EX-99 3 a10405992.htm

Entergy
639 Loyola Avenue
New Orleans, LA  70113

News
Release

Date:

April 25, 2005

For Release:

Immediately

Contact:

Yolanda Pollard (News Media)
(504) 576-4238
ypollar@entergy.com

Michele Lopiccolo (Investor Relations)
(504) 576-4879
mlopicc@entergy.com

Exhibit 99.2

Entergy Reports First Quarter Earnings

New Orleans, La. - Entergy Corporation (NYSE:ETR) today reported first quarter 2005 as-reported and operational earnings of $172.0 million, or 79 cents per share. This compares to as-reported earnings of $207.2 million, or 88 cents per share, and operational earnings of $192.0 million, or 81 cents per share, in the first quarter 2004. As-reported earnings in the prior period included the earnings contribution from Entergy-Koch, LP's trading and gas pipeline businesses that were sold in fourth quarter 2004.

"Solid performance at Entergy Nuclear helped to offset Utility results dampened by lower residential usage," said J. Wayne Leonard, Entergy's chief executive officer. "The degree of success we are able to accomplish on our regulatory agenda at both the state and federal level in the coming months will be critical to our ability to achieve our financial objectives."

Entergy Corporation Consolidated Earnings - Reconciliation of GAAP* to non-GAAP Measures

First Quarter 2005 vs. 2004

(Per share in U.S. $)

First Quarter

2005

2004

$ Change

Operational Earnings

  Utility, Parent & Other

0.42

0.55

(0.13)

  Entergy Nuclear

0.36

0.29

0.07

  Energy Commodity Services

0.01

(0.03)

0.04

0.79

0.81

(0.02)

Special Items

-

0.07(a)

(0.07)

As-Reported Earnings

0.79

0.88

(0.09)

*GAAP refers to United States generally accepted accounting principles.

(a) Operational earnings for first quarter 2004 were originally reported as $0.88 per share. Following the sales of Entergy-Koch, LP's trading and pipeline businesses, Entergy began treating earnings from Entergy-Koch as a special item, which revises the previously reported operational earnings for quarterly comparisons.

Operational Earnings Highlights for First Quarter 2005

    • Utility, Parent & Other operational results decreased due to lower residential customer usage and higher operation and maintenance expenses.
    • Entergy Nuclear results increased over the same period last year due to higher contract pricing and a reduction in the decommissioning liability, partially offset by lower generation available as a result of a planned refueling outage that commenced during first quarter 2005.
    • Entergy's non-nuclear wholesale assets business showed improved results due to enhanced operations and proceeds from sulfur dioxide allowances sold.

Other Quarterly Highlights
    • Entergy reached agreement for the purchase of the Attala power plant, a 480-megawatt gas unit in Mississippi.
    • Entergy Gulf States - Louisiana achieved a global settlement that resolves 12 open dockets and establishes a formula rate plan.
    • The Federal Energy Regulatory Commission issued a Declaratory Order approving Entergy's proposal, with some modifications, for an independent transmission coordinator.

Utility, Parent & Other

In first quarter 2005, Utility, Parent & Other earned $91.8 million, or 42 cents per share, on an as-reported basis, compared to $128.5 million, or 55 cents per share, in first quarter 2004. Operational results in each period equaled as-reported results.

First quarter 2005 results reflect 1) a decline in net revenue due in part to lower unbilled revenues and 2) higher operation and maintenance expense due to planned outages at fossil generation plants during first quarter 2005, as well as higher employee benefits expense and increased depreciation expense. Unbilled revenues reflect the change in estimate, from the previous quarter, of sales late in the period for customers whose actual usage has not yet been billed.

Megawatt-hour sales in the residential sector in first quarter 2005, on a weather-adjusted basis, were down one percent, compared to first quarter 2004. Commercial and governmental sales, after adjusting for weather, were up nearly two percent. Industrial sales experienced an increase of one percent in first quarter 2005, compared to the same quarter last year, with usage by pipeline and chemical customers leading the growth.

Entergy Nuclear

Entergy Nuclear earned $78.0 million, or 36 cents per share, on both as-reported and operational bases in first quarter 2005. This compares to as-reported and operational earnings of $68.8 million, or 29 cents per share, in first quarter 2004. The increase in earnings in first quarter 2005 was due primarily to higher contract pricing and a reduction in the decommissioning liability. This increase was partially offset by lower generation resulting from a planned refueling outage at the Indian Point 3 plant that commenced in first quarter 2005 compared to no refueling outages in first quarter 2004.

Energy Commodity Services

Energy Commodity Services results in first quarter 2005 include only earnings from Entergy's non-nuclear wholesale assets business. Energy Commodity Services as-reported results in first quarter 2004 included earnings from both the non-nuclear wholesale assets business and Entergy-Koch, LP.

As-reported results for Energy Commodity Services in first quarter 2005 were $2.3 million, or one cent per share, compared to $9.8 million, or four cents per share, in first quarter 2004. The lower as-reported results reflect the absence of any earnings from Entergy-Koch, LP in 2005, due to the sales of Entergy-Koch's trading and pipeline businesses in late 2004. Operational results for Energy Commodity Services were $2.3 million, or one cent per share, in first quarter 2005 compared to a loss of $5.3 million, or three cents per share, one year ago reflecting primarily improved operations and the sale of SO2 allowances.

Outlook

Entergy affirmed as-reported and operational earnings in the lower end of the range of $4.60 to $4.85 per share for full year 2005.

Entergy Corporation is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, and it is the second-largest nuclear generator in the United States. Entergy delivers electricity to 2.7 million utility customers in Arkansas, Louisiana, Mississippi, and Texas. Entergy has annual revenues of more than $10 billion and approximately 14,000 employees.

-30-

Entergy's online address is www.entergy.com

In this release and from time to time, Entergy makes statements concerning its expectations, beliefs, plans, objectives, goals, strategies, and future events or performance. Such statements are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Although Entergy believes that these forward-looking statements and the underlying assumptions are reasonable, it cannot provide assurance that they will prove correct. Except to the extent required by the federal securities laws, Entergy undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Forward-looking statements involve a number of risks and uncertainties, and there are factors that could cause actual results to differ materially from those expressed or implied in the statements. Some of those factors include, but are not limited to: resolution of pending and future rate cases and other proceedings at local and federal regulatory agencies, Entergy's ability to manage its operation and maintenance costs, the performance of Entergy's generating plants, and particularly the capacity factor at its nuclear generating facilities, prices for power generated by Entergy's unregulated generating facilities, and the prices and availability of power Entergy must purchase for its utility customers, uncertainty regarding establishment of permanent sites for spent nuclear fuel storage and disposal, Entergy's ability to develop and execute on a point of view regarding prices of electricity, natural gas, and other energy-related commodities, changes in the financial markets, particularly those affecting the availability of capital and Entergy's ability to refinance existing debt, execute its share repurchase program, and fund investments and acquisitions, actions of rating agencies, including changes in the ratings of debt and preferred stock, Entergy's ability to purchase and sell assets at attractive prices and on other attractive terms, changes in utility regulation and in regulation of the nuclear industry, the success of Entergy's strategies to reduce current tax payments, and the effects of litigation and weather.

 

Appendix A provides a reconciliation of GAAP as-reported earnings to non-GAAP operational earnings.

Appendix A: Consolidated Earnings - Reconciliation of GAAP to Non-GAAP Measures
First Quarter 2005 vs. 2004

(Per share in U.S. $)

First Quarter

2005

2004

Change

As-Reported

Utility, Parent & Other

0.42

0.55

(0.13)

Entergy Nuclear

0.36

0.29

0.07

Energy Commodity Services

  Non-nuclear wholesale assets

0.01

(0.03)

0.04

  Entergy-Koch Trading

-

0.03

(0.03)

  Gulf South Pipeline

-

0.04

(0.04)

     Total Energy Commodity Services

0.01

0.04

(0.03)

Consolidated As-Reported Earnings

0.79

0.88

(0.09)

Less Special Items

Utility, Parent & Other

-

-

-

Entergy Nuclear

-

-

-

Energy Commodity Services

  Non-nuclear wholesale assets

-

-

-

  Entergy-Koch Trading

-

0.03

(0.03)

  Gulf South Pipeline

-

0.04

(0.04)

     Total Energy Commodity Services

-

0.07

(0.07)

Consolidated Special Items

-

0.07

(0.07)

Operational

Utility, Parent & Other

0.42

0.55

(0.13)

Entergy Nuclear

0.36

0.29

0.07

Energy Commodity Services

  Non-nuclear wholesale assets

0.01

(0.03)

0.04

  Entergy-Koch Trading

-

-

-

  Gulf South Pipeline

-

-

-

     Total Energy Commodity Services

0.01

(0.03)

0.04

Consolidated Operational Earnings

0.79

0.81

(0.02)

 

 

Entergy Corporation

Consolidated Income Statement

Three Months Ended March 31

(in thousands)

2005

2004

% Inc/(Dec)

(unaudited)

Operating Revenues:

  Domestic electric

$1,744,383 

$1,701,327 

2.5 

  Natural gas

86,950 

83,816 

3.7 

  Competitive businesses

492,081 

466,406 

5.5 

     Total

2,323,414 

2,251,549 

 

3.2 

Operating Expenses:

  Operation and maintenance:

    Fuel, fuel-related expenses, and gas purchased for resale

580,082 

550,127 

5.4 

    Purchased power

499,778 

449,520 

11.2 

    Nuclear refueling outage expenses

39,810 

41,607 

(4.3)

    Other operation and maintenance

534,666 

501,252 

6.7 

  Decommissioning

36,998 

38,347 

(3.5)

  Taxes other than income taxes

102,989 

97,303 

5.8 

  Depreciation and amortization

224,177 

210,648 

6.4 

  Other regulatory (credits) - net

(16,765)

(16,089)

4.2 

     Total

2,001,735 

1,872,715 

6.9 

Operating Income

321,679 

378,834 

(15.1)

Other Income:

  Allowance for equity funds used during construction

12,884 

7,463 

72.6 

  Interest and dividend income

30,890 

28,251 

9.3 

  Equity in earnings of unconsolidated equity affiliates

(2,193)

19,819 

(111.1)

  Miscellaneous - net

25,802 

5,167 

399.4 

     Total

67,383 

60,700 

11.0 

Interest and Other Charges:

  Interest on long-term debt

110,752 

119,460 

(7.3)

  Other interest - net

12,164 

6,215 

95.7 

  Allowance for borrowed funds used during construction

(7,509)

(5,154)

45.7 

     Total

115,407 

120,521 

(4.2)

Income Before Income Taxes

273,655 

319,013 

(14.2)

Income Taxes

95,035 

105,997 

(10.3)

Consolidated Net Income

178,620 

213,016 

(16.1)

Preferred dividend requirements of subsidiaries and other

6,624 

5,855 

13.1 

Earnings Applicable to Common Stock

$171,996 

$207,161 

(17.0)

Earnings Per Average Common Share:

  Basic

$0.80 

$0.90 

(11.1)

  Diluted

$0.79 

$0.88 

(10.2)

Average Number of Common Shares Outstanding:

  Basic

214,128,023 

230,264,638 

  Diluted

218,633,202 

234,978,625 

 

Entergy Corporation

Utility Electric Energy Sales & Customers

Three Months Ended March 31

2005

2004

%
Change

%
Weather-Adjusted

(Millions of kwh)

Electric Energy Sales:

Residential

7,570

7,726

(2.0)

(1.1)

Commercial

5,990

5,887

1.7

1.8

Governmental

609

600

1.5

1.5

Industrial

9,596

9,490

1.1

1.1

  Total to Ultimate Customers

23,765

23,703

0.3

0.6

Wholesale

1,732

2,418

(28.4)

  Total Sales

25,497

26,121

(2.4)

As of March 31

2005

2004

%
Change

Electric Customers (Year to date average):

Residential

2,292,177

2,276,034

0.7

Commercial

317,348

313,064

1.4

Governmental

14,936

14,682

1.7

Industrial

40,598

41,262

(1.6)

  Total Ultimate Customers

2,665,059

2,645,042

0.8

Wholesale

42

42

-

  Total Customers

2,665,101

2,645,084

0.8