Exhibit 99.2
[Logo of Entergy] Entergy
639 Loyola Avenue
New Orleans, LA 70113
News
Release
Date: July 30, 2002
For Immediately
Release:
Contact: Yolanda Pollard (News Media)
(504) 576-4238
ypollar@entergy.com
Nancy Morovich (Investor Relations)
(504) 576-5506
nmorovi@entergy.com
Entergy Reports Record Second Quarter -
Operational Earnings Increase 10 Percent
New Orleans, La. - Entergy Corporation (NYSE:ETR) today
announced second quarter 2002 consolidated operational
earnings per share that were 10 percent higher than in the
same period of last year and set a new company record for
second quarter operational earnings per share. The 2002
increase was driven by improved results in Entergy's utility
business and its non-utility nuclear business.
On an operational basis, Entergy's earnings were $267.1
million, or $1.17 per share, in second quarter 2002, compared
with $238.9 million, or $1.06 per share, in the year-earlier
period. On an as reported basis, Entergy recorded income of
$241.7 million, or $1.06 per share, a per share amount equal
to earnings for the same period in 2001. Second quarter 2002
reported results reflected a special charge associated with
the restructuring of Entergy's wholesale power development
business, which was announced earlier this year.
"Operating results reflect the positive impact of some
strengthening in the economy in the utility's service
territory and continued strong performance in Entergy
Nuclear" said J. Wayne Leonard, Entergy's chief executive
officer. "We're delivering on the commitments we have made to
our stakeholders, and we have not allowed the disruptive
activities in the sector to distract us. Four years ago we
said we were going to deliver superior financial results by
focusing on our core competencies, providing outstanding
customer service, and maintaining sound financial integrity.
We've met, and in most instances exceeded, these goals and
we're committed to pursuing excellence with the highest level
of ethics and integrity in our business practices and safety
in our operations."
A few key highlights of the second quarter include:
- A refueling outage at Arkansas Nuclear One Unit 2 was
completed in 21 days 18 hours, a world record for this unit
design.
- In May, the Edison Electric Institute presented Entergy with
the industry's most prestigious honor, the Edison Award, for
business leadership and operational excellence in its Northeast
nuclear fleet. In June, the National Fuel Funds Network presented
the 2002 Sister Pat Kelley Achievement Award to CEO Wayne Leonard
in recognition of his achievement on behalf of low-income
families. The Kelley Award is the National Fuel Funds Network's
highest accolade.
Utility Operations
In the second quarter of 2002, as reported and
operational utility earnings were $194.9 million, or 85 cents
per share, compared with $168.5 million, or 74 cents per
share, for the same period in 2001. There were no special
items recorded at the utility in either quarter. The increase
in earnings quarter to quarter resulted primarily from higher
revenues due to increased electric sales volume, which
reflected both modest customer growth and higher usage levels
as a result of improved economic conditions. Operation and
maintenance expenses were significantly higher during second
quarter 2002 due primarily to previously deferred ice storm
costs being expensed as a result of a settlement reached with
the Arkansas Public Service Commission. After excluding the
ice storm settlement costs, operation and maintenance
expenses were modestly higher in 2002 compared to 2001 due
primarily to spending in fossil and nuclear generation.
Higher electric usage in second quarter 2002 increased
residential sales by 7 percent, compared to second quarter
2001. Commercial and governmental sales were up 3%,
reflecting increased usage across all commercial customer
classes, while industrial sales experienced a 4 percent
reduction quarter over quarter. The reduction in industrial
sales was due exclusively to the impact of contractual
modifications which reclassified certain industrial customers
from retail to wholesale. After removing the impact of the
reclassification, industrial sales reflected an increase of
1.5%, and total retail sales reflected an increase of 3.6%.
Competitive Non-Regulated Businesses
Operational earnings per share from Entergy's
competitive businesses increased by 17 percent, from 29 cents
per share, or $63.3 million, in second quarter 2001, to 34
cents per share, or $77.2 million, in second quarter 2002,
reflecting the continued strong performance in non-utility
nuclear operations.
As reported earnings for the competitive businesses
were $51.8 million, or 23 cents per share, in second quarter
2002, compared to $63.3 million, or 29 cents per share, in
the same period of 2001. Second quarter 2002 results include
a special charge totaling a negative 11 cents per share for
restructuring costs in connection with the wholesale power
development business.
Entergy Nuclear earned $53.5 million, or 24 cents per
share, in second quarter 2002, compared to $33.1 million, or
15 cents per share, in second quarter 2001. The increase was
due primarily to the contribution in 2002 of Indian Point 2,
which was acquired in September 2001, as well as higher
overall output levels due to the absence of refueling outages
in 2002.
Energy Commodity Services, which includes the combined
reporting of Entergy-Koch L.P. and Entergy's wholesale power
development business, recorded a loss of $1.7 million, or 1
cent per share, in second quarter 2002 compared to earnings
of $30.2 million, or 14 cents per share, in the same period
last year. Operational earnings were also lower in second
quarter 2002 compared to the same period in 2001: $23.7
million, or 10 cents per share, compared to $30.2 million, or
14 cents per share, due primarily to lower income from the
trading business.
Entergy-Koch Trading contributed lower operational
earnings primarily due to lower electricity volatility and
lower profitability on gas trading, compared to second
quarter 2001. The Gulf South pipeline realized higher
earnings in second quarter 2002 through slightly higher
volumes of gas transported and higher gas storage revenues as
movements in gas prices increased storage activities. Entergy
Wholesale Operations recorded a special item of negative 11
cents per share in second quarter 2002 reflecting
restructuring costs for this business.
Parent & Other
Parent & Other reported a loss per share of 2 cents in
second quarter 2002, compared with earnings of 3 cents per
share in second quarter 2001. The loss in second quarter 2002
was due primarily to lower interest income earned in 2002
resulting from lower yields on invested cash and higher
corporate expenses in the current quarter.
Outlook
"Through second quarter 2002 we continued to achieve
strong results despite nearly daily negative revelations in
our sector," said C. John Wilder, Entergy's chief financial
officer. "Our success is based on a well-developed,
integrated strategy supported by a solid, disciplined
financial plan. Our return and credit metrics and cash
position all continue to be very sound and our growth
prospects look promising. The first half of 2002 has been
very positive and we are pleased to confirm our 2002
operational earnings per share guidance at the $3.40 to $3.60
range."
Entergy Corporation, with annual revenues of nearly $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, and the availability of
capital, the onset of competition, the ability to recover net
regulatory assets and other potential stranded costs, the
effects of 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, including the use of financial and
derivative instruments and volatility of changes in market
prices, changes in the number of participants and the risk
profile of such participants in the energy marketing and
trading business, 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
Second Quarter 2002 2001 %
Operating Revenues $2,096.58 $2,506.28 (16.3)
As Reported Earnings $ 241.65 $ 238.91 1.1
As Reported Earnings per diluted share* $ 1.06 $ 1.06 -
Operational Earnings per diluted share $ 1.17 $ 1.06 10.0
*Includes Special Items (EPS):
EWO asset impairments $ (0.04) -
EWO turbine commitments 0.10 -
EWO restructuring (0.17) -
--------- -----
Total ($ 0.11) -
========= =====
Year to Date 2002 2001 %
Operating Revenues $3,957.42 $5,158.71 (23.3)
As Reported Earnings $ 162.73 $ 393.06 (58.6)
As Reported Earnings per diluted share* $ 0.72 $ 1.75 (58.9)
Operational Earnings per diluted share $ 1.98 $ 1.81 9.4
*Includes Special Items (EPS):
EWO asset impairments $ (0.48) -
EWO turbine commitments (0.52) -
EWO development costs (0.09) -
EWO restructuring (0.17) -
Merger expenses - $ (0.06)
--------- -------
Total ($ 1.26) $ (0.06)
========= =======
Note - dollars in millions except per share amounts, which are
actual.
Entergy Corporation
Consolidated Income Statement
Three Months Ended June 30
(in thousands)
2002 2001 %
Inc/(Dec)
(unaudited)
Operating Revenues:
Domestic electric $1,686,758 $1,990,838 (15.3)
Natural gas 24,982 30,548 (18.2)
Competitive businesses 384,841 484,889 (20.6)
---------- ----------
Total 2,096,581 2,506,275 (16.3)
---------- ----------
Operating Expenses:
Operation and maintenance:
Fuel, fuel-related expenses,
and gas purchased for resale 471,413 1,025,619 (54.0)
Purchased power 233,518 245,895 (5.0)
Nuclear refueling outage expenses 24,687 23,077 7.0
Provision for turbine commitments, asset impairments,
and restructuring charges 18,169 - -
Other operation and maintenance 727,017 436,110 66.7
Decommissioning 8,198 8,903 (7.9)
Taxes other than income taxes 82,194 89,662 (8.3)
Depreciation and amortization 205,876 183,372 12.3
Other regulatory charges (credits) - net (170,645) 13,088 (1,403.8)
---------- ----------
Total 1,600,427 2,025,726 (21.0)
---------- ----------
Operating Income 496,154 480,549 3.3
---------- ----------
Other Income (Deductions):
Allowance for equity funds used during construction 8,323 6,644 25.3
Gain (loss) on sales of assets - net 1,009 760 32.8
Interest and dividend income 27,710 33,595 (17.5)
Equity in earnings of unconsolidated equity affiliates 17,740 70,780 (74.9)
Miscellaneous - net (109) 432 (125.2)
---------- ----------
Total 54,673 112,211 (51.3)
---------- ----------
Interest and Other Charges:
Interest on long-term debt 121,393 130,732 (7.1)
Other interest - net 34,897 51,386 (32.1)
Dividends on preferred securities of subsidiaries 4,709 4,709 -
Allowance for borrowed funds used during construction (6,291) (5,492) 14.5
---------- ----------
Total 154,708 181,335 (14.7)
---------- ----------
Income Before Income Taxes 396,119 411,425 (3.7)
Income Taxes 148,534 165,842 (10.4)
---------- ----------
Consolidated Net Income 247,585 245,583 0.8
Preferred dividend requirements of subsidiaries and other 5,932 6,677 (11.2)
---------- ----------
Earnings Applicable to Common Stock $241,653 $238,906 1.2
========== ==========
Earnings Per Average Common Share:
Basic $1.08 $1.08 -
Diluted $1.06 $1.06 -
Average Number of Common Shares Outstanding:
Basic 224,330,654 221,113,598
Diluted 228,847,752 225,706,421
Entergy Corporation
Consolidated Income Statement
Six Months Ended June 30
(in thousands)
2002 2001 %
Inc/(Dec)
(unaudited)
Operating Revenues:
Domestic electric $3,087,767 $3,863,383 (20.1)
Natural gas 71,360 140,931 (49.4)
Competitive businesses 798,288 1,154,392 (30.9)
---------- ----------
Total 3,957,415 5,158,706 (23.3)
---------- ----------
Operating Expenses:
Operation and maintenance:
Fuel, fuel-related expenses,
and gas purchased for resale 940,274 2,151,481 (56.3)
Purchased power 403,004 609,774 (33.9)
Nuclear refueling outage expenses 49,874 40,283 23.8
Provision for turbine commitments, asset impairments,
and restructuring charges 419,542 - -
Other operation and maintenance 1,251,369 906,569 38.0
Decommissioning 16,391 17,804 (7.9)
Taxes other than income taxes 184,565 192,125 (3.9)
Depreciation and amortization 410,999 386,448 6.4
Other regulatory charges (credits) - net (169,082) 12,699 (1,431.5)
---------- ----------
Total 3,506,936 4,317,183 (18.8)
---------- ----------
Operating Income 450,479 841,523 (46.5)
---------- ----------
Other Income (Deductions):
Allowance for equity funds used during construction 15,004 11,587 29.5
Gain (loss) on sales of assets - net 1,674 1,344 24.6
Interest and dividend income 51,237 81,071 (36.8)
Equity in earnings of unconsolidated equity affiliates 92,804 95,543 (2.9)
Miscellaneous - net (11,182) 8,649 (229.3)
---------- ----------
Total 149,537 198,194 (24.6)
---------- ----------
Interest and Other Charges:
Interest on long-term debt 244,919 259,703 (5.7)
Other interest - net 60,371 99,300 (39.2)
Dividends on preferred securities of subsidiaries 9,419 9,419 -
Allowance for borrowed funds used during construction (11,930) (9,431) 26.5
---------- ----------
Total 302,779 358,991 (15.7)
---------- ----------
Income Before Income Taxes 297,237 680,726 (56.3)
Income Taxes 122,636 274,272 (55.3)
---------- ----------
Consolidated Net Income 174,601 406,454 (57.0)
Preferred dividend requirements of subsidiaries and other 11,872 13,393 (11.4)
---------- ----------
Earnings Applicable to Common Stock $162,729 $393,061 (58.6)
========== ==========
Earnings Per Average Common Share:
Basic $0.73 $1.78 (59.0)
Diluted $0.72 $1.75 (58.9)
Average Number of Common Shares Outstanding:
Basic 223,143,647 220,518,674
Diluted 227,588,889 224,749,374
Entergy Corporation
Consolidated Income Statement
Twelve Months Ended June 30
(in thousands)
2002 2001 %
Inc/(Dec)
(unaudited)
Operating Revenues:
Domestic electric $6,469,210 $8,065,500 (19.8)
Natural gas 116,330 232,511 (50.0)
Competitive businesses 1,832,919 2,926,732 (37.4)
---------- ----------
Total 8,418,459 11,224,743 (25.0)
---------- ----------
Operating Expenses:
Operation and maintenance:
Fuel, fuel-related expenses,
and gas purchased for resale 2,470,471 3,835,126 (35.6)
Purchased power 814,661 2,400,591 (66.1)
Nuclear refueling outage expenses 98,735 75,609 30.6
Provision for turbine commitments, asset impairments,
and restructuring charges 419,542 - -
Other operation and maintenance 2,496,542 2,022,748 23.4
Decommissioning 1,776 40,182 (95.6)
Taxes other than income taxes 392,290 399,310 (1.8)
Depreciation and amortization 745,583 775,549 (3.9)
Other regulatory charges (credits) - net (202,291) 51,998 (489.0)
---------- ----------
Total 7,237,309 9,601,113 (24.6)
---------- ----------
Operating Income 1,181,150 1,623,630 (27.3)
---------- ----------
Other Income (Deductions):
Allowance for equity funds used during construction 29,628 27,873 6.3
Gain (loss) on sales of assets - net 6,705 2,636 154.4
Interest and dividend income 129,970 166,415 (21.9)
Equity in earnings of unconsolidated equity affiliates 172,545 95,545 80.6
Miscellaneous - net (37,003) 10,800 (442.6)
---------- ----------
Total 301,845 303,269 (0.5)
---------- ----------
Interest and Other Charges:
Interest on long-term debt 530,136 504,654 5.0
Other interest - net 158,710 141,283 12.3
Dividends on preferred securities of subsidiaries 18,838 18,838 -
Allowance for borrowed funds used during construction (23,918) (21,567) 10.9
---------- ----------
Total 683,766 643,208 6.3
---------- ----------
Income Before Income Taxes 799,229 1,283,691 (37.7)
Income Taxes 304,056 520,505 (41.6)
---------- ----------
Income Before Cumulative Effect of an Accounting Change 495,173 763,186 (35.1)
Cumulative Effect of an Accounting Change (net of income taxes) 23,482 - -
---------- ----------
Consolidated Net Income 518,655 763,186 (32.0)
Preferred dividend requirements of subsidiaries and other 22,791 26,883 (15.2)
---------- ----------
Earnings Applicable to Common Stock $495,864 $736,303 (32.7)
========== ==========
Earnings Per Average Common Share:
Basic $2.23 $3.34 (33.2)
Diluted $2.19 $3.28 (33.2)
Average Number of Common Shares Outstanding:
Basic 222,245,970 220,696,148
Diluted 226,080,808 224,508,672
Entergy Corporation
U.S. Utility Electric Energy Sales & Customers
Three Months Ended June
2002 2001 %
(Millions of kwh)
Electric Energy Sales:
Residential 7,202 6,733 7.0
Commercial 6,112 5,908 3.5
Governmental 654 630 3.8
Industrial 10,294 10,710 (3.9)
------- -------
Total to Ultimate Customers 24,262 23,981 1.2
Wholesale 2,444 2,182 12.0
------- -------
Total Sales 26,706 26,163 2.1
======= =======
Six Months Ended June
2002 2001 %
(Millions of kwh)
Electric Energy Sales:
Residential 14,476 14,269 1.5
Commercial 11,710 11,482 2.0
Governmental 1,271 1,245 2.1
Industrial 19,884 21,022 (5.4)
------- -------
Total to Ultimate Customers 47,341 48,018 (1.4)
Wholesale 4,658 4,631 0.6
------- -------
Total Sales 51,999 52,649 (1.2)
======= =======
Twelve Months Ended June
2002 2001 %
(Millions of kwh)
Electric Energy Sales:
Residential 31,287 32,898 (4.9)
Commercial 24,926 24,980 (0.2)
Governmental 2,620 2,627 (0.3)
Industrial 40,439 43,339 (6.7)
------- -------
Total to Ultimate Customers 99,272 103,844 (4.4)
Wholesale 8,923 9,835 (9.3)
------- -------
Total Sales 108,195 113,679 (4.8)
======= =======
June
2002 2001 %
Electric Customers (Year to date average):
Residential 2,233,198 2,215,321 0.8
Commercial 300,763 294,675 2.1
Governmental 14,912 14,614 2.0
Industrial 39,455 39,538 (0.2)
--------- ---------
Total to Ultimate Customers 2,588,328 2,564,148 0.9
Wholesale 38 39 (2.6)
--------- ---------
Total Customers 2,588,366 2,564,187 0.9
========= =========