[Logo of Entergy] For further information:
Nancy Morovich, VP, Investor Relations
Phone 504/576-5506, Fax 504/576-2897
INVESTOR NEWS nmorovi@entergy.com
Exhibit 99.1
October 30, 2002
ENTERGY REPORTS RECORD THIRD QUARTER
OPERATIONAL EARNINGS and OPERATING CASH FLOW
NEW ORLEANS - Entergy Corporation reported record third quarter 2002
operational earnings of $1.50 per share compared with $1.24 in the
same period of 2001, reflecting increased contributions from both
utility operations and Entergy's non-utility nuclear business. The 21
percent increase in operational earnings in third quarter follows a
ten percent increase achieved in second quarter 2002. On an as
reported basis, Entergy reported income of $1.59 per share for third
quarter 2002, or 14 percent higher than one year ago. Third quarter
2002 reported results reflected a special item related primarily to a
gain on the sale of two development projects in Spain. Operating cash
flow for third quarter 2002 compared to the same period last year
increased $239 million to $867 million due primarily to higher net
income and lower fuel payments at utility operations and higher net
income at the non-utility nuclear business.
"Operating results reflect fundamentally strong performance across our
businesses," said J. Wayne Leonard, Entergy's chief executive officer.
"Over the past four years we made tough decisions that were necessary
to position our company to withstand some of the most severe market
conditions our industry has ever endured. While we are now realizing
some of the benefits of those decisions, there is much work left to be
done. We are committed to remaining sharply focused on operating
excellence, risk management and the execution of our investment
strategies which we believe will position us to continue delivering
superior value to all of our stakeholders."
Table 1 provides a comparative summary of earnings per share for
third quarter and year-to-date 2002.
- ---------------------------------------------------------------------
Table 1: Entergy Corporation Consolidated Results
Third Quarter and Year-to-Date 2002 vs. 2001
- ---------------------------------------------------------------------
(Per share in U.S. $)
Third Quarter Year-to-Date
2002 2001 $ 2002 2001 $
Change Change
As Reported
U.S. Utility 1.07 0.99 0.08 2.38 2.25 0.13
Parent & Other (0.02) (0.06) 0.04 (0.07) (0.07) -
Competitive Businesses 0.54 0.46 0.08 (0.01) 0.96 (0.97)
----------------------------------------
Consolidated Earnings 1.59 1.39 0.20 2.30 3.14 (0.84)
Less Special Items
U.S. Utility - - - - (0.01) 0.01
Parent & Other - - - - (0.05) 0.05
Competitive Businesses 0.09 0.15 (0.06) (1.17) 0.15 (1.32)
----------------------------------------
Total 0.09 0.15 (0.06) (1.17) 0.09 (1.26)
Operational
U.S. Utility 1.07 0.99 0.08 2.38 2.26 0.12
Parent & Other (0.02) (0.06) 0.04 (0.07) (0.02) (0.05)
Competitive Businesses 0.45 0.31 0.14 1.16 0.81 0.35
----------------------------------------
Consolidated Earnings 1.50 1.24 0.26 3.47 3.05 0.42
Weather Impact (0.04) (0.04) - (0.02) 0.01 (0.03)
- ---------------------------------------------------------------------
I. U.S. Utility
In third quarter 2002, as reported and operational utility earnings
were $1.07 per share, compared to $0.99 in third quarter 2001. The
increase in earnings quarter to quarter resulted primarily from higher
revenues due to increased sales volume reflecting both customer growth
and higher usage levels. In addition, operation and maintenance
expenses were lower during third quarter 2002 due primarily to lower
plant outage costs in fossil generation as the result of fewer forced
outages, as well as lower spending in distribution operations which
reflects the utility's ongoing efforts to aggressively manage costs.
Utility operating cash flow for third quarter 2002 compared to the
same period last year increased $124 million to $727 million due
primarily to higher net income and lower fuel payments in the 2002
period compared to third quarter 2001.
Higher electricity usage in third quarter 2002 increased residential
sales by 3 percent, compared to third quarter 2001. Commercial and
governmental sales were up 2 percent, reflecting increased usage
across all commercial customer classes, while industrial sales
experienced an increase of 4 percent quarter over quarter.
Significantly higher usage in the chemical sector, which accounts for
more than 40 percent of industrial sales, was the primary contributor
to the increase in industrial usage. The increase in sales across
retail customer classes, which totaled 3 percent, as well as the
growth in the number of customers during the quarter, demonstrates a
continuation of the economic recovery that began in second quarter
2002 across the Entergy service territory. A summary of sales volumes
by customer class is included in Appendix A to this release.
Table 2 provides a summary of the utility's key operational measures
with quarter-to-quarter and year-to-date comparisons.
- -----------------------------------------------------------------------------
Table 2: Utility Operational Performance Measures
Third Quarter and Year-to-Date 2002 vs. 2001 (see appendix C for
definitions of measures)
- -----------------------------------------------------------------------------
Third Quarter Year-to-Date
2002 2001 % 2002 2001 %
Change Change
Utility
Generation in GWh 26,635 28,081 -5% 70,364 73,365 -4%
GWh billed
Residential 10,827 10,502 3% 25,303 24,771 2%
Commercial and Gov't 8,240 8,073 2% 21,221 20,800 2%
Industrial 10,839 10,457 4% 30,770 31,478 -2%
Operation & maintenance exp. $14.01 $14.17 -1% $18.02 $14.42 25%
Reliability
SAIFI 2.10 2.12 -1%
SAIDI 161.2 164.1 -2%
Reliability complaints 58 38 53% 96 97 -1%
Safety 9 11 -18% 27 24 13%
Number of customers
Residential 2,236,611 2,217,728 1%
Commercial & Gov't 316,665 310,467 2%
Industrial 41,486 41,587 -
- -----------------------------------------------------------------------------
The utility continues to pursue the approval of rate plans and
mechanisms that provide increased certainty as to the allowable
earnings levels as well as incentives to reward operating excellence.
Appendix B provides a summary of the utility's pending regulatory
events and regulatory recovery mechanisms by operating subsidiary.
II. Parent & Other
Parent & Other recorded an as reported loss per share of $(0.02) in
third quarter 2002, compared with a loss of $(0.06) in third quarter
2001. The improved results were due primarily to higher interest
income, lower interest expenses and reduced corporate expenses in the
current quarter compared to the same period last year.
III. Competitive Businesses
As reported earnings were $0.54 per share for the competitive
businesses in third quarter 2002 compared to $0.46 in the same period
of 2001. Third quarter 2002 results include a special item totaling
$0.09 which is comprised primarily of a gain recorded on the sale of
two development projects, Castelnou and Morautu de Tajuna, in Spain.
Excluding this special item, operational earnings increased 45
percent, from $0.31 per share in third quarter 2001 to $0.45 in third
quarter 2002 primarily due to additional nuclear capacity acquired by
Entergy Nuclear. Operating cash flow at the competitive businesses
for third quarter 2002 compared to the same period last year increased
by $109 million to $131 million due primarily to higher net income
from non-utility nuclear operations in third quarter 2002 compared to
third quarter 2001.
Table 3 provides a 2002 vs. 2001 comparison of contributions by
competitive business for third quarter and year-to-date, on both as
reported and operational bases.
- ----------------------------------------------------------------------
Table 3: Competitive Businesses Contributions to Earnings Per Share
Third Quarter and Year-to-Date 2002 vs. 2001
- ----------------------------------------------------------------------
(Per share in U.S. $)
Third Quarter Year-to-Date
2002 2001 $ 2002 2001 $
Change Change
As Reported
Entergy Nuclear 0.32 0.16 0.16 0.74 0.44 0.30
--------------------------------------
Energy Commodity Services
Non-nuclear wholesale
assets 0.07 0.14 (0.07) (1.17) 0.09 (1.26)
Entergy-Koch Trading 0.12 0.12 - 0.28 0.32 (0.04)
Gulf South Pipeline 0.03 0.04 (0.01) 0.14 0.11 0.03
--------------------------------------
Total Energy Commodity 0.22 0.30 (0.08) (0.75) 0.52 (1.27)
Services
--------------------------------------
Total 0.54 0.46 0.08 (0.01) 0.96 (0.97)
Less Special Items
Entergy Nuclear - - - - - -
--------------------------------------
Energy Commodity Services
Non-nuclear wholesale
assets 0.09 0.15 (0.06) (1.17) 0.15 (1.32)
Entergy-Koch Trading - - - - - -
Gulf South Pipeline - - - - - -
--------------------------------------
Total Energy Commodity 0.09 0.15 (0.06) (1.17) 0.15 (1.32)
Services
--------------------------------------
Total 0.09 0.15 (0.06) (1.17) 0.15 (1.32)
Operational
Entergy Nuclear 0.32 0.16 0.16 0.74 0.44 0.30
--------------------------------------
Energy Commodity Services
Non-nuclear wholesale
assets (0.02)(0.01) (0.01) - (0.06) 0.06
Entergy-Koch Trading 0.12 0.12 - 0.28 0.32 (0.04)
Gulf South Pipeline 0.03 0.04 (0.01) 0.14 0.11 0.03
--------------------------------------
Total Energy Commodity 0.13 0.15 (0.02) 0.42 0.37 0.05
Services
--------------------------------------
Total 0.45 0.31 0.14 1.16 0.81 0.35
- ----------------------------------------------------------------------
Table 4 provides a summary of Entergy's non-utility generation in MWh
sold forward for the years 2002, 2003, and 2004.
- ----------------------------------------------------------------------------------------
Table 4: Competitive Businesses Percent of Generation Sold Forward
Years 2002 and 2004 (see appendix C for definitions of measures)
- ----------------------------------------------------------------------------------------
2002 2003 2004
Entergy Nuclear
Planned TWh of generation 6 33 33
Percent of total planned generation 92% 91% 91%
Percent of EN's total planned generation sold forward 100% 100% 92%
Average realizable and assumed contract price per MWh $37 $37 $38
Energy Commodity Services
Planned TWh of generation 0.6 3 3
Percent of total planned generation 8% 9% 9%
Percent of ECS' total planned generation sold forward (a) 38% 25% 17%
Average realizable contract spark spread per MWh $11 $10 $10
Average assumed market spark spread per MWh $1 $0 $0
Percent of Competitive Businesses' planned generation sold forward 95% 94% 85%
- ----------------------------------------------------------------------------------------
(a) Effective second quarter 2002, Damhead Creek, an 800 MW
gas-fired unit in the U.K., was no longer included in sold forward
table consistent with Entergy's first quarter 2002
restructuring announcement.
Entergy Nuclear
Entergy Nuclear (EN) earned $0.32 per share compared to $0.16 in third
quarter 2001. The increase was due primarily to the full quarter's
contribution in 2002 of Indian Point 2, which was acquired in
September 2001, as well as the contribution for a portion of third
quarter 2002 of Vermont Yankee, which was acquired at the end of July
2002. EN's average capacity factor was 96.8 percent for third quarter
2002 as compared to 97.5 percent for the same period in 2001. The
earnings contributions in third quarter 2002 from Indian Point 2, and
to a lesser extent Vermont Yankee, were the primary reasons for the
increase of $73 million in operating cash flow at EN this quarter
compared to the same period last year.
EN continues to achieve excellent operational performance. EN
expanded its production capacity by 15 percent and its output by 38
percent quarter over quarter. Average production costs increased
quarter to quarter due primarily to the inclusion of amortized
refueling outage costs in 2002 for the Pilgrim and Indian Point 3
units. Currently, EN has sold 100 percent of the output of its
generating assets, excluding any uprated capacity, through the end of
2003 at prices that range from $29 to $49 per megawatt hour.
Table 5 provides a summary of Entergy Nuclear's key operational
measures with quarter-to-quarter and year-to-date comparisons.
- ----------------------------------------------------------------------
Table 5: Entergy Nuclear Operational Performance Measures
Third Quarter and Year-to-Date 2002 vs. 2001 (see appendix C
for definitions of measures)
- ----------------------------------------------------------------------
Third Quarter Year-to-Date
2002 2001 % 2002 2001 %
Change Change
Entergy Nuclear
Net MW in operation 3,955 3,445 15%
Average realized price 42.59 34.62 23%
per MWh
Production cost per MWh 18.49 17.06 8% 18.27 17.24 6%
Generation in GWh 8,152 5,887 38% 23,110 15,354 51%
Capacity factor 96.8% 97.5% -1% 98.5% 91.5% 7.7%
Refueling outage duration
No refueling outages completed during the quarter
- ----------------------------------------------------------------------
Energy Commodity Services
Energy Commodity Services (ECS) includes earnings contributions from
Entergy-Koch L.P. and Entergy's non-nuclear wholesale assets. ECS
recorded earnings of $0.22 per share in third quarter 2002 compared to
earnings of $0.30 in the same period last year. The lower earnings
reported in 2002 compared to last year is due primarily to the impact
of special items in each period as detailed in Table 10. Operational
earnings in third quarter 2002 were $0.13 compared to $0.15 in the
same period of 2001, with both quarters' earnings coming primarily
from solid performance in the energy trading business. As was the
case in the first two quarters of 2002, the income sharing mechanisms
that are part of the Entergy-Koch partnership agreement allocated
substantially all of the partnership's income to Entergy in the third
quarter of this year.
Entergy-Koch L.P. contributed slightly lower operational earnings in
third quarter 2002 compared to the same period in 2001 primarily as a
result of lower volumes of gas transported and higher production costs
at Gulf South Pipeline. Earnings from Entergy-Koch's trading
operations, EKT, were flat compared to prior year. Volumes of gas and
electricity traded in third quarter 2002 were both up over 20 percent
compared to third quarter 2001. Current quarter energy trading
results showed marked improvement when compared to second quarter 2002
results. This improvement resulted from improved liquidity in the
market during the period, following months when many competitors were
exiting the trading business, causing market prices to disconnect from
market fundamentals. In addition, EKT was successful in obtaining new
physical optimization customers representing approximately 11 billion
cubic feet of gas storage, and its customer-based derivative activity
continued to improve, showing a year to date increase of 80 percent
based on notional trade value.
Consistent with EKT's rigorous risk management practices and trading
discipline, average daily Earnings at Risk during the third quarter
was $11 million and the duration of the trading book remained
relatively short, with 82 percent of the mark to market value
converting to cash by the end of 2003. Further, 80 percent of the
total market value of EKT's mark to market portfolio is based on
actively quoted prices and approximately 81 percent of EKT's
counterparty credit exposure is associated with companies that
currently have investment grade credit ratings. Lastly, mark to
market earnings comprised just 8 percent of Entergy's consolidated
operational earnings for third quarter 2002.
A special item of $0.09 per share was recorded at Entergy's non-
nuclear wholesale assets business. This special item consists
primarily of the gain on the sale of two development projects in
Spain.
Table 6 provides a summary of Energy Commodity Services' key
operational measures with quarter-to-quarter and year-to-date
comparisons.
- ----------------------------------------------------------------------
Table 6: Energy Commodity Services Operational Performance Measures
Third Quarter and Year-to-Date 2002 vs. 2001 (see appendix C
for definitions of measures)
- ----------------------------------------------------------------------
Third Quarter Year-to-Date
2002 2001 % 2002 2001 %
Change Change
Entergy-Koch Trading
Electricity volatility 57% 75% -24% 50% 88% -43%
Gas volatility 58% 69% -16% 64% 69% -7%
Electricity marketed (GWh) 29,982 24,873 21% 96,643 82,268 17%
Gas marketed (Bcf/d) 1.6 1.3 23% 1.8 1.5 20%
Gain/loss days 2.0 3.3 -39% 1.9 3.0 -37%
Daily average Earnings
at Risk 11.4 6.2 84% 10.0 6.8 47%
Gulf South Pipeline
Throughput 2.27 2.56 -11% 2.40 2.43 -1%
Miles of pipeline 8,800 8,800 -
Storage capacity (Bcf) 68 68 -
Production cost $0.096 $0.088 9% $0.088 $0.091 -3%
Non-Nuclear Wholesale Assets
Net MW in operation(b) 1,209 2,330 -48%
Generation in GWh 274 240 14%
Average realized price
per MWh 49 35 40%
Net MW under construction 597 373 60%
- ----------------------------------------------------------------------
(b) Effective second quarter 2002, Damhead Creek, an 800 MW gas-fired
unit in the U.K., was no longer included in net MW in operation
consistent with Entergy's first quarter 2002 restructuring
announcement.
Table 7 provides a summary of Entergy-Koch's mark-to-
market impact with quarter-to-quarter comparisons.
- ------------------------------------------------------------------------------
Table 7: Entergy-Koch Mark-to-Market Detail
Third Quarter 2002 vs. 2001 (see appendix C for definitions of measures)
- ------------------------------------------------------------------------------
Third Quarter
2002 2001 % Change
Earnings
Entergy Koch's mark-to-market earnings as
percent of Entergy's consolidated earnings 8% 10% -20%
Balance Sheet ($ in millions)
Mark-to-market accounting detail:
Open equity at end of period 115 113 2%
Partners' Capital 1,149 1,002 15%
Open equity as percent of partners' capital 10% 11% -9%
End of Year
2002 2003 2004-2005
Cash Realization ------------------------
Cumulative percentage of mark-to-market realization 2% 82% 100%
- ------------------------------------------------------------------------------
IV. Variance Analysis
Table 8 below and table 9 on the following page provide third quarter
and year-to-date 2002 vs. 2001 reported earnings variance analyses for
"U.S. Utility, Parent & Other," "Competitive Businesses," and
"Consolidated."
- -------------------------------------------------------------------------------
Table 8: Entergy Corporation Reported Earnings Per Share Variance Analysis
Third Quarter 2002 vs. 2001
- -------------------------------------------------------------------------------
(Per share in U.S. $, sorted in consolidated column, most to least
favorable)
U.S.
Utility,
Parent & Competitive
Other Businesses Consolidated
2001 earnings 0.93 0.46 1.39
Net revenue 0.28 (c) 0.15 (d) 0.43
Interest expense and other charges 0.16 (e) (0.01) 0.15
Asset impairments and restructuring
charges - 0.09 (q) 0.09
Other income (deductions) 0.04 (f) (0.02) 0.02
Taxes other than income taxes (0.01) - (0.01)
Share repurchase/dilution effect (0.01) - (0.01)
Other operation & maintenance expense 0.07 (g) (0.10) (h) (0.03)
Interest and dividend income (0.05) (i) (0.01) (0.06)
Income taxes - other (0.05) (j) (0.01) (0.06)
Decommissioning expense (0.08) (k) - (0.08)
Depreciation/amortization expense (0.23) (l) (0.01) (0.24)
----- ----- -----
2002 earnings 1.05 0.54 1.59
----- ----- -----
- ------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
Table 9: Entergy Corporation Reported Earnings Per Share Variance Analysis
Year-to-Date 2002 vs. 2001
- -------------------------------------------------------------------------------
(Per share in U.S. $, sorted in consolidated column, most to least
favorable)
U.S.
Utility,
Parent & Competitive
Other (a) Businesses Consolidated
2001 earnings 2.18 0.96 3.14
Net revenue 0.89 (c) 0.62 (d) 1.51
Interest expense and other charges 0.30 (e) - 0.30
Income taxes - other (0.03) (j) 0.08 (j) 0.05
Taxes other than income taxes 0.03 (m) (0.02) 0.01
Nuclear refueling outage expense 0.02 (0.04) (n) (0.02)
Share repurchase/dilution effect (0.03) - (0.03)
Other income (deductions) 0.06 (f) (0.10) (o) (0.04)
Decommissioning expense (0.08) (k) - (0.08)
Interest and dividend income (0.14) (i) - (0.14)
Depreciation/amortization expense (0.28) (l) (0.02) (0.30)
Other operation & maintenance expense (0.61) (p) (0.32) (h) (0.93)
Asset impairments and restructuring
charges - (1.17) (q) (1.17)
----- ----- -----
2002 earnings 2.31 (0.01) 2.30
----- ----- -----
- -------------------------------------------------------------------------------
(c) Net revenue increased in third quarter 2002 due primarily to
the absence of the impact of the Federal Energy Regulatory
Commission order issued in third quarter 2001, resolving
a rate application made by System Energy Resources, Inc., which
reduced net revenues in that period. Also, higher sales volumes
reflecting continued economic recovery positively impacted net
revenues in third quarter 2002. For the year-to-date period,
net revenues were favorably impacted by the recording in
current revenue the previously deferred revenues at Entergy
Arkansas per the Transition Cost Account mechanism. The
ice storm settlement with the Arkansas Public Service Commission
authorized previously deferred amounts to be recorded as revenue.
In addition, net revenue for the year-to-date period increased
due to the impact of higher sales volumes noted above. Also,
fluctuations in fuel prices that positively impacted unbilled
revenue for the year-to-date period led to higher net revenue.
This impact is included in Other on the Net Revenue Analysis.
Utility Net Revenue Variance Analysis, 2002 vs. 2001 ($ EPS)
Third Quarter Year-to-Date
Weather - Weather (0.03)
Regulatory settlements 0.02 Regulatory settlements 0.51
SERI refund 0.18 SERI refund 0.18
Sales growth/pricing 0.07 Sales growth/pricing 0.12
Other 0.01 Other 0.11
Total 0.28 Total 0.89
(d) Net revenue increased primarily as a result of the inclusion of
operations of Indian Point 2 which was acquired in September 2001 and
Vermont Yankee, acquired July 31, 2002.
(e) Interest expense & other charges decreased due to the prior year's
recording of the effects of the FERC order addressing System Energy
Resources, Inc.'s 1995 rate application, as well as decreases due to
the retirement and refinancing of long-term debt and the absence of
interest expense in 2002 on System Energy's reserve for rate refund
which was finalized in late 2001.
(f) Other income (deductions) increased due primarily to the
suspension of any goodwill amortization in accordance with new
accounting rules.
(g) Other operation & maintenance expense decreased primarily due to
lower fossil generation expenses offset by higher nuclear expenses
resulting primarily from recording radwaste disposal liabilities.
(h) Other operation & maintenance expense increased due primarily to
the inclusion of operations of Indian Point 2 and Vermont Yankee
partially offset by lower expenses in Entergy's non-nuclear wholesale
assets business.
(i) Interest and dividend income decreased due to recording in the
prior year the effects of the FERC order addressing System Energy's
1995 rate application. The year-to-date period also included the
impact of lower interest income earned as a result of declining
deferred fuel balances on which interest is accrued.
(j) Income statement line items are tax effected at the statutory
rate. Any difference between the statutory and effective tax rate is
reflected in the "Income taxes-other" line.
(k) Decommissioning expense increased due primarily to recording the
effects of the FERC order addressing System Energy's 1995 rate
application in third quarter 2001.
(l) Depreciation expense increased primarily as a result of recording
the effects of the FERC order addressing System Energy's 1995 rate
application in third quarter 2001.
(m) Taxes other than income taxes decreased due primarily to the
elimination of Entergy Louisiana's franchise tax reserve associated
with capital leases in accordance with a recent state court finding.
(n) Nuclear refueling outage expense increased due to initiating
amortization of this cost in June 2001 for Pilgrim and Indian Point 3.
(o) Other income (deductions) decreased due primarily to the absence
in 2002 of liquidated damages from Damhead Creek plant and lower
equity earnings from affiliates, primarily Entergy-Koch.
(p) Other operation & maintenance expense increased due primarily to
Entergy Arkansas' ice storm settlement, prior year's reversal of
Entergy Arkansas' storm damage expenses, and higher nuclear operation
expenses combined with lower nuclear insurance program distributions.
Overall expenses were partially offset by no merger related expenses
in 2002.
(q) Asset impairments and restructuring charges reflect the impact of
recording the costs of restructuring the non-nuclear wholesale assets
business.
Table 10 lists special items by business with quarter-to-quarter and year-
to-date comparisons. Special items are those events that are not routine,
related to prior periods, or related to discontinued operations.
- -----------------------------------------------------------------------------
Table 10: Entergy Corporation Special Items [shown as positive / (negative)
impact on earnings]
Third Quarter and Year-to-Date 2002 vs. 2001
- -----------------------------------------------------------------------------
(Per share in U.S. $)
Third Quarter Year-to-Date
2002 2001 $ 2002 2001 $
Change Change
U.S. Utility Special Items
Merger expenses - - - - (0.01) 0.01
-----------------------------------------
Parent & Other Special Items
Merger expenses - - - - (0.05) 0.05
-----------------------------------------
Competitive Businesses Special Items
Energy Commodity Services -
Gain on disposition of assets 0.09 0.15 (0.06) 0.09 0.15 (0.06)
Asset impairments - - - (0.48) - (0.48)
Turbine commitment - - - (0.52) - (0.52)
Development costs - - - (0.09) - (0.09)
Restructuring - - - (0.17) - (0.17)
-----------------------------------------
Total 0.09 0.15 (0.06) (1.17) 0.15 (1.32)
-----------------------------------------
Total Special Items 0.09 0.15 (0.06) (1.17) 0.09 (1.26)
- -----------------------------------------------------------------------------
V. Other Financial Performance Highlights
Entergy generated $867 million in operating cash in third quarter
2002, a significant increase of 38 percent compared to third quarter
2001. At the end of third quarter 2002, Entergy had approximately
$949 million of cash and cash equivalents.
Operational net margin was 9.9 percent, its highest level in more than
six years and the fifth consecutive quarter of improvement. Return on
equity increased to 10.8 percent for the eighth consecutive quarter of
improvement.
The capital structure ratio remains within Entergy's target range of
45 to 50 percent with a net debt ratio of under 48 percent. The
current level of cash along with significant borrowing capacity
continues to provide considerable financial flexibility to Entergy.
The off-balance sheet debt, exclusive of operating leases, equals just
$325 million and constitutes about 2 percent of total capitalization.
Table 11 provides a summary of financial measures with quarter-to-
quarter and year-to-date comparisons.
Table 11 provides a summary of financial measures with quarter-to-quarter
and year-to-date comparisons.
- ----------------------------------------------------------------------
Table 11: Entergy Corporation Key Financial Performance Measures
Third Quarter and Year-to-Date 2002 vs. 2001 (see appendix C for
definitions of measures)
- ----------------------------------------------------------------------
Third Quarter Year-to-Date
2002 2001 Change 2002 2001 Change
For 3 months ending September 30
Operating cash flow ($ millions) 867 628 239 1,670 1,229 441
Operating cash flow per share ($) 3.82 2.79 1.03 7.34 5.47 1.87
For 12 months ending September 30 2002 2001 Change
Return on average invested capital 7.27% 7.44% (0.17)%
Return on average common equity 10.82% 10.38% 0.44%
Net margin - operational 9.94% 7.34% 2.6%
FFO interest coverage 5.12 3.96 1.16
Book value per share 35.18 33.97 1.21
End of period shares outstanding (millions) 222.3 221.0 1.3
As of September 30 ($ millions) 2002 2001 Change
Revolver capacity 823 378 445
Total gross liquidity 1,772 1,279 493
Total debt 8,081 8,738 (657)
Off-balance sheet liabilities:
Project debt - 211 (211)
Debt on joint ventures-Entergy's share 325 344 (19)
Leases-Entergy's share 395 398 (3)
----------------------
Total off-balance sheet liabilities 720 953 (233)
Rating or other contingent liabilities - 14 (14)
Net debt to net capital 47.6% 50.6% (3.0)%
Net debt including off-balance
sheet liabilities 49.8% 53.1% (3.3)%
- ----------------------------------------------------------------------
Cash and Liquidity
At the end of third quarter 2002, Entergy's combined cash balance and
unused capacity on bank revolvers was $1.77 billion. Entergy's
current refinancing plan calls for a significant portion of the $1.2
billion of utility debt which matures through 2003 to be refinanced in
advance, with $809 million planned to be refinanced on an accelerated
basis prior to year-end 2002. Utility debt makes up approximately 75
percent of Entergy's current debt structure. Entergy's $1.45 billion
corporate revolver, $735 million of which was undrawn at September 30,
2002, has a stated termination date of May 14, 2003, but can be
extended to a one year note at Entergy's discretion through a "term
out" provision. Entergy's liquidity averages approximately $2 billion
through 2004 assuming the corporate revolver is renewed or termed out.
In addition, Entergy has numerous liquidity levers that could
potentially generate more than $1 billion of additional liquidity
should it be required. These levers include the issuance of Entergy
Corporation term debt, reduced capital and operation and maintenance
spending and increasing net debt at the Utility.
Table 12 provides a summary of liquidity sources and uses from September 30,
2002 through December 31, 2004.
- ---------------------------------------------------------------------------
Table 12: Entergy Corporation Liquidity-Sources and Uses Through 2004
($ in billions)
- ---------------------------------------------------------------------------
From From From
9/30/2002 9/30/2002 9/30/2002
through through through
12/31/2002 12/31/2003 12/31/2004
Cash 0.9 0.9 0.9
Entergy Corp. credit revolver
- unused portion 0.7 0.7 0.7
Operating cash flow 0.5 2.2 4.2
Planned refinancing 0.9 1.5 1.9
-----------------------------
Total liquidity sources 3.0 5.3 7.7
Debt maturities 0.1 1.5 2.6
Capital expenditures 0.4 1.5 2.6
Dividends 0.1 0.3 0.7
-----------------------------
Total liquidity uses 0.6 3.3 5.9
-----------------------------
Net liquidity 2.4 2.0 1.8
- ---------------------------------------------------------------------------
Debt Refinancing
In anticipation of the utility's transition to competition which was
previously expected to occur in the 2003-2004 timeframe, Entergy
executed a capital formation plan in recent years that included
maturities of utility debt consistent with such timeframe. Given the
continuing delay in competition across nearly all of Entergy's
jurisdictions, the company currently expects to refinance maturing
utility debt for periods up to 30 years, consistent with the long
term nature of utility assets.
Table 13 provides details on Entergy's debt maturities and refinancing
schedule.
- ---------------------------------------------------------------------------
Table 13: Entergy Corporation and Subsidiaries Debt Maturity and
Refinancing Schedule (r)
($ in millions)
- ---------------------------------------------------------------------------
Maturities 4Q 2002 2003 2004-2007 2008-2011 2012+
----------------------------------------------
U. S. Utility 15 1,197 1,482 511 3,008
Parent - - 775 - -
Entergy Nuclear 108 113 402 85 53
Energy Commodity Services - 83 - - 488
----------------------------------------------
Total 123 1,393 2,659 596 3,549
Planned Refinancings through 2003
U. S. Utility 809 566
Parent - -
Entergy Nuclear - -
Energy Commodity Services 83 -
---------------
Total 892 566
- ---------------------------------------------------------------------------
(r) Long-term debt, including current portion.
Capital Expenditures
Entergy will continue to invest both in its core utility and wholesale
energy businesses and in growth opportunities aimed at expanding and
leveraging the advantages offered by its integrated business strategy.
The expenditures below reflect capital associated with maintenance,
fuel procurement, nuclear power uprates, turbine contract cancellation
costs as well as investments in growth opportunities in Entergy's
competitive businesses.
Table 14 provides a summary of planned capital expenditures for the
period 2002 through 2004.
- ---------------------------------------------------------------------------
Table 14: Entergy Corporation Planned Capital Expenditures 2002-2004
($ in billions)
- ---------------------------------------------------------------------------
2002 2003 2004 Total
------------------------------
Maintenance capital
U. S. Utility 1.0 0.9 0.9 2.8
Entergy Nuclear 0.2 0.2 0.1 0.5
Energy Commodity Services - - - -
-------------------------------
Subtotal 1.2 1.1 1.0 3.3
-------------------------------
Other capital commitments
U. S. Utility - - - -
Entergy Nuclear 0.2 - - 0.2
Energy Commodity Services 0.3 - 0.1 0.4
-------------------------------
Subtotal 0.5 - 0.1 0.6
-------------------------------
Total Planned Capital 1.7 1.1 1.1 3.9
Expenditures
- ---------------------------------------------------------------------------
Cash Sources and Uses
Entergy expects to have a significant amount of cash available for
investment through the period 2004 primarily as a result of its
existing strong cash position together with solid operating cash flow
over this period.
Table 15 provides a summary of projected sources and uses of cash for
the years 2002 through 2004 in accordance with Entergy's 2002
financial plan as disclosed in the 2001 Form 10-K.
- ---------------------------------------------------------------------------
Table 15: Entergy Corporation Projected Sources and Uses of Cash
Years 2002-2004
($ in billions)
- ---------------------------------------------------------------------------
2002-2004
Sources of cash
Beginning cash 1/1/02 0.8
Operating cash flow
Net income 2.3
Depr. & amort. 2.7
Other 0.5
Total operating cash flow 5.5
Additional debt capacity (50/50 capital structure) 1.4
----
Total cash available 7.7
Less maintenance capital expenditures 3.3
Less dividends 0.9
Less investment commitment (s) 0.6
----
Cash available for investment 2.9
- ---------------------------------------------------------------------------
(s) Includes turbine contract cancellation costs.
VI. Earnings Guidance
"Continued emphasis on operating excellence supported by a solid
financial plan produced another quarter of very positive results,"
said C. John Wilder, Entergy's chief financial officer. "The first
nine months of 2002 produced many challenges for Entergy and the
results we've achieved in an extremely tough market provide evidence
that our business fundamentals are sound and our strategic initiatives
are on track. The benefits of disproportionate sharing of profit from
the Entergy-Koch venture, $0.14 in earnings per share through third
quarter, slightly offset by the year-to-date impact of unfavorable
weather, supports increasing our operational earnings per share
guidance to the $3.60 to $3.70 range for full year 2002."
Entergy's 2002 earnings guidance is detailed in Table 16. Key
assumptions reflected in the earnings ranges are as follows:
- - Approximately 70 percent of 2002 earnings are expected from the
utility. Earnings guidance is based on existing rate plans and fuel
recovery mechanisms. The incremental increase expected in 2002 is the
result of modest sales growth and operational improvements, the full
impact of the cessation of goodwill amortization, and the assumption
of a normal level of allocated tax benefits from Parent.
- - More than 20 percent of earnings are expected from Entergy Nuclear,
where prices are set by power purchase agreements that cover 100
percent of the megawatt hours generated. The increase in nuclear
earnings is expected to be provided by: a full-year's contribution at
Indian Point 2; the addition of Vermont Yankee, which was acquired on
July 31, 2002; and increased pricing of power sold under the power
purchase agreement at Pilgrim. The capacity factor assumption for the
overall fleet is 90 to 93 percent, and Fall 2002 refueling outages are
reflected at FitzPatrick, Indian Point 2 and Vermont Yankee.
- - Energy Commodity Services' guidance is based on a full year's
contribution from Entergy-Koch with Entergy receiving substantially
all of the partnership income for the first three quarters of 2002,
(based on actual amounts received from a disproportionate sharing
arrangement), and a 50% share of income in fourth quarter, consistent
with Entergy's economic ownership. In addition, guidance reflects
adjustments for no earnings impact from Damhead Creek consistent with
Entergy's decision in first quarter 2002 to write-off its equity
investment in the plant. Finally, guidance reflects the continued
impact of depressed spark spreads on Entergy's remaining non-nuclear
wholesale assets.
- - Parent & Other's guidance is adjusted for a normal level of
allocated tax benefits, as well as reduced levels of interest income
due to lower investment balances.
Table 16 provides Entergy's projection of 2002 operational earnings
per share with 2001 operational earnings as its data starting point.
- -------------------------------------------------------------------------------------------
Table 16: 2002 Earnings Per Share Guidance
- -------------------------------------------------------------------------------------------
(Per share in US $)
2001 2002 Guidance
Operational Changes in 2002 Range
Range of Impact
Utility excluding weather Operational improvement & other 0.08 0.10
Weather impact (0.02) (0.02)
Allocation of parent's tax
benefits (0.08) (0.08)
Suspension of goodwill
amortization 0.07 0.07
------------
2.46 Total 0.05 0.07 2.51 2.53
Entergy Nuclear Indian Point 2 (full year) /
Vermont Yankee (partial year,
including outage) 0.13 0.14
Increased revenue due to
Pilgrim PPA 0.05 0.06
Capacity factor normalization/
outage differences 0.05 0.06
------------
0.57 Total 0.23 0.26 0.80 0.83
Entergy Commodity Entergy-Koch (first quarter
Services through third quarter 2002
based on actual disproportionate
sharing of income; fourth
quarter based on 50/50
sharing) 0.07 0.10
No Saltend operating losses
and no Damhead Creek
liquidated damages income 0.05 0.05
Non-nuclear wholesale assets
(post-restructuring) (0.06) (0.06)
------------
0.38 Total 0.06 0.09 0.44 0.47
Parent & Other Allocation of parent's tax
benefits 0.10 0.10
Other corporate expenses (0.01) -
Net interest income/(expense) (0.06) (0.05)
------------
(0.18) Total 0.03 0.05 (0.15) (0.13)
-----------------------------------------------------------------
Total 3.23 0.37 0.47 3.60 3.70
- -------------------------------------------------------------------------------------------
Entergy's 2002 operational earnings guidance with September 2002 year-
to-date actual results as its starting point is detailed in Table 17
below. This table reflects the projected earnings contributions for
each of Entergy's businesses for the remainder of 2002.
- -------------------------------------------------------------------------------
Table 17: 2002 Earnings Per Share Guidance Based on September 2002 Year-To-Date
Earnings
- -------------------------------------------------------------------------------
(Per share in US $)
September 2002
Year-To- 2002 Guidance
Date October-December 2002 Range
Range of Impact
Utility excluding Base operations (normal
weather weather) 0.12 0.14
Suspension of goodwill
amortization 0.01 0.01
------------
2.38 Total 0.13 0.15 2.51 2.53
Entergy Nuclear Pilgrim, IP3, Fitzpatrick,
IP2, Vermont Yankee (98%
non-outage capacity factor) 0.17 0.17
IP2, FitzPatrick, and Vermont
Yankee refueling outage
impact (0.11) (0.08)
------------
0.74 Total 0.06 0.09 0.80 0.83
Entergy Commodity Entergy-Koch (fourth quarter at
Services 50% sharing) 0.04 0.06
Non-nuclear wholesale assets
(post-restructuring) and lower
project income (0.02) (0.01)
------------
0.42 Total 0.02 0.05 0.44 0.47
Parent & Other Net interest income/(expense) (0.03) (0.02)
Other corporate expenses (0.05) (0.04)
------------
(0.07) Total (0.08) (0.06) (0.15) (0.13)
-----------------------------------------------------------------
Total 3.47 0.13 0.23 3.60 3.70
- -----------------------------------------------------------------------------------------
Entergy's 2003 earnings guidance is detailed in Table 18. Key
assumptions reflected in the earnings ranges are as follows:
- - Approximately 70 percent of 2003 earnings are expected from the
utility. Earnings guidance is based on existing rate plans for all
utility operating subsidiaries with the exception of Entergy
Mississippi and Entergy New Orleans, where increased earnings are
assumed based on pending rate filings, as discussed in Appendix B.
Current fuel recovery mechanisms are assumed for all companies.
Incremental earnings expected in 2003 are also the result of modest
rate base increases earning returns in the 11-12% range with a full-
year impact of 2002 rate actions in Arkansas and Mississippi as well
as some increase in overall sales growth.
- - More than 20 percent of earnings are expected from Entergy Nuclear,
where prices set by power purchase agreements will average $37/MWh.
Increases will result from the full year impact of Vermont Yankee, and
reduced overall operating costs. Capacity factor assumption for the
fleet ranges from 93 to 95 percent. Spring 2003 refueling outages are
assumed at the Pilgrim and Indian Point 3 units.
- - Energy Commodity Services' guidance is based on contributions from
Entergy-Koch at a 50 percent sharing of income, consistent with
Entergy's ownership share. Modest growth in trading, and pipeline,
along with savings from the restructured non-nuclear wholesale assets
business, will add to earnings at ECS.
- - Parent & Other's guidance is based on corporate expenses estimated
at approximately $30 million partially offset by interest income on
invested cash.
Table 18 provides Entergy's projection of 2003 operational earnings
per share with 2002 operational earnings guidance mid-point as its
data starting point.
- -------------------------------------------------------------------------------
Table 18: 2003 Earnings Per Share Guidance
- -------------------------------------------------------------------------------
(Per share in US $)
2002 Guidance 2003 Guidance
Mid-Pt. Changes in 2003 Range
Range of Impact
Utility excluding weather Operational improvements
and revenues enhancements 0.04 0.07
Normal sales growth 0.09 0.11
----- -----
2.52 Total 0.13 0.18 2.65 2.70
Entergy Nuclear Increased generation and
lower PPA price 0.04 0.06
Increased outage
amortization expense (0.08) (0.08)
Lower production cost/
other 0.07 0.10
----- -----
0.82 Total 0.03 0.08 0.85 0.90
Entergy Commodity Commodity trading
Services growth 0.01 0.03
Pipeline growth - 0.01
Entergy-Koch year-to-date
2002 disproportionate
sharing (0.14) (0.14)
Reduced overhead/non-nuclear
wholesale assets restructuring/
other 0.03 0.05
----- -----
0.45 Total (0.10) (0.05) 0.35 0.40
Parent & Other Net interest income/(expense) 0.03 0.05
Reduced corporate expense/
retail earnings 0.01 0.04
----- -----
(0.14) Total 0.04 0.09 (0.10) (0.05)
-------------------------------------------------------------------------
Total 3.65 0.10 0.30 3.75 3.95
- ---------------------------------------------------------------------------------------------------
Entergy anticipates growing earnings at an average annual rate of 8 to
10 percent beyond 2003 and has acknowledged that such growth is
achievable only if new investments can be made over the next several
years. Entergy continues to remain confident that investment
opportunities will be available and as such believes the targeted
level of earnings growth is achievable beyond 2003.
Appendix A provides details of kwh sales and customer statistics for
the Utility.
Appendix A: Utility Electric Energy Sales & Customers
Three Months Ended September
% Weather
2002 2001 % Adjusted
(Millions of kwh)
ELECTRIC ENERGY SALES:
Residential 10,827 10,502 3.1 3.1
Commercial 7,509 7,351 2.1 1.6
Governmental 731 722 1.2 (0.1)
Industrial 10,839 10,457 3.7 3.7
--------------
Total to Ultimate Customers 29,906 29,032 3.0 2.9
Wholesale 2,823 2,373 19.0
--------------
Total Sales 32,729 31,405 4.2
==============
Year to Date September
2002 2001 %
(Millions of kwh)
ELECTRIC ENERGY SALES:
Residential 25,303 24,771 2.1
Commercial 19,219 18,834 2.0
Governmental 2,002 1,967 1.8
Industrial 30,770 31,478 (2.2)
--------------
Total to Ultimate Customers 77,294 77,050 0.3
Wholesale 7,480 7,004 6.8
--------------
Total Sales 84,774 84,054 0.9
==============
Twelve Months Ended September
2002 2001 %
(Millions of kwh)
Electric Energy Sales:
Residential 31,612 31,826 (0.7)
Commercial 25,091 24,753 1.4
Governmental 2,628 2,606 0.8
Industrial 40,869 42,548 (3.9)
-------- -------
Total to Ultimate Customers 100,200 101,733 (1.5)
Wholesale 9,372 9,917 (5.5)
-------- -------
Total Sales 109,572 111,650 (1.9)
======== ========
September
2002 2001 %
Electric Customers (Year to date average):
Residential 2,236,611 2,217,728 0.9
Commercial 301,737 295,823 2.0
Governmental 14,928 14,644 1.9
Industrial 41,486 41,587 (0.2)
---------- ----------
Total to Ultimate Customers 2,594,762 2,569,782 1.0
Wholesale 40 39 2.6
---------- ----------
Total Customers 2,594,802 2,569,821 1.0
========== ==========
Appendix B provides a summary of the utility's pending regulatory
events and regulatory recovery mechanisms by operating subsidiary.
Appendix B: Utility Regulatory Summary Table
Third Quarter 2002
Company Allowed Pending Cases/Events Fuel Recovery
ROE Mechanism
Entergy 11.0% No cases pending. Annual reset based
Arkansas TCA mechanism expired on prior year's
on 12/31/01. cost
Entergy Gulf 10.95% Base rates frozen Fuel Factor with
States - TX since Settlement semi-annual reset
order issued in June based on gas
1999. Freeze will prices. Surcharge
likely extend to at and refund material
least January 2004, under- and over-
current earliest recoveries semi-
expected date for annually based on
retail open access. actual cost.
Entergy Gulf 11.1% Awaiting an Monthly reset with
States - LA administrative law 60 day lag based on
judge's prior two months
recommendation in the actual fuel and
8th earnings review purchased power
(2001). Also, the costs plus 1/12 of
2002 revenue review unrecovered fuel
(9th) and prospective balance.
revenue study are
currently pending
before commission
with hearings set for
July 2003. In
conjunction with
commission staff,
EGSI is pursuing a
formula rate plan
proposal that could
be in place in 2003.
Entergy 9.7%- Settlement approved Monthly reset with
Louisiana 11.3%(t) by LPSC in July 2002 60 day lag based on
covering the fifth prior two months
and sixth annual rate actual fuel and
reviews and future purchased power
rate regulation. costs plus 1/12 of
Included small rate unrecovered fuel
reduction and balance.
reaffirmed ROE
midpoint of 10.5%.
ELI will work with
the LPSC on
developing a formula
rate plan and neither
party will initiate a
base rate proceeding
prior to January
2003. If by June 30,
2003, the parties are
not able to agree on
a formula rate plan,
and no base rate
proceeding has been
filed, ELI would be
required to file a
revenue analysis with
the commission.
Entergy 8.82%- Annual formula rate Quarterly reset
Mississippi 11.32%(t) plan in place. Filed based on forecasted
a rate case in August costs plus any
2002 requesting a $69 deferred fuel
million rate increase balance (over or
which includes a under-recovery)
requested increase in from the second
the ROE mid-point to prior quarter.
12.34%. An order is
expected in December
2002.
Entergy New 11.4% Rate case filed in Monthly reset with
Orleans May 2002 requesting 60 day lag based on
an increase of $44 prior two months
million. Resolution actual fuel and
expected in mid 2003. purchased power
costs plus 1/12
unrecovered fuel
balance.
System Energy 10.94% No cases pending. Actual costs billed
Resources, Inc. as incurred.
(t) If Entergy Louisiana Inc. and Entergy Mississippi Inc. earn outside
of the bandwidth range, rates will be adjusted on a prospective basis.
For ELI, if earnings are above the bandwidth range, rates are reduced
by 60 percent of the overage, and if below, increased by 60 percent of
the shortfall. Entergy Mississippi Inc. has a similar provision
except the rate increase or decrease is 50 percent of any overage or
shortfall outside of the bandwidth range.
Appendix C provides definitions of certain operational and financial
performance measures referenced in this release.
Appendix C: Definitions of Operational and Financial Performance
Measures
Operational Measures
Utility
Generation in GWh Total number of GWh produced by all utility
generation facilities
GWh billed Total number of GWh billed to all customer
classes
Operation & maintenance Operation and maintenance and nuclear
expense refueling expenses per MWh generated,
excluding fuel
SAIFI System average interruption frequency index
SAIDI System average interruption duration index
Reliability complaints Number of complaints to regulators
concerning reliability issues
Safety Number of accidents resulting in lost work
time
Number of customers Year-to-date average number of customers
Competitive Businesses
Planned TWh of Amount of output expected to be generated by
generation 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 Percent of planned generation output,
generation sold forward excluding output associated with plant
uprates, sold forward under capacity
contract, forward physical contract or
forward financial contract, consistent with
assumptions used in earnings guidance
Average realized and Price/spark spread at which generation
assumed contract output is expected to be sold to third
price/spark spread per parties, given existing and anticipated
MWh contracts/market prices based on expected
dispatch
Entergy Nuclear
Net MW in operation Installed capacity owned or operated by
Entergy Nuclear
Average realized price As reported revenue per MWh generated for
per MWh all non-utility nuclear operations
Production cost per MWh Operation and maintenance expenses per MWh
Generation in GWh Total number of GWh produced by all non-
utility nuclear facilities
Capacity factor The percentage of the period that the plant
generates power calculated by dividing the
output by the capacity and normalizing the
time period
Refueling outage Number of generation days lost for a
duration scheduled refueling outage that was
completed during the quarter
Energy Commodity
Services
Entergy-Koch Trading
Electricity volatility Average volatility of into-Entergy power
prices for the period. The changes in
volatility numbers for the comparative prior
year periods are the result of a refinement
of the definition of the initial month used
in the time period selected over which the
calculation of power and gas volatilities is
measured.
Gas volatility Average volatility of Henry Hub spot prices
for the period. (See note to Electricity
Volatility immediately above.
Electricity marketed Total physical GWh volumes marketed in the
(GWh) U.S. during the period
Gas marketed (Bcf/d) Physical Bcf/d volumes marketed in the U.S.
during the period
Gain/loss days Ratio of days where trading gains exceeded
trading losses in the aggregate across all
commodities
Daily average Earnings Daily value at risk in millions of dollars
at Risk for the period
Gulf South Pipeline
Throughput Gas in Bcf/d transported by the pipeline
during the period
Miles of pipeline Total miles of transmission and gathering
pipeline in miles
Storage capacity Working gas storage capacity
Production cost Cost in $/mmbtu associated with delivering
gas, excluding cost of gas
Non-nuclear Wholesale
Assets
Net MW in operation Total MW owned and operated
Generation in GWh Total number of GWh produced by all non-
nuclear wholesale generating assets
Average realized price As reported revenue per MWh generated for
per MWh all non-nuclear wholesale generating assets
Net MW under Total MW owned and under construction
construction
Mark-to-Market
Disclosures
Mark-to-market earnings After-tax net income of projects or
as percent of businesses with mark-to-market earnings
consolidated earnings divided by consolidated operational earnings
Open equity at end of Mark-to-market assets (excluding physical
period gas assets) minus mark-to-market liabilities
Cumulative percentage of Percentage of mark-to-market assets and
mark-to-market liabilities expected to be realized in cash
realization assuming held to maturity and no change in
market price
Appendix C: Definitions of Operational and Financial Performance
Measures (continued)
Financial Measures
Return on average 12-months rolling operational net income
invested capital adjusted to include preferred dividends
and tax-effected interest expense divided
by average invested capital
Return on average common 12-months rolling operational net income
equity divided by average common equity
Net margin - operational 12-months rolling net income adjusted to
exclude the impact of special items
divided by 12 months rolling revenue
FFO interest coverage 12-months rolling operational net income
plus noncash items included in net income
plus interest paid, divided by interest
expense; reflects adjustments provided to
rating agencies
Revolver capacity Amount of undrawn capacity remaining on
corporate and subsidiary revolvers
Total gross liquidity Sum of cash and revolver capacity
Total debt Sum of short-term and long-term debt and
capital leases on the balance sheet less
non-recourse debt
Project debt Financing at subsidiaries to support
specific projects
Debt of joint ventures Debt issued for Entergy-Koch L.P. and RS
(Entergy share) Cogen joint ventures
Leases (Entergy share) Operating leases held by subsidiaries
capitalized at implicit interest rate
Rating or other Parent guarantees for which cash
contingent liabilities collateral may be required in event of
downgrade below investment grade
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- Sum of gross debt and off-balance sheet
balance sheet liabilities debt less cash and cash equivalents
divided by total capitalization less cash
and cash equivalents
Entergy'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/earnings
Teleconference and Webcast Details
Entergy's senior management team will host an earnings conference call
at 10:00 a.m. CST, Wednesday, October 30, 2002. The call can be
accessed by dialing 719-457-2641, the confirmation code is 737934.
Please call no more than 15 minutes prior to the scheduled start time.
The call can also be accessed and the presentation slides viewed via
Entergy's web site at www.entergy.com/webcasts. A replay of the
teleconference will be available through Wednesday, November 6, 2002
by dialing 719-457-0820, confirmation code 737934. The replay will
also be available on Entergy's web site at www.entergy.com/webcasts.
**********************************************************************
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
Consolidating Balance Sheet
September 30, 2002
(Dollars in thousands)
(Unaudited)
U.S. Parent & Competitive Eliminations Consolidated
Utilities Other Businesses
ASSETS
CURRENT ASSETS
Cash and cash equivalents:
Cash $166,462 $ 4,761 $ 33,961 $ - $ 205,184
Temporary cash investments - at cost,
which approximates market 219,341 28,657 495,347 - 743,344
Special deposits - 35 282 - 318
----------------------------------------------------------------
Total cash and cash equivalents 385,803 33,453 529,590 - 948,846
----------------------------------------------------------------
Other temporary investments - - - - -
Notes receivable 13 547,253 175,198 (720,387) 2,077
Accounts receivable:
Customer 438,393 1,463 - - 439,856
Allowance for doubtful accounts (8,847) (2,064) (11,126) - (22,036)
Associated companies 5,333 154,110 (122,918) (36,525) -
Other 121,130 1,865 163,057 - 286,052
Accrued unbilled revenues 365,000 158 - - 365,157
----------------------------------------------------------------
Total receivables 921,009 155,532 29,013 (36,525) 1,069,029
Deferred fuel costs 131,708 - - - 131,708
Accumulated deferred income taxes 37,084 8 - (14,157) 22,936
Fuel inventory - at average cost 95,542 - 2,129 18 97,690
Materials and supplies - at average cost 331,037 41 183,611 - 514,688
Deferred nuclear refueling outage costs 29,410 - 39,321 - 68,732
Prepayments and other 63,251 3,222 28,251 - 94,724
----------------------------------------------------------------
TOTAL 1,994,857 739,509 987,113 (771,051) 2,950,430
----------------------------------------------------------------
OTHER PROPERTY AND INVESTMENTS
Investment in affiliates - at equity 216 8,879,167 756,466 (8,879,167) 756,682
Decommissioning trust funds 822,430 - 1,209,938 - 2,032,368
Non-utility property - at cost (less accumulated
depreciation) 221,979 71,174 620 - 293,773
Other 20,687 31,755 243,323 - 295,765
----------------------------------------------------------------
TOTAL 1,065,312 8,982,096 2,210,347 (8,879,167) 3,378,588
----------------------------------------------------------------
PROPERTY, PLANT, AND EQUIPMENT
Electric 24,917,929 6,270 2,027,322 - 26,951,520
Property under capital lease 745,063 - - - 745,063
Natural gas 209,800 7 - - 209,808
Construction work in progress 917,156 20,655 341,625 (4,114) 1,275,323
Nuclear fuel under capital lease 291,720 - - - 291,720
Nuclear fuel 10,138 - 248,086 - 258,224
----------------------------------------------------------------
TOTAL PROPERTY, PLANT AND EQUIPMENT 27,091,806 26,932 2,617,033 (4,114) 29,731,658
Less - accumulated depreciation and amortization 12,105,238 4,821 165,264 - 12,275,323
----------------------------------------------------------------
PROPERTY, PLANT AND EQUIPMENT - NET 14,986,568 22,111 2,451,769 (4,114) 17,456,335
----------------------------------------------------------------
DEFERRED DEBITS AND OTHER ASSETS
Regulatory assets:
SFAS 109 regulatory asset - net 920,352 - - - 920,352
Unamortized loss on reacquired debt 157,578 - - - 157,578
Other regulatory assets 526,709 - - - 526,709
Long-term receivables 25,588 - - - 25,588
Goodwill 374,099 - 3,073 - 377,172
Other 123,827 489,818 845,900 (475,303) 984,241
----------------------------------------------------------------
TOTAL 2,128,153 489,818 848,973 (475,303) 2,991,640
----------------------------------------------------------------
TOTAL ASSETS $20,174,890 $10,233,534 $6,498,202 $(10,129,635) $26,776,993
================================================================
*Totals may not foot due to rounding.
Entergy Corporation
Consolidating Balance Sheet
September 30, 2002
(Dollars in thousands)
(Unaudited)
U.S. Parent & Competitive Eliminations Consolidated
Utilities Other Businesses
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Currently maturing long-term debt 863,851 - 102,893 - 966,744
Notes payable:
Associated companies - 162,500 554,362 (716,862) -
Other 15,047 - 304 - 15,351
Account payable:
Associated companies (11,094) 131,140 (99,537) (20,509) -
Other 553,184 2,278 106,799 - 662,261
Customer deposits 196,347 74 162 - 196,583
Taxes accrued 780,646 3,451 13,224 - 797,321
Accumulated deferred income taxes - - 14,157 (14,157) -
Nuclear refueling outage costs 11,199 - - - 11,199
Interest accrued 145,780 4,353 47,557 - 197,690
Obligations under capital leases 150,731 - - - 150,731
Other 75,013 8,603 119,125 (18,766) 183,974
----------------------------------------------------------------
TOTAL 2,780,704 312,399 859,046 (770,294) 3,181,854
----------------------------------------------------------------
DEFERRED CREDITS AND OTHER LIABILITIES
Accumulated deferred income taxes 3,469,729 (32,376) (26,411) - 3,410,943
Accumulated deferred investment tax credits 453,712 - - - 453,712
Taxes accrued 50,000 600,000 - - 650,000
Obligations under capital leases 196,556 - 15 - 196,572
Other regulatory liabilities 172,203 - - - 172,203
Decommisioning 295,727 - 1,248,363 - 1,544,090
Transition to competition 79,098 - - - 79,098
Regulatory reserves 48,357 - - - 48,357
Accumulated provisions 291,742 (4) 127,221 - 418,959
Other 821,772 22,312 583,981 (439,664) 988,403
----------------------------------------------------------------
TOTAL 5,878,896 589,932 1,933,169 (439,664) 7,962,337
----------------------------------------------------------------
Long-term debt 5,235,406 830,492 1,246,733 (73,492) 7,239,139
Preferred stock with sinking fund 24,327 - - - 24,327
Preferred stock without sinking fund 334,337 - - - 334,337
Company-obligated mandatorily redeemable
preferred securities of subsidiary trust holding
solely junior subordinated deferrable debentures 215,000 - - - 215,000
SHAREHOLDERS' EQUITY
Common stock 2,225,870 1,360 1,448,095 (3,672,843) 2,482
Authorized shares 500,000,000
Issued shares CY 248,174,087
Paid-in capital 1,784,097 5,550,821 941,095 (3,609,060) 4,666,953
Retained earnings 1,682,273 3,696,184 156,752 (1,593,969) 3,941,240
Accumulated other comprehensive income (loss) 13,980 (2,134) (58,072) 1,071 (45,156)
Less - treasury stock, at cost - 745,520 28,616 (28,616) 745,520
Shares CY 25,910,490
----------------------------------------------------------------
TOTAL 5,706,220 8,500,711 2,459,254 (8,846,185) 7,819,999
----------------------------------------------------------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $20,174,890 $10,233,534 $6,498,202 $(10,129,635) $26,776,993
================================================================
*Totals may not foot due to rounding.
Entergy Corporation
Consolidating Balance Sheet
December 31, 2001
(Dollars in thousands)
(Unaudited)
U.S. Parent & Competitive Eliminations Consolidated
Utilities Other Businesses
ASSETS
CURRENT ASSETS
Cash and cash equivalents:
Cash $ 94,340 $ 2,638 $ 32,888 $ - $ 129,866
Temporary cash investments - at cost,
which approximates market 360,491 25,239 232,598 - 618,327
Special deposits - 267 3,113 - 3,380
----------- ---------- ----------- ----------- -----------
Total cash and cash equivalents 454,831 28,144 268,599 - 751,573
----------- ---------- ----------- ----------- -----------
Other temporary investments 145,218 4,782 - - 150,000
Notes receivable 73 293,621 239,678 (531,235) 2,137
Accounts receivable:
Customer 294,691 108 (1) - 294,799
Allowance for doubtful accounts (8,847) (2,064) (8,345) - (19,255)
Associated companies 26,876 94,578 (77,107) (44,347) -
Other 146,143 4,240 135,339 950 286,671
Accrued unbilled revenues 268,578 - 102 - 268,680
----------- ---------- ----------- ----------- -----------
Total receivables 727,441 96,862 49,988 (43,397) 830,895
Deferred fuel costs 172,444 - - - 172,444
Accumulated deferred income taxes 27,098 8 - (20,618) 6,488
Fuel inventory - at average cost 95,863 - 1,615 18 97,497
Materials and supplies - at average cost 325,713 30 134,900 - 460,644
Deferred nuclear refueling outage costs 27,332 - 52,424 - 79,755
Prepayments and other 100,423 3,444 25,385 - 129,251
----------- ---------- ----------- ----------- -----------
TOTAL 2,076,436 426,891 772,589 (595,232) 2,680,684
----------- ---------- ----------- ----------- -----------
OTHER PROPERTY AND INVESTMENTS
Investment in affiliates - at equity 216 8,781,346 765,889 (8,781,347) 766,103
Decommissioning trust funds 854,705 - 921,245 - 1,775,950
Non-utility property - at cost (less accumulated
depreciation) 224,688 41,307 29,621 - 295,616
Other 18,946 69,693 430,060 (23,158) 495,542
----------- ---------- ----------- ----------- -----------
TOTAL 1,098,555 8,892,346 2,146,815 (8,804,505) 3,333,211
----------- ---------- ----------- ----------- -----------
PROPERTY, PLANT, AND EQUIPMENT
Electric 24,491,170 5,758 1,862,448 - 26,359,376
Property under capital lease 753,310 - - - 753,310
Natural gas 201,841 - - - 201,841
Construction work in progress 711,670 9,214 168,224 (6,278) 882,829
Nuclear fuel under capital lease 265,464 - - - 265,464
Nuclear fuel 36,611 - 195,775 - 232,387
----------- ---------- ----------- ----------- -----------
TOTAL PROPERTY, PLANT AND EQUIPMENT 26,460,066 14,972 2,226,447 (6,278) 28,695,207
Less - accumulated depreciation and amortization 11,674,308 4,167 127,103 - 11,805,578
----------- ---------- ----------- ----------- -----------
PROPERTY, PLANT AND EQUIPMENT - NET 14,785,758 10,805 2,099,344 (6,278) 16,889,629
----------- ---------- ----------- ----------- -----------
DEFERRED DEBITS AND OTHER ASSETS
Regulatory assets:
SFAS 109 regulatory asset - net 946,126 - - - 946,126
Unamortized loss on reacquired debt 166,546 - - - 166,546
Other regulatory assets 707,439 - - - 707,439
Long-term receivables 28,091 (8) - - 28,083
Goodwill 374,099 - 3,373 - 377,472
Other 126,644 460,927 659,060 (465,511) 781,121
----------- ---------- ----------- ----------- -----------
TOTAL 2,348,945 460,919 662,433 (465,511) 3,006,787
----------- ---------- ----------- ----------- -----------
TOTAL ASSETS $20,309,695 $9,790,961 $ 5,681,181 $(9,871,526) $25,910,311
=========== ========== =========== =========== ===========
*Totals may not foot due to rounding.
Entergy Corporation
Consolidating Balance Sheet
December 31, 2001
(Dollars in thousands)
(Unaudited)
U.S. Parent & Competitive Eliminations Consolidated
Utilities Other Businesses
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Currently maturing long-term debt $ 584,438 $ - $ 98,333 $ - $ 682,771
Notes payable:
Associated companies - 229,444 302,774 (532,218) -
Other 713 350,001 304 - 351,018
Account payable:
Associated companies (3,677) 96,911 (62,040) (31,194) -
Other 508,333 6,147 78,049 - 592,529
Customer deposits 188,176 53 - - 188,230
Taxes accrued 350,178 183,270 16,685 - 550,133
Accumulated deferred income taxes - - 20,618 (20,618) -
Nuclear refueling outage costs 2,080 - - - 2,080
Interest accrued 180,276 2,239 9,905 - 192,420
Obligations under capital leases 149,352 - - - 149,352
Other 176,907 9,357 171,325 (12,203) 345,387
----------- ---------- ----------- ----------- -----------
TOTAL 2,136,777 877,422 635,953 (596,233) 3,053,920
----------- ---------- ----------- ----------- -----------
DEFERRED CREDITS AND OTHER LIABILITIES
Accumulated deferred income taxes 3,558,937 (35,485) 51,212 - 3,574,664
Accumulated deferred investment tax credits 471,090 - - - 471,090
Taxes accrued - 400,000 - - 400,000
Obligations under capital leases 181,070 - 15 - 181,085
Other regulatory liabilities 135,878 - - - 135,878
Decommisioning 285,029 - 909,304 - 1,194,333
Transition to competition 231,512 - - - 231,512
Regulatory reserves 37,591 - - - 37,591
Accumulated provisions 291,192 (4) 134,210 - 425,399
Other 852,388 44,437 397,272 (441,828) 852,269
----------- ---------- ----------- ----------- -----------
TOTAL 6,044,687 408,948 1,492,013 (441,828) 7,503,821
----------- ---------- ----------- ----------- -----------
Long-term debt 6,007,199 15,307 1,360,464 (61,942) 7,321,028
Preferred stock with sinking fund 26,185 - - - 26,185
Preferred stock without sinking fund 334,337 - - - 334,337
Company-obligated mandatorily redeemable
preferred securities of subsidiary trust holding
solely junior subordinated deferrable debentures 215,000 - - - 215,000
SHAREHOLDERS' EQUITY
Common stock 2,225,870 402,665 1,566,689 (4,192,740) 2,482
Authorized shares 500,000,000
Issued shares CY 248,174,087
Paid-in capital 1,784,097 5,528,328 578,083 (3,227,805) 4,662,704
Retained earnings 1,535,757 3,387,557 164,110 (1,448,978) 3,638,448
Accumulated other comprehensive income (loss) (214) (70,447) (87,516) 69,383 (88,794)
Less - treasury stock, at cost - 758,820 28,616 (28,616) 758,820
Shares CY 27,441,384
----------- ---------- ----------- ----------- -----------
TOTAL 5,545,510 8,489,283 2,192,750 (8,771,524) 7,456,020
----------- ---------- ----------- ----------- -----------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $20,309,695 $9,790,961 $5,681,181 $(9,871,526) $25,910,311
=========== ========== =========== =========== ===========
* Totals may not foot due to rounding.
Entergy Corporation
Consolidating Balance Sheet
September 30, 2002 vs December 31, 2001
Increase/(Decrease)
(Dollars in thousands)
(Unaudited)
U.S. Parent & Competitive Eliminations Consolidated
Utilities Other Businesses
ASSETS
CURRENT ASSETS
Cash and cash equivalents:
Cash $ 72,122 $ 2,123 $ 1,073 $ - $ 75,318
Temporary cash investments - at cost,
which approximates market (141,150) 3,418 262,749 - 125,017
Special deposits - (232) (2,831) - (3,063)
----------- ---------- ---------- ----------- -----------
Total cash and cash equivalents (69,028) 5,309 260,991 - 197,273
----------- ---------- ---------- ----------- -----------
Other temporary investments (145,218) (4,782) - - (150,000)
Notes receivable (60) 253,632 (64,480) (189,152) (60)
Accounts receivable:
Customer 143,702 1,355 1 - 145,057
Allowance for doubtful accounts - - (2,781) - (2,781)
Associated companies (21,543) 59,532 (45,811) 7,822 -
Other (25,013) (2,375) 27,718 (950) (619)
Accrued unbilled revenues 96,422 158 (102) - 96,477
----------- ---------- ---------- ----------- -----------
Total receivables 193,568 58,670 (20,975) 6,872 238,134
Deferred fuel costs (40,736) - - - (40,736)
Accumulated deferred income taxes 9,986 - - 6,461 16,448
Fuel inventory - at average cost (321) - 514 - 193
Materials and supplies - at average cost 5,324 11 48,711 - 54,044
Deferred nuclear refueling outage costs 2,078 - (13,103) - (11,023)
Prepayments and other (37,172) (222) 2,866 - (34,527)
----------- ---------- ---------- ----------- -----------
TOTAL (81,579) 312,618 214,524 (175,819) 269,745
----------- ---------- ---------- ----------- -----------
OTHER PROPERTY AND INVESTMENTS
Investment in affiliates - at equity - 97,821 (9,423) (97,820) (9,421)
Decommissioning trust funds (32,275) - 288,693 - 256,418
Non-utility property - at cost (less accumulated
depreciation) (2,709) 29,867 (29,001) - (1,843)
Other 1,741 (37,938) (186,737) 23,158 (199,777)
----------- ---------- ---------- ----------- -----------
TOTAL (33,243) 89,750 63,532 (74,662) 45,377
----------- ---------- ---------- ----------- -----------
PROPERTY, PLANT, AND EQUIPMENT
Electric 426,759 512 164,874 - 592,144
Property under capital lease (8,247) - - - (8,247)
Natural gas 7,959 7 - - 7,967
Construction work in progress 205,486 11,441 173,401 2,164 392,494
Nuclear fuel under capital lease 26,256 - - - 26,256
Nuclear fuel (26,473) - 52,311 - 25,837
----------- ---------- ---------- ----------- -----------
TOTAL PROPERTY, PLANT AND EQUIPMENT 631,740 11,960 390,586 2,164 1,036,451
Less - accumulated depreciation and amortization 430,930 654 38,161 - 469,745
----------- ---------- ---------- ----------- -----------
PROPERTY, PLANT AND EQUIPMENT - NET 200,810 11,306 352,425 2,164 566,706
----------- ---------- ---------- ----------- -----------
DEFERRED DEBITS AND OTHER ASSETS
Regulatory assets:
SFAS 109 regulatory asset - net (25,774) - - - (25,774)
Unamortized loss on reacquired debt (8,968) - - - (8,968)
Other regulatory assets (180,730) - - - (180,730)
Long-term receivables (2,503) 8 - - (2,495)
Goodwill - - (300) - (300)
Other (2,817) 28,891 186,840 (9,792) 203,120
----------- ---------- ---------- ----------- -----------
TOTAL (220,792) 28,899 186,540 (9,792) (15,147)
----------- ---------- ---------- ----------- -----------
TOTAL ASSETS $ (134,805) $ 442,573 $ 817,021 $ (258,109) $ 866,682
=========== ========== ========== =========== ===========
*Totals may not foot due to rounding.
Entergy Corporation
Consolidating Balance Sheet
September 30, 2002 vs December 31, 2001
Increase/(Decrease)
(Dollars in thousands)
(Unaudited)
U.S. Parent & Competitive Eliminations Consolidated
Utilities Other Businesses
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Currently maturing long-term debt $ 279,413 $ - $ 4,560 $ - $ 283,973
Notes payable:
Associated companies - (66,944) 251,588 (184,644) -
Other 14,334 (350,001) - - (335,667)
Account payable:
Associated companies (7,417) 34,229 (37,497) 10,685 -
Other 44,851 (3,869) 28,750 - 69,732
Customer deposits 8,171 21 162 - 8,353
Taxes accrued 430,468 (179,819) (3,461) - 247,188
Accumulated deferred income taxes - - (6,461) 6,461 -
Nuclear refueling outage costs 9,119 - - - 9,119
Interest accrued (34,496) 2,114 37,652 - 5,270
Obligations under capital leases 1,379 - - - 1,379
Other (101,894) (754) (52,200) (6,563) (161,413)
----------- ---------- ---------- ----------- -----------
TOTAL 643,927 (565,023) 223,093 (174,061) 127,934
----------- ---------- ---------- ----------- -----------
DEFERRED CREDITS AND OTHER LIABILITIES
Accumulated deferred income taxes (89,208) 3,109 (77,623) - (163,721)
Accumulated deferred investment tax credits (17,378) - - - (17,378)
Taxes accrued 50,000 200,000 - - 250,000
Obligations under capital leases 15,486 - - - 15,487
Other regulatory liabilities 36,325 - - - 36,325
Decommisioning 10,698 - 339,059 - 349,757
Transition to competition (152,414) - - - (152,414)
Regulatory reserves 10,766 - - - 10,766
Accumulated provisions 550 - (6,989) - (6,440)
Other (30,616) (22,125) 186,709 2,164 136,134
----------- ---------- ---------- ----------- -----------
TOTAL (165,791) 180,984 441,156 2,164 458,516
----------- ---------- ---------- ----------- -----------
Long-term debt (771,793) 815,185 (113,731) (11,550) (81,889)
Preferred stock with sinking fund (1,858) - - - (1,858)
Preferred stock without sinking fund - - - - -
Company-obligated mandatorily redeemable
preferred securities of subsidiary trust holding
solely junior subordinated deferrable debentures - - - - -
SHAREHOLDERS' EQUITY
Common stock - (401,305) (118,594) 519,897 -
Authorized shares
Issued shares CY
Paid-in capital - 22,493 363,012 (381,255) 4,249
Retained earnings 146,516 308,627 (7,358) (144,991) 302,792
Accumulated other comprehensive income (loss) 14,194 68,313 29,444 (68,312) 43,638
Less - treasury stock, at cost - (13,300) - - (13,300)
----------- ---------- ---------- ----------- -----------
TOTAL 160,710 11,428 266,504 (74,661) 363,979
----------- ---------- ---------- ----------- -----------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ (134,805) $ 442,573 $ 817,021 $ (258,109) $ 866,682
=========== ========== ========== =========== ===========
*Totals may not foot due to rounding.
Entergy Corporation
Consolidating Income Statement
Three Months Ended September 30, 2002
(Dollars in thousands)
(Unaudited)
U.S. Parent & Competitive Eliminations Consolidated
Utilities Other Businesses
OPERATING REVENUES:
Domestic electric $2,038,364 $ - $ - $ (407) $ 2,037,957
Natural gas 18,953 - - - 18,953
Competitive businesses - 8,780 403,297 (113) 411,965
-----------------------------------------------------------------
Total 2,057,317 8,780 403,297 (520) 2,468,875
-----------------------------------------------------------------
OPERATING EXPENSES:
Operating and Maintenance:
Fuel, fuel related expenses, and gas 632,167 - 40,050 - 672,217
purchased for resale
Purchased power 226,547 441 (4,188) (327) 222,472
-----------------------------------------------------------------
Gross Margin 1,198,603 8,339 367,435 (193) 1,574,186
Margin % 58.3% 95.0% 91.1% 37.0% 63.8%
Nuclear refueling outage expenses 14,295 - 9,888 - 24,183
Provision for turbine commitments,
asset impairments and restructuring
charges - - (27,985) - (27,985)
Other operation and maintenance 358,903 17,429 188,882 (452) 564,762
Decommissioning 8,198 - - - 8,198
Taxes other than income taxes 95,368 635 11,186 - 107,189
-----------------------------------------------------------------
Total 1,335,478 18,505 217,833 (780) 1,571,036
-----------------------------------------------------------------
EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION,
AND AMORTIZATION 721,839 (9,725) 185,464 260 897,839
-----------------------------------------------------------------
Margin % 35.1% (110.8%) 46.0% (50.0%) 36.4%
DEPRECIATION AND AMORTIZATION:
Depreciation and amortization 195,340 1,280 17,788 - 214,408
Other regulatory charges (credits) 19,742 - - - 19,742
-----------------------------------------------------------------
Total 215,082 1,280 17,788 - 234,150
-----------------------------------------------------------------
OPERATING INCOME (LOSS) 506,757 (11,005) 167,676 260 663,689
-----------------------------------------------------------------
Margin % 24.6% (125.3%) 41.6% (50.0%) 26.9%
OTHER INCOME (DEDUCTIONS):
Allowance for equity funds used during 8,726 - - - 8,726
construction
Gain/(loss) on sale of assets - net 706 - - - 705
Interest and dividend income 4,217 9,409 17,671 (10,609) 20,688
Equity in earnings of unconsolidated
equity affiliates - - 50,159 - 50,159
Miscellaneous - net 4,533 634 2,929 (260) 7,837
-----------------------------------------------------------------
Total 18,182 10,043 70,759 (10,869) 88,115
-----------------------------------------------------------------
INTEREST AND OTHER CHARGES:
Interest on long-term debt 115,067 - 16,838 - 131,905
Other interest - net 4,200 7,825 24,844 (10,609) 26,260
Distributions on preferred securities 4,709 - - - 4,709
of subsidiaries
Allowance for borrowed funds used (6,548) - - - (6,548)
during construction
-----------------------------------------------------------------
Total 117,428 7,825 41,682 (10,609) 156,326
-----------------------------------------------------------------
INCOME (LOSS) BEFORE INCOME TAXES 407,512 (8,786) 196,753 - 595,478
INCOME TAXES 157,886 (4,582) 75,374 - 228,678
-----------------------------------------------------------------
CONSOLIDATED NET INCOME (LOSS) 249,626 (4,205) 121,380 - 366,800
PREFERRED DIVIDEND REQUIREMENTS OF SUBSIDIARIES
AND OTHER 5,924 - - - 5,924
-----------------------------------------------------------------
EARNINGS (LOSS) APPLICABLE TO COMMON STOCK $ 243,702 $ (4,205) $ 121,380 $ - $360,876
=================================================================
Margin % 11.8% (47.9%) 30.1% - 14.6%
EARNINGS (LOSS) PER AVERAGE COMMON SHARE:
BASIC $1.09 $(0.02) $0.54 $1.61
DILUTED $1.07 $(0.02) $0.54 $1.59
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
BASIC 223,714,449
DILUTED 227,054,321
*Totals may not foot due to rounding.
Entergy Corporation
Consolidating Income Statement
Three Months Ended September 30, 2001
(Dollars in thousands)
(Unaudited)
U.S. Parent & Competitive Eliminations Consolidated
Utilities Other Businesses
OPERATING REVENUES:
Domestic electric $1,986,831 $ - $ - $ (493) $ 1,986,338
Natural gas 18,212 - - - 18,212
Competitive businesses - 5,969 566,696 (326) 572,339
-----------------------------------------------------------------
Total 2,005,043 5,969 566,696 (819) 2,576,889
-----------------------------------------------------------------
OPERATING EXPENSES:
Operating and Maintenance:
Fuel, fuel related expenses, and gas 694,248 - 231,204 - 925,452
purchased for resale
Purchased power 252,160 - 27,430 (530) 279,060
-----------------------------------------------------------------
Gross Margin 1,058,635 5,969 308,062 (289) 1,372,377
Margin % 52.8% 100.0% 54.4% 35.3% 53.3%
Nuclear refueling outage expenses 15,436 - 8,848 - 24,284
Provision for turbine commitments,
asset impairments and restructuring
charges - - - - -
Other operation and maintenance 382,377 18,577 150,118 (734) 550,339
Decommissioning (22,553) - - - (22,553)
Taxes other than income taxes 92,164 488 10,940 - 103,593
-----------------------------------------------------------------
Total 1,413,832 19,065 428,540 (1,264) 1,860,175
-----------------------------------------------------------------
EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION,
AND AMORTIZATION 591,211 (13,096) 138,156 445 716,714
-----------------------------------------------------------------
Margin % 29.5% (219.4%) 24.4% (54.3%) 27.8%
DEPRECIATION AND AMORTIZATION:
Depreciation and amortization 112,631 1,108 13,911 - 127,650
Other regulatory charges (credits) (18,592) - - - (18,592)
-----------------------------------------------------------------
Total 94,039 1,108 13,911 - 109,058
-----------------------------------------------------------------
OPERATING INCOME (LOSS) 497,172 (14,204) 124,245 445 607,656
-----------------------------------------------------------------
Margin % 24.8% (238.0%) 21.9% (54.3%) 23.6%
OTHER INCOME (DEDUCTIONS):
Allowance for equity funds used during 7,672 - - - 7,672
construction
Gain/(loss) on sale of assets - net 622 77 213 - 913
Interest and dividend income 28,695 4,372 16,864 (6,708) 43,223
Equity in earnings of unconsolidated
equity affiliates - - 58,414 - 58,414
Miscellaneous - net (7,222) (239) 2,327 (445) (5,580)
-----------------------------------------------------------------
Total 29,767 4,210 77,818 (7,153) 104,642
-----------------------------------------------------------------
INTEREST AND OTHER CHARGES:
Interest on long-term debt 117,144 - 9,526 - 126,670
Other interest - net 57,631 10,407 23,122 (6,708) 84,452
Distributions on preferred securities 4,709 - - - 4,709
of subsidiaries
Allowance for borrowed funds used (6,287) - - - (6,287)
during construction
-----------------------------------------------------------------
Total 173,197 10,407 32,648 (6,708) 209,544
-----------------------------------------------------------------
INCOME (LOSS) BEFORE INCOME TAXES 353,742 (20,401) 169,415 - 502,754
INCOME TAXES 125,218 (7,454) 67,536 - 185,300
-----------------------------------------------------------------
CONSOLIDATED NET INCOME (LOSS) 228,524 (12,947) 101,879 - 317,454
PREFERRED DIVIDEND REQUIREMENTS OF SUBSIDIARIES
AND OTHER 4,970 - - - 4,970
-----------------------------------------------------------------
EARNINGS (LOSS) APPLICABLE TO COMMON STOCK $ 223,554 $ (12,947) $ 101,879 $ - $312,484
=================================================================
Margin % 11.1% (216.9%) 18.0% - 12.1%
EARNINGS (LOSS) PER AVERAGE COMMON SHARE:
BASIC $1.01 $(0.06) $0.46 $1.41
DILUTED $0.99 $(0.06) $0.46 $1.39
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
BASIC 221,675,578
DILUTED 224,830,056
*Totals may not foot due to rounding.
Entergy Corporation
Consolidating Income Statement
Three Months Ended September 30, 2002 vs. 2001
Increase/(Decrease)
(Dollars in thousands)
(Unaudited)
U.S. Parent & Competitive Eliminations Consolidated
Utilities Other Businesses
OPERATING REVENUES:
Domestic electric $ 51,533 $ - $ - $ 86 $ 51,620
Natural gas 741 - - - 741
Competitive businesses - 2,811 (163,399) 213 (160,375)
-----------------------------------------------------------------
Total 52,274 2,811 (163,399) 299 (108,014)
-----------------------------------------------------------------
OPERATING EXPENSES:
Operating and Maintenance:
Fuel, fuel related expenses, and gas (62,081) - (191,154) - (253,235)
purchased for resale
Purchased power (25,613) 441 (31,618) 203 (56,588)
-----------------------------------------------------------------
Gross Margin 139,968 2,370 59,373 96 201,809
Margin % 5.5% (5.0%) 36.7% 1.8% 10.5%
Nuclear refueling outage expenses (1,141) - 1,040 - (101)
Provision for turbine commitments,
asset impairments and restructuring
charges - - (27,985) - (27,985)
Other operation and maintenance (23,474) (1,148) 38,764 282 14,423
Decommissioning 30,751 - - - 30,751
Taxes other than income taxes 3,204 147 246 - 3,596
-----------------------------------------------------------------
Total (78,354) (560) (210,707) 484 (289,140)
-----------------------------------------------------------------
EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION,
AND AMORTIZATION 130,628 3,371 47,308 (185) 181,126
-----------------------------------------------------------------
Margin % 5.6% 108.6% 21.6% 4.4% 8.6%
DEPRECIATION AND AMORTIZATION:
Depreciation and amortization 82,709 172 3,877 - 86,758
Other regulatory charges (credits) 38,334 - - - 38,334
-----------------------------------------------------------------
Total 121,043 172 3,877 - 125,092
-----------------------------------------------------------------
OPERATING INCOME (LOSS) 9,585 3,199 43,431 (185) 56,034
-----------------------------------------------------------------
Margin % (0.2%) 112.6% 19.7% 4.4% 3.3%
OTHER INCOME (DEDUCTIONS):
Allowance for equity funds used during 1,054 - - - 1,054
construction
Gain/(loss) on sale of assets - net 84 (77) (213) - (206)
Interest and dividend income (24,478) 5,037 807 (3,901) (22,535)
Equity in earnings of unconsolidated
equity affiliates - - (8,255) - (8,255)
Miscellaneous - net 11,755 873 602 185 13,415
-----------------------------------------------------------------
Total (11,585) 5,833 (7,059) (3,716) (16,527)
-----------------------------------------------------------------
INTEREST AND OTHER CHARGES:
Interest on long-term debt (2,077) - 7,312 - 5,235
Other interest - net (53,431) (2,582) 1,722 (3,901) (58,192)
Distributions on preferred securities - - - - -
of subsidiaries
Allowance for borrowed funds used (261) - - - (261)
during construction
-----------------------------------------------------------------
Total (55,769) (2,582) 9,034 (3,901) (53,218)
-----------------------------------------------------------------
INCOME (LOSS) BEFORE INCOME TAXES 53,769 11,614 27,338 - 92,724
INCOME TAXES 32,668 2,873 7,838 - 43,378
-----------------------------------------------------------------
CONSOLIDATED NET INCOME (LOSS) 21,101 8,741 19,501 - 49,346
PREFERRED DIVIDEND REQUIREMENTS OF SUBSIDIARIES
AND OTHER 954 - - - 954
-----------------------------------------------------------------
EARNINGS (LOSS) APPLICABLE TO COMMON STOCK $ 20,147 $ 8,741 $ 19,501 $ - $ 48,392
=================================================================
Margin % 0.7% 169.0% 12.1% - 2.5%
EARNINGS (LOSS) PER AVERAGE COMMON SHARE:
BASIC $0.08 $0.04 $0.08 - $0.20
DILUTED $0.08 $0.04 $0.08 - $0.20
*Totals may not foot due to rounding.
Entergy Corporation
Consolidating Income Statement
Year to Date September 30, 2002
(Dollars in thousands)
(Unaudited)
U.S. Parent & Competitive Eliminations Consolidated
Utilities Other Businesses
OPERATING REVENUES:
Domestic electric $5,127,052 $ - $ - $ (1,330) $ 5,125,722
Natural gas 90,313 - - - 90,313
Competitive businesses - 30,594 1,181,870 (2,210) 1,210,254
-----------------------------------------------------------------
Total 5,217,365 30,594 1,181,870 (3,540) 6,426,289
-----------------------------------------------------------------
OPERATING EXPENSES:
Operating and Maintenance:
Fuel, fuel related expenses, and gas 1,452,183 - 160,307 - 1,612,490
purchased for resale
Purchased power 567,016 865 60,337 (2,742) 625,476
-----------------------------------------------------------------
Gross Margin 3,198,166 29,729 961,226 (798) 4,188,323
Margin % 61.3% 97.2% 81.3% 22.5% 65.2%
Nuclear refueling outage expenses 44,682 - 29,375 - 74,057
Provision for turbine commitments,
asset impairments and restructuring
charges - - 391,557 - 391,557
Other operation and maintenance 1,223,404 57,215 537,088 (1,576) 1,816,131
Decommissioning 24,589 - - - 24,589
Taxes other than income taxes 256,742 1,958 33,054 - 291,753
-----------------------------------------------------------------
Total 3,568,616 60,038 1,211,718 (4,319) 4,836,053
-----------------------------------------------------------------
EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION,
AND AMORTIZATION 1,648,749 (29,444) (29,848) 779 1,590,236
-----------------------------------------------------------------
Margin % 31.6% (96.2%) (2.5%) (22.0%) 24.7%
DEPRECIATION AND AMORTIZATION:
Depreciation and amortization 573,385 4,095 47,928 - 625,407
Other regulatory charges (credits) (149,340) - - - (149,340)
-----------------------------------------------------------------
Total 424,045 4,095 47,928 - 476,067
-----------------------------------------------------------------
OPERATING INCOME (LOSS) 1,224,704 (33,539) (77,776) 779 1,114,169
-----------------------------------------------------------------
Margin % 23.5% (109.6%) (6.6%) (22.0%) 17.3%
OTHER INCOME (DEDUCTIONS):
Allowance for equity funds used during 23,730 - - - 23,730
construction
Gain/(loss) on sale of assets - net 2,377 2 - - 2,379
Interest and dividend income 19,566 25,368 53,413 (26,423) 71,924
Equity in earnings of unconsolidated
equity affiliates - - 142,964 - 142,964
Miscellaneous - net (5,395) 5,772 (2,945) (779) (3,346)
-----------------------------------------------------------------
Total 40,279 31,142 193,432 (27,202) 237,651
-----------------------------------------------------------------
INTEREST AND OTHER CHARGES:
Interest on long-term debt 327,004 - 49,821 - 376,825
Other interest - net 23,881 24,721 64,452 (26,423) 86,630
Distributions on preferred securities 14,128 - - - 14,128
of subsidiaries
Allowance for borrowed funds used (18,478) - - - (18,478)
during construction
-----------------------------------------------------------------
Total 346,535 24,721 114,273 (26,423) 459,105
-----------------------------------------------------------------
INCOME (LOSS) BEFORE INCOME TAXES 918,448 (27,118) 1,383 - 892,715
INCOME TAXES 359,798 (12,258) 3,775 - 351,314
-----------------------------------------------------------------
CONSOLIDATED NET INCOME (LOSS) 558,651 (14,859) (2,391) - 541,401
PREFERRED DIVIDEND REQUIREMENTS OF SUBSIDIARIES
AND OTHER 17,796 - - - 17,796
-----------------------------------------------------------------
EARNINGS (LOSS) APPLICABLE TO COMMON STOCK $ 540,855 $ (14,859) $ (2,391) $ - $523,605
=================================================================
Margin % 10.4% (48.6%) (0.2%) - 8.1%
EARNINGS (LOSS) PER AVERAGE COMMON SHARE:
BASIC $2.42 ($0.07) ($0.01) $2.34
DILUTED $2.38 ($0.07) ($0.01) $2.30
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
BASIC 223,336,005
DILUTED 227,402,737
*Totals may not foot due to rounding.
Entergy Corporation
Consolidating Income Statement
Year to Date September 30, 2001
(Dollars in thousands)
(Unaudited)
U.S. Parent & Competitive Eliminations Consolidated
Utilities Other Businesses
OPERATING REVENUES:
Domestic electric $5,851,961 $ - $ - $ (2,240) $ 5,849,720
Natural gas 159,144 - - - 159,144
Competitive businesses - 26,451 1,567,650 (814) 1,593,287
-----------------------------------------------------------------
Total 6,011,105 26,451 1,567,650 (3,054) 7,602,151
-----------------------------------------------------------------
OPERATING EXPENSES:
Operating and Maintenance:
Fuel, fuel related expenses, and gas 2,281,176 - 788,736 - 3,069,912
purchased for resale
Purchased power 711,484 - 51,843 (912) 762,415
-----------------------------------------------------------------
Gross Margin 3,018,445 26,451 727,071 (2,142) 3,769,824
Margin % 50.2% 100.0% 46.4% 70.1% 49.6%
Nuclear refueling outage expenses 50,629 - 13,938 - 64,567
Provision for turbine commitments,
asset impairments and restructuring
charges - - - - -
Other operation and maintenance 1,007,430 50,601 402,031 (3,155) 1,456,908
Decommissioning (4,749) - - - (4,749)
Taxes other than income taxes 266,095 1,953 27,669 - 295,717
-----------------------------------------------------------------
Total 4,312,066 52,554 1,284,218 (4,068) 5,644,770
-----------------------------------------------------------------
EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION,
AND AMORTIZATION 1,699,039 (26,103) 283,432 1,014 1,957,381
-----------------------------------------------------------------
Margin % 28.3% (98.7%) 18.1% (33.2%) 25.7%
DEPRECIATION AND AMORTIZATION:
Depreciation and amortization 472,480 3,261 38,358 - 514,099
Other regulatory charges (credits) (5,894) - - - (5,894)
-----------------------------------------------------------------
Total 466,586 3,261 38,358 - 508,205
-----------------------------------------------------------------
OPERATING INCOME (LOSS) 1,232,453 (29,364) 245,074 1,014 1,449,176
-----------------------------------------------------------------
Margin % 20.5% (111.0%) 15.6% (33.2%) 19.1%
OTHER INCOME (DEDUCTIONS):
Allowance for equity funds used during 19,259 - - - 19,259
construction
Gain/(loss) on sale of assets - net 1,967 77 217 - 2,261
Interest and dividend income 67,999 29,758 57,202 (30,665) 124,294
Equity in earnings of unconsolidated
equity affiliates - - 153,957 - 153,957
Miscellaneous - net (23,620) 5,885 21,847 (1,014) 3,068
-----------------------------------------------------------------
Total 65,605 35,690 233,223 (31,679) 302,839
-----------------------------------------------------------------
INTEREST AND OTHER CHARGES:
Interest on long-term debt 358,429 - 27,945 - 386,373
Other interest - net 91,152 31,993 91,272 (30,665) 183,752
Distributions on preferred securities 14,128 - - - 14,128
of subsidiaries
Allowance for borrowed funds used (15,718) - - - (15,718)
during construction
-----------------------------------------------------------------
Total 447,991 31,993 119,217 (30,665) 568,535
-----------------------------------------------------------------
INCOME (LOSS) BEFORE INCOME TAXES 850,067 (25,666) 359,079 - 1,183,480
INCOME TAXES 325,951 (10,726) 144,348 - 459,573
-----------------------------------------------------------------
CONSOLIDATED NET INCOME (LOSS) 524,116 (14,940) 214,731 - 723,907
PREFERRED DIVIDEND REQUIREMENTS OF SUBSIDIARIES
AND OTHER 18,363 - - - 18,363
-----------------------------------------------------------------
EARNINGS (LOSS) APPLICABLE TO COMMON STOCK $ 505,753 $ (14,940) $ 214,731 $ - $705,544
=================================================================
Margin % 8.4% (56.5%) 13.7% - 9.3%
EARNINGS (LOSS) PER AVERAGE COMMON SHARE:
BASIC $2.29 ($0.07) $0.97 $3.19
DILUTED $2.25 ($0.07) $0.96 $3.14
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
BASIC 220,908,546
DILUTED 224,780,449
*Totals may not foot due to rounding.
Entergy Corporation
Consolidating Income Statement
Year to Date September 30, 2002 vs. 2001
Increase/(Decrease)
(Dollars in thousands)
(Unaudited)
U.S. Parent & Competitive Eliminations Consolidated
Utilities Other Businesses
OPERATING REVENUES:
Domestic electric $ (724,909) $ - $ - $ 910 $ (723,998)
Natural gas (68,831) - - - (68,831)
Competitive businesses - 4,143 (385,780) (1,396) (383,033)
-----------------------------------------------------------------
Total (793,740) 4,143 (385,780) (486) (1,175,862)
-----------------------------------------------------------------
OPERATING EXPENSES:
Operating and Maintenance:
Fuel, fuel related expenses, and gas (828,993) - (628,429) - (1,457,422)
purchased for resale
Purchased power (144,468) 865 8,494 (1,830) (136,939)
-----------------------------------------------------------------
Gross Margin 179,721 3,278 234,155 1,344 418,499
Margin % 11.1% (2.8%) 35.0% (47.6%) 15.6%
Nuclear refueling outage expenses (5,947) - 15,437 - 9,490
Provision for turbine commitments,
asset impairments and restructuring
charges - - 391,557 - 391,557
Other operation and maintenance 215,974 6,614 135,057 1,579 359,223
Decommissioning 29,338 - - - 29,338
Taxes other than income taxes (9,353) 5 5,385 - (3,964)
-----------------------------------------------------------------
Total (743,450) 7,484 (72,500) (251) (808,717)
-----------------------------------------------------------------
EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION,
AND AMORTIZATION (50,290) (3,341) (313,280) (235) (367,145)
-----------------------------------------------------------------
Margin % 3.3% 2.4% (20.6%) 11.2% (1.0%)
DEPRECIATION AND AMORTIZATION:
Depreciation and amortization 100,905 834 9,570 - 111,308
Other regulatory charges (credits) (143,446) - - - (143,446)
-----------------------------------------------------------------
Total (42,541) 834 9,570 - (32,138)
-----------------------------------------------------------------
OPERATING INCOME (LOSS) (7,749) (4,175) (322,850) (235) (335,008)
-----------------------------------------------------------------
Margin % 3.0% 1.4% (22.2%) 11.2% (1.7%)
OTHER INCOME (DEDUCTIONS):
Allowance for equity funds used during 4,471 - - - 4,471
construction
Gain/(loss) on sale of assets - net 410 (75) (217) - 118
Interest and dividend income (48,433) (4,390) (3,789) 4,242 (52,370)
Equity in earnings of unconsolidated
equity affiliates - - (10,993) - (10,993)
Miscellaneous - net 18,226 (83) (24,792) 235 (6,414)
-----------------------------------------------------------------
Total (25,327) (4,548) (39,791) 4,477 (65,188)
-----------------------------------------------------------------
INTEREST AND OTHER CHARGES:
Interest on long-term debt (31,426) - 21,876 - (9,549)
Other interest - net (67,271) (7,272) (26,820) 4,242 (97,122)
Distributions on preferred securities - - - - -
of subsidiaries
Allowance for borrowed funds used (2,760) - - - (2,760)
during construction
-----------------------------------------------------------------
Total (101,457) (7,272) (4,944) 4,242 (109,430)
-----------------------------------------------------------------
INCOME (LOSS) BEFORE INCOME TAXES 68,381 (1,451) (357,696) - (290,766)
INCOME TAXES 33,847 (1,532) (140,573) - (108,259)
-----------------------------------------------------------------
CONSOLIDATED NET INCOME (LOSS) 34,534 81 (217,123) - (182,507)
PREFERRED DIVIDEND REQUIREMENTS OF SUBSIDIARIES
AND OTHER (567) - - - (567)
-----------------------------------------------------------------
EARNINGS (LOSS) APPLICABLE TO COMMON STOCK $ 35,101 $ 81 $ (217,123) $ - $(181,940)
=================================================================
Margin % 2.0% 7.9% (13.9%) 0.0% (1.1%)
EARNINGS (LOSS) PER AVERAGE COMMON SHARE:
BASIC $0.13 $0.00 ($0.98) ($0.85)
DILUTED $0.13 $0.00 ($0.97) ($0.84)
*Totals may not foot due to rounding.
Entergy Corporation
Consolidating Income Statement
Twelve Months Ended September 30, 2002
(Dollars in thousands)
(Unaudited)
U.S. Parent & Competitive Eliminations Consolidated
Utilities Other Businesses
OPERATING REVENUES:
Domestic electric $6,522,109 $ - $ - $ (1,280) $ 6,520,829
Natural gas 117,071 - - - 117,071
Competitive businesses - 40,683 1,638,571 (5,558) 1,673,697
-----------------------------------------------------------------
Total 6,639,180 40,683 1,638,571 (6,838) 8,311,597
-----------------------------------------------------------------
OPERATING EXPENSES:
Operating and Maintenance:
Fuel, fuel related expenses, and gas 1,940,925 - 276,311 - 2,217,236
purchased for resale
Purchased power 665,981 909 96,950 (5,766) 758,074
-----------------------------------------------------------------
Gross Margin 4,032,274 39,774 1,265,310 (1,072) 5,336,287
Margin % 60.7% 97.8% 77.2% 15.7% 64.2%
Nuclear refueling outage expenses 59,805 - 38,830 - 98,634
Provision for turbine commitments,
asset impairments and restructuring
charges - - 391,557 - 391,557
Other operation and maintenance 1,621,367 94,143 797,837 (2,382) 2,510,966
Decommissioning 32,526 - - - 32,526
Taxes other than income taxes 342,846 2,618 50,421 - 395,885
-----------------------------------------------------------------
Total 4,663,450 97,670 1,651,906 (8,148) 6,404,878
-----------------------------------------------------------------
EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION,
AND AMORTIZATION 1,975,730 (56,987) (13,335) 1,310 1,906,719
-----------------------------------------------------------------
Margin % 29.8% (140.1%) (0.8%) (19.2%) 22.9%
DEPRECIATION AND AMORTIZATION:
Depreciation and amortization 765,050 5,352 61,940 - 832,341
Other regulatory charges (credits) (163,957) - - - (163,957)
-----------------------------------------------------------------
Total 601,093 5,352 61,940 - 668,384
-----------------------------------------------------------------
OPERATING INCOME (LOSS) 1,374,637 (62,339) (75,275) 1,310 1,238,335
-----------------------------------------------------------------
Margin % 20.7% (153.2%) (4.6%) (19.2%) 14.9%
OTHER INCOME (DEDUCTIONS):
Allowance for equity funds used during 30,680 - - - 30,680
construction
Gain/(loss) on sale of assets - net 3,020 (30) 2,355 - 5,345
Interest and dividend income 31,269 32,913 73,360 (30,107) 107,435
Equity in earnings of unconsolidated
equity affiliates - - 161,222 - 161,222
Miscellaneous - net (21,138) 4,974 (3,043) (1,309) (20,517)
-----------------------------------------------------------------
Total 43,831 37,857 233,894 (31,416) 284,165
-----------------------------------------------------------------
INTEREST AND OTHER CHARGES:
Interest on long-term debt 443,597 - 91,775 - 535,372
Other interest - net 36,993 34,288 59,342 (30,107) 100,517
Distributions on preferred securities 18,837 - - - 18,837
of subsidiaries
Allowance for borrowed funds used (24,179) - - - (24,179)
during construction
-----------------------------------------------------------------
Total 475,248 34,288 151,117 (30,107) 630,547
-----------------------------------------------------------------
INCOME (LOSS) BEFORE INCOME TAXES 943,220 (58,770) 7,502 - 891,953
INCOME TAXES 334,131 (595) 13,898 - 347,434
-----------------------------------------------------------------
INCOME (LOSS) BEFORE CUMULATIVE EFFECT OF
ACCOUNTING CHANGE 609,089 (58,174) (6,396) - 544,519
CUMULATIVE EFFECT OF ACCOUNTING CHANGE (net of
taxes) - - 23,482 - 23,482
-----------------------------------------------------------------
CONSOLIDATED NET INCOME (LOSS) 609,089 (58,174) 17,086 - 568,001
PREFERRED DIVIDEND REQUIREMENTS OF SUBSIDIARIES
AND OTHER 23,744 - - - 23,744
-----------------------------------------------------------------
EARNINGS (LOSS) APPLICABLE TO COMMON STOCK $ 585,345 $ (58,174) $ 17,086 $ - $544,257
=================================================================
Margin % 8.8% (143.0%) 1.0% - 6.5%
EARNINGS (LOSS) PER AVERAGE COMMON SHARE:
BASIC $2.63 ($0.27) $0.08 $2.44
DILUTED $2.58 ($0.26) $0.08 $2.40
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
BASIC 222,759,877
DILUTED 226,646,942
*Totals may not foot due to rounding.
Entergy Corporation
Consolidating Income Statement
Twelve Months Ended September 30, 2001
(Dollars in thousands)
(Unaudited)
U.S. Parent & Competitive Eliminations Consolidated
Utilities Other Businesses
OPERATING REVENUES:
Domestic electric $7,672,390 $ 4 $ - $ (5,640) $ 7,666,754
Natural gas 228,908 - - - 228,908
Competitive businesses - 27,801 1,936,428 (19,275) 1,944,954
-----------------------------------------------------------------
Total 7,901,298 27,805 1,936,428 (24,915) 9,840,616
-----------------------------------------------------------------
OPERATING EXPENSES:
Operating and Maintenance:
Fuel, fuel related expenses, and gas 2,965,672 - 960,243 (302) 3,925,613
purchased for resale
Purchased power 972,765 - 79,985 (21,350) 1,031,400
-----------------------------------------------------------------
Gross Margin 3,962,861 27,805 896,200 (3,263) 4,883,603
Margin % 50.2% 100.0% 46.3% 13.1% 49.6%
Nuclear refueling outage expenses 67,516 - 13,938 - 81,454
Provision for turbine commitments,
asset impairments and restructuring
charges - - - - -
Other operation and maintenance 1,438,360 110,146 525,071 (4,870) 2,068,707
Decommissioning 6,124 - - - 6,124
Taxes other than income taxes 363,894 2,466 33,356 - 399,716
-----------------------------------------------------------------
Total 5,814,331 112,612 1,612,593 (26,522) 7,513,014
-----------------------------------------------------------------
EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION,
AND AMORTIZATION 2,086,967 (84,807) 323,835 1,607 2,327,602
-----------------------------------------------------------------
Margin % 26.4% (305.0%) 16.7% (6.4%) 23.7%
DEPRECIATION AND AMORTIZATION:
Depreciation and amortization 665,253 4,159 44,821 - 714,233
Other regulatory charges (credits) (24,908) - - - (24,908)
-----------------------------------------------------------------
Total 640,345 4,159 44,821 - 689,325
-----------------------------------------------------------------
OPERATING INCOME (LOSS) 1,446,622 (88,966) 279,014 1,607 1,638,277
-----------------------------------------------------------------
Margin % 18.3% (320.0%) 14.4% (6.4%) 16.6%
OTHER INCOME (DEDUCTIONS):
Allowance for equity funds used during 26,383 - - - 26,383
construction
Gain/(loss) on sale of assets - net 2,711 77 217 - 3,005
Interest and dividend income 86,192 49,343 65,722 (32,540) 168,717
Equity in earnings of unconsolidated
equity affiliates 2 - 153,957 - 153,959
Miscellaneous - net (32,299) 3,452 22,721 (1,607) (7,733)
-----------------------------------------------------------------
Total 82,989 52,872 242,617 (34,147) 344,331
-----------------------------------------------------------------
INTEREST AND OTHER CHARGES:
Interest on long-term debt 477,963 - 31,898 - 509,861
Other interest - net 105,512 36,611 93,576 (32,540) 203,159
Distributions on preferred securities 18,838 - - - 18,838
of subsidiaries
Allowance for borrowed funds used (21,079) - - - (21,079)
during construction
-----------------------------------------------------------------
Total 581,234 36,611 125,474 (32,540) 710,779
-----------------------------------------------------------------
INCOME (LOSS) BEFORE INCOME TAXES 948,377 (72,705) 396,157 - 1,271,829
INCOME TAXES 370,978 (29,246) 156,146 - 497,878
-----------------------------------------------------------------
INCOME (LOSS) BEFORE CUMULATIVE EFFECT OF
ACCOUNTING CHANGE 577,399 (43,459) 240,011 - 773,951
CUMULATIVE EFFECT OF ACCOUNTING CHANGE (net of
taxes) - - - - -
-----------------------------------------------------------------
CONSOLIDATED NET INCOME (LOSS) 577,399 (43,459) 240,011 - 773,951
PREFERRED DIVIDEND REQUIREMENTS OF SUBSIDIARIES
AND OTHER 25,098 - - - 25,098
-----------------------------------------------------------------
EARNINGS (LOSS) APPLICABLE TO COMMON STOCK $ 552,301 $ (43,459) $ 240,011 $ - $748,853
=================================================================
Margin % 7.0% (156.3%) 12.4% - 7.6%
EARNINGS (LOSS) PER AVERAGE COMMON SHARE:
BASIC $2.51 ($0.20) $1.09 $3.40
DILUTED $2.46 ($0.20) $1.07 $3.33
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
BASIC 220,574,276
DILUTED 224,689,451
*Totals may not foot due to rounding.
Entergy Corporation
Consolidating Income Statement
Twelve Months Ended September 30, 2002 vs. 2001
Increase/(Decrease)
(Dollars in thousands)
(Unaudited)
U.S. Parent & Competitive Eliminations Consolidated
Utilities Other Businesses
OPERATING REVENUES:
Domestic electric $(1,150,281) $ (4) $ - $ 4,360 $(1,145,925)
Natural gas (111,837) - - - (111,837)
Competitive businesses - 12,882 (297,857) 13,717 (271,258)
-----------------------------------------------------------------
Total (1,262,118) 12,878 (297,857) 18,077 (1,529,020)
-----------------------------------------------------------------
OPERATING EXPENSES:
Operating and Maintenance:
Fuel, fuel related expenses, and gas (1,024,747) - (683,932) 302 (1,708,377)
purchased for resale
Purchased power (306,784) 909 16,965 15,584 (273,326)
-----------------------------------------------------------------
Gross Margin 69,413 11,969 369,110 2,191 452,684
Margin % 10.6% (2.2%) 30.9% 2.6% 14.6%
Nuclear refueling outage expenses (7,711) - 24,892 - 17,180
Provision for turbine commitments,
asset impairments and restructuring
charges - - 391,557 - 391,557
Other operation and maintenance 183,007 (16,003) 272,766 2,488 442,259
Decommissioning 26,402 - - - 26,402
Taxes other than income taxes (21,048) 152 17,065 - (3,831)
-----------------------------------------------------------------
Total (1,150,881) (14,942) 39,313 18,374 (1,108,136)
-----------------------------------------------------------------
EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION,
AND AMORTIZATION (111,237) 27,820 (337,170) (297) (420,883)
-----------------------------------------------------------------
Margin % 3.3% 164.9% (17.5%) (12.7%) (0.7%)
DEPRECIATION AND AMORTIZATION:
Depreciation and amortization 99,797 1,193 17,119 - 118,108
Other regulatory charges (credits) (139,049) - - - (139,049)
-----------------------------------------------------------------
Total (39,252) 1,193 17,119 - (20,941)
-----------------------------------------------------------------
OPERATING INCOME (LOSS) (71,985) 26,627 (354,289) (297) (399,943)
-----------------------------------------------------------------
Margin % 2.4% 166.7% (19.0%) (12.7%) (1.7%)
OTHER INCOME (DEDUCTIONS):
Allowance for equity funds used during 4,297 - - - 4,297
construction
Gain/(loss) on sale of assets - net 309 (107) 2,138 - 2,340
Interest and dividend income (54,923) (16,430) 7,638 2,433 (61,282)
Equity in earnings of unconsolidated
equity affiliates (2) - 7,265 - 7,263
Miscellaneous - net 11,161 1,522 (25,764) 298 (12,784)
-----------------------------------------------------------------
Total (39,158) (15,015) (8,723) 2,731 (60,166)
-----------------------------------------------------------------
INTEREST AND OTHER CHARGES:
Interest on long-term debt (34,366) - 59,877 - 25,511
Other interest - net (68,519) (2,324) (34,234) 2,434 (102,643)
Distributions on preferred securities (1) - - - (1)
of subsidiaries
Allowance for borrowed funds used (3,100) - - - (3,100)
during construction
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Total (105,986) (2,324) 25,643 2,434 (80,233)
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INCOME (LOSS) BEFORE INCOME TAXES (5,157) 13,936 (388,655) 1 (379,876)
INCOME TAXES (36,847) 28,651 (142,248) - (150,444)
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INCOME (LOSS) BEFORE CUMULATIVE EFFECT OF
ACCOUNTING CHANGE 31,690 (14,715) (246,407) - (229,432)
CUMULATIVE EFFECT OF ACCOUNTING CHANGE (net of
taxes) - - 23,482 - 23,482
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CONSOLIDATED NET INCOME (LOSS) 31,690 (14,715) (222,925) - (205,950)
PREFERRED DIVIDEND REQUIREMENTS OF SUBSIDIARIES
AND OTHER (1,354) - - - (1,354)
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EARNINGS (LOSS) APPLICABLE TO COMMON STOCK $ 33,044 $ (14,715) $ (222,925) $ - $(204,596)
=================================================================
Margin % 1.8% 13.3% (11.4%) - (1.1%)
EARNINGS (LOSS) PER AVERAGE COMMON SHARE:
BASIC $0.12 ($0.07) ($1.01) ($0.96)
DILUTED $0.12 ($0.06) ($0.99) ($0.93)
*Totals may not foot due to rounding.
Entergy Corporation
Consolidated Cash Flow Statement
Year to Date September 30, 2002 vs. 2001
(Dollars in thousands)
(Unaudited)
2002 2001 Variance
OPERATING ACTIVITIES
Consolidated net income $541,401 $723,907 ($182,506)
Noncash items included in net income:
Reserve for regulatory adjustments 10,767 (357,880) 368,647
Other regulatory charges (credits) - net (149,340) (5,894) (143,446)
Depreciation, amortization, and decommissioning 649,997 509,350 140,647
Deferred income taxes and investment tax credits (169,905) (53,037) (116,868)
Allowance for equity funds used during construction (23,730) (19,259) (4,471)
(Gain) loss on sale of assets - net (2,379) (2,261) (118)
Equity in undistributed earnings of subsidiaries and unconsolidated affiliates (140,964) (145,312) 4,348
Provision for turbine commitments, asset impairments and restructuring charges 391,557 - 391,557
Changes in working capital:
Receivables (233,194) 33,355 (266,549)
Fuel inventory (193) (24,898) 24,705
Accounts payable 68,004 (467,749) 535,753
Taxes accrued 496,789 457,995 38,794
Interest accrued 5,158 10,289 (5,131)
Deferred fuel 85,998 367,105 (281,107)
Other working capital accounts (83,990) (11,291) (72,699)
Provision for estimated losses and reserves 198 (10,706) 10,904
Changes in other regulatory assets 206,503 61,583 144,920
Other 17,600 163,459 (145,859)
---------- ---------- ---------
Net cash flow provided by operating activities 1,670,277 1,228,756 441,521
---------- ---------- ---------
INVESTING ACTIVITIES
Construction/capital expenditures (1,053,000) (939,662) (113,338)
Allowance for equity funds used during construction 23,730 19,259 4,471
Nuclear fuel purchases (217,398) (119,277) (98,121)
Proceeds from sale/leaseback of nuclear fuel 160,062 60,679 99,383
Proceeds from sale of businesses 244,578 805,945 (561,367)
Investment in other nonregulated/nonutility properties (200,119) (565,333) 365,214
Decrease (increase) in other investments 38,964 (632,548) 671,512
Changes in other temporary investments - net 150,000 (250,600) 400,600
Decommissioning trust contributions and realized change in trust assets (49,458) (79,047) 29,589
Other regulatory investments (45,262) (36,461) (8,801)
Other 116,654 (12,200) 128,854
---------- ---------- ---------
Net cash flow used in investing activities (831,249) (1,749,245) 917,996
---------- ---------- ---------
FINANCING ACTIVITIES
Proceeds from the issuance of:
Long-term debt 368,589 489,295 (120,706)
Common stock 115,569 62,335 53,234
Retirement of:
Long-term debt (1,166,412) (877,088) (289,324)
Repurchase of common stock (103,579) (36,895) (66,684)
Redemption of preferred stock (1,858) (39,574) 37,716
Changes in credit line borrowings - net 379,333 662,997 (283,664)
Dividends paid:
Common stock (221,215) (202,112) (19,103)
Preferred stock (17,796) (20,281) 2,485
---------- ---------- ---------
Net cash flow used in financing activities (647,369) 38,677 (686,046)
---------- ---------- ---------
Effect of exchange rates on cash and cash equivalents 5,614 664 4,950
---------- ---------- ---------
Net increase (decrease) in cash and cash equivalents 197,273 (481,148) 678,421
Cash and cash equivalents at beginning of period 751,573 1,382,424 (630,851)
---------- ---------- ---------
Cash and cash equivalents at end of period $948,846 $901,276 $47,570
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