EX-99 3 0003.txt Exhibit 99.11 Entergy Corporation [Logo of Entergy] 639 Loyola Avenue New Orleans, LA 70113 ________________________________________________________________________ Date: February 1, 2001 News For Release: Immediate Release Contact: Yolanda Pollard (News Media) 504-576-4238 ypollar@entergy.com Nancy Morovich (Investor Relations) 504-576-5506 nmorovi@entergy.com Entergy Ends 2000 with Strong Fourth Quarter Earnings New Orleans - Entergy Corporation (NYSE:ETR) today reported fourth quarter 2000 and full year consolidated earnings that were significantly higher than earnings in same periods of 1999. Earnings per share from operations set a fourth quarter record for the company - completing four consecutive record quarters in 2000. Entergy's fourth quarter 2000 earnings were $43.3 million, or 19 cents per share, compared with earnings of $4.3 million, or 2 cents per share, in fourth quarter 1999. On an operational basis, Entergy's earnings were $70.9 million or 31 cents per share in fourth quarter 2000, compared with $17.9 million or 8 cents per share in the year-earlier period. Colder-than-normal weather increased sales of electricity, accounting for 15 cents of the 23-cent increase in fourth quarter earnings per share from 1999 to 2000. Other factors contributing to higher earnings per share included stronger performance at Entergy's competitive businesses and the effect of the company's ongoing program to repurchase shares of its common stock. For the full year, Entergy earned $2.97 per share in 2000, compared with $2.25 in 1999. On an operational basis, Entergy's 2000 earnings per share were $3.12 in 2000 versus 1999's total of $2.17. Excluding the impact of more favorable weather in 2000 compared to 1999, Entergy earned $2.80, up 35 percent over 1999's total of $2.08. "Fourth quarter results continue the trend of record- breaking financial and operational performance for Entergy," said J. Wayne Leonard, Entergy's chief executive officer. "It was also a year of superior execution on our key strategic initiatives. Entergy is a fundamentally different company today than it was a year ago, with greater capacity to serve customers and to provide growing returns to shareholders. In the fourth quarter, we advanced on several fronts, including: - securing overwhelming shareholder approval for our proposed merger with FPL Group, - completing merger approval filings in each of our regulatory jurisdictions, - closing, ahead of schedule, our acquisition of the Indian Point 3 and FitzPatrick nuclear plants, and - being chosen as the winning bidder for Indian Point 2. "In addition," Leonard continued, "we have just closed the Entergy-Koch venture. The energy commodity trading arm of the EK venture begins commercial operations today under the name Axia Energy, and the Koch Gateway Pipeline begins conducting business under its new name, Gulf South Pipeline." Utility Operations In the fourth quarter of 2000, utility earnings on an operational basis were $46.5 million, or 20 cents per share, compared with $34.7 million, or 15 cents per share, in fourth quarter 1999. Weather was significantly colder, contributing 14 cents per share to fourth quarter earnings. In comparison, weather had a slight negative impact on fourth quarter 1999 earnings. In addition, the year-over- year increase in earnings per share reflects a reduction in the number of outstanding shares, due to Entergy's ongoing share repurchase program. Partially offsetting these factors were tax and depreciation adjustments, as well as current period increases in O&M spending, resulting primarily from an increase in Entergy Arkansas' storm damage reserves and increased reliability spending across the system. "Entergy's utility operations met the challenges of two severe storms in December, the worst ice storms in our company's history," Leonard said. "With the help of more than 10,000 workers from 25 states, Entergy restored service to over 230,000 Arkansas and Louisiana customers in each storm within one week. "We know that many natural gas customers have been hit with higher bills as a result of cold weather and sharply higher commodity gas costs this winter," he added. "Entergy does not profit in any way from higher gas costs, and none of the increase in earnings is attributable to higher gas costs to our distribution customers. We're working with our customers who are having trouble handling their winter bills to defer and levelize payments and to access funds to assist them. Entergy has contributed $1.4 million in New Orleans to assist customers." For the full year, the utility earned $2.65 per share on an operational basis in 2000, compared with $2.26 in 1999. The increase in 2000 was primarily due to more extreme weather, the share repurchase impact, and sales growth. Competitive Businesses In fourth quarter 2000, Entergy's competitive businesses earned $25.3 million, or 12 cents per share on an operational basis, compared with $7.4 million, or 3 cents per share, in fourth quarter 1999. Entergy Wholesale Operations reported earnings per share of 3 cents in the fourth quarter of 2000, compared with a loss of 2 cents per share in the same period of 1999. In the 2000 period, EWO benefited from strong trading earnings, partially offset by a slight loss at the Saltend power plant in the U.K. due to seasonally low electricity prices. For the full year, EWO earned 18 cents per share on an operational basis in 2000, well above 1999's total of 5 cents per share. The increase in 2000 is attributed to improved trading operations and liquidated damages from the delayed construction of the Saltend project. Entergy Nuclear earned 9 cents per share in the fourth quarter of 2000, three times the 3 cents per share earned in the fourth quarter of 1999. In 2000, the newly acquired Indian Point 3 and FitzPatrick nuclear plants made stronger than expected earnings contributions. For all of 2000, Entergy Nuclear contributed 22 cents per share, compared with 6 cents per share in 1999, benefiting from a full year of Pilgrim ownership and the addition in November of the two New York plants. Parent & Other Parent and Other earnings recorded a loss of 1 cent per share on an operational basis in fourth quarter 2000, compared with a loss of 10 cents per share in fourth quarter 1999. Results for the 2000 period benefited from lower O&M expenses, reclassifying the Gulf States merger goodwill amortization from the parent to the utility, and telecommunications earnings. Share Repurchase Program During the fourth quarter of 2000, Entergy bought an additional 1.5 million shares of its common stock under the share repurchase program at a cost of $53.8 million. From the initiation of the program through December 31, 2000, Entergy has invested $779 million to repurchase 28.9 million shares of its own stock, with $284 million remaining of the total $1.06 billion authorized for repurchasing shares. The repurchase program is expected to be completed by the time of the financial close of the proposed merger with FPL Group. Outlook "With another record-breaking quarter, Entergy finished a great year in 2000," said C. John Wilder, Entergy's chief financial officer. "As a result of our continued business strength, we are raising our 2001 earnings guidance to a range of $3.00 to $3.20 per share." Entergy is a major global energy company with power production, distribution operations and related diversified services. Entergy owns, manages, or invests in power plants generating over 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 Fourth Quarter 2000 1999 % Operating Revenues $2,635.32 $1,752.37 50.4 Earnings $ 43.31 $ 4.28 911.4 Earnings per share* $ 0.19 $ 0.02 850.0 *Includes Special Items (EPS): Loss on Latin American Investments $(0.12) - Security sale true-up - $0.02 London reserve adjustments - 0.10 Regulatory & reserve adjustments - (0.18) ------ ------ Total $(0.12) $(0.06) ====== ====== Year to Date 2000 1999 % Operating Revenues $10,016.15 $8,773.23 14.2 Earnings $ 679.29 $ 552.46 23.0 Earnings per share* $ 2.97 $ 2.25 32.0 *Includes Special Items (EPS): Loss on Latin American Investments $(0.12) - Gain on sale of Freestone Project 0.06 - Change in unbilled revenue estimate - $0.13 Depreciation adjustment - 0.04 SERI refund adjustments - (0.08) Regulatory & reserve adjustments (0.09) (0.27) Security sale true-up - 0.02 London reserve adjustments - 0.10 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 $(0.15) $0.08 ====== ===== Note - dollars in millions except per share amounts, which are actual.
Entergy Corporation Consolidated Income Statement Three Months Ended December 31 (in thousands) 2000 1999 % Inc/(Dec) (unaudited) Operating Revenues: Domestic electric $1,817,029 $1,400,484 29.7 Natural gas 69,765 32,034 117.8 Steam products - - - Competitive businesses 748,521 319,851 134.0 ---------- ---------- Total 2,635,315 1,752,369 50.4 ---------- ---------- Operating Expenses: Operation and maintenance: Fuel, fuel-related expenses, and gas purchased for resale 888,864 604,820 47.0 Purchased power 632,672 252,003 151.1 Nuclear refueling outage expenses 16,887 19,642 (14.0) Other operation and maintenance 569,301 509,868 11.7 Decommissioning 10,873 10,984 (1.0) Taxes other than income taxes 103,997 80,135 29.8 Depreciation and amortization 200,136 175,716 13.9 Other regulatory charges (credits) - net (23,630) 4,800 (592.3) Amortization of rate deferrals 4,616 7,724 (40.2) ---------- ---------- Total 2,403,716 1,665,692 44.3 ---------- ---------- Operating Income 231,599 86,677 167.2 ---------- ---------- Other Income (Deductions): Allowance for equity funds used during construction 7,124 8,655 (17.7) Gain (loss) on sales of assets - net (41,756) 10,037 (516.0) Miscellaneous - net 33,623 65,329 (48.5) ---------- ---------- Total (1,009) 84,021 (101.2) ---------- ---------- Interest and Other Charges: Interest on long-term debt 123,487 117,568 5.0 Other interest - net 19,408 24,068 (19.4) Dividends on preferred securities of subsidiaries 4,709 4,709 - Allowance for borrowed funds used during construction (5,361) (6,115) (12.3) ---------- ---------- Total 142,243 140,230 1.4 ---------- ---------- Income Before Income Taxes 88,347 30,468 190.0 Income Taxes 38,304 14,264 168.5 ---------- ---------- Consolidated Net Income 50,043 16,204 208.8 Preferred dividend requirements of subsidiaries and other 6,735 11,922 (43.5) ---------- ---------- Earnings Applicable to Common Stock $43,308 $4,282 911.4 ========== ========== Earnings Per Average Common Share: Basic $0.20 $0.02 900.0 Diluted $0.19 $0.02 850.0 Average Number of Common Shares Outstanding: Basic 219,582,366 240,930,695 Diluted 223,919,460 241,065,885
Entergy Corporation Consolidated Income Statement Twelve Months Ended December 31 (in thousands) 2000 1999 % Inc/(Dec) (unaudited) Operating Revenues: Domestic electric $7,219,686 $6,271,414 15.1 Natural gas 165,872 110,355 50.3 Steam products - 15,852 (100.0) Competitive businesses 2,630,590 2,375,607 10.7 ----------- ---------- Total 10,016,148 8,773,228 14.2 ----------- ---------- Operating Expenses: Operation and maintenance: Fuel, fuel-related expenses, and gas purchased for resale 2,645,835 2,082,875 27.0 Purchased power 2,662,881 2,442,484 9.0 Nuclear refueling outage expenses 70,511 76,057 (7.3) Other operation and maintenance 1,901,314 1,705,545 11.5 Decommissioning 39,484 45,988 (14.1) Taxes other than income taxes 370,344 339,284 9.2 Depreciation and amortization 746,125 698,881 6.8 Other regulatory charges (credits) - net 3,681 14,833 (75.2) Amortization of rate deferrals 30,392 115,627 (73.7) ----------- ---------- Total 8,470,567 7,521,574 12.6 ----------- ---------- Operating Income 1,545,581 1,251,654 23.5 ----------- ---------- Other Income (Deductions): Allowance for equity funds used during construction 32,022 29,291 9.3 Gain (loss) on sales of assets - net (20,466) 71,926 (128.5) Miscellaneous - net 190,129 154,423 23.1 ----------- ---------- Total 201,685 255,640 (21.1) ----------- ---------- Interest and Other Charges: Interest on long-term debt 477,071 476,877 0.0 Other interest - net 85,635 82,471 3.8 Dividends on preferred securities of subsidiaries 18,838 18,838 0.0 Allowance for borrowed funds used during construction (24,114) (22,585) 6.8 ----------- ---------- Total 557,430 555,601 0.3 ----------- ---------- Income Before Income Taxes 1,189,836 951,693 25.0 Income Taxes 478,921 356,667 34.3 ----------- ---------- Consolidated Net Income 710,915 595,026 19.5 Preferred dividend requirements of subsidiaries and other 31,621 42,567 (25.7) ----------- ---------- Earnings Applicable to Common Stock $679,294 $552,459 23.0 =========== ========== Earnings Per Average Common Share: Basic $3.00 $2.25 33.3 Diluted $2.97 $2.25 32.0 Average Number of Common Shares Outstanding: Basic 226,580,449 245,127,460 Diluted 228,541,307 245,326,883
Entergy Corporation U. S. Utility Electric Energy Sales & Customers Three Months Ended December 2000 1999 % (Millions of kwh) ELECTRIC ENERGY SALES: Residential 7,055 6,357 11.0 Commercial 5,920 5,638 5.0 Governmental 639 632 1.1 Industrial 11,070 11,209 (1.2) ------ ------ Total to Ultimate Customers 24,684 23,836 3.6 Wholesale 2,913 2,323 25.4 ------ ------ Total Sales 27,597 26,159 5.5 ====== ====== Twelve Months Ended December 2000 1999 % (Millions of kwh) ELECTRIC ENERGY SALES: Residential 31,998 30,631 4.5 Commercial 24,657 23,775 3.7 Governmental 2,605 2,564 1.5 Industrial 43,956 43,549 0.9 ------- ------- Total to Ultimate Customers 103,216 100,519 2.7 Wholesale 9,794 9,714 0.8 ------- ------- Total Sales 113,010 110,233 2.5 ======= ======= December 2000 1999 % ELECTRIC CUSTOMERS (YEAR TO DATE AVERAGE): Residential 2,205,539 2,180,248 1.2 Commercial 289,427 282,155 2.6 Governmental 14,350 13,986 2.6 Industrial 42,016 42,214 (0.5) --------- --------- Total to Ultimate Customers 2,551,332 2,518,603 1.3 Wholesale 37 43 (14.0) --------- --------- Total Sales 2,551,369 2,518,646 1.3 ========= =========