EXHIBIT 99.1
For more information contact
MEDIA:
LETICIA LOWE
[TEXAS GENCO LOGO] Phone 713.207.7702
INVESTORS:
MARIANNE PAULSEN
Phone 713.207.6500
FOR IMMEDIATE RELEASE
Page 1 of 3
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TEXAS GENCO REPORTS STRONG FOURTH QUARTER AND FULL YEAR 2003 RESULTS
COMPANY RAISES 2004 EARNINGS GUIDANCE
HOUSTON - FEBRUARY 12, 2004 - Texas Genco Holdings, Inc. (NYSE: TGN),
an 81 percent-owned subsidiary of CenterPoint Energy, Inc. (NYSE: CNP), today
reported net income of $46 million, or $0.58 per share, for the quarter ended
December 31, 2003, compared to a net loss of $43 million, or $0.54 per share,
for the same period of 2002.
For the year ended December 31, 2003, the company reported $151 million,
or $1.89 per share, of income before cumulative effect of accounting change
compared to a loss of $93 million, or $1.16 per share, for the same period of
2002. Net income for 2003 was $250 million, or $3.13 per share, which reflects
the benefit from the cumulative effect of accounting change of $99 million, or
$1.24 per share, from the implementation of SFAS No. 143, "Accounting for Asset
Retirement Obligations", compared to a net loss of $93 million, or $1.16 per
share, for 2002.
"Our improved quarterly earnings were impacted by higher wholesale
electricity prices which were driven by increased natural gas prices," said
David Tees, president and chief executive officer of Texas Genco. "These higher
prices, coupled with our large fleet of solid fuel baseload generating capacity,
produced a significant turnaround in our financial performance for the entire
year," stated Tees. "I'm very proud of our employees who worked diligently
throughout the year focusing on doing what they do best -- running efficient,
safe and reliable plants."
For the fourth quarter of 2003, Texas Genco reported increased revenues
compared to the same period of 2002. Capacity and other revenues were bolstered
by increased prices for its baseload products due primarily to strong wholesale
electricity prices and revenues from the sales of surplus air emission
allowances ($10 million). Energy revenues also increased and more than offset
increased fuel and purchased power costs. Operation and maintenance expenses for
the fourth quarter of 2003 were lower than the prior year primarily related to
expenses incurred in the fourth quarter of 2002 which did not recur in the
fourth quarter of 2003, the most significant of which was an early retirement
program. Taxes other than income taxes increased in the fourth quarter of 2003
compared to the same period of 2002 due primarily to higher property taxes in
2003 and to reduced state franchise taxes in the fourth quarter of 2002.
- more -
For more information contact
MEDIA:
LETICIA LOWE
[TEXAS GENCO LOGO] Phone 713.207.7702
INVESTORS:
MARIANNE PAULSEN
Phone 713.207.6500
FOR IMMEDIATE RELEASE
Page 2 of 3
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For the full year 2003, Texas Genco reported significantly increased
revenues compared to 2002. Consistent with the fourth quarter, revenues
increased due to higher capacity revenue for baseload products, the sales of
surplus air emission allowances ($16 million) and higher energy revenues which
more than offset higher fuel and purchased power costs. Operation and
maintenance expenses increased due to higher pension expenses, as well as higher
costs associated with planned and several unplanned unit outages. These
increases were partially offset by expenses incurred in the fourth quarter of
2002, which did not recur in 2003, as noted above.
2004 OUTLOOK
The company raised its full year 2004 earnings per share estimate to $3.35
- - $3.75 from its initial earnings estimate of $2.75 - $3.25 per share. The
revised estimate reflects the forward sales of over $850 million of capacity
revenues under contract for 2004, including approximately 83 percent of its
available baseload capacity. Earnings for 2004 will be highly dependent on the
operating performance of the company's baseload generating units, as well as the
continuation of strong wholesale electricity prices.
WEBCAST OF EARNINGS CONFERENCE CALL
The management of Texas Genco will host an earnings conference call on
Thursday, Feb. 12, 2004, at 9 a.m. Central time. Interested parties may listen
to a live, audio broadcast of the conference call at
www.txgenco.com/investor.html. A replay can be accessed approximately two hours
after the completion of the call, and will be archived on the web site for at
least one year.
Texas Genco Holdings, Inc., based in Houston, Texas, is one of the largest
wholesale electric power generating companies in the United States with over
14,000 megawatts of generation capacity, of which nearly 3,000 megawatts are
currently in mothball status. It sells electric generation capacity, energy and
ancillary services in one of the nation's largest power markets, the Electric
Reliability Council of Texas (ERCOT). Texas Genco has one of the most
diversified generation portfolios in Texas, using natural gas, oil, coal,
lignite, and uranium fuels. The company owns and operates 60 generating units at
11 electric power-generating facilities and owns a 30.8 percent interest in a
nuclear generating plant. Texas Genco currently is a majority-owned subsidiary
of CenterPoint Energy, Inc. For more information, visit our web site at
www.txgenco.com.
- more -
For more information contact
MEDIA:
LETICIA LOWE
[TEXAS GENCO LOGO] Phone 713.207.7702
INVESTORS:
MARIANNE PAULSEN
Phone 713.207.6500
FOR IMMEDIATE RELEASE
Page 3 of 3
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This news release includes forward-looking statements. Actual events and
results may differ materially from those projected. The statements in this news
release regarding future financial performance and results of operations and
other statements that are not historical facts are forward-looking statements.
Factors that could affect actual results include the timing and impact of future
regulatory and legislative decisions, effects of competition, weather
variations, changes in Texas Genco's business plans, financial market
conditions, the timing and extent of changes in commodity prices, particularly
natural gas, the impact of unplanned plant outages and other factors discussed
in Texas Genco's Form 10-Q for the quarterly period ended September 30, 2003 and
other filings with the Securities and Exchange Commission.
- # # # -
Texas Genco Holdings, Inc.
Statements of Consolidated Operations
(Thousands of Dollars)
(Unaudited)
Quarter Ended Twelve Months Ended
December 31, December 31,
---------------------------- ----------------------------
2003 2002 2003 2002
----------- ---------- ----------- -----------
Revenues:
Energy revenues $ 214,629 $ 200,050 $ 1,221,348 $ 1,093,714
Capacity and other revenues 193,278 75,242 781,020 447,261
----------- ---------- ----------- -----------
Total 407,907 275,292 2,002,368 1,540,975
----------- ---------- ----------- -----------
Expenses:
Fuel costs 175,049 175,755 1,098,269 989,560
Purchased power 17,282 6,624 72,509 93,841
Operation and maintenance 100,506 119,246 411,940 391,465
Depreciation and amortization 39,762 38,972 159,010 156,740
Taxes other than income taxes 10,823 (5,910) 38,681 42,930
----------- ---------- ----------- -----------
Total 343,422 334,687 1,780,409 1,674,536
----------- ---------- ----------- -----------
Operating Income (Loss) 64,485 (59,395) 221,959 (133,561)
Other Income (Expense) 5,308 85 2,176 3,423
Interest Expense - (1,355) (1,583) (25,637)
----------- ---------- ----------- -----------
Income (Loss) Before Income Taxes and Cumulative Effect of
Accounting Change 69,793 (60,665) 222,552 (155,775)
Income Tax Benefit (Expense) (23,344) 17,410 (71,286) 62,832
----------- ---------- ----------- -----------
Income (Loss) Before Cumulative Effect of Accounting Change 46,449 (43,255) 151,266 (92,943)
Cumulative Effect of Accounting Change, net of tax - - 98,910 -
----------- ---------- ----------- -----------
Net Income (Loss) Attributable to Common Shareholders $ 46,449 $ (43,255) $ 250,176 $ (92,943)
=========== ========== =========== ===========
Basic and Diluted Earnings Per Common Share:
Income (Loss) Before Cumulative Effect of Accounting Change $ 0.58 $ (0.54) $ 1.89 $ (1.16)
Cumulative Effect of Accounting Change, net of tax - - 1.24 -
----------- ---------- ----------- -----------
Net Income (Loss) Attributable to Common Shareholders $ 0.58 $ (0.54) $ 3.13 $ (1.16)
=========== ========== =========== ===========
Dividends Declared per Common Share $ 0.25 $ - $ 1.00 $ -
Weighted Average Common Shares Outstanding (000):
- Basic 80,000 80,000 80,000 80,000
- Diluted 80,000 80,000 80,000 80,000
Electric Generation Power Sales (MWH) 11,047,141 9,539,888 47,374,490 51,462,581
Reference is made to the Notes to the Consolidated Financial Statements
contained in the Annual Report on Form 10-K of Texas Genco Holdings, Inc.