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 FIRST QUARTER 2004 EARNINGS
Reaffirms 2004 Earnings Guidance
St. Louis, Mo., April 29, 2004---Ameren Corporation (NYSE: AEE) today
announced first quarter 2004 net income of $97 million, or 55 cents per share,
compared to first quarter 2003 net income of $101 million, or 63 cents per
share. Net income in the first three months of last year included an after-tax
gain of $18 million, or 11 cents per share, due to the adoption of a new
accounting standard related to the recognition of asset retirement obligations.
Income in the first quarter of 2003 before the cumulative effect of this change
in accounting principle was $83 million, or 52 cents per share.
"Despite milder winter weather, we were able to produce solid earnings this
quarter. Excluding the 2003 gain associated with the new accounting standard,
2004 first quarter earnings were up over first quarter 2003," said Gary L.
Rainwater, chairman, chief executive officer and president of Ameren
Corporation. "The CILCORP acquisition, emission credit sales, a recovering
economy and our focus on cost control positively affected 2004 first quarter
earnings. These benefits more than offset the negative effects of milder winter
weather, higher fuel and purchased power costs, weaker energy markets and
earnings per share dilution resulting from increased common shares outstanding."
Revenues in the first quarter of 2004 increased $108 million to $1.2
billion, compared to the same period in 2003. An additional month of CILCORP
Inc. sales in 2004, resulting from the completion of that acquisition on Jan.
31, 2003, increased revenues by $105 million. In addition, improving economic
conditions and higher sales to customers in the deregulated Illinois marketplace
increased total revenues as industrial and weather-sensitive commercial sales
rose 4 percent and 1 percent, respectively, during the quarter. Revenues also
benefited from emission credit sales that totaled $15 million during the 2004
first quarter versus approximately $1 million in the prior-year period.
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Add One
First quarter 2004 revenue gains were partially offset by the impact of
milder winter weather that reduced heating demand. In the first quarter of 2004,
heating degree days in Ameren's service territory fell approximately 9 percent
from the year-ago period. Interchange electric revenues also decreased $25
million in the first quarter of 2004, as compared to the same period in 2003,
due to lower power prices and reduced power plant availability. "As expected,
energy market conditions, though solid in the first quarter of 2004, were below
the exceptionally strong first quarter of 2003," added Mr. Rainwater.
Fuel and purchased power expenses increased $39 million in the first
quarter of 2004, versus the same period a year ago, principally due to the
additional month of CILCORP's operations in 2004, sales growth and less low-cost
power plant availability.
Other operations and maintenance expenses increased $14 million in the
first quarter of 2004, as compared to 2003. However, other operations and
maintenance expense increased approximately $15 million as a result of an
additional month of CILCORP ownership in the current period.
The company's proposed acquisition from Dynegy Inc. (NYSE: DYN) of the
stock of Decatur, Ill.-based Illinois Power and a 20 percent interest in
Electric Energy, Inc. (EEI) continues to move forward in the regulatory review
process. "In early February, we announced the signing of a definitive agreement
to purchase Illinois Power and an increased interest in EEI in a transaction
valued at $2.3 billion," noted Mr. Rainwater. "In late March, we completed the
initial filings required for regulatory approval. This acquisition remains on
target to close by the end of this year."
Warner L. Baxter, executive vice president and chief financial officer
added, "Following our announcement of the acquisition, we quickly moved to sell
common stock, generating proceeds of approximately $850 million. This offering
was a conservative and prudent move to secure a significant portion of the
equity financing planned for the Illinois Power transaction. In total, that
equity financing is expected to equal at least 50 percent of the transaction
value. The additional shares issued in this offering reduced earnings by an
estimated 3 cents per share in the first quarter of 2004 since these shares were
issued prior to the close of this transaction. However, we expect this
acquisition to be accretive to earnings by 5 to 10 cents per share in each of
the first two years after closing and to provide significant, long-term value
for all of our stakeholders."
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Add Two
Ameren also announced today that the company is reaffirming its 2004
guidance for earnings per share of between $2.75 and $2.95 per share. The 2004
estimate includes the impact of common shares already issued to partially fund
the Illinois Power acquisition, but excludes any potential earnings impact
resulting from the Illinois Power acquisition or potential further common stock
issuances for this transaction. The company's guidance is subject to, among
other things, plant operations, weather conditions, energy market and economic
conditions, unusual or otherwise unexpected gains or losses and other risks and
uncertainties outlined in the company's Forward-Looking Statements section of
this release.
Ameren will conduct a conference call for financial analysts at 9:00 a.m.
(Central Time) on Thursday, April 29, to discuss first quarter 2004 earnings and
other matters relating to the company. 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 "Q1 2004 Earnings Conference Call," then the
appropriate audio link. A slide presentation is also available on Ameren's
website that reconciles earnings per share between the first quarter of 2003 and
the first quarter of 2004. To access this presentation simply follow the links
for the webcast, and then click on the link for the presentation, which is
provided in a .pdf format. 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), April 29, until May 6 by
dialing, U.S. (800) 428-6051; international (973) 709-2089, and entering the
number: 350682.
With assets of $14.6 billion, Ameren owns a diverse mix of electric
generating plants strategically located in its Midwest market with a capacity of
more than 14,600 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 closing and timing of Ameren's acquisition of Illinois Power and the
impact of any conditions imposed by regulators in connection with their
approval thereof;
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 policies;
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; weather
conditions; generation plant construction, installation and performance;
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; difficulties in integrating AmerenCILCO and Illinois
Power, if consummated, 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 and Illinois Power acquisitions;
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;
o and legal and administrative proceedings.
# # #
AMEREN CORPORATION (AEE)
CONSOLIDATED BALANCE SHEET
(Unaudited, in millions)
March 31, December 31,
2004 2003
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ASSETS
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Current Assets:
Cash and cash equivalents $ 633 $ 111
Accounts receivable - trade 326 326
Unbilled revenue 199 221
Miscellaneous accounts and notes receivable 63 126
Materials and supplies, at average cost 412 487
Other current assets 54 46
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Total current assets 1,687 1,317
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Property and Plant, net 10,969 10,920
Investments and Other Non-Current Assets:
Investments in leveraged leases 161 164
Nuclear decommissioning trust fund 218 212
Goodwill and other intangibles, net 561 574
Other assets 344 320
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Total investments and other non-current assets 1,284 1,270
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Regulatory Assets 701 729
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TOTAL ASSETS $ 14,641 $ 14,236
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LIABILITIES AND STOCKHOLDERS' EQUITY
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Current Liabilities:
Current maturities of long-term debt $ 331 $ 498
Short-term debt 2 161
Accounts and wages payable 249 480
Taxes accrued 182 103
Other current liabilities 252 215
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Total current liabilities 1,016 1,457
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Long-term Debt, Net 4,068 4,070
Preferred Stock of Subsidiary Subject to Mandatory Redemption 21 21
Deferred Credits and Other Non-Current Liabilities:
Accumulated deferred income taxes, net 1,802 1,853
Accumulated deferred investment tax credits 148 151
Regulatory liabilities 832 824
Asset retirement obligations 419 413
Accrued pension and other postretirement benefits 741 699
Other deferred credits and liabilities 186 190
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Total deferred credits and other non-current liabilities 4,128 4,130
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Preferred Stock of Subsidiaries Not Subject to Mandatory Redemption 182 182
Minority Interest in Consolidated Subsidiaries 23 22
Stockholders' Equity:
Common stock 2 2
Other paid-in capital, principally premium on common stock 3,425 2,552
Retained earnings 1,834 1,853
Accumulated other comprehensive income (loss) (44) (44)
Other (14) (9)
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Total stockholders' equity 5,203 4,354
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 14,641 $ 14,236
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AMEREN CORPORATION (AEE)
CONSOLIDATED STATEMENT OF INCOME
(Unaudited) (In millions, except per share amounts)
Three Months Ended
March 31,
--------------------------
2004 2003
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Operating Revenues:
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Electric $ 913 $ 856
Gas 301 250
Other 2 2
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Total operating revenues 1,216 1,108
Operating Expenses:
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Fuel and purchased power 271 232
Gas purchased for resale 213 181
Other operations and maintenance 306 292
Depreciation and amortization 130 124
Taxes other than income taxes 80 78
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Total operating expenses 1,000 907
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Operating Income 216 201
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Other Income and (Deductions):
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Miscellaneous income 8 6
Miscellaneous expense (1) (3)
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Total other income and (deductions) 7 3
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Interest Charges and Preferred Dividends:
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Interest 64 66
Preferred dividends of subsidiaries 3 3
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Net interest charges and preferred dividends 67 69
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Income Before Income Taxes and Cumulative Effect of Change in Accounting Principle 156 135
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Income Taxes 59 52
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Income Before Cumulative Effect of Change in Accounting Principle 97 83
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Cumulative Effect of Change in Accounting Principle - 18
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Net Income $ 97 $ 101
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Earnings per Common Share - Basic and Diluted:
Income before cumulative effect of change in accounting principle $ 0.55 $ 0.52
Cumulative effect of change in accounting principle, net of income taxes - 0.11
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Earnings per Common Share - Basic and Diluted $ 0.55 $ 0.63
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Average Common Shares Outstanding 174.3 158.9
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AMEREN CORPORATION (AEE)
CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited, in millions)
Three Months Ended
March 31,
-------------------
2004 2003
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Cash Flows From Operating Activities:
Net income $ 97 $ 101
Adjustments to reconcile net income to net cash
provided by operating activities:
Cumulative effect of change in accounting principle - (18)
Depreciation and amortization 130 124
Amortization of nuclear fuel 8 7
Amortization of debt issuance costs and premium/discounts 3 2
Deferred income taxes, net (24) 3
Deferred investment tax credits, net (3) (3)
Coal contract settlement 9 -
Changes in assets and liabilities, excluding the effects of the acquisitions:
Receivables, net 37 13
Materials and supplies 75 44
Accounts and wages payable (195) (186)
Taxes accrued 79 68
Assets, other (15) 5
Liabilities, other 55 73
Other (12) (7)
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Net cash provided by operating activities 244 226
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Cash Flows From Investing Activities:
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Construction expenditures (165) (144)
Acquisitions, net of cash acquired - (488)
Nuclear fuel expenditures (3) -
Other 7 3
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Net cash used in investing activities (161) (629)
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Cash Flows From Financing Activities:
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Dividends on common stock (116) (102)
Capital issuance costs (22) (10)
Redemptions, repurchases and maturities:
Nuclear fuel lease (67) (2)
Short-term debt (159) (255)
Long-term debt (100) (31)
Issuances:
Common stock 903 285
Long-term debt - 184
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Net cash provided by financing activities 439 69
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Net Change In Cash and Cash Equivalents 522 (334)
Cash and Cash Equivalents at Beginning of Year 111 628
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Cash and Cash Equivalents at End of Period $ 633 $ 294
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AMEREN CORPORATION (AEE)
CONSOLIDATED OPERATING STATISTICS
Three Months Ended
March 31,
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2004 2003
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Electric Sales - KWH (in millions):
Residential 4,943 4,750
Commercial 4,819 4,410
Industrial 4,323 3,903
Wholesale 2,765 2,286
Other 83 76
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Native 16,933 15,425
Interchange 2,150 2,421
EEI 877 769
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Total 19,960 18,615
Electric Revenues - (in millions):
Residential $ 286 $ 273
Commercial 241 222
Industrial 164 141
Wholesale 95 75
Other 6 6
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Native 792 717
Interchange 76 101
EEI 15 18
Other 30 20
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Total 913 856
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Power Supply (%):
Fossil 79.0 80.8
Nuclear 10.0 11.5
Hydro 1.7 0.6
Purchased 9.3 7.1
Fuel Cost per KWH (cents) 1.075 0.990
Gas Sales - MMBTU (in thousands) 35,036 27,065
March 31, December 31,
2004 2003
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Common Stock:
Shares outstanding (in millions) 182.5 162.9
Book value per share $28.51 $26.73
Capitalization Ratios:
Common equity 56.7% 47.5%
Preferred stock 2.0% 2.0%
Debt, net of cash 41.3% 50.5%