Attached files
| file | filename |
|---|---|
| 8-K - ENTERGY CORP /DE/ | a05809.htm |
| EX-99.3 - ENTERGY CORP /DE/ | a05809993.htm |
| EX-99.1 - ENTERGY CORP /DE/ | a05809991.htm |
Exhibit
99.2
Entergy
639
Loyola Avenue
New
Orleans, LA 70113
NewsRelease
|
Date:
|
Oct. 22, 2009 | |
|
For
Release:
|
Immediately | |
|
Contact:
|
Chanel
Lagarde (News Media)
(504)
576-4238
clagar1@entergy.com
|
Michele
Lopiccolo (Investor Relations)
(504)
576-4879
mlopicc@entergy.com
|
Entergy
Reports Third Quarter Earnings
New
Orleans, La. Entergy Corporation (NYSE:ETR) today reported third quarter 2009
as-reported earnings of $455.2 million, or $2.32 per share, compared with $470.3
million, or $2.41 per share, for third quarter 2008. On an operational basis,
Entergy’s third quarter 2009 earnings were $470.7 million, or $2.40 per share,
compared with $487.3 million, or $2.50 per share, in third quarter
2008.
|
Consolidated
Earnings – Reconciliation of GAAP to Non-GAAP Measures
|
|||||||
|
Third
Quarter and Year-to-Date 2009 vs. 2008
|
|||||||
| (Per share in U.S. $) | |||||||
|
Third
Quarter
|
Year-to-Date
|
||||||
|
2009
|
2008
|
Change
|
2009
|
2008
|
Change
|
||
|
As-Reported
Earnings
|
2.32
|
2.41
|
(0.09)
|
4.66
|
5.33
|
(0.67)
|
|
|
Less
Special Items
|
(0.08)
|
(0.09)
|
0.01
|
(0.26)
|
(0.18)
|
(0.08)
|
|
|
Operational
Earnings
|
2.40
|
2.50
|
(0.10)
|
4.92
|
5.51
|
(0.59)
|
|
*GAAP
refers to United States generally accepted accounting principles.
Operational
Earnings Highlights for Third Quarter
2009
|
·
|
Utility,
Parent & Other’s results were lower due to higher income tax expense
and higher operation and maintenance
expense.
|
|
·
|
Entergy
Nuclear’s earnings increased as a result of higher revenue from increased
production due to fewer planned and unplanned outage days and higher other
income.
|
|
·
|
Entergy’s
Non-Nuclear Wholesale Assets’ results improved due to lower income tax
expense.
|
“While we
continue to experience the negative effects of the slowed economic recovery, we
are also seeing the positive benefits from progress in key initiatives in both
our utility and non-utility nuclear businesses,” said J.
Wayne Leonard, Entergy’s chairman and chief executive officer. “We are
focused on constantly recalibrating our point of view as markets and government
policies react to the financial crisis, managing our own risks and executing as
opportunities arise.”
Other
Business Highlights
|
·
|
Both
Entergy Gulf States Louisiana and Entergy Louisiana reached settlements in
outstanding formula rate plan (FRP) proceedings that included extension of
each company’s FRP for the years
2008-2010.
|
|
·
|
Entergy
and the staff of the Vermont Department of Public Service reached a
Memorandum of Understanding (MOU) which resolves the remaining issues
between these parties associated with the approval of the non-utility
nuclear spin-off transaction in Vermont. The MOU has been filed with and
must be approved by the Vermont Public Service
Board.
|
|
·
|
For
the eighth consecutive year Entergy was named to the Dow Jones
Sustainability World Index and was one of only two U.S. utility companies
listed. In addition, the Carbon Disclosure Project named Entergy to its
Climate Disclosure Leadership Index for the sixth consecutive
year.
|
Entergy
will host a teleconference to discuss this release at 10:00 a.m. CT on Thursday,
Oct. 22, 2009, with access by telephone, 719-457-2080, confirmation code
4133911. The call and presentation slides can also be accessed via Entergy’s Web
site at www.entergy.com. A replay of the teleconference will be available
through Oct. 29, 2009, by dialing 719-457-0820, confirmation code 4133911. The
replay will also be available on Entergy’s Web site at
www.entergy.com.
Utility,
Parent & Other
In third
quarter 2009, Utility, Parent & Other had as-reported earnings of $259.6
million, or $1.32 per share, compared to $286.0 million, or $1.47 per share, in
third quarter 2008. On an operational basis, third quarter 2009 earnings were
$264.8 million, or $1.35 per share, compared to $303.0 million, or $1.56 per
share, in third quarter 2008. Operational results for Utility, Parent &
Other in third quarter 2009 reflect the absence of the 2008 adjustment reducing
income tax expense (associated with the liquidation of a subsidiary) and higher
operation and maintenance expense. Partially offsetting lower results were
higher net revenue and other income. The effects of hurricanes Gustav and Ike
reduced revenue in third quarter 2008.
Residential
sales in third quarter 2009, on a weather-adjusted basis, increased 3.2 percent
compared to third quarter 2008. Commercial and governmental sales, on a
weather-adjusted basis, increased 1.1 percent year over year. Industrial sales
in the third quarter were down 6.3 percent compared to the same quarter of
2008.
The weak
economy continued to depress sales in the industrial sector, but to a lesser
extent than second quarter 2009, which reflected a 10 percent decline.
Residential and commercial sales increases reflected the absence of two
hurricanes that reduced usage in third quarter last year. Industrial sales in
third quarter 2009 for large customers reflected continued weaknesses in
chemicals and primary metals. Small and mid-sized industrial customers continue
to be the industrial segments most negatively affected by weakness in the
economy. Increased sales also included contributions from the warmer-than-normal
weather particularly from mid June to early July, as reflected in July billed
sales, compared to near-normal weather in third quarter 2008.
Entergy
Nuclear
Entergy
Nuclear earned $200.4 million, or $1.02 per share, on an as-reported basis and
$210.7 million, or $1.07 per share, on an operational basis in third quarter
2009, compared to $205.3 million, or $1.05 per share, on as-reported and
operational bases in third quarter 2008. Entergy Nuclear’s operational earnings
increased as a result of higher revenue from higher generation due to fewer
planned and unplanned outage days in the current quarter and increased other
income primarily associated with decommissioning trust funds. An impairment was
recognized on Entergy Nuclear’s decommissioning trust funds in third quarter
2008 versus no impairments in the current period where gains were recognized on
investment transactions. Higher operation and maintenance expense during the
quarter and the absence of the 2008 adjustment reducing income tax expense
(associated with Massachusetts state tax law) were partially offsetting.
Finally, as-reported results were further reduced by the special item for
spin-off dis-synergies.
Non-Nuclear
Wholesale Assets
Entergy’s
Non-Nuclear Wholesale Assets business incurred a loss of $4.8 million, or two
cents per share, on both as-reported and operational bases in third quarter 2009
compared to a loss of $21.0 million, or 11 cents per share, a year ago. Business
results improved due primarily to lower income tax expense due to the absence of
a 2008 adjustment associated with the redemption of an investment that had the
effect of increasing income tax expense.
Outlook
Entergy
is reaffirming 2009 earnings guidance in the range of $6.20 to $6.80 per share
on an operational basis. As-reported guidance ranges from $6.00 to $6.60 per
share and incorporates spin-off expenses for outside services through June 30,
2009, in addition to projected dis-synergies associated with the spin-off of
Entergy’s non-utility nuclear business and plans to enter into a nuclear
services joint venture.
Business
Separation
The
announced spin-off of Entergy’s non-utility nuclear business will establish a
new independent, publicly traded company, Enexus Energy Corporation. In
addition, Entergy and Enexus intend to enter into a nuclear services joint
venture, with equal ownership, with the joint venture being named EquaGen LLC.
The state regulatory decisions and financing continue as the critical path items
in finalizing the spin-off transaction. The transactions are subject to various
approvals. Regarding financing, on Oct. 1, 2009, Enexus executed Amendment No. 1
to its credit agreement dated Dec. 23, 2008, increasing the total facility
amount to $1.2 billion from $1.175 billion. Enexus will not be permitted to draw
down the facility until certain customary and transactional conditions are met
on or prior to July 1, 2010. Final terms of the transactions and spin-off
completion are subject to the approval of the Entergy Board of
Directors.
Entergy
Corporation is an integrated energy company engaged primarily in electric power
production and retail distribution operations. Entergy owns and operates power
plants with approximately 30,000 megawatts of electric generating capacity, and
it is the second-largest nuclear generator in the United States. Entergy
delivers electricity to 2.7 million utility customers in Arkansas, Louisiana,
Mississippi and Texas. Entergy has annual revenues of more than $13 billion and
approximately 14,700 employees.
Additional
information regarding Entergy’s quarterly results of operations, regulatory
proceedings, planned spin-off of its non-utility nuclear business and other
operations is available in Entergy’s investor news release dated Oct. 22, 2009,
a copy of which has been filed today with the Securities and Exchange Commission
on Form 8-K and is available on Entergy’s investor relations Web site at www.entergy.com/investor_relations.
-30-
In
this news release, and from time to time, Entergy Corporation makes certain
“forward-looking statements” within the meaning of the Private Securities
Litigation Reform Act of 1995. Except to the extent required by the
federal securities laws, Entergy undertakes no obligation to publicly update or
revise any forward-looking statements, whether as a result of new information,
future events, or otherwise.
Forward-looking
statements involve a number of risks and uncertainties. There are
factors that could cause actual results to differ materially from those
expressed or implied in the forward-looking statements, including (a) those
factors discussed in (i) Entergy’s Form 10-K for the year ended December 31,
2008, (ii) Entergy’s Form 10-Q for the quarters ended March 31 and June 30,
2009, and (iii) Entergy’s other reports and filings made under the Securities
Exchange Act of 1934, (b) the uncertainties associated with efforts to remediate
the effects of Hurricanes Gustav and Ike and the January 2009 Arkansas ice storm
and recovery of costs associated with restoration, and (c) the following
transactional factors (in addition to others described elsewhere in this news
release and in subsequent securities filings): (i) risks inherent in the
contemplated spin-off, joint venture and related transactions (including the
level of debt to be incurred by Enexus Energy Corporation and the terms and
costs related thereto), (ii) legislative and regulatory actions, and (iii)
conditions of the capital markets during the periods covered by the
forward-looking statements. Entergy cannot provide any assurances
that the spin-off or any of the proposed transactions related thereto will be
completed, nor can it give assurances as to the terms on which such transactions
will be consummated. The transaction is subject to certain conditions
precedent, including regulatory approvals and the final approval by the Board of
Directors of Entergy.
Appendix
A provides a reconciliation of GAAP as-reported earnings to non-GAAP operational
earnings.
|
Appendix
A: Consolidated Earnings – Reconciliation of GAAP to Non-GAAP
Measures
|
||||||
|
Third
Quarter and Year-to-Date 2009 vs. 2008
|
||||||
|
(Per
share in U.S. $)
|
||||||
|
Third
Quarter
|
Year-to-Date
|
|||||
|
2009
|
2008
|
Change
|
2009
|
2008
|
Change
|
|
|
As-Reported
|
||||||
|
Utility,
Parent & Other
|
1.32
|
1.47
|
(0.15)
|
2.32
|
2.56
|
(0.24)
|
|
Entergy
Nuclear
|
1.02
|
1.05
|
(0.03)
|
2.34
|
2.90
|
(0.56)
|
|
Non-Nuclear
Wholesale Assets
|
(0.02)
|
(0.11)
|
0.09
|
-
|
(0.13)
|
0.13
|
|
Consolidated
As-Reported Earnings
|
2.32
|
2.41
|
(0.09)
|
4.66
|
5.33
|
(0.67)
|
|
Less
Special Items
|
||||||
|
Utility,
Parent & Other
|
(0.03)
|
(0.09)
|
0.06
|
(0.09)
|
(0.18)
|
0.09
|
|
Entergy
Nuclear
|
(0.05)
|
-
|
(0.05)
|
(0.17)
|
-
|
(0.17)
|
|
Non-Nuclear
Wholesale Assets
|
-
|
-
|
-
|
-
|
-
|
-
|
|
Consolidated
Special Items
|
(0.08)
|
(0.09)
|
0.01
|
(0.26)
|
(0.18)
|
(0.08)
|
|
Operational
|
||||||
|
Utility,
Parent & Other
|
1.35
|
1.56
|
(0.21)
|
2.41
|
2.74
|
(0.33)
|
|
Entergy
Nuclear
|
1.07
|
1.05
|
0.02
|
2.51
|
2.90
|
(0.39)
|
|
Non-Nuclear
Wholesale Assets
|
(0.02)
|
(0.11)
|
0.09
|
-
|
(0.13)
|
0.13
|
|
Consolidated
Operational Earnings
|
2.40
|
2.50
|
(0.10)
|
4.92
|
5.51
|
(0.59)
|
|
Entergy
Corporation
|
||||||||||||
|
Consolidated
Income Statement
|
||||||||||||
|
Three
Months Ended September 30
|
||||||||||||
|
(in
thousands)
|
||||||||||||
|
2009
|
2008
|
%
Inc/(Dec)
|
||||||||||
|
(unaudited)
|
||||||||||||
|
Operating
Revenues:
|
||||||||||||
|
Electric
|
$ | 2,195,461 | $ | 3,209,000 | (31.6 | ) | ||||||
|
Natural
gas
|
24,030 | 41,981 | (42.8 | ) | ||||||||
|
Competitive
businesses
|
717,604 | 712,903 | 0.7 | |||||||||
|
Total
|
2,937,095 | 3,963,884 | (25.9 | ) | ||||||||
|
Operating
Expenses:
|
||||||||||||
|
Operation
and maintenance:
|
||||||||||||
|
Fuel,
fuel-related expenses, and gas purchased for resale
|
559,129 | 1,270,160 | (56.0 | ) | ||||||||
|
Purchased
power
|
388,308 | 764,122 | (49.2 | ) | ||||||||
|
Nuclear
refueling outage expenses
|
61,441 | 58,079 | 5.8 | |||||||||
|
Other
operation and maintenance
|
681,576 | 636,989 | 7.0 | |||||||||
|
Decommissioning
|
50,069 | 47,515 | 5.4 | |||||||||
|
Taxes
other than income taxes
|
128,851 | 140,819 | (8.5 | ) | ||||||||
|
Depreciation
and amortization
|
280,641 | 263,656 | 6.4 | |||||||||
|
Other
regulatory charges (credits) – net
|
(13,224 | ) | 30,452 | (143.4 | ) | |||||||
|
Total
|
2,136,791 | 3,211,792 | (33.5 | ) | ||||||||
|
Operating
Income
|
800,304 | 752,092 | 6.4 | |||||||||
|
Other
Income (Deductions):
|
||||||||||||
|
Allowance
for equity funds used during construction
|
14,770 | 10,411 | 41.9 | |||||||||
|
Interest
and dividend income
|
64,730 | 37,533 | 72.5 | |||||||||
|
Other
than temporary impairment losses
|
(457 | ) | (7,133 | ) | (93.6 | ) | ||||||
|
Equity
in earnings of unconsolidated equity affiliates
|
1,316 | 1,459 | (9.8 | ) | ||||||||
|
Miscellaneous
- net
|
4,423 | 5,200 | (14.9 | ) | ||||||||
|
Total
|
84,782 | 47,470 | 78.6 | |||||||||
|
Interest
and Other Charges:
|
||||||||||||
|
Interest
on long-term debt
|
130,132 | 128,746 | 1.1 | |||||||||
|
Other
interest - net
|
22,625 | 33,229 | (31.9 | ) | ||||||||
|
Allowance
for borrowed funds used during construction
|
(8,252 | ) | (5,939 | ) | 38.9 | |||||||
|
Total
|
144,505 | 156,036 | (7.4 | ) | ||||||||
|
Income
Before Income Taxes
|
740,581 | 643,526 | 15.1 | |||||||||
|
Income
Taxes
|
280,414 | 168,239 | 66.7 | |||||||||
|
Consolidated
Net Income
|
460,167 | 475,287 | (3.2 | ) | ||||||||
|
Preferred
Dividend Requirements of Subsidiaries
|
4,998 | 4,998 | - | |||||||||
|
Net
Income Attributable to Entergy Corporation
|
$ | 455,169 | $ | 470,289 | (3.2 | ) | ||||||
|
Earnings
Per Average Common Share
|
||||||||||||
|
Basic
|
$ | 2.35 | $ | 2.47 | (4.9 | ) | ||||||
|
Diluted
|
$ | 2.32 | $ | 2.41 | (3.7 | ) | ||||||
|
Average
Number of Common Shares Outstanding - Basic
|
193,424,904 | 190,379,009 | ||||||||||
|
Average
Number of Common Shares Outstanding - Diluted
|
195,875,241 | 194,960,830 | ||||||||||
|
Entergy
Corporation
|
||||||||||||
|
Consolidated
Income Statement
|
||||||||||||
|
Nine
Months Ended September 30
|
||||||||||||
|
(in
thousands)
|
||||||||||||
|
2009
|
2008
|
%
Inc/(Dec)
|
||||||||||
|
(unaudited)
|
||||||||||||
|
Operating
Revenues:
|
||||||||||||
|
Electric
|
$ | 6,140,823 | $ | 7,779,450 | (21.1 | ) | ||||||
|
Natural
gas
|
126,914 | 185,361 | (31.5 | ) | ||||||||
|
Competitive
businesses
|
1,979,259 | 2,128,077 | (7.0 | ) | ||||||||
|
Total
|
8,246,996 | 10,092,888 | (18.3 | ) | ||||||||
|
Operating
Expenses:
|
||||||||||||
|
Operation
and maintenance:
|
||||||||||||
|
Fuel,
fuel-related expenses, and gas purchased for resale
|
1,927,692 | 2,537,498 | (24.0 | ) | ||||||||
|
Purchased
power
|
1,034,483 | 2,132,967 | (51.5 | ) | ||||||||
|
Nuclear
refueling outage expenses
|
178,454 | 165,177 | 8.0 | |||||||||
|
Other
operation and maintenance
|
2,021,462 | 1,958,566 | 3.2 | |||||||||
|
Decommissioning
|
148,119 | 140,327 | 5.6 | |||||||||
|
Taxes
other than income taxes
|
385,649 | 375,332 | 2.7 | |||||||||
|
Depreciation
and amortization
|
799,183 | 756,617 | 5.6 | |||||||||
|
Other
regulatory charges (credits) – net
|
(29,371 | ) | 99,970 | (129.4 | ) | |||||||
|
Total
|
6,465,671 | 8,166,454 | (20.8 | ) | ||||||||
|
Operating
Income
|
1,781,325 | 1,926,434 | (7.5 | ) | ||||||||
|
Other
Income (Deductions):
|
||||||||||||
|
Allowance
for equity funds used during construction
|
47,499 | 28,782 | 65.0 | |||||||||
|
Interest
and dividend income
|
170,007 | 143,273 | 18.7 | |||||||||
|
Other
than temporary impairment losses
|
(85,396 | ) | (35,193 | ) | 142.7 | |||||||
|
Equity
in loss of unconsolidated equity affiliates
|
(442 | ) | (2,042 | ) | (78.4 | ) | ||||||
|
Miscellaneous
- net
|
(20,468 | ) | (2,439 | ) | 739.2 | |||||||
|
Total
|
111,200 | 132,381 | (16.0 | ) | ||||||||
|
Interest
and Other Charges:
|
||||||||||||
|
Interest
on long-term debt
|
383,255 | 371,793 | 3.1 | |||||||||
|
Other
interest - net
|
69,406 | 93,795 | (26.0 | ) | ||||||||
|
Allowance
for borrowed funds used during construction
|
(26,547 | ) | (15,992 | ) | 66.0 | |||||||
|
Total
|
426,114 | 449,596 | (5.2 | ) | ||||||||
|
Income
Before Income Taxes
|
1,466,411 | 1,609,219 | (8.9 | ) | ||||||||
|
Income
Taxes
|
534,101 | 544,256 | (1.9 | ) | ||||||||
|
Consolidated
Net Income
|
932,310 | 1,064,963 | (12.5 | ) | ||||||||
|
Preferred
Dividend Requirements of Subsidiaries
|
14,993 | 14,971 | 0.1 | |||||||||
|
Net
Income Attributable to Entergy Corporation
|
$ | 917,317 | $ | 1,049,992 | (12.6 | ) | ||||||
|
Earnings
Per Average Common Share
|
||||||||||||
|
Basic
|
$ | 4.73 | $ | 5.48 | (13.7 | ) | ||||||
|
Diluted
|
$ | 4.66 | $ | 5.33 | (12.6 | ) | ||||||
|
Average
Number of Common Shares Outstanding - Basic
|
194,044,214 | 191,444,611 | ||||||||||
|
Average
Number of Common Shares Outstanding - Diluted
|
197,382,562 | 197,064,629 | ||||||||||
|
Entergy
Corporation
|
||||||||||
|
Utility
Electric Energy Sales & Customers
|
||||||||||
|
Three
Months Ended September 30
|
||||||||||
|
2009
|
2008
|
%
Change
|
%
Weather-Adjusted
|
|||||||
|
(Millions
of kwh)
|
||||||||||
|
Electric
Energy Sales:
|
||||||||||
|
Residential
|
11,213
|
10,671
|
5.1
|
3.2
|
||||||
|
Commercial
|
8,131
|
7,997
|
1.7
|
1.0
|
||||||
|
Governmental
|
663
|
649
|
2.2
|
1.6
|
||||||
|
Industrial
|
9,473
|
10,110
|
(6.3)
|
(6.3)
|
||||||
|
Total
to Ultimate Customers
|
29,480
|
29,427
|
0.2
|
(0.7)
|
||||||
|
Wholesale
|
1,164
|
1,431
|
(18.7)
|
|||||||
|
Total
Sales
|
30,644
|
30,858
|
(0.7)
|
|||||||
|
Nine
Months Ended September 30
|
||||||||||
|
2009
|
2008
|
%
Change
|
%
Weather-Adjusted
|
|||||||
|
(Millions
of kwh)
|
||||||||||
|
Electric
Energy Sales:
|
||||||||||
|
Residential
|
26,206
|
26,055
|
0.6
|
0.7
|
||||||
|
Commercial
|
20,842
|
20,922
|
(0.4)
|
(0.3)
|
||||||
|
Governmental
|
1,802
|
1,805
|
(0.2)
|
(0.4)
|
||||||
|
Industrial
|
26,402
|
29,217
|
(9.6)
|
(9.6)
|
||||||
|
Total
to Ultimate Customers
|
75,252
|
77,999
|
(3.5)
|
(3.5)
|
||||||
|
Wholesale
|
3,864
|
4,160
|
(7.1)
|
|||||||
|
Total
Sales
|
79,116
|
82,159
|
(3.7)
|
|||||||
|
September
30
|
|||||||||
|
2009
|
2008
|
%
Change
|
|||||||
|
Electric
Customers (End of period):
|
|||||||||
|
Residential
|
2,335,387
|
2,308,250
|
1.2
|
||||||
|
Commercial
|
330,922
|
328,070
|
0.9
|
||||||
|
Governmental
|
15,652
|
15,344
|
2.0
|
||||||
|
Industrial
|
47,647
|
49,199
|
(3.2)
|
||||||
|
Total
Ultimate Customers
|
2,729,608
|
2,700,863
|
1.1
|
||||||
|
Wholesale
|
29
|
29
|
-
|
||||||
|
Total
Customers
|
2,729,637
|
2,700,892
|
1.1
|
||||||