-----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, HgmCQenhr/yKQJskhNeDqahNRCS+xT3NLNXSlwxBGPSshWvsHH+hkAtryUiMn0kf f9AERonBu+KHh+zbdknOaQ== /in/edgar/work/20000728/0000065984-00-000072/0000065984-00-000072.txt : 20000921 0000065984-00-000072.hdr.sgml : 20000921 ACCESSION NUMBER: 0000065984-00-000072 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20000726 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 20000728 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ENTERGY CORP /DE/ CENTRAL INDEX KEY: 0000065984 STANDARD INDUSTRIAL CLASSIFICATION: [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: 681591 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 0001.txt 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) July 26, 2000 Commission Registrant, State of Incorporation, I.R.S. Employer File Number Address and Telephone Number Identification 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 July 26, 2000, Entergy Corporation ("Entergy") issued two 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. 99.4 Release, dated July 26, 2000, issued by Entergy. 99.5 Release, dated July 26, 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/ Nathan E. Langston Nathan E. Langston Vice President and Chief Accounting Officer Dated: July 27, 2000 EX-99 2 0002.txt [Letterhead of Entergy Corporation] Exhibit 99.4 NEWS RELEASE Date: July 26, 2000 For Release: Immediate Contact: Yolanda Pollard (News Media) 504-576-4190 ypollar@entergy.com Renae Conley (Investor Relations) 504-576-4947 econley@entergy.com ENTERGY REPORTS RECORD SECOND QUARTER EARNINGS New Orleans - Entergy Corporation (NYSE:ETR) today reported record second quarter 2000 consolidated earnings that were 28 percent higher than earnings in same period of 1999. Earnings per share from operations also set a second quarter record for the global energy company - following a record first quarter - and were up 36 percent over operational earnings in the second quarter of 1999. Entergy's second quarter 2000 earnings were $237.2 million, or $1.04 per share, compared with earnings of $199.8 million, or 81 cents per share, in second quarter 1999. On an operational basis, Entergy's earnings were $223.8 million, or 98 cents per share, in second quarter 2000, compared with $177.2 million, or 72 cents per share, in the year-earlier period. Both Entergy's regulated utility and its competitive businesses contributed to higher earnings. Hotter-than-normal weather, which boosted sales of electricity in both 1999 and 2000, accounted for 2 cents of the increase. "With two consecutive record-setting quarters, we are well on our way to a year of outstanding execution and earnings," said J. Wayne Leonard, Entergy's chief executive officer. "The core utility business continues to contribute solid earnings, while the competitive businesses are producing strong earnings growth. In the second quarter, we laid the groundwork for sustained earnings growth from our competitive businesses. Key events announced in the second quarter included an energy commodity venture with Koch Industries, a joint venture with The Shaw Group to construct electric power plants, and a memorandum of understanding with Framatome Technologies to assist U.S. nuclear plant operators in securing renewal of their operating licenses." Utility Operations For second quarter 2000, U.S. utility operations reported earnings of $178.4 million, or 78 cents per share, compared with $164.9 million, or 67 cents per share, in second quarter 1999. Hot weather had a slightly more favorable impact on earnings in second quarter 2000, contributing 10 cents per share, compared with 8 cents in the second quarter of 1999. Other factors in the increase in earnings per share were sales growth and the impact of Entergy's share repurchase program, which reduced the total number of shares outstanding between the 1999 and 2000 periods. These factors were partially offset by increased operating and maintenance expense in generating plants and distribution facilities where the company took steps to enhance reliability in preparation for peak summer demand. For the second quarter of 2000, total retail sales were 24.4 million kilowatt hours (kWh), compared with 24.0 million kWh for the same period in 1999. "Entergy employees are providing better service every day to our customers," added Leonard. "In the second quarter, we achieved continued improvement in reliability demonstrating how our commitment to add more people on the front lines and to upgrade the electric and gas delivery systems is now paying off for customers. We expanded the capacity and output of our generating plants to help ensure that we can meet the demands of our customers during the summer heat. And we continued on track to achieve the safest year ever in terms of lost-time accidents." Competitive Businesses In second quarter 2000, Entergy's competitive businesses earned $44.6 million, or 20 cents per share, before adjusting for the effect of special items. Operational earnings for the quarter totaled $31.3 million, or 14 cents per share, compared with $22.4 million, or 9 cents per share, in second quarter 1999. This increase was driven by two factors that were not present in the second quarter of 1999. First, the Pilgrim Nuclear Station in Plymouth, Massachusetts - which was acquired in July 1999 - had an excellent operating quarter. Second, Entergy received $52 million in liquidated damages from Raytheon, the construction contractor on the Saltend project, as a result of the construction delay at the Saltend generating plant, which Entergy Wholesale Operations (EWO) is developing in the United Kingdom. Of this amount, $32 million was recorded as a contribution to earnings as if the plant had been operating on its original completion schedule of January 2000. The only special item reflected in second quarter results this quarter is associated with the competitive businesses, where Entergy recorded a gain of 6 cents per share on the sale of the Freestone generating plant that EWO was developing in Texas. Year-over-year improvement in both operational and as- reported earnings per share for the quarter reflects the fact that Entergy has fewer shares outstanding this year as a result of the share repurchase program initiated in July 1999. Share Repurchase Program During second quarter 2000, 8.8 million shares were repurchased under Entergy's share repurchase program at a total cost of $233 million. Since the program was initiated, through June 30, 2000, $618 million of the $750 million authorized by the Board has been used to repurchase 24.1 million shares of Entergy common stock. The program is expected to continue until the Board-authorized amount is fully spent. The specific timing of the completion of the program will depend on market conditions. Outlook "Financial results were very strong in the second quarter," said C. John Wilder, Entergy's chief financial officer. "Solid performance at the utility drove earnings growth well beyond the impact of favorable weather, while the competitive businesses contributed over 14 % percent of total operational earnings. Based on the strong first half of the year, we have increased our 2000 earnings target to $2.55 to $2.65 per share up from $2.35 to $2.45 - an 8 % percent increase, and 18 to 22 % percent above 1999 operational results." Wilder added, "We are confident that 2000 will be a record year in meeting our operational and financial objectives, and that it will provide a solid foundation for continued earnings growth, consistent with our long-term guidance of 8 to 10 percent." 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. -30- 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. ENTERGY CORPORATION Earnings at a glance Second Quarter 2000 1999 % Operating Revenues $2,137.79 $2,316.40 (7.7) Earnings $237.19 $199.78 18.7 Earnings per share* $1.04 $0.81 28.4 *Includes Special Items (EPS) : Gain on sale of Freestone Project $ 0.06 - Change in unbilled revenue estimate - 0.13 SERI refund adjustments - (0.08) Regulatory & reserve adjustments - (0.06) Foreign tax benefits - 0.07 Gain on sale of Hyperion - 0.03 ------ ----- Total $ 0.06 $0.09 ------ ----- Year to Date 2000 1999 % Operating Revenues $3,949.28 $3,956.33 (0.02) Earnings $336.05 $261.96 28.3 Earnings per share* $1.45 $1.06 36.8 *Includes Special Items (EPS) : Gain on sale of Freestone Project $ 0.06 - Change in unbilled revenue estimate - $ 0.13 SERI refund adjustments - (0.08) Regulatory & reserve adjustments (0.07) (0.06) Foreign tax benefits - 0.10 Gain on sale of Hyperion - 0.03 CitiPower purchase price adjustment - 0.02 EPG write-off of start-up costs per new accounting standard - (0.01) ------ ----- Total $(0.01) $0.13 ------ ----- Note - dollars in millions except per share amounts, which are actual.
Entergy Corporation Consolidated Income Statement Three Months Ended June 30 (in thousands) 2000 1999 % Inc/(Dec) (unaudited) Operating Revenues: Domestic electric $1,664,688 $1,613,136 3.2 Natural gas 28,396 22,149 28.2 Steam products - 7,254 - Competitive businesses 444,704 673,865 (34.0) ---------- ---------- Total 2,137,788 2,316,404 (7.7) ---------- ---------- Operating Expenses: Operation and maintenance: Fuel, fuel-related expenses, and gas purchased for resale 464,436 490,871 (5.4) Purchased power 502,521 676,827 (25.8) Nuclear refueling outage expenses 16,629 17,135 (3.0) Other operation and maintenance 450,223 410,707 9.6 Decommissioning 6,169 10,758 (42.7) Taxes other than income taxes 83,540 83,053 0.6 Depreciation and amortization 178,749 176,707 1.2 Other regulatory charges (credits) - net (5,900) (2,372) 148.7 Amortization of rate deferrals 7,883 88,767 (91.1) ---------- ---------- Total 1,704,250 1,952,453 (12.7) ---------- ---------- Operating Income 433,538 363,951 19.1 ---------- ---------- Other Income (Deductions): Allowance for equity funds used during construction 8,041 7,348 9.4 Gain on sales of assets - net 21,057 40,718 (48.3) Miscellaneous - net 73,651 40,064 83.8 ---------- ---------- Total 102,749 88,130 16.6 ---------- ---------- Interest and Other Charges: Interest on long-term debt 118,462 120,164 (1.4) Other interest - net 23,369 36,942 (36.7) Dividends on preferred securities of subsidiaries 4,709 4,710 - Allowance for borrowed funds used during construction (5,889) (5,926) (0.6) ---------- ---------- Total 140,651 155,890 (9.8) ---------- ---------- Income Before Income Taxes 395,636 296,191 33.6 Income Taxes 149,863 86,433 73.4 ---------- ---------- Consolidated Net Income 245,773 209,758 17.2 Preferred dividend requirements of subsidiaries and other 8,581 9,981 (14.0) ---------- ---------- Earnings Applicable to Common Stock $237,192 $199,777 18.7 ========== ========== Earnings Per Average Common Share $1.04 $0.81 28.4 Average Number of Common Shares Outstanding 228,097,385 246,795,710
Entergy Corporation Consolidated Income Statement Six Months Ended June 30 (in thousands) 2000 1999 % Inc/(Dec) (unaudited) Operating Revenues: Domestic electric $3,017,570 $2,851,719 5.8 Natural gas 74,292 59,880 24.1 Steam products - 15,550 (100.0) Competitive businesses 857,418 1,029,177 (16.7) ---------- ---------- Total 3,949,280 3,956,326 (0.2) ---------- ---------- Operating Expenses: Operation and maintenance: Fuel, fuel-related expenses, and gas purchased for resale 962,190 893,844 7.6 Purchased power 872,064 1,050,626 (17.0) Nuclear refueling outage expenses 35,186 36,820 (4.4) Other operation and maintenance 827,634 778,338 6.3 Decommissioning 17,106 23,432 (27.0) Taxes other than income taxes 163,158 166,121 (1.8) Depreciation and amortization 357,025 361,549 (1.3) Other regulatory charges (credits) - net (20,506) (18,970) 8.1 Amortization of rate deferrals 15,279 97,180 (84.3) ---------- ---------- Total 3,229,136 3,388,940 (4.7) ---------- ---------- Operating Income 720,144 567,386 26.9 ---------- ---------- Other Income (Deductions): Allowance for equity funds used during construction 15,735 12,759 23.3 Gain on sales of assets - net 21,574 61,301 (64.8) Miscellaneous - net 102,633 60,016 71.0 ---------- ---------- Total 139,942 134,076 4.4 ---------- ---------- Interest and Other Charges: Interest on long-term debt 232,121 242,695 (4.4) Other interest - net 43,652 45,483 (4.0) Dividends on preferred securities of subsidiaries 9,419 9,419 0.0 Allowance for borrowed funds used during construction (11,977) (10,405) 15.1 ---------- ---------- Total 273,215 287,192 (4.9) ---------- ---------- Income Before Income Taxes 586,871 414,270 41.7 Income Taxes 232,688 131,606 76.8 ---------- ---------- Consolidated Net Income 354,183 282,664 25.3 Preferred dividend requirements of subsidiaries and other 18,131 20,706 (12.4) ---------- ---------- Earnings Applicable to Common Stock $336,052 $261,958 28.3 ========== ========== Earnings Per Average Common Share $1.45 $1.06 36.8 Average Number of Common Shares Outstanding 232,352,915 246,688,052
Entergy Corporation Consolidated Income Statement Twelve Months Ended June 30 (in thousands) 2000 1999 % Inc/(Dec) (unaudited) Operating Revenues: Domestic electric $6,437,280 $6,165,632 4.4 Natural gas 124,766 100,622 24.0 Steam products 286 38,192 (99.3) Competitive businesses 2,203,849 4,324,746 (49.0) ---------- ---------- Total 8,766,181 10,629,192 (17.5) ---------- ---------- Operating Expenses: Operation and maintenance: Fuel, fuel-related expenses, and gas purchased for resale 2,155,987 1,923,055 12.1 Purchased power 2,263,923 4,049,132 (44.1) Nuclear refueling outage expenses 74,422 77,016 (3.4) Other operation and maintenance 1,750,073 1,772,185 (1.2) Decommissioning 39,662 46,233 (14.2) Taxes other than income taxes 336,320 342,162 (1.7) Depreciation and amortization 694,358 826,130 (16.0) Other regulatory charges (credits) - net 4,898 75,949 (93.6) Amortization of rate deferrals 42,126 186,306 (77.4) ---------- ---------- Total 7,361,769 9,298,168 (20.8) ---------- ---------- Operating Income 1,404,412 1,331,024 5.5 ---------- ---------- Other Income (Deductions): Allowance for equity funds used during construction 32,268 19,601 64.6 Gain on sales of assets - net 32,199 323,121 (90.0) Miscellaneous - net 197,040 98,974 99.1 ---------- ---------- Total 261,507 441,696 (40.8) ---------- ---------- Interest and Other Charges: Interest on long-term debt 466,302 595,410 (21.7) Other interest - net 80,640 86,375 (6.6) Dividends on preferred securities of subsidiaries 18,838 31,919 (41.0) Allowance for borrowed funds used during construction (24,157) (16,604) 45.5 ---------- ---------- Total 541,623 697,100 (22.3) ---------- ---------- Income Before Income Taxes 1,124,296 1,075,620 4.5 Income Taxes 457,752 283,360 61.5 ---------- ---------- Consolidated Net Income 666,544 792,260 (15.9) Preferred dividend requirements of subsidiaries and other 39,993 43,786 (8.7) ---------- ---------- Earnings Applicable to Common Stock $626,551 $748,474 (16.3) ========== ========== Earnings Per Average Common Share $2.63 $3.03 (13.2) Average Number of Common Shares Outstanding 238,003,322 246,644,571
Entergy Corporation U.S. Utility Electric Energy Sales & Customers Three Months Ended June 2000 1999 % (Millions of kWh) Electric Energy Sales: Residential 6,857 6,850 0.1 Commercial 5,880 5,741 2.4 Governmental 635 623 1.8 Industrial 11,021 10,827 1.8 ------- ------- Total to Ultimate Customers 24,393 24,041 1.5 Wholesale 2,523 2,095 20.4 ------- ------- Total Sales 26,916 26,136 3.0 ======= ======= Six Months Ended June 2000 1999 % (Millions of kWh) Electric Energy Sales: Residential 13,369 13,267 0.8 Commercial 11,160 10,910 2.3 Governmental 1,222 1,212 0.8 Industrial 21,638 21,043 2.8 ------- ------- Total to Ultimate Customers 47,389 46,432 2.1 Wholesale 4,795 4,304 11.4 ------- ------- Total Sales 52,184 50,736 2.9 ======= ======= Twelve Months Ended June 2000 1999 % (Millions of kWh) Electric Energy Sales: Residential 30,733 31,265 (1.7) Commercial 24,025 23,762 1.1 Governmental 2,573 2,574 (0.1) Industrial 44,145 43,230 2.1 -------- -------- Total to Ultimate Customers 101,476 100,831 0.6 Wholesale 10,205 10,916 (6.5) -------- -------- Total Sales 111,681 111,747 (0.1) ======== ======== June 2000 1999 % Electric Customers (Year to date average): Residential 2,199,803 2,172,952 1.2 Commercial 287,125 279,819 2.6 Governmental 14,257 13,907 2.5 Industrial 40,477 40,316 0.4 ---------- ---------- Total to Ultimate Customers 2,541,661 2,506,994 1.4 Wholesale 40 42 (4.7) ---------- ---------- Total Customers 2,541,701 2,507,036 1.4 ========== ========== EX-99 3 0003.txt Exhibit 99.5 For further information: E. Renae Conley, VP, Investor Relations Phone 504/576-4947, Fax - 2897 Econley@entergy.com July 26, 2000 ENTERGY REPORTS ANOTHER QUARTER OF RECORD EARNINGS, UP 36% OVER 1999 NEW ORLEANS - Entergy Corporation announced second quarter 2000 consolidated earnings per share of $1.04, compared with $0.81 in 1999. On an operational basis, Entergy earned $0.98 per share, up 36% when compared with $0.72 in 1999. The increase was driven by improved results in all of Entergy's businesses. Earnings per share from operations set a second quarter record for the company - following a record first quarter. "With two consecutive record-setting quarters, we are well on our way to a year of outstanding execution and earnings," said J. Wayne Leonard, Entergy's chief executive officer. "The core utility business continues to contribute solid earnings, while the competitive businesses are producing strong earnings growth. In the second quarter, we laid the groundwork for sustained earnings growth from our competitive businesses. Key events announced in the second quarter included an energy commodity venture with Koch Industries, a joint venture with The Shaw Group to construct electric power plants, and a memorandum of understanding with Framatome Technologies to assist U.S. nuclear plant operators in securing renewal of their operating licenses." Table 1 provides a comparative summary of earnings per share for the second quarter and year-to-date 2000.
- ---------------------------------------------------------------------------- Table 1: Entergy Corporation Consolidated Results Second Quarter and Year-to-Date 2000 vs. 1999 - ---------------------------------------------------------------------------- (Per share in U.S. $) Second Quarter Year-to-Date -------------- ------------ 2000 1999 Change 2000 1999 Change ---------------------------------------- As Reported U.S. Utility 0.78 0.67 0.11 1.10 0.96 0.14 Parent & Other 0.06 (0.05) 0.11 0.07 (0.06) 0.13 Competitive Businesses 0.20 0.19 0.01 0.28 0.16 0.12 --------------------------------------- Consolidated Earnings 1.04 0.81 0.23 1.45 1.06 0.39 Less Special Items U.S. Utility - (0.01) 0.01 (0.07) (0.01) (0.06) Parent & Other - - - - - - Competitive Businesses 0.06 0.10 (0.04) 0.06 0.14 (0.08) --------------------------------------- Total 0.06 0.09 (0.03) (0.01) 0.13 (0.14) Operational U.S. Utility 0.78 0.68 0.10 1.17 0.97 0.20 Parent & Other 0.06 (0.05) 0.11 0.07 (0.06) 0.13 Competitive Businesses 0.14 0.09 0.05 0.22 0.02 0.20 --------------------------------------- Consolidated Earnings 0.98 0.72 0.26 1.46 0.93 0.53 Weather Impact 0.10 0.08 0.02 0.02 - 0.02 Consolidated Operational Earnings 0.88 0.64 0.24 1.44 0.93 0.51 Excluding Weather - ----------------------------------------------------------------------------
Tables 2 and 3 provide second quarter and year-to-date 2000 vs. 1999 reported earnings variance analyses for "U.S. Utility, Parent & Other," "Competitive Businesses," and "Consolidated." - ---------------------------------------------------------------------------- Table 2: Entergy Corporation Reported Earnings Per Share Variance Analysis Second Quarter 2000 vs. 1999 - ---------------------------------------------------------------------------- (Per share in U.S. $) U.S. Utility and Competitive Parent & Other Businesses Consolidated ---------------- ----------- ------------ 1999 earnings 0.62 0.19 0.81 Net Revenue 0.13 (a) 0.14 (b) 0.27 Miscellaneous - net 0.02 0.07 (c) 0.09 Share repurchase 0.06 0.02 0.08 Interest and other charges 0.05 (d) (0.01) 0.04 Decommissioning 0.01 - 0.01 Preferred dividend requirements 0.01 - 0.01 Depreciation/amortization (0.01) - (0.01) Gain on sale of assets - (0.04) (e) (0.04) Other O&M (0.05) (f) (0.05) (g) (0.10) Income taxes - other - (h) (0.12) (h) (0.12) ----- ----- ----- 2000 earnings 0.84 0.20 1.04 ----- ----- ----- - ---------------------------------------------------------------------------- - ---------------------------------------------------------------------------- Table 3: Entergy Corporation Reported Earnings Per Share Variance Analysis Year-to-Date 2000 vs. 1999 - ---------------------------------------------------------------------------- (Per share in U.S. $) U.S. Utility and Competitive Parent & Other Businesses Consolidated ---------------- ----------- ------------ 1999 earnings 0.90 0.16 1.06 Net Revenue 0.10 (a) 0.36 (b) 0.46 Miscellaneous - net 0.04 0.07 (c) 0.11 Share repurchase 0.06 0.02 0.08 Interest and other charges 0.06 (d) (0.02) 0.04 Decommissioning 0.02 - 0.02 Taxes other than income taxes 0.01 - 0.01 Depreciation/amortization - 0.01 0.01 Preferred dividend requirements 0.01 - 0.01 Gain on sale of assets - (0.06) (e) (0.06) Other O&M (0.04) (f) (0.09) (g) (0.13) Income taxes - other 0.01 (h) (0.17) (h) (0.16) 2000 earnings 1.17 0.28 1.45 - ---------------------------------------------------------------------------- ________________ (a) Net revenue increases in 2000 were a result of strong sales growth and hotter than normal weather in the second quarter, increasing earnings per share by $0.03 and $0.06 for the quarter and year-to-date, respectively. 2000 net revenue was also up over 1999 due to two prior year special items: a $(0.06) per share regulatory and reserve adjustment and a $(0.03) per share SERI refund adjustment. 2000 year-to-date net revenue was unfavorably impacted by a $(0.07) regulatory and reserve special item adjustment in the first quarter. Utility Net Revenue Variance Analysis, 2000 vs. 1999 ($ EPS) Second Quarter Year-to-Date Weather 0.02 Weather 0.02 Sales growth/pricing 0.01 Sales growth/pricing 0.04 Special items 0.09 Special items 0.02 Other 0.01 Other 0.02 Total 0.13 Total 0.10 (b) Net revenue increased in 2000 as a result of Pilgrim operations (acquired in July 1999), contributing $0.14 and $0.27 per share for the quarter and year-to-date, respectively. Year-to-date 2000 net revenue also increased due to trading operations, up $0.12 per share over 1999. (c) Miscellaneous-net increased $0.10 in second quarter 2000 from liquidated damages received in compensation for lost earnings from operations of EWO's delayed Saltend plant in the U.K. (d) Interest & other charges decreased in 2000 primarily as a result of a 1999 interest expense adjustment of ($0.05) per share recorded for the pending refund at SERI. (e) Gain on sale of assets in 2000 decreased as a result of prior year gains of $0.07 per share on the sale of Edesur, $0.03 per share on the sale of Hyperion, and $0.02 per share CitiPower purchase price adjustment, offset by the current quarter's gain of $0.06 per share on the sale of the Freestone project in Texas. (f) Other O&M increased in 2000 primarily as a result of increased plant- related expenses and reliability spending. (g) Other O&M increased in 2000 primarily as a result of Pilgrim operations offset by lower O&M resulting from retail business divestitures in 1999. (h) Income statement line items are tax-affected at the statutory rate. Differences between the statutory and effective rates are reflected in the income taxes - other line. Income taxes - other at the Competitive Businesses were affected by foreign tax credits taken in 1999. Quarterly Overview Second quarter 2000 revenues were down 8% overall compared with 1999 due to power trading operations, which had lower volumes in 2000 than in 1999. At the utility, electric revenues increased 3% in second quarter 2000, driven by favorable weather, sales growth, and increased fuel revenues. Excluding trading, revenues for the competitive businesses were up sharply because of operations at the Pilgrim plant, which was acquired in July 1999. For the consolidated company, second quarter 2000 fuel expenses were down 5% from 1999, due to lower fuel expenses in the trading business, partially offset by higher fuel costs at the utility due to the rise in natural gas prices. Purchased power was down 26% overall due to trading operations. Purchased power at the utility, however, increased as a result of higher prices in 2000 and plant maintenance outages. Other O&M increased 10% overall in 2000, due to Pilgrim operations at the competitive businesses and maintenance outages at the utility. Operating income increased 19% in the second quarter of 2000, primarily as a result of the competitive businesses' improved operations. Other income increased 17% in the second quarter of 2000. The gain on sale of assets was lower in 2000, as 1999's second quarter included the sales of Edesur and Hyperion. This was partially offset by a gain from the sale of the Freestone plant in 2000. Miscellaneous net increased in 2000 as a result of the liquidated damages received due to delayed construction of the Saltend plant in the U.K. Interest expenses were lower by 10% in 2000, primarily as a result of the SERI refund adjustment made in 1999, which was identified as a special item. The effective tax rate was 37.9% in second quarter 2000, higher than 1999's rate of 29.2%, due to foreign tax credits identified as a special item in 1999. U.S. Utility In the second quarter of 2000, utility operational earnings were $0.78 per share, 15% higher than second quarter 1999's total of $0.68. Weather was more favorable in 2000, contributing $0.10 per share to second quarter earnings compared with $0.08 in 1999. Second quarter 2000 earnings per share were also helped by sales growth of 1.1% on a weather-adjusted volume basis (see appendix), special item regulatory reserves recorded in the prior period and fewer outstanding shares due to the share repurchase program. Partially offsetting these are special item adjustments for a change in the calculation of unbilled revenues reported in the second quarter of 1999 and current period increases in O&M spending on various reliability initiatives to prepare for summer peak demand. Parent & Other Parent & Other earnings per share were $0.06 in second quarter 2000, compared with a loss of $(0.05) in 1999. While investment income was the same as last year at $0.04 per share, 2000 results benefited from lower O&M expenses at the parent, shifting of the Gulf States merger goodwill amortization from parent to the utility, and telecommunications earnings. Competitive Businesses On an as reported basis, the competitive businesses earned $0.20 per share in the second quarter of 2000, compared with $0.19 in the same period of 1999. Second quarter 2000 results include a $0.06 per share gain from Entergy Wholesale Operation's (EWO) sale of the Freestone project in Texas. This gain has been identified as a special item (see Table 5). On an operational basis, second quarter 2000 earnings per share from the competitive businesses were $0.14, 56% higher than the $0.09 total in 1999. EWO earned $0.09 per share in 2000, comprised primarily of $0.10 per share for liquidated damages for delayed construction of the Saltend project and $0.02 from trading operations. On a comparative basis, EWO's 2000 operational earnings contribution for the second quarter was flat to 1999, which included a $0.07 gain from the sale of the Edesur project in Argentina. Entergy Nuclear earned $0.05 per share in the second quarter of 2000, compared with zero earnings in the same period of 1999 as a result of continued strong performance at the Pilgrim Nuclear Power Station. Table 4 provides a 2000 vs. 1999 comparison of contributions by business for the second quarter and year-to-date, on both as reported and operational bases. - ---------------------------------------------------------------------------- Table 4: Competitive Businesses Contributions to Earnings Per Share Second Quarter and Year-to-Date 2000 vs. 1999 - ---------------------------------------------------------------------------- (Per share in U.S. $) Second Quarter Year-to-Date -------------- ------------ 2000 1999 $ Change 2000 1999 $ Change -------------------------------------------- As Reported Entergy Wholesale Operations 0.15 0.09 0.06 0.18 0.02 0.16 Entergy Nuclear 0.05 - 0.05 0.10 - 0.10 Divested Businesses - 0.10 (0.10) - 0.14 (0.14) ----------------------------------------- Total 0.20 0.19 0.01 0.28 0.16 0.12 Less Special Items Entergy Wholesale Operations 0.06 - 0.06 0.06 (0.01) 0.07 Entergy Nuclear - - - - - - Divested Businesses - 0.10 (0.10) - 0.15 (0.15) ----------------------------------------- Total 0.06 0.10 (0.04) 0.06 0.14 (0.08) Operational Entergy Wholesale Operations 0.09 0.09 - 0.12 0.03 0.09 Entergy Nuclear 0.05 - 0.05 0.10 - 0.10 Divested Businesses - - - - (0.01) 0.01 ----------------------------------------- Total 0.14 0.09 0.05 0.22 0.02 0.20 - ---------------------------------------------------------------------------- Table 5 lists special items by business for the second quarter and year-to- date for 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 identify separately the earnings impact of special events in order to report solely the results of the company's ongoing operations.
- ---------------------------------------------------------------------------- Table 5: Entergy Corporation Special Items (Shown as Positive / (Negative) Impact on Earnings Per Share) Second Quarter and Year-to-Date 2000 vs. 1999 - ---------------------------------------------------------------------------- (Per share in U.S. $) Second Quarter Year-to-Date -------------- ------------ 2000 1999 Change 2000 1999 Change ------------------------------------------ U.S. Utility Special Items Change in unbilled revenue estimate 0.13 (0.13) 0.13 (0.13) SERI refund adjustments (0.08) 0.08 (0.08) 0.08 Regulatory and reserve adjustments (0.06) 0.06 (0.7) (i) (0.06) (0.01) ----------------------------------------- Total (0.01) 0.01 (0.7) (0.01) (0.06) Competitive Businesses Special Items EWO - Gain on sale of Freestone Project 0.06 0.06 0.06 0.06 Divested Businesses - Foreign tax benefits 0.07 (0.07) 0.10 (0.10) Divested Businesses - Gain on sale of Hyperion 0.03 (0.03) 0.03 (0.03) Divested Businesses - CitiPower purchase price 0.02 (0.02) adjustment EWO - Write-off of start up costs per new (0.01) 0.01 acctg. standard(j) ----------------------------------------- Total 0.06 0.10 (0.04) 0.6 0.14 (0.08) ========================================= Total Special Items 0.06 0.09 (0.03) (0.1) 0.13 (0.14) - ----------------------------------------------------------------------------
_______________________ (i) Regulatory and reserve adjustments were made in the first quarter of 2000 for potential rate actions, rate refunds, and ongoing litigation. (j) The new accounting standard is AICPA Statement of Position 98-5, "Recording the Costs of Start-Up Operations." Share Repurchase Program During second quarter 2000, 8.8 million shares were repurchased at a total cost of $233 million. Since the share repurchase program was initiated in July 1999, through June 30, 2000, $618 million of the $750 million Board authorized share repurchase program were utilized to purchase 24.1 million shares. The program is expected to be completed by the end of 2000. Earnings Review and Outlook "Financial results were very strong in the second quarter," said C. John Wilder, Entergy's chief financial officer. "Solid performance at the utility drove earnings growth well beyond the impact of favorable weather, while the competitive businesses contributed over 14% of total operational earnings. Based on the strong first half of the year, we have increased our 2000 earnings target to $2.55 to $2.65 per share up from $2.35 to $2.45 - - an 8% increase, and 18 to 22% above 1999 operational results." Table 6 provides Entergy's projection of 2000 operational earnings per share. - ---------------------------------------------------------------------------- Table 6: 2000 Earnings Per Share Guidance - ---------------------------------------------------------------------------- (Per share in U.S. $) 1999 Changes in 2000 2000 2Q 2000 Operational Guidance YTD Range Operational - ---------------------------------------------------------------------------- Range of Impact Utility Regulatory reductions (0.02) 0.00 Sales growth & 0.12 0.13 share repurchase ------------ Total 0.10 0.13 2.27 2.30 1.17 2.17 (k) ENI Full year of 0.10 0.12 Pilgrim ownership ------------ 0.06 Total 0.10 0.12 0.16 0.18 0.10 EWO No Edesur sale (0.07) (0.07) U.K. projects (LD's 0.11 0.13 & operations) Improved trading 0.08 0.09 and JV ------------ 0.05 Total 0.12 0.15 0.17 0.20 0.12 Parent Expense reductions 0.20 0.21 & Other & other Reduced investment (0.05) (0.04) income ------------ (0.20) Total 0.15 0.17 (0.05) (0.03) 0.07 ------------------------------------------------------------------ 1999 2.08 0.47 0.57 2.55 2.65 1.46 Total Weather 0.09 0.02 Impact - ---------------------------------------------------------------------------- _________________ (k) Excludes $0.09 favorable weather impact. Table 7 reconciles the change in guidance for 2000 earnings announced on July 13, 2000 to the guidance given in the first quarter earnings release. - ---------------------------------------------------------------------------- Table 7: Reconciliation of First to Second Quarter 2000 Earnings Guidance - ---------------------------------------------------------------------------- (Per share in U.S. $) 2000 Guidance Range First Quarter Guidance 2.35 2.45 Changes Higher than projected liquidated damages 0.06 Accelerated share repurchase program 0.06 Favorable weather and utility sales growth 0.06 Change in parent projections, including higher 0.02 investment income ----- Total 0.20 Second Quarter Guidance 2.55 2.65 - ---------------------------------------------------------------------------- Other Performance Highlights Operating cash flows increased 12% in second quarter 2000 when compared with the same period in 1999, largely as a result of higher income in the 2000 period. The improvements in cash flow are amplified on a per share basis with fewer shares in 2000 as a result of the repurchase program. Cash return on average investment improved slightly in the twelve months ending June 2000. Return on average common equity rose significantly in the twelve months ending June 2000, up 20% relative to the same period ending June 1999. The increase was a result of strong income growth and a reduction in common equity in the more recent period due to the stock repurchase program. The share repurchase program reduced the book value of the company as treasury stock reduced common equity by $618 million. This was partially offset by a $342 million increase in retained earnings. With 9% fewer shares in 2000, however, the book value per share for June 2000 was higher than for the earlier period. Table 8 provides a comparative summary of key financial performance metrics for the second quarter and year-to-date 2000 vs. 1999. - ---------------------------------------------------------------------------- Table 8: Entergy Corporation Key Financial Performance Metrics Second Quarter and Year-to-Date 2000 vs. 1999 - ---------------------------------------------------------------------------- (In U.S. $) Second Quarter Year-to-Date -------------- ------------ 2000 1999 Change 2000 1999 Change -------------------- ------------------- Operating cash flow ($ millions) $427 $381 $46 $738 $591 $147 Operating cash flow per share $1.87 $1.54 $0.33 $3.18 $2.40 $0.78 For 12 months ending June 30 2000 1999 Change Cash return on average investment (l) 6.7% 6.6% 0.1% Return on average common equity (m) 9.1% 7.6% 1.5% Book value per share(n) $31.02 $29.27 $1.75 End of period shares outstanding (millions) 223.5 246.8 (23.3) - ---------------------------------------------------------------------------- __________________________ (l) "Cash return on average investment" is 12-months rolling EBITDA divided by average total assets plus accumulated depreciation less current liabilities - 1999 EBTIDA excludes the gains from sales of London Electricity and CitiPower. This metric is a measure of Entergy's ability to generate cash relative to its gross investments. (m) "Return on average common equity" is 12-months rolling net income divided by average common equity - net income excludes all special items. This metric is a measure of Entergy's ability to generate profits from equity received from common shareholders. (n) "Book value per share" is common equity divided by end of period shares outstanding. This metric is a measure of the book value of Entergy's net assets per share. 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.
Entergy Corporation Consolidating Balance Sheet June 30, 2000 (Dollars in thousands) (Unaudited) U.S. Parent Competitive Eliminations Consolidated Utilities Company Businesses ASSETS CURRENT ASSETS Cash and cash equivalents: Cash $ 53,779 $ 0 $ 102,289 $ - $ 156,068 Temporary cash investments - at cost, which approximates market 449,570 148,318 1,039,140 - 1,637,028 Special deposits - - 3,978 - 3,978 --------------------------------------------------------------- Total cash and cash equivalents 503,349 148,318 1,145,407 - 1,797,074 --------------------------------------------------------------- Other temporary investments - - 23,100 - 23,100 Notes receivable 1,579 - 2,064 - 3,643 Accounts receivable: Customer 299,857 - 91 - 299,948 Allowance for doubtful accounts (6,943) - (2,064) - (9,007) Associated companies 18,106 109,886 3,804 (131,796) (0) Other 100,821 (57) 253,955 - 354,719 Accrued unbilled revenues 375,983 - - - 375,983 --------------------------------------------------------------- Total receivables 787,824 109,829 255,786 (131,796) 1,021,643 Deferred fuel costs 394,875 - - - 394,875 Fuel inventory - at average cost 118,872 - 4,165 (202) 122,835 Materials and supplies - at average cost 336,753 (13) 21,477 - 358,217 Rate deferrals 24,265 - - - 24,265 Deferred nuclear refueling outage costs 33,708 - - - 33,708 Prepayments and other 70,360 2,365 29,069 - 101,796 --------------------------------------------------------------- TOTAL 2,271,586 260,499 1,481,068 (131,997) 3,881,156 --------------------------------------------------------------- OTHER PROPERTY AND INVESTMENTS Investment in subsidiary companies - at equity 214 6,763,971 757 (6,764,727) 214 Decommissioning trust funds 849,126 - 435,175 - 1,284,301 Non-utility property - at cost (less accumulated depreciation) 222,938 - 104,252 - 327,191 Non-regulated investments - 1,000 263,442 - 264,442 Other - at cost (less accumulated depreciation) 17,704 - 4,439 - 22,145 --------------------------------------------------------------- TOTAL 1,089,983 6,764,971 808,066 (6,764,727) 1,898,293 --------------------------------------------------------------- UTILITY PLANT Electric 23,261,933 4,340 155,534 - 23,421,808 Plant acquisition adjustment 398,497 - 300 - 398,797 Property under capital lease 771,466 - - - 771,466 Natural gas 190,000 - - - 190,000 Construction work in progress 913,326 971 1,046,220 - 1,960,517 Nuclear fuel under capital lease 262,996 - - - 262,996 Nuclear fuel 68,372 - 40,726 - 109,098 --------------------------------------------------------------- TOTAL UTILITY PLANT 25,866,590 5,311 1,242,780 - 27,114,682 Less - accumulated depreciation and amortization 11,160,327 2,676 85,367 - 11,248,370 --------------------------------------------------------------- UTILITY PLANT - NET 14,706,264 2,635 1,157,414 - 15,866,312 --------------------------------------------------------------- DEFERRED DEBITS AND OTHER ASSETS Regulatory assets: Rate deferrals 7,430 - - - 7,430 SFAS 109 regulatory asset - net 1,031,503 - - - 1,031,503 Unamortized loss on reacquired debt 192,493 - - - 192,493 Other regulatory assets 706,401 - - - 706,401 Long-term receivables 30,970 - - - 30,970 Other 191,402 402,549 517,812 (402,046) 709,718 --------------------------------------------------------------- TOTAL 2,160,200 402,549 517,812 (402,046) 2,678,515 --------------------------------------------------------------- TOTAL ASSETS $20,228,032 $7,430,654 $3,964,360 $(7,298,770) $24,324,276 ================================================================ *Totals may not foot due to rounding.
Entergy Corporation Consolidating Balance Sheet June 30, 2000 (Dollars in thousands) (Unaudited) LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES Currently maturing long-term debt $ 127,108 $ - $ 67,000 $ - $ 194,108 Notes payable: Other 716 435,000 - - 435,716 Account payable: Associated companies 7,338 1,634 19,524 (28,496) - Other 580,800 4,490 211,270 - 796,560 Customer deposits 164,986 - - - 164,986 Taxes accrued 379,278 6,628 194,687 - 580,593 Accumulated deferred income taxes 115,967 - 20 - 115,987 Nuclear refueling outage costs 2,329 - - - 2,329 Interest accrued 150,585 1,363 1,439 - 153,388 Co-owner advances 22,511 - - (8,129) 14,382 Obligations under capital leases 175,466 - - - 175,466 Other 176,197 7,449 29,594 (39,374) 173,865 ---------------------------------------------------------------- TOTAL 1,903,281 456,564 523,533 (75,999) 2,807,380 ---------------------------------------------------------------- DEFERRED CREDITS AND OTHER LIABILITIES Accumulated deferred income taxes 3,348,088 (16,669) (106,990) - 3,224,430 Accumulated deferred investment tax credits 506,142 - - - 506,142 Obligations under capital leases 177,874 - - - 177,874 FERC settlement - refund obligation 34,143 - - - 34,143 Other regulatory liabilities 225,843 - - - 225,843 Decommisioning 281,572 - 444,286 - 725,858 Transition to competition 176,722 - - - 176,722 Regulatory reserves 415,420 - - - 415,420 Accumulated provisions 280,020 - 359 - 280,378 Other 655,347 52,323 505,160 (394,118) 818,711 ---------------------------------------------------------------- TOTAL 6,101,172 35,654 842,815 (394,118) 6,585,521 ---------------------------------------------------------------- Long-term debt 6,262,572 - 1,179,955 (63,925) 7,378,602 Preferred stock with sinking fund 69,650 - - - 69,650 Preference stock - - - - - 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 2,472 664,577 (2,890,446) 2,472 Authorized shares 500,000,000 Issued shares CY 247,172,239 Paid-in capital 1,779,381 4,636,407 874,140 (2,653,521) 4,636,407 Retained earnings 1,335,144 2,982,495 (38,572) (1,296,571) 2,982,495 Accumulated other comprehensive income: Cumulative foreign currency translation adjustment - (69,811) (69,811) 69,811 (69,811) Net unrealized investment gains (losses) - - (6,275) - (6,275) Less - treasury stock, at cost - 613,126 6,000 (6,000) 613,126 Shares CY 23,709,144 ---------------------------------------------------------------- TOTAL 5,676,356 6,938,436 1,418,058 (6,764,727) 7,268,123 ---------------------------------------------------------------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $20,228,032 $7,430,654 $3,964,360 $(7,298,770) $24,324,276 ================================================================ *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 June 30, 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 $ 17,809 $ (14) $ 30,075 $ - $ 47,871 Temporary cash investments - at cost, which approximates market 348,370 131,839 51,297 - 531,506 Special deposits - - 3,978 - 3,978 ---------------------------------------------------------------------- Total cash and cash equivalents 366,179 131,825 85,350 - 583,355 ---------------------------------------------------------------------- Other temporary investments - - (298,251) - (298,251) Notes receivable 1,482 - - - 1,482 Accounts receivable: Customer 9,617 - - - 9,617 Allowance for doubtful accounts - - 500 - 500 Associated companies 1,813 (67,616) 4,122 61,680 - Other 45,631 (6) 101,196 - 146,821 Accrued unbilled revenues 77,367 - - - 77,367 ---------------------------------------------------------------------- Total receivables 134,427 (67,621) 105,819 61,680 234,305 Deferred fuel costs 154,214 - - - 154,214 Fuel inventory - at average cost 31,510 - (3,259) 164 28,416 Materials and supplies - at average cost (33,928) 6 (263) - (34,186) Rate deferrals (6,129) - - - (6,129) Deferred nuclear refueling outage costs (24,411) - - - (24,411) Prepayments and other 17,524 265 5,441 - 23,229 ---------------------------------------------------------------------- TOTAL 640,869 64,474 (105,163) 61,844 662,023 ---------------------------------------------------------------------- OTHER PROPERTY AND INVESTMENTS Investment in subsidiary companies - at equity - 56,077 757 (56,833) - Decommissioning trust funds 34,112 - 4,166 - 38,278 Non-utility property - at cost (less accumulated depreciation) 5,317 - 4,709 - 10,026 Non-regulated investments - 1,000 65,439 - 66,439 Other - at cost (less accumulated depreciation) 991 - 4,439 - 5,431 ---------------------------------------------------------------------- TOTAL 40,420 57,077 79,510 (56,833) 120,173 ---------------------------------------------------------------------- UTILITY PLANT Electric 258,598 - 49 - 258,647 Plant acquisition adjustment 398,497 (406,630) - - (8,133) Property under capital lease 2,966 - - - 2,966 Natural gas 3,959 - - - 3,959 Construction work in progress 204,895 283 254,722 - 459,900 Nuclear fuel under capital lease (23,480) - - - (23,480) Nuclear fuel 28,866 - (7,460) - 21,406 ---------------------------------------------------------------------- TOTAL UTILITY PLANT 874,301 (406,346) 247,311 - 715,265 Less - accumulated depreciation and amortization 347,296 434 1,980 - 349,709 ---------------------------------------------------------------------- UTILITY PLANT - NET 527,005 (406,780) 245,331 - 365,556 ---------------------------------------------------------------------- DEFERRED DEBITS AND OTHER ASSETS Regulatory assets: Rate deferrals (9,150) - - - (9,150) SFAS 109 regulatory asset - net (36,503) - - - (36,503) Unamortized loss on reacquired debt (6,138) - - - (6,138) Other regulatory assets 68,531 - - - 68,531 Long-term receivables (1,290) - - - (1,290) Other 47,539 354,975 175,519 (402,046) 175,986 ---------------------------------------------------------------------- TOTAL 62,989 354,975 175,519 (402,046) 191,435 ---------------------------------------------------------------------- TOTAL ASSETS $ 1,271,282 $ 69,746 $ 395,196 $ (397,035) $ 1,339,189 ====================================================================== * Totals may not foot due to rounding.
Entergy Corporation Consolidating Balance Sheet June 30, 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 $ 67,447 $ - $(67,000) $ - $ 447 Notes payable: Other - 315,000 - - 315,001 Account payable: Associated companies 5,734 (531) (2,284) (2,919) - Other 112,523 (13,296) (10,345) - 88,881 Customer deposits 3,076 - - - 3,076 Taxes accrued 108,634 (2,514) 28,796 - 134,916 Accumulated deferred income taxes 43,327 - 20 - 43,347 Nuclear refueling outage costs (8,887) - - - (8,887) Interest accrued 24,408 1,215 (1,263) - 24,360 Co-owner advances 7,363 - - - 7,363 Obligations under capital lease (2,781) - - - (2,781) Other (37,385) 1,198 5,539 78,765 48,116 ---------------------------------------------------------------------- TOTAL 188,564 301,071 87,466 75,845 652,947 ---------------------------------------------------------------------- DEFERRED CREDITS AND OTHER LIABILITIES Accumulated deferred income taxes (95,646) (503) 10,239 - (85,911) Accumulated deferred investment tax credits (13,768) - - - (13,768) Obligations under capital lease (27,590) - - - (27,590) FERC settlement - refund obligation (3,194) - - - (3,194) Other regulatory liabilities 26,704 - - - 26,704 Decommisioning 12,874 - 9,531 - 22,405 Transition to competition 19,689 - - - 19,689 Regulatory reserves 37,113 - - - 37,113 Accumulated provisions 58,011 (57,938) 881 - 954 Other 405,009 13,107 267,320 (401,881) 283,555 ---------------------------------------------------------------------- TOTAL 419,204 (45,335) 287,970 (401,881) 259,956 ---------------------------------------------------------------------- Long-term debt 638,599 - 141,585 (14,165) 766,019 Preferred stock with sinking fund - - - - - Preference stock (150,000) - - - (150,000) 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 5,016 (5,016) 1 Paid-in capital 65 244 38,740 (38,803) 244 Retained earnings 177,344 196,027 (163,298) (14,044) 196,029 Accumulated other comprehensive income: Cumulative foreign currency translation adjustment - (1,029) (1,029) 1,029 (1,029) Net unrealized investment gains (losses) - - (1,253) - (1,253) Less - treasury stock, at cost - 381,233 - - 381,233 ---------------------------------------------------------------------- TOTAL 174,915 (185,990) (121,825) (56,834) (189,734) ---------------------------------------------------------------------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 1,271,282 $ 69,746 $ 395,196 $ (397,035) $ 1,339,189 ====================================================================== * Totals may not foot due to rounding.
Entergy Corporation Consolidating Income Statement Three Months Ended June 30, 2000 (Dollars in thousands) (Unaudited) U.S. Parent & Competitive Eliminations Consolidated Utilities Other Businesses OPERATING REVENUES: Domestic electric $1,669,082 $ - $ - $ (4,393) $ 1,664,688 Natural gas 28,396 - - - 28,396 Steam products - - - - - Competitive businesses - 8,514 444,277 (8,087) 444,704 ----------------------------------------------------------------- Total 1,697,477 8,514 444,277 (12,480) 2,137,788 ----------------------------------------------------------------- OPERATING EXPENSES: Operating and Maintenance: Fuel, fuel related expenses, and gas 402,048 - 62,389 - 464,436 purchased for resale Purchased power 217,031 - 295,303 (9,814) 502,521 ----------------------------------------------------------------- Gross Margin 1,078,399 8,514 86,585 (2,667) 1,170,831 Margin % 63.5% 100.0% 19.5% 21.4% 54.8% Nuclear refueling outage expenses 16,629 - - - 16,629 Other operation and maintenance 371,591 9,372 72,224 (2,963) 450,223 Decommissioning 6,169 - - - 6,169 Taxes other than income taxes 81,336 444 1,761 - 83,540 ----------------------------------------------------------------- Total 1,094,803 9,816 431,677 (12,777) 1,523,518 ----------------------------------------------------------------- EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION, AND AMORTIZATION 602,674 (1,302) 12,600 297 614,270 ----------------------------------------------------------------- Margin % 35.5% (15.3%) 2.8% (2.4%) 28.7% DEPRECIATION AND AMORTIZATION: Depreciation and amortization 176,097 794 1,857 - 178,749 Other regulatory charges (credits) (5,900) - - - (5,900) Amortization of rate deferrals 7,883 - - - 7,883 ----------------------------------------------------------------- Total 178,080 794 1,857 - 180,732 ----------------------------------------------------------------- OPERATING INCOME (LOSS) 424,594 (2,096) 10,743 297 433,538 ----------------------------------------------------------------- Margin % 25.0% (24.6%) 2.4% (2.4%) 20.3% OTHER INCOME (DEDUCTIONS): Allowance for equity funds used during 8,041 - - - 8,041 construction Gain/(loss) on sale of assets - net 531 - 20,526 - 21,057 Miscellaneous - net 1,931 29,982 44,227 (2,488) 73,651 ----------------------------------------------------------------- Total 10,502 29,982 64,753 (2,488) 102,749 ----------------------------------------------------------------- INTEREST AND OTHER CHARGES: Interest on long-term debt 118,336 - 126 - 118,462 Other interest - net 10,688 7,324 7,549 (2,191) 23,369 Distributions on preferred securities 4,709 - - - 4,709 of subsidiaries Allowance for borrowed funds used (5,889) - - - (5,889) during construction ----------------------------------------------------------------- Total 127,844 7,324 7,676 (2,191) 140,651 ----------------------------------------------------------------- INCOME (LOSS) BEFORE INCOME TAXES 307,253 20,562 67,820 - 395,636 INCOME TAXES 120,306 6,377 23,180 - 149,863 ----------------------------------------------------------------- CONSOLIDATED NET INCOME (LOSS) 186,946 14,186 44,640 - 245,773 PREFERRED DIVIDEND REQUIREMENTS OF SUBSIDIARIES AND OTHER 8,581 - - - 8,581 ----------------------------------------------------------------- EARNINGS (LOSS) APPLICABLE TO COMMON STOCK $ 178,365 $ 14,186 $ 44,640 $ - $237,192 ================================================================= Margin % 10.5% 166.6% 10.0% (0.0%) 11.1% EARNINGS PER AVERAGE COMMON SHARE $0.78 $0.06 $0.20 $1.04 AVERAGE NUMBER OF COMMON SHARES OUTSTANDING 228,097,385 *Totals may not foot due to rounding.
Entergy Corporation Consolidating Income Statement Three Months Ended June 30, 1999 (Dollars in thousands) (Unaudited) U.S. Parent & Competitive Eliminations Consolidated Utilities Other Businesses OPERATING REVENUES: Domestic electric $1,616,624 $ - $ (1) $ (3,488) $ 1,613,136 Natural gas 22,149 - - - 22,149 Steam products 7,254 - - - 7,254 Competitive businesses - - 678,665 (4,800) 673,865 ----------------------------------------------------------------- Total 1,646,027 - 678,665 (8,288) 2,316,404 ----------------------------------------------------------------- OPERATING EXPENSES: Operating and Maintenance: Fuel, fuel related expenses, and gas 391,582 - 99,290 - 490,871 purchased for resale Purchased power 134,379 - 547,648 (5,201) 676,827 ----------------------------------------------------------------- Gross Margin 1,120,066 - 31,727 (3,086) 1,148,706 Margin % 68.0% - 4.7% 37.2% 49.6% Nuclear refueling outage expenses 17,135 - - - 17,135 Other operation and maintenance 333,616 29,625 50,997 (3,531) 410,707 Decommissioning 10,759 - - - 10,758 Taxes other than income taxes 82,097 172 783 - 83,053 ----------------------------------------------------------------- Total 969,568 29,797 698,719 (8,733) 1,689,351 ----------------------------------------------------------------- EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION, AND AMORTIZATION 676,460 (29,797) (20,054) 445 627,053 ----------------------------------------------------------------- Margin % 41.1% - (3.0%) (5.4%) 27.1% DEPRECIATION AND AMORTIZATION: Depreciation and amortization 174,282 324 2,101 - 176,707 Other regulatory charges (credits) (2,372) - - - (2,372) Amortization of rate deferrals 88,767 - - - 88,767 ----------------------------------------------------------------- Total 178,080 324 2,101 - 263,102 ----------------------------------------------------------------- OPERATING INCOME (LOSS) 415,783 (30,121) (22,155) 445 363,951 ----------------------------------------------------------------- Margin % 25.3% - (3.3%) (5.4%) 15.7% OTHER INCOME (DEDUCTIONS): Allowance for equity funds used during 7,347 - - - 7,348 construction Gain/(loss) on sale of assets - net 460 (817) 41,074 - 40,718 Miscellaneous - net 10,753 12,989 16,912 (590) 40,064 ----------------------------------------------------------------- Total 18,560 12,172 57,986 (590) 88,130 ----------------------------------------------------------------- INTEREST AND OTHER CHARGES: Interest on long-term debt 119,392 - 772 - 120,164 Other interest - net 33,398 1,986 1,702 (145) 36,942 Distributions on preferred securities 4,709 - - - 4,710 of subsidiaries Allowance for borrowed funds used (5,926) - - - (5,926) during construction ----------------------------------------------------------------- Total 151,574 1,986 2,475 (145) 155,890 ----------------------------------------------------------------- INCOME (LOSS) BEFORE INCOME TAXES 282,769 (19,935) 33,356 - 296,191 INCOME TAXES 107,902 (6,748) (14,721) - 86,433 ----------------------------------------------------------------- CONSOLIDATED NET INCOME (LOSS) 174,868 (13,187) 48,077 - 209,758 PREFERRED DIVIDEND REQUIREMENTS OF SUBSIDIARIES AND OTHER 9,980 - - - 9,981 ----------------------------------------------------------------- EARNINGS (LOSS) APPLICABLE TO COMMON STOCK $ 164,887 $ (13,187) $ 48,077 $ - $199,777 ================================================================= Margin % 10.0% - 7.1% (0.0%) 8.6% EARNINGS PER AVERAGE COMMON SHARE $0.67 ($0.05) $0.19 $0.81 AVERAGE NUMBER OF COMMON SHARES OUTSTANDING 246,795,710 *Totals may not foot due to rounding.
Entergy Corporation Consolidating Income Statement Three Months Ended June 30, 2000 vs. 1999 Increase/(Decrease) (Dollars in thousands) (Unaudited) U.S. Parent & Competitive Eliminations Consolidated Utilities Other Businesses OPERATING REVENUES: Domestic electric $ 52,458 $ - $ - $ (906) $ 51,553 Natural gas 6,246 - - - 6,246 Steam products (7,255) - - - (7,255) Competitive businesses - 8,514 (234,388) (3,287) (229,161) ----------------------------------------------------------------- Total 51,449 8,514 (234,388) (4,193) (178,617) ----------------------------------------------------------------- OPERATING EXPENSES: Operating and Maintenance: Fuel, fuel related expenses, and gas 10,466 - (36,901) - (26,435) purchased for resale Purchased power 82,651 - (252,344) (4,613) (174,306) ----------------------------------------------------------------- Gross Margin (41,668) 8,514 54,858 420 22,124 Margin % (4.5%) 100.0% 14.8% (15.9%) 5.2% Nuclear refueling outage expenses (506) - - - (506) Other operation and maintenance 37,975 (20,253) 21,226 568 39,516 Decommissioning (4,590) - - - (4,590) Taxes other than income taxes (762) 272 978 - 488 ----------------------------------------------------------------- Total 125,235 (19,981) (267,042) (4,044) (165,832) ----------------------------------------------------------------- EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION, AND AMORTIZATION (73,785) 28,495 32,654 (149) (12,785) ----------------------------------------------------------------- Margin % (5.6%) (15.3%) 5.8% 3.0% 1.7% DEPRECIATION AND AMORTIZATION: Depreciation and amortization 1,816 470 (244) - 2,041 Other regulatory charges (credits) (4,368) - - - (4,368) Amortization of rate deferrals (80,044) - - - (80,044) ----------------------------------------------------------------- Total (82,596) 470 (244) - (82,371) ----------------------------------------------------------------- OPERATING INCOME (LOSS) 8,811 28,025 32,898 (149) 69,586 ----------------------------------------------------------------- Margin % (0.2%) (24.6%) 5.7% 3.0% 4.6% OTHER INCOME (DEDUCTIONS): Allowance for equity funds used during 693 - - - 693 construction Gain/(loss) on sale of assets - net 71 817 (20,548) - (19,660) Miscellaneous - net (8,822) 16,993 27,315 (1,898) 33,587 ----------------------------------------------------------------- Total (8,058) 17,810 6,767 (1,898) 14,620 ----------------------------------------------------------------- INTEREST AND OTHER CHARGES: Interest on long-term debt (1,056) - (646) - (1,702) Other interest - net (22,711) 5,337 5,847 (2,047) (13,573) Distributions on preferred securities - - - - - of subsidiaries Allowance for borrowed funds used 36 - - - 36 during construction ----------------------------------------------------------------- Total (23,730) 5,337 5,201 (2,047) (15,238) ----------------------------------------------------------------- INCOME (LOSS) BEFORE INCOME TAXES 24,483 40,498 34,464 - 99,445 INCOME TAXES 12,405 13,125 37,901 - 63,431 ----------------------------------------------------------------- CONSOLIDATED NET INCOME (LOSS) 12,079 27,373 (3,437) - 36,014 PREFERRED DIVIDEND REQUIREMENTS OF SUBSIDIARIES AND OTHER (1,399) - - - (1,399) ----------------------------------------------------------------- EARNINGS (LOSS) APPLICABLE TO COMMON STOCK $ 13,478 $ 27,373 $ (3,437) $ - $ 37,413 ================================================================= Margin % 0.5% 166.6% 3.0% 0.0% 2.5% EARNINGS PER AVERAGE COMMON SHARE $0.11 $0.11 $0.01 $0.23 *Totals may not foot due to rounding.
Entergy Corporation Consolidating Income Statement Year to Date June 30, 2000 (Dollars in thousands) (Unaudited) U.S. Parent & Competitive Eliminations Consolidated Utilities Other Businesses OPERATING REVENUES: Domestic electric $3,024,629 $ - $ 1 $ (7,059) $ 3,017,570 Natural gas 74,292 - - - 74,292 Steam products - - - - - Competitive businesses - 14,276 860,523 (17,381) 857,418 ----------------------------------------------------------------- Total 3,098,921 14,276 860,523 (24,440) 3,949,280 ----------------------------------------------------------------- OPERATING EXPENSES: Operating and Maintenance: Fuel, fuel related expenses, and gas 821,237 - 140,953 - 962,190 purchased for resale Purchased power 353,272 - 538,718 (19,926) 872,064 ----------------------------------------------------------------- Gross Margin 1,924,411 14,276 180,852 (4,514) 2,115,026 Margin % 62.1% 100.0% 21.0% 18.5% 53.6% Nuclear refueling outage expenses 35,186 - - - 35,186 Other operation and maintenance 672,033 29,742 131,114 (5,256) 827,634 Decommissioning 17,106 - - - 17,106 Taxes other than income taxes 159,300 722 3,136 - 163,158 ----------------------------------------------------------------- Total 2,058,135 30,464 813,921 (25,181) 2,877,338 ----------------------------------------------------------------- EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION, AND AMORTIZATION 1,040,785 (16,188) 46,602 741 1,071,942 ----------------------------------------------------------------- Margin % 33.6% (113.4%) 5.4% (3.0%) 27.1% DEPRECIATION AND AMORTIZATION: Depreciation and amortization 351,845 1,532 3,648 - 357,025 Other regulatory charges (credits) (20,506) - - - (20,506) Amortization of rate deferrals 15,279 - - - 15,279 ----------------------------------------------------------------- Total 346,619 1,532 3,648 - 351,798 ----------------------------------------------------------------- OPERATING INCOME (LOSS) 694,166 (17,719) 42,954 741 720,144 ----------------------------------------------------------------- Margin % 22.4% (124.1%) 5.0% (3.0%) 18.2% OTHER INCOME (DEDUCTIONS): Allowance for equity funds used during 15,735 - - - 15,735 construction Gain/(loss) on sale of assets - net 1,045 3 20,526 - 21,574 Miscellaneous - net 6,329 51,185 51,305 (6,186) 102,633 ----------------------------------------------------------------- Total 23,109 51,188 71,831 (6,186) 139,942 ----------------------------------------------------------------- INTEREST AND OTHER CHARGES: Interest on long-term debt 232,678 - 252 (810) 232,121 Other interest - net 21,375 11,972 14,940 (4,635) 43,652 Distributions on preferred securities 9,419 - - - 9,419 of subsidiaries Allowance for borrowed funds used (11,977) - - - (11,977) during construction ----------------------------------------------------------------- Total 251,494 11,972 15,192 (5,445) 273,215 ----------------------------------------------------------------- INCOME (LOSS) BEFORE INCOME TAXES 465,781 21,497 99,593 - 586,871 INCOME TAXES 191,497 7,001 34,191 - 232,688 ----------------------------------------------------------------- CONSOLIDATED NET INCOME (LOSS) 274,284 14,496 65,403 - 354,183 PREFERRED DIVIDEND REQUIREMENTS OF SUBSIDIARIES AND OTHER 18,131 - - - 18,131 ----------------------------------------------------------------- EARNINGS (LOSS) APPLICABLE TO COMMON STOCK $ 256,153 $ 14,496 $ 65,403 $ - $336,052 ================================================================= Margin % 8.3% 101.5% 7.6% (0.0%) 8.5% EARNINGS PER AVERAGE COMMON SHARE $1.10 $0.07 $0.28 $1.45 AVERAGE NUMBER OF COMMON SHARES OUTSTANDING 232,352,915 *Totals may not foot due to rounding.
Entergy Corporation Consolidating Income Statement Year to Date June 30, 1999 (Dollars in thousands) (Unaudited) U.S. Parent & Competitive Eliminations Consolidated Utilities Other Businesses OPERATING REVENUES: Domestic electric $2,857,299 $ - $ - $ (5,580) $ 2,851,719 Natural gas 59,881 - - - 59,880 Steam products 15,550 - - - 15,550 Competitive businesses - - 1,035,325 (6,148) 1,029,177 ----------------------------------------------------------------- Total 2,932,730 - 1,035,325 (11,729) 3,956,326 ----------------------------------------------------------------- OPERATING EXPENSES: Operating and Maintenance: Fuel, fuel related expenses, and gas 736,179 - 157,792 (126) 893,844 purchased for resale Purchased power 215,727 - 841,961 (7,063) 1,050,626 ----------------------------------------------------------------- Gross Margin 1,980,824 - 35,571 (4,539) 2,011,856 Margin % 67.5% - 3.4% 38.7% 50.9% Nuclear refueling outage expenses 36,820 - - - 36,820 Other operation and maintenance 651,640 36,469 95,925 (5,696) 778,338 Decommissioning 23,432 - - - 23,432 Taxes other than income taxes 164,393 396 1,333 - 166,121 ----------------------------------------------------------------- Total 1,828,192 36,864 1,097,011 (12,885) 2,949,181 ----------------------------------------------------------------- EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION, AND AMORTIZATION 1,104,538 (36,864) (61,686) 1,157 1,007,145 ----------------------------------------------------------------- Margin % 37.7% - (6.0%) (9.9%) 25.5% DEPRECIATION AND AMORTIZATION: Depreciation and amortization 354,239 875 6,434 - 361,549 Other regulatory charges (credits) (18,970) - - - (18,970) Amortization of rate deferrals 97,180 - - - 97,180 ----------------------------------------------------------------- Total 432,448 875 6,434 - 439,759 ----------------------------------------------------------------- OPERATING INCOME (LOSS) 672,090 (37,740) (68,121) 1,157 567,386 ----------------------------------------------------------------- Margin % 22.9% - (6.6%) (9.9%) 14.3% OTHER INCOME (DEDUCTIONS): Allowance for equity funds used during 12,759 - - - 12,759 construction Gain/(loss) on sale of assets - net 905 (817) 61,212 - 61,301 Miscellaneous - net 16,007 23,625 21,852 (1,469) 60,016 ----------------------------------------------------------------- Total 29,671 22,809 83,064 (1,469) 134,076 ----------------------------------------------------------------- INTEREST AND OTHER CHARGES: Interest on long-term debt 240,730 - 1,965 - 242,695 Other interest - net 37,077 5,389 3,328 (312) 45,483 Distributions on preferred securities 9,419 - - - 9,419 of subsidiaries Allowance for borrowed funds used (10,405) - - - (10,405) during construction ----------------------------------------------------------------- Total 276,821 5,389 5,293 (312) 287,192 ----------------------------------------------------------------- INCOME (LOSS) BEFORE INCOME TAXES 424,939 (20,321) 9,650 - 414,270 INCOME TAXES 167,495 (5,591) (30,300) - 131,606 ----------------------------------------------------------------- CONSOLIDATED NET INCOME (LOSS) 257,444 (14,730) 39,950 - 282,664 PREFERRED DIVIDEND REQUIREMENTS OF SUBSIDIARIES AND OTHER 20,706 - - - 20,706 ----------------------------------------------------------------- EARNINGS (LOSS) APPLICABLE TO COMMON STOCK $ 236,738 $ (14,730) $ 39,950 $ - $261,958 ================================================================= Margin % 8.1% - 3.9% (0.0%) 6.6% EARNINGS PER AVERAGE COMMON SHARE $0.96 ($0.06) $0.16 $1.06 AVERAGE NUMBER OF COMMON SHARES OUTSTANDING 246,688,052 *Totals may not foot due to rounding.
Entergy Corporation Consolidating Income Statement Year to Date June 30, 2000 vs. 1999 Increase/(Decrease) (Dollars in thousands) (Unaudited) U.S. Parent & Competitive Eliminations Consolidated Utilities Other Businesses OPERATING REVENUES: Domestic electric $ 167,329 $ - $ 1 $ (1,479) $ 165,851 Natural gas 14,411 - - - 14,411 Steam products (15,550) - - - (15,550) Competitive businesses - 14,276 (174,802) (11,233) (171,759) ----------------------------------------------------------------- Total 166,190 14,276 (174,802) (12,711) (7,046) ----------------------------------------------------------------- OPERATING EXPENSES: Operating and Maintenance: Fuel, fuel related expenses, and gas 85,058 - (16,839) 126 68,345 purchased for resale Purchased power 137,545 - (303,243) (12,863) (178,561) ----------------------------------------------------------------- Gross Margin (56,413) 14,276 145,281 25 103,170 Margin % (5.4%) 100.0% 17.6% (20.2%) 2.7% Nuclear refueling outage expenses (1,634) - - - (1,634) Other operation and maintenance 20,393 (6,728) 35,190 441 49,295 Decommissioning (6,326) - - - (6,326) Taxes other than income taxes (5,093) 326 1,803 - (2,963) ----------------------------------------------------------------- Total 229,943 (6,403) (283,090) (12,296) (71,845) ----------------------------------------------------------------- EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION, AND AMORTIZATION (63,753) 20,678 108,288 (415) 64,798 ----------------------------------------------------------------- Margin % (4.1%) (113.4%) 11.4% 6.8% 1.7% DEPRECIATION AND AMORTIZATION: Depreciation and amortization (2,394) 656 (2,786) - (4,524) Other regulatory charges (credits) (1,534) - - - (1,534) Amortization of rate deferrals (81,901) - - - (81,901) ----------------------------------------------------------------- Total (85,829) 656 (2,786) - (87,959) ----------------------------------------------------------------- OPERATING INCOME (LOSS) 22,077 20,021 111,075 (415) 152,758 ----------------------------------------------------------------- Margin % (0.5%) (124.1%) 11.6% 6.8% 3.9% OTHER INCOME (DEDUCTIONS): Allowance for equity funds used during 2,977 - - - 2,977 construction Gain/(loss) on sale of assets - net 140 819 (40,686) - (39,727) Miscellaneous - net (9,678) 27,559 29,454 (4,718) 42,617 ----------------------------------------------------------------- Total (6,562) 28,379 (11,232) (4,718) 5,868 ----------------------------------------------------------------- INTEREST AND OTHER CHARGES: Interest on long-term debt (8,052) - (1,712) (810) (10,574) Other interest - net (15,703) 6,583 11,612 (4,323) (1,831) Distributions on preferred securities - - - - - of subsidiaries Allowance for borrowed funds used (1,572) - - - (1,572) during construction ----------------------------------------------------------------- Total (25,327) 6,583 9,900 (5,133) (13,977) ----------------------------------------------------------------- INCOME (LOSS) BEFORE INCOME TAXES 40,842 41,817 89,943 - 172,603 INCOME TAXES 24,002 12,592 64,490 - 101,083 ----------------------------------------------------------------- CONSOLIDATED NET INCOME (LOSS) 16,840 29,225 25,453 - 71,520 PREFERRED DIVIDEND REQUIREMENTS OF SUBSIDIARIES AND OTHER (2,575) - - - (2,575) ----------------------------------------------------------------- EARNINGS (LOSS) APPLICABLE TO COMMON STOCK $ 19,415 $ 29,225 $ 25,453 $ - $ 74,094 ================================================================= Margin % 0.2% 101.5% 3.7% 0.0% 1.9% EARNINGS PER AVERAGE COMMON SHARE $0.14 $0.13 $0.12 $0.39 *Totals may not foot due to rounding.
Entergy Corporation Consolidating Income Statement Twelve Months Ended June 30, 2000 (Dollars in thousands) (Unaudited) U.S. Parent & Competitive Eliminations Consolidated Utilities Other Businesses OPERATING REVENUES: Domestic electric $6,455,761 $ - $ - $ (18,481) $ 6,437,280 Natural gas 124,766 - - - 124,766 Steam products 286 - - - 286 Competitive businesses - 14,276 2,217,619 (28,046) 2,203,849 ----------------------------------------------------------------- Total 6,580,813 14,276 2,217,619 (46,527) 8,766,181 ----------------------------------------------------------------- OPERATING EXPENSES: Operating and Maintenance: Fuel, fuel related expenses, and gas 1,761,900 - 394,680 (593) 2,155,987 purchased for resale Purchased power 830,747 - 1,467,885 (34,709) 2,263,923 ----------------------------------------------------------------- Gross Margin 3,988,166 14,276 355,054 (11,225) 4,346,271 Margin % 60.6% 100.0% 16.0% 24.1% 49.6% Nuclear refueling outage expenses 74,422 - - - 74,422 Other operation and maintenance 1,420,834 52,211 289,884 (12,856) 1,750,073 Decommissioning 39,662 - - - 39,662 Taxes other than income taxes 329,741 914 5,665 - 336,320 ----------------------------------------------------------------- Total 4,457,306 53,125 2,158,114 (48,158) 6,620,387 ----------------------------------------------------------------- EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION, AND AMORTIZATION 2,123,507 (38,849) 59,505 1,631 2,145,794 ----------------------------------------------------------------- Margin % 32.3% (272.1%) 2.7% (3.5%) 24.5% DEPRECIATION AND AMORTIZATION: Depreciation and amortization 683,800 2,095 8,463 - 694,358 Other regulatory charges (credits) 4,898 - - - 4,898 Amortization of rate deferrals 42,126 - - - 42,126 ----------------------------------------------------------------- Total 730,824 2,095 8,463 - 741,382 ----------------------------------------------------------------- OPERATING INCOME (LOSS) 1,392,683 (40,944) 51,042 1,631 1,404,412 ----------------------------------------------------------------- Margin % 21.2% (286.8%) 2.3% (3.5%) 16.0% OTHER INCOME (DEDUCTIONS): Allowance for equity funds used during 32,268 - - - 32,268 construction Gain/(loss) on sale of assets - net 2,186 (13) 30,026 - 32,199 Miscellaneous - net 29,895 66,981 110,468 (10,304) 197,040 ----------------------------------------------------------------- Total 64,349 66,968 140,494 (10,304) 261,507 ----------------------------------------------------------------- INTEREST AND OTHER CHARGES: Interest on long-term debt 466,593 - 519 (810) 466,302 Other interest - net 49,942 12,726 25,835 (7,863) 80,640 Distributions on preferred securities 18,838 - - - 18,838 of subsidiaries Allowance for borrowed funds used (24,157) - - - (24,157) during construction ----------------------------------------------------------------- Total 511,216 12,726 26,354 (8,673) 541,623 ----------------------------------------------------------------- INCOME (LOSS) BEFORE INCOME TAXES 945,816 13,298 165,182 - 1,124,296 INCOME TAXES 375,450 31,753 50,549 - 457,752 ----------------------------------------------------------------- CONSOLIDATED NET INCOME (LOSS) 570,366 (18,455) 114,633 - 666,544 PREFERRED DIVIDEND REQUIREMENTS OF SUBSIDIARIES AND OTHER 39,993 - - - 39,993 ----------------------------------------------------------------- EARNINGS (LOSS) APPLICABLE TO COMMON STOCK $ 530,373 $ (18,455) $ 114,633 $ - $626,551 ================================================================= Margin % 8.1% (129.3%) 5.2% (0.0%) 7.1% EARNINGS PER AVERAGE COMMON SHARE $2.23 ($0.08) $0.48 $2.63 AVERAGE NUMBER OF COMMON SHARES OUTSTANDING 238,003,322 *Totals may not foot due to rounding.
Entergy Corporation Consolidating Income Statement Twelve Months Ended June 30, 1999 (Dollars in thousands) (Unaudited) U.S. Parent & Competitive Eliminations Consolidated Utilities Other Businesses OPERATING REVENUES: Domestic electric $6,180,986 $ - $ - $ (15,354) $ 6,165,632 Natural gas 100,622 - - - 100,622 Steam products 38,192 - - - 38,192 Competitive businesses - - 4,341,577 (16,831) 4,324,746 ----------------------------------------------------------------- Total 6,319,800 - 4,341,577 (32,185) 10,629,192 ----------------------------------------------------------------- OPERATING EXPENSES: Operating and Maintenance: Fuel, fuel related expenses, and gas 1,632,114 - 292,461 (1,520) 1,923,055 purchased for resale Purchased power 503,942 - 3,564,487 (19,297) 4,049,132 ----------------------------------------------------------------- Gross Margin 4,183,744 - 484,629 (11,368) 4,657,005 Margin % 66.2% - 11.2% 35.3% 43.8% Nuclear refueling outage expenses 77,016 - - - 77,016 Other operation and maintenance 1,339,181 67,127 379,291 (13,414) 1,772,185 Decommissioning 46,233 - - - 46,233 Taxes other than income taxes 335,902 972 5,288 - 342,162 ----------------------------------------------------------------- Total 3,934,388 68,099 4,241,527 (34,231) 8,209,783 ----------------------------------------------------------------- EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION, AND AMORTIZATION 2,385,412 (68,099) 100,050 2,046 2,419,409 ----------------------------------------------------------------- Margin % 37.7% - 2.3% (6.4%) 22.8% DEPRECIATION AND AMORTIZATION: Depreciation and amortization 711,895 1,908 112,327 - 826,130 Other regulatory charges (credits) 75,949 - - - 75,949 Amortization of rate deferrals 186,306 - - - 186,306 ----------------------------------------------------------------- Total 974,150 1,908 112,327 - 1,088,385 ----------------------------------------------------------------- OPERATING INCOME (LOSS) 1,411,262 (70,007) (12,277) 2,046 1,331,024 ----------------------------------------------------------------- Margin % 22.3% - (0.3%) (6.4%) 12.5% OTHER INCOME (DEDUCTIONS): Allowance for equity funds used during 19,601 - - - 19,601 construction Gain/(loss) on sale of assets - net 1,952 (817) 321,986 - 323,121 Miscellaneous - net 40,431 21,602 39,681 (2,740) 98,974 ----------------------------------------------------------------- Total 61,984 20,785 361,667 (2,740) 441,696 ----------------------------------------------------------------- INTEREST AND OTHER CHARGES: Interest on long-term debt 483,349 - 112,061 - 595,410 Other interest - net 63,935 12,864 10,270 (694) 86,375 Distributions on preferred securities 18,838 - 13,081 - 31,919 of subsidiaries Allowance for borrowed funds used (16,604) - - - (16,604) during construction ----------------------------------------------------------------- Total 549,518 12,864 135,412 (694) 697,100 ----------------------------------------------------------------- INCOME (LOSS) BEFORE INCOME TAXES 923,728 (62,086) 213,978 - 1,075,620 INCOME TAXES 347,652 2,652 (66,944) - 283,360 ----------------------------------------------------------------- CONSOLIDATED NET INCOME (LOSS) 576,076 (64,738) 280,922 - 792,260 PREFERRED DIVIDEND REQUIREMENTS OF SUBSIDIARIES AND OTHER 43,786 - - - 43,786 ----------------------------------------------------------------- EARNINGS (LOSS) APPLICABLE TO COMMON STOCK $ 532,290 $ (64,738) $ 280,922 $ - $748,474 ================================================================= Margin % 8.4% - 6.5% 0.0% 7.0% EARNINGS PER AVERAGE COMMON SHARE $2.16 ($0.27) $1.14 $3.03 AVERAGE NUMBER OF COMMON SHARES OUTSTANDING 246,644,571 *Totals may not foot due to rounding.
Entergy Corporation Consolidating Income Statement Twelve Months Ended June 30, 2000 vs. 1999 Increase/(Decrease) (Dollars in thousands) (Unaudited) U.S. Parent & Competitive Eliminations Consolidated Utilities Other Businesses OPERATING REVENUES: Domestic electric $ 274,775 $ - $ - $ (3,127) $ 271,648 Natural gas 24,144 - - - 24,144 Steam products (37,906) - - - (37,906) Competitive businesses - 14,276 (2,123,958) (11,215) (2,120,897) ----------------------------------------------------------------- Total 261,013 14,276 (2,123,958) (14,342) (1,863,011) ----------------------------------------------------------------- OPERATING EXPENSES: Operating and Maintenance: Fuel, fuel related expenses, and gas 129,786 - 102,219 927 232,932 purchased for resale Purchased power 326,805 - (2,096,602) (15,412) (1,785,209) ----------------------------------------------------------------- Gross Margin (195,578) 14,276 (129,575) 143 (310,734) Margin % (5.6%) 100.0% 4.8% (11.2%) 5.8% Nuclear refueling outage expenses (2,594) - - - (2,594) Other operation and maintenance 81,653 (14,916) (89,407) 558 (22,112) Decommissioning (6,571) - - - (6,571) Taxes other than income taxes (6,161) (58) 377 - (5,842) ----------------------------------------------------------------- Total 522,918 (14,974) (2,083,413) (13,927) (1,589,396) ----------------------------------------------------------------- EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION, AND AMORTIZATION (261,905) 29,250 (40,545) (415) (273,615) ----------------------------------------------------------------- Margin % (5.5%) (272.1%) 0.4% 2.9% 1.7% DEPRECIATION AND AMORTIZATION: Depreciation and amortization (28,095) 187 (103,864) - (131,772) Other regulatory charges (credits) (71,051) - - - (71,051) Amortization of rate deferrals (144,180) - - - (144,180) ----------------------------------------------------------------- Total (243,326) 187 (103,864) - (347,003) ----------------------------------------------------------------- OPERATING INCOME (LOSS) (18,579) 29,063 63,319 (415) 73,388 ----------------------------------------------------------------- Margin % (1.2%) (286.8%) 2.6% 2.9% 3.5% OTHER INCOME (DEDUCTIONS): Allowance for equity funds used during 12,667 - - - 12,667 construction Gain/(loss) on sale of assets - net 234 804 (291,960) - (290,922) Miscellaneous - net (10,536) 45,379 70,787 (7,564) 98,066 ----------------------------------------------------------------- Total 2,365 46,183 (221,173) (7,564) (180,189) ----------------------------------------------------------------- INTEREST AND OTHER CHARGES: Interest on long-term debt (16,756) - (111,542) (810) (129,108) Other interest - net (13,993) (138) 15,565 (7,169) (5,735) Distributions on preferred securities - - (13,081) - (13,081) of subsidiaries Allowance for borrowed funds used (7,553) - - - (7,553) during construction ----------------------------------------------------------------- Total (38,302) (138) (109,058) (7,979) (155,477) ----------------------------------------------------------------- INCOME (LOSS) BEFORE INCOME TAXES 22,088 75,384 (48,796) - 48,676 INCOME TAXES 27,798 29,101 117,493 - 174,392 ----------------------------------------------------------------- CONSOLIDATED NET INCOME (LOSS) (5,710) 46,283 (166,289) - (125,716) PREFERRED DIVIDEND REQUIREMENTS OF SUBSIDIARIES AND OTHER (3,793) - - - (3,793) ----------------------------------------------------------------- EARNINGS (LOSS) APPLICABLE TO COMMON STOCK $ (1,917) $ 46,283 $ (166,289) $ - $(121,923) ================================================================= Margin % (0.4%) (129.3%) (1.3%) 0.0% 0.1% EARNINGS PER AVERAGE COMMON SHARE $0.07 $0.19 ($0.66) ($0.40) *Totals may not foot due to rounding.
Entergy Corporation U.S. Utility Electric Energy Sales & Customers Three Months Ended June % Weather 2000 1999 % Adjusted (Millions of kwh) ELECTRIC ENERGY SALES: Residential 6,857 6,850 0.1 (0.8) Commercial 5,880 5,741 2.4 1.8 Governmental 635 624 1.8 1.5 Industrial 11,021 10,827 1.8 1.8 ------ ------ ---- Total to Ultimate Customers 24,393 24,041 1.5 1.1 Wholesale 2,523 2,095 20.4 ------ ------ ---- Total Sales 26,916 26,136 3.0 ====== ====== ==== Year to Date June % Weather 2000 1999 % Adjusted (Millions of kwh) ELECTRIC ENERGY SALES: Residential 13,369 13,267 0.8 0.0 Commercial 11,160 10,910 2.3 2.0 Governmental 1,222 1,213 0.8 0.6 Industrial 21,638 21,043 2.8 2.8 ------ ------ ---- Total to Ultimate Customers 47,389 46,432 2.1 1.8 Wholesale 4,795 4,304 11.4 ------ ------ ---- Total Sales 52,184 50,736 2.9 ====== ====== ==== Twelve Months Ended June 2000 1999 % (Millions of kwh) ELECTRIC ENERGY SALES: Residential 30,733 31,265 (1.7) Commercial 24,025 23,762 1.1 Governmental 2,573 2,575 (0.1) Industrial 44,145 43,230 2.1 ------- ------- ---- Total to Ultimate Customers 101,476 100,832 0.6 Wholesale 10,205 10,916 (6.5) ------- ------- ---- Total Sales 111,681 111,747 (0.1) ======= ======= ==== June 2000 1999 % ELECTRIC CUSTOMERS (YEAR TO DATE AVERAGE): Residential 2,199,803 2,172,952 1.2 Commercial 287,125 279,819 2.6 Governmental 14,257 13,907 2.5 Industrial 40,477 40,316 0.4 --------- --------- ---- Total to Ultimate Customers 2,541,661 2,506,994 1.4 Wholesale 40 42 (4.7) --------- --------- ---- Total Sales 2,541,701 2,507,037 1.4 ========= ========= ====
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