Exhibit 99.2
[Letterhead of Entergy]
News Release
Date: April 24, 2000
For release: Immediate
News Media: Kelle Barfield
504-576-2547
kbarfie@entergy.com
Investor Relations: Renae Conley
504-576-4947
econley@entergy.com
ENTERGY REPORTS RECORD FIRST QUARTER
LED BY COMPETITIVE BUSINESSES
NEW ORLEANS - Entergy Corporation (NYSE:ETR) today reported
first quarter 2000 consolidated earnings that were 59 percent
higher than a year ago. Earnings per share from operations
set a first quarter record for the company and were up 129
percent over the same period in 1999.
Entergy's first quarter 2000 earnings were $98.9
million, or 42 cents per share, compared with earnings of
$62.2 million, or 25 cents per share, in first quarter 1999.
On an operational basis, Entergy earnings were $114.2
million, or 48 cents per share, in first quarter 2000,
compared with $52.4 million, or 21 cents per share, in first
quarter 1999. Weather had an equally unfavorable impact on
earnings in both quarters, reducing earnings by 8 cents per
share in each period.
Entergy's competitive businesses contributed to higher
earnings, along with improved financial performance at U.S.
utility operations.
"Entergy had an outstanding first quarter," said J.
Wayne Leonard, Entergy's chief executive officer. "We
continue to deliver on the commitments we have made over the
last couple of years, including: growing earnings eight to
ten percent a year, maintaining financial integrity and
discipline, and improving service to our customers. Today's
announcement of an energy commodity venture with Koch Industries
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Entergy Reports Record First Quarter
April 24, 2000
Page 2 of 8
further solidifies our position as a formidable competitor in
the wholesale power market. The venture transforms our price
risk management group into not only an integrated energy
services business, but also a credible and significant addition
to our earnings growth strategy."
Utility Operations
U. S. utility operations reported earnings of $77.8
million, compared with $71.9 million in 1999, despite equally
unusually mild winter weather in both periods. Results for
first quarter 2000 include a non-recurring charge of $15.4
million for regulatory reserves and rate actions. When this
item is excluded, operational earnings were $93.2 million, an
increase of 30 percent from $71.9 million in first quarter
1999. Strong retail sales growth and lower operations and
maintenance expenses, resulting from lower information
technology, nuclear insurance and incentive compensation
costs, were primary drivers of the increase in earnings.
For the first quarter of 2000, total retail sales were
23.0 million kWh, compared with 22.4 million kWh for the same
period in 1999.
"Continued strong performance at the utility also
contributed to record earnings, with no help from weather,
and we continue to show improvements in safety, reliability
and customer service," added Leonard. He noted that in 1999,
Entergy reduced lost-time accidents by 50% to a system-record
low, reduced outages by 26%, and achieved industry-leading
performance in customer call centers. "In 2000, we continue
to improve on these numbers. So far this year, for example,
we haven't had a single lost-time accident at our power
plants, and in other operations accidents are down another
50% from last year. The Entergy story continues to be solid
execution reflected in strong financial and operational
results."
Competitive Businesses
Entergy Nuclear Inc. earned $11.5 million, as the
Pilgrim nuclear plant - which Entergy purchased in July 1999
- - turned in another quarter of outstanding operations. The
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Entergy Reports Record First Quarter
April 24, 2000
Page 3 of 8
Plymouth, Mass., plant set a production record in March 2000,
operating in excess of 100 percent of its rated capacity.
Additionally, Entergy Wholesale Operations contributed
earnings of $9.3 million, driven by strong results from
energy trading operation in the United States and United
Kingdom and earnings from Latin American investments.
On an operational basis, total earnings from competitive
businesses of more than $20 million translated into
contributions to earnings per share of 9 cents for first
quarter 2000, compared with a first quarter 1999 loss of 7
cents.
Entergy Nuclear took another major step in its growth
strategy on March 28, when it signed an agreement with New
York Power Authority to purchase two nuclear plants, James A.
FitzPatrick in Oswego and Indian Point 3 in Westchester
County. Transition planning is underway, with regulatory
approvals that are required to clear the sale expected in the
fall.
For Entergy Wholesale Operations, scheduled completion
of the Saltend Unit 1 plant in the U.K. is still on target
for this spring, with Units 2 and 3 scheduled for completion
by mid-summer.
Share Repurchase Program
For the first quarter 2000, 7.4 million shares were
repurchased at a total cost of $156 million. Since the share
repurchase program was initiated in July 1999, $385 million
of the $750 million Board authorized share repurchase program
has been utilized to repurchase 15.3 million shares of
Entergy common stock. The program is expected to be
completed by the end of 2000.
Outlook
"Financial results were strong in the first quarter,"
said C. John Wilder, Entergy's chief financial officer. "The
utility performed well in our traditionally mild winter
months, while the competitive businesses made a very
significant contribution, accounting for over 18 percent of
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Entergy Reports Record First Quarter
April 24, 2000
Page 4 of 8
total operational earnings. We are pleased to be well on our
way to achieving our 2000 earnings target of $2.35 - $2.45
per share."
Entergy is a major global energy company with power
production, distribution operations and related diversified
services. Entergy owns, manages, or invests in power plants
generating nearly 30,000 megawatts of electricity
domestically and internationally, and delivers electricity to
about 2.5 million customers in portions of Arkansas,
Louisiana, Mississippi and Texas. It is also a leading
provider of wholesale energy marketing and trading services.
Entergy Corporation's on-line address is
http://www.entergy.com
The following constitutes a "Safe Harbor" statement under the
Private Securities Litigation Reform Act of 1995: Investors
are cautioned that forward-looking statements contained in
the foregoing release with respect to the revenues, earnings,
performance, strategies, prospects and other aspects of the
business of Entergy Corporation may involve risks and
uncertainties. A number of factors could cause actual
results or outcomes to differ materially from those indicated
by such forward-looking statements. These factors include,
but are not limited to, risks and uncertainties relating to:
the effects of weather, the performance of generating units
and transmission systems, the possession of nuclear
materials, fuel prices and availability, the effects of
regulatory decisions and changes in law, litigation, capital
spending requirements, the onset of competition, advances in
technology, changes in accounting standards, corporate
restructuring and changes in capital structure, movements in
the markets for electricity and other energy-related
commodities, changes in interest rates and in financial and
foreign currency markets generally, changes in corporate
strategies, and other factors.
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Entergy Reports Record First Quarter
April 24, 2000
Page 5 of 8
ENTERGY CORPORATION
Earnings at a glance
First Quarter 2000 1999 %
Operating Revenues $1,811.49 $1,639.92 10.5
Earnings $98.86 $62.18 59.0
Earnings per share* $0.42 $0.25 68.0
* Includes Special Items (EPS) :
Regulatory & reserve adjustments $(0.06) -
Foreign tax benefits - $0.03
CitiPower purchase price adjustment - $0.02
EPG write-off of start-up costs per new
accounting standard - $(0.01)
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Total $(0.06) $0.04
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Note - dollars in millions except per share amounts, which are actual.
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Entergy Reports Record First Quarter
April 24, 2000
Page 6 of 8
Entergy Corporation
Consolidated Income Statement
Three Months Ended March 31
(in thousands)
2000 1999 % Inc/(Dec)
(unaudited)
Operating Revenues:
Domestic electric $1,352,896 $1,238,583 9.2
Natural gas 45,881 37,731 21.6
Steam products - 8,296 -
Competitive businesses 412,715 355,312 16.2
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Total 1,811,492 1,639,922 10.5
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Operating Expenses:
Operation and maintenance:
Fuel, fuel-related expenses,
and gas purchased for resale 497,754 402,973 23.5
Purchased power 369,544 373,799 (1.1)
Nuclear refueling outage expenses 18,557 19,685 (5.7)
Other operation and maintenance 377,410 367,632 2.7
Decommissioning 10,938 12,674 (13.7)
Taxes other than income taxes 79,618 83,068 (4.2)
Depreciation and amortization 178,276 184,368 (3.3)
Other regulatory charges (credits) - net (14,605) (16,125) (9.4)
Amortization of rate deferrals 7,396 8,413 (12.1)
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Total 1,524,888 1,436,487 6.2
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Operating Income 286,604 203,435 40.9
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Other Income (Deductions):
Allowance for equity funds used during
construction 7,695 5,411 42.2
Gain on sales of assets - net 517 20,583 (97.5)
Miscellaneous - net 28,982 19,952 45.3
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Total 37,194 45,946 (19.0)
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Interest and Other Charges:
Interest on long-term debt 113,659 122,531 (7.2)
Other interest - net 20,283 8,541 137.5
Dividends on preferred securities of subsidiaries 4,709 4,709 -
Allowance for borrowed funds used during
construction (6,088) (4,479) 35.9
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Total 132,563 131,302 1.0
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Income Before Income Taxes 191,235 118,079 62.0
Income Taxes 82,825 45,173 83.4
---------- ----------
Consolidated Net Income 108,410 72,906 48.7
Preferred dividend requirements of subsidiaries and other 9,550 10,725 (11.0)
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Earnings Applicable to Common Stock $98,860 $62,181 59.0
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Earnings Per Average Common Share $0.42 $0.25 68.0
Average Number of Common Shares Outstanding 236,608,445 246,579,198
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Entergy Reports Record First Quarter
April 24, 2000
Page 7 of 8
Entergy Corporation
Consolidated Income Statement
Twelve Months Ended March 31
(in thousands)
2000 1999 % Inc/(Dec)
(unaudited)
Operating Revenues:
Domestic electric $6,385,728 $6,054,853 5.5
Natural gas 118,520 102,661 15.4
Steam products 7,541 43,063 (82.5)
Competitive businesses 2,438,595 4,621,025 (47.2)
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Total 8,950,384 10,821,602 (17.3)
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Operating Expenses:
Operation and maintenance:
Fuel, fuel-related expenses,
and gas purchased for resale 2,177,656 1,760,038 23.7
Purchased power 2,438,228 4,180,569 (41.7)
Nuclear refueling outage expenses 74,928 80,896 (7.4)
Other operation and maintenance 1,720,909 1,871,984 (8.1)
Decommissioning 44,252 47,401 (6.6)
Taxes other than income taxes 335,834 349,427 (3.9)
Depreciation and amortization 692,316 884,019 (21.7)
Other regulatory charges (credits) - net 9,266 51,870 (82.1)
Amortization of rate deferrals 122,170 165,615 (26.2)
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Total 7,615,559 9,391,819 (18.9)
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Operating Income 1,334,825 1,429,783 (6.6)
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Other Income (Deductions):
Allowance for equity funds used during
construction 31,575 15,527 103.4
Gain on sales of assets - net 51,859 281,097 (81.6)
Miscellaneous - net 163,453 88,424 84.9
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Total 246,887 385,048 (35.9)
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Interest and Other Charges:
Interest on long-term debt 468,005 666,556 (29.8)
Other interest - net 94,213 63,486 48.4
Dividends on preferred securities of subsidiaries 18,838 36,159 (47.9)
Allowance for borrowed funds used during
construction (24,194) (13,360) 81.1
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Total 556,862 752,841 (26.0)
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Income Before Income Taxes 1,024,850 1,061,990 (3.5)
Income Taxes 394,320 263,509 49.6
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Consolidated Net Income 630,530 798,481 (21.0)
Preferred dividend requirements of subsidiaries and other 41,392 45,509 (9.0)
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Earnings Applicable to Common Stock $589,138 $752,972 (21.8)
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Earnings Per Average Common Share $2.43 $3.05 (20.3)
Average Number of Common Shares Outstanding 242,652,359 246,558,908
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Entergy Reports Record First Quarter
April 24, 2000
Page 8 of 8
Entergy Corporation
U.S. Utility Electric Energy Sales & Customers
Three Months Ended March
2000 1999 %
(Millions of kwh)
Electric Energy Sales:
Residential 6,512 6,417 1.5
Commercial 5,280 5,169 2.1
Governmental 587 589 (0.3)
Industrial 10,617 10,216 3.9
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Total to Ultimate Customers 22,996 22,391 2.7
Wholesale 2,272 2,209 2.8
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Total Sales 25,268 24,600 2.7
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Twelve Months Ended March
2000 1999 %
(Millions of kwh)
Electric Energy Sales:
Residential 30,726 31,112 (1.2)
Commercial 23,886 23,518 1.6
Governmental 2,562 2,620 (2.2)
Industrial 43,950 43,257 1.6
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Total to Ultimate Customers 101,124 100,507 0.6
Wholesale 9,777 11,466 (14.7)
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Total Sales 110,901 111,973 (1.0)
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March
2000 1999 %
Electric Customers (Year to date average):
Residential 2,195,536 2,167,336 1.3
Commercial 286,013 278,500 2.7
Governmental 14,219 13,866 2.5
Industrial 39,716 39,194 1.3
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Total to Ultimate Customers 2,535,484 2,498,896 1.5
Wholesale 43 42 1.6
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Total Customers 2,535,527 2,498,938 1.5
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