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INVESTOR NEWS
Exhibit 99.1
October 31, 2006
ENTERGY REPORTS THIRD QUARTER EARNINGS
NEW ORLEANS - Entergy Corporation reported third quarter 2006 earnings of $1.83 per share on an as-reported basis and $1.80 per share on an operational basis, as shown in Table 1 below. Entergy had indicated in its preliminary third quarter earnings guidance release of October 17, 2006 that it expected third quarter as-reported earnings of approximately $1.86 per share and operational earnings of approximately $1.83 per share. Entergy's final as-reported and operational earnings are lower due to a charge for a regulatory decision rendered by the Federal Energy Regulatory Commission on October 25, 2006. A more detailed discussion of quarterly results begins on page 2 of this release.
Table 1: Consolidated Earnings - Reconciliation of GAAP to Non-GAAP Measures |
Third Quarter and Year-to-Date 2006 vs. 2005 |
(Per share in U.S. $) | | | | | | |
| Third Quarter | Year-to-Date |
| 2006 | 2005 | Change | 2006 | 2005 | Change |
As-Reported Earnings | 1.83 | 1.65 | 0.18 | 4.08 | 3.75 | 0.33 |
Less Special Items | 0.03 | (0.03) | 0.06 | 0.16 | (0.05) | 0.21 |
Operational Earnings | 1.80 | 1.68 | 0.12 | 3.92 | 3.80 | 0.12 |
Weather Impact | 0.06 | 0.06 | - | 0.06 | 0.05 | 0.01 |
| | | | | | |
Operational Earnings Highlights for Third Quarter 2006
- Utility, Parent & Other had lower earnings due to higher operation and maintenance expense, higher interest expense, lower interest income, and a regulatory charge recorded during the quarter.
- Entergy Nuclear earnings increased as a result of higher revenue due to higher energy pricing, the effect of the uprate completed at Vermont Yankee, fewer outages, and a reduction in its decommissioning liability.
- Entergy's Non-Nuclear Wholesale Assets business had higher results due to reduced costs and the return to service of a plant previously idle for repair.
"Over the coming months, we expect to resolve uncertainties and financial stress created by the 2005 hurricanes, while demonstrating that even in the most adverse conditions it is still possible to create value for all stakeholders," saidJ. Wayne Leonard, Entergy's chairman and chief executive officer. "For customers that means affordable rates and a high level of service and for shareholders it includes superior performance in returning or investing capital."
Table of Contents | Page |
| | |
I. | Consolidated Results | 2 |
II. | Utility, Parent & Other Results | 3 |
III. | Competitive Businesses Results Entergy Nuclear Non-Nuclear Wholesale Assets | 4 5 6 |
IV. | Earnings Guidance | 6 |
V. | Forward-Looking Financial Data and Aspirations | 10 |
VI. | Appendices A. Entergy New Orleans, Inc. Bankruptcy B. Variance Analysis and Special Items C. Regulatory Summary D. Financial Performance Measures and Historical Performance Measures E. Planned Capital Expenditures F. Debt Maturities G. Definitions H. GAAP to Non-GAAP Reconciliations | 11 12 14 16
17 17 18 20 |
VII. | Financial Statements | 23 |
Highlights Included:
- Entergy Mississippi received $81 million in CDBG funding providing direct relief to Mississippi customers, while the Louisiana Recovery Authority proposed $200 million in CDBG funding for Entergy New Orleans, Inc. to assist customers of that company
- Entergy New Orleans, Inc. filed its Plan of Reorganization and reached agreement on a phased-in rate plan, major milestones in its path out of Chapter 11 Bankruptcy
- Arkansas Nuclear One Unit 2 completed a record-setting breaker-to-breaker run of 527 days of continuous operation, a first for an Entergy-owned nuclear unit
- Entergy Nuclear achieved a 99 percent capacity factor for third quarter 2006
- Entergy was named to the Dow Jones Sustainability Index for the fifth year in a row and the only U.S. utility named to the Dow Jones Sustainability Index - - World this year
Entergy will host a teleconference to discuss this release at 10:00 a.m. CT on Tuesday, October 31, 2006, with access by telephone, 719-457-2621, confirmation code 4496801. The call and presentation slides can also be accessed via Entergy's Web site atwww.entergy.com. A replay of the teleconference will be available for the following seven days by dialing 719-457-0820, confirmation code 4496801. The replay will also be available on Entergy's Web site atwww.entergy.com.
I.Consolidated Results
Consolidated Earnings
Table 2 provides a comparative summary of consolidated earnings per share for third quarter and year-to-date 2006 versus 2005, including a reconciliation of GAAP as-reported earnings to non-GAAP operational earnings. Utility, Parent & Other recorded lower earnings due primarily to higher operation and maintenance expense, higher interest expense, lower interest income, and a regulatory charge in the quarter for a FERC decision rendered on October 25, 2006. Entergy Nuclear's earnings increased as a result of higher energy pricing, greater generation output, and a reduction in the decommissioning liability. Also, Entergy's Non-Nuclear Wholesale Assets business had higher results due to reduced costs and the return to service of a plant previously idle for repair.
Table 2: Consolidated Earnings - Reconciliation of GAAP to Non-GAAP Measures (see appendix G for definitions of certain measures) |
Third Quarter and Year-to-Date 2006 vs. 2005 |
(Per share in U.S. $) |
| Third Quarter | Year-to-Date |
| 2006 | 2005 | Change | 2006 | 2005 | Change |
As-Reported | | | | | | |
Utility, Parent & Other | 1.35 | 1.35 | - | 2.89 | 2.81 | 0.08 |
Entergy Nuclear | 0.50 | 0.33 | 0.17 | 1.19 | 0.95 | 0.24 |
Non-Nuclear Wholesale Assets | (0.02) | (0.03) | 0.01 | - | (0.01) | 0.01 |
Consolidated As-Reported Earnings | 1.83 | 1.65 | 0.18 | 4.08 | 3.75 | 0.33 |
| | | | | | |
Less Special Items | | | | | | |
Utility, Parent & Other | 0.03 | (0.03) | 0.06 | 0.16 | (0.05) | 0.21 |
Entergy Nuclear | - | - | - | - | - | - |
Non-Nuclear Wholesale Assets | - | - | - | - | - | - |
Consolidated Special Items | 0.03 | (0.03) | 0.06 | 0.16 | (0.05) | 0.21 |
| | | | | | |
Operational | | | | | | |
Utility, Parent & Other | 1.32 | 1.38 | (0.06) | 2.73 | 2.86 | (0.13) |
Entergy Nuclear | 0.50 | 0.33 | 0.17 | 1.19 | 0.95 | 0.24 |
Non-Nuclear Wholesale Assets | (0.02) | (0.03) | 0.01 | - | (0.01) | 0.01 |
Consolidated Operational Earnings | 1.80 | 1.68 | 0.12 | 3.92 | 3.80 | 0.12 |
Weather Impact | 0.06 | 0.06 | - | 0.06 | 0.05 | 0.01 |
Detailed earnings variance analyses are included in appendices B-1 and B-2 to this release. In addition, appendix B-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 2006 was $777 million compared to $334 million in third quarter 2005. The increase was due primarily to:
- Collections of more than $350 million of deferred fuel balances, lower non-capital storm spending and lower income tax payments at Utility, Parent & Other, partially offset by pension funding payments.
- Higher net revenue of approximately $50 million due to higher prices and incremental generation at Entergy Nuclear, partially offset by higher income tax payments.
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 2006 vs. 2005 |
(U.S. $ in millions) |
| Third Quarter | Year-to-Date |
| 2006 | 2005 | Change | 2006 | 2005 | Change |
Utility, Parent & Other | 599 | 189 | 410 | 1,691 | 740 | 951 |
Entergy Nuclear | 175 | 159 | 16 | 648 | 394 | 254 |
Non-Nuclear Wholesale Assets | 3 | (14) | 17 | (82) | (27) | (55) |
Total Net Cash Flow Provided by Operating Activities | 777 | 334 | 443 | 2,257 | 1,107 | 1,150 |
| | | | | | |
II.Utility, Parent & Other Results
In third quarter 2006, Utility, Parent & Other had earnings of $1.35 per share on an as-reported basis and $1.32 per share on an operational basis compared to $1.35 per share on an as-reported basis and $1.38 on an operational basis in third quarter 2005. As-reported 2006 earnings reflect $0.03 per share in special items and primarily reflect earnings at Entergy New Orleans, Inc. (ENOI) as results from the discontinued competitive retail business in Texas were immaterial. The third quarter 2005 special item of $(0.03) reflected the operating loss from the discontinued competitive retail business in Texas. Entergy sold its customer base in the retail business in April 2006.
Earnings for Utility, Parent & Other in third quarter 2006, excluding ENOI, primarily reflect higher operation and maintenance expense, and higher interest expense due to debt incurred to pay for storm restoration costs for Hurricanes Katrina and Rita, and lower interest income. In addition, a regulatory charge in connection with a Federal Energy Regulatory Commission decision, issued subsequent to the end of the quarter, also contributed to lower earnings in the current period. Partially offsetting these factors were higher revenues from sales growth and the effects of constructive rate actions over the past year, and lower income tax expense.
Electricity usage excluding ENOI, in gigawatt-hour sales by customer segment, is included in Table 4. Current quarter sales reflect the following:
- Residential sales in third quarter 2006, on a weather-adjusted basis, were up 1 percent compared to third quarter 2005.
- Commercial and governmental sales, on a weather-adjusted basis, were up 2 percent.
- Industrial sales experienced an increase of 4 percent in third quarter 2006 compared to the same period a year ago.
The increases in the residential segment and the commercial and governmental segment reflect growth primarily at Entergy Louisiana and Entergy Mississippi. Sales for third quarter 2006 in these jurisdictions reflect some recovery from the effect of storms which reduced sales in third quarter of 2005 although the recovery at Entergy Louisiana has been slower than expected. The quarter over quarter increase in the industrial sector also reflects some rebound from the effect of storms in third quarter 2005. However, the recovery in the industrial segment has also been slower than expected and is being hampered by high energy prices, particularly in the chemical sector, as well as lingering storm outages and a mild winter that affected the pipeline sector.
ENOI results for third quarter 2006 are being treated as a special item. As such, its results are included in Utility, Parent & Other as-reported earnings but are excluded from operational earnings. For third quarter 2005 Utility, Parent & Other results include ENOI on both as-reported and operational bases. Also, ENOI is de-consolidated for both third quarter 2006 and third quarter 2005 reporting purposes as explained in Appendix A of this release. Accordingly, revenue and expense explanations provided above exclude the revenues and expenses of ENOI.
ENOI results for third quarter 2006 reflect earnings of $0.03 per share. In third quarter 2005, ENOI also earned $0.03 per share. Third quarter 2005 results reflect a normal operating environment for ENOI for nearly two months of the quarter, prior to Hurricane Katrina. Subsequent to the hurricane, ENOI experienced significant reductions in operating revenues due to customer losses. Third quarter 2006 results reflect the ongoing effects of the hurricane as well as certain actions taken by ENOI specific to its continuing effort to stabilize the company's financial condition. Results for the current period include significantly lower revenues from customers due to extended outages and customer losses partially offset by lower operation and maintenance expense due to the continued focus on storm restoration rather than routine operating activities, and ongoing cost reduction initiatives. Current results also reflect lower interest expense due to a reduction in interest accrued on first mortgage bonds. Interest had not been accrued for a year as a result of an agreement among bondholders and ENOI in the Chapter 11 bankruptcy proceeding. ENOI resumed accruing interest late in third quarter 2006.
Table 4 provides a comparative summary of the Utility's operational performance measures.
Table 4: Utility Operational Performance Measures excluding Entergy New Orleans |
Third Quarter and Year-to-Date 2006 vs. 2005 (see appendix G for definitions of measures) |
| Third Quarter | Year-to-Date |
| 2006 | 2005 | % Change | % Weather Adjusted | 2006 | 2005 | % Change | % Weather Adjusted |
GWh billed | | | | | | | | |
Residential | 10,772 | 10,630 | 1.3% | 1.1% | 24,769 | 24,358 | 1.7% | 1.7% |
Commercial and governmental | 7,920 | 7,725 | 2.5% | 2.4% | 20,273 | 19,691 | 3.0% | 2.3% |
Industrial | 10,154 | 9,736 | 4.3% | 4.3% | 28,768 | 28,837 | -0.2% | -0.2% |
Total Retail Sales | 28,846 | 28,091 | 2.7% | 2.6% | 73,810 | 72,886 | 1.3% | 1.1% |
Wholesale | 2,894 | 3,184 | -9.1% | | 8,471 | 8,811 | -3.9% | |
Total Sales | 31,740 | 31,275 | 1.5% | | 82,281 | 81,697 | 0.7% | |
O&M expense | $13.87 | $11.05 | 25.6% | | $15.08 | $13.83 | 9.1% | |
Number of retail customers (a) | | | | | | | | |
Residential | | | | | 2,141,492 | 2,085,413 | 2.7% | |
Commercial and governmental | | | | | 318,919 | 314,347 | 1.5% | |
Industrial | | | | | 47,800 | 46,591 | 2.6% | |
| | | | | | | | |
(a) Customer count data reflects estimates of customers in the hardest hit areas affected by Hurricane Katrina. Issues associated with temporary housing and resumption of service at permanent dwellings render precise counts difficult at this time.
Appendix C provides information on selected pending local and federal regulatory cases.
III.Competitive Businesses Results
Entergy's competitive businesses include Entergy Nuclear and Non-Nuclear Wholesale Assets. Table 5 provides a summary of Competitive Businesses' capacity and generation sold forward projections.
Entergy Nuclear's sold forward position, including projections for the pending Palisades acquisition currently estimated to close in second quarter 2007, is 90%, 95%, and 83% of planned generation at average prices per megawatt-hour of $41, $49 and $53, for the remainder of 2006, 2007 and 2008, respectively. Non-Nuclear Wholesale Assets has contracted for 39%, 29% and 29% of its planned energy and capacity revenues at average prices per megawatt-hour of $31, $28 and $27, for the same periods.
Table 5: Competitive Businesses Capacity and Generation Projected Sold Forward |
Remainder of 2006 through 2010 (see appendix G for definitions of measures) |
| Fourth Quarter 2006 | 2007 | 2008 | 2009 | 2010 |
Entergy Nuclear | | | | | |
Energy | | | | | |
Planned TWh of generation (including pending acquisition) | 9 | 38 | 41 | 41 | 41 |
Percent of planned generation sold forward (b) | | | | | |
Unit-contingent | 34% | 36% | 28% | 24% | 10% |
Unit-contingent with availability guarantees | 52% | 42% | 34% | 17% | 11% |
Firm liquidated damages | 4% | 7% | 4% | 0% | 0% |
Palisades assuming 2Q07 closing | 0% | 10% | 17% | 15% | 16% |
Total | 90% | 95% | 83% | 56% | 37% |
Average contract price per MWh (c) (including pending acquisition) | $41 | $49 | $53 | $56 | $50 |
Average contract price per MWh (c) (excluding pending acquisition) | $41 | $49 | $55 | $60 | $54 |
| | | | | |
Capacity | | | | | |
Planned net MW in operation (average including pending acquisition) | 4,200 | 4,666 | 4,998 | 4,998 | 4,998 |
Percent of capacity sold forward | | | | | |
Bundled capacity and energy contracts | 13% | 11% | 11% | 11% | 11% |
Capacity contracts | 82% | 64% | 35% | 26% | 9% |
Palisades assuming 2Q07 closing | 0% | 10% | 16% | 16% | 16% |
Total | 95% | 85% | 62% | 53% | 36% |
Average capacity contract price per kW per month | $1.1 | $1.6 | $1.2 | $1.3 | $1.7 |
| | | | | |
Blended Capacity and Energy Recap (based on revenues) | | | | | |
Percent of planned energy and capacity sold forward | 87% | 92% | 77% | 51% | 30% |
Average contract revenue per MWh (c) (including pending acquisition) | $42 | $50 | $53 | $57 | $51 |
Average contract revenue per MWh (c) (excluding pending acquisition) | $42 | $51 | $56 | $61 | $55 |
| | | | | |
Non-Nuclear Wholesale Assets | | | | | |
Capacity | | | | | |
Net MW in operation | 1,578 | 1,578 | 1,578 | 1,578 | 1,578 |
Percent of capacity sold forward | 20% | 20% | 20% | 11% | 8% |
| | | | | |
Energy | | | | | |
Planned TWh of generation | 1 | 3 | 3 | 4 | 4 |
Percent of planned generation sold forward | | | | | |
Unit-contingent | 8% | 7% | 7% | 6% | 6% |
Unit-contingent with availability guarantees | 33% | 37% | 38% | 29% | 30% |
Firm liquidated damages | 0% | 0% | 0% | 0% | 0% |
Total | 41% | 44% | 45% | 35% | 36% |
| | | | | |
Blended Capacity and Energy Recap (based on revenues) | | | | | |
Percent of planned energy and capacity sold forward | 39% | 29% | 29% | 18% | 17% |
Average contract revenue per MWh | $31 | $28 | $27 | $21 | $20 |
| | | | | |
- A portion of EN's total planned generation sold forward is associated with the Vermont Yankee contract for which pricing may be adjusted.
- Average contract prices exclude potential payments that may be owed under the value sharing agreement with the New York Power Authority.
|
Entergy Nuclear
Entergy Nuclear earned $0.50 per share on both as-reported and operational bases in third quarter 2006, compared to $0.33 in third quarter 2005. The improved results in third quarter 2006 came from a combination of higher pricing, increased generation available due to the Vermont Yankee uprate and fewer outages, and the effect of a reduction in the decommissioning liability. Partially offsetting these contributions was higher operation and maintenance expense due to higher benefits and insurance expense.
Table 6 provides a comparative summary of EN's operational performance measures.
Table 6: Entergy Nuclear Operational Performance Measures |
Third Quarter and Year-to-Date 2006 vs. 2005 (see appendix Gfor definitions of measures) |
| Third Quarter | Year-to-Date |
| 2006 | 2005 | % Change | 2006 | 2005 | % Change |
Net MW in operation | 4,200 | 4,105 | 2% | 4,200 | 4,105 | 2% |
Average realized price per MWh | $45.35 | $42.58 | 7% | $44.58 | $42.26 | 5% |
Production cost per MWh | $19.65 | $20.14 | -2% | $19.50 | $19.36 | 1% |
Non-fuel O&M expense per MWh | $20.61 | $20.32 | 1% | $20.62 | $20.25 | 2% |
Generation in GWh | 9,028 | 8,474 | 7% | 26,018 | 24,896 | 5% |
Capacity factor | 99% | 95% | 4% | 95% | 93% | 2% |
Refueling outage days: | | | | | | |
Indian Point 2 | - | - | | 31 | - | |
Indian Point 3 | - | - | | - | 26 | |
Pilgrim | - | - | | - | 25 | |
|
Non-Nuclear Wholesale Assets
Entergy's Non-Nuclear Wholesale Assets business recorded a loss of $(0.02) per share on both as-reported and operational bases in third quarter 2006. As-reported and operational results in third quarter 2005 were a loss of $(0.03) per share. The improved results were primarily attributable to reduced costs and the return to service of the Harrison County unit which had been idle for repairs.
IV.Earnings Guidance
Entergy is reaffirming as-reported earnings guidance for 2006 in the range of $4.78 to $5.08 per share and operational earnings guidance of $4.50 to $4.80 per share. Earnings guidance ranges exclude ENOI given the uncertainty that remains for this business as it works through the process of gaining approval for its Plan of Reorganization filed on October 23, 2006 in connection with its Chapter 11 Bankruptcy proceeding. During 2006, actual results for ENOI are being separately identified as a special item for earnings release purposes.
Entergy's 2006 guidance was initially established in January 2006 based on a number of assumptions as detailed below. Among them was normal weather for the Utility, and a then-current average spot electricity price of $83/MWh for the unsold portion of Entergy Nuclear's 2006 generation. During third quarter, weather was warmer than normal and spot electricity prices averaged $60/MWh. Published market prices for the remainder of 2006 averaged $63/MWh at the end of October. These and other factors can exceed or fall short of guidance mid-point assumptions but when combined, continue to support Entergy's overall guidance range.
Guidance ranges for 2006 are based on the following key assumptions established in January 2006:
Utility, Parent & Other
- Normal weather
- Sales growth of approximately 4%, weighted in the months September - December 2006 due to absence of 2005 hurricane effect
- Non-storm related rate actions, including carryover effects of 2005 rate actions and 2006 rate action for Attala
- Increased non-fuel operation and maintenance expense, including effects of inflation, benefits costs, supply plan, and Independent Coordinator of Transmission implementation along with the absence of 2005 offsets relating to storm restoration work
- Increased interest expense from higher financing requirements
Entergy Nuclear
- 35 TWh of total output, reflecting an approximate 94% capacity factor, including 30 day refueling outages at Indian Point 2 (spring 2006) and FitzPatrick (fall 2006) and implementation of 95 MW uprate at Vermont Yankee at end of first quarter 2006
- 91% energy sold under existing contracts; 9% sold into the spot market
- $41/MWh average energy contract price, average price of $83/MWh for unsold energy based on published market prices in January 2006
- $20.50/MWh non-fuel operation and maintenance expense reflecting inflation and higher benefits expense; $19/MWh production cost
- Increased interest expense due to increased collateral requirements driven by higher market prices
- Increased depreciation and other expenses
Non-Nuclear Wholesale Assets
- Reduced sales of emissions allowances
- Increased year over year losses
Special Items
- Receipt of additional proceeds from the 2004 sale of EKLP and recognition of gain contingency
- Absence of 2005 results from discontinued competitive retail operation (a 2006 estimate is not presented as ultimate amount depends on timing of sale)
Share Repurchase Program
- End of year fully diluted shares outstanding of approximately 213 million
The above assumptions assume no regulatory disallowances are ordered by retail regulators for the estimated $1.5 billion storm restoration costs ($0.8 billion capital, $0.7 billion regulatory assets). Any such disallowances would be shown as special items assuming such disallowances are not appealed to the courts or in the case of appeals, are later disallowed by the courts.
Earnings guidance details for 2006 are provided in Table 7. This table demonstrates why 2006 results are expected to differ from 2005 based on the quantification of assumptions described above. To simplify the presentation, year-over-year changes are shown as point estimates and are applied to 2005 actuals to compute the 2006 guidance midpoint. Because there is a range of possible outcomes associated with each earnings driver, a range is applied to the calculated guidance midpoints to produce Entergy's guidance ranges for as-reported and operational earnings excluding Entergy New Orleans.
Table 7: 2006 Earnings Per Share Guidance excluding Entergy New Orleans |
(Per share in U.S. $) - Prepared January 2006 |
Segment
|
Description of Drivers
| 2005 Earnings per Share | Expected Change | 2006 Guidance Midpoint | 2006 Guidance Range |
| | | | | |
Utility, Parent & Other | 2005 Operational Earnings per Share | 3.03 | | | |
Adjustment to normalize weather | | (0.10) | | |
Increased revenue due to non-storm rate actions and sales growth | | 0.50 | | |
Increased O&M expense | | (0.25) | | |
Increased interest expense | | (0.10) | | |
Other | | (0.03) | | |
Subtotal | 3.03 | 0.02 | 3.05 | |
| | | | | |
Entergy Nuclear | 2005 Operational Earnings per Share | 1.32 | | | |
Higher contract and market energy pricing | | 0.42 | | |
Increased generation from uprates and fewer outages | | 0.10 | | |
Increased O&M expense | | (0.10) | | |
Increased interest expense | | (0.05) | | |
Increased depreciation and other | | (0.09) | | |
Subtotal | 1.32 | 0.28 | 1.60 | |
| | | | | |
Non-Nuclear Wholesale Assets | 2005 Operational Earnings per Share | 0.05 | | | |
Reduced sales of emissions allowances | | (0.04) | | |
Increased losses from Non-Nuclear Wholesale Assets | | (0.01) | | |
Subtotal | 0.05 | (0.05) | 0.00 | |
| | | | | |
Consolidated Operational | | | | | |
2006 Operational Earnings per Share | 4.40 | 0.25 | 4.65 | 4.50 - 4.80 |
| | | | |
Consolidated As-Reported | 2005 As Reported Earnings per Share | 4.19 | | | |
Changes detailed above | | 0.25 | | |
Special items: | | | | |
2006 Gain on sale of Entergy-Koch, LP | | 0.28 | | |
2005 results from discontinued competitive retail operation, including impairment loss | | 0.21 | | |
2006 As-Reported Earnings per Share | 4.19 | 0.74 | 4.93 | 4.78 - 5.08 |
Entergy is initiating 2007 earnings guidance in the range of $5.40 to $5.70 per share on both an as-reported and operational bases. As is the case for 2006, earnings guidance for 2007 excludes ENOI given the uncertainty that remains for this business as it works through its Chapter 11 Bankruptcy proceeding. Also consistent with 2006 earnings guidance, year-over-year changes are shown as point estimates and are applied to 2006 guidance mid-point estimates to compute the 2007 guidance midpoint. Because there is a range of possible outcomes associated with each earnings driver, a range is applied to the calculated guidance midpoints to produce Entergy's guidance ranges for as-reported and operational earnings excluding Entergy New Orleans. 2007 earnings guidance is detailed in Table 8 below. Key assumptions supporting 2007 earnings guidance are as follows:
Utility, Parent & Other
- Normal weather
- Retail sales growth of just under 2%
- Increased revenue associated with storm and non-storm rate requests, partially offset by declining wholesale revenues, among others
- Increased non-fuel operation and maintenance expense, primarily due to effects of wage and other inflation and increased insurance premiums
- Increased interest expense primarily from securitization debt and Palisades financing
Entergy Nuclear
- Incremental earnings of $0.20 total for Palisades acquisition, assuming second quarter close; $0.13 associated with operations; $0.07 per share associated with the application of GAAP accounting for the PPA (details reflected in following assumptions)
- 38 TWh of total output, reflecting an approximate 92% capacity factor, including 30 day refueling outages at Indian Point 3, Pilgrim and Vermont Yankee, all in Spring 2007, and the initial refueling outage at Palisades, in Fall 2007
- 95% energy sold under existing contracts; 5% sold into the spot market
- $49/MWh average energy contract price; $69/MWh average unsold energy price based on published market prices in October 2006
- 85% capacity sold under existing contracts; 15% sold in spot market
- $1.60 per kW per month average capacity-only contract price; $3.00 per kW per month unsold capacity based on published market prices in October 2006
- $21.25/MWh non-fuel operation and maintenance expense reflecting wag e and other inflation; $20.50/MWh production cost
Non-Nuclear Wholesale Assets
- Increased year over year losses due to fewer anticipated opportunities to monetize assets
Special Items
- Absence of 2006 receipt of additional proceeds from the 2004 sale of EKLP and recognition of gain contingency
- Results from discontinued competitive retail business (2006) and ENOI (2006 and 2007) will be reflected when actual results are reported
Share Repurchase Program
- End of year fully diluted shares outstanding of approximately 206 million
The above assumptions assume no regulatory disallowances are ordered by retail regulators for the estimated $1.5 billion storm restoration costs ($0.8 billion capital, $0.7 billion regulatory assets). Any such disallowances would be shown as special items assuming such disallowances are not appealed to the courts or in the case of appeals, are later disallowed by the courts.
Table 8: 2007 Earnings Per Share Guidance excluding Entergy New Orleans |
(Per share in U.S. $) - Prepared October 2006 |
Segment
|
Description of Drivers
| 2006 Guidance Midpoint | Expected Change | 2007 Guidance Midpoint | 2007 Guidance Range |
| | | | | |
Utility, Parent & Other | 2006 Operational Earnings per Share | 3.05 | | | |
Adjustment to normalize weather | | (0.06) | | |
Increased revenue due to sales growth and rate actions | | 0.30 | | |
Increased O&M expense | | (0.10) | | |
Increased depreciation expense | | (0.10) | | |
Increased interest expense | | (0.05) | | |
Accretion | | 0.07 | | |
Other | | (0.06) | | |
Subtotal | 3.05 | 0.00 | 3.05 | |
| | | | | |
Entergy Nuclear | 2006 Operational Earnings per Share | 1.60 | | | |
Higher contract and market energy pricing | | 0.70 | | |
Higher contract and market capacity pricing | | 0.10 | | |
Increased generation from plant acquisition, net of more outages | | 0.40 | | |
Increased O&M expense | | (0.25) | | |
Accretion | | 0.06 | | |
Other | | (0.06) | | |
Subtotal | 1.60 | 0.95 | 2.55 | |
| | | | | |
Non-Nuclear Wholesale Assets | 2006 Operational Earnings per Share | 0.00 | | | |
Increased losses from Non-Nuclear Wholesale Assets | | (0.05) | | |
Subtotal | 0.00 | (0.05) | (0.05) | |
| | | | | |
Consolidated Operational | | | | | |
2007 Operational Earnings per Share | 4.65 | 0.90 | 5.55 | 5.40 - 5.70 |
| | | | |
Consolidated As-Reported | 2006 As Reported Earnings per Share | 4.78 - 5.08 | | | |
Changes detailed above | | 0.90 | | |
Special items: | | | | |
2006 Gain on sale of Entergy-Koch, LP | | (0.28) | | |
2007 As-Reported Earnings per Share | 4.78 - 5.08 | 0.62 | 5.55 | 5.40 - 5.70 |
Earnings guidance for 2007 should be considered in association with earnings sensitivities as shown in Table 9. These sensitivities illustrate the estimated change in operational earnings resulting from changes in various revenue and expense drivers. Utility sales are expected to be the most significant driver of results in 2007 for Utility, Parent & Other due to normal growth in customer usage. At Entergy Nuclear, energy prices are expected to be the most significant driver of results in 2007, given the size of EN's unsold position. Estimated annual impacts shown in the Table 9 are intended to be indicative rather than precise guidance.
Table 9: 2007 Earnings Sensitivities excluding Entergy New Orleans |
(Per share in U.S. $) | | | |
Variable
| 2007 Guidance Assumption
| Description of Change
| Estimated Annual Impact(d) |
Utility, Parent & Other | | | |
Sales growth Residential Commercial/Governmental Industrial Total | Just under 2% total sales growth
| 1% change in Residential MWh sold 1% change in Comm/Govt MWh sold 1% change in Industrial MWh sold 1% change in Total MWh sold
| - / + 0.04 - - / + 0.03 - - / +0.03 - / + 0.10 |
Extended outages for Entergy Louisiana customers | 27,000 customers of Entergy Louisiana | 10,000 return to service | n/a / + 0.03 |
Rate base | Stable rate base | $100 million change in rate base | - / + 0.02 |
Return on equity | See Appendix C | 1% change in allowed ROE | - / + 0.28 |
Interest expense | Additional average debt | $100M change in debt | - / + 0.02 |
Entergy Nuclear | | | |
Capacity factor | 92% capacity factor | 1% change in capacity factor | - / + 0.05 |
Energy price | 5% energy unsold at $69/MWh in 2007 | $10/MWh change for unsold energy | - / + 0.06 |
| Portion of energy sold is with options in 2007 | Market prices exceed option exercise prices | n/a / Up to 0.07 |
Non-fuel operation and maintenance expense | $21.25/MWh non-fuel operation and maintenance expense | $1 change per MWh | - / + 0.11 |
Outage (lost revenue only) | 92% capacity factor, including refueling outages for three northeast units and at Palisades | 1,000 MW plant for 10 days at average portfolio energy price of $49/MWh for sold and $69/MWh for unsold volumes in 2007 | - 0.03 / n/a |
| | | |
- Based on 2006
average fully diluted shares of approximately 213 million. Entergy Nuclear assumes Palisades acquisition closes in second quarter 2007.
V.Forward-looking Financial Data and Aspirations
Entergy continues to aspire to deliver superior value to its owners as measured by total shareholder return. Entergy believes top quartile total shareholder returns are achieved by growing earnings, improving returns on invested capital, maintaining investment grade credit quality and deploying capital in a disciplined manner, whether for new investments, share repurchases, dividends or debt retirement.
Table 10 provides details on Entergy's projected cash available for capital redeployment for the period 2007 through 2009 excluding Entergy New Orleans. Entergy expects to have $3.2 billion of cash available over this period for several potential uses: investments in new businesses or assets, repayment of debt or equity, or dividend increases. Cash flow from operations includes storm cost recovery anticipated from a combination of insurance, rate relief, and securitization; these amounts are applied consistent with regulatory filings and other agreements reached with governmental agencies under which benefits inure to ratepayers. Sources of cash also include debt that Entergy believes it could issue in association with new investments while maintaining credit quality consistent with BBB credit rating. The amount of additional debt could vary depending upon the type of new investment and the credit market environment. Uses of cash shown on the table re flect current estimates of storm restoration spending.
Table 10: Projected Cash Available for Capital Redeployment excluding Entergy New Orleans 2007 through 2009 - Reconciliation of GAAP to Non-GAAP Measures (see appendix G for definitions of measures) |
($ in billions) | 2007-2009 |
| | |
Net cash flow provided by operating activities | 8.3 | |
Less: | | |
Planned capital expenditures | (5.2) | |
Preferred dividends | (0.1) | |
Other investing cash flows | (0.8) | |
Subtotal | | 2.2 |
| | |
Common dividends | | (1.6) |
Capital structure changes including net share repurchases and new debt (net of maturities) | | 2.6 |
Net Cash Available for New Investment, Debt or Equity Repayment, Dividend Increase | | 3.2 |
| | |
Appendix E provides additional details on planned capital expenditures, and appendix F includes a summarized schedule of debt maturities.
VI.Appendices
Eight appendices are presented in this section as follows:
- Appendix A includes information on Entergy New Orleans, Inc.'s filing for protection under Chapter 11 of the U.S. Bankruptcy Code.
- Appendix B includes earnings per share variance analyses and details on special items that relate to the current quarter and year to date periods.
- Appendix C provides information on selected pending local and federal regulatory cases.
- Appendix D 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 E provides a summary of planned capital expenditures for the next three years.
- Appendix F provides a summary schedule of Entergy Corporation's debt maturities by business.
- Appendix G provides definitions of the operational performance measures and GAAP and non-GAAP financial measures that are used in this release.
- Appendix H provides a reconciliation of GAAP to non-GAAP financial measure s used in this release.
Appendix A provides information on the status of the bankruptcy process at Entergy New Orleans, Inc.
Appendix A: Entergy New Orleans, Inc. Bankruptcy |
Bankruptcy Filing
To ensure continued progress in restoring power and gas service to New Orleans after Hurricane Katrina, on September 23, 2005, Entergy New Orleans, Inc. (ENOI) filed a voluntary petition for reorganization under Chapter 11 of the U.S. Bankruptcy Code.
Plan of Reorganization
ENOI filed a Plan of Reorganization (POR) with the bankruptcy court on October 23, 2006 and believes the filing is a significant step forward for all parties involved in the bankruptcy proceeding with a plan that is workable, fair and in the public interest. The POR provides full compensation for all of ENOI's creditors and allows ENOI to emerge from Chapter 11 bankruptcy assuming the plan is supported by creditors and the various conditions included in the plan, as detailed below, are met. For more information on documents filed in this proceeding including the POR, go towww.entergy.com/investor_relations/enoi.aspx.
Conditions precedent that must be satisfied for the POR to become effective include:
- A final Confirmation Order from the bankruptcy court approving the POR
- City Council of New Orleans (CCNO) resolution(s) satisfactory to ENOI regarding 06 Formula Rate Plan Gas and Electric filings and Storm Cost Recovery and Storm Reserve riders
- Receipt by ENOI of insurance proceeds of at least $250 million or assurance of such receipt, or alternatively, assurance that regulatory mechanisms will be put in place to cover any shortfall
- Receipt by ENOI of $200 million in Community Development Block Grant (CDBG) funding and assurance that at a minimum an additional $200 million in CDBG funding will be available for future gas system rebuild or assurance from CCNO that an appropriate rate mechanism is in place to allow ENOI to recover the costs thereof
- No Material Adverse Change shall have occurred from and after Confirmation date of the POR
- ENOI receives final order from Federal Energy Regulatory Commission authorizing issuance of short-term debt securities under credit agreements, Entergy Money Pool, and unilateral arrangements with Entergy Corporation
Community Development Block Grant Funding
ENOI applied to the Louisiana Recovery Authority (LRA) for funding from CDBG resources made available to Louisiana. On October 12, 2006, the LRA passed a resolution approving funding of $200 million for ENOI. Additional approvals are needed from the full board of the LRA, the governor, the state legislature of Louisiana, and HUD. The approval process is expected to take several months.
ENOI Rate Plan
On October 27, 2006, the City Council of New Orleans approved a settlement agreement with ENOI that calls for a phased-in rate increase and the creation of a $75M storm reserve that positions ENOI to pay for future hurricane damage. Additional information is included in the Regulatory Summary Table in Appendix C.
Accounting
Entergy owns 100 percent of the common stock of ENOI and has, subject to the rules and requirements of Chapter 11 of the U.S. Bankruptcy Code, continued to supply operating management to ENOI. However, uncertainties surrounding the nature, timing and specifics of the bankruptcy proceedings caused Entergy to de-consolidate ENOI for financial reporting purposes beginning in third quarter 2005 with ENOI's financial results being recorded under the equity method of accounting. Under this methodology, earnings from ENOI are now reflected in Entergy's income statement as equity in the earnings of unconsolidated affiliates. Because Entergy owns all of the common stock of ENOI, this change has not affected the amount of net income Entergy has recorded in the current period or any historical period but has resulted in ENOI's net income being presented in one line item rather than included in each individual income statement line item presented. Various line items of Entergy's conso lidated balance sheet and cash flow statement have been revised to reflect the effects of de-consolidating ENOI. In addition, the deconsolidation of ENOI's results is retroactive to January 1, 2005 and Entergy's comparative results now reflect ENOI results under the equity method of accounting.
Appendix B-1 provides details of third quarter and year-to-date 2006 vs. 2005 earnings variance analyses for "Utility, Parent & Other," "Competitive Businesses," and "Consolidated."
Appendix B-1: As-Reported Earnings Per Share Variance Analysis |
Third Quarter 2006 vs. 2005 |
(Per share in U.S. $, sorted in consolidated |
column, most to least favorable) | Utility, | | Competitive | | | |
| Parent & Other | | Businesses | | | Consolidated |
2005 earnings | 1.35 | | | 0.30 | | | 1.65 |
Net revenue | 0.31 | (e) | | 0.11 | (f) | | 0.42 |
Other income (deductions) | 0.03 | | | 0.11 | (g) | | 0.14 |
Income taxes - other | 0.08 | (h) | | 0.02 | | | 0.10 |
Retail business discontinued operations | 0.03 | | | - | | | 0.03 |
Depreciation/amortization expense | (0.02) | | | (0.02) | | | (0.04) |
Interest and dividend income | (0.03) | | | (0.01) | | | (0.04) |
Interest expense and other charges | (0.05) | (i) | | 0.01 | | | (0.04) |
Taxes other than income taxes | (0.10) | (j) | | - | | | (0.10) |
Other operation & maintenance expense | (0.25) | (k) | | (0.04) | | | (0.29) |
2006 earnings | 1.35 | | | 0.48 | | | 1.83 |
|
Appendix B-2: As-Reported Earnings Per Share Variance Analysis |
Year-to-Date 2006 vs. 2005 |
(Per share in U.S. $, sorted in consolidated |
column, most to least favorable) | Utility, | | Competitive | | | |
| Parent & Other | | Businesses | | | Consolidated |
2005 earnings | 2.81 | | | 0.94 | | | 3.75 |
Net revenue | 0.38 | (e) | | 0.35 | (f) | | 0.73 |
Income taxes - other | 0.10 | (h) | | 0.02 | | | 0.12 |
Retail business discontinued operations | 0.10 | (l) | | - | | | 0.10 |
Share repurchase effect | 0.05 | (m) | | 0.02 | | | 0.07 |
Other income (deductions) | 0.05 | (n) | | 0.01 | | | 0.06 |
Decommissioning expense | 0.01 | | | (0.01) | | | - |
Interest and dividend income | 0.01 | | | (0.01) | | | - |
Nuclear refueling outage expense | (0.02) | | | - | | | (0.02) |
Preferred dividend requirements | (0.02) | | | - | | | (0.02) |
Depreciation/amortization expense | (0.03) | | | (0.02) | | | (0.05) |
Taxes other than income taxes | (0.11) | (j) | | (0.01) | | | (0.12) |
Interest expense and other charges | (0.18) | (i) | | 0.04 | | | (0.14) |
Other operation & maintenance expense | (0.26) | (k) | | (0.14) | (o) | | (0.40) |
2006 earnings | 2.89 | | | 1.19 | | | 4.08 |
|
Utility Net Revenue Variance Analysis 2006 vs. 2005 ($ EPS) |
Third Quarter | Year-to-Date |
Sales growth/pricing | 0.22 | Sales growth/pricing | 0.39 |
Weather | - | Weather | 0.01 |
Other | 0.09 | Other | (0.02) |
Total | 0.31 | Total | 0.38 |
- Net revenue increased in third quarter 2006 and on a year-to-date basis compared to those same periods a year ago due primarily to sales growth, the effect of constructive rate actions, and the collection of franchise taxes consistent with the revised regulatory treatment for that item at Entergy Arkansas. In addition, higher unbilled revenue in third quarter 2006 compared to 2005 also contributed to the increase in net revenue.
- Net revenue increased in both quarter and year-to-date periods due primarily to higher revenues at Entergy Nuclear due to higher pricing and the effect of higher generation due to the Vermont Yankee uprate and fewer outages. In addition, the planned monetization of Entergy's interest in a power development project increased revenues in the current year-to-date period compared to year-to-date 2005.
- Other income (deductions) increased due primarily to a reduction in the decommissioning liability at Entergy Nuclear to reflect changes in assumptions on probability of life extension.
- Income taxes-other decreased in the quarter due primarily to a benefit recorded at Entergy Arkansas for pension fund payments. The year-to-date period included this benefit and the flow through tax benefit associated with steam generator removal costs at Entergy Arkansas .
- Interest expense and other charges increased in both the quarter and year-to-date periods due primarily to higher borrowings under credit lines and long-term debt primarily in connection with financing of significant 2005 storm restoration costs.
- Taxes other than income taxes increased in both the quarter and year-to-date periods due primarily to a regulatory requirement that EAI franchise tax collections be recorded in revenue with a corresponding increase in taxes other than income taxes.
- Other operation and maintenance expense increased in both the quarter and year-to-date periods due primarily to resources being deployed to storm restoration rather than routine operation and maintenance expense activities in the quarter and year-to-date periods of 2005, the absence in the current period of proceeds received in third quarter 2005 related to a l ow-level radioactive waste services settlement, higher labor and benefit expenses in the current period, increased costs associated with the addition of the Perryville and Attala plants, and higher storm reserves, as well as higher legal and regulatory costs and higher insurance expense.
- Reflects results of retail business operations including the gain on the sale of this business in second quarter 2006.
- Share repurchase effect reflects the impact of Entergy's repurchase activity.
- Reflects reclassification of certain reserves, which is offset in expense, and higher allowance for funds used during construction.
- Other operation and maintenance expense increased due to higher benefits and insurance expenses at Entergy Nuclear as well as increased s pending at the Non-Nuclear Wholesale Assets business which is offset in revenue.
Appendix B-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 B-3: Special Items (shown as positive / (negative) impact on earnings) |
Third Quarter and Year-to-Date 2006 vs. 2005 |
(Per share in U.S. $) |
| Third Quarter | Year-to-Date |
| 2006 | 2005 | Change | 2006 | 2005 | Change |
Utility, Parent & Other | | | | | | |
ENOI results (p) | 0.03 | - | 0.03 | 0.11 | - | 0.11 |
Retail business discontinued operations | - | (0.03) | 0.03 | (0.03) | (0.05) | 0.02 |
Gain on sale - retail business | - | - | - | 0.08 | - | 0.08 |
Total Utility, Parent and Other | 0.03 | (0.03) | 0.06 | 0.16 | (0.05) | 0.21 |
Competitive Businesses | | | | | | |
Entergy Nuclear | - | - | - | - | - | - |
Non-Nuclear Wholesale Assets | - | - | - | - | - | - |
Total Competitive Businesses | - | - | - | - | - | - |
Total Special Items | 0.03 | (0.03) | 0.06 | 0.16 | (0.05) | 0.21 |
| | | | | | |
(U.S. $ in millions) |
| 2006 | 2005 | Change | 2006 | 2005 | Change |
Utility, Parent & Other | | | | | | |
ENOI results (p) | 7.3 | - | 7.3 | 23.7 | - | 23.7 |
Retail business discontinued operations | (1.0) | (7.1) | 6.1 | (7.3) | (11.3) | 4.0 |
Gain on sale - retail business | - | - | - | 17.1 | - | 17.1 |
Total Utility, Parent and Other | 6.3 | (7.1) | 13.4 | 33.5 | (11.3) | 44.8 |
Competitive Businesses | | | | | | |
Entergy Nuclear | - | - | - | - | - | - |
Non-Nuclear Wholesale Assets | - | - | - | - | - | - |
Total Competitive Businesses | - | - | - | - | - | - |
Total Special Items | 6.3 | (7.1) | 13.4 | 33.5 | (11.3) | 44.8 |
| | | | | | |
(p) ENOI results for the quarterly and year-to-date periods of 2005 are included in operational earnings.
Appendix C provides a summary of selected regulatory cases and events that are pending.
Appendix C: Regulatory Summary Table |
Company/ Proceeding | Authorized ROE | Pending Cases/Events |
Retail Regulation |
Entergy Arkansas | 11.00% | Recent activity: EAI filed a rate case on August 15, 2006 requesting $150 million based on a June 30, 2006 test year using an 11.25% ROE. A hearing is scheduled for April 17, 2007, with an effective date for new rates of June 2007. Additional testimony was filed by APSC Staff, intervenors and EAI in the Energy Cost Recovery Rider (ECR) proceeding, and ECR retention was recommended. A hearing on the Rider ECR investigation was conducted on October 12, 2006. Background: EAI's base rates and the ECR have been in effect since 1998. In December 2005, EAI provided notice of its intent to terminate participation in the Entergy System Agreement, following a final order from FERC establishing terms under which EAI may be required to make payments to other operating companies to achieve rough production cost equalization. |
| | |
Entergy Gulf States - TX | 10.95% | Recent activity:None. Background:EGSI-TX has operated under a base rate freeze since 1999. Legislation subsequently enacted in June 2005 extends the base rate freeze to mid 2008 but also allows EGSI-TX to file for rate relief through riders for incremental capacity costs and transition costs. In December 2005, the PUCT approved the recovery of $18 million annually beginning in December 2005 for capacity costs, subject to reconciliation from September 2005. In June 2006, the PUCT approved a settlement in the Transition to Competition Cost recovery case, allowing EGSI-TX to recover $14.5 million per year in TTC costs over a 15-year period. EGSI-TX implemented interim rates on March 1. Storm Cost Recovery: EGSI-TX initiated its storm recovery case on July 5, 2006 indicating $393 million of Hurricane Rita costs incurred through March 31, 2006. Pursuant to securitization legislation, the PUCT has 150 days (December 4, 2006) to issue an order determining the amount of hurricane restoration costs eligible for recovery and securitization. Staff and intervenors filed testimony in the storm recovery case beginning October 9, 2006. Staff testimony does not include any disallowances and disputes issues raised in intervenor testimony. A hearing is set for November 1-3, 2006. |
| | |
Entergy Gulf States - LA | 9.90% - 11.40% | Recent activity:In May 2006, EGSI-LA made its formula rate plan (FRP) filing for the 2005 test year. The evaluation report shows an Earned Rate of Return of 11.10% which is within the allowed bandwidth. Pursuant to the Approved Capacity Additions section of the FRP rider, the filing reflects a required annual revenue increase of $7.1 million to recover Commission approved deferred and ongoing capacity costs. On August 29, 2006, rates changes were implemented subject to refund, while FRP resolution is pursued. Background: In March 2005, the LPSC approved a Global Settlement which established an FRP with a 10.65% ROE midpoint and a +/- 75 basis point bandwidth and a recovery mechanism for Commission approved capacity additions. Earnings outside the bandwidth are allocated 60% to customers and 40% to the company. Storm Cost Recovery: In May 2006, EGSI-LA completed the $6 million interim recovery of storm costs through the fuel adjustment clause pursuant to the LPSC order. Beginning in September, interim recovery shifted into the Formula Rate Plan at the rate of $0.85 million per month. Interim recovery will continue until a final decision is granted on EGSI-LA's Phase II filing. On July 31, 2006, EGSI-LA made its Phase II storm filing for recovery of $200 million in storm related costs incurred through May 31, 2006. EGSI-LA also seeks to build a storm reserve in the amount of $81 million in the filing. Hearings are set for March 12-23, 2007, with a decision expected in 2nd Quarter 2007. EGSI-LA intends to pursue securitization options. Securitization has been authorized by legislation signed into law by the Governor in May 2006. |
| | |
Entergy Louisiana | 9.45% - 11.05% | Recent activity:In May 2006, ELL made its formula rate plan (FRP) filing for the 2005 test year. The evaluation report shows an Earned Rate of Return of 9.45% which is within the allowed bandwidth. Pursuant to the Approved Capacity Additions section of the FRP rider, the filing reflects a required annual revenue increase of $121 million to recover Commission approved deferred and ongoing capacity costs. ELL has proposed to amortize deferred capacity costs over a three-year period which creates a $51 million annual revenue requirement. Ongoing annual capacity costs total approximately $70 million. On September 28, 2006, ELL implemented, subject to refund while FRP resolution is pursued, an amended $142.9 million annual FRP increase consisting of $118.7 million for deferred and ongoing capacity costs and $24.2 million for interim storm costs recovery. This increase reflects certain adjustments proposed by the LPSC Staff with which ELL agrees. Background: In May 2005, the LPSC approved a settlement reestablishing the Company's FRP with a 10.25% ROE midpoint and a +/- 80 basis point bandwidth and a recovery mechanism for Commission-approved capacity additions. Earnings outside the bandwidth are allocated 60% to customers and 40% to the company. Storm Cost Recovery: In April 2006, ELL completed the $14 million interim recovery of storm costs through the fuel adjustment clause pursuant to the LPSC order. Beginning in September, interim recovery shifted into the Formula Rate Plan at the rate of $2 million per month. Interim recovery will continue until a final decision is granted on ELL's Phase II filing. On July 31, 2006, ELL made its Phase II storm filing for recovery of $467 million in storm related costs incurred through May 31, 2006. ELL also seeks to build a storm reserve in the amount of $132 million in the filing. Hearings are set for March 12-23, 2007 with a decision expected in 2nd Quarter 2007. ELL intends to pursue securitization options. Securitization has been authorized by legislation signed into law by the Governor in May 2006. |
| | |
Entergy Mississippi | 9.74% - 12.44% | Recent activity: In April 2006, EMI submitted its 2005 evaluation report that reflected an Earned Rate of Return of 9.35%, resulting in a revenue deficiency. On June 30, 2006, EMI and the Public Utilities Staff filed a Joint Stipulation with the MPSC that resulted in a rate increase of approximately $2 million. The MPSC approved the Joint Stipulation on August 1, 2006 which was effective with August 2006 billings. On August 21, 2006, EMI filed notice of intent to increase several fees (connect, reconnect, late payment and return check). On October 9, 2006 the MPSC approved EMI's filing to revise the Power Management Rider Schedule to extend beyond 2006 recovery of EMI's Attala costs, effective for bills on/after January 1, 2007. Background:EMI has been operating under a formula rate plan last approved in December 2002. The FRP allows the company's earned ROE to increase or decrease within a bandwidth with no change in rates; earnings outside the bandwidth are allocated 50% to customers and 50% to the company, but on a prospective basis only. The plan also provides for performance incentives that can increase or decrease the benchmark ROE by as much as 100 basis points. The current mid-point of the ROE bandwidth, including performance incentives, is 11.09%. In December 2005, |
Appendix C: Regulatory Summary Table (continued) |
Company/ Proceeding | Authorized ROE | Pending Cases/Events |
Retail Regulation |
Entergy Mississippi (continued) | | Background (continued):the MPSC approved purchase of the Attala facility and authorized interim recovery through December 2006. Storm Cost Recovery: On June 28, 2006, the MPSC issued an Order approving $89 million of the EMI's Hurricane Katrina storm restoration costs incurred through March 31, 2006 and certified that amount as eligible for CDBG funding and securitization. On October 27, 2006, the MPSC concluded the securitization proceeding, authorizing $48M for securitization, including $40M for a storm reserve and net of $81 million for CDBG funding that EMI received on October 30, 2006. |
| |
Entergy New Orleans | 10.75% | Recent activity: On October 27, 2006, the City Council of New Orleans (CCNO) approved a settlement agreement with ENOI that calls for a phased-in rate increase to ensure the company's ability to focus on restoration of the gas and electric systems, create a $75M storm reserve that positions ENOI to pay for future hurricane damage, and continues its focus on customer service and reliability improvements post Katrina. When fully implemented by January 1, 2008, electric base rates will increase by $3.9 million and gas base rates by $11.0 million. Grand Gulf fuel adjustment clause recovery is also retained. Absent extraordinary circumstances, there will be no further base rate adjustments until April 2009. Background: In September 2005, the CCNO approved a two year extension of ENOI's FRP with a ROE mid-point of 10.75%, a 45% hypothetical equity ratio, and electric and gas ROE bandwidths of 100 and 50 basis points, respectively. The Council's September 2005 order also temporarily suspended the Generation Performance-Based Rate (G-PBR) due to effects from Hurricane Katrina. The October 27 agreement supercedes ENOI's FRP and G-PBR but allows ENO to seek reinstatement of an appropriate FRP following the resetting of rates in 2009. Storm Cost Recovery:The October 27 agreement established storm reserve riders for electric and gas and a process for storm cost recovery. The anticipated receipt of $200 million CDBG funding allocated by the LRA on October 12, 2006 is to be applied to storm costs; any storm costs in excess of the $200 million and insurance receipts will be addressed in ENO's July 2008 rate filing. Storm reserve rider builds a $75 million reserve for future storm costs over a 10 year period. |
Wholesale Regulation (FERC) |
System Energy Resources, Inc. | 10.94% | Recent activity: None Background: ROE approved by July 2001 FERC order. No cases pending. |
| | |
System Agreement | NA | Recent activity:None Background: The system agreement case addresses reallocation of production costs among the utility operating subsidiaries. In June 2005, the FERC issued a decision stating that rough production cost equalization did not exist on the Entergy system. The FERC established a bandwidth of +/- 11 % to reallocate production costs and ordered that this approach be applied prospectively. In December 2005, FERC essentially denied requests for rehearing of its June 2005 order and established, among other things, that 1) the bandwidth would be applied to calendar year 2006 actual production costs and 2) 2007 would be the first possible year of payments among Entergy's operating companies. Appeals of this decision were filed by the APSC, LPSC, MPSC and AEEC in the federal appeals court for the D.C. circuit. These appeals have been consolidated. The City of New Orleans intervened in the LPSC appeal, and Entergy has intervened in all appeals. A compliance filing to implement the FERC decision in this case was fi led by Entergy at FERC on April 10, 2006 which proposed that all payments required by the June 2005 FERC decision be properly reflected as fuel costs. On May 31, 2006, the APSC, LPSC, AEEC, Arkansas Attorney General filed comments or protests of Entergy's Compliance filing, and on June 7, 2006 the LPSC filed Request for Summary Disposition on issues relating to the timing of payments/receipts between the utility operating subsidiaries. Entergy has responded to the comments or protests to its Compliance filing and has urged FERC to reject the LPSC's request for summary judgment. |
| | |
Independent Coordinator of Transmission (ICT) | NA | Recent activity:On September 22, 2006 FERC denied various requests for rehearing of its previous Independent Coordinator of Transmission (ICT) Orders and on October 18, 2006 approved Entergy's Compliance filing, with modifications. On October 23, 2006 Entergy filed a request for clarification on two limited issues related to the FERC's September Order on Rehearing. The FERC has directed that SPP be installed as the ICT by November 17, 2006. Pre-implementation activities between Entergy and SPP are underway. SPP is establishing various stakeholder processes required by the FERC Order and filing the criteria it will use to evaluate transmission service. Implementation of the weekly procurement process is anticipated to occur by May 2007. Background: Based on a positive Declaratory Order issued by the FERC in March 2005, Entergy filed for approval of its ICT in May 2005. On April 24, 2006 the FERC approved Entergy's ICT proposal with modification. On May 24, 2006, Entergy filed (1) a Compliance filing to implement provisions of FERC's April 2006 Order, (2) the ICT contract, signed with SPP earlier in May, and (3) a request that SPP be installed as the ICT. The LPSC approved the ICT proposal on July 12, 2006. |
Appendix D-1 provides comparative financial performance measures for the current quarter. Appendix D-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 D-1: GAAP and Non-GAAP Financial Performance Measures |
Third Quarter 2006 vs. 2005 (see appendix G for definitions of certain measures) |
| |
For 12 months ending September 30 | 2006 | 2005 | | Change |
GAAP Measures | | | | |
Return on average invested capital - as-reported | 7.5% | 7.5% | | 0.0% |
Return on average common equity - as-reported | 11.6% | 11.5% | | 0.1% |
Net margin - as-reported | 8.6% | 10.0% | | (1.4)% |
Cash flow interest coverage | 6.0 | 5.9 | | 0.1 |
Book value per share | $41.03 | $37.89 | | $3.14 |
End of period shares outstanding (millions) | 208.6 | 207.4 | | 1.2 |
| | | | |
Non-GAAP Measures | | | | |
Return on average invested capital - operational | 7.5% | 7.3% | | 0.2% |
Return on average common equity - operational | 11.6% | 11.2% | | 0.4% |
Net margin - operational | 8.6% | 9.7% | | (1.1)% |
| | | | |
As of September 30 ($ in millions) | 2006 | 2005 | | Change |
GAAP Measures | | | | |
Cash and cash equivalents | 745 | 598 | | 147 |
Revolver capacity | 3,095 | 791 | | 2,304 |
Total debt | 9,054 | 8,865 | | 189 |
Debt to capital ratio | 50.4% | 51.9% | | (1.5)% |
Off-balance sheet liabilities: | | | | |
Debt of joint ventures - Entergy's share | 149 | 215 | | (66) |
Leases - Entergy's share | 519 | 564 | | (45) |
Total off-balance sheet liabilities | 668 | 779 | | (111) |
| | | | |
Non-GAAP Measures | | | | |
Total gross liquidity | 3,840 | 1,389 | | 2,451 |
Net debt to net capital ratio | 48.3% | 50.2% | | (1.9)% |
Net debt ratio including off-balance sheet liabilities | 50.2% | 52.4% | | (2.2)% |
| | | | |
Appendix D-2: Historical Performance Measures (see appendix G for definitions of measures) |
| | | 4Q04(q) | 1Q05 | 2Q05 | 3Q05 | 4Q05 | 1Q06 | 2Q06 | 3Q06 | 05YTD | 06YTD |
Financial | | | | | | | | | | |
| | EPS - as-reported ($) | 0.68 | 0.79 | 1.33 | 1.65 | 0.43 | 0.92 | 1.33 | 1.83 | 3.75 | 4.08 |
| | Less - special items ($) | 0.18 | -0.01 | -0.01 | -0.03 | -0.16 | 0.02 | 0.11 | 0.03 | -0.05 | 0.16 |
| | EPS - operational ($) | 0.50 | 0.80 | 1.34 | 1.68 | 0.59 | 0.90 | 1.22 | 1.80 | 3.80 | 3.92 |
| Trailing Twelve Months | | | | | | | | | | |
| | ROIC - as-reported (%) | 7.3 | 7.0 | 7.1 | 7.5 | 7.2 | 7.3 | 7.3 | 7.5 | | |
| | ROIC - operational (%) | 7.1 | 6.9 | 7.2 | 7.3 | 7.5 | 7.5 | 7.4 | 7.5 | | |
| | ROE - as-reported (%) | 10.7 | 10.3 | 10.7 | 11.5 | 11.2 | 11.5 | 11.3 | 11.6 | | |
| | ROE - operational (%) | 10.4 | 10.2 | 10.8 | 11.2 | 11.8 | 12.0 | 11.5 | 11.6 | | |
| | Cash Flow Interest Coverage | 7.1 | 7.6 | 7.1 | 5.9 | 4.0 | 5.1 | 5.2 | 6.0 | | |
| | Debt to capital ratio (%) | 47.4 | 49.0 | 49.9 | 51.9 | 53.1 | 52.1 | 52.4 | 50.4 | | |
| | Net debt/net capital ratio (%) | 45.3 | 47.5 | 48.0 | 50.2 | 51.5 | 50.0 | 50.4 | 48.3 | | |
Utility |
| | GWh billed | | | | | | | | | | |
| | Residential | 7,521 | 7,170 | 6,557 | 10,630 | 7,212 | 6,963 | 7,034 | 10,772 | 24,358 | 24,769 |
| | Commercial & Gov't | 7,252 | 5,854 | 6,113 | 7,725 | 6,277 | 5,916 | 6,438 | 7,920 | 19,691 | 20,273 |
| | Industrial | 10,425 | 9,452 | 9,649 | 9,736 | 8,778 | 9,053 | 9,561 | 10,154 | 28,837 | 28,768 |
| | Wholesale | 1,799 | 1,728 | 2,944 | 3,184 | 1,549 | 1,555 | 2,816 | 2,894 | 8,811 | 8,471 |
| | O&M expense/MWh | $17.44 | $14.98 | $16.69 | $11.05 | $17.43 | $16.12 | $16.32 | $13.87 | $13.83 | $15.08 |
| | Reliability | | | | | | | | | | |
| | SAIFI | 1.9 | 1.5 | 1.8 | 1.8(r) | 1.7(r) | 1.8(r) | 1.7(r) | 1.8(r) | 1.8(r) | 1.8(r) |
| | SAIDI | 169 | 136 | 157 | 158(r) | 161(r) | 174(r) | 178(r) | 182(r) | 158(r) | 182(r) |
Nuclear |
| | Net MW in operation | 4,058 | 4,058 | 4,105 | 4,105 | 4,105 | 4,135 | 4,200 | 4,200 | 4,105 | 4,200 |
| | Avg. realized price per MWh | $40.69 | $41.56 | $42.63 | $42.58 | $42.75 | $44.39 | $43.93 | $45.35 | $42.26 | $44.58 |
| | Production cost/MWh | $22.28 | $18.71 | $19.22 | $20.14 | $19.48 | $19.08 | $19.80 | $19.65 | $19.36 | $19.50 |
| | Non-fuel O&M expense/MWh | $23.99 | $20.03 | $20.39 | $20.32 | $19.95 | $19.74 | $21.56 | $20.61 | $20.25 | $20.62 |
| | Generation in GWh | 7,567 | 8,267 | 8,156 | 8,474 | 8,643 | 8,742 | 8,249 | 9,028 | 24,896 | 26,018 |
| | Capacity factor | 85% | 93% | 91% | 95% | 95% | 97% | 90% | 99% | 93% | 95% |
- Data has not been restated for the de-consolidation of ENOI which was the accounting adopted by Entergy in third quarter 2005, retroactive to first quarter 2005.
- Excludes impact of major storm activity.
Appendix E: Planned Capital Expenditures
Entergy's capital plan from 2007 through 2009 anticipates $5.2 billion for investment; roughly $2.5 billion of this amount is associated with capital to maintain Entergy's existing assets. The remaining $2.7 billion is associated with specific investments such as the Palisades acquisition, transmission upgrades, dry cask storage and license renewal projects at certain nuclear sites, environmental compliance spending, NYPA value sharing costs and other investments, such as potential opportunities through Entergy's supply plan initiatives that support the utility's ability to meet load growth. Entergy will provide 2007 through 2009 details on planned capital expenditures in its fourth quarter earnings release and the 2006 Form 10-K.
Appendix F provides details on scheduled long-term debt maturities including currently maturing portions.
Appendix F: Debt Maturity Schedule excluding Entergy New Orleans |
Maturities as of 9/30/2006 | | |
($ in millions) | 2006 | 2007 | 2008 | 2009-2010 | 2011+ | Total |
Utility, Parent & Other | - | 93 | 1,074 | 1,783 | 5,377 | 8,327 |
Entergy Nuclear | 77 | 84 | 24 | 52 | 158 | 395 |
Total | 77 | 177 | 1,098 | 1,835 | 5,535 | 8,722 |
| | | | | | |
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 | |
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 | Number of customers at end of period |
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, forward financial contracts or options (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 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) or settles financially on notional quantities; 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 the Non-Nuclear Wholesale Assets business, 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 or option exercise 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 or option exercise 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 |
Non-fuel O&M expense per MWh | Operation, maintenance and refueling expenses per MWh of generation, excluding fuel |
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 during the period |
| |
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, notes payable, capital leases, and preferred stock with sinking fund on the balance sheet less non-recourse debt, if any |
Debt of joint ventures (Entergy's share) | Debt issued by Entergy-Koch, LP and Non-Nuclear Wholesale Assets business joint ventures for periods through third quarter 2004. Only Non-Nuclear Wholesale Assets business joint ventures debt included for periods thereafter. |
Leases (Entergy's 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 |
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 to Non-GAAP Financial Measures - - Return on Equity, Return on Invested Capital and Net Margin Metrics |
($ in millions) | 4Q04 | 1Q05 | 2Q05 | 3Q05 | 4Q05 | 1Q06 | 2Q06 | 3Q06 |
As-reported earnings-rolling 12 months (A) | 910 | 874 | 895 | 963 | 898 | 920 | 916 | 955 |
Preferred dividends | 24 | 23 | 24 | 25 | 25 | 27 | 28 | 29 |
Tax effected interest expense | 295 | 282 | 278 | 287 | 293 | 304 | 316 | 324 |
As-reported earnings, rolling 12 months including preferred dividends and tax effected interest expense (B) | 1,228 | 1,180 | 1,197 | 1,275 | 1,217 | 1,251 | 1,260 | 1,308 |
| | | | | | | | |
Special items in prior quarters | (11) | 15 | 0 | 37 | (11) | (43) | (37) | (6) |
| | | | | | | | |
Special items 4Q04 thru 3Q06 | | | | | | | | |
Utility, Parent & Other Tax benefits- Entergy Koch | 17 | | | | | | | |
Energy Commodity Services Gain (loss) on disposition of assets | 60 | | | | | | | |
Energy Commodity Services asset and contract impairments | (36) | | | | | | | |
Utility, Parent & Other Comp Retail asset impairments | | | | | (26) | | | |
Comp Retail discontinued operations | | (1) | (3) | (7) | (8) | (2) | 13 | (1) |
ENOI results | | | | | | 6 | 11 | 7 |
Total special items (C) | 30 | 13 | (2) | 30 | (45) | (40) | (13) | 0 |
| | | | | | | | |
Operational earnings, rolling 12 months including preferred dividends and tax effected interest expense (B-C) | 1,198 | 1,166 | 1,199 | 1,245 | 1,262 | 1,291 | 1,273 | 1,308 |
| | | | | | | | |
Operational earnings, rolling 12 months (A-C) | 880 | 861 | 898 | 933 | 943 | 960 | 929 | 955 |
| | | | | | | | |
Average invested capital (D) | 16,845 | 16,825 | 16,806 | 17,033 | 16,850 | 17,140 | 17,283 | 17,514 |
| | | | | | | | |
Average common equity (E) | 8,500 | 8,452 | 8,347 | 8,350 | 8,020 | 8,026 | 8,080 | 8,208 |
| | | | | | | | |
Operating revenues (F) | 9,686 | 9,289 | 9,465 | 9,661 | 10,106 | 10,564 | 10,747 | 11,104 |
| | | | | | | | |
ROIC - as-reported (B/D) | 7.3 | 7.0 | 7.1 | 7.5 | 7.2 | 7.3 | 7.3 | 7.5 |
| | | | | | | | |
ROIC - operational ((B-C)/D) | 7.1 | 6.9 | 7.2 | 7.3 | 7.5 | 7.5 | 7.4 | 7.5 |
| | | | | | | | |
ROE - as-reported (A/E) | 10.7 | 10.3 | 10.7 | 11.5 | 11.2 | 11.5 | 11.3 | 11.6 |
| | | | | | | | |
ROE - operational ((A-C)/E) | 10.4 | 10.2 | 10.8 | 11.2 | 11.8 | 12.0 | 11.5 | 11.6 |
| | | | | | | | |
Net margin - as-reported (A/F) | 9.4 | 9.4 | 9.5 | 10.0 | 8.9 | 8.7 | 8.5 | 8.6 |
| | | | | | | | |
Net margin - operational ((A-C)/F) | 9.1 | 9.3 | 9.5 | 9.7 | 9.3 | 9.1 | 8.6 | 8.6 |
| | | | | | | | |
Appendix H-2: Reconciliation of GAAP to Non-GAAP Financial Measures - Credit and Liquidity Metrics |
($ in millions) | 4Q04 | 1Q05 | 2Q05 | 3Q05 | 4Q05 | 1Q06 | 2Q06 | 3Q06 |
Gross debt (A) | 7,807 | 8,033 | 8,283 | 8,865 | 9,288 | 9,329 | 9,402 | 9,054 |
Less cash and cash equivalents (B) | 620 | 477 | 607 | 598 | 583 | 752 | 729 | 745 |
Net debt (C) | 7,187 | 7,556 | 7,676 | 8,267 | 8,705 | 8,576 | 8,673 | 8,309 |
| | | | | | | | |
Total capitalization (D) | 16,469 | 16,393 | 16,609 | 17,070 | 17,477 | 17,888 | 17,956 | 17,957 |
Less cash and cash equivalents (B) | 620 | 477 | 607 | 598 | 583 | 752 | 729 | 745 |
Net capital (E) | 15,849 | 15,916 | 16,002 | 16,472 | 16,894 | 17,135 | 17,227 | 17,212 |
| | | | | | | | |
Debt to capital ratio % (A/D) | 47.4 | 49.0 | 49.9 | 51.9 | 53.1 | 52.1 | 52.4 | 50.4 |
| | | | | | | | |
Net debt to net capital ratio % (C/E) | 45.3 | 47.5 | 48.0 | 50.2 | 51.5 | 50.0 | 50.4 | 48.3 |
| | | | | | | | |
Off-balance sheet liabilities (F) | 769 | 771 | 780 | 779 | 778 | 732 | 671 | 668 |
| | | | | | | | |
Net debt to net capital ratio including off-balance sheet liabilities % ((C+F)/(E+F)) | 47.9 | 49.9 | 50.4 | 52.4 | 53.7 | 52.1 | 52.2 | 50.2 |
| | | | | | | | |
Revolver capacity (G) | 1,490 | 1,070 | 1,407 | 791 | 2,545 | 2,733 | 2,710 | 3,095 |
| | | | | | | | |
Gross liquidity (B+G) | 2,110 | 1,547 | 2,014 | 1,389 | 3,128 | 3,485 | 3,439 | 3,840 |
| | | | | | | | |
Entergy Corporation'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/investor_relations
**********************************************************************************************************************
In this release and from time to time, Entergy Corporation 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 Corporation 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 Corporation 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 these statements. Some of those factors (in addition to the risk factors in the For m 10-K as well as others described in the Form 10-Q for Entergy Corporation and its affiliates and in subsequent securities filings) include: resolution of pending and future rate cases and negotiations, including various performance-based rate discussions and implementation of new Texas legislation, and other proceedings, including those related to the Entergy System Agreement, Entergy's utilities' supply plan, recovery of storm costs, and recovery of fuel and purchased power costs, Entergy's utilities' ability to manage its operation and maintenance costs, the performance of Entergy's Uitility and non-utility generating plants, and particularly the capacity factor at its nuclear generating facilities, prices for power generated by Entergy's unregulated generating facilities, the ability to hedge, sell power forward or otherwise reduce the market price risk associated with those facilities, including the Non-Utility Nuclear plants, and the prices and availability of fuel and power Entergy's utilities must purchase for their customers, and Entergy's utilities' ability to meet credit support requirements for fuel and power supply contracts, Entergy Corporation's ability to develop and execute on a point of view regarding prices of electricity, natural gas, and other energy-related commodities, changes in the financial markets, particularly those affecting the availability of capital and Entergy Corporation's ability to refinance existing debt, execute its share repurchase program, and fund investments and acquisitions, actions of rating agencies, including changes in the ratings of debt and preferred stock, changes in general corporate ratings, and changes in the rating agencies' ratings criteria, changes in inflation, interest rates, and foreign currency exchange rates, Entergy Corporation's ability to purchase and sell assets at attractive prices and on other attractive terms, volatility and changes in markets for electricity, natural gas, uranium, and other energy-related commodities, changes in utility reg ulation, including the beginning or end of retail and wholesale competition, the ability to recover net utility assets and other potential stranded costs, the establishment of a regional transmission organization that includes the areas served by Entergy's utilities, and the application of market power criteria by the Federal Energy Regulatory Commission, changes in regulation of nuclear generation facilities and nuclear materials and fuel, including possible shutdown of nuclear generating facilities, particularly those in the northeastern United States, uncertainty regarding the establishment of interim or permanent sites for spent nuclear fuel storage and disposal, resolution of pending or future applications for license extensions or modifications of nuclear generating facilities, changes in law resulting from federal energy legislation, including the effects of the Public Utilities Holding Company Act of 1935 repeal, changes in environmental, tax, and other laws, including requirements for reduced emissi ons of sulfur, nitrogen, carbon, mercury, and other substances, the economic climate, particularly growth in the areas served by Entergy's utilities, variations in weather and the occurrence of hurricanes and other storms and disasters, including uncertainties associated with efforts to remediate the effects of Hurricanes Katrina and Rita and recovery of costs associated with restoration including Entergy's utilities' ability to obtain financial assistance from governmental authorities in connection with these storms, the outcome of the Chapter 11 bankruptcy proceeding of Entergy New Orleans, Inc. and the impact of this proceeding on other Entergy companies, advances in technology, the potential effects of threatened or actual terrorism and war, the effects of Entergy Corporation's strategies to reduce tax payments, the effects of litigation and government investigations, changes in accounting standards, corporate governance, and securities law requirements, Entergy Corporation's ability to attract and retai n talented management and directors.
Entergy Corporation |
|
Consolidating Balance Sheet |
September 30, 2006 |
(Dollars in thousands) |
(Unaudited) |
| |
| U.S. Utilities/ Parent & Other | | Competitive Businesses | | Eliminations | | Consolidated |
ASSETS | | | | | | | |
| | | | | | | |
CURRENT ASSETS | | | | | | | |
| | | | | | | |
Cash and cash equivalents: | | | | | | | |
Cash | $ 132,211 | | $ 4,210 | | $ - | | $ 136,421 |
Temporary cash investments - at cost, | | | | | | | |
which approximates market | 167,525 | | 441,082 | | - | | 608,607 |
Total cash and cash equivalents | 299,736 | | 445,292 | | - | | 745,028 |
Notes receivable - Entergy New Orleans DIP loan | 31,841 | | - | | - | | 31,841 |
Notes receivable | 447,093 | | 1,077,345 | | (1,523,311) | | 1,127 |
Accounts receivable: | | | | | | | |
Customer | 631,983 | | - | | - | | 631,983 |
Allowance for doubtful accounts | (19,553) | | - | | - | | (19,553) |
Associated companies | (26,614) | | 115,805 | | (89,191) | | - |
Other | 264,955 | | 173,404 | | - | | 438,359 |
Accrued unbilled revenues | 292,612 | | - | | - | | 292,612 |
Total receivables | 1,143,383 | | 289,209 | | (89,191) | | 1,343,401 |
Deferred fuel costs | 73,722 | | - | | - | | 73,722 |
Fuel inventory - at average cost | 199,995 | | 2,548 | | - | | 202,543 |
Materials and supplies - at average cost | 399,742 | | 195,128 | | - | | 594,870 |
Deferred nuclear refueling outage costs | 29,501 | | 75,010 | | - | | 104,511 |
Prepayments and other | 56,549 | | 32,742 | | - | | 89,291 |
TOTAL | 2,681,562 | | 2,117,274 | | (1,612,502) | | 3,186,334 |
| | | | | | | |
OTHER PROPERTY AND INVESTMENTS | | | | | | | |
| | | | | | | |
Investment in affiliates - at equity | 7,809,863 | | 340,988 | | (7,827,844) | | 323,007 |
Decommissioning trust funds | 1,217,971 | | 1,530,800 | | - | | 2,748,771 |
Non-utility property - at cost (less accumulated depreciation) | 209,653 | | 3,526 | | - | | 213,179 |
Other | 33,383 | | 7,247 | | - | | 40,630 |
TOTAL | 9,270,870 | | 1,882,561 | | (7,827,844) | | 3,325,587 |
| | | | | | | |
PROPERTY, PLANT, AND EQUIPMENT | | | | | | | |
| | | | | | |
Electric | 28,142,981 | | 2,289,483 | | (2,506) | | 30,429,958 |
Property under capital lease | 723,614 | | - | | - | | 723,614 |
Natural gas | 89,685 | | - | | - | | 89,685 |
Construction work in progress | 691,789 | | 123,477 | | - | | 815,266 |
Nuclear fuel under capital lease | 248,506 | | - | | - | | 248,506 |
Nuclear fuel | 168,776 | | 293,562 | | - | | 462,338 |
TOTAL PROPERTY, PLANT AND EQUIPMENT | 30,065,351 | | 2,706,522 | | (2,506) | | 32,769,367 |
Less - accumulated depreciation and amortization | 13,083,787 | | 330,109 | | - | | 13,413,896 |
PROPERTY, PLANT AND EQUIPMENT - NET | 16,981,564 | | 2,376,413 | | (2,506) | | 19,355,471 |
| | | | | | | |
DEFERRED DEBITS AND OTHER ASSETS | | | | | | | |
| | | | | | | |
Regulatory assets: | | | | | | | |
SFAS 109 regulatory asset - net | 777,042 | | - | | - | | 777,042 |
Other regulatory assets | 2,376,634 | | - | | - | | 2,376,634 |
Deferred fuel costs | 168,122 | | - | | - | | 168,122 |
Long-term receivables | 22,989 | | - | | - | | 22,989 |
Goodwill | 374,099 | | 3,073 | | - | | 377,172 |
Other | 787,179 | | 785,094 | | (603,970) | | 968,303 |
TOTAL | 4,506,065 | | 788,167 | | (603,970) | | 4,690,262 |
| | | - - | | | | |
TOTAL ASSETS | $ 33,440,061 | | $ 7,164,415 | | $ (10,046,822) | | $ 30,557,654 |
| | | | | | | |
*Totals may not foot due to rounding. | | | | | | | |
|
|
|
Entergy Corporation |
|
Consolidating Balance Sheet |
September 30, 2006 |
(Dollars in thousands) |
(Unaudited) |
| |
| U.S. Utilities/ Parent & Other | | Competitive Businesses | | Eliminations | | Consolidated |
LIABILITIES AND SHAREHOLDERS' EQUITY | | | | | | | |
| | | | | | | |
CURRENT LIABILITIES | | | | | | | |
| | | | | | | |
Currently maturing long-term debt | $ 23,335 | | $ 84,856 | | $ - | | $ 108,191 |
Notes payable: | | | | | | | |
Associated companies | 1,022,928 | | 500,383 | | (1,523,311) | | - |
Other | 41 | | - | | - | | 41 |
Account payable: | | | | | | | |
Associated companies | 63,718 | | 21,358 | | (85,076) | | - |
Other | 750,410 | | 118,775 | | - | | 869,185 |
Customer deposits | 239,612 | | - | | - | | 239,612 |
Taxes accrued | 220,476 | | 33,729 | | - | | 254,205 |
Accumulated deferred income taxes | 36,805 | | - | | - | | 36,805 |
Nuclear refueling outage costs | 4,791 | | - | | - | | 4,791 |
Interest accrued | 146,569 | | 11,476 | | - | | 158,045 |
Obligations under capital leases | 136,944 | | - | | - | | 136,944 |
Other | 109,887 | | 219,238 | | - | | 329,125 |
TOTAL | 2,755,516 | | 989,815 | | (1,608,387) | | 2,136,944 |
| | | | | | | |
NON-CURRENT LIABILITIES | | | | | | | |
| | | | | | | |
Accumulated deferred income taxes and taxes accrued | 5,710,541 | | 247,605 | | - | | 5,958,146 |
Accumulated deferred investment tax credits | 363,050 | | - | | - | | 363,050 |
Obligations under capital leases | 183,835 | | - | | - | | 183,835 |
Other regulatory liabilities | 431,901 | | - | | - | | 431,901 |
Decommissioning and retirement cost liabilities | 1,226,976 | | 767,209 | | - | | 1,994,185 |
Transition to competition | 79,098 | | - | | - | | 79,098 |
Regulatory reserves | 15,916 | | - | | - | | 15,916 |
Accumulated provisions | 356,100 | | 159,447 | | - | | 515,547 |
Long-term debt | 8,303,386 | | 381,107 | | (70,379) | | 8,614,114 |
Preferred stock with sinking fund | 10,500 | | - | | - | | 10,500 |
Other | 1,528,027 | | 364,077 | | (540,981) | | 1,351,123 |
TOTAL | 18,209,330 | | 1,919,445 | | (611,360) | | 19,517,415 |
| | | | | | | |
Preferred stock without sinking fund | 310,755 | | 426,217 | | (391,937) | | 345,035 |
| | | | | | | |
SHAREHOLDERS' EQUITY | | | | | | | |
| | | | | | | |
Common stock, $.01 par value, authorized 500,000,000 shares; | | | | | | | |
issued 248,174,087 shares in 2006 | 2,205,192 | | 1,091,855 | | (3,294,565) | | 2,482 |
Paid-in capital | 6,650,215 | | 1,507,523 | | (3,338,846) | | 4,818,892 |
Retained earnings | 5,560,725 | | 1,355,730 | | (965,669) | | 5,950,786 |
Accumulated other comprehensive income (loss) | (19,580) | | (82,854) | | 626 | | (101,808) |
Less - treasury stock, at cost (39,606,024 shares in 2006) | 2,232,092 | | 43,316 | | (163,316) | | 2,112,092 |
TOTAL | 12,164,460 | | 3,828,938 | | (7,435,138) | | 8,558,260 |
| | | | | | | |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 33,440,061 | | $ 7,164,415 | | $ (10,046,822) | | $ 30,557,654 |
| | | | | | | |
*Totals may not foot due to rounding. | | | | | | | |
| | | | | | | |
Entergy Corporation |
|
Consolidating Balance Sheet |
December 31, 2005 |
(Dollars in thousands) |
(Unaudited) |
| |
| U.S. Utilities/ Parent & Other | | Competitive Businesses | | Eliminations | | Consolidated |
ASSETS | | | | | | | |
| | | | | | | |
CURRENT ASSETS | | | | | | | |
| | | | | | | |
Cash and cash equivalents: | | | | | | | |
Cash | $ 207,135 | | $ 14,638 | | $ - | | $ 221,773 |
Temporary cash investments - at cost, | | | | | | | |
which approximates market | 127,786 | | 233,261 | | - | | 361,047 |
Total cash and cash equivalents | 334,921 | | 247,899 | | - | | 582,820 |
Notes receivable - Entergy New Orleans DIP loan | 90,000 | | - | | - | | 90,000 |
Notes receivable | 575,873 | | 1,144,505 | | (1,717,151) | | 3,227 |
Accounts receivable: | | | | | | | |
Customer | 629,717 | | - | | - | | 629,717 |
Allowance for doubtful accounts | (28,635) | | (2,170) | | - | | (30,805) |
Associated companies | 33,851 | | 69,719 | | (103,570) | | - |
Other | 296,286 | | 162,866 | | - | | 459,152 |
Accrued unbilled revenues | 477,570 | | - | | - | | 477,570 |
Total receivables | 1,408,789 | | 230,415 | | (103,570) | | 1,535,634 |
Deferred fuel costs | 543,927 | | - | | - | | 543,927 |
Fuel inventory - at average cost | 204,382 | | 1,813 | | - | | 206,195 |
Materials and supplies - at average cost | 369,397 | | 241,535 | | - | | 610,932 |
Deferred nuclear refueling outage costs | 64,157 | | 93,607 | | - | | 157,764 |
Prepayments and other | 301,387 | | 24,408 | | - | | 325,795 |
TOTAL | 3,892,833 | | 1,984,182 | | (1,820,721) | | 4,056,294 |
| | | | | | | |
OTHER PROPERTY AND INVESTMENTS | | | | | | | |
| | | | | | | |
Investment in affiliates - at equity | 8,198,240 | | 428,006 | | (8,329,462) | | 296,784 |
Decommissioning trust funds | 1,136,006 | | 1,470,759 | | - | | 2,606,765 |
Non-utility property - at cost (less accumulated depreciation) | 226,264 | | 2,569 | | - | | 228,833 |
Other | 35,594 | | 45,941 | | - | | 81,535 |
TOTAL | 9,596,104 | | 1,947,275 | | (8,329,462) | | 3,213,917 |
| | | | | | | |
PROPERTY, PLANT, AND EQUIPMENT | | | | | | | |
| | | | | | | |
Electric | 27,176,956 | | 1,987,079 | | (3,008) | | 29,161,027 |
Property under capital lease | 727,565 | | - | | - | | 727,565 |
Natural gas | 86,794 | | - | | - | | 86,794 |
Construction work in progress | 1,291,374 | | 232,711 | | - | | 1,524,085 |
Nuclear fuel under capital lease | 271,615 | | - | | - | | 271,615 |
Nuclear fuel | 101,403 | | 335,243 | | - | | 436,646 |
TOTAL PROPERTY, PLANT AND EQUIPMENT | 29,655,707 | | 2,555,033 | | (3,008) | | 32,207,732 |
Less - accumulated depreciation and amortization | 12,730,545 | | 280,142 | | - | | 13,010,687 |
PROPERTY, PLANT AND EQUIPMENT - NET | 16,925,162 | | 2,274,891 | | (3,008) | | 19,197,045 |
| | | | | | | |
DEFERRED DEBITS AND OTHER ASSETS | | | | | | | |
| | | | | | | |
Regulatory assets: | | | | | | | |
SFAS 109 regulatory asset - net | 735,221 | | - | | - | | 735,221 |
Other regulatory assets | 2,133,724 | | - | | - | | 2,133,724 |
Deferred fuel costs | 120,489 | | - | | - | | 120,489 |
Long-term receivables | 25,572 | | - | | - | | 25,572 |
Goodwill | 374,099 | | 3,073 | | - | | 377,172 |
Other | 841,068 | | 801,587 | | (650,820) | | 991,835 |
TOTAL | 4,230,173 | | 804,660 | | (650,820) | | 4,384,013 |
| | | | | | | |
TOTAL ASSETS | $ 34,644,272 | | $ 7,011,008 | | $ (10,804,011) | | $ 30,851,269 |
| | | | | | | |
*Totals may not foot due to rounding. | | | | | | | |
|
|
|
Entergy Corporation |
|
Consolidating Balance Sheet |
December 31, 2005 |
(Dollars in thousands) |
(Unaudited) |
| |
| U.S. Utilities/ Parent & Other | | Competitive Businesses | | Eliminations | | Consolidated |
LIABILITIES AND SHAREHOLDERS' EQUITY | | | | | | | |
| | | | | | | |
CURRENT LIABILITIES | | | | | | | |
| | | | | | | |
Currently maturing long-term debt | $ 22,989 | | $ 80,528 | | $ - | | $ 103,517 |
Notes payable: | | | | | | | |
Associated companies | 926,271 | | 530,880 | | (1,457,151) | | - |
Other | 40,041 | | - | | - | | 40,041 |
Account payable: | | | | | | | |
Associated companies | 77,793 | | 23,393 | | (101,186) | | - |
Other | 1,494,385 | | 161,402 | | - | | 1,655,787 |
Customer deposits | 222,044 | | 162 | | - | | 222,206 |
Taxes accrued | 316,659 | | (128,500) | | - | | 188,159 |
Accumulated deferred income taxes | 143,409 | | - | | - | | 143,409 |
Nuclear refueling outage costs | 15,548 | | - | | - | | 15,548 |
Interest accrued | 153,269 | | 1,586 | | - | | 154,855 |
Obligations under capital leases | 130,882 | | - | | - | | 130,882 |
Other | 66,367 | | 407,143 | | - | | 473,510 |
TOTAL | 3,609,657 | | 1,076,594 | | (1,558,337) | | 3,127,914 |
| | | | | | | |
NON-CURRENT LIABILITIES | | | | | | | |
| | | | | | | |
Accumulated deferred income taxes and taxes accrued | 5,245,208 | | 34,020 | | - | | 5,279,228 |
Accumulated deferred investment tax credits | 376,550 | | - | | - | | 376,550 |
Obligations under capital leases | 175,005 | | - | | - | | 175,005 |
Other regulatory liabilities | 408,667 | | - | | - | | 408,667 |
Decommissioning and retirement cost liabilities | 1,161,830 | | 762,141 | | - | | 1,923,971 |
Transition to competition | 79,101 | | - | | - | | 79,101 |
Regulatory reserves | 18,624 | | - | | - | | 18,624 |
Accumulated provisions | 350,265 | | 205,763 | | - | | 556,028 |
Long-term debt | 8,791,811 | | 349,073 | | (316,391) | | 8,824,493 |
Preferred stock with sinking fund | 13,950 | | - | | - | | 13,950 |
Other | 1,729,077 | | 749,961 | | (600,021) | | 1,879,017 |
TOTAL | 18,350,088 | | 2,100,958 | | (916,412) | | 19,534,634 |
| | | | | | | |
Preferred stock without sinking fund | 411,321 | | 426,590 | | (391,937) | | 445,974 |
| | | | | | | |
SHAREHOLDERS' EQUITY | | | | | | | |
| | | | | | | |
Common stock, $.01 par value, authorized 500,000,000 shares; | | | | | | | |
issued 248,174,087 shares in 2005 | 2,205,192 | | 1,091,856 | | (3,294,566) | | 2,482 |
Paid-in capital | 6,653,879 | | 1,565,320 | | (3,401,562) | | 4,817,637 |
Retained earnings | 5,712,395 | | 1,121,151 | | (1,405,139) | | 5,428,407 |
Accumulated other comprehensive income (loss) | (16,300) | | (328,145) | | 626 | | (343,819) |
Less - treasury stock, at cost (40,644,602 shares in 2005) | 2,281,960 | | 43,316 | | (163,316) | | 2,161,960 |
TOTAL | 12,273,206 | | 3,406,866 | | (7,937,325) | | 7,742,747 |
| | | | | | | |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 34,644,272 | | $ 7,011,008 | | $ (10,804,011) | | $ 30,851,269 |
| | | | | | | |
*Totals may not foot due to rounding. | | | | | | | |
| | | | | | | |
| | | | | | | |
Entergy Corporation |
|
Consolidating Balance Sheet |
September 30, 2006 vs December 31, 2005 |
(Dollars in thousands) |
(Unaudited) |
| |
| U.S. Utilities/ Parent & Other | | Competitive Businesses | | Eliminations | | Consolidated |
ASSETS | | | | | | | |
| | | | | | | |
CURRENT ASSETS | | | | | | | |
| | | | | | | |
Cash and cash equivalents: | | | | | | | |
Cash | $ (74,924) | | $ (10,428) | | $ - | | $ (85,352) |
Temporary cash investments - at cost, | | | | | | | |
which approximates market | 39,739 | | 207,821 | | - | | 247,560 |
Total cash and cash equivalents | (35,185) | | 197,393 | | - | | 162,208 |
Notes receivable - Entergy New Orleans DIP loan | (58,159) | | - | | - | | (58,159) |
Notes receivable | (128,780) | | (67,160) | | 193,840 | | (2,100) |
Accounts receivable: | | | | | | | |
Customer | 2,266 | | - | | - | | 2,266 |
Allowance for doubtful accounts | 9,082 | | 2,170 | | - | | 11,252 |
Associated companies | (60,465) | | 46,086 | | 14,379 | | - |
Other | (31,331) | | 10,538 | | - | | (20,793) |
Accrued unbilled revenues | (184,958) | | - | | - | | (184,958) |
Total receivables | (265,406) | | 58,794 | | 14,379 | | (192,233) |
Deferred fuel costs | (470,205) | | - | | - | | (470,205) |
Fuel inventory - at average cost | (4,387) | | 735 | | - | | (3,652) |
Materials and supplies - at average cost | 30,345 | | (46,407) | | - | | (16,062) |
Deferred nuclear refueling outage costs | (34,656) | | (18,597) | | - | | (53,253) |
Prepayments and other | (244,838) | | 8,334 | | - | | (236,504) |
TOTAL | (1,211,271) | | 133,092 | | 208,219 | | (869,960) |
| | | | | | | |
OTHER PROPERTY AND INVESTMENTS | | | | | | | |
| | | | | | | |
Investment in affiliates - at equity | (388,377) | | (87,018) | | 501,618 | | 26,223 |
Decommissioning trust funds | 81,965 | | 60,041 | | - | | 142,006 |
Non-utility property - at cost (less accumulated depreciation) | (16,611) | | 957 | | - | | (15,654) |
Other | (2,211) | | (38,694) | | - | | (40,905) |
TOTAL | (325,234) | | (64,714) | | 501,618 | | 111,670 |
| | | | | | | |
PROPERTY, PLANT, AND EQUIPMENT | | | | | | | |
| | | | | | | |
Electric | 966,025 | | 302,404 | | 502 | | 1,268,931 |
Property under capital lease | (3,951) | | - | | - | | (3,951) |
Natural gas | 2,891 | | - | | - | | 2,891 |
Construction work in progress | (599,585) | | (109,234) | | - | | (708,819) |
Nuclear fuel under capital lease | (23,109) | | - | | - | | (23,109) |
Nuclear fuel | 67,373 | | (41,681) | | - | | 25,692 |
TOTAL PROPERTY, PLANT AND EQUIPMENT | 409,644 | | 151,489 | | 502 | | 561,635 |
Less - accumulated depreciation and amortization | 353,242 | | 49,967 | | - | | 403,209 |
PROPERTY, PLANT AND EQUIPMENT - NET | 56,402 | | 101,522 | | 502 | | 158,426 |
| | | | | | | |
DEFERRED DEBITS AND OTHER ASSETS | | | | | | | |
| | | | | | | |
Regulatory assets: | | | | | | | |
SFAS 109 regulatory asset - net | 41,821 | | - | | - | | 41,821 |
Other regulatory assets | 242,910 | | - | | - | | 242,910 |
Deferred fuel costs | 47,633 | | - | | - | | 47,633 |
Long-term receivables | (2,583) | | - | | - | | (2,583) |
Goodwill | - | | - | | - | | - |
Other | (53,889) | | (16,493) | | 46,850 | | (23,532) |
TOTAL | 275,892 | | (16,493) | | 46,850 | | 306,249 |
| | | | | | | |
TOTAL ASSETS | $ (1,204,211) | | $ 153,407 | | $ 757,189 | | $ (293,615) |
| | | | | | | |
*Totals may not foot due to rounding. | | | | | | | |
|
|
|
Entergy Corporation |
|
Consolidating Balance Sheet |
September 30, 2006 vs December 31, 2005 |
(Dollars in thousands) |
(Unaudited) |
| |
| U.S. Utilities/ Parent & Other | | Competitive Businesses | | Eliminations | | Consolidated |
LIABILITIES AND SHAREHOLDERS' EQUITY | | | | | | | |
| | | | | | | |
CURRENT LIABILITIES | | | | | | | |
| | | | | | | |
Currently maturing long-term debt | $ 346 | | $ 4,328 | | $ - | | $ 4,674 |
Notes payable: | | | | | | | |
Associated companies | 96,657 | | (30,497) | | (66,160) | | - |
Other | (40,000) | | - | | - | | (40,000) |
Account payable: | | | | | | | |
Associated companies | (14,075) | | (2,035) | | 16,110 | | - |
Other | (743,975) | | (42,627) | | - | | (786,602) |
Customer deposits | 17,568 | | (162) | | - | | 17,406 |
Taxes accrued | (96,183) | | 162,229 | | - | | 66,046 |
Accumulated deferred income taxes | (106,604) | | - | | - | | (106,604) |
Nuclear refueling outage costs | (10,757) | | - | | - | | (10,757) |
Interest accrued | (6,700) | | 9,890 | | - | | 3,190 |
Obligations under capital leases | 6,062 | | - | | - | | 6,062 |
Other | 43,520 | | (187,905) | | - | | (144,385) |
TOTAL | (854,141) | | (86,779) | | (50,050) | | (990,970) |
| | | | | | | |
NON-CURRENT LIABILITIES | | | | | | | |
| | | | | | | |
Accumulated deferred income taxes and taxes accrued | 465,333 | | 213,585 | | - | | 678,918 |
Accumulated deferred investment tax credits | (13,500) | | - | | - | | (13,500) |
Obligations under capital leases | 8,830 | | - | | - | | 8,830 |
Other regulatory liabilities | 23,234 | | - | | - | | 23,234 |
Decommissioning and retirement cost liabilities | 65,146 | | 5,068 | | - | | 70,214 |
Transition to competition | (3) | | - | | - | | (3) |
Regulatory reserves | (2,708) | | - | | - | | (2,708) |
Accumulated provisions | 5,835 | | (46,316) | | - | | (40,481) |
Long-term debt | (488,425) | | 32,034 | | 246,012 | | (210,379) |
Preferred stock with sinking fund | (3,450) | | - | | - | | (3,450) |
Other | (201,050) | | (385,884) | | 59,040 | | (527,894) |
TOTAL | (140,758) | | (181,513) | | 305,052 | | (17,219) |
| | | | | | | |
Preferred stock without sinking fund | (100,566) | | (373) | | - | | (100,939) |
| | | | | | | |
SHAREHOLDERS' EQUITY | | | | | | | |
| | | | | | | |
Common stock, $.01 par value, authorized 500,000,000 shares; | | | | | | | |
issued 248,174,087 shares in 2006 and 2005 | - | | (1) | | 1 | | - |
Paid-in capital | (3,664) | | (57,797) | | 62,716 | | 1,255 |
Retained earnings | (151,670) | | 234,579 | | 439,470 | | 522,379 |
Accumulated other comprehensive income (loss) | (3,280) | | 245,291 | | - | | 242,011 |
Less - treasury stock, at cost | (49,868) | | - | | - | | (49,868) |
TOTAL | (108,746) | | 422,072 | | 502,187 | | 815,513 |
| | | | | | | |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ (1,204,211) | | $ 153,407 | | $ 757,189 | | $ (293,615) |
| | | | | | | |
*Totals may not foot due to rounding. | | | | | | | |
Entergy Corporation |
|
Consolidating Income Statement |
Three Months Ended September 30, 2006 |
(Dollars in thousands) |
(Unaudited) |
| U.S. Utilities/ Parent & Other | | Competitive Businesses | | Eliminations | | Consolidated |
|
OPERATING REVENUES | | | | | | | | |
Domestic electric | | $ 2,761,952 | | $ - | | $ (828) | | $ 2,761,124 |
Natural gas | | 12,495 | | - | | - | | 12,495 |
Competitive businesses | | 11,544 | | 475,457 | | (5,902) | | 481,100 |
Total | | 2,785,991 | | 475,457 | | (6,730) | | 3,254,719 |
| | | | | | | | |
OPERATING EXPENSES | | | | | | | | |
Operating and Maintenance: | | | | | | | | |
Fuel, fuel related expenses, and gas purchased for resale | | 908,012 | | 79,546 | | - | | 987,558 |
Purchased power | | 588,687 | | 25,374 | | (6,284) | | 607,777 |
Nuclear refueling outage expenses | | 20,022 | | 23,023 | | - | | 43,045 |
Other operation and maintenance | | 408,544 | | 183,006 | | (559) | | 590,992 |
Decommissioning | | 20,909 | | 16,024 | | - | | 36,933 |
Taxes other than income taxes | | 119,040 | | 14,487 | | - | | 133,527 |
Depreciation and amortization | | 211,106 | | 20,935 | | - | | 232,042 |
Other regulatory charges (credits) - net | | (21,563) | | - | | - | | (21,563) |
Total | | 2,254,757 | | 362,395 | | (6,843) | | 2,610,311 |
| | | | | | | | |
OPERATING INCOME | | 531,234 | | 113,062 | | 113 | | 644,408 |
| | | | | | | | |
OTHER INCOME (DEDUCTIONS) | | | | | | | | |
Allowance for equity funds used during construction | | 7,721 | | - | | - | | 7,721 |
Interest and dividend income | | 26,161 | | 32,294 | | (20,735) | | 37,720 |
Equity in earnings (loss) of unconsolidated equity affiliates | | 8,127 | | 6,645 | | - | | 14,772 |
Miscellaneous - net | | 7,223 | | 23,855 | | (114) | | 30,964 |
Total | | 49,232 | | 62,794 | | (20,849) | | 91,177 |
| | | | | | | | |
INTEREST AND OTHER CHARGES | | | | | | | | |
Interest on long-term debt | | 123,454 | | 2,453 | | - | | 125,907 |
Other interest - net | | 20,636 | | 15,122 | | (20,722) | | 15,035 |
Allowance for borrowed funds used during construction | | (4,538) | | - | | - | | (4,538) |
Total | | 139,552 | | 17,575 | | (20,722) | | 136,404 |
| | | | | | | | |
INCOME FROM CONTINUING OPERATIONS | | | | | | | | |
BEFORE INCOME TAXES | | 440,914 | | 158,281 | | (14) | | 599,181 |
| | | | | | | | |
Income taxes | | 148,048 | | 54,389 | | - | | 202,437 |
| | | | | | | | |
INCOME FROM CONTINUING OPERATIONS | | 292,866 | | 103,892 | | (14) | | 396,744 |
| | | | | | | | |
LOSS FROM DISCONTINUED OPERATIONS (net of taxes of ($563)) | | (1,050) | | - | | - | | (1,050) |
| | | | | | | | |
CONSOLIDATED NET INCOME | | 291,816 | | 103,892 | | (14) | | 395,694 |
| | | | | | | | |
Preferred dividend requirements and other | | 5,956 | | 869 | | (14) | | 6,811 |
| | | | | | | | |
EARNINGS APPLICABLE TO COMMON STOCK | | $ 285,860 | | $ 103,023 | | $ - | | $ 388,883 |
| | | | | | | | |
| | | | | | | | |
EARNINGS PER AVERAGE COMMON SHARE (from continuing operations): | | | | | | | | |
BASIC | | $1.38 | | $0.49 | | | | $1.87 |
DILUTED | | $1.35 | | $0.48 | | | | $1.83 |
EARNINGS PER AVERAGE COMMON SHARE (from discontinued operations): | | | | | | | | |
BASIC | | - | | - | | | | - |
DILUTED | | - | | - | | | | - |
EARNINGS PER AVERAGE COMMON SHARE: | | | | | | | | |
BASIC | | $1.38 | | $0.49 | | | | $1.87 |
DILUTED | | $1.35 | | $0.48 | | | | $1.83 |
| | | | | | | | |
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING: | | | | | | | | |
BASIC | | | | | | | | 208,382,863 |
DILUTED | | | | | | | | 212,404,770 |
| | | | | | | | |
*Totals may not foot due to rounding. | | | | | | | | |
| | | | | | | | |
Entergy Corporation |
|
Consolidating Income Statement |
Three Months Ended September 30, 2005 |
(Dollars in thousands) |
(Unaudited) |
| U.S. Utilities/ Parent & Other | | Competitive Businesses | | Eliminations | | Consolidated |
|
OPERATING REVENUES | | | | | | | | |
Domestic electric | | $ 2,490,655 | | $ - | | $ (390) | | $ 2,490,265 |
Natural gas | | 12,343 | | - | | - | | 12,343 |
Competitive businesses | | 11,385 | | 405,995 | | (21,730) | | 395,650 |
Total | | 2,514,383 | | 405,995 | | (22,120) | | 2,898,258 |
| | | | | | | | |
OPERATING EXPENSES | | | | | | | | |
Operating and Maintenance: | | | | | | | | |
Fuel, fuel related expenses, and gas purchased for resale | | 545,798 | | 61,509 | | - | | 607,307 |
Purchased power | | 760,442 | | 9,876 | | (21,766) | | 748,552 |
Nuclear refueling outage expenses | | 19,327 | | 22,105 | | - | | 41,432 |
Other operation and maintenance | | 320,715 | | 170,236 | | (468) | | 490,483 |
Decommissioning | | 20,235 | | 14,821 | | - | | 35,056 |
Taxes other than income taxes | | 83,782 | | 14,935 | | - | | 98,717 |
Depreciation and amortization | | 202,676 | | 14,539 | | - | | 217,215 |
Other regulatory charges (credits) - net | | 5,156 | | - | | - | | 5,156 |
Total | | 1,958,131 | | 308,021 | | (22,234) | | 2,243,918 |
| | | | | | | | |
OPERATING INCOME | | 556,252 | | 97,974 | | 114 | | 654,340 |
| | | | | | | | |
OTHER INCOME (DEDUCTIONS) | | | | | | | | |
Allowance for equity funds used during construction | | 5,894 | | - | | - | | 5,894 |
Interest and dividend income | | 37,544 | | 26,457 | | (13,437) | | 50,564 |
Equity in earnings (loss) of unconsolidated equity affiliates | | 7,769 | | 650 | | - | | 8,419 |
Miscellaneous - net | | (1,534) | | (8,729) | | (114) | | (10,377) |
Total | | 49,673 | | 18,378 | | (13,551) | | 54,500 |
| | | | | | | | |
INTEREST AND OTHER CHARGES | | | | | | | | |
Interest on long-term debt | | 107,459 | | 3,642 | | - | | 111,101 |
Other interest - net | | 22,493 | | 9,609 | | (13,423) | | 18,679 |
Allowance for borrowed funds used during construction | | (6,516) | | - | | - | | (6,516) |
Total | | 123,436 | | 13,251 | | (13,423) | | 123,264 |
| | | | | | | | |
INCOME FROM CONTINUING OPERATIONS | | | | | | | | |
BEFORE INCOME TAXES | | 482,489 | | 103,101 | | (14) | | 585,576 |
| | | | | | | | |
Income taxes | | 184,038 | | 38,042 | | - | | 222,080 |
| | | | | | | | |
INCOME FROM CONTINUING OPERATIONS | | 298,451 | | 65,059 | | (14) | | 363,496 |
| | | | | | | | |
LOSS FROM DISCONTINUED OPERATIONS (net of taxes of ($3,823)) | | (7,108) | | - | | - | | (7,108) |
| | | | | | | | |
CONSOLIDATED NET INCOME | | 291,343 | | 65,059 | | (14) | | 356,388 |
| | | | | | | | |
Preferred dividend requirements and other | | 5,581 | | 869 | | (14) | | 6,436 |
| | | | | | | | |
EARNINGS APPLICABLE TO COMMON STOCK | | $ 285,762 | | $ 64,190 | | $ - | | $ 349,952 |
| | | | | | | | |
EARNINGS PER AVERAGE COMMON SHARE (from continuing operations): | | | | | | | | |
BASIC | | $1.40 | | $0.31 | | | | $1.71 |
DILUTED | | $1.38 | | $0.30 | | | | $1.68 |
LOSS PER AVERAGE COMMON SHARE (from discontinued operations): | | | | | | | | |
BASIC | | ($0.03) | | - | | | | ($0.03) |
DILUTED | | ($0.03) | | - | | | | ($0.03) |
EARNINGS PER AVERAGE COMMON SHARE: | | | | | | | | |
BASIC | | $1.37 | | $0.31 | | | | $1.68 |
DILUTED | | $1.35 | | $0.30 | | | | $1.65 |
| | | | | | | | |
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING: | | | | | | | | |
BASIC | | | | | | | | 207,906,762 |
DILUTED | | | | | | | | 212,335,619 |
| | | | | | | | |
*Totals may not foot due to rounding. | | | | | | | | |
Entergy Corporation |
|
Consolidating Income Statement |
Three Months Ended September 30, 2006 vs. 2005 |
(Dollars in thousands) |
(Unaudited) |
| |
| U.S. Utilities/ Parent & Other | | Competitive Businesses | | Eliminations | | Consolidated |
|
OPERATING REVENUES | | | | | | | | |
Domestic electric | | $ 271,297 | | $ - | | $ (438) | | $ 270,859 |
Natural gas | | 152 | | - | | - | | 152 |
Competitive businesses | | 159 | | 69,462 | | 15,828 | | 85,450 |
Total | | 271,608 | | 69,462 | | 15,390 | | 356,461 |
| | | | | | | | |
OPERATING EXPENSES | | | | | | | | |
Operating and Maintenance: | | | | | | | | |
Fuel, fuel related expenses, and gas purchased for resale | | 362,214 | | 18,037 | | - | | 380,251 |
Purchased power | | (171,755) | | 15,498 | | 15,482 | | (140,775) |
Nuclear refueling outage expenses | | 695 | | 918 | | - | | 1,613 |
Other operation and maintenance | | 87,829 | | 12,770 | | (91) | | 100,509 |
Decommissioning | | 674 | | 1,203 | | - | | 1,877 |
Taxes other than income taxes | | 35,258 | | (448) | | - | | 34,810 |
Depreciation and amortization | | 8,430 | | 6,396 | | - | | 14,827 |
Other regulatory charges (credits )- net | | (26,719) | | - | | - | | (26,719) |
Total | | 296,626 | | 54,374 | | 15,391 | | 366,393 |
| | | | | | | | |
OPERATING INCOME | | (25,018) | | 15,088 | | (1) | | (9,932) |
| | | | | | | | |
OTHER INCOME (DEDUCTIONS) | | | | | | | | |
Allowance for equity funds used during construction | | 1,827 | | - | | - | | 1,827 |
Interest and dividend income | | (11,383) | | 5,837 | | (7,298) | | (12,844) |
Equity in earnings (loss) of unconsolidated equity affiliates | | 358 | | 5,995 | | - | | 6,353 |
Miscellaneous - net | | 8,757 | | 32,584 | | - | | 41,341 |
Total | | (441) | | 44,416 | | (7,298) | | 36,677 |
| | | | | | | | |
INTEREST AND OTHER CHARGES | | | | | | | | |
Interest on long-term debt | | 15,995 | | (1,189) | | - | | 14,806 |
Other interest - net | | (1,857) | | 5,513 | | (7,299) | | (3,644) |
Allowance for borrowed funds used during construction | | 1,978 | | - | | - | | 1,978 |
Total | | 16,116 | | 4,324 | | (7,299) | | 13,140 |
| | | | | | | | |
INCOME FROM CONTINUING OPERATIONS | | | | | | | | |
BEFORE INCOME TAXES | | (41,575) | | 55,180 | | - | | 13,605 |
| | | | | | | | |
Income taxes | | (35,990) | | 16,347 | | - | | (19,643) |
| | | | | | | | |
INCOME FROM CONTINUING OPERATIONS | | (5,585) | | 38,833 | | - | | 33,248 |
| | | | | | | | |
INCOME FROM DISCONTINUED OPERATIONS (net of taxes) | | 6,058 | | - | | - | | 6,058 |
| | | | | | | | |
CONSOLIDATED NET INCOME | | 473 | | 38,833 | | - | | 39,306 |
| | | | | | | | |
Preferred dividend requirements and other | | 375 | | - | | - | | 375 |
| | | | | | | | |
EARNINGS APPLICABLE TO COMMON STOCK | | $ 98 | | $ 38,833 | | $ - | | $ 38,931 |
| | | | | | | | |
EARNINGS PER AVERAGE COMMON SHARE (from continuing operations): | | | | | | | | |
BASIC | | ($0.02) | | $0.18 | | | | $0.16 |
DILUTED | | ($0.03) | | $0.18 | | | | $0.15 |
EARNINGS PER AVERAGE COMMON SHARE (from discontinued operations): | | | | | | | | |
BASIC | | $0.03 | | - | | | | $0.03 |
DILUTED | | $0.03 | | - | | | | $0.03 |
EARNINGS PER AVERAGE COMMON SHARE: | | | | | | | | |
BASIC | | $0.01 | | $0.18 | | | | $0.19 |
DILUTED | | - | | $0.18 | | | | $0.18 |
| | | | | | | | |
| | | | | | | | |
*Totals may not foot due to rounding. | | | | | | | | |
| | | | | | | | |
Entergy Corporation |
|
Consolidating Income Statement |
Nine Months Ended September 30, 2006 |
(Dollars in thousands) |
(Unaudited) |
| U.S. Utilities/ Parent & Other | | Competitive Businesses | | Eliminations | | Consolidated |
|
OPERATING REVENUES | | | | | | | | |
Domestic electric | | $ 7,033,840 | | $ - | | $ (2,069) | | $ 7,031,771 |
Natural gas | | 63,522 | | - | | - | | 63,522 |
Competitive businesses | | 31,388 | | 1,355,458 | | (30,885) | | 1,355,961 |
Total | | 7,128,750 | | 1,355,458 | | (32,954) | | 8,451,254 |
| | | | | | | | |
OPERATING EXPENSES | | | | | | | | |
Operating and Maintenance: | | | | | | | | |
Fuel, fuel related expenses, and gas purchased for resale | | 2,289,085 | | 200,262 | | - | | 2,489,347 |
Purchased power | | 1,633,461 | | 44,618 | | (31,524) | | 1,646,555 |
Nuclear refueling outage expenses | | 59,880 | | 67,704 | | - | | 127,584 |
Other operation and maintenance | | 1,154,030 | | 541,401 | | (1,772) | | 1,693,657 |
Decommissioning | | 61,626 | | 47,161 | | - | | 108,787 |
Taxes other than income taxes | | 282,570 | | 45,425 | | - | | 327,995 |
Depreciation and amortization | | 596,843 | | 58,531 | | - | | 655,374 |
Other regulatory charges (credits) - net | | (124,509) | | - | | - | | (124,509) |
Total | | 5,952,986 | | 1,005,102 | | (33,296) | | 6,924,790 |
| | | | | | | | |
OPERATING INCOME | | 1,175,764 | | 350,356 | | 342 | | 1,526,464 |
| | | | | | | | |
OTHER INCOME (DEDUCTIONS) | | | | | | | | |
Allowance for equity funds used during construction | | 32,088 | | - | | - | | 32,088 |
Interest and dividend income | | 94,862 | | 88,221 | | (66,393) | | 116,689 |
Equity in earnings (loss) of unconsolidated equity affiliates | | 26,014 | | 829 | | - | | 26,843 |
Miscellaneous - net | | (2,450) | | 19,585 | | (342) | | 16,793 |
Total | | 150,514 | | 108,635 | | (66,735) | | 192,413 |
| | | | | | | | |
INTEREST AND OTHER CHARGES | | | | | | | | |
Interest on long-term debt | | 362,005 | | 7,053 | | - | | 369,058 |
Other interest - net | | 65,695 | | 48,188 | | (66,352) | | 47,532 |
Allowance for borrowed funds used during construction | | (18,989) | | - | | - | | (18,989) |
Total | | 408,711 | | 55,241 | | (66,352) | | 397,601 |
| | | | | | | | |
INCOME FROM CONTINUING OPERATIONS | | | | | | | | |
BEFORE INCOME TAXES | | 917,567 | | 403,750 | | (41) | | 1,321,276 |
| | | | | | | | |
Income taxes | | 295,148 | | 149,022 | | - | | 444,170 |
| | | | | | | | |
INCOME FROM CONTINUING OPERATIONS | | 622,419 | | 254,728 | | (41) | | 877,106 |
| | | | | | | | |
INCOME FROM DISCONTINUED OPERATIONS (net of taxes of $5,423) | | 9,830 | | - | | - | | 9,830 |
| | | | | | | | |
CONSOLIDATED NET INCOME | | 632,249 | | 254,728 | | (41) | | 886,936 |
| | | | | | | | |
Preferred dividend requirements and other | | 20,057 | | 2,606 | | (41) | | 22,622 |
| | | | | | | | |
EARNINGS APPLICABLE TO COMMON STOCK | | $ 612,192 | | $ 252,122 | | $ - | | $ 864,314 |
| | | | | | | | |
| | | | | | | | |
EARNINGS PER AVERAGE COMMON SHARE (from continuing operations): | | | | | | | | |
BASIC | | $2.90 | | $1.21 | | | | $4.11 |
DILUTED | | $2.84 | | $1.19 | | | | $4.03 |
EARNINGS PER AVERAGE COMMON SHARE (from discontinued operations): | | | | | | | | |
BASIC | | $0.05 | | - | | | | $0.05 |
DILUTED | | $0.05 | | - | | | | $0.05 |
EARNINGS PER AVERAGE COMMON SHARE: | | | | | | | | |
BASIC | | $2.95 | | $1.21 | | | | $4.16 |
DILUTED | | $2.89 | | $1.19 | | | | $4.08 |
| | | | | | | | |
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING: | | | | | | | | |
BASIC | | | | | | | | 208,034,946 |
DILUTED | | | | | | | | 211,782,858 |
| | | | | | | | |
*Totals may not foot due to rounding. | | | | | | | | |
Entergy Corporation |
|
Consolidating Income Statement |
Nine Months Ended September 30, 2005 |
(Dollars in thousands) |
(Unaudited) |
| U.S. Utilities/ Parent & Other | | Competitive Businesses | | Eliminations | | Consolidated |
|
OPERATING REVENUES | | | | | | | | |
Domestic electric | | $ 6,238,134 | | $ - | | $ (1,185) | | $ 6,236,949 |
Natural gas | | 51,729 | | - | | - | | 51,729 |
Competitive businesses | | 34,661 | | 1,187,420 | | (56,928) | | 1,165,153 |
Total | | 6,324,524 | | 1,187,420 | | (58,113) | | 7,453,831 |
| | | | | | | | |
OPERATING EXPENSES | | | | | | | | |
Operating and Maintenance: | | | | | | | | |
Fuel, fuel related expenses, and gas purchased for resale | | 1,354,748 | | 170,904 | | - | | 1,525,652 |
Purchased power | | 1,815,383 | | 30,635 | | (57,282) | | 1,788,736 |
Nuclear refueling outage expenses | | 54,099 | | 66,294 | | - | | 120,393 |
Other operation and maintenance | | 1,064,060 | | 489,971 | | (1,173) | | 1,552,858 |
Decommissioning | | 64,477 | | 44,102 | | - | | 108,579 |
Taxes other than income taxes | | 242,330 | | 42,019 | | - | | 284,349 |
Depreciation and amortization | | 586,390 | | 50,766 | | - | | 637,156 |
Other regulatory charges (credits) - net | | (44,814) | | - | | - | | (44,814) |
Total | | 5,136,673 | | 894,691 | | (58,455) | | 5,972,909 |
| | | | | | | | |
OPERATING INCOME | | 1,187,851 | | 292,729 | | 342 | | 1,480,922 |
| | | | | | | | |
OTHER INCOME (DEDUCTIONS) | | | | | | | | |
Allowance for equity funds used during construction | | 29,414 | | - | | - | | 29,414 |
Interest and dividend income | | 91,462 | | 70,927 | | (46,768) | | 115,621 |
Equity in earnings (loss) of unconsolidated equity affiliates | | 24,153 | | (2,141) | | - | | 22,012 |
Miscellaneous - net | | (13,558) | | 18,499 | | (342) | | 4,599 |
Total | | 131,471 | | 87,285 | | (47,110) | | 171,646 |
| | | | | | | | |
INTEREST AND OTHER CHARGES | | | | | | | | |
Interest on long-term debt | | 313,187 | | 10,962 | | - | | 324,149 |
Other interest - net | | 50,907 | | 39,256 | | (46,727) | | 43,436 |
Allowance for borrowed funds used during construction | | (19,790) | | - | | - | | (19,790) |
Total | | 344,304 | | 50,218 | | (46,727) | | 347,795 |
| | | | | | | | |
INCOME FROM CONTINUING OPERATIONS | | | | | | | | |
BEFORE INCOME TAXES | | 975,018 | | 329,796 | | (41) | | 1,304,773 |
| | | | | | | | |
Income taxes | | 342,773 | | 123,399 | | - | | 466,172 |
| | | | | | | | |
INCOME FROM CONTINUING OPERATIONS | | 632,245 | | 206,397 | | (41) | | 838,601 |
| | | | | | | | |
LOSS FROM DISCONTINUED OPERATIONS (net of taxes of ($6,057)) | | (11,286) | | - | | - | | (11,286) |
| | | | | | | | |
CONSOLIDATED NET INCOME | | 620,959 | | 206,397 | | (41) | | 827,315 |
| | | | | | | | |
Preferred dividend requirements and other | | 16,652 | | 2,606 | | (41) | | 19,217 |
| | | | | | | | |
EARNINGS APPLICABLE TO COMMON STOCK | | $ 604,307 | | $ 203,791 | | $ - | | $ 808,098 |
| | | | | | | | |
| | | | | | | | |
EARNINGS PER AVERAGE COMMON SHARE (from continuing operations): | | | | | | | | |
BASIC | | $2.91 | | $0.97 | | | | $3.88 |
DILUTED | | $2.86 | | $0.94 | | | | $3.80 |
LOSS PER AVERAGE COMMON SHARE (from discontinued operations): | | | | | | | | |
BASIC | | ($0.05) | | - | | | | ($0.05) |
DILUTED | | ($0.05) | | - | | | | ($0.05) |
EARNINGS PER AVERAGE COMMON SHARE: | | | | | | | | |
BASIC | | $2.86 | | $0.97 | | | | $3.83 |
DILUTED | | $2.81 | | $0.94 | | | | $3.75 |
| | | | | | | | |
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING: | | | | | | | | |
BASIC | | | | | | | | 211,033,629 |
DILUTED | | | | | | | | 215,540,185 |
| | | | | | | | |
*Totals may not foot due to rounding. | | | | | | | | |
| | | | | | | | |
Entergy Corporation |
|
Consolidating Income Statement |
Nine Months Ended September 30, 2006 vs. 2005 |
(Dollars in thousands) |
(Unaudited) |
| |
| U.S. Utilities/ Parent & Other | | Competitive Businesses | | Eliminations | | Consolidated |
|
OPERATING REVENUES | | | | | | | | |
Domestic electric | | $ 795,706 | | $ - | | $ (884) | | $ 794,822 |
Natural gas | | 11,793 | | - | | - | | 11,793 |
Competitive businesses | | (3,273) | | 168,038 | | 26,043 | | 190,808 |
Total | | 804,226 | | 168,038 | | 25,159 | | 997,423 |
| | | | | | | | |
OPERATING EXPENSES | | | | | | | | |
Operating and Maintenance: | | | | | | | | |
Fuel, fuel related expenses, and gas purchased for resale | | 934,337 | | 29,358 | | - | | 963,695 |
Purchased power | | (181,922) | | 13,983 | | 25,758 | | (142,181) |
Nuclear refueling outage expenses | | 5,781 | | 1,410 | | - | | 7,191 |
Other operation and maintenance | | 89,970 | | 51,430 | | (599) | | 140,799 |
Decommissioning | | (2,851) | | 3,059 | | - | | 208 |
Taxes other than income taxes | | 40,240 | | 3,406 | | - | | 43,646 |
Depreciation and amortization | | 10,453 | | 7,765 | | - | | 18,218 |
Other regulatory charges (credits )- net | | (79,695) | | - | | - | | (79,695) |
Total | | 816,313 | | 110,411 | | 25,159 | | 951,881 |
| | | | | | | | |
OPERATING INCOME | | (12,087) | | 57,627 | | - | | 45,542 |
| | | | | | | | |
OTHER INCOME (DEDUCTIONS) | | | | | | | | |
Allowance for equity funds used during construction | | 2,674 | | - | | - | | 2,674 |
Interest and dividend income | | 3,400 | | 17,294 | | (19,625) | | 1,068 |
Equity in earnings (loss) of unconsolidated equity affiliates | | 1,861 | | 2,970 | | - | | 4,831 |
Miscellaneous - net | | 11,108 | | 1,086 | | - | | 12,194 |
Total | | 19,043 | | 21,350 | | (19,625) | | 20,767 |
| | | | | | | | |
INTEREST AND OTHER CHARGES | | | | | | | | |
Interest on long-term debt | | 48,818 | | (3,909) | | - | | 44,909 |
Other interest - net | | 14,788 | | 8,932 | | (19,625) | | 4,096 |
Allowance for borrowed funds used during construction | | 801 | | - | | - | | 801 |
Total | | 64,407 | | 5,023 | | (19,625) | | 49,806 |
| | | | | | | | |
INCOME FROM CONTINUING OPERATIONS | | | | | | | | |
BEFORE INCOME TAXES | | (57,451) | | 73,954 | | - | | 16,503 |
| | | | | | | | |
Income taxes | | (47,625) | | 25,623 | | - | | (22,002) |
| | | | | | | | |
INCOME FROM CONTINUING OPERATIONS | | (9,826) | | 48,331 | | - | | 38,505 |
| | | | | | | | |
INCOME FROM DISCONTINUED OPERATIONS (net of taxes) | | 21,116 | | - | | - | | 21,116 |
| | | | | | | | |
CONSOLIDATED NET INCOME | | 11,290 | | 48,331 | | - | | 59,621 |
| | | | | | | | |
Preferred dividend requirements and other | | 3,405 | | - | | - | | 3,405 |
| | | | | | | | |
EARNINGS APPLICABLE TO COMMON STOCK | | $ 7,885 | | $ 48,331 | | $ - | | $ 56,216 |
| | | | | | | | |
EARNINGS PER AVERAGE COMMON SHARE (from continuing operations): | | | | | | | | |
BASIC | | ($0.01) | | $0.24 | | | | $0.23 |
DILUTED | | ($0.02) | | $0.25 | | | | $0.23 |
EARNINGS PER AVERAGE COMMON SHARE (from discontinued operations): | | | | | | | | |
BASIC | | $0.10 | | - | | | | $0.10 |
DILUTED | | $0.10 | | - | | | | $0.10 |
EARNINGS PER AVERAGE COMMON SHARE: | | | | | | | | |
BASIC | | $0.09 | | $0.24 | | | | $0.33 |
DILUTED | | $0.08 | | $0.25 | | | | $0.33 |
| | | | | | | | |
| | | | | | | | |
*Totals may not foot due to rounding. | | | | | | | | |
| | | | | | | | |
Entergy Corporation |
|
Consolidating Income Statement |
Twelve Months Ended September 30, 2006 |
(Dollars in thousands) |
(Unaudited) |
| U.S. Utilities/ Parent & Other | | Competitive Businesses | | Eliminations | | Consolidated |
|
OPERATING REVENUES | | | | | | | | |
Domestic electric | | $ 9,244,987 | | $ - | | $ (3,335) | | $ 9,241,652 |
Natural gas | | 89,452 | | - | | - | | 89,452 |
Competitive businesses | | 42,730 | | 1,781,319 | | (51,483) | | 1,772,566 |
Total | | 9,377,169 | | 1,781,319 | | (54,818) | | 11,103,670 |
| | | | | | | | |
OPERATING EXPENSES | | | | | | | | |
Operating and Maintenance: | | | | | | | | |
Fuel, fuel related expenses, and gas purchased for resale | | 2,876,224 | | 263,486 | | - | | 3,139,710 |
Purchased power | | 2,377,615 | | 54,076 | | (52,676) | | 2,379,015 |
Nuclear refueling outage expenses | | 79,747 | | 90,098 | | - | | 169,845 |
Provision for turbine commitments, asset impairments | | | | | | | | |
and restructuring charges | | - | | - | | - | | - |
Other operation and maintenance | | 1,548,562 | | 717,088 | | (2,597) | | 2,263,053 |
Decommissioning | | 81,058 | | 62,270 | | - | | 143,328 |
Taxes other than income taxes | | 366,006 | | 60,164 | | - | | 426,170 |
Depreciation and amortization | | 809,687 | | 74,487 | | - | | 884,174 |
Other regulatory charges (credits) - net | | (129,577) | | - | | - | | (129,577) |
Total | | 8,009,322 | | 1,321,669 | | (55,273) | | 9,275,718 |
| | | | | | | | |
OPERATING INCOME | | 1,367,847 | | 459,650 | | 455 | | 1,827,952 |
| | | | | | | | |
OTHER INCOME (DEDUCTIONS) | | | | | | | | |
Allowance for equity funds used during construction | | 48,410 | | - | | - | | 48,410 |
Interest and dividend income | | 133,244 | | 112,813 | | (90,172) | | 155,885 |
Equity in earnings (loss) of unconsolidated equity affiliates | | 12,322 | | (6,507) | | - | | 5,815 |
Miscellaneous - net | | (7,923) | | 34,826 | | (456) | | 26,447 |
Total | | 186,053 | | 141,132 | | (90,628) | | 236,557 |
| | | | | | | | |
INTEREST AND OTHER CHARGES | | | | | | | | |
Interest on long-term debt | | 466,295 | | 9,370 | | - | | 475,665 |
Other interest - net | | 99,005 | | 64,192 | | (90,118) | | 73,079 |
Allowance for borrowed funds used during construction | | (28,574) | | - | | - | | (28,574) |
Total | | 536,726 | | 73,562 | | (90,118) | | 520,170 |
| | | | | | | | |
INCOME FROM CONTINUING OPERATIONS | | | | | | | | |
BEFORE INCOME TAXES | | 1,017,174 | | 527,220 | | (55) | | 1,544,339 |
| | | | | | | | |
Income taxes | | 356,047 | | 181,235 | | - | | 537,282 |
| | | | | | | | |
INCOME FROM CONTINUING OPERATIONS | | 661,127 | | 345,985 | | (55) | | 1,007,057 |
| | | | | | | | |
LOSS FROM DISCONTINUED OPERATIONS (net of taxes of $ (12,571)) | | (23,678) | | - | | - | | (23,678) |
| | | | | | | | |
CONSOLIDATED NET INCOME | | 637,449 | | 345,985 | | (55) | | 983,379 |
| | | | | | | | |
Preferred dividend requirements and other | | 25,412 | | 3,475 | | (55) | | 28,832 |
| | | | | | | | |
EARNINGS APPLICABLE TO COMMON STOCK | | $ 612,037 | | $ 342,510 | | $ - | | $ 954,547 |
| | | | | | | | |
| | | | | | | | |
EARNINGS PER AVERAGE COMMON SHARE (from continuing operations): | | | | | | | | |
BASIC | | $3.06 | | $1.65 | | | | $4.71 |
DILUTED | | $3.00 | | $1.62 | | | | $4.62 |
LOSS PER AVERAGE COMMON SHARE (from discontinued operations): | | | | | | | | |
BASIC | | ($0.12) | | - | | | | ($0.12) |
DILUTED | | ($0.11) | | - | | | | ($0.11) |
EARNINGS PER AVERAGE COMMON SHARE: | | | | | | | | |
BASIC | | $2.94 | | $1.65 | | | | $4.59 |
DILUTED | | $2.89 | | $1.62 | | | | $4.51 |
| | | | | | | | |
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING: | | | | | | | | |
BASIC | | | | | | | | 207,896,380 |
DILUTED | | | | | | | | 211,653,276 |
| | | | | | | | |
*Totals may not foot due to rounding. | | | | | | | | |
| | | | | | | | |
Entergy Corporation |
|
Consolidating Income Statement |
Twelve Months Ended September 30, 2005 |
(Dollars in thousands) |
(Unaudited) |
| |
| U.S. Utilities/ Parent & Other | | Competitive Businesses | | Eliminations | | Consolidated |
|
OPERATING REVENUES | | | | | | | | |
Domestic electric | | $ 8,071,618 | | $ - | | $ (1,635) | | $ 8,069,983 |
Natural gas | | 65,910 | | - | | - | | 65,910 |
Competitive businesses | | 50,047 | | 1,546,317 | | (70,819) | | 1,525,545 |
Total | | 8,187,575 | | 1,546,317 | | (72,454) | | 9,661,438 |
| | | | | | | | |
OPERATING EXPENSES | | | | | | | | |
Operating and Maintenance: | | | | | | | | |
Fuel, fuel related expenses, and gas purchased for resale | | 1,881,964 | | 220,014 | | - | | 2,101,978 |
Purchased power | | 2,217,974 | | 42,586 | | (71,258) | | 2,189,302 |
Nuclear refueling outage expenses | | 72,200 | | 90,181 | | - | | 162,381 |
Provision for turbine commitments, asset impairments | | | | | | | | |
and restructuring charges | | - | | 55,000 | | - | | 55,000 |
Other operation and maintenance | | 1,489,306 | | 619,297 | | (1,669) | | 2,106,934 |
Decommissioning | | 86,352 | | 58,564 | | - | | 144,916 |
Taxes other than income taxes | | 313,239 | | 55,651 | | - | | 368,890 |
Depreciation and amortization | | 800,372 | | 60,917 | | - | | 861,289 |
Other regulatory charges (credits) - net | | (79,618) | | - | | - | | (79,618) |
Total | | 6,781,789 | | 1,202,210 | | (72,927) | | 7,911,072 |
| | | | | | | | |
OPERATING INCOME | | 1,405,786 | | 344,107 | | 473 | | 1,750,366 |
| | | | | | | | |
OTHER INCOME (DEDUCTIONS) | | | | | | | | |
Allowance for equity funds used during construction | | 40,196 | | - | | - | | 40,196 |
Interest and dividend income | | 117,437 | | 94,373 | | (61,634) | | 150,176 |
Equity in earnings (loss) of unconsolidated equity affiliates | | 19,362 | | (48,957) | | - | | (29,595) |
Miscellaneous - net | | (13,267) | | (40,812) | | (473) | | (54,552) |
Total | | 163,728 | | 4,604 | | (62,107) | | 106,225 |
| | | | | | | | |
INTEREST AND OTHER CHARGES | | | | | | | | |
Interest on long-term debt | | 420,115 | | 14,772 | | - | | 434,887 |
Other interest - net | | 65,887 | | 53,707 | | (61,538) | | 58,056 |
Allowance for borrowed funds used during construction | | (26,792) | | - | | - | | (26,792) |
Total | | 459,210 | | 68,479 | | (61,538) | | 466,151 |
| | | | | | | | |
INCOME FROM CONTINUING OPERATIONS | | | | | | | | |
BEFORE INCOME TAXES | | 1,110,304 | | 280,232 | | (96) | | 1,390,440 |
| | | | | | | | |
Income taxes | | 387,975 | | 931 | | - | | 388,906 |
| | | | | | | | |
INCOME FROM CONTINUING OPERATIONS | | 722,329 | | 279,301 | | (96) | | 1,001,534 |
| | | | | | | | |
LOSS FROM DISCONTINUED OPERATIONS (net of taxes of ($6,456)) | | (13,487) | | - | | - | | (13,487) |
| | | | | | | | |
CONSOLIDATED NET INCOME | | 708,842 | | 279,301 | | (96) | | 988,047 |
| | | | | | | | |
Preferred dividend requirements and other | | 22,205 | | 2,903 | | (96) | | 25,012 |
| | | | | | | | |
EARNINGS APPLICABLE TO COMMON STOCK | | $ 686,637 | | $ 276,398 | | $ - | | $ 963,035 |
| | | | | | | | |
EARNINGS PER AVERAGE COMMON SHARE (from continuing operations): | | | | | | | | |
BASIC | | $3.28 | | $1.29 | | | | $4.57 |
DILUTED | | $3.21 | | $1.27 | | | | $4.48 |
LOSS PER AVERAGE COMMON SHARE (from discontinued operations): | | | | | | | | |
BASIC | | ($0.06) | | - | | | | ($0.06) |
DILUTED | | ($0.06) | | - | | | | ($0.06) |
EARNINGS PER AVERAGE COMMON SHARE: | | | | | | | | |
BASIC | | $3.22 | | $1.29 | | | | $4.51 |
DILUTED | | $3.15 | | $1.27 | | | | $4.42 |
| | | | | | | | |
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING: | | | | | | | | |
BASIC | | | | | | | | 213,709,625 |
DILUTED | | | | | | | | 218,113,031 |
| | | | | | | | |
*Totals may not foot due to rounding. | | | | | | | | |
| | | | | | | | |
Entergy Corporation |
|
Consolidating Income Statement |
Twelve Months Ended September 30, 2006 vs. 2005 |
(Dollars in thousands) |
(Unaudited) |
| |
| U.S. Utilities/ Parent & Other | | Competitive Businesses | | Eliminations | | Consolidated |
|
OPERATING REVENUES | | | | | | | | |
Domestic electric | | $ 1,173,369 | | $ - | | $ (1,700) | | $ 1,171,669 |
Natural gas | | 23,542 | | - | | - | | 23,542 |
Competitive businesses | | (7,317) | | 235,002 | | 19,336 | | 247,021 |
Total | | 1,189,594 | | 235,002 | | 17,636 | | 1,442,232 |
| | | | | | | | |
OPERATING EXPENSES | | | | | | | | |
Operating and Maintenance: | | | | | | | | |
Fuel, fuel related expenses, and gas purchased for resale | | 994,260 | | 43,472 | | - | | 1,037,732 |
Purchased power | | 159,641 | | 11,490 | | 18,582 | | 189,713 |
Nuclear refueling outage expenses | | 7,547 | | (83) | | - | | 7,464 |
Provision for turbine commitments, asset impairments | | | | | | | | |
and restructuring charges | | - | | (55,000) | | - | | (55,000) |
Other operation and maintenance | | 59,256 | | 97,791 | | (928) | | 156,119 |
Decommissioning | | (5,294) | | 3,706 | | - | | (1,588) |
Taxes other than income taxes | | 52,767 | | 4,513 | | - | | 57,280 |
Depreciation and amortization | | 9,315 | | 13,570 | | - | | 22,885 |
Other regulatory charges (credits) - net | | (49,959) | | - | | - | | (49,959) |
Total | | 1,227,533 | | 119,459 | | 17,654 | | 1,364,646 |
| | | | | | | | |
OPERATING INCOME | | (37,939) | | 115,543 | | (18) | | 77,586 |
| | | | | | | | |
OTHER INCOME (DEDUCTIONS) | | | | | | | | |
Allowance for equity funds used during construction | | 8,214 | | - | | - | | 8,214 |
Interest and dividend income | | 15,807 | | 18,440 | | (28,538) | | 5,709 |
Equity in earnings (loss) of unconsolidated equity affiliates | | (7,040) | | 42,450 | | - | | 35,410 |
Miscellaneous - net | | 5,344 | | 75,638 | | 17 | | 80,999 |
Total | | 22,325 | | 136,528 | | (28,521) | | 130,332 |
| | | | | | | | |
INTEREST AND OTHER CHARGES | | | | | | | | |
Interest on long-term debt | | 46,180 | | (5,402) | | - | | 40,778 |
Other interest - net | | 33,118 | | 10,485 | | (28,580) | | 15,023 |
Allowance for borrowed funds used during construction | | (1,782) | | - | | - | | (1,782) |
Total | | 77,516 | | 5,083 | | (28,580) | | 54,019 |
| | | | | | | | |
INCOME FROM CONTINUING OPERATIONS | | | | | | | | |
BEFORE INCOME TAXES | | (93,130) | | 246,988 | | 41 | | 153,899 |
| | | | | | | | |
Income taxes | | (31,928) | | 180,304 | | - | | 148,376 |
| | | | | | | | |
INCOME FROM CONTINUING OPERATIONS | | (61,202) | | 66,684 | | 41 | | 5,523 |
| | | | | | | | |
LOSS FROM DISCONTINUED OPERATIONS (net of taxes) | | (10,191) | | - | | - | | (10,191) |
| | | | | | | | |
CONSOLIDATED NET INCOME | | (71,393) | | 66,684 | | 41 | | (4,668) |
| | | | | | | | |
Preferred dividend requirements and other | | 3,207 | | 572 | | 41 | | 3,820 |
| | | | | | | | |
EARNINGS APPLICABLE TO COMMON STOCK | | $ (74,600) | | $ 66,112 | | $ - | | $ (8,488) |
| | | | | | | | |
EARNINGS PER AVERAGE COMMON SHARE (from continuing operations): | | | | | | | | |
BASIC | | ($0.22) | | $0.36 | | | | $0.14 |
DILUTED | | ($0.21) | | $0.35 | | | | $0.14 |
LOSS PER AVERAGE COMMON SHARE (from discontinued operations): | | | | | | | | |
BASIC | | ($0.06) | | - | | | | ($0.06) |
DILUTED | | ($0.05) | | - | | | | ($0.05) |
EARNINGS PER AVERAGE COMMON SHARE: | | | | | | | | |
BASIC | | ($0.28) | | $0.36 | | | | $0.08 |
DILUTED | | ($0.26) | | $0.35 | | | | $0.09 |
| | | | | | | | |
| | | | | | | | |
*Totals may not foot due to rounding. | | | | | | | | |
| | | | | | | | |
Entergy Corporation |
|
Consolidated Cash Flow Statement |
Three Months Ended September 30, 2006 vs. 2005 |
(Dollars in thousands) |
(Unaudited) |
| | | | | | |
| | 2006 | | 2005 | | Variance |
| | | | | | |
OPERATING ACTIVITIES | | | | | | |
Consolidated net income | | $395,694 | | $356,388 | | $39,306 |
Adjustments to reconcile consolidated net income to net cash flow | | | | | | |
provided by operating activities: | | | | | | |
Reserve for regulatory adjustments | | 2,277 | | (11,290) | | 13,567 |
Other regulatory credits - net | | (21,563) | | 5,157 | | (26,720) |
Depreciation, amortization, and decommissioning | | 268,995 | | 252,939 | | 16,056 |
Deferred income taxes and investment tax credits | | (5,998) | | 111,718 | | (117,716) |
Equity in earnings (loss) of unconsolidated equity affiliates - net of dividends | | (14,773) | | (4,719) | | (10,054) |
Changes in working capital: | | | | | | |
Receivables | | (108,169) | | (551,693) | | 443,524 |
Fuel inventory | | 17,302 | | (19,472) | | 36,774 |
Accounts payable | | (105,054) | | 523,333 | | (628,387) |
Taxes accrued | | 232,597 | | 118,308 | | 114,289 |
Interest accrued | | 24,944 | | 32,946 | | (8,002) |
Deferred fuel | | 163,828 | | (191,179) | | 355,007 |
Other working capital accounts | | 7,701 | | (15,103) | | 22,804 |
Provision for estimated losses and reserves | | 2,558 | | (5,781) | | 8,339 |
Changes in other regulatory assets | | (27,796) | | (337,625) | | 309,829 |
Other | | (55,729) | | 69,869 | | (125,598) |
Net cash flow provided by operating activities | | 776,814 | | 333,796 | | 443,018 |
| | | | | | |
INVESTING ACTIVITIES | | | | | | |
Construction/capital expenditures | | (291,403) | | (261,161) | | (30,242) |
Allowance for equity funds used during construction | | 7,721 | | 5,893 | | 1,828 |
Nuclear fuel purchases | | (136,509) | | (76,142) | | (60,367) |
Proceeds from sale/leaseback of nuclear fuel | | 93,970 | | 48,460 | | 45,510 |
Decrease (increase) in other investments | | 6,431 | | (43,495) | | 49,926 |
Proceeds from nuclear decommissioning trust fund sales | | 56,939 | | 281,268 | | (224,329) |
Investment in nuclear decommissioning trust funds | | (81,867) | | (307,882) | | 226,015 |
Other regulatory investments | | 3,973 | | (176,432) | | 180,405 |
Net cash flow used in investing activities | | (340,745) | | (529,491) | | 188,746 |
| | | | | | |
FINANCING ACTIVITIES | | | | | | |
Proceeds from the issuance of: | | | | | | |
Long-term debt | | 139,836 | | 1,176,552 | | (1,036,716) |
Preferred stock | | - | | (2) | | 2 |
Common stock and treasury stock | | 16,700 | | 24,684 | | (7,984) |
Retirement of long-term debt | | (454,679) | | (664,995) | | 210,316 |
Repurchase of common stock | | - | | (238,368) | | 238,368 |
Redemption of preferred stock | | (2,821) | | (31,469) | | 28,648 |
Changes in credit line borrowings - net | | - | | 40,000 | | (40,000) |
Dividends paid: | | | | | | |
Common stock | | (112,646) | | (112,084) | | (562) |
Preferred stock | | (6,101) | | (6,308) | | 207 |
Net cash flow provided by (used in) financing activities | | (419,711) | | 188,010 | | (607,721) |
| | | | | | |
Effect of exchange rates on cash and cash equivalents | | (264) | | (916) | | 652 |
| | | | | | |
Net increase (decrease) in cash and cash equivalents | | 16,094 | | (8,601) | | 24,695 |
| | | | | | |
Cash and cash equivalents at beginning of period | | 728,934 | | 606,632 | | 122,302 |
| | | | | | |
Cash and cash equivalents at end of period | | $745,028 | | $598,031 | | $146,997 |
| | | | | | |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | | | | | | |
Cash paid (received) during the period for: | | | | | | |
Interest - net of amount capitalized | | $107,605 | | $89,636 | | $17,969 |
Income taxes | | $33,765 | | $35,301 | | ($1,536) |
| | | | | | |
| | | | | | |
Entergy Corporation |
|
Consolidated Cash Flow Statement |
Nine Months Ended September 30, 2006 vs. 2005 |
(Dollars in thousands) |
(Unaudited) |
| | | | | | |
| | 2006 | | 2005 | | Variance |
| | | | | | |
OPERATING ACTIVITIES | | | | | | |
Consolidated net income | | $886,936 | | $827,315 | | $59,621 |
Adjustments to reconcile consolidated net income to net cash flow | | | | | | |
provided by operating activities: | | | | | | |
Reserve for regulatory adjustments | | 43,960 | | (85,212) | | 129,172 |
Other regulatory credits - net | | (124,509) | | (44,814) | | (79,695) |
Depreciation, amortization, and decommissioning | | 765,627 | | 747,397 | | 18,230 |
Deferred income taxes and investment tax credits | | (90,439) | | 204,297 | | (294,736) |
Equity in earnings (loss) of unconsolidated equity affiliates - net of dividends | | (24,669) | | (16,712) | | (7,957) |
Changes in working capital: | | | | | | |
Receivables | | 210,311 | | (675,927) | | 886,238 |
Fuel inventory | | 3,652 | | (10,407) | | 14,059 |
Accounts payable | | (390,804) | | 508,648 | | (899,452) |
Taxes accrued | | 768,251 | | 186,803 | | 581,448 |
Interest accrued | | 3,190 | | 15,231 | | (12,041) |
Deferred fuel | | 436,663 | | (267,441) | | 704,104 |
Other working capital accounts | | 111,491 | | (64,075) | | 175,566 |
Provision for estimated losses and reserves | | 27,595 | | 5,755 | | 21,840 |
Changes in other regulatory assets | | (193,323) | | (316,327) | | 123,004 |
Other | | (176,575) | | 92,417 | | (268,992) |
Net cash flow provided by operating activities | | 2,257,357 | | 1,106,948 | | 1,150,409 |
| | | | | | |
INVESTING ACTIVITIES | | | | | | |
Construction/capital expenditures | | (1,233,505) | | (877,165) | | (356,340) |
Allowance for equity funds used during construction | | 32,088 | | 29,414 | | 2,674 |
Nuclear fuel purchases | | (260,759) | | (260,587) | | (172) |
Proceeds from sale/leaseback of nuclear fuel | | 135,079 | | 174,140 | | (39,061) |
Proceeds from sale of assets and businesses | | 77,159 | | - | | 77,159 |
Payment for purchase of plant | | (88,199) | | (162,075) | | 73,876 |
Decrease (increase) in other investments | | 56,501 | | 19,698 | | 36,803 |
Purchase of other temporary investments | | - | | (1,591,025) | | 1,591,025 |
Liquidation of other temporary investments | | - | | 1,778,975 | | (1,778,975) |
Proceeds from nuclear decommissioning trust fund sales | | 580,745 | | 711,494 | | (130,749) |
Investment in nuclear decommissioning trust funds | | (655,788) | | (786,635) | | 130,847 |
Other regulatory investments | | (38,506) | | (240,232) | | 201,726 |
Net cash flow used in investing activities | | (1,395,185) | | (1,203,998) | | (191,187) |
| | | | | | |
FINANCING ACTIVITIES | | | | | | |
Proceeds from the issuance of: | | | | | | |
Long-term debt | | 1,377,701 | | 2,538,976 | | (1,161,275) |
Preferred stock | | 73,354 | | 29,998 | | 43,356 |
Common stock and treasury stock | | 32,072 | | 114,552 | | (82,480) |
Retirement of long-term debt | | (1,598,425) | | (1,366,909) | | (231,516) |
Repurchase of common stock | | - | | (878,188) | | 878,188 |
Redemption of preferred stock | | (183,881) | | (33,719) | | (150,162) |
Changes in credit line borrowings - net | | (40,000) | | 39,850 | | (79,850) |
Dividends paid: | | | | | | |
Common stock | | (337,104) | | (341,437) | | 4,333 |
Preferred stock | | (22,861) | | (19,087) | | (3,774) |
Net cash flow provided by (used in) financing activities | | (699,144) | | 84,036 | | (783,180) |
| | | | | | |
Effect of exchange rates on cash and cash equivalents | | (820) | | (787) | | (33) |
| | | | | | |
Net increase (decrease) in cash and cash equivalents | | 162,208 | | (13,801) | | 176,009 |
| | | | | | |
Cash and cash equivalents at beginning of period | | 582,820 | | 619,786 | | (36,966) |
| | | | | | |
Effect of the deconsolidation of Entergy New Orleans on cash and cash equivalents | | - | | (7,954) | | 7,954 |
| | | | | | |
Cash and cash equivalents at end of period | | $745,028 | | $598,031 | | $146,997 |
| | | | | | |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | | | | | | |
Cash paid (received) during the period for: | | | | | | |
Interest - net of amount capitalized | | $390,059 | | $332,056 | | $58,003 |
Income taxes | | ($197,560) | | $118,989 | | ($316,549) |
| | | | | | |
| | | | | | |
Entergy Corporation |
|
Consolidated Cash Flow Statement |
Twelve Months Ended September 30, 2006 vs. 2005 |
(Dollars in thousands) |
(Unaudited) |
| | | | | | |
| | 2006 | | 2005 | | Variance |
| | | | | | |
OPERATING ACTIVITIES | | | | | | |
Consolidated net income | | $983,379 | | $988,047 | | ($4,668) |
Adjustments to reconcile consolidated net income to net cash flow | | | | | | |
provided by operating activities: | | | | | | |
Reserve for regulatory adjustments | | 47,139 | | (57,045) | | 104,184 |
Other regulatory credits - net | | (129,577) | | (79,618) | | (49,959) |
Depreciation, amortization, and decommissioning | | 1,020,082 | | 1,008,659 | | 11,423 |
Deferred income taxes and investment tax credits | | 332,077 | | 317,598 | | 14,479 |
Equity in earnings (loss) of unconsolidated equity affiliates - net of dividends | | (3,642) | | 538,029 | | (541,671) |
Provision for asset impairments and restructuring charges | | 39,767 | | 55,000 | | (15,233) |
Changes in working capital: | | | | | | |
Receivables | | 518,887 | | (567,725) | | 1,086,612 |
Fuel inventory | | (69,066) | | (8,236) | | (60,830) |
Accounts payable | | (596,258) | | 615,889 | | (1,212,147) |
Taxes accrued | | 409,133 | | (37,435) | | 446,568 |
Interest accrued | | 3,092 | | 4,155 | | (1,063) |
Deferred fuel | | 467,303 | | (219,742) | | 687,045 |
Other working capital accounts | | 129,913 | | (24,824) | | 154,737 |
Provision for estimated losses and reserves | | 18,136 | | 3,678 | | 14,458 |
Changes in other regulatory assets | | (188,930) | | (276,665) | | 87,735 |
Other | | (363,218) | | 39,955 | | (403,173) |
Net cash flow provided by operating activities | | 2,618,217 | | 2,299,720 | | 318,497 |
| | | | | | |
INVESTING ACTIVITIES | | | | | | |
Construction/capital expenditures | | (1,814,426) | | (1,328,095) | | (486,331) |
Allowance for equity funds used during construction | | 48,410 | | 40,196 | | 8,214 |
Nuclear fuel purchases | | (314,586) | | (346,675) | | 32,089 |
Proceeds from sale/leaseback of nuclear fuel | | 145,342 | | 209,349 | | (64,007) |
Proceeds from sale of assets and businesses | | 77,159 | | 53,452 | | 23,707 |
Payment for purchase of plant | | (88,199) | | (162,075) | | 73,876 |
Investment in nonutility properties | | - | | 13,712 | | (13,712) |
Decrease (increase) in other investments | | 46,708 | | 414,536 | | (367,828) |
Purchase of other temporary investments | | - | | (2,616,625) | | 2,616,625 |
Liquidation of other temporary investments | | - | | 2,663,125 | | (2,663,125) |
Proceeds from nuclear decommissioning trust fund sales | | 813,504 | | 757,089 | | 56,415 |
Investment in nuclear decommissioning trust funds | | (908,977) | | (856,041) | | (52,936) |
Other regulatory investments | | (188,730) | | (231,267) | | 42,537 |
Net cash flow used in investing activities | | (2,183,795) | | (1,389,319) | | (794,476) |
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FINANCING ACTIVITIES | | | | | | |
Proceeds from the issuance of: | | | | | | |
Long-term debt | | 3,141,295 | | 4,751,979 | | (1,610,684) |
Preferred stock | | 171,351 | | 29,998 | | 141,353 |
Common stock and treasury stock | | 23,588 | | 144,444 | | (120,856) |
Retirement of long-term debt | | (2,920,722) | | (3,704,987) | | 784,265 |
Repurchase of common stock | | - | | (1,479,915) | | 1,479,915 |
Redemption of preferred stock | | (183,881) | | (33,719) | | (150,162) |
Changes in credit line borrowings - net | | (40,000) | | (70,229) | | 30,229 |
Dividends paid: | | | | | | |
Common stock | | (449,175) | | (464,829) | | 15,654 |
Preferred stock | | (29,246) | | (24,883) | | (4,363) |
Net cash flow used in financing activities | | (286,790) | | (852,141) | | 565,351 |
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Effect of exchange rates on cash and cash equivalents | | (635) | | (1,534) | | 899 |
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Net increase in cash and cash equivalents | | 146,997 | | 56,726 | | 90,271 |
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Cash and cash equivalents at beginning of period | | 598,031 | | 541,305 | | 56,726 |
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Cash and cash equivalents at end of period | | $745,028 | | $598,031 | | $146,997 |
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SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | | | | | | |
Cash paid (received) during the period for: | | | | | | |
Interest - net of amount capitalized | | $519,348 | | $464,091 | | $55,257 |
Income taxes | | ($200,477) | | $115,154 | | ($315,631) |
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