EX-99 3 a16202991.txt Exhibit 99.1 [Logo of Entergy] For further information: Nancy Morovich, VP, Investor Relations Phone 504/576-5506, Fax 504/576-2897 INVESTOR NEWS nmorovi@entergy.com July 30, 2002 ENTERGY REPORTS RECORD SECOND QUARTER OPERATIONAL EARNINGS NEW ORLEANS - Entergy Corporation reported solid second quarter 2002 operational earnings of $1.17 per share compared with $1.06 in the same period of 2001, reflecting increased earnings from both utility operations and Entergy's non-utility nuclear business. Second quarter 2002 results set a new record for the company and were 10 percent higher than the same period one year ago. On an as reported basis, Entergy reported income of $1.06 per share, an amount equal to earnings for the same period in 2001. Second quarter 2002 reported results reflected a special charge in connection with costs associated with the restructuring of Entergy's wholesale power development business. "Operating results reflect the positive impact of some strengthening of the economy in the utility's service territory and continued strong performance in Entergy Nuclear" said J. Wayne Leonard, Entergy's chief executive officer. "We're delivering on the commitments we have made to our stakeholders, and we have not allowed the disruptive activities in the sector to distract us. Four years ago we said we were going to deliver superior financial results by focusing on our core competencies, providing outstanding customer service, and maintaining sound financial integrity. We've met, and in most instances exceeded, these goals and we're committed to pursuing excellence with the highest level of ethics and integrity in our business practices and safety in our operations." Table 1 provides a comparative summary of earnings per share for second quarter and year-to-date 2002. ---------------------------------------------------------------------- Table 1: Entergy Corporation Consolidated Results Second Quarter and Year-to-Date 2002 vs. 2001 (Per share in U.S. $) ---------------------------------------------------------------------- Second Quarter Year-to-Date 2002 2001 $ Change 2002 2001 $ Change As Reported U.S. Utility 0.85 0.74 0.11 1.31 1.25 0.06 Parent & Other (0.02) 0.03 (0.05) (0.05) (0.01) (0.04) Competitive Businesses 0.23 0.29 (0.06) (0.54) 0.51 (1.05) ---------------------------------------- Consolidated Earnings 1.06 1.06 - 0.72 1.75 (1.03) Less Special Items U.S. Utility - - - - (0.01) 0.01 Parent & Other - - - - (0.05) 0.05 Competitive Businesses (0.11) - (0.11) (1.26) - (1.26) ---------------------------------------- Total (0.11) - (0.11) (1.26) (0.06) (1.20) Operational U.S. Utility 0.85 0.74 0.11 1.31 1.26 0.05 Parent & Other (0.02) 0.03 (0.05) (0.05) 0.04 (0.09) Competitive Businesses 0.34 0.29 0.05 0.72 0.51 0.21 ---------------------------------------- Consolidated Earnings 1.17 1.06 0.11 1.98 1.81 0.17 Weather Impact - - - 0.03 0.05 (0.02) U.S. Utility In second quarter 2002, as reported and operational utility earnings were $0.85 per share, compared to $0.74 in second quarter 2001. The increase in earnings quarter to quarter resulted primarily from higher revenues due to increased sales volume reflecting both modest customer growth and higher usage levels. Operation and maintenance expenses were significantly higher during second quarter 2002 due primarily to previously deferred ice storm costs being expensed as a result of the settlement reached with the Arkansas Public Service Commission. As noted in footnote (a) to Table 8, the net income impact of these expenses was essentially offset by revenues recorded in accordance with the regulatory settlement. After excluding the ice storm settlement costs, operation and maintenance expenses were modestly higher in 2002 compared to 2001 due primarily to spending in fossil and nuclear generation. For the year 2002, operation and maintenance expenses are projected to be slightly higher compared to 2001 levels. However, improved sales and revenues driven primarily by a more positive economic environment is expected to more than overcome this increase. Higher usage in second quarter 2002 increased residential sales by 7 percent, compared to second quarter 2001. Commercial and governmental sales were up 3 percent, reflecting increased usage across all commercial customer classes, while industrial sales experienced a 4 percent reduction quarter over quarter. The reduction in industrial sales was due exclusively to the impact of contractual modifications which reclassified certain industrial customers from retail to wholesale. After removing the impact of the reclassification, industrial sales reflected an increase of 1.5 percent resulting primarily from increased usage in the petroleum refining sector. The increase in usage across retail customer classes, which totaled 3.6 percent after the above reclassification, as well as the growth in the number of customers during the quarter, demonstrate some economic recovery beginning to take hold in the Entergy service territory. A summary of sales volumes by customer class is included in Appendix A to this release. 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 Second Quarter and Year-to-Date 2002 vs. 2001 (see appendix C for definitions of measures) ----------------------------------------------------------------------- Second Quarter Year-to-Date 2002 2001 % Change 2002 2001 % Change Utility Generation in GWh 22,698 23,814 -5% 43,729 45,284 -3% GWh billed Residential 7,202 6,733 7% 14,476 14,269 1% Commercial and Gov't 6,766 6,538 3% 12,981 12,727 2% Industrial 10,294 10,710 -4% 19,884 21,022 -5% Weather degree day deviation 44 94 -53% 72 3,426 -98% from normal Operation & maintenance $23.87 $14.33 67% $20.46 $14.58 40% expense Reliability SAIFI 2.00 2.21 -10% SAIDI 150.7 169.5 -11% Reliability complaints 24 28 -14% 38 59 -36% Safety 3 9 -67% 11 13 -15% Number of customers Residential 2,233,198 2,215,321 0.8% Commercial & Gov't 315,675 309,289 2% Industrial 39,455 39,538 -0.2% ---------------------------------------------------------------------------------
The utility continues to pursue the approval of rate plans and mechanisms that provide increased certainty as to the allowable earnings levels and provide incentives to reward operating excellence. Appendix B provides a summary of the utility's pending regulatory events and regulatory recovery mechanisms by operating subsidiary. Parent & Other Parent & Other recorded an as reported loss per share of $(0.02) in second quarter 2002, compared with earnings of $0.03 in second quarter 2001. The loss in second quarter 2002 was due primarily to lower interest income earned in 2002 resulting from lower yields on invested cash and higher corporate expenses in the current quarter. Competitive Businesses As reported earnings were $0.23 per share for the competitive businesses in second quarter 2002 compared to $0.29 in the same period of 2001. Second quarter 2002 results include a special charge totaling $(0.11) which reflects asset impairments and restructuring costs in connection with the wholesale power development business. The $(0.11) net charge also includes an offsetting gain of $0.10 primarily associated with the sale of certain assets in connection with the restructuring process. Excluding this special charge, operational earnings increased 17 percent, from $0.29 per share in second quarter 2001 to $0.34 in second quarter 2002. This increase in operational earnings reflects continued strong performance in non- utility nuclear operations which served to more than offset lower results from Energy Commodity Services. Table 3 provides a 2002 vs. 2001 comparison of contributions by business for the second quarter and year-to-date, on both an as reported and operational bases. ----------------------------------------------------------------------- Table 3: Competitive Businesses Contributions to Earnings Per Share Second Quarter and Year-to-Date 2002 vs. 2001 ----------------------------------------------------------------------- (Per share in U.S. $) Second Quarter Year-to-Date 2002 2001 $ 2002 2001 $ Change Change As Reported Entergy Nuclear 0.24 0.15 0.09 0.42 0.29 0.13 Energy Commodity Services (0.01) 0.14 (0.15) (0.96) 0.22 (1.18) ------------------------------------------ Total 0.23 0.29 (0.06) (0.54) 0.51 (1.05) Less Special Items Entergy Nuclear - - - - - - Energy Commodity Services (0.11) - (0.11) (1.26) - (1.26) ------------------------------------------ Total (0.11) - (0.11) (1.26) - (1.26) Operational Entergy Nuclear 0.24 0.15 0.09 0.42 0.29 0.13 Energy Commodity Services 0.10 0.14 (0.04) 0.30 0.22 0.08 ------------------------------------------ Total 0.34 0.29 0.05 0.72 0.51 0.21 ----------------------------------------------------------------------- Table 4 provides a summary of Entergy's non-utility generation in MWh sold forward for the years 2002 and 2003. Table 4: Competitive Businesses Percent of Generation Sold Forward Years 2002 and 2003 (see appendix C for definitions of measures) ----------------------------------------------------------------------- 2002 2003 Entergy Nuclear Percent of EN's total planned MWh of generation sold forward 100% 99% Energy Commodity Services Percent of ECS' total planned MWh of generation sold forward* 46% 20% Percent of Competitive Businesses' planned MWh of 96% 93% generation sold forward ------------------------------------------------------------------------ - Effective this quarter, Damhead Creek, an 800 MW gas-fired unit in the U.K., is not included in sold forward metrics consistent with Entergy's first quarter 2002 restructuring announcement. Entergy Nuclear Entergy Nuclear (EN) earned $0.24 per share compared to $0.15 in second quarter 2001. The increase was due primarily to the contribution in 2002 of Indian Point 2, which was acquired in September 2001, as well as higher overall output levels due to the absence of refueling outages in 2002. Two refueling outages were conducted during second quarter 2001; none were conducted in second quarter 2002. EN's average capacity factor was 98.5 percent for second quarter 2002 as compared to 77.8 percent for the same period in 2001 reflecting the timing of plant refuelings. EN continues to achieve excellent operational performance. EN expanded its production capacity by 39 percent and its output by 77 percent quarter over quarter. Average production costs increased quarter to quarter due primarily to the inclusion of amortized refueling outage costs in 2002 for the Pilgrim and Indian Point 3 units. Currently, EN has sold 100 percent of the output of its generating assets through the end of 2002 at prices that range from $29 to $51 per megawatt hour. Table 5 provides a summary of Entergy Nuclear's key operational measures with quarter-to-quarter and year-to-date comparisons.
----------------------------------------------------------------------- Table 5: Entergy Nuclear Operational Performance Measures Second Quarter and Year-to-Date 2002 vs. 2001 (see appendix C for definitions of measures) ------------------------------------------------------------------------------- Second Quarter Year-to-Date 2002 2001 % Change 2002 2001 % Change Entergy Nuclear Net MW in operation 3,445 2,475 39% Average realized price 39.88 35.66 12% Production cost/MWh 19.40 18.41 5% 19.51 17.89 9% Generation in GWh 7,449 4,208 77% 14,958 9,467 58% Capacity factor 98.5% 77.8% 27% 99.4% 88.0% 13% Refueling outage duration Current Period Last % Change Outage Pilgrim - 28 - Indian Point 3 - 26 - --------------------------------------------------------------------------------
Energy Commodity Services Energy Commodity Services (ECS) includes the combined reporting of Entergy-Koch L.P. and Entergy's wholesale power development business, Entergy Wholesale Operations (EWO). ECS recorded a loss of $(0.01) per share in second quarter 2002 compared to earnings of $0.14 in the same period last year. This loss reflects the impact of restructuring costs in the power development business recorded during the quarter. Operational earnings were also lower in second quarter 2002 compared to the same period in 2001, $0.10 per share compared to $0.14, due primarily to lower income from the trading business. As was the case in first quarter 2002, the income sharing mechanisms that are part of the Entergy-Koch partnership agreement allocated substantially all of the partnership's income to Entergy in the second quarter of this year. Entergy-Koch Trading, a subsidiary of Entergy-Koch L.P., contributed lower operational earnings primarily due to low market volatility, particularly in the power market, and lower profitability on gas trading, compared to second quarter 2001. As of the end of second quarter 2002, Entergy-Koch expected 31 percent of its trading book to be converted to cash by year end 2002 and 73 percent by the end of 2003. Eighty-four percent of the fair market value of Entergy-Koch's mark-to-market portfolio is based on actively-quoted prices. In addition, Entergy-Koch diligently manages counterparty risks with more than 90 percent of its trading book tied to counterparties with investment grade credit ratings and no more than 5 percent of Entergy- Koch's trading book is represented by a single counterparty. The Gulf South pipeline realized higher earnings in second quarter 2002 through slightly higher volumes of gas transported and higher gas storage revenues as movements in gas prices increased storage activities. Volumes for second quarter 2002 were up 2 percent compared to second quarter 2001. EWO recorded an $(0.11) per share special item in second quarter 2002 reflecting asset impairments and restructuring costs at that business unit. The net charge of $(0.11), detailed in Tables 8 and 9, includes an offsetting gain of $0.10 recorded on the sale of certain assets in connection with the restructuring process. Table 6 provides a summary of Energy Commodity Services' key operational measures with quarter-to-quarter and year-to-date comparisons. ----------------------------------------------------------------------------- Table 6: Energy Commodity Services Operational Performance Measures Second Quarter and Year-to-Date 2002 vs. 2001 (see appendix C for definitions of measures) ----------------------------------------------------------------------------- Second Quarter Year-to-Date 2002 2001 % 2002 2001 % Change Change Entergy-Koch Trading Electricity volatility 44% 78% -44% 45% 76% -41% Gas volatility 53% 52% 2% 67% 71% -6% Electricity marketed (GWh) 26,877 26,386 2% 66,705 57,395 16% Gas marketed (Bcf/d) 4.8 6.8 -29% 5.1 7.0 -27% Gain/loss days 1.7 4.3 -60% 1.9 2.9 -34% Gulf South Pipeline Throughput 2.31 2.26 2% 2.50 2.36 6% Miles of pipeline 8,800 8,800 - Storage capacity (Bcf) 68 68 - Production cost $0.096 $0.095 1% $0.084 $0.093 -10% Entergy Wholesale Operations Net MW in operation* 1,209 3,368 -64% Net MW under construction 597 523 14% * Effective this quarter, Damhead Creek, an 800 MW gas-fired unit in the U.K., is not included in sold forward metrics consistent with Entergy's first quarter 2002 restructuring announcement. Table 7 provides a summary of Energy Commodity Services' mark-to- market impact with quarter-to-quarter comparisons.
----------------------------------------------------------------------------------- Table 7: Mark-to-Market Disclosures Second Quarter 2002 vs. 2001 (see appendix C for definitions of measures) ----------------------------------------------------------------------------------- Second Quarter 2002 2001 % Change Earnings Mark-to-market earnings as percent of consolidated earnings 3% 15% -80% Net Assets ($ in millions) Mark-to-market accounting detail* Open equity at beginning of period Consolidated subsidiaries $35 $(25) 240% Entergy-Koch $164 $41 300% Open equity at end of period Consolidated subsidiaries $(8) $(18) 56% Entergy-Koch $132 $141 -6% 2002 2003 2004- 2005 Cash Realization ------------------ Cumulative percentage of mark-to-market realization Consolidated subsidiaries 84% 35% 100% Entergy-Koch 31% 73% 100% -----------------------------------------------------------------------------------
* Effective this quarter, Damhead Creek, an 800 MW gas-fired unit in the U.K., is not included in Mark-to-market detail consistent with Entergy's first quarter 2002 restructuring announcement. Variance Analysis Tables 8 and 9, on the following page, provide second quarter and year- to-date 2002 vs. 2001 reported earnings variance analyses for "U.S. Utility, Parent & Other," "Competitive Businesses," and "Consolidated."
-------------------------------------------------------------------------- Table 8: Entergy Corporation Reported Earnings Per Share Variance Analysis Second Quarter 2002 vs. 2001 -------------------------------------------------------------------------- (Per share in U.S. $, sorted in consolidated column, most to least favorable) U.S. Utility, Competitive Parent & Other Businesses Consolidated 2001 earnings 0.77 0.29 1.06 Net revenue 0.64 (a) 0.29 (b) 0.93 Interest expense and other charges 0.06 (c) 0.01 0.07 Income taxes - other (0.02) (d) 0.06 (d) 0.04 Taxes other than income taxes 0.03 (e) (0.01) 0.02 Nuclear refueling outage expense 0.01 (0.01) - Interest and dividend income (0.02) - (0.02) Depreciation/amortization expense (0.05) (f) (0.01) (0.06) Asset impairments and - (0.11) (g) (0.11) restructuring charges Other income (deductions) 0.02 (0.16) (h) (0.14) Other operation & maintenance (0.61) (i) (0.12) (j) (0.73) expense ----- ----- ----- 2002 earnings 0.83 0.23 1.06 ----- ----- ----- --------------------------------------------------------------------------------
------------------------------------------------------------------------------ Table 9: Entergy Corporation Reported Earnings Per Share Variance Analysis Year-to-Date 2002 vs. 2001 ------------------------------------------------------------------------------ (Per share in U.S. $, sorted in consolidated column, most to least favorable) U.S. Utility, Competitive Parent & Other Businesses Consolidated 2001 earnings 1.24 0.51 1.75 Net revenue 0.60 (a) 0.49 (b) 1.09 Interest expense and other charges 0.14 (c) 0.02 0.16 Income taxes - other 0.01 (d) 0.07 (d) 0.08 Taxes other than income taxes 0.03 (e) (0.01) 0.02 Preferred dividend requirements 0.01 - 0.01 Nuclear refueling outage expense 0.01 (0.04) (k) (0.03) Other income (deductions) 0.03 (l) (0.08) (m) (0.05) Depreciation/amortization expense (0.05) (f) (0.02) (0.07) Interest and dividend income (0.09) (n) 0.01 (0.08) Other operation & maintenance expense (0.67) (i) (0.23) (j) (0.90) Asset impairments and restructuring charges - (1.26) (g) (1.26) ----- ----- ----- 2002 earnings 1.26 (0.54) 0.72 ----- ----- ----- -------------------------------------------------------------------------------------------
(a) Net revenue increased in second quarter and year-to-date 2002 due primarily to the impact of recording in current revenue the previously deferred revenues at Entergy Arkansas per the Transition Cost Account mechanism. The ice storm settlement agreed to with the Arkansas Public Service Commission authorized that the previously deferred amounts be recorded as revenue. In addition, net revenue increased due to the impact of higher sales volumes across retail customer segments resulting from some strengthening in the economy. Also, fluctuations in fuel prices positively impacted unbilled revenue which is included in Other for the second quarter and year-to-date periods. Utility Net Revenue Variance Analysis, 2002 vs. 2001 ($ EPS) Second Quarter Year-to-Date Weather - Weather (0.02) Regulatory settlements 0.49 Regulatory settlements 0.49 Sales growth/pricing 0.07 Sales growth/pricing 0.05 Other 0.08 Other 0.08 Total 0.64 Total 0.60 (b) Net revenue increased primarily as a result of the inclusion of operations of Indian Point 2 which was acquired in September 2001. (c) Interest expense & other charges decreased due to the retirement and refinancing of long-term debt and the absence of interest expense in 2002 on System Energy Resources, Inc.'s reserve for rate refund which was finalized in late 2001. (d) 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 taxes-other" line. (e) Taxes other than income taxes decreased due primarily to the elimination of Entergy Louisiana's franchise tax reserve associated with capital leases in accordance with a recent state court finding. (f) Depreciation expense increased primarily as a result of revisions to certain asset lives and retirement patterns in second quarter 2001 which lowered depreciation expense, as well as higher depreciation expense in 2002 as a result of increasing investment in property, plant, and equipment. (g) Asset impairments and restructuring charges reflect the impact of recording the costs of restructuring the Entergy Wholesale Operations business. (h) Other income (deductions) decreased due primarily to lower Entergy- Koch earnings. (i) Other operation & maintenance expense increased due primarily to Entergy Arkansas' ice storm settlement, $(0.44), prior year's reversal of Entergy Arkansas' storm damage expenses $(0.07), and higher nuclear and fossil operation and maintenance expenses. For the year-to-date period, expenses increased due to lower nuclear insurance program distributions and overall expenses were partially offset by no merger related expenses in 2002. (j) Other operation & maintenance expense increased due primarily to the inclusion of operations of Indian Point 2. (k) Nuclear refueling outage expense increased due to initiating amortization of this cost in June 2001 for Pilgrim and Indian Point 3. (l) Other income (deductions) increased due primarily to the suspension of any goodwill amortization in accordance with new accounting rules. (m) Other income (deductions) decreased due primarily to the absence in 2002 of liquidated damages from Damhead Creek plant and lower equity in earnings from affiliates, primarily Entergy-Koch. (n) Interest and dividend income decreased due to lower interest income earned given declining deferred fuel balances at Utility as well as lower investment balances at Parent & Other. Table 10 lists special items by business with quarter-to-quarter and year-to-date comparisons. Special items are those events that are not routine, related to prior periods, or related to discontinued operations.
----------------------------------------------------------------------- Table 10: Entergy Corporation Special Items [shown as positive / (negative) impact on earnings] Second Quarter and Year-to-Date 2002 vs. 2001 ----------------------------------------------------------------------- (Per share in U.S. $) Second Quarter Year-to-Date 2002 2001 $ Change 2002 2001 $ Change U.S. Utility Special Items Merger expenses - - - - (0.01) 0.01 ------------------------------------------- Parent & Other Special Items Merger expenses - - - - (0.05) 0.05 ------------------------------------------- Competitive Businesses Special Items Energy Commodity Services - EWO - asset impairments (0.04) - (0.04) (0.48) - (0.48) EWO - turbine commitment 0.10 - 0.10 (0.52) - (0.52) EWO - development costs - - - (0.09) - (0.09) EWO - restructuring (0.17) - (0.17) (0.17) - (0.17) ------------------------------------------- Total (0.11) - (0.11) (1.26) - (1.26) ------------------------------------------- Total Special Items (0.11) - (0.11) (1.26) (0.06) (1.20) ---------------------------------------------------------------------------------------------
Other Performance Highlights Entergy generated $449 million in operating cash in second quarter 2002, an increase of 8 percent compared to second quarter 2001. At the end of second quarter 2002, Entergy had approximately $731 million of cash and cash equivalents. Operational net margin was 9.1 percent, its highest level in more than six years and return on equity remained above 10 percent for the seventh consecutive quarter. The capital structure ratio remains within Entergy's target range with a net debt ratio of 49 percent. Entergy's credit ratios remain among the strongest in the industry. The current level of cash along with significant borrowing capacity continues to provide considerable financial flexibility to Entergy. The off-balance sheet debt, exclusive of operating leases, totals less than $350 million and constitutes only 2 percent of total capitalization. As of the end of second quarter 2002, the liquidity shortfall, as defined in appendix C was $(414) million. A significant amount of currently maturing long-term debt, approximately $1.1 billion, created the current liquidity shortfall at end of second quarter. Approximately $950 million of the maturing long-term debt is associated with utility debt that matures primarily in the first half of 2003. Financings at the utility were structured over the past several years to mature in the 2003-2004 timeframe as a result of the expectation that transition to competition would be at an advanced stage and would require significant corporate restructuring. Given the extended delays in utility deregulation, Entergy will actively pursue refinancing these amounts over the next 12 to 18 months and is confident that liquidity will return to more historical levels as refinancings are completed. Table 11 provides a summary of financial measures with quarter-to- quarter and year-to-date comparisons.
------------------------------------------------------------------------ Table 11: Entergy Corporation Key Financial Performance and Flexibility Measures Second Quarter and Year-to-Date 2002 vs. 2001 (see appendix C for definitions of measures) ------------------------------------------------------------------------ Second Quarter Year-to-Date For 3 months ending June 30 2002 2001 Change 2002 2001 Change ------------------------- -------------------- Operating cash flow (millions) $449 $416 $33 $803 $601 $202 Operating cash flow per share $1.96 $1.84 $0.12 $3.53 $2.67 $0.86 For 12 months ending June 30 2002 2001 Change ------------------------- Cash return on average investment 6.20% 8.90% (2.70)% Return on average common equity 10.28% 11.03% (0.75)% Net margin - operational 9.12% 7.02% 2.10% FFO interest coverage 4.39 3.84 0.55 Book value per share $34.08 $32.87 $1.21 End of period shares outstanding (millions) 224.7 221.7 3.0 As of June 30 ($ in millions) 2002 2001 Change ------------------------- Revolver capacity $843 $896 $(53) Total gross liquidity $1,574 $1,595 $(21) Excess liquidity (Liquidity shortfall) $(414) $125 $(539) Total debt $8,192 $7,974 $218 Off-balance sheet liabilities: Project debt - $162 $(162) Debt of joint ventures - Entergy's share $346 $312 $34 ------------------------- Leases - Entergy's share $343 $398 $(55) Total off-balance sheet liabilities $689 $872 $(183) Rating or other contingent liabilities $70 $63 $7 Net debt to net capital 49.1% 51.1% (2.0)% Net debt including off-balance sheet liabilities 51.2% 53.6% (2.4)% ------------------------------------------------------------------------------------------------
Planned Capital Expenditures - 2002-2004 Entergy will continue to invest both in its core utility and wholesale energy businesses and in growth opportunities aimed at expanding and leveraging the advantages offered by its integrated business strategy. Over the next three years, Entergy's utility investments will focus on reliability improvements and customer growth. Capital investments in Entergy's non-utility nuclear business over this same period are for maintenance improvements, power uprates, nuclear fuel procurement, and the purchase of the Vermont Yankee nuclear plant which will close on July 31, 2002, in accordance with the purchase agreement. Energy Commodity Services plans to invest in power projects currently under construction, approximating 600 MW. Growth opportunities could include investments in pipeline, gas storage, nuclear, as well as additional regulated and/or unregulated generation assets. Table 12 provides a summary of projected sources and investment of cash for the years 2002 through 2004. ---------------------------------------------------------------------- Table 12: Entergy Corporation Projected Sources and Uses of Cash Years 2002-2004 ---------------------------------------------------------------------- (dollars in billions) 2002-2004 Sources of cash Beginning cash at 1/1/02 0.8 Operating cash flow Net income 2.3 Depr. & amort. 2.7 Other 0.5 Total operating cash flow 5.5 Additional debt capacity (50/50 capital structure) 1.4 ---- Total cash available 7.7 Less maintenance capital expenditures 3.4 Less dividends 0.9 Less investment commitment (o) 0.6 ---- Cash available for investment 2.8 -------------------------------------------------------------------------- (o) Includes turbine contract cancellation costs. Financial Outlook and Earnings Review "Through second quarter 2002 we continued to achieve strong results despite nearly daily negative revelations in our sector," said C. John Wilder, Entergy's chief financial officer. "Our success is based on a well-developed, integrated strategy supported by a solid, disciplined financial plan. Our return metrics, credit metrics, and cash position all continue to be very sound and our growth prospects look promising. The first half of 2002 has been very positive and we are pleased to confirm our 2002 operational earnings per share guidance at the $3.40 to $3.60 range." Earnings Guidance Entergy's 2002 earnings guidance is detailed in Table 13. Key assumptions reflected in the earnings ranges are as follows: - Approximately 70 percent of 2002 earnings are expected from the utility. Earnings guidance is based on existing rate plans and fuel recovery mechanisms. The incremental increase expected in 2002 is the result of modest operational improvements, the full impact of the cessation of goodwill amortization, and the assumption of a normal level of allocated tax benefits from Parent. - More than 20 percent of earnings are expected from Entergy Nuclear, where prices are set by power purchase agreements that cover 100 percent of the megawatt hours generated. The increase in nuclear earnings is expected to be provided by: a full-year's contribution at Indian Point 2; the addition of Vermont Yankee, a 510 MW nuclear acquisition that will close on July 31, 2002; and increased pricing of power sold under the power purchase agreement at Pilgrim. Capacity factor assumption for the overall fleet is 90 to 93 percent, and Fall 2002 refueling outages are assumed at FitzPatrick, Indian Point 2 and Vermont Yankee. - Energy Commodity Services' guidance is based on a full year's contribution from Entergy-Koch at a 50 percent sharing of income, consistent with Entergy's ownership share. In addition, guidance reflects adjustments for no operating losses at Saltend and no liquidated damages from Damhead Creek. Finally, guidance reflects the continued impact of depressed spark spreads on EWO's generation portfolio. - Parent & Other's guidance is adjusted for a normal level of allocated tax benefits, as well as reduced levels of interest income due to lower investment balances. Table 13 provides Entergy's projection of 2002 operational earnings per share with 2001 operational earnings as its data starting point. ----------------------------------------------------------------------- Table 13: 2002 Earnings Per Share Guidance ----------------------------------------------------------------------- (Per share in U.S. $)
2001 2002 Operational Changes in 2002 Guidance Range Range of Impact Utility including weather Operational improvement & other 0.05 0.10 Allocation of Parent's tax benefits (0.08) (0.08) Suspension of goodwill amortization 0.07 0.07 --------------- 2.46 Total 0.04 0.09 2.50 2.55 Entergy Nuclear Indian Point 2 (full year) / Vermont 0.13 0.16 Yankee closing Increased revenue due to Pilgrim PPA 0.05 0.06 Capacity factor normalization / outage 0.05 0.06 differences/other --------------- 0.57 Total 0.23 0.28 0.80 0.85 Energy Commodity Services 0.38 Entergy-Koch (full year based on 50% (0.12) (0.08) sharing) No Saltend operating losses or 0.05 0.05 liquidated damages income on Damhead Creek EWO (post-restructuring) & lower (0.06) (0.05) project income --------------- Total (0.13) (0.08) 0.25 0.30 Parent & Other Allocation of Parent's tax benefits 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 3.23 0.17 0.37 3.40 3.60 -----------------------------------------------------------------------------------------------------------
Entergy's 2002 operational earnings guidance with June 2002 year-to- date actual results as its starting point is detailed in Table 14 below. This table reflects the projected earnings contributions for each of Entergy's businesses for the remainder of 2002.
--------------------------------------------------------------------------- Table 14: 2002 Earnings Per Share Guidance Based on June 2002 Year-To-Date Earnings --------------------------------------------------------------------------- (Per share in US $) June 2002 2002 YTD July-December 2002 Guidance Range Range of Impact Utility including Base operations (normal weather) 1.21 1.26 weather Allocation of Parent's tax (0.06) (0.06) benefits Suspension of goodwill 0.04 0.04 amortization ------------- 1.31 Total 1.19 1.24 2.50 2.55 Entergy Nuclear Pilgrim, IP3, FitzPatrick, IP2 0.40 0.42 (93% non-outage capacity factor) Vermont Yankee closing (including 0.06 0.07 outage) IP2 and FitzPatrick refueling (0.08) (0.06) outage impact ------------- 0.42 Total 0.38 0.43 0.80 0.85 Energy Commodity Entergy-Koch (remaining months at 0.01 0.05 Services 50% sharing, less year to date disproportionate sharing) EWO (post-restructuring) & lower (0.06) (0.05) project income ------------- 0.30 Total (0.05) - 0.25 0.30 Parent & Other Net interest income/(expense) (0.11) (0.07) Allocation of Parent's tax 0.08 0.08 benefits Other corporate expenses (0.07) (0.06) ------------- (0.05) Total (0.10) (0.05) (0.15) (0.10) --------------------------------------------------------------------------------------------------- Total 1.98 1.42 1.62 3.40 3.60 ---------------------------------------------------------------------------------------------------
Entergy's 2003 earnings guidance is detailed in Table 15. Key assumptions reflected in the earnings ranges are as follows: - Approximately 70 percent of 2003 earnings are expected from the utility. Earnings guidance is based on existing rate plans and fuel recovery mechanisms. The incremental increase expected in 2003 is the result of modest rate base increases earning returns in the 11-12% range with a full-year impact of rate actions in Arkansas and Mississippi as well as some increase in overall sales growth. - More than 20 percent of earnings are expected from Entergy Nuclear, where prices set by power purchase agreements will average $38/MWh. Increases will result from the full year impact of Vermont Yankee, and reduced overall operating costs. Capacity factor assumption for the fleet ranges from 93 to 95 percent. Spring 2003 refueling outages are assumed at the Pilgrim and Indian Point 3 units. - Energy Commodity Services' guidance is based on contributions from Entergy-Koch at a 50 percent sharing of income, consistent with Entergy's ownership share. Modest growth in trading, and pipeline, along with savings from the restructured wholesale generation business, will add to earnings at ECS. - Parent & Other's guidance is based on corporate expenses estimated at approximately $30 million partially offset by interest income on invested cash. Table 15 provides Entergy's projection of 2003 operational earnings per share with 2002 operational earnings guidance mid-point as its data starting point.
----------------------------------------------------------------------------- Table 15: 2003 Earnings Per Share Guidance ----------------------------------------------------------------------------- (Per share in U.S. $) 2002 Guidence 2003 Guidance Range Changes in 2003 Range Range of Impact Utility including Rate base increase 0.05 weather Normal sales growth 0.10 ---- 2.50 2.55 Total 0.15 2.65 2.70 Entergy Nuclear Increased production 0.09 including the effect of a full year of Vermont Yankee Lower PPA price (0.04) Increased outage (0.08) amortization expense Lower production cost / 0.08 other ----- 0.80 0.85 Total 0.05 0.85 0.90 Energy Commodity Commodity trading growth 0.02 Services Pipeline growth 0.01 Reduced overhead / EWO 0.07 restructuring ----- 0.25 0.30 Total 0.10 0.35 0.40 Parent & Other Net interest income / 0.03 (expense) Reduced corporate expense / 0.02 Retail earnings / other ----- (0.15) (0.10) Total 0.05 (0.10) (0.05) ----------------------------------------------------------------------------------------- Total 3.40 3.60 0.35 3.75 3.95 -----------------------------------------------------------------------------------------
Entergy anticipates growing earnings at an average annual rate of 8 to 10 percent beyond 2003 and has acknowledged that such growth is achievable only if new investments can be made over the next several years. Entergy continues to remain confident that investment opportunities will be available and as such believes the targeted level of earnings growth is achievable beyond 2003. Appendix A provides details of kwh sales and customer statistics for the Utility. Appendix A: Utility Electric Energy Sales & Customers Three Months Ended June % Weather 2002 2001 % Adjusted (Millions of kwh) ELECTRIC ENERGY SALES: Residential 7,202 6,733 7.0 6.1 Commercial 6,112 5,908 3.5 2.8 Governmental 654 630 3.8 3.6 Industrial 10,294 10,710 (3.9) (3.9) ------------------- Total to Ultimate Customers 24,262 23,981 1.2 0.8 Wholesale 2,444 2,182 12.0 ------------------- Total Sales 26,706 26,163 2.1 =================== Year to Date June 2002 2001 % (Millions of kwh) ELECTRIC ENERGY SALES: Residential 14,476 14,269 1.5 Commercial 11,710 11,482 2.0 Governmental 1,271 1,245 2.1 Industrial 19,884 21,022 (5.4) ------------------- Total to Ultimate Customers 47,341 48,018 (1.4) Wholesale 4,658 4,631 0.6 ------------------- Total Sales 51,999 52,649 (1.2) =================== Twelve Months Ended June 2002 2001 % (Millions of kwh) ELECTRIC ENERGY SALES: Residential 31,287 32,898 (4.9) Commercial 24,926 24,980 (0.2) Governmental 2,620 2,627 (0.3) Industrial 40,439 43,339 (6.7) ------------------- Total to Ultimate Customers 99,272 103,844 (4.4) Wholesale 8,923 9,835 (9.3) ------------------- Total Sales 108,195 113,679 (4.8) =================== June 2002 2001 % ELECTRIC CUSTOMERS (YEAR TO DATE AVERAGE): Residential 2,233,198 2,215,321 0.8 Commercial 300,763 294,675 2.1 Governmental 14,912 14,614 2.0 Industrial 39,455 39,538 (0.2) --------------------- Total Ultimate Customers 2,588,328 2,564,148 0.9 Wholesale 38 39 (2.6) --------------------- Total Customers 2,588,366 2,564,187 0.9 ===================== Appendix B provides a summary of the utility's pending regulatory events and regulatory recovery mechanisms by operating subsidiary.
Appendix B: Utility Regulatory Summary Table Second Quarter 2002 Company Allowed ROE Pending Cases/Events Fuel Recovery Mechanism Entergy Arkansas 11.0%. ROE Settlement finalized with Annual reset based on cap and TCA APSC in May 2002 allowing prior year's cost mechanism for recovery of ice storm expired on costs. Also provides for 12/31/01 no general rate case filing prior to January 2003. Entergy Gulf States - TX 10.95% Settlement order issued in Semi-annual reset June 1999 froze base based on gas prices rates. Freeze extended to and surcharge. at least 9/15/02, current earliest date for retail open access. Entergy Gulf States - LA 11.1% (in Hearings for the 8th Monthly reset with 60 place until earnings review (2001) are day lag based on June 2003) expected to conclude in prior two months August 2002. Also, the actual fuel and 2002 revenue review (9th) purchased power costs and prospective revenue plus 1/12 of study are currently unrecovered fuel pending before commission. balance. Procedural schedule has not been established. In conjunction with commission staff, EGSI is pursuing a formula rate plan proposal that could be in place in 2003. Entergy Louisiana 9.7%-11.3% Settlement approved by Monthly reset with 60 plus ELI LPSC in July 2002 covering day lag based on retains 40% the fifth and sixth annual prior two months of earnings rate reviews and future actual fuel and above top of rate regulation. Included purchased power costs bandwidth small rate reduction and plus 1/12 of reaffirmed ROE midpoint of unrecovered fuel 10.5%. ELI will work with balance. the LPSC on developing a formula rate plan and neither party will initiate a base rate proceeding prior to January 2003. Entergy Mississippi 8.82%-11.32% Annual formula rate plan Quarterly reset based plus EMI in place. April 2002 MPSC on forecasted costs retains 50% order granted small rate plus fuel balance. of earnings increase effective May above top of 2002 and reaffirmed ROE bandwidth midpoint as 10.07%. Authorized ROE adjusts each year based on filing. Entergy New Orleans 11.4% Settlement agreement in Monthly reset with 60 1998 set current rates. day lag based on New rate case filed in May prior two months 2002 requesting an actual fuel and increase of $44 million. purchased power costs Resolution not expected plus 1/12 unrecovered prior to early 2003. fuel balance. System Energy Resources, 10.94% FERC order on 1995 rate Actual costs billed Inc. filing became final in as incurred. July 2001. No new filings currently scheduled.
Appendix C provides definitions of certain operational and financial performance measures referenced in this release. Appendix C: 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 degree day deviation from normal The deviation from historical normal temperatures, measured in degree days Operation & maintenance expense Operation and maintenance and nuclear 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 Competitive Businesses Percent of planned MWh generation sold forward Percent of planned generation output sold forward under capacity contract, forward physical contract or forward financial contract, consistent with assumptions used in earnings guidance Entergy Nuclear Net MW in operation Installed capacity owned or operated by Entergy Nuclear Average realized price As reported revenue per MWh generated for all non-utility nuclear operations Production cost/MWh Operation and maintenance expenses plus fuel costs/lease charges per MWh 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 Electricity volatility Average volatility of into-Entergy power prices for the period Gas volatility Average volatility of Henry Hub spot prices for the period Electricity marketed (GWh) Total physical GWh volumes marketed in the U.S. during the period Gas marketed (Bcf/d) Physical Bcf/d volumes marketed in the U.S. 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 Miles of pipeline Total miles of transmission and gathering pipeline in miles Storage capacity Working gas storage capacity 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 Mark-to-Market Disclosures Mark-to-market earnings as percent of consolidated After-tax net income of projects or earnings businesses with mark-to-market earnings divided by consolidated operational earnings Open equity Mark-to-market assets (excluding physical gas assets) minus mark-to-market liabilities Cumulative percentage of mark-to-market realization Percentage of mark-to-market assets and liabilities expected to be realized in cash assuming held to maturity and no change in market price
Appendix C: Definitions of Operational and Financial Performance Measures (continued) Cash return on average investment 12-months rolling EBITDA divided by average investment, which is net plant plus accumulated depreciation plus working capital Return on average common equity 12-months rolling operational net income divided by 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 FFO interest coverage Funds From Operations- defined as 12- months rolling operational net income plus noncash items included in net income - plus interest paid, divided by interest expense. Reflects adjustments consistent with rating agencies 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 (50% share) Debt issued for Entergy-Koch L.P. and RS Cogen joint ventures Leases Operating leases held by subsidiaries capitalized at implicit interest rate Rating or other contingent Parent guarantees for which cash liabilities collateral may be required in event of downgrade below investment grade Net debt to net capital Gross debt less cash and cash equivalents divided by total capitalization less cash and cash equivalents Net debt including off-balance sheet Sum of gross debt and off-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". Additional investor information can be accessed on-line at www.entergy.com/earnings Teleconference and Webcast Details Entergy's senior management team will host an earnings conference call at 10:00 a.m. CDST, Tuesday, July 30, 2002. The call can be accessed by dialing 719-457-2641, the confirmation code is 532311. Please call no more than 15 minutes prior to the scheduled start time. The call can also be accessed via Entergy's web site at www.entergy.com/webcasts. A replay of the teleconference will be available through Tuesday, August 6, 2002 by dialing 719-457-0820, confirmation code 532311. The replay will also be available on Entergy's web site at www.entergy.com/webcasts. ********************************************************************** 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, and the availability of capital, the onset of competition, the ability to recover net regulatory assets and other potential stranded costs, the effects of 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, including the use of financial and derivative instruments and volatility of changes in market prices, changes in the number of participants and the risk profile of such participants in the energy marketing and trading business, 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 June 30, 2002 (Dollars in thousands) (Unaudited) U.S. Parent & Competitive Eliminations Consolidated Utilities Other Businesses ASSETS CURRENT ASSETS Cash and cash equivalents: Cash $ 114,723 $ 3,697 $ 26,026 $ - $ 144,446 Temporary cash investments - at cost, which approximates market 139,072 44,275 402,529 - 585,875 Special deposits - 37 302 - 339 ----------- ---------- ---------- ----------- ----------- Total cash and cash equivalents 253,795 48,009 428,857 - 730,660 ----------- ---------- ---------- ----------- ----------- Other temporary investments - - - - - Notes receivable 13 561,112 132,438 (690,319) 3,244 Accounts receivable: Customer 342,266 326 887 - 343,479 Allowance for doubtful accounts (8,847) (2,064) (8,799) - (19,709) Associated companies 9,082 148,491 (107,109) (50,463) - Other 88,652 1,690 181,670 - 272,012 Accrued unbilled revenues 403,671 - 171 - 403,842 ----------- ---------- ---------- ----------- ----------- Total receivables 834,824 148,443 66,820 (50,463) 999,624 Deferred fuel costs 201,651 - - - 201,651 Accumulated deferred income taxes 7,974 8 - (7,982) - Fuel inventory - at average cost 102,554 - 2,257 18 104,829 Materials and supplies - at average cost 324,311 33 144,194 - 468,538 Deferred nuclear refueling outage costs 34,920 - 34,830 - 69,750 Prepayments and other 72,739 3,851 43,891 - 120,481 ----------- ---------- ---------- ----------- ----------- TOTAL 1,832,781 761,456 853,287 (748,746) 2,698,777 ----------- ---------- ---------- ----------- ----------- OTHER PROPERTY AND INVESTMENTS Investment in affiliates - at equity 216 8,935,136 706,485 (8,935,137) 706,700 Decommissioning trust funds 848,696 - 912,791 - 1,761,487 Non-utility property - at cost (less accumulated depreciation) 222,781 41,480 29,607 - 293,869 Other 20,291 54,417 372,695 (23,158) 424,245 ----------- ---------- ---------- ----------- ----------- TOTAL 1,091,984 9,031,033 2,021,578 (8,958,295) 3,186,301 ----------- ---------- ---------- ----------- ----------- PROPERTY, PLANT, AND EQUIPMENT Electric 24,727,707 5,846 1,874,583 - 26,608,136 Property under capital lease 749,011 - - - 749,011 Natural gas 208,201 - - - 208,201 Construction work in progress 905,522 11,430 325,130 (3,570) 1,238,512 Nuclear fuel under capital lease 273,850 - - - 273,850 Nuclear fuel 24,737 - 223,022 - 247,760 ----------- ---------- ---------- ----------- ----------- TOTAL PROPERTY, PLANT AND EQUIPMENT 26,889,028 17,276 2,422,735 (3,570) 29,325,470 Less - accumulated depreciation and amortization 11,960,375 4,725 157,794 - 12,122,894 ----------- ---------- ---------- ----------- ----------- PROPERTY, PLANT AND EQUIPMENT - NET 14,928,653 12,551 2,264,941 (3,570) 17,202,576 ----------- ---------- ---------- ----------- ----------- DEFERRED DEBITS AND OTHER ASSETS Regulatory assets: SFAS 109 regulatory asset - net 927,990 - - - 927,990 Unamortized loss on reacquired debt 160,822 - - - 160,822 Other regulatory assets 538,750 - - - 538,750 Long-term receivables 26,437 - - - 26,437 Goodwill 374,099 - 3,373 - 377,472 Other 112,097 471,357 777,005 (478,249) 882,209 ----------- ---------- ---------- ----------- ----------- TOTAL 2,140,195 471,357 780,378 (478,249) 2,913,680 ----------- ---------- ---------- ----------- ----------- TOTAL ASSETS $19,993,613 $10,276,397 $5,920,184 $(10,188,860) $26,001,334 =========== ========== ========== =========== =========== *Totals may not foot due to rounding.
Entergy Corporation Consolidating Balance Sheet June 30, 2002 (Dollars in thousands) (Unaudited) U.S. Parent & Competitive Eliminations Consolidated Utilities Other Businesses LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES Currently maturing long-term debt $ 990,241 $ - $ 102,322 $ - $1,092,562 Notes payable: Associated companies - 119,834 570,406 (690,239) - Other 40,047 705,000 304 - 745,351 Account payable: Associated companies (10,395) 119,506 (85,160) (23,951) - Other 478,950 3,136 102,675 - 584,762 Customer deposits 199,324 86 162 - 199,571 Taxes accrued 578,267 154,643 6,629 - 739,538 Accumulated deferred income taxes - - 19,276 (7,982) 11,294 Nuclear refueling outage costs 8,150 - - - 8,150 Interest accrued 129,479 2,197 29,329 - 161,004 Obligations under capital leases 150,016 - - - 150,016 Other 150,503 9,293 134,844 (29,262) 265,379 ----------- ---------- ---------- ----------- ----------- TOTAL 2,714,582 1,113,695 880,787 (751,434) 3,957,627 ----------- ---------- ---------- ----------- ----------- DEFERRED CREDITS AND OTHER LIABILITIES Accumulated deferred income taxes 3,495,512 (30,768) (77,025) - 3,387,719 Accumulated deferred investment tax credits 459,499 - - - 459,499 Taxes accrued - 450,000 - - 450,000 Obligations under capital leases 183,437 - 15 - 183,452 Other regulatory liabilities 179,921 - - - 179,921 Decommisioning 289,467 - 928,210 - 1,217,677 Transition to competition 79,098 - - - 79,098 Regulatory reserves 50,275 - - - 50,275 Accumulated provisions 287,550 (5) 123,002 - 410,548 Other 810,443 23,954 501,545 (439,120) 896,821 ----------- ---------- ---------- ----------- ----------- TOTAL 5,835,202 443,181 1,475,747 (439,120) 7,315,010 ----------- ---------- ---------- ----------- ----------- Long-term debt 5,164,398 16,357 1,390,774 (72,992) 6,498,538 Preferred stock with sinking fund 24,781 - - - 24,781 Preferred stock without sinking fund 334,337 - - - 334,337 Company-obligated mandatorily redeemable preferred securities of subsidiary trust holding solely junior subordinated deferrable debentures 215,000 - - - 215,000 SHAREHOLDERS' EQUITY Common stock 2,225,870 402,665 1,566,688 (4,192,741) 2,482 Authorized shares 500,000,000 Issued shares CY 248,174,087 Paid-in capital 1,784,097 5,541,593 624,503 (3,283,440) 4,666,754 Retained earnings 1,684,265 3,411,091 37,560 (1,479,075) 3,653,841 Accumulated other comprehensive income (loss) 11,081 (2,390) (27,259) 1,326 (17,241) Less - treasury stock, at cost - 649,795 28,616 (28,616) 649,795 Shares CY 23,500,208 ----------- ---------- ---------- ----------- ----------- TOTAL 5,705,313 8,703,164 2,172,876 (8,925,314) 7,656,041 ----------- ---------- ---------- ----------- ----------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $19,993,613 $10,276,397 $5,920,184 $(10,188,860) $26,001,334 =========== ========== ========== =========== =========== *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 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 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 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 26,460,066 14,972 2,226,447 (6,278) 28,695,207 Less - accumulated depreciation and amortization 11,674,308 4,167 127,103 - 11,805,578 ----------- ---------- ----------- ----------- ----------- PROPERTY, PLANT AND EQUIPMENT - NET 14,785,758 10,805 2,099,344 (6,278) 16,889,629 ----------- ---------- ----------- ----------- ----------- 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 Other regulatory assets 707,439 - - - 707,439 Long-term receivables 28,091 (8) - - 28,083 Goodwill 374,099 - 3,373 - 377,472 Other 126,644 460,927 659,060 (465,511) 781,121 ----------- ---------- ----------- ----------- ----------- TOTAL 2,348,945 460,919 662,433 (465,511) 3,006,787 ----------- ---------- ----------- ----------- ----------- 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 350,178 183,270 16,685 - 550,133 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 2,136,777 877,422 635,953 (596,233) 3,053,920 ----------- ---------- ----------- ----------- ----------- 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 Taxes accrued - 400,000 - - 400,000 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 6,044,687 408,948 1,492,013 (441,828) 7,503,821 ----------- ---------- ----------- ----------- ----------- 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 Preferred stock without sinking fund 334,337 - - - 334,337 Company-obligated mandatorily redeemable preferred securities of subsidiary trust holding solely junior subordinated deferrable debentures 215,000 - - - 215,000 SHAREHOLDERS' EQUITY 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 5,545,510 8,489,283 2,192,750 (8,771,524) 7,456,020 ----------- ---------- ----------- ----------- ----------- 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 June 30, 2002 vs December 31, 2001 Increase/(Decrease) (Dollars in thousands) (Unaudited) U.S. Parent & Competitive Eliminations Consolidated Utilities Other Businesses ASSETS CURRENT ASSETS Cash and cash equivalents: Cash $ 20,383 $ 1,059 $ (6,862) $ - $ 14,580 Temporary cash investments - at cost, which approximates market (221,419) 19,036 169,931 - (32,452) Special deposits - (230) (2,811) - (3,041) ----------- ---------- ----------- ----------- ----------- Total cash and cash equivalents (201,036) 19,865 160,258 - (20,913) ----------- ---------- ----------- ----------- ----------- Other temporary investments (145,218) (4,782) - - (150,000) Notes receivable (60) 267,491 (107,240) (159,084) 1,107 Accounts receivable: Customer 47,575 218 888 - 48,680 Allowance for doubtful accounts - - (454) - (454) Associated companies (17,794) 53,913 (30,002) (6,116) - Other (57,491) (2,550) 46,331 (950) (14,659) Accrued unbilled revenues 135,093 - 69 - 135,162 ----------- ---------- ----------- ----------- ----------- Total receivables 107,383 51,581 16,832 (7,066) 168,729 Deferred fuel costs 29,207 - - - 29,207 Accumulated deferred income taxes (19,124) - - 12,636 (6,488) Fuel inventory - at average cost 6,691 - 642 - 7,332 Materials and supplies - at average cost (1,402) 3 9,294 - 7,894 Deferred nuclear refueling outage costs 7,588 - (17,594) - (10,005) Prepayments and other (27,684) 407 18,506 - (8,770) ----------- ---------- ----------- ----------- ----------- TOTAL (243,655) 334,565 80,698 (153,514) 18,093 ----------- ---------- ----------- ----------- ----------- OTHER PROPERTY AND INVESTMENTS Investment in affiliates - at equity - 153,790 (59,404) (153,790) (59,403) Decommissioning trust funds (6,009) - (8,454) - (14,463) Non-utility property - at cost (less accumulated depreciation) (1,907) 173 (14) - (1,748) Other 1,345 (15,276) (57,365) - (71,297) ----------- ---------- ----------- ----------- ----------- TOTAL (6,571) 138,687 (125,237) (153,790) (146,911) ----------- ---------- ----------- ----------- ----------- PROPERTY, PLANT, AND EQUIPMENT Electric 236,537 88 12,135 - 248,760 Property under capital lease (4,299) - - - (4,299) Natural gas 6,360 - - - 6,360 Construction work in progress 193,852 2,216 156,906 2,708 355,683 Nuclear fuel under capital lease 8,386 - - - 8,386 Nuclear fuel (11,874) - 27,247 - 15,373 ----------- ---------- ----------- ----------- ----------- TOTAL PROPERTY, PLANT AND EQUIPMENT 428,962 2,304 196,288 2,708 630,263 Less - accumulated depreciation and amortization 286,067 558 30,691 - 317,316 ----------- ---------- ----------- ----------- ----------- PROPERTY, PLANT AND EQUIPMENT - NET 142,895 1,746 165,597 2,708 312,947 ----------- ---------- ----------- ----------- ----------- DEFERRED DEBITS AND OTHER ASSETS Regulatory assets: SFAS 109 regulatory asset - net (18,136) - - - (18,136) Unamortized loss on reacquired debt (5,724) - - - (5,724) Other regulatory assets (168,689) - - - (168,689) Long-term receivables (1,654) 8 - - (1,646) Goodwill - - - - - Other (14,547) 10,430 117,945 (12,738) 101,088 ----------- ---------- ----------- ----------- ----------- TOTAL (208,750) 10,438 117,945 (12,738) (93,107) ----------- ---------- ----------- ----------- ----------- TOTAL ASSETS $ (316,082) $ 485,436 $ 239,003 $ (317,334) $ 91,023 =========== ========== =========== =========== =========== *Totals may not foot due to rounding.
Entergy Corporation Consolidating Balance Sheet June 30, 2002 vs December 31, 2001 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 $ 405,803 $ - $ 3,989 $ - $ 409,791 Notes payable: Associated companies - (109,610) 267,632 (158,021) - Other 39,334 354,999 - - 394,333 Account payable: Associated companies (6,718) 22,595 (23,120) 7,243 - Other (29,383) (3,011) 24,626 - (7,768) Customer deposits 11,148 33 162 - 11,341 Taxes accrued 228,089 (28,627) (10,056) - 189,405 Accumulated deferred income taxes - - (1,342) 12,636 11,294 Nuclear refueling outage costs 6,070 - - - 6,070 Interest accrued (50,797) (42) 19,424 - (31,416) Obligations under capital leases 664 - - - 664 Other (26,404) (64) (36,481) (17,059) (80,008) ----------- ---------- ----------- ----------- ----------- TOTAL 577,805 236,273 244,834 (155,201) 903,707 ----------- ---------- ----------- ----------- ----------- DEFERRED CREDITS AND OTHER LIABILITIES Accumulated deferred income taxes (63,425) 4,717 (128,237) - (186,945) Accumulated deferred investment tax credits (11,591) - - - (11,591) Taxes accrued - 50,000 - - 50,000 Obligations under capital leases 2,367 - - - 2,367 Other regulatory liabilities 44,043 - - - 44,043 Decommisioning 4,438 - 18,906 - 23,344 Transition to competition (152,414) - - - (152,414) Regulatory reserves 12,684 - - - 12,684 Accumulated provisions (3,642) (1) (11,208) - (14,851) Other (41,945) (20,483) 104,273 2,708 44,552 ----------- ---------- ----------- ----------- ----------- TOTAL (209,485) 34,233 (16,266) 2,708 (188,811) ----------- ---------- ----------- ----------- ----------- Long-term debt (842,801) 1,050 30,310 (11,050) (822,491) Preferred stock with sinking fund (1,404) - - - (1,404) Preferred stock without sinking fund - - - - - Company-obligated mandatorily redeemable preferred securities of subsidiary trust holding solely junior subordinated deferrable debentures - - - - - SHAREHOLDERS' EQUITY Common stock - - (1) (1) - Authorized shares Issued shares CY Paid-in capital - 13,265 46,420 (55,635) 4,050 Retained earnings 148,508 23,534 (126,550) (30,097) 15,393 Accumulated other comprehensive income (loss) 11,295 68,057 60,257 (68,057) 71,553 Less - treasury stock, at cost - (109,025) - - (109,025) ----------- ---------- ----------- ----------- ----------- TOTAL 159,803 213,881 (19,874) (153,790) 200,020 ----------- ---------- ----------- ----------- ----------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ (316,082) $ 485,436 $ 239,003 $ (317,334) $ 91,023 =========== ========== =========== =========== =========== * Totals may not foot due to rounding.
Entergy Corporation Consolidating Income Statement Three Months Ended June 30, 2002 (Dollars in thousands) (Unaudited) U.S. Parent & Competitive Eliminations Consolidated Utilities Other Businesses OPERATING REVENUES: Domestic electric $1,687,266 $ - $ - $ (509) $ 1,686,758 Natural gas 24,982 - - - 24,982 Competitive businesses - 8,585 378,143 (1,887) 384,841 ---------- --------- --------- ----------- ----------- Total 1,712,248 8,585 378,143 (2,396) 2,096,581 OPERATING EXPENSES: Operating and Maintenance: Fuel, fuel related expenses, and gas purchased for resale 424,137 - 47,275 - 471,413 Purchased power 209,378 309 25,925 (2,093) 233,518 ---------- --------- --------- ----------- ----------- Gross Margin 1,078,733 8,276 304,943 (303) 1,391,650 Margin % 63.0% 96.4% 80.6% 12.6% 66.4% Nuclear refueling outage expenses 14,799 - 9,888 - 24,687 Provision for turbine commitments, assets impairments and restructuring charges - - 18,169 - 18,169 Other operation and maintenance 526,958 20,580 180,042 (563) 727,017 Decommissioning 8,198 - - - 8,198 Taxes other than income taxes 73,375 694 8,125 - 82,194 ---------- --------- --------- ----------- ----------- Total 1,256,845 21,583 289,424 (2,656) 1,565,196 ---------- --------- --------- ----------- ----------- EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION, AND AMORTIZATION 455,403 (12,998) 88,719 260 531,385 ---------- --------- --------- ----------- ----------- Margin % 26.6% (151.4%) 23.5% (10.9%) 25.3% DEPRECIATION AND AMORTIZATION: Depreciation and amortization 188,157 1,339 16,380 - 205,876 Other regulatory charges (credits) (170,645) - - - (170,645) ---------- --------- --------- ----------- ----------- Total 17,512 1,339 16,380 - 35,231 ---------- --------- --------- ----------- ----------- OPERATING INCOME (LOSS) 437,891 (14,337) 72,339 260 496,154 ---------- --------- --------- ----------- ----------- Margin % 25.6% (167.0%) 19.1% (10.9%) 23.7% OTHER INCOME (DEDUCTIONS): Allowance for equity funds used during construction 8,323 - - - 8,323 Gain/(loss) on sale of assets - net 1,009 - - - 1,009 Interest and dividend income 10,833 8,662 17,194 (8,979) 27,710 Equity in earnings of unconsolidated equity affiliates - - 17,740 - 17,740 Miscellaneous - net (5,406) 8,223 (2,667) (260) (109) ---------- --------- --------- ----------- ----------- Total 14,759 16,885 32,267 (9,239) 54,673 ---------- --------- --------- ----------- ----------- INTEREST AND OTHER CHARGES: Interest on long-term debt 104,643 - 16,749 - 121,393 Other interest - net 12,272 11,075 20,530 (8,979) 34,897 Distributions on preferred securities of subsidiaries 4,709 - - - 4,709 Allowance for borrowed funds used during construction (6,291) - - - (6,291) ---------- --------- --------- ----------- ----------- Total 115,333 11,075 37,279 (8,979) 154,708 ---------- --------- --------- ----------- ----------- INCOME (LOSS) BEFORE INCOME TAXES 337,318 (8,526) 67,327 - 396,119 INCOME TAXES 136,536 (3,486) 15,484 - 148,534 ---------- --------- --------- ----------- ----------- CONSOLIDATED NET INCOME (LOSS) 200,782 (5,040) 51,843 - 247,585 PREFERRED DIVIDEND REQUIREMENTS OF SUBSIDIARIES AND OTHER 5,932 - - - 5,932 ---------- --------- --------- ----------- ----------- EARNINGS (LOSS) APPLICABLE TO COMMON STOCK $ 194,850 $ (5,040) $ 51,843 $ - $ 241,653 ========== ========= ========= =========== =========== Margin % 11.4% (58.7%) 13.7% - 11.5% EARNINGS (LOSS) PER AVERAGE COMMON SHARE: BASIC $0.87 ($0.02) $0.23 $1.08 DILUTED $0.85 ($0.02) $0.23 $1.06 AVERAGE NUMBER OF COMMON SHARES OUTSTANDING: BASIC 224,330,654 DILUTED 228,847,752 *Totals may not foot due to rounding.
Entergy Corporation Consolidating Income Statement Three Months Ended June 30, 2001 (Dollars in thousands) (Unaudited) U.S. Parent & Competitive Eliminations Consolidated Utilities Other Businesses OPERATING REVENUES: Domestic electric $1,991,807 $ - $ - $ (969) $ 1,990,838 Natural gas 30,548 - - - 30,548 Competitive businesses - 8,092 477,072 (275) 484,889 ----------------------------------------------------------------- Total 2,022,355 8,092 477,072 (1,244) 2,506,275 ----------------------------------------------------------------- OPERATING EXPENSES: Operating and Maintenance: Fuel, fuel related expenses, and gas 759,634 - 265,985 - 1,025,619 purchased for resale Purchased power 233,513 - 13,211 (829) 245,895 ----------------------------------------------------------------- Gross Margin 1,029,208 8,092 197,876 (415) 1,234,761 Margin % 50.9% 100.0% 41.5% 33.3% 49.3% Nuclear refueling outage expenses 17,987 - 5,090 - 23,077 Provision for turbine commitments, asset impairments and restructuring charges - - - - - Other operation and maintenance 323,216 1,632 111,948 (686) 436,110 Decommissioning 8,903 - - - 8,903 Taxes other than income taxes 83,952 880 4,830 - 89,662 ----------------------------------------------------------------- Total 1,427,205 2,512 401,064 (1,515) 1,829,266 ----------------------------------------------------------------- EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION, AND AMORTIZATION 595,150 5,580 76,008 272 677,009 ----------------------------------------------------------------- Margin % 29.4% 69.0% 15.9% (21.9%) 27.0% DEPRECIATION AND AMORTIZATION: Depreciation and amortization 169,425 1,068 12,879 - 183,372 Other regulatory charges (credits) 13,088 - - - 13,088 ----------------------------------------------------------------- Total 182,513 1,068 12,879 - 196,460 ----------------------------------------------------------------- OPERATING INCOME (LOSS) 412,637 4,512 63,129 272 480,549 ----------------------------------------------------------------- Margin % 20.4% 55.8% 13.2% (21.9%) 19.2% OTHER INCOME (DEDUCTIONS): Allowance for equity funds used during 6,644 - - - 6,644 construction Gain/(loss) on sale of assets - net 760 - - - 760 Interest and dividend income 16,447 10,465 16,947 (10,264) 33,595 Equity in earnings of unconsolidated equity affiliates - - 70,780 - 70,780 Miscellaneous - net (8,082) 6,138 2,646 (272) 432 ----------------------------------------------------------------- Total 15,769 16,603 90,373 (10,536) 112,211 ----------------------------------------------------------------- INTEREST AND OTHER CHARGES: Interest on long-term debt 121,327 - 9,405 - 130,732 Other interest - net 17,478 11,729 32,443 (10,264) 51,386 Distributions on preferred securities 4,709 - - - 4,709 of subsidiaries Allowance for borrowed funds used (5,492) - - - (5,492) during construction ----------------------------------------------------------------- Total 138,022 11,729 41,848 (10,264) 181,335 ----------------------------------------------------------------- INCOME (LOSS) BEFORE INCOME TAXES 290,384 9,386 111,654 - 411,425 INCOME TAXES 115,228 2,239 48,376 - 165,842 ----------------------------------------------------------------- CONSOLIDATED NET INCOME (LOSS) 175,156 7,147 63,278 - 245,583 PREFERRED DIVIDEND REQUIREMENTS OF SUBSIDIARIES AND OTHER 6,677 - - - 6,677 ----------------------------------------------------------------- EARNINGS (LOSS) APPLICABLE TO COMMON STOCK $ 168,479 $ 7,147 $ 63,278 $ - $238,906 ================================================================= Margin % 8.3% 88.3% 13.3% (0.0%) 9.5% EARNINGS (LOSS) PER AVERAGE COMMON SHARE: BASIC $0.76 $0.03 $0.29 $1.08 DILUTED $0.74 $0.03 $0.29 $1.06 AVERAGE NUMBER OF COMMON SHARES OUTSTANDING: BASIC 221,113,598 DILUTED 225,706,421 *Totals may not foot due to rounding.
Entergy Corporation Consolidating Income Statement Three Months Ended June 30, 2002 vs. 2001 Increase/(Decrease) (Dollars in thousands) (Unaudited) U.S. Parent & Competitive Eliminations Consolidated Utilities Other Businesses OPERATING REVENUES: Domestic electric $(304,541) $ - $ - $ 460 $ (304,081) Natural gas (5,566) - - - (5,566) Competitive businesses - 493 (98,929) (1,612) (100,048) --------- --------- ---------- ----------- ---------- Total (310,107) 493 (98,929) (1,153) (409,695) OPERATING EXPENSES: Operating and Maintenance: Fuel, fuel related expenses, and gas purchased for resale (335,497) - (218,710) - (554,207) Purchased power (24,135) 309 12,714 (1,264) (12,377) --------- --------- ---------- ----------- ---------- Gross Margin 49,525 184 107,067 112 156,889 Margin % 12.1% (3.6%) 39.2% (20.7%) 17.1% Nuclear refueling outage expenses (3,188) - 4,798 - 1,610 Provision for turbine commitments, asset impairments and restructuring charges - - 18,169 - 18,169 Other operation and maintenance 203,742 18,948 68,094 123 290,907 Decommissioning (705) - - - (705) Taxes other than income taxes (10,577) (186) 3,295 - (7,468) --------- --------- ---------- ----------- ---------- Total (170,360) 19,071 (111,640) (1,141) (264,070) --------- --------- ---------- ----------- ---------- EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION, AND AMORTIZATION (139,747) (18,578) 12,711 (12) (145,624) --------- --------- ---------- ----------- ---------- Margin % (2.8%) (220.4%) 7.5% 11.0% (1.7%) DEPRECIATION AND AMORTIZATION: - Depreciation and amortization 18,732 271 3,501 - 22,504 Other regulatory charges (credits) (183,733) - - - (183,733) --------- --------- ---------- ----------- ---------- Total (165,001) 271 3,501 - (161,229) --------- --------- ---------- ----------- ---------- OPERATING INCOME (LOSS) 25,254 (18,849) 9,210 (12) 15,604 --------- --------- ---------- ----------- ---------- Margin % 5.2% (222.8%) 5.9% 11.0% 4.5% OTHER INCOME (DEDUCTIONS): Allowance for equity funds used during construction 1,679 - - - 1,679 Gain/(loss) on sale of assets - net 249 - - - 249 Interest and dividend income (5,614) (1,803) 247 1,285 (5,885) Equity in earnings of unconsolidated equity affiliates - - (53,040) - (53,040) Miscellaneous - net 2,676 2,085 (5,313) 12 (540) --------- --------- ---------- ----------- ---------- Total (1,010) 282 (58,106) 1,297 (57,537) --------- --------- ---------- ----------- ---------- INTEREST AND OTHER CHARGES: Interest on long-term debt (16,684) - 7,344 - (9,340) Other interest - net (5,206) (654) (11,913) 1,285 (16,489) Distributions on preferred securities of subsidiaries - - - - - Allowance for borrowed funds used during construction (799) - - - (799) --------- --------- ---------- ----------- ---------- Total (22,689) (654) (4,569) 1,285 (26,628) --------- --------- ---------- ----------- ---------- INCOME (LOSS) BEFORE INCOME TAXES 46,933 (17,913) (44,327) - (15,305) INCOME TAXES 21,308 (5,725) (32,892) - (17,308) --------- --------- ---------- ----------- ---------- CONSOLIDATED NET INCOME (LOSS) 25,625 (12,188) (11,435) - 2,002 PREFERRED DIVIDEND REQUIREMENTS OF SUBSIDIARIES AND OTHER (745) - - - (745) --------- --------- ---------- ----------- ---------- EARNINGS (LOSS) APPLICABLE TO COMMON STOCK $ 26,370 $ (12,188) $ (11,435) $ - $ 2,747 ========= ========= ========== =========== ========== Margin % 3.0% (147.0%) 0.4% - 2.0% EARNINGS (LOSS) PER AVERAGE COMMON SHARE: BASIC $0.11 ($0.05) ($0.06) - - DILUTED $0.11 ($0.05) ($0.06) - - *Totals may not foot due to rounding.
Entergy Corporation Consolidating Income Statement Year to Date June 30, 2002 (Dollars in thousands) (Unaudited) U.S. Parent & Competitive Eliminations Consolidated Utilities Other Businesses OPERATING REVENUES: Domestic electric $3,088,688 $ - $ - $ (922) $ 3,087,767 Natural gas 71,360 - - - 71,360 Competitive businesses - 17,586 782,799 (2,097) 798,288 ----------------------------------------------------------------- Total 3,160,048 17,586 782,799 (3,019) 3,957,415 ----------------------------------------------------------------- OPERATING EXPENSES: Operating and Maintenance: Fuel, fuel related expenses, and gas 820,017 - 120,257 - 940,274 purchased for resale Purchased power 340,470 424 64,525 (2,414) 403,004 ----------------------------------------------------------------- Gross Margin 1,999,561 17,162 598,017 (605) 2,614,137 Margin % 63.3% 97.6% 76.4% 20.0% 66.1% Nuclear refueling outage expenses 30,386 - 19,487 - 49,874 Provision for turbine commitments, asset impairments and restructuring charges - - 419,542 - 419,542 Other operation and maintenance 864,501 36,542 351,451 (1,124) 1,251,369 Decommissioning 16,391 - - - 16,391 Taxes other than income taxes 161,374 1,270 21,921 - 184,565 ----------------------------------------------------------------- Total 2,233,139 38,236 997,183 (3,538) 3,265,019 ----------------------------------------------------------------- EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION, AND AMORTIZATION 926,909 (20,650) (214,384) 519 692,396 ----------------------------------------------------------------- Margin % 29.3% (117.4%) (27.4%) (17.2%) 17.5% DEPRECIATION AND AMORTIZATION: Depreciation and amortization 378,044 2,813 30,142 - 410,999 Other regulatory charges (credits) (169,082) - - - (169,082) ----------------------------------------------------------------- Total 208,962 2,813 30,142 - 241,917 ----------------------------------------------------------------- OPERATING INCOME (LOSS) 717,947 (23,463) (244,526) 519 450,479 ----------------------------------------------------------------- Margin % 22.7% (133.4%) (31.2%) (17.2%) 11.4% OTHER INCOME (DEDUCTIONS): Allowance for equity funds used during 15,004 - - - 15,004 construction Gain/(loss) on sale of assets - net 1,672 3 - - 1,674 Interest and dividend income 15,349 15,791 35,910 (15,814) 51,237 Equity in earnings of unconsolidated equity affiliates - - 92,804 - 92,804 Miscellaneous - net (9,928) 5,682 (6,417) (519) (11,182) ----------------------------------------------------------------- Total 22,097 21,476 122,297 (16,333) 149,537 ----------------------------------------------------------------- INTEREST AND OTHER CHARGES: Interest on long-term debt 211,936 - 32,983 - 244,919 Other interest - net 19,681 16,896 39,607 (15,814) 60,371 Distributions on preferred securities 9,419 - - - 9,419 of subsidiaries Allowance for borrowed funds used (11,930) - - - (11,930) during construction ----------------------------------------------------------------- Total 229,106 16,896 72,590 (15,814) 302,779 ----------------------------------------------------------------- INCOME (LOSS) BEFORE INCOME TAXES 510,938 (18,883) (194,819) - 297,237 INCOME TAXES 201,912 (7,677) (71,599) - 122,636 ----------------------------------------------------------------- CONSOLIDATED NET INCOME (LOSS) 309,026 (11,206) (123,219) - 174,601 PREFERRED DIVIDEND REQUIREMENTS OF SUBSIDIARIES AND OTHER 11,872 - - - 11,872 ----------------------------------------------------------------- EARNINGS (LOSS) APPLICABLE TO COMMON STOCK $ 297,154 $ (11,206) $ (123,219) $ - $162,729 ================================================================= Margin % 9.4% (63.7%) (15.7%) - 4.1% EARNINGS (LOSS) PER AVERAGE COMMON SHARE: BASIC $1.33 ($0.05) ($0.55) $0.73 DILUTED $1.31 ($0.05) ($0.54) $0.72 AVERAGE NUMBER OF COMMON SHARES OUTSTANDING: BASIC 223,143,647 DILUTED 227,588,889 *Totals may not foot due to rounding.
Entergy Corporation Consolidating Income Statement Year to Date June 30, 2001 (Dollars in thousands) (Unaudited) U.S. Parent & Competitive Eliminations Consolidated Utilities Other Businesses OPERATING REVENUES: Domestic electric $3,865,130 $ - $ - $ (1,747) $ 3,863,383 Natural gas 140,931 - - - 140,931 Competitive businesses - 20,482 1,134,398 (488) 1,154,392 ----------------------------------------------------------------- Total 4,006,062 20,482 1,134,398 (2,235) 5,158,706 ----------------------------------------------------------------- OPERATING EXPENSES: Operating and Maintenance: Fuel, fuel related expenses, and gas 1,586,929 - 564,552 - 2,151,481 purchased for resale Purchased power 459,323 - 150,833 (382) 609,774 ----------------------------------------------------------------- Gross Margin 1,959,810 20,482 419,013 (1,853) 2,397,451 Margin % 48.9% 100.0% 36.9% 82.9% 46.5% Nuclear refueling outage expenses 35,193 - 5,090 - 40,283 Provision for turbine commitments, assets impairments and restructuring charges - - - Other operation and maintenance 625,053 32,024 251,913 (2,421) 906,569 Decommissioning 17,804 - - - 17,804 Taxes other than income taxes 173,931 1,465 16,729 - 192,125 ----------------------------------------------------------------- Total 2,898,233 33,489 989,117 (2,803) 3,918,036 ----------------------------------------------------------------- EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION, AND AMORTIZATION 1,107,829 (13,007) 145,281 568 1,240,670 ----------------------------------------------------------------- Margin % 27.7% (63.5%) 12.8% (25.4%) 24.1% DEPRECIATION AND AMORTIZATION: Depreciation and amortization 359,848 2,153 24,447 - 386,448 Other regulatory charges (credits) 12,699 - - - 12,699 ----------------------------------------------------------------- Total 372,547 2,153 24,447 - 399,147 ----------------------------------------------------------------- OPERATING INCOME (LOSS) 735,282 (15,160) 120,834 568 841,523 ----------------------------------------------------------------- Margin % 18.4% (74.0%) 10.7% (25.4%) 16.3% OTHER INCOME (DEDUCTIONS): Allowance for equity funds used during 11,587 - - - 11,587 construction Gain/(loss) on sale of assets - net 1,344 - - - 1,344 Interest and dividend income 39,304 25,387 40,338 (23,957) 81,071 Equity in earnings of unconsolidated equity affiliates - - 95,543 - 95,543 Miscellaneous - net (16,398) 6,093 19,520 (568) 8,649 ----------------------------------------------------------------- Total 35,837 31,480 155,401 (24,525) 198,194 ----------------------------------------------------------------- INTEREST AND OTHER CHARGES: Interest on long-term debt 241,284 - 18,419 - 259,703 Other interest - net 33,521 21,586 68,150 (23,957) 99,300 Distributions on preferred securities 9,419 - - - 9,419 of subsidiaries Allowance for borrowed funds used (9,431) - - - (9,431) during construction ----------------------------------------------------------------- Total 274,793 21,586 86,569 (23,957) 358,991 ----------------------------------------------------------------- INCOME (LOSS) BEFORE INCOME TAXES 496,326 (5,265) 189,666 - 680,726 INCOME TAXES 200,733 (3,117) 76,657 - 274,272 ----------------------------------------------------------------- CONSOLIDATED NET INCOME (LOSS) 295,593 (2,148) 113,009 - 406,454 PREFERRED DIVIDEND REQUIREMENTS OF SUBSIDIARIES AND OTHER 13,393 - - - 13,393 ----------------------------------------------------------------- EARNINGS (LOSS) APPLICABLE TO COMMON STOCK $ 282,200 $ (2,148) $ 113,009 $ - $393,061 ================================================================= Margin % 7.0% (10.5%) 10.1% - 7.6% EARNINGS (LOSS) PER AVERAGE COMMON SHARE: BASIC $1.28 ($0.01) $0.51 $1.78 DILUTED $1.25 ($0.01) $0.51 $1.75 AVERAGE NUMBER OF COMMON SHARES OUTSTANDING: BASIC 220,518,674 DILUTED 224,749,374 *Totals may not foot due to rounding.
Entergy Corporation Consolidating Income Statement Year to Date June 30, 2002 vs. 2001 Increase/(Decrease) (Dollars in thousands) (Unaudited) U.S. Parent & Competitive Eliminations Consolidated Utilities Other Businesses OPERATING REVENUES: Domestic electric $(776,442) $ - $ - $ 825 $ (775,617) Natural gas (69,571) - - - (69,571) Competitive businesses - (2,896) (351,599) (1,609) (356,104) --------- --------- ---------- ----------- ---------- Total (846,014) (2,896) (351,599) (784) (1,201,292) OPERATING EXPENSES: Operating and Maintenance: Fuel, fuel related expenses, and gas purchased for resale (766,912) - (444,295) - (1,211,207) Purchased power (118,853) 424 (86,308) (2,032) (206,770) --------- --------- ---------- ----------- ---------- Gross Margin 39,751 (3,320) 179,004 1,248 216,685 Margin % 14.4% (2.4%) 39.5% (62.9%) 19.6% Nuclear refueling outage expenses (4,807) - 14,397 - 9,591 Provision for turbine commitments, asset impairments and restructuring charges - - 419,542 - 419,542 Other operation and maintenance 239,448 4,518 99,538 1,297 344,800 Decommissioning (1,413) - - - (1,413) Taxes other than income taxes (12,577) (195) 5,192 - (7,560) --------- --------- ---------- ----------- ---------- Total (665,094) 4,747 8,066 (735) (653,017) --------- --------- ---------- ----------- ---------- EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION, AND AMORTIZATION (180,920) (7,643) (359,665) (49) (548,275) --------- --------- ---------- ----------- ---------- Margin % 1.7% (53.9%) (40.2%) 8.2% (6.6%) DEPRECIATION AND AMORTIZATION: Depreciation and amortization 18,196 660 5,695 - 24,551 Other regulatory charges (credits) (181,781) - - - (181,781) --------- --------- ---------- ----------- ---------- Total (163,585) 660 5,695 - (157,230) --------- --------- ---------- ----------- ---------- OPERATING INCOME (LOSS) (17,335) (8,303) (365,360) (49) (391,045) --------- --------- ---------- ----------- ---------- Margin % 4.4% (59.4%) (41.9%) 8.2% (4.9%) OTHER INCOME (DEDUCTIONS): Allowance for equity funds used during construction 3,417 - - - 3,417 Gain/(loss) on sale of assets - net 328 3 - - 330 Interest and dividend income (23,955) (9,596) (4,428 8,143 (29,834) Equity in earnings of unconsolidated equity affiliates - - (2,739) - (2,739) Miscellaneous - net 6,470 (411) (25,937) 49 (19,831) --------- --------- ---------- ----------- ---------- Total (13,740) (10,004) (33,104) 8,192 (48,657) --------- --------- ---------- ----------- ---------- INTEREST AND OTHER CHARGES: Interest on long-term debt (29,348) - 14,564 - (14,784) Other interest - net (13,840) (4,690) (28,543) 8,143 (38,929) Distributions on preferred securities of subsidiaries - - - - - Allowance for borrowed funds used during construction (2,499) - - - (2,499) --------- --------- ---------- ----------- ---------- Total (45,687) (4,690) (13,979) 8,143 (56,212) --------- --------- ---------- ----------- ---------- INCOME (LOSS) BEFORE INCOME TAXES 14,612 (13,618) (384,485) - (383,491) INCOME TAXES 1,179 (4,560) (148,256) - (151,636) --------- --------- ---------- ----------- ---------- CONSOLIDATED NET INCOME (LOSS) 13,433 (9,058) (236,229) - (231,855) PREFERRED DIVIDEND REQUIREMENTS OF SUBSIDIARIES AND OTHER (1,521) - - - (1,521) --------- --------- ---------- ----------- ---------- EARNINGS (LOSS) APPLICABLE TO COMMON STOCK $ 14,954 $ (9,058) $ (236,229) $ - $(230,334) ========= ========= ========== =========== ========== Margin % 2.4% (53.2%) (25.7%) - (3.5%) EARNINGS (LOSS) PER AVERAGE COMMON SHARE: BASIC $0.05 ($0.04) ($1.06) - ($1.05) DILUTED $0.06 ($0.04) ($1.05) - ($1.03) *Totals may not foot due to rounding.
Entergy Corporation Consolidating Income Statement Twelve Months Ended June 30, 2002 (Dollars in thousands) (Unaudited) U.S. Parent & Competitive Eliminations Consolidated Utilities Other Businesses OPERATING REVENUES: Domestic electric $ 6,470,576 $ - $ - $ (1,366) $6,469,210 Natural gas 116,330 - - - 116,330 Competitive businesses - 31,709 1,806,981 (5,771) 1,832,919 ----------- --------- ---------- ----------- ---------- Total 6,586,906 31,709 1,806,981 (7,137) 8,418,459 OPERATING EXPENSES: Operating and Maintenance: Fuel, fuel related expenses, and gas purchased for resale 2,003,006 - 467,465 - 2,470,471 Purchased power 691,594 468 128,568 (5,969) 814,661 ----------- --------- ---------- ----------- ---------- Gross Margin 3,892,306 31,241 1,210,948 (1,168) 5,133,326 Margin % 59.1% 98.5% 67.0% 16.4% 61.0% Nuclear refueling outage expenses 60,945 - 37,790 - 98,735 Provision for turbine commitments, asset impairments and restructuring charges - - 419,542 - 419,542 Other operation and maintenance 1,644,841 90,025 764,339 (2,664) 2,496,542 Decommissioning 1,776 - - - 1,776 Taxes other than income taxes 339,643 2,393 50,254 - 392,290 ----------- --------- ---------- ----------- ---------- Total 4,741,805 92,886 1,867,958 (8,633) 6,694,017 ----------- --------- ---------- ----------- ---------- EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION, AND AMORTIZATION 1,845,101 (61,177) (60,977) 1,496 1,724,442 ----------- --------- ---------- ----------- ---------- Margin % 28.0% (192.9%) (3.4%) (21.0%) 20.5% DEPRECIATION AND AMORTIZATION: Depreciation and amortization 682,340 5,174 58,068 - 745,583 Other regulatory charges (credits) (202,291) - - - (202,291) ----------- --------- ---------- ----------- ---------- Total 480,049 5,174 58,068 - 543,292 ----------- --------- ---------- ----------- ---------- OPERATING INCOME (LOSS) 1,365,052 (66,351) (119,045) 1,496 1,181,150 ----------- --------- ---------- ----------- ---------- Margin % 20.7% (209.2%) (6.6%) (21.0%) 14.0% OTHER INCOME (DEDUCTIONS): Allowance for equity funds used during construction 29,627 - - - 29,628 Gain/(loss) on sale of assets - net 2,936 47 3,721 - 6,705 Interest and dividend income 55,747 27,638 72,795 (26,210) 129,970 Equity in earnings of unconsolidated equity affiliates - - 172,545 - 172,545 Miscellaneous - net (32,895) 4,914 (7,528) (1,496) (37,003) ----------- --------- ---------- ----------- ---------- Total 55,416 32,600 241,533 (27,706) 301,845 ----------- --------- ---------- ----------- ---------- INTEREST AND OTHER CHARGES: Interest on long-term debt 445,675 - 84,462 - 530,136 Other interest - net 90,425 36,870 57,625 (26,210) 158,710 Distributions on preferred securities of subsidiaries 18,838 - - - 18,838 Allowance for borrowed funds used during construction (23,918) - - - (23,918) ----------- --------- ---------- ----------- ---------- Total 531,019 36,870 142,087 (26,210) 683,766 ----------- --------- ---------- ----------- ---------- INCOME (LOSS) BEFORE INCOME TAXES 889,449 (70,621) (19,599) - 799,229 INCOME TAXES 301,463 (3,391) 5,984 - 304,056 ----------- --------- ---------- ----------- ---------- INCOME (LOSS) BEFORE CUMULATIVE EFFECT OF ACCOUNTING CHANGE 587,986 (67,230) (25,583) - 495,173 CUMULATIVE EFFECT OF ACCOUNTING CHANGE (net of taxes) - - 23,482 - 23,482 ----------- --------- ---------- ----------- ---------- CONSOLIDATED NET INCOME (LOSS) 587,986 (67,230) (2,101) - 518,655 PREFERRED DIVIDEND REQUIREMENTS OF SUBSIDIARIES AND OTHER 22,791 - - - 22,791 ----------- --------- ---------- ----------- ---------- EARNINGS (LOSS) APPLICABLE TO COMMON STOCK $ 565,195 $(67,230) $ (2,101) $ - $495,864 =========== ========= ========== =========== ========== Margin % 8.6% (212.0%) (0.1%) - 5.9% EARNINGS (LOSS) PER AVERAGE COMMON SHARE: BASIC $2.54 ($0.30) ($0.01) $2.23 DILUTED $2.50 ($0.30) ($0.01) $2.19 AVERAGE NUMBER OF COMMON SHARES OUTSTANDING: BASIC 222,245,970 DILUTED 226,080,808 *Totals may not foot due to rounding.
Entergy Corporation Consolidating Income Statement Twelve Months Ended June 30, 2001 (Dollars in thousands) (Unaudited) U.S. Parent & Competitive Eliminations Consolidated Utilities Other Businesses OPERATING REVENUES: Domestic electric $8,076,227 $ - $ - $ (10,727) $ 8,065,500 Natural gas 232,511 - - - 232,511 Competitive businesses - 20,262 2,937,396 (30,926) 2,926,732 ----------------------------------------------------------------- Total 8,308,738 20,262 2,937,396 (41,653) 11,224,743 ----------------------------------------------------------------- OPERATING EXPENSES: Operating and Maintenance: Fuel, fuel related expenses, and gas 2,996,988 - 838,876 (739) 3,835,126 purchased for resale Purchased power 1,034,271 - 1,399,871 (33,551) 2,400,591 ----------------------------------------------------------------- Gross Margin 4,277,479 20,262 698,648 (7,363) 4,989,026 Margin % 51.5% 100.0% 23.8% 17.7% 44.4% Nuclear refueling outage expenses 70,519 - 5,090 - 75,609 Provision for turbine commitments, asset impairments and restructuring charges - - - - - Other operation and maintenance 1,454,042 97,970 479,853 (9,117) 2,022,748 Decommissioning 40,182 - - - 40,182 Taxes other than income taxes 372,995 2,309 24,006 - 399,310 ----------------------------------------------------------------- Total 5,968,997 100,279 2,747,697 (43,407) 8,773,566 ----------------------------------------------------------------- EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION, AND AMORTIZATION 2,339,741 (80,017) 189,699 1,754 2,451,177 ----------------------------------------------------------------- Margin % 28.2% (394.9%) 6.5% (4.2%) 21.8% DEPRECIATION AND AMORTIZATION: Depreciation and amortization 738,663 3,829 33,057 - 775,549 Other regulatory charges (credits) 51,998 - - - 51,998 ----------------------------------------------------------------- Total 790,661 3,829 33,057 - 827,547 ----------------------------------------------------------------- OPERATING INCOME (LOSS) 1,549,080 (83,846) 156,642 1,754 1,623,630 ----------------------------------------------------------------- Margin % 18.6% (413.8%) 5.3% (4.2%) 14.5% OTHER INCOME (DEDUCTIONS): Allowance for equity funds used during 27,873 - - - 27,873 construction Gain/(loss) on sale of assets - net 2,636 - - - 2,636 Interest and dividend income 74,879 62,368 56,997 (27,829) 166,415 Equity in earnings of unconsolidated equity affiliates 2 - 95,543 - 95,545 Miscellaneous - net (31,543) 2,095 42,002 (1,754) 10,800 ----------------------------------------------------------------- Total 73,847 64,463 194,542 (29,583) 303,269 ----------------------------------------------------------------- INTEREST AND OTHER CHARGES: Interest on long-term debt 482,156 - 22,498 - 504,654 Other interest - net 59,029 31,716 78,366 (27,829) 141,283 Distributions on preferred securities 18,838 - - - 18,838 of subsidiaries Allowance for borrowed funds used (21,567) - - - (21,567) during construction ----------------------------------------------------------------- Total 538,456 31,716 100,865 (27,829) 643,208 ----------------------------------------------------------------- INCOME (LOSS) BEFORE INCOME TAXES 1,084,471 (51,099) 250,319 - 1,283,691 INCOME TAXES 444,902 (23,054) 98,657 - 520,505 ----------------------------------------------------------------- INCOME (LOSS) BEFORE CUMULATIVE EFFECT OF ACCOUNTING CHANGE 639,569 (28,045) 151,662 - 763,186 CUMULATIVE EFFECT OF ACCOUNTING CHANGE (net of taxes) - - - - - ----------------------------------------------------------------- CONSOLIDATED NET INCOME (LOSS) 639,569 (28,045) 151,662 - 763,186 PREFERRED DIVIDEND REQUIREMENTS OF SUBSIDIARIES AND OTHER 26,883 - - - 26,883 ----------------------------------------------------------------- EARNINGS (LOSS) APPLICABLE TO COMMON STOCK $ 612,686 $ (28,045) $ 151,662 $ - $736,303 ================================================================= Margin % 7.4% (138.4%) 5.2% - 6.6% EARNINGS (LOSS) PER AVERAGE COMMON SHARE: BASIC $2.78 ($0.13) $0.69 $3.34 DILUTED $2.73 ($0.13) $0.68 $3.28 AVERAGE NUMBER OF COMMON SHARES OUTSTANDING: BASIC 220,696,148 DILUTED 224,508,672 *Totals may not foot due to rounding.
Entergy Corporation Consolidating Income Statement Twelve Months Ended June 31, 2002 vs. 2001 Increase/(Decrease) (Dollars in thousands) (Unaudited) U.S. Parent & Competitive Eliminations Consolidated Utilities Other Businesses OPERATING REVENUES: Domestic electric $(1,605,651) $ - $ - $ 9,361 $(1,596,290) Natural gas (116,181) - - - (116,181) Competitive businesses - 11,447 (1,130,415) 25,155 (1,093,813) ---------- -------- ---------- ------------ ---------- Total (1,721,832) 11,447 (1,130,415) 34,516 (2,806,284) OPERATING EXPENSES: Operating and Maintenance: - - Fuel, fuel related expenses, and gas purchased for resale (993,982) - (371,411) 739 (1,364,655) Purchased power (342,677) 468 (1,271,303) 27,582 (1,585,930) ---------- -------- ---------- ------------ ---------- Gross Margin (385,173) 10,979 512,300 6,195 144,301 Margin % 7.6% (1.5%) 43.2% (1.3%) 16.5% Nuclear refueling outage expenses (9,574) - 32,700 - 23,126 Provision for turbine commitments, asset impairments and restructuring charges - - 419,542 - 419,542 Other operation and maintenance 190,799 (7,945) 284,486 6,454 473,794 Decommissioning (38,406) - - - (38,406) Taxes other than income taxes (33,352) 84 26,248 - (7,020) ---------- -------- ---------- ------------ ---------- Total (1,227,192) (7,393) (879,739) 34,775 (2,079,549) ---------- -------- ---------- ------------ ---------- EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION, AND AMORTIZATION (494,640) 18,840 (250,676) (259) (726,735) ---------- -------- ---------- ------------ ---------- Margin % (0.1%) 202.0% (9.8%) (16.7%) (1.4%) DEPRECIATION AND AMORTIZATION: - Depreciation and amortization (56,323) 1,345 25,011 - (29,967) Other regulatory charges (credits) (254,289) - - - (254,289) ---------- -------- ---------- ------------ ---------- Total (310,612) 1,345 25,011 - (284,256) ---------- -------- ---------- ------------ ---------- OPERATING INCOME (LOSS) (184,028) 17,495 (275,687) (259) (442,479) ---------- -------- ---------- ------------ ---------- Margin % 2.1% 204.6% (11.9%) (16.7%) (0.4%) OTHER INCOME (DEDUCTIONS): Allowance for equity funds used during construction 1,754 - - - 1,755 Gain/(loss) on sale of assets - net 300 47 3,721 - 4,069 Interest and dividend income (19,132) (34,730) 15,798 1,619 (36,445) Equity in earnings of unconsolidated equity affiliates (2) - 77,002 - 77,000 Miscellaneous - net (1,352) 2,819 (49,530) 259 (47,803) ---------- -------- ---------- ------------ ---------- Total (18,431) (31,863) 46,991 1,878 (1,424) ---------- -------- ---------- ------------ ---------- INTEREST AND OTHER CHARGES: Interest on long-term debt (36,481) - 61,964 - 25,482 Other interest - net 31,396 5,154 (20,741) 1,619 17,427 Distributions on preferred securities of subsidiaries - - - - - Allowance for borrowed funds used during construction (2,351) - - - (2,351) ---------- -------- ---------- ------------ ---------- Total (7,437) 5,154 41,222 1,619 40,558 ---------- -------- ---------- ------------ ---------- INCOME (LOSS) BEFORE INCOME TAXES (195,022) (19,522) (269,918) 1 (484,462) INCOME TAXES (143,439) 19,663 (92,673) - (216,449) ---------- -------- ---------- ------------ ---------- INCOME (LOSS) BEFORE CUMULATIVE EFFECT OF ACCOUNTING CHANGE (51,583) (39,185) (177,245) - (268,014) CUMULATIVE EFFECT OF ACCOUNTING CHANGE (net of taxes) - - 23,482 - 23,482 ---------- -------- ---------- ------------ ---------- CONSOLIDATED NET INCOME (LOSS) (51,583) (39,185) (153,763) - (244,532) PREFERRED DIVIDEND REQUIREMENTS OF SUBSIDIARIES AND OTHER (4,092) - - - (4,092) ---------- -------- ---------- ------------ ---------- EARNINGS (LOSS) APPLICABLE TO COMMON STOCK $ (47,491) $ (39,185) $ (153,763) $ - $(240,440) ========== ========= ========== ============ ========== Margin % 1.2% (73.6%) (5.3%) - (0.7%) EARNINGS (LOSS) PER AVERAGE COMMON SHARE: BASIC ($0.24) ($0.17) ($0.70) ($1.11) DILUTED ($0.23) ($0.17) ($0.69) ($1.09) *Totals may not foot due to rounding.
Entergy Corporation Consolidated Cash Flow Statement Year to Date June 31, 2002 vs. 2001 (Dollars in thousands) (Unaudited) 2002 2001 Variance OPERATING ACTIVITIES Consolidated net income $174,601 $406,454 ($231,853) Noncash items included in net income: Reserve for regulatory adjustments 12,684 50,533 (37,849) Other regulatory charges (credits) - net (169,082) 12,699 (181,781) Depreciation, amortization, and decommissioning 427,390 404,252 23,138 Deferred income taxes and investment tax credits (171,328) (6,673) (164,655) Allowance for equity funds used during construction (15,004) (11,587) (3,417) (Gain) loss on sale of assets - net (1,674) (1,344) (330) Equity in undistributed earnings of subsidiaries and unconsolidated affiliates (92,804) (95,543) 2,739 Provision for turbine commitments, asset impairments and restructuring charges 419,542 - 419,542 Changes in working capital: Receivables (139,808) 55,382 (195,190) Fuel inventory (7,332) (19,701) 12,369 Accounts payable (9,974) (433,769) 423,795 Taxes accrued 255,629 230,308 25,321 Interest accrued (31,416) (2,697) (28,719) Deferred fuel 549 217,152 (216,603) Other working capital accounts (43,475) (115,947) 72,472 Provision for estimated losses and reserves (8,576) (10,890) 2,314 Changes in other regulatory assets 186,824 (139,361) 326,185 Other 16,237 61,431 (45,194) -------- -------- -------- Net cash flow provided by operating activities 802,983 600,699 202,284 -------- -------- -------- INVESTING ACTIVITIES Construction/capital expenditures (736,670) (583,782) (152,888) Allowance for equity funds used during construction 15,004 11,587 3,417 Nuclear fuel purchases (161,090) (97,126) (63,964) Proceeds from sale/leaseback of nuclear fuel 132,472 60,632 71,840 Proceeds from sale of businesses 147,115 14,000 133,115 Investment in other nonregulated/nonutility properties (19,057) 17,515 (36,572) Decrease (increase) in other investments 39,460 (621,801) 661 261 Changes in other temporary investments - net 150,000 - 150,000 Decommissioning trust contributions and realized change in trust assets (27,894) (38,842) 10,948 Other regulatory investments (29,755) (56,722) 29,967 Other (2,690) 52,580 (55,270) -------- -------- -------- Net cash flow used in investing activities (493,105) (1,241,959) 748,854 -------- -------- -------- FINANCING ACTIVITIES Proceeds from the issuance of: Long-term debt 239,431 90,382 149,049 Common stock 112,705 59,304 53,401 Retirement of: Long-term debt (910,908) (126,156) (784,752) Repurchase of common stock - (7,813) 7,813 Redemption of preferred stock (1,403) (4,574) 3,171 Changes in short-term borrowings - net 394,333 95,000 299,333 Dividends paid: Common stock (147,328) (134,760) (12,568) Preferred stock (11,873) (11,214) (659) -------- -------- -------- Net cash flow used in financing activities (325,043) (39,831) (285,212) -------- -------- -------- Effect of exchange rates on cash and cash equivalents (5,748) (2,638) (3,110) -------- -------- -------- Net increase (decrease) in cash and cash equivalents (20,913) (683,729) 662,816 Cash and cash equivalents at beginning of period 751,573 1,382,424 (630,851) -------- ---------- --------- Cash and cash equivalents at end of period $730,660 $ 698,695 $ 31,965 ======== ========== =========