Exhibit 99.1
For further information: |
INVESTOR NEWS
October 21, 2004
ENTERGY REPORTS THIRD QUARTER EARNINGS
NEW ORLEANS - Entergy Corporation reported third quarter 2004 earnings of $1.22 per share on an as-reported basis and $1.39 on an operational basis, as shown in Table 1 below. A more detailed discussion of quarterly results begins on page 2 of this release.
Table 1: Consolidated Earnings Summary - Reconciliation of GAAP to Non-GAAP Measures | ||||||
Third Quarter and Year-to-Date 2004 vs. 2003 | ||||||
(Per share in U.S. $) | ||||||
Third Quarter | Year-to-Date | |||||
2004 | 2003 | Change | 2004 | 2003 | Change | |
As-Reported Earnings | 1.22 | 1.57 | (0.35) | 3.24 | 4.19 | (0.95) |
Less Special Items | (0.17) | 0.00 | (0.17) | (0.05) | 0.32 | (0.37) |
Operational Earnings | 1.39 | 1.57 | (0.18) | 3.29 | 3.87 | (0.58) |
Weather Impact | (0.10) | (0.01) | (0.09) | (0.11) | (0.02) | (0.09) |
Earnings Highlights for Third Quarter 2004
- Utility, Parent & Other results were 4 percent lower compared to third quarter 2003 due primarily to extremely mild weather and higher operation and maintenance expenses.
- Entergy Nuclear results increased 12 percent over the same period last year due to improved contract pricing and reevaluation of decommissioning liabilities, partially offset by lower generation due to plant outages.
- Energy Commodity Services results were significantly lower due to a loss recorded at Entergy-Koch, LP.
"The mildest weather in more than a decade impacted our results this quarter but the underlying strength of our business fundamentals remains sound," saidJ. Wayne Leonard, Entergy's chief executive officer. "Sales in the utility reflected solid growth, after adjusting for the unusual weather, our nuclear business recorded improved results in spite of several unplanned outages, and we continue to distribute value created to our shareholders with the second stepwise increase in the dividend in less than two years."
Other Quarterly Highlights:
- Entergy confirms $1.5 billion share repurchase with the announcement that a definitive agreement had been reached to sell the energy trading business of Entergy-Koch, LP to Merrill Lynch & Co.
- Entergy's Board of Directors approves a 20 percent increase in the common stock dividend effective for the December 1 payment following a 29 percent increase in the dividend approved in July 2003.
Entergy will host a teleconference to discuss this release at 10:00 a.m. CDT, Thursday, October 21, 2004, with access by telephone, 913-981-5532, confirmation code 211385. The call can also be accessed and the presentation slides can be viewed via Entergy's web site at www.entergy.com/webcasts. A replay of the teleconference will be available for seven days following the teleconference by dialing 719-457-0820, confirmation code 211385. The replay will also be available on Entergy's web site at www.entergy.com/webcasts.
Table of Contents | Page |
2 | |
3 | |
4 | |
Entergy Nuclear | 5 |
Energy Commodity Services | 5 |
6 | |
9 | |
10 | |
A. Variance Analysis and Special Items | 10 |
B. Regulatory Summary and Calendar | 12 |
C. Entergy-Koch Operating Performance | 15 |
D. Earnings Sensitivities | 15 |
E. Financial Performance Measures and Historical Performance Measures | 16 |
F. Capital Expenditures and Debt Maturities | 18 |
G. Definitions | 19 |
H. Non-GAAP to GAAP Reconciliations | 21 |
VII. Financial Statements | 23 |
I.Consolidated Results
Consolidated Earnings
Table 2 provides a comparative summary of consolidated earnings per share for third quarter and year-to-date 2004 versus 2003, including a reconciliation of GAAP as-reported earnings to non-GAAP operational earnings.
Table 2: Consolidated Earnings - - Reconciliation of GAAP to Non-GAAP Measures | ||||||
(Per share in U.S. $) | ||||||
Third Quarter | Year-to-Date | |||||
2004 | 2003 | Change | 2004 | 2003 | Change | |
As-Reported | ||||||
Utility, Parent & Other | 1.11 | 1.16 | (0.05) | 2.48 | 2.10 | 0.38 |
Entergy Nuclear | 0.28 | 0.25 | 0.03 | 0.84 | 1.31 | (0.47) |
Energy Commodity Services | ||||||
Non-nuclear wholesale assets | 0.02 | (0.02) | 0.04 | (0.01) | (0.03) | 0.02 |
Entergy-Koch Trading | (0.21) | 0.17 | (0.38) | (0.14) | 0.74 | (0.88) |
Gulf South Pipeline | 0.02 | 0.01 | 0.01 | 0.07 | 0.07 | - |
Total Energy Commodity Services | (0.17) | 0.16 | (0.33) | (0.08) | 0.78 | (0.86) |
Consolidated As-Reported Earnings | 1.22 | 1.57 | (0.35) | 3.24 | 4.19 | (0.95) |
Less Special Items | ||||||
Utility, Parent & Other | - | - | - | - | (0.38) | 0.38 |
Entergy Nuclear | - | - | - | - | 0.70 | (0.70) |
Energy Commodity Services | ||||||
Non-nuclear wholesale assets | 0.02 | - | 0.02 | 0.02 | - | 0.02 |
Entergy-Koch Trading | (0.21) | - | (0.21) | (0.14) | - | (0.14) |
Gulf South Pipeline | 0.02 | - | 0.02 | 0.07 | - | 0.07 |
Total Energy Commodity Services | (0.17) | - | (0.17) | (0.05) | - | (0.05) |
Consolidated Special Items | (0.17) | - | (0.17) | (0.05) | 0.32 | (0.37) |
Operational | ||||||
Utility, Parent & Other | 1.11 | 1.16 | (0.05) | 2.48 | 2.48 | - |
Entergy Nuclear | 0.28 | 0.25 | 0.03 | 0.84 | 0.61 | 0.23 |
Energy Commodity Services | ||||||
Non-nuclear wholesale assets | - | (0.02) | 0.02 | (0.03) | (0.03) | - |
Entergy-Koch Trading | - | 0.17 | (0.17) | - | 0.74 | (0.74) |
Gulf South Pipeline | - | 0.01 | (0.01) | - | 0.07 | (0.07) |
Total Energy Commodity Services | - | 0.16 | (0.16) | (0.03) | 0.78 | (0.81) |
Consolidated Operational Earnings | 1.39 | 1.57 | (0.18) | 3.29 | 3.87 | (0.58) |
Weather Impact | (0.10) | (0.01) | (0.09) | (0.11) | (0.02) | (0.09) |
Detailed earnings variance analysis is included in appendices A-1 and A-2 to this release. In addition, appendix A-3 provides details of special items shown in Table 2 above.
Consolidated Net Cash Flow Provided by Operating Activities
Entergy's net cash flow provided by operating activities in third quarter 2004 was $785 million, an increase of $134 million compared to third quarter 2003. The change was due primarily to:
- Increased recovery of previously deferred fuel expense at Utility.
- Increased revenues resulting from improved contract pricing at Entergy Nuclear.
- Lower tax payments at Energy Commodity Services.
Entergy's net cash flow provided by operating activities year-to-date through September 2004 increased more than $500 million compared to the same period in 2003. Entergy's net cash flow provided by operating activities for the full year 2004 is projected to be more than $2 billion.
Table 3 provides the components of net cash flow provided by operating activities contributed by each business with quarter-to-quarter and year-to-date comparisons.
Table 3: Consolidated Net Cash Flow Provided by Operating Activities | ||||||
Third Quarter and Year-to-Date 2004 vs. 2003 | ||||||
(U.S. $ in millions) | ||||||
Third Quarter | Year-to-Date | |||||
2004 | 2003 | Change | 2004 | 2003 | Change | |
Utility, Parent & Other | 637 | 571 | 66 | 1,318 | 1,109 | 209 |
Entergy Nuclear | 160 | 125 | 35 | 425 | 198 | 227 |
Energy Commodity Services (a) | (12) | (45) | 33 | (29) | (131) | 102 |
Total Net Cash Provided by Operating Activities | 785 | 651 | 134 | 1,714 | 1,176 | 538 |
(a) Energy Commodity Services' cash amount above includes contributions from Entergy's investment in Entergy-Koch, LP that are recognized in Entergy Corporation's financial statements such as dividends received and taxes paid.
II.Utility, Parent & Other Results
In third quarter 2004, Utility, Parent & Other earned $1.11 per share on both as-reported and operational earnings bases compared to third quarter 2003 results of $1.16 per share. Earnings in third quarter 2004 reflect:
- Extremely mild weather in 2004 compared to near normal weather experienced in third quarter 2003.
- Higher operation and maintenance expenses due primarily to the continuation of increased employee benefits expenses, referenced in second quarter results, and timing differences.
- Lower interest expense due to debt refinancing efforts in 2003.
- Reevaluation of the decommissioning liability, in connection with the preparation of a new study in July 2004, to reflect life extension on the River Bend nuclear plant.
Electricity usage, in gigawatt-hour sales by customer segment, is included in Table 4 below. Current quarter sales reflect the following:
- Residential sales in third quarter 2004, on a weather-adjusted basis, were up 2 percent compared to third quarter 2003.
- Commercial and governmental sales, on a weather-adjusted basis, were up nearly 4 percent.
- Industrial sales experienced an increase of nearly 5 percent in third quarter 2004 compared to prior quarter with usage by the petroleum refining, chemical and primary metals sectors leading the growth.
Table 4 provides a comparative summary of the Utility's operational performance measures.
Table 4: Utility Operational Performance Measures | ||||||||
Third Quarter and Year-to-Date 2004 vs. 2003 (see appendix G for definitions of measures) | ||||||||
Third Quarter | Year-to-Date | |||||||
2004 | 2003 | % Change | % Weather Adjusted | 2004 | 2003 | % Change | % Weather Adjusted | |
Generation in GWh | 22,815 | 21,438 | 6.4% | 60,363 | 59,884 | 0.8% | ||
GWh billed | ||||||||
Residential | 10,738 | 10,763 | (0.2%) | 2.3% | 25,375 | 25,776 | (1.6%) | 0.6% |
Commercial and governmental | 8,468 | 8,276 | 2.3% | 3.7% | 21,784 | 21,558 | 1.0% | 1.9% |
Industrial | 10,456 | 9,975 | 4.8% | 4.8% | 29,868 | 28,855 | 3.5% | 3.5% |
Total Retail Sales | 29,662 | 29,014 | 2.2% | 3.5% | 77,027 | 76,189 | 1.1% | 2.1% |
Wholesale | 2,040 | 2,093 | (2.5%) | 6,825 | 7,196 | (5.2%) | ||
Total Sales | 31,702 | 31,107 | 1.9% | 83,852 | 83,385 | 0.6% | ||
O&M expense (b) | $12.97 | $12.17 | 6.6% | $13.90 | $13.32 | 4.4% | ||
Number of retail customers | ||||||||
Residential | 2,283,884 | 2,259,529 | 1.1% | |||||
Commercial & governmental | 329,651 | 321,696 | 2.5% | |||||
Industrial | 44,238 | 43,042 | 2.8% | |||||
- O&M expense per megawatt hour has been redefined for current and comparable periods to reflect billed megawatt-hour sales as the denominator instead of megawatt-hours generated as previously used in the calculation.
Appendix B provides information on selected pending local and federal regulatory cases, including a calendar of scheduled events and potential financial impacts.
III.Competitive Businesses Results
Entergy's competitive businesses include Entergy Nuclear and Energy Commodity Services. Table 5 provides a summary of Competitive Businesses' capacity and generation sold forward as of the end of the third quarter 2004.
Entergy Nuclear has sold 100%, 95%, and 79% of planned generation at average prices per megawatt-hour of $38, $39 and $39, for the remainder of 2004, 2005 and 2006, respectively. Energy Commodity Services has sold 62%, 58% and 42% of its planned energy and capacity revenues at average prices per megawatt-hour of $23, $24 and $24, for the same periods.
Remainder of 2004 through 2008 (see appendix G for definitions of measures) | |||||
| Remainder of 2004 | 2005(c) | 2006(c) | 2007(c) | 2008(c) |
Entergy Nuclear (EN) | |||||
Energy | |||||
Planned TWh of generation | 8 | 34 | 35 | 34 | 34 |
Percent of EN's planned generation sold forward | |||||
Unit-contingent | 57% | 37% | 31% | 18% | 13% |
Unit-contingent with availability guarantees | 43% | 54% | 44% | 31% | 16% |
Firm liquidated damages (LD) | 0% | 4% | 4% | 2% | 0% |
Total | 100% | 95% | 79% | 51% | 29% |
Average contract price per MWh | $38 | $39 | $39 | $39 | $40 |
Capacity | |||||
Planned net MW in operation | 4,061 | 4,158 | 4,203 | 4,203 | 4,203 |
Percent of EN's capacity sold forward | |||||
Bundled capacity and energy contracts | 55% | 16% | 13% | 13% | 13% |
Capacity contracts | 41% | 47% | 32% | 13% | 0% |
Total | 96% | 63% | 45% | 26% | 13% |
Average capacity contract price per kW per month | $0.5 | $1.3 | $1.2 | $1.3 | N/A |
Blended Capacity and Energy Recap (based on revenues) | |||||
Percent of EN's planned energy and capacity sold forward | 99% | 93% | 73% | 45% | 26% |
Average contract revenue per MWh | $39 | $40 | $39 | $39 | $40 |
Energy Commodity Services (ECS) | |||||
Capacity | |||||
Net MW in operation | 1,753 | 1,753 | 1,753 | 1,753 | 1,753 |
Percent of ECS's capacity sold forward | 41% | 44% | 33% | 29% | 29% |
Energy | |||||
Planned TWh of generation | 1 | 3 | 3 | 4 | 4 |
Percent of ECS's planned generation sold forward | |||||
Unit-contingent | 8% | 7% | 7% | 6% | 6% |
Unit-contingent with availability guarantees | 49% | 60% | 46% | 35% | 33% |
Firm liquidated damages (LD) | 13% | 0% | 0% | 0% | 0% |
Total | 70% | 67% | 53% | 41% | 39% |
Blended Capacity and Energy Recap (based on revenues) | |||||
Percent of ECS's planned energy and capacity sold forward | 62% | 58% | 42% | 33% | 31% |
Average contract revenue per MWh | $23 | $24 | $24 | $28 | $27 |
| |||||
(c) A portion of EN's total planned generation sold forward-2% in 2005, 13% in 2006, 12% in 2007 and 12% in 2008-is associated with the Vermont Yankee contract for which pricing may be adjusted. |
Entergy Nuclear
Entergy Nuclear (EN) earned $0.28 per share on both as-reported and operational bases in third quarter 2004, compared to $0.25 per share in third quarter 2003. Improvement in EN's earnings for third quarter 2004 resulted primarily from:
- Increased revenue due to higher contract pricing and the addition of a support services contract for the Cooper Nuclear Station.
- A reduction in the Statement of Financial Accounting Standards No.143 decommissioning liability to reflect changes in assumptions on probability of life extension which were evaluated as part of recent updates of decommissioning related studies.
These positive effects were partially offset by lower generation due to unplanned and planned outages during the period at Vermont Yankee, Indian Point 2 and FitzPatrick.
Other Entergy Nuclear highlights included:
- Capacity factor for the fleet continued above 90% for third quarter 2004 in spite of three unplanned outages; year-to-date capacity factor is nearly 95%.
- Average production costs increased due to a combination of lower generation and higher operation and maintenance expenses in third quarter 2004 compared to one year ago. On a year-to-date basis, production costs reflect a 9% decrease compared to the same period in 2003.
Table 6 provides a comparative summary of Entergy Nuclear's operational performance measures.
Table 6: Entergy Nuclear Operational Performance Measures | ||||||
Third Quarter and Year-to-Date 2004 vs. 2003 (see appendix Gfor definitions of measures) | ||||||
Third Quarter | Year-to-Date | |||||
2004 | 2003 | % Change | 2004 | 2003 | % Change | |
Net MW in operation | 4,001 | 4,001 | 0% | |||
Average realized price per MWh | $43.38 | $40.96 | 6% | |||
Production cost per MWh | $21.68 | $20.03 | 8% | $19.52 | $21.49 | -9% |
Generation in GWh | 8,075 | 8,246 | -2% | 24,957 | 23,676 | 5% |
Capacity factor | 91.6% | 93.6% | -2% | 94.7% | 90.5% | 5% |
Refueling outage days: | ||||||
No refueling outages completed during the quarter | ||||||
Energy Commodity Services
Energy Commodity Services (ECS) includes the earnings contributions from Entergy-Koch, LP and Entergy's non-nuclear wholesale assets business. Entergy-Koch incurred a loss of $(0.19) per share on an as-reported basis in third quarter 2004 compared to earnings of $0.18 per share in the same period of 2003. Factors that contributed to the quarter to quarter decrease were:
A change in the venture's ability to apply hedge accounting to certain transactions as a result of signing a definitive agreement to sell its energy trading business. Because of the pending sale, EKLP's auditors deemed the company unable to represent that forward sales entered into to offset physical positions were "probable" as required by the accounting literature.
The exclusion for accounting purposes of the mark-to-market value of certain contracts entered into to hedge physical gas storage positions because they do not meet the requirements under Statement of Financial Accounting Standards No. 133 for deferring the mark-to-market change in equity rather than recording it in income.
These two items comprised substantially all of the loss at EK for the period, but are expected to turnaround when the sale of the trading business is closed. This turnaround effect will be considered in Entergy's determination of the overall gain or loss on the sales of trading and pipeline businesses as well as termination of the venture. Gulf South Pipeline contributed $0.02 in earnings per share in third quarter 2004 compared to $0.01 per share in the same period last year.
Earnings from Entergy-Koch, LP are excluded from ECS operational earnings consistent with Entergy's announcement in September 2004 of the sale of EKLP's trading business and its intent to sell Gulf South Pipeline. ECS had no earnings on an operational basis in third quarter 2004, compared to earnings of $0.16 per share in the same period last year reflecting the inclusion of earnings from Entergy-Koch, LP, as discussed above.
Appendix C includes additional information on Entergy-Koch LP's operational performance.
IV.Earnings Guidance
"We project operational earnings in the range of $3.70 to $3.80 per share for full year 2004 in spite of the disappointing results produced this quarter due to the mild weather we experienced across our service territory," saidLeo Denault, Entergy's chief financial officer. "We are reaffirming 2005 guidance in the range of $4.60 to $4.85 per share on both as-reported and operational bases. Key assumptions supporting this guidance include normal weather, the continued successful execution of operating strategies across our businesses and the planned share repurchases under our previously announced $1.5 billion program."
The company revised 2004 as-reported earnings guidance to a range of $3.65 to $3.75 per share from a previous range of $3.83 to $4.03 per share to reflect special items recorded in the third quarter 2004. As-reported earnings guidance may be further revised in the future to reflect 1) actual results realized by Entergy-Koch, LP in the fourth quarter and 2) any gain or loss which is expected to result from the combination of the sales of Entergy-Koch Trading and Gulf South Pipeline and the liquidation of the Entergy-Koch, LP at such time as the amount of the gain or loss can be reasonably estimated (as described in the company's Form 8-K filed with the Securities and Exchange Commission on September 2, 2004). Entergy does not expect any significant gains or losses to result from these asset sales and the EKLP liquidation in 2004 or 2005.
Entergy's 2004 earnings guidance is detailed in Table 7 on the following page, with September 2004 year-to-date actual results as its starting point. This table contains "forward looking statements" as defined on page 22 and should be read in conjunction with that section of this release. This table reflects the projected changes in the earnings profile for each of Entergy's businesses for the remainder of 2004 based upon how the fourth quarter of 2004 is expected to differ from the same period in 2003. Entergy-Koch's year-to-date earnings contribution and earnings projected through closing are treated as a special item, thereby impacting 2004 as-reported but not operational earnings per share.
Other key assumptions are as follows:
Utility, Parent & Other
- Baseline operational earnings for the last quarter of 2003 of $0.16 per share in earnings per share after adjusting for $0.03 per share of unfavorable weather
- Net improvement in revenues achieved by sales growth in the range of 1.5 to 2.0%
- Decreased O&M expense due to the turnaround of third quarter timing differences and lower competitive retail expenses
Entergy Nuclear
- Baseline operational earnings for the last quarter of 2003 of $0.24 in earnings per share
- Increased revenues from higher contract pricing in 2004 compared to 2003
- Lower operation and maintenance and other expenses resulting from productivity improvement initiatives designed to reduce overall costs within the competitive nuclear fleet
- Decreased revenues due to more refueling outages (refueling outages at FitzPatrick and Indian Point 2 in fourth quarter 2004 vs. none in fourth quarter 2003)
Energy Commodity Services
- Baseline operational earnings for the last quarter of 2003 of ($0.07) in earnings per share, excluding earnings from Entergy-Koch, LP
- Reduced losses at non-nuclear wholesale assets due to improved plant performance and reduced overhead expenses
Table 7: 2004 Earnings Per Share Guidance Based on September 2004 Year-To-Date Earnings | ||||||||
(Per share in U.S. $) | ||||||||
September 2004 Year-To-Date | Operational/Special Item | 2004 | ||||||
Range of Impact | ||||||||
Utility, Parent & Other | ||||||||
As-Reported | 2.48 | |||||||
Less special items | - | Operational items: | ||||||
Operational | 2.48 | 2003 Operational Results | 0.16 | 0.16 | ||||
Sales growth | 0.03 | 0.04 | ||||||
Decreased O&M expense | 0.04 | 0.06 | ||||||
Other | (0.01) | 0.01 | ||||||
Total Operational | 0.22 | 0.27 | 2.70 | 2.75 | ||||
Special items: | ||||||||
None | ||||||||
Total As-reported | 2.70 | 2.75 | ||||||
Entergy Nuclear | ||||||||
As-Reported | 0.84 | |||||||
Less special items | - | Operational items: | ||||||
Operational | 0.84 | 2003 Operational Results | 0.24 | 0.24 | ||||
Higher contract pricing | 0.02 | 0.03 | ||||||
Decreased expenses | 0.02 | 0.03 | ||||||
Additional refueling |
|
| ||||||
Total Operational | 0.22 | 0.26 | 1.06 | 1.10 | ||||
Special items: | ||||||||
None | ||||||||
Total As-reported | 1.06 | 1.10 | ||||||
Energy Commodity Services | ||||||||
As-Reported | (0.08) | |||||||
Less special items | (0.05) | Operational items: | ||||||
Operational | (0.03) | 2003 Operational Results | (0.07) | (0.07) | ||||
Reduced losses from non- |
|
| ||||||
Total Operational | (0.03) | (0.02) | (0.06) | (0.05) | ||||
Special items: | ||||||||
None | ||||||||
Total As-reported | (0.11) | (0.10) | ||||||
Consolidated Total | ||||||||
As-Reported | 3.24 | |||||||
Less special items | (0.05) | |||||||
Operational | 3.29 | Total Operational for 2004 | 0.41 | 0.51 | 3.70 | 3.80 | ||
Total As-reported for 2004 | 0.41 | 0.51 | 3.65 | 3.75 |
Appendix D provides estimates of earnings per share sensitivities related to variables that impact utility and nuclear results.
Entergy's 2005 earnings guidance is detailed in Table 8 below, with the midpoint of 2004 guidance as its starting point. Guidance for 2005 is based on the assumption that the sale of Entergy-Koch Trading is completed prior to year-end 2004 and the sale of Gulf South Pipeline is imminent at year-end, and further, that the company executes incremental share repurchases under its recently announced $1.5 billion repurchase program. Other key assumptions are as follows:
Utility, Parent & Other
- Normal weather
- Increased revenue from the impact of rate cases and sales growth projected in the 1.5 to 2.0% range
- Increased operation and maintenance expenses associated with inflation, benefits costs and assets acquired under the generation supply plan
- Decreased interest expense
- Accretion from the share repurchase program
Entergy Nuclear
- Increased revenues due to an approximate $1 per megawatt hour increase in the pricing of power purchase agreements, which is expected to average about $39 per megawatt-hour in 2005
- Increased revenues due to power uprates completed
- Capacity factor assumption for the fleet ranges from 92 to 95% including planned refueling outages at Indian Point 3 and Pilgrim in spring 2005 and Vermont Yankee in fall 2005
- Lower operation and maintenance expense achieved from additional productivity improvements at Entergy Nuclear
- Increased depreciation and other expenses
- Accretion from the share repurchase program
Non-Nuclear Wholesale Assets
- Increased losses from non-nuclear wholesale assets
Entergy-Koch, LP
- No contribution based on the September 2004 announcement of the pending sale of EKLP's trading business and the intended sale of Gulf South Pipeline. Any earnings recorded on either business will be treated as special items
Share Repurchase Program
- Repurchases of 17 to 22 million shares are completed from August 2004 through December 2005 under the announced $1.5 billion repurchase program
Table 8: 2005 Earnings Per Share Guidance | |||||||||
(Per share in U.S. $) | |||||||||
2004 Earnings Per Share | Operational/Special Item | Range of Impact | 2005 | ||||||
Utility, Parent & Other | |||||||||
As-Reported | 2.73 | ||||||||
Less Special Items | - | Operational items: | |||||||
Operational | 2.73 | Adjustment to normalize weather | 0.11 | 0.11 | |||||
Increased revenue due to rate actions and sales growth | 0.41 | 0.47 | |||||||
Increased O&M expense | (0.09) | (0.07) | |||||||
Decreased interest expense | 0.05 | 0.06 | |||||||
Accretion from share repurchase program | 0.17 | 0.22 | |||||||
Other | 0.02 | 0.03 | |||||||
Total Operational | 0.67 | 0.82 | 3.40 | 3.55 | |||||
Special items: | |||||||||
None | |||||||||
Total As-reported | 3.40 | 3.55 | |||||||
Entergy Nuclear | |||||||||
As-Reported | 1.08 | ||||||||
Less Special Items | - | Operational items: | |||||||
Operational | 1.08 | Higher contract pricing | 0.09 | 0.10 | |||||
Increased generation | 0.07 | 0.08 | |||||||
Productivity improvements | 0.08 | 0.09 | |||||||
Accretion from share repurchase program | 0.10 | 0.15 | |||||||
Increased depreciation/other | (0.12) | (0.11) | |||||||
Total Operational | 0.22 | 0.31 | 1.30 | 1.39 | |||||
Special items: | |||||||||
None | |||||||||
Total As-reported | 1.30 | 1.39 | |||||||
Non-Nuclear Wholesale Assets | |||||||||
As-Reported | (0.04) | ||||||||
Less Special Items | 0.02 | Operational items: | |||||||
Operational | (0.06) | Increased losses from non-nuclear wholesale assets | (0.04) | (0.03) | |||||
Total Operational | (0.04) | (0.03) | (0.10) | (0.09) | |||||
Special items: | |||||||||
Absence of 04 special item | (0.02) | (0.02) | |||||||
Total As-reported | (0.06) | (0.05) | (0.10) | (0.09) | |||||
Entergy-Koch, LP | |||||||||
As-Reported | (0.07) | ||||||||
Less Special Items | (0.07) | Operational items: | |||||||
Operational | 0.00 | No continuing operations | - | - | |||||
Total Operational | - | - | - | - | |||||
Special items: | |||||||||
Absence of 04 special item | 0.07 | 0.07 | |||||||
Total As-reported | 0.07 | 0.07 | - | - | |||||
Consolidated Total | |||||||||
As-Reported | 3.70 | ||||||||
Less Special Items | (0.05) | ||||||||
Operational | 3.75 | Total Operational for 2005 | 0.85 | 1.10 | 4.60 | 4.85 | |||
Total As-reported for 2005 | 0.90 | 1.15 | 4.60 | 4.85 |
V.Growth and Liquidity Aspirations
One of Entergy's financial aspirations is to deliver near-term earnings growth of 8-10% in 2005 and 2006. The company believes that this goal can be reasonably achieved through a combination of intrinsic growth and accretion due to share repurchases. Other financial aspirations include improving returns on invested capital, achieving various credit metric improvements and providing annual dividend increases.
Over the long-term, Entergy also aspires to deliver earnings growth of 5-6%, equal to top-quartile industry growth over the last 20 years, to achieve a 9% return on invested capital, and to achieve a single-A credit rating. The company's ability to achieve or exceed these aspirations will be based upon a combination of intrinsic growth, accretion due to share repurchases and the deployment of capital into new investments over time.
Table 9 provides details on Entergy's projected cash available for capital deployment for the period 2004 through 2006. After considering a range of potential proceeds from the anticipated sale of Entergy-Koch, LP, Entergy expects to have $1.4 billion of cash available over the 2004-2006 period for three potential uses: investments in new businesses or assets, repayment of debt, or dividend increases. Sources shown on the table include additional 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. Similarly, share repurchases reflected on the table are based upon the $1.5 billion program currently in place, as well as the existing authorization in place to fund the exercise of employee stock options. The amount of repurchases may vary as a result of material changes in business results or capital spending or mate rial new investment opportunities.
Table 9: Projected Cash Available for Capital Redeployment | ||
($ in billions) | 2004-2006 | |
Net cash flow provided by operating activities | 6.9 | |
Less: | ||
Net nuclear fuel purchases | 0.4 | |
Decommissioning trust contributions | 0.4 | |
Operating cash flow | 6.1 | |
Planned maintenance capital expenditures | (2.6) | |
Preferred and common dividends | (1.4) | |
Free cash flow | 2.1 | |
Net stock repurchases (includes repurchases under existing and new programs less potential sale proceeds) | (0.8) | |
Planned growth capital commitments | (1.2) | |
Additional debt capacity (net of maturities) | 1.3 | |
Net Cash Available for New Investment, Debt Retirement, Dividend Increase | 1.4 | |
Appendix F-1 provides details on planned capital expenditures by business, and appendix F-2 includes a summarized schedule of debt maturities.
VI.Appendices
Eight appendices are presented in this section as follows:
- Appendix A includes earnings per share variance analysis and details on special items that relate to the current quarter and year-to-date periods.
- Appendix B provides information on selected pending local and federal regulatory cases, including a calendar of scheduled events and potential financial impacts.
- Appendix C provides details on Entergy-Koch, LP's operating activities in the current period.
- Appendix D provides estimates of earnings per share sensitivities related to variables that impact utility and nuclear results.
- Appendix E provides financial metrics for both current and historical periods. In addition, historical financial and operating performance metrics are included for the trailing eight quarters.
- Appendix F provides a summary of planned capital expenditures for the next three years along with a summary schedule of debt maturities by business.
- Appendix G provides definitions of the operational performance measures and GAAP and non-GAPP financial measures that are used in this release.
- Appendix H provides a reconciliation of GAAP and non-GAAP financial measures used in this release.
Appendix A-1 and A-2 provide details of third quarter and year-to-date 2004 vs. 2003 earnings variance analyses for "Utility, Parent & Other," "Competitive Businesses," and "Consolidated."
Appendix A-1: As-Reported Earnings Per Share Variance Analysis | |||||||
Third Quarter 2004 vs. 2003 | |||||||
(Per share in U.S. $, sorted in consolidated | |||||||
column, most to least favorable) | Utility, | Competitive | |||||
Parent & Other | Businesses | Consolidated | |||||
2003 earnings | 1.16 | 0.41 | 1.57 | ||||
Net revenue | - | 0.05 | (d) | 0.05 | |||
Interest expense and other charges | 0.04 | 0.01 | 0.05 | ||||
Share repurchase/accretion effect | 0.01 | - | 0.01 | ||||
Nuclear refueling outage expense | (0.01) | - | (0.01) | ||||
Interest and dividend income | - | (0.01) | (0.01) | ||||
Taxes other than income taxes | (0.02) | - | (0.02) | ||||
Income taxes - other | (0.01) | (0.01) | (0.02) | ||||
Depreciation/amortization expense | (0.04) | - | (0.04) | ||||
Other operation & maintenance expense | (0.08) | (e) | (0.02) | (0.10) | |||
Other income (deductions) | 0.06 | (f) | (0.32) | (g) | (0.26) | ||
2004 earnings | 1.11 | 0.11 | 1.22 | ||||
Appendix A-2: As-Reported Earnings Per Share Variance Analysis | |||||||
Year-to-Date 2004 vs. 2003 | |||||||
(Per share in U.S. $, sorted in consolidated | |||||||
column, most to least favorable) | Utility, | Competitive | |||||
Parent & Other | Businesses | Consolidated | |||||
2003 earnings | 2.10 | 2.09 | 4.19 | ||||
Net revenue | 0.02 | 0.18 | (d) | 0.20 | |||
Interest expense and other charges | 0.09 | (h) | - | 0.09 | |||
Income taxes - other | 0.03 | 0.02 | 0.05 | ||||
Decommissioning expense | - | (0.01) | (0.01) | ||||
Nuclear refueling outage expense | (0.01) | (0.01) | (0.02) | ||||
Taxes other than income taxes | (0.03) | - | (0.03) | ||||
Interest and dividend income | - | (0.03) | (0.03) | ||||
Share repurchase/dilution effect | (0.02) | (0.01) | (0.03) | ||||
Depreciation/amortization expense | (0.04) | (0.03) | (0.07) | ||||
Other operation & maintenance expense | (0.13) | (e) | 0.05 | (i) | (0.08) | ||
Other income (deductions) | 0.38 | (f) | (0.77) | (g) | (0.39) | ||
Cumulative effect of accounting changes | 0.09 | (j) | (0.72) | (j) | (0.63) | ||
2004 earnings | 2.48 | 0.76 | 3.24 | ||||
- Net revenue increased in third quarter 2004 due primarily to the reduction of
Utility Net Revenue Variance Analysis
2004 vs. 2003 ($ EPS)Third Quarter
Year-to-Date
Weather
(0.09)
Weather
(0.09)
Sales growth/pricing
0.03
Sales growth/pricing
0.12
Competitive retail
0.03
Competitive retail
0.11
Other
0.03
Other
(0.12)
Total
-
Total
0.02
asset sale reserves and higher revenues from Entergy Nuclear due primarily to improved pricing. For the year-to-date period, net revenue increased due to higher revenue at Entergy Nuclear resulting from higher pricing and fewer planned and unplanned outages.
- Other operation and maintenance expense increased for the quarter due primarily to higher benefits expenses and timing. The year-to-date increase was due primarily to higher benefits and customer support expenses as well as higher expenses in the competitive retail business.
- Other income (deductions) for the quarter increased due primarily to a reevaluation of River Bend's decommissioning liability. The year-to-date increase was due primarily to the absence of the River Bend loss provision recorded in second quarter 2003.
- Other income (deductions) decreased due primarily to lower Entergy-Koch earnings partially offset by a reevaluation of decommissioning liabilities at Entergy Nuclear.
- Interest expense and other charges decreased due primarily to debt retirements and refinancings completed in 2003.
- Other operation and maintenance expense decreased year-to-date due primarily to productivity improvements achieved at Entergy Nuclear.
- Cumulative effect of accounting changes primarily reflects the financial impact of the implementation of SFAS 143, the effect of which was originally recorded in first quarter 2003.
Appendix A-3 lists special items by business with quarter-to-quarter and year-to-date comparisons. Amounts are shown on both earnings per share and net income bases. Special items are those events that are less routine, are related to prior periods, or are related to discontinued businesses. Special items are included in as-reported earnings per share consistent with generally accepted accounting principles (GAAP), but are excluded from operational earnings per share. As a result, operational earnings per share is considered a non-GAAP measure.
Appendix A-3: Special Items (shown as positive / (negative) impact on earnings) | ||||||
Third Quarter and Year-to-Date 2004 vs. 2003 | ||||||
(Per share in U.S. $) | ||||||
Third Quarter | Year-to-Date | |||||
2004 | 2003 | Change | 2004 | 2003 | Change | |
Utility, Parent & Other | ||||||
SFAS 143 implementation | - | - | - | - | (0.09) | 0.09 |
River Bend loss provision | - | - | - | - | (0.29) | 0.29 |
Subtotal | - | - | - | - | (0.38) | 0.38 |
Competitive Businesses Special Items | ||||||
Entergy Nuclear | ||||||
SFAS 143 implementation | - | - | - | - | 0.70 | (0.70) |
Energy Commodity Services | - | - | - | - | - | |
Entergy-Koch Trading earnings | (0.21) | - | (0.21) | (0.14) | - | (0.14) |
Gulf South Pipeline earnings | 0.02 | - | 0.02 | 0.07 | - | 0.07 |
Reduction in asset sale reserves | 0.02 | - | 0.02 | 0.02 | - | 0.02 |
Subtotal | (0.17) | - | (0.17) | (0.05) | 0.70 | (0.75) |
Total Special Items | (0.17) | - | (0.17) | (0.05) | 0.32 | (0.37) |
(U.S. $ in millions) | ||||||
2004 | 2003 | Change | 2004 | 2003 | Change | |
Utility, Parent & Other | ||||||
SFAS 143 implementation | - | - | - | - | (21.3) | 21.3 |
River Bend loss provision | - | - | - | - | (65.6) | 65.6 |
Subtotal | - | - | - | - | (86.9) | 86.9 |
Competitive Businesses Special Items | ||||||
Entergy Nuclear | ||||||
SFAS 143 implementation | - | - | - | - | 160.3 | (160.3) |
Energy Commodity Services | ||||||
Entergy-Koch Trading | (48.4) | - | (48.4) | (31.8) | - | (31.8) |
Gulf South Pipeline | 3.3 | - | 3.3 | 14.9 | - | 14.9 |
Reduction in asset sale reserves | 5.6 | - | 5.6 | 5.6 | - | 5.6 |
Non-nuclear wholesale assets - - other | - | - | - | - | 0.7 | (0.7) |
Subtotal | (39.5) | - | (39.5) | (11.4) | 161.0 | (172.4) |
Total Special Items | (39.5) | - | (39.5) | (11.4) | 74.1 | (85.4) |
Appendix B-1 provides a summary of the selected regulatory cases and events that are pending.
Appendix B-1 Regulatory Summary Table | |||
Company/ Proceeding | Authorized ROE | Pending Cases/Events | Potential Operational Earnings Impact |
Retail Regulation | |||
Entergy Arkansas | 11.0% | No cases pending. Next filing likely to come in 2005 in connection with steam generator and reactor vessel head replacement at ANO Unit 1.
| $0.00 per share in 2004 and 2005; impact in 2006 will be based upon revenue deficiency reflected in 2005 filing. |
Entergy Gulf States - TX | 10.95% | Base rates unchanged since 1991 and frozen since 1999 as part of a settlement order in June of that year. At direction of PUCT, company had been preparing for retail open access ("ROA") through June 2004. In a written order issued on July 12, 2004, the Commission: (a) rejected the Company's Independent Transmission Organization proposal; (b) ordered the Company to cease efforts towards an interim solution; (c) continued to delay ROA until either a FERC-approved RTO is in place or some other independent entity is in place that meets their requirements; (d) terminated the current pilot, and; (e) encouraged Entergy to enter into a dialogue with SPP over joining the SPP RTO. As a result of the Commission's order, the Company filed a rate case on August 25, 2004 requesting a $68.0 million rate increase based on an 11.5% ROE. The request includes a $42.6 million base rate increase and recovery of costs previously incurred in preparation for transition to re tail open access. On September 30, 2004 the PUCT dismissed the filing. EGS-TX intends to file a Motion for Rehearing on the Dismissal. | $0.00 per share in 2004; 2005 impact ranges from $0.00 per share up to $0.05 per share based upon the percentage of request that is approved assuming rate case is reopened and the timing of implementation of new rates. |
Entergy Gulf States - LA | 11.1% | The 9th revenue review (2002) and prospective revenue study are currently pending before the LPSC. EGSI's filings included an $11.5 million rate reduction which was implemented in June 2002 and a $22 million prospective revenue deficiency based on a 2002 test year. The most recent LPSC staff testimony, filed in March 2004, recommended a refund of at least $29 million and a prospective rate reduction of approximately $50 million. In a separate March 2004 filing, EGSI proposed a $32 million pro forma adjustment to include revenue requirements associated with the Perryville power purchase agreement. Separately, EGSI continues to pursue the development of a performance-based rate structure in conjunction with LPSC staff. Such a rate structure was included in a proposed global settlement filed by the company with the LPSC on June 18, 2004. | $0.00 per share in 2004; 2005 impact ranges from $(0.16) per share (based on staff's recommendation) to $0.04 per share (based on company's filed deficiency). |
Entergy Louisiana | 9.7-% - 11.3% | In January 2004, ELI filed with the LPSC an application for a $167 million base rate increase based on an ROE of 11.4%. The requested increase is expected to be largely mitigated by fuel savings resulting from the generation supply plan, including the acquisition of the Perryville plant. LPSC Staff recommended an $11.4 million rate increase with a 9.75% ROE. Given the recent order by FERC disclaiming jurisdiction over the Perryville acquisition, it is expected that an additional $8.1 million will be added to the rate increase making the Staff's recommended increase a total of $19.5 million. Separately, ELI continues to pursue the development of a performance-based rate structure in conjunction with LPSC staff. | $0.00 per share in 2004; 2005 impact ranges from $0.00 per share up to $0.15 per share based on the percentage of rate request approved by the LPSC and timing of the implementation of new rates. |
Entergy Mississippi | 9.46% - 12.08% | In December 2002, the MPSC approved a $48.2 million rate increase with an allowed ROE of 11.75%. In addition, the MPSC approved a formula rate plan which allows the earned Rate of Return on Rate Base ("RORB") to increase or decrease by as much as 50 basis points plus an additional 5 basis point deadband without requiring a change in base rates. This equates to an ROE bandwidth of plus or minus 131 basis points. In addition, a performance incentive based on outage frequency, price, and customer satisfaction can increase or decrease the benchmarked ROE by 100 basis points. If EMI earns above or below the bandwidth range, rates are adjusted on a prospective basis by 50% of any overage or shortfall to the top or bottom of the bandwidth respectively. EMI made its formula rate plan filing in March 2004 based on a 2003 test year. In April 2004, the MPSC approved a joint stipulation which provides for no change in rates based on an adjusted ROE of 10.77%. | $0.00 per share in 2004; 2005 and beyond may be impacted by an increase or decrease of $0.02 per share for every 1% increase or decrease in ROE resulting from performance incentives and/or sharing above or below the allowed range. |
Appendix B-1 Regulatory Summary Table (continued) | |||
Company/ Proceeding | Authorized ROE | Pending Cases/Events | Potential Operational Earnings Impact |
Retail Regulation (Continued) | |||
Entergy New Orleans | 10.25% - 13.25% | Effective June 2003, the New Orleans City Council approved a $30 million rate increase and a 2-year prospective Formula Rate Plan ("FRP") with an ROE mid point of 11.25% and an ROE bandwidth from 10.25% to 12.25%. In addition, the Electric FRP allows for up to 13.25% ROE based on a Generation Performance-Based Rate ("GPBR") plan. The GPBR provides for sharing of fuel and purchased power savings based on a specified implied heat rate target and a gas price index. ENOI customers receive the first $20 million of savings; thereafter 10% of additional savings are allocated to the company. On April 30, 2004, ENO filed its annual electric and gas FRP updates.On August 19, 2004 the Council approved a settlement between ENO and Council Advisors that resulted in no rate adjustment for electric or gas service. | $0.04 per share in 2004, based upon the incremental impact of the June 2003 rate order; 2005 may be impacted by as much as +$0.005 per share, for each $20 million of fuel and purchased power savings above the initial $20 million allocated to customers. |
Wholesale Regulation (FERC) | |||
System Energy Resources, Inc. | 10.94% | ROE approved by July 2001 FERC order. No cases pending. | $0.00 per share. |
System Agreement | NA | Proceeding initiated by the LPSC and the City of New Orleans (who has since withdrawn) requested a reallocation of production costs among the utility operating subsidiaries. The FERC administrative law judge (ALJ) issued an initial decision in February 2004 concluding that rough production cost equalization no longer exists on the Entergy system. The ALJ recommended a bandwidth approach be applied to reallocate production costs. Entergy opposes the bandwidth approach and certain findings related to the purchase of power from the Vidalia hydroelectric facility. Exception briefs were filed by all parties in March and a FERC decision is expected in late 2004, with court appeals of any decision likely. | $0.00 per share regardless of outcome; the outcome of the case will only impact the allocation of costs among the operating companies; these costs are passed through to customers. |
Affiliate Transactions | NA | Eight purchase power agreements covering five generating sources from Entergy affiliates for supplies of power to ELI and ENOI are being reviewed by FERC. Certain of the contracts became effective in June 2003, subject to refund. The process used to award the contracts is being challenged by various parties at FERC. FERC trial staff testimony filed in March 2004 claimed Entergy conveyed undue preference to its affiliates in the bidding process. Hearings began in June and are ongoing with an initial ALJ decision expected in the first quarter of 2005. | $0.00 per share regardless of outcome given that costs associated with affiliate PPAs will be recovered in retail rates; if affiliate PPAs are not approved, the cost of alternative sources of power would be recovered in retail rates. |
Independent Coordinator of Transmission (ICT) | NA | In response to the suspension in December 2003 of the SeTrans RTO effort, Entergy began work on an alternative transmission structure. Entergy filed for FERC approval of its alternative transmission structure on April 1, 2004. Entergy's retail regulators will review and comment on the plan, after which time Entergy has requested that FERC act within 60 days. Entergy's filing includes independent transmission oversight for processes involving the granting of transmission service including calculation of transfer capacity, system studies and the weekly transmission procurement process. The filing also included a request to implement a more efficient expansion pricing policy that is consistent with the "higher of" principles articulated in FERC's Order Number 2003-A. FERC order expected in first half of 2005, with earliest effective date for operation of new structure being second half of 2005. | $0.00 per share in direct impact. If rejected, Entergy could possibly be directed to renew its pursuit of an RTO which likewise would not be expected to have an immediate earnings impact. |
Market-Based Rate Authority | NA | In November 2001, FERC issued an order establishing a new generation market power screen, Supply Margin Assessment (SMA), to evaluate a utility's request for market-based rate authority. The company requested a rehearing of this order which delayed implementation. FERC subsequently established new interim generation market power screens pursuant to orders issued in April and July 2004 which recognize that native load obligations should be reflected. In Entergy's view, however, the second screen, the market power screen, is overly conservative and overstates vertically integrated utilities' ability to exercise market power. As required, Entergy filed its generation market power analysis in August 2004. Entergy's analysis indicated that it passed the pivotal supplier screen for all relevant geographical regions, but failed the market share screen within its control area. At the same time, Entergy filed delivered price test analysis that indicates Entergy does no t have market power in any wholesale market when Entergy's native load obligations are reflected. A FERC order in response to Entergy's filing could come by year-end 2004. | $0.00 per share in direct impact. Entergy could lose its market-based authority for wholesale sales within its control area. However, Entergy does not believe that the revocation of its market-based rate authority would have a material affect on its financial results. |
Appendix B-2 provides a calendar of selected regulatory events scheduled or anticipated through 2ndquarter 2005.
Appendix B-2: Calendar of Selected Regulatory Events | ||||||||
As of October 21, 2004 | ||||||||
Jurisdiction: | FERC | EGSI-TX | EGSI-LA | ELI | ||||
|
| Affiliate Purchase Power Agreements | Independent Coordinator of Transmission | Market -Based Rate Authority |
|
|
|
|
Docket #: | EL01-88-001 | ER03-583-000 | ER04-699 | ER91-569 | 30123 | U-26527 | U-27136 | U-20925 |
Oct-04 | PUCT issued Order Dismissing Rate Case Motion for Rehearing to be Filed | 22nd - Staff / Intervenors file surrebuttal testimony | ||||||
Nov-04 | Potential ALJ decision (if settlement not approved) | 10th - ELI files rejoinder testimony | ||||||
Dec-04 | Potential FERC decision | Potential FERC order | Order Expected on Motion for Rehearing | 1st - 17th Hearings 23rd Post Hearing Briefs | ||||
Jan-05 | Potential ALJ decision | 7th - Replies to Post Hearing Briefs Potential ALJ decision | ||||||
Feb-05 | Potential LPSC decision (if settlement not approved) | |||||||
Mar-05 | Potential ALJ decision expected | Potential LPSC decision | ||||||
April 05 | Potential LPSC decision | |||||||
May 05 | ||||||||
June 05 | Potential FERC decision | |||||||
Comments: | Requests for rehearing may follow FERC decision | Schedule dependent on hearing process | No detailed procedural schedule established | No detailed procedural schedule established | No detailed procedural schedule established | FERC schedule could potentially impact LPSC timing |
Appendix C provides additional details on Entergy-Koch, LP's operational performance during the third quarter and year-to-date periods for 2004.
Appendix C: Entergy-Koch, LP Operational Performance Measures | ||||||
Third Quarter and Year-to-Date 2004 vs. 2003 (see appendix G for definitions of measures) | ||||||
Third Quarter | Year-to-Date | |||||
Entergy-Koch Trading | 2004 | 2003 | % Change | 2004 | 2003 | % Change |
Electricity volatility | 36% | 34% | 6% | 34% | 62% | -45% |
Gas volatility | 41% | 39% | 5% | 42% | 62% | -32% |
Electricity marketed (GWh) | 82,858 | 105,184 | -21% | 289,206 | 329,528 | -12% |
Gas marketed (Bcf/d) | 5.4 | 5.8 | -7% | 5.8 | 6.3 | -8% |
Gain/loss days | 0.9 | 1.7 | -47% | 1.3 | 1.5 | -13% |
Daily average earnings at risk | 7.0 | 12.1 | -42% | 8.4 | 14.9 | -44% |
Low daily earnings at risk | 5.4 | 7.8 | -31% | 5.4 | 7.6 | -29% |
High daily earnings at risk | 8.9 | 19.6 | -55% | 16.5 | 35.2 | -53% |
Gulf South Pipeline | ||||||
Throughput (Bcf/d) | 1.76 | 1.84 | -4% | 1.96 | 1.98 | -1% |
Production cost ($/mmbtu) | $0.167 | $0.171 | -2% | $0.160 | $0.137 | 17% |
Appendix D provides estimates of the impact to operational earnings resulting from changes in various revenue and expense variables. These estimates are intended to be indicative rather than precise guidance, and are based upon changes in variables which would result in increases to earnings per share. Equivalent decreases in earnings per share are estimated to result from variable changes in the opposite direction.
Appendix D: Earnings Sensitivities | ||
(Per share in U.S. $) | ||
|
| Estimated Earnings Impact(k) |
Utility | ||
Sales growth | 1% increase in Residential MWh sold |
|
Rate base | $100 million increase in rate base | 0.02 |
Return on equity | 1% increase in allowed ROE | 0.22 |
Entergy Nuclear | ||
Capacity factor | 1% increase in capacity factor | 0.03 |
Gas price | $1/MMBtu increase in gas price assuming market conversion based on 9,000 heat rate |
|
Operation and maintenance expense | $1 decrease per MWh | 0.09 |
Outage (lost revenue only) | 1000 MW plant for 10 days | 0.02 |
Power uprate | 100 MW at $800/Kw capital investment and market price of $40/MWh | 0.06 |
(k) Based on current fully diluted shares of approximately 230 million.
Appendix E-1 provides comparative financial performance measures for the current quarter. Appendix E-2 provides historical financial performance measures and operating performance metrics for the trailing eight quarters. Financial performance measures in both tables include those calculated and presented in accordance with generally accepted accounting principles (GAAP), as well as those that are considered non-GAAP measures.
As-reported measures are computed in accordance with GAAP as they include all components of earnings, including special items. Operational measures are non-GAAP measures as they are calculated using operational earnings, which excludes the impact of special items. A reconciliation of operational earnings per share to as-reported earnings per share is provided in Appendix H-1.
Appendix E-1: GAAP and non-GAAP Financial Performance Measures | ||||
Third Quarter 2004 vs. 2003 (see appendix G for definitions of certain measures) | ||||
For 12 months ending September 30 | 2004 | 2003 | Change | |
GAAP Measures | ||||
Return on average invested capital - - as-reported | 5.90% | 8.04% | (2.14)% | |
Return on average common equity - as-reported | 8.12% | 12.56% | (4.44)% | |
Net margin - as-reported | 7.29% | 11.62% | (4.33)% | |
Cash flow interest coverage | 6.39 | 4.28 | 2.11 | |
Book value per share | $39.25 | $38.39 | $0.86 | |
End of period shares outstanding (millions) | 225.2 | 228.5 | (3.2) | |
Non-GAAP Measures | ||||
Return on average invested capital - - operational | 6.70% | 7.63% | (0.93)% | |
Return on average common equity - operational | 9.71% | 11.69% | (1.98)% | |
Net margin - operational | 8.72% | 10.81% | (2.09)% | |
As of September 30 ($ in millions) | 2004 | 2003 | Change | |
GAAP Measures | ||||
Revolver capacity | 1,325 | 1,133 | 192 | |
Total debt | 8,070 | 8,554 | (484) | |
Debt to capital ratio | 46.8% | 48.4% | (1.6)% | |
Off-balance sheet liabilities: | ||||
Project debt | ||||
Debt of joint ventures - Entergy's share | 434 | 387 | 47 | |
Leases - Entergy's share | 596 | 501 | 95 | |
Total off-balance sheet liabilities | 1,030 | 888 | 142 | |
Non-GAAP Measures | ||||
Total gross liquidity | 1,913 | 1,711 | 202 | |
Net debt to net capital ratio | 44.9% | 46.6% | (1.7)% | |
Net debt ratio including off-balance sheet liabilities | 48.1% | 49.3% | (1.2)% | |
Appendix E-2: Historical Performance Measures (see appendix G for definitions of measures) | ||||||||||||
4Q02 | 1Q03 | 2Q03 | 3Q03 | 4Q03 | 1Q04 | 2Q04 | 3Q04 | 03 YTD | 04 YTD | |||
Financial | ||||||||||||
EPS - as-reported ($) | 0.33 | 1.73 | 0.89 | 1.57 | -0.17 | 0.88 | 1.14 | 1.22 | 4.19 | 3.24 | ||
Less - special items ($) | -0.01 | 0.61 | -0.28 | 0.00 | -0.55 | -0.06 | -0.06 | -0.17 | 0.32 | -0.05 | ||
EPS - operational ($) | 0.34 | 1.12 | 1.17 | 1.57 | 0.38 | 0.82 | 1.08 | 1.39 | 3.87 | 3.29 | ||
Trailing Twelve Months | ||||||||||||
ROIC - as-reported (%) | 5.79 | 8.65 | 8.01 | 8.04 | 7.38 | 6.19 | 6.38 | 5.90 | ||||
ROIC - operational (%) | 7.37 | 7.86 | 7.48 | 7.63 | 7.70 | 7.22 | 6.95 | 6.70 | ||||
ROE - as-reported (%) | 7.84 | 13.69 | 12.85 | 12.56 | 11.21 | 8.63 | 9.27 | 8.12 | ||||
ROE - operational (%) | 11.33 | 12.00 | 11.69 | 11.69 | 11.87 | 10.71 | 10.43 | 9.71 | ||||
Cash Flow Interest Coverage | 4.92 | 4.41 | 4.54 | 4.28 | 5.05 | 5.77 | 5.96 | 6.39 | ||||
Debt to capital (%) | 51.8 | 49.5 | 50.9 | 48.4 | 47.5 | 47.3 | 47.4 | 46.8 | ||||
Net debt/net capital (%) | 47.7 | 48.3 | 47.8 | 46.6 | 45.3 | 44.5 | 45.5 | 44.9 | ||||
Utility | ||||||||||||
Generation in GWh | 19,687 | 18,531 | 19,915 | 21,438 | 17,860 | 18,022 | 19,526 | 22,815 | 59,884 | 60,363 | ||
GWh billed | ||||||||||||
Residential | 7,279 | 7,843 | 7,170 | 10,763 | 7,041 | 7,726 | 6,911 | 10,738 | 25,776 | 25,375 | ||
Commercial & Gov't | 6,811 | 6,455 | 6,828 | 8,276 | 6,955 | 6,487 | 6,829 | 8,468 | 21,558 | 21,784 | ||
Industrial | 10,248 | 9,324 | 9,556 | 9,975 | 9,782 | 9,490 | 9,922 | 10,456 | 28,855 | 29,868 | ||
Wholesale | 2,298 | 2,513 | 2,590 | 2,093 | 1,995 | 2,418 | 2,367 | 2,040 | 7,196 | 6,825 | ||
O&M expense/MWh (l) | $17.62 | $13.29 | $14.70 | $12.17 | $21.89 | $13.31 | $15.62 | $12.97 | $13.32 | $13.90 | ||
Reliability | ||||||||||||
SAIFI | 2.0 | 1.9 | 1.6 | 1.8 | 1.8 | 1.7 | 1.9 | 1.8 | 1.8 | 1.8 | ||
SAIDI | 164 | 161 | 138 | 155 | 144 | 143 | 162 | 159 | 155 | 159 | ||
Nuclear | ||||||||||||
Net MW in operation | 3,955 | 3,955 | 3,955 | 4,001 | 4,001 | 4,001 | 4,001 | 4,001 | ||||
Avg. realized price per MWh | $40.87 | $38.28 | $39.81 | $40.67 | $38.54 | $39.70 | $41.33 | $43.38 | ||||
Production cost/MWh | $22.18 | $23.54 | $20.85 | $20.03 | $17.15 | $18.57 | $18.33 | $21.68 | $21.49 | $19.52 | ||
Generation in GWh | 6,843 | 8,093 | 7,337 | 8,246 | 8,702 | 8,687 | 8,196 | 8,075 | 23,676 | 24,957 | ||
Capacity factor | 78.0% | 93.7% | 84.1% | 93.6% | 98% | 98.9% | 93.6% | 91.6% | 90.5% | 94.7% | ||
Energy Commodity Services | ||||||||||||
Entergy-Koch Trading | ||||||||||||
Electricity volatility (%) | 41 | 86 | 52 | 34 | 50 | 37 | 29 | 36 | 62 | 34 | ||
Gas volatility (%) | 50 | 91 | 45 | 39 | 60 | 50 | 33 | 41 | 62 | 42 | ||
Gain/loss days | 1.3 | 1.3 | 1.4 | 1.7 | 1.5 | 1.3 | 2.0 | 0.9 | 1.5 | 1.3 | ||
Gulf South Pipeline | ||||||||||||
Throughput (Bcf/d) | 2.22 | 2.20 | 1.90 | 1.84 | 1.99 | 2.22 | 1.90 | 1.76 | 1.98 | 1.96 | ||
Production cost ($) | 0.113 | 0.113 | 0.138 | 0.171 | 0.172 | 0.144 | 0.164 | 0.167 | 0.137 | 0.160 | ||
- O&M expense per megawatt hour has been redefined for current and comparable periods to reflect billed megawatt hour sales as the denominator instead of megawatt hours generated as previously used in the calculation.
Appendix F-1 provides a summary of planned capital expenditures. Entergy's capital plan from 2004 through 2006 includes $3.8 billion for investment; $2.6 billion of this amount is associated with capital to maintain Entergy's existing assets. Approximately $1.2 billion is associated with previously identified investments such as the steam generator replacement at Arkansas Nuclear One Unit 1, nuclear plant power uprates at Entergy Nuclear and Utility, the purchase of the Perryville plant, and a previously deferred equity investment for Entergy's interest in Entergy-Koch. Entergy will update its capital plan when fourth quarter 2004 earnings are reported to reflect new estimates for the period 2005 through 2007.
Appendix F-1: Planned Capital Expenditures | ||||
2004-2006 | ||||
($ in millions) | 2004 | 2005 | 2006 | Total |
Maintenance capital | ||||
Utility, Parent & Other | 774 | 777 | 773 | 2,324 |
Entergy Nuclear | 73 | 68 | 76 | 217 |
Energy Commodity Services | 7 | 2 | 2 | 11 |
Subtotal | 854 | 847 | 851 | 2,552 |
Other capital commitments | ||||
Utility, Parent & Other | 418 | 478 | 112 | 1,008 |
Entergy Nuclear | 123 | - | - | 123 |
Energy Commodity Services | 73 | - | - | 73 |
Subtotal | 614 | 478 | 112 | 1,204 |
Total Planned Capital Expenditures | 1,468 | 1,325 | 963 | 3,756 |
Appendix F-2 provides details on scheduled long-term debt maturities including currently maturing portions.
Appendix F-2: Debt Maturity Schedule | ||||||||||||
Maturities as of 9/30/2004 | ||||||||||||
($ in millions) | 2004 | 2005 | 2006 | 2007-2008 | 2009+ | Total | ||||||
Utility, Parent & Other | - | 415 | 28 | 1,547 | 5,150 | 7,140 | ||||||
Entergy Nuclear | 64 | 72 | 76 | 100 | 197 | 509 | ||||||
Energy Commodity Services | - | - | - | - | - | - | ||||||
Total | 64 | 487 | 104 | 1,647 | 5,347 | 7,649 | ||||||
Appendix G provides definitions of certain operational performance measures, as well as GAAP and non-GAAP financial measures, all of which are referenced in this release.
Appendix G: Definitions of Operational Performance Measures and GAAP and non-GAAP Financial Measures | |
Utility | |
Generation in GWh | Total number of GWh produced by all Utility generation facilities |
GWh billed | Total number of GWh billed to all retail and wholesale customers |
Operation & maintenance expense | Operation, maintenance and refueling expenses per MWh of billed sales, 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 |
Number of customers | Year-to-date average number of customers |
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 sold forward under contracts, forward physical contracts or forward financial contracts (consistent with assumptions used in earnings guidance) that may or may not require regulatory approval |
Unit-contingent | Transaction under which power is supplied from a specific generation asset; if the asset is unavailable, seller is not be liable to buyer for any damages |
Unit-contingent with availability guarantees | Transaction under which power is supplied from a specific generation asset; if the asset is unavailable, seller is not liable to buyer for any damages, unless the actual availability over a specified period of time is below an availability threshold specified in the contract |
Firm liquidated damages (LD) | Transaction that requires receipt or delivery of energy at a specified delivery point (usually at a market hub not associated with a specific asset); if a party fails to deliver or receive energy, defaulting party must compensate the other party as specified in the contract |
Planned net MW in operation | Amount of capacity to be available to generate power considering uprates planned to be completed within the calendar year |
Bundled energy & capacity contract | A contract for the sale of installed capacity and related energy, priced per megawatt-hour sold |
Capacity contract | For Entergy Nuclear, a contract for the sale of the installed capacity product in regional markets managed by ISO New England and the New York Independent System Operator For Energy Commodity Services, a contract for the sale of capacity and related energy, in which capacity and energy are priced separately |
Average contract price per MWh or per kW per month | Price at which generation output and/or capacity is expected to be sold to third parties, given existing contract prices based on expected dispatch or capacity |
Average contract revenue per MWh | Price at which the combination of generation output and capacity are expected to be sold to third parties, given existing contract 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 |
Entergy-Koch Trading | |
Electricity volatility | Average volatility of into-Cinergy power prices for the period |
Gas volatility | Average volatility of Henry Hub spot prices for the period |
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 |
Gain/loss days | Ratio of days where aggregate trading gains exceeded trading losses across all commodities |
Daily 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 |
Financial measures defined in the below table include measures prepared in accordance with generally accepted accounting principles, (GAAP), as well as non-GAAP measures. Non-GAAP measures are included in this release in order to provide metrics that remove the effect of less routine financial impacts from commonly used financial metrics.
Appendix G: Definitions of Operational Performance Measures and GAAP and non-GAAP Financial Measures (continued) | |
Financial Measures - GAAP | |
Return on average invested capital - - as-reported | 12-months rolling earnings 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 earnings divided by average common equity |
Net margin - as-reported | 12-months rolling earnings divided by 12 months rolling revenue |
Cash flow interest coverage | 12-months cash flow from operating activities plus 12-months rolling interest paid, divided by interest expense |
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 debt | Sum of short-term and long-term debt, capital leases, and preferred stock with sinking fund (effective fourth quarter 2003) 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 by Entergy-Koch, LP and non-nuclear assets business joint ventures |
Leases (Entergy share) | Operating leases held by subsidiaries capitalized at implicit interest rate |
Debt to capital | Gross debt divided by total capitalization |
Financial Measures - non-GAAP | |
Operational earnings | As-reported earnings applicable to common stock adjusted to exclude the impact of special items |
Operating cash flow | Net cash flow provided by operating activities adjusted to exclude net nuclear fuel purchases and decommissioning trust fund expenditures |
Free cash flow | Operating cash flow adjusted to exclude maintenance capital expenditures and preferred and common dividends |
Return on average invested capital - - operational | 12-months rolling operational earnings adjusted to include preferred dividends and tax-effected interest expense divided by average invested capital |
Return on average common equity - operational | 12-months rolling operational earnings divided by average common equity |
Net margin - operational | 12-months rolling operational earnings divided by 12 months rolling revenue |
Total gross liquidity | Sum of cash and revolver capacity |
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 sum of total capitalization and off-balance sheet debt less cash and cash equivalents |
Appendices H-1 and H-2 provide reconciliations of various non-GAAP financial measures disclosed in this release to their most comparable GAAP measure.
Appendix H-1: Reconciliation of GAAP and non-GAAP Financial Measures - - Return on Equity, Return on Invested Capital and Net Margin Metrics | ||||||||
($ in millions) | 4Q02 | 1Q03 | 2Q03 | 3Q03 | 4Q03 | 1Q04 | 2Q04 | 3Q04 |
As-reported earnings-rolling 12 months (A) | 599 | 1,073 | 1,037 | 1,042 | 927 | 739 | 799 | 715 |
Preferred dividends | 24 | 24 | 24 | 24 | 24 | 23 | 23 | 23 |
Tax effected interest expense | 353 | 347 | 339 | 328 | 311 | 307 | 303 | 292 |
As-reported earnings, rolling 12 months including preferred dividends and tax effected interest expense (B) | 976 | 1,444 | 1,400 | 1,394 | 1,262 | 1,069 | 1,125 | 1,031 |
Special items in prior quarters | (265) | (7) | 159 | 71 | 74 | (193) | (113) | (100) |
Special items 4Q02 thru 3Q04 | ||||||||
Energy Commodity Services | 31 | 15 | 13 | (39) | ||||
Energy Commodity Services asset | (33) | |||||||
Utility, Parent & Other | (21) | |||||||
Entergy Nuclear | 160 | |||||||
Utility, Parent & Other | (66) | |||||||
Utility, Parent & Other | (71) | |||||||
Entergy Nuclear | (51) | |||||||
Entergy Nuclear | (6) | |||||||
Total special items (C) | (267) | 132 | 93 | 71 | (54) | (178) | (100) | (139) |
Operational earnings, rolling 12 months including preferred dividends and tax effected interest expense (B-C) | 1,243 | 1,312 | 1,307 | 1,323 | 1,316 | 1,247 | 1,225 | 1,171 |
Operational earnings, rolling 12 months (A-C) | 866 | 941 | 944 | 971 | 981 | 917 | 899 | 854 |
Average invested capital (D) | 16,862 | 16,700 | 17,465 | 17,324 | 17,114 | 17,257 | 17,638 | 17,462 |
Average common equity (E) | 7,647 | 7,838 | 8,075 | 8,295 | 8,271 | 8,565 | 8,619 | 8,806 |
Operating revenues (F) | 8,305 | 8,482 | 8,739 | 8,971 | 9,195 | 9,409 | 9,540 | 9,803 |
ROIC - as-reported (B/D) | 5.79 | 8.65 | 8.01 | 8.04 | 7.38 | 6.19 | 6.38 | 5.90 |
ROIC - operational ((B-C)/D) | 7.37 | 7.86 | 7.48 | 7.63 | 7.70 | 7.22 | 6.95 | 6.70 |
ROE - as-reported (A/E) | 7.84 | 13.69 | 12.85 | 12.56 | 11.21 | 8.63 | 9.27 | 8.12 |
ROE - operational ((A-C)/E) | 11.33 | 12.00 | 11.69 | 11.69 | 11.87 | 10.71 | 10.43 | 9.71 |
Net margin - as-reported (A/F) | 7.22 | 12.65 | 11.87 | 11.62 | 10.08 | 7.86 | 8.37 | 7.29 |
Net margin - operational ((A-C)/F) | 10.43 | 11.09 | 10.80 | 10.81 | 10.67 | 9.75 | 9.42 | 8.72 |
Appendix H-2: Reconciliation of GAAP and non-GAAP Financial Measures - - Credit and Liquidity Metrics | ||||||||
($ in millions) | 4Q02 | 1Q03 | 2Q03 | 3Q03 | 4Q03 | 1Q04 | 2Q04 | 3Q04 |
Gross debt (A) | 8,810 | 8,410 | 9,173 | 8,554 | 8,182 | 8,282 | 8,173 | 8,070 |
Less cash and cash equivalents (B) | 1,335 | 377 | 1,078 | 578 | 692 | 875 | 586 | 588 |
Net debt (C) | 7,475 | 8,033 | 8,095 | 7,976 | 7,490 | 7,407 | 7,587 | 7,482 |
Total capitalization (D) | 17,007 | 17,008 | 18,024 | 17,680 | 17,220 | 17,505 | 17,252 | 17,245 |
Less cash and cash equivalents (B) | 1,335 | 377 | 1,078 | 578 | 692 | 875 | 586 | 588 |
Net capital (E) | 15,672 | 16,631 | 16,946 | 17,102 | 16,528 | 16,630 | 16,666 | 16,657 |
Debt to capital ratio % (A/D) | 51.8 | 49.4 | 50.9 | 48.4 | 47.5 | 47.3 | 47.4 | 46.8 |
Net debt to net capital ratio % (C/E) | 47.7 | 48.3 | 47.8 | 46.6 | 45.3 | 44.5 | 45.5 | 44.9 |
Off-balance sheet liabilities (F) | 804 | 786 | 886 | 888 | 915 | 1,029 | 1,037 | 1,030 |
Net debt to net capital ratio including off-balance sheet liabilities % ((C+F)/(E+F)) | 50.2 | 50.6 | 50.4 | 49.3 | 48.2 | 47.8 | 48.7 | 48.12 |
Revolver capacity (G) | 1,018 | 988 | 1,158 | 1,133 | 1,553 | 1,553 | 1,280 | 1,325 |
Gross liquidity (B+G) | 2,353 | 1,365 | 2,236 | 1,711 | 2,245 | 2,428 | 1,866 | 1,913 |
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
************************************************************************************************************************************
In this release and 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. Except to the extent required by the federal securities laws, Entergy undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. 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 at local and federal regulatory agencies, Entergy's ability to reduce its operation and maintenance costs, particularly at its non-utility nuclear generating facilities, 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, and the prices and availability of power Entergy must purchase for its utility customers, uncertainty regarding establishment of permanent sites for spent nuclear fuel storage and disposal, Entergy's ability to develop and execute on a point of view regarding prices of electricity, natural gas, and other energy-related commodities, the completion of the sale of Entergy-Koch's U.S. and foreign trading businesses, the ability to sell Entergy-Koch's Gulf South Pipeline at attractive prices, the amount of cash that Entergy-Koch is able to distribute to Entergy, resolution of pending investigations of Entergy-Koch's past trading practices, changes in the energy trading ma rket, 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, Entergy's ability to purchase and sell assets at attractive prices and on other attractive terms, changes in utility regulation and in regulation of the nuclear industry, the success of Entergy's strategies to reduce current tax payments, and the effects of litigation and weather.
Entergy Corporation | |||||||
Consolidating Balance Sheet | |||||||
September 30, 2004 | |||||||
(Dollars in thousands) | |||||||
(Unaudited) | |||||||
U.S. Utilities/ Parent & Other | Competitive Businesses | Eliminations | Consolidated | ||||
ASSETS | |||||||
CURRENT ASSETS | |||||||
Cash and cash equivalents: | |||||||
Cash | $ 105,521 | $ 18,825 | $ - | $ 124,346 | |||
Temporary cash investments - at cost, | |||||||
which approximates market | 200,601 | 262,894 | - | 463,495 | |||
Special deposits | - | - | - | - | |||
Total cash and cash equivalents | 306,122 | 281,719 | - | 587,841 | |||
Other temporary investments | - | - | - | - | |||
Notes receivable | 334,132 | 381,063 | (713,085) | 2,110 | |||
Accounts receivable: | |||||||
Customer | 614,717 | - | - | 614,717 | |||
Allowance for doubtful accounts | (22,919) | (2,064) | - | (24,983) | |||
Associated companies | 30,703 | 19,662 | (50,366) | - | |||
Other | 151,685 | 133,073 | - | 284,758 | |||
Accrued unbilled revenues | 471,785 | - | - | 471,785 | |||
Total receivables | 1,245,971 | 150,671 | (50,366) | 1,346,277 | |||
Deferred fuel costs | 128,079 | - | - | 128,079 | |||
Accumulated deferred income taxes | 57,609 | (4,187) | - | 53,422 | |||
Fuel inventory - at average cost | 129,234 | 1,957 | - | 131,191 | |||
Materials and supplies - at average cost | 350,411 | 216,589 | - | 567,001 | |||
Deferred nuclear refueling outage costs | 44,793 | 57,449 | - | 102,242 | |||
Prepayments and other | 136,826 | 34,271 | - | 171,097 | |||
TOTAL | 2,733,177 | 1,119,532 | (763,451) | 3,089,260 | |||
OTHER PROPERTY AND INVESTMENTS | |||||||
Investment in affiliates - at equity | 8,309,808 | 1,210,311 | (8,379,058) | 1,141,060 | |||
Decommissioning trust funds | 1,010,898 | 1,368,656 | - | 2,379,555 | |||
Non-utility property - at cost (less accumulated depreciation) | 221,138 | 1,804 | - | 222,942 | |||
Other | 36,156 | 60,997 | - | 97,153 | |||
TOTAL | 9,578,000 | 2,641,768 | (8,379,058) | 3,840,710 | |||
PROPERTY, PLANT, AND EQUIPMENT | |||||||
Electric | 27,021,597 | 1,743,412 | (3,954) | 28,761,055 | |||
Property under capital lease | 740,397 | - | - | 740,397 | |||
Natural gas | 255,281 | - | - | 255,280 | |||
Construction work in progress | 936,282 | 340,635 | - | 1,276,917 | |||
Nuclear fuel under capital lease | 262,840 | - | - | 262,840 | |||
Nuclear fuel | 36,151 | 245,555 | - | 281,706 | |||
TOTAL PROPERTY, PLANT AND EQUIPMENT | 29,252,548 | 2,329,602 | (3,954) | 31,578,195 | |||
Less - accumulated depreciation and amortization | 12,863,798 | 235,642 | - | 13,099,440 | |||
PROPERTY, PLANT AND EQUIPMENT - NET | 16,388,750 | 2,093,960 | (3,954) | 18,478,755 | |||
DEFERRED DEBITS AND OTHER ASSETS | |||||||
Regulatory assets: | |||||||
SFAS 109 regulatory asset - net | 804,336 | - | - | 804,336 | |||
Other regulatory assets | 1,359,820 | - | - | 1,359,820 | |||
Long-term receivables | 41,536 | - | - | 41,536 | |||
Goodwill | 374,099 | 3,073 | - | 377,172 | |||
Other | 785,897 | 819,631 | (659,188) | 946,340 | |||
TOTAL | 3,365,688 | 822,704 | (659,188) | 3,529,204 | |||
- | |||||||
TOTAL ASSETS | $ 32,065,615 | $ 6,677,964 | $ (9,805,651) | $ 28,937,929 | |||
*Totals may not foot due to rounding. | |||||||
Entergy Corporation | |||||||
Consolidating Balance Sheet | |||||||
September 30, 2004 | |||||||
(Dollars in thousands) | |||||||
(Unaudited) | |||||||
U.S. Utilities/ Parent & Other | Competitive Businesses | Eliminations | Consolidated | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||
CURRENT LIABILITIES | |||||||
Currently maturing long-term debt | $ 355,266 | $ 74,215 | $ - | $ 429,481 | |||
Notes payable: | |||||||
Associated companies | 209,820 | 503,233 | (713,052) | - | |||
Other | 110,043 | 229 | - | 110,273 | |||
Account payable: | |||||||
Associated companies | 44,869 | 14,094 | (58,964) | - | |||
Other | 631,371 | 155,066 | - | 786,437 | |||
Customer deposits | 214,828 | 161 | - | 214,989 | |||
Taxes accrued | 173,122 | 58,205 | - | 231,326 | |||
Accumulated deferred income taxes | - | - | - | - | |||
Nuclear refueling outage costs | 18,126 | - | - | 18,126 | |||
Interest accrued | 136,202 | 17,031 | - | 153,233 | |||
Obligations under capital leases | 154,620 | - | - | 154,620 | |||
Other | 74,835 | 225,140 | - | 299,976 | |||
TOTAL | 2,123,102 | 1,047,374 | (772,016) | 2,398,461 | |||
NON-CURRENT LIABILITIES | |||||||
Accumulated deferred income taxes and taxes accrued | 5,245,228 | (2,931) | - | 5,242,297 | |||
Accumulated deferred investment tax credits | 404,481 | - | - | 404,481 | |||
Obligations under capital leases | 138,295 | 1 | - | 138,296 | |||
Other regulatory liabilities | 334,716 | - | - | 334,716 | |||
Decommissioning and retirement cost liabilities | 1,335,601 | 728,941 | - | 2,064,542 | |||
Transition to competition | 79,101 | - | - | 79,101 | |||
Regulatory reserves | 75,087 | - | - | 75,087 | |||
Accumulated provisions | 339,942 | 152,492 | - | 492,434 | |||
Long-term debt | 6,788,491 | 525,106 | (93,986) | 7,219,611 | |||
Preferred stock with sinking fund | 17,402 | - | - | 17,402 | |||
Other | 1,460,192 | 431,039 | (594,657) | 1,296,575 | |||
TOTAL | 16,218,536 | 1,834,648 | (688,643) | 17,364,542 | |||
Preferred stock without sinking fund | 334,337 | - | - | 334,337 | |||
SHAREHOLDERS' EQUITY | |||||||
Common stock, $.01 par value, authorized 500,000,000 shares; | |||||||
issued 248,174,087 shares in 2004 | 2,205,193 | 1,093,607 | (3,296,318) | 2,482 | |||
Paid-in capital | 6,058,765 | 2,151,847 | (3,391,763) | 4,818,848 | |||
Retained earnings | 6,103,949 | 665,594 | (1,820,853) | 4,948,690 | |||
Accumulated other comprehensive income (loss) | 2,827 | (71,790) | 626 | (68,337) | |||
Less - treasury stock, at cost (22,928,539 shares in 2004) | 981,094 | 43,316 | (163,316) | 861,094 | |||
TOTAL | 13,389,640 | 3,795,942 | (8,344,992) | 8,840,589 | |||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 32,065,615 | $ 6,677,964 | $ (9,805,651) | $ 28,937,929 | |||
*Totals may not foot due to rounding. |
Entergy Corporation | |||||||
Consolidating Balance Sheet | |||||||
December 31, 2003 | |||||||
(Dollars in thousands) | |||||||
(Unaudited) | |||||||
U.S. Utilities/ Parent & Other | Competitive Businesses | Eliminations | Consolidated | ||||
ASSETS | |||||||
CURRENT ASSETS | |||||||
Cash and cash equivalents: | |||||||
Cash | $ 97,920 | $ 17,191 | $ - | $ 115,112 | |||
Temporary cash investments - at cost, | |||||||
which approximates market | 404,896 | 171,916 | - | 576,813 | |||
Special deposits | 312 | (4) | - | 308 | |||
Total cash and cash equivalents | 503,128 | 189,103 | - | 692,233 | |||
Other temporary investments | 50,000 | - | - | 50,000 | |||
Notes receivable | 514,580 | 379,275 | (892,125) | 1,730 | |||
Accounts receivable: | |||||||
Customer | 398,091 | - | - | 398,091 | |||
Allowance for doubtful accounts | (25,476) | (500) | - | (25,976) | |||
Associated companies | 93,429 | (33,248) | (60,181) | - | |||
Other | 108,728 | 138,097 | - | 246,824 | |||
Accrued unbilled revenues | 384,861 | - | - | 384,860 | |||
Total receivables | 959,633 | 104,349 | (60,181) | 1,003,799 | |||
Deferred fuel costs | 245,973 | - | - | 245,973 | |||
Accumulated deferred income taxes | 16,416 | - | (16,416) | - | |||
Fuel inventory - at average cost | 108,542 | 1,922 | 18 | 110,482 | |||
Materials and supplies - at average cost | 343,665 | 205,256 | - | 548,921 | |||
Deferred nuclear refueling outage costs | 41,998 | 96,838 | - | 138,836 | |||
Prepayments and other | 95,043 | 32,226 | - | 127,270 | |||
TOTAL | 2,878,978 | 1,008,969 | (968,704) | 2,919,244 | |||
OTHER PROPERTY AND INVESTMENTS | |||||||
Investment in affiliates - at equity | 8,470,984 | 1,078,377 | (8,496,032) | 1,053,328 | |||
Decommissioning trust funds | 953,314 | 1,325,219 | - | 2,278,533 | |||
Non-utility property - at cost (less accumulated depreciation) | 262,005 | 380 | - | 262,384 | |||
Other | 96,326 | 56,355 | - | 152,681 | |||
TOTAL | 9,782,629 | 2,460,331 | (8,496,032) | 3,746,926 | |||
PROPERTY, PLANT, AND EQUIPMENT | |||||||
Electric | 26,438,834 | 1,597,065 | - | 28,035,899 | |||
Property under capital lease | 751,815 | - | - | 751,815 | |||
Natural gas | 236,623 | - | - | 236,622 | |||
Construction work in progress | 982,526 | 402,405 | (3,949) | 1,380,982 | |||
Nuclear fuel under capital lease | 278,683 | - | - | 278,683 | |||
Nuclear fuel | 18,911 | 215,511 | - | 234,421 | |||
TOTAL PROPERTY, PLANT AND EQUIPMENT | 28,707,392 | 2,214,981 | (3,949) | 30,918,422 | |||
Less - accumulated depreciation and amortization | 12,425,072 | 194,553 | - | 12,619,625 | |||
PROPERTY, PLANT AND EQUIPMENT - NET | 16,282,320 | 2,020,428 | (3,949) | 18,298,797 | |||
DEFERRED DEBITS AND OTHER ASSETS | |||||||
Regulatory assets: | |||||||
SFAS 109 regulatory asset - net | 830,539 | - | - | 830,539 | |||
Other regulatory assets | 1,425,145 | - | - | 1,425,145 | |||
Long-term receivables | 20,886 | - | - | 20,886 | |||
Goodwill | 374,099 | 3,073 | - | 377,172 | |||
Other | 829,561 | 752,814 | (646,874) | 935,501 | |||
TOTAL | 3,480,230 | 755,887 | (646,874) | 3,589,243 | |||
TOTAL ASSETS | $ 32,424,157 | $ 6,245,615 | $ (10,115,559) | $ 28,554,210 | |||
*Totals may not foot due to rounding. | |||||||
Entergy Corporation | |||||||
Consolidating Balance Sheet | |||||||
December 31, 2003 | |||||||
(Dollars in thousands) | |||||||
(Unaudited) | |||||||
U.S. Utilities/ Parent & Other | Competitive Businesses | Eliminations | Consolidated | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||
CURRENT LIABILITIES | |||||||
Currently maturing long-term debt | $ 450,157 | $ 74,215 | $ - | $ 524,372 | |||
Notes payable: | |||||||
Associated companies | 402,765 | 489,101 | (891,865) | - | |||
Other | 47 | 304 | - | 351 | |||
Account payable: | |||||||
Associated companies | 84,338 | (33,775) | (50,562) | - | |||
Other | 670,840 | 125,732 | - | 796,572 | |||
Customer deposits | 199,456 | 164 | - | 199,620 | |||
Taxes accrued | 232,512 | (7,586) | - | 224,926 | |||
Accumulated deferred income taxes | - | 39,379 | (16,417) | 22,963 | |||
Nuclear refueling outage costs | 8,238 | - | - | 8,238 | |||
Interest accrued | 137,141 | 2,462 | - | 139,603 | |||
Obligations under capital leases | 159,978 | - | - | 159,978 | |||
Other | 64,154 | 151,607 | (10,160) | 205,600 | |||
TOTAL | 2,409,626 | 841,603 | (969,004) | 2,282,223 | |||
NON-CURRENT LIABILITIES | |||||||
Accumulated deferred income taxes and taxes accrued | 4,779,747 | (234) | - | 4,779,513 | |||
Accumulated deferred investment tax credits | 420,248 | - | - | 420,248 | |||
Obligations under capital leases | 153,897 | 1 | - | 153,898 | |||
Other regulatory liabilities | 291,239 | - | - | 291,239 | |||
Decommissioning and retirement cost liabilities | 1,530,909 | 711,403 | - | 2,242,312 | |||
Transition to competition | 79,098 | - | - | 79,098 | |||
Regulatory reserves | 69,528 | - | - | 69,528 | |||
Accumulated provisions | 354,575 | 152,386 | - | 506,960 | |||
Long-term debt | 6,931,989 | 519,572 | (128,622) | 7,322,940 | |||
Preferred stock with sinking fund | 20,852 | - | - | 20,852 | |||
Other | 1,441,783 | 460,059 | (554,439) | 1,347,404 | |||
TOTAL | 16,073,865 | 1,843,187 | (683,061) | 17,233,992 | |||
Preferred stock without sinking fund | 334,337 | 532 | (532) | 334,337 | |||
SHAREHOLDERS' EQUITY | |||||||
Common stock, $.01 par value, authorized 500,000,000 shares; | |||||||
issued 248,174,087 shares in 2003 | 2,205,193 | 1,102,743 | (3,305,454) | 2,482 | |||
Paid-in capital | 6,052,303 | 2,073,126 | (3,357,813) | 4,767,615 | |||
Retained earnings | 6,019,695 | 446,450 | (1,963,637) | 4,502,508 | |||
Accumulated other comprehensive income (loss) | 10,290 | (18,710) | 626 | (7,795) | |||
Less - treasury stock, at cost (19,276,445 shares in 2003) | 681,152 | 43,316 | (163,316) | 561,152 | |||
TOTAL | 13,606,329 | 3,560,293 | (8,462,962) | 8,703,658 | |||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 32,424,157 | $ 6,245,615 | $ (10,115,559) | $ 28,554,210 | |||
*Totals may not foot due to rounding. | |||||||
Entergy Corporation | |||||||
Consolidating Balance Sheet | |||||||
September 30, 2004 vs December 31, 2003 | |||||||
(Dollars in thousands) | |||||||
(Unaudited) | |||||||
U.S. Utilities/ Parent & Other | Competitive Businesses | Eliminations | Consolidated | ||||
ASSETS | |||||||
CURRENT ASSETS | |||||||
Cash and cash equivalents: | |||||||
Cash | $ 7,601 | $ 1,634 | $ - | $ 9,235 | |||
Temporary cash investments - at cost, | |||||||
which approximates market | (204,295) | 90,978 | - | (113,317) | |||
Special deposits | (312) | 4 | - | (308) | |||
Total cash and cash equivalents | (197,006) | 92,616 | - | (104,390) | |||
Other temporary investments | (50,000) | - | - | (50,000) | |||
Notes receivable | (180,448) | 1,788 | 179,040 | 380 | |||
Accounts receivable: | |||||||
Customer | 216,626 | - | - | 216,626 | |||
Allowance for doubtful accounts | 2,557 | (1,564) | - | 993 | |||
Associated companies | (62,726) | 52,910 | 9,815 | (1) | |||
Other | 42,957 | (5,024) | - | 37,933 | |||
Accrued unbilled revenues | 86,924 | - | - | 86,924 | |||
Total receivables | 286,338 | 46,322 | 9,815 | 342,475 | |||
Deferred fuel costs | (117,894) | - | - | (117,894) | |||
Accumulated deferred income taxes | 41,193 | (4,187) | 16,416 | 53,422 | |||
Fuel inventory - at average cost | 20,692 | 35 | (18) | 20,709 | |||
Materials and supplies - at average cost | 6,746 | 11,333 | - | 18,079 | |||
Deferred nuclear refueling outage costs | 2,795 | (39,389) | - | (36,594) | |||
Prepayments and other | 41,783 | 2,045 | - | 43,828 | |||
TOTAL | (145,801) | 110,563 | 205,253 | 170,015 | |||
OTHER PROPERTY AND INVESTMENTS | |||||||
Investment in affiliates - at equity | (161,176) | 131,934 | 116,974 | 87,732 | |||
Decommissioning trust funds | 57,584 | 43,437 | - | 101,021 | |||
Non-utility property - at cost (less accumulated depreciation) | (40,867) | 1,424 | - | (39,443) | |||
Other | (60,170) | 4,642 | - | (55,528) | |||
TOTAL | (204,629) | 181,437 | 116,974 | 93,782 | |||
PROPERTY, PLANT, AND EQUIPMENT | |||||||
Electric | 582,763 | 146,347 | (3,954) | 725,156 | |||
Property under capital lease | (11,418) | - | - | (11,418) | |||
Natural gas | 18,658 | - | - | 18,658 | |||
Construction work in progress | (46,244) | (61,770) | 3,949 | (104,065) | |||
Nuclear fuel under capital lease | (15,843) | - | - | (15,843) | |||
Nuclear fuel | 17,240 | 30,044 | - | 47,284 | |||
TOTAL PROPERTY, PLANT AND EQUIPMENT | 545,156 | 114,621 | (5) | 659,772 | |||
Less - accumulated depreciation and amortization | 438,726 | 41,089 | - | 479,815 | |||
PROPERTY, PLANT AND EQUIPMENT - NET | 106,430 | 73,532 | (5) | 179,957 | |||
DEFERRED DEBITS AND OTHER ASSETS | |||||||
Regulatory assets: | |||||||
SFAS 109 regulatory asset - net | (26,203) | - | - | (26,203) | |||
Other regulatory assets | (65,325) | - | - | (65,325) | |||
Long-term receivables | 20,650 | - | - | 20,650 | |||
Goodwill | - | - | - | - | |||
Other | (43,664) | 66,817 | (12,314) | 10,839 | |||
TOTAL | (114,542) | 66,817 | (12,314) | (60,039) | |||
TOTAL ASSETS | $ (358,542) | $ 432,349 | $ 309,908 | $ 383,715 | |||
*Totals may not foot due to rounding. | |||||||
Entergy Corporation | |||||||
Consolidating Balance Sheet | |||||||
September 30, 2004 vs December 31, 2003 | |||||||
(Dollars in thousands) | |||||||
(Unaudited) | |||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||
CURRENT LIABILITIES | |||||||
Currently maturing long-term debt | $ (94,891) | $ - | $ - | $ (94,891) | |||
Notes payable: | |||||||
Associated companies | (192,945) | 14,132 | 178,813 | - | |||
Other | 109,996 | (75) | - | 109,921 | |||
Account payable: | - | - | - | ||||
Associated companies | (39,469) | 47,869 | (8,402) | - | |||
Other | (39,469) | 29,334 | - | (10,135) | |||
Customer deposits | 15,372 | (3) | - | 15,369 | |||
Taxes accrued | (59,390) | 65,791 | - | 6,401 | |||
Accumulated deferred income taxes | - | (39,379) | 16,417 | (22,962) | |||
Nuclear refueling outage costs | 9,888 | - | - | 9,888 | |||
Interest accrued | (939) | 14,569 | - | 13,630 | |||
Obligations under capital leases | (5,358) | - | - | (5,358) | |||
Other | 10,681 | 73,533 | 10,160 | 94,372 | |||
TOTAL | (286,524) | 205,771 | 196,988 | 116,235 | |||
NON-CURRENT LIABILITIES | |||||||
Accumulated deferred income taxes and taxes accrued | 465,481 | (2,697) | - | 462,784 | |||
Accumulated deferred investment tax credits | (15,767) | - | - | (15,767) | |||
Obligations under capital leases | (15,602) | - | - | (15,602) | |||
Other regulatory liabilities | 43,477 | - | - | 43,477 | |||
Decommissioning and retirement cost liabilities | (195,308) | 17,538 | - | (177,770) | |||
Transition to competition | 3 | - | - | 3 | |||
Regulatory reserves | 5,559 | - | - | 5,559 | |||
Accumulated provisions | (14,633) | 106 | - | (14,527) | |||
Long-term debt | (143,498) | 5,534 | 34,636 | (103,328) | |||
Preferred stock with sinking fund | (3,450) | - | - | (3,450) | |||
Other | 18,409 | (29,020) | (40,218) | (50,829) | |||
TOTAL | 144,671 | (8,539) | (5,582) | 130,550 | |||
Preferred stock without sinking fund | - | (532) | 532 | - | |||
SHAREHOLDERS' EQUITY | |||||||
Common stock, $.01 par value, authorized 500,000,000 shares; | |||||||
issued 248,174,087 shares in 2004 and 2003 | - | (9,136) | 9,136 | - | |||
Paid-in capital | 6,462 | 78,721 | (33,950) | 51,233 | |||
Retained earnings | 84,254 | 219,144 | 142,784 | 446,182 | |||
Accumulated other comprehensive income (loss) | (7,463) | (53,080) | - | (60,543) | |||
Less - treasury stock, at cost | 299,942 | - | - | 299,942 | |||
TOTAL | (216,689) | 235,649 | 117,970 | 136,930 | |||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ (358,542) | $ 432,349 | $ 309,908 | $ 383,715 | |||
*Totals may not foot due to rounding. | |||||||
Entergy Corporation | ||||||||
Consolidating Income Statement | ||||||||
Three Months Ended September 30, 2004 | ||||||||
(Dollars in thousands) | ||||||||
(Unaudited) | ||||||||
U.S. Utilities/ Parent & Other | Competitive Businesses | Eliminations | Consolidated | |||||
OPERATING REVENUES | ||||||||
Domestic electric | $ 2,389,738 | $ - | $ (462) | $ 2,389,276 | ||||
Natural gas | 33,628 | - | - | 33,628 | ||||
Competitive businesses | 140,756 | 416,535 | (16,615) | 540,677 | ||||
Total | 2,564,122 | 416,535 | (17,076) | 2,963,581 | ||||
OPERATING EXPENSES | ||||||||
Operating and Maintenance: | ||||||||
Fuel, fuel related expenses, and gas purchased for resale | 746,446 | 59,440 | - | 805,886 | ||||
Purchased power | 601,573 | 14,043 | (16,620) | 598,997 | ||||
Nuclear refueling outage expenses | 17,418 | 25,961 | - | 43,378 | ||||
Other operation and maintenance | 402,110 | 181,101 | (971) | 582,240 | ||||
Decommissioning | 23,163 | 14,584 | - | 37,747 | ||||
Taxes other than income taxes | 97,843 | 14,725 | - | 112,568 | ||||
Depreciation and amortization | 218,595 | 17,730 | - | 236,325 | ||||
Other regulatory charges (credits) - net | (25,032) | - | - | (25,032) | ||||
Total | 2,082,116 | 327,584 | (17,591) | 2,392,109 | ||||
OPERATING INCOME | 482,006 | 88,951 | 515 | 571,472 | ||||
OTHER INCOME (DEDUCTIONS) | ||||||||
Allowance for equity funds used during construction | 13,093 | - | - | 13,093 | ||||
Interest and dividend income | 18,329 | 17,055 | (14,392) | 20,993 | ||||
Equity in earnings of unconsolidated equity affiliates | - | (72,015) | - | (72,015) | ||||
Miscellaneous - net | 19,184 | 22,585 | (515) | 41,254 | ||||
Total | 50,607 | (32,374) | (14,907) | 3,325 | ||||
INTEREST AND OTHER CHARGES | ||||||||
Interest on long-term debt | 109,419 | 4,070 | - | 113,489 | ||||
Other interest - net | 8,121 | 13,150 | (14,392) | 6,879 | ||||
Allowance for borrowed funds used during construction | (8,394) | - | - | (8,394) | ||||
Total | 109,146 | 17,220 | (14,392) | 111,974 | ||||
INCOME BEFORE INCOME TAXES | 423,467 | 39,357 | - | 462,823 | ||||
Income taxes | 160,197 | 14,579 | - | 174,776 | ||||
CONSOLIDATED NET INCOME | 263,270 | 24,778 | - | 288,047 | ||||
Preferred dividend requirements and other | 5,803 | - | - | 5,803 | ||||
EARNINGS APPLICABLE TO COMMON STOCK | $ 257,467 | $ 24,778 | $ - | $ 282,244 | ||||
EARNINGS PER AVERAGE COMMON SHARE: | ||||||||
BASIC | $1.13 | $0.11 | $1.24 | |||||
DILUTED | $1.11 | $0.11 | $1.22 | |||||
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING: | ||||||||
BASIC | 226,882,474 | |||||||
DILUTED | 231,127,583 | |||||||
*Totals may not foot due to rounding. |
Entergy Corporation | ||||||||
Consolidating Income Statement | ||||||||
Three Months Ended September 30, 2003 | ||||||||
(Dollars in thousands) | ||||||||
(Unaudited) | ||||||||
U.S. Utilities/ Parent & Other | Competitive Businesses | Eliminations | Consolidated | |||||
OPERATING REVENUES | ||||||||
Domestic electric | $ 2,236,159 | $ - | $ (541) | $ 2,235,618 | ||||
Natural gas | 25,866 | - | - | 25,866 | ||||
Competitive businesses | 69,551 | 385,922 | (16,833) | 438,641 | ||||
Total | 2,331,576 | 385,922 | (17,374) | 2,700,125 | ||||
OPERATING EXPENSES | ||||||||
Operating and Maintenance: | ||||||||
Fuel, fuel related expenses, and gas purchased for resale | 535,964 | 60,083 | - | 596,046 | ||||
Purchased power | 555,546 | 3,027 | (17,265) | 541,308 | ||||
Nuclear refueling outage expenses | 14,881 | 25,273 | - | 40,154 | ||||
Other operation and maintenance | 371,848 | 171,091 | (338) | 542,601 | ||||
Decommissioning | 23,131 | 12,798 | - | 35,929 | ||||
Taxes other than income taxes | 91,239 | 14,122 | - | 105,360 | ||||
Depreciation and amortization | 202,908 | 17,759 | - | 220,667 | ||||
Other regulatory charges (credits) - net | (945) | - | - | (945) | ||||
Total | 1,794,572 | 304,153 | (17,603) | 2,081,120 | ||||
OPERATING INCOME | 537,004 | 81,769 | 230 | 619,005 | ||||
OTHER INCOME (DEDUCTIONS) | ||||||||
Allowance for equity funds used during construction | 9,936 | - | - | 9,936 | ||||
Interest and dividend income | 16,558 | 15,786 | (8,303) | 24,040 | ||||
Equity in earnings of unconsolidated equity affiliates | 1 | 60,099 | (1) | 60,099 | ||||
Miscellaneous - net | (2,153) | 10,316 | (230) | 7,932 | ||||
Total | 24,342 | 86,201 | (8,534) | 102,007 | ||||
INTEREST AND OTHER CHARGES | ||||||||
Interest on long-term debt | 119,961 | 3,207 | - | 123,169 | ||||
Other interest - net | 11,810 | 9,838 | (8,304) | 13,345 | ||||
Allowance for borrowed funds used during construction | (7,968) | - | - | (7,968) | ||||
Total | 123,803 | 13,045 | (8,304) | 128,546 | ||||
INCOME BEFORE INCOME TAXES | 437,543 | 154,925 | - | 592,466 | ||||
Income taxes | 161,827 | 58,989 | - | 220,816 | ||||
CONSOLIDATED NET INCOME | 275,716 | 95,936 | - | 371,650 | ||||
Preferred dividend requirements and other | 5,876 | - | - | 5,876 | ||||
EARNINGS APPLICABLE TO COMMON STOCK | $ 269,840 | $ 95,936 | $ - | $ 365,774 | ||||
EARNINGS PER AVERAGE COMMON SHARE: | ||||||||
BASIC | $1.18 | $0.42 | $1.60 | |||||
DILUTED | $1.16 | $0.41 | $1.57 | |||||
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING: | ||||||||
BASIC | 228,105,505 | |||||||
DILUTED | 232,515,434 | |||||||
*Totals may not foot due to rounding. |
Entergy Corporation | ||||||||
Consolidating Income Statement | ||||||||
Three Months Ended September 30, 2004 vs. 2003 | ||||||||
(Dollars in thousands) | ||||||||
(Unaudited) | ||||||||
U.S. Utilities/ Parent & Other | Competitive Businesses | Eliminations | Consolidated | |||||
OPERATING REVENUES | ||||||||
Domestic electric | $ 153,579 | $ - | $ 80 | $ 153,659 | ||||
Natural gas | 7,762 | - | - | 7,762 | ||||
Competitive businesses | 71,205 | 30,613 | 218 | 102,036 | ||||
Total | 232,546 | 30,613 | 298 | 263,457 | ||||
OPERATING EXPENSES | ||||||||
Operating and Maintenance: | ||||||||
Fuel, fuel related expenses, and gas purchased for resale | 210,482 | (643) | - | 209,839 | ||||
Purchased power | 46,027 | 11,016 | 645 | 57,688 | ||||
Nuclear refueling outage expenses | 2,537 | 688 | - | 3,225 | ||||
Other operation and maintenance | 30,262 | 10,010 | (633) | 39,639 | ||||
Decommissioning | 32 | 1,786 | - | 1,818 | ||||
Taxes other than income taxes | 6,604 | 603 | - | 7,207 | ||||
Depreciation and amortization | 15,687 | (29) | - | 15,658 | ||||
Other regulatory charges (credits) - net | (24,087) | - | - | (24,087) | ||||
Total | 287,544 | 23,431 | 12 | 310,987 | ||||
OPERATING INCOME | (54,998) | 7,182 | 286 | (47,531) | ||||
OTHER INCOME (DEDUCTIONS) | ||||||||
Allowance for equity funds used during construction | 3,157 | - | - | 3,157 | ||||
Interest and dividend income | 1,771 | 1,269 | (6,090) | (3,049) | ||||
Equity in earnings of unconsolidated equity affiliates | (1) | (132,114) | 1 | (132,114) | ||||
Miscellaneous - net | 21,337 | 12,269 | (285) | 33,323 | ||||
Total | 26,265 | (118,575) | (6,373) | (98,683) | ||||
INTEREST AND OTHER CHARGES | ||||||||
Interest on long-term debt | (10,542) | 863 | - | (9,679) | ||||
Other interest - net | (3,689) | 3,312 | (6,089) | (6,466) | ||||
Allowance for borrowed funds used during construction | (426) | - | - | (426) | ||||
Total | (14,657) | 4,175 | (6,089) | (16,571) | ||||
INCOME BEFORE INCOME TAXES | (14,076) | (115,568) | - | (129,643) | ||||
Income taxes | (1,630) | (44,410) | - | (46,040) | ||||
CONSOLIDATED NET INCOME | (12,446) | (71,158) | - | (83,603) | ||||
Preferred dividend requirements and other | (73) | - | - | (73) | ||||
EARNINGS APPLICABLE TO COMMON STOCK | $ (12,373) | $ (71,158) | $ - | $ (83,530) | ||||
EARNINGS PER AVERAGE COMMON SHARE: | ||||||||
BASIC | ($0.05) | ($0.31) | ($0.36) | |||||
DILUTED | ($0.05) | ($0.30) | ($0.35) | |||||
*Totals may not foot due to rounding. |
Entergy Corporation | ||||||||
Consolidating Income Statement | ||||||||
Nine Months Ended September 30, 2004 | ||||||||
(Dollars in thousands) | ||||||||
(Unaudited) | ||||||||
U.S. Utilities/ Parent & Other | Competitive Businesses | Eliminations | Consolidated | |||||
OPERATING REVENUES | ||||||||
Domestic electric | $ 6,043,937 | $ - | $ (1,285) | $ 6,042,652 | ||||
Natural gas | 155,591 | - | - | 155,591 | ||||
Competitive businesses | 351,140 | 1,199,412 | (48,567) | 1,501,985 | ||||
Total | 6,550,668 | 1,199,412 | (49,852) | 7,700,228 | ||||
OPERATING EXPENSES | ||||||||
Operating and Maintenance: | ||||||||
Fuel, fuel related expenses, and gas purchased for resale | 1,677,893 | 166,488 | - | 1,844,381 | ||||
Purchased power | 1,617,171 | 36,181 | (49,396) | 1,603,957 | ||||
Nuclear refueling outage expenses | 48,723 | 75,361 | - | 124,084 | ||||
Provision for turbine commitments, asset impairments | ||||||||
and restructuring charges | - | - | - | - | ||||
Other operation and maintenance | 1,145,578 | 506,633 | (971) | 1,651,239 | ||||
Decommissioning | 70,064 | 43,128 | - | 113,192 | ||||
Taxes other than income taxes | 271,525 | 41,628 | - | 313,153 | ||||
Depreciation and amortization | 607,635 | 54,978 | - | 662,614 | ||||
Other regulatory charges (credits) - net | (57,009) | - | - | (57,009) | ||||
Total | 5,381,580 | 924,397 | (50,367) | 6,255,611 | ||||
OPERATING INCOME | 1,169,088 | 275,015 | 515 | 1,444,617 | ||||
OTHER INCOME (DEDUCTIONS) | ||||||||
Allowance for equity funds used during construction | 28,572 | - | - | 28,572 | ||||
Interest and dividend income | 57,398 | 57,998 | (40,329) | 75,067 | ||||
Equity in earnings of unconsolidated equity affiliates | - | (31,908) | - | (31,908) | ||||
Miscellaneous - net | 25,503 | 35,005 | (515) | 59,993 | ||||
Total | 111,473 | 61,094 | (40,844) | 131,724 | ||||
INTEREST AND OTHER CHARGES | ||||||||
Interest on long-term debt | 337,096 | 12,064 | - | 349,160 | ||||
Other interest - net | 28,096 | 38,891 | (40,329) | 26,657 | ||||
Allowance for borrowed funds used during construction | (18,519) | - | - | (18,519) | ||||
Total | 346,673 | 50,955 | (40,329) | 357,298 | ||||
INCOME BEFORE INCOME TAXES AND CUMULATIVE | ||||||||
EFFECT OF ACCOUNTING CHANGES | 933,888 | 285,154 | - | 1,219,043 | ||||
Income taxes | 337,721 | 109,246 | - | 446,968 | ||||
INCOME BEFORE CUMULATIVE EFFECT OF | ||||||||
ACCOUNTING CHANGES | 596,167 | 175,908 | - | 772,075 | ||||
CUMULATIVE EFFECT OF ACCOUNTING | ||||||||
CHANGES (net of income taxes) | - | - | - | - | ||||
CONSOLIDATED NET INCOME | 596,167 | 175,908 | - | 772,075 | ||||
Preferred dividend requirements and other | 17,488 | - | - | 17,488 | ||||
EARNINGS APPLICABLE TO COMMON STOCK | $ 578,679 | $ 175,908 | $ - | $ 754,587 | ||||
EARNINGS PER AVERAGE COMMON SHARE BEFORE | ||||||||
CUMULATIVE EFFECT OF ACCOUNTING CHANGES: | ||||||||
BASIC | $2.53 | $0.77 | $3.30 | |||||
DILUTED | $2.48 | $0.76 | $3.24 | |||||
EARNINGS PER AVERAGE COMMON SHARE: | ||||||||
BASIC | $2.53 | $0.77 | $3.30 | |||||
DILUTED | $2.48 | $0.76 | $3.24 | |||||
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING: | ||||||||
BASIC | 228,614,245 | |||||||
DILUTED | 232,863,075 | |||||||
*Totals may not foot due to rounding. |
Entergy Corporation | ||||||||
Consolidating Income Statement | ||||||||
Nine Months Ended September 30, 2003 | ||||||||
(Dollars in thousands) | ||||||||
(Unaudited) | ||||||||
U.S. Utilities/ Parent & Other | Competitive Businesses | Eliminations | Consolidated | |||||
OPERATING REVENUES | ||||||||
Domestic electric | $ 5,764,781 | $ - | $ (1,484) | $ 5,763,298 | ||||
Natural gas | 139,803 | - | - | 139,803 | ||||
Competitive businesses | 122,200 | 1,088,689 | (22,230) | 1,188,659 | ||||
Total | 6,026,784 | 1,088,689 | (23,714) | 7,091,760 | ||||
OPERATING EXPENSES | ||||||||
Operating and Maintenance: | ||||||||
Fuel, fuel related expenses, and gas purchased for resale | 1,330,242 | 149,859 | - | 1,480,101 | ||||
Purchased power | 1,371,844 | 10,817 | (23,388) | 1,359,273 | ||||
Nuclear refueling outage expenses | 46,083 | 73,215 | - | 119,298 | ||||
Provision for turbine commitments, asset impairments | ||||||||
and restructuring charges | - | (7,743) | - | (7,743) | ||||
Other operation and maintenance | 1,096,667 | 534,064 | (1,015) | 1,629,716 | ||||
Decommissioning | 69,392 | 38,395 | - | 107,787 | ||||
Taxes other than income taxes | 260,499 | 43,102 | - | 303,601 | ||||
Depreciation and amortization | 594,520 | 42,639 | - | 637,159 | ||||
Other regulatory charges (credits) - net | 18,581 | - | - | 18,581 | ||||
Total | 4,787,828 | 884,348 | (24,403) | 5,647,773 | ||||
OPERATING INCOME | 1,238,956 | 204,341 | 690 | 1,443,987 | ||||
OTHER INCOME (DEDUCTIONS) | ||||||||
Allowance for equity funds used during construction | 26,962 | - | - | 26,962 | ||||
Interest and dividend income | 56,143 | 57,150 | (29,501) | 83,792 | ||||
Equity in earnings of unconsolidated equity affiliates | 1 | 258,451 | (1) | 258,451 | ||||
Miscellaneous - net | (116,273) | 33,058 | (689) | (83,904) | ||||
Total | (33,167) | 348,659 | (30,191) | 285,301 | ||||
INTEREST AND OTHER CHARGES | ||||||||
Interest on long-term debt | 354,553 | 12,997 | - | 367,550 | ||||
Other interest - net | 46,018 | 26,118 | (29,501) | 42,636 | ||||
Allowance for borrowed funds used during construction | (21,136) | - | - | (21,136) | ||||
Total | 379,435 | 39,115 | (29,501) | 389,050 | ||||
INCOME BEFORE INCOME TAXES AND CUMULATIVE | ||||||||
EFFECT OF ACCOUNTING CHANGES | 826,354 | 513,885 | - | 1,340,238 | ||||
Income taxes | 301,075 | 197,993 | - | 499,068 | ||||
INCOME BEFORE CUMULATIVE EFFECT OF | ||||||||
ACCOUNTING CHANGES | 525,279 | 315,892 | - | 841,170 | ||||
CUMULATIVE EFFECT OF ACCOUNTING | ||||||||
CHANGES (net of income taxes of $93,754) | (21,333) | 164,255 | - | 142,922 | ||||
CONSOLIDATED NET INCOME | 503,946 | 480,147 | - | 984,092 | ||||
Preferred dividend requirements and other | 17,669 | - | - | 17,669 | ||||
EARNINGS APPLICABLE TO COMMON STOCK | $ 486,277 | $ 480,147 | $ - | $ 966,423 | ||||
EARNINGS PER AVERAGE COMMON SHARE BEFORE | ||||||||
CUMULATIVE EFFECT OF ACCOUNTING CHANGES: | ||||||||
BASIC | $2.24 | $1.40 | $3.64 | |||||
DILUTED | $2.20 | $1.37 | $3.57 | |||||
EARNINGS PER AVERAGE COMMON SHARE: | ||||||||
BASIC | $2.15 | $2.12 | $4.27 | |||||
DILUTED | $2.10 | $2.09 | $4.19 | |||||
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING: | ||||||||
BASIC | 226,145,567 | |||||||
DILUTED | 230,388,260 | |||||||
*Totals may not foot due to rounding. | ||||||||
Entergy Corporation | ||||||||
Consolidating Income Statement | ||||||||
Nine Months Ended September 30, 2004 vs. 2003 | ||||||||
(Dollars in thousands) | ||||||||
(Unaudited) | ||||||||
U.S. Utilities/ Parent & Other | Competitive Businesses | Eliminations | Consolidated | |||||
OPERATING REVENUES | ||||||||
Domestic electric | $ 279,156 | $ - | $ 199 | $ 279,355 | ||||
Natural gas | 15,788 | - | - | 15,788 | ||||
Competitive businesses | 228,940 | 110,723 | (26,337) | 313,326 | ||||
Total | 523,884 | 110,723 | (26,139) | 608,469 | ||||
OPERATING EXPENSES | ||||||||
Operating and Maintenance: | ||||||||
Fuel, fuel related expenses, and gas purchased for resale | 347,651 | 16,629 | - | 364,280 | ||||
Purchased power | 245,327 | 25,364 | (26,008) | 244,683 | ||||
Nuclear refueling outage expenses | 2,640 | 2,146 | - | 4,786 | ||||
Provision for turbine commitments, asset impairments | ||||||||
and restructuring charges | - | 7,743 | - | 7,743 | ||||
Other operation and maintenance | 48,911 | (27,431) | 44 | 21,524 | ||||
Decommissioning | 672 | 4,733 | - | 5,405 | ||||
Taxes other than income taxes | 11,026 | (1,474) | - | 9,552 | ||||
Depreciation and amortization | 13,115 | 12,339 | - | 25,454 | ||||
Other regulatory charges (credits) - net | (75,590) | - | - | (75,590) | ||||
Total | 593,752 | 40,049 | (25,964) | 607,837 | ||||
OPERATING INCOME | (69,868) | 70,674 | (175) | 631 | ||||
OTHER INCOME (DEDUCTIONS) | ||||||||
Allowance for equity funds used during construction | 1,610 | - | - | 1,610 | ||||
Interest and dividend income | 1,255 | 848 | (10,828) | (8,726) | ||||
Equity in earnings of unconsolidated equity affiliates | (1) | (290,359) | 1 | (290,359) | ||||
Miscellaneous - net | 141,776 | 1,947 | 174 | 143,896 | ||||
Total | 144,640 | (287,565) | (10,653) | (153,579) | ||||
INTEREST AND OTHER CHARGES | ||||||||
Interest on long-term debt | (17,457) | (933) | - | (18,390) | ||||
Other interest - net | (17,922) | 12,773 | (10,828) | (15,977) | ||||
Allowance for borrowed funds used during construction | 2,617 | - | - | 2,617 | ||||
Total | (32,762) | 11,840 | (10,828) | (31,750) | ||||
INCOME BEFORE INCOME TAXES AND CUMULATIVE | ||||||||
EFFECT OF ACCOUNTING CHANGES | 107,534 | (228,731) | - | (121,198) | ||||
Income taxes | 36,646 | (88,747) | - | (52,101) | ||||
INCOME BEFORE CUMULATIVE EFFECT OF | ||||||||
ACCOUNTING CHANGES | 70,888 | (139,984) | - | (69,097) | ||||
CUMULATIVE EFFECT OF ACCOUNTING | ||||||||
CHANGES (net of income taxes of $93,754) | 21,333 | (164,255) | - | (142,922) | ||||
CONSOLIDATED NET INCOME | 92,221 | (304,239) | - | (212,019) | ||||
Preferred dividend requirements and other | (181) | - | - | (181) | ||||
EARNINGS APPLICABLE TO COMMON STOCK | $ 92,402 | $ (304,239) | $ - | $ (211,838) | ||||
EARNINGS PER AVERAGE COMMON SHARE BEFORE | ||||||||
CUMULATIVE EFFECT OF ACCOUNTING CHANGES: | ||||||||
BASIC | $0.29 | ($0.63) | ($0.34) | |||||
DILUTED | $0.28 | ($0.61) | ($0.33) | |||||
EARNINGS PER AVERAGE COMMON SHARE: | ||||||||
BASIC | $0.38 | ($1.35) | ($0.97) | |||||
DILUTED | $0.38 | ($1.33) | ($0.95) | |||||
*Totals may not foot due to rounding. | ||||||||
Entergy Corporation | ||||||||
Consolidating Income Statement | ||||||||
Twelve Months Ended September 30, 2004 | ||||||||
(Dollars in thousands) | ||||||||
(Unaudited) | ||||||||
U.S. Utilities/ Parent & Other | Competitive Businesses | Eliminations | Consolidated | |||||
OPERATING REVENUES | ||||||||
Domestic electric | $ 7,677,834 | $ - | $ (1,306) | $ 7,676,528 | ||||
Natural gas | 201,964 | - | - | 201,964 | ||||
Competitive businesses | 416,706 | 1,571,056 | (62,867) | 1,924,895 | ||||
Total | 8,296,504 | 1,571,056 | (64,173) | 9,803,387 | ||||
OPERATING EXPENSES | ||||||||
Operating and Maintenance: | ||||||||
Fuel, fuel related expenses, and gas purchased for resale | 2,133,113 | 218,385 | - | 2,351,498 | ||||
Purchased power | 1,993,444 | 43,669 | (63,903) | 1,973,209 | ||||
Nuclear refueling outage expenses | 64,148 | 100,634 | - | 164,783 | ||||
Provision for turbine commitments, asset impairments | ||||||||
and restructuring charges | - | - | - | - | ||||
Other operation and maintenance | 1,712,042 | 764,364 | (1,014) | 2,475,391 | ||||
Decommissioning | 93,195 | 58,310 | - | 151,505 | ||||
Taxes other than income taxes | 356,148 | 59,063 | - | 415,211 | ||||
Depreciation and amortization | 815,690 | 60,269 | - | 875,960 | ||||
Other regulatory charges (credits) - net | (89,351) | - | - | (89,351) | ||||
Total | 7,078,429 | 1,304,694 | (64,917) | 8,318,206 | ||||
OPERATING INCOME | 1,218,075 | 266,362 | 744 | 1,485,181 | ||||
OTHER INCOME (DEDUCTIONS) | ||||||||
Allowance for equity funds used during construction | 44,319 | - | - | 44,319 | ||||
Interest and dividend income | 71,866 | 55,850 | (49,054) | 78,662 | ||||
Equity in earnings of unconsolidated equity affiliates | - | (18,709) | - | (18,709) | ||||
Miscellaneous - net | 21,509 | 46,629 | (744) | 67,395 | ||||
Total | 137,694 | 83,770 | (49,798) | 171,667 | ||||
INTEREST AND OTHER CHARGES | ||||||||
Interest on long-term debt | 452,161 | 15,413 | - | 467,574 | ||||
Other interest - net | 40,548 | 46,080 | (49,054) | 37,575 | ||||
Allowance for borrowed funds used during construction | (30,574) | - | - | (30,574) | ||||
Total | 462,135 | 61,493 | (49,054) | 474,575 | ||||
INCOME BEFORE INCOME TAXES AND CUMULATIVE | ||||||||
EFFECT OF ACCOUNTING CHANGES | 893,634 | 288,639 | - | 1,182,273 | ||||
Income taxes | 332,199 | 105,776 | - | 437,975 | ||||
INCOME BEFORE CUMULATIVE EFFECT OF | ||||||||
ACCOUNTING CHANGES | 561,435 | 182,863 | - | 744,298 | ||||
CUMULATIVE EFFECT OF ACCOUNTING | ||||||||
CHANGES (net of income taxes of ($3,829)) | - | (5,848) | - | (5,848) | ||||
CONSOLIDATED NET INCOME | 561,435 | 177,015 | - | 738,450 | ||||
Preferred dividend requirements and other | 23,343 | - | - | 23,343 | ||||
EARNINGS APPLICABLE TO COMMON STOCK | $ 538,092 | $ 177,015 | $ - | $ 715,107 | ||||
EARNINGS PER AVERAGE COMMON SHARE BEFORE | ||||||||
CUMULATIVE EFFECT OF ACCOUNTING CHANGES: | ||||||||
BASIC | $2.35 | $0.80 | $3.15 | |||||
DILUTED | $2.31 | $0.78 | $3.09 | |||||
EARNINGS PER AVERAGE COMMON SHARE: | ||||||||
BASIC | $2.35 | $0.78 | $3.13 | |||||
DILUTED | $2.31 | $0.76 | $3.07 | |||||
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING: | ||||||||
BASIC | 228,650,706 | |||||||
DILUTED | 232,947,870 | |||||||
*Totals may not foot due to rounding. | ||||||||
Entergy Corporation | ||||||||
Consolidating Income Statement | ||||||||
Twelve Months Ended September 30, 2003 | ||||||||
(Dollars in thousands) | ||||||||
(Unaudited) | ||||||||
U.S. Utilities/ Parent & Other | Competitive Businesses | Eliminations | Consolidated | |||||
OPERATING REVENUES | ||||||||
Domestic electric | $ 7,285,885 | $ - | $ (1,896) | $ 7,283,990 | ||||
Natural gas | 174,842 | - | - | 174,842 | ||||
Competitive businesses | 132,334 | 1,401,728 | (22,389) | 1,511,673 | ||||
Total | 7,593,061 | 1,401,728 | (24,285) | 8,970,505 | ||||
OPERATING EXPENSES | ||||||||
Operating and Maintenance: | ||||||||
Fuel, fuel related expenses, and gas purchased for resale | 1,819,407 | 202,799 | - | 2,022,207 | ||||
Purchased power | 1,571,379 | 19,321 | (23,842) | 1,566,858 | ||||
Nuclear refueling outage expenses | 60,203 | 90,630 | - | 150,833 | ||||
Provision for turbine commitments, asset impairments | ||||||||
and restructuring charges | - | 29,156 | - | 29,156 | ||||
Other operation and maintenance | 1,579,505 | 722,856 | (1,392) | 2,300,970 | ||||
Decommissioning | 75,261 | 54,370 | - | 129,631 | ||||
Taxes other than income taxes | 337,549 | 54,761 | - | 392,310 | ||||
Depreciation and amortization | 791,981 | 58,950 | - | 850,931 | ||||
Other regulatory charges (credits) - net | 26,085 | - | - | 26,085 | ||||
Total | 6,261,370 | 1,232,843 | (25,234) | 7,468,981 | ||||
OPERATING INCOME | 1,331,691 | 168,885 | 950 | 1,501,524 | ||||
OTHER INCOME (DEDUCTIONS) | ||||||||
Allowance for equity funds used during construction | 34,890 | - | - | 34,890 | ||||
Interest and dividend income | 69,872 | 101,138 | (40,818) | 130,192 | ||||
Equity in earnings of unconsolidated equity affiliates | (1) | 314,084 | (1) | 314,083 | ||||
Miscellaneous - net | (121,069) | 38,256 | (949) | (83,763) | ||||
Total | (16,308) | 453,477 | (41,768) | 395,402 | ||||
INTEREST AND OTHER CHARGES | ||||||||
Interest on long-term debt | 476,053 | 26,985 | - | 503,039 | ||||
Other interest - net | 60,605 | 36,763 | (40,818) | 56,550 | ||||
Allowance for borrowed funds used during construction | (27,195) | - | - | (27,195) | ||||
Total | 509,463 | 63,748 | (40,818) | 532,394 | ||||
INCOME BEFORE INCOME TAXES AND CUMULATIVE | ||||||||
EFFECT OF ACCOUNTING CHANGES | 805,920 | 558,614 | - | 1,364,532 | ||||
Income taxes | 256,034 | 185,657 | - | 441,691 | ||||
INCOME BEFORE CUMULATIVE EFFECT OF | ||||||||
ACCOUNTING CHANGES | 549,886 | 372,957 | - | 922,841 | ||||
CUMULATIVE EFFECT OF ACCOUNTING | ||||||||
CHANGES (net of income taxes of $93,754) | (21,333) | 164,255 | - | 142,922 | ||||
CONSOLIDATED NET INCOME | 528,553 | 537,212 | - | 1,065,763 | ||||
Preferred dividend requirements and other | 23,585 | - | - | 23,585 | ||||
EARNINGS APPLICABLE TO COMMON STOCK | $ 504,968 | $ 537,212 | $ - | $ 1,042,178 | ||||
EARNINGS PER AVERAGE COMMON SHARE BEFORE | ||||||||
CUMULATIVE EFFECT OF ACCOUNTING CHANGES: | ||||||||
BASIC | $2.34 | $1.66 | $4.00 | |||||
DILUTED | $2.29 | $1.63 | $3.92 | |||||
EARNINGS PER AVERAGE COMMON SHARE: | ||||||||
BASIC | $2.24 | $2.39 | $4.63 | |||||
DILUTED | $2.20 | $2.34 | $4.54 | |||||
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING: | ||||||||
BASIC | 224,990,923 | |||||||
DILUTED | 229,454,668 | |||||||
*Totals may not foot due to rounding. | ||||||||
Entergy Corporation | ||||||||
Consolidating Income Statement | ||||||||
Twelve Months Ended September 30, 2004 vs. 2003 | ||||||||
(Dollars in thousands) | ||||||||
(Unaudited) | ||||||||
U.S. Utilities/ Parent & Other | Competitive Businesses | Eliminations | Consolidated | |||||
OPERATING REVENUES | ||||||||
Domestic electric | $ 391,949 | $ - | $ 590 | $ 392,539 | ||||
Natural gas | 27,122 | - | - | 27,122 | ||||
Competitive businesses | 284,372 | 169,328 | (40,478) | 413,222 | ||||
Total | 703,443 | 169,328 | (39,889) | 832,883 | ||||
OPERATING EXPENSES | ||||||||
Operating and Maintenance: | ||||||||
Fuel, fuel related expenses, and gas purchased for resale | 313,706 | 15,586 | - | 329,292 | ||||
Purchased power | 422,065 | 24,348 | (40,061) | 406,352 | ||||
Nuclear refueling outage expenses | 3,945 | 10,004 | - | 13,949 | ||||
Provision for turbine commitments, asset impairments | ||||||||
and restructuring charges | - | (29,156) | - | (29,156) | ||||
Other operation and maintenance | 132,537 | 41,508 | 378 | 174,423 | ||||
Decommissioning | 17,934 | 3,940 | - | 21,874 | ||||
Taxes other than income taxes | 18,599 | 4,302 | - | 22,901 | ||||
Depreciation and amortization | 23,709 | 1,319 | - | 25,028 | ||||
Other regulatory charges (credits) - net | (115,436) | - | - | (115,436) | ||||
Total | 817,059 | 71,851 | (39,683) | 849,227 | ||||
OPERATING INCOME | (113,616) | 97,477 | (206) | (16,345) | ||||
OTHER INCOME (DEDUCTIONS) | ||||||||
Allowance for equity funds used during construction | 9,429 | - | - | 9,429 | ||||
Interest and dividend income | 1,994 | (45,288) | (8,236) | (51,530) | ||||
Equity in earnings of unconsolidated equity affiliates | 1 | (332,793) | 1 | (332,791) | ||||
Miscellaneous - net | 142,578 | 8,373 | 205 | 151,156 | ||||
Total | 154,002 | (369,707) | (8,030) | (223,735) | ||||
INTEREST AND OTHER CHARGES | ||||||||
Interest on long-term debt | (23,892) | (11,572) | - | (35,464) | ||||
Other interest - net | (20,057) | 9,317 | (8,236) | (18,976) | ||||
Allowance for borrowed funds used during construction | (3,379) | - | - | (3,379) | ||||
Total | (47,328) | (2,255) | (8,236) | (57,819) | ||||
INCOME BEFORE INCOME TAXES AND CUMULATIVE | ||||||||
EFFECT OF ACCOUNTING CHANGES | 87,714 | (269,975) | 0 | (182,261) | ||||
Income taxes | 76,165 | (79,881) | - | (3,716) | ||||
INCOME BEFORE CUMULATIVE EFFECT OF | ||||||||
ACCOUNTING CHANGES | 11,549 | (190,094) | 0 | (178,545) | ||||
CUMULATIVE EFFECT OF ACCOUNTING | ||||||||
CHANGES (net of income taxes) | 21,333 | (170,103) | - | (148,770) | ||||
CONSOLIDATED NET INCOME | 32,882 | (360,197) | 0 | (327,315) | ||||
Preferred dividend requirements and other | (3,379) | - | - | (3,379) | ||||
EARNINGS APPLICABLE TO COMMON STOCK | $ 36,261 | $ (360,197) | $ 0 | $ (323,936) | ||||
EARNINGS PER AVERAGE COMMON SHARE BEFORE | ||||||||
CUMULATIVE EFFECT OF ACCOUNTING CHANGES: | ||||||||
BASIC | $0.01 | ($0.86) | ($0.84) | |||||
DILUTED | $0.02 | ($0.84) | ($0.82) | |||||
EARNINGS PER AVERAGE COMMON SHARE: | ||||||||
BASIC | $0.11 | ($1.61) | ($1.50) | |||||
DILUTED | $0.11 | ($1.59) | ($1.47) | |||||
*Totals may not foot due to rounding. |
Entergy Corporation | ||||||
Consolidated Cash Flow Statement | ||||||
Three Months Ended September 30, 2004 vs. 2003 | ||||||
(Dollars in thousands) | ||||||
(Unaudited) | ||||||
2004 | 2003 | Variance | ||||
OPERATING ACTIVITIES | ||||||
Consolidated net income | $288,047 | $371,652 | ($83,605) | |||
Noncash items included in net income: | ||||||
Reserve for regulatory adjustments | 3,152 | 2,274 | 878 | |||
Other regulatory charges (credits) - net | (25,032) | (945) | (24,087) | |||
Depreciation, amortization, and decommissioning | 274,071 | 256,596 | 17,475 | |||
Deferred income taxes and investment tax credits | 8,062 | 813,624 | (805,562) | |||
Equity in undistributed earnings of subsidiaries and unconsolidated equity affiliates | 72,015 | (55,901) | 127,916 | |||
Changes in working capital: | ||||||
Receivables | (158,560) | (58,449) | (100,111) | |||
Fuel inventory | 1,884 | (3,023) | 4,907 | |||
Accounts payable | (47,905) | (128,349) | 80,444 | |||
Taxes accrued | 203,348 | (620,618) | 823,966 | |||
Interest accrued | 32,835 | 13,298 | 19,537 | |||
Deferred fuel | 178,513 | 37,801 | 140,712 | |||
Other working capital accounts | (30,735) | 60,854 | (91,589) | |||
Provision for estimated losses and reserves | (12,682) | 19,576 | (32,258) | |||
Changes in other regulatory assets | 4,137 | 25,678 | (21,541) | |||
Other | (6,555) | (83,251) | 76,696 | |||
Net cash flow provided by operating activities | 784,595 | 650,817 | 133,778 | |||
INVESTING ACTIVITIES | ||||||
Construction/capital expenditures | (349,194) | (373,487) | 24,293 | |||
Allowance for equity funds used during construction | 13,093 | 9,936 | 3,157 | |||
Nuclear fuel purchases | (51,853) | (63,797) | 11,944 | |||
Proceeds from sale/leaseback of nuclear fuel | 13,085 | 80,085 | (67,000) | |||
Proceeds from sale of assets and businesses | - | 573 | (573) | |||
Investment in nonutility properties | (11,690) | (191) | (11,499) | |||
Decrease (increase) in other investments | (269) | (3,990) | 3,721 | |||
Changes in other temporary investments - net | - | (15,602) | 15,602 | |||
Decommissioning trust contributions and realized change in trust assets | (21,408) | (16,157) | (5,251) | |||
Other regulatory investments | (31,835) | (31,944) | 109 | |||
Other | - | (3,041) | 3,041 | |||
Net cash flow used in investing activities | (440,071) | (417,615) | (22,456) | |||
FINANCING ACTIVITIES | ||||||
Proceeds from the issuance of: | ||||||
Long-term debt | 72,379 | 584,898 | (512,519) | |||
Common stock and treasury stock | 32,505 | 21,701 | 10,804 | |||
Retirement of long-term debt | (149,487) | (1,241,669) | 1,092,182 | |||
Repurchase of common stock | (145,032) | - | (145,032) | |||
Redemption of preferred stock | (1,200) | (1,200) | - | |||
Changes in credit line borrowings - net | (45,075) | 10,000 | (55,075) | |||
Dividends paid: | ||||||
Common stock | (102,160) | (102,500) | 340 | |||
Preferred stock | (5,575) | (5,876) | 301 | |||
Net cash flow provided by (used in) financing activities | (343,645) | (734,646) | 391,001 | |||
Effect of exchange rates on cash and cash equivalents | 1,264 | 1,208 | 56 | |||
Net increase (decrease) in cash and cash equivalents | 2,143 | (500,236) | 502,379 | |||
Cash and cash equivalents at beginning of period | 585,698 | 1,077,780 | (492,082) | |||
Cash and cash equivalents at end of period | $587,841 | $577,544 | $10,297 | |||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||||||
Cash paid (received) during the period for: | ||||||
Interest - net of amount capitalized | $86,464 | $117,568 | ($31,104) | |||
Income taxes | $7,073 | $89,108 | ($82,035) | |||
Entergy Corporation | ||||||
Consolidated Cash Flow Statement | ||||||
Year to Date September 30, 2004 vs. 2003 | ||||||
(Dollars in thousands) | ||||||
(Unaudited) | ||||||
2004 | 2003 | Variance | ||||
OPERATING ACTIVITIES | ||||||
Consolidated net income | $772,075 | $984,092 | ($212,017) | |||
Noncash items included in net income: | ||||||
Reserve for regulatory adjustments | 5,559 | (9,806) | 15,365 | |||
Other regulatory charges (credits) - net | (57,009) | 18,581 | (75,590) | |||
Depreciation, amortization, and decommissioning | 775,806 | 744,947 | 30,859 | |||
Deferred income taxes and investment tax credits | 146,636 | 999,496 | (852,860) | |||
Cumulative effect of accounting changes | - | (142,922) | 142,922 | |||
Equity in undistributed earnings of subsidiaries and unconsolidated equity affiliates | 58,191 | (179,253) | 237,444 | |||
Provision for turbine commitments, asset impairments and restructuring charges | - | (7,743) | 7,743 | |||
Changes in working capital: | ||||||
Receivables | (342,935) | (327,439) | (15,496) | |||
Fuel inventory | (20,709) | (28,101) | 7,392 | |||
Accounts payable | (14,785) | (282,127) | 267,342 | |||
Taxes accrued | 314,741 | (548,941) | 863,682 | |||
Interest accrued | 14,024 | (15,387) | 29,411 | |||
Deferred fuel | 180,425 | (58,505) | 238,930 | |||
Other working capital accounts | (7,383) | (20,785) | 13,402 | |||
Provision for estimated losses and reserves | (14,921) | 130,444 | (145,365) | |||
Changes in other regulatory assets | 8,354 | 23,460 | (15,106) | |||
Other | (104,404) | (103,931) | (473) | |||
Net cash flow provided by operating activities | 1,713,665 | 1,176,080 | 537,585 | |||
INVESTING ACTIVITIES | ||||||
Construction/capital expenditures | (944,812) | (1,051,649) | 106,837 | |||
Allowance for equity funds used during construction | 28,572 | 26,962 | 1,610 | |||
Nuclear fuel purchases | (152,082) | (190,243) | 38,161 | |||
Proceeds from sale/leaseback of nuclear fuel | 74,779 | 119,174 | (44,395) | |||
Proceeds from sale of assets and businesses | 21,978 | 25,987 | (4,009) | |||
Investment in nonutility properties | (20,132) | (47,733) | 27,601 | |||
Decrease (increase) in other investments | (11,340) | (171,045) | 159,705 | |||
Changes in other temporary investments - net | 50,000 | (15,602) | 65,602 | |||
Decommissioning trust contributions and realized change in trust assets | (65,996) | (65,754) | (242) | |||
Other regulatory investments | (62,531) | (174,163) | 111,632 | |||
Other | - | (8,643) | 8,643 | |||
Net cash flow used in investing activities | (1,081,564) | (1,552,709) | 471,145 | |||
�� | ||||||
FINANCING ACTIVITIES | ||||||
Proceeds from the issuance of: | ||||||
Long-term debt | 345,356 | 2,067,393 | (1,722,037) | |||
Common stock and treasury stock | 140,345 | 198,466 | (58,121) | |||
Retirement of long-term debt | (689,266) | (2,238,430) | 1,549,164 | |||
Repurchase of common stock | (416,269) | - | (416,269) | |||
Redemption of preferred stock | (3,450) | (3,450) | - | |||
Changes in credit line borrowings - net | 209,925 | (130,000) | 339,925 | |||
Dividends paid: | ||||||
Common stock | (304,509) | (259,854) | (44,655) | |||
Preferred stock | (17,488) | (17,669) | 181 | |||
Net cash flow provided by (used in) financing activities | (735,356) | (383,544) | (351,812) | |||
Effect of exchange rates on cash and cash equivalents | (1,137) | 2,389 | (3,526) | |||
Net decrease in cash and cash equivalents | (104,392) | (757,784) | 653,392 | |||
Cash and cash equivalents at beginning of period | 692,233 | 1,335,328 | (643,095) | |||
Cash and cash equivalents at end of period | $587,841 | $577,544 | $10,297 | |||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||||||
Cash paid (received) during the period for: | ||||||
Interest - net of amount capitalized | $346,138 | $409,518 | ($63,380) | |||
Income taxes | $32,802 | $180,390 | ($147,588) | |||
Entergy Corporation | ||||||
Consolidated Cash Flow Statement | ||||||
Twelve Months Ended September 30, 2004 vs. 2003 | ||||||
(Dollars in thousands) | ||||||
(Unaudited) | ||||||
2004 | 2003 | Variance | ||||
OPERATING ACTIVITIES | ||||||
Consolidated net income | $738,450 | $1,065,763 | ($327,313) | |||
Noncash items included in net income: | ||||||
Reserve for regulatory adjustments | 28,455 | (1,725) | 30,180 | |||
Other regulatory charges (credits) - net | (89,351) | 26,085 | (115,436) | |||
Depreciation, amortization, and decommissioning | 1,027,462 | 980,562 | 46,900 | |||
Deferred income taxes and investment tax credits | 336,671 | 912,737 | (576,066) | |||
Cumulative effect of accounting changes | 5,848 | (142,922) | 148,770 | |||
Equity in undistributed earnings of subsidiaries and unconsolidated equity affiliates | 61,408 | (234,883) | 296,291 | |||
Provision for turbine commitments, asset impairments and restructuring charges | - | 29,156 | (29,156) | |||
Changes in working capital: | ||||||
Receivables | (156,108) | (138,202) | (17,906) | |||
Fuel inventory | (6,622) | (26,878) | 20,256 | |||
Accounts payable | 207,178 | (63,901) | 271,079 | |||
Taxes accrued | 35,143 | (582,774) | 617,917 | |||
Interest accrued | (6,426) | (13,336) | 6,910 | |||
Deferred fuel | 205,055 | 11,678 | 193,377 | |||
Other working capital accounts | 30,211 | (223,027) | 253,238 | |||
Provision for estimated losses and reserves | 51,254 | 140,779 | (89,525) | |||
Changes in other regulatory assets | 7,565 | (111,912) | 119,477 | |||
Other | 67,212 | 60,306 | 6,906 | |||
Net cash flow provided by operating activities | 2,543,405 | 1,687,506 | 855,899 | |||
INVESTING ACTIVITIES | ||||||
Construction/capital expenditures | (1,462,106) | (1,528,950) | 66,844 | |||
Allowance for equity funds used during construction | 44,320 | 34,890 | 9,430 | |||
Nuclear fuel purchases | (186,147) | (223,154) | 37,007 | |||
Proceeds from sale/leaseback of nuclear fuel | 105,740 | 142,776 | (37,036) | |||
Proceeds from sale of assets and businesses | 21,978 | (3,503) | 25,481 | |||
Investment in nonutility properties | (43,837) | (64,570) | 20,733 | |||
Decrease (increase) in other investments | 331,892 | (171,045) | 502,937 | |||
Changes in other temporary investments - net | 15,602 | (15,602) | 31,204 | |||
Decommissioning trust contributions and realized change in trust assets | (91,760) | (101,210) | 9,450 | |||
Other regulatory investments | (44,814) | (168,291) | 123,477 | |||
Other | (2,853) | (11,263) | 8,410 | |||
Net cash flow used in investing activities | (1,311,985) | (2,109,922) | 797,937 | |||
FINANCING ACTIVITIES | ||||||
Proceeds from the issuance of: | ||||||
Long-term debt | 499,127 | 2,896,134 | (2,397,007) | |||
Common stock and treasury stock | 159,400 | 212,958 | (53,558) | |||
Retirement of long-term debt | (860,753) | (2,413,292) | 1,552,539 | |||
Repurchase of common stock | (424,404) | (14,920) | (409,484) | |||
Redemption of preferred stock | (3,450) | (3,450) | - | |||
Changes in credit line borrowings - net | (160,050) | (265,000) | 104,950 | |||
Dividends paid: | ||||||
Common stock | (407,469) | (337,630) | (69,839) | |||
Preferred stock | (23,343) | (23,585) | 242 | |||
Net cash flow used in financing activities | (1,220,942) | 51,215 | (1,272,157) | |||
Effect of exchange rates on cash and cash equivalents | (181) | (101) | (80) | |||
Net increase (decrease) in cash and cash equivalents | 10,297 | (371,302) | 381,599 | |||
�� | ||||||
Cash and cash equivalents at beginning of period | 577,544 | 948,846 | (371,302) | |||
Cash and cash equivalents at end of period | $587,841 | $577,544 | $10,297 | |||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||||||
Cash paid (received) during the period for: | ||||||
Interest - net of amount capitalized | $488,637 | $588,960 | ($100,323) | |||
Income taxes | $41,121 | $200,476 | ($159,355) | |||