Exhibit 99.2
Entergy Corporation
639 Loyola Avenue
[Logo of Entergy] New Orleans, LA 70113
News
Release
Date: April 25, 2001
For Release: Immediate
Contact: Yolanda Pollard (Media) Nancy Morovich (Investor Relations)
504-576-4238 504-576-5506
ypollar@entergy.com nmorovi@entergy.com
Entergy's Competitive Non-Regulated Businesses
Contribute to Strong First Quarter Earnings
New Orleans - Entergy Corporation (NYSE:ETR) today reported
first quarter 2001 consolidated earnings that were significantly
higher than earnings in the same period of 2000. The increase
resulted primarily from the company's competitive businesses,
including new business ventures that became operational in the past
year. These competitive businesses are not subject to state and
local regulation.
Earnings per share from Entergy's operations, which include
the competitive businesses, set a first quarter record for the
company - easily beating record first quarter results a year ago.
On an operational basis, Entergy's earnings were $168.2 million, or
75 cents per share, in first quarter 2001, compared with $114.2
million, or 48 cents per share, in the year-earlier period. As
reported earnings, which include the impact of special items, were
$154.1 million, or 69 cents per share, in first quarter 2001,
compared with $98.8 million, or 42 cents per share, in the year-
earlier period. The only special item recorded during the quarter
totaled 6 cents per share for expenses related to the merger with
FPL Group, Inc. which was terminated on April 2. None of these
costs will be charged to Entergy's utility customers.
Excluding the impact of weather, first quarter earnings from
Entergy's operations increased 25 percent compared to the same
period of 2000, primarily due to improved results at Entergy's
unregulated nuclear business and the Entergy-Koch joint venture.
"Entergy had yet another outstanding quarter," said J. Wayne
Leonard, Entergy's chief executive officer. "We're now clearly
realizing the financial benefits of our reinvestment plan that
began in 1998 with our competitive businesses making substantial
contributions to increased revenues and earnings. Our strategy is
to achieve market-leading positions in each line of business as
part of an integrated wholesale energy strategy. The success of our
efforts is evident in all areas:
- Improved performance in our regulated utility is providing a
higher level of service and reliability to our customers.
- Entergy's non-utility nuclear business has achieved critical
mass and is delivering significantly to overall earnings per share.
- In our wholesale business, the development plan for new
generating projects offers us considerable upside over the coming
years, as our turbines are deployed.
- And our investment in Entergy-Koch, our wholesale energy
marketing and trading venture, is already contributing to earnings
in its first quarter of operations. Entergy-Koch has industry-
leading capabilities to manage price risk and support strong
earnings growth.
Our integrated wholesale energy strategy is unfolding, and the
first quarter has us off to a great start for the year 2001."
Utility Operations
Excluding the impact of weather, utility earnings on an
operational basis were flat at 47 cents per share in the first
quarter of 2001 compared to the same period one year ago. Including
the impact of weather, operational earnings were $116.1 million, or
52 cents per share for the first quarter of this year. This
compares with $93.2 million, or 39 cents per share, in first
quarter of 2000 - an increase of 33 percent in earnings per share
year over year. Weather impacted first quarter 2001 by adding 5
cents per share to earnings. In comparison, milder-than-normal
weather decreased earnings by 8 cents per share in the first
quarter of 2000.
Other favorable factors affecting utility earnings per share
for the quarter, such as the reduction in the number of outstanding
shares due to Entergy's share repurchase program, were offset by
higher franchise tax expense and depreciation expense. Higher
depreciation expense reflects the investment Entergy has made in
the utility infrastructure, including new substations, upgraded
power lines, and other electric distribution equipment such as
transformers to improve reliability for the customers of its
regulated utilities. Interest expense was also higher in the first
quarter 2001 compared to the same period last year resulting
primarily from increased debt and short-term borrowings and
interest accrued on existing regulatory reserves.
On an as reported basis, utility earnings per share includes a
special item for merger related expenses, which decreased utility
earnings per share by 1 cent. The company will not seek recovery
of these costs from customers.
Due to higher natural gas purchase prices, Entergy's fuel
expense was substantially higher in the first quarter of 2001
compared to the same period in 2000. Entergy's regulated utilities
do not profit in any way from higher gas costs, and none of the
increase in consolidated or utility earnings is attributable to
higher gas costs incurred by utility customers.
Competitive Non-Regulated Businesses
In first quarter 2001, Entergy's competitive businesses earned
$48.3 million, or 22 cents per share, compared with $20.8 million
or 9 cents per share in first quarter 2000, on both an operational
and as reported basis. There were no special items recorded at the
competitive businesses during the first quarter of either year.
On an operational basis, Entergy Nuclear earned 13 cents per
share in the first quarter of 2001 compared to 5 cents per share in
the first quarter 2000, due primarily to the addition of the Indian
Point 3 and FitzPatrick nuclear units acquired in late 2000.
Entergy-Koch began operations during the first quarter 2001 and
contributed 8 cents per share. This compares to earnings of 5
cents per share contributed in the first quarter 2000 by Entergy
Power Marketing Corp. which has been moved into the Entergy-Koch
venture. Entergy Wholesale Operations contributed earnings of 1
cent per share in the first quarter 2001 as compared with a loss of
1 cent per share in the previous year.
Parent & Other
Parent & Other earnings were 1 cent per share on an
operational basis in first quarter 2001. Expenses of 5 cents per
share related to the merger with FPL Group, Inc. which was
terminated on April 2, were recorded at Parent during the quarter.
These expenses, which were identified as a special item, resulted
in a first quarter loss of 4 cents per share at Parent & Other on
an as reported basis.
Share Repurchase Program
There were no repurchases of Entergy shares in the first
quarter of 2001. Therefore, through March 31, 2001, the number of
shares repurchased since the initiation of the program in July 1999
remained at 28.9 million shares, with $779 million of expenditures
to acquire these shares at an average cost less than $27.00 per
share. Entergy anticipates limited repurchase activity for the
remainder of 2001, as it pursues various growth investment
opportunities. Average shares outstanding on a fully diluted basis
are expected to be approximately 224 million for the year 2001.
Outlook
"We again achieved strong financial results in the first
quarter," said C. John Wilder, Entergy's chief financial officer.
"The utility remained strong, while the competitive businesses
performed very well, accounting for over 31 percent of consolidated
operational earnings, excluding weather. While only one quarter of
the year is behind us, our strong start positions us well to
achieve 2001 earnings within our target range of $3.00 - $3.20 per
share. We believe this range, as well as the range we established
for 2002 of $3.30 to $3.50, are clearly within reach, even though
share repurchases will be lower than previously expected."
Entergy Corporation, with annual revenues of more than $10
billion, is a major global energy company engaged in power
production, distribution operations, and related diversified
services, with more than 13,800 employees. Entergy owns, manages,
or invests in power plants generating nearly 30,000 megawatts of
electricity domestically and internationally, and delivers
electricity to about 2.6 million customers in portions of Arkansas,
Louisiana, Mississippi and Texas. Through Entergy-Koch, L.P., it
is also a leading provider of wholesale energy marketing and
trading services.
-30-
Entergy's online address is 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. Actual events and results may, for a variety of
reasons, prove to be materially different from those indicated in
these forward-looking statements, estimates and projections.
Factors that could influence actual future outcomes include
regulatory decisions, the effects of changes in law, the evolution
of markets and competition, changes in accounting, weather, the
performance of generating units, fuel prices and availability,
financial markets, risks associated with businesses conducted in
foreign countries, changes in business plan, the presence of
competitors with greater financial resources and the impact of
competitive products and pricing; the effect of the Entergy
Corporation's policies, including the amount and rate of growth of
Entergy Corporation's expenses; the continued availability to
Entergy Corporation of adequate funding sources and changes in
interest rates; delays or difficulties in the production, delivery
or installation of products and the provision of services; and
various legal, regulatory and litigation risks. 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. For a more detailed discussion of some of the
foregoing risks and uncertainties, see Entergy Corporation's
filings with the Securities and Exchange Commission.
ENTERGY CORPORATION
Earnings at a glance
First Quarter 2001 2000 %
Operating Revenues $2,652.43 $1,811.49 46.4
Earnings $ 154.16 $ 98.86 55.9
As Reported Earnings per diluted share* $ 0.69 $ 0.42 64.3
Operational Earnings per diluted share $ 0.75 $ 0.48 56.3
*Includes Special Items (EPS):
Merger expenses $(0.06) -
Regulatory & reserve adjustments - $(0.06)
------ ------
Total $(0.06) $(0.06)
====== ======
Note - dollars in millions except per share amounts, which are
actual.
Entergy Corporation
Consolidated Income Statement
Three Months Ended March 31
(in thousands)
2001 2000 % Inc/(Dec)
(unaudited)
Operating Revenues:
Domestic electric $1,872,545 $1,352,896 38.4
Natural gas 110,384 45,881 140.6
Competitive businesses 669,498 412,715 62.2
---------- ----------
Total 2,652,427 1,811,492 46.4
---------- ----------
Operating Expenses:
Operation and maintenance:
Fuel, fuel-related expenses,
and gas purchased for resale 1,125,863 497,754 126.2
Purchased power 363,879 369,544 (1.5)
Nuclear refueling outage expenses 17,207 18,557 (7.3)
Other operation and maintenance 470,459 377,410 24.7
Decommissioning 8,901 10,938 (18.6)
Taxes other than income taxes 102,463 79,618 28.7
Depreciation and amortization 203,077 178,276 13.9
Other regulatory charges (credits) - net (4,842) (14,605) (66.8)
Amortization of rate deferrals 4,453 7,396 (39.8)
---------- ----------
Total 2,291,460 1,524,888 50.3
---------- ----------
Operating Income 360,967 286,604 25.9
---------- ----------
Other Income (Deductions):
Allowance for equity funds used during
construction 4,943 7,695 (35.8)
Gain (loss) on sales of assets - net 588 517 13.7
Equity in earnings of unconsolidated equity affiliates 25,064 -
Miscellaneous - net 55,393 28,982 91.1
---------- ----------
Total 85,988 37,194 131.2
---------- ----------
Interest and Other Charges:
Interest on long-term debt 128,971 113,659 13.5
Other interest - net 47,914 20,283 136.2
Dividends on preferred securities of subsidiaries 4,709 4,709 -
Allowance for borrowed funds used during
construction (3,939) (6,088) (35.3)
---------- ----------
Total 177,655 132,563 34.0
---------- ----------
Income Before Income Taxes 269,300 191,235 40.8
Income Taxes 108,429 82,825 30.9
---------- ----------
Consolidated Net Income 160,871 108,410 48.4
Preferred dividend requirements of subsidiaries and other 6,716 9,550 (29.7)
---------- ----------
Earnings Applicable to Common Stock $154,155 $98,860 55.9
========== ==========
Earnings Per Average Common Share:
Basic $0.70 $0.42 66.7
Diluted $0.69 $0.42 64.3
Average Number of Common Shares Outstanding:
Basic 219,917,139 236,608,445
Diluted 223,785,716 236,671,604
Entergy Corporation
Consolidated Income Statement
Twelve Months Ended March 31
(in thousands)
2001 2000 % Inc/(Dec)
(unaudited)
Operating Revenues:
Domestic electric $7,739,350 $6,385,728 21.2
Natural gas 230,359 118,520 94.4
Steam products - 7,541 (100.0)
Competitive businesses 2,887,373 2,438,595 18.4
----------- ----------
Total 10,857,082 8,950,384 21.3
----------- ----------
Operating Expenses:
Operation and maintenance:
Fuel, fuel-related expenses,
and gas purchased for resale 3,273,943 2,177,656 50.3
Purchased power 2,657,217 2,438,228 9.0
Nuclear refueling outage expenses 69,161 74,928 (7.7)
Other operation and maintenance 1,994,361 1,720,909 15.9
Decommissioning 37,447 44,252 (15.4)
Taxes other than income taxes 393,189 335,834 17.1
Depreciation and amortization 770,926 692,316 11.4
Other regulatory charges (credits) - net 13,444 9,266 45.1
Amortization of rate deferrals 27,450 122,170 (77.5)
----------- ----------
Total 9,237,138 7,615,559 21.3
----------- ----------
Operating Income 1,619,944 1,334,825 21.4
----------- ----------
Other Income (Deductions):
Allowance for equity funds used during
construction 29,270 31,575 (7.3)
Gain (loss) on sales of assets - net (20,394) 51,859 (139.3)
Equity in earnings of unconsolidated equity affiliates 25,066 -
Miscellaneous - net 216,539 163,453 32.5
----------- ----------
Total 250,481 246,887 1.5
----------- ----------
Interest and Other Charges:
Interest on long-term debt 492,385 468,005 5.2
Other interest - net 113,266 94,213 20.2
Dividends on preferred securities of subsidiaries 18,838 18,838 0.0
Allowance for borrowed funds used during
construction (21,964) (24,194) (9.2)
----------- ----------
Total 602,525 556,862 8.2
----------- ----------
Income Before Income Taxes 1,267,900 1,024,850 23.7
Income Taxes 504,524 394,320 27.9
----------- ----------
Consolidated Net Income 763,376 630,530 21.1
Preferred dividend requirements of subsidiaries and other 28,787 41,392 (30.5)
----------- ----------
Earnings Applicable to Common Stock $734,589 $589,138 24.7
=========== ==========
Earnings Per Average Common Share:
Basic $3.30 $2.43 35.8
Diluted $3.26 $2.43 34.2
Average Number of Common Shares Outstanding:
Basic 222,437,311 242,652,359
Diluted 225,141,304 242,793,320
Entergy Corporation
U.S. Utility Electric Energy Sales & Customers
Three Months Ended March
2001 2000 %
(Millions of kwh)
Electric Energy Sales:
Residential 7,537 6,512 15.7
Commercial 5,574 5,280 5.6
Governmental 615 586 4.9
Industrial 10,311 10,617 (2.9)
-------- --------
Total to Ultimate Customers 24,037 22,995 4.5
Wholesale 2,449 2,272 7.8
-------- --------
Total Sales 26,486 25,267 4.8
======== ========
Twelve Months Ended March
2001 2000 %
(Millions of kwh)
Electric Energy Sales:
Residential 33,023 30,726 7.5
Commercial 24,952 23,886 4.5
Governmental 2,633 2,562 2.8
Industrial 43,650 43,950 (0.7)
-------- --------
Total to Ultimate Customers 104,258 101,124 3.1
Wholesale 9,971 9,777 2.0
-------- --------
Total Sales 114,229 110,901 3.0
======== ========
March
2001 2000 %
Electric Customers (Year to date average):
Residential 2,212,976 2,195,536 0.8
Commercial 293,730 286,013 2.7
Governmental 14,589 14,219 2.6
Industrial 38,353 39,716 (3.4)
--------- ---------
Total to Ultimate Customers 2,559,648 2,535,484 1.0
Wholesale 41 43 (4.7)
--------- ---------
Total Customers 2,559,689 2,535,527 1.0
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