes payable:
Associated companies - (37,039) (1,829) 38,868 -
Other - - - - -
Account payable:
Associated companies (3,888) 51,468 (45,820) (1,759) -
Other (116,115) 1,967 (39,608) - (153,757)
Customer deposits 7,299 360 1 - 7,659
Taxes accrued 122,391 (45,238) (173,169) - (96,016)
Accumulated deferred income taxes 54,379 - 22,522 14,872 91,774
Nuclear refueling outage costs (11,678) - - - (11,678)
Interest accrued (41,337) 2,204 10,448 - (28,686)
Obligations under capital leases (716) - - - (716)
Other (32,373) (4,746) (5,497) (6,156) (48,770)
----------- ---------- ----------- ----------- -----------
TOTAL (446,463) (31,024) (222,952) 45,825 (654,613)
----------- ---------- ----------- ----------- -----------
DEFERRED CREDITS AND OTHER LIABILITIES
Accumulated deferred income taxes and taxes accrued 7,672 19,276 288,008 - 314,954
Accumulated deferred investment tax credits (17,016) - - - (17,016)
Obligations under capital leases 1,026 - (8) - 1,017
Other regulatory liabilities 90,934 - - - 90,934
Decommisioning 1,152,487 - (605,223) - 547,265
Transition to competition - - - - -
Regulatory reserves (12,080) - - - (12,080)
Accumulated provisions 7,057 (13) 22,084 - 29,127
Other 192,980 44,076 (20,941) (61,834) 154,283
----------- ---------- ----------- ----------- -----------
TOTAL 1,423,061 63,339 (316,080) (61,834) 1,108,485
----------- ---------- ----------- ----------- -----------
Long-term debt 766,873 91,119 (79,758) (1,619) 776,615
Preferred stock with sinking fund (2,250) - - - (2,250)
Preferred stock without sinking fund - - - - -
Company-obligated mandatorily redeemable
preferred securities of subsidiary trust holding
solely junior subordinated deferrable debentures - - - - -
SHAREHOLDERS' EQUITY
Common stock - 17 60 (77) -
Authorized shares
Issued shares CY
Paid-in capital - 47,547 46,339 (70,487) 23,399
Retained earnings 71,403 486,312 368,637 (482,288) 444,064
Accumulated other comprehensive income (loss) 2,001 1,710 26,384 (1,181) 28,913
Less - treasury stock, at cost - (159,880) - - (159,880)
----------- ---------- ----------- ----------- -----------
TOTAL 73,404 695,466 441,420 (554,033) 656,255
----------- ---------- ----------- ----------- -----------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 1,814,624 $ 818,899 $ (177,371) $ (571,663) $ 1,884,491
=========== ========== =========== =========== ===========
* Totals may not foot due to rounding.
Entergy Corporation
Consolidating Income Statement
Three Months Ended June 30, 2003
(Dollars in thousands)
(Unaudited)
U.S. Parent & Competitive Eliminations Consolidated
Utilities Other Businesses
OPERATING REVENUES:
Domestic electric $1,926,488 $ - $ - $ (547) $ 1,925,941
Natural gas 33,698 - - - 33,698
Competitive businesses - 38,031 361,576 (5,337) 394,270
---------- --------- --------- ----------- -----------
Total 1,960,186 38,031 361,576 (5,884) 2,353,909
OPERATING EXPENSES:
Operating and Maintenance:
Fuel, fuel related expenses, and gas purchased for resale 452,839 - 43,176 - 496,014
Purchased power 421,686 22,489 2,074 (5,776) 440,473
---------- --------- --------- ----------- -----------
Gross Margin 1,085,661 15,542 316,326 (108) 1,417,422
Margin % 55.4% 40.9% 87.5% 1.8% 60.2%
Nuclear refueling outage expenses 16,465 - 23,785 - 40,251
Provision for turbine commitments, assets
impairments and restructuring charges - - - - -
Other operation and maintenance 367,907 22,749 180,692 (338) 571,010
Decommissioning 21,563 - 12,798 - 34,361
Taxes other than income taxes 85,759 1,163 13,582 - 100,505
---------- --------- --------- ----------- -----------
Total 1,366,219 46,401 276,107 (6,114) 1,682,614
---------- --------- --------- ----------- -----------
EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION,
AND AMORTIZATION 593,967 (8,370) 85,469 230 671,295
---------- --------- --------- ----------- -----------
Margin % 30.3% (22.0%) 23.6% (3.9%) 28.5%
DEPRECIATION AND AMORTIZATION:
Depreciation and amortization 190,830 1,297 13,320 - 205,446
Other regulatory charges (credits) 4,273 - - - 4,273
---------- --------- --------- ----------- -----------
Total 195,103 1,297 13,320 - 209,719
---------- --------- --------- ----------- -----------
OPERATING INCOME (LOSS) 398,864 (9,667) 72,149 230 461,576
---------- --------- --------- ----------- -----------
Margin % 20.3% (25.4%) 20.0% (3.9%) 19.6%
OTHER INCOME (DEDUCTIONS):
Allowance for equity funds used during construction 9,740 - - - 9,740
Gain/(loss) on sale of assets - net 315 (127) 573 - 761
Interest and dividend income 11,120 8,984 19,967 (10,144) 29,927
Equity in earnings of unconsolidated equity affiliates - - 70,292 - 70,292
Miscellaneous - net (111,740) (529) 8,287 (230) (104,212)
---------- --------- --------- ----------- -----------
Total (90,565) 8,328 99,119 (10,374) 6,508
---------- --------- --------- ----------- -----------
INTEREST AND OTHER CHARGES:
Interest on long-term debt 103,884 8,767 4,575 - 117,227
Other interest - net 2,776 15,256 8,359 (10,144) 16,247
Distributions on preferred securities of subsidiaries 4,709 - - - 4,709
Allowance for borrowed funds used during construction (7,449) - - - (7,449)
---------- --------- --------- ----------- -----------
Total 103,920 24,023 12,934 (10,144) 130,734
---------- --------- --------- ----------- -----------
INCOME (LOSS) BEFORE INCOME TAXES 204,379 (25,362) 158,333 - 337,350
INCOME TAXES 76,787 (15,852) 64,898 - 125,833
---------- --------- --------- ----------- -----------
CONSOLIDATED NET INCOME (LOSS) 127,592 (9,510) 93,435 - 211,517
PREFERRED DIVIDEND REQUIREMENTS OF SUBSIDIARIES
AND OTHER 5,876 - - - 5,876
---------- --------- --------- ----------- -----------
EARNINGS (LOSS) APPLICABLE TO COMMON STOCK $ 121,716 $ (9,510) $ 93,435 $ - $ 205,641
========== ========= ========= =========== ===========
Margin % 6.5% (25.0%) 25.8% - 9.0%
EARNINGS (LOSS) PER AVERAGE COMMON SHARE:
BASIC $0.54 ($0.04) $0.41 $0.91
DILUTED $0.53 ($0.04) $0.40 $0.89
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
BASIC 226,609,159
DILUTED 231,579,242
*Totals may not foot due to rounding.
Entergy Corporation
Consolidating Income Statement
Three Months Ended June 30, 2002
(Dollars in thousands)
(Unaudited)
U.S. Parent & Competitive Eliminations Consolidated
Utilities Other Businesses
OPERATING REVENUES:
Domestic electric $1,687,266 $ - $ - $ (509) $ 1,686,758
Natural gas 24,982 - - - 24,982
Competitive businesses - 8,585 378,143 (1,887) 384,841
---------- --------- --------- ----------- -----------
Total 1,712,248 8,585 378,143 (2,396) 2,096,581
OPERATING EXPENSES:
Operating and Maintenance:
Fuel, fuel related expenses, and gas purchased for resale 424,137 - 47,275 - 471,413
Purchased power 209,378 309 25,925 (2,093) 233,518
---------- --------- --------- ----------- -----------
Gross Margin 1,078,733 8,276 304,943 (303) 1,391,650
Margin % 63.0% 96.4% 80.6% 12.6% 66.4%
Nuclear refueling outage expenses 14,799 - 9,888 - 24,687
Provision for turbine commitments, assets
impairments and restructuring charges - - 18,169 - 18,169
Other operation and maintenance 526,958 20,580 180,042 (563) 727,017
Decommissioning 8,198 - 9,995 - 18,193
Taxes other than income taxes 73,375 694 8,125 - 82,194
---------- --------- --------- ----------- -----------
Total 1,256,845 21,583 299,419 (2,656) 1,575,191
---------- --------- --------- ----------- -----------
EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION,
AND AMORTIZATION 455,403 (12,998) 78,724 260 521,390
---------- --------- --------- ----------- -----------
Margin % 26.6% (151.4%) 20.8% (10.9%) 24.9%
DEPRECIATION AND AMORTIZATION:
Depreciation and amortization 188,157 1,339 16,380 - 205,876
Other regulatory charges (credits) (170,645) - - - (170,645)
---------- --------- --------- ----------- -----------
Total 17,512 1,339 16,380 - 35,231
---------- --------- --------- ----------- -----------
OPERATING INCOME (LOSS) 437,891 (14,337) 62,344 260 486,159
---------- --------- --------- ----------- -----------
Margin % 25.6% (167.0%) 16.5% (10.9%) 23.2%
OTHER INCOME (DEDUCTIONS):
Allowance for equity funds used during construction 8,323 - - - 8,323
Gain/(loss) on sale of assets - net 1,009 - - - 1,009
Interest and dividend income 10,833 8,662 17,194 (8,979) 27,710
Equity in earnings of unconsolidated equity affiliates - - 16,007 - 16,007
Miscellaneous - net (5,406) 8,223 (934) (260) 1,624
---------- --------- --------- ----------- -----------
Total 14,759 16,885 32,267 (9,239) 54,673
---------- --------- --------- ----------- -----------
INTEREST AND OTHER CHARGES:
Interest on long-term debt 104,643 - 16,749 - 121,393
Other interest - net 12,272 11,075 10,535 (8,979) 24,902
Distributions on preferred securities of subsidiaries 4,709 - - - 4,709
Allowance for borrowed funds used during construction (6,291) - - - (6,291)
---------- --------- --------- ----------- -----------
Total 115,333 11,075 27,284 (8,979) 144,713
---------- --------- --------- ----------- -----------
INCOME (LOSS) BEFORE INCOME TAXES 337,318 (8,526) 67,327 - 396,119
INCOME TAXES 136,536 (3,486) 15,484 - 148,534
---------- --------- --------- ----------- -----------
CONSOLIDATED NET INCOME (LOSS) 200,782 (5,040) 51,843 - 247,585
PREFERRED DIVIDEND REQUIREMENTS OF SUBSIDIARIES
AND OTHER 5,932 - - - 5,932
---------- --------- --------- ----------- -----------
EARNINGS (LOSS) APPLICABLE TO COMMON STOCK $ 194,850 $ (5,040) $ 51,843 $ - $ 241,653
========== ========= ========= =========== ===========
Margin % 11.4% (58.7%) 13.7% - 11.5%
EARNINGS (LOSS) PER AVERAGE COMMON SHARE:
BASIC $0.87 ($0.02) $0.23 $1.08
DILUTED $0.85 ($0.02) $0.23 $1.06
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
BASIC 224,330,654
DILUTED 228,847,752
*Totals may not foot due to rounding.
Entergy Corporation
Consolidating Income Statement
Three Months Ended June 30, 2003 vs. 2002
Increase/(Decrease)
(Dollars in thousands)
(Unaudited)
U.S. Parent & Competitive Eliminations Consolidated
Utilities Other Businesses
OPERATING REVENUES:
Domestic electric $ 239,222 $ - $ - $ (38) $ 239,184
Natural gas 8,716 - - - 8,716
Competitive businesses - 29,446 (16,567) (3,450) 9,429
--------- --------- ---------- ----------- ----------
Total 247,938 29,446 (16,567) (3,488) 257,329
OPERATING EXPENSES:
Operating and Maintenance:
Fuel, fuel related expenses, and gas purchased
for resale 28,702 - (4,099) - 24,602
Purchased power 212,308 22,180 (23,851) (3,683) 206,955
--------- --------- ---------- ----------- ----------
Gross Margin 6,928 7,266 11,383 195 25,772
Margin % (7.6%) (55.5%) 6.8% (10.8%) (6.2%)
Nuclear refueling outage expenses 1,666 - 13,897 - 15,564
Provision for turbine commitments, asset
impairments and restructuring charges - - (18,169) - (18,169)
Other operation and maintenance (159,051) 2,169 650 225 (156,007)
Decommissioning 13,365 - 2,803 - 16,168
Taxes other than income taxes 12,384 469 5,457 - 18,311
--------- --------- ---------- ----------- ----------
Total 109,374 24,818 (23,312) (3,458) 107,423
--------- --------- ---------- ----------- ----------
EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION,
AND AMORTIZATION 138,564 4,628 6,745 (30) 149,905
--------- --------- ---------- ----------- ----------
Margin % 3.7% 129.4% 2.8% 6.9% 3.6%
DEPRECIATION AND AMORTIZATION: -
Depreciation and amortization 2,673 (42) (3,060) - (429)
Other regulatory charges (credits) 174,918 - - - 174,918
--------- --------- ---------- ----------- ----------
Total 177,591 (42) (3,060) - 174,489
--------- --------- ---------- ----------- ----------
OPERATING INCOME (LOSS) (39,027) 4,670 9,805 (30) (24,583)
--------- --------- ---------- ----------- ----------
Margin % (5.2%) 141.6% 3.5% 6.9% (3.6%)
OTHER INCOME (DEDUCTIONS):
Allowance for equity funds used during construction 1,417 - - - 1,417
Gain/(loss) on sale of assets - net (694) (127) 573 - (248)
Interest and dividend income 287 322 2,773 (1,165) 2,217
Equity in earnings of unconsolidated equity affiliates - - 54,285 - 54,285
Miscellaneous - net (106,334) (8,752) 9,221 30 (105,836)
--------- --------- ---------- ----------- ----------
Total (105,324) (8,557) 66,852 (1,135) (48,165)
--------- --------- ---------- ----------- ----------
INTEREST AND OTHER CHARGES:
Interest on long-term debt (759) 8,767 (12,174) - (4,166)
Other interest - net (9,496) 4,181 (2,176) (1,165) (8,655)
Distributions on preferred securities of subsidiaries - - - - -
Allowance for borrowed funds used during construction (1,158) - - - (1,158)
--------- --------- ---------- ----------- ----------
Total (11,413) 12,948 (14,350) (1,165) (13,979)
--------- --------- ---------- ----------- ----------
INCOME (LOSS) BEFORE INCOME TAXES (132,938) (16,835) 91,006 - (58,769)
INCOME TAXES (59,749) (12,366) 49,414 - (22,701)
--------- --------- ---------- ----------- ----------
CONSOLIDATED NET INCOME (LOSS) (73,189) (4,469) 41,592 - (36,068)
PREFERRED DIVIDEND REQUIREMENTS OF SUBSIDIARIES
AND OTHER (56) - - - (56)
--------- --------- ---------- ----------- ----------
EARNINGS (LOSS) APPLICABLE TO COMMON STOCK $(73,133) $ (4,469) $ 41,592 $ - $ (36,012)
========= ========= ========== =========== ==========
Margin % 6.5% (25.0%) 25.8% - 9.0%
EARNINGS (LOSS) PER AVERAGE COMMON SHARE:
BASIC ($0.33) ($0.02) $0.18 - ($0.17)
DILUTED ($0.32) ($0.02) $0.17 - ($0.17)
*Totals may not foot due to rounding.
Entergy Corporation
Consolidating Income Statement
Six Months Ended June 30, 2003
(Dollars in thousands)
(Unaudited)
U.S. Parent & Competitive Eliminations Consolidated
Utilities Other Businesses
OPERATING REVENUES:
Domestic electric $3,528,622 $ - $ - $ (943) $ 3,527,679
Natural gas 113,936 - - - 113,936
Competitive businesses - 52,648 702,766 (5,397) 750,017
-----------------------------------------------------------------
Total 3,642,558 52,648 702,766 (6,340) 4,391,632
-----------------------------------------------------------------
OPERATING EXPENSES:
Operating and Maintenance:
Fuel, fuel related expenses, and gas 794,278 - 89,777 - 884,055
purchased for resale
Purchased power 780,582 26,923 7,790 (6,123) 809,172
-----------------------------------------------------------------
Gross Margin 2,067,698 25,725 605,199 (217) 2,698,405
Margin % 56.8% 48.9% 86.1% 3.4% 61.4%
Nuclear refueling outage expenses 31,202 - 47,942 - 79,144
Provision for turbine commitments, asset
impairments and restructuring charges - - (7,743) - (7,743)
Other operation and maintenance 700,585 33,027 362,973 (676) 1,095,909
Decommissioning 46,262 - 25,597 - 71,859
Taxes other than income taxes 167,374 1,887 28,981 - 198,242
-----------------------------------------------------------------
Total 2,520,283 61,837 555,317 (6,799) 3,130,638
-----------------------------------------------------------------
EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION,
AND AMORTIZATION 1,122,276 (9,189) 147,449 459 1,260,994
-----------------------------------------------------------------
Margin % 30.8% (17.5%) 21.0% (7.2%) 28.7%
DEPRECIATION AND AMORTIZATION:
Depreciation and amortization 389,026 2,586 24,880 - 416,492
Other regulatory charges (credits) 19,526 - - - 19,526
-----------------------------------------------------------------
Total 408,552 2,586 24,880 - 436,018
-----------------------------------------------------------------
OPERATING INCOME (LOSS) 713,724 (11,775) 122,569 459 824,976
-----------------------------------------------------------------
Margin % 19.6% (22.4%) 17.4% (7.2%) 18.8%
OTHER INCOME (DEDUCTIONS):
Allowance for equity funds used during 17,027 - - - 17,027
construction
Gain/(loss) on sale of assets - net 616 (127) 573 - 1,062
Interest and dividend income 22,038 17,547 41,364 (21,198) 59,751
Equity in earnings of unconsolidated
equity affiliates - - 198,353 - 198,353
Miscellaneous - net (117,017) 2,410 22,169 (459) (92,896)
-----------------------------------------------------------------
Total (77,336) 19,830 262,459 (21,657) 183,297
-----------------------------------------------------------------
INTEREST AND OTHER CHARGES:
Interest on long-term debt 211,165 14,008 9,789 - 234,962
Other interest - net 7,674 26,534 16,281 (21,198) 29,291
Distributions on preferred securities 9,419 - - - 9,419
of subsidiaries
Allowance for borrowed funds used (13,168) - - - (13,168)
during construction
-----------------------------------------------------------------
Total 215,090 40,542 26,070 (21,198) 260,504
-----------------------------------------------------------------
INCOME (LOSS) BEFORE INCOME TAXES 421,298 (32,487) 358,958 - 747,769
INCOME TAXES 158,668 (19,420) 139,003 - 278,251
-----------------------------------------------------------------
INCOME (LOSS) BEFORE CUMULATIVE EFFECT OF 262,630 (13,067) 219,955 - 469,518
ACCOUNTING CHANGE
CUMULATIVE EFFECT OF ACCOUNTING CHANGE (net of taxes)(21,333) - 164,255 - 142,922
-----------------------------------------------------------------
CONSOLIDATED NET INCOME (LOSS) 241,297 (13,067) 384,210 - 612,440
PREFERRED DIVIDEND REQUIREMENTS OF SUBSIDIARIES
AND OTHER 11,792 - - - 11,792
-----------------------------------------------------------------
EARNINGS (LOSS) APPLICABLE TO COMMON STOCK $ 229,505 $ (13,067) $ 384,210 $ - $600,648
=================================================================
Margin % 6.6% (24.8%) 54.7% - 13.9%
EARNINGS (LOSS) PER AVERAGE COMMON SHARE:
BASIC $1.02 ($0.05) $1.70 $2.67
DILUTED $1.00 ($0.06) $1.67 $2.61
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
BASIC 225,149,356
DILUTED 229,916,344
*Totals may not foot due to rounding.
Entergy Corporation
Consolidating Income Statement
Six Months Ended June 30, 2002
(Dollars in thousands)
(Unaudited)
U.S. Parent & Competitive Eliminations Consolidated
Utilities Other Businesses
OPERATING REVENUES:
Domestic electric $3,088,688 $ - $ - $ (922) $ 3,087,767
Natural gas 71,360 - - - 71,360
Competitive businesses - 17,586 782,799 (2,097) 798,288
-----------------------------------------------------------------
Total 3,160,048 17,586 782,799 (3,019) 3,957,415
-----------------------------------------------------------------
OPERATING EXPENSES:
Operating and Maintenance:
Fuel, fuel related expenses, and gas 820,017 - 120,257 - 940,274
purchased for resale
Purchased power 340,470 424 64,525 (2,414) 403,004
-----------------------------------------------------------------
Gross Margin 1,999,561 17,162 598,017 (605) 2,614,137
Margin % 63.3% 97.6% 76.4% 20.0% 66.1%
Nuclear refueling outage expenses 30,386 - 19,487 - 49,874
Provision for turbine commitments, asset
impairments and restructuring charges - - 419,542 - 419,542
Other operation and maintenance 864,501 36,542 351,451 (1,124) 1,251,369
Decommissioning 16,391 - 19,990 - 36,381
Taxes other than income taxes 161,374 1,270 21,921 - 184,565
-----------------------------------------------------------------
Total 2,233,139 38,236 1,017,173 (3,538) 3,285,009
-----------------------------------------------------------------
EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION,
AND AMORTIZATION 926,909 (20,650) (234,374) 519 672,406
-----------------------------------------------------------------
Margin % 29.3% (117.4%) (29.9%) (17.2%) 17.0%
DEPRECIATION AND AMORTIZATION:
Depreciation and amortization 378,044 2,813 30,142 - 410,999
Other regulatory charges (credits) (169,082) - - - (169,082)
-----------------------------------------------------------------
Total 208,962 2,813 30,142 - 241,917
-----------------------------------------------------------------
OPERATING INCOME (LOSS) 717,947 (23,463) (264,516) 519 430,489
-----------------------------------------------------------------
Margin % 22.7% (133.4%) (33.8%) (17.2%) 10.9%
OTHER INCOME (DEDUCTIONS):
Allowance for equity funds used during 15,004 - - - 15,004
construction
Gain/(loss) on sale of assets - net 1,672 3 - - 1,674
Interest and dividend income 15,349 15,791 35,910 (15,814) 51,237
Equity in earnings of unconsolidated
equity affiliates - - 83,250 - 83,250
Miscellaneous - net (9,928) 5,682 3,137 (519) (1,628)
-----------------------------------------------------------------
Total 22,097 21,476 122,297 (16,333) 149,537
-----------------------------------------------------------------
INTEREST AND OTHER CHARGES:
Interest on long-term debt 211,936 - 32,983 - 244,919
Other interest - net 19,681 16,896 19,617 (15,814) 40,381
Distributions on preferred securities 9,419 - - - 9,419
of subsidiaries
Allowance for borrowed funds used (11,930) - - - (11,930)
during construction
-----------------------------------------------------------------
Total 229,106 16,896 52,600 (15,814) 282,789
-----------------------------------------------------------------
INCOME (LOSS) BEFORE INCOME TAXES 510,938 (18,883) (194,819) - 297,237
INCOME TAXES 201,912 (7,677) (71,599) - 122,636
-----------------------------------------------------------------
INCOME (LOSS) BEFORE CUMULATIVE EFFECT OF 309,026 (11,206) (123,220) - 174,601
ACCOUNTING CHANGE
CUMULATIVE EFFECT OF ACCOUNTING CHANGE (net of taxes) - - - - -
-----------------------------------------------------------------
CONSOLIDATED NET INCOME (LOSS) 309,026 (11,206) (123,219) - 174,601
PREFERRED DIVIDEND REQUIREMENTS OF SUBSIDIARIES
AND OTHER 11,872 - - - 11,872
-----------------------------------------------------------------
EARNINGS (LOSS) APPLICABLE TO COMMON STOCK $ 297,154 $ (11,206) $ (123,219) $ - $162,729
=================================================================
Margin % 9.4% (63.7%) (15.7%) - 4.1%
EARNINGS (LOSS) PER AVERAGE COMMON SHARE:
BASIC $1.33 ($0.05) ($0.55) $0.73
DILUTED $1.31 ($0.05) ($0.54) $0.72
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
BASIC 223,143,647
DILUTED 227,588,889
*Totals may not foot due to rounding.
Entergy Corporation
Consolidating Income Statement
Six Months Ended June 30, 2003 vs. 2002
Increase/(Decrease)
(Dollars in thousands)
(Unaudited)
U.S. Parent & Competitive Eliminations Consolidated
Utilities Other Businesses
OPERATING REVENUES:
Domestic electric $ 439,934 $ - $ - $ (21) $ 439,913
Natural gas 42,576 - - - 42,576
Competitive businesses - 35,062 (80,033) (3,300) (48,271)
--------- --------- ---------- ----------- ----------
Total 482,510 35,062 (80,033) (3,321) 434,218
OPERATING EXPENSES:
Operating and Maintenance:
Fuel, fuel related expenses, and gas purchased
for resale (25,739) - (30,480) - (56,219)
Purchased power 440,112 26,499 (56,735) (3,709) 406,168
--------- --------- ---------- ----------- ----------
Gross Margin 68,137 8,563 7,182 388 84,269
Margin % (6.5%) (48.7%) 9.7% (16.6%) (4.6%)
Nuclear refueling outage expenses 816 - 28,455 - 29,270
Provision for turbine commitments, asset
impairments and restructuring charges - - (427,285) - (427,285)
Other operation and maintenance (163,917) (3,515) 11,522 448 (155,461)
Decommissioning 29,871 - 5,607 - 35,478
Taxes other than income taxes 6,000 617 7,060 - 13,677
--------- --------- ---------- ----------- ----------
Total 287,144 23,601 (461,856) (3,261) (154,372)
--------- --------- ---------- ----------- ----------
EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION,
AND AMORTIZATION 195,367 11,461 381,823 (60) 588,589
--------- --------- ---------- ----------- ----------
Margin % 1.5% 100.0% 50.9% 10.0% 11.7%
DEPRECIATION AND AMORTIZATION:
Depreciation and amortization 10,982 (227) (5,262) - 5,493
Other regulatory charges (credits) 188,608 - - - 188,608
--------- --------- ---------- ----------- ----------
Total 199,590 (227) (5,262) - 194,101
--------- --------- ---------- ----------- ----------
OPERATING INCOME (LOSS) (4,223) 11,688 387,085 (60) 394,488
--------- --------- ---------- ----------- ----------
Margin % (3.1%) 111.1% 51.2% 10.0% 7.9%
OTHER INCOME (DEDUCTIONS):
Allowance for equity funds used during construction 2,023 - - - 2,023
Gain/(loss) on sale of assets - net (1,056) (130) 573 - (613)
Interest and dividend income 6,689 1,756 5,454 (5,384) 8,515
Equity in earnings of unconsolidated equity affiliates - - 115,103 - 115,103
Miscellaneous - net (107,089) (3,272) 19,032 60 (91,269)
--------- --------- ---------- ----------- ----------
Total (99,433) (1,646) 140,162 (5,324) 33,759
--------- --------- ---------- ----------- ----------
INTEREST AND OTHER CHARGES:
Interest on long-term debt (771) 14,008 (23,194) - (9,957)
Other interest - net (12,007) 9,638 (3,336) (5,384) (11,090)
Distributions on preferred securities of subsidiaries - - - - -
Allowance for borrowed funds used during construction (1,238) - - - (1,238)
--------- --------- ---------- ----------- ----------
Total (14,016) 23,646 (26,530) (5,384) (22,285)
--------- --------- ---------- ----------- ----------
INCOME (LOSS) BEFORE INCOME TAXES (89,640) (13,604) 553,777 - 450,532
INCOME TAXES (43,244) (11,743) 210,602 - 155,615
--------- --------- ---------- ----------- ----------
INCOME (LOSS) BEFORE CUMULATIVE EFFECT OF (46,396) (1,861) 343,175 - 294,917
ACCOUNTING CHANGE
CUMULATIVE EFFECT OF ACCOUNTING CHANGE (net of taxes) (21,333) - 164,255 - 142,922
--------- --------- ---------- ----------- ----------
CONSOLIDATED NET INCOME (LOSS) (67,729) (1,861) 507,430 - 437,839
PREFERRED DIVIDEND REQUIREMENTS OF SUBSIDIARIES
AND OTHER (80) - - - (80)
--------- --------- ---------- ----------- ----------
EARNINGS (LOSS) APPLICABLE TO COMMON STOCK $(67,649) $ (1,861) $ 507,430 $ - $ 437,919
========= ========= ========== =========== ==========
Margin % 6.6% (24.8%) 54.7% - 13.9%
EARNINGS (LOSS) PER AVERAGE COMMON SHARE:
BASIC ($0.31) ($0.00) $2.25 - $1.94
DILUTED ($0.31) ($0.01) $2.21 - $1.89
*Totals may not foot due to rounding.
Entergy Corporation
Consolidating Income Statement
Twelve Months Ended June 30, 2003
(Dollars in thousands)
(Unaudited)
U.S. Parent & Competitive Eliminations Consolidated
Utilities Other Businesses
OPERATING REVENUES:
Domestic electric $ 7,088,090 $ - $ - $ (1,762) $7,086,328
Natural gas 167,929 - - - 167,929
Competitive businesses - 71,563 1,419,102 (5,670) 1,484,995
----------- --------- ---------- ----------- ----------
Total 7,256,019 71,563 1,419,102 (7,432) 8,739,252
OPERATING EXPENSES:
Operating and Maintenance:
Fuel, fuel related expenses, and gas purchased
for resale 1,915,610 - 182,767 - 2,098,377
Purchased power 1,204,462 28,838 12,106 (6,904) 1,238,502
----------- --------- ---------- ----------- ----------
Gross Margin 4,135,947 42,725 1,224,229 (528) 5,402,374
Margin % 57.0% 59.7% 86.3% 7.1% 61.8%
Nuclear refueling outage expenses 59,617 - 75,245 - 134,862
Provision for turbine commitments, asset
impairments and restructuring charges - - 1,171 - 1,171
Other operation and maintenance 1,514,652 78,858 740,646 (1,506) 2,332,650
Decommissioning 60,329 - 51,566 - 111,894
Taxes other than income taxes 339,204 3,110 51,825 - 394,139
----------- --------- ---------- ----------- ----------
Total 5,093,874 110,806 1,115,326 (8,410) 6,311,595
----------- --------- ---------- ----------- ----------
EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION,
AND AMORTIZATION 2,162,145 (39,243) 303,776 979 2,427,657
----------- --------- ---------- ----------- ----------
Margin % 29.8% (54.8%) 21.4% (13.2%) 27.8%
DEPRECIATION AND AMORTIZATION:
Depreciation and amortization 780,781 4,913 58,979 - 844,673
Other regulatory charges (credits) 46,772 - - - 46,772
----------- --------- ---------- ----------- ----------
Total 827,553 4,913 58,979 - 891,445
----------- --------- ---------- ----------- ----------
OPERATING INCOME (LOSS) 1,334,592 (44,156) 244,797 979 1,536,212
----------- --------- ---------- ----------- ----------
Margin % 18.4% (61.7%) 17.3% (13.2%) 17.6%
OTHER INCOME (DEDUCTIONS):
Allowance for equity funds used during construction 33,680 - - - 33,680
Gain/(loss) on sale of assets - net 4,339 (127) 1,789 - 6,001
Interest and dividend income 29,920 37,021 103,024 (43,125) 126,840
Equity in earnings of unconsolidated equity affiliates (2) - 298,982 - 298,980
Miscellaneous - net (119,768) 2,515 34,240 (979) (83,992)
----------- --------- ---------- ----------- ----------
Total (51,831) 39,409 438,035 (44,104) 381,509
----------- --------- ---------- ----------- ----------
INTEREST AND OTHER CHARGES:
Interest on long-term debt 442,383 14,648 40,615 - 497,646
Other interest - net 16,242 44,577 41,776 (43,125) 59,470
Distributions on preferred securities of subsidiaries 18,838 - - - 18,838
Allowance for borrowed funds used during construction (25,776) - - - (25,776)
----------- --------- ---------- ----------- ----------
Total 451,687 59,225 82,391 (43,125) 550,178
----------- --------- ---------- ----------- ----------
INCOME (LOSS) BEFORE INCOME TAXES 831,074 (63,972) 600,441 - 1,367,543
INCOME TAXES 270,508 (22,996) 202,041 - 449,553
----------- --------- ---------- ----------- ----------
INCOME (LOSS) BEFORE CUMULATIVE EFFECT OF
ACCOUNTING CHANGE 560,566 (40,976) 398,400 - 917,990
CUMULATIVE EFFECT OF ACCOUNTING CHANGE (net of taxes) (21,333) - 164,255 - 142,922
----------- --------- ---------- ----------- ----------
CONSOLIDATED NET INCOME (LOSS) 539,233 (40,976) 562,655 - 1,060,912
PREFERRED DIVIDEND REQUIREMENTS OF SUBSIDIARIES
AND OTHER 23,632 - - - 23,632
----------- --------- ---------- ----------- ----------
EARNINGS (LOSS) APPLICABLE TO COMMON STOCK $ 515,601 $(40,976) $ 562,655 $ - $1,037,280
=========== ========= ========== =========== ==========
Margin % 7.1% (57.3%) 39.6% - 11.9%
EARNINGS (LOSS) PER AVERAGE COMMON SHARE:
BASIC $2.30 ($0.18) $2.51 $4.63
DILUTED $2.26 ($0.18) $2.46 $4.54
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
BASIC 224,088,260
DILUTED 228,314,075
*Totals may not foot due to rounding.
Entergy Corporation
Consolidating Income Statement
Twelve Months Ended June 30, 2002
(Dollars in thousands)
(Unaudited)
U.S. Parent & Competitive Eliminations Consolidated
Utilities Other Businesses
OPERATING REVENUES:
Domestic electric $ 6,470,576 $ - $ - $ (1,366) $6,469,210
Natural gas 116,330 - - - 116,330
Competitive businesses - 31,709 1,806,981 (5,771) 1,832,919
----------- --------- ---------- ----------- ----------
Total 6,586,906 31,709 1,806,981 (7,137) 8,418,459
OPERATING EXPENSES:
Operating and Maintenance:
Fuel, fuel related expenses, and gas purchased
for resale 2,003,006 - 467,465 - 2,470,471
Purchased power 691,594 468 128,568 (5,969) 814,661
----------- --------- ---------- ----------- ----------
Gross Margin 3,892,306 31,241 1,210,948 (1,168) 5,133,326
Margin % 59.1% 98.5% 67.0% 16.4% 61.0%
Nuclear refueling outage expenses 60,945 - 37,790 - 98,735
Provision for turbine commitments, asset
impairments and restructuring charges - - 419,542 - 419,542
Other operation and maintenance 1,644,841 90,025 764,339 (2,664) 2,496,542
Decommissioning 1,776 - 35,341 - 37,117
Taxes other than income taxes 339,643 2,393 50,254 - 392,290
----------- --------- ---------- ----------- ----------
Total 4,741,805 92,886 1,903,299 (8,633) 6,729,358
----------- --------- ---------- ----------- ----------
EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION,
AND AMORTIZATION 1,845,101 (61,177) (96,318) 1,496 1,689,101
----------- --------- ---------- ----------- ----------
Margin % 28.0% (192.9%) (5.3%) (21.0%) 20.1%
DEPRECIATION AND AMORTIZATION:
Depreciation and amortization 682,340 5,174 58,068 - 745,583
Other regulatory charges (credits) (202,291) - - - (202,291)
----------- --------- ---------- ----------- ----------
Total 480,049 5,174 58,068 - 543,292
----------- --------- ---------- ----------- ----------
OPERATING INCOME (LOSS) 1,365,052 (66,351) (154,386) 1,496 1,145,809
----------- --------- ---------- ----------- ----------
Margin % 20.7% (209.2%) (8.5%) (21.0%) 13.6%
OTHER INCOME (DEDUCTIONS):
Allowance for equity funds used during construction 29,627 - - - 29,628
Gain/(loss) on sale of assets - net 2,936 47 3,721 - 6,705
Interest and dividend income 55,747 27,638 72,795 (26,210) 129,970
Equity in earnings of unconsolidated equity affiliates - - 155,218 - 155,218
Miscellaneous - net (32,895) 4,914 9,799 (1,496) (19,676)
----------- --------- ---------- ----------- ----------
Total 55,416 32,600 241,533 (27,706) 301,845
----------- --------- ---------- ----------- ----------
INTEREST AND OTHER CHARGES:
Interest on long-term debt 445,675 - 84,462 - 530,136
Other interest - net 90,425 36,870 22,284 (26,210) 123,369
Distributions on preferred securities of subsidiaries 18,838 - - - 18,838
Allowance for borrowed funds used during construction (23,918) - - - (23,918)
----------- --------- ---------- ----------- ----------
Total 531,019 36,870 106,746 (26,210) 648,425
----------- --------- ---------- ----------- ----------
INCOME (LOSS) BEFORE INCOME TAXES 889,449 (70,621) (19,599) - 799,229
INCOME TAXES 301,463 (3,391) 5,984 - 304,056
----------- --------- ---------- ----------- ----------
INCOME (LOSS) BEFORE CUMULATIVE EFFECT OF
ACCOUNTING CHANGE 587,986 (67,230) (25,583) - 495,173
CUMULATIVE EFFECT OF ACCOUNTING CHANGE (net of taxes) - - 23,482 - 23,482
----------- --------- ---------- ----------- ----------
CONSOLIDATED NET INCOME (LOSS) 587,986 (67,230) (2,101) - 518,655
PREFERRED DIVIDEND REQUIREMENTS OF SUBSIDIARIES
AND OTHER 22,791 - - - 22,791
----------- --------- ---------- ----------- ----------
EARNINGS (LOSS) APPLICABLE TO COMMON STOCK $ 565,195 $(67,230) $ (2,101) $ - $495,864
=========== ========= ========== =========== ==========
Margin % 8.6% (212.0%) (0.1%) - 5.9%
EARNINGS (LOSS) PER AVERAGE COMMON SHARE:
BASIC $2.54 ($0.30) ($0.01) $2.23
DILUTED $2.50 ($0.30) ($0.01) $2.19
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
BASIC 222,245,970
DILUTED 226,080,808
*Totals may not foot due to rounding.
Entergy Corporation
Consolidating Income Statement
Twelve Months Ended June 30, 2003 vs. 2002
Increase/(Decrease)
(Dollars in thousands)
(Unaudited)
U.S. Parent & Competitive Eliminations Consolidated
Utilities Other Businesses
OPERATING REVENUES:
Domestic electric $ 617,514 $ - $ - $ (396) $ 617,118
Natural gas 51,599 - - - 51,599
Competitive businesses - 39,854 (387,879) 101 (347,924)
---------- -------- ---------- ------------ ----------
Total 669,113 39,854 (387,879) (295) 320,793
OPERATING EXPENSES:
Operating and Maintenance:
Fuel, fuel related expenses, and gas purchased
for resale (87,396) - (284,698) - (372,094)
Purchased power 512,868 28,370 (116,462) (935) 423,841
---------- -------- ---------- ------------ ----------
Gross Margin 243,641 11,484 13,281 640 269,047
Margin % (2.1%) (38.8%) 19.3% (9.3%) 0.8%
Nuclear refueling outage expenses (1,328) - 37,455 - 36,127
Provision for turbine commitments, asset
impairments and restructuring charges - - (418,371) - (418,371)
Other operation and maintenance (130,189) (11,167) (23,693) 1,157 (163,892)
Decommissioning 58,553 - 16,225 - 74,777
Taxes other than income taxes (439) 717 1,571 - 1,849
---------- -------- ---------- ------------ ----------
Total 352,069 17,920 (787,973) 222 (417,763)
---------- -------- ---------- ------------ ----------
EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION,
AND AMORTIZATION 317,044 21,934 400,094 (517) 738,556
---------- -------- ---------- ------------- ----------
Margin % 1.8% 138.1% 26.7% 7.8% 7.7%
DEPRECIATION AND AMORTIZATION: -
Depreciation and amortization 98,441 (261) 911 - 99,091
Other regulatory charges (credits) 249,063 - - - 249,063
---------- -------- ---------- ------------ ----------
Total 347,504 (261) 911 - 348,154
---------- -------- ---------- ------------ ----------
OPERATING INCOME (LOSS) (30,460) 22,195 399,183 (517) 390,402
---------- -------- ---------- ------------ ----------
Margin % 2.3% 147.5% 25.8% (7.8%) 4.0%
OTHER INCOME (DEDUCTIONS):
Allowance for equity funds used during construction 4,053 - - - 4,053
Gain/(loss) on sale of assets - net 1,403 (174) (1,932) - (704)
Interest and dividend income (25,827) 9,383 30,229 (16,915) (3,130)
Equity in earnings of unconsolidated equity affiliates (2) - 143,764 - 143,762
Miscellaneous - net (86,873) (2,399) 24,441 517 (64,316)
---------- -------- ---------- ------------ ----------
Total (107,247) 6,809 196,502 (16,398) 79,664
---------- -------- ---------- ------------ ----------
INTEREST AND OTHER CHARGES:
Interest on long-term debt (3,292) 14,648 (43,847) - (32,490)
Other interest - net (74,183) 7,707 19,492 (16,915) (63,899)
Distributions on preferred securities of subsidiaries - - - - -
Allowance for borrowed funds used during construction (1,858) - - - (1,858)
---------- -------- ---------- ------------ ----------
Total (79,332) 22,355 (24,355) (16,915) (98,247)
---------- -------- ---------- ------------ ----------
INCOME (LOSS) BEFORE INCOME TAXES (58,375) 6,649 620,040 (1) 568,313
INCOME TAXES (30,955) (19,605) 196,057 - 145,497
---------- -------- ---------- ------------ ----------
INCOME (LOSS) BEFORE CUMULATIVE EFFECT OF
ACCOUNTING CHANGE (27,420) (26,254) (423,983) - 422,817
CUMULATIVE EFFECT OF ACCOUNTING CHANGE (net of taxes) (21,333) - 140,773 - 119,440
---------- -------- ---------- ------------ ----------
CONSOLIDATED NET INCOME (LOSS) (48,753) 26,254 564,756 - 542,257
PREFERRED DIVIDEND REQUIREMENTS OF SUBSIDIARIES
AND OTHER 841 - - - 841
---------- -------- ---------- ------------ ----------
EARNINGS (LOSS) APPLICABLE TO COMMON STOCK $ (49,594) $ 26,254 $ 564,756 $ - $ 541,416
========== ========= ========== ============ ==========
Margin % (1.5%) 154.8% 39.8% - 6.0%
EARNINGS (LOSS) PER AVERAGE COMMON SHARE:
BASIC ($0.24) $0.12 $2.52 $2.40
DILUTED ($0.24) $0.12 $2.47 $2.35
*Totals may not foot due to rounding.
Entergy Corporation
Consolidated Cash Flow Statement
Three Months Ended June 30, 2003 vs. 2002
(Dollars in thousands)
(Unaudited)
2003 2002 Variance
OPERATING ACTIVITIES
Consolidated net income $211,518 $247,584 ($36,066)
Noncash items included in net income:
Reserve for regulatory adjustments 2,260 2,966 (706)
Other regulatory charges (credits) - net 4,273 (170,645) 174,918
Depreciation, amortization, and decommissioning 239,806 224,069 15,737
Deferred income taxes and investment tax credits 41,504 21,852 19,652
Allowance for equity funds used during construction (9,704) (8,323) (1,417)
Cumulative effect of accounting change - - -
Gain on sale of assets - net (761) (1,009) 248
Equity in undistributed earnings of subsidiaries and unconsolidated affiliates 4,709 (15,718) 20,427
Provision for turbine commitments, asset impairments and restructuring charges - 18,169 (18,169)
Changes in working capital:
Receivables (226,233) (213,722) (12,511)
Fuel inventory (3,053) 5,900 (8,953)
Accounts payable 93,132 58,746 34,386
Taxes accrued 14,578 123,791 (109,213)
Interest accrued (5,008) 998 (6,006)
Deferred fuel 29,593 (44,615) 74,208
Other working capital accounts (91,219) 38,626 (129,845)
Provision for estimated losses and reserves 119,186 (7,407) 126,593
Changes in other regulatory assets (14,814) 188,101 (202,915)
Other 64,822 (20,283) 85,105
-------- -------- --------
Net cash flow provided by operating activities 474,553 449,080 25,473
-------- -------- --------
INVESTING ACTIVITIES
Construction/capital expenditures (403,548) (469,559) 66,011
Allowance for equity funds used during construction 9,740 8,323 1,417
Nuclear fuel purchases (14,290) (75,947) 61,657
Proceeds from sale/leaseback of nuclear fuel 12,202 40,336 (28,134)
Proceeds from sale of businesses (4,196) 108,267 (112,463)
Investment in other nonregulated/nonutility properties (1,253) (9,264) 8,011
Decrease (increase) in other investments (615) (294) (321)
Changes in other temporary investments - net - - -
Decommissioning trust contributions and realized change in trust assets (27,046) (12,147) (14,899)
Other regulatory investments (100,092) (29,755) (70,337)
Other 4,218 (6,036) 10,254
-------- -------- --------
Net cash flow used in investing activities (524,880) (446,076) (78,804)
-------- -------- --------
FINANCING ACTIVITIES
Proceeds from the issuance of:
Long-term debt 1,125,998 59,414 1,066,584
Common stock 78,264 46,336 31,928
Retirement of:
Long-term debt (200,075) (332,974) 132,899
Repurchase of common stock - - -
Redemption of preferred stock 0 0 -
Changes in credit line borrowings - net (170,000) 278,000 (448,000)
Dividends paid:
Common stock (79,212) (74,103) (5,109)
Preferred stock (5,876) (5,924) 48
-------- -------- --------
Net cash flow provided by (used in) financing activities 749,099 (29,251) 778,350
-------- -------- --------
Effect of exchange rates on cash and cash equivalents 1,554 (6,388) 7,942
-------- -------- --------
Net increase (decrease) in cash and cash equivalents 700,326 (32,635) 732,961
Cash and cash equivalents at beginning of period 377,455 763,295 (385,840)
-------- ---------- ---------
Cash and cash equivalents at end of period $1,077,781 $730,660 $347,121
======== ========== =========
Entergy Corporation
Consolidated Cash Flow Statement
Year to Date June 30, 2003 vs. 2002
(Dollars in thousands)
(Unaudited)
2003 2002 Variance
OPERATING ACTIVITIES
Consolidated net income $612,440 $174,601 $437,839
Noncash items included in net income:
Reserve for regulatory adjustments (12,080) 12,684 (24,764)
Other regulatory charges (credits) - net 19,526 (169,082) 188,608
Depreciation, amortization, and decommissioning 488,351 447,380 40,971
Deferred income taxes and investment tax credits 185,872 (171,328) 357,200
Allowance for equity funds used during construction (17,027) (15,004) (2,023)
Cumulative effect of accounting change (142,922) - (142,922)
Gain loss on sale of assets - net (1,062) (1,674) 612
Equity in undistributed earnings of subsidiaries and unconsolidated affiliates (123,352) (82,962) (40,390)
Provision for turbine commitments, asset impairments and restructuring charges (7,743) 419,542 (427,285)
Changes in working capital:
Receivables (268,990) (139,808) (129,182)
Fuel inventory (25,078) (7,332) (17,746)
Accounts payable (153,778) (9,974) (143,804)
Taxes accrued (12,266) 255,629 (267,895)
Interest accrued (28,685) (31,416) 2,731
Deferred fuel (96,306) 549 (96,855)
Other working capital accounts (81,639) (43,475) (38,164)
Provision for estimated losses and reserves 110,868 (8,576) 119,444
Changes in other regulatory assets (2,218) 186,824 (189,042)
Other 81,352 (13,595) 94,947
-------- -------- --------
Net cash flow provided by operating activities 525,263 802,983 (277,720)
-------- -------- --------
INVESTING ACTIVITIES
Construction/capital expenditures (678,162) (736,670) 58,508
Allowance for equity funds used during construction 17,027 15,004 2,023
Nuclear fuel purchases (126,446) (161,090) 34,644
Proceeds from sale/leaseback of nuclear fuel 39,089 132,472 (93,383)
Proceeds from sale of businesses 25,414 147,115 (121,701)
Investment in other nonregulated/nonutility properties (47,542) (19,057) (28,485)
Decrease (increase) in other investments (167,054) 39,460 (206,514)
Changes in other temporary investments - net - 150,000 (150,000)
Decommissioning trust contributions and realized change in trust assets (49,597) (27,894) (21,703)
Other regulatory investments (142,219) (29,755) (112,464)
Other (5,603) (2,690) (2,913)
-------- -------- --------
Net cash flow used in investing activities (1,135,093) (493,105) (641,988)
-------- -------- --------
FINANCING ACTIVITIES
Proceeds from the issuance of:
Long-term debt 1,482,495 299,431 1,183,064
Common stock 176,765 112,705 64,060
Retirement of:
Long-term debt (996,761) (910,908) (85,853)
Repurchase of common stock - - -
Redemption of preferred stock (2,250) (1,403) (847)
Changes in credit line borrowings - net (140,000) 334,333 (474,333)
Dividends paid:
Common stock (157,355) (147,328) (10,027)
Preferred stock (11,792) (11,873) 81
-------- -------- --------
Net cash flow used in financing activities 351,102 (325,043) 676,145
-------- -------- --------
Effect of exchange rates on cash and cash equivalents 1,181 (5,748) 6,929
-------- -------- --------
Net increase (decrease) in cash and cash equivalents (257,547) (20,913) (236,634)
Cash and cash equivalents at beginning of period 1,335,328 751,573 583,755
-------- ---------- ---------
Cash and cash equivalents at end of period $1,077,781 $730,660 $347,121
========= ======== =========