Exhibit 99.1
[GRAPHIC OMITTED][GRAPHIC OMITTED]
One Ameren Plaza
1901 Chouteau Avenue
St. Louis, MO 63103
Contact:
Media Analysts Investors
Tim Fox Bruce Steinke Investor Services
(314) 554-3120 (314) 554-2574 invest@ameren.com
tfox2@ameren.com bsteinke@ameren.com
FOR IMMEDIATE RELEASE
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AMEREN REPORTS THIRD QUARTER 2003 EARNINGS
St. Louis, Mo., Oct. 24, 2003---Ameren Corporation (NYSE: AEE) today
announced 2003 third quarter net income of $275 million, or $1.70 per share,
compared to net income of $240 million, or $1.64 per share ($1.63 diluted), in
the third quarter of 2002. Net income in the third quarter of 2003 included an
after-tax gain of $31 million, or 19 cents per share, related to the settlement
of a dispute over certain mine reclamation issues with a coal supplier.
Excluding this item, third quarter net income was $244 million, or $1.51 per
share.
Net income for the first nine months of 2003 was $486 million, or $3.02 per
share, compared to $414 million, or $2.88 per share ($2.87 diluted), in the
first nine months of 2002. The company recorded an after-tax gain of $18
million, or 11 cents per share, in the first quarter of 2003, due to the
adoption of a new accounting standard related to the recognition of asset
retirement obligations. Excluding the gains on the adoption of the new
accounting standard and the coal mine reclamation settlement, net income for the
first nine months of 2003 was $437 million, or $2.72 per share.
"Once again, we delivered solid earnings in the third quarter of 2003
despite milder summer weather conditions," said Charles W. Mueller, chairman and
chief executive officer of Ameren Corporation. "Our focus on asset optimization
and cost control continues to reap benefits for all of our stakeholders."
Gary L. Rainwater, president and chief operating officer of Ameren, added,
"During the quarter, weather conditions were considerably cooler than in 2002,
which reduced our earnings by 25 to 30 cents per share compared to last year. In
addition, the second phase of electric rate reductions in our Missouri service
territory reduced third quarter 2003 earnings by 5 cents per
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Add One
share compared to the prior year. However, the good performance of the company's
generating plants, higher power prices, lower expenses incurred in our
pre-CILCORP acquisition operations and organic growth significantly offset the
impact of weather and rate reductions."
Electric revenues in the third quarter of 2003 increased $131 million, as
compared to 2002. The acquisition of CILCORP Inc. (including its utility
subsidiary that is now operating as AmerenCILCO), which increased electric
revenues by $168 million, and higher interchange power revenues, which increased
by $15 million, were the key factors behind the quarter's increased revenues.
These increases were partially offset by lower revenues from native load
customers due to cooler summer weather in 2003 compared to 2002, as well as an
incremental annual electric rate decrease in our Missouri service territory of
$30 million that went into effect in April 2003. In the company's pre-CILCORP
acquisition service area, weather-sensitive residential and commercial electric
kilowatthour sales declined 7 percent in the third quarter of 2003, as compared
to the third quarter of 2002. However, industrial electric kilowatthour sales
increased 1 percent in the company's pre-acquisition service territory.
Earnings from interchange power sales by AmerenEnergy, Inc. on behalf of
AmerenUE and AmerenEnergy Generating Company were 10 cents per share in the
third quarter of 2003, up approximately 4 cents per share over the same period
in 2002. This increase in earnings was due to higher power prices, greater
availability of the company's low-cost generating plants and reduced demand from
weather-sensitive native load customers.
Other operations and maintenance expenses increased $24 million in the
third quarter of 2003, compared to 2002. Increased expenses due to the addition
of CILCORP and rising employee benefit costs were partially offset by lower
labor costs resulting from the voluntary retirement program implemented at
Ameren in early 2003 and lower generating plant maintenance costs.
Third quarter 2003 earnings per share were also unfavorably impacted
compared to 2002 by higher depreciation expenses and financing costs, as well as
a greater number of common shares outstanding.
Commenting on the CILCORP acquisition, Rainwater added, "Our company
remains very focused on the timely integration of AmerenCILCO, which continues
to proceed on plan. In August, we completed the integration of Ameren and
AmerenCILCO financial systems, and we expect the integration of operational
systems to be completed by year-end."
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Add Two
During the third quarter of 2003, the CILCORP acquisition was accretive to
earnings by approximately 2 cents per share, consistent with the company's
expectations. The company believes the CILCORP acquisition will be accretive to
earnings in its first full year of operations, assuming normal weather
conditions.
Ameren also announced today that it was narrowing its 2003 earnings
guidance range to between $2.90 and $3.00 per share, within its original 2003
range of $2.80 to $3.05 per share. This estimate excludes the gains, discussed
above, of 11 cents per share related to the adoption of the new accounting
standard and 19 cents per share for the coal mine reclamation settlement. The
company's guidance is subject to, among other things, plant operations, timely
integration of AmerenCILCO, weather conditions, energy market and economic
conditions and other risks and uncertainties outlined in the company's
Forward-Looking Statements.
Ameren will conduct a conference call for financial analysts at 9:00 a.m.
(Central Time) on Friday, Oct. 24, to discuss third quarter 2003 earnings.
Investors, the news media and the public may listen to a live Internet broadcast
of the Ameren analyst call at www.ameren.com by clicking on "Third Quarter
Earnings Conference Call," then the appropriate audio link. The analyst call
will also be available for replay on the Internet for one year. Telephone
playback of the conference call will also be available beginning at 12:00 p.m.
(Central Time), Oct. 24, until Oct. 31 by dialing, U.S. (800) 428-6051;
international (973) 709-2089, and entering the number: 308455.
Ameren will also conduct a live Internet broadcast at 8:45 a.m. (Central
Time) on Tuesday, Oct. 28 of a management presentation at the Edison Electric
Institute Financial Conference. The webcast can be accessed at www.ameren.com by
clicking on "Ameren Corporation at 38th EEI Financial Conference," then the
appropriate audio link.
With assets of $13.5 billion, Ameren owns a diverse mix of electric
generating plants strategically located in its Midwest market with a capacity of
more than 14,500 megawatts. Ameren serves 1.7 million electric customers and
500,000 natural gas customers in a 49,000 square-mile area of Missouri and
Illinois.
Forward-Looking Statements
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Statements made in this release, which are not based on historical facts,
are "forward-looking" and, accordingly, involve risks and uncertainties that
could cause actual results to differ materially from those discussed. Although
such "forward-looking" statements have been made in good faith and are based on
reasonable assumptions, there is no assurance that the expected results will be
achieved. These statements include (without limitation) statements as to future
expectations, beliefs, plans, strategies, objectives, events, conditions, and
financial
performance. In connection with the "safe harbor" provisions of the Private
Securities Litigation Reform Act of 1995, the company is providing this
cautionary statement to identify important factors that could cause actual
results to differ materially from those anticipated. The following factors, in
addition to those discussed elsewhere in this release and in past and subsequent
securities filings, could cause actual results to differ materially from
management expectations as suggested by such "forward-looking" statements:
o the effects of the stipulation and agreement relating to the AmerenUE
Missouri electric excess earnings complaint case and other regulatory
actions, including changes in regulatory policy;
o changes in laws and other governmental actions, including monetary and
fiscal policy;
o the impact on the company of current regulations related to the
opportunity for customers to choose alternative energy suppliers in
Illinois;
o the effects of increased competition in the future due to, among other
things, deregulation of certain aspects of the company's business at
both the state and federal levels;
o the effects of participation in a Federal Energy Regulatory
Commission-approved regional transmission organization, including
activities associated with the Midwest Independent System Operator;
o the availability of fuel for the production of electricity, such as
coal and natural gas, and purchased power and natural gas for
distribution, and the level and volatility of future market prices for
such commodities, including the ability to recover any increased
costs;
o the use of financial and derivative instruments;
o average rates for electricity in the Midwest;
o business and economic conditions;
o the impact of the adoption of new accounting standards and the
application of appropriate technical accounting rules and guidance;
o interest rates and the availability of capital;
o actions of ratings agencies and the effects of such actions;
o weather conditions;
o generation plant construction, installation and performance;
o operation of nuclear power facilities and decommissioning costs;
o the effects of strategic initiatives, including acquisitions and
divestitures;
o the impact of current environmental regulations on utilities and
generating companies and the expectation that more stringent
requirements will be introduced over time, which could potentially
have a negative financial effect;
o future wages and employee benefits costs, including changes in returns
on benefit plan assets;
o disruptions of the capital markets or other events making the
company's access to necessary capital more difficult or costly;
o competition from other generating facilities, including new facilities
that may be developed;
o difficulties in integrating AmerenCILCO with the company's other
businesses;
o changes in the coal markets, environmental laws or regulations, or
other factors adversely impacting synergy assumptions in connection
with the CILCORP Inc. acquisition;
o cost and availability of transmission capacity for the energy
generated by the company's generating facilities or required to
satisfy energy sales made by the company; and
o legal and administrative proceedings.
# # #
AMEREN CORPORATION (AEE)
CONSOLIDATED OPERATING STATISTICS
Three Months Ended Nine Months Ended
September 30, September 30,
----------------------------- ----------------------------
2003 2002 2003 2002
------------ ------------ ------------ ------------
Electric Sales - KWH (in millions):
Residential 5,488 5,229 13,706 12,859
Commercial 5,256 5,024 14,172 13,233
Industrial 4,743 3,262 13,175 9,448
Wholesale 2,418 2,507 6,671 6,657
Other 73 69 225 204
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Native 17,978 16,091 47,949 42,401
Interchange sales 2,145 1,467 6,566 6,555
EEI 1,848 1,765 4,073 5,128
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Total 21,971 19,323 58,588 54,084
Electric Revenues - (in millions):
Residential $ 452 $ 437 $ 1,007 $ 974
Commercial 362 345 880 824
Industrial 221 157 558 400
Wholesale 87 86 228 219
Other 6 6 19 18
------------ ------------ ------------- -------------
Native 1,128 1,031 2,692 2,435
Interchange sales 63 40 221 157
EEI 51 48 111 156
Other 24 16 66 64
------------ ------------ ------------- -------------
Total 1,266 1,135 3,090 2,812
Power Supply (%):
Fossil 77.0 78.9 77.2 74.3
Nuclear 11.0 12.4 11.9 12.4
Hydro 0.6 1.1 0.9 1.7
Purchased 11.4 7.6 10.0 11.6
Fuel Cost per KWH (cents) 1.166 1.104 1.081 1.027
Gas Sales - MMBTU (in thousands) 6,983 3,040 50,745 25,818
September 30, December 31,
2003 2002
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Common Stock:
Shares outstanding (in millions) 162.3 154.1
Book value per share $26.70 $24.26
Capitalization Ratios:
Common equity 48.1% 51.6%
Preferred stock 2.4% 2.6%
Debt, net of cash 49.5% 45.8%
AMEREN CORPORATION (AEE)
CONSOLIDATED BALANCE SHEET
(Unaudited, in millions)
September 30, December 31,
2003 2002
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ASSETS
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Current Assets:
Cash and cash equivalents $ 100 $ 628
Accounts receivable - trade 362 266
Unbilled revenue 184 176
Miscellaneous accounts and notes receivable 131 44
Materials and supplies, at average cost 476 299
Other current assets 57 39
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Total current assets 1,310 1,452
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Property and Plant, net 10,152 8,840
Investments and Other Non-Current Assets:
Investments 166 38
Nuclear decommissioning trust fund 195 172
Goodwill and other intangibles, net 630 -
Other assets 317 307
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Total investments and other assets 1,308 517
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Regulatory Assets 767 690
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TOTAL ASSETS $ 13,537 $ 11,499
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LIABILITIES AND STOCKHOLDERS' EQUITY
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Current Liabilities:
Current maturities of long-term debt $ 499 $ 339
Short-term debt 3 271
Accounts and wages payable 275 369
Asset retirement obligations 4 -
Taxes accrued 231 45
Other current liabilities 237 177
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Total current liabilities 1,249 1,201
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Long-term Debt, Net 4,046 3,433
Preferred Stock Subject to Mandatory Redemption 21 -
Deferred Credits and Other Non-Current Liabilities:
Accumulated deferred income taxes, net 1,993 1,707
Accumulated deferred investment tax credits 153 149
Regulatory liabilities 133 136
Asset retirement obligations 408 174
Accrued pension liabilities 527 377
Other deferred credits and liabilities 439 272
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Total deferred credits and other liabilities 3,653 2,815
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Preferred Stock Not Subject to Mandatory Redemption 213 193
Minority Interest in Consolidated Subsidiaries 21 15
Stockholders' Equity:
Common stock 2 2
Other paid-in capital, principally premium on common stock 2,528 2,203
Retained earnings 1,917 1,739
Accumulated other comprehensive income (loss) (103) (93)
Other (10) (9)
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Total stockholders' equity 4,334 3,842
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 13,537 $ 11,499
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AMEREN CORPORATION (AEE)
CONSOLIDATED STATEMENT OF INCOME
(Unaudited) (In millions, except per share amounts)
Three Months Ended Nine Months Ended
September 30, September 30,
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2003 2002 2003 2002
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Operating Revenues:
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Electric $ 1,266 $ 1,135 $ 3,090 $ 2,812
Gas 82 30 450 202
Other 2 1 6 4
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Total operating revenues 1,350 1,166 3,546 3,018
Operating Expenses:
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Fuel and purchased power 330 248 793 655
Gas purchased for resale 54 17 326 129
Other operations and maintenance 302 278 901 835
Coal contract settlement (51) - (51) -
Depreciation and amortization 132 108 388 321
Taxes other than income taxes 83 74 238 211
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Total operating expenses 850 725 2,595 2,151
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Operating Income 500 441 951 867
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Other Income and (Deductions):
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Allowance for equity funds used during construction 1 1 2 3
Miscellaneous, net -
Miscellaneous income 3 5 14 13
Miscellaneous expense (3) (3) (14) (46)
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Total other income and (deductions) 1 3 2 (30)
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Interest Charges and Preferred Dividends:
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Interest 70 57 208 162
Allowance for borrowed funds used during construction (1) (1) (4) (4)
Preferred dividends of subsidiaries 3 3 8 9
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Net interest charges and preferred dividends 72 59 212 167
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Income Before Income Taxes and Cumulative Effect of Change in Accounting Principle 429 385 741 670
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Income Taxes 154 145 273 256
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Income Before Cumulative Effect of Change in Accounting Principle 275 240 468 414
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Cumulative Effect of Change in Accounting Principle, Net of Income Taxes - - 18 -
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Net Income $ 275 $ 240 $ 486 $ 414
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Earnings per Common Share - Basic:
Income before cumulative effect of change in accounting principle $ 1.70 $ 1.64 $ 2.91 $ 2.88
Cumulative effect of change in accounting principle, net of income taxes - - 0.11 -
-------- -------- -------- --------
Net income $ 1.70 $ 1.64 $ 3.02 $ 2.88
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Earnings per Common Share - Diluted:
Income before cumulative effect of change in accounting principle $ 1.70 $ 1.63 $ 2.91 $ 2.87
Cumulative effect of change in accounting principle, net of income taxes - - 0.11 -
-------- -------- -------- --------
Net income $ 1.70 $ 1.63 $ 3.02 $ 2.87
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Average Common Shares Outstanding 161.8 146.7 160.7 143.6
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AMEREN CORPORATION (AEE)
CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited, in millions)
Nine Months Ended
September 30,
----------------------
2003 2002
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Cash Flows From Operating Activities:
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Net Income $ 486 $ 414
Adjustments to reconcile net income to net cash
provided by operating activities:
Cumulative effect of change in accounting principle (18) -
Depreciation and amortization 388 321
Amortization of nuclear fuel 25 25
Amortization of debt issuance costs and premium/discounts 8 6
Allowance for funds used during construction (6) (7)
Deferred income taxes, net 30 11
Deferred investment tax credits, net (9) (6)
Coal contract settlement (45) -
Other (8) 5
Changes in assets and liabilities, excluding the effects of the acquisitions:
Receivables, net 17 (49)
Materials and supplies (69) 15
Accounts and wages payable (171) (217)
Taxes accrued 167 214
Assets, other (2) (16)
Liabilities, other 59 17
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Net cash provided by operating activities 852 733
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Cash Flows From Investing Activities:
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Construction expenditures (457) (565)
Acquisitions, net of cash acquired (489) -
Allowance for funds used during construction 6 7
Nuclear fuel expenditures (2) (25)
Other 4 1
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Net cash used in investing activities (938) (582)
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Cash Flows From Financing Activities:
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Dividends on common stock (308) (279)
Capital issuance costs (13) (35)
Redemptions -
Nuclear fuel lease (38) -
Short-term debt (268) (635)
Long-term debt (648) (158)
Preferred stock (1) (41)
Issuances -
Common stock 336 635
Nuclear fuel lease - 31
Long-term debt 498 893
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Net cash provided by (used in) financing activities (442) 411
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Net Change In Cash and Cash Equivalents (528) 562
Cash and Cash Equivalents at Beginning of Year 628 67
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Cash and Cash Equivalents at End of Period $ 100 $ 629
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