Exhibit 99.2
[Logo of Entergy] Entergy
639 Loyola Avenue
New Orleans, LA 70113
Date: October 22, 2001 News
Release
For Immediately
Release:
Contact: Yolanda Pollard (News Media)
(504) 576-4238
ypollar@entergy.com
Nancy Morovich (Investor
Relations)
(504) 576-5506
(888) 925-8406 (pager)
nmorovi@entergy.com
Entergy Reports Solid Third Quarter
New Orleans, La. - Entergy Corporation (NYSE:ETR) today
announced that third quarter 2001 consolidated earnings were
solid, topping Wall Street's earnings consensus for the 14th
consecutive quarter. Excluding the effects of weather, third
quarter 2001 results were 7 percent higher than the same
period in 2000 due to the continued strong performance of the
competitive nuclear and trading businesses, which are not
subject to state and local regulation.
On an operational basis, Entergy's earnings were $278.7
million, or $1.24 per share, in third quarter 2001, when
compared with $306.1 million, or $1.37 cents per share, in
the year-earlier period. Entergy experienced unusually hot
weather in the third quarter of 2000 which accounted for 17
cents of the earnings for that period.
"We have developed and are executing a strategy that can
deliver results in spite of tough economic times and mild
weather patterns," said J. Wayne Leonard, Entergy's chief
executive officer. "We've now exceeded Wall Street's earnings
consensus for 14 consecutive quarters which covers every
single quarter since we changed strategies and key management
in the second quarter of 1998."
Utility Operations
In third quarter 2001, as reported and operational utility
earnings were $223.6 million, or 99 cents per share. This
compares with $283.9 million, or $1.27 per share, in as
reported earnings, and $290.1 million, or $1.30 per share in
operational earnings for the same period in 2000. The only
special item included at the utility in either of these periods
was a $6.2 million, or 3 cents per share, regulatory and
reserves adjustment in third quarter 2000. The decrease in
earnings quarter over quarter was due in large part to
significantly milder weather in third quarter 2001, compared
with third quarter 2000, when much warmer than normal weather
contributed 17 cents to earnings per share. In addition, the
sluggish economy reduced usage and revenues across various
retail segments, particularly among industrial customers. The
earnings impact of the decrease in revenues was partially
offset by reduced operation and maintenance expense including
lower nuclear and transition to competition costs.
Competitive Non-Regulated Businesses
Earnings per share from Entergy's competitive businesses
increased by more than 400 percent over those reported a year
ago, when a one-time gain in third quarter 2001 is excluded.
On an as reported basis, the competitive businesses earned
$101.9 million, or 46 cents per share, in third quarter 2001,
compared with $13.4 million, or 6 cents per share, earned in
the same period of 2000. Third quarter 2001 earnings included
a special item of 15 cents per share, or $33.8 million,
comprised primarily of the gain recorded on the sale of the
Saltend project in the United Kingdom.
Entergy Nuclear earned $34.6 million, or 16 cents per
share, compared to $6.5 million, or 3 cents per share, in
third quarter 2000. The increased earnings were due
primarily to the addition of Indian Point 3 and FitzPatrick
nuclear units acquired in late 2000, and Indian Point 2
acquired in September 2001. In addition, exceptional
operating performance across the non-utility nuclear
portfolio contributed to strong earnings results achieved by
this business.
Energy Commodity Services contributed $67.2 million, or
30 cents, to earnings per share on an as reported basis
compared to $6.8 million, or 3 cents per share, contributed
in third quarter 2000. Included in third quarter 2001 results
was a special item of 15 cents per share, or $33.8 million.
This special item included a 20 cent gain from the sale of
the Saltend project in the United Kingdom which was reduced
by a reserve recorded in connection with the pending
cancellation of certain gas turbines previously expected to
be operational in 2005. Earnings on an operational basis
totaled $33.4 million, or 15 cents per share, and were
contributed primarily by Entergy-Koch's trading and marketing
subsidiary and the gas pipeline business.
Parent & Other
Parent & Other recorded a loss of 6 cents per share in
third quarter 2001, as compared with earnings of 1 cent per
share in third quarter 2000. The decrease in third quarter
2001 was due primarily to lower investment income as a result
of a combination of reduced cash balances and investment
yields.
Outlook
"With three quarters of the year on the books we have
already delivered financial results within our full year's
earnings guidance range," said C. John Wilder, Entergy's
chief financial officer. "The competitive businesses in
particular have performed exceptionally well and the utility
has delivered solid performance in spite of extremely mild
weather conditions. We close in on the end of the year with
optimism that 2001 will be another year of outstanding
financial results which will position us very favorably for
2002 and beyond. We are moving our current guidance for 2001
to $3.10 to $3.20 per share excluding the impact of weather,
which positions us at the top end of the previous guidance
we've shared. And we continue to see $3.30 to $3.50 in
earnings per share for the year 2002."
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 14,000 employees.
Entergy owns, manages, or invests in power plants generating
more than 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
herein with respect to the revenues, earnings, performance,
strategies, prospects and other aspects of the business of
Entergy Corporation, Entergy Arkansas, Inc., Entergy Gulf
States, Inc., Entergy Louisiana, Inc., Entergy Mississippi,
Inc., Entergy New Orleans, Inc., and System Energy Resources,
Inc. and their affiliated companies 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 and purchased power prices and availability,
the effects of regulatory decisions and changes in law,
litigation, capital spending requirements, the onset of
competition, including the ability to recover net regulatory
assets and other potential stranded costs, the effects of
recent developments in the California electricity market on
the utility industry nationally, advances in technology,
changes in accounting standards, corporate restructuring and
changes in capital structure, the success of new business
ventures, changes in the markets for electricity and other
energy-related commodities, changes in interest rates and in
financial and foreign currency markets generally, the
economic climate and growth in Entergy's service territories,
changes in corporate strategies, and other factors.
ENTERGY CORPORATION
Earnings at a glance
Third Quarter 2001 2000 %
Operating Revenues $2,575.74 $3,431.55 (24.9)
As Reported Earnings $ 312.48 $ 299.93 4.2
As Reported Earnings per
diluted share* $ 1.39 $ 1.34 3.7
Operational Earnings per
diluted share $ 1.24 $ 1.37 (9.5)
*Includes Special Items (EPS):
Gain (loss) on disposition $ 0.15 -
of assets - net
Regulatory & reserve - $( 0.03)
adjustments
------ -------
Total $ 0.15 $( 0.03)
====== =======
Year to Date 2001 2000 %
Operating Revenues $7,723.44 $7,380.84 4.6
As Reported Earnings $ 705.54 $ 635.99 11.4
As Reported Earnings per
diluted share* $ 3.14 $ 2.77 13.4
Operational Earnings per
diluted share $ 3.05 $ 2.80 8.9
*Includes Special Items (EPS):
Merger expenses $(0.06) $-
Gain (loss) on disposition 0.15 0.06
of assets - net
Regulatory & reserve - (0.09)
adjustments
------ ------
Total $0.09 $(0.03)
====== ======
Note - dollars in millions except per share amounts, which are actual.
Entergy Corporation
Consolidated Income Statement
Three Months Ended September 30
(in thousands)
2001 2000 % Inc/(Dec)
(unaudited)
Operating Revenues:
Domestic electric $1,986,338 $2,385,087 (16.7)
Natural gas 18,212 21,815 (16.5)
Competitive businesses 571,186 1,024,653 (44.3)
---------- ----------
Total 2,575,736 3,431,555 (24.9)
---------- ----------
Operating Expenses:
Operation and maintenance:
Fuel, fuel-related expenses,
and gas purchased for resale 925,452 794,782 16.4
Purchased power 279,060 1,158,145 (75.9)
Nuclear refueling outage expenses 24,284 18,439 31.7
Other operation and maintenance 550,339 504,379 9.1
Decommissioning (22,553) 11,505 (296.0)
Taxes other than income taxes 103,593 103,188 0.4
Depreciation and amortization 127,650 188,967 (32.4)
Other regulatory charges (credits) - net (24,621) 47,816 (151.5)
Amortization of rate deferrals 6,029 10,497 (42.6)
---------- ----------
Total 1,969,233 2,837,718 (30.6)
---------- ----------
Operating Income 606,503 593,837 2.1
---------- ----------
Other Income (Deductions):
Allowance for equity funds used during
construction 7,672 9,163 (16.3)
Gain (loss) on sales of assets - net 2,066 (284) (827.5)
Equity in earnings of unconsolidated equity affiliates 58,414 - -
Miscellaneous - net 37,643 53,873 (30.1)
---------- ----------
Total 105,795 62,752 68.6
---------- ----------
Interest and Other Charges:
Interest on long-term debt 126,670 121,464 4.3
Other interest - net 84,452 22,576 274.1
Dividends on preferred securities of subsidiaries 4,709 4,709 -
Allowance for borrowed funds used during
construction (6,287) (6,776) (7.2)
---------- ----------
Total 209,544 141,973 47.6
---------- ----------
Income Before Income Taxes 502,754 514,616 (2.3)
Income Taxes 185,300 207,927 (10.9)
---------- ----------
Consolidated Net Income 317,454 306,689 3.5
Preferred dividend requirements of subsidiaries and other 4,970 6,755 (26.4)
---------- ----------
Earnings Applicable to Common Stock $312,484 $299,934 4.2
========== ==========
Earnings Per Average Common Share:
Basic $1.41 $1.35 4.4
Diluted $1.39 $1.34 3.7
Average Number of Common Shares Outstanding:
Basic 221,675,578 222,159,091
Diluted 224,830,056 224,352,165
Entergy Corporation
Consolidated Income Statement
Nine Months Ended September 30
(in thousands)
2001 2000 % Inc/(Dec)
(unaudited)
Operating Revenues:
Domestic electric $5,849,720 $5,402,657 8.3
Natural gas 159,144 96,107 65.6
Competitive businesses 1,714,574 1,882,071 (8.9)
---------- ----------
Total 7,723,438 7,380,835 4.6
---------- ----------
Operating Expenses:
Operation and maintenance:
Fuel, fuel-related expenses,
and gas purchased for resale 3,076,932 1,756,972 75.1
Purchased power 888,835 2,030,210 (56.2)
Nuclear refueling outage expenses 64,567 53,625 20.4
Other operation and maintenance 1,469,408 1,332,012 10.3
Decommissioning (4,749) 28,611 (116.6)
Taxes other than income taxes 295,717 266,346 11.0
Depreciation and amortization 514,099 545,991 (5.8)
Other regulatory charges (credits) - net (21,075) 27,311 (177.2)
Amortization of rate deferrals 15,181 25,776 (41.1)
---------- ----------
Total 6,298,915 6,066,854 3.8
---------- ----------
Operating Income 1,424,523 1,313,981 8.4
---------- ----------
Other Income (Deductions):
Allowance for equity funds used during
construction 19,259 24,898 (22.6)
Gain (loss) on sales of assets - net 14,414 21,291 (32.3)
Equity in earnings of unconsolidated equity affiliates 153,957 - -
Miscellaneous - net 139,862 156,505 (10.6)
---------- ----------
Total 327,492 202,694 61.6
---------- ----------
Interest and Other Charges:
Interest on long-term debt 386,373 353,585 9.3
Other interest - net 183,752 66,227 177.5
Dividends on preferred securities of subsidiaries 14,128 14,128 -
Allowance for borrowed funds used during
construction (15,718) (18,753) (16.2)
---------- ----------
Total 568,535 415,187 36.9
---------- ----------
Income Before Income Taxes 1,183,480 1,101,488 7.4
Income Taxes 459,573 440,616 3.6
---------- ----------
Consolidated Net Income 723,907 660,872 10.0
Preferred dividend requirements of subsidiaries and other 18,363 24,886 (26.2)
---------- ----------
Earnings Applicable to Common Stock $705,544 $635,986 11.4
========== ==========
Earnings Per Average Common Share:
Basic $3.19 $2.78 14.7
Diluted $3.14 $2.77 13.4
Average Number of Common Shares Outstanding:
Basic 220,908,546 228,930,171
Diluted 224,780,449 230,034,859
Entergy Corporation
Consolidated Income Statement
Twelve Months Ended September 30
(in thousands)
2001 2000 % Inc/(Dec)
(unaudited)
Operating Revenues:
Domestic electric $7,666,754 $6,803,141 12.7
Natural gas 228,908 128,141 78.6
Competitive businesses 2,463,089 2,201,920 11.9
---------- ----------
Total 10,358,751 9,133,202 13.4
---------- ----------
Operating Expenses:
Operation and maintenance:
Fuel, fuel-related expenses,
and gas purchased for resale 3,965,795 2,361,791 67.9
Purchased power 1,521,506 2,282,212 (33.3)
Nuclear refueling outage expenses 81,454 73,267 11.2
Other operation and maintenance 2,038,707 1,841,880 10.7
Decommissioning 6,124 39,596 (84.5)
Taxes other than income taxes 399,716 346,480 15.4
Depreciation and amortization 714,233 721,707 (1.0)
Other regulatory charges (credits) - net (44,705) 32,111 (239.2)
Amortization of rate deferrals 19,797 33,500 (40.9)
---------- ----------
Total 8,702,627 7,732,544 12.5
---------- ----------
Operating Income 1,656,124 1,400,658 18.2
---------- ----------
Other Income (Deductions):
Allowance for equity funds used during
construction 26,383 33,553 (21.4)
Gain (loss) on sales of assets - net (27,342) 31,327 (187.3)
Equity in earnings of unconsolidated equity affiliates 153,959 - -
Miscellaneous - net 173,484 221,835 (21.8)
---------- ----------
Total 326,484 286,715 13.9
---------- ----------
Interest and Other Charges:
Interest on long-term debt 509,861 471,153 8.2
Other interest - net 203,159 90,296 125.0
Dividends on preferred securities of subsidiaries 18,838 18,838 0.0
Allowance for borrowed funds used during
construction (21,079) (24,869) (15.2)
---------- ----------
Total 710,779 555,418 28.0
---------- ----------
Income Before Income Taxes 1,271,829 1,131,955 12.4
Income Taxes 497,878 454,879 9.5
---------- ----------
Consolidated Net Income 773,951 677,076 14.3
Preferred dividend requirements of subsidiaries and other 25,098 36,808 (31.8)
---------- ----------
Earnings Applicable to Common Stock $748,853 $640,268 17.0
========== ==========
Earnings Per Average Common Share:
Basic $3.40 $2.76 23.2
Diluted $3.33 $2.75 21.1
Average Number of Common Shares Outstanding:
Basic 220,574,276 231,946,696
Diluted 224,689,451 232,790,875
Entergy Corporation
U.S. Utility Electric Energy Sales & Customers
Three Months Ended September
2001 2000 %
(Millions of kwh)
Electric Energy Sales:
Residential 10,502 11,573 (9.3)
Commercial 7,351 7,578 (3.0)
Governmental 722 744 (2.9)
Industrial 10,457 11,248 (7.0)
------ ------
Total to Ultimate Customers 29,032 31,143 (6.8)
Wholesale 2,373 2,290 3.6
------ ------
Total Sales 31,405 33,433 (6.1)
====== ======
Nine Months Ended September
2001 2000 %
(Millions of kwh)
Electric Energy Sales:
Residential 24,771 24,943 (0.7)
Commercial 18,834 18,738 0.5
Governmental 1,967 1,966 0.1
Industrial 31,478 32,886 (4.3)
------ ------
Total to Ultimate Customers 77,050 78,533 (1.9)
Wholesale 7,004 6,880 1.8
------ ------
Total Sales 84,054 85,413 (1.6)
====== ======
Twelve Months Ended September
2001 2000 %
(Millions of kwh)
Electric Energy Sales:
Residential 31,826 31,300 1.7
Commercial 24,753 24,376 1.5
Governmental 2,606 2,598 0.3
Industrial 42,548 44,095 (3.5)
------- -------
Total to Ultimate Customers 101,733 102,369 (0.6)
Wholesale 9,917 9,203 7.8
------- -------
Total Sales 111,650 111,572 0.1
======= =======
September
2001 2000 %
Electric Customers (Year to date average):
Residential 2,217,728 2,204,308 0.6
Commercial 295,823 288,473 2.5
Governmental 14,644 14,296 2.4
Industrial 41,587 42,476 (2.1)
--------- ---------
Total to Ultimate Customers 2,569,782 2,549,553 0.8
Wholesale 39 38 2.6
--------- ---------
Total Customers 2,569,821 2,549,591 0.8
========= =========