-----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, GYz8KoASReH/xJTrPFyvOEIKYEe3YcAJ67LxvLlkg6Nuquk20N3Rnvc9vLSn5Yya 3XoZutVSZtjYrjvsIzBm2g== 0000065984-00-000057.txt : 20000502 0000065984-00-000057.hdr.sgml : 20000502 ACCESSION NUMBER: 0000065984-00-000057 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 20000424 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 20000501 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ENTERGY CORP /DE/ CENTRAL INDEX KEY: 0000065984 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC SERVICES [4911] IRS NUMBER: 721229752 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 001-11299 FILM NUMBER: 614157 BUSINESS ADDRESS: STREET 1: 639 LOYOLA AVE CITY: NEW ORLEANS STATE: LA ZIP: 70113 BUSINESS PHONE: 5045295262 MAIL ADDRESS: STREET 1: PO BOX 61000 CITY: NEW ORLEANS STATE: LA ZIP: 70161 FORMER COMPANY: FORMER CONFORMED NAME: ENTERGY GSU HOLDINGS INC /DE/ DATE OF NAME CHANGE: 19940329 FORMER COMPANY: FORMER CONFORMED NAME: ENTERGY CORP /FL/ DATE OF NAME CHANGE: 19940329 FORMER COMPANY: FORMER CONFORMED NAME: MIDDLE SOUTH UTILITIES INC DATE OF NAME CHANGE: 19890521 8-K 1 I:\EDGAR\PENDING\07200.doc 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 earliest event reported) April 24, 2000 Commission Registrant, State of Incorporation, I.R.S. File Number Address and Telephone Number Employer Identifica tion No. 1-11299 ENTERGY CORPORATION 13-5550175 (a Delaware corporation) 639 Loyola Avenue New Orleans, Louisiana 70113 Telephone (504) 576-4000 Form 8-K Item 5. Other Events On April 24, 2000, Entergy Corporation ("Entergy") issued several public announcements, which are attached as exhibits hereto and incorporated herein by reference. Item 7. Financial Statements, Pro Forma Financial Statements and Exhibits (c) Exhibits. Exhibit Description No. 99.1 Release, dated April 24, 2000, issued by Entergy. 99.2 Release, dated April 24, 2000, issued by Entergy. 99.3 Release, dated April 24, 2000, issued by Entergy. 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. Entergy Corporation By: /s/ Michael G. Thompson Michael G. Thompson Senior Vice President, General Counsel and Secretary Dated: April 28, 2000 EX-99 2 Exhibit 99.1 [Letterhead of Entergy] [Letterhead of KOCH Industries Inc.] NEWS RELEASE Date: April 24, 2000 For Release: Immediate Contacts: Kelle Barfield (News Media) Mary Beth Jarvis Entergy Corp. Koch Industries, Inc. 501-576-2547 316-828-3756 e-mail: kbarfie@entergy.com e-mail: jarvism@kochind.com Renae Conley (Investor Relations) Entergy Corp. 504-576-4947 e-mail: econley@entergy.com Entergy, Koch Industries Contributing Key Energy Businesses To Create Top-Tier Energy Company Houston - Entergy Corporation (NYSE: ETR) and privately held Koch Industries, Inc. today announced plans to form Entergy-Koch L.P., a new company that would be one of the leading energy companies in North America and Europe. Entergy-Koch L.P. will deliver, market and trade power, natural gas and other energy-related commodities, including weather derivatives, through wholly owned subsidiaries, including a pipeline company, which will operate the interstate natural gas pipeline system now called Koch Gateway. Entergy-Koch L.P. will be among the nation's top ten energy commodity traders, in terms of combined volumes of electricity and natural gas traded. The new company will have total assets of approximately $1 billion, including the 10,000-mile Koch Gateway Pipeline, one of the largest natural gas transmission systems in the Gulf South, and the Bisteneau gas storage facility. The new company will be the first venture between Koch, one of the nation's most successful energy traders, and Entergy, the third-largest U.S. generator of electric power and the nation's largest natural gas-fired generating fleet. The attributes of Entergy-Koch L.P., which will have its asset base in the Gulf South and a trading presence in North America and Europe, clearly set it apart from its competitors. (more) Entergy, Koch Creating Top-Tier Energy Company April 24, 2000 Page 2 of 4 In addition to the Koch Gateway Pipeline Company interstate pipeline system and related storage assets, Koch Industries will also contribute the capabilities of its affiliate Koch Energy Trading, which markets and trades gas, power and weather derivatives. Entergy will contribute to the venture its power marketing and trading businesses - consisting of Entergy Power Marketing Corporation in the United States, and Entergy Trading and Marketing in Europe - and also cash. Entergy estimates this cash contribution at approximately $350 million, $150 million of which would be funded with equity and $200 million with debt. "The complementary strengths being contributed by Entergy and Koch - in natural gas and in the marketing and trading of power and other energy commodities - bring a unique set of resources to the new company," said J. Wayne Leonard, Entergy's chief executive officer. "Entergy-Koch will have the assets and the scale to compete and grow. It will trade volumes in excess of 100 million MWh of electricity annually and 5 Bcf of gas daily - - a scale that is generally recognized as necessary for ongoing profitability. For Entergy, the new company will not only contribute to our earnings growth on its own but will offer risk- management tools to our existing businesses." "This innovative new company promises to add value for all energy customers," said Joe Moeller, president of Koch Industries. "Entergy-Koch would offer customers a variety of services to mitigate risk, helping them minimize potential volatility in the marketplace as deregulation continues to transform the gas and electric power industries. Entergy's trading groups bring significant capabilities in physical power markets in North America and Europe that would be key to the success of the venture. We're pleased to be working with Entergy and are enthusiastic about furthering our vision for building a world-class energy marketing and trading company." Benefits to Member Companies Entergy-Koch L.P. will benefit from Koch Energy Trading's leading position in energy commodities markets, including weather derivatives, and from Koch Energy Trading's highly disciplined commodity trading controls, policies, procedures, systems and infrastructure. The new company will also benefit from Entergy's capabilities in domestic and international power marketing and trading. Entergy-Koch L.P. will be able to provide customers a broad range of commodity sources and options, including gas, oil, coal and power, weather derivatives and additional risk management tools. (more) Entergy, Koch Creating Top-Tier Energy Company April 24, 2000 Page 3 of 4 Entergy-Koch L.P. will also market the power and provide risk management and trading services for Entergy's existing and future merchant plants. Entergy will retain its growing merchant generation fleet, enabling it to establish a singular focus on developing profitable merchant plants, while benefiting from its relationship with Entergy-Koch's skilled trading and risk management team. Entergy Corp. is expecting the venture to contribute $0.25 to $0.30 to its earnings in the venture's first full year of operation. The expanded scope and resources of the new venture are expected to create additional growth opportunities for weather derivatives - financial instruments designed to enable utilities and other businesses to hedge their risks of cost or sales volume fluctuations associated with temperature changes. Koch Energy Trading is now a market leader in that area, currently accounting for about 30 percent of such trades. Management, Governance and Location Entergy-Koch L.P. will be headed by Kyle Vann, currently senior vice president, Koch Industries, Inc. Kyle has a broad range of leadership experience in the energy industry, including leadership roles as diverse as refinery management, products trading, oil field services, and economic and acquisitions management. Mr. Vann joined Koch in 1979 and currently leads the company's power, gas and gas liquids businesses, including management of these highly successful marketing and trading businesses and related assets. An eight-member Board of Directors - four each from Koch and Entergy, will govern Entergy-Koch L.P. Entergy Corporation's board chairman, Robert v.d. Luft, would also be the chairman of the board of Entergy-Koch L.P. In addition to Luft, Entergy's board members would include Wayne Leonard, Entergy's CEO, Don Hintz, Entergy's president, and John Wilder, Entergy's CFO. Koch's board members would include Charles Koch, Koch Industries' chairman and CEO, Joe Moeller, Koch Industries' president and COO, Bill Hanna, Koch Industries' vice chairman, and Sam Soliman, Koch Industries' incoming CFO. The venture will be headquartered in Houston. Required Approvals The formation of the new company is subject to completion of some final documentation, and the venture will require board (more) Entergy, Koch Creating Top-Tier Energy Company April 24, 2000 Page 4 of 4 approvals. Creation of the new company will also require approval by the Federal Energy Regulatory Commission and the Securities and Exchange Commission. It is anticipated that the regulatory approval process will take approximately six to nine months. Background on Members Entergy owns, manages or invests in power plants generating nearly 30,000 megawatts of electricity domestically and internationally and delivers electricity to about 2.5 million customers in portions of Arkansas, Louisiana, Mississippi and Texas. Entergy is a major global energy company engaged in power production, distribution operations, and related diversified services, with more than 12,000 employees. It is also a leading provider of wholesale energy marketing and trading services. The Entergy futures contract on the New York Mercantile Exchange (NYMEX) is one of the largest electricity trading points in the United States. Koch Industries, Inc., through its subsidiaries, employs approximately 12,000 people worldwide and is involved in virtually all phases of the oil and gas industry, as well as in chemicals, plastics, energy services, chemical and environmental technology products, asphalt products, metals and mineral services, ranching, financial services, and ventures. Entergy's Web site can be found at www.entergy.com. For more information on Koch, refer to www.kochind.com. -- 30-- The following constitutes a "Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995: Investors are cautioned that forward-looking statements contained in the foregoing release with respect to the revenues, earnings, performance, strategies, prospects and other aspects of the business of Entergy Corporation may involve risks and uncertainties. A number of factors could cause actual results or outcomes to differ materially from those indicated by such forward-looking statements. These factors include, but are not limited to, risks and uncertainties relating to: the effects of weather, the performance of generating units and transmission systems, the possession of nuclear materials, fuel prices and availability, the effects of regulatory decisions and changes in law, litigation, capital spending requirements, the onset of competition, advances in technology, changes in accounting standards, corporate restructuring and changes in capital structure, movements in the markets for electricity and other energy-related commodities, changes in interest rates and in financial and foreign currency markets generally, changes in corporate strategies, and other factors. EX-99 3 Exhibit 99.2 [Letterhead of Entergy] News Release Date: April 24, 2000 For release: Immediate News Media: Kelle Barfield 504-576-2547 kbarfie@entergy.com Investor Relations: Renae Conley 504-576-4947 econley@entergy.com ENTERGY REPORTS RECORD FIRST QUARTER LED BY COMPETITIVE BUSINESSES NEW ORLEANS - Entergy Corporation (NYSE:ETR) today reported first quarter 2000 consolidated earnings that were 59 percent higher than a year ago. Earnings per share from operations set a first quarter record for the company and were up 129 percent over the same period in 1999. Entergy's first quarter 2000 earnings were $98.9 million, or 42 cents per share, compared with earnings of $62.2 million, or 25 cents per share, in first quarter 1999. On an operational basis, Entergy earnings were $114.2 million, or 48 cents per share, in first quarter 2000, compared with $52.4 million, or 21 cents per share, in first quarter 1999. Weather had an equally unfavorable impact on earnings in both quarters, reducing earnings by 8 cents per share in each period. Entergy's competitive businesses contributed to higher earnings, along with improved financial performance at U.S. utility operations. "Entergy had an outstanding first quarter," said J. Wayne Leonard, Entergy's chief executive officer. "We continue to deliver on the commitments we have made over the last couple of years, including: growing earnings eight to ten percent a year, maintaining financial integrity and discipline, and improving service to our customers. Today's announcement of an energy commodity venture with Koch Industries (more) Entergy Reports Record First Quarter April 24, 2000 Page 2 of 8 further solidifies our position as a formidable competitor in the wholesale power market. The venture transforms our price risk management group into not only an integrated energy services business, but also a credible and significant addition to our earnings growth strategy." Utility Operations U. S. utility operations reported earnings of $77.8 million, compared with $71.9 million in 1999, despite equally unusually mild winter weather in both periods. Results for first quarter 2000 include a non-recurring charge of $15.4 million for regulatory reserves and rate actions. When this item is excluded, operational earnings were $93.2 million, an increase of 30 percent from $71.9 million in first quarter 1999. Strong retail sales growth and lower operations and maintenance expenses, resulting from lower information technology, nuclear insurance and incentive compensation costs, were primary drivers of the increase in earnings. For the first quarter of 2000, total retail sales were 23.0 million kWh, compared with 22.4 million kWh for the same period in 1999. "Continued strong performance at the utility also contributed to record earnings, with no help from weather, and we continue to show improvements in safety, reliability and customer service," added Leonard. He noted that in 1999, Entergy reduced lost-time accidents by 50% to a system-record low, reduced outages by 26%, and achieved industry-leading performance in customer call centers. "In 2000, we continue to improve on these numbers. So far this year, for example, we haven't had a single lost-time accident at our power plants, and in other operations accidents are down another 50% from last year. The Entergy story continues to be solid execution reflected in strong financial and operational results." Competitive Businesses Entergy Nuclear Inc. earned $11.5 million, as the Pilgrim nuclear plant - which Entergy purchased in July 1999 - - turned in another quarter of outstanding operations. The (more) Entergy Reports Record First Quarter April 24, 2000 Page 3 of 8 Plymouth, Mass., plant set a production record in March 2000, operating in excess of 100 percent of its rated capacity. Additionally, Entergy Wholesale Operations contributed earnings of $9.3 million, driven by strong results from energy trading operation in the United States and United Kingdom and earnings from Latin American investments. On an operational basis, total earnings from competitive businesses of more than $20 million translated into contributions to earnings per share of 9 cents for first quarter 2000, compared with a first quarter 1999 loss of 7 cents. Entergy Nuclear took another major step in its growth strategy on March 28, when it signed an agreement with New York Power Authority to purchase two nuclear plants, James A. FitzPatrick in Oswego and Indian Point 3 in Westchester County. Transition planning is underway, with regulatory approvals that are required to clear the sale expected in the fall. For Entergy Wholesale Operations, scheduled completion of the Saltend Unit 1 plant in the U.K. is still on target for this spring, with Units 2 and 3 scheduled for completion by mid-summer. Share Repurchase Program For the first quarter 2000, 7.4 million shares were repurchased at a total cost of $156 million. Since the share repurchase program was initiated in July 1999, $385 million of the $750 million Board authorized share repurchase program has been utilized to repurchase 15.3 million shares of Entergy common stock. The program is expected to be completed by the end of 2000. Outlook "Financial results were strong in the first quarter," said C. John Wilder, Entergy's chief financial officer. "The utility performed well in our traditionally mild winter months, while the competitive businesses made a very significant contribution, accounting for over 18 percent of (more) Entergy Reports Record First Quarter April 24, 2000 Page 4 of 8 total operational earnings. We are pleased to be well on our way to achieving our 2000 earnings target of $2.35 - $2.45 per share." Entergy is a major global energy company with power production, distribution operations and related diversified services. Entergy owns, manages, or invests in power plants generating nearly 30,000 megawatts of electricity domestically and internationally, and delivers electricity to about 2.5 million customers in portions of Arkansas, Louisiana, Mississippi and Texas. It is also a leading provider of wholesale energy marketing and trading services. Entergy Corporation's on-line address is http://www.entergy.com The following constitutes a "Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995: Investors are cautioned that forward-looking statements contained in the foregoing release with respect to the revenues, earnings, performance, strategies, prospects and other aspects of the business of Entergy Corporation may involve risks and uncertainties. A number of factors could cause actual results or outcomes to differ materially from those indicated by such forward-looking statements. These factors include, but are not limited to, risks and uncertainties relating to: the effects of weather, the performance of generating units and transmission systems, the possession of nuclear materials, fuel prices and availability, the effects of regulatory decisions and changes in law, litigation, capital spending requirements, the onset of competition, advances in technology, changes in accounting standards, corporate restructuring and changes in capital structure, movements in the markets for electricity and other energy-related commodities, changes in interest rates and in financial and foreign currency markets generally, changes in corporate strategies, and other factors. (more) Entergy Reports Record First Quarter April 24, 2000 Page 5 of 8 ENTERGY CORPORATION Earnings at a glance First Quarter 2000 1999 % Operating Revenues $1,811.49 $1,639.92 10.5 Earnings $98.86 $62.18 59.0 Earnings per share* $0.42 $0.25 68.0 * Includes Special Items (EPS) : Regulatory & reserve adjustments $(0.06) - Foreign tax benefits - $0.03 CitiPower purchase price adjustment - $0.02 EPG write-off of start-up costs per new accounting standard - $(0.01) ------ ------ Total $(0.06) $0.04 ------ ------ Note - dollars in millions except per share amounts, which are actual. (more)
Entergy Reports Record First Quarter April 24, 2000 Page 6 of 8 Entergy Corporation Consolidated Income Statement Three Months Ended March 31 (in thousands) 2000 1999 % Inc/(Dec) (unaudited) Operating Revenues: Domestic electric $1,352,896 $1,238,583 9.2 Natural gas 45,881 37,731 21.6 Steam products - 8,296 - Competitive businesses 412,715 355,312 16.2 ---------- ---------- Total 1,811,492 1,639,922 10.5 ---------- ---------- Operating Expenses: Operation and maintenance: Fuel, fuel-related expenses, and gas purchased for resale 497,754 402,973 23.5 Purchased power 369,544 373,799 (1.1) Nuclear refueling outage expenses 18,557 19,685 (5.7) Other operation and maintenance 377,410 367,632 2.7 Decommissioning 10,938 12,674 (13.7) Taxes other than income taxes 79,618 83,068 (4.2) Depreciation and amortization 178,276 184,368 (3.3) Other regulatory charges (credits) - net (14,605) (16,125) (9.4) Amortization of rate deferrals 7,396 8,413 (12.1) ---------- ---------- Total 1,524,888 1,436,487 6.2 ---------- ---------- Operating Income 286,604 203,435 40.9 ---------- ---------- Other Income (Deductions): Allowance for equity funds used during construction 7,695 5,411 42.2 Gain on sales of assets - net 517 20,583 (97.5) Miscellaneous - net 28,982 19,952 45.3 ---------- ---------- Total 37,194 45,946 (19.0) ---------- ---------- Interest and Other Charges: Interest on long-term debt 113,659 122,531 (7.2) Other interest - net 20,283 8,541 137.5 Dividends on preferred securities of subsidiaries 4,709 4,709 - Allowance for borrowed funds used during construction (6,088) (4,479) 35.9 ---------- ---------- Total 132,563 131,302 1.0 ---------- ---------- Income Before Income Taxes 191,235 118,079 62.0 Income Taxes 82,825 45,173 83.4 ---------- ---------- Consolidated Net Income 108,410 72,906 48.7 Preferred dividend requirements of subsidiaries and other 9,550 10,725 (11.0) ---------- ---------- Earnings Applicable to Common Stock $98,860 $62,181 59.0 ========== ========== Earnings Per Average Common Share $0.42 $0.25 68.0 Average Number of Common Shares Outstanding 236,608,445 246,579,198 (more)
Entergy Reports Record First Quarter April 24, 2000 Page 7 of 8 Entergy Corporation Consolidated Income Statement Twelve Months Ended March 31 (in thousands) 2000 1999 % Inc/(Dec) (unaudited) Operating Revenues: Domestic electric $6,385,728 $6,054,853 5.5 Natural gas 118,520 102,661 15.4 Steam products 7,541 43,063 (82.5) Competitive businesses 2,438,595 4,621,025 (47.2) ---------- ---------- Total 8,950,384 10,821,602 (17.3) ---------- ---------- Operating Expenses: Operation and maintenance: Fuel, fuel-related expenses, and gas purchased for resale 2,177,656 1,760,038 23.7 Purchased power 2,438,228 4,180,569 (41.7) Nuclear refueling outage expenses 74,928 80,896 (7.4) Other operation and maintenance 1,720,909 1,871,984 (8.1) Decommissioning 44,252 47,401 (6.6) Taxes other than income taxes 335,834 349,427 (3.9) Depreciation and amortization 692,316 884,019 (21.7) Other regulatory charges (credits) - net 9,266 51,870 (82.1) Amortization of rate deferrals 122,170 165,615 (26.2) ---------- ---------- Total 7,615,559 9,391,819 (18.9) ---------- ---------- Operating Income 1,334,825 1,429,783 (6.6) ---------- ---------- Other Income (Deductions): Allowance for equity funds used during construction 31,575 15,527 103.4 Gain on sales of assets - net 51,859 281,097 (81.6) Miscellaneous - net 163,453 88,424 84.9 ---------- ---------- Total 246,887 385,048 (35.9) ---------- ---------- Interest and Other Charges: Interest on long-term debt 468,005 666,556 (29.8) Other interest - net 94,213 63,486 48.4 Dividends on preferred securities of subsidiaries 18,838 36,159 (47.9) Allowance for borrowed funds used during construction (24,194) (13,360) 81.1 ---------- ---------- Total 556,862 752,841 (26.0) ---------- ---------- Income Before Income Taxes 1,024,850 1,061,990 (3.5) Income Taxes 394,320 263,509 49.6 ---------- ---------- Consolidated Net Income 630,530 798,481 (21.0) Preferred dividend requirements of subsidiaries and other 41,392 45,509 (9.0) ---------- ---------- Earnings Applicable to Common Stock $589,138 $752,972 (21.8) ========== ========== Earnings Per Average Common Share $2.43 $3.05 (20.3) Average Number of Common Shares Outstanding 242,652,359 246,558,908 (more)
Entergy Reports Record First Quarter April 24, 2000 Page 8 of 8 Entergy Corporation U.S. Utility Electric Energy Sales & Customers Three Months Ended March 2000 1999 % (Millions of kwh) Electric Energy Sales: Residential 6,512 6,417 1.5 Commercial 5,280 5,169 2.1 Governmental 587 589 (0.3) Industrial 10,617 10,216 3.9 ------ ------ Total to Ultimate Customers 22,996 22,391 2.7 Wholesale 2,272 2,209 2.8 ------ ------ Total Sales 25,268 24,600 2.7 ====== ====== Twelve Months Ended March 2000 1999 % (Millions of kwh) Electric Energy Sales: Residential 30,726 31,112 (1.2) Commercial 23,886 23,518 1.6 Governmental 2,562 2,620 (2.2) Industrial 43,950 43,257 1.6 ------- ------- Total to Ultimate Customers 101,124 100,507 0.6 Wholesale 9,777 11,466 (14.7) ------- ------- Total Sales 110,901 111,973 (1.0) ======= ======= March 2000 1999 % Electric Customers (Year to date average): Residential 2,195,536 2,167,336 1.3 Commercial 286,013 278,500 2.7 Governmental 14,219 13,866 2.5 Industrial 39,716 39,194 1.3 --------- --------- Total to Ultimate Customers 2,535,484 2,498,896 1.5 Wholesale 43 42 1.6 --------- --------- Total Customers 2,535,527 2,498,938 1.5 ========= ========= EX-99 4 Exhibit 99.3 For further information: E. Renae Conley, VP, Investor Relations Phone 504/576-4947, Fax - 2897 Econley@entergy.com April 24, 2000 ENTERGY REPORTS RECORD FIRST QUARTER, SPURRED BY COMPETITIVE BUSINESSES NEW ORLEANS - Entergy Corporation announced first quarter 2000 consolidated earnings per share of $0.42, compared with $0.25 in 1999. On an operational basis, Entergy earned $0.48 per share, a record first quarter and up 129% when compared with $0.21 in 1999. Weather had an equally unfavorable impact on earnings in both years, reducing earnings by $(0.08) per share in each period. "Entergy had an outstanding first quarter," said J. Wayne Leonard, Entergy's chief executive officer. "We continue to deliver on the commitments we have made over the last couple of years, including: growing earnings 8 to 10% a year, maintaining financial integrity and discipline, and improving service to our customers. Today's announcement of an energy commodity venture with Koch Industries further solidifies our position as a formidable competitor in the wholesale power market. The venture transforms our price risk management group into not only an integrated energy services business, but also a credible and significant addition to our earnings growth strategy." - ---------------------------------------------------------------------------- Table 1: Entergy Corporation Consolidated Results First Quarter 2000 vs.1999 - ---------------------------------------------------------------------------- (Per share in U.S. $) 2000 1999 Change As Reported U.S. Utility 0.33 0.29 0.04 Parent & Other - (0.01) 0.01 Competitive Businesses 0.09 (0.03) 0.12 ------------------------- Consolidated Earnings 0.42 0.25 0.17 Less Special Items U.S. Utility (0.06) - (0.06) Parent & Other - - - Competitive Businesses - 0.04 (0.04) ------------------------- Total (0.06) 0.04 (0.10) Operational U.S. Utility 0.39 0.29 0.10 Parent & Other - (0.01) 0.01 Competitive Businesses 0.09 (0.07) 0.16 ------------------------- Consolidated Earnings 0.48 0.21 0.27 Weather Impact (0.08) (0.08) - Consolidated Operational 0.56 0.29 0.27 Earnings Excluding Weather - ---------------------------------------------------------------------------- Table 2 provides a first quarter 2000 vs. 1999 reported earnings variance analysis for "U.S. Utility, Parent & Other," "Competitive Businesses," and "Consolidated." - ------------------------------------------------------------------------------- Table 2: Entergy Corporation As Reported Earnings Variance Analysis First Quarter 2000 vs. 1999 - ------------------------------------------------------------------------------- (Per share in U.S. $, sorted in consolidated column, most to least favorable) U. S. Utility Competitive Parent & Other (a) Businesses Consolidated 1999 as reported earnings 0.28 (0.03) 0.25 Net Revenue (0.03) (b) 0.23 (c) 0.20 Miscellaneous - net 0.02 0.01 0.03 Depreciation/amortization 0.01 0.01 0.02 Share repurchase impact 0.02 - 0.02 Taxes other than income taxes 0.01 - 0.01 Interest and other charges 0.01 (0.01) - Other O&M 0.01 (d) (0.03) (e) (0.02) Gain on sale of assets - (0.02) (f) (0.02) Income taxes - other - (0.07) (g) (0.07) ----- ----- ----- 2000 as reported earnings 0.33 0.09 0.42 - ------------------------------------------------------------------------------- First quarter 2000 revenues were up more than 10% over the same period in 1999. Sales from the Pilgrim plant resulted in a 17% rise in revenues from the competitive businesses. Utility revenues increased 9% in 2000, largely due to higher fuel cost recovery driven by higher gas prices and fuel surcharges. Higher gas prices in first quarter 2000 also explain increased fuel expenses. Purchased power in first quarter 2000 was unchanged from 1999. A River Bend refueling outage increased the utility's 2000 purchased power expenses, but reduced energy trading activity lowered purchased power expenses at the competitive businesses. Other O&M increased slightly in first quarter 2000 as Pilgrim operating expenses were partially offset by lower utility spending. The resulting EBITDA was up over 20% in 2000, driven by the competitive businesses' improved results. Other income was down $8.8 million in the first quarter of 2000, as the recent period did not include gains from the sale of retail assets and losses from Parent charges that were included in first quarter 1999. Interest on long-term debt was lower in 2000, but other interest increased primarily due to the interest associated with the SERI refund adjustment made in the second quarter of 1999. The effective tax rate was 43% in the first quarter of 2000, compared with 38% in the year earlier period, due to foreign tax credits recorded in 1999. Net income was up 59% in the first quarter of 2000, while earnings per share were up 68%, because of fewer shares outstanding. _______________________________ (a) "Other" for 2000 includes the remaining carrier-of-carriers telecom business and other assets from the Retail Group, most of which were divested in 1999. Investment income on the funds remaining from the gains on sales of international assets is also included in this grouping for both 2000 and 1999. (b) Net revenue decreased primarily as a result of regulatory and reserve adjustments of $(0.06) per share (included as a Special Item in Table 4). This decrease was partially offset by favorable sales growth of $0.03 per share. There were no significant regulatory revenue reductions in either period. (c) Net revenue increased as a result of the inclusion of operations from the Pilgrim Nuclear Power Station (acquired in July 1999) of $0.13 per share, and favorable trading operations at Entergy Wholesale Operations of $0.10 per share. (d) Other O&M at the utility decreased $0.04 per share as a result of lower information technology, nuclear insurance, and incentive compensation expenses. This decrease was partially offset by a $(0.03) per share increase at Parent & Other, due in part to the inclusion of the remaining retail operations in 2000 results (see Note "a"). (e) Other O&M increased primarily as a result of the inclusion of operations at Pilgrim Station, $(0.07) per share. This increase was offset in part by the elimination of O&M expenses from the Retail businesses divested in 1999. (f) Gain on sale of assets decreased, as there were no asset sales in 2000. First quarter 1999 results included a $0.02 purchase price adjustment for the 1998 CitiPower sale. (g) Income statement line items are tax-affected at the statutory rate. Differences between the statutory and effective rates are reflected in the "Income tax - other" line. Income taxes for the competitive businesses were affected in part by foreign tax credits in the first quarter of 1999. U.S. Utility In the first quarter of 2000, the utility business reported earnings of $0.33 per share, compared with $0.29 in 1999. Weather was equally unfavorable in both years, with an $(0.08) impact per share in each period. Earnings per share for the 2000 period were negatively impacted $(0.06) by regulatory and reserve adjustments. This charge has been identified as a special item (see Table 4). On an operational basis, quarterly earnings per share were $0.39 in 2000, 34% above 1999 operational earnings of $0.29. Strong retail sales growth and lower O&M expenses were the primary reasons for increased operational earnings. Parent & Other Parent & Other earnings per share were zero in first quarter 2000, as compared with $(0.01) in first quarter 1999. In first quarter 2000, investment income was roughly equal to 1999 levels, while first quarter 2000 parent charges were lower than in the same period in 1999. Competitive Businesses On an as reported basis, earnings per share from competitive businesses were $0.09, as compared with a loss of $(0.03) in 1999. First quarter 1999 results included $0.04 of special items (see Table 4). On an operational basis, first quarter 2000 earnings per share were $0.09 compared with a $(0.07) loss in 1999. Entergy Wholesale Operations, on an operational basis, contributed $0.04 to earnings per share in 2000 as compared with a loss of $(0.05) in the previous year. In 2000, trading operations in both the U.S. and the U.K. contributed strong earnings, while earnings from Latin American investments largely offset project development costs. Entergy Nuclear earned $0.05 per share in 2000 compared with zero in 1999, primarily due to operations at the Pilgrim Nuclear Power Station. Table 3 provides a 2000 vs. 1999 comparison of contributions by business for the first quarter, on both an as reported and operational basis. - ---------------------------------------------------------------------------- Table 3: Competitive Businesses Earnings First Quarter 2000 vs.1999 - ---------------------------------------------------------------------------- (Per share in U.S. $) 2000 1999 $ Change As Reported Entergy Wholesale Operations 0.04 (0.06) 0.10 Entergy Nuclear 0.05 - 0.05 Divested Businesses - 0.03 (0.03) ----------------------------- Total 0.09 (0.03) 0.12 Less Special Items (see Table 4) Entergy Wholesale Operations - (0.01) 0.01 Entergy Nuclear - - - Divested Businesses - 0.05 (0.05) ----------------------------- Total - 0.04 (0.04) Operational Entergy Wholesale Operations 0.04 (0.05) 0.09 Entergy Nuclear 0.05 - 0.05 Divested Businesses - (0.02) 0.02 ----------------------------- Total 0.09 (0.07) 0.16 - ---------------------------------------------------------------------------- Share Repurchase Program For the first quarter of 2000, 7.4 million shares were repurchased at a total cost of $156 million. Since the share repurchase program was initiated in July 1999, $385 million of the $750 million Board authorized share repurchase program had been utilized to purchase 15.3 million shares. The program is expected to be complete by the end of 2000. Earnings Review and Outlook "Financial results were strong in the first quarter," said C. John Wilder, Entergy's chief financial officer. "The utility performed well in our traditionally mild winter months, while the competitive businesses made a very significant contribution, accounting for over 18% of total operational earnings. We are pleased to be well on our way to achieving our 2000 earnings target of $2.35 - $2.45 per share." Table 4 lists special items by business for the first quarters of 2000 and 1999. Special items are those events that are non-routine, are related to prior periods, or result from discontinued operations. The intent is to separate out the earnings impact of special events in order to report solely the results of the company's ongoing operations. - ---------------------------------------------------------------------------- Table 4: Entergy Special Items [shown as positive / (negative) impact on earnings] First Quarter 2000 vs.1999 - ---------------------------------------------------------------------------- (Per share in U.S. $) 2000 1999 Change U.S. Utility Special Items Regulatory and reserve adjustments (h) (0.06) - (0.06) ---------------------- Total (0.06) - (0.06) ---------------------- Parent Special Items - - - Competitive Businesses Special Items Divested Businesses - foreign tax - 0.03 (0.03) benefits Divested Businesses - CitiPower - 0.02 (0.02) purchase price adjustment EPG - write-off of start up costs (i) - (0.01) 0.01 ---------------------- Total - 0.04 (0.04) ---------------------- Total Special Items (0.06) 0.04 (0.10) - ---------------------------------------------------------------------------- ___________________ (h) Regulatory and reserve adjustments were made in the first quarter of 2000 for potential rate actions, rate refunds, and ongoing litigation. (i) The new accounting standard is AICPA Statement of Position 98-5, "Recording the Costs of Start-Up Operations." Table 5 provides Entergy's projection of 2000 earnings per share. - ---------------------------------------------------------------------------- Table 5: 2000 Earnings Guidance - ---------------------------------------------------------------------------- (Per share in U.S. $)
1999 Changes in 2000 2000 1Q 2000 Operational Guidance Operati Range onal Range of Impact Utility Regulatory reductions (0.02) - ------------ (w/o weather) 2.17 Total (0.02) - 2.15 2.17 0.47 ENI Full year of Pilgrim 0.10 0.12 ownership ------------ 0.06 Total 0.10 0.12 0.16 0.18 0.05 EWO No Edesur sale (0.07) (0.07) U.K. projects 0.05 0.08 Improved trading and JV 0.08 0.09 ------------ 0.05 Total 0.06 0.10 0.11 0.15 0.04 Parent & Other Expense reductions 0.23 0.24 Reduced investment income (0.11) (0.10) Other 0.01 0.01 ------------ (0.20) Total 0.13 0.15 (0.07) (0.05) - ----------------------------------------------------------------- 1999 Total 2.08 0.27 0.37 2.35 2.45 0.56 - ----------------------------------------------------------------------------------
Projected 2000 earnings from the U.K. power plants have been reduced to reflect the previously announced construction delay at Saltend and the reduction in U.K. electricity pool prices. The strength of first quarter earnings helps ensure that projected 2000 earnings per share are comfortably within the $2.35 - $2.45 range. Other Performance Highlights Operating cash flow increased substantially in the first quarter of 2000, primarily due to increased cash flows from the competitive businesses as their earnings improved. Cash return on average investment declined for the twelve months ending March 2000. This decline was a result of a reduction in assets due to the sale of the international assets and a corresponding decline in EBITDA because of the lost operating income associated with those assets. The return on average common equity improved, reflecting strong income growth in the twelve months ending March 2000. Finally, with fewer shares outstanding, book value per share rose in the twelve months ending March 2000. The book value of common equity was largely unchanged between the two periods as a $300 million increase in retained earnings was offset by a $373 million reduction in common equity due to increased treasury stock with the share repurchase. Table 6 provides some key financial performance metrics. - ---------------------------------------------------------------------------- Table 6: Entergy Corporation Key Financial Performance Metrics First Quarter 2000 vs.1999 - ---------------------------------------------------------------------------- 2000 1999 Change For the first quarter: Operating cash flow ($millions) $311 $210 $101 Operating cash flow per share $1.31 $0.85 $0.46 For 12 months ending March 31: Cash return on average investment (j) 6.83% 7.80% (0.97)% Return on average common equity (k) 8.36% 7.13% 1.23% Book value per share (l) $30.13 $28.76 $1.37 End of period shares outstanding (millions) 232.2 246.7 (14.5) - ---------------------------------------------------------------------------- 30 Entergy's common stock is listed on the New York, Chicago, and Pacific exchanges under the symbol "ETR". Entergy Corporation's on-line address is http://www.entergy.com *************************************************************************** ********************************************************** The following constitutes a "Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995: Investors are cautioned that forward-looking statements contained in the foregoing release with respect to the revenues, earnings, performance, strategies, prospects and other aspects of the business of Entergy Corporation may involve risks and uncertainties. A number of factors could cause actual results or outcomes to differ materially from those indicated by such forward-looking statements. These factors include, but are not limited to, risks and uncertainties relating to: the effects of weather, the performance of generating units and transmission systems, the possession of nuclear materials, fuel prices and availability, the effects of regulatory decisions and changes in law, litigation, capital spending requirements, the onset of competition, advances in technology, changes in accounting standards, corporate restructuring and changes in capital structure, movements in the markets for electricity and other energy-related commodities, changes in interest rates and in financial and foreign currency markets generally, changes in corporate strategies, and other factors. _______________________________ (j) "Cash return on average investment" is 12-months rolling EBITDA divided by average total assets plus accumulated depreciation less current liabilities. This metric is a measure of Entergy's ability to generate cash relative to its gross investments. (k) "Return on average common equity" is 12-months rolling net income divided by average common equity - 1999 net income excludes the gains from sales of London Electricity and CitiPower. This metric is a measure of Entergy's ability to generate profits from equity received from common shareholders. (l) "Book value per share" is common equity divided by shares outstanding. This metric is a measure of the book value of Entergy's net assets per share.
Entergy Corporation Consolidating Balance Sheet March 31, 2000 (Dollars in thousands) (Unaudited) U.S. Parent Competitive Eliminations Consolidated Utilities Company Businesses ASSETS CURRENT ASSETS Cash and cash equivalents: Cash $ 40,392 $ 1 $ 72,973 $ - $ 113,365 Temporary cash investments - at cost, which approximates market 276,246 34,836 1,255,546 - 1,566,629 Special deposits - - 6,102 - 6,102 ---------------------------------------------------------------------- Total cash and cash equivalents 316,638 34,837 1,334,621 - 1,686,096 ---------------------------------------------------------------------- Other temporary investments - - - - - Notes receivable 1,572 - 2,064 - 3,635 Accounts receivable: Customer 257,638 - 91 - 257,729 Allowance for doubtful accounts (6,943) - (2,564) - (9,507) Associated companies 7,744 203,065 2,339 (213,149) - Other 65,390 (57) 169,614 - 234,947 Accrued unbilled revenues 274,202 - - - 274,202 ---------------------------------------------------------------------- Total receivables 598,032 203,009 169,481 (213,149) 757,371 Deferred fuel costs 208,035 - - - 208,035 Fuel inventory - at average cost 114,417 - 3,456 (240) 117,633 Materials and supplies - at average cost 371,865 (13) 21,874 - 393,726 Rate deferrals 27,450 - - - 27,450 Deferred nuclear refueling outage costs 47,180 - - - 47,180 Prepayments and other 74,048 2,316 14,884 - 91,248 ---------------------------------------------------------------------- TOTAL 1,759,235 240,149 1,546,380 (213,389) 3,332,374 ---------------------------------------------------------------------- OTHER PROPERTY AND INVESTMENTS Investment in subsidiary companies - at equity 214 6,763,236 - (6,763,235) 214 Decommissioning trust funds 817,732 - 429,676 - 1,247,408 Non-utility property - at cost (less accumulated depreciation) 220,748 - 101,237 - 321,984 Non-regulated investments - 1,000 245,240 - 246,240 Other - at cost (less accumulated depreciation) 17,479 - - - 17,480 ---------------------------------------------------------------------- TOTAL 1,056,172 6,764,236 776,153 (6,763,235) 1,833,326 ---------------------------------------------------------------------- UTILITY PLANT Electric 23,077,731 4,340 155,486 - 23,237,556 Plant acquisition adjustment 402,563 - 300 - 402,863 Property under capital lease 774,184 - - - 774,184 Natural gas 187,632 - - - 187,632 Construction work in progress 812,599 790 955,813 - 1,769,202 Nuclear fuel under capital lease 268,220 - - - 268,220 Nuclear fuel 66,478 - 44,432 - 110,910 ---------------------------------------------------------------------- TOTAL UTILITY PLANT 25,589,407 5,130 1,156,031 - 26,750,567 Less - accumulated depreciation and amortization 10,993,419 2,459 84,375 - 11,080,253 ---------------------------------------------------------------------- UTILITY PLANT - NET 14,595,988 2,671 1,071,655 - 15,670,314 ---------------------------------------------------------------------- DEFERRED DEBITS AND OTHER ASSETS Regulatory assets: Rate deferrals 12,130 - - - 12,130 SFAS 109 regulatory asset - net 1,044,438 - - - 1,044,438 Unamortized loss on reacquired debt 197,092 - - - 197,092 Other regulatory assets 665,179 - - - 665,179 Long-term receivables 31,625 - - - 31,625 Other 194,629 402,514 380,651 (402,046) 575,749 ---------------------------------------------------------------------- TOTAL 2,145,093 402,514 380,651 (402,046) 2,526,213 ---------------------------------------------------------------------- - TOTAL ASSETS $19,556,488 $7,409,570 $3,774,840 $(7,378,671) $ 23,362,227 ====================================================================== * Totals may not foot due to rounding.
Entergy Corporation Consolidating Balance Sheet March 31, 2000 (Dollars in thousands) (Unaudited) U.S. Parent Competitive Eliminations Consolidated Utilities Company Businesses LIABILITIES AND SHAREHOLDERS' EQUITY - CURRENT LIABILITIES Currently maturing long-term debt $108,408 $ - $67,000 $ - $175,408 Notes payable: Other 716 350,000 - - 350,716 Account payable: Associated companies 32,508 769 15,576 (48,853) - Other 426,028 1,022 164,081 - 591,132 Customer deposits 166,931 - - - 166,931 Taxes accrued 326,528 8,135 160,755 - 495,418 Accumulated deferred income taxes 59,833 - 20 - 59,853 Nuclear refueling outage costs 9,246 - - - 9,246 Interest accrued 101,112 462 1,113 - 102,687 Co-owner advances 11,549 - - (8,129) 3,420 Obligations under capital lease 176,530 - - - 176,530 Other 137,086 6,918 19,600 (8,310) 155,292 ---------------------------------------------------------------------- TOTAL 1,556,474 367,306 428,143 (65,291) 2,286,633 ---------------------------------------------------------------------- DEFERRED CREDITS AND OTHER LIABILITIES Accumulated deferred income taxes 3,396,755 (16,676) (103,156) - 3,276,922 Accumulated deferred investment tax credits 513,009 - - - 513,009 Obligations under capital lease 184,751 - - - 184,751 FERC settlement - refund obligation 35,765 - - - 35,765 Other regulatory liabilities 200,607 - - - 200,607 Decommisioning 275,053 - 439,476 - 714,529 Transition to competition 164,486 - - - 164,486 Regulatory reserves 398,195 - - - 398,195 Accumulated provisions 279,263 - (71) - 279,192 Other 639,460 52,433 357,541 (394,157) 655,277 ---------------------------------------------------------------------- TOTAL 6,087,344 35,757 693,790 (394,157) 6,422,733 ---------------------------------------------------------------------- Long-term debt 5,929,184 - 1,112,505 (155,987) 6,885,702 Preferred stock with sinking fund 69,650 - - - 69,650 Preference stock 150,000 - - - 150,000 Company-obligated mandatorily redeemable preferred securities of subsidiary trust holding solely junior subordinated deferrable debentures 215,000 - - - 215,000 SHAREHOLDERS' EQUITY Preferred stock without sinking fund 335,961 - - - 335,961 Common stock 2,225,870 2,472 659,574 (2,885,444) 2,472 Authorized shares 500,000,000 Issued shares CY 247,172,239 Paid-in capital 1,779,381 4,636,475 845,100 (2,624,482) 4,636,474 Retained earnings 1,207,625 2,814,499 121,174 (1,328,798) 2,814,499 Accumulated other comprehensive income: Cumulative foreign currency translation adjustment - (69,489) (69,489) 69,489 (69,489) Net unrealized investment gains (losses) - - (9,958) - (9,958) Less - treasury stock, at cost - 377,450 6,000 (6,000) 377,450 Shares CY 14,962,294 ---------------------------------------------------------------------- TOTAL 5,548,837 7,006,507 1,540,401 (6,763,235) 7,332,509 ---------------------------------------------------------------------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $19,556,488 $7,409,570 $3,774,840 $ (7,378,671) $23,362,227 ====================================================================== * Totals may not foot due to rounding.
Entergy Corporation Consolidating Balance Sheet December 31, 1999 (Dollars in thousands) (Unaudited) U.S. Parent Competitive Eliminations Consolidated Utilities Company Businesses ASSETS CURRENT ASSETS Cash and cash equivalents: Cash $ 35,970 $ 14 $ 72,214 $ - $ 108,198 Temporary cash investments - at cost, which approximates market 101,199 16,479 987,843 - 1,105,521 Special deposits - - - - - ---------------------------------------------------------------------- Total cash and cash equivalents 137,169 16,493 1,060,057 - 1,213,719 ---------------------------------------------------------------------- Other temporary investments - - 321,351 - 321,351 Notes receivable 97 - 2,064 - 2,161 Accounts receivable: Customer 290,240 - 91 - 290,331 Allowance for doubtful accounts (6,943) - (2,564) - (9,507) Associated companies 16,293 177,501 (319) (193,476) - Other 55,190 (51) 152,759 - 207,898 Accrued unbilled revenues 298,616 - - - 298,616 ---------------------------------------------------------------------- Total receivables 653,397 177,450 149,967 (193,476) 787,338 Deferred fuel costs 240,661 - - - 240,661 Fuel inventory - at average cost 87,362 - 7,424 (366) 94,419 Materials and supplies - at average cost 370,681 (18) 21,741 - 392,403 Rate deferrals 30,394 - - - 30,394 Deferred nuclear refueling outage costs 58,119 - - - 58,119 Prepayments and other 52,836 2,100 23,628 - 78,567 ---------------------------------------------------------------------- TOTAL 1,630,717 196,025 1,586,232 (193,841) 3,219,132 ---------------------------------------------------------------------- OTHER PROPERTY AND INVESTMENTS Investment in subsidiary companies - at equity 214 6,707,894 - (6,707,894) 214 Decommissioning trust funds 815,014 - 431,009 - 1,246,023 Non-utility property - at cost (less accumulated depreciation) 217,622 - 99,544 - 317,165 Non-regulated investments - - 198,003 - 198,003 Other - at cost (less accumulated depreciation) 16,714 - - - 16,714 ---------------------------------------------------------------------- TOTAL 1,049,563 6,707,894 728,556 (6,707,894) 1,778,119 ---------------------------------------------------------------------- UTILITY PLANT Electric 23,003,335 4,340 155,486 - 23,163,161 Plant acquisition adjustment - 406,630 300 - 406,929 Property under capital lease 768,500 - - - 768,500 Natural gas 186,041 - - - 186,041 Construction work in progress 708,431 688 791,498 - 1,500,617 Nuclear fuel under capital lease 286,476 - - - 286,476 Nuclear fuel 39,506 - 48,186 - 87,693 ---------------------------------------------------------------------- TOTAL UTILITY PLANT 24,992,289 411,658 995,470 - 26,399,417 Less - accumulated depreciation and amortization 10,813,031 2,242 83,387 - 10,898,661 ---------------------------------------------------------------------- UTILITY PLANT - NET 14,179,258 409,415 912,083 - 15,500,756 ---------------------------------------------------------------------- DEFERRED DEBITS AND OTHER ASSETS Regulatory assets: Rate deferrals 16,581 - - - 16,581 SFAS 109 regulatory asset - net 1,068,006 - - - 1,068,006 Unamortized loss on reacquired debt 198,631 - - - 198,631 Other regulatory assets 637,870 - - - 637,870 Long-term receivables 32,260 - - - 32,260 Other 143,863 47,574 342,294 - 533,732 ---------------------------------------------------------------------- TOTAL 2,097,211 47,574 342,294 - 2,487,080 ---------------------------------------------------------------------- TOTAL ASSETS $18,956,750 $7,360,908 $3,569,164 $(6,901,735) $ 22,985,087 ====================================================================== * Totals may not foot due to rounding.
Entergy Corporation Consolidating Balance Sheet December 31, 1999 (Dollars in thousands) (Unaudited) U.S. Parent Competitive Eliminations Consolidated Utilities Company Businesses LIABILITIES AND SHAREHOLDERS' EQUITY - CURRENT LIABILITIES Currently maturing long-term debt $194,555 $ - $ - $ - $194,555 Notes payable: Other 716 120,000 - - 120,715 Account payable: Associated companies 1,604 2,165 21,807 (25,577) - Other 468,278 17,786 221,614 - 707,678 Customer deposits 161,909 - - - 161,909 Taxes accrued 270,644 9,142 165,891 - 445,677 Accumulated deferred income taxes 72,640 - - - 72,640 Nuclear refueling outage costs 11,216 - - - 11,216 Interest accrued 126,177 148 2,702 - 129,028 Co-owner advances 15,147 - - (8,129) 7,018 Obligations under capital lease 178,247 - - - 178,247 Other 213,583 6,251 24,054 (118,139) 125,749 ---------------------------------------------------------------------- TOTAL 1,714,717 155,493 436,067 (151,845) 2,154,432 ---------------------------------------------------------------------- DEFERRED CREDITS AND OTHER LIABILITIES Accumulated deferred income taxes 3,443,734 (16,165) (160,568) - 3,267,001 Accumulated deferred investment tax credits 519,910 - - - 519,910 Obligations under capital lease 205,464 - - - 205,464 FERC settlement - refund obligation 37,337 - - - 37,337 Other regulatory liabilities 199,139 - - - 199,139 Decommisioning 268,697 - 478,095 - 746,792 Transition to competition 157,034 - - - 157,034 Regulatory reserves 378,307 - - - 378,307 Accumulated provisions 222,008 57,938 (522) - 279,425 Other 250,338 39,216 237,840 7,763 535,156 ---------------------------------------------------------------------- TOTAL 5,681,969 80,989 554,845 7,763 6,325,565 ---------------------------------------------------------------------- Long-term debt 5,623,974 - 1,038,370 (49,760) 6,612,583 Preferred stock with sinking fund 69,650 - - - 69,650 Preference stock 150,000 - - - 150,000 Company-obligated mandatorily redeemable preferred securities of subsidiary trust holding solely junior subordinated deferrable debentures 215,000 - - - 215,000 SHAREHOLDERS' EQUITY Preferred stock without sinking fund 338,455 - - - 338,455 Common stock 2,225,870 2,471 659,561 (2,885,431) 2,471 Authorized shares 500,000,000 Issued shares CY 247,082,345 Paid-in capital 1,779,316 4,636,163 835,400 (2,614,718) 4,636,163 Retained earnings 1,157,800 2,786,467 124,726 (1,282,527) 2,786,467 Accumulated other comprehensive income: Cumulative foreign currency translation adjustment - (68,782) (68,782) 68,782 (68,782) Net unrealized investment gains (losses) - - (5,023) - (5,023) Less - treasury stock, at cost - 231,894 6,000 (6,000) 231,894 Shares CY 8,045,434 ---------------------------------------------------------------------- TOTAL 5,501,441 7,124,426 1,539,883 (6,707,893) 7,457,857 ---------------------------------------------------------------------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $18,956,750 $7,360,908 $3,569,164 $ (6,901,735) $22,985,087 ====================================================================== * Totals may not foot due to rounding.
Entergy Corporation Consolidating Balance Sheet March 31, 2000 vs December 31, 1999 Increase/(Decrease) (Dollars in thousands) (Unaudited) U.S. Parent Competitive Eliminations Consolidated Utilities Company Businesses ASSETS CURRENT ASSETS Cash and cash equivalents: Cash $ 4,422 $ (13) $ 759 $ - $ 5,168 Temporary cash investments - at cost, which approximates market 175,047 18,357 267,703 - 461,107 Special deposits - - 6,102 - 6,102 ---------------------------------------------------------------------- Total cash and cash equivalents 179,469 18,344 274,564 - 472,377 ---------------------------------------------------------------------- Other temporary investments - - (321,351) - (321,351) Notes receivable 1,474 - - - 1,474 Accounts receivable: Customer (32,602) - - - (32,602) Allowance for doubtful accounts - - - - - Associated companies (8,549) 25,564 2,658 (19,673) - Other 10,200 (6) 16,855 - 27,049 Accrued unbilled revenues (24,414) - - - (24,414) ---------------------------------------------------------------------- Total receivables (55,365) 25,558 19,514 (19,673) (29,967) Deferred fuel costs (32,626) - - - (32,626) Fuel inventory - at average cost 27,055 - (3,968) 125 23,213 Materials and supplies - at average cost 1,184 6 133 - 1,323 Rate deferrals (2,945) - - - (2,945) Deferred nuclear refueling outage costs (10,940) - - - (10,940) Prepayments and other 21,211 216 (8,744) - 12,686 ---------------------------------------------------------------------- TOTAL 128,518 44,124 (39,852) (19,548) 113,244 ---------------------------------------------------------------------- OTHER PROPERTY AND INVESTMENTS Investment in subsidiary companies - at equity - 55,342 - (55,342) - Decommissioning trust funds 2,717 - (1,332) - 1,385 Non-utility property - at cost (less accumulated depreciation) 3,126 - 1,693 - 4,819 Non-regulated investments - 1,000 47,237 - 48,237 Other - at cost (less accumulated depreciation) 766 - - - 766 ---------------------------------------------------------------------- TOTAL 6,609 56,342 47,597 (55,342) 55,207 ---------------------------------------------------------------------- UTILITY PLANT Electric 74,396 - - - 74,396 Plant acquisition adjustment 402,563 (406,630) - - (4,066) Property under capital lease 5,684 - - - 5,684 Natural gas 1,591 - - - 1,591 Construction work in progress 104,168 102 164,315 - 268,585 Nuclear fuel under capital lease (18,257) - - - (18,257) Nuclear fuel 26,972 - (3,754) - 23,217 ---------------------------------------------------------------------- TOTAL UTILITY PLANT 597,117 (406,528) 160,561 - 351,150 Less - accumulated depreciation and amortization 180,388 217 988 - 181,593 ---------------------------------------------------------------------- UTILITY PLANT - NET 416,729 (406,745) 159,573 - 169,557 ---------------------------------------------------------------------- DEFERRED DEBITS AND OTHER ASSETS Regulatory assets: Rate deferrals (4,451) - - - (4,451) SFAS 109 regulatory asset - net (23,568) - - - (23,568) Unamortized loss on reacquired debt (1,539) - - - (1,539) Other regulatory assets 27,309 - - - 27,309 Long-term receivables (635) - - - (635) Other 50,766 354,941 38,357 (402,046) 42,017 ---------------------------------------------------------------------- TOTAL 47,882 354,941 38,357 (402,046) 39,133 ---------------------------------------------------------------------- TOTAL ASSETS $ 599,738 $ 48,662 $ 205,676 $ (476,935) $ 377,141 ====================================================================== * Totals may not foot due to rounding.
Entergy Corporation Consolidating Balance Sheet March 31, 2000 vs December 31, 1999 Increase/(Decrease) (Dollars in thousands) (Unaudited) U.S. Parent Competitive Eliminations Consolidated Utilities Company Businesses LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES Currently maturing long-term debt $(86,147) $ - $67,000 $ - $(19,147) Notes payable: Other - 230,000 - - 230,001 Account payable: Associated companies 30,903 (1,397) (6,231) (23,276) - Other (42,250) (16,764) (57,534) - (116,547) Customer deposits 5,022 - - - 5,022 Taxes accrued 55,884 (1,008) (5,136) - 49,741 Accumulated deferred income taxes (12,808) - 20 - (12,788) Nuclear refueling outage costs (1,970) - - - (1,970) Interest accrued (25,065) 314 (1,589) - (26,341) Co-owner advances (3,599) - - - (3,599) Obligations under capital lease (1,717) - - - (1,717) Other (76,497) 667 (4,454) 109,829 29,543 ---------------------------------------------------------------------- TOTAL (158,243) 211,813 (7,924) 86,553 132,198 ---------------------------------------------------------------------- DEFERRED CREDITS AND OTHER LIABILITIES Accumulated deferred income taxes (46,980) (511) 57,411 - 9,921 Accumulated deferred investment tax credits (6,901) - - - (6,901) Obligations under capital lease (20,713) - - - (20,713) FERC settlement - refund obligation (1,572) - - - (1,572) Other regulatory liabilities 1,468 - - - 1,468 Decommisioning 6,356 - (38,619) - (32,263) Transition to competition 7,453 - - - 7,453 Regulatory reserves 19,888 - - - 19,888 Accumulated provisions 57,255 (57,938) 451 - (233) Other 389,122 13,218 119,702 (401,920) 120,121 ---------------------------------------------------------------------- TOTAL 405,375 (45,232) 138,945 (401,920) 97,169 ---------------------------------------------------------------------- Long-term debt 305,210 - 74,136 (106,227) 273,120 Preferred stock with sinking fund - - - - - Preference stock - - - - - Company-obligated mandatorily redeemable preferred securities of subsidiary trust holding solely junior subordinated deferrable debentures - - - - - SHAREHOLDERS' EQUITY Preferred stock without sinking fund (2,493) - - - (2,493) Common stock - 1 13 (13) 1 Paid-in capital 65 311 9,700 (9,765) 311 Retained earnings 49,825 28,032 (3,552) (46,272) 28,032 Accumulated other comprehensive income: Cumulative foreign currency translation adjustment - (706) (707) 707 (706) Net unrealized investment gains (losses) - - (4,935) - (4,935) Less - treasury stock, at cost - 145,556 - - 145,556 ---------------------------------------------------------------------- TOTAL 47,396 (117,919) 519 (55,342) (125,346) ---------------------------------------------------------------------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 599,738 $ 48,662 $ 205,676 $ (476,935) $ 377,141 ====================================================================== * Totals may not foot due to rounding.
Entergy Corporation Consolidating Income Statement Year to Date March 31, 2000 (Dollars in thousands) (Unaudited) U.S. Parent & Competitive Eliminations Consolidated Utilities Other Businesses OPERATING REVENUES: Domestic electric $1,355,562 $ - $ - $ (2,666) $ 1,352,896 Natural gas 45,881 - - - 45,881 Steam products - - - - - Competitive businesses - 5,762 416,246 (9,294) 412,715 ----------------------------------------------------------------- Total 1,401,444 5,762 416,246 (11,959) 1,811,492 ----------------------------------------------------------------- OPERATING EXPENSES: Operating and Maintenance: Fuel, fuel related expenses, and gas 419,189 - 78,564 - 497,754 purchased for resale Purchased power 136,241 - 243,414 (10,112) 369,544 Nuclear refueling outage expenses 18,557 - - - 18,557 Other operation and maintenance 300,443 19,940 59,320 (2,292) 377,410 Decommissioning 10,938 - - - 10,938 Taxes other than income taxes 77,965 277 1,376 - 79,618 ----------------------------------------------------------------- Total 963,333 20,217 382,674 (12,404) 1,353,821 ----------------------------------------------------------------- EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION, AND AMORTIZATION 438,111 (14,455) 33,571 445 457,671 ----------------------------------------------------------------- DEPRECIATION AND AMORTIZATION: Depreciation and amortization 175,748 717 1,811 - 178,276 Other regulatory charges (credits) (14,605) - - - (14,605) Amortization of rate deferrals 7,396 - - - 7,396 ----------------------------------------------------------------- Total 168,539 717 1,811 - 171,067 ----------------------------------------------------------------- OPERATING INCOME (LOSS) 269,572 (15,172) 31,760 445 286,604 OTHER INCOME (DEDUCTIONS): Allowance for equity funds used during 7,695 - - - 7,695 construction Gain/(loss) on sale of assets - net 514 3 - - 517 Miscellaneous - net 4,398 20,791 7,489 (3,698) 28,982 ----------------------------------------------------------------- Total 12,607 20,794 7,489 (3,698) 37,194 ----------------------------------------------------------------- INTEREST AND OTHER CHARGES: Interest on long-term debt 114,342 - 126 (810) 113,659 Other interest - net 10,687 4,647 7,391 (2,443) 20,283 Distributions on preferred securities 4,709 - - - 4,709 of subsidiaries Allowance for borrowed funds used (6,088) - - - (6,088) during construction ----------------------------------------------------------------- Total 123,651 4,647 7,518 (3,253) 132,563 ----------------------------------------------------------------- INCOME (LOSS) BEFORE INCOME TAXES 158,529 974 31,732 - 191,235 INCOME TAXES 71,191 534 11,101 - 82,825 ----------------------------------------------------------------- CONSOLIDATED NET INCOME (LOSS) 87,338 440 20,632 - 108,410 PREFERRED DIVIDEND REQUIREMENTS OF SUBSIDIARIES AND OTHER 9,550 - - - 9,550 ----------------------------------------------------------------- EARNINGS (LOSS) APPLICABLE TO COMMON STOCK $ 77,788 $ 440 $ 20,632 $ - $98,860 ================================================================= EARNINGS PER AVERAGE COMMON SHARE $0.33 $0.00 $0.09 $0.42 AVERAGE NUMBER OF COMMON SHARES OUTSTANDING 236,608,445 *Totals may not foot due to rounding.
Entergy Corporation Consolidating Income Statement Year to Date March 31, 1999 (Dollars in thousands) (Unaudited) U.S. Parent & Competitive Eliminations Consolidated Utilities Other Businesses OPERATING REVENUES: Domestic electric $1,240,676 $ - $ - $ (2,092) $ 1,238,583 Natural gas 37,731 - - - 37,731 Steam products 8,296 - - - 8,296 Competitive businesses - - 356,534 (1,222) 355,312 ----------------------------------------------------------------- Total 1,286,703 - 356,534 (3,315) 1,639,922 ----------------------------------------------------------------- OPERATING EXPENSES: Operating and Maintenance: Fuel, fuel related expenses, and gas 344,597 - 58,376 - 402,973 purchased for resale Purchased power 81,348 - 294,313 (1,862) 373,799 Nuclear refueling outage expenses 19,685 - - - 19,685 Other operation and maintenance 318,025 6,844 44,927 (2,165) 367,632 Decommissioning 12,674 - - - 12,674 Taxes other than income taxes 82,296 224 549 - 83,068 ----------------------------------------------------------------- Total 858,624 7,068 398,166 (4,026) 1,259,831 ----------------------------------------------------------------- EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION, AND AMORTIZATION 428,078 (7,068) (41,632) 712 380,091 ----------------------------------------------------------------- DEPRECIATION AND AMORTIZATION: Depreciation and amortization 179,484 551 4,333 - 184,368 Other regulatory charges (credits) (16,125) - - - (16,125) Amortization of rate deferrals 8,413 - - - 8,413 ----------------------------------------------------------------- Total 171,772 551 4,333 - 176,656 ----------------------------------------------------------------- OPERATING INCOME (LOSS) 256,307 (7,618) (45,965) 712 203,435 ----------------------------------------------------------------- OTHER INCOME (DEDUCTIONS): Allowance for equity funds used during 5,411 - - - 5,411 construction Gain/(loss) on sale of assets - net 445 - 20,138 - 20,583 Miscellaneous - net 5,254 10,636 4,940 (879) 19,952 ----------------------------------------------------------------- Total 11,111 10,636 25,078 (879) 45,946 ----------------------------------------------------------------- INTEREST AND OTHER CHARGES: Interest on long-term debt 121,338 - 1,192 - 122,531 Other interest - net 3,679 3,403 1,626 (167) 8,541 Distributions on preferred securities 4,709 - - - 4,709 of subsidiaries Allowance for borrowed funds used during (4,479) - - - (4,479) construction ----------------------------------------------------------------- Total 125,247 3,403 2,818 (167) 131,302 ----------------------------------------------------------------- INCOME (LOSS) BEFORE INCOME TAXES 142,170 (385) (23,705) - 118,079 INCOME TAXES 59,594 1,158 (15,579) - 45,173 ----------------------------------------------------------------- CONSOLIDATED NET INCOME (LOSS) 82,576 (1,543) (8,127) - 72,906 PREFERRED DIVIDEND REQUIREMENTS OF SUBSIDIARIES AND OTHER 10,725 - - - 10,725 ----------------------------------------------------------------- EARNINGS (LOSS) APPLICABLE TO COMMON STOCK $ 71,851 $ (1,543) $ (8,127) $ - $ 62,181 ================================================================= EARNINGS PER AVERAGE COMMON SHARE $0.29 ($0.01) ($0.03) $0.25 AVERAGE NUMBER OF COMMON SHARES OUTSTANDING 246,579,198 *Totals may not foot due to rounding.
Entergy Corporation Consolidating Income Statement Year to Date March 31, 2000 vs 1999 Increase/(Decrease) (Dollars in thousands) (Unaudited) U.S. Parent & Competitive Eliminations Consolidated Utilities Other Businesses OPERATING REVENUES: Domestic electric $ 114,887 $ - $ - $ (573) $ 114,313 Natural gas 8,150 - - - 8,150 Steam products (8,296) - - - (8,296) Competitive businesses - 5,762 59,712 (8,071) 57,403 ------------------------------------------------------------------ Total 114,741 5,762 59,712 (8,644) 171,570 ------------------------------------------------------------------ OPERATING EXPENSES: Operating and Maintenance: Fuel, fuel related expenses, 74,593 - 20,188 - 94,781 and gas purchased for resale Purchased power 54,893 - (50,899) (8,250) (4,255) Nuclear refueling outage expenses (1,128) - - - (1,128) Other operation and maintenance (17,582) 13,096 14,393 (128) 9,779 Decommissioning (1,736) - - - (1,736) Taxes other than income taxes (4,331) 54 827 - (3,452) ------------------------------------------------------------------ Total 104,708 13,149 (15,492) (8,378) 93,989 ------------------------------------------------------------------ EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION, AND AMORTIZATION 10,033 (7,387) 75,203 (267) 77,581 ------------------------------------------------------------------ DEPRECIATION AND AMORTIZATION: Depreciation and amortization (3,736) 167 (2,522) - (6,091) Other regulatory charges (credits) 1,519 - - - 1,519 Amortization of rate deferrals (1,017) - - - (1,017) ------------------------------------------------------------------ Total (3,233) 167 (2,522) - (5,589) ------------------------------------------------------------------ OPERATING INCOME (LOSS) 13,266 (7,554) 77,726 (267) 83,170 ------------------------------------------------------------------ OTHER INCOME (DEDUCTIONS): Allowance for equity funds used 2,284 - - - 2,284 during construction Gain/(loss) on sale of assets - net 69 3 (20,138) - (20,066) Miscellaneous - net (856) 10,155 2,549 (2,820) 9,029 ------------------------------------------------------------------ Total 1,496 10,158 (17,589) (2,820) (8,753) ------------------------------------------------------------------ INTEREST AND OTHER CHARGES: Interest on long-term debt (6,996) - (1,066) (810) (8,872) Other interest - net 7,008 1,244 5,766 (2,276) 11,742 Distributions on preferred securities 0 - - - 0 of subsidiaries Allowance for borrowed funds used (1,609) - - - (1,609) during construction ------------------------------------------------------------------ Total (1,597) 1,244 4,699 (3,086) 1,261 ------------------------------------------------------------------ INCOME (LOSS) BEFORE INCOME TAXES 16,359 1,360 55,437 - 73,156 INCOME TAXES 11,597 (624) 26,679 - 37,652 ------------------------------------------------------------------ CONSOLIDATED NET INCOME (LOSS) 4,762 1,983 28,758 - 35,504 PREFERRED DIVIDEND REQUIREMENTS OF SUBSIDIARIES AND OTHER (1,175) - - - (1,175) ------------------------------------------------------------------ EARNINGS (LOSS) APPLICABLE TO COMMON STOCK $ 5,937 $ 1,983 $ 28,758 $ - $ 36,679 ================================================================== EARNINGS PER AVERAGE COMMON SHARE $0.04 $0.01 $0.12 $0.17 *Totals may not foot due to rounding.
Entergy Corporation Consolidating Income Statement Twelve Months Ended March 31, 2000 (Dollars in thousands) (Unaudited) U.S. Parent & Competitive Eliminations Consolidated Utilities Other Businesses OPERATING REVENUES: Domestic electric $ 6,403,303 $ - $ - $ (17,575) $ 6,385,728 Natural gas 118,520 - - - 118,520 Steam products 7,541 - - - 7,541 Competitive businesses - 5,762 2,457,719 (24,885) 2,438,595 ---------------------------------------------------------------------- Total 6,529,364 5,762 2,457,719 (42,460) 8,950,384 ---------------------------------------------------------------------- OPERATING EXPENSES: Operating and Maintenance: Fuel, fuel related expenses, and 1,746,668 - 431,707 (719) 2,177,656 gas purchased for resale Purchased power 748,095 - 1,720,229 (30,096) 2,438,228 Nuclear refueling outage expenses 74,928 - - - 74,928 Other operation and maintenance 1,387,626 72,034 274,673 (13,424) 1,720,909 Decommissioning 44,252 - - - 44,252 Taxes other than income taxes 330,503 641 4,689 - 335,834 ---------------------------------------------------------------------- Total 4,332,072 72,675 2,431,299 (44,240) 6,791,807 ---------------------------------------------------------------------- EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION, AND AMORTIZATION 2,197,292 (66,913) 26,420 1,780 2,158,577 ---------------------------------------------------------------------- DEPRECIATION AND AMORTIZATION: Depreciation and amortization 681,984 1,605 8,727 - 692,316 Other regulatory charges (credits) 9,266 - - - 9,266 Amortization of rate deferrals 122,170 - - - 122,170 ---------------------------------------------------------------------- Total 813,421 1,605 8,727 - 823,752 ---------------------------------------------------------------------- OPERATING INCOME (LOSS) 1,383,871 (68,519) 17,693 1,780 1,334,825 ---------------------------------------------------------------------- OTHER INCOME (DEDUCTIONS): Allowance for equity funds used 31,575 - - - 31,575 during construction Gain/(loss) on sale of assets - net 2,115 (830) 50,574 - 51,859 Miscellaneous - net 38,717 49,577 83,565 (8,406) 163,453 ---------------------------------------------------------------------- Total 72,407 48,747 134,139 (8,406) 246,887 ---------------------------------------------------------------------- INTEREST AND OTHER CHARGES: Interest on long-term debt 467,649 - 1,166 (810) 468,005 Other interest - net 72,653 7,388 19,989 (5,816) 94,213 Distributions on preferred securities 18,838 - - - 18,838 of subsidiaries Allowance for borrowed funds used (24,193) - - - (24,194) during construction ---------------------------------------------------------------------- Total 534,946 7,388 21,155 (6,626) 556,862 ---------------------------------------------------------------------- INCOME (LOSS) BEFORE INCOME TAXES 921,332 (27,159) 130,677 - 1,024,850 INCOME TAXES 363,045 32,367 (1,092) - 394,320 ---------------------------------------------------------------------- CONSOLIDATED NET INCOME (LOSS) 558,286 (59,526) 131,769 - 630,530 PREFERRED DIVIDEND REQUIREMENTS OF SUBSIDIARIES AND OTHER 41,392 - - - 41,392 ---------------------------------------------------------------------- EARNINGS (LOSS) APPLICABLE TO COMMON STOCK $ 516,894 $(59,526) $ 131,769 $ - $ 589,138 ====================================================================== EARNINGS PER AVERAGE COMMON SHARE $2.13 ($0.24) $0.54 $2.43 AVERAGE NUMBER OF COMMON SHARES OUTSTANDING 242,652,359 *Totals may not foot due to rounding.
Entergy Corporation Consolidating Income Statement Twelve Months Ended March 31, 1999 (Dollars in thousands) (Unaudited) U.S. Parent & Competitive Eliminations Consolidated Utilities Other Businesses OPERATING REVENUES: Domestic electric $ 6,070,476 $ - $ - $ (15,623) $ 6,054,853 Natural gas 102,661 - - - 102,661 Steam products 43,063 - - - 43,063 Competitive businesses - - 4,640,663 (19,638) 4,621,025 --------------------------------------------------------------------- Total 6,216,200 - 4,640,663 (35,261) 10,821,602 --------------------------------------------------------------------- OPERATING EXPENSES: Operating and Maintenance: Fuel, fuel related expenses, and 1,551,750 - 209,808 (1,520) 1,760,038 gas purchased for resale Purchased power 558,963 - 3,644,533 (22,926) 4,180,569 Nuclear refueling outage expenses 80,896 - - - 80,896 Other operation and maintenance 1,337,257 49,108 498,480 (12,861) 1,871,984 Decommissioning 47,401 - - - 47,401 Taxes other than income taxes 335,810 1,159 12,458 - 349,427 --------------------------------------------------------------------- Total 3,912,077 50,267 4,365,279 (37,307) 8,290,315 --------------------------------------------------------------------- EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION, AND AMORTIZATION 2,304,123 (50,267) 275,384 2,046 2,531,287 --------------------------------------------------------------------- DEPRECIATION AND AMORTIZATION: Depreciation and amortization 716,593 2,068 165,358 - 884,019 Other regulatory charges (credits) 51,869 - - - 51,870 Amortization of rate deferrals 165,615 - - - 165,615 --------------------------------------------------------------------- Total 934,077 2,068 165,358 - 1,101,504 --------------------------------------------------------------------- OPERATING INCOME (LOSS) 1,370,046 (52,335) 110,026 2,046 1,429,783 --------------------------------------------------------------------- OTHER INCOME (DEDUCTIONS): Allowance for equity funds used 15,527 - - - 15,527 during construction Gain/(loss) on sale of assets - net 1,883 - 279,214 - 281,097 Miscellaneous - net 33,862 4,086 53,310 (2,834) 88,424 --------------------------------------------------------------------- Total 51,272 4,086 332,524 (2,834) 385,048 --------------------------------------------------------------------- INTEREST AND OTHER CHARGES: Interest on long-term debt 495,369 - 171,187 - 666,556 Other interest - net 33,663 14,958 15,653 (788) 63,486 Distributions on preferred securities 18,838 - 17,321 - 36,159 of subsidiaries Allowance for borrowed funds used (13,360) - - - (13,360) during construction --------------------------------------------------------------------- Total 534,510 14,958 204,161 (788) 752,841 --------------------------------------------------------------------- INCOME (LOSS) BEFORE INCOME TAXES 886,808 (63,207) 238,389 - 1,061,990 INCOME TAXES 339,737 2,871 (79,099) - 263,509 --------------------------------------------------------------------- CONSOLIDATED NET INCOME (LOSS) 547,071 (66,078) 317,488 - 798,481 PREFERRED DIVIDEND REQUIREMENTS OF SUBSIDIARIES AND OTHER 45,509 - - - 45,509 --------------------------------------------------------------------- EARNINGS (LOSS) APPLICABLE TO COMMON STOCK $ 501,562 $ (66,078) $ 317,488 $ - $ 752,972 ===================================================================== EARNINGS PER AVERAGE COMMON SHARE $2.03 ($0.27) $1.29 $3.05 AVERAGE NUMBER OF COMMON SHARES OUTSTANDING 246,558,908 *Totals may not foot due to rounding.
Entergy Corporation Consolidating Income Statement Twelve Months Ended March 31, 2000 vs 1999 Increase/(Decrease) (Dollars in thousands) (Unaudited) U.S. Parent & Competitive Eliminations Consolidated Utilities Other Businesses OPERATING REVENUES: Domestic electric $ 332,827 $ - $ - $ (1,952) $ 330,875 Natural gas 15,859 - - - 15,859 Steam products (35,522) - - - (35,522) Competitive businesses - 5,762 (2,182,944) (5,247) (2,182,430) ------------------------------------------------------------------ Total 313,163 5,762 (2,182,944) (7,199) (1,871,218) ------------------------------------------------------------------ OPERATING EXPENSES: Operating and Maintenance: Fuel, fuel related expenses, and 194,917 - 221,899 801 417,617 gas purchased for resale Purchased power 189,132 - (1,924,304) (7,170) (1,742,341) Nuclear refueling outage expenses (5,968) - - - (5,968) Other operation and maintenance 50,369 22,926 (223,807) (563) (151,075) Decommissioning (3,149) - - - (3,149) Taxes other than income taxes (5,307) (518) (7,769) - (13,593) ------------------------------------------------------------------ Total 419,995 22,408 (1,933,980) (6,933) (1,498,509) ------------------------------------------------------------------ EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION, AND AMORTIZATION (106,831) (16,646) (248,964) (266) (372,709) ------------------------------------------------------------------ DEPRECIATION AND AMORTIZATION: Depreciation and amortization (34,609) (463) (156,631) - (191,703) Other regulatory charges (credits) (42,603) - - - (42,603) Amortization of rate deferrals (43,445) - - - (43,445) ------------------------------------------------------------------ Total (120,657) (463) (156,631) - (277,751) ------------------------------------------------------------------ OPERATING INCOME (LOSS) 13,826 (16,184) (92,333) (266) (94,958) ------------------------------------------------------------------ OTHER INCOME (DEDUCTIONS): Allowance for equity funds used 16,047 - - - 16,047 during construction Gain/(loss) on sale of assets - net 233 (830) (228,640) - (229,237) Miscellaneous - net 4,855 45,491 30,255 (5,572) 75,029 ------------------------------------------------------------------ Total 21,134 44,661 (198,385) (5,572) (138,161) ------------------------------------------------------------------ INTEREST AND OTHER CHARGES: Interest on long-term debt (27,720) - (170,021) (810) (198,551) Other interest - net 38,990 (7,570) 4,336 (5,028) 30,727 Distributions on preferred securities (0) - (17,321) - (17,321) of subsidiaries Allowance for borrowed funds used (10,833) - - - (10,834) during construction ------------------------------------------------------------------ Total 437 (7,570) (183,006) (5,838) (195,979) ------------------------------------------------------------------ INCOME (LOSS) BEFORE INCOME TAXES 34,523 36,048 (107,712) - (37,140) INCOME TAXES 23,308 29,496 78,007 - 130,811 ------------------------------------------------------------------ CONSOLIDATED NET INCOME (LOSS) 11,215 6,552 (185,719) - (167,951) PREFERRED DIVIDEND REQUIREMENTS OF SUBSIDIARIES AND OTHER (4,117) - - - (4,117) ------------------------------------------------------------------ EARNINGS (LOSS) APPLICABLE TO COMMON STOCK $ 15,333 $ 6,552 $ (185,719) $ - $(163,834) ================================================================== EARNINGS PER AVERAGE COMMON SHARE $0.10 $0.03 ($0.75) ($0.62) *Totals may not foot due to rounding.
Entergy Corporation U.S. Utility Electric Energy Sales & Customers Year to Date March % % Weather 2000 1999 Reported Adjusted (Millions of kwh) ELECTRIC ENERGY SALES: Residential 6,512 6,417 1.5 0.7 Commercial 5,280 5,169 2.1 2.2 Governmental 587 589 (0.3) (0.3) Industrial 10,617 10,216 3.9 3.9 ------ ------ Total to Ultimate Customers 22,996 22,391 2.7 2.4 Wholesale 2,272 2,209 2.8 ------ ------ Total Sales 25,268 24,600 2.7 ====== ====== Twelve Months Ended March 2000 1999 % (Millions of kwh) ELECTRIC ENERGY SALES: Residential 30,726 31,112 (1.2) Commercial 23,886 23,518 1.6 Governmental 2,562 2,620 (2.2) Industrial 43,950 43,257 1.6 ------- ------- Total to Ultimate Customers 101,124 100,507 0.6 Wholesale 9,777 11,466 (14.7) ------- ------- Total Sales 110,901 111,973 (1.0) ======= ======= March 2000 1999 % ELECTRIC CUSTOMERS (YEAR TO DATE AVERAGE): Residential 2,195,536 2,167,336 1.3 Commercial 286,013 278,500 2.7 Governmental 14,219 13,866 2.5 Industrial 39,716 39,194 1.3 --------- --------- Total to Ultimate Customers 2,535,484 2,498,896 1.5 Wholesale 43 42 1.6 --------- --------- Total Sales 2,535,527 2,498,938 1.5 ========= =========
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