Attached files
| file | filename |
|---|---|
| 8-K - ENTERGY CORP /DE/ | a02310.htm |
| EX-99.1 - ENTERGY CORP /DE/ | a02310991.htm |
| EX-99.3 - ENTERGY CORP /DE/ | a02310993.htm |
Entergy
639
Loyola Avenue
New
Orleans, LA 70113
|
|
NewsRelease
|
|
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| Date: |
April
29, 2010
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| For Release: |
Immediately
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|
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Contact:
|
Michael
Burns (News Media)
(504)
576-4238
mburns@entergy.com
|
Michele
Lopiccolo (Investor Relations)
(504)
576-4879
mlopicc@entergy.com
|
Entergy
Reports First Quarter Earnings
New
Orleans, La. Entergy Corporation (NYSE:ETR) today reported first quarter 2010
as-reported earnings of $213.8 million, or $1.12 per share, compared with $235.3
million, or $1.20 per share, for first quarter 2009. On an operational basis,
Entergy’s first quarter 2010 earnings were $253.7 million, or $1.33 per share,
compared with $252.6 million, or $1.29 per share, in first quarter
2009.
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Consolidated
Earnings – Reconciliation of GAAP* to Non-GAAP Measures
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|||
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First
Quarter 2010 vs. 2009
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(Per
share in U.S. $)
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|||
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2010
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2009
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Change
|
|
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As-Reported
Earnings
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1.12
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1.20
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(0.08)
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|
Less
Special Items
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(0.21)
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(0.09)
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(0.12)
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|
Operational
Earnings
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1.33
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1.29
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0.04
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*GAAP
refers to United States generally accepted accounting principles.
Operational Earnings Highlights for
First Quarter
2010
|
·
|
Utility’s
results were higher due to higher net revenue driven by increased sales
volumes across all customer classes, including the effect of significantly
colder-than-normal weather.
|
|
·
|
Entergy
Nuclear’s earnings decreased as a result of lower net revenue resulting
primarily from lower pricing, higher non-fuel operation and maintenance
expense and a higher effective income tax
rate.
|
|
·
|
Parent
& Other’s results were higher due primarily to lower interest
expense.
|
“Results
for the quarter reflect an improving economy and its positive effects on our
utility business, and the continuing volatility in commodity markets and its
effect on our non-utility nuclear business,” said J. Wayne Leonard, Entergy’s chairman
and chief executive officer. “Looking forward, we will remain focused on
managing cash flows and operating within our risk capacity and stakeholders’
risk tolerance. We continue to believe our strategies drive long-term success
and sustainability.”
Other
Business Highlights
|
·
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The
Mississippi Public Service Commission approved revisions to Entergy
Mississippi’s formula rate plan positioning the company to timely recover
its business investments and bolstering its ability to provide safe,
affordable and reliable power to its
customers.
|
|
·
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Entergy
Texas achieved a unanimous settlement for an interim $17.5 million rate
increase effective May 1, 2010. The settlement also calls for a final rate
case order to be issued Nov. 1, 2010, with permanent rates to be effective
relating back to service rendered on/after Sept. 13,
2010.
|
|
·
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Entergy
was awarded the Edison Electric Institute Emergency Recovery Award for the
12th consecutive year for its work restoring power following a destructive
ice storm in Arkansas last year. Entergy is the only company to be honored
every year since the inception of the EEI awards in
1998.
|
Entergy
will host a teleconference to discuss this release at 10 a.m. CT on Thursday,
April 29, 2010, with access by telephone, 719-457-2080, confirmation code
3884569. The call and presentation slides can also be accessed via Entergy’s
website at www.entergy.com. A replay of the teleconference will be available
through May 6, 2010, by dialing 719-457-0820, confirmation code 3884569. The
replay will also be available on Entergy’s website at
www.entergy.com.
Utility
In first
quarter 2010, Utility’s as-reported and operational earnings were $138.6
million, or 73 cents per share, compared to $111.6 million, or 56 cents per
share, on the same bases in first quarter 2009. Earnings for the Utility in the
current quarter reflect higher net revenue due to increased sales across all
customer classes and rate adjustments at Entergy Gulf States Louisiana, Entergy
Louisiana and Entergy Mississippi under their formula rate plans. Significantly
colder-than-normal weather was a key contributor to the increase in sales
volume. Partially offsetting was higher non-fuel operation and maintenance
expense resulting primarily from higher pension and benefits expense, as well as
the absence of a nuclear insurance premium refund typically received from
Nuclear Electric Insurance Limited included in first quarter results. In
addition, higher interest expense associated with additional debt issuances
served as another partial offset to the positive effect of higher net revenue
during the quarter.
Residential
sales in first quarter 2010, on a weather-adjusted basis, increased 3.9 percent
compared to first quarter 2009. Commercial and governmental sales, on a
weather-adjusted basis, increased 3.2 percent year over year. Industrial sales
in the first quarter increased 7.3 percent compared to the same quarter of
2009.
Residential,
commercial and industrial classes reflected sales growth as a result of
increasing economic activity in Entergy’s service territory. The improvement in
industrial sales in first quarter 2010 was driven by economic recovery that had
a positive effect particularly in the chemicals, pulp and paper and primary
metals sectors partially offset by a decline in refining due to maintenance
outages. Small and mid-sized industrial customers began to also show signs of
recovery as they benefited from global industrial expansion. As noted above,
colder-than-normal weather provided a significant increase in sales
volume.
Entergy
Nuclear
Entergy
Nuclear earned $94.2 million, or 49 cents per share, on an as-reported basis in
first quarter 2010, compared to as-reported earnings of $180.9 million, or 91
cents per share, in first quarter 2009. On an operational basis, first quarter
2010 Entergy Nuclear’s earnings were $148.6 million, or 78 cents per share,
versus $187.5 million, or 95 cents per share, in the first quarter of the prior
year. Entergy Nuclear’s operational earnings decreased as a result of lower net
revenue due primarily to lower pricing. Contributing to the decrease in earnings
were higher non-fuel operation and maintenance expense due primarily to tritium
remediation work at the Vermont Yankee site, higher pension and benefits
expense, refueling amortization expense, and insurance expense. A higher
effective income tax rate also contributed to the decrease in results this
quarter driven primarily by the change in tax laws associated with recently
enacted federal health care legislation. Higher other income associated with
decommissioning trusts provided an offset to decreased earnings.
Parent
& Other
Parent
& Other reported a loss of $19.1 million, or 10 cents per share, on an
as-reported basis in first quarter 2010 compared to an as-reported loss of $57.2
million, or 27 cents per share, in first quarter 2009. On an operational basis,
Parent & Other reported a loss of $33.5 million, or 18 cents per share, in
the current quarter and a loss of $46.5 million, or 22 cents per share, in first
quarter 2009. Lower interest expense due to lower borrowings, including Parent
debt redemptions, was the primary factor that resulted in the change in
operational results at Parent & Other for the quarter.
Outlook
On April
15, 2010, Entergy revised its 2010 as-reported earnings guidance to a range of
$5.95 to $6.80 per share from $6.15 to $6.95 per share to reflect the potential
charge in connection with the previously announced business unwind of the
internal organizations created for Enexus and EquaGen. This charge will be
classified as a special item in 2010. The total potential charge estimated at 40
to 45 cents per share includes previously identified special items for spin-off
dis-synergies and expenses for outside services provided to pursue the spin-off,
for which 25 cents per share had already been reflected in as-reported earnings
guidance. Entergy has initiated efforts to eliminate spin-off dis-synergies as
soon as possible during 2010. On an operational basis, Entergy affirmed its
earnings per share guidance range of $6.40 to $7.20, which was based on the
current business structure and excluded the special items described
above.
Overarching
Financial Aspiration
Entergy
continues to aspire to deliver superior value to owners as measured by total
shareholder return. The company believes top-quartile total shareholder returns
are achieved by:
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·
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Operating
the business with the highest expectations and
standards,
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·
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Executing
on earnings growth opportunities while managing commodity and other
business risks,
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·
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Delivering
returns at or above the risk-adjusted cost of capital for each initiative,
project, business, etc.,
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·
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Maintaining
credit quality and flexibility,
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·
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Deploying
capital in a disciplined manner, whether for new investments, share
repurchases, dividends or debt retirements,
and
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·
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Being
disciplined as either a buyer or a seller consistent with the market or
Entergy’s proprietary
point-of-view.
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Long-term
Financial Outlook
Over the
next five years, Entergy believes it offers a competitive utility investment
opportunity combined with a valuable option represented by a unique, clean,
non-utility nuclear generation business located in attractive power markets. The
expected current long-term financial outlook includes the
following:
Earnings:
|
·
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Utility: 5
to 6 percent compound annual net income growth rate over the 2010 – 2014
horizon (2009 base year).
|
|
·
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Entergy
Nuclear: Revenue projections over the next five years are
expected to routinely fluctuate based on commodity markets – one of the
most important fundamental drivers for this business. While
current forward power prices would show a decline in the long-term
financial outlook for this business compared to 2010, Entergy Nuclear
offers a valuable option taking into consideration the contango forward
curve and the potential positive effects of an economic rebound (on market
heat rates, capacity markets and natural gas prices), new legislation
and/or regulation over the longer
term.
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|
·
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Corporate: Results
will vary depending upon factors including future effective income tax and
interest rates, the amount of share repurchases and the ability to achieve
the targeted break-even financial result for the non-nuclear wholesale
assets business.
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Capital
deployment:
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·
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A
balanced capital investment/return program. Entergy continues to see
productive investment opportunities at the Utility in the coming years, as
well as an investment outlook at Entergy Nuclear that supports continued
safe, secure and reliable operations and opportunistic investments.
Entergy aspires to fund this capital program without issuing traditional
common equity, while maintaining a competitive capital return program.
Given the company’s financial profile with a mix of utility and
non-utility businesses, return of capital is expected to be provided
similar to the past through a combination of common stock dividends and
share repurchases. Absent other attractive investment opportunities,
capital deployment through dividends and share repurchases could total as
much as $5 billion over the next five years under the current long-term
business outlook. The amount of share repurchases may vary as a result of
material changes in business results or capital spending or new investment
opportunities.
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Credit
quality:
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·
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Strong
liquidity.
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·
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Solid
credit metrics that support ready access to capital on reasonable
terms.
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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 $10 billion and
more than 15,000 employees.
Additional
information regarding Entergy’s quarterly results of operations, regulatory
proceedings and other operations is available in Entergy’s investor news release
dated April 29, 2010, 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 website 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
Entergy’s Form 10-K for the year ended December 31, 2009, and Entergy’s other
reports and filings made under the Securities Exchange Act of 1934, (b)
uncertainties associated with rate proceedings, formula rate plans and other
cost recovery mechanisms, (c) uncertainties associated with efforts to remediate
the effects of major storms and recover related restoration costs, (d) nuclear
operating and regulatory risks, and (e) legislative and regulatory actions, and
conditions in commodity and capital markets during the periods covered by the
forward-looking statements, in addition to other factors described elsewhere in
this release and in subsequent securities filings.
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
First
Quarter 2010 vs. 2009
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|||||
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(Per
share in U.S. $)
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|||||
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First Quarter
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|||||
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2010
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2009
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Change
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|||
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As-Reported
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|||||
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Utility
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0.73
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0.56
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0.17
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Entergy
Nuclear
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0.49
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0.91
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(0.42)
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Parent
& Other
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(0.10)
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(0.27)
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0.17
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Consolidated
As-Reported Earnings
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1.12
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1.20
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(0.08)
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||
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Less
Special Items
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|||||
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Utility
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-
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-
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-
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Entergy
Nuclear
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(0.29)
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(0.04)
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(0.25)
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Parent
& Other
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0.08
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(0.05)
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0.13
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Consolidated
Special Items
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(0.21)
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(0.09)
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(0.12)
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Operational
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|||||
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Utility
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0.73
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0.56
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0.17
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Entergy
Nuclear
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0.78
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0.95
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(0.17)
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Parent
& Other
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(0.18)
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(0.22)
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0.04
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||
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Consolidated
Operational Earnings
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1.33
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1.29
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0.04
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||
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Entergy
Corporation
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||||||||||||
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Consolidated
Income Statement
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||||||||||||
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Three
Months Ended March 31
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(in
thousands)
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||||||||||||
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2010
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2009
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%
Inc/(Dec)
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||||||||||
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(unaudited)
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||||||||||||
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Operating
Revenues:
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||||||||||||
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Electric
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$ | 2,006,931 | $ | 2,026,916 | (1.0 | ) | ||||||
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Natural
gas
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96,027 | 74,049 | 29.7 | |||||||||
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Competitive
businesses
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656,389 | 688,147 | (4.6 | ) | ||||||||
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Total
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2,759,347 | 2,789,112 | (1.1 | ) | ||||||||
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Operating
Expenses:
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||||||||||||
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Operation
and maintenance:
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||||||||||||
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Fuel,
fuel-related expenses, and gas purchased for resale
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558,668 | 846,332 | (34.0 | ) | ||||||||
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Purchased
power
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474,903 | 323,255 | 46.9 | |||||||||
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Nuclear
refueling outage expenses
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62,289 | 56,779 | 9.7 | |||||||||
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Other
operation and maintenance
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702,489 | 644,702 | 9.0 | |||||||||
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Decommissioning
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51,576 | 48,742 | 5.8 | |||||||||
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Taxes
other than income taxes
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135,412 | 134,397 | 0.8 | |||||||||
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Depreciation
and amortization
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269,204 | 257,852 | 4.4 | |||||||||
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Other
regulatory charges (credits) – net
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28,092 | (29,474 | ) | (195.3 | ) | |||||||
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Total
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2,282,633 | 2,282,585 | - | |||||||||
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Operating
Income
|
476,714 | 506,527 | (5.9 | ) | ||||||||
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Other
Income (Deductions):
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||||||||||||
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Allowance
for equity funds used during construction
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13,296 | 16,947 | (21.5 | ) | ||||||||
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Interest
and dividend income
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48,209 | 46,387 | 3.9 | |||||||||
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Other
than temporary impairment losses
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- | (15,737 | ) | - | ||||||||
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Miscellaneous
- net
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(522 | ) | (13,299 | ) | (96.1 | ) | ||||||
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Total
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60,983 | 34,298 | 77.8 | |||||||||
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Interest
and Other Charges:
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||||||||||||
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Interest
on long-term debt
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166,932 | 127,965 | 30.5 | |||||||||
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Other
interest - net
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12,267 | 19,293 | (36.4 | ) | ||||||||
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Allowance
for borrowed funds used during construction
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(8,001 | ) | (9,812 | ) | (18.5 | ) | ||||||
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Total
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171,198 | 137,446 | 24.6 | |||||||||
|
Income
Before Income Taxes
|
366,499 | 403,379 | (9.1 | ) | ||||||||
|
Income
Taxes
|
147,685 | 163,046 | (9.4 | ) | ||||||||
|
Consolidated
Net Income
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218,814 | 240,333 | (9.0 | ) | ||||||||
|
Preferred
Dividend Requirements of Subsidiaries
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5,015 | 4,998 | 0.3 | |||||||||
|
Net
Income Attributable to Entergy Corporation
|
$ | 213,799 | $ | 235,335 | (9.2 | ) | ||||||
|
Earnings
Per Average Common Share
|
||||||||||||
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Basic
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$ | 1.13 | $ | 1.22 | (7.4 | ) | ||||||
|
Diluted
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$ | 1.12 | $ | 1.20 | (6.7 | ) | ||||||
|
Average
Number of Common Shares Outstanding - Basic
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189,202,684 | 192,593,601 | ||||||||||
|
Average
Number of Common Shares Outstanding - Diluted
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191,283,703 | 198,058,002 | ||||||||||
|
Entergy
Corporation
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|||||||||
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Utility
Electric Energy Sales & Customers
|
|||||||||
|
Three
Months Ended March 31
|
|||||||||
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2010
|
2009
|
%
Change
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%
Weather-Adjusted
|
||||||
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(Millions
of KWh)
|
|||||||||
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Electric
Energy Sales:
|
|||||||||
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Residential
|
9,645
|
7,893
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22.2
|
3.9
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|||||
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Commercial
|
6,472
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6,194
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4.5
|
2.9
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|||||
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Governmental
|
592
|
562
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5.3
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6.5
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|||||
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Industrial
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8,733
|
8,139
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7.3
|
7.3
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|||||
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Total
to Ultimate Customers
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25,442
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22,788
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11.7
|
4.9
|
|||||
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Wholesale
|
1,317
|
1,387
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(5.0)
|
||||||
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Total
Sales
|
26,759
|
24,175
|
10.7
|
||||||
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March
31
|
|||||||||
|
2010
|
2009
|
%
Change
|
|||||||
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Electric
Customers (End of period):
|
|||||||||
|
Residential
|
2,348,838
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2,321,488
|
1.2
|
||||||
|
Commercial
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332,316
|
328,352
|
1.2
|
||||||
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Governmental
|
16,098
|
15,519
|
3.7
|
||||||
|
Industrial
|
38,782
|
38,892
|
(0.3)
|
||||||
|
Total
Ultimate Customers
|
2,736,034
|
2,704,251
|
1.2
|
||||||
|
Wholesale
|
28
|
33
|
(15.2)
|
||||||
|
Total
Customers
|
2,736,062
|
2,704,284
|
1.2
|
||||||