[Logo of Entergy] Exhibit 99.1
For further information:
Nancy Morovich, VP, Investor Relations
Phone 504/576-5506, Fax 504/576-2897
INVESTOR NEWS nmorovi@entergy.com
February 4, 2003
ENTERGY REPORTS SOLID EARNINGS FOR
FOURTH QUARTER 2002
NEW ORLEANS - Entergy Corporation announced consolidated fourth
quarter 2002 as reported earnings per share of $0.33 compared with
$0.09 in 2001. Entergy's operational earnings per share for fourth
quarter were $0.34 versus $0.18 in fourth quarter 2001. The 89
percent increase in the quarter's operational earnings was driven by
the continued strength of Entergy's competitive businesses. Fourth
quarter 2002 reported results included special items related to
impairments recorded in connection with certain assets and contracts
in the non-nuclear wholesale asset business, the impact of which was
largely offset by tax benefits recorded in connection with the sale of
Damhead Creek, an 800 MW gas-fired plant in the United Kingdom.
For the year 2002, consolidated as reported earnings per share were
$2.64 with operational earnings per share of $3.81. This compares
with $3.23 in both as reported and operational earnings per share in
2001. Cash flow from operations for fourth quarter 2002 continued to
be strong at $511 million which led to the second consecutive year
where Entergy generated over $2 billion in operating cash flow.
"2002 was a year of disappointing performance in our industry, and as
these results became more common and more unexpected, the crisis in
investor confidence affected everyone," said J. Wayne Leonard,
Entergy's chief executive officer. "Despite all of this Entergy
maintained its strong cash position, improved its credit quality and
liquidity, and exceeded its targeted operational earnings growth. We
now look ahead in 2003 with renewed commitment to build on our
excellence in utility performance, grow our nuclear business,
reinforce our energy trading capability, and continue our near five-
year record of exceeding expectations."
Table 1 provides a comparative summary of earnings per share for
fourth quarter and year-to-date 2002.
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Table 1: Entergy Corporation Consolidated Results
Fourth Quarter and Year-to-Date 2002 vs. 2001
- ---------------------------------------------------------------------
(Per share in U.S. $)
Fourth Quarter Year-to-Date
2002 2001 $ 2002 2001 $
Change Change
As Reported
U.S. Utility 0.19 0.20 (0.01) 2.57 2.45 0.12
Parent & Other (0.11) (0.20) 0.09 (0.17) (0.26) 0.09
Competitive Businesses 0.25 0.09 0.16 0.24 1.04 (0.80)
----------------------------------------
Consolidated Earnings 0.33 0.09 0.24 2.64 3.23 (0.59)
Less Special Items
U.S. Utility - - - - (0.01) 0.01
Parent & Other - (0.03) 0.03 - (0.08) 0.08
Competitive Businesses (0.01) (0.06) 0.05 (1.17) 0.09 (1.26)
----------------------------------------
Total (0.01) (0.09) 0.08 (1.17) - (1.17)
Operational
U.S. Utility 0.19 0.20 (0.01) 2.57 2.46 0.11
Parent & Other (0.11) (0.17) 0.06 (0.17) (0.18) 0.01
Competitive Businesses 0.26 0.15 0.11 1.41 0.95 0.46
----------------------------------------
Consolidated Earnings 0.34 0.18 0.16 3.81 3.23 0.58
Weather Impact - (0.02) 0.02 (0.01) (0.01) -
- ---------------------------------------------------------------------
I. U.S. Utility
In fourth quarter 2002, as reported and operational utility earnings
were $0.19 per share, compared to $0.20 in fourth quarter 2001. The
decrease in fourth quarter earnings in 2002 compared to 2001 was due
primarily to higher intercompany tax accruals and higher operation and
maintenance expenses, both of which were largely offset by higher
sales volume across all customer classes. The increased operation and
maintenance expenses included higher fossil plant outage expense,
higher customer service support expense, and higher employee benefits
expense. Utility operating cash flow for fourth quarter 2002 was $892
million, an increase of $471 million compared to the same period last
year due primarily to the receipt in 2002 of cash for utilization of
utility tax losses on the 2001 consolidated tax return.
Higher electricity usage in fourth quarter 2002 increased residential
sales by 15 percent, compared to fourth quarter 2001. This
significant increase is due to the confluence of positive factors - a
return to normal weather and an improved economy - and this rate of
growth is not expected to continue going forward. Commercial and
governmental sales were up 5 percent, reflecting increased usage
across all commercial customer classes, while industrial sales
experienced an increase of 2 percent quarter over quarter. Higher
usage in the petroleum refining sector was the primary contributor to
the increase in industrial usage. The percentage fluctuations in
sales across retail customer classes, which totaled 6 percent, is not
unusual in the fourth quarter since overall usage for this time of
year is generally low and even modest changes in customer demand can
represent a significant percentage increase on a relatively small
base. Retail sales for the year 2002 were up 2 percent which is in
line with historical trends and growth projections for the future. A
summary of sales volumes by customer class is included in Appendix A
to this release.
For the year 2002, the utility earned $2.57 per share on both an as
reported and operational basis, compared with $2.45 per share as
reported, and $2.46 per share operational for 2001. The higher
earnings in 2002 were due primarily to higher sales volumes across
most customer classes, reflecting some strengthening in the economy,
as well as reduced expenses as the result of the cessation of goodwill
amortization required in accordance with Statement of Financial
Accounting Standards 142. These positive effects were partially
offset by higher operation and maintenance expenses reflecting higher
fossil plant outage costs and higher nuclear and customer service
support costs.
Table 2 provides a summary of the utility's key operational measures
with quarter-to-quarter and year-to-date comparisons.
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Table 2: Utility Operational Performance Measures
Fourth Quarter and Year-to-Date 2002 vs. 2001 (see appendix D for
definitions of measures)
- -----------------------------------------------------------------------------
Fourth Quarter Year-to-Date
2002 2001 % 2002 2001 %
Change Change
Utility
Generation in GWh 19,687 21,245 (7%) 90,051 94,610 (5%)
GWh billed
Residential 7,279 6,309 15% 32,581 31,080 5%
Commercial and Gov't 6,811 6,499 5% 28,032 27,299 3%
Industrial 10,248 10,098 2% 41,018 41,577 (1%)
Operation & maintenance
expense/MWh $23.84 $19.44 23% $19.29 $15.55 24%
Reliability
SAIFI 1.99 2.13 (7%)
SAIDI 164 162 1%
Reliability complaints 19 22 (14%) 115 119 (3%)
Number of customers
Residential 2,236,507 2,218,410 1%
Commercial & Gov't 317,167 311,215 2%
Industrial 41,133 41,125 0%
- -----------------------------------------------------------------------------
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.
These efforts resulted in Entergy Mississippi, Inc. obtaining a rate
increase during fourth quarter 2002 which became effective in 2003.
Appendix C provides a summary of the utility's pending regulatory
events and regulatory recovery mechanisms by operating subsidiary.
II. Parent & Other
Parent & Other recorded a loss of $(0.11) per share in fourth quarter
2002 on both an as reported and operational basis. This compares to a
loss of $(0.20) per share as reported, and $(0.17) per share
operational, in fourth quarter 2001. The improvement in 2002 was due
primarily to a decrease in Parent consolidated tax benefits allocated
to other Entergy companies under the Entergy Tax Allocation Agreement,
from the 2001 consolidated tax return compared to the 2000 tax return.
The decrease in consolidated tax benefits is due to a decreased
taxable loss at the Parent in 2001 compared to 2000. In addition,
higher interest income contributed to the improved results at Parent
in the 2002 period. Finally, fourth quarter 2001 as reported results
included the impact of a $(0.03) special item recorded in connection
with the write-down of a non-core business investment.
For the full year on an as reported basis, Parent & Other had a loss
of $(0.17) per share in 2002 compared to $(0.26) per share in 2001.
The improved as reported results reflects the absence in 2002 of
special items recorded at Parent & Other during 2001 related to
expenses of a terminated merger and the write-down of a non-core
business investment. For the full year, Parent & Other had an
operational loss of $(0.17) in 2002 compared with an operational loss
of $(0.18) in 2001.
III. Competitive Businesses
Earnings were $0.25 per share for the competitive businesses in fourth
quarter 2002 compared to $0.09 in the same period of 2001. Fourth
quarter 2002 results include a net special item of $(0.01) while 2001
earnings included special items totaling $(0.06). The special amount
in 2002 is comprised of impairments recorded in Entergy's non-nuclear
wholesale asset business in connection with the RS Cogen project and
write-down of a gas generation and services contract entered into by
Entergy Power Management Corporation prior to the formation of Entergy-
Koch L.P. The impact of these impairments was largely offset by tax
benefits recorded as a result of the sale in fourth quarter 2002 of
the Damhead Creek project in the UK. Excluding special items,
operational earnings increased 73 percent, from $0.15 per share in
fourth quarter 2001 to $0.26 in fourth quarter 2002.
For the year 2002, the decrease in earnings at the competitive
businesses, $0.24 per share compared to $1.04, was driven primarily by
costs associated with restructuring Entergy's non-nuclear wholesale
asset business. Operational results improved from $0.95 per share in
2001 to $1.41 in 2002 due primarily to additional nuclear capacity and
higher power contract pricing at Entergy Nuclear and solid results at
Entergy-Koch L.P. in both the trading and gas pipeline businesses.
Operating cash flow at the competitive businesses for fourth quarter
2002 compared to the same period last year decreased by $59 million to
$44 million due primarily to higher costs in Entergy Nuclear as a
result of three scheduled plant refueling outages completed in fourth
quarter 2002. No refueling outages were conducted in fourth quarter
2001.
Table 3 provides a 2002 vs. 2001 comparison of contributions by
competitive business for fourth quarter and year-to-date, on both
as reported and operational bases.
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Table 3: Competitive Businesses Contributions to Earnings Per Share
Fourth Quarter and Year-to-Date 2002 vs. 2001
- ----------------------------------------------------------------------
(Per share in U.S. $)
Fourth Quarter Year-to-Date
2002 2001 $ 2002 2001 $
Change Change
As Reported
Entergy Nuclear 0.15 0.13 0.02 0.88 0.57 0.31
--------------------------------------
Energy Commodity Services
Non-nuclear wholesale
assets (0.05)(0.08) 0.03 (1.22) - (1.22)
Entergy-Koch Trading 0.07 0.01 0.06 0.36 0.34 0.02
Gulf South Pipeline 0.08 0.03 0.05 0.22 0.13 0.09
--------------------------------------
Total Energy Commodity
Services 0.10 (0.04) 0.14 (0.64) 0.47 (1.11)
--------------------------------------
Total 0.25 0.09 0.16 0.24 1.04 (0.80)
Less Special Items
Entergy Nuclear - - - - - -
--------------------------------------
Energy Commodity Services
Non-nuclear wholesale (0.01)(0.06) 0.05 (1.17) 0.09 (1.26)
assets
Entergy-Koch Trading - - - - - -
Gulf South Pipeline - - - - - -
--------------------------------------
Total Energy Commodity
Services (0.01)(0.06) 0.05 (1.17) 0.09 (1.26)
--------------------------------------
Total (0.01)(0.06) 0.05 (1.17) 0.09 (1.26)
Operational
Entergy Nuclear 0.15 0.13 0.02 0.88 0.57 0.31
--------------------------------------
Energy Commodity Services
Non-nuclear wholesale
assets (0.04)(0.02) (0.02)(0.05) (0.09) 0.04
Entergy-Koch Trading 0.07 0.01 0.06 0.36 0.34 0.02
Gulf South Pipeline 0.08 0.03 0.05 0.22 0.13 0.09
--------------------------------------
Total Energy Commodity
Services 0.11 0.02 0.09 0.53 0.38 0.15
--------------------------------------
Total 0.26 0.15 0.11 1.41 0.95 0.46
- ----------------------------------------------------------------------
Table 4 provides a summary of Entergy's non-utility generation in MWh
sold forward for the years 2003, 2004, and 2005.
- ----------------------------------------------------------------------
Table 4: Competitive Businesses Percent of Generation Sold Forward
Years 2003 through 2005 (see appendix D for definitions of measures)
- ----------------------------------------------------------------------
2003 2004 2005
Entergy Nuclear
Planned TWh of generation 33 33 34
Percent of total planned competitive generation 91% 91% 90%
Percent of EN's total planned generation sold forward 100 92% 25%
Average realized and assumed contract price per MWh $37 $38 $36
Energy Commodity Services
Planned TWh of generation 3 3 4
Percent of total planned competitive generation 9% 9% 10%
Percent of ECS' total planned generation sold forward 38% 18% 22%
Average realized contract spark spread per MWh $12 $11 $11
Average assumed market spark spread per MWh $6 $0 $0
Percent of Competitive Businesses' planned 95% 85% 25%
generation sold forward
- ----------------------------------------------------------------------
Entergy Nuclear
Entergy Nuclear (EN) earned $0.15 per share compared to $0.13 in
fourth quarter 2001 on both as reported and operational basis. The
increase was due primarily to the contributions in 2002 from Vermont
Yankee, which was acquired in July 2002, as well as to higher pricing
in 2002 under certain power purchase contracts. EN's average capacity
factor was 78 percent for fourth quarter 2002 as compared to 95
percent for the same period in 2001 due to the impact of three
scheduled plant refueling outages. These outages also decreased cash
flow from operations this quarter compared to the same period last
year. In addition, the amortization of costs associated with these
refueling outages, completed at FitzPatrick, Indian Point 2 and
Vermont Yankee, increased production costs quarter to quarter.
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
Fourth Quarter and Year-to-Date 2002 vs. 2001 (see appendix D
for definitions of measures)
- ----------------------------------------------------------------------
Fourth Quarter Year-to-Date
2002 2001 % 2002 2001 %
Change Change
Entergy Nuclear
Net MW in operation 3,955 3,445 15%
Average realized price
per MWh 40.87 35.27 16%
Production cost per MWh 22.18 19.55 13% 20.20 18.60 9%
Generation in GWh 6,843 7,260 -6% 29,953 22,614 32%
Capacity factor 78% 95% -18% 93% 93% 0%
Refueling outage duration
Current Last %
Period Outage Change
FitzPatrick 24 38 37%
Indian Point 2 33 (a)
Vermont Yankee 21 22 5%
- ----------------------------------------------------------------------
(a) Indian Point 2 was last refueled during an extended shutdown in
2000 prior to Entergy's acquisition of the plant.
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 $0.10 per share in fourth quarter 2002 compared
to a loss of $(0.04) in the same period last year. The improvement in
results reported by ECS in 2002 compared to last year is due primarily
to strong earnings in trading, improved results in the gas pipeline
business, and the absence in 2002 of losses realized in fourth quarter
2001 in connection with asset sales in the non-nuclear wholesale asset
business. Operational earnings in fourth quarter 2002 were $0.11
compared to $0.02 in the same period of 2001. As was the case in the
first three 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 fourth quarter of
this year.
Entergy-Koch L.P. contributed higher operational earnings in fourth
quarter 2002 compared to the same period in 2001 primarily as a result
of earnings at Entergy-Koch Trading (EKT). In addition, Gulf South
Pipeline realized higher earnings even as volumes of gas transported
decreased due to more favorable transportation contract pricing.
EKT continues to rigorously manage risks while exercising strict
trading discipline. Average Daily Earnings at Risk during the fourth
quarter increased to $13.1 million, but remains within the risk limits
authorized for this business. The duration of the trading book
remained relatively short, with essentially all of the mark to market
value converting to cash by the end of 2004. Further, 77 percent of
the total market value of EKT's mark to market portfolio is based on
actively quoted prices and approximately 86 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 21 percent of Entergy's consolidated
operational earnings for fourth quarter 2002.
A special item of $(0.01) per share was recorded at Entergy's non-
nuclear wholesale asset business. This special item consists of
impairments recorded in connection with the RS Cogen project and a gas
generation and services contract entered into by Entergy Power
Management Corporation prior to the formation of Entergy-Koch L.P.
The impact of these impairments was largely offset by tax benefits
recorded as a result of the sale in fourth quarter 2002 of the Damhead
Creek project in the UK.
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
Fourth Quarter and Year-to-Date 2002 vs. 2001 (see appendix D
for definitions of measures)
- ----------------------------------------------------------------------
Fourth Quarter Year-to-Date
2002 2001 % 2002 2001 %
Change Change
Entergy-Koch Trading
Electricity volatility 41% 37% 11% 48% 78% -38%
Gas volatility 50% 80% -38% 61% 72% -15%
Electricity marketed (GWh)(b)136,833 60,892 125% 408,038 180,893 126%
Gas marketed (Bcf/d) (b) 5.0 3.5 43% 5.8 3.0 93%
Gain/loss days 1.3 2.2 -41% 1.8 2.8 -35%
Daily average Earnings at Risk 13.1 5.3 147% 10.8 6.4 69%
Gulf South Pipeline
Throughput 2.22 2.51 -12% 2.40 2.45 -2%
Production cost $0.113 $0.098 15% $0.094 $0.093 1%
Non-nuclear Wholesale Assets
Net MW in operation (b) 1,421 2,410 -41%
Generation in GWh 250 196 28%
Average realized price per
MWh 14 19 -26%
Net MW under construction 385 373 3%
- ----------------------------------------------------------------------
(b) Previously reported volumes, which included only U.S. trading, have
been adjusted to reflect both U.S. and Europe volumes traded.
Table 7 provides additional details on Entergy-Koch's trading
activities during 2002.
- -------------------------------------------------------------------------
Table 7: Entergy-Koch Trading Details (see appendix D for definitions
of measures)
- -------------------------------------------------------------------------
2002
--------
Changes in Fair Value of Trading Contracts
($ in millions)
Fair value of contracts outstanding at December 31, 2001 106.4
(Gain)/Loss from contracts realized/settled during the period (346.7)
Initial recorded value of contracts entered into during the period 6.8
Net option premiums received during the period (90.1)
Change in fair value of contracts attributable to market movements 414.6
during the period
Other changes in fair value -
Net change in contracts outstanding during the period (15.4)
Fair value of contracts outstanding at December 31, 2002 90.9
Counterparty Credit Exposure
(percent of fair value of contracts at end of period)
Investment Grade 86%
Below Investment Grade or Not-Rated 14%
2002 2001 Change
------------------------
Balance Sheet ($ in millions)
Mark-to-market accounting detail:
Fair value of contracts at end of period 90.9 106.4 (15.4)
Partners' capital 1,209 1,025 184
Fair value of contracts as percent of partners' capital 8% 10% -20%
2003 2004 2005+ Total
-------------------------------
Maturities and Sources for Fair Value of Trading Contracts at
December 31, 2002 ($ in millions)
Prices actively quoted 45.0 45.1 (20.2) 69.9
Prices provided by other sources 24.4 3.3 1.9 29.6
Prices based on models (13.3) 1.3 3.4 (8.6)
------------------------------
Total 56.2 49.7 (15.0) 90.9
- ----------------------------------------------------------------------------------------------------
IV. Variance Analysis
Tables 8 and 9 below provide fourth quarter and year-to-date 2002 vs.
2001 earnings variance analyses for "U.S. Utility, Parent & Other,"
"Competitive Businesses," and "Consolidated."
- --------------------------------------------------------------------------------------
Table 8: Entergy Corporation Earnings Per Share Variance Analysis
Fourth Quarter 2002 vs. 2001
- --------------------------------------------------------------------------------------
(Per share in U.S. $, sorted in consolidated
column, most to least favorable) U.S. Utility, Competitive
Parent & Other Businesses Consolidated
2001 earnings - 0.09 0.09
Income taxes - other 0.11 (c) 0.03 (c) 0.14
Other income (deductions) 0.03 (d) 0.11 (e) 0.14
Other operation & maintenance expense (0.14) (f) 0.25 (g) 0.11
Taxes other than income taxes 0.03 0.01 0.04
Interest expense and other charges 0.02 0.01 0.03
Interest and dividend income (0.01) 0.04 0.03
Decommissioning expense 0.01 - 0.01
Asset/contract impairments and restructuring charges - (0.01) (0.01)
Nuclear refueling outage expense - (0.02) (0.02)
Depreciation/amortization expense (0.01) (0.01) (0.02)
Cumulative effect of accounting change - (0.10) (h) (0.10)
Net revenue (loss) 0.04 (i) (0.15) (j) (0.11)
----- ----- -----
2002 earnings 0.08 0.25 0.33
----- ----- -----
- --------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
Table 9: Entergy Corporation 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 Businesses Consolidated
2001 earnings 2.19 1.04 3.23
Net revenue 0.93 (i) 0.47 (j) 1.40
Interest expense and other charges 0.32 (k) 0.01 0.33
Income taxes - other 0.09 (c) 0.11 (c) 0.20
Other income (deductions) 0.09 (d) 0.02 (e) 0.11
Taxes other than income taxes 0.05 (l) - 0.05
Gain (loss) on sale of assets-net 0.01 (0.01) -
Share repurchase/dilution effect (0.03) - (0.03)
Nuclear refueling outage expense 0.02 (0.07) (m) (0.05)
Decommissioning expense (0.07) (n) - (0.07)
Cumulative effect of accounting change - (0.10) (h) (0.10)
Interest and dividend income (0.16) (o) 0.05 (0.11)
Depreciation/amortization expense (0.29) (p) (0.03) (0.32)
Other operation & maintenance expense (0.75) (f) (0.08) (g) (0.83)
Asset/contract impairments and restructuring - (1.17) (q) (1.17)
charges
----- ----- -----
2002 earnings 2.40 0.24 2.64
----- ----- -----
- ------------------------------------------------------------------------------
(c) 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.
(d) Other income (deductions) increased due primarily to the
suspension of goodwill amortization.
(e) Other income (deductions) increased due primarily to higher
Entergy-Koch earnings.
(f) Other operation & maintenance expense for the quarter increased
due primarily to higher fossil outage expenses, higher customer
service support expenses, and higher employee benefits expenses. The
year-to-date increase was 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 in the current period.
Overall expenses were partially offset by no merger related expenses
in 2002.
(g) Other operation & maintenance expense for the quarter decreased
due primarily to the absence of loss reserves recorded in 2001 on the
then pending sale of Latin American assets and other development
projects. This decrease was partially offset by the costs associated
with the inclusion of operations from Vermont Yankee, acquired in July
2002. On a year-to-date basis, other operation & maintenance expense
increased due to the inclusion of a full year's operations of Indian
Point 2 as well as Vermont Yankee's operations since acquisition, July
2002. These increases in expense were partially offset by the absence
of provisions recorded in 2001 on the then pending sale of Latin
American assets and other development projects.
(h) Cumulative effect of accounting change is due to the absence in
2002 of the positive impact of a 2001 accounting pronouncement that
resulted in recording mark to market revenue in 2001 on a Damhead
Creek gas contract with Shell.
(i) Net revenue increased in fourth quarter 2002 due primarily to the
impact of higher sales volumes across all retail customer segments
resulting from improvement in the local economy as well as the
positive effect of more favorable weather quarter over quarter.
For the year-to-date period, net revenues were favorably impacted
by the recording in 2002 of revenue previously deferred at
Entergy Arkansas per the Transition Cost Account mechanism. The
ice storm settlement with the Arkansas Public Service Commission
reached in May 2002 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)
Fourth Quarter Year-to-Date
Weather 0.02 Weather -
Sales growth/pricing 0.06 Sales growth/pricing 0.17
SERI refund - SERI refund 0.19
Regulatory settlements - Regulatory settlements 0.51
Other (0.04) Other 0.06
Total 0.04 Total 0.93
(j) Net revenue for the quarter decreased primarily as a result of
lower revenues from Damhead Creek and the absence of the gain on the
sale of the Saltend plant which occurred in fourth quarter 2001, the
impact of which was partially offset by the inclusion of operations of
Vermont Yankee. For the year-to-date period, net revenue increased
due to the inclusion of operations of Indian Point 2 for the full year
2002, and Vermont Yankee since acquisition in July 2002. Partially
offsetting these increases was the lack of Saltend net revenues and
the absence of gains on sales of assets, primarily Saltend which was
sold in August 2001.
(k) 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.
(l) 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.
(m) The increase in nuclear outage refueling expense is due to higher
amortization expense for Pilgrim and Indian Point 3 as well as a
portion of amortization expense being recorded in 2002 for refueling
outages completed in fourth quarter 2002 at Indian Point 2, Vermont
Yankee and FitzPatrick.
(n) Decommissioning expense increased due primarily to recording the
effects of the FERC order addressing System Energy's 1995 rate
application in third quarter 2001.
(o) Interest and dividend income decreased due to lower interest
income earned as a result of declining deferred fuel balances on which
interest is accrued and due to recording in 2001 the effects of the
FERC order addressing System Energy's 1995 rate application.
(p) 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 as well as from higher depreciation
on general plant and intangible plant assets.
(q) Asset impairments and restructuring charges reflect the impact of
recording costs associated with impairment reserves recorded in
connection with certain non-nuclear wholesale assets. The impact of
restructuring charges recorded in fourth quarter was largely offset by
the positive impact of the sale of Damhead Creek.
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, are related to prior periods, or are related to discontinued
operations. Special items are included in as reported earnings per
share results but excluded from operational earnings per share and the
timing of recording such items is made in accordance with generally
accepted accounting principles.
- -----------------------------------------------------------------------
Table 10: Entergy Corporation Special Items [shown as positive /
(negative) impact on earnings]
Fourth Quarter and Year-to-Date 2002 vs. 2001
- -----------------------------------------------------------------------
(Per share in U.S. $) Fourth Quarter Year-to-Date
2002 2001 $ 2002 2001 $
Change Change
U.S. Utility Special Items
Merger expenses - - - - (0.01) 0.01
---------------------------------------
Total - - - - (0.01) 0.01
---------------------------------------
Parent & Other Special Items
Merger expenses - - - - (0.05) 0.05
Write-down of MyHomeKey - (0.03) 0.03 - (0.03) 0.03
investment
---------------------------------------
Total - (0.03) 0.03 - (0.08) 0.08
---------------------------------------
Competitive Businesses Special Items
Energy Commodity Services -
Gain (loss) on 0.14 (0.14) 0.28 0.23 0.01 0.22
disposition of assets
Asset and contract (0.15) - (0.15)(0.62) - (0.62)
impairments
Turbine commitment - - - (0.52) - (0.52)
Development costs - - - (0.09) - (0.09)
Restructuring - (0.02) 0.02 (0.17) (0.02)(0.15)
Damhead Creek mark to - 0.10 (0.10) - 0.10 (0.10)
market gas contract
---------------------------------------
Total (0.01) (0.06) 0.05 (1.17) 0.09 (1.26)
---------------------------------------
Total Special Items (0.01) (0.09) 0.08 (1.17) - (1.17)
- -----------------------------------------------------------------------
V. Other Financial Performance Highlights
Entergy generated $511 million in operating cash in fourth quarter
2002, a decrease of $476 million compared to fourth quarter 2001. The
decrease is primarily the result of reduced tax refunds, lower
deferred fuel collections and higher nuclear refueling outage costs.
For the year 2002, Entergy generated in excess of $2 billion of
operating cash making 2002 the second consecutive year that the
company has generated more than $2 billion in operating cash flow. At
the end of fourth quarter 2002, Entergy had approximately $1.3 billion
of cash and cash equivalents and unused revolver capacity of $1,018
million at the Parent and Utility subsidiaries. The current level of
cash along with substantial borrowing capacity provides valuable
financial flexibility to Entergy.
As reported net margin was 7.22 percent, decreasing slightly from
fourth quarter 2001 while operational net margin improved nearly 3
percentage points over last year to 10.43 percent. Return on equity,
on an as reported basis, decreased to 7.84 percent while operational
return on equity climbed to 11.33 percent resulting in nine
consecutive quarters of improvement. Entergy continues to pursue
financial and operational objectives to achieve double-digit
performance in operational net margins and operational returns on
equity.
Entergy's capital structure remains within the target range of 45 to
50 percent debt. The off-balance sheet debt, exclusive of operating
leases, equals $409 million and constitutes about 2 percent of total
capitalization.
Table 11 provides a summary of financial measures with quarter-to-
quarter and year-to-date comparisons.
- -------------------------------------------------------------------------------------------------
Table 11: Entergy Corporation Key Financial Performance Measures
Fourth Quarter and Year-to-Date 2002 vs. 2001 (see appendix D for
definitions of measures)
- -------------------------------------------------------------------------------------------------
Fourth Quarter Year-to-Date
For 3 months ending December 31 2002 2001 Change 2002 2001 Change
---------------------
Operating cash flow ($ millions) 511 987 (476) 2,182 2,216 (34)
For 12 months ending December 31 2002 2001 Change
---------------------
Return on average invested capital - as reported 5.98% 7.26% (1.28)%
Return on average invested capital - operational 7.56% 7.26% 0.30%
Return on average common equity - as reported 7.84% 10.04% (2.20)%
Return on average common equity - operational 11.33% 10.04% 1.29%
Net margin - as reported 7.22% 7.56% (0.34)%
Net margin - operational 10.43% 7.55% 2.88%
FFO interest coverage 4.62 4.34 0.28
Book value per share 35.24 33.78 1.46
End of period shares outstanding (millions) 222.4 220.7 1.7
As of December 31 ($ millions) 2002 2001 Change
---------------------
Revolver capacity 1,018 1,210 (192)
Total gross liquidity 2,353 1,962 391
Total debt 8,588 8,227 361
Off-balance sheet liabilities:
Project debt - 265 (265)
Debt of joint ventures - Entergy's share 409 347 62
Leases - Entergy's share 395 343 52
---------------------
Total off-balance sheet liabilities 804 955 (151)
Rating or other contingent liabilities - 225 (225)
Net debt to net capital 46.3% 49.7% (3.4)%
Net debt including off-balance sheet liabilities 48.9% 52.5% (3.6)%
- -------------------------------------------------------------------------------------------------
Cash and Liquidity
At the end of 2002, Entergy's combined cash balance and unused
capacity on bank revolvers was $2.35 billion. Entergy's $1.45 billion
corporate revolver, $915 million of which was unused at December 31,
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 expects to have significant cash available through 2005 for
three potential uses: investments in new businesses or assets,
repayment of debt, and dividend increases. 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 issuing additional Entergy Corporation term debt, reducing
capital and operation and maintenance spending, and increasing net
debt at the Utility.
Table 12 provides a summary of projected sources and uses of cash for
the years 2003 through 2005 in accordance with Entergy's 2003
financial plan. Sources shown on the table include $2.4 billion of
new debt that Entergy believes it could issue in association with new
investments while maintaining a net debt ratio of 50% or less. This
amount could vary depending upon the type of new investment and the
credit market environment.
- ----------------------------------------------------------------------
Table 12: Entergy Corporation Projected Sources and Uses of Cash
2003-2005
($ in billions)
- ----------------------------------------------------------------------
2003-2005
Beginning cash at 1/1/03 1.3
Entergy Corp. credit revolver - unused portion 0.9
Planned refinancings 3.1
New debt capacity 2.4
Total financings 6.4
Operating cash flow 5.2
-----
Total sources 12.9
Debt maturities 4.4
Capital expenditures 3.4
Dividends 1.0
Targeted liquidity 0.8
-----
Total uses 9.6
Net Liquidity Available for New Investment, Debt 3.3
Repayment, Dividend Increase
- ----------------------------------------------------------------------
Capital Expenditures
Entergy's capital plan from 2003 through 2005 calls for $3.4 billion
of investment; $2.9 billion of this amount is associated with capital
projects that maintain Entergy's existing assets. The remaining $0.5
billion is associated with previously-identified investments such as
the steam generator replacement at Arkansas Nuclear One, Unit 1,
nuclear plant power uprates at Entergy Nuclear, and the completion of
a gas-fired power plant currently under construction in Entergy's non-
nuclear wholesale asset business, and a previously-deferred equity
investment for Entergy's interest in Entergy-Koch.
Table 13 provides a summary of planned capital expenditures for the
period 2003 through 2005.
- ----------------------------------------------------------------------
Table 13: Entergy Corporation Planned Capital Expenditures 2003-2005
($ in billions)
- ----------------------------------------------------------------------
2003 2004 2005 Total
Maintenance capital
U. S. Utility 0.8 0.8 0.9 2.5
Entergy Nuclear 0.1 0.2 0.1 0.4
Energy Commodity Services - - - -
-------------------------
Subtotal 0.9 1.0 1.0 2.9
-------------------------
Other capital commitments
U. S. Utility 0.1 0.1 0.1 0.3
Entergy Nuclear 0.1 - - 0.1
Energy Commodity Services 0.0 0.1 - 0.1
-------------------------
Subtotal 0.2 0.2 0.1 0.5
-------------------------
Total Planned Capital Expenditures 1.1 1.2 1.1 3.4
- ----------------------------------------------------------------------
Debt Refinancing
Entergy has $1.3 billion of debt that matures in 2003, $1.1 billion or
87 percent of which is associated with the Utility. Approximately 63
percent of this amount has been prefunded. Entergy expects to fund
approximately $150 million of remaining Utility 2003 maturities and
all Entergy Nuclear 2003 maturities with cash. The remaining $266
million of Utility 2003 maturities are expected to be refinanced for
periods up to 30 years, consistent with the long term nature of
utility assets. Refinancing activity may be modified periodically in
response to changing market conditions and capital needs.
Table 14 provides details on Entergy's 2003 debt maturities and
refinancing activity through January 31, 2003.
- --------------------------------------------------------------------------
Table 14: Entergy Corporation and Subsidiaries Debt Maturity
and Refinancing Schedule (r)
($ in millions)
- --------------------------------------------------------------------------
Scheduled Maturities 2003 2004 2005- 2010+
2009
U. S. Utility 1,111 855 1,373 3,314
Parent - 595 267 -
Entergy Nuclear 87 91 344 161
Energy Commodity Services 79 - - -
---------------------------------
Total 1,277 1,541 1,984 3,475
2003 Refinancings and cash repayments
completed through January 31, 2003
U. S. Utility (695)
Parent -
Entergy Nuclear -
Energy Commodity Services (s) (79)
----
Total (774)
Remaining2003 Maturities as of January 31,
2003
U. S. Utility 416
Parent -
Entergy Nuclear 87
Energy Commodity Services -
----
Total 503
- --------------------------------------------------------------------------
(r) Long-term debt, including current portion.
(s) Debt associated with Top of Iowa project retired with funds drawn
under the corporate revolver.
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. "In 2002 we
were challenged by extremely difficult market conditions. The success
achieved by Entergy as reflected in 2002 results supports our belief
that our business fundamentals are sound and our strategic initiatives
are on track. We enter 2003 with an economy that has yet to fully
recover and with numerous challenges ahead in the energy market.
However, we are committed to diligently manage our businesses
consistent with our long-term aspirations in order to deliver
sustained value to our shareholders."
Entergy's 2003 earnings guidance is detailed in Table 15. Earnings
guidance for 2003 includes the impact of Entergy's decision to expense
stock options effective first quarter 2003 which is not expected to be
material. Additional detail on other 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, including
the increased rates put into effect at Entergy Mississippi in
connection with the Order issued by the MPSC in December 2002. In
addition, increased earnings are assumed for Entergy New Orleans based
on its pending rate filing, as discussed in Appendix C. Current fuel
recovery mechanisms are assumed for all companies as is the full-year
impact of 2002 rate actions in Arkansas, Gulf States, and Mississippi.
Incremental earnings expected in 2003 are also the result of an
increase in overall sales growth. Partially offsetting these revenue
enhancements are increases in O&M expense and depreciation.
- - 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,
outage differences, power uprates, and reduced overall operating
costs. Currently, EN has sold 100 percent of the output of its
generating assets, excluding a portion of uprated capacity, through
the end of 2003 at prices that range from $29 to $42 per megawatt
hour. 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 will
add to earnings at ECS.
- - Parent & Other's guidance is based on modest improvement in
corporate expenses along with increased interest expense.
Table 15 provides Entergy's projection of 2003 operational earnings
per share with 2002 as reported and operational earnings as its data
starting points. At this time, no material special items are expected
to be recorded in 2003, hence as reported earnings per share guidance
is equal to operational earnings per share guidance.
- --------------------------------------------------------------------------
Table 15: 2003 Earnings Per Share Guidance
(Per share in U.S. $)
- --------------------------------------------------------------------------
2002
Earnings Operational/Special Item 2003
Per Changes in 2003 Guidance Range
Share
Range of Impact
Utility
As Reported 2.57
Less 0.00 Operational items:
special
items
----
Operational 2.57 Increased revenues due to 0.24 0.27
rate actions and sales
growth
Increased O&M, (0.11) (0.09)
depreciation, other
-------------
Total Operational 0.13 0.18 2.70 2.75
-------------------------------------------------------
Special items:
None - -
-------------
Total As Reported 2.70 2.75
-------------------------------------------------------
Entergy Nuclear
As Reported 0.88
Less 0.00 Operational items:
special
items
----
Operational 0.88 Increased revenue due to 0.05 0.07
increased Mwhs produced
Decreased revenue due to (0.02) (0.02)
lower PPA pricing
Increased outage (0.08) (0.08)
amortization expense
Decreased O&M expense, 0.07 0.10
other
-------------
Total Operational 0.02 0.07 0.90 0.95
-------------------------------------------------------
Special items:
None - -
-------------
Total As Reported 0.90 0.95
-------------------------------------------------------
Energy Commodity Services
As Reported (0.64)
Less (1.17) Operational items:
special
items
----
Operational 0.53 Decreased contribution (0.21) (0.21)
from Entergy-Koch (t)
Increased income from 0.02 0.06
commodity trading
Increased income from 0.01 0.02
pipeline operations
-------------
Total Operational (0.18) (0.13) 0.35 0.40
-------------------------------------------------------
Special items:
None - -
-------------
Total As Reported 0.35 0.40
-------------------------------------------------------
Parent & Other
As Reported (0.17)
Less 0.00 Operational items:
special
items
-----
Operational (0.17) Increased netinterest (0.05) (0.03)
expense
Decreased corporate 0.02 0.05
expense
-------------
Total Operational (0.03) 0.02 (0.20) (0.15)
-------------------------------------------------------
Special items:
None - -
-------------
Total As Reported (0.20) (0.15)
-------------------------------------------------------
Total
As Reported 2.64
Less (1.17)
special
items
-----
Operational 3.81 Total Operational for 2003 3.75 3.95
- ----------------------------------------------------------------------------
Total As Reported for 2003 3.75 3.95
- ----------------------------------------------------------------------------
(t) Reflects 2002 earnings associated with disproportionate income
sharing.
Entergy's goal is to grow earnings at an average annual rate of 8 to
10 percent in 2003 and beyond. Entergy expects to achieve its
targeted earnings by growing its existing businesses at approximately
6 percent with the remaining 2 to 4 percent from new capital
investments. Entergy 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. At the same time Entergy has
consistently maintained a strict policy that new investments must
exceed (on an ex ante basis) the incremental average project cost of
capital while maintaining corporate credit metrics.
Appendix A provides details of kwh sales and customer statistics for
the Utility.
Appendix A: Utility Electric Energy Sales & Customers
Three Months Ended December
% Weather
2002 2001 % Adjusted
(Millions of kwh)
ELECTRIC ENERGY SALES:
Residential 7,279 6,309 15.4 10.7
Commercial 6,135 5,873 4.5 3.2
Governmental 676 626 7.8 7.4
Industrial 10,248 10,098 1.5 1.5
---------------
Total to Ultimate Customers 24,338 22,906 6.2 3.7
Wholesale 2,298 1,892 21.5
---------------
Total Sales 26,636 24,798 7.4
===============
Year to Date December
2002 2001 %
(Millions of kwh)
ELECTRIC ENERGY SALES:
Residential 32,581 31,080 4.8
Commercial 25,354 24,706 2.6
Governmental 2,678 2,593 3.3
Industrial 41,018 41,577 (1.3)
----------------
Total to Ultimate Customers 101,631 99,956 1.7
Wholesale 9,828 8,896 10.5
----------------
Total Sales 111,459 108,852 2.4
================
December
2002 2001 %
ELECTRIC CUSTOMERS (YEAR TO DATE AVERAGE):
Residential 2,236,507 2,218,410 0.8
Commercial 302,173 296,534 1.9
Governmental 14,994 14,681 2.1
Industrial 41,133 41,125 0.0
---------------------
Total Ultimate Customers 2,594,807 2,570,750 0.9
Wholesale 40 39 2.6
---------------------
Total Customers 2,594,847 2,570,789 0.9
=====================
Appendix B provides a side by side comparison of historical
performance metrics.
Appendix B: Historical Performance Metrics (see appendix D for
definitions of measures)
1Q01 2Q01 3Q01 4Q01 1Q02 2Q02 3Q02 4Q02 01 02
YTD YTD
Financial
$ EPS (as 0.69 1.06 1.39 0.09 (0.35) 1.06 1.59 0.33 3.23 2.64
reported)
$ EPS 0.75 1.06 1.24 0.18 0.80 1.17 1.50 0.34 3.23 3.81
(operational)
Trailing Twelve Months
ROIC - as 7.02 7.09 7.39 7.26 5.76 5.59 5.61 5.98 7.26 5.98
reported (%)
ROIC - 7.23 7.38 7.44 7.26 7.24 7.20 7.27 7.56 7.26 7.56
operational
(%)
ROE - as 10.45 10.36 10.27 10.04 6.80 6.64 7.10 7.84 10.04 7.84
reported (%)
ROE - 10.94 11.03 10.38 10.04 10.20 10.28 10.82 11.32 10.04 11.32
operational
(%)
FFO interest 4.05 3.84 3.96 4.34 4.26 4.39 5.12 4.62 4.34 4.62
coverage
Net debt/net 51.5 51.1 50.6 49.7 48.7 49.1 47.6 46.3 49.7 46.3
capital (%)
Utility
Generation 21,470 23,814 28,081 21,245 21,032 22,698 26,635 19,687 94,610 90,051
in GWh
GWh billed
Residential 7,537 6,733 10,502 6,309 7,274 7,202 10,827 7,279 31,080 32,581
Commercial &6,189 6,538 8,073 6,499 6,215 6,766 8,240 6,811 27,299 28,032
Gov't
Industrial 10,311 10,710 10,457 10,098 9,590 10,341 10,839 10,248 41,577 41,018
O&M $14.86 $14.33 $14.17 $19.44 $16.79 $23.87 $14.01 $23.84 $15.55 $19.29
expense/MWh
Reliability
SAIFI 2.3 2.2 2.1 2.1 2.0 2.0 2.1 2.0 2.1 2.0
SAIDI 174.0 169.5 164.1 162.0 151.0 150.7 161.2 164.0 162.0 164.0
Nuclear
Net MW in 2,475 2,475 3,445 3,445 3,445 3,445 3,955 3,955 3,445 3,955
operation
Average $34.12 $35.66 $34.62 $35.27 $37.14 $39.88 $42.59 $40.87 $34.90 $40.07
realized
price per
MWh
Production $17.48 $18.41 $17.06 $19.55 $19.62 $19.40 $18.49 $22.18 $18.60 $20.20
cost/MWh
Generation 5,258 4,208 5,887 7,260 7,509 7,449 8,152 6,843 22,614 29,953
in GWh
Capacity 98.3% 77.8% 97.5% 95.0% 100.3% 98.5% 96.8% 78.0% 93.0% 93.0%
factor
Energy Commodity Services
Entergy-Koch Trading
Electricity 95 91 75 37 39 51 57 41 78 48
volatility
(%)
Gas 87 52 69 80 79 53 58 50 72 61
volatility
(%)
Gain/loss 2.2 4.3 3.3 2.2 2.1 1.7 2.0 1.3 2.8 1.8
days
Gulf South Pipeline
Throughput 2.46 2.26 2.56 2.51 2.66 2.31 2.27 2.22 2.45 2.40
Production 0.090 0.095 0.088 0.098 0.077 0.096 0.096 0.113 0.093 0.094
cost ($)
Non-nuclear Wholesale Assets
Net MW in 1,210 3,368 2,330 2,410 1,870 1,209 1,209 1,421 2,410 1,421
operation
- ---------------------------------------------------------------------------------------------
Appendix C provides a summary of the Utility's pending regulatory
events and regulatory recovery mechanisms by operating subsidiary.
Appendix C: Utility Regulatory Summary Table
Fourth Quarter 2002
Company Allowed Pending Cases/Events Fuel Recovery
ROE Mechanism
Entergy Arkansas 11.0% No cases pending. Annual reset based
ROE and TCA mechanism on prior year's
expired 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% In December 2002 EGSI Monthly reset with
States - LA settled the 4th 60 day lag based on
through the 8th prior two months
earnings reviews actual fuel and
which reaffirmed the purchased power
11.1% ROE. The 2002 costs plus 1/12 of
revenue review (9th) unrecovered fuel
and prospective balance.
revenue study are
currently pending
before commission
with hearings set for
October 2003. In
conjunction with
commission staff,
EGSI is pursuing a
formula rate plan
proposal that could
be in place in 2003.
Entergy 9.7%- In discussions with Monthly reset with
Louisiana 11.3% (u) the LPSC on 60 day lag based on
developing a formula prior two months
rate plan. Absent a actual fuel and
formula rate plan or purchased power
a base rate costs plus 1/12 of
proceeding by June unrecovered fuel
2003, ELI will file a balance.
revenue analysis.
Entergy 10.64%- Annual formula rate Quarterly reset
Mississippi 12.86%(t) plan in place with an based on forecasted
ROE midpoint of costs plus any
11.75% in accordance deferred fuel
with MPSC Order dated balance (over or
December 13, 2002. under-recovery)
The Order provided from the second
for a base rate prior quarter.
increase of $48.2
million on an annual
basis, effective
December 31, 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.
(u) 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 D provides definitions of certain operational and financial
performance measures referenced in this release.
Appendix D: 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
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-Cinergy 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. and Europe during the period
Gas marketed (Bcf/d) Physical Bcf/d volumes marketed in the U.S.
and Europe 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
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
Appendix D: Definitions of Operational and Financial Performance
Measures (continued)
Financial Measures
Operational net income As reported net income adjusted to
exclude the impact of special items
Return on average 12-months rolling net income adjusted to
invested capital - as include preferred dividends and tax-
reported effected interest expense divided by
average invested capital
Return on average 12-months rolling operational net income
invested capital - adjusted to include preferred dividends
operational and tax-effected interest expense divided
by average invested capital
Return on average common 12-months rolling net income divided by
equity - as reported average common equity
Return on average common 12-months rolling operational net income
equity - operational divided by average common equity
Net margin - as reported 12-months rolling net income divided by
12 months rolling revenue
Net margin - operational 12-months rolling operational net income
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
Book value per share Common equity divided by end of period
shares outstanding
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, Tuesday, February 4, 2003. The call can be
accessed by dialing 719-457-2621, the confirmation code is 629149.
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 Tuesday, February 11, 2003 by
dialing 719-457-0820 or 888-203-1112, confirmation code 629149. 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
December 31, 2002
(Dollars in thousands)
(Unaudited)
U.S. Parent & Competitive Eliminations Consolidated
Utilities Other Businesses
ASSETS
CURRENT ASSETS
Cash and cash equivalents:
Cash $ 118,625 $ 5,011 $ 46,152 $ - $ 169,788
Temporary cash investments - at cost,
which approximates market 969,077 24,518 171,665 - 1,165,260
Special deposits - 31 249 - 280
----------- ---------- ----------- ----------- -----------
Total cash and cash equivalents 1,087,702 29,560 218,066 - 1,335,328
----------- ---------- ----------- ----------- -----------
Other temporary investments - - - - -
Notes receivable 13 501,161 403,393 (902,490) 2,078
Accounts receivable:
Customer 321,942 1,273 - - 323,215
Allowance for doubtful accounts (10,277) (2,364) (500) - (13,141)
Associated companies 19,907 159,628 (137,646) (41,889) -
Other 98,294 1,083 131,100 - 230,477
Accrued unbilled revenues 318,101 1,032 - - 319,133
----------- ---------- ----------- ----------- -----------
Total receivables 747,967 160,652 (7,046) (41,889) 859,684
Deferred fuel costs 55,653 - - - 55,653
Accumulated deferred income taxes 14,872 18 - (14,890) -
Fuel inventory - at average cost 94,183 - 2,266 18 96,467
Materials and supplies - at average cost 333,977 25 191,898 - 525,900
Deferred nuclear refueling outage costs 51,541 - 112,106 - 163,646
Prepayments and other 131,092 3,557 32,176 - 166,827
----------- ---------- ----------- ----------- -----------
TOTAL 2,517,000 694,973 952,859 (959,251) 3,205,583
----------- ---------- ----------- ----------- -----------
OTHER PROPERTY AND INVESTMENTS
Investment in affiliates - at equity 214 8,897,127 823,996 (8,897,127) 824,209
Decommissioning trust funds 839,405 - 1,229,793 - 2,069,198
Non-utility property - at cost (less accumulated
depreciation) 222,519 74,204 571 - 297,294
Other 21,084 33,677 559,378 (343,249) 270,889
----------- ---------- ----------- ----------- -----------
TOTAL 1,083,222 9,005,008 2,613,738 (9,240,376) 3,461,590
----------- ---------- ----------- ----------- -----------
PROPERTY, PLANT, AND EQUIPMENT
Electric 25,226,879 8,498 1,554,161 - 26,789,538
Property under capital lease 746,624 - - - 746,624
Natural gas 209,913 57 - - 209,969
Construction work in progress 797,128 27,927 411,786 (3,949) 1,232,891
Nuclear fuel under capital lease 259,433 - - - 259,433
Nuclear fuel 24,475 - 239,134 - 263,609
----------- ---------- ----------- ----------- -----------
TOTAL PROPERTY, PLANT AND EQUIPMENT 27,264,452 36,482 2,205,081 (3,949) 29,502,064
Less - accumulated depreciation and amortization 12,140,375 4,703 162,035 - 12,307,112
----------- ---------- ----------- ----------- -----------
PROPERTY, PLANT AND EQUIPMENT - NET 15,124,077 31,779 2,043,046 (3,949) 17,194,952
----------- ---------- ----------- ----------- -----------
DEFERRED DEBITS AND OTHER ASSETS
Regulatory assets:
SFAS 109 regulatory asset - net 844,105 - - - 844,105
Unamortized loss on reacquired debt 155,161 - - - 155,161
Other regulatory assets 737,528 - - - 737,528
Long-term receivables 24,703 - - - 24,703
Goodwill 374,099 - 3,073 - 377,172
Other 213,220 492,931 779,032 (538,809) 946,374
----------- ---------- ----------- ----------- -----------
TOTAL 2,348,816 492,931 782,105 (538,809) 3,085,043
----------- ---------- ----------- ----------- -----------
TOTAL ASSETS $21,073,115 $10,224,691 $ 6,391,748 $(10,742,385) $26,947,168
=========== ========== =========== =========== ===========
*Totals may not foot due to rounding.
Entergy Corporation
Consolidating Balance Sheet
December 31, 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 $ 1,110,741 $ - $ 80,579 $ - $1,191,320
Notes payable:
Associated companies - 421,155 482,447 (903,602) -
Other 47 - 304 - 351
Account payable:
Associated companies (11,912) 150,651 (102,580) (36,160) -
Other 704,964 17,729 132,752 - 855,446
Customer deposits 198,100 179 163 - 198,442
Taxes accrued 75,044 25,943 284,328 - 385,315
Accumulated deferred income taxes - - 41,359 (14,890) 26,468
Nuclear refueling outage costs 14,244 - - - 14,244
Interest accrued 165,903 3,138 6,399 - 175,440
Obligations under capital leases 153,822 - - - 153,822
Other 68,830 12,844 98,147 (8,479) 171,341
----------- ---------- ----------- ----------- -----------
TOTAL 2,479,783 631,639 1,023,898 (963,131) 3,172,189
----------- ---------- ----------- ----------- -----------
DEFERRED CREDITS AND OTHER LIABILITIES
Accumulated deferred income taxes 3,526,638 (34,323) (286,804) - 3,205,512
Accumulated deferred investment tax credits 447,925 - - - 447,925
Taxes accrued 986,000 45,000 14,000 - 1,045,000
Obligations under capital leases 155,934 - 9 - 155,943
Other regulatory liabilities 185,579 - - - 185,579
Decommisioning 302,202 - 1,263,796 - 1,565,997
Transition to competition 79,098 - - - 79,098
Regulatory reserves 56,438 - - - 56,438
Accumulated provisions 299,462 1,679 88,726 - 389,868
Other 1,042,378 104,968 503,199 (505,314) 1,145,231
----------- ---------- ----------- ----------- -----------
TOTAL 7,081,654 117,324 1,582,926 (505,314) 8,276,591
----------- ---------- ----------- ----------- -----------
Long-term debt 5,542,438 915,611 697,352 (68,402) 7,086,999
Preferred stock with sinking fund 24,327 - - - 24,327
Preferred stock without sinking fund 334,337 - 91,940 (91,940) 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 1,696,327 (3,921,075) 2,482
Authorized shares 500,000,000
Issued shares CY 248,174,087
Paid-in capital 1,784,097 5,757,779 1,030,284 (3,905,407) 4,666,753
Retained earnings 1,500,609 3,553,724 337,699 (1,453,338) 3,938,693
Accumulated other comprehensive income (loss) 5,000 (5,415) (25,362) 2,906 (22,872)
Less - treasury stock, at cost 120,000 747,331 43,316 (163,316) 747,331
Shares CY 25,752,410
----------- ---------- ----------- ----------- -----------
TOTAL 5,395,576 8,560,117 2,995,632 (9,113,598) 7,837,725
----------- ---------- ----------- ----------- -----------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $21,073,115 $10,224,691 $6,391,748 $(10,742,385) $26,947,168
=========== ========== =========== =========== ===========
* 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 3,444 101,231 - 205,097
----------- ---------- ----------- ----------- -----------
TOTAL 2,076,436 426,891 848,435 (595,232) 2,756,530
----------- ---------- ----------- ----------- -----------
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 1,862,748 - 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 2,226,747 (6,278) 28,695,507
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 2,099,644 (6,278) 16,889,929
----------- ---------- ----------- ----------- -----------
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 - 3,073 - 377,172
Other 126,644 460,927 583,214 (465,511) 705,275
----------- ---------- ----------- ----------- -----------
TOTAL 2,348,945 460,919 586,287 (465,511) 2,930,641
----------- ---------- ----------- ----------- -----------
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 9,357 222,554 (12,203) 396,616
----------- ---------- ----------- ----------- -----------
TOTAL 2,136,777 877,422 687,182 (596,233) 3,105,149
----------- ---------- ----------- ----------- -----------
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 44,437 346,043 (441,828) 801,040
----------- ---------- ----------- ----------- -----------
TOTAL 6,044,687 408,948 1,440,784 (441,828) 7,452,592
----------- ---------- ----------- ----------- -----------
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
December 31, 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 $ 24,285 $ 2,373 $ 13,264 $ - $ 39,922
Temporary cash investments - at cost,
which approximates market 608,586 (721) (60,933) - 546,933
Special deposits - (236) (2,864) - (3,100)
----------- ---------- ---------- ----------- -----------
Total cash and cash equivalents 632,871 1,416 (50,533) - 583,755
----------- ---------- ---------- ----------- -----------
Other temporary investments (145,218) (4,782) - - (150,000)
Notes receivable (60) 207,540 163,715 (371,255) (60)
Accounts receivable:
Customer 27,251 1,165 1 - 28,416
Allowance for doubtful accounts (1,430) (300) 7,845 - 6,114
Associated companies (6,969) 65,050 (60,539) 2,458 -
Other (47,849) (3,157) (4,239) (950) (56,194)
Accrued unbilled revenues 49,523 1,032 (102) - 50,453
----------- ---------- ---------- ----------- -----------
Total receivables 20,526 63,790 (57,034) 1,508 28,789
Deferred fuel costs (116,791) - - - (116,791)
Accumulated deferred income taxes (12,226) 10 - 5,728 (6,488)
Fuel inventory - at average cost (1,680) - 651 - (1,030)
Materials and supplies - at average cost 8,264 (5) 56,998 - 65,256
Deferred nuclear refueling outage costs 24,209 - 59,682 - 83,891
Prepayments and other 30,669 113 (69,055) - (38,270)
----------- ---------- ---------- ----------- -----------
TOTAL 440,564 268,082 104,424 (364,019) 449,053
----------- ---------- ---------- ----------- -----------
OTHER PROPERTY AND INVESTMENTS
Investment in affiliates - at equity (2) 115,781 58,107 (115,780) 58,106
Decommissioning trust funds (15,300) - 308,548 - 293,248
Non-utility property - at cost (less accumulated
depreciation) (2,139) 32,897 (29,050) - 1,678
Other 2,138 (36,016) 129,318 (320,091) (224,653)
----------- ---------- ---------- ----------- -----------
TOTAL (15,333) 112,662 466,923 (435,871) 128,379
----------- ---------- ---------- ----------- -----------
PROPERTY, PLANT, AND EQUIPMENT
Electric 735,709 2,740 (308,587) - 429,862
Property under capital lease (6,686) - - - (6,686)
Natural gas 8,072 57 - - 8,128
Construction work in progress 85,458 18,713 243,562 2,329 350,062
Nuclear fuel under capital lease (6,031) - - - (6,031)
Nuclear fuel (12,136) - 43,359 - 31,222
----------- ---------- ---------- ----------- -----------
TOTAL PROPERTY, PLANT AND EQUIPMENT 804,386 21,510 (21,666) 2,329 806,557
Less - accumulated depreciation and amortization 466,067 536 34,932 - 501,534
----------- ---------- ---------- ----------- -----------
PROPERTY, PLANT AND EQUIPMENT - NET 338,319 20,974 (56,598) 2,329 305,023
----------- ---------- ---------- ----------- -----------
DEFERRED DEBITS AND OTHER ASSETS
Regulatory assets:
SFAS 109 regulatory asset - net (102,021) - - - (102,021)
Unamortized loss on reacquired debt (11,385) - - - (11,385)
Other regulatory assets 30,089 - - - 30,089
Long-term receivables (3,388) 8 - - (3,380)
Goodwill - - - - -
Other 86,576 32,004 195,818 (73,298) 241,099
----------- ---------- ---------- ----------- -----------
TOTAL (129) 32,012 195,818 (73,298) 154,402
----------- ---------- ---------- ----------- -----------
TOTAL ASSETS $ 763,420 $ 433,730 $ 710,567 $ (870,859) $ 1,036,858
=========== ========== ========== =========== ===========
*Totals may not foot due to rounding.
Entergy Corporation
Consolidating Balance Sheet
December 31, 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 $ 526,303 $ - $(17,754) $ - $ 508,549
Notes payable:
Associated companies - 191,711 179,673 (371,384) -
Other (666) (350,001) - - (350,667)
Account payable:
Associated companies (8,235) 53,740 (40,540) (4,966) -
Other 196,631 11,582 54,703 - 262,917
Customer deposits 9,924 126 163 - 10,212
Taxes accrued (275,134) (157,327) 267,643 - (164,818)
Accumulated deferred income taxes - - 20,741 5,728 26,468
Nuclear refueling outage costs 12,164 - - - 12,164
Interest accrued (14,373) 899 (3,506) - (16,980)
Obligations under capital leases 4,470 - - - 4,470
Other (108,077) 3,487 (124,407) 3,724 (225,275)
----------- ---------- ---------- ----------- -----------
TOTAL 343,006 (245,783) 336,716 (366,898) 67,040
----------- ---------- ---------- ----------- -----------
DEFERRED CREDITS AND OTHER LIABILITIES
Accumulated deferred income taxes (32,299 1,162 (338,016) - (369,152)
Accumulated deferred investment tax credits (23,165) - - - (23,165)
Taxes accrued 986,000 (355,000) 14,000 - 645,000
Obligations under capital leases (25,136) - (6) - (25,142)
Other regulatory liabilities 49,701 - - - 49,701
Decommisioning 17,173 - 354,492 - 371,664
Transition to competition (152,414) - - - (152,414)
Regulatory reserves 18,847 - - - 18,847
Accumulated provisions 8,270 1,683 (45,484) - (35,531)
Other 189,990 60,531 157,156 (63,486) 344,191
----------- ---------- ---------- ----------- -----------
TOTAL 1,036,967 (291,624) 142,142 (63,486) 823,999
----------- ---------- ---------- ----------- -----------
Long-term debt (464,761) 900,304 (663,112) (6,460) (234,029)
Preferred stock with sinking fund (1,858) - - - (1,858)
Preferred stock without sinking fund - - 91,940 (91,940) -
Company-obligated mandatorily redeemable
preferred securities of subsidiary trust holding
solely junior subordinated deferrable debentures - - - - -
SHAREHOLDERS' EQUITY
Common stock - (401,305) 129,638 271,665 -
Authorized shares
Issued shares CY
Paid-in capital - 299,451 452,201 (677,602) 4,049
Retained earnings (35,148) 166,167 173,589 (4,360) 300,245
Accumulated other comprehensive income (loss) 5,214 65,032 62,154 (66,477) 65,922
Less - treasury stock, at cost 120,000 (11,489) 14,700 (134,700) (11,489)
----------- ---------- ---------- ----------- -----------
TOTAL (149,934) 70,834 802,882 (342,074) 381,705
----------- ---------- ---------- ----------- -----------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 763,420 $ 433,730 $ 710,567 $ (870,859) $ 1,036,858
=========== ========== ========== =========== ===========
*Totals may not foot due to rounding.
Entergy Corporation
Consolidating Income Statement
Three Months Ended December 31, 2002
(Dollars in thousands)
(Unaudited)
U.S. Parent & Competitive Eliminations Consolidated
Utilities Other Businesses
OPERATING REVENUES:
Domestic electric $ 1,521,104 $ - $ - $ (412) $1,520,692
Natural gas 35,040 - - - 35,040
Competitive businesses - 10,135 313,039 (160) 323,014
----------- ---------- -------- ----------- ----------
Total 1,556,144 10,135 313,039 (572) 1,878,746
OPERATING EXPENSES:
Operating and Maintenance:
Fuel, fuel related expenses, and gas purchased for resale 489,165 - 52,940 - 542,106
Purchased power 197,333 1,474 8,503 (454) 206,857
----------- ---------- -------- ----------- ----------
Gross Margin 869,646 8,661 251,596 (118) 1,129,783
Margin % 55.9% 85.5% 80.4% 20.6% 60.1%
Nuclear refueling outage expenses 14,120 - 17,415 - 31,535
Provision for turbine commitments, asset impairments
and restructuring charges - - 36,899 - 36,899
Other operation and maintenance 455,164 28,402 188,792 (377) 671,981
Decommissioning 5,869 - - - 5,869
Taxes other than income taxes 76,462 588 11,658 - 88,709
----------- ---------- -------- ----------- ----------
Total 1,238,113 30,464 316,208 (831) 1,583,956
----------- ---------- -------- ----------- ----------
EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION, AND AMORTIZATION 318,031 (20,329) (3,169) 259 294,790
----------- ---------- -------- ----------- ----------
Margin % 20.4% (200.6%) (1.0%) (45.3%) 15.7%
DEPRECIATION AND AMORTIZATION:
Depreciation and amortization 196,415 1,048 16,311 - 213,774
Other regulatory charges (credits) 7,504 - - - 7,504
----------- ---------- -------- ----------- ----------
Total 203,920 1,048 16,311 - 221,278
----------- ---------- -------- ----------- ----------
OPERATING INCOME (LOSS) 114,111 (21,377) (19,480) 259 73,512
----------- ---------- -------- ----------- ----------
Margin % 7.3% (210.9%) (6.2%) (45.3%) 3.9%
OTHER INCOME (DEDUCTIONS):
Allowance for equity funds used during construction 7,928 - - - 7,928
Gain/(loss) on sale of assets - net 3,017 - 1,216 - 4,232
Interest and dividend income 3,665 10,065 43,988 (11,318) 46,400
Equity in earnings of unconsolidated equity affiliates (2) - 62,378 - 62,376
Miscellaneous - net (7,283) (529) (2,764) (260) (10,836)
----------- ---------- -------- ----------- ----------
Total 7,324 9,536 104,818 (11,577) 110,100
----------- ---------- -------- ----------- ----------
INTEREST AND OTHER CHARGES:
Interest on long-term debt 116,150 640 13,989 - 130,779
Other interest - net 4,368 10,218 26,620 (11,318) 29,889
Distributions on preferred securities of subsidiaries 4,709 - - - 4,709
Allowance for borrowed funds used during construction (6,059) - - - (6,059)
----------- ---------- -------- ----------- ----------
Total 119,169 10,858 40,609 (11,318) 159,318
----------- ---------- -------- ----------- ----------
INCOME (LOSS) BEFORE INCOME TAXES 2,267 (22,699) 44,729 - 24,294
INCOME TAXES (46,046) 1,006 (12,337) - (57,377)
----------- ---------- -------- ----------- ----------
INCOME (LOSS) BEFORE CUMULATIVE EFFECT OF ACCOUNTING CHANGE 48,312 (23,705) 57,066 - 81,671
CUMULATIVE EFFECT OF ACCOUNTING (net of taxes) - - - - -
----------- ---------- -------- ----------- ----------
CONSOLIDATED NET INCOME (LOSS) 48,312 (23,705) 57,066 - 81,671
PREFERRED DIVIDEND REQUIREMENTS OF SUBSIDIARIES
AND OTHER 5,916 - - - 5,916
----------- ---------- -------- ----------- ----------
EARNINGS (LOSS) APPLICABLE TO COMMON STOCK $ 42,396 $ (23,705) $ 57,066 $ - $ 75,755
=========== ========== ======== =========== ==========
Margin % 3.1% (233.9%) 18.2% - 4.3%
EARNINGS (LOSS) PER AVERAGE COMMON SHARE:
BASIC $0.19 ($0.11) $0.26 $0.34
DILUTED $0.19 ($0.11) $0.25 $0.33
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
BASIC 221,191,119
DILUTED 226,639,072
*Totals may not foot due to rounding.
Entergy Corporation
Consolidating Income Statement
Three Months Ended December 31, 2001
(Dollars in thousands)
(Unaudited)
U.S. Parent & Competitive Eliminations Consolidated
Utilities Other Businesses
OPERATING REVENUES:
Domestic electric $ 1,395,057 $ - $ - $ 49 $1,395,107
Natural gas 26,758 - - - 26,758
Competitive businesses - 8,152 458,638 (3,348) 463,442
----------- ---------- -------- ----------- ----------
Total 1,421,815 8,152 458,638 (3,299) 1,885,307
OPERATING EXPENSES:
Operating and Maintenance:
Fuel, fuel related expenses, and gas purchased for resale 488,741 - 116,004 - 604,745
Purchased power 98,965 44 36,613 (3,024) 132,597
----------- ---------- -------- ----------- ----------
Gross Margin 834,110 8,109 306,021 (275) 1,147,965
Margin % 58.7% 99.5% 66.7% 8.3% 60.9%
Nuclear refueling outage expenses 15,123 - 9,454 - 24,578
Provision for turbine commitments, asset impairments
and restructuring charges - - - - -
Other operation and maintenance 397,962 34,907 262,770 (805) 694,835
Decommissioning 7,938 - - - 7,938
Taxes other than income taxes 86,105 634 17,393 - 104,132
----------- ---------- -------- ----------- ----------
Total 1,094,834 35,584 442,235 (3,830) 1,568,825
----------- ---------- -------- ----------- ----------
EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION, AND AMORTIZATION 326,981 (27,432) 16,403 531 316,482
----------- ---------- -------- ----------- ----------
Margin % 23.0% (336.5%) 3.6% (16.1%) 16.8%
DEPRECIATION AND AMORTIZATION:
Depreciation and amortization 191,665 1,254 14,015 - 206,933
Other regulatory charges (credits) (14,616) - - - (14,616)
----------- ---------- -------- ----------- ----------
Total 177,048 1,254 14,015 - 192,317
----------- ---------- -------- ----------- ----------
OPERATING INCOME (LOSS) 149,933 (28,686) 2,388 531 124,165
----------- ---------- -------- ----------- ----------
Margin % 10.5% (351.9%) 0.5% (16.1%) 6.6%
OTHER INCOME (DEDUCTIONS):
Allowance for equity funds used during construction 6,950 - - - 6,950
Gain/(loss) on sale of assets - net 642 (32) 2,355 - 2,966
Interest and dividend income 11,703 7,471 20,020 (3,683) 35,511
Equity in earnings of unconsolidated equity affiliates - - 18,237 - 18,238
Miscellaneous - net (15,744) (529) (348) (531) (17,151)
----------- ---------- -------- ----------- ----------
Total 3,552 6,911 40,265 (4,214) 46,514
----------- ---------- -------- ----------- ----------
INTEREST AND OTHER CHARGES:
Interest on long-term debt 116,594 - 41,954 - 158,547
Other interest - net 13,113 9,567 (5,109) (3,683) 13,887
Distributions on preferred securities of subsidiaries 4,709 - - - 4,709
Allowance for borrowed funds used during construction (5,701) - - - (5,701)
----------- ---------- -------- ----------- ----------
Total 128,714 9,567 36,844 (3,683) 171,442
----------- ---------- -------- ----------- ----------
INCOME (LOSS) BEFORE INCOME TAXES 24,771 (31,342) 5,809 - (763)
INCOME TAXES (25,667) 11,586 10,200 - (3,880)
----------- ---------- -------- ----------- ----------
INCOME (LOSS) BEFORE CUMULATIVE EFFECT OF ACCOUNTING CHANGE 50,437 (42,928) (4,392) - 3,117
CUMULATIVE EFFECT OF ACCOUNTING (net of taxes) - - 23,482 - 23,482
----------- ---------- -------- ----------- ----------
CONSOLIDATED NET INCOME (LOSS) 50,437 (42,928) 19,090 - 26,599
PREFERRED DIVIDEND REQUIREMENTS OF SUBSIDIARIES
AND OTHER 5,948 - - - 5,948
----------- ---------- -------- ----------- ----------
EARNINGS (LOSS) APPLICABLE TO COMMON STOCK $ 44,489 $ (42,928) $ 19,090 $ - $ 20,651
=========== ========== ======== =========== ==========
Margin % 3.1% (526.6%) 4.2% - 1.1%
EARNINGS PER AVERAGE COMMON SHARE:
BASIC $0.20 ($0.20) $0.09 $0.09
DILUTED $0.20 ($0.20) $0.09 $0.09
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
BASIC 221,050,278
DILUTED 224,583,984
*Totals may not foot due to rounding.
Entergy Corporation
Consolidating Income Statement
Three Months Ended December 31, 2002 vs. 2001
Increase/(Decrease)
(Dollars in thousands)
(Unaudited)
U.S. Parent & Competitive Eliminations Consolidated
Utilities Other Businesses
OPERATING REVENUES:
Domestic electric $ 126,047 $ - $ - $ (461) $ 125,586
Natural gas 8,282 - - - 8,282
Competitive businesses - 1,983 (145,599) 3,188 (140,428)
--------- -------- -------- --------- ----------
Total 134,329 1,983 (145,599) 2,727 (6,561)
OPERATING EXPENSES:
Operating and Maintenance:
Fuel, fuel related expenses, and gas purchased for resale 425 - (63,064) - (62,639)
Purchased power 98,368 1,431 (28,110) 2,570 74,259
--------- -------- -------- --------- ----------
Gross Margin 35,537 553 (54,425) 157 (18,181)
Margin % (2.8%) (14.0%) 13.6% 12.3% (0.8%)
Nuclear refueling outage expenses (1,003) - 7,961 - 6,957
Provision for turbine commitments, asset impairments
and restructuring charges - - 36,899 - 36,899
Other operation and maintenance 57,202 (6,505) (73,978) 428 (22,854)
Decommissioning (2,069) - - - (2,069)
Taxes other than income taxes (9,643) (46) (5,735) - (15,423)
--------- -------- -------- --------- ----------
Total 143,279 (5,120) (126,027) 2,999 15,131
--------- -------- -------- --------- ----------
EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION,
AND AMORTIZATION (8,950) 7,103 (19,572) (272) (21,692)
--------- -------- -------- --------- ----------
Margin % (2.6%) 135.9% (4.6%) (29.2%) (1.1%)
DEPRECIATION AND AMORTIZATION:
Depreciation and amortization 4,751 (206) 2,296 - 6,841
Other regulatory charges (credits) 22,121 - - - 22,121
--------- -------- -------- --------- ----------
Total 26,872 (206) 2,296 - 28,962
--------- -------- -------- --------- ----------
OPERATING INCOME (LOSS) (35,822) 7,309 (21,868) (272) (50,653)
--------- -------- -------- --------- ----------
Margin % (3.2%) 141.0% (6.7%) (29.2%) (2.7%)
OTHER INCOME (DEDUCTIONS):
Allowance for equity funds used during construction 978 - - - 978
Gain/(loss) on sale of assets - net 2,375 32 (1,139) - 1,267
Interest and dividend income (8,038) 2,594 23,968 (7,635) 10,890
Equity in earnings of unconsolidated equity affiliates (2) - 44,141 - 44,139
Miscellaneous - net 8,460 - (2,416) 272 6,315
--------- -------- -------- --------- ----------
Total 3,773 2,626 64,553 (7,363) 63,588
--------- -------- -------- --------- ----------
INTEREST AND OTHER CHARGES:
Interest on long-term debt (443) 640 (27,965) - (27,768)
Other interest - net (8,748) 651 31,729 (7,635) 16,002
Distributions on preferred securities of subsidiaries - - - - -
Allowance for borrowed funds used during construction (358) - - - (358)
--------- -------- -------- --------- ----------
Total (9,545) 1,291 3,765 (7,635) (12,124)
--------- -------- -------- --------- ----------
INCOME (LOSS) BEFORE INCOME TAXES (22,504) 8,643 38,921 - 25,059
INCOME TAXES (20,379) (10,580) (22,537) - (53,497)
--------- -------- -------- --------- ----------
INCOME (LOSS) BEFORE CUMULATIVE EFFECT OF ACCOUNTING CHANGE (2,125) 19,223 61,458 - 78,555
CUMULATIVE EFFECT OF ACCOUNTING (net of taxes) - - (23,482) - (23,482)
--------- -------- -------- --------- ----------
CONSOLIDATED NET INCOME (LOSS) (2,125) 19,223 37,976 - 55,073
PREFERRED DIVIDEND REQUIREMENTS OF SUBSIDIARIES
AND OTHER (32) - - - (32)
--------- -------- -------- --------- ----------
EARNINGS (LOSS) APPLICABLE TO COMMON STOCK $ (2,092) $ 19,223 $ 37,976 $ - $ 55,106
========= ======== ======== ========= ==========
Margin % 3.1% (233.9%) 18.2% - 4.3%
EARNINGS (LOSS) PER AVERAGE COMMON SHARE:
BASIC ($0.01) $0.09 $0.17 $0.25
DILUTED ($0.01) $0.09 $0.16 $0.24
*Totals may not foot due to rounding.
Entergy Corporation
Consolidating Income Statement
Year to Date December 31, 2002
(Dollars in thousands)
(Unaudited)
U.S. Parent & Competitive Eliminations Consolidated
Utilities Other Businesses
OPERATING REVENUES:
Domestic electric $6,648,156 $ - $ - $ (1,742) $6,646,414
Natural gas 125,353 - - - 125,353
Competitive businesses - 40,729 1,494,909 (2,369) 1,533,268
---------- --------- ---------- ---------- -----------
Total 6,773,509 40,729 1,494,909 (4,111) 8,305,035
OPERATING EXPENSES:
Operating and Maintenance:
Fuel, fuel related expenses, and gas purchased for resale 1,941,349 - 213,247 - 2,154,596
Purchased power 764,350 2,339 68,840 (3,195) 832,334
---------- --------- ---------- ---------- -----------
Gross Margin 4,067,810 38,390 1,212,822 (916) 5,318,105
Margin % 60.1% 94.3% 81.1% 22.3% 64.0%
Nuclear refueling outage expenses 58,802 - 46,791 - 105,592
Provision for turbine commitments, asset impairments
and restructuring charges - - 428,456 - 428,456
Other operation and maintenance 1,678,569 85,617 725,880 (1,954) 2,488,112
Decommissioning 30,458 - - - 30,458
Taxes other than income taxes 333,204 2,546 44,712 - 380,462
---------- --------- ---------- ---------- -----------
Total 4,806,731 90,502 1,527,926 (5,149) 6,420,010
---------- --------- ---------- ---------- -----------
EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION,
AND AMORTIZATION 1,966,778 (49,773) (33,017) 1,038 1,885,025
---------- --------- ---------- ---------- -----------
Margin % 29.0% (122.2%) (2.2%) (25.2%) 22.7%
DEPRECIATION AND AMORTIZATION:
Depreciation and amortization 769,799 5,143 64,239 - 839,181
Other regulatory charges (credits) (141,836) - - - (141,836)
---------- --------- ---------- ---------- -----------
Total 627,963 5,143 64,239 - 697,345
---------- --------- ---------- ---------- -----------
OPERATING INCOME (LOSS) 1,338,815 (54,916) (97,256) 1,038 1,187,680
---------- --------- ---------- ---------- -----------
Margin % 19.8% (134.8%) (6.5%) (25.2%) 14.3%
OTHER INCOME (DEDUCTIONS):
Allowance for equity funds used during construction 31,658 - - - 31,658
Gain/(loss) on sale of assets - net 5,394 2 1,216 - 6,612
Interest and dividend income 23,231 35,433 97,401 (37,741) 118,325
Equity in earnings of unconsolidated equity affiliates (2) - 205,342 - 205,340
Miscellaneous - net (12,678) 5,243 (5,709) (1,038) (14,182)
---------- --------- ---------- ---------- -----------
Total 47,603 40,678 298,250 (38,779) 347,753
---------- --------- ---------- ---------- -----------
INTEREST AND OTHER CHARGES:
Interest on long-term debt 443,154 640 63,810 - 507,604
Other interest - net 28,249 34,939 91,071 (37,741) 116,519
Distributions on preferred securities of subsidiaries 18,838 - - - 18,838
Allowance for borrowed funds used during construction (24,538) - - - (24,538)
---------- --------- ---------- ---------- -----------
Total 465,703 35,579 154,881 (37,741) 618,423
---------- --------- ---------- ---------- -----------
INCOME (LOSS) BEFORE INCOME TAXES 920,715 (49,817) 46,113 - 917,010
INCOME TAXES 313,752 (11,252) (8,562) - 293,938
---------- --------- ---------- ---------- -----------
INCOME (LOSS) BEFORE CUMULATIVE EFFECT OF ACCOUNTING CHANGE 606,963 (38,565) 54,675 - 623,072
CUMULATIVE EFFECT OF ACCOUNTING CHANGE (net of taxes) - - - - -
---------- --------- ---------- ---------- -----------
CONSOLIDATED NET INCOME (LOSS) 606,963 (38,565) 54,675 - 623,072
PREFERRED DIVIDEND REQUIREMENTS OF SUBSIDIARIES
AND OTHER 23,712 - - - 23,712
---------- --------- ---------- ---------- -----------
EARNINGS (LOSS) APPLICABLE TO COMMON STOCK $ 583,251 $(38,565) $ 54,675 $ - $599,360
========== ========= ========== ========== ===========
Margin % 8.6% (94.7%) 3.7% - 7.2%
EARNINGS (LOSS) PER AVERAGE COMMON SHARE:
BASIC $2.61 ($0.17) $0.25 $2.69
DILUTED $2.57 ($0.17) $0.24 $2.64
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
BASIC 223,047,431
DILUTED 227,303,103
*Totals may not foot due to rounding.
Entergy Corporation
Consolidating Income Statement
Year to Date December 31, 2001
(Dollars in thousands)
(Unaudited)
U.S. Parent & Competitive Eliminations Consolidated
Utilities Other Businesses
OPERATING REVENUES:
Domestic electric $7,247,018 $ - $ - $ (2,191) $7,244,827
Natural gas 185,902 - - - 185,902
Competitive businesses - 34,603 2,159,729 (4,162) 2,190,170
---------- --------- ---------- ---------- -----------
Total 7,432,920 34,603 2,159,729 (6,353) 9,620,899
OPERATING EXPENSES:
Operating and Maintenance:
Fuel, fuel related expenses, and gas purchased for resale 2,769,917 - 911,760 - 3,681,677
Purchased power 810,448 44 214,877 (3,937) 1,021,432
---------- --------- ---------- ---------- -----------
Gross Margin 3,852,555 34,559 1,033,092 (2,417) 4,917,790
Margin % 51.8% 99.9% 47.8% 38.0% 51.1%
Nuclear refueling outage expenses 65,752 - 23,392 - 89,145
Provision for turbine commitments, asset impairments
and restructuring charges - - - - -
Other operation and maintenance 1,405,393 85,508 664,802 (3,960) 2,151,742
Decommissioning 3,189 - - - 3,189
Taxes other than income taxes 352,200 2,587 45,062 - 399,849
---------- --------- ---------- ---------- -----------
Total 5,406,899 88,139 1,859,893 (7,896) 7,347,034
---------- --------- ---------- ---------- -----------
EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION,
AND AMORTIZATION 2,026,021 (53,536) 299,836 1,543 2,273,865
---------- --------- ---------- ---------- -----------
Margin % 27.3% (154.7%) 13.9% (24.3%) 23.6%
DEPRECIATION AND AMORTIZATION:
Depreciation and amortization 664,144 4,515 52,373 - 721,033
Other regulatory charges (credits) (20,510) - - - (20,510)
---------- --------- ---------- ---------- -----------
Total 643,634 4,515 52,373 - 700,523
---------- --------- ---------- ---------- -----------
OPERATING INCOME (LOSS) 1,382,387 (58,051) 247,463 1,543 1,573,342
---------- --------- ---------- ---------- -----------
Margin % 18.6% (167.8%) 11.5% (24.3%) 16.4%
OTHER INCOME (DEDUCTIONS):
Allowance for equity funds used during construction 26,209 - - - 26,209
Gain/(loss) on sale of assets - net 2,609 46 2,571 - 5,226
Interest and dividend income 79,702 37,234 77,222 (34,354) 159,805
Equity in earnings of unconsolidated equity affiliates - - 180,956 - 180,956
Miscellaneous - net (39,364) 5,326 12,738 (1,544) (22,843)
---------- --------- ---------- ---------- -----------
Total 69,157 42,606 273,487 (35,897) 349,352
---------- --------- ---------- ---------- -----------
INTEREST AND OTHER CHARGES:
Interest on long-term debt 475,022 - 69,898 - 544,920
Other interest - net 104,265 41,559 86,168 (34,353) 197,638
Distributions on preferred securities of subsidiaries 18,838 - - - 18,838
Allowance for borrowed funds used during construction (21,419) - - - (21,419)
---------- --------- ---------- ---------- -----------
Total 576,706 41,559 156,066 (34,353) 739,977
---------- --------- ---------- ---------- -----------
INCOME (LOSS) BEFORE INCOME TAXES 874,838 (57,004) 364,884 - 1,182,718
INCOME TAXES 300,284 862 154,546 - 455,693
---------- --------- ---------- ---------- -----------
INCOME (LOSS) BEFORE CUMULATIVE EFFECT OF ACCOUNTING CHANGE 574,554 (57,866) 210,337 - 727,025
CUMULATIVE EFFECT OF ACCOUNTING CHANGE (net of taxes) - - 23,482 - 23,482
---------- --------- ---------- ---------- -----------
CONSOLIDATED NET INCOME (LOSS) 574,554 (57,866) 233,819 - 750,507
PREFERRED DIVIDEND REQUIREMENTS OF SUBSIDIARIES
AND OTHER 24,311 - - - 24,311
---------- --------- ---------- ---------- -----------
EARNINGS (LOSS) APPLICABLE TO COMMON STOCK $ 550,243 $(57,866) $233,819 $ - $726,196
========== ========= ========== ========== ===========
Margin % 7.4% (167.2%) 10.8% - 7.5%
EARNINGS (LOSS) PER AVERAGE COMMON SHARE:
BASIC $2.49 ($0.26) $1.06 $3.29
DILUTED $2.45 ($0.26) $1.04 $3.23
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
BASIC 220,944,270
DILUTED 224,733,662
*Totals may not foot due to rounding.
Entergy Corporation
Consolidating Income Statement
Year to Date December 31, 2002 vs. 2001
Increase/(Decrease)
(Dollars in thousands)
(Unaudited)
U.S. Parent & Competitive Eliminations Consolidated
Utilities Other Businesses
OPERATING REVENUES:
Domestic electric $(598,862) $ - $ - $ 449 $ (598,413)
Natural gas (60,550) - - - (60,550)
Competitive businesses - 6,126 (664,820) 1,793 (656,902)
---------- --------- ---------- ---------- -----------
Total (659,412) 6,126 (664,820) 2,242 (1,315,864)
OPERATING EXPENSES:
Operating and Maintenance:
Fuel, fuel related expenses, and gas purchased for resale (828,568) - (698,513) - (1,527,081)
Purchased power (46,098) 2,295 (146,037) 742 (189,098)
---------- --------- ---------- ---------- -----------
Gross Margin 215,255 3,831 179,730 1,501 400,315
Margin % 8.2% (5.6%) 33.3% (15.8%) 12.9%
Nuclear refueling outage expenses (6,951) - 23,399 - 16,447
Provision for turbine commitments, asset impairments
and restructuring charges - - 428,456 - 428,456
Other operation and maintenance 273,176 110 61,078 2,006 336,371
Decommissioning 27,269 - - - 27,269
Taxes other than income taxes (18,997) (41) (350) - (19,388)
---------- --------- ---------- ---------- -----------
Total (600,168) 2,364 (331,967) 2,747 (927,024)
---------- --------- ---------- ---------- -----------
EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION,
AND AMORTIZATION (59,243) 3,763 (332,853) (505) (388,841)
---------- --------- ---------- ---------- -----------
Margin % 1.8% 32.5% (16.1%) (1.0%) (0.9%)
DEPRECIATION AND AMORTIZATION:
Depreciation and amortization 105,655 628 11,866 - 118,149
Other regulatory charges (credits) (121,326) - - - (121,326)
---------- --------- ---------- ---------- -----------
Total (15,671) 628 11,866 - (3,178)
---------- --------- ---------- ---------- -----------
OPERATING INCOME (LOSS) (43,572) 3,135 (344,719) (505) (385,663)
---------- --------- ---------- ---------- -----------
Margin % 1.2% 32.9% (18.0%) (1.0%) (2.1%)
OTHER INCOME (DEDUCTIONS):
Allowance for equity funds used during construction 5,449 - - - 5,449
Gain/(loss) on sale of assets - net 2,785 (44) (1,355) - 1,387
Interest and dividend income (56,471) (1,801) 20,179 (3,387) (41,480)
Equity in earnings of unconsolidated equity affiliates (2) - 24,386 - 24,384
Miscellaneous - net 26,686 (83) (18,447) 506 8,661
---------- --------- ---------- ---------- -----------
Total (21,554) (1,928) 24,763 (2,882) (1,599)
---------- --------- ---------- ---------- -----------
INTEREST AND OTHER CHARGES:
Interest on long-term debt (31,868) 640 (6,088) - (37,316)
Other interest - net (76,016) (6,620) 4,903 (3,388) (81,120)
Distributions on preferred securities of subsidiaries - - - - -
Allowance for borrowed funds used during construction (3,119) - - - (3,119)
---------- --------- ---------- ---------- -----------
Total (111,003) (5,980) (1,185) (3,388) (121,555)
---------- --------- ---------- ---------- -----------
INCOME (LOSS) BEFORE INCOME TAXES 45,877 7,187 (318,771) - (265,707)
INCOME TAXES 13,468 (12,114) (163,108) - (161,755)
---------- --------- ---------- ---------- -----------
INCOME (LOSS) BEFORE CUMULATIVE EFFECT OF ACCOUNTING CHANGE 32,409 19,301 (155,662) - (103,952)
CUMULATIVE EFFECT OF ACCOUNTING CHANGE (net of taxes) - - (23,482) - (23,482)
---------- --------- ---------- ---------- -----------
CONSOLIDATED NET INCOME (LOSS) 32,409 19,301 (179,144) - (127,434)
PREFERRED DIVIDEND REQUIREMENTS OF SUBSIDIARIES
AND OTHER (599) - - - (599)
---------- --------- ---------- ---------- -----------
EARNINGS (LOSS) APPLICABLE TO COMMON STOCK $ 33,008 $ 19,301 $(179,144) $ - $(126,835)
========== ========= ========== ========== ===========
Margin % 1.2% 72.5% (7.2%) - (0.3%)
EARNINGS (LOSS) PER AVERAGE COMMON SHARE:
BASIC $0.12 $0.09 ($0.81) - ($0.60)
DILUTED $0.12 $0.09 ($0.80) - ($0.59)
*Totals may not foot due to rounding.
Entergy Corporation
Consolidated Cash Flow Statement
Three Months Ended December 31, 2002 vs. 2001
(Dollars in thousands)
(Unaudited)
2002 2001 Variance
OPERATING ACTIVITIES
Consolidated net income $81,671 $26,599 $55,072
Noncash items included in net income:
Reserve for regulatory adjustments 8,081 (1,318) 9,399
Other regulatory charges (credits) - net 7,504 (14,616) 22,120
Depreciation, amortization, and decommissioning 219,641 214,873 4,768
Deferred income taxes and investment tax credits (86,758) 140,789 (227,547)
Allowance for equity funds used during construction (7,928) (6,950) (978)
Cumulative effect of accounting change - (23,482) 23,482
Gain on sale of assets - net (4,232) (2,966) (1,266)
Equity in undistributed earnings of subsidiaries and unconsolidated affiliates (62,376) (23,561) (38,815)
Provision for turbine commitments, asset impairments and restructuring charges 36,899 - 36,899
Changes in working capital:
Receivables 189,237 268,874 (79,637)
Fuel inventory 1,223 21,479 (20,256)
Accounts payable 218,225 52,588 165,637
Taxes accrued (33,832) 28,681 (62,513)
Interest accrued 2,051 6,997 (4,946)
Deferred fuel 70,182 127,902 (57,720)
Other working capital accounts (202,241) (28,687) (173,554)
Provision for estimated losses and reserves 10,335 29,799 (19,464)
Changes in other regulatory assets (134,571) 57,632 (192,203)
Other 198,315 112,156 86,159
-------- -------- --------
Net cash flow provided by operating activities 511,426 986,789 (475,363)
-------- -------- --------
INVESTING ACTIVITIES
Construction/capital expenditures (477,302) (440,755) (36,547)
Allowance for equity funds used during construction 7,928 6,950 978
Nuclear fuel purchases (32,912) (11,393) (21,519)
Proceeds from sale/leaseback of nuclear fuel 23,602 11,286 12,316
Proceeds from sale of businesses (29,490) (21,664) (7,826)
Investment in other nonregulated/nonutility properties (16,837) (81,681) 64,844
Decrease (increase) in other investments - 573 (573)
Changes in other temporary investments - net - 100,600 (100,600)
Decommissioning trust contributions and realized change in trust assets (35,455) (16,524) (18,931)
Other regulatory investments 5,872 33,001 (27,129)
Other (2,620) (55,867) 53,247
-------- -------- --------
Net cash flow used in investing activities (557,214) (475,474) (81,740)
-------- -------- --------
FINANCING ACTIVITIES
Proceeds from the issuance of:
Long-term debt 828,740 193,107 635,633
Common stock 14,492 2,011 12,481
Retirement of:
Long-term debt (174,860) (85,024) (89,836)
Repurchase of common stock (14,920) - (14,920)
Redemption of preferred stock 0 0 -
Changes in credit line borrowings - net (135,000) (700,000) 565,000
Dividends paid:
Common stock (77,777) (67,010) (10,767)
Preferred stock (5,916) (3,763) (2,153)
-------- -------- --------
Net cash flow provided by (used in) financing activities 434,759 (660,679) 1,095,438
-------- -------- --------
Effect of exchange rates on cash and cash equivalents (2,490) (339) (2,151)
-------- -------- --------
Net increase (decrease) in cash and cash equivalents 386,481 (149,703) 536,184
Cash and cash equivalents at beginning of period 948,847 901,276 47,571
-------- -------- --------
Cash and cash equivalents at end of period $1,335,328 $751,573 $583,755
========== ======== ========
Entergy Corporation
Consolidated Cash Flow Statement
Year to Date December 31, 2002 vs. 2001
(Dollars in thousands)
(Unaudited)
2002 2001 Variance
OPERATING ACTIVITIES
Consolidated net income $623,073 $750,507 ($127,434)
Noncash items included in net income:
Reserve for regulatory adjustments 18,848 (359,199) 378,047
Other regulatory charges (credits) - net (141,836) (20,510) (121,326)
Depreciation, amortization, and decommissioning 869,638 724,222 145,416
Deferred income taxes and investment tax credits (256,664) 87,752 (344,416)
Allowance for equity funds used during construction (31,658) (26,209) (5,449)
Cumulative effect of accounting change - (23,482) 23,482
Gain loss on sale of assets - net (6,612) (5,226) (1,386)
Equity in undistributed earnings of subsidiaries and unconsolidated affiliates (203,340) (168,873) (34,467)
Provision for turbine commitments, asset impairments and restructuring charges 428,456 - 428,456
Changes in working capital:
Receivables (43,957) 302,230 (346,187)
Fuel inventory 1,030 (3,419) 4,449
Accounts payable 286,230 (415,160) 701,390
Taxes accrued 462,956 486,676 (23,720)
Interest accrued 7,209 17,287 (10,078)
Deferred fuel 156,181 495,007 (338,826)
Other working capital accounts (286,232) (39,978) (246,254)
Provision for estimated losses and reserves 10,533 19,093 (8,560)
Changes in other regulatory assets 71,933 119,215 (47,282)
Other 215,915 275,615 (59,700)
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Net cash flow provided by operating activities 2,181,703 2,215,548 (33,845)
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INVESTING ACTIVITIES
Construction/capital expenditures (1,530,301) (1,380,417) (149,884)
Allowance for equity funds used during construction 31,658 26,209 5,449
Nuclear fuel purchases (250,309) (130,670) (119,639)
Proceeds from sale/leaseback of nuclear fuel 183,664 71,964 111,700
Proceeds from sale of businesses 215,088 784,282 (569,194)
Investment in other nonregulated/nonutility properties (216,956) (647,015) 430,059
Decrease (increase) in other investments 38,964 (631,975) 670,939
Changes in other temporary investments - net 150,000 (150,000) 300,000
Decommissioning trust contributions and realized change in trust assets (84,914) (95,571) 10,657
Other regulatory investments (39,390) (3,460) (35,930)
Other 114,033 (68,067) 182,100
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Net cash flow used in investing activities (1,388,463) (2,224,720) 836,257
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FINANCING ACTIVITIES
Proceeds from the issuance of:
Long-term debt 1,197,330 682,402 514,928
Common stock 130,061 64,345 65,716
Retirement of:
Long-term debt (1,341,274) (962,112) (379,162)
Repurchase of common stock (118,499) (36,895) (81,604)
Redemption of preferred stock (1,858) (39,574) 37,716
Changes in credit line borrowings - net 244,333 (37,004) 281,337
Dividends paid:
Common stock (298,991) (269,122) (29,869)
Preferred stock (23,712) (24,044) 332
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Net cash flow used in financing activities (212,610) (622,004) 409,394
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Effect of exchange rates on cash and cash equivalents 3,125 325 2,800
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Net increase (decrease) in cash and cash equivalents 583,755 (630,851) 1,214,606
Cash and cash equivalents at beginning of period 751,573 1,382,424 (630,851)
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Cash and cash equivalents at end of period $1,335,328 $751,573 $583,755
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