-----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, NAN/4pzrndTQodnFefE5HhXEkJUbpi6FCFKNZpbDq3xd5nHFzCTOfBrSIzMnx/4e uuuJyReXtLdQ78syuivyjQ== 0000065984-02-000047.txt : 20020414 0000065984-02-000047.hdr.sgml : 20020414 ACCESSION NUMBER: 0000065984-02-000047 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20020131 ITEM INFORMATION: Financial statements and exhibits ITEM INFORMATION: FILED AS OF DATE: 20020131 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ENTERGY CORP /DE/ CENTRAL INDEX KEY: 0000065984 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC SERVICES [4911] IRS NUMBER: 721229752 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-11299 FILM NUMBER: 02522813 BUSINESS ADDRESS: STREET 1: 639 LOYOLA AVE CITY: NEW ORLEANS STATE: LA ZIP: 70113 BUSINESS PHONE: 5045764000 MAIL ADDRESS: STREET 1: PO BOX 61000 CITY: NEW ORLEANS STATE: LA ZIP: 70161 FORMER COMPANY: FORMER CONFORMED NAME: ENTERGY CORP /FL/ DATE OF NAME CHANGE: 19940329 FORMER COMPANY: FORMER CONFORMED NAME: ENTERGY GSU HOLDINGS INC /DE/ DATE OF NAME CHANGE: 19940329 FORMER COMPANY: FORMER CONFORMED NAME: MIDDLE SOUTH UTILITIES INC DATE OF NAME CHANGE: 19890521 8-K 1 a04302.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) January 31, 2002 Commission Registrant, State of Incorporation, I.R.S. File Number Address and Telephone Number Employer Identifica tion No. 1-11299 ENTERGY CORPORATION 72-1229752 (a Delaware corporation) 639 Loyola Avenue New Orleans, Louisiana 70113 Telephone (504) 576-4000 Form 8-K Item 7. Financial Statements, Pro Forma Financial Statements and Exhibits (c) Exhibits. Exhibit Description No. 99.1 Release, dated January 31, 2002, issued by Entergy. 99.2 Release, dated January 31, 2002, issued by Entergy. Item 9. Regulation FD Disclosure Entergy Corporation On January 31, 2002, Entergy Corporation ("Entergy") issued two public announcements, which are attached as exhibits hereto and incorporated herein by reference. 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 Senior Vice President and Chief Accounting Officer Dated: January 31, 2002 EX-99 3 a04302991.txt For further information: Nancy Morovich, VP, Investor Relations Phone 504/576-5506, Fax 504/576-2897 INVESTOR NEWS nmorovi@entergy.com January 31, 2002 Exhibit 99.1 ENTERGY REPORTS RECORD EARNINGS FOR YEAR 2001, INCREASES 2002 GUIDANCE NEW ORLEANS - Entergy Corporation announced 2001 consolidated earnings per share of $3.23 compared with $2.97 in 2000. On an operational basis, Entergy's 2001 earnings per share were $3.23 versus 2000's total of $3.12. Excluding the impact of significantly more favorable weather in 2000 versus 2001, Entergy earned $3.24 in 2001, up 16 percent over 2000's total of $2.80. Fourth quarter 2001 consolidated earnings per share were $0.09, compared with $0.19 in 2000. On an operational basis, Entergy earned $0.18 per share in fourth quarter 2001 compared with $0.31 in the same period of 2000, reflecting significantly milder weather in 2001. Extremely cold weather in fourth quarter 2000 accounted for $0.14 of the earnings for that period. On a weather-adjusted basis, fourth quarter 2001 results were $0.20 or 18 percent higher than one year ago. The 18 percent increase was driven by solid results at the utility as well as the non-utility nuclear business, Entergy Nuclear. "Difficult economic conditions, weak commodity prices and some of the mildest weather in over 100 years did not deter us from achieving outstanding results in 2001," said J. Wayne Leonard, Entergy's chief executive officer. "This is the fifteenth quarter in a row that we've exceeded consensus earnings. We have structured our businesses to achieve success even in adverse conditions. Our conservative integrated strategy combined with operational excellence, and financial strength, continues to create value for all of our stakeholders." Table 1 provides a comparative summary of earnings per share for fourth quarter and year-to-date 2001. - --------------------------------------------------------------------- Table 1: Entergy Corporation Consolidated Results Fourth Quarter and Year-to-Date 2001 vs. 2000 - --------------------------------------------------------------------- (Per share in U.S. $) Fourth Quarter Year-to-Date 2001 2000 $ 2001 2000 $ Change Change As Reported U.S. Utility 0.20 0.20 - 2.45 2.56 (0.11) Parent & Other (0.20) (0.13) (0.07) (0.26) (0.05) (0.21) Competitive Businesses 0.09 0.12 (0.03) 1.04 0.46 0.58 ---------------------------------------- Consolidated Earnings 0.09 0.19 (0.10) 3.23 2.97 0.26 Less Special Items U.S. Utility - - - (0.01) (0.09) 0.08 Parent & Other (0.03) (0.12) 0.09 (0.08) (0.12) 0.04 Competitive Businesses (0.06) - (0.06) 0.09 0.06 0.03 ---------------------------------------- Total (0.09) (0.12) 0.03 - (0.15) 0.15 Operational U.S. Utility 0.20 0.20 - 2.46 2.65 (0.19) Parent & Other (0.17) (0.01) (0.16) (0.18) 0.07 (0.25) Competitive Businesses 0.15 0.12 0.03 0.95 0.40 0.55 ---------------------------------------- Consolidated Earnings 0.18 0.31 (0.13) 3.23 3.12 0.11 Weather Impact (0.02) 0.14 (0.16) (0.01) 0.32 (0.33) Consolidated Operational 0.20 0.17 0.03 3.24 2.80 0.44 Earnings Excluding Weather - --------------------------------------------------------------------- U.S. Utility In fourth quarter 2001, as reported and operational utility earnings were $0.20 per share, equal to the $0.20 earned in the same period of 2000. While earnings were flat for the comparable quarters, weather in 2001 was slightly milder than normal resulting in a $(0.02) impact on earnings. However, weather in fourth quarter 2000 was much colder than normal resulting in $0.14 of that quarter's $0.20 in earnings being attributed to weather. The utility's results were positively impacted by tax benefits allocated to it in accordance with Entergy's consolidated tax allocation agreement. This agreement, which is required of all public utility holding companies under the Public Utilities Holding Company Act of 1935, allocates consolidated tax benefits recorded at the Parent to the appropriate Entergy companies during the fourth quarter of each year. Because the allocation occurs between the Parent and Entergy subsidiaries, there is no net impact on consolidated earnings. Very mild weather and lower usage in fourth quarter 2001 reduced residential sales by 11 percent, compared to fourth quarter 2000. This decrease was 2 percent after adjusting for weather. Commercial sales were 1 percent lower, while industrial sales experienced a 9 percent reduction quarter over quarter. The reduction in industrial sales was due to continued weakness in usage particularly in the chemical and steel sectors and to reclassifying certain industrial customers from retail to wholesale. After removing the impact of the reclassification, the reduction in industrial sales was approximately 4 percent. The impact of reduced sales and net revenues was partially offset by lower expenses in 2001. Operation and maintenance expenses per megawatt hour generated were down 5 percent for the quarter due to lower storm damage expenses as well as reduced nuclear and transition to competition related costs. For the year 2001, the utility earned $2.46 per share on an operational basis, compared with $2.65 in 2000. The higher earnings in 2000 were due to more favorable weather. On a weather-adjusted basis, 2001 earnings improved by 6% over 2000 results, again reflecting increased tax benefits and lower operation and maintenance expenses, partially offset by weaker sales volume. The utility continued to improve reliability and customer service as evidenced by a reduction of 53 percent in the number of outage complaints to regulators compared to fourth quarter 2000. Also, the utility's twelve-month ended average outage frequency and average outage duration decreased by 5 percent and 6 percent, respectively and these improvements were achieved while the number of accidents was significantly reduced. Table 2 provides a summary of the utility's key operational measures with quarter to quarter and year-to-date comparisons. - ----------------------------------------------------------------------------- Table 2: Utility Operational Performance Measures Fourth Quarter and Year-to-Date 2001 vs. 2000 (see table 13 for definitions of measures) - ----------------------------------------------------------------------------- Fourth Quarter Year-to-Date 2001 2000 % 2001 2000 % Change Change Utility Generation in GWh 21,245 21,845 -3% 94,610 95,064 -0.5% GWh billed Residential 6,309 7,055 -11% 31,080 31,998 -3% Commercial and Gov't 6,499 6,559 -0.9% 27,299 27,262 0.1% Industrial 10,098 11,070 -9% 41,577 43,956 -5% Weather degree day (815) 1,703 -148% 1,538 2,497 -38% deviation from normal Operation & maintenance expense $19.44 $20.50 -5% $15.55 $16.53 -6% Reliability SAIFI 2.13 2.24 -5% SAIDI 162 172 -6% Reliability complaints 22 47 -53% 119 219 -46% Safety 3 10 -70% 27 39 -31% Number of customers Residential 2,218,410 2,205,539 0.6% Commercial & Gov't 311,215 303,777 3% Industrial 41,125 42,016 -2% - ----------------------------------------------------------------------------- Parent & Other Parent & Other as reported loss per share was $(0.20) in fourth quarter 2001, compared with $(0.13) in fourth quarter 2000. The increased loss in fourth quarter 2001 was due primarily to higher income tax benefits being allocated from Parent to Entergy subsidiaries for the 2001 period compared to 2000. Also, higher levels of interest expense reduced Parent & Other results in 2001 compared to 2000. Fourth quarter 2001 results included a $(0.03) adjustment, treated as a special item, for the write-off of Entergy's e-commerce investment in MyHomeKey. For the full year, Parent & Other had an operational loss of $(0.18) in 2001 compared with income of $0.07 in 2000. Year-to-date results for the Parent reflect the impact of significantly higher tax benefits allocated from the Parent to other Entergy subsidiaries. This combined with lower cash balances and the resulting decrease in interest income, as well as higher interest expense, negatively impacted the Parent's results in 2001. Competitive Businesses On an as reported basis, the competitive businesses earned $0.09 per share in fourth quarter 2001 compared to $0.12 earned in the same period of 2000. Fourth quarter 2001 results include several special items totaling $(0.06). These special items primarily reflect charges taken for the anticipated loss in connection with the planned sale of Latin American assets and severance and restructuring costs in the power development business. Partially offsetting these charges was a gain associated with recording the cumulative effect of applying mark to market accounting to the Damhead Creek gas contract and a true up to the gain previously recognized on the sale of the Saltend project. Excluding these special items, operational earnings increased 25 percent, from $0.12 in fourth quarter 2000 to $0.15 in fourth quarter 2001. For the full year, the competitive businesses had operational income of $0.95 in 2001 compared to $0.40 for the year 2000. The significantly higher earnings in 2001 are due primarily to the growth in and outstanding performance of the non-utility nuclear business combined with very solid performance from the Entergy-Koch trading and pipeline businesses. Table 3 provides a 2001 vs. 2000 comparison of contributions by competitive business for fourth quarter and year-to-date, on both as reported and operational bases. - ---------------------------------------------------------------------- Table 3: Competitive Businesses Contributions to Earnings Per Share Fourth Quarter and Year-to-Date 2001 vs. 2000 - ---------------------------------------------------------------------- (Per share in U.S. $) Fourth Quarter Year-to-Date 2001 2000 $ 2001 2000 $ Change Change As Reported Entergy Nuclear 0.13 0.09 0.04 0.57 0.22 0.35 Energy Commodity Services (0.04) 0.03 (0.07) 0.47 0.24 0.23 -------------------------------------- Total 0.09 0.12 (0.03) 1.04 0.46 0.58 Less Special Items Entergy Nuclear - - - - - - Energy Commodity Services (0.06) - (0.06) 0.09 0.06 0.03 -------------------------------------- Total (0.06) - (0.06) 0.09 0.06 0.03 Operational Entergy Nuclear 0.13 0.09 0.04 0.57 0.22 0.35 Energy Commodity Services 0.02 0.03 (0.01) 0.38 0.18 0.20 -------------------------------------- Total 0.15 0.12 0.03 0.95 0.40 0.55 - ---------------------------------------------------------------------- Entergy Nuclear Entergy Nuclear (EN) earned $0.13 per share compared to $0.09 in fourth quarter 2000. The increase was due primarily to increased revenue resulting from the contribution for the full quarter in 2001 of Indian Point 2 and Indian Point 3, and the FitzPatrick nuclear units. EN reviewed all security measures at each of its nuclear sites subsequent to the events of September 11, 2001. Fourth quarter 2001 results include all costs in connection with such reviews and any associated work, the sum of which did not have a material impact on quarterly results. EN's average capacity factor was 95.4 percent for fourth quarter 2001, which reflects continued improvement over the already outstanding results achieved in 2000. This excellent performance has been achieved while the operating fleet has expanded by three nuclear units. For the full year, EN had operational earnings of $0.57 compared to $0.22 for year 2000. The 159 percent increase in earnings is due to a full year of operations at Indian Point 3 and FitzPatrick and the contribution of Indian Point 2 since its acquisition in September 2001. EN's exceptional financial performance reflects its ability to both acquire and close new acquisitions, and to integrate and operate its assets at optimal performance levels. EN expanded its MW in operation by 39 percent and the GWH it generates by 139 percent over one year ago and did so while creating an extremely safe and efficient environment at each of its operating sites. Currently, EN has 100 percent of the output of its generating assets sold through the end of 2002 at prices that range from $30 to $40 per megawatt hour. Table 4 provides a summary of Entergy Nuclear's key operational measures with quarter to quarter and year-to-date comparisons. - ---------------------------------------------------------------------- Table 4: Entergy Nuclear Operational Performance Measures Fourth Quarter and Year-to-Date 2001 vs. 2000 (see table 13 for definitions of measures) - ---------------------------------------------------------------------- Fourth Quarter Year-to-Date 2001 2000 % 2001 2000 % Change Change Entergy Nuclear Net MW in operation 3,445 2,475 39% Generation in GWh 7,260 3,035 139% 22,614 7,171 215% Capacity factor 95.4% 95.2% 0.2% 92.70% 94.40% -2% Refueling outage duration No refueling outages during the quarter - - - - ---------------------------------------------------------------------- Energy Commodity Services Energy Commodity Services, the combined reporting of Entergy-Koch L.P. and Entergy Wholesale Operations, recorded a loss of $(0.04) per share in fourth quarter 2001 compared to income of $0.03 in the same period last year. On an operational basis, earnings were $0.02 per share compared to $0.03 in fourth quarter 2000. Entergy-Koch Trading, a subsidiary of Entergy-Koch L.P., contributed operational earnings through both its power and gas trading during fourth quarter in spite of significantly lower volatility in power markets and extremely mild weather. At the end of the year, Entergy- Koch expected its trading book to be converted to cash in accordance with the following schedule: 10% within 12 months and 83% within 24 months. The Gulf South pipeline realized lower earnings in fourth quarter 2001 due primarily to a 3 percent decrease in pipeline throughput. Milder- than-normal temperatures decreased gas volumes transported and reduced the levels of gas withdrawn from storage facilities with a resultant reduction in income from these activities. Gulf South did achieve lower production costs which partially offset the impact of unfavorable weather conditions. Entergy Wholesale Operations recorded a $(0.06) special item in fourth quarter 2001. This loss reflects charges taken in connection with the anticipated sale of Latin American assets as well as certain restructuring costs. These charges were partially offset by income recorded to recognize the cumulative effect of marking to market the Damhead Creek gas contract and a true up adjustment in connection with the previous sale of the Saltend project. As of the end of fourth quarter 2001, Entergy Wholesale Operations had 2,410 net MW in operation, an increase of 99 percent due primarily to the start of commercial operations of Damhead Creek and Warren Power. In addition, MW under construction decreased by 81 percent due to the start of commercial operations of Saltend, Damhead Creek, and Warren Power subsequent to fourth quarter 2000, offset slightly by the addition of two new projects in development. Currently, EWO has approximately 55 percent of its operational assets hedged through the end of 2002 at prices that range from $30 to $50 per megawatt hour. For the full year, Energy Commodity Services had $0.38 in operational earnings per share compared to $0.18 one year ago. The growth in earnings year over year primarily resulted from the strong performance of the trading and gas pipeline businesses of Entergy-Koch L.P., which began operations in February 2001. These results were affected by certain terms of the Entergy-Koch L.P. partnership agreement that allocate income disproportionately to Entergy. Table 5 provides a summary of Energy Commodity Services' key operational measures with quarter to quarter and year-to-date comparisons. - ---------------------------------------------------------------------- Table 5: Energy Commodity Services Operational Performance Measures Fourth Quarter and Year-to-Date 2001 vs. 2000 (see table 13 for definitions of measures) - ---------------------------------------------------------------------- Fourth Quarter Year-to-Date 2001 2000 % 2001 2000 % Change Change Entergy-Koch Trading Electricity volatility 39% 74% -47% 66% 84% -21% Gas volatility 91% 79% 15% 81% 51% 59% Electricity marketed (GWh) 26,378 37,435 -30% 108,645 118,327 -8% Gas marketed (Bcf/d) 7.1 6.5 9% 6.9 6.5 6% Gain/loss days 2.2 1.8 22% 2.8 2.4 17% Gulf South Pipeline Throughput 2.51 2.60 -3% 2.45 2.54 -4% Production cost $0.098 $0.114 -14% $0.093 $0.098 -1% Entergy Wholesale Operations Net MW in operation 2,410 2,410 99% Net MW under construction 373 2,000 -81% Net MW announced development 5,953 2,301 159% - ---------------------------------------------------------------------- Variance Analysis Table 6 below and Table 7 on the following page, provide fourth quarter and year-to-date 2001 vs. 2000 reported earnings variance analyses for "U.S. Utility, Parent & Other," "Competitive Businesses," and "Consolidated." - ---------------------------------------------------------------------- Table 6: Entergy Corporation Reported Earnings Per Share Variance Analysis Fourth Quarter 2001 vs. 2000 - ---------------------------------------------------------------------- (Per share in U.S. $, sorted in consolidated column, most to least favorable) U.S. Utility, Parent & Competitive Other Businesses Consolidated 2000 earnings 0.07 0.12 0.19 Cumulative effect of accounting change - 0.10 (a) 0.10 Income taxes - other 0.08 (b) 0.01 (b) 0.09 Net revenue (loss) (0.32) (c) 0.40 (d) 0.08 Other income (deductions) (0.01) 0.04 (e) 0.03 Gain (loss) on sale of assets-net - 0.01 0.01 Decommissioning expense 0.01 - 0.01 Taxes other than income taxes 0.03 (0.03) - Nuclear refueling outage expense - (0.02) (0.02) Depreciation/amortization expense - (0.02) (0.02) Interest and dividend income (0.05) (f) 0.03 (0.02) Interest expense and other charges - (0.08) (g) (0.08) Other operation & maintenance expense 0.19 (h) (0.47) (i) (0.28) ----- ----- ----- 2001 earnings - 0.09 0.09 ----- ----- ----- - ---------------------------------------------------------------------- Notes to Table 6 are detailed on the following page below Table 7. - ---------------------------------------------------------------------- Table 7: Entergy Corporation Reported Earnings Per Share Variance Analysis Year-to-Date 2001 vs. 2000 - ---------------------------------------------------------------------- (Per share in U.S. $, sorted in consolidated column, most to least favorable) U.S. Utility, Parent & Competitive Other (a) Businesses Consolidated 2000 earnings 2.51 0.46 2.97 Net revenue (loss) (0.90) (c) 1.60 (d) 0.70 Other income (deductions) (0.04) 0.34 (e) 0.30 Income taxes - other 0.17 (b) (0.05) (b) 0.12 Decommissioning expense 0.10 (j) - 0.10 Cumulative effect of accounting change - 0.10 (a) 0.10 Share repurchase/dilution effect 0.05 0.02 0.07 Depreciation/amortization expense 0.18 (k) (0.11) (l) 0.07 Preferred dividend requirements 0.03 - 0.03 Gain (loss) on sale of assets-net - 0.01 0.01 Interest and dividend income (0.05) (f) 0.04 (0.01) Nuclear refueling outage expense 0.01 (0.06) (m) (0.05) Taxes other than income taxes 0.01 (0.09) (n) (0.08) Interest expense and other charges (0.22) (o) (0.27) (g) (0.49) Other operation & maintenance expense 0.34 (h) (0.95) (i) (0.61) ----- ----- ----- 2001 earnings 2.19 1.04 3.23 ----- ----- ----- - ---------------------------------------------------------------------- (a) Cumulative effect of accounting change is due to required adoption of a recent accounting pronouncement that resulted in the recognition of mark to market revenue on Damhead Creek's gas procurement contract with Shell. (b) Income statement line items are tax effected at the statutory rate. Any difference between the statutory and effective tax rate is reflected in the "Income tax-other" line. (c) Net revenue decreased in fourth Utility Net Revenue Variance quarter and year-to-date 2001 due Analysis, 2001 vs. 2000 ($ primarily to significantly milder EPS) weather in 2001 vs. 2000 and the impact of lower sales volumes across most retail customer segments due to the sluggish economy. Also, continued milder than normal weather near the end of the quarter negatively impacted unbilled revenue which is included in Other for the fourth quarter and year-to-date periods. In addition, the System Energy Resources' refund impacted year-to-date 2001 net revenue when compared to 2000 results. Finally, net revenue was impacted in the quarter and year-to-date due to higher Transition to Competition Account accruals at Entergy Arkansas resulting from the absence of ice storm expenses in 2001 which served to offset this accrual in 2000. Utility Net Revenue Variance Analysis, 2001 vs. 2000 ($ EPS) Fourth Quarter Year-to-Date Weather (0.16) Weather (0.33) SERI Refund - SERI refund (0.19) TCA (0.07) TCA (0.06) Sales growth/pricing (0.07) Sales growing/pricing (0.20) Other (0.02) Other (0.12) Total (0.32) Total (0.90) (d) Net revenue increased primarily as a result of the inclusion of a full quarter of operations from the Indian Point 3 and FitzPatrick plants and Indian Point 2, all of which totaled $0.36 and $1.30 per share for the quarter and year-to-date periods, respectively. Also, gains on the disposition of assets, primarily related to the sale of Saltend, increased net revenue by $0.05 and $0.23, respectively, for the quarter and year-to-date periods. (e) Quarter and year-to-date other income (deductions) increased due primarily to Entergy-Koch earnings. In addition, the year-to-date variance was impacted by the difference between liquidated damages recorded in both periods. In 2001, $0.04 in liquidated damages were recorded for Damhead Creek, while in 2000, Saltend liquidated damages totaled $0.17. (f) Interest and dividend income decreased due to lower interest income earned given declining deferred fuel balances as well as lower rates earned on investments generally. (g) Interest expense & other charges increased for the quarter and year-to-date periods due to financing Indian Point 2 and 3 and FitzPatrick acquisitions and the inclusion of Saltend and Damhead Creek interest expense, which was previously being capitalized during construction. (h) Other operation & maintenance expense decreased for the quarter and year-to-date periods due primarily to the fourth quarter 2000 adjustment of $(0.12) in the carrying value of certain Latin American projects, the recognition of $0.07 of storm damages in the comparable 2000 periods which was not incurred in 2001. In addition, lower nuclear and transition to competition costs were incurred in 2001. (i) Other operation & maintenance expense increased due primarily to inclusion of operations from Indian Point 2 and 3, FitzPatrick, Saltend and Damhead Creek as well as the impact of recording loss reserves on the planned sale of Latin American assets and other projects in development. (j) Decommissioning expense decreased due primarily to recording the effects of the FERC order addressing System Energy Resources' 1995 rate application. (k) Depreciation expense decreased due primarily to recording the effects of the FERC order addressing System Energy Resources' 1995 rate application, partially offset by increased plant additions. (l) Depreciation expense increased due to increased depreciation on U.K. assets, Indian Point 2 and 3 and FitzPatrick. (m) Nuclear refueling outage expense increased due to the amortization of this cost for Pilgrim and Indian Point 3. (n) Other taxes expense increased due to higher property taxes incurred for Indian Point 3 and FitzPatrick. (o) Interest expense & other charges increased primarily due to recording the effects of the FERC order addressing System Energy Resources' 1995 rate application, additional debt at the utility and parent, and increased interest expense on regulatory reserves. Table 8 lists special items by business for fourth quarter and year-to- date for 2001 and 2000. Special items are those events that are non- routine, related to prior periods, or related to discontinued operations. - ----------------------------------------------------------------------------- Table 8: Entergy Special Items [shown as positive / (negative) impact on earnings] Fourth Quarter and Year-to-Date 2001 vs. 2000 - ----------------------------------------------------------------------------- (Per share in U.S. $) Fourth Quarter Year-to-Date 2001 2000 $ 2001 2000 $ Change Change U.S. Utility Special Items Merger expenses - - - (0.01) - (0.01) Regulatory and reserve adjustments - - - - (0.09) 0.09 ------------------------------------------ Total - - - (0.01) (0.09) 0.08 ------------------------------------------ Parent & Other Special Items Merger expenses - - - (0.05) - (0.05) Write-down of MyHomeKey (0.03) - (0.03) (0.03) - (0.03) investment Write-down of Latin American - (0.12) 0.12 - (0.12) 0.12 assets ------------------------------------------ Total (0.03) (0.12) 0.09 (0.08) (0.12) 0.04 ------------------------------------------ Competitive Businesses Special Items Energy Commodity Services - Freestone project sale - - - - 0.06 (0.06) Severance costs - EWO (0.02) - (0.02) (0.02) - (0.02) Gain (loss) on disposition (0.14) - (0.14) 0.01 - 0.01 of assets - net Damhead Creek mark to 0.10 - 0.10 0.10 - 0.10 market gas contract ------------------------------------------ Total (0.06) - (0.06) 0.09 0.06 0.03 ------------------------------------------ Total Special Items (0.09)(0.12) 0.03 - (0.15) 0.15 - ----------------------------------------------------------------------------- (p) Includes gains (losses) on various assets as follows: Latin America $(0.14), development projects $(0.06), Highland $(0.01), HubCo $0.01, Saltend true-up $0.05. Total reflects rounding. Other Performance Highlights Entergy generated $987 million in operating cash in fourth quarter 2001, approximately $200 million of which is attributed to a federal tax refund associated with tax deductions received as a result of storm damage costs incurred in 2000. Excluding this item, operating cash flow increased 48 percent compared to fourth quarter 2000. This significant increase in quarterly operating cash is attributed primarily to increased collections in 2001 of previously deferred fuel costs and favorable timing differences that reduced taxes paid. At year-end Entergy had approximately $752 million of cash and cash equivalents. Net margin was 7.6 percent, its highest level in nearly five years. Return on average investment for the twelve months ended December 2001 was again above 7 percent which makes 2001 the first time in six years that Entergy has sustained ROIC above 7 percent for a full year. The balance sheet remains strong as well as indicated by a net debt ratio below 50 percent. Entergy's credit ratios remain among the strongest in the industry, historically ranking in the top quartile among SPELEC companies. The current level of cash along with significant borrowing capacity continues to provide significant financial flexibility to Entergy. The off-balance sheet debt, totaling $955 million, constitutes a relatively small portion of the overall capitalization. Table 9 provides a summary of financial measures for fourth quarter and year to date 2001 and 2000. - ---------------------------------------------------------------------- Table 9: Entergy Corporation Key Financial Performance and Flexibility Measures Fourth Quarter and Year-to-Date 2001 vs. 2000 (see table 13 for definitions of certain measures) - ----------------------------------------------------------------------
Fourth Quarter Year-to-Date 2001 2000 Change 2001 2000 Change Operating cash flow (millions) $987 $530 $457 $2,216 $1,968 $248 Operating cash flow per share $4.39 $2.37 $2.02 $9.86 $8.61 $1.25 For 12 months ending December 31 2001 2000 Change Cash return on average investment 8.18% 8.58% (0.40)% Return on average common equity 10.04% 10.13% (0.09)% Net margin - operational 7.55% 7.17% 0.38% Net interest coverage 3.98 5.82 (1.84) Book value per share $33.78 $31.89 $1.89 End of period shares outstanding 220.7 219.6 1.1 (millions) As of December 31 ($ in millions) 2001 2000 Change Revolver capacity $1,210 $113 $1,097 Total gross liquidity $1,962 $1,495 $467 Excess liquidity $779 $573 $206 Total debt $8,227 $7,854 $373 Off-balance sheet liabilities: Project debt $265 - $265 Debt of joint ventures - Entergy's 347 $102 245 share Leases - Entergy's share 343 398 (55) ----------------------- Total off-balance sheet liabilities $955 $500 $455 Rating or other contingent liabilities $225 - $225 Net debt 49.7% 49.8% (0.1)% Net debt including off-balance sheet 52.5% 51.4% 1.1% liabilities
- ---------------------------------------------------------------------- Entergy will continue to invest in both its core utility business as well as growth opportunities aimed at expanding and leveraging the advantages offered by its integrated business strategy. The company's current cash position and its considerable liquidity position combine to solidly support the current investment plan with significant flexibility to pursue other opportunities should they become available. Planned Capital Expenditures - 2002-2004 Over the next three years Entergy plans to continue to invest in its utility business for reliability improvements and customer growth. Capital investment in Entergy's non-utility nuclear business over this same period will go towards maintenance improvements, power uprates, nuclear fuel procurement, and the purchase of the Vermont Yankee nuclear plant scheduled to close in June or July 2002. Energy Commodity Services plans to invest in merchant power projects currently under construction, including the purchase of gas turbines under contract for delivery in 2002 through 2004. The company continues to consider its options with respect to its turbine investment including using turbines in development projects or selling turbines with or without identified development sites. The capital expenditures plan for 2002-2004 does not include potential acquisitions of any assets that may be offered for sale by outside parties or any additional capital investment in Entergy-Koch, which is an unconsolidated equity investment. Lastly, Entergy management is actively considering a share repurchase program and expects to reach a decision sometime in 2002. The impact of such a program is not reflected in the planned expenditures detailed in Table 10 or in the earnings guidance in Table 11. Table 10 provides a summary of projected capital expenditures for the years 2002 through 2004. --------------------------------------------------------------- Table 10: Entergy Corporation Projected Capital Expenditures Years 2002-2004 (Dollars in billions) --------------------------------------------------------------- 2002 2003 2004 Total Utility 1.0 0.9 0.9 2.8 Entergy Nuclear 0.4 0.2 0.1 0.7 Energy Commodity Services 0.3 0.3 0.2 0.8 ------------------------------- Total 1.7 1.4 1.2 4.3 --------------------------------------------------------------- Financial Outlook and and Earnings Review "The year 2001 reflected a steady improvement in weather-adjusted results at the utility and robust growth in the competitive businesses," said C. John Wilder, Entergy's chief financial officer. "Excellent results were achieved during a period when market dynamics and economic conditions were negatively impacting many businesses in our sector. In addition, the underlying strength of our company continues to solidify as evidenced by a 29 percent improvement in return on equity since mid 1998, and a 21 percent improvement in return on invested capital over that same three and one-half year period. Also, Entergy has a strong foundation for growth built on a balance sheet that includes a net debt to total capital ratio below 50 percent. We are therefore confident that 2002 will be another very positive year and we are raising 2002 guidance to $3.40 to $3.60, exclusive of the impact of weather." Earnings Guidance Entergy's 2002 earnings guidance is detailed in Table 11 below. Key assumptions reflected in the earnings ranges estimated in Table 11 are as follows: - Approximately 70 percent of 2002 earnings are expected to come from the utility. Earnings guidance is based on existing rate plans and fuel recovery mechanisms. The utility's previous guidance range of $2.41 to $2.45 was increased to $2.50 to $2.55 to reflect continued strength in operating performance and lower expense. The incremental increase expected in 2002 is the result of modest operational improvements, and the full impact of the cessation of goodwill amortization. - About 20 percent of earnings are expected from Entergy Nuclear where prices are hedged by power purchase agreements that cover 100 percent of the megawatt hours generated. The previous guidance range of $0.64 to $0.74 was increased to $0.70 to $0.75 to reflect improved operating performance at Indian Point 2 and the addition of Vermont Yankee, a 510 MW nuclear acquisition that is expected to close in June or July 2002. - Energy Commodity Services' overall 2002 earnings guidance remains essentially unchanged from previous guidance and reflects continued weak power prices and moderate volatility. ECS's initial guidance is based on a 50% share of income from Entergy-Koch L.P. Guidance will be adjusted during the year to reflect disproportionate sharing of income if realized. - Parent & Other's guidance is adjusted from the previous range of $(0.11) to $(0.10) to the revised range of $(0.15) to $(0.10) to reflect declining yields on cash balances and slightly higher corporate expenses. Table 11 provides Entergy's projection of 2002 operational earnings per share with 2001 operational earnings as its data starting point.
- ------------------------------------------------------------------------------------------- Table 11: 2002 Earnings Per Share Guidance - ------------------------------------------------------------------------------------------- (Per share in US $) 2001 2002 Guidance Operational Changes in 2002 Range Range of Impact Utility excluding weather Operational improvement & other 0.04 0.09 Allocation of Parent's tax benefits (q) (0.8) (0.08) Suspension of goodwill amortization 0.07 0.07 ------------ 2.47 Total 0.03 0.08 2.50 2.55 Entergy Nuclear Indian Point 2 (full year) / Vermont Yankee closing (r) 0.12 0.15 Increased revenue due to Pilgrim PPA 0.04 0.05 Capacity factor normalization / outage differences (s) (0.03) (0.02) ------------ 0.57 Total 0.13 0.18 0.70 0.75 Entergy Commodity Entergy-Koch, full year contribution (t) (0.12) (0.08) Services No Saltend operating losses or liquidated damages income on Damhead Creek 0.05 0.05 Lower project losses/new project earnings/other (u) 0.04 0.05 ------------ 0.38 Total (0.03) 0.02 0.35 0.40 Parent & Other Allocation of Parent's tax benefits (q) 0.10 0.10 Other corporate expenses (0.01) 0.03 Net interest income/(expense) (0.06) (0.05) ------------ (0.18) Total 0.03 0.08 (0.15) (0.10) ----------------------------------------------------------------- Total 3.24 0.16 0.36 3.40 3.60 Weather impact (0.01) - - Total including weather 3.23 3.40 3.60 - -------------------------------------------------------------------------------------------
(q) Reflects tax benefits allocated from Parent to Utility $0.08, ENI $0.01 and ECS $0.01, in accordance with consolidated tax allocation agreement as required by Public Utilities Holding Company Act. (r) Assumes planned refueling outages for both plants in fall 2002. (s) Assumes normalized capacity factor for overall fleet, 87 to 90 percent, planned refueling outage at FitzPatrick, and non-outage year at Indian Point 3 and Pilgrim. (t) Assumes 50 percent sharing of income. (u) Assumes 55 percent of portfolio is hedged. Partnerships and Special Purpose Entities Table 12 provides a summary of the key terms associated with Entergy's partnerships and special purpose entities. - ------------------------------------------------------------------------ Table 12: Recap of Entergy Partnerships and Special Purpose Entities (v) - ------------------------------------------------------------------------ Entergy - Koch Entergy Shaw Turbine Trust - ------------------------------------------------------------------------ Partner - Koch Energy, Inc. - The Shaw Group - Not Applicable - ------------------------------------------------------------------------ Business - Electricity, gas and - Engineering - Funding for weather derivatives and construction Entergy's turbines marketing and trading (EK Trading) - Gas transportation (Gulf South pipeline) - ------------------------------------------------------------------------ Ownership - 50% owned by Entergy - 50% owned by - 100% owned by a Structure - 50% owned by Koch Entergy financial institution Energy, Inc. - 50% owned by acting as trustee for the Shaw Group equity investors that are not affiliated with Entergy - ------------------------------------------------------------------------ Capital - At the start of the - At the start - Not applicable Accounts venture, Entergy's of the venture, capital account Entergy's represented 38% of capital account total represented 50% - Capital accounts are of total expected to be equal - Capital in 2004 as a result of accounts are disproportionate expected to sharing of income remain equal as - At the beginning of a result of 2004, capital account equal working balances will be capital assessed; equalizing contributions, mechanisms will be if required and applied equal sharing of - If the equalizing all items of mechanisms result in income, gain, Entergy's capital deduction or account exceeding 50%, loss Entergy will receive disproportionately lower income to allow the capital accounts to become equal - ------------------------------------------------------------------------ Earnings - Through the end of - For Entergy- - Not applicable and Risk 2003, income on owned projects, Sharing various product lines Entergy bears Provisions and geographies are virtually all of disproportionately the risk of cost allocated to address overruns and valuation differences Entergy receives - Through the end of a 2003, Entergy receives disproportionate disproportionately share of higher income to allow construction the capital accounts cost savings to equalize - For third - Losses and party projects, distributions are cost overruns allocated equally in and income are all years shared on a pro rata basis by Entergy and the Shaw Group - ------------------------------------------------------------------------ Debt & - $300 million in - No debt - $450 million credit Credit privately placed debt - No credit facility, of which Rating - $325 million credit rating $265 million was facility drawn at December 31, - Credit rating of A 2001 assigned by Standard - No credit rating and Poor's; A3 assigned by Moody's - ------------------------------------------------------------------------ Buyout - Shotgun buyout - Shotgun buyout - Entergy may cancel Provisions rights apply to both rights apply to turbines before they partners beginning in both partners are completed for a 2004 beginning in cost of up to 40% of - Right of first offer September 2003 total cost may be exercised by - Right of first - Upon completion, either partner refusal may be Entergy may reacquire beginning in 2004 exercised by the turbines under a either partner lease or purchase beginning in option, or remarket September 2003 the turbines - If Entergy fails to lease, purchase or remarket fully completed turbines, it is obligated to pay up to 89.9% of the turbine costs - ------------------------------------------------------------------------ ETR's - $350 million cash at - $2 million - Entergy guarantee Equity closing in February cash at closing of $225 million at Contribu 2001 in September December 31, 2001 tions/ - $72.75 million cash 2000 - Cash collateral up Corporate on January 1, 2004 - 50% of future to the amount of Guarantes - No contract working capital Entergy guarantee may provisions exist that requirements be required if senior require Entergy to debt of Entergy or post additional cash two or more of or stock Entergy subsidiaries are downgraded to below investment grade - ------------------------------------------------------------------------ ETR's - Energy Commodity - No - No contribution 2002 Services' 2002 contribution included Earnings guidance reflects 50% included Guidance share of EK income, consistent with what Entergy expects over the long term; adjustments will be made to guidance during the year if disproportionate sharing is realized - ------------------------------------------------------------------------ (v) Does not include other special purpose entities that are otherwise included in Entergy's consolidated reported financial results. Supplemental Definitions Table 13 provides definitions of certain operational and financial performance measures referenced in this release. ---------------------------------------------------------------------- Table 13: Definitions of Operational and Financial Performance Measures ---------------------------------------------------------------------- Operational Measures ---------------------------------------------------------------------- Utility Generation in GWh Total number of GWh produced by all utility generation facilities GWh billed Total number of GWh billed to all customer classes Weather cooling day The deviation from historical normal deviation from normal temperatures, measured in degree days. Operation & maintenance Operation and maintenance and nuclear expense refueling expenses per MWh generated, excluding fuel SAIFI System average interruption frequency index SAIDI System average interruption duration index Reliability complaints Number of complaints to regulators concerning reliability issues Safety Number of accidents resulting in lost work time Number of customers Year-to-date average number of customers Entergy Nuclear Net MW in operation Installed capacity owned or operated by Entergy Nuclear Generation in GWh Total number of GWh produced by all non- utility nuclear facilities Capacity factor The percentage of the period that the plant generates power calculated by dividing the output by the capacity and normalizing the time period Refueling outage duration Number of generation days lost for a scheduled refueling outage Energy Commodity Services Entergy-Koch Trading Gas volatility Average volatility of Henry Hub spot prices for the period Electricity volatility Average volatility of into-Entergy power prices for the period Electricity marketed Total physical GWh volumes marketed (GWh) during the period Gas marketed (Bcf/d) Physical Bcf/d volumes marketed during the period Gain/loss days Ratio of days where trading gains exceeded trading losses in the aggregate across all commodities Gulf South Pipeline Throughput Gas in Bcf/d transported by the pipeline during the period Production cost Cost in $/mmbtu associated with delivering gas, excluding cost of gas Entergy Wholesale Operations Net MW in operation Total MW owned and operated Net MW under construction Total MW owned and under construction Net MW announced in Total possible MW that have been development announced publicly ---------------------------------------------------------------------- Financial Measures ---------------------------------------------------------------------- Cash return on average 12-months rolling EBITDA divided by investment average investment, which is net plant plus accumulated depreciation plus working capital Return on average common 12-months rolling net income divided by equity average common equity Net margin - operational 12-months rolling net income adjusted to exclude the impact of special items divided by 12 months rolling revenue Net interest coverage 12-months rolling EBITDA divided by 12- months rolling net interest expense, which is gross interest less dividend and interest income Revolver capacity Amount of capacity remaining on corporate and subsidiary revolvers Total gross liquidity Sum of cash and revolver capacity Excess liquidity Difference between total gross liquidity and short-term debt, including repayment of the revolver Total debt Sum of short-term and long-term debt and capital leases less non-recourse debt Project debt Financing at subsidiaries to support specific projects Debt of joint ventures Debt issued for Entergy-Koch L.P. and RS (50% share) Cogen joint ventures Leases Operating leases held by subsidiaries capitalized at implicit interest rate Rating or other Parent guarantees for which cash contingent liabilities collateral may be required in event of downgrade below investment grade Net debt Gross debt less cash and cash equivalents divided by total capitalization less cash and cash equivalents Net debt including off- Sum of gross debt and off-balance sheet balance sheet liabilities debt less cash and cash equivalents divided by total capitalization less cash and cash equivalents ---------------------------------------------------------------------- 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 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 Consolidating Balance Sheet December 31, 2001 (Dollars in thousands) (Unaudited) U.S. Parent & Competitive Eliminations Consolidated Utilities Other Businesses ASSETS CURRENT ASSETS Cash and cash equivalents: Cash $ 94,340 $ 2,638 $ 32,888 $ - $ 129,866 Temporary cash investments - at cost, which approximates market 360,491 25,239 232,598 - 618,327 Special deposits - 267 3,113 - 3,380 ----------- ---------- ----------- ----------- ----------- Total cash and cash equivalents 454,831 28,144 268,599 - 751,573 ----------- ---------- ----------- ----------- ----------- Other temporary investments 145,218 4,782 - - 150,000 Notes receivable 73 293,621 239,678 (531,235) 2,137 Accounts receivable: Customer 294,691 108 (1) - 294,799 Allowance for doubtful accounts (8,847) (2,064) (8,345) - (19,255) Associated companies 26,876 94,578 (77,107) (44,347) - Other 146,143 4,240 135,339 950 286,671 Accrued unbilled revenues 268,578 - 102 - 268,680 ----------- ---------- ----------- ----------- ----------- Total receivables 727,441 96,862 49,988 (43,397) 830,895 Deferred fuel costs 172,444 - - - 172,444 Accumulated deferred income taxes 27,098 8 - (20,618) 6,488 Fuel inventory - at average cost 95,863 - 1,615 18 97,497 Materials and supplies - at average cost 325,713 30 134,900 - 460,644 Rate deferrals - - - - - Deferred nuclear refueling outage costs 27,332 - 52,424 - 79,755 Prepayments and other 100,423 3,444 25,385 - 129,251 ----------- ---------- ----------- ----------- ----------- TOTAL 2,076,436 426,891 772,589 (595,232) 2,680,684 ----------- ---------- ----------- ----------- ----------- OTHER PROPERTY AND INVESTMENTS Investment in affiliates - at equity 216 8,781,346 765,889 (8,781,347) 766,103 Decommissioning trust funds 854,705 - 921,245 - 1,775,950 Non-utility property - at cost (less accumulated depreciation) 224,688 41,307 29,621 - 295,616 Other 18,946 69,693 430,060 (23,158) 495,542 ----------- ---------- ----------- ----------- ----------- TOTAL 1,098,555 8,892,346 2,146,815 (8,804,505) 3,333,211 ----------- ---------- ----------- ----------- ----------- PROPERTY, PLANT, AND EQUIPMENT Electric 24,491,170 5,758 1,862,448 - 26,359,376 Plant acquisition adjustment 374,099 - 300 - 374,399 Property under capital lease 753,310 - - - 753,310 Natural gas 201,841 - - - 201,841 Construction work in progress 711,670 9,214 168,224 (6,278) 882,829 Nuclear fuel under capital lease 265,464 - - - 265,464 Nuclear fuel 36,611 - 195,775 - 232,387 ----------- ---------- ----------- ----------- ----------- TOTAL PROPERTY, PLANT AND EQUIPMENT 26,834,165 14,972 2,226,747 (6,278) 29,069,606 Less - accumulated depreciation and amortization 11,674,308 4,167 127,103 - 11,805,578 ----------- ---------- ----------- ----------- ----------- PROPERTY, PLANT AND EQUIPMENT - NET 15,159,857 10,805 2,099,644 (6,278) 17,264,028 ----------- ---------- ----------- ----------- ----------- DEFERRED DEBITS AND OTHER ASSETS Regulatory assets: SFAS 109 regulatory asset - net 946,126 - - - 946,126 Unamortized loss on reacquired debt 166,546 - - - 166,546 Deferred fuel costs - - - - - Other regulatory assets 707,439 - - - 707,439 Long-term receivables 28,091 (8) - - 28,083 Other 126,644 460,927 662,133 (465,511) 784,194 ----------- ---------- ----------- ----------- ----------- TOTAL 1,974,846 460,919 662,133 (465,511) 2,632,388 ----------- ---------- ----------- ----------- ----------- TOTAL ASSETS $20,309,695 $9,790,961 $ 5,681,181 $(9,871,526) 25,910,311 =========== ========== =========== =========== =========== *Totals may not foot due to rounding.
Entergy Corporation Consolidating Balance Sheet December 31, 2001 (Dollars in thousands) (Unaudited) U.S. Parent & Competitive Eliminations Consolidated Utilities Other Businesses LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES Currently maturing long-term debt $ 584,438 $ - $ 98,333 $ - $ 682,771 Notes payable: Associated companies - 229,444 302,774 (532,218) - Other 713 350,001 304 - 351,018 Account payable: Associated companies (3,677) 96,911 (62,040) (31,194) - Other 508,333 6,147 78,049 - 592,529 Customer deposits 188,176 53 - - 188,230 Taxes accrued 350,178 583,270 16,685 - 950,133 Accumulated deferred income taxes - - 20,618 (20,618) - Nuclear refueling outage costs 2,080 - - - 2,080 Interest accrued 180,276 2,239 9,905 - 192,420 Obligations under capital leases 149,352 - - - 149,352 Other 176,907 9,357 171,325 (12,203) 345,387 ----------- ---------- ----------- ----------- ----------- TOTAL 2,136,777 1,277,422 635,953 (596,233) 3,453,920 ----------- ---------- ----------- ----------- ----------- DEFERRED CREDITS AND OTHER LIABILITIES Accumulated deferred income taxes 3,558,937 (35,485) 51,212 - 3,574,664 Accumulated deferred investment tax credits 471,090 - - - 471,090 Obligations under capital leases 181,070 - 15 - 181,085 Other regulatory liabilities 135,878 - - - 135,878 Decommisioning 285,029 - 909,304 - 1,194,333 Transition to competition 231,512 - - - 231,512 Regulatory reserves 37,591 - - - 37,591 Accumulated provisions 291,192 (4) 134,210 - 425,399 Other 852,388 44,437 397,272 (441,828) 852,269 ----------- ---------- ----------- ----------- ----------- TOTAL 6,044,687 8,948 1,492,013 (441,828) 7,103,821 ----------- ---------- ----------- ----------- ----------- Long-term debt 6,007,199 15,307 1,360,464 (61,942) 7,321,028 Preferred stock with sinking fund 26,185 - - - 26,185 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 334,337 - - - 334,337 Common stock 2,225,870 402,665 1,566,689 (4,192,740) 2,482 Authorized shares 500,000,000 Issued shares CY 248,174,087 Paid-in capital 1,784,097 5,528,328 578,083 (3,227,805) 4,662,704 Retained earnings 1,535,757 3,387,557 164,110 (1,448,978) 3,638,448 Accumulated other comprehensive income (loss) (214) (70,447) (87,516) 69,383 (88,794) Less - treasury stock, at cost - 758,820 28,616 (28,616) 758,820 Shares CY 27,441,384 ----------- ---------- ----------- ----------- ----------- TOTAL 5,879,847 8,489,283 2,192,750 (8,771,524) 7,790,357 ----------- ---------- ----------- ----------- ----------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $20,309,695 $9,790,961 $5,681,181 $(9,871,526) $25,910,311 =========== ========== =========== =========== =========== * Totals may not foot due to rounding.
Entergy Corporation Consolidating Balance Sheet December 31, 2000 (Dollars in thousands) (Unaudited) U.S. Parent & Competitive Eliminations Consolidated Utilities Other Businesses ASSETS CURRENT ASSETS Cash and cash equivalents: Cash $ 46,511 $ 821 $ 110,218 $ - $ 157,550 Temporary cash investments - at cost, which approximates market 307,589 114,957 217,492 - 640,038 Special deposits - - 584,836 - 584,836 ----------- ---------- ---------- ----------- ----------- Total cash and cash equivalents 354,100 115,778 912,546 - 1,382,424 ----------- ---------- ---------- ----------- ----------- Other temporary investments - - - - - Notes receivable 1,544 780,878 - (778,814) 3,608 Accounts receivable: Customer 447,036 - 50,785 - 497,821 Allowance for doubtful accounts (7,383) (2,064) (500) - (9,947) Associated companies 21,587 124,533 5,348 (151,469) - Other 100,612 1,908 292,998 - 395,518 Accrued unbilled revenues 415,409 - - - 415,409 ----------- ---------- ---------- ----------- ----------- Total receivables 977,261 124,377 348,631 (151,469) 1,298,801 Deferred fuel costs 568,331 - - - 568,331 Accumulated deferred income taxes - - - - - Fuel inventory - at average cost 91,859 - 1,802 18 93,679 Materials and supplies - at average cost 338,494 (13) 86,876 - 425,357 Rate deferrals 16,581 - - - 16,581 Deferred nuclear refueling outage costs 46,544 - - - 46,544 Prepayments and other 54,323 2,838 65,528 - 122,690 ----------- ---------- ---------- ----------- ----------- TOTAL 2,449,037 1,023,858 1,415,383 (930,265) 3,958,015 ----------- ---------- ---------- ----------- ----------- OTHER PROPERTY AND INVESTMENTS Investment in affiliates - at equity 214 7,005,736 136,274 (7,005,737) 136,487 Decommissioning trust funds 867,242 - 448,615 - 1,315,857 Non-utility property - at cost (less accumulated depreciation) 224,443 33,741 4,768 - 262,952 Other 17,859 15,939 46,119 - 79,917 ----------- ---------- ---------- ----------- ----------- TOTAL 1,109,759 7,055,416 635,776 (7,005,737) 1,795,213 ----------- ---------- ---------- ----------- ----------- PROPERTY, PLANT, AND EQUIPMENT Electric 24,020,884 4,415 1,112,262 - 25,137,562 Plant acquisition adjustment 390,364 - 300 - 390,664 Property under capital lease 769,370 - 62,452 - 831,822 Natural gas 190,989 - - - 190,989 Construction work in progress 447,562 2,225 486,998 - 936,785 Nuclear fuel under capital lease 277,673 - - - 277,673 Nuclear fuel 38,848 - 118,755 - 157,603 ----------- ---------- ---------- ----------- ----------- TOTAL PROPERTY, PLANT AND EQUIPMENT 26,135,692 6,640 1,780,767 - 27,923,098 Less - accumulated depreciation and amortization 11,385,858 3,187 88,307 - 11,477,352 ----------- ---------- ---------- ----------- ----------- PROPERTY, PLANT AND EQUIPMENT - NET 14,749,834 3,453 1,692,460 - 16,445,745 ----------- ---------- ---------- ----------- ----------- DEFERRED DEBITS AND OTHER ASSETS Regulatory assets: SFAS 109 regulatory asset - net 980,266 - - - 980,266 Unamortized loss on reacquired debt 183,627 - - - 183,627 Deferred fuel costs 95,661 - - - 95,661 Other regulatory assets 792,515 - - - 792,515 Long-term receivables 29,586 6,000 (6,011) - 29,575 Other 177,147 417,735 978,441 (402,046) 1,171,278 ----------- ---------- ---------- ----------- ----------- TOTAL 2,258,803 423,735 972,430 (402,046) 3,252,922 ----------- ---------- ---------- ----------- ----------- TOTAL ASSETS $20,567,433 $8,506,463 $4,716,048 $(8,338,048) $25,451,896 =========== ========== ========== =========== =========== *Totals may not foot due to rounding.
Entergy Corporation Consolidating Balance Sheet December 31, 2000 (Dollars in thousands) (Unaudited) U.S. Parent & Competitive Eliminations Consolidated Utilities Other Businesses LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES Currently maturing long-term debt $ 309,738 $ - $154,477 $ - $ 464,215 Notes payable: Associated companies - 70,190 708,624 (778,814) - Other 715 387,000 308 - 388,023 Account payable: Associated companies 8,178 17,517 22,880 (48,575) - Other 877,052 6,915 320,260 - 1,204,227 Customer deposits 172,169 - - - 172,169 Taxes accrued 310,395 134,324 7,092 - 451,811 Accumulated deferred income taxes 225,629 20 - - 225,649 Nuclear refueling outage costs 10,209 - - - 10,209 Interest accrued 169,924 781 1,328 - 172,033 Obligations under capital leases 156,907 - - - 156,907 Other 176,505 10,864 22,760 (17,222) 192,908 ----------- ---------- ---------- ----------- ----------- TOTAL 2,417,420 627,611 1,237,729 (844,611) 3,438,151 ----------- ---------- ---------- ----------- ----------- DEFERRED CREDITS AND OTHER LIABILITIES Accumulated deferred income taxes 3,336,353 (80,078) (7,192) - 3,249,083 Accumulated deferred investment tax credits 494,315 - - - 494,315 Obligations under capital leases 201,858 - 15 - 201,873 Other regulatory liabilities 135,586 - - - 135,586 Decommisioning 295,801 - 453,907 - 749,708 Transition to competition 191,934 - - - 191,934 Regulatory reserves 396,789 - - - 396,789 Accumulated provisions 287,797 (10) 102,329 - 390,116 Other 719,070 104,349 439,982 (410,264) 853,137 ----------- ---------- ---------- ----------- ----------- TOTAL 6,059,503 24,261 989,041 (410,264) 6,662,541 ----------- ---------- ---------- ----------- ----------- Long-term debt 6,039,638 25,999 1,752,125 (85,669) 7,732,093 Preferred stock with sinking fund 65,758 - - - 65,758 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 334,688 - - - 334,688 Common stock 2,225,870 359,699 367,863 (2,950,950) 2,481 Authorized shares 500,000,000 Issued shares CY 248,094,614 Paid-in capital 1,779,381 5,457,993 511,690 (3,088,580) 4,660,483 Retained earnings 1,430,175 2,861,546 (63,111) (1,037,972) 3,190,639 Accumulated other comprehensive income (loss) - (75,742) (73,289) 73,998 (75,033) Less - treasury stock, at cost - 774,905 6,000 (6,000) 774,905 Shares CY 28,490,031 ----------- ---------- ---------- ----------- ----------- TOTAL 5,770,114 7,828,591 737,153 (6,997,504) 7,338,353 ----------- ---------- ---------- ----------- ----------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $20,567,433 $8,506,463 $4,716,048 $(8,338,048) $25,451,896 =========== ========== ========== =========== =========== *Totals may not foot due to rounding.
Entergy Corporation Consolidating Balance Sheet December 31, 2001 vs December 31, 2000 Increase/(Decrease) (Dollars in thousands) (Unaudited) U.S. Parent & Competitive Eliminations Consolidated Utilities Other Businesses ASSETS CURRENT ASSETS Cash and cash equivalents: Cash $ 47,829 $ 1,817 $ (77,330) $ - $ (27,684) Temporary cash investments - at cost, which approximates market 59,902 (89,718) 15,106 - (21,711) Special deposits - 267 (581,723) - (581,456) ----------- ---------- ---------- ----------- ----------- Total cash and cash equivalents 100,731 (87,634) (643,947) - (630,851) ----------- ---------- ---------- ----------- ----------- Other temporary investments 145,218 4,782 - - 150,000 Notes receivable (1,471) (487,257) 239,678 247,579 (1,471) Accounts receivable: Customer (152,345) 108 (50,786) - (203,022) Allowance for doubtful accounts (1,464) - (7,845) - (9,308) Associated companies 5,289 (29,955) (82,455) 107,122 - Other 45,531 2,332 (157,659) 950 (108,847) Accrued unbilled revenues (146,831) - 102 - (146,729) ----------- ---------- ---------- ----------- ----------- Total receivables (249,820) (27,515) (298,643) 108,072 (467,906) Deferred fuel costs (395,887) - - - (395,887) Accumulated deferred income taxes 27,098 8 - (20,618) 6,488 Fuel inventory - at average cost 4,004 - (187) - 3,818 Materials and supplies - at average cost (12,781) 43 48,024 - 35,287 Rate deferrals (16,581) - - - (16,581) Deferred nuclear refueling outage costs (19,212) - 52,424 - 33,211 Prepayments and other 46,100 606 (40,143) - 6,561 ----------- ---------- ---------- ----------- ----------- TOTAL (372,601) (596,967) (642,794) 335,033 (1,277,331) ----------- ---------- ---------- ----------- ----------- OTHER PROPERTY AND INVESTMENTS Investment in affiliates - at equity 2 1,775,610 629,615 (1,775,610) 629,616 Decommissioning trust funds (12,537) - 472,630 - 460,093 Non-utility property - at cost (less accumulated depreciation) 245 7,566 24,853 - 32,664 Other 1,087 53,754 383,941 (23,158) 415,625 ----------- ---------- ---------- ----------- ----------- TOTAL (11,204) 1,836,930 1,511,039 (1,798,768) 1,537,998 ----------- ---------- ---------- ----------- ----------- PROPERTY, PLANT, AND EQUIPMENT Electric 470,286 1,343 750,186 - 1,221,815 Plant acquisition adjustment (16,265) - - - (16,265) Property under capital lease (16,060) - (62,452) - (78,512) Natural gas 10,852 - - - 10,852 Steam products - - - - - Construction work in progress 264,108 6,989 (318,774) (6,278) (53,956) Nuclear fuel under capital lease (12,209) - - - (12,209) Nuclear fuel (2,237) - 77,020 - 74,784 ----------- ---------- ---------- ----------- ----------- TOTAL PROPERTY, PLANT AND EQUIPMENT 698,473 8,332 445,980 (6,278) 1,146,509 Less - accumulated depreciation and amortization 288,450 980 38,796 - 328,226 ----------- ---------- ---------- ----------- ----------- PROPERTY, PLANT AND EQUIPMENT - NET 410,023 7,352 407,184 (6,278) 818,283 ----------- ---------- ---------- ----------- ----------- DEFERRED DEBITS AND OTHER ASSETS Regulatory assets: SFAS 109 regulatory asset - net (34,140) - - - (34,140) Unamortized loss on reacquired debt (17,081) - - - (17,081) Deferred fuel costs (95,661) - - - (95,661) Other regulatory assets (85,076) - - - (85,076) Long-term receivables (1,495) (6,008) 6,011 - (1,492) Other (50,503) 43,192 (316,308) (63,465) (387,084) ----------- ---------- ---------- ----------- ----------- TOTAL (283,957) 37,184 (310,297) (63,465) (620,534) ----------- ---------- ---------- ----------- ----------- TOTAL ASSETS $ (257,738)$1,284,498 $ 965,133 $(1,533,478) $ 458,415 =========== ========== ========== =========== =========== *Totals may not foot due to rounding.
Entergy Corporation Consolidating Balance Sheet December 31, 2001 vs December 31, 2000 Increase/(Decrease) (Dollars in thousands) (Unaudited) U.S. Parent & Competitive Eliminations Consolidated Utilities Other Businesses LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES Currently maturing long-term debt $ 274,700 $ - $(56,144) $ - $ 218,556 Notes payable: Associated companies - 159,254 (405,850) 246,596 - Other (2) (36,999) (4) - (37,005) Account payable: Associated companies (11,855) 79,394 84,920 17,381 - Other (368,719) (768) (242,211) - (611,698) Customer deposits 16,007 53 - - 16,061 Taxes accrued 39,783 448,946 9,593 - 498,322 Accumulated deferred income taxes (225,629) (20) 20,618 (20,618) (225,649) Nuclear refueling outage costs (8,129) - - - (8,129) Interest accrued 10,352 1,458 8,577 - 20,387 Obligations under capital leases (7,555) - - - (7,555) Other 402 (1,507) 148,565 5,019 152,479 ----------- ---------- ---------- ----------- ----------- TOTAL (280,643) 649,811 (601,776) 248,378 15,769 ----------- ---------- ---------- ----------- ----------- DEFERRED CREDITS AND OTHER LIABILITIES Accumulated deferred income taxes 222,584 44,593 58,404 - 325,581 Accumulated deferred investment tax credits (23,225) - - - (23,225) Obligations under capital leases (20,788) - - - (20,788) Other regulatory liabilities 292 - - - 292 Decommisioning (10,772) - 455,397 - 444,625 Transition to competition 39,578 - - - 39,578 Regulatory reserves (359,198) - - - (359,198) Accumulated provisions 3,395 6 31,881 - 35,283 Other 133,318 (59,912) (42,710) (31,564) (868) ----------- ---------- ---------- ----------- ----------- TOTAL (14,816) (15,313) 502,972 (31,564) 441,280 ----------- ---------- ---------- ----------- ----------- Long-term debt (32,439) (10,692) (391,661) 23,727 (411,065) Preferred stock with sinking fund (39,573) - - - (39,573) Company-obligated mandatorily redeemable preferred securities of subsidiary trust holding solely junior subordinated deferrable debentures - - - - - SHAREHOLDERS' EQUITY Preferred stock without sinking fund (351) - - - (351) Common stock - 42,966 1,198,826 (1,241,790) 1 Authorized shares Issued shares CY Paid-in capital 4,716 70,335 66,393 (139,225) 2,221 Retained earnings 105,582 526,011 227,221 (411,006) 447,809 Accumulated other comprehensive income (loss) (214) 5,295 (14,227) (4,615) (13,761) Less - treasury stock, at cost - (16,085) 22,616 (22,616) (16,085) ----------- ---------- ---------- ----------- ----------- TOTAL 109,733 660,692 1,455,597 (1,774,020) 452,004 ----------- ---------- ---------- ----------- ----------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ (257,738)$1,284,498 $ 965,133 $(1,533,478) $ 458,415 =========== ========== ========== =========== =========== *Totals may not foot due to rounding.
Entergy Corporation Consolidating Income Statement Three Months Ended December 31, 2001 (Dollars in thousands) (Unaudited) U.S. Parent & Competitive Eliminations Consolidated Utilities Other Businesses OPERATING REVENUES: Domestic electric $ 1,395,057 $ - $ - $ 49 $1,395,107 Natural gas 26,758 - - - 26,758 Competitive businesses - 8,152 458,638 (3,348) 463,442 ----------- ---------- -------- ----------- ---------- Total 1,421,815 8,152 458,638 (3,299) 1,885,307 OPERATING EXPENSES: Operating and Maintenance: Fuel, fuel related expenses, and gas purchased for resale 488,741 - 116,004 - 604,745 Purchased power 98,965 44 36,613 (3,024) 132,597 ----------- ---------- -------- ----------- ---------- Gross Margin 834,110 8,109 306,021 (275) 1,147,965 Margin % 58.7% 99.5% 66.7% 8.3% 60.9% Nuclear refueling outage expenses 15,123 - 9,454 - 24,578 Other operation and maintenance 397,962 34,907 262,770 (805) 694,835 Decommissioning 7,938 - - - 7,938 Taxes other than income taxes 86,105 634 17,393 - 104,132 ----------- ---------- -------- ----------- ---------- Total 1,094,834 35,584 442,235 (3,830) 1,568,825 ----------- ---------- -------- ----------- ---------- EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION, AND AMORTIZATION 326,981 (27,432) 16,403 531 316,482 ----------- ---------- -------- ----------- ---------- Margin % 23.0% (336.5%) 3.6% (16.1%) 16.8% DEPRECIATION AND AMORTIZATION: Depreciation and amortization 191,665 1,254 14,015 - 206,933 Other regulatory charges (credits) (16,018) - - - (16,018) Amortization of rate deferrals 1,402 - - - 1,402 ----------- ---------- -------- ----------- ---------- Total 177,048 1,254 14,015 - 192,317 ----------- ---------- -------- ----------- ---------- OPERATING INCOME (LOSS) 149,933 (28,686) 2,388 531 124,165 ----------- ---------- -------- ----------- ---------- Margin % 10.5% (351.9%) 0.5% (16.1%) 6.6% OTHER INCOME (DEDUCTIONS): Allowance for equity funds used during construction 6,950 - - - 6,950 Gain/(loss) on sale of assets - net 642 (32) 2,355 - 2,966 Interest and dividend income 11,703 7,471 20,020 (3,683) 35,511 Equity in earnings of unconsolidated equity affiliates - - 18,237 - 18,238 Miscellaneous - net (15,744) (529) (348) (531) (17,151) ----------- ---------- -------- ----------- ---------- Total 3,552 6,911 40,265 (4,214) 46,514 ----------- ---------- -------- ----------- ---------- INTEREST AND OTHER CHARGES: Interest on long-term debt 116,594 - 41,954 - 158,547 Other interest - net 13,113 9,567 (5,109) (3,683) 13,887 Distributions on preferred securities of subsidiaries 4,709 - - - 4,709 Allowance for borrowed funds used during construction (5,701) - - - (5,701) ----------- ---------- -------- ----------- ---------- Total 128,714 9,567 36,844 (3,683) 171,442 ----------- ---------- -------- ----------- ---------- INCOME (LOSS) BEFORE INCOME TAXES 24,771 (31,342) 5,809 - (763) INCOME TAXES (25,667) 11,586 10,200 - (3,880) ----------- ---------- -------- ----------- ---------- INCOME (LOSS) BEFORE CUMULATIVE EFFECT OF ACCOUNTING CHANGE 50,437 (42,928) (4,392) - 3,117 CUMULATIVE EFFECT OF ACCOUNTING (net of taxes) - - 23,482 - 23,482 ----------- ---------- -------- ----------- ---------- CONSOLIDATED NET INCOME (LOSS) 50,437 (42,928) 19,090 - 26,599 PREFERRED DIVIDEND REQUIREMENTS OF SUBSIDIARIES AND OTHER 5,948 - - - 5,948 ----------- ---------- -------- ----------- ---------- EARNINGS (LOSS) APPLICABLE TO COMMON STOCK $ 44,489 $ (42,928) $ 19,090 $ - $ 20,651 =========== ========== ======== =========== ========== Margin % 3.1% (526.6%) 4.2% - 1.1% EARNINGS PER AVERAGE COMMON SHARE: BASIC $0.20 ($0.20) $0.09 $0.09 DILUTED $0.20 ($0.20) $0.09 $0.09 AVERAGE NUMBER OF COMMON SHARES OUTSTANDING: BASIC 221,050,278 DILUTED 224,583,984 *Totals may not foot due to rounding.
Entergy Corporation Consolidating Income Statement Three Months Ended December 31, 2000 (Dollars in thousands) (Unaudited) U.S. Parent & Competitive Eliminations Consolidated Utilities Other Businesses OPERATING REVENUES: Domestic electric $ 1,820,429 $ - $ - $ (3,400) $1,817,029 Natural gas 69,765 - - - 69,765 Competitive businesses - 9,934 756,064 (18,461) 747,538 ----------- ---------- -------- ----------- ---------- Total 1,890,194 9,934 756,064 (21,861) 2,634,332 OPERATING EXPENSES: Operating and Maintenance: Fuel, fuel related expenses, and gas purchased for resale 684,496 - 204,669 (302) 888,864 Purchased power 261,282 - 391,828 (20,438) 632,672 ----------- ---------- -------- ----------- ---------- Gross Margin 944,416 9,934 159,567 (1,121) 1,112,796 Margin % 50.0% 100.0% 21.1% 5.1% 42.2% Nuclear refueling outage expenses 16,887 - - - 16,887 Other operation and maintenance 430,930 68,250 114,336 (1,715) 611,801 Decommissioning 10,873 - - - 10,873 Taxes other than income taxes 97,799 532 5,667 - 103,997 ----------- ---------- -------- ----------- ---------- Total 1,502,267 68,782 716,500 (22,455) 2,265,094 ----------- ---------- -------- ----------- ---------- EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION, AND AMORTIZATION 387,927 (58,848) 39,564 594 369,238 ----------- ---------- -------- ----------- ---------- Margin % 20.5% (592.4%) 5.2% (2.7%) 14.0% DEPRECIATION AND AMORTIZATION: Depreciation and amortization 192,773 934 6,428 - 200,136 Other regulatory charges (credits) (23,630) - - - (23,630) Amortization of rate deferrals 4,616 - - - 4,616 ----------- ---------- -------- ----------- ---------- Total 173,759 934 6,428 - 181,122 ----------- ---------- -------- ----------- ---------- OPERATING INCOME (LOSS) 214,168 (59,782) 33,136 594 188,116 ----------- ---------- -------- ----------- ---------- Margin % 11.3% (601.8%) 4.4% (2.7%) 7.1% OTHER INCOME (DEDUCTIONS): Allowance for equity funds used during construction 7,124 - - - 7,124 Gain/(loss) on sale of assets - net 744 - - - 744 Interest and dividend income 18,193 19,765 8,341 (1,875) 44,424 Equity in earnings of unconsolidated equity affiliates - - 983 - 983 Miscellaneous - net (8,677) (2,404) 874 (594) (10,801) ----------- ---------- -------- ----------- ---------- Total 17,384 17,361 10,198 (2,469) 42,474 ----------- ---------- -------- ----------- ---------- INTEREST AND OTHER CHARGES: Interest on long-term debt 119,534 - 3,953 - 123,487 Other interest - net 14,360 4,618 2,304 (1,875) 19,408 Distributions on preferred securities of subsidiaries 4,709 - - - 4,709 Allowance for borrowed funds used during construction (5,361) - - - (5,361) ----------- ---------- -------- ----------- ---------- Total 133,242 4,618 6,257 (1,875) 142,243 ----------- ---------- -------- ----------- ---------- INCOME (LOSS) BEFORE INCOME TAXES 98,310 (47,039) 37,077 - 88,347 INCOME TAXES 45,027 (18,511) 11,788 - 38,304 ----------- ---------- -------- ----------- ---------- INCOME (LOSS) BEFORE CUMULATIVE EFFECT OF ACCOUNTING CHANGE 53,283 (28,528) 25,289 - 50,043 CUMULATIVE EFFECT OF ACCOUNTING (net of taxes) - - - - - ----------- ---------- -------- ----------- ---------- CONSOLIDATED NET INCOME (LOSS) 53,283 (28,528) 25,289 - 50,043 PREFERRED DIVIDEND REQUIREMENTS OF SUBSIDIARIES AND OTHER 6,735 - - - 6,735 ----------- ---------- -------- ----------- ---------- EARNINGS (LOSS) APPLICABLE TO COMMON STOCK $ 46,548 $ (28,528) $ 25,289 $ - $ 43,308 =========== ========== ======== =========== ========== Margin % 2.5% (287.2%) 3.3% - 1.6% EARNINGS PER AVERAGE COMMON SHARE: BASIC $0.21 ($0.13) $0.12 $0.20 DILUTED $0.20 ($0.13) $0.12 $0.19 AVERAGE NUMBER OF COMMON SHARES OUTSTANDING: BASIC 219,582,366 DILUTED 223,919,460 *Totals may not foot due to rounding.
Entergy Corporation Consolidating Income Statement Three Months Ended December 31, 2001 vs. 2000 Increase/(Decrease) (Dollars in thousands) (Unaudited) U.S. Parent & Competitive Eliminations Consolidated Utilities Other Businesses OPERATING REVENUES: Domestic electric $(425,372) $ - $ - $ 3,449 $ (421,923) Natural gas (43,007) - - - (43,007) Competitive businesses - (1,782) (297,426) 15,113 (284,096) --------- -------- -------- --------- ---------- Total (468,379) (1,782) (297,426) 18,562 (749,026) OPERATING EXPENSES: Operating and Maintenance: Fuel, fuel related expenses, and gas purchased for resale (195,756) - (88,665) 302 (284,120) Purchased power (162,317) 44 (355,215) 17,414 (500,075) --------- -------- -------- --------- ---------- Gross Margin (110,307) (1,826) 146,454 846 35,169 Margin % 8.7% (0.5%) 45.6% 3.2% 18.6% Nuclear refueling outage expenses (1,764) - 9,454 - 7,691 Other operation and maintenance (32,968) (33,344) 148,434 910 83,034 Decommissioning (2,935) - - - (2,935) Taxes other than income taxes (11,694) 102 11,726 - 135 --------- -------- -------- --------- ---------- Total (407,433) (33,199) (274,265) 18,625 (696,270) --------- -------- -------- --------- ---------- EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION, AND AMORTIZATION (60,946) 31,417 (23,161) (63) (52,756) --------- -------- -------- --------- ---------- Margin % 2.5% 255.9% (1.7%) (13.4%) 2.8% DEPRECIATION AND AMORTIZATION: Depreciation and amortization (1,109) 320 7,587 - 6,798 Other regulatory charges (credits) 7,612 - - - 7,612 Amortization of rate deferrals (3,215) - - - (3,215) --------- -------- -------- --------- ---------- Total 3,289 320 7,587 - 11,195 --------- -------- -------- --------- ---------- OPERATING INCOME (LOSS) (64,235) 31,097 (30,748) (63) (63,951) --------- -------- -------- --------- ---------- Margin % (0.8%) 249.9% (3.9%) (13.4%) (0.6%) OTHER INCOME (DEDUCTIONS): Allowance for equity funds used during construction (174) - - - (174) Gain/(loss) on sale of assets - net (102) (32) 2,355 - 2,222 Interest and dividend income (6,490) (12,294) 11,679 (1,808) (8,913) Equity in earnings of unconsolidated equity affiliates - - 17,254 - 17,254 Miscellaneous - net (7,067) 1,875 (1,222) 63 (6,350) --------- -------- -------- --------- ---------- Total (13,833) (10,451) 30,067 (1,745) 4,039 --------- -------- -------- --------- ---------- INTEREST AND OTHER CHARGES: Interest on long-term debt (2,941) - 38,001 - 35,060 Other interest - net (1,248) 4,949 (7,413) (1,808) (5,521) Distributions on preferred securities of subsidiaries - - - - - Allowance for borrowed funds used during construction (340) - - - (340) --------- -------- -------- --------- ---------- Total (4,528) 4,949 30,587 (1,808) 29,199 --------- -------- -------- --------- ---------- INCOME (LOSS) BEFORE INCOME TAXES (73,539) 15,697 (31,268) - (89,111) INCOME TAXES (70,694) 30,097 (1,588) - (42,184) --------- -------- -------- --------- ---------- INCOME (LOSS) BEFORE CUMULATIVE EFFECT OF ACCOUNTING CHANGE (2,846) (14,400) (29,681) - (46,927) CUMULATIVE EFFECT OF ACCOUNTING (net of taxes) - - 23,482 - 23,482 --------- -------- -------- --------- ---------- CONSOLIDATED NET INCOME (LOSS) (2,846) (14,400) (6,199) - (23,445) PREFERRED DIVIDEND REQUIREMENTS OF SUBSIDIARIES AND OTHER (787) - - - (787) --------- -------- -------- --------- ---------- EARNINGS (LOSS) APPLICABLE TO COMMON STOCK $ (2,059) $(14,400) $ (6,199) $ - $(22,658) ========= ======== ======== ========= ========== Margin % 0.7% (239.4%) 0.8% - (0.5%) EARNINGS PER AVERAGE COMMON SHARE: BASIC ($0.01) ($0.07) ($0.03) - ($0.11) DILUTED $0.00 ($0.07) ($0.03) - ($0.10) *Totals may not foot due to rounding.
Entergy Corporation Consolidating Income Statement Year to Date December 31, 2001 (Dollars in thousands) (Unaudited) U.S. Parent & Competitive Eliminations Consolidated Utilities Other Businesses OPERATING REVENUES: Domestic electric $7,247,018 $ - $ - $ (2,191) $7,244,827 Natural gas 185,902 - - - 185,902 Competitive businesses - 34,603 2,159,729 (4,162) 2,190,170 ---------- --------- ---------- ---------- ----------- Total 7,432,920 34,603 2,159,729 (6,353) 9,620,899 OPERATING EXPENSES: Operating and Maintenance: Fuel, fuel related expenses, and gas purchased for resale 2,769,917 - 911,760 - 3,681,677 Purchased power 810,448 44 214,877 (3,937) 1,021,432 ---------- --------- ---------- ---------- ----------- Gross Margin 3,852,555 34,559 1,033,092 (2,417) 4,917,790 Margin % 51.8% 99.9% 47.8% 38.0% 51.1% Nuclear refueling outage expenses 65,752 - 23,392 - 89,145 Other operation and maintenance 1,405,393 85,508 664,802 (3,960) 2,151,742 Decommissioning 3,189 - - - 3,189 Taxes other than income taxes 352,200 2,587 45,062 - 399,849 ---------- --------- ---------- ---------- ----------- Total 5,406,899 88,139 1,859,893 (7,896) 7,347,034 ---------- --------- ---------- ---------- ----------- EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION, AND AMORTIZATION 2,026,021 (53,536) 299,836 1,543 2,273,865 ---------- --------- ---------- ---------- ----------- Margin % 27.3% (154.7%) 13.9% (24.3%) 23.6% DEPRECIATION AND AMORTIZATION: Depreciation and amortization 664,144 4,515 52,373 - 721,033 Other regulatory charges (credits) (37,093) - - - (37,093) Amortization of rate deferrals 16,583 - - - 16,583 ---------- --------- ---------- ---------- ----------- Total 643,634 4,515 52,373 - 700,523 ---------- --------- ---------- ---------- ----------- OPERATING INCOME (LOSS) 1,382,387 (58,051) 247,463 1,543 1,573,342 ---------- --------- ---------- ---------- ----------- Margin % 18.6% (167.8%) 11.5% (24.3%) 16.4% OTHER INCOME (DEDUCTIONS): Allowance for equity funds used during construction 26,209 - - - 26,209 Gain/(loss) on sale of assets - net 2,609 46 2,571 - 5,226 Interest and dividend income 79,702 37,234 77,222 (34,354) 159,805 Equity in earnings of unconsolidated equity affiliates - - 180,956 - 180,956 Miscellaneous - net (39,364) 5,326 12,738 (1,544) (22,843) ---------- --------- ---------- ---------- ----------- Total 69,157 42,606 273,487 (35,897) 349,353 ---------- --------- ---------- ---------- ----------- INTEREST AND OTHER CHARGES: Interest on long-term debt 475,022 - 69,898 - 544,920 Other interest - net 104,265 41,559 86,168 (34,353) 197,638 Distributions on preferred securities of subsidiaries 18,838 - - - 18,838 Allowance for borrowed funds used during construction (21,419) - - - (21,419) ---------- --------- ---------- ---------- ----------- Total 576,706 41,559 156,066 (34,353) 739,977 ---------- --------- ---------- ---------- ----------- INCOME (LOSS) BEFORE INCOME TAXES 874,838 (57,004) 364,884 - 1,182,718 INCOME TAXES 300,284 862 154,546 - 455,693 ---------- --------- ---------- ---------- ----------- INCOME (LOSS) BEFORE CUMULATIVE EFFECT OF ACCOUNTING CHANGE 574,554 (57,866) 210,337 - 727,025 CUMULATIVE EFFECT OF ACCOUNTING (net of taxes) - - 23,482 - 23,482 ---------- --------- ---------- ---------- ----------- CONSOLIDATED NET INCOME (LOSS) 574,554 (57,866) 233,819 - 750,507 PREFERRED DIVIDEND REQUIREMENTS OF SUBSIDIARIES AND OTHER 24,311 - - - 24,311 ---------- --------- ---------- ---------- ----------- EARNINGS (LOSS) APPLICABLE TO COMMON STOCK $ 550,243 $(57,866) $233,819 $ - $726,196 ========== ========= ========== ========== =========== Margin % 7.4% (167.2%) 10.8% - 7.5% EARNINGS PER AVERAGE COMMON SHARE: BASIC $2.49 ($0.26) $1.06 $3.29 DILUTED $2.45 ($0.26) $1.04 $3.23 AVERAGE NUMBER OF COMMON SHARES OUTSTANDING: BASIC 220,944,270 DILUTED 224,733,662 *Totals may not foot due to rounding.
Entergy Corporation Consolidating Income Statement Year to Date December 31, 2000 (Dollars in thousands) (Unaudited) U.S. Parent & Competitive Eliminations Consolidated Utilities Other Businesses OPERATING REVENUES: Domestic electric $7,235,726 $ - $ - $ (16,039) $7,219,686 Natural gas 165,872 - - - 165,872 Competitive businesses - 32,449 2,651,941 (47,819) 2,636,571 ---------- --------- ---------- ---------- ----------- Total 7,401,598 32,449 2,651,941 (63,858) 10,022,129 OPERATING EXPENSES: Operating and Maintenance: Fuel, fuel related expenses, and gas purchased for resale 2,231,297 - 415,277 (739) 2,645,835 Purchased power 928,220 - 1,787,756 (53,095) 2,662,881 ---------- --------- ---------- ---------- ----------- Gross Margin 4,242,081 32,449 448,908 (10,024) 4,713,413 Margin % 57.3% 100.0% 16.9% 15.7% 47.0% Nuclear refueling outage expenses 70,511 - - - 70,511 Other operation and maintenance 1,501,022 114,246 340,496 (11,951) 1,943,814 Decommissioning 39,484 - - - 39,484 Taxes other than income taxes 358,364 1,586 10,394 - 370,344 ---------- --------- ---------- ---------- ----------- Total 5,128,898 115,832 2,553,923 (65,785) 7,732,869 ---------- --------- ---------- ---------- ----------- EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION, AND AMORTIZATION 2,272,700 (83,383) 98,018 1,927 2,289,260 ---------- --------- ---------- ---------- ----------- Margin % 30.7% (257.0%) 3.7% (3.0%) 22.8% DEPRECIATION AND AMORTIZATION: Depreciation and amortization 730,660 3,278 12,187 - 746,125 Other regulatory charges (credits) 3,681 - - - 3,681 Amortization of rate deferrals 30,392 - - - 30,392 ---------- --------- ---------- ---------- ----------- Total 764,733 3,278 12,187 - 780,198 ---------- --------- ---------- ---------- ----------- OPERATING INCOME (LOSS) 1,507,967 (86,661) 85,831 1,927 1,509,062 ---------- --------- ---------- ---------- ----------- Margin % 20.4% (267.1%) 3.2% (3.0%) 15.1% OTHER INCOME (DEDUCTIONS): Allowance for equity funds used during construction 32,022 - - - 32,022 Gain/(loss) on sale of assets - net 2,337 3 - - 2,340 Interest and dividend income 57,795 78,390 35,372 (8,507) 163,050 Equity in earnings of unconsolidated equity affiliates 2 - 13,713 - 13,715 Miscellaneous - net (31,037) 6,033 54,818 (2,737) 27,077 ---------- --------- ---------- ---------- ----------- Total 61,119 84,426 103,903 (11,244) 238,204 ---------- --------- ---------- ---------- ----------- INTEREST AND OTHER CHARGES: Interest on long-term debt 473,550 - 4,332 (810) 477,071 Other interest - net 46,882 22,103 25,156 (8,507) 85,635 Distributions on preferred securities of subsidiaries 18,838 - - - 18,838 Allowance for borrowed funds used during construction (24,114) - - - (24,114) ---------- --------- ---------- ---------- ----------- Total 515,156 22,103 29,488 (9,317) 557,430 ---------- --------- ---------- ---------- ----------- INCOME (LOSS) BEFORE INCOME TAXES 1,053,930 (24,338) 160,246 - 1,189,836 INCOME TAXES 435,667 (12,927) 56,181 - 478,921 ---------- --------- ---------- ---------- ----------- INCOME (LOSS) BEFORE CUMULATIVE EFFECT OF ACCOUNTING CHANGE 618,263 (11,411) 104,065 - 710,915 CUMULATIVE EFFECT OF ACCOUNTING (net of taxes) - - - - - ---------- --------- ---------- ---------- ----------- CONSOLIDATED NET INCOME (LOSS) 618,263 (11,411) 104,065 - 710,915 PREFERRED DIVIDEND REQUIREMENTS OF SUBSIDIARIES AND OTHER 31,621 - - - 31,621 ---------- --------- ---------- ---------- ----------- EARNINGS (LOSS) APPLICABLE TO COMMON STOCK $ 586,642 $(11,411) $104,065 $ - $679,294 ========== ========= ========== ========== =========== Margin % 7.9% (35.2%) 3.9% - 6.8% EARNINGS PER AVERAGE COMMON SHARE: BASIC $2.59 ($0.05) $0.46 $3.00 DILUTED $2.56 ($0.05) $0.46 $2.97 AVERAGE NUMBER OF COMMON SHARES OUTSTANDING: BASIC 226,580,449 DILUTED 228,541,307 *Totals may not foot due to rounding.
Entergy Corporation Consolidating Income Statement Year to Date December 31, 2001 vs. 2000 Increase/(Decrease) (Dollars in thousands) (Unaudited) U.S. Parent & Competitive Eliminations Consolidated Utilities Other Businesses OPERATING REVENUES: Domestic electric $ 11,292 $ - $ - $ 13,848 $ 25,141 Natural gas 20,030 - - - 20,030 Competitive businesses - 2,154 (492,212) 43,657 (446,401) ---------- --------- ---------- ---------- ----------- Total 31,322 2,154 (492,212) 57,505 (401,230) OPERATING EXPENSES: Operating and Maintenance: Fuel, fuel related expenses, and gas purchased for resale 538,620 - 496,483 739 1,035,842 Purchased power (117,772) 44 (1,572,879) 49,159 (1,641,449) ---------- --------- ---------- ---------- ----------- Gross Margin (389,526) 2,110 584,184 7,608 204,377 Margin % (5.5%) (0.1%) 30.9% 22.3% 4.1% Nuclear refueling outage expenses (4,759) - 23,392 - 18,634 Other operation and maintenance (95,629) (28,739) 324,306 7,992 207,928 Decommissioning (36,295) - - - (36,295) Taxes other than income taxes (6,164) 1,001 34,668 - 29,505 ---------- --------- ---------- ---------- ----------- Total 278,001 (27,694) (694,030) 57,889 (385,835) ---------- --------- ---------- ---------- ----------- EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION, AND AMORTIZATION (246,679) 29,848 201,818 (384) (15,395) ---------- --------- ---------- ---------- ----------- Margin % (3.4%) 102.3% 10.2% (21.3%) 0.8% DEPRECIATION AND AMORTIZATION: Depreciation and amortization (66,516) 1,237 40,186 - (25,093) Other regulatory charges (credits) (40,774) - - - (40,774) Amortization of rate deferrals (13,809) - - - (13,809) ---------- --------- ---------- ---------- ----------- Total (121,099) 1,237 40,186 - (79,676) ---------- --------- ---------- ---------- ----------- OPERATING INCOME (LOSS) (125,580) 28,611 161,632 (384) 64,281 ---------- --------- ---------- ---------- ----------- Margin % (1.8%) 99.3% 8.2% (21.3%) 1.3% OTHER INCOME (DEDUCTIONS): Allowance for equity funds used during construction (5,813) - - - (5,813) Gain/(loss) on sale of assets - net 272 43 2,571 - 2,886 Interest and dividend income 21,907 (41,156) 41,850 (25,847) (3,246) Equity in earnings of unconsolidated equity affiliates (2) - 167,243 - 167,241 Miscellaneous - net (8,327) (707) (42,080) 1,194 (49,920) ---------- --------- ---------- ---------- ----------- Total 8,038 (41,821) 169,584 (24,653) 111,148 ---------- --------- ---------- ---------- ----------- INTEREST AND OTHER CHARGES: Interest on long-term debt 1,472 - 65,566 810 67,849 Other interest - net 57,383 19,456 61,012 (25,846) 112,003 Distributions on preferred securities of subsidiaries - - - - - Allowance for borrowed funds used during construction 2,695 - - - 2,695 ---------- --------- ---------- ---------- ----------- Total 61,550 19,456 126,578 (25,036) 182,547 ---------- --------- ---------- ---------- ----------- INCOME (LOSS) BEFORE INCOME TAXES (179,093) (32,666) 204,638 - (7,119) INCOME TAXES (135,383) 13,789 98,365 - (23,228) ---------- --------- ---------- ---------- ----------- INCOME (LOSS) BEFORE CUMULATIVE EFFECT OF ACCOUNTING CHANGE (43,710) (46,455) 106,272 - 16,110 CUMULATIVE EFFECT OF ACCOUNTING (net of taxes) - - 23,482 - 23,482 ---------- --------- ---------- ---------- ----------- CONSOLIDATED NET INCOME (LOSS) (43,710) (46,455) 129,754 - 39,592 PREFERRED DIVIDEND REQUIREMENTS OF SUBSIDIARIES AND OTHER (7,310) - - - (7,310) ---------- --------- ---------- ---------- ----------- EARNINGS (LOSS) APPLICABLE TO COMMON STOCK $ (36,400) $ (46,455) $ 129,754 $ - $ 46,902 ========== ========= ========== ========== =========== Margin % (0.5%) (132.1%) 6.9% - 0.8% EARNINGS PER AVERAGE COMMON SHARE: BASIC ($0.10) ($0.21) $0.60 - $0.29 DILUTED ($0.11) ($0.21) $0.58 - $0.26 *Totals may not foot due to rounding.
Entergy Corporation Consolidated Cash Flow Statement Year to Date December 31, 2001 vs. 2000 (Dollars in thousands) (Unaudited) 2001 2000 Variance OPERATING ACTIVITIES Consolidated net income $750,507 $710,915 $39,592 Noncash items included in net income: Amortization of rate deferrals 16,583 30,392 (13,809) Reserve for regulatory adjustments (359,199) 18,482 (377,681) Other regulatory charges (credits) - net (37,093) 3,681 (40,774) Depreciation, amortization, and decommissioning 724,222 785,609 (61,387) Deferred income taxes and investment tax credits 87,752 124,457 (36,705) Allowance for equity funds used during construction (26,209) (32,022) 5,813 Cumulative effect of accounting change (23,482) - (23,482) (Gain) loss on sale of assets - net (5,226) (2,340) (2,886) Equity in undistributed earnings of subsidiaries and unconsolidated affiliates (168,873) (13,715) (155,158) Changes in working capital (net of effects from acquisitions and dispositions): Receivables 302,230 (437,146) 739,376 Fuel inventory (3,419) (20,447) 17,028 Accounts payable (415,160) 543,606 (958,766) Taxes accrued 486,676 20,871 465,805 Interest accrued 17,287 45,789 (28,502) Deferred fuel 495,007 (38,001) 533,008 Other working capital accounts (39,978) 102,336 (142,314) Provision for estimated losses and reserves 19,093 6,019 13,074 Changes in other regulatory assets 119,215 (66,903) 186,118 Other 275,615 186,264 89,351 --------- ---------- --------- Net cash flow provided by operating activities 2,215,548 1,967,847 247,701 --------- ---------- --------- INVESTING ACTIVITIES Construction/capital expenditures (1,380,417) (1,493,717) 113,300 Allowance for equity funds used during construction 26,209 32,022 (5,813) Nuclear fuel purchases (130,670) (121,127) (9,543) Proceeds from sale/leaseback of nuclear fuel 71,964 117,154 (45,190) Proceeds from sale of businesses 784,282 61,519 722,763 Investment in other nonregulated/nonutility properties (1,278,990) (238,062) (1,040,928) Changes in other temporary investments - net (150,000) 321,351 (471,351) Decommissioning trust contributions and realized change in trust assets (95,571) (63,805) (31,766) Other regulatory investments (3,460) (385,331) 381,871 Other (68,067) (44,016) (24,051) --------- ---------- --------- Net cash flow used in investing activities (2,224,720) (1,814,012) (410,708) --------- ---------- --------- FINANCING ACTIVITIES Proceeds from the issuance of: Long-term debt 682,402 904,522 (222,120) Common stock 64,345 41,908 22,437 Retirement of: Long-term debt (962,112) (181,329) (780,783) Repurchase of common stock (36,895) (550,206) 513,311 Redemption of preferred stock (39,574) (157,658) 118,084 Changes in short-term borrowings - net (37,004) 267,000 (304,004) Dividends paid: Common stock (269,122) (271,019) 1,897 Preferred stock (24,044) (32,400) 8,356 --------- ---------- --------- Net cash flow provided by (used in) financing activities (622,004) 20,818 (642,822) --------- ---------- --------- Effect of exchange rates on cash and cash equivalents 325 (5,948) 6,273 --------- ---------- --------- Net increase (decrease) in cash and cash equivalents (630,851) 168,705 (799,556) Cash and cash equivalents at beginning of period 1,382,424 1,213,719 168,705 --------- ---------- --------- Cash and cash equivalents at end of period $751,573 $1,382,424 ($630,851) ========= ========== =========
Entergy Corporation U.S. Utility Electric Energy Sales & Customers Three Months Ended December % Weather 2001 2000 % Adjusted (Millions of kwh) Electric Energy Sales: Residential 6,309 7,055 (10.6) (1.8) Commercial 5,873 5,920 (0.8) 3.2 Governmental 626 639 (2.0) (0.3) Industrial 10,098 11,070 (8.8) (8.8) ------- ------- Total to Ultimate Customers 22,906 24,684 (7.2) (3.8) Wholesale 1,892 2,913 (35.0) ------- ------- Total Sales 24,798 27,597 (10.1) ======= ======= Year to Date December % Weather 2001 2000 % Adjusted (Millions of kwh) Electric Energy Sales: Residential 31,080 31,998 (2.9) (0.6) Commercial 24,706 24,657 0.2 2.0 Governmental 2,593 2,605 (0.4) 0.6 Industrial 41,577 43,956 (5.4) (5.4) -------- -------- Total to Ultimate Customers 99,956 103,216 (3.2) (2.0) Wholesale 8,896 9,794 (9.2) -------- -------- Total Sales 108,852 113,010 (3.7) ======== ======== December 2001 2000 % Electric Customers (Year to date average): Residential 2,218,410 2,205,539 0.6 Commercial 296,534 289,427 2.5 Governmental 14,681 14,350 2.3 Industrial 41,125 42,016 (2.1) ---------- ---------- Total to Ultimate Customers 2,570,750 2,551,332 0.8 Wholesale 39 37 5.4 ---------- ---------- Total Customers 2,570,789 2,551,369 0.8 ========== ========== EX-99 4 a04302992.txt Entergy 639 Loyola Avenue New Orleans, LA 70113 Exhibit 99.2 Date: January 31, 2002 For Release: Immediately Contact: Morgan Stewart (News Media) (504) 576-4238 mstewa3@entergy.com Nancy Morovich (Investor Relations) (504) 576-5506 (888) 925-8406 (pager) nmorovi@entergy.com Entergy Reports Record Earnings for the Year 2001 New Orleans, La. - Entergy Corporation (NYSE:ETR) today announced that earnings for the year 2001 were $3.23 per share, or $726.2 million, compared with $2.97, or $679.3 million, in 2000. On an operational basis, 2001 earnings were $3.23 compared to $3.12 for the year 2000. Earnings for the year 2001 broke the record for annual earnings set by the company just one year ago. While fourth quarter 2001 earnings were down from the same period of 2000, primarily as a result of mild weather, Entergy's earnings marked the 15th consecutive quarter in which the company exceeded the consensus estimate of financial analysts. Entergy's fourth quarter 2001 consolidated earnings were 9 cents per share, compared with 19 cents per share in fourth quarter 2000. On an operational basis, Entergy's fourth quarter 2001 earnings were $39.8 million, or 18 cents per share, compared with $70.9 million, or 31 cents per share, in the year-earlier period. Extremely cold weather in fourth quarter 2000 accounted for 14 cents of the earnings per share for that period. When results for both periods are adjusted for changes in weather, fourth quarter 2001 results were 18 percent higher than one year ago. The 18 percent increase in weather-adjusted operational earnings was driven by solid results at the utility, as well as the non-utility nuclear business, Entergy Nuclear, which is not subject to state and local regulation. "Difficult economic conditions, weak commodity prices and some of the mildest weather in over 100 years did not deter us from achieving outstanding results in 2001," said J. Wayne Leonard, Entergy's chief executive officer. "We continue to create value for all of our stakeholders through our conservative integrated strategy combined with operational excellence and financial strength." Leonard highlighted achievements in each of the company's three businesses: - "The utility delivered solid earnings without help from the weather by achieving operating efficiencies, while continuing to improve on measures of safety, reliability and customer service. - The nuclear business continued to grow, with the acquisition of Indian Point 2 and an agreement to acquire Vermont Yankee. We completed scheduled refueling outages at several units in record time. - The Energy Commodity Services business, which includes Entergy-Koch and Entergy Wholesale Operations, delivered good results in both the trading and pipeline operations even though forces in the market pressured prices and margins." Utility Operations In fourth quarter 2001, utility earnings on an operational basis were $44.5 million, or 20 cents per share, equal to the 20 cents per share earned in the same period of 2000. Mild weather in the fourth quarter of 2001 had a minimal impact on earnings, compared with much colder-than-normal weather for the same period of 2000, which accounted for 14 cents of that quarter's 20 cents in earnings. Mild weather in the fourth quarter 2001, combined with the continued slowdown in the economy, reduced usage across most retail customer segments from year-earlier levels. Residential sales declined by 11 percent, commercial sales by 1 percent, and industrial sales by 4 percent (after adjusting for the effect of reclassifying certain industrial customers from retail to wholesale). The impact of reduced sales and net revenues was partially offset by lower expenses in 2001. Operation and maintenance expenses per megawatt-hour generated were down 5 percent for the quarter. For the year 2001, the utility earned $2.46 per share on an operational basis, compared with $2.65 in 2000. The higher earnings in 2000 were due to extreme weather. On a weather-adjusted basis, 2001 earnings improved by 6 percent over 2000 results. The utility continued to improve reliability and customer service, as evidenced by a reduction of 53 percent in the number of reliability complaints to regulators in fourth quarter 2001 compared with the year-earlier period. Twelve-month-ended measures of average outage frequency and average outage duration decreased by 5 percent and 6 percent, respectively. These improvements were achieved with continued increases in safety, as indicated by a continued reduction in lost-time accidents for the year. Competitive Non-Regulated Businesses Entergy's competitive businesses contributed operational earnings of $31.5 million, or 15 cents per share, an increase of 25 percent from 12 cents per share in fourth quarter 2000. On an as-reported basis, the competitive businesses earned 9 cents per share in fourth quarter 2001, compared to 12 cents a year earlier. Fourth quarter 2001 results include several special items which reduced income by 6 cents. These special items reflect charges taken for the anticipated loss in connection with the planned sale of Latin American assets and severance and restructuring costs incurred at Entergy Wholesale Operations. Partially offsetting these charges was a gain associated with recording the cumulative effect of applying mark to marketing accounting to the Damhead Creek gas contract and a true-up to the gain previously recognized on the sale of the Saltend project. For the year 2001, the competitive businesses had operational income of $212.4 million, or 95 cents per share, compared to $90.8 million, or 40 cents per share in 2000. The increase in earnings is due primarily to the growth in the non-utility nuclear business combined with very solid performance from Entergy-Koch L.P. Entergy Nuclear earned $28.9 million, or 13 cents per share, compared to $19.1 million, or 9 cents per share, in fourth quarter 2000. The increase was due primarily to increased revenue resulting from the contribution for the full quarter in 2001 of the Indian Point 2 and Indian Point 3 nuclear units in Buchanan, N.Y., and FitzPatrick nuclear unit in Lycoming, N.Y. Entergy Nuclear's average capacity factor was 95.4 percent for fourth quarter 2001, a slight improvement over the already excellent performance achieved in fourth quarter 2000. Its net capacity in operation increased by 39 percent over one year ago, and it generated 139 percent more power during fourth quarter 2001 than in the comparable period of 2000. For the full year, Entergy Nuclear had operational earnings of $127.9 million, or 57 cents, compared to $49.2 million, or 22 cents for the year 2000. The 159 percent increase in earnings is due to a full year of operations at Indian Point 3 and FitzPatrick and the contribution of Indian Point 2 since its acquisition in September 2001. Energy Commodity Services, the combined reporting of Entergy-Koch L.P. and Entergy Wholesale Operations, contributed operational earnings of $2.5 million, or 2 cents per share, compared with $6.2 million, or 3 cents per share, in fourth quarter 2000. On an as-reported basis, Energy Commodity Services recorded a loss of $9.8 million, or 4 cents per share, in fourth quarter 2001, compared to income of $6.2 million, or 3 cents per share, in the same period last year. Entergy Wholesale Operations recorded the special item of 6 cents per share, as explained above. Entergy-Koch Trading contributed operational earnings through both its power and gas trading during fourth quarter in spite of the negative effects of reduced market volatility and very mild weather. The Gulf South pipeline realized lower earnings in fourth quarter 2001 due primarily to a 3 percent decrease in pipeline throughput and lower levels of gas storage activity associated with milder-than-normal temperatures. As of the end of fourth quarter 2001, Entergy Wholesale Operations had 2,410 net megawatts of generating capacity in operation, an increase of 99 percent for the year. For the full year, Energy Commodity Services earned $84.5 million, or 38 cents per share, in operational earnings, compared to $41.6 million, or 18 cents per share, in 2000. The growth in earnings year over year primarily resulted from the strong performance of the trading and gas pipeline businesses of Entergy-Koch L.P., which began operations in February 2001. Parent & Other Parent & Other had a loss of 20 cents in fourth quarter 2001, compared with a loss of 13 cents in fourth quarter 2000. The increased loss in fourth quarter 2001 was due primarily to higher income tax benefits being allocated from Parent to Entergy subsidiaries for the 2001 period. These tax benefits are allocated in accordance with Entergy's consolidated tax allocation agreement, which is required of all public utility holding companies pursuant to Securities and Exchange Commission regulation. Also, higher levels of interest expense negatively impacted Parent & Other results in 2001 compared to 2000. Fourth quarter 2001 results included an adjustment that increased the Parent's loss by 3 cents per share, treated as a special item, for the write-off of costs associated with the e-commerce investment MyHomeKey. For the full year, Parent & Other had an operational loss of $39.3 million, or 18 cents per share, in 2001, compared with income of $16.2 million, or 7 cents per share, in 2000. Results in 2001 reflect the impact of significantly higher tax benefits allocated from the Parent to other Entergy subsidiaries. This combined with lower cash balances and the resulting decrease in interest income, as well as higher interest expense, unfavorably impacted the Parent's results in 2001. Outlook "The year 2001 reflected a steady growth in the financial results across our businesses," said C. John Wilder, Entergy's chief financial officer. "Excellent results were achieved during a difficult year for the energy markets and the overall economy. Based on the fundamental strength of our company we are raising our 2002 guidance to $3.40 to $3.60, exclusive of the impact of weather." Entergy Corporation, with annual revenues of nearly $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 Fourth Quarter 2001 2000 % Operating Revenues $1,885.31 $2,634.33 (28.4) As Reported Earnings $ 20.65 $ 43.31 (52.3) As Reported Earnings per diluted share* $ 0.09 $ 0.19 (52.6) Operational Earnings per diluted share $ 0.18 $ 0.31 (41.9) *Includes Special Items (EPS): EWO severance costs $ (0.02) $ - Damhead Creek gas contract 0.10 - Gain (loss) on disposition of assets - net (0.17) (0.12) ------- ------ Total ($ 0.09) $(0.12) ======= ====== Year to Date 2001 2000 % Operating Revenues $9,620.90 $10,022.13 (4.0) As Reported Earnings $ 726.20 $ 679.29 6.9 As Reported Earnings per diluted share* $ 3.23 $ 2.97 8.8 Operational Earnings per diluted share $ 3.23 $ 3.12 3.5 *Includes Special Items (EPS): Merger expenses $(0.06) $ - EWO severance costs (0.02) - Damhead Creek gas contract 0.10 - Gain (loss) on disposition of assets - net (0.02) (0.06) Regulatory & reserve adjustments - (0.09) ------ ------ Total $ - $(0.15) ====== ====== Note - dollars in millions except per share amounts, which are actual.
Entergy Corporation Consolidated Income Statement Three Months Ended December 31 (in thousands) 2001 2000 % Inc/(Dec) (unaudited) Operating Revenues: Domestic electric $1,395,107 $1,817,029 (23.2) Natural gas 26,758 69,765 (61.6) Competitive businesses 463,442 747,538 (38.0) ---------- ---------- Total 1,885,307 2,634,332 (28.4) ---------- ---------- Operating Expenses: Operation and maintenance: Fuel, fuel-related expenses, and gas purchased for resale 604,745 888,864 (32.0) Purchased power 132,597 632,672 (79.0) Nuclear refueling outage expenses 24,578 16,887 45.5 Other operation and maintenance 694,835 611,801 13.6 Decommissioning 7,938 10,873 (27.0) Taxes other than income taxes 104,132 103,997 0.1 Depreciation and amortization 206,933 200,136 3.4 Other regulatory charges (credits) - net (16,018) (23,630) (32.2) Amortization of rate deferrals 1,402 4,616 (69.6) ---------- ---------- Total 1,761,142 2,446,216 (28.0) ---------- ---------- Operating Income 124,165 188,116 (34.0) ---------- ---------- Other Income (Deductions): Allowance for equity funds used during construction 6,950 7,124 (2.4) Gain (loss) on sales of assets - net 2,966 744 298.7 Interest and dividend income 35,511 44,424 (20.1) Equity in earnings of unconsolidated equity affiliates 18,238 983 1,755.3 Miscellaneous - net (17,151) (10,801) 58.8 ---------- ---------- Total 46,514 42,474 9.5 ---------- ---------- Interest and Other Charges: Interest on long-term debt 158,547 123,487 28.4 Other interest - net 13,887 19,408 (28.4) Dividends on preferred securities of subsidiaries 4,709 4,709 - Allowance for borrowed funds used during construction (5,701) (5,361) 6.3 ---------- ---------- Total 171,442 142,243 20.5 ---------- ---------- Income Before Income Taxes (763) 88,347 (100.9) Income Taxes (3,880) 38,304 (110.1) ---------- ---------- Income Before Cumulative Effect of an Accounting Change 3,117 50,043 (93.8) Cumulative Effect of an Accounting Change (net of income taxes) 23,482 - - ---------- ---------- Consolidated Net Income 26,599 50,043 (46.8) Preferred dividend requirements of subsidiaries and other 5,948 6,735 (11.7) ---------- ---------- Earnings Applicable to Common Stock $20,651 $43,308 (52.3) ========== ========== Earnings Per Average Common Share: Basic $0.09 $0.20 (55.0) Diluted $0.09 $0.19 (52.6) Average Number of Common Shares Outstanding: Basic 221,050,278 219,582,366 Diluted 224,583,984 223,919,460
Entergy Corporation Consolidated Income Statement Twelve Months Ended December 31 (in thousands) 2001 2000 % Inc/(Dec) (unaudited) Operating Revenues: Domestic electric $7,244,827 $7,219,686 0.3 Natural gas 185,902 165,872 12.1 Competitive businesses 2,190,170 2,636,571 (16.8) ---------- ---------- Total 9,620,899 10,022,129 (4.0) ---------- ---------- Operating Expenses: Operation and maintenance: Fuel, fuel-related expenses, and gas purchased for resale 3,681,677 2,645,835 39.1 Purchased power 1,021,432 2,662,881 (61.6) Nuclear refueling outage expenses 89,145 70,511 26.4 Other operation and maintenance 2,151,742 1,943,814 10.7 Decommissioning 3,189 39,484 (91.9) Taxes other than income taxes 399,849 370,344 8.0 Depreciation and amortization 721,033 746,125 (3.4) Other regulatory charges (credits) - net (37,093) 3,681 (1,107.7) Amortization of rate deferrals 16,583 30,392 (45.4) ---------- ---------- Total 8,047,557 8,513,067 (5.5) ---------- ---------- Operating Income 1,573,342 1,509,062 4.3 ---------- ---------- Other Income (Deductions): Allowance for equity funds used during construction 26,209 32,022 (18.2) Gain (loss) on sales of assets - net 5,226 2,340 123.3 Interest and dividend income 159,805 163,050 (2.0) Equity in earnings of unconsolidated equity affiliates 180,956 13,715 1,219.4 Miscellaneous - net (10,343) 27,077 (138.2) ---------- ---------- Total 349,353 238,204 46.7 ---------- ---------- Interest and Other Charges: Interest on long-term debt 544,920 477,071 14.2 Other interest - net 197,638 85,635 130.8 Dividends on preferred securities of subsidiaries 18,838 18,838 - Allowance for borrowed funds used during construction (21,419) (24,114) (11.2) ---------- ---------- Total 739,977 557,430 32.7 ---------- ---------- Income Before Income Taxes 1,182,718 1,189,836 (0.6) Income Taxes 455,693 478,921 (4.9) ---------- ---------- Income Before Cumulative Effect of an Accounting Change 727,025 710,915 2.3 Cumulative Effect of an Accounting Change (net of income taxes) 23,482 - - ---------- ---------- Consolidated Net Income 750,507 710,915 5.6 Preferred dividend requirements of subsidiaries and other 24,311 31,621 (23.1) ---------- ---------- Earnings Applicable to Common Stock $726,196 $679,294 6.9 ========== ========== Earnings Per Average Common Share: Basic $3.29 $3.00 9.7 Diluted $3.23 $2.97 8.8 Average Number of Common Shares Outstanding: Basic 220,944,270 226,580,449 Diluted 224,733,662 228,541,307
Entergy Corporation U.S. Utility Electric Energy Sales & Customers Three Months Ended December 2001 2000 % (Millions of kwh) Electric Energy Sales: Residential 6,309 7,055 (10.6) Commercial 5,873 5,920 (0.8) Governmental 626 639 (2.0) Industrial 10,098 11,070 (8.8) ------- ------- Total to Ultimate Customers 22,906 24,684 (7.2) Wholesale 1,892 2,913 (35.0) ------- ------- Total Sales 24,798 27,597 (10.1) ======= ======= Twelve Months Ended December 2001 2000 % (Millions of kwh) Electric Energy Sales: Residential 31,080 31,998 (2.9) Commercial 24,706 24,657 0.2 Governmental 2,593 2,605 (0.4) Industrial 41,577 43,956 (5.4) -------- -------- Total to Ultimate Customers 99,956 103,216 (3.2) Wholesale 8,896 9,794 (9.2) -------- -------- Total Sales 108,852 113,010 (3.7) ======== ======== December 2001 2000 % Electric Customers (Year to date average): Residential 2,218,410 2,205,539 0.6 Commercial 296,534 289,427 2.5 Governmental 14,681 14,350 2.3 Industrial 41,125 42,016 (2.1) ---------- ---------- Total to Ultimate Customers 2,570,750 2,551,332 0.8 Wholesale 39 37 5.4 ---------- ---------- Total Customers 2,570,789 2,551,369 0.8 ========== ========== -----END PRIVACY-ENHANCED MESSAGE-----