-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, A16yg4O67IyuDO1Xzo0yJ8RODdLRabRqqeUCNolx3gpQLXkBL7tAbqOJhGDHp5mG jPObhqybk60DNW+2dbUI4Q== /in/edgar/work/0000950129-00-005088/0000950129-00-005088.txt : 20001026 0000950129-00-005088.hdr.sgml : 20001026 ACCESSION NUMBER: 0000950129-00-005088 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20001025 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 20001025 FILER: COMPANY DATA: COMPANY CONFORMED NAME: RELIANT ENERGY INC CENTRAL INDEX KEY: 0000048732 STANDARD INDUSTRIAL CLASSIFICATION: [4911 ] IRS NUMBER: 740694415 STATE OF INCORPORATION: TX FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 001-03187 FILM NUMBER: 745175 BUSINESS ADDRESS: STREET 1: 1111 LOUISIANA CITY: HOUSTON STATE: TX ZIP: 77002 BUSINESS PHONE: 7132073000 MAIL ADDRESS: STREET 1: 611 WALKER CITY: HOUSTON STATE: TX ZIP: 77002 FORMER COMPANY: FORMER CONFORMED NAME: HOUSTON INDUSTRIES INC DATE OF NAME CHANGE: 19970807 FORMER COMPANY: FORMER CONFORMED NAME: HOUSTON LIGHTING & POWER CO DATE OF NAME CHANGE: 19920703 FILER: COMPANY DATA: COMPANY CONFORMED NAME: RELIANT ENERGY RESOURCES CORP CENTRAL INDEX KEY: 0001042773 STANDARD INDUSTRIAL CLASSIFICATION: [4911 ] IRS NUMBER: 760511406 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 001-13265 FILM NUMBER: 745176 BUSINESS ADDRESS: STREET 1: 1111 LOUISIANA ST CITY: HOUSTON STATE: TX ZIP: 77002 BUSINESS PHONE: 7132073000 FORMER COMPANY: FORMER CONFORMED NAME: NORAM ENERGY CORP/ DATE OF NAME CHANGE: 19970808 FORMER COMPANY: FORMER CONFORMED NAME: HI MERGER INC DATE OF NAME CHANGE: 19970721 8-K 1 h81157e8-k.txt RELIANT ENERGY, INCORPORATED DATED 10/25/2000 1 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of earliest event reported): OCTOBER 25, 2000 ------------- RELIANT ENERGY, INCORPORATED (Exact name of registrant as specified in its charter) TEXAS 1-3187 74-0694415 (State or other jurisdiction (Commission File Number) (IRS Employer of incorporation) Identification No.) 1111 LOUISIANA HOUSTON, TEXAS 77002 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (713) 207-3000 ------------- RELIANT ENERGY RESOURCES CORP. (Exact name of registrant as specified in its charter) DELAWARE 1-13265 76-0511406 (State or other jurisdiction (Commission File Number) (IRS Employer of incorporation) Identification No.) 1111 LOUISIANA HOUSTON, TEXAS 77002 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (713) 207-3000 ------------- 2 This combined current report on Form 8-K is separately filed by Reliant Energy, Incorporated (Reliant Energy) and Reliant Energy Resources Corp. (Resources Corp.). Information contained herein under "Natural Gas Distribution" and "Interstate Pipelines" and relating to gas sales and gathering volumes and wholesale power sales under "Wholesale Energy," which information relates to Resources Corp., is filed by Reliant Energy and separately by Resources Corp. on its own behalf. Resources Corp. makes no representation as to information relating to Reliant Energy (except as it may relate to Resources Corp.) and its subsidiaries, or any other affiliate of Reliant Energy. References herein to the businesses and operations of Reliant Energy include the businesses and operations of Reliant Energy's subsidiaries, including Resources Corp. ITEM 9. REGULATION FD DISCLOSURE. RELIANT ENERGY'S EARNINGS Reliant Energy reported third quarter earnings of $389 million, or $1.36 per basic share, compared to adjusted earnings of $283 million, or $.99 per basic share, for the third quarter of 1999. Strong performance from the company's unregulated domestic wholesale generation operations and increased customer growth and usage in its regulated electric service territory were the primary reasons for the increase in third quarter earnings. The company reported earnings for the third quarter of 1999 of $1.69 billion, or $5.92 per basic share. Reported earnings for this period included a $1.43 billion non-cash, unrealized accounting gain on indexed debt securities and an investment in Time Warner common stock, as well as a $19 million loss due to the devaluation of the Brazilian real. Reliant Energy's year-to-date adjusted earnings through September 30, 2000, were $738 million, or $2.59 per basic share, compared to adjusted earnings of $504 million, or $1.77 per basic share, for the same period of 1999. Reported earnings for the same period of 2000 were $746 million, or $2.62 per basic share, compared to reported earnings of $1.55 billion, or $5.45 per basic share, for 1999. A $7 million extraordinary gain from the early extinguishment of debt was included in reported earnings for 2000. For the same period of 1999, there was a non-cash, unrealized accounting gain on indexed debt securities and the investment in Time Warner common stock of $1.17 billion, as well as a $114 million loss due to the devaluation of the Brazilian real. For additional information regarding Reliant Energy's third quarter earnings, please refer to Reliant Energy's press release filed with this current report as Exhibit 99.1, which press release is incorporated herein by reference. 2 3 2000 RESULTS* (MILLIONS OF DOLLARS, EXCEPT PER SHARE AMOUNTS)
Quarter Ended Year to Date September 30, September 30, --------------------- ------------------------ EARNINGS 2000 1999 2000 1999 - -------- --------- --------- ----------- --------- Net Income, As Reported $ 389 $ 1,690 $ 746 $ 1,555 Devaluation of the Brazilian Real -- 19 -- 114 Net Unrealized Gain on Indexed Debt Securities & Time Warner Investment -- (1,426) -- (1,166) Extraordinary Gain -- (7) -- Adjusted Earnings 389 283 738 504 EARNINGS PER BASIC SHARE Earnings Per Basic Share, As Reported 1.36 5.92 2.62 5.45 Devaluation of the Brazilian Real -- .07 -- .40 Net Unrealized Gain on Indexed Debt Securities & Time Warner Investment -- (5.00) -- (4.09) Extraordinary Gain -- -- (.03) -- Basic EPS, Adjusted 1.36 0.99 2.59 1.77 Weighted Average Basic Shares (000)** 285,183 285,287 284,170 285,247
* Immaterial rounding differences exist in this summarized schedule. ** On September 30, 2000, Reliant Energy had 285,862,004 shares of common stock outstanding for financial reporting purposes. 3 4 OPERATING INCOME (LOSS) BY SEGMENT
Three Months Ended Year to Date (In millions) September 30, September 30, 2000 1999 2000 1999 ----------------------- ---------------------- Electric Operations $ 500 $ 442 $ 1,027 $ 837 Wholesale Energy 319 43 481 53 Natural Gas Distribution (15) (5) 82 101 Interstate Pipelines 28 29 84 84 Reliant Energy Europe 15 -- 72 -- Reliant Energy Latin America -- 10 (16) (53) Corporate (70) (25) (112) (49) --------- --------- --------- --------- Total Operating Income $ 777 $ 494 $ 1,618 $ 973 ========= ========= ========= =========
ELECTRIC OPERATIONS Operations Data
Three Months Ended Year to Date GWh Sales September 30, September 30, --------------------- Percent --------------------- Percent 2000 1999 Change 2000 1999 Change --------- --------- --------- --------- --------- -------- Residential 8,534 7,744 10% 17,967 16,895 6% Commercial 5,291 4,982 6% 13,526 12,790 6% Industrial - Firm 6,847 6,782 1% 21,132 19,584 8% Industrial - Interruptible 1,550 1,817 (15%) 4,232 4,420 (4%) Other (1) 381 551 (31%) 1,407 2,220 (37%) --------- --------- --------- --------- Total 22,603 21,876 3% 58,264 55,909 4% ========= ========= ========= =========
(1) Includes municipals, public utilities, off-system and ancillary services sales. Reliant Energy HL&P's operating income for the third quarter of 2000 was $500 million compared to $442 million for the 1999 period. The increase was due to continued strong non-fuel revenue growth ($61 million), favorable weather comparison ($12 million) and a decrease in depreciation and amortization expense ($25 million). The increase was partially offset by higher franchise taxes ($12 million), increased operations and maintenance expenses ($8 million) and additional transmission cost of service ($10 million). Reliant Energy HL&P amortized $135 million of the impairment of its electric plant during the third quarter of 2000. Weather during the quarter was warmer than normal ($51 million). 4 5 Reliant Energy HL&P's operating income increased 23% for the nine months ended September 30, 2000 compared to the same period in 1999. The increase of $190 million was primarily attributed to a decrease in depreciation and amortization expense ($121 million), strong non-fuel revenue growth ($115 million) and favorable weather comparison ($26 million). These were partially offset by additional transmission cost of service ($30 million), increased operations and maintenance expenses ($17 million) and increased franchise taxes ($17 million). Reliant Energy HL&P amortized $282 million of the impairment of its electric plant during the first nine months of 2000. For the year, weather was warmer than normal ($73 million). Reliant Energy HL&P's business separation plan that was filed with the Public Utility Commission of Texas is scheduled for hearing on November 8, 2000. The company believes an approval of the business separation plan may be received by December 1, 2000 as originally requested, and continues to work with interested parties toward a possible settlement. WHOLESALE ENERGY Operations Data
Three Months Ended Year to Date September 30, September 30, --------------------- Percent --------------------- Percent 2000 1999 Change 2000 1999 Change --------- --------- --------- --------- --------- --------- Natural Gas Sales Volumes (Bcf) 645 433 49% 1,769 1,317 34% Gathering Volumes (Bcf) 72 69 4% 213 198 8% --------- --------- --------- --------- Total (Bcf) 717 502 43% 1,982 1,515 31% Wholesale Power Sales (GWh) 59,647 43,856 36% 117,705 77,624 52% Unregulated Power Generation: Capacity and Energy Sales (GWh) 9,082 3,079 195% 15,916 4,965 221%
Operating income was $319 million for the third quarter of 2000, compared to $43 million for the same period in 1999. The largest single contributor to the increase was the addition of the Mid-Atlantic assets, which provided about half of the increased earnings. Improvements also came from the expansion of commercial assets and trading in the Southwest, Midwest and Florida regions. Additionally, unique seasonal dynamics in the Western markets resulted in higher energy sales and energy prices. The increased year over year third quarter performance for assets we owned and operated in the Southwest region accounted for about one third of our increased operating income. Increases in operating margins were partially offset by higher operating expenses to support the infrastructure of the expanding wholesale business. 5 6 NATURAL GAS DISTRIBUTION Operation Data in Bcf
Three Months Ended Year to Date September 30, September 30, --------------------- Percent --------------------- Percent 2000 1999 Change 2000 1999 Change --------- --------- --------- --------- --------- --------- Residential & Commercial Sales 33.9 32.7 4% 199.8 199.7 -- Industrial Sales 12.2 12.9 (5)% 37.8 39.8 (5)% Transportation 11.0 10.5 5% 37.6 34.0 11% Retail Major Accounts Sales 101.6 72.7 40% 279.7 230.6 21% --------- --------- --------- --------- Total Throughput 158.7 128.8 23% 554.9 504.1 10% ========= ========= ========= =========
Three Months Ended Year to Date September 30, September 30, --------------------- Percent --------------------- Percent 2000 1999 Change 2000 1999 Change --------- --------- --------- --------- --------- --------- Heating Degree Days Actual 192 194 (1)% 6,282 6,408 (2)% Normal 200 200 -- 7,561 7,561 -- Percent Change to Normal (4)% (3)% (17)% (15)%
The Natural Gas Distribution companies reported an operating loss of $15 million for the third quarter of 2000. This compares to an operating loss of $5 million for the same period of 1999. The primary reasons for the decline were increased expenses including employee benefits, information technology and depreciation. INTERSTATE PIPELINES Operations Data (million MMBtu)
Three Months Ended Year to Date September 30, September 30, --------------------- Percent --------------------- Percent 2000 1999 Change 2000 1999 Change --------- --------- --------- --------- --------- --------- Total Throughput 182 201 (9)% 655 637 3%
Operating income from the Interstate Pipelines segment was $28 million for the third quarter of 2000 compared to operating income of $29 million in the third quarter of 1999. Interstate Pipelines' operating income for the nine months ended September 30, 2000 was $84 million compared to $84 million for the same period in 1999. 6 7 RELIANT ENERGY EUROPE The Reliant Energy Europe segment includes N.V. UNA (UNA) and European wholesale energy trading and marketing start-up operations. The company established this business segment in the fourth quarter of 1999. The Reliant Energy Europe segment reported operating income of $15 million for the third quarter of 2000 and $72 million for the nine months ended September 30, 2000. The company's marketing activities in Europe have resulted in forward power sales representing approximately 50% of our 13.5 Twh capability to date. As market conditions permit, the company will continue such sales. In October the Dutch government said it would purchase TenneT BV, the owner of the Dutch high voltage electricity grid, for 2.55 billion guilders. This is an important step toward dissolving SEP, the Electricity Governing Board, owned by the four generation companies. In addition, UNA will receive an allocation (22.5%) of above market gas and power contracts (stranded costs). The agreement has been reached with the Ministry of Economic Affairs and is subject to approvals from Parliament and the European Union. The liability associated with the stranded cost allocation for UNA is expected to be well within the indemnification provided by UNA's former shareholders to Reliant Energy. RELIANT ENERGY LATIN AMERICA The Reliant Energy Latin America segment did not contribute operating income for the third quarter of 2000 due primarily to decreased equity earnings from its investments in Brazil and Colombia. After adjusting for the devaluation of the Brazilian real, operating income from this segment for the third quarter of 1999 was $29 million. In October, the company sold its interest in El Salvador Energy Holdings to a subsidiary of AES Corporation and signed an agreement to sell its interest in Light Servicos de Eletricidade S.A. (Light) to AES and EDF International S.A. The sale of Light is expected to close by the end of the year. In addition, the Company has entered into agreements to transfer its Colombian interests to Union Fenosa Desarrollo y Accion Exterior, S.A. of Spain. The transfer is expected to be completed by the end of the year. The aggregate net proceeds from the closed and pending transactions are expected to be approximately $800 million, with a book loss of approximately $250 million. 7 8 CORPORATE Reliant Energy's corporate segment, which includes a portion of its unregulated retail electric and gas operations, its communications business, eBusiness group and corporate costs, had an operating loss of $70 million for the third quarter of 2000, compared to an operating loss of $25 million for the same period last year. The decrease was due to expenses incurred in preparing for retail competition in Texas beginning January 2002, costs associated with exiting certain retail gas markets and eBusiness and communications startup costs. OUTLOOK The company believes that currently published estimates of adjusted earnings for 2000, which are from $2.85 to $2.95 per share, establish a reasonable range. Given unique market circumstances that positively impacted earnings in 2000, the company expects results for 2001 to be in line with this year. These results, of course, are subject to the influence of a number of factors, such as pricing margins in key markets, weather, movements of the Euro against the U.S. dollar and other conditions related to building the unregulated businesses. This current report includes forward-looking statements, estimates and projections. Actual events and results may differ materially from those projected. Factors that could affect actual results include future regulatory and legislative decisions, weather, risks associated with international operations, the timetable for closing announced acquisitions, the success in integrating acquired operations, changes in Reliant Energy's business plans and other factors discussed in the company's other filings with the Securities and Exchange Commission. ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS. (c) Exhibits. The following exhibit is filed herewith: 99.1 Press Release issued October 25, 2000 8 9 SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. RELIANT ENERGY, INCORPORATED Date: October 25, 2000 By: /s/ MARY P. RICCIARDELLO Mary P. Ricciardello Senior Vice President and Chief Accounting Officer 10 SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. RELIANT ENERGY RESOURCES CORP. Date: October 25, 2000 By: /s/ MARY P. RICCIARDELLO Mary P. Ricciardello Senior Vice President 11 EXHIBIT INDEX
Exhibit Number Exhibit Description ------- ------------------- 99.1 Press Release issued October 25, 2000
EX-99.1 2 h81157ex99-1.txt PRESS RELEASE ISSUED 10/25/2000 1 EXHIBIT 99.1 FOR FURTHER INFORMATION: Sandy Fruhman, Media (713) 207-3123 Randy Burkhalter, Investors (713) 207-3115 FOR IMMEDIATE RELEASE: October 25, 2000 RELIANT ENERGY REPORTS STRONG THIRD-QUARTER EARNINGS HOUSTON, TX. - Reliant Energy reported third-quarter earnings of $389 million, or $1.36 per basic share, a 37 percent increase compared to adjusted earnings of $283 million, or $.99 per basic share, for the third quarter of 1999. Strong performance from the company's unregulated domestic wholesale generation operations and increased customer growth and usage in its regulated electric service territory were the primary reasons for the substantial increase in third-quarter earnings. "Our strong commercial management of generating assets and commercial gas and power positions in attractive regions of the U.S. has allowed us to break out of the traditional role of a local energy provider. As markets evolve, we will continue to build business positions that capitalize on these strengths," said Steve Letbetter, chairman, president and chief executive officer of Reliant Energy. Year-to-date adjusted earnings through September 30, 2000, were $738 million, or $2.59 per basic share, compared to adjusted earnings of $504 million, or $1.77 per basic share, for the same period of 1999. 2 SELECTED OPERATING INCOME DETAILED ELECTRIC OPERATIONS Reliant Energy HL&P's operating income for the third quarter of 2000 was $500 million, compared to $442 million for the same period of 1999. Increased customer demand in the Houston metropolitan area and lower depreciation and amortization expense were the major reasons for the rise. Firm kilowatt-hour sales for the third quarter of 2000 increased approximately 5 percent over the same period of 1999. Reliant Energy HL&P has added more than 47,000 customers in its service territory in the last twelve months. WHOLESALE ENERGY The company's wholesale energy group, which includes unregulated power generation and gas and power trading and marketing activities in North America, reported third-quarter operating income of $319 million in 2000, compared to $43 million for the same period of 1999. Gross margins increased by $372 million over margins for the same period of last year. The improved performance was primarily due to the expansion of commercial assets and trading in several regions, as well as higher energy sales and energy prices due to unique seasonal dynamics in the Western markets. Increased operating margins were partially offset by higher operating expenses to support the infrastructure of the expanding wholesale business. 3 NATURAL GAS DISTRIBUTION Reliant Energy's three natural gas distribution companies reported an operating loss of $15 million for the third quarter of 2000. This compares to an operating loss of $5 million for the same period of 1999. The primary reasons for the decline were increased expenses including employee benefits, information technology and depreciation. RELIANT ENERGY EUROPE Reliant Energy Europe contributed operating income of $15 million for the third quarter of 2000. The company established this business segment, which consists of its European electric power generation and wholesale energy trading and marketing operations, in the fourth quarter of 1999. RELIANT ENERGY LATIN AMERICA The Reliant Energy Latin America segment did not contribute operating income for the third quarter of 2000 due primarily to decreased equity earnings from its investments in Brazil and Colombia. Operating income from this segment for the third quarter of 1999 was $10 million. CORPORATE AND OTHER Reliant Energy's corporate segment, which includes a portion of its unregulated retail electric and gas operations, its communications business, eBusiness group and corporate costs, had an operating loss of $70 million for the third quarter of 2000, compared to an operating loss of $25 million for the same period last year. This increased loss was due to expenses incurred in 4 preparing for retail electric competition in Texas beginning January 2002, costs associated with exiting certain retail gas markets, and eBusiness and communications start-up costs. REPORTED EARNINGS Reliant Energy's reported earnings for the third quarter of 2000 were $389 million, or $1.36 per basic share, compared to reported earnings of $1.69 billion, or $5.92 per basic share, for the same period of 1999. Third-quarter earnings for 1999 include a $1.43 billion non-cash, unrealized accounting gain on indexed debt securities and the company's investment in Time Warner common stock, as well as a $19 million loss due to the devaluation of the Brazilian real. Year-to-date reported earnings through September 30, 2000, were $746 million, or $2.62 per basic share, compared to earnings of $1.55 billion, or $5.45 per basic share, for the same period of 1999. Year-to-date reported earnings for 2000 include a $7 million extraordinary gain from the early extinguishment of debt. For the same period of 1999, there was a non-cash, unrealized accounting gain on indexed debt securities and the company's investment in Time Warner common stock of $1.17 billion, as well as a $114 million loss due to the devaluation of the Brazilian real. EARNINGS CONFERENCE CALL Reliant Energy has scheduled its third-quarter 2000 earnings conference call for Wednesday, October 25, 2000, at 10 a.m. central daylight time. Interested parties may listen to a live audio broadcast of the conference call at www.reliantenergy.com/investing. Parties may also listen to an online replay that will follow within two hours after completion of the call. 5 The webcast requires listeners to have a multimedia computer with speakers and RealPlayer installed. Please visit the website at least 15 minutes before the scheduled broadcast to register for the event and go through the Pre-event System Test, which will allow individuals to download and install any necessary audio software. FORM 8-K For further details related to the third-quarter 2000 earnings release, refer to the company's current report on form 8-K, which was filed today with the Securities and Exchange Commission. Reliant Energy (NYSE: REI), based in Houston, Texas, is an international energy services and energy delivery company with approximately $20 billion in annual revenue and assets totaling more than $28 billion. The company has a wholesale energy trading and marketing business that ranks among the top five in the U.S. in combined electricity and natural gas volumes and has a presence in most of the major power regions of the U.S. It also has power generation and wholesale trading and marketing operations in Western Europe. The company has nearly 27,000 megawatts of power generation in operation in the U.S. and Western Europe and has announced acquisitions and development projects that will add nearly 4,000 megawatts. Reliant Energy also has marketing and distribution operations serving nearly four million electricity and natural gas customers in the U.S., interests in power distribution operations in Latin America, and a communications business serving the Houston area. * * * * 6 This news release includes forward-looking statements. Actual events and results may differ materially from those projected. Factors that could affect actual results include the timing and impact of future regulatory and legislative decisions, changes in Reliant Energy's business plans, financial market conditions and other factors discussed in Reliant Energy's filings with the Securities and Exchange Commission. 7 Reliant Energy, Incorporated and Subsidiaries Statements of Consolidated Income (Thousands of Dollars) (Unaudited)
Quarter Ended Nine Months Ended September 30, September 30, ---------------------------- ---------------------------- 2000 1999 2000 1999 ------------ ------------ ------------ ------------ Revenues: Electric Operations $ 1,827,027 $ 1,496,596 $ 4,195,248 $ 3,513,144 Wholesale Energy 6,775,735 2,908,119 12,411,075 5,854,052 Natural Gas Distribution 771,588 500,432 2,406,621 1,780,887 Interstate Pipelines 70,295 70,024 223,519 202,246 Reliant Energy Europe 129,302 -- 415,306 -- Reliant Energy Latin America 20,971 34,126 51,355 26,273 Other 80,046 46,443 300,225 180,616 Eliminations (152,237) (108,548) (482,033) (309,294) ------------ ------------ ------------ ------------ Total Revenues 9,522,727 4,947,192 19,521,316 11,247,924 ------------ ------------ ------------ ------------ Expenses: Fuel and cost of gas sold 3,901,470 1,564,652 9,176,654 4,634,247 Purchased power 3,808,783 2,062,679 6,001,305 3,315,667 Operation and maintenance 595,423 454,587 1,641,063 1,278,798 Taxes other than income taxes 144,898 113,643 372,124 340,800 Depreciation and amortization 295,174 257,343 712,644 705,337 ------------ ------------ ------------ ------------ Total 8,745,748 4,452,904 17,903,790 10,274,849 ------------ ------------ ------------ ------------ Operating Income 776,979 494,288 1,617,526 973,075 ------------ ------------ ------------ ------------ Other Income (Expense): Unrealized gain on Time Warner investment 40,000 1,816,105 242,928 1,816,105 Unrealized (loss) gain on indexed debt securities (40,000) 406,717 (242,870) 6,778 Other - net 37,762 12,667 87,334 38,695 ------------ ------------ ------------ ------------ Total 37,762 2,235,489 87,392 1,861,578 ------------ ------------ ------------ ------------ Interest and Other Charges: Interest 186,289 116,176 536,780 368,759 Distribution on trust preferred securities 13,754 14,652 40,458 38,433 ------------ ------------ ------------ ------------ Total 200,043 130,828 577,238 407,192 ------------ ------------ ------------ ------------ Income Before Income Taxes, Extraordinary Item and Preferred Dividends 614,698 2,598,949 1,127,680 2,427,461 Income Tax Expense 225,635 908,862 388,978 872,304 ------------ ------------ ------------ ------------ Income Before Extraordinary Item and Preferred Dividends 389,063 1,690,087 738,702 1,555,157 Extraordinary Item, net of tax -- -- 7,445 -- ------------ ------------ ------------ ------------ Income Before Preferred Dividends 389,063 1,690,087 746,147 1,555,157 Preferred Dividends 97 97 292 292 ------------ ------------ ------------ ------------ Net Income Attributable to Common Stockholders $ 388,966 $ 1,689,990 $ 745,855 $ 1,554,865 ============ ============ ============ ============
Reference is made to the Notes to the Consolidated Financial Statements contained in the Annual Report of Reliant Energy, Incorporated. The information furnished is given in response to your request for information concerning Reliant Energy, Incorporated and not in connection with any sale or offer for sale of, or solicitation of an offer to buy, any securities. 8 Reliant Energy, Incorporated Selected Data From Statements of Consolidated Income (Thousands of Dollars, Except Per Share Amounts) (Unaudited)
Quarter Ended Nine Months Ended September 30, September 30, -------------------------- -------------------------- 2000 1999 2000 1999 ----------- ----------- ----------- ----------- AS REPORTED: Basic Earnings Per Common Share Extraordinary Item, net of tax $ -- $ -- $ 0.03 $ -- Net Income Attributable to Common Stockholders $ 1.36 $ 5.92 $ 2.62 $ 5.45 Diluted Earnings Per Common Share Extraordinary Item, net of tax $ -- $ -- $ 0.03 $ -- Net Income Attributable to Common Stockholders $ 1.34 $ 5.90 $ 2.60 $ 5.43 Dividends per Common Share $ 0.375 $ 0.375 $ 1.125 $ 1.125 Weighted Average Common Shares Outstanding (000): - Basic 285,183 285,287 284,170 285,247 - Diluted 289,599 286,414 286,828 286,537 AS ADJUSTED FOR UNUSUAL AND OTHER CHARGES: Net Income Attributable to Common Stockholders $ 388,966 $ 1,689,990 $ 745,855 $ 1,554,865 Unusual and other charges, after tax: Extraordinary item -- -- (7,445) -- Net unrealized gain on indexed debt securities and Time Warner investment -- (1,425,700) -- (1,165,740) Brazilian devaluation -- 18,968 -- 114,441 ----------- ----------- ----------- ----------- Adjusted Earnings $ 388,966 $ 283,258 $ 738,410 $ 503,566 =========== =========== =========== =========== Adjusted Basic Earnings Per Common Share $ 1.36 $ 0.99 $ 2.59 $ 1.77 Adjusted Diluted Earnings Per Common Share $ 1.34 $ 0.99 $ 2.57 $ 1.76 OPERATING INCOME (LOSS) BY SEGMENT (IN MILLIONS) Electric Operations $ 500 $ 442 $ 1,027 $ 837 Wholesale Energy 319 43 481 53 Natural Gas Distribution (15) (5) 82 101 Interstate Pipelines 28 29 84 84 Reliant Energy Europe 15 -- 72 -- Reliant Energy Latin America -- 10 (16) (53) Corporate (70) (25) (112) (49) ----------- ----------- ----------- ----------- Total $ 777 $ 494 $ 1,618 $ 973 =========== =========== =========== ===========
FOR ADDITIONAL INFORMATION PLEASE CONTACT: Randy Burkhalter (713) 207-3115 Dennis Barber (713) 207-3042 -----END PRIVACY-ENHANCED MESSAGE-----