EX-99 4 a12901992.txt Exhibit 99.2 [Logo of Entergy] Entergy 639 Loyola Avenue New Orleans, LA 70113 Date: October 22, 2001 News Release For Immediately Release: Contact: Yolanda Pollard (News Media) (504) 576-4238 ypollar@entergy.com Nancy Morovich (Investor Relations) (504) 576-5506 (888) 925-8406 (pager) nmorovi@entergy.com Entergy Reports Solid Third Quarter New Orleans, La. - Entergy Corporation (NYSE:ETR) today announced that third quarter 2001 consolidated earnings were solid, topping Wall Street's earnings consensus for the 14th consecutive quarter. Excluding the effects of weather, third quarter 2001 results were 7 percent higher than the same period in 2000 due to the continued strong performance of the competitive nuclear and trading businesses, which are not subject to state and local regulation. On an operational basis, Entergy's earnings were $278.7 million, or $1.24 per share, in third quarter 2001, when compared with $306.1 million, or $1.37 cents per share, in the year-earlier period. Entergy experienced unusually hot weather in the third quarter of 2000 which accounted for 17 cents of the earnings for that period. "We have developed and are executing a strategy that can deliver results in spite of tough economic times and mild weather patterns," said J. Wayne Leonard, Entergy's chief executive officer. "We've now exceeded Wall Street's earnings consensus for 14 consecutive quarters which covers every single quarter since we changed strategies and key management in the second quarter of 1998." Utility Operations In third quarter 2001, as reported and operational utility earnings were $223.6 million, or 99 cents per share. This compares with $283.9 million, or $1.27 per share, in as reported earnings, and $290.1 million, or $1.30 per share in operational earnings for the same period in 2000. The only special item included at the utility in either of these periods was a $6.2 million, or 3 cents per share, regulatory and reserves adjustment in third quarter 2000. The decrease in earnings quarter over quarter was due in large part to significantly milder weather in third quarter 2001, compared with third quarter 2000, when much warmer than normal weather contributed 17 cents to earnings per share. In addition, the sluggish economy reduced usage and revenues across various retail segments, particularly among industrial customers. The earnings impact of the decrease in revenues was partially offset by reduced operation and maintenance expense including lower nuclear and transition to competition costs. Competitive Non-Regulated Businesses Earnings per share from Entergy's competitive businesses increased by more than 400 percent over those reported a year ago, when a one-time gain in third quarter 2001 is excluded. On an as reported basis, the competitive businesses earned $101.9 million, or 46 cents per share, in third quarter 2001, compared with $13.4 million, or 6 cents per share, earned in the same period of 2000. Third quarter 2001 earnings included a special item of 15 cents per share, or $33.8 million, comprised primarily of the gain recorded on the sale of the Saltend project in the United Kingdom. Entergy Nuclear earned $34.6 million, or 16 cents per share, compared to $6.5 million, or 3 cents per share, in third quarter 2000. The increased earnings were due primarily to the addition of Indian Point 3 and FitzPatrick nuclear units acquired in late 2000, and Indian Point 2 acquired in September 2001. In addition, exceptional operating performance across the non-utility nuclear portfolio contributed to strong earnings results achieved by this business. Energy Commodity Services contributed $67.2 million, or 30 cents, to earnings per share on an as reported basis compared to $6.8 million, or 3 cents per share, contributed in third quarter 2000. Included in third quarter 2001 results was a special item of 15 cents per share, or $33.8 million. This special item included a 20 cent gain from the sale of the Saltend project in the United Kingdom which was reduced by a reserve recorded in connection with the pending cancellation of certain gas turbines previously expected to be operational in 2005. Earnings on an operational basis totaled $33.4 million, or 15 cents per share, and were contributed primarily by Entergy-Koch's trading and marketing subsidiary and the gas pipeline business. Parent & Other Parent & Other recorded a loss of 6 cents per share in third quarter 2001, as compared with earnings of 1 cent per share in third quarter 2000. The decrease in third quarter 2001 was due primarily to lower investment income as a result of a combination of reduced cash balances and investment yields. Outlook "With three quarters of the year on the books we have already delivered financial results within our full year's earnings guidance range," said C. John Wilder, Entergy's chief financial officer. "The competitive businesses in particular have performed exceptionally well and the utility has delivered solid performance in spite of extremely mild weather conditions. We close in on the end of the year with optimism that 2001 will be another year of outstanding financial results which will position us very favorably for 2002 and beyond. We are moving our current guidance for 2001 to $3.10 to $3.20 per share excluding the impact of weather, which positions us at the top end of the previous guidance we've shared. And we continue to see $3.30 to $3.50 in earnings per share for the year 2002." Entergy Corporation, with annual revenues of more than $10 billion, is a major global energy company engaged in power production, distribution operations, and related diversified services, with more than 14,000 employees. Entergy owns, manages, or invests in power plants generating more than 30,000 megawatts of electricity domestically and internationally, and delivers electricity to about 2.6 million customers in portions of Arkansas, Louisiana, Mississippi, and Texas. Through Entergy-Koch, L.P., it is also a leading provider of wholesale energy marketing and trading services. -30- Entergy's online address is 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 herein with respect to the revenues, earnings, performance, strategies, prospects and other aspects of the business of Entergy Corporation, Entergy Arkansas, Inc., Entergy Gulf States, Inc., Entergy Louisiana, Inc., Entergy Mississippi, Inc., Entergy New Orleans, Inc., and System Energy Resources, Inc. and their affiliated companies 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 and purchased power prices and availability, the effects of regulatory decisions and changes in law, litigation, capital spending requirements, the onset of competition, including the ability to recover net regulatory assets and other potential stranded costs, the effects of recent developments in the California electricity market on the utility industry nationally, advances in technology, changes in accounting standards, corporate restructuring and changes in capital structure, the success of new business ventures, changes in the markets for electricity and other energy-related commodities, changes in interest rates and in financial and foreign currency markets generally, the economic climate and growth in Entergy's service territories, changes in corporate strategies, and other factors. ENTERGY CORPORATION Earnings at a glance Third Quarter 2001 2000 % Operating Revenues $2,575.74 $3,431.55 (24.9) As Reported Earnings $ 312.48 $ 299.93 4.2 As Reported Earnings per diluted share* $ 1.39 $ 1.34 3.7 Operational Earnings per diluted share $ 1.24 $ 1.37 (9.5) *Includes Special Items (EPS): Gain (loss) on disposition $ 0.15 - of assets - net Regulatory & reserve - $( 0.03) adjustments ------ ------- Total $ 0.15 $( 0.03) ====== ======= Year to Date 2001 2000 % Operating Revenues $7,723.44 $7,380.84 4.6 As Reported Earnings $ 705.54 $ 635.99 11.4 As Reported Earnings per diluted share* $ 3.14 $ 2.77 13.4 Operational Earnings per diluted share $ 3.05 $ 2.80 8.9 *Includes Special Items (EPS): Merger expenses $(0.06) $- Gain (loss) on disposition 0.15 0.06 of assets - net Regulatory & reserve - (0.09) adjustments ------ ------ Total $0.09 $(0.03) ====== ====== Note - dollars in millions except per share amounts, which are actual.
Entergy Corporation Consolidated Income Statement Three Months Ended September 30 (in thousands) 2001 2000 % Inc/(Dec) (unaudited) Operating Revenues: Domestic electric $1,986,338 $2,385,087 (16.7) Natural gas 18,212 21,815 (16.5) Competitive businesses 571,186 1,024,653 (44.3) ---------- ---------- Total 2,575,736 3,431,555 (24.9) ---------- ---------- Operating Expenses: Operation and maintenance: Fuel, fuel-related expenses, and gas purchased for resale 925,452 794,782 16.4 Purchased power 279,060 1,158,145 (75.9) Nuclear refueling outage expenses 24,284 18,439 31.7 Other operation and maintenance 550,339 504,379 9.1 Decommissioning (22,553) 11,505 (296.0) Taxes other than income taxes 103,593 103,188 0.4 Depreciation and amortization 127,650 188,967 (32.4) Other regulatory charges (credits) - net (24,621) 47,816 (151.5) Amortization of rate deferrals 6,029 10,497 (42.6) ---------- ---------- Total 1,969,233 2,837,718 (30.6) ---------- ---------- Operating Income 606,503 593,837 2.1 ---------- ---------- Other Income (Deductions): Allowance for equity funds used during construction 7,672 9,163 (16.3) Gain (loss) on sales of assets - net 2,066 (284) (827.5) Equity in earnings of unconsolidated equity affiliates 58,414 - - Miscellaneous - net 37,643 53,873 (30.1) ---------- ---------- Total 105,795 62,752 68.6 ---------- ---------- Interest and Other Charges: Interest on long-term debt 126,670 121,464 4.3 Other interest - net 84,452 22,576 274.1 Dividends on preferred securities of subsidiaries 4,709 4,709 - Allowance for borrowed funds used during construction (6,287) (6,776) (7.2) ---------- ---------- Total 209,544 141,973 47.6 ---------- ---------- Income Before Income Taxes 502,754 514,616 (2.3) Income Taxes 185,300 207,927 (10.9) ---------- ---------- Consolidated Net Income 317,454 306,689 3.5 Preferred dividend requirements of subsidiaries and other 4,970 6,755 (26.4) ---------- ---------- Earnings Applicable to Common Stock $312,484 $299,934 4.2 ========== ========== Earnings Per Average Common Share: Basic $1.41 $1.35 4.4 Diluted $1.39 $1.34 3.7 Average Number of Common Shares Outstanding: Basic 221,675,578 222,159,091 Diluted 224,830,056 224,352,165
Entergy Corporation Consolidated Income Statement Nine Months Ended September 30 (in thousands) 2001 2000 % Inc/(Dec) (unaudited) Operating Revenues: Domestic electric $5,849,720 $5,402,657 8.3 Natural gas 159,144 96,107 65.6 Competitive businesses 1,714,574 1,882,071 (8.9) ---------- ---------- Total 7,723,438 7,380,835 4.6 ---------- ---------- Operating Expenses: Operation and maintenance: Fuel, fuel-related expenses, and gas purchased for resale 3,076,932 1,756,972 75.1 Purchased power 888,835 2,030,210 (56.2) Nuclear refueling outage expenses 64,567 53,625 20.4 Other operation and maintenance 1,469,408 1,332,012 10.3 Decommissioning (4,749) 28,611 (116.6) Taxes other than income taxes 295,717 266,346 11.0 Depreciation and amortization 514,099 545,991 (5.8) Other regulatory charges (credits) - net (21,075) 27,311 (177.2) Amortization of rate deferrals 15,181 25,776 (41.1) ---------- ---------- Total 6,298,915 6,066,854 3.8 ---------- ---------- Operating Income 1,424,523 1,313,981 8.4 ---------- ---------- Other Income (Deductions): Allowance for equity funds used during construction 19,259 24,898 (22.6) Gain (loss) on sales of assets - net 14,414 21,291 (32.3) Equity in earnings of unconsolidated equity affiliates 153,957 - - Miscellaneous - net 139,862 156,505 (10.6) ---------- ---------- Total 327,492 202,694 61.6 ---------- ---------- Interest and Other Charges: Interest on long-term debt 386,373 353,585 9.3 Other interest - net 183,752 66,227 177.5 Dividends on preferred securities of subsidiaries 14,128 14,128 - Allowance for borrowed funds used during construction (15,718) (18,753) (16.2) ---------- ---------- Total 568,535 415,187 36.9 ---------- ---------- Income Before Income Taxes 1,183,480 1,101,488 7.4 Income Taxes 459,573 440,616 3.6 ---------- ---------- Consolidated Net Income 723,907 660,872 10.0 Preferred dividend requirements of subsidiaries and other 18,363 24,886 (26.2) ---------- ---------- Earnings Applicable to Common Stock $705,544 $635,986 11.4 ========== ========== Earnings Per Average Common Share: Basic $3.19 $2.78 14.7 Diluted $3.14 $2.77 13.4 Average Number of Common Shares Outstanding: Basic 220,908,546 228,930,171 Diluted 224,780,449 230,034,859
Entergy Corporation Consolidated Income Statement Twelve Months Ended September 30 (in thousands) 2001 2000 % Inc/(Dec) (unaudited) Operating Revenues: Domestic electric $7,666,754 $6,803,141 12.7 Natural gas 228,908 128,141 78.6 Competitive businesses 2,463,089 2,201,920 11.9 ---------- ---------- Total 10,358,751 9,133,202 13.4 ---------- ---------- Operating Expenses: Operation and maintenance: Fuel, fuel-related expenses, and gas purchased for resale 3,965,795 2,361,791 67.9 Purchased power 1,521,506 2,282,212 (33.3) Nuclear refueling outage expenses 81,454 73,267 11.2 Other operation and maintenance 2,038,707 1,841,880 10.7 Decommissioning 6,124 39,596 (84.5) Taxes other than income taxes 399,716 346,480 15.4 Depreciation and amortization 714,233 721,707 (1.0) Other regulatory charges (credits) - net (44,705) 32,111 (239.2) Amortization of rate deferrals 19,797 33,500 (40.9) ---------- ---------- Total 8,702,627 7,732,544 12.5 ---------- ---------- Operating Income 1,656,124 1,400,658 18.2 ---------- ---------- Other Income (Deductions): Allowance for equity funds used during construction 26,383 33,553 (21.4) Gain (loss) on sales of assets - net (27,342) 31,327 (187.3) Equity in earnings of unconsolidated equity affiliates 153,959 - - Miscellaneous - net 173,484 221,835 (21.8) ---------- ---------- Total 326,484 286,715 13.9 ---------- ---------- Interest and Other Charges: Interest on long-term debt 509,861 471,153 8.2 Other interest - net 203,159 90,296 125.0 Dividends on preferred securities of subsidiaries 18,838 18,838 0.0 Allowance for borrowed funds used during construction (21,079) (24,869) (15.2) ---------- ---------- Total 710,779 555,418 28.0 ---------- ---------- Income Before Income Taxes 1,271,829 1,131,955 12.4 Income Taxes 497,878 454,879 9.5 ---------- ---------- Consolidated Net Income 773,951 677,076 14.3 Preferred dividend requirements of subsidiaries and other 25,098 36,808 (31.8) ---------- ---------- Earnings Applicable to Common Stock $748,853 $640,268 17.0 ========== ========== Earnings Per Average Common Share: Basic $3.40 $2.76 23.2 Diluted $3.33 $2.75 21.1 Average Number of Common Shares Outstanding: Basic 220,574,276 231,946,696 Diluted 224,689,451 232,790,875
Entergy Corporation U.S. Utility Electric Energy Sales & Customers Three Months Ended September 2001 2000 % (Millions of kwh) Electric Energy Sales: Residential 10,502 11,573 (9.3) Commercial 7,351 7,578 (3.0) Governmental 722 744 (2.9) Industrial 10,457 11,248 (7.0) ------ ------ Total to Ultimate Customers 29,032 31,143 (6.8) Wholesale 2,373 2,290 3.6 ------ ------ Total Sales 31,405 33,433 (6.1) ====== ====== Nine Months Ended September 2001 2000 % (Millions of kwh) Electric Energy Sales: Residential 24,771 24,943 (0.7) Commercial 18,834 18,738 0.5 Governmental 1,967 1,966 0.1 Industrial 31,478 32,886 (4.3) ------ ------ Total to Ultimate Customers 77,050 78,533 (1.9) Wholesale 7,004 6,880 1.8 ------ ------ Total Sales 84,054 85,413 (1.6) ====== ====== Twelve Months Ended September 2001 2000 % (Millions of kwh) Electric Energy Sales: Residential 31,826 31,300 1.7 Commercial 24,753 24,376 1.5 Governmental 2,606 2,598 0.3 Industrial 42,548 44,095 (3.5) ------- ------- Total to Ultimate Customers 101,733 102,369 (0.6) Wholesale 9,917 9,203 7.8 ------- ------- Total Sales 111,650 111,572 0.1 ======= ======= September 2001 2000 % Electric Customers (Year to date average): Residential 2,217,728 2,204,308 0.6 Commercial 295,823 288,473 2.5 Governmental 14,644 14,296 2.4 Industrial 41,587 42,476 (2.1) --------- --------- Total to Ultimate Customers 2,569,782 2,549,553 0.8 Wholesale 39 38 2.6 --------- --------- Total Customers 2,569,821 2,549,591 0.8 ========= =========