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SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K Pursuant to Section 13 or 15(d) of the Date of Report (Date earliest event reported) April 28, 2006 Commission Registrant, State of Incorporation, I.R.S. Employer 1-11299 ENTERGY CORPORATION 72-1229752 0-5807 ENTERGY NEW ORLEANS, INC. 72-0273040 Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2.): [ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Item 2.02. Results of Operations and Financial Condition. (Entergy Corporation) On May 2, 2006, Entergy Corporation ("Entergy") issued two public announcements, which are attached as exhibits 99.1 and 99.2 hereto (the "Earnings Releases") and incorporated herein by reference, announcing its results of operations and financial condition for the first quarter 2006. The information in Exhibits 99.1 and 99.2 are being furnished pursuant to this Item 2.02. Item 2.03. Creation of a Direct Financial Obligation. (Entergy New Orleans) As more fully-described in its report on Form 8-K filed on September 28, 2005 and in its report on Form 10-K for the fiscal year ended December 31, 2005, Entergy New Orleans, as borrower, has entered into the DIP Credit Agreement, a debtor-in-possession credit facility, with Entergy Corporation as lender. On April 28, 2006, Entergy New Orleans repaid $70 million under the DIP Credit Agreement, and as of that date $22 million in borrowings remain outstanding under the DIP Credit Agreement. The source of the funds used for the repayment was primarily an income tax refund received for prior tax years under the special provisions of the Gulf Opportunity Zone Act of 2005, as described in Note 3 to the financial statements in Entergy New Orleans' report on Form 10-K for the fiscal year ended December 31, 2005. Item 7.01. Regulation FD Disclosure On May 2, 2006, Entergy issued the Earnings Releases, which are attached as exhibits 99.1 and 99.2 hereto and incorporated herein by reference, announcing its results of operations and financial condition for the first quarter 2006. The information in Exhibits 99.1 and 99.2 are being furnished pursuant to this Item 7.01. Item 9.01. Financial Statements and Exhibits (d) Exhibits. Exhibit No. Description 99.1 Release, dated May 2, 2006, issued by Entergy. 99.2 Release, dated May 2, 2006, issued by Entergy. 99.3 Statement on Uses and Usefulness of Non-GAAP Information
CURRENT REPORT
Securities Exchange Act of 1934
File Number
Address and Telephone Number
Identification No.
(a Delaware corporation)
639 Loyola Avenue
New Orleans, Louisiana 70113
Telephone (504) 576-4000
(a Louisiana corporation)
1600 Perdido Street, Building 529
New Orleans, Louisiana 70112
Telephone (504) 670-3620
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrants have duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Entergy Corporation
Entergy New Orleans, Inc.
By: /s/ Nathan E. Langston
Nathan E. Langston
Senior Vice President and
Chief Accounting Officer
Dated: May 2, 2006
|
For further information: Phone 504/576-4879, Fax 504/576-2897 mlopicc@entergy.com |
INVESTOR NEWS
Exhibit 99.1
May 2, 2006
ENTERGY REPORTS FIRST QUARTER EARNINGS
NEW ORLEANS - Entergy Corporation reported first quarter 2006 earnings of $0.92 per share on an as-reported basis and $0.90 per share on an operational basis, as shown in Table 1 below. A more detailed discussion of quarterly results begins on page 2 of this release.
Table 1: Consolidated Earnings - Reconciliation of GAAP to Non-GAAP Measures |
|||
First Quarter 2006 vs. 2005 |
|||
(Per share in U.S. $) |
|||
2006 |
2005 |
Change |
|
As-Reported Earnings |
0.92 |
0.79 |
0.13 |
Less Special Items |
0.02 |
(0.01) |
0.03 |
Operational Earnings |
0.90 |
0.80 |
0.10 |
Weather Impact |
(0.06) |
(0.01) |
(0.05) |
Operational Earnings Highlights for First Quarter 2006
"Entergy continues to work to rebound from the devastation of last year's storms," said J. Wayne Leonard, Entergy's chief executive officer. "Constructive progress is evident across a range of operational and regulatory efforts, with more work to be done as we stay focused on delivering high quality service to our customers and strengthening our financial position and results of operations."
Table of Contents | Page | |
I. | Consolidated Results | 2 |
II. | Utility, Parent & Other Results | 3 |
III. | Competitive Businesses Results Entergy Nuclear Non-Nuclear Wholesale Assets |
4 5 6 |
IV. | Earnings Guidance | 6 |
V. | Forward-Looking Financial Data and Aspirations | 8 |
VI. | Appendices A. Entergy New Orleans, Inc. Bankruptcy B. Variance Analysis and Special Items C. Regulatory Summary D. Financial Performance Measures and Historical Performance Measures E. Planned Capital Expenditures F. Debt Maturities G. Definitions H. GAAP to Non-GAAP Reconciliations |
10 11 13 15 16 17 17 19 |
VII. | Financial Statements | 22 |
Other Highlights:
Entergy will host a teleconference to discuss this release at 10:00 a.m. CDT on Tuesday, May 2, 2006, with access by telephone, 719-457-2621, confirmation code 6287406. The call and presentation slides can also be accessed via Entergy's web site at
www.entergy.com. A replay of the teleconference will be available for the following seven days by dialing 719-457-0820, confirmation code 6287406. The replay will also be available on Entergy's web site at www.entergy.com.I. Consolidated Results
Consolidated Earnings
Table 2 provides a comparative summary of consolidated earnings per share for first quarter 2006 versus 2005, including a reconciliation of GAAP as-reported earnings to non-GAAP operational earnings. Utility, Parent & Other achieved higher earnings while still experiencing the effects of two hurricanes while Entergy Nuclear earnings increased as a result of higher generation due to fewer outage days and uprates, as well as higher energy pricing. Also, Entergy's non-nuclear wholesale assets business had modestly lower results due to the absence of any sales of SO2 allowances in the current period.
Table 2: Consolidated Earnings - Reconciliation of GAAP to Non-GAAP Measures |
|||
(Per share in U.S. $) |
|||
First Quarter |
|||
2006 |
2005 |
Change |
|
As-Reported |
|||
Utility, Parent & Other |
0.54 |
0.42 |
0.12 |
Entergy Nuclear |
0.39 |
0.36 |
0.03 |
Non-nuclear wholesale assets |
(0.01) |
0.01 |
(0.02) |
Consolidated As-Reported Earnings |
0.92 |
0.79 |
0.13 |
Less Special Items |
|||
Utility, Parent & Other |
0.02 |
(0.01) |
0.03 |
Entergy Nuclear |
- |
- |
- |
Non-nuclear wholesale assets |
- |
- |
- |
Consolidated Special Items |
0.02 |
(0.01) |
0.03 |
Operational |
|||
Utility, Parent & Other |
0.52 |
0.43 |
0.09 |
Entergy Nuclear |
0.39 |
0.36 |
0.03 |
Non-nuclear wholesale assets |
(0.01) |
0.01 |
(0.02) |
Consolidated Operational Earnings |
0.90 |
0.80 |
0.10 |
Weather Impact |
(0.06) |
(0.01) |
(0.05) |
Detailed earnings variance analysis is included in appendix B-1 to this release. In addition, appendix B-2 provides details of special items shown in Table 2 above.
Consolidated Net Cash Flow Provided by Operating Activities
Entergy's net cash flow provided by operating activities in first quarter 2006 was $1.0 billion compared to $0.5 billion in first quarter 2005. The increase was due primarily to:
Table 3 provides the components of net cash flow provided by operating activities contributed by each business with quarter-to-quarter comparisons.
Table 3: Consolidated Net Cash Flow Provided by Operating Activities |
|||
First Quarter 2006 vs. 2005 |
|||
(U.S. $ in millions) |
|||
First Quarter |
|||
2006 |
2005 |
Change |
|
Utility, Parent & Other |
821 |
371 |
450 |
Entergy Nuclear |
213 |
131 |
82 |
Non-nuclear wholesale assets |
(21) |
(5) |
(16) |
Total Net Cash Flow Provided by Operating Activities |
1,013 |
497 |
516 |
II. Utility, Parent & Other Results
In first quarter 2006, Utility, Parent & Other had earnings of $0.54 per share on an as-reported basis and $0.52 per share on an operational basis compared to $0.42 per share on an as-reported basis and $0.43 per share in operational earnings in first quarter 2005. As-reported 2006 earnings reflect $0.02 per share in special items while there was $(0.01) per share in special items in 2005. Special items in first quarter 2006 include earnings at Entergy New Orleans, Inc. (ENOI) of $0.03 per share. Both first quarter 2006 and 2005 special items include the operating loss from the competitive retail business in Texas, which was $(0.01) per share in each period. Entergy sold its customer base in the retail business in April 2006.
ENOI results for first quarter 2006 are being treated as a special item. As such, its results are included in Utility, Parent & Other as-reported earnings but are excluded from operational earnings. For first quarter 2005 Utility, Parent & Other results include ENOI on both on an as-reported and operational bases. Also, ENOI is de-consolidated for both first quarter 2006 and first quarter 2005 reporting purposes as explained in Appendix A of this release. Accordingly, revenue and expense explanations that follow exclude the revenues and expenses of ENOI.
Earnings for Utility, Parent & Other in first quarter 2006, exclusive of ENOI, reflect:
Partially offsetting the above factors were higher operation and maintenance expense, higher interest expense realized in connection with borrowings to pay for storm restoration costs for Hurricanes Katrina and Rita, and milder-than-normal weather. The higher operation and maintenance expense resulted from increased storm reserves and costs associated with Perryville and Attala which were expected and are being recovered in rates. Also contributing to the increase in operation and maintenance expense was higher nuclear expense associated with an unplanned outage.
ENOI results for first quarter 2006 reflect earnings of $0.03 per share. In first quarter 2005, ENOI also earned $0.03 per share. First quarter 2005 results reflect a normal operating environment for ENOI where results were primarily driven by margin on sales to retail customers. However, as a result of Hurricane Katrina, and the subsequent filing by ENOI for reorganization under Chapter 11 of the U.S. Bankruptcy Code, first quarter 2006 results reflect the ongoing impact of the hurricane as well as certain actions taken by ENOI specific to its continuing effort to recover financially from this storm. Results for the current period include significantly lower revenues from customers due to extended outages and customer losses partially offset by lower operation and maintenance expense due to the continued focus on storm restoration rather than routine operating activities, and ongoing cost reduction initiatives. In addition, net wholesale revenue is materially higher due to an increas e in energy available for sales for resale due to the lower retail usage caused by Hurricane Katrina. Finally, current results reflect lower interest expense due to the cessation of interest accruals on first mortgage bonds as a result of an agreement among bondholders and ENOI in the Chapter 11 bankruptcy proceeding.
Electricity usage excluding ENOI, in gigawatt-hour sales by customer segment, is included in Table 4. Current quarter sales reflect the following:
The decline in the industrial sector in first quarter reflects the storm-related impact that was concentrated in the chemical and refining industries which currently make up more than 50 percent of Entergy's industrial sales. Two large industrial customers remain out of service, with one expected to return shortly and the second by the end of second quarter 2006. High gas prices have placed some strain on the chemical and paper sectors, but large scale disruptions have not been experienced to date.
Table 4 provides a comparative summary of the Utility's operational performance measures.
Table 4: Utility Operational Performance Measures excluding Entergy New Orleans |
||||
First Quarter 2006 vs. 2005 (see appendix G for definitions of measures) |
||||
First Quarter |
||||
2006 |
2005 |
% Change |
% Weather Adjusted |
|
GWh billed |
||||
Residential |
6,963 |
7,170 |
-2.9% |
2.3% |
Commercial and governmental |
5,916 |
5,854 |
1.1% |
2.0% |
Industrial |
9,053 |
9,452 |
-4.2% |
-4.2% |
Total Retail Sales |
21,932 |
22,476 |
-2.4% |
-0.5% |
Wholesale |
1,555 |
1,728 |
-10.0% |
|
Total Sales |
23,487 |
24,204 |
-3.0% |
|
O&M expense |
$16.12 |
$14.98 |
7.6% |
|
Number of retail customers (a) |
||||
Residential |
2,120,033 |
2,126,685 |
||
Commercial & governmental |
312,894 |
315,066 |
||
Industrial |
39,015 |
38,484 |
||
(a) Customer count data reflects estimates of customers in the hardest hit areas affected by Hurricane Katrina. Issues associated with temporary housing and resumption of service at permanent dwellings render precise counts difficult at this time.
Appendix C provides information on selected pending local and federal regulatory cases.
III. Competitive Businesses Results
Entergy's competitive businesses include Entergy Nuclear and Non-Nuclear Wholesale Assets. Table 5 provides a summary of Competitive Businesses' capacity and generation sold forward as of the end of the first quarter 2006.
Entergy Nuclear has sold 91%, 81%, and 59% of planned generation at average prices per megawatt-hour of $41, $45 and $50, for the remainder of 2006, 2007 and 2008, respectively. Non-Nuclear Wholesale Assets has contracted for 21%, 21% and 23% of its planned energy and capacity revenues at average prices per megawatt-hour of $25, $28 and $28, for the same periods.
Table 5: Competitive Businesses Capacity and Generation Sold Forward |
|||||
Remainder of 2006 through 2010 (see appendix G for definitions of measures) |
|||||
|
Remainder of 2006 |
2007 |
2008 |
2009 |
2010 |
Entergy Nuclear (EN) |
|||||
Energy |
|||||
Planned TWh of generation |
26 |
34 |
34 |
35 |
34 |
Percent of EN's planned generation sold forward (b) |
|||||
Unit-contingent |
34% |
32% |
27% |
21% |
12% |
Unit-contingent with availability guarantees |
53% |
47% |
32% |
13% |
5% |
Firm liquidated damages (LD) |
4% |
2% |
0% |
0% |
0% |
Total |
91% |
81% |
59% |
34% |
17% |
Average contract price per MWh (c) |
$41 |
$45 |
$50 |
$56 |
$46 |
Capacity |
|||||
Planned net MW in operation |
4,200 |
4,200 |
4,200 |
4,200 |
4,200 |
Percent of EN's capacity sold forward |
|||||
Bundled capacity and energy contracts |
12% |
12% |
12% |
12% |
12% |
Capacity contracts |
77% |
48% |
36% |
24% |
3% |
Total |
89% |
60% |
48% |
36% |
15% |
Average capacity contract price per kW per month |
$1.1 |
$1.1 |
$1.1 |
$1.0 |
$0.9 |
Blended Capacity and Energy Recap (based on revenues) |
|||||
Percent of EN's planned energy and capacity sold forward |
85% |
72% |
50% |
29% |
12% |
Average contract revenue per MWh (c) |
$42 |
$46 |
$51 |
$57 |
$46 |
Non-nuclear Wholesale Assets |
|||||
Capacity |
|||||
Net MW in operation |
1,578 |
1,578 |
1,578 |
1,578 |
1,578 |
Percent of ECS's capacity sold forward |
30% |
29% |
29% |
19% |
17% |
Energy |
|||||
Planned TWh of generation |
3 |
4 |
4 |
4 |
4 |
Percent of ECS's planned generation sold forward |
|||||
Unit-contingent |
5% |
6% |
6% |
6% |
6% |
Unit-contingent with availability guarantees |
35% |
32% |
34% |
27% |
29% |
Firm liquidated damages (LD) |
0% |
0% |
0% |
0% |
0% |
Total |
40% |
38% |
40% |
33% |
35% |
Blended Capacity and Energy Recap (based on revenues) |
|||||
Percent of ECS's planned energy and capacity sold forward |
21% |
21% |
23% |
15% |
16% |
Average contract revenue per MWh |
$25 |
$28 |
$28 |
$21 |
$20 |
|
|||||
|
Entergy Nuclear
Entergy Nuclear (EN) earned $0.39 per share on both as-reported and operational bases in first quarter 2006, compared to $0.36 in first quarter 2005. In first quarter 2006 EN had higher generation resulting from the combination of uprates and no planned refueling outage days compared to twenty days in first quarter 2005. In addition, higher pricing contributed to the improved results at EN. Partially offsetting the contributions of higher generation and improved pricing was higher operation and maintenance expense due to the absence of refueling outages in the current period. Operation and maintenance expense decreases during outages as resources working the outage are deferred and subsequently amortized into expense over the next 18-24 months.
Table 6 provides a comparative summary of EN's operational performance measures.
Table 6: Entergy Nuclear Operational Performance Measures |
|||
First Quarter 2006 vs. 2005 (see appendix G for definitions of measures) |
|||
First Quarter |
|||
2006 |
2005 |
% Change |
|
Net MW in operation (d) |
4,135 |
4,058 |
2% |
Average realized price per MWh |
$44.39 |
$41.56 |
7% |
Production cost per MWh |
$19.08 |
$18.71 |
2% |
Non-fuel O&M expense per MWh |
$19.74 |
(1)% |
|
Generation in GWh |
8,742 |
8,267 |
6% |
Capacity factor |
97% |
93% |
4% |
Refueling outage days: |
|||
Indian Point 3 (e) |
- |
20 |
|
(d) Vermont Yankee's 95 MW uprate was approved in early March 2006. Net MW in operation reflects power ascension as of end of first quarter 2006. (e) Table reflects the duration of refueling outages that occurred in first quarter 2005. For the Indian Point 3 plant, approximately 6 refueling outage days occurred in second quarter 2005. |
Non-Nuclear Wholesale Assets
Entergy's Non-Nuclear Wholesale Assets business realized a loss of $(0.01) per share on both an as-reported and operational bases in first quarter 2006. As-reported and operational results in first quarter 2005 were $0.01 per share and included the sale of SO
2 allowances while there were no such sales in the current period.IV. Earnings Guidance
Entergy is reaffirming as-reported earnings guidance for 2006 in the range of $4.78 to $5.08 per share and operational earnings guidance of $4.50 to $4.80 per share. Earnings guidance ranges exclude ENOI given the uncertainty that remains for this business as it works toward filing a plan of reorganization. During 2006, actual results for ENOI are being separately identified as a special item for earnings release purposes.
Guidance ranges for 2006 are detailed in Table 7 and are based on the following key assumptions which are unchanged from those identified when guidance was initially issued:
Utility, Parent & Other
Entergy Nuclear
Non-Nuclear Wholesale Assets
Special Items
Share Repurchase Program
The above assumptions assume no regulatory disallowances are ordered by retail regulators for $1.5 billion storm restoration costs ($0.8 billion capital, $0.7 billion regulatory assets). Any such disallowances would be shown as special items.
Earnings guidance details are provided in Table 7. This table demonstrates why 2006 results are expected to differ from 2005 based on the quantification of assumptions described above. For presentation simplicity purposes, year-over-year changes are shown as point estimates and are applied to 2005 actuals to compute the 2006 guidance midpoint. Because there is a range of possible outcomes associated with each earnings driver, a range is applied to the calculated guidance midpoints to produce Entergy's guidance ranges for as-reported and operational earnings excluding Entergy New Orleans.
Table 7: 2006 Earnings Per Share Guidance excluding Entergy New Orleans |
|||||
(Per share in U.S. $) |
|||||
|
|
2005 Earnings per Share |
Expected Change |
2006 |
2006 Guidance Range |
Utility, Parent & Other |
2005 Operational Earnings per Share |
3.03 |
|||
Adjustment to normalize weather |
(0.10) |
||||
Increased revenue due to non-storm rate actions and sales growth |
0.50 |
||||
Increased O&M expense |
(0.25) |
||||
Increased interest expense |
(0.10) |
||||
Other |
(0.03) |
||||
Subtotal |
3.03 |
0.02 |
3.05 |
||
Entergy Nuclear |
2005 Operational Earnings per Share |
1.32 |
|||
Higher contract and market energy pricing |
0.42 |
||||
Increased generation from uprates and fewer outages |
0.10 |
||||
Increased O&M expense |
(0.10) |
||||
Increased interest expense |
(0.05) |
||||
Increased depreciation and other |
(0.09) |
||||
Subtotal |
1.32 |
0.28 |
1.60 |
||
Non-Nuclear Wholesale Assets |
2005 Operational Earnings per Share |
0.05 |
|||
Reduced sales of emissions allowances |
(0.04) |
||||
Increased losses from non-nuclear wholesale assets |
(0.01) |
||||
Subtotal |
0.05 |
(0.05) |
0.00 |
||
Consolidated Operational |
|||||
2006 Operational Earnings per Share |
4.40 |
0.25 |
4.65 |
4.50 - 4.80 |
|
Consolidated As-Reported |
2005 As Reported Earnings per Share |
4.19 |
|||
Changes detailed above |
0.25 |
||||
Special items: |
|||||
2006 Gain on sale of Entergy-Koch, LP |
0.28 |
||||
2005 results from discontinued competitive |
0.21 |
||||
2006 As-Reported Earnings per Share |
4.19 |
0.74 |
4.93 |
4.78 - 5.08 |
Earnings guidance should be considered in association with earnings sensitivities as shown in Table 8. These sensitivities illustrate the estimated change in operational earnings resulting from changes in various revenue and expense drivers. Utility sales levels is expected to be the most significant driver of results in 2006 for Utility, Parent & Other due to normal growth in customer usage and the recovery of some portion of load impacted by hurricanes. At Entergy Nuclear, energy prices are expected to be the most significant driver of results in 2006, given the size of EN's unsold position. In 2005, Entergy modified its contracting strategy to provide the flexibility to retain a larger unsold position. This modification provides EN the opportunity to capture higher spot market prices. Increased volatility of expected results was considered as well. Estimated annual impacts shown in the Table 8 are intended to be indicative rather than precise guidance.
Table 8: Earnings Sensitivities excluding Entergy New Orleans |
|||
(Per share in U.S. $) |
|||
|
2006 Guidance Assumption |
|
Estimated Annual Impact (f) |
Utility, Parent & Other |
|||
Sales growth |
|
|
- - / + 0.03 - - / + 0.03 - / + 0.10 |
Extended outages for Entergy Louisiana customers |
31,000 customers of Entergy Louisiana |
10,000 return to service |
n/a / + 0.03 |
Rate base |
Stable rate base |
$100 million change in rate base |
- / + 0.02 |
Return on equity |
See Appendix C |
1% change in allowed ROE |
- / + 0.28 |
Interest expense |
Additional $550M average debt at 6% average interest rate |
$100M change in debt |
- / + 0.02 |
Entergy Nuclear |
|||
Capacity factor |
94% capacity factor |
1% change in capacity factor |
- / + 0.04 |
Energy price |
9% energy unsold at $83/MWh in 2006 |
$10/MWh change for unsold energy |
- / + 0.09 |
Non-fuel operation and maintenance expense |
$20.50/MWh non-fuel operation and maintenance expense |
$1 change per MWh |
- / + 0.10 |
Outage (lost revenue only) |
94% capacity factor, including refueling outages at Indian Point 2 and FitzPatrick |
1,000 MW plant for 10 days at average portfolio energy price of $41/MWh for sold and $83/MWh for unsold volumes in 2006 |
- 0.03 / n/a |
V. Forward-looking Financial Data and Aspirations
Entergy continues to focus on recovery and stability in the aftermath of hurricanes that severely affected its business operations in August and September of 2005. While these storms created issues that may affect near-term financial performance, the company's long-term aspirations remain in tact. Specifically, Entergy aspires to deliver average annual earnings per share growth of 5-6%, to achieve a 9% return on invested capital, and to continue to improve the company's overall credit quality over the long-term. The company's ability to achieve these aspirations over time will be based upon a combination of factors. These include, but are not limited to, intrinsic growth, the recovery of storm-related restoration costs, the return of customers and load to portions of the Entergy service territory that have been severely damaged and further impacted by new flood maps and more stringent building codes, and the amount of cash that is available for capital deployment in investments, share repurchases, dividends or debt retirement.
Table 9 provides details on Entergy's projected cash available for capital redeployment for the period 2006 through 2008 excluding Entergy New Orleans. Entergy expects to have $2.3 billion of cash available over this period for several potential uses: investments in new businesses or assets, repayment of debt or equity, or dividend increases. Net cash flow provided by operating activities shown in the table includes the recovery of fuel costs deferred in periods prior to 2006, and revenue enhancement realized at Entergy Nuclear by capturing opportunities through favorable market pricing. Cash flows from other storm recovery initiatives, such as insurance, regulatory rate relief, or funding through community development block grants, are not included because they are too preliminary or uncertain at this time. Sources of cash also include debt that Entergy believes it could issue in association with new investments while maintaining a net debt ratio of 50% or less. The amount of addition al debt could vary depending upon the type of new investment and the credit market environment. Uses of cash shown on the table reflect current estimates of storm restoration spending and share repurchases based on resumption of the $1.5 billion share repurchase program approved in 2004. The amount of repurchases may vary as a result of material changes in business results or capital spending or material new investment opportunities.
Table 9: Projected Cash Available for Capital Redeployment excluding Entergy New Orleans |
||
($ in billions) |
2006-2008 |
|
Net cash flow provided by operating activities |
7.3 |
|
Less: |
||
Net nuclear fuel purchases |
(0.4) |
|
Net change in decommissioning trust funds |
(0.4) |
|
Planned capital expenditures |
(3.6) |
|
Preferred dividends |
(0.1) |
|
Free cash flow |
2.8 |
|
Common dividends |
(1.5) |
|
Net share repurchases (includes repurchases under existing program net of equity units conversion and remaining sale proceeds) |
0.2 |
|
Additional debt capacity (net of maturities) |
0.8 |
|
Net Cash Available for New Investment, Debt or Equity Repayment, Dividend Increase |
2.3 |
|
Appendix E provides details on planned capital expenditures by business, and appendix F includes a summarized schedule of debt maturities.
VI. Appendices
Eight appendices are presented in this section as follows:
Appendix A provides information on the petition filed by Entergy New Orleans, Inc. for protection under Chapter 11 of the U.S. Bankruptcy Code as well as related activities subsequent to the initial filing.
Appendix A: Entergy New Orleans, Inc. Bankruptcy |
Bankruptcy Filing
To protect its franchise agreement with the City and ensure continued progress in restoring power and gas service to New Orleans after Hurricane Katrina, on September 23, 2005, Entergy New Orleans, Inc. (ENOI) filed a voluntary petition for reorganization under Chapter 11 of the U.S. Bankruptcy Code. Important decisions were rendered by the bankruptcy court in December 2005 when the court authorized the debtor-in-possession (DIP) financing (described below), approved the priming lien for DIP financing, and ordered that use of insurance proceeds would be determined by ENOI. Numerous motions have been filed with additional motions expected as the bankruptcy proceeding continues. The exclusivity period for filing a final plan of reorganization by ENOI was extended for a second time by the Bankruptcy court and is currently August 21, 2006, with solicitation of acceptances of the plan to be completed by October 18, 2006. ENOI must appear at status conferences on June 26, 2006 and Ju ly 26, 2006 to provide progress reports to the Bankruptcy court on the restructuring plan. For more information on documents filed in this proceeding go to www.entergy.com/investor_relations/enoi.aspx.
Debtor-in-Possession Financing
On September 26, 2005, ENOI, as borrower, and Entergy Corporation, as lender, entered into the DIP credit agreement, a debtor-in-possession credit facility to provide funding to ENOI during its business restoration efforts. On December 9, 2005, the bankruptcy court issued its final order approving the DIP Credit Agreement. The indenture trustee of ENOI's first mortgage bonds appealed the final order. Subsequent to the indenture trustee filing its notice of appeal, ENOI, Entergy Corporation, and the indenture trustee filed with the bankruptcy court a motion to approve a settlement among the parties. On March 29, 2006, the bankruptcy court approved the settlement, and the indenture trustee dismissed its appeal. The facility enables ENOI to request funding from Entergy Corporation, but the decision to lend money is at the sole discretion of Entergy Corporation.
Accounting
Entergy owns 100 percent of the common stock of ENOI and has, subject to the rules and requirements of Chapter 11 of the U.S. Bankruptcy Code, continued to supply operating management to ENOI. However, uncertainties surrounding the nature, timing and specifics of the bankruptcy proceedings caused Entergy to de-consolidate ENOI for financial reporting purposes beginning in third quarter 2005 with ENOI's financial results being recorded under the equity method of accounting. Under this methodology, earnings from ENOI are now reflected in Entergy's income statement as equity in the earnings of unconsolidated affiliates. Because Entergy owns all of the common stock of ENOI, this change has not impacted the amount of net income Entergy has recorded in the current period or any historical period but has resulted in ENOI's net income being presented in one line item rather than included in each individual income statement line item presented. Various line items of Entergy's conso lidated balance sheet and cash flow statement have been revised to reflect the impact of de-consolidating ENOI. In addition, the deconsolidation of ENOI's results is retroactive to January 1, 2005 and Entergy's comparative results now reflect ENOI results under the equity method of accounting.
Appendix B-1 provides details of first quarter 2006 vs. 2005 earnings variance analyses for "Utility, Parent & Other," "Competitive Businesses," and "Consolidated."
Appendix B-1: As-Reported Earnings Per Share Variance Analysis |
|||||||
First Quarter 2006 vs. 2005 |
|||||||
(Per share in U.S. $, sorted in consolidated |
|||||||
column, most to least favorable) |
Utility, |
Competitive |
|||||
Parent & Other |
Businesses |
Consolidated |
|||||
2005 earnings |
0.42 |
0.37 |
0.79 |
||||
Net revenue |
0.19 |
(g) |
0.13 |
(h) |
0.32 |
||
Interest and dividend income |
0.04 |
- |
0.04 |
||||
Depreciation/amortization expense |
0.03 |
- |
0.03 |
||||
Share repurchase effect |
0.02 |
0.01 |
0.03 |
||||
Nuclear refueling outage expense |
(0.01) |
- |
(0.01) |
||||
Preferred dividend requirements |
(0.01) |
- |
(0.01) |
||||
Taxes other than income taxes |
(0.02) |
(0.01) |
(0.03) |
||||
Interest expense and other charges |
(0.06) |
(i) |
0.01 |
(0.05) |
|||
Income taxes - other |
(0.06) |
(j) |
0.01 |
(0.05) |
|||
Other income (deductions) |
0.02 |
(0.09) |
(k) |
(0.07) |
|||
Other operation & maintenance expense |
(0.02) |
(0.05) |
(l) |
(0.07) |
|||
2006 earnings |
0.54 |
0.38 |
0.92 |
||||
Utility Net Revenue Variance Analysis 2006 vs. 2005 ($ EPS) |
|
First Quarter |
|
Weather |
(0.05) |
Sales growth/pricing |
0.09 |
Other |
0.15 |
Total |
0.19 |
Appendix B-2 lists special items by business with quarter-to-quarter and year-to-date comparisons. Amounts are shown on both earnings per share and net income bases. Special items are those events that are less routine, are related to prior periods, or are related to discontinued businesses. Special items are included in as-reported earnings per share consistent with generally accepted accounting principles (GAAP), but are excluded from operational earnings per share. As a result, operational earnings per share is considered a non-GAAP measure.
Appendix B-2: Special Items (shown as positive / (negative) impact on earnings) |
|||
First Quarter and 2006 vs. 2005 |
|||
(Per share in U.S. $) |
|||
First Quarter |
|||
2006 |
2005 |
Change |
|
Utility, Parent & Other |
|||
ENOI results (m) |
0.03 |
- |
0.03 |
Retail business discontinued operations |
(0.01) |
(0.01) |
- |
Total Utility, Parent & Other |
0.02 |
(0.01) |
0.03 |
Competitive Businesses |
|||
Entergy Nuclear |
- |
- |
- |
Non-nuclear wholesale assets |
- |
- |
- |
Total Competitive Businesses |
- |
- |
- |
Total Special Items |
0.02 |
(0.01) |
0.03 |
(U.S. $ in millions) |
|||
First Quarter |
|||
2006 |
2005 |
Change |
|
Utility, Parent & Other |
|||
ENOI results |
5.6 |
- |
5.6 |
Retail business discontinued operations |
(2.2) |
(1.4) |
(0.8) |
Total Utility, Parent & Other |
3.4 |
(1.4) |
4.8 |
Competitive Businesses |
|||
Entergy Nuclear |
- |
- |
- |
Non-nuclear wholesale assets |
- |
- |
- |
Total Competitive Businesses |
- |
- |
- |
Total Special Items |
3.4 |
(1.4) |
4.8 |
(m) ENOI results for first quarter 2005 are included in operational earnings.
Appendix C provides a summary of selected regulatory cases and events that are pending.
Appendix C: Regulatory Summary Table |
||
Company/ Proceeding |
Authorized ROE |
Pending Cases/Events |
Retail Regulation |
||
Entergy Arkansas |
11.00% |
Recent activity: On March 31, 2006, the APSC suspended the annual revised Energy Cost Recovery Rider (ECR) rate increase scheduled to take effect the first billing cycle in April pending further investigation. On April 7, 2006 the APSC issued a show cause order on prospective elimination of ECR and requiring a current cost-of-service study by June 8, 2006. EAI has filed for rehearing of the APSC orders, asking that the ECR rider filed in March 2006 be implemented subject to refund, and that the APSC rescind its show cause order. The APSC Staff has filed testimony supporting EAI's request that the ECR rate be implemented subject to refund. A procedural schedule in the ECR proceedings has not been set.Background: EAI's base rates and the ECR have been in effect since 1998. EAI has been evaluating timing for a potential base rate case and expects to make a filing in third quarter 2006. In December 2005, EAI provided notice of its intent to terminate participation in the Entergy System Agreement, following a final order from FERC establishing terms under which EAI may be required to make payments to other operating companies to achieve rough production cost equalization. Storm Cost Recovery: EAI has not yet filed for storm cost recovery. The company's estimated storm costs are significantly less than the other Entergy subsidiaries. The base rate proceeding will include an adjustment to storm reserves to reflect recent storm restoration costs. |
Entergy Gulf States - TX |
10.95% |
Recent activity: On April 11, 2006, a unanimous settlement was filed allowing recovery of $14.5 million per year in transition to competition costs over a 15-year period. Interim rates at this level were implemented on March 1, 2006, subject to refund. The Public Utility Commission of Texas (PUCT) is expected to consider the formal settlement in May 2006.Background: EGS-TX has operated under a base rate freeze since 1999. In July 2004, the PUCT effectively rejected the company's proposal to advance to Retail Open Access and as a result, the company filed a rate case which was dismissed by the PUCT. Legislation was subsequently enacted in June 2005 which allows EGS-TX to file for rate relief through riders for incremental capacity costs and transition costs. In December 2005, the PUCT approved the recovery of $18 million annually beginning in December 2005 for capacity costs, subject to reconciliation from September 2005. The legislation also extended to mid 2008 the base rate freeze EGS-TX has been in since 1999. The company believes storm damage can be considered as a special one-off rate rider. Storm Cost Recovery: In response to procedural recommendations of the PUCT staff, EGS-TX filed updated storm cost estimates in January and March 2006. Additional updates are to be provided on May 15, with a final accounting filing expected on June 1, 2006. A securitization bill is expected to be introduced at the Texas special legislative session that began April 17, 2006. The Governor has indicated that school finance issues must be resolved first before other issues will be considered. |
Entergy Gulf States - LA |
9.90% - 11.40% |
Recent activity: In January 2006, the Louisiana Public Service Commission (LPSC) Staff recommended a $0.5 million refund for the two-year period 2004 and 2005 to be applied to future capacity deferrals and a $36.8 million rate increase effective October 2005. These recommendations were in response to the company's 2005 formula rate plan (FRP) filing which indicated that a $37.2 million rate increase was required to recover (1) a $21.1 million FRP increase and (2) $16.1 million in Perryville costs. On March 29, 2006, the LPSC approved the uncontested stipulation of the Staff and the company.Background: In March 2005, the LPSC approved a Global Settlement which included among other things, the establishment of a FRP with a 10.65% ROE midpoint and a +/- 75 basis point bandwidth and a recovery mechanism for Commission approved capacity additions. Earnings outside the bandwidth are allocated 60% to customers and 40% to the company. The next filing will be made in May 2006 based on a 2005 test year. Storm Cost Recovery: In December 2005, EGS-LA filed for interim recovery of $141 million storm costs. In February 2006, the LPSC ordered interim recovery of up to $6 million of storm costs through the fuel adjustment clause during the period March to September 2006. In September until final storm recovery is issued, interim recovery of $0.85 million per month will be included in the FRP, offset by any earnings above the top of the FRP band from the 2005 test year and any ensuing period in which interim relief is being collected. The Phase II filling is expected in the second or third quarter 2006. A securitization bill has been sponsored in the current legislative session and has been approved by the House Commerce Committee and the House of Representatives. The regular session ends no later than June 19. |
Entergy Louisiana |
9.45% - 11.05% |
Recent activity: None.Background: In May 2005, the LPSC approved a modified settlement in response to ELL's January 2004 request for a base rate increase. The settlement included, among other things, a rate reduction of $6.7 million which was subsequently reduced to $0.8 million, and an FRP with a 10.25% ROE midpoint and a +/- 80 basis point bandwidth and a recovery mechanism for Commission approved capacity additions. Earnings outside the bandwidth are allocated 60% to customers and 40% to the company. The first filing will be made in May 2006 based on a 2005 test year. Storm Cost Recovery: In December 2005, ELL filed for interim recovery of $355 million storm costs. In February 2006, the LPSC ordered interim recovery of up to $14 million of storm costs through the fuel adjustment clause during the period of March to September 2006. In September until final storm recovery is issued, interim recovery of $2 million per month will be included in the FRP, offset by any earnings above the top FRP band from the 2005 test year and any ensuing period in which interim relief is being collected. The Phase II filing is expected in the second or third quarter 2006. A securitization bill has been sponsored in the current legislative session and has been approved by the House Commerce Committee and the House of Representatives. The regular session ends no later than June 19. |
Appendix C: Regulatory Summary Table (continued) |
||||||
Company/ Proceeding |
Authorized ROE |
Pending Cases/Events |
||||
Retail Regulation |
||||||
Entergy Mississippi |
9.74% - 12.44% |
Recent activity: On April 10, 2006, EMI submitted its 2005 Evaluation Report that reflected a Performance Adjusted Benchmark Return on Equity of 11.09%, including 0.53% for performance incentives. The Earned Return on Equity was 9.35%, resulting in a revenue deficiency of approximately $6.0 million and a rate increase request of approximately $3.0 million. The report is currently being reviewed by the Mississippi Public Utilities Staff (MPUS).Background: EMI has been operating under a formula rate plan last approved in December 2002. The FRP allows the company's earned ROE to increase or decrease within a bandwidth with no change in rates; earnings outside the bandwidth are allocated 50% to customers and 50% to the company, but on a prospective basis only. The plan also provides for performance incentives that can increase or decrease the benchmark ROE by as much as 100 basis points. The current mid-point of the ROE bandwidth, including performance incentives, is 11.09%. In December 2005, EMI received an order from MPSC approving purchase of the Attala facility and authorizing interim recovery. Pursuant to this order, EMI will file a base rate case in third or fourth quarter 2006 to obtain permanent recovery of, i.e. a return of and on, the Attala facility. Storm Cost Recovery: In December 2005, EMI requested recovery of $84 million for storm costs recorded through November 2005. In February 2006, EMI filed an Application for an Accounting Order that requested the Mississippi Public Service Commission (MPSC) to certify an additional $36 million in storm restoration costs (or $120 million total) that had been identified through January 2006. In March 2006, EMI and the MPUS filed a Joint Stipulation that the initial procedural schedule be suspended and that the February 2006 Application be amended to include all restoration costs. Pursuant to the revised schedule, an order would be issued certifying storm restoration costs in June 2006, with any rate relief filing to be made after determination of community development block grant and securitization funds. Securitization legislation was signed into law on March 6, 2006. EMI plans to file a request for a finan cing order under the new law with the MPSC in the summer of 2006 with the earliest timing of the order becoming effective in fourth quarter 2006. |
||||
Entergy New Orleans |
9.75% - 11.75% (electric) |
Recent activity: In recognition of the May elections in the City of New Orleans, on April 20, 2006, the City Council of New Orleans agreed to delay ENOI's 2005 FRP filing to July 2006, from the original May 2006 filing deadline.Background: In September 2005, the City Council of New Orleans approved a two year extension of ENOI's FRP with a ROE mid-point of 10.75%, a 45% hypothetical equity ratio, and electric and gas ROE bandwidths of 100 and 50 basis points, respectively. The Council's order also decoupled the company's Generation Performance-Based Rate (G-PBR) from its electric FRP, thereby allowing ENOI to earn up to $4.5 million annually under the G-PBR. However, the G-PBR has been temporarily suspended due to effects from Hurricane Katrina. Storm Cost Recovery: ENOI has not yet filed for storm cost recovery. The timing and components of such a filing are subject to other recovery initiatives. Bankruptcy activity: The current schedule proposed by the Bankruptcy Court calls for the plan of reorganization to be filed in August 2006, the second extension from the original date in January 2006 and the initial extension date in April 2006. |
||||
Wholesale Regulation (FERC) |
||||||
System Energy Resources, Inc. |
10.94% |
Recent activity: NoneBackground: ROE approved by July 2001 FERC order. No cases pending. |
||||
System Agreement |
NA |
Recent activity: A compliance filing to implement the FERC decision in this case was filed by Entergy at FERC on April 10, 2006 which proposed that all payments required by the June 2005 FERC decision be properly reflected as fuel costs.Background: The system agreement case, originally filed in 2001, addresses reallocation of production costs among the utility operating subsidiaries. In June 2005, the FERC issued a decision stating that rough production cost equalization did not exist in the Entergy system. The FERC established a bandwidth of +/- 11 % to reallocate production costs and ordered that this approach be applied prospectively. In December 2005, FERC essentially denied requests for rehearing of its June 2005 order and established, among other things, that 1) the bandwidth would be applied to calendar year 2006 actual production costs and 2) 2007 would be the first possible year of payments among Entergy's operating companies. Appeals of this decision were filed by the APSC, LPSC, MPSC and AECC in the federal appeals court for the D.C. circuit. These appeals have been consolidated. The City of New Orleans intervened in the LPSC appeal, and Entergy has intervened in all appeals. |
||||
Independent Coordinator of Transmission |
NA |
Recent activity: On April 24, 2006 the FERC approved Entergy's ICT proposal with modification.Background: Entergy initially filed for FERC approval of its alternative transmission structure in April 2004. In that and subsequent filings, Entergy proposed that an independent entity (the ICT) perform certain transmission functions, oversee other aspects of the operation of the transmission system, and implement a more efficient expansion pricing policy. Based on a positive Declaratory Order issued by the FERC in March 2005, Entergy filed for approval of the ICT in May 2005. |
Appendix D-1 provides comparative financial performance measures for the current quarter. Appendix D-2 provides historical financial performance measures and operating performance metrics for the trailing eight quarters. Financial performance measures in both tables include those calculated and presented in accordance with generally accepted accounting principles (GAAP), as well as those that are considered non-GAAP measures.
As-reported measures are computed in accordance with GAAP as they include all components of earnings, including special items. Operational measures are non-GAAP measures as they are calculated using operational earnings, which excludes the impact of special items. A reconciliation of operational earnings per share to as-reported earnings per share is provided in Appendix H-1.
Appendix D-1: GAAP and Non-GAAP Financial Performance Measures |
||||
First Quarter 2006 vs. 2005 (see appendix G for definitions of certain measures) |
||||
For 12 months ending March 31 |
2006 |
2005 |
Change |
|
GAAP Measures |
||||
Return on average invested capital - - as-reported |
7.30% |
7.01% |
0.29% |
|
Return on average common equity - as-reported |
11.46% |
10.35% |
1.11% |
|
Net margin - as-reported |
8.71% |
9.41% |
(0.70)% |
|
Cash flow interest coverage |
4.71 |
7.55 |
(2.84) |
|
Book value per share |
$38.66 |
$37.66 |
$1.00 |
|
End of period shares outstanding (millions) |
207.9 |
212.8 |
(4.9) |
|
Non-GAAP Measures |
||||
Return on average invested capital - - operational |
7.53% |
6.93% |
0.60% |
|
Return on average common equity - operational |
11.96% |
10.19% |
1.77% |
|
Net margin - operational |
9.09% |
9.27% |
(0.18)% |
|
As of March 31 ($ in millions) |
2006 |
2005 |
Change |
|
GAAP Measures |
||||
Cash and cash equivalents |
752 |
477 |
275 |
|
Revolver capacity |
2,733 |
1,070 |
1,663 |
|
Total debt |
9,329 |
8,033 |
1,296 |
|
Debt to capital ratio |
52.1% |
49.0% |
3.1% |
|
Off-balance sheet liabilities: |
||||
Debt of joint ventures - Entergy's share |
213 |
207 |
6 |
|
Leases - Entergy's share |
519 |
564 |
(45) |
|
Total off-balance sheet liabilities |
732 |
771 |
(39) |
|
Non-GAAP Measures |
||||
Total gross liquidity |
3,485 |
1,547 |
1,938 |
|
Net debt to net capital ratio |
50.0% |
47.5% |
2.5% |
|
Net debt ratio including off-balance sheet liabilities |
52.1% |
49.9% |
2.2% |
|
Appendix D-2: Historical Performance Measures (see appendix G for definitions of measures) |
||||||||||||||
2Q04(n) | 3Q04(n) | 4Q04(n) | 1Q05 | 2Q05 | 3Q05 | 4Q05 | 1Q06 | 05YTD | 06YTD | |||||
Financial |
||||||||||||||
EPS - as-reported ($) |
1.14 |
1.22 |
0.68 |
0.79 |
1.33 |
1.65 |
0.43 |
0.92 |
0.79 |
0.92 |
||||
Less - special items ($) |
0.06 |
-0.17 |
0.18 |
-0.01 |
-0.01 |
-0.03 |
-0.16 |
0.02 |
-0.01 |
0.02 |
||||
EPS - operational ($) |
1.08 |
1.39 |
0.50 |
0.80 |
1.34 |
1.68 |
0.59 |
0.90 |
0.80 |
0.90 |
||||
Trailing Twelve Months |
||||||||||||||
ROIC - as-reported (%) |
6.37 |
5.90 |
7.29 |
7.01 |
7.12 |
7.49 |
7.22 |
7.30 |
7.01 |
7.30 |
||||
ROIC - operational (%) |
6.94 |
6.70 |
7.11 |
6.93 |
7.14 |
7.31 |
7.49 |
7.53 |
6.93 |
7.53 |
||||
ROE - as-reported (%) |
9.27 |
8.12 |
10.70 |
10.35 |
10.73 |
11.53 |
11.20 |
11.46 |
10.35 |
11.46 |
||||
ROE - operational (%) |
10.43 |
9.71 |
10.35 |
10.19 |
10.75 |
11.17 |
11.76 |
11.96 |
10.19 |
11.96 |
||||
Cash Flow Interest Coverage |
5.98 |
6.41 |
7.13 |
7.55 |
7.07 |
5.93 |
4.01 |
4.71 |
7.55 |
4.71 |
||||
Debt to capital ratio (%) |
47.4 |
46.8 |
47.4 |
49.0 |
49.9 |
51.9 |
53.1 |
52.1 |
49.0 |
52.1 |
||||
Net debt/net capital ratio (%) |
45.6 |
45.1 |
45.3 |
47.5 |
48.0 |
50.2 |
51.5 |
50.0 |
47.5 |
50.0 |
||||
Utility |
||||||||||||||
GWh billed |
||||||||||||||
Residential |
6,911 |
10,738 |
7,521 |
7,170 |
6,557 |
10,630 |
7,212 |
6,963 |
7,170 |
6,963 |
||||
Commercial & Gov't |
6,829 |
8,468 |
7,252 |
5,854 |
6,113 |
7,725 |
6,277 |
5,916 |
5,854 |
5,916 |
||||
Industrial |
9,922 |
10,456 |
10,425 |
9,452 |
9,649 |
9,736 |
8,778 |
9,053 |
9,452 |
9,053 |
||||
Wholesale |
2,367 |
2,040 |
1,799 |
1,728 |
1,931 |
2,227 |
1,549 |
1,555 |
1,728 |
1,555 |
||||
O&M expense/MWh |
$15.62 |
$12.97 |
$17.44 |
$14.98 |
$17.39 |
$11.35 |
$17.43 |
$16.12 |
$14.98 |
$16.12 |
||||
Reliability |
||||||||||||||
SAIFI |
1.9 |
1.8 |
1.9 |
1.5 |
1.8 |
1.8(o) |
1.7(o) |
1.8(o) |
1.5 |
1.8(o) |
||||
SAIDI |
162 |
159 |
169 |
136 |
157 |
158(o) |
161(o) |
174(o) |
136 |
174(o) |
||||
Nuclear |
||||||||||||||
Net MW in operation |
4,001 |
4,001 |
4,058 |
4,058 |
4,105 |
4,105 |
4,105 |
4,135 |
4,058 |
4,135 |
||||
Avg. realized price per MWh |
$41.33 |
$43.38 |
$40.69 |
$41.56 |
$42.63 |
$42.58 |
$42.75 |
$44.39 |
$41.56 |
$44.39 |
||||
Production cost/MWh |
$18.33 |
$21.68 |
$22.28 |
$18.71 |
$19.22 |
$20.14 |
$19.48 |
$19.08 |
$18.71 |
$19.08 |
||||
Non-fuel O&M expense/MWh |
$19.57 |
$22.83 |
$23.99 |
$20.03 |
$20.39 |
$20.32 |
$19.95 |
$19.74 |
$20.03 |
$19.74 |
||||
Generation in GWh |
8,196 |
8,075 |
7,567 |
8,267 |
8,156 |
8,474 |
8,643 |
8,742 |
8,267 |
8,742 |
||||
Capacity factor |
94% |
92% |
85% |
93% |
91% |
95% |
95% |
97% |
93% |
97% |
||||
Appendix E provides a summary of planned capital expenditures. Entergy's capital plan from 2006 through 2008 includes $3.6 billion for investment; more than $2.2 billion of this amount is associated with capital to maintain Entergy's existing assets. Approximately $1.1 billion is associated with specific investments such as transmission upgrades, dry cask storage and license renewal projects at certain nuclear sites, and other investments, such as the purchase of the Attala plant, that support the utility's ability to meet load growth.
Appendix E: Planned Capital Expenditures excluding Entergy New Orleans |
||||
2006-2008 |
||||
($ in millions) |
2006 |
2007 |
2008 |
Total |
Storm capital |
310 |
- |
- |
310 |
Maintenance capital |
||||
Utility, Parent & Other |
604 |
713 |
719 |
2,036 |
Entergy Nuclear |
62 |
64 |
50 |
176 |
Non-nuclear wholesale assets |
2 |
2 |
2 |
6 |
Subtotal |
668 |
779 |
771 |
2,218 |
Other capital commitments |
||||
Utility, Parent & Other |
277 |
203 |
301 |
781 |
Entergy Nuclear |
143 |
96 |
86 |
325 |
Non-nuclear wholesale assets |
6 |
6 |
5 |
17 |
Subtotal |
426 |
305 |
392 |
1,123 |
Total Planned Capital Expenditures |
1,404 |
1,084 |
1,163 |
3,651 |
Entergy New Orleans' planned capital expenditures for the years 2006-2008 total $165 million, including $72 million of storm capital.
Appendix F provides details on scheduled long-term debt maturities including currently maturing portions.
Appendix F: Debt Maturity Schedule excluding Entergy New Orleans |
||||||
Maturities as of 3/31/2006 |
||||||
($ in millions) |
2006 |
2007 |
2008 |
2009-2010 |
2011+ |
Total |
Utility, Parent & Other |
- |
93 |
1,074 |
2,093 |
5,395 |
8,655 |
Entergy Nuclear |
81 |
80 |
20 |
42 |
151 |
374 |
Total |
81 |
173 |
1,094 |
2,135 |
5,546 |
9,029 |
Appendix G provides definitions of certain operational performance measures, as well as GAAP and non-GAAP financial measures, all of which are referenced in this release.
Appendix G: Definitions of Operational Performance Measures and GAAP and Non-GAAP Financial Measures |
|
Utility |
|
GWh billed |
Total number of GWh billed to all retail and wholesale customers |
Operation & maintenance expense |
Operation, maintenance and refueling expenses per MWh of billed sales, excluding fuel |
SAIFI |
System average interruption frequency index; average number per customer per year |
SAIDI |
System average interruption duration index; average minutes per customer per year |
Number of customers |
Number of customers at end of period |
Competitive Businesses |
|
Planned TWh of generation |
Amount of output expected to be generated by Entergy Nuclear for nuclear units, or by non-nuclear wholesale assets for fossil and wind units, considering plant operating characteristics, outage schedules, and expected market conditions which impact dispatch |
Percent of planned generation sold forward |
Percent of planned generation output sold forward under contracts, forward physical contracts or forward financial contracts (consistent with assumptions used in earnings guidance) that may or may not require regulatory approval |
Unit-contingent |
Transaction under which power is supplied from a specific generation asset; if the asset is unavailable, seller is not liable to buyer for any damages |
Unit-contingent with availability guarantees |
Transaction under which power is supplied from a specific generation asset; if the asset is unavailable, seller is not liable to buyer for any damages, unless the actual availability over a specified period of time is below an availability threshold specified in the contract |
Firm liquidated damages (LD) |
Transaction that requires receipt or delivery of energy at a specified delivery point (usually at a market hub not associated with a specific asset); if a party fails to deliver or receive energy, defaulting party must compensate the other party as specified in the contract |
Planned net MW in operation |
Amount of capacity to be available to generate power considering uprates planned to be completed within the calendar year |
Bundled energy & capacity contract |
A contract for the sale of installed capacity and related energy, priced per megawatt-hour sold |
Capacity contract |
For Entergy Nuclear, a contract for the sale of the installed capacity product in regional markets managed by ISO New England and the New York Independent System Operator For Energy Commodity Services, a contract for the sale of capacity and related energy, in which capacity and energy are priced separately |
Average contract price per MWh or per kW per month |
Price at which generation output and/or capacity is expected to be sold to third parties, given existing contract prices based on expected dispatch or capacity |
Average contract revenue per MWh |
Price at which the combination of generation output and capacity are expected to be sold to third parties, given existing contract prices based on expected dispatch |
Entergy Nuclear |
|
Net MW in operation |
Installed capacity owned or operated by Entergy Nuclear |
Average realized price per MWh |
As-reported revenue per MWh generated for all non-utility nuclear operations |
Production cost per MWh |
Fuel and non-fuel operation and maintenance expenses according to accounting standards that directly relate to the production of electricity per MWh |
Non-fuel O&M expense per MWh |
Operation, maintenance and refueling expenses per MWh of generation, excluding fuel |
Generation in GWh |
Total number of GWh produced by all non-utility nuclear facilities |
Capacity factor |
Normalized percentage of the period that the plant generates power |
Refueling outage duration |
Number of days lost for scheduled refueling outage during the period |
Financial measures defined in the below table include measures prepared in accordance with generally accepted accounting principles, (GAAP), as well as non-GAAP measures. Non-GAAP measures are included in this release in order to provide metrics that remove the effect of less routine financial impacts from commonly used financial metrics.
Appendix G: Definitions of Operational Performance Measures and GAAP and Non-GAAP Financial Measures (continued) |
|
Financial Measures - GAAP |
|
Return on average invested capital - - as-reported |
12-months rolling earnings adjusted to include preferred dividends and tax-effected interest expense divided by average invested capital |
Return on average common equity - as-reported |
12-months rolling earnings divided by average common equity |
Net margin - as-reported |
12-months rolling earnings divided by 12 months rolling revenue |
Cash flow interest coverage |
12-months cash flow from operating activities plus 12-months rolling interest paid, divided by interest expense |
Book value per share |
Common equity divided by end of period shares outstanding |
Revolver capacity |
Amount of undrawn capacity remaining on corporate and subsidiary revolvers |
Total debt |
Sum of short-term and long-term debt, notes payable, capital leases, and preferred stock with sinking fund on the balance sheet less non-recourse debt, if any |
Debt of joint ventures (Entergy's share) |
Debt issued by Entergy-Koch, LP and non-nuclear wholesale assets business joint ventures for periods through third quarter 2004. Only non-nuclear wholesale assets business joint ventures debt included for periods thereafter. |
Leases (Entergy's share) |
Operating leases held by subsidiaries capitalized at implicit interest rate |
Debt to capital |
Gross debt divided by total capitalization |
Financial Measures - Non-GAAP |
|
Operational earnings |
As-reported earnings applicable to common stock adjusted to exclude the impact of special items |
Return on average invested capital - - operational |
12-months rolling operational earnings adjusted to include preferred dividends and tax-effected interest expense divided by average invested capital |
Return on average common equity - operational |
12-months rolling operational earnings divided by average common equity |
Net margin - operational |
12-months rolling operational earnings divided by 12 months rolling revenue |
Total gross liquidity |
Sum of cash and revolver capacity |
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 liabilities |
Sum of gross debt and off-balance sheet debt less cash and cash equivalents divided by sum of total capitalization and off-balance sheet debt less cash and cash equivalents |
Appendices H-1 and H-2 provide reconciliations of various non-GAAP financial measures disclosed in this release to their most comparable GAAP measure.
Appendix H-1: Reconciliation of GAAP to Non-GAAP Financial Measures - - Return on Equity, Return on Invested Capital and Net Margin Metrics |
||||||||
($ in millions) |
2Q04 |
3Q04 |
4Q04 |
1Q05 |
2Q05 |
3Q05 |
4Q05 |
1Q06 |
As-reported earnings-rolling 12 months (A) |
799 |
715 |
910 |
874 |
895 |
963 |
898 |
920 |
Preferred dividends |
23 |
23 |
24 |
23 |
24 |
25 |
25 |
27 |
Tax effected interest expense |
303 |
293 |
295 |
282 |
278 |
287 |
293 |
304 |
As-reported earnings, rolling 12 months including preferred dividends and tax effected interest expense (B) |
1,124 |
1,030 |
1,228 |
1,180 |
1,197 |
1,275 |
1,217 |
1,251 |
Special items in prior quarters |
(113) |
(100) |
(11) |
15 |
0 |
37 |
(11) |
(43) |
Special items 1Q04 thru 4Q05 |
||||||||
Utility, Parent & Other Tax benefits- Entergy Koch |
17 |
|||||||
Energy Commodity Services Gain (loss) on disposition of assets |
13 |
(40) |
60 |
|||||
Energy Commodity Services asset and contract impairments |
(36) |
|||||||
Utility, Parent & Other Comp Retail asset impairments |
(26) |
|||||||
Comp Retail discontinued operations |
(1) |
(3) |
(7) |
(8) |
(2) |
|||
ENOI results |
6 |
|||||||
Total special items (C) |
(100) |
(140) |
30 |
13 |
(2) |
30 |
(45) |
(40) |
Operational earnings, rolling 12 months including preferred dividends and tax effected interest expense (B-C) |
1,225 |
1,170 |
1,198 |
1,166 |
1,199 |
1,245 |
1,262 |
1,291 |
Operational earnings, rolling 12 months (A-C) |
899 |
855 |
880 |
861 |
898 |
933 |
943 |
960 |
Average invested capital (D) |
17,638 |
17,462 |
16,845 |
16,825 |
16,806 |
17,033 |
16,850 |
17,140 |
Average common equity (E) |
8,619 |
8,806 |
8,500 |
8,452 |
8,347 |
8,350 |
8,020 |
8,026 |
Operating revenues (F) |
9,231 |
9,427 |
9,686 |
9,289 |
9,465 |
9,661 |
10,106 |
10,564 |
ROIC - as-reported (B/D) |
6.37 |
5.90 |
7.29 |
7.01 |
7.12 |
7.49 |
7.22 |
7.30 |
ROIC - operational ((B-C)/D) |
6.94 |
6.70 |
7.11 |
6.93 |
7.14 |
7.31 |
7.49 |
7.53 |
ROE - as-reported (A/E) |
9.27 |
8.12 |
10.70 |
10.35 |
10.73 |
11.53 |
11.20 |
11.46 |
ROE - operational ((A-C)/E) |
10.43 |
9.71 |
10.35 |
10.19 |
10.75 |
11.17 |
11.76 |
11.96 |
Net margin - as-reported (A/F) |
8.65 |
7.59 |
9.39 |
9.41 |
9.46 |
9.97 |
8.89 |
8.71 |
Net margin - operational ((A-C)/F) |
9.74 |
9.07 |
9.08 |
9.27 |
9.48 |
9.66 |
9.33 |
9.09 |
Appendix H-2: Reconciliation of GAAP to Non-GAAP Financial Measures - Credit and Liquidity Metrics |
||||||||
($ in millions) |
2Q04 |
3Q04 |
4Q04 |
1Q05 |
2Q05 |
3Q05 |
4Q05 |
1Q06 |
Gross debt (A) |
8,173 |
8,070 |
7,807 |
8,033 |
8,283 |
8,865 |
9,288 |
9,329 |
Less cash and cash equivalents (B) |
558 |
541 |
620 |
477 |
607 |
598 |
583 |
752 |
Net debt (C) |
7,615 |
7,528 |
7,187 |
7,556 |
7,676 |
8,267 |
8,705 |
8,576 |
Total capitalization (D) |
17,252 |
17,245 |
16,469 |
16,393 |
16,609 |
17,070 |
17,477 |
17,888 |
Less cash and cash equivalents (B) |
558 |
541 |
620 |
477 |
607 |
598 |
583 |
752 |
Net capital (E) |
16,693 |
16,703 |
15,849 |
15,916 |
16,002 |
16,472 |
16,894 |
17,135 |
Debt to capital ratio % (A/D) |
47.4 |
46.8 |
47.4 |
49.0 |
49.9 |
51.9 |
53.1 |
52.1 |
Net debt to net capital ratio % (C/E) |
45.6 |
45.1 |
45.3 |
47.5 |
48.0 |
50.2 |
51.5 |
50.0 |
Off-balance sheet liabilities (F) |
1,037 |
1,030 |
769 |
771 |
780 |
779 |
778 |
732 |
Net debt to net capital ratio including off-balance sheet liabilities % ((C+F)/(E+F)) |
48.8 |
48.3 |
47.9 |
49.9 |
50.4 |
52.4 |
53.7 |
52.1 |
Revolver capacity (G) |
1,280 |
1,310 |
1,490 |
1,070 |
1,407 |
791 |
2,545 |
2,733 |
Gross liquidity (B+G) |
1,838 |
1,851 |
2,110 |
1,547 |
2,014 |
1,389 |
3,128 |
3,485 |
The Entergy Investor Relations team has returned to its offices in New Orleans and can be contacted as follows:
Michele Lopiccolo Paul LaRosa Paula Waters
Phone 504/576-4879 Phone 504/576-4878 Phone 504/576- 4380
Investor Relations Fax 504/576-2897
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
**********************************************************************************************************************
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 these statements. Some of those factors include, but are not limited to the risk factors discussed in our Form 10-K as well as the following factors: resolution of pending and future rate cases and negotiations, including various performance-based rate discussions and implementation of new Texas legislation, and other proceedings, including those related to Entergy's System Agreement, Entergy's utility supply plan, recovery of storm costs, and recovery of fuel and purchased power costs, 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, the ability to hedge, sell power forward or otherwise reduce the market price risk associated with those facilities, including the Non-Utility Nuclear plants, and the prices and availability of fuel and power Entergy must purchase for its utility customers, and Entergy's ability to meet credit support requirements for fuel and power supply contracts, 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, changes in general corporate ratings, and changes in the rating agencies' ratings criteria, changes in inflation, interest rates, and foreign currency exchange rates, Entergy's ability to purchase and sell assets at attractive prices and on other attractive terms, volatility and changes in markets for electricity, natural gas, uranium, and other energy-related commodities, changes in utility regulation, including the beginning or end of retail and wholesale competition, the ability to recover net utility assets and other potential stranded costs, the establishment of a regional transmission organ ization that includes Entergy's utility service territory, and the application of market power criteria by the Federal Energy Regulatory Commission, changes in regulation of nuclear generation facilities and nuclear materials and fuel, including possible shutdown of nuclear generating facilities, particularly those in the northeastern United States, uncertainty regarding the establishment of interim or permanent sites for spent nuclear fuel storage and disposal, resolution of pending or future applications for license extensions or modifications of nuclear generating facilities, changes in law resulting from the new federal energy legislation, including the effects of the Public Utilities Holding Company Act of 1935 repeal, changes in environmental, tax, and other laws, including requirements for reduced emissions of sulfur, nitrogen, carbon, mercury, and other substances, the economic climate, particularly growth in Entergy's service territory, variations in weather and the occurrence of hurricanes and othe r storms and disasters, including uncertainties associated with efforts to remediate the effects of Hurricanes Katrina and Rita and recovery of costs associated with restoration including Entergy's ability to obtain financial assistance from governmental authorities in connection with these storms, the outcome of the Chapter 11 bankruptcy proceeding of Entergy New Orleans, Inc. and the impact of this proceeding on other Entergy companies, advances in technology, the potential effects of threatened or actual terrorism and war, the effects of Entergy's strategies to reduce tax payments, the effects of litigation and government investigations, changes in accounting standards, corporate governance, and securities law requirements, Entergy's ability to attract and retain talented management and directors.
Entergy Corporation | |||||||
Consolidating Balance Sheet | |||||||
March 31, 2006 | |||||||
(Dollars in thousands) | |||||||
(Unaudited) | |||||||
U.S. Utilities/ Parent & Other | Competitive Businesses | Eliminations | Consolidated | ||||
ASSETS | |||||||
CURRENT ASSETS | |||||||
Cash and cash equivalents: | |||||||
Cash | $ 140,654 | $ 9,986 | $ - | $ 150,640 | |||
Temporary cash investments - at cost, | |||||||
which approximates market | 271,088 | 330,658 | - | 601,746 | |||
Special deposits | - | - | - | - | |||
Total cash and cash equivalents | 411,742 | 340,644 | - | 752,386 | |||
Notes receivable - Entergy New Orleans DIP loan | 80,000 | - | - | 80,000 | |||
Notes receivable | 831,167 | 1,139,435 | (1,967,500) | 3,102 | |||
Accounts receivable: | |||||||
Customer | 597,140 | - | - | 597,140 | |||
Allowance for doubtful accounts | (27,206) | (2,064) | - | (29,270) | |||
Associated companies | 15,535 | 81,802 | (97,337) | - | |||
Other | 194,794 | 164,230 | - | 359,024 | |||
Accrued unbilled revenues | 233,907 | - | - | 233,907 | |||
Total receivables | 1,014,170 | 243,968 | (97,337) | 1,160,801 | |||
Deferred fuel costs | 268,270 | - | - | 268,270 | |||
Accumulated deferred income taxes | - | - | - | - | |||
Fuel inventory - at average cost | 231,785 | 3,017 | - | 234,802 | |||
Materials and supplies - at average cost | 379,852 | 184,401 | - | 564,253 | |||
Deferred nuclear refueling outage costs | 50,464 | 76,780 | - | 127,244 | |||
Prepayments and other | 62,798 | 30,448 | - | 93,246 | |||
TOTAL | 3,330,248 | 2,018,693 | (2,064,837) | 3,284,104 | |||
OTHER PROPERTY AND INVESTMENTS | |||||||
Investment in affiliates - at equity | 8,159,030 | 421,619 | (8,284,777) | 295,872 | |||
Decommissioning trust funds | 1,169,323 | 1,488,869 | - | 2,658,192 | |||
Non-utility property - at cost (less accumulated depreciation) | 232,284 | 3,039 | - | 235,323 | |||
Other | 34,096 | 49,620 | - | 83,716 | |||
TOTAL | 9,594,733 | 1,963,147 | (8,284,777) | 3,273,103 | |||
PROPERTY, PLANT, AND EQUIPMENT | |||||||
Electric | 27,892,756 | 2,009,453 | (2,756) | 29,899,453 | |||
Property under capital lease | 726,597 | - | - | 726,597 | |||
Natural gas | 86,051 | - | - | 86,051 | |||
Construction work in progress | 760,585 | 330,138 | - | 1,090,723 | |||
Nuclear fuel under capital lease | 257,467 | - | - | 257,467 | |||
Nuclear fuel | 111,493 | 313,331 | - | 424,824 | |||
TOTAL PROPERTY, PLANT AND EQUIPMENT | 29,834,949 | 2,652,922 | (2,756) | 32,485,115 | |||
Less - accumulated depreciation and amortization | 12,878,812 | 296,070 | - | 13,174,882 | |||
PROPERTY, PLANT AND EQUIPMENT - NET | 16,956,137 | 2,356,852 | (2,756) | 19,310,233 | |||
DEFERRED DEBITS AND OTHER ASSETS | |||||||
Regulatory assets: | |||||||
SFAS 109 regulatory asset - net | 709,514 | - | - | 709,514 | |||
Other regulatory assets | 2,273,111 | - | - | 2,273,111 | |||
Deferred fuel costs | 210,149 | - | - | 210,149 | |||
Long-term receivables | 24,265 | - | - | 24,265 | |||
Goodwill | 374,099 | 3,073 | - | 377,172 | |||
Other | 880,366 | 815,806 | (641,777) | 1,054,395 | |||
TOTAL | 4,471,504 | 818,879 | (641,777) | 4,648,606 | |||
TOTAL ASSETS | $ 34,352,622 | $ 7,157,571 | $ (10,994,147) | $ 30,516,046 | |||
*Totals may not foot due to rounding. | |||||||
Entergy Corporation | |||||||
Consolidating Balance Sheet | |||||||
March 31, 2006 | |||||||
(Dollars in thousands) | |||||||
(Unaudited) | |||||||
U.S. Utilities/ Parent & Other | Competitive Businesses | Eliminations | Consolidated | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||
CURRENT LIABILITIES | |||||||
Currently maturing long-term debt | $ 23,335 | $ 80,528 | $ - | $ 103,863 | |||
Notes payable: | |||||||
Associated companies | 1,380,601 | 596,899 | (1,977,500) | - | |||
Other | 41 | - | - | 41 | |||
Account payable: | |||||||
Associated companies | 68,186 | 24,711 | (92,897) | - | |||
Other | 841,879 | 123,350 | - | 965,229 | |||
Customer deposits | 230,092 | - | - | 230,092 | |||
Taxes accrued | 289,369 | (65,243) | - | 224,126 | |||
Accumulated deferred income taxes | 95,644 | - | - | 95,644 | |||
Nuclear refueling outage costs | 19,101 | - | - | 19,101 | |||
Interest accrued | 133,111 | 4,883 | - | 137,994 | |||
Obligations under capital leases | 138,488 | - | - | 138,488 | |||
Other | 129,574 | 218,202 | - | 347,776 | |||
TOTAL | 3,349,421 | 983,330 | (2,070,397) | 2,262,354 | |||
NON-CURRENT LIABILITIES | |||||||
Accumulated deferred income taxes and taxes accrued | 5,404,404 | 146,635 | - | 5,551,039 | |||
Accumulated deferred investment tax credits | 372,084 | - | - | 372,084 | |||
Obligations under capital leases | 149,674 | - | - | 149,674 | |||
Other regulatory liabilities | 432,878 | - | - | 432,878 | |||
Decommissioning and retirement cost liabilities | 1,183,156 | 775,368 | - | 1,958,524 | |||
Transition to competition | 79,098 | - | - | 79,098 | |||
Regulatory reserves | 17,245 | - | - | 17,245 | |||
Accumulated provisions | 350,747 | 204,725 | - | 555,472 | |||
Long-term debt | 8,631,091 | 353,981 | (60,141) | 8,924,931 | |||
Preferred stock with sinking fund | 11,700 | - | - | 11,700 | |||
Other | 1,646,380 | 575,163 | (579,626) | 1,641,917 | |||
TOTAL | 18,278,457 | 2,055,872 | (639,767) | 19,694,562 | |||
Preferred stock without sinking fund | 486,209 | 426,637 | (391,937) | 520,909 | |||
SHAREHOLDERS' EQUITY | |||||||
Common stock, $.01 par value, authorized 500,000,000 shares; | |||||||
issued 248,174,087 shares in 2006 | 2,205,192 | 1,091,856 | (3,294,566) | 2,482 | |||
Paid-in capital | 6,650,028 | 1,573,971 | (3,407,962) | 4,816,037 | |||
Retained earnings | 5,660,224 | 1,203,133 | (1,353,460) | 5,509,897 | |||
Accumulated other comprehensive income (loss) | (15,720) | (133,912) | 626 | (149,006) | |||
Less - treasury stock, at cost (40,251,611 shares in 2006) | 2,261,189 | 43,316 | (163,316) | 2,141,189 | |||
TOTAL | 12,238,535 | 3,691,732 | (7,892,046) | 8,038,221 | |||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 34,352,622 | $ 7,157,571 | $ (10,994,147) | $ 30,516,046 | |||
*Totals may not foot due to rounding. | |||||||
Entergy Corporation | |||||||
Consolidating Balance Sheet | |||||||
December 31, 2005 | |||||||
(Dollars in thousands) | |||||||
(Unaudited) | |||||||
U.S. Utilities/ Parent & Other | Competitive Businesses | Eliminations | Consolidated | ||||
ASSETS | |||||||
CURRENT ASSETS | |||||||
Cash and cash equivalents: | |||||||
Cash | $ 207,135 | $ 14,638 | $ - | $ 221,773 | |||
Temporary cash investments - at cost, | |||||||
which approximates market | 127,786 | 233,261 | - | 361,047 | |||
Special deposits | - | - | - | - | |||
Total cash and cash equivalents | 334,921 | 247,899 | - | 582,820 | |||
Notes receivable - Entergy New Orleans DIP loan | 90,000 | - | - | 90,000 | |||
Notes receivable | 575,873 | 1,144,505 | (1,717,151) | 3,227 | |||
Accounts receivable: | |||||||
Customer | 732,455 | - | - | 732,455 | |||
Allowance for doubtful accounts | (28,635) | (2,170) | - | (30,805) | |||
Associated companies | 33,851 | 69,719 | (103,570) | - | |||
Other | 193,548 | 162,866 | - | 356,414 | |||
Accrued unbilled revenues | 477,570 | - | - | 477,570 | |||
Total receivables | 1,408,789 | 230,415 | (103,570) | 1,535,634 | |||
Deferred fuel costs | 543,927 | - | - | 543,927 | |||
Accumulated deferred income taxes | - | - | - | - | |||
Fuel inventory - at average cost | 204,382 | 1,813 | - | 206,195 | |||
Materials and supplies - at average cost | 369,397 | 241,535 | - | 610,932 | |||
Deferred nuclear refueling outage costs | 64,157 | 93,607 | - | 157,764 | |||
Prepayments and other | 301,387 | 24,408 | - | 325,795 | |||
TOTAL | 3,892,833 | 1,984,182 | (1,820,721) | 4,056,294 | |||
OTHER PROPERTY AND INVESTMENTS | |||||||
Investment in affiliates - at equity | 8,198,240 | 428,006 | (8,329,462) | 296,784 | |||
Decommissioning trust funds | 1,136,006 | 1,470,759 | - | 2,606,765 | |||
Non-utility property - at cost (less accumulated depreciation) | 226,264 | 2,569 | - | 228,833 | |||
Other | 35,594 | 45,941 | - | 81,535 | |||
TOTAL | 9,596,104 | 1,947,275 | (8,329,462) | 3,213,917 | |||
PROPERTY, PLANT, AND EQUIPMENT | |||||||
Electric | 27,176,956 | 1,987,079 | (3,008) | 29,161,027 | |||
Property under capital lease | 727,565 | - | - | 727,565 | |||
Natural gas | 86,794 | - | - | 86,794 | |||
Construction work in progress | 1,291,374 | 232,711 | - | 1,524,085 | |||
Nuclear fuel under capital lease | 271,615 | - | - | 271,615 | |||
Nuclear fuel | 101,403 | 335,243 | - | 436,646 | |||
TOTAL PROPERTY, PLANT AND EQUIPMENT | 29,655,707 | 2,555,033 | (3,008) | 32,207,732 | |||
Less - accumulated depreciation and amortization | 12,730,545 | 280,142 | - | 13,010,687 | |||
PROPERTY, PLANT AND EQUIPMENT - NET | 16,925,162 | 2,274,891 | (3,008) | 19,197,045 | |||
DEFERRED DEBITS AND OTHER ASSETS | |||||||
Regulatory assets: | |||||||
SFAS 109 regulatory asset - net | 735,221 | - | - | 735,221 | |||
Other regulatory assets | 2,133,724 | - | - | 2,133,724 | |||
Deferred fuel costs | 120,489 | - | - | 120,489 | |||
Long-term receivables | 25,572 | - | - | 25,572 | |||
Goodwill | 374,099 | 3,073 | - | 377,172 | |||
Other | 841,068 | 801,587 | (650,820) | 991,835 | |||
TOTAL | 4,230,173 | 804,660 | (650,820) | 4,384,013 | |||
TOTAL ASSETS | $ 34,644,272 | $ 7,011,008 | $ (10,804,011) | $ 30,851,269 | |||
*Totals may not foot due to rounding. | |||||||
Entergy Corporation | |||||||
Consolidating Balance Sheet | |||||||
December 31, 2005 | |||||||
(Dollars in thousands) | |||||||
(Unaudited) | |||||||
U.S. Utilities/ Parent & Other | Competitive Businesses | Eliminations | Consolidated | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||
CURRENT LIABILITIES | |||||||
Currently maturing long-term debt | $ 22,989 | $ 80,528 | $ - | $ 103,517 | |||
Notes payable: | |||||||
Associated companies | 926,271 | 530,880 | (1,457,151) | - | |||
Other | 40,041 | - | - | 40,041 | |||
Account payable: | |||||||
Associated companies | 77,793 | 23,393 | (101,186) | - | |||
Other | 1,494,385 | 161,402 | - | 1,655,787 | |||
Customer deposits | 222,044 | 162 | - | 222,206 | |||
Taxes accrued | 316,659 | (128,500) | - | 188,159 | |||
Accumulated deferred income taxes | 143,409 | - | - | 143,409 | |||
Nuclear refueling outage costs | 15,548 | - | - | 15,548 | |||
Interest accrued | 153,269 | 1,586 | - | 154,855 | |||
Obligations under capital leases | 130,882 | - | - | 130,882 | |||
Other | 66,367 | 407,143 | - | 473,510 | |||
TOTAL | 3,609,657 | 1,076,594 | (1,558,337) | 3,127,914 | |||
NON-CURRENT LIABILITIES | |||||||
Accumulated deferred income taxes and taxes accrued | 5,245,208 | 34,020 | - | 5,279,228 | |||
Accumulated deferred investment tax credits | 376,550 | - | - | 376,550 | |||
Obligations under capital leases | 175,005 | - | - | 175,005 | |||
Other regulatory liabilities | 408,667 | - | - | 408,667 | |||
Decommissioning and retirement cost liabilities | 1,161,830 | 762,141 | - | 1,923,971 | |||
Transition to competition | 79,101 | - | - | 79,101 | |||
Regulatory reserves | 18,624 | - | - | 18,624 | |||
Accumulated provisions | 350,265 | 205,763 | - | 556,028 | |||
Long-term debt | 8,791,811 | 349,073 | (316,391) | 8,824,493 | |||
Preferred stock with sinking fund | 13,950 | - | - | 13,950 | |||
Other | 1,729,077 | 749,961 | (600,021) | 1,879,017 | |||
TOTAL | 18,350,088 | 2,100,958 | (916,412) | 19,534,634 | |||
Preferred stock without sinking fund | 411,321 | 426,590 | (391,937) | 445,974 | |||
SHAREHOLDERS' EQUITY | |||||||
Common stock, $.01 par value, authorized 500,000,000 shares; | |||||||
issued 248,174,087 shares in 2005 | 2,205,192 | 1,091,856 | (3,294,566) | 2,482 | |||
Paid-in capital | 6,653,879 | 1,565,320 | (3,401,562) | 4,817,637 | |||
Retained earnings | 5,712,395 | 1,121,151 | (1,405,139) | 5,428,407 | |||
Accumulated other comprehensive income (loss) | (16,300) | (328,145) | 626 | (343,819) | |||
Less - treasury stock, at cost (40,644,602 shares in 2005) | 2,281,960 | 43,316 | (163,316) | 2,161,960 | |||
TOTAL | 12,273,206 | 3,406,866 | (7,937,325) | 7,742,747 | |||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 34,644,272 | $ 7,011,008 | $ (10,804,011) | $ 30,851,269 | |||
*Totals may not foot due to rounding. | |||||||
Entergy Corporation | |||||||
Consolidating Balance Sheet | |||||||
March 31, 2006 vs December 31, 2005 | |||||||
(Dollars in thousands) | |||||||
(Unaudited) | |||||||
U.S. Utilities/ Parent & Other | Competitive Businesses | Eliminations | Consolidated | ||||
ASSETS | |||||||
CURRENT ASSETS | |||||||
Cash and cash equivalents: | |||||||
Cash | $ (66,481) | $ (4,652) | $ - | $ (71,133) | |||
Temporary cash investments - at cost, | |||||||
which approximates market | 143,302 | 97,397 | - | 240,699 | |||
Special deposits | - | - | - | - | |||
Total cash and cash equivalents | 76,821 | 92,745 | - | 169,566 | |||
Notes receivable - Entergy New Orleans DIP loan | (10,000) | - | - | (10,000) | |||
Notes receivable | 255,294 | (5,070) | (250,349) | (125) | |||
Accounts receivable: | |||||||
Customer | (135,315) | - | - | (135,315) | |||
Allowance for doubtful accounts | 1,429 | 106 | - | 1,535 | |||
Associated companies | (18,316) | 12,083 | 6,233 | - | |||
Other | 1,246 | 1,364 | - | 2,610 | |||
Accrued unbilled revenues | (243,663) | - | - | (243,663) | |||
Total receivables | (394,619) | 13,553 | 6,233 | (374,833) | |||
Deferred fuel costs | (275,657) | - | - | (275,657) | |||
Accumulated deferred income taxes | - | - | - | - | |||
Fuel inventory - at average cost | 27,403 | 1,204 | - | 28,607 | |||
Materials and supplies - at average cost | 10,455 | (57,134) | - | (46,679) | |||
Deferred nuclear refueling outage costs | (13,693) | (16,827) | - | (30,520) | |||
Prepayments and other | (238,589) | 6,040 | - | (232,549) | |||
TOTAL | (562,585) | 34,511 | (244,116) | (772,190) | |||
OTHER PROPERTY AND INVESTMENTS | |||||||
Investment in affiliates - at equity | (39,210) | (6,387) | 44,685 | (912) | |||
Decommissioning trust funds | 33,317 | 18,110 | - | 51,427 | |||
Non-utility property - at cost (less accumulated depreciation) | 6,020 | 470 | - | 6,490 | |||
Other | (1,498) | 3,679 | - | 2,181 | |||
TOTAL | (1,371) | 15,872 | 44,685 | 59,186 | |||
PROPERTY, PLANT, AND EQUIPMENT | |||||||
Electric | 715,800 | 22,374 | 252 | 738,426 | |||
Property under capital lease | (968) | - | - | (968) | |||
Natural gas | (743) | - | - | (743) | |||
Construction work in progress | (530,789) | 97,427 | - | (433,362) | |||
Nuclear fuel under capital lease | (14,148) | - | - | (14,148) | |||
Nuclear fuel | 10,090 | (21,912) | - | (11,822) | |||
TOTAL PROPERTY, PLANT AND EQUIPMENT | 179,242 | 97,889 | 252 | 277,383 | |||
Less - accumulated depreciation and amortization | 148,267 | 15,928 | - | 164,195 | |||
PROPERTY, PLANT AND EQUIPMENT - NET | 30,975 | 81,961 | 252 | 113,188 | |||
DEFERRED DEBITS AND OTHER ASSETS | |||||||
Regulatory assets: | |||||||
SFAS 109 regulatory asset - net | (25,707) | - | - | (25,707) | |||
Other regulatory assets | 139,387 | - | - | 139,387 | |||
Deferred fuel costs | 89,660 | - | - | 89,660 | |||
Long-term receivables | (1,307) | - | - | (1,307) | |||
Goodwill | - | - | - | - | |||
Other | 39,298 | 14,219 | 9,043 | 62,560 | |||
TOTAL | 241,331 | 14,219 | 9,043 | 264,593 | |||
TOTAL ASSETS | $ (291,650) | $ 146,563 | $ (190,136) | $ (335,223) | |||
*Totals may not foot due to rounding. | |||||||
Entergy Corporation | |||||||
Consolidating Balance Sheet | |||||||
March 31, 2006 vs December 31, 2005 | |||||||
(Dollars in thousands) | |||||||
(Unaudited) | |||||||
U.S. Utilities/ Parent & Other | Competitive Businesses | Eliminations | Consolidated | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||
CURRENT LIABILITIES | |||||||
Currently maturing long-term debt | $ 346 | $ - | $ - | $ 346 | |||
Notes payable: | |||||||
Associated companies | 454,330 | 66,019 | (520,349) | - | |||
Other | (40,000) | - | - | (40,000) | |||
Account payable: | |||||||
Associated companies | (9,607) | 1,318 | 8,289 | - | |||
Other | (652,506) | (38,052) | - | (690,558) | |||
Customer deposits | 8,048 | (162) | - | 7,886 | |||
Taxes accrued | (27,290) | 63,257 | - | 35,967 | |||
Accumulated deferred income taxes | (47,765) | - | - | (47,765) | |||
Nuclear refueling outage costs | 3,553 | - | - | 3,553 | |||
Interest accrued | (20,158) | 3,297 | - | (16,861) | |||
Obligations under capital leases | 7,606 | - | - | 7,606 | |||
Other | 63,207 | (188,941) | - | (125,734) | |||
TOTAL | (260,236) | (93,264) | (512,060) | (865,560) | |||
NON-CURRENT LIABILITIES | |||||||
Accumulated deferred income taxes and taxes accrued | 159,196 | 112,615 | - | 271,811 | |||
Accumulated deferred investment tax credits | (4,466) | - | - | (4,466) | |||
Obligations under capital leases | (25,331) | - | - | (25,331) | |||
Other regulatory liabilities | 24,211 | - | - | 24,211 | |||
Decommissioning and retirement cost liabilities | 21,326 | 13,227 | - | 34,553 | |||
Transition to competition | (3) | - | - | (3) | |||
Regulatory reserves | (1,379) | - | - | (1,379) | |||
Accumulated provisions | 482 | (1,038) | - | (556) | |||
Long-term debt | (160,720) | 4,908 | 256,250 | 100,438 | |||
Preferred stock with sinking fund | (2,250) | - | - | (2,250) | |||
Other | (82,697) | (174,798) | 20,395 | (237,100) | |||
TOTAL | (71,631) | (45,086) | 276,645 | 159,928 | |||
Preferred stock without sinking fund | 74,888 | 47 | - | 74,935 | |||
SHAREHOLDERS' EQUITY | |||||||
Common stock, $.01 par value, authorized 500,000,000 shares; | |||||||
issued 248,174,087 shares in 2006 and 2005 | - | - | - | - | |||
Paid-in capital | (3,851) | 8,651 | (6,400) | (1,600) | |||
Retained earnings | (52,171) | 81,982 | 51,679 | 81,490 | |||
Accumulated other comprehensive income (loss) | 580 | 194,233 | - | 194,813 | |||
Less - treasury stock, at cost | (20,771) | - | - | (20,771) | |||
TOTAL | (34,671) | 284,866 | 45,279 | 295,474 | |||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ (291,650) | $ 146,563 | $ (190,136) | $ (335,223) | |||
*Totals may not foot due to rounding. | |||||||
Entergy Corporation | ||||||||
Consolidating Income Statement | ||||||||
Three Months Ended March 31, 2006 | ||||||||
(Dollars in thousands) | ||||||||
(Unaudited) | ||||||||
U.S. Utilities/ Parent & Other | Competitive Businesses | Eliminations | Consolidated | |||||
OPERATING REVENUES | ||||||||
Domestic electric | $ 2,093,604 | $ - | $ (671) | $ 2,092,933 | ||||
Natural gas | 37,415 | - | - | 37,415 | ||||
Competitive businesses | 10,219 | 444,479 | (17,015) | 437,683 | ||||
Total | 2,141,238 | 444,479 | (17,686) | 2,568,031 | ||||
OPERATING EXPENSES | ||||||||
Operating and Maintenance: | ||||||||
Fuel, fuel related expenses, and gas purchased for resale | 781,675 | 58,496 | - | 840,171 | ||||
Purchased power | 469,129 | 9,328 | (17,087) | 461,370 | ||||
Nuclear refueling outage expenses | 19,835 | 22,158 | - | 41,993 | ||||
Other operation and maintenance | 351,599 | 178,544 | (713) | 529,430 | ||||
Decommissioning | 20,177 | 15,419 | - | 35,596 | ||||
Taxes other than income taxes | 86,279 | 17,059 | - | 103,338 | ||||
Depreciation and amortization | 187,570 | 17,818 | - | 205,388 | ||||
Other regulatory charges (credits) - net | (44,018) | - | - | (44,018) | ||||
Total | 1,872,246 | 318,822 | (17,800) | 2,173,268 | ||||
OPERATING INCOME | 268,992 | 125,657 | 114 | 394,763 | ||||
OTHER INCOME (DEDUCTIONS) | ||||||||
Allowance for equity funds used during construction | 15,459 | - | - | 15,459 | ||||
Interest and dividend income | 39,036 | 29,068 | (24,273) | 43,831 | ||||
Equity in earnings (loss) of unconsolidated equity affiliates | 6,366 | (2,780) | - | 3,586 | ||||
Miscellaneous - net | (5,428) | (665) | (114) | (6,207) | ||||
Total | 55,433 | 25,623 | (24,387) | 56,669 | ||||
INTEREST AND OTHER CHARGES | ||||||||
Interest on long-term debt | 118,604 | 1,877 | - | 120,481 | ||||
Other interest - net | 23,677 | 17,843 | (24,259) | 17,261 | ||||
Allowance for borrowed funds used during construction | (9,045) | - | - | (9,045) | ||||
Total | 133,236 | 19,720 | (24,259) | 128,697 | ||||
INCOME FROM CONTINUING OPERATIONS | ||||||||
BEFORE INCOME TAXES | 191,189 | 131,560 | (14) | 322,735 | ||||
Income taxes | 68,554 | 50,276 | - | 118,830 | ||||
INCOME FROM CONTINUING OPERATIONS | 122,635 | 81,284 | (14) | 203,905 | ||||
LOSS FROM DISCONTINUED OPERATIONS (net of taxes of $ (1,204)) | (2,239) | - | - | (2,239) | ||||
CONSOLIDATED NET INCOME | 120,396 | 81,284 | (14) | 201,666 | ||||
Preferred dividend requirements and other | 7,183 | 869 | (14) | 8,038 | ||||
EARNINGS APPLICABLE TO COMMON STOCK | $ 113,213 | $ 80,415 | $ - | $ 193,628 | ||||
EARNINGS PER AVERAGE COMMON SHARE (from continuing operations): | ||||||||
BASIC | $0.55 | $0.39 | $0.94 | |||||
DILUTED | $0.55 | $0.38 | $0.93 | |||||
LOSS PER AVERAGE COMMON SHARE (from discontinued operations): | ||||||||
BASIC | ($0.01) | - | ($0.01) | |||||
DILUTED | ($0.01) | - | ($0.01) | |||||
EARNINGS PER AVERAGE COMMON SHARE: | ||||||||
BASIC | $0.54 | $0.39 | $0.93 | |||||
DILUTED | $0.54 | $0.38 | $0.92 | |||||
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING: | ||||||||
BASIC | 207,732,341 | |||||||
DILUTED | 211,374,512 | |||||||
*Totals may not foot due to rounding. | ||||||||
Entergy Corporation | ||||||||
Consolidating Income Statement | ||||||||
Three Months Ended March 31, 2005 | ||||||||
(Dollars in thousands) | ||||||||
(Unaudited) | ||||||||
U.S. Utilities/ Parent & Other | Competitive Businesses | Eliminations | Consolidated | |||||
OPERATING REVENUES | ||||||||
Domestic electric | $ 1,702,485 | $ - | $ (468) | $ 1,702,017 | ||||
Natural gas | 26,855 | - | - | 26,855 | ||||
Competitive businesses | 9,926 | 387,977 | (16,593) | 381,310 | ||||
Total | 1,739,266 | 387,977 | (17,061) | 2,110,182 | ||||
OPERATING EXPENSES | ||||||||
Operating and Maintenance: | ||||||||
Fuel, fuel related expenses, and gas purchased for resale | 447,101 | 51,885 | - | 498,986 | ||||
Purchased power | 441,498 | 6,918 | (16,793) | 431,623 | ||||
Nuclear refueling outage expenses | 16,806 | 23,005 | - | 39,811 | ||||
Other operation and maintenance | 342,891 | 161,131 | (382) | 503,639 | ||||
Decommissioning | 22,256 | 14,742 | - | 36,998 | ||||
Taxes other than income taxes | 78,464 | 12,152 | - | 90,616 | ||||
Depreciation and amortization | 197,412 | 18,109 | - | 215,521 | ||||
Other regulatory charges (credits) - net | (18,020) | - | - | (18,020) | ||||
Total | 1,528,408 | 287,942 | (17,175) | 1,799,174 | ||||
OPERATING INCOME | 210,858 | 100,036 | 114 | 311,008 | ||||
OTHER INCOME (DEDUCTIONS) | ||||||||
Allowance for equity funds used during construction | 12,602 | - | - | 12,602 | ||||
Interest and dividend income | 24,651 | 23,376 | (17,409) | 30,618 | ||||
Equity in earnings (loss) of unconsolidated equity affiliates | 4,771 | (1,469) | - | 3,302 | ||||
Miscellaneous - net | (2,578) | 28,623 | (114) | 25,931 | ||||
Total | 39,446 | 50,530 | (17,523) | 72,453 | ||||
INTEREST AND OTHER CHARGES | ||||||||
Interest on long-term debt | 103,742 | 3,524 | - | 107,266 | ||||
Other interest - net | 14,528 | 14,352 | (17,395) | 11,485 | ||||
Allowance for borrowed funds used during construction | (7,277) | - | - | (7,277) | ||||
Total | 110,993 | 17,876 | (17,395) | 111,474 | ||||
INCOME FROM CONTINUING OPERATIONS | ||||||||
BEFORE INCOME TAXES | 139,311 | 132,690 | (14) | 271,987 | ||||
Income taxes | 40,667 | 51,575 | - | 92,242 | ||||
INCOME FROM CONTINUING OPERATIONS | 98,644 | 81,115 | (14) | 179,745 | ||||
LOSS FROM DISCONTINUED OPERATIONS (net of taxes of ($732)) | (1,366) | - | - | (1,366) | ||||
CONSOLIDATED NET INCOME | 97,278 | 81,115 | (14) | 178,379 | ||||
Preferred dividend requirements and other | 5,528 | 869 | (14) | 6,383 | ||||
EARNINGS APPLICABLE TO COMMON STOCK | $ 91,750 | $ 80,246 | $ - | $ 171,996 | ||||
EARNINGS PER AVERAGE COMMON SHARE (from continuing operations): | ||||||||
BASIC | $0.44 | $0.37 | $0.81 | |||||
DILUTED | $0.43 | $0.37 | $0.80 | |||||
LOSS PER AVERAGE COMMON SHARE (from discontinued operations): | ||||||||
BASIC | ($0.01) | - | ($0.01) | |||||
DILUTED | ($0.01) | - | ($0.01) | |||||
EARNINGS PER AVERAGE COMMON SHARE: | ||||||||
BASIC | $0.43 | $0.37 | $0.80 | |||||
DILUTED | $0.42 | $0.37 | $0.79 | |||||
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING: | ||||||||
BASIC | 214,128,023 | |||||||
DILUTED | 218,633,202 | |||||||
*Totals may not foot due to rounding. |
Entergy Corporation | ||||||||
Consolidating Income Statement | ||||||||
Three Months Ended March 31, 2006 vs. 2005 | ||||||||
(Dollars in thousands) | ||||||||
(Unaudited) | ||||||||
U.S. Utilities/ Parent & Other | Competitive Businesses | Eliminations | Consolidated | |||||
OPERATING REVENUES | ||||||||
Domestic electric | $ 391,119 | $ - | $ (203) | $ 390,916 | ||||
Natural gas | 10,560 | - | - | 10,560 | ||||
Competitive businesses | 293 | 56,502 | (422) | 56,373 | ||||
Total | 401,972 | 56,502 | (625) | 457,849 | ||||
OPERATING EXPENSES | ||||||||
Operating and Maintenance: | ||||||||
Fuel, fuel related expenses, and gas purchased for resale | 334,574 | 6,611 | - | 341,185 | ||||
Purchased power | 27,631 | 2,410 | (294) | 29,747 | ||||
Nuclear refueling outage expenses | 3,029 | (847) | - | 2,182 | ||||
Other operation and maintenance | 8,708 | 17,414 | (331) | 25,791 | ||||
Decommissioning | (2,079) | 677 | - | (1,402) | ||||
Taxes other than income taxes | 7,815 | 4,907 | - | 12,722 | ||||
Depreciation and amortization | (9,842) | (291) | - | (10,133) | ||||
Other regulatory charges (credits )- net | (25,998) | - | - | (25,998) | ||||
Total | 343,838 | 30,881 | (625) | 374,094 | ||||
OPERATING INCOME | 58,134 | 25,622 | - | 83,755 | ||||
OTHER INCOME (DEDUCTIONS) | ||||||||
Allowance for equity funds used during construction | 2,857 | - | - | 2,857 | ||||
Interest and dividend income | 14,385 | 5,692 | (6,864) | 13,213 | ||||
Equity in earnings (loss) of unconsolidated equity affiliates | 1,595 | (1,311) | - | 284 | ||||
Miscellaneous - net | (2,850) | (29,288) | - | (32,138) | ||||
Total | 15,987 | (24,907) | (6,864) | (15,784) | ||||
INTEREST AND OTHER CHARGES | ||||||||
Interest on long-term debt | 14,862 | (1,647) | - | 13,215 | ||||
Other interest - net | 9,149 | 3,491 | (6,864) | 5,776 | ||||
Allowance for borrowed funds used during construction | (1,768) | - | - | (1,768) | ||||
Total | 22,243 | 1,844 | (6,864) | 17,223 | ||||
INCOME FROM CONTINUING OPERATIONS | ||||||||
BEFORE INCOME TAXES | 51,878 | (1,130) | - | 50,748 | ||||
Income taxes | 27,887 | (1,299) | - | 26,588 | ||||
INCOME FROM CONTINUING OPERATIONS | 23,991 | 170 | - | 24,160 | ||||
LOSS FROM DISCONTINUED OPERATIONS (net of taxes) | (873) | - | - | (873) | ||||
CONSOLIDATED NET INCOME | 23,118 | 170 | - | 23,287 | ||||
Preferred dividend requirements and other | 1,655 | - | - | 1,655 | ||||
EARNINGS APPLICABLE TO COMMON STOCK | $ 21,463 | $ 170 | $ - | $ 21,632 | ||||
EARNINGS PER AVERAGE COMMON SHARE (from continuing operations): | ||||||||
BASIC | $0.11 | $0.02 | $0.13 | |||||
DILUTED | $0.12 | $0.01 | $0.13 | |||||
LOSS PER AVERAGE COMMON SHARE (from discontinued operations): | ||||||||
BASIC | - | - | - | |||||
DILUTED | - | - | - | |||||
EARNINGS PER AVERAGE COMMON SHARE: | ||||||||
BASIC | $0.11 | $0.02 | $0.13 | |||||
DILUTED | $0.12 | $0.01 | $0.13 | |||||
*Totals may not foot due to rounding. |
Entergy Corporation | ||||||||
Consolidating Income Statement | ||||||||
Twelve Months Ended March 31, 2006 | ||||||||
(Dollars in thousands) | ||||||||
(Unaudited) | ||||||||
U.S. Utilities/ Parent & Other | Competitive Businesses | Eliminations | Consolidated | |||||
OPERATING REVENUES | ||||||||
Domestic electric | $ 8,840,402 | $ - | $ (2,655) | $ 8,837,748 | ||||
Natural gas | 88,220 | - | - | 88,220 | ||||
Competitive businesses | 46,292 | 1,669,783 | (77,949) | 1,638,126 | ||||
Total | 8,974,914 | 1,669,783 | (80,604) | 10,564,094 | ||||
OPERATING EXPENSES | ||||||||
Operating and Maintenance: | ||||||||
Fuel, fuel related expenses, and gas purchased for resale | 2,276,462 | 240,739 | - | 2,517,201 | ||||
Purchased power | 2,587,168 | 42,503 | (78,676) | 2,550,996 | ||||
Nuclear refueling outage expenses | 76,995 | 87,841 | - | 164,835 | ||||
Provision for turbine commitments, asset impairments | ||||||||
and restructuring charges | - | - | - | - | ||||
Other operation and maintenance | 1,467,304 | 683,073 | (2,384) | 2,147,994 | ||||
Decommissioning | 81,831 | 59,888 | - | 141,718 | ||||
Taxes other than income taxes | 333,581 | 61,663 | - | 395,243 | ||||
Depreciation and amortization | 779,812 | 66,431 | - | 846,243 | ||||
Other regulatory charges (credits) - net | (75,880) | - | - | (75,880) | ||||
Total | 7,527,273 | 1,242,138 | (81,060) | 8,688,350 | ||||
OPERATING INCOME | 1,447,641 | 427,645 | 456 | 1,875,744 | ||||
OTHER INCOME (DEDUCTIONS) | ||||||||
Allowance for equity funds used during construction | 48,594 | - | - | 48,594 | ||||
Interest and dividend income | 142,883 | 101,212 | (80,403) | 163,693 | ||||
Equity in earnings (loss) of unconsolidated equity affiliates | 12,060 | (10,788) | - | 1,272 | ||||
Miscellaneous - net | (21,884) | 4,450 | (456) | (17,893) | ||||
Total | 181,653 | 94,874 | (80,859) | 195,665 | ||||
INTEREST AND OTHER CHARGES | ||||||||
Interest on long-term debt | 441,917 | 11,632 | - | 453,549 | ||||
Other interest - net | 92,019 | 58,750 | (80,348) | 70,420 | ||||
Allowance for borrowed funds used during construction | (31,144) | - | - | (31,144) | ||||
Total | 502,792 | 70,382 | (80,348) | 492,825 | ||||
INCOME FROM CONTINUING OPERATIONS | ||||||||
BEFORE INCOME TAXES | 1,126,502 | 452,137 | (55) | 1,578,584 | ||||
Income taxes | 431,559 | 154,314 | - | 585,873 | ||||
INCOME FROM CONTINUING OPERATIONS | 694,943 | 297,823 | (55) | 992,711 | ||||
LOSS FROM DISCONTINUED OPERATIONS (net of taxes of $ (24,523)) | (45,666) | - | - | (45,666) | ||||
CONSOLIDATED NET INCOME | 649,277 | 297,823 | (55) | 947,045 | ||||
Preferred dividend requirements and other | 23,662 | 3,475 | (55) | 27,082 | ||||
EARNINGS APPLICABLE TO COMMON STOCK | $ 625,615 | $ 294,348 | $ - | $ 919,963 | ||||
EARNINGS PER AVERAGE COMMON SHARE (from continuing operations): | ||||||||
BASIC | $3.22 | $1.41 | $4.63 | |||||
DILUTED | $3.16 | $1.38 | $4.54 | |||||
LOSS PER AVERAGE COMMON SHARE (from discontinued operations): | ||||||||
BASIC | ($0.22) | - | ($0.22) | |||||
DILUTED | ($0.21) | - | ($0.21) | |||||
EARNINGS PER AVERAGE COMMON SHARE: | ||||||||
BASIC | $3.00 | $1.41 | $4.41 | |||||
DILUTED | $2.95 | $1.38 | $4.33 | |||||
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING: | ||||||||
BASIC | 208,564,870 | |||||||
DILUTED | 212,618,629 | |||||||
*Totals may not foot due to rounding. | ||||||||
Entergy Corporation | ||||||||
Consolidating Income Statement | ||||||||
Twelve Months Ended March 31, 2005 | ||||||||
(Dollars in thousands) | ||||||||
(Unaudited) | ||||||||
U.S. Utilities/ Parent & Other | Competitive Businesses | Eliminations | Consolidated | |||||
OPERATING REVENUES | ||||||||
Domestic electric | $ 7,688,475 | $ - | $ (1,828) | $ 7,686,647 | ||||
Natural gas | 61,318 | - | - | 61,318 | ||||
Competitive businesses | 46,709 | 1,558,262 | (64,055) | 1,540,916 | ||||
Total | 7,796,502 | 1,558,262 | (65,883) | 9,288,881 | ||||
OPERATING EXPENSES | ||||||||
Operating and Maintenance: | ||||||||
Fuel, fuel related expenses, and gas purchased for resale | 2,032,587 | 215,690 | - | 2,248,277 | ||||
Purchased power | 1,807,772 | 42,603 | (64,794) | 1,785,581 | ||||
Nuclear refueling outage expenses | 67,296 | 96,980 | - | 164,276 | ||||
Provision for turbine commitments, asset impairments | ||||||||
and restructuring charges | - | 55,000 | - | 55,000 | ||||
Other operation and maintenance | 1,507,329 | 633,763 | (1,850) | 2,139,243 | ||||
Decommissioning | 90,064 | 58,115 | - | 148,179 | ||||
Taxes other than income taxes | 309,570 | 55,006 | - | 364,576 | ||||
Depreciation and amortization | 811,449 | 64,754 | - | 876,203 | ||||
Other regulatory charges (credits) - net | (87,162) | - | - | (87,162) | ||||
Total | 6,538,905 | 1,221,911 | (66,644) | 7,694,173 | ||||
OPERATING INCOME | 1,257,597 | 336,351 | 761 | 1,594,708 | ||||
OTHER INCOME (DEDUCTIONS) | ||||||||
Allowance for equity funds used during construction | 43,561 | - | - | 43,561 | ||||
Interest and dividend income | 88,490 | 82,688 | (59,448) | 111,730 | ||||
Equity in earnings (loss) of unconsolidated equity affiliates | 25,002 | (100,013) | - | (75,011) | ||||
Miscellaneous - net | 26,694 | (5,219) | (760) | 20,715 | ||||
Total | 183,747 | (22,544) | (60,208) | 100,995 | ||||
INTEREST AND OTHER CHARGES | ||||||||
Interest on long-term debt | 423,927 | 15,771 | - | 439,698 | ||||
Other interest - net | 49,034 | 55,467 | (59,379) | 45,122 | ||||
Allowance for borrowed funds used during construction | (26,842) | - | - | (26,842) | ||||
Total | 446,119 | 71,238 | (59,379) | 457,978 | ||||
INCOME FROM CONTINUING OPERATIONS | ||||||||
BEFORE INCOME TAXES | 995,225 | 242,569 | (68) | 1,237,725 | ||||
Income taxes | 347,641 | (8,710) | - | 338,931 | ||||
INCOME FROM CONTINUING OPERATIONS | 647,584 | 251,279 | (68) | 898,794 | ||||
LOSS FROM DISCONTINUED OPERATIONS (net of taxes of $28) | (1,107) | - | - | (1,107) | ||||
CONSOLIDATED NET INCOME | 646,477 | 251,279 | (68) | 897,687 | ||||
Preferred dividend requirements and other | 22,231 | 1,165 | (68) | 23,328 | ||||
EARNINGS APPLICABLE TO COMMON STOCK | $ 624,246 | $ 250,114 | $ - | $ 874,359 | ||||
EARNINGS PER AVERAGE COMMON SHARE (from continuing operations): | ||||||||
BASIC | $2.81 | $1.12 | $3.93 | |||||
DILUTED | $2.76 | $1.10 | $3.86 | |||||
LOSS PER AVERAGE COMMON SHARE (from discontinued operations): | ||||||||
BASIC | ($0.01) | - | ($0.01) | |||||
DILUTED | ($0.01) | - | ($0.01) | |||||
EARNINGS PER AVERAGE COMMON SHARE: | ||||||||
BASIC | $2.80 | $1.12 | $3.92 | |||||
DILUTED | $2.75 | $1.10 | $3.85 | |||||
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING: | ||||||||
BASIC | 222,875,550 | |||||||
DILUTED | 227,063,068 | |||||||
*Totals may not foot due to rounding. |
Entergy Corporation | ||||||||
Consolidating Income Statement | ||||||||
Twelve Months Ended March 31, 2006 vs. 2005 | ||||||||
(Dollars in thousands) | ||||||||
(Unaudited) | ||||||||
U.S. Utilities/ Parent & Other | Competitive Businesses | Eliminations | Consolidated | |||||
OPERATING REVENUES | ||||||||
Domestic electric | $ 1,151,927 | $ - | $ (827) | $ 1,151,101 | ||||
Natural gas | 26,902 | - | - | 26,902 | ||||
Competitive businesses | (417) | 111,521 | (13,894) | 97,210 | ||||
Total | 1,178,412 | 111,521 | (14,721) | 1,275,213 | ||||
OPERATING EXPENSES | ||||||||
Operating and Maintenance: | ||||||||
Fuel, fuel related expenses, and gas purchased for resale | 243,875 | 25,049 | - | 268,924 | ||||
Purchased power | 779,396 | (100) | (13,882) | 765,415 | ||||
Nuclear refueling outage expenses | 9,699 | (9,139) | - | 559 | ||||
Provision for turbine commitments, asset impairments | ||||||||
and restructuring charges | - | (55,000) | - | (55,000) | ||||
Other operation and maintenance | (40,025) | 49,310 | (534) | 8,751 | ||||
Decommissioning | (8,233) | 1,773 | - | (6,461) | ||||
Taxes other than income taxes | 24,011 | 6,657 | - | 30,667 | ||||
Depreciation and amortization | (31,637) | 1,677 | - | (29,960) | ||||
Other regulatory charges (credits) - net | 11,282 | - | - | 11,282 | ||||
Total | 988,368 | 20,227 | (14,416) | 994,177 | ||||
OPERATING INCOME | 190,044 | 91,294 | (305) | 281,035 | ||||
OTHER INCOME (DEDUCTIONS) | ||||||||
Allowance for equity funds used during construction | 5,033 | - | - | 5,033 | ||||
Interest and dividend income | 54,393 | 18,524 | (20,955) | 51,963 | ||||
Equity in earnings (loss) of unconsolidated equity affiliates | (12,942) | 89,225 | - | 76,283 | ||||
Miscellaneous - net | (48,578) | 9,669 | 304 | (38,608) | ||||
Total | (2,094) | 117,418 | (20,651) | 94,670 | ||||
INTEREST AND OTHER CHARGES | ||||||||
Interest on long-term debt | 17,990 | (4,139) | - | 13,851 | ||||
Other interest - net | 42,985 | 3,283 | (20,969) | 25,298 | ||||
Allowance for borrowed funds used during construction | (4,302) | - | - | (4,302) | ||||
Total | 56,673 | (856) | (20,969) | 34,847 | ||||
INCOME FROM CONTINUING OPERATIONS | ||||||||
BEFORE INCOME TAXES | 131,277 | 209,568 | 13 | 340,858 | ||||
Income taxes | 83,918 | 163,024 | - | 246,942 | ||||
INCOME FROM CONTINUING OPERATIONS | 47,359 | 46,544 | 13 | 93,916 | ||||
LOSS FROM DISCONTINUED OPERATIONS (net of taxes) | (44,559) | - | - | (44,559) | ||||
CONSOLIDATED NET INCOME | 2,800 | 46,544 | 13 | 49,357 | ||||
Preferred dividend requirements and other | 1,431 | 2,310 | 13 | 3,754 | ||||
EARNINGS APPLICABLE TO COMMON STOCK | $ 1,369 | $ 44,234 | $ - | $ 45,603 | ||||
EARNINGS PER AVERAGE COMMON SHARE (from continuing operations): | ||||||||
BASIC | $0.41 | $0.29 | $0.70 | |||||
DILUTED | $0.40 | $0.28 | $0.68 | |||||
LOSS PER AVERAGE COMMON SHARE (from discontinued operations): | ||||||||
BASIC | ($0.21) | - | ($0.21) | |||||
DILUTED | ($0.20) | - | ($0.20) | |||||
EARNINGS PER AVERAGE COMMON SHARE: | ||||||||
BASIC | $0.20 | $0.29 | $0.49 | |||||
DILUTED | $0.20 | $0.28 | $0.48 | |||||
*Totals may not foot due to rounding. |
Entergy Corporation | ||||||
Consolidated Cash Flow Statement | ||||||
Three Months Ended March 31, 2006 vs. 2005 | ||||||
(Dollars in thousands) | ||||||
(Unaudited) | ||||||
2006 | 2005 | Variance | ||||
OPERATING ACTIVITIES | ||||||
Consolidated net income | $201,667 | $178,379 | $23,288 | |||
Adjustments to reconcile consolidated net income to net cash flow | ||||||
provided by operating activities: | ||||||
Reserve for regulatory adjustments | 42,162 | 16,498 | 25,664 | |||
Other regulatory credits - net | (44,018) | (18,020) | (25,998) | |||
Depreciation, amortization, and decommissioning | 241,807 | 253,089 | (11,282) | |||
Deferred income taxes and investment tax credits | (52,261) | 23,878 | (76,139) | |||
Equity in earnings (loss) of unconsolidated equity affiliates - net of dividends | (1,412) | (2,702) | 1,290 | |||
Changes in working capital: | ||||||
Receivables | 328,019 | 134,939 | 193,080 | |||
Fuel inventory | (28,607) | (3,273) | (25,334) | |||
Accounts payable | (256,420) | (165,269) | (91,151) | |||
Taxes accrued | 459,003 | 23,070 | 435,933 | |||
Interest accrued | (16,861) | (9,804) | (7,057) | |||
Deferred fuel | 199,619 | 69,825 | 129,794 | |||
Other working capital accounts | 140,795 | (96,149) | 236,944 | |||
Provision for estimated losses and reserves | 15,029 | 11,116 | 3,913 | |||
Changes in other regulatory assets | (75,674) | 11,995 | (87,669) | |||
Other | (140,333) | 69,193 | (209,526) | |||
Net cash flow provided by operating activities | 1,012,515 | 496,765 | 515,750 | |||
INVESTING ACTIVITIES | ||||||
Construction/capital expenditures | (664,178) | (271,829) | (392,349) | |||
Allowance for equity funds used during construction | 15,459 | 12,602 | 2,857 | |||
Nuclear fuel purchases | (91,027) | (103,606) | 12,579 | |||
Proceeds from sale/leaseback of nuclear fuel | 8,827 | 82,658 | (73,831) | |||
Payment for purchase of plant | (88,199) | - | (88,199) | |||
Investment in nonutility properties | - | (1,476) | 1,476 | |||
Decrease (increase) in other investments | 12,340 | 37,280 | (24,940) | |||
Purchase of other temporary investments | - | (1,437,725) | 1,437,725 | |||
Liquidation of other temporary investments | - | 1,148,725 | (1,148,725) | |||
Proceeds from nuclear decommissioning trust fund sales | 283,874 | 227,290 | 56,584 | |||
Investment in nuclear decommissioning trust funds | (312,417) | (252,371) | (60,046) | |||
Other regulatory investments | (23,448) | - | (23,448) | |||
Net cash flow used in investing activities | (858,769) | (558,452) | (300,317) | |||
FINANCING ACTIVITIES | ||||||
Proceeds from the issuance of: | ||||||
Long-term debt | 748,584 | 705,551 | 43,033 | |||
Preferred stock | 73,354 | - | 73,354 | |||
Common stock and treasury stock | 11,805 | 64,280 | (52,475) | |||
Retirement of long-term debt | (655,649) | (336,314) | (319,335) | |||
Repurchase of common stock | - | (382,593) | 382,593 | |||
Redemption of preferred stock | (2,250) | (2,250) | - | |||
Changes in credit line borrowings - net | (40,000) | (75) | (39,925) | |||
Dividends paid: | ||||||
Common stock | (112,190) | (115,504) | 3,314 | |||
Preferred stock | (7,661) | (6,409) | (1,252) | |||
Net cash flow provided by (used in) financing activities | 15,993 | (73,314) | 89,307 | |||
Effect of exchange rates on cash and cash equivalents | (173) | 44 | (217) | |||
Net increase (decrease) in cash and cash equivalents | 169,566 | (134,957) | 304,523 | |||
Cash and cash equivalents at beginning of period | 582,820 | 619,786 | (36,966) | |||
Effect of the deconsolidation of Entergy New Orleans on cash and cash equivalents | - | (7,954) | 7,954 | |||
Cash and cash equivalents at end of period | $752,386 | $476,875 | $275,511 | |||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||||||
Cash paid (received) during the period for: | ||||||
Interest - net of amount capitalized | $146,429 | $122,258 | $24,171 | |||
Income taxes | ($345,366) | $10,011 | ($355,377) | |||
Entergy Corporation | ||||||
Consolidated Cash Flow Statement | ||||||
Twelve Months Ended March 31, 2006 vs. 2005 | ||||||
(Dollars in thousands) | ||||||
(Unaudited) | ||||||
2006 | 2005 | Variance | ||||
OPERATING ACTIVITIES | ||||||
Consolidated net income | $947,045 | $897,687 | $49,358 | |||
Adjustments to reconcile consolidated net income to net cash flow | ||||||
provided by operating activities: | ||||||
Reserve for regulatory adjustments | (56,369) | 52,527 | (108,896) | |||
Other regulatory credits - net | (75,880) | (87,164) | 11,284 | |||
Depreciation, amortization, and decommissioning | 990,570 | 1,026,389 | (35,819) | |||
Deferred income taxes and investment tax credits | 550,674 | 244,996 | 305,678 | |||
Equity in earnings (loss) of unconsolidated equity affiliates - net of dividends | 5,605 | 609,624 | (604,019) | |||
Provision for asset impairments and restructuring charges | 39,767 | 55,000 | (15,233) | |||
Changes in working capital: | ||||||
Receivables | (174,271) | (83,521) | (90,750) | |||
Fuel inventory | (108,459) | (5,783) | (102,676) | |||
Accounts payable | 212,043 | 89,395 | 122,648 | |||
Taxes accrued | 263,618 | 62,165 | 201,453 | |||
Interest accrued | 8,076 | (9,579) | 17,655 | |||
Deferred fuel | (107,007) | 221,287 | (328,294) | |||
Other working capital accounts | 191,291 | (63,663) | 254,954 | |||
Provision for estimated losses and reserves | 209 | (16,666) | 16,875 | |||
Changes in other regulatory assets | (399,603) | 46,696 | (446,299) | |||
Other | (303,751) | (58,081) | (245,670) | |||
Net cash flow provided by operating activities | 1,983,558 | 2,981,309 | (997,751) | |||
INVESTING ACTIVITIES | ||||||
Construction/capital expenditures | (1,850,435) | (1,388,115) | (462,320) | |||
Allowance for equity funds used during construction | 48,593 | 43,561 | 5,032 | |||
Nuclear fuel purchases | (301,835) | (273,693) | (28,142) | |||
Proceeds from sale/leaseback of nuclear fuel | 110,572 | 141,570 | (30,998) | |||
Proceeds from sale of assets and businesses | - | 53,452 | (53,452) | |||
Payment for purchase of plant | (250,274) | - | (250,274) | |||
Investment in nonutility properties | 1,476 | (5,105) | 6,581 | |||
Decrease (increase) in other investments | (15,035) | 436,090 | (451,125) | |||
Purchase of other temporary investments | (153,300) | (2,920,725) | 2,767,425 | |||
Liquidation of other temporary investments | 630,250 | 2,510,575 | (1,880,325) | |||
Proceeds from nuclear decommissioning trust fund sales | 1,000,837 | 585,557 | 415,280 | |||
Investment in nuclear decommissioning trust funds | (1,099,870) | (679,550) | (420,320) | |||
Other regulatory investments | (413,904) | (27,971) | (385,933) | |||
Net cash flow used in investing activities | (2,292,925) | (1,524,354) | (768,571) | |||
FINANCING ACTIVITIES | ||||||
Proceeds from the issuance of: | ||||||
Long-term debt | 4,345,603 | 4,178,935 | 166,668 | |||
Preferred stock | 201,349 | - | 201,349 | |||
Common stock and treasury stock | 53,593 | 139,435 | (85,842) | |||
Retirement of long-term debt | (3,008,541) | (4,256,041) | 1,247,500 | |||
Repurchase of common stock | (495,595) | (1,372,620) | 877,025 | |||
Redemption of preferred stock | (33,719) | (3,450) | (30,269) | |||
Changes in credit line borrowings - net | (75) | (229) | 154 | |||
Dividends paid: | ||||||
Common stock | (450,194) | (443,176) | (7,018) | |||
Preferred stock | (26,724) | (23,355) | (3,369) | |||
Net cash flow provided by (used in) financing activities | 585,697 | (1,780,501) | 2,366,198 | |||
Effect of exchange rates on cash and cash equivalents | (819) | (132) | (687) | |||
Net increase (decrease) in cash and cash equivalents | 275,511 | (323,678) | 599,189 | |||
Cash and cash equivalents at beginning of period | 476,875 | 808,163 | (331,288) | |||
Effect of the deconsolidation of Entergy New Orleans on cash and cash equivalents | - | (7,610) | 7,610 | |||
Cash and cash equivalents at end of period | $752,386 | $476,875 | $275,511 | |||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||||||
Cash paid (received) during the period for: | ||||||
Interest - net of amount capitalized | $485,516 | $474,185 | $11,331 | |||
Income taxes | ($239,305) | $48,527 | ($287,832) | |||
Entergy
639 Loyola Avenue
New Orleans, LA 70113
News
Release
Date: | May 2, 2006 |
For Release: |
Immediately |
Contact: |
Yolanda Pollard (News Media) |
Michele Lopiccolo (Investor Relations) |
Exhibit 99.2
Entergy Reports First Quarter Earnings
New Orleans, La. - Entergy Corporation (NYSE:ETR) today reported first quarter 2006 as-reported earnings of $193.6 million, or 92 cents per share, compared with $172.0 million, or 79 cents per share, for first quarter 2005. On an operational basis, Entergy's first quarter 2006 earnings were $190.2 million, or 90 cents per share, compared with $173.4 million, or 80 cents per share, in first quarter 2005.
Entergy Corporation Consolidated Earnings - Reconciliation of GAAP* to non-GAAP Measures |
|||
First Quarter 2006 vs. 2005 |
|||
(Per share in U.S. $) |
First Quarter |
||
2006 |
2005 |
$ Change |
|
As-Reported Earnings |
|||
Utility, Parent & Other |
0.54 |
0.42 |
0.12 |
Entergy Nuclear |
0.39 |
0.36 |
0.03 |
Non-Nuclear Wholesale Assets |
(0.01) |
0.01 |
(0.02) |
0.92 |
0.79 |
0.13 |
|
Special Items |
0.02 |
(0.01) |
0.03 |
Operational Earnings |
0.90 |
0.80 |
0.10 |
*GAAP refers to United States generally accepted accounting principles.
Operational Earnings Highlights for First Quarter 2006
"Entergy continues to work to rebound from the devastation of last year's storms," said J. Wayne Leonard, Entergy's chief executive officer. "Constructive progress is evident across a range of operational and regulatory efforts, with more work to be done as we stay focused on delivering high quality service to our customers and strengthening our financial position and results of operations."
Other Highlights
Utility, Parent & Other
In first quarter 2006, Utility, Parent & Other recorded as-reported earnings of $113.2 million, or 54 cents per share, compared to earnings of $91.8 million, or 42 cents per share, in first quarter 2005. On an operational basis, earnings were $109.8 million, or 52 cents per share, in first quarter 2006, compared to $93.1 million, or 43 cents per share, in first quarter 2005. As-reported 2006 earnings reflect two cents per share in special items. The special items are comprised of earnings at Entergy New Orleans, Inc. of $5.6 million, or three cents per share, and an operating loss of $2.2 million, or one cent per share, from the competitive retail business in Texas. Entergy sold its customer base in the retail business in April 2006.
Entergy New Orleans' results for first quarter 2006 are being treated as a special item. As such, its results are included in Utility, Parent & Other as-reported earnings but are excluded from operational earnings. For first quarter 2005, Utility, Parent & Other results include Entergy New Orleans on both as-reported and operational bases. Also, Entergy New Orleans is de-consolidated for both first quarter 2006 and first quarter 2005 reporting purposes due to uncertainties surrounding the nature, timing, and specifics of the Entergy New Orleans bankruptcy proceedings. (On September 23, 2005 Entergy New Orleans filed a voluntary petition for reorganization under Chapter 11 of the U.S. Bankruptcy Code to protect its franchise agreement with the City of New Orleans and ensure continued progress in restoring power and gas service to New Orleans after Hurricane Katrina.) Accordingly, revenue and expense explanations that follow exclude the revenues and expenses of Entergy New Orleans.
Earnings for Utility, Parent & Other in first quarter 2006, exclusive of Entergy New Orleans, reflect rate actions over the past year, including the addition of Perryville and Attala, two highly efficient gas-fired units in retail rates, as well as improved margins on wholesale sales contracts and accretion from Entergy's share repurchase program. Partially offsetting the above factors were higher operation and maintenance expense, higher interest expense realized in connection with borrowings to pay for storm restoration costs for Hurricanes Katrina and Rita, and milder-than-normal weather. The higher operation and maintenance expense resulted from increased storm reserves and costs associated with Perryville and Attala. Also contributing to the increase in operation and maintenance expense was higher nuclear expense associated with an unplanned outage.
Entergy New Orleans' results for first quarter 2006 reflect earnings of three cents per share. In first quarter 2005, Entergy New Orleans also earned three cents per share. First quarter 2005 results reflect a normal operating environment for Entergy New Orleans where results were primarily driven by margin on sales to retail customers. However, as a result of Hurricane Katrina, and the subsequent filing by Entergy New Orleans for reorganization under Chapter 11 of the U.S. Bankruptcy Code, first quarter 2006 results reflect the ongoing impact of the hurricane as well as certain actions taken by Entergy New Orleans specific to its continuing effort to recover financially from this storm. Results for the current period include significantly lower revenues from customers due to extended outages and customer losses partially offset by lower operation and maintenance expense due to the continued focus on storm restoration rather than routine operating activities and ongoing cost reduction initiatives. In addi tion, net wholesale revenue is materially higher due to an increase in energy available for sales for resale due to the lower retail usage caused by Hurricane Katrina. Finally, current results reflect lower interest expense due to the cessation of interest accruals on first mortgage bonds as a result of an agreement among bondholders and Entergy New Orleans in the Chapter 11 bankruptcy proceeding.
Excluding Entergy New Orleans, megawatt-hour sales in the residential sector in first quarter 2006, on a weather-adjusted basis, were up two percent, compared to first quarter 2005. Commercial and governmental sales, after adjusting for weather, were up two percent, compared to the prior quarter. Industrial sales experienced a decrease of four percent in first quarter 2006, compared to the same period a year ago.
The decline in the industrial sector in first quarter 2006 reflects the storm-related impact that was concentrated in the chemical and refining industries which currently make up more than 50 percent of Entergy's industrial sales. Two large industrial customers remain out of service, with one expected to return shortly and the other by the end of second quarter 2006. High gas prices have placed some strain on the chemical and paper sectors, but large scale disruptions have not been experienced to date.
Entergy Nuclear
Entergy Nuclear earned 81.5 million, or 39 cents per share, on both as-reported and operational bases in first quarter 2006. This compares to as-reported and operational earnings of $78.0 million, or 36 cents per share, in first quarter 2005. In first quarter 2006 Entergy Nuclear had higher generation resulting from the combination of uprates and no planned refueling outage days compared to 20 days in first quarter 2005. In addition, higher pricing contributed to the improved results at Entergy Nuclear. Partially offsetting the contributions of higher generation and improved pricing was higher operation and maintenance expense due to the absence of refueling outages in the current period. Operation and maintenance expense decreases during outages as resources working the outage are deferred and subsequently amortized into expense over the next 18 to 24 months.
Non-Nuclear Wholesale Assets
Entergy's non-nuclear wholesale assets business realized a loss of $1.1 million, or one cent per share, on both as-reported and operational bases in first quarter 2006. As-reported and operational results in first quarter 2005 were $2.3 million, or one cent per share, and included the sale of SO2 allowances while there were no such sales in the current period.
Outlook
Entergy is reaffirming as-reported earnings guidance for 2006 in the range of $4.78 to $5.08 per share and operational earnings guidance of $4.50 to $4.80 per share. Earnings guidance ranges exclude Entergy New Orleans given the uncertainty that remains for this business as it works toward filing a plan of reorganization. During 2006, actual results for Entergy New Orleans are being separately identified as a special item for earnings release purposes.
Entergy continues to focus on recovery and stability in the aftermath of hurricanes that severely affected its business operations in August and September of 2005. While these storms created issues that may affect near-term financial performance, the company's long-term aspirations remain in tact. Specifically, Entergy aspires to deliver average annual earnings per share growth of five to six percent, to achieve a nine percent return on invested capital, and to continue to improve the company's overall credit quality over the long-term. The company's ability to achieve these aspirations over time will be based upon a combination of factors. These include, but are not limited to, intrinsic growth, the recovery of storm-related restoration costs, the return of customers and load to portions of the Entergy service territory that have been severely damaged and further impacted by new flood maps and more stringent building codes, and the amount of cash that is available for capital deployment in investments, s hare repurchases, dividends or debt retirement.
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 these statements. Some of those factors include, but are not limited to the risk factors discussed in our Form 10-K as well as the foll owing factors: resolution of pending and future rate cases and negotiations, including various performance-based rate discussions and implementation of new Texas legislation, and other proceedings, including those related to Entergy's System Agreement, Entergy's utility supply plan, recovery of storm costs, and recovery of fuel and purchased power costs, 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, the ability to hedge, sell power forward or otherwise reduce the market price risk associated with those facilities, including the Non-Utility Nuclear plants, and the prices and availability of fuel and power Entergy must purchase for its utility customers, and Entergy's ability to meet credit support requirements for fuel and power supply contracts, Entergy's ability to develop and execute on a poi nt 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, changes in general corporate ratings, and changes in the rating agencies' ratings criteria, changes in inflation, interest rates, and foreign currency exchange rates, Entergy's ability to purchase and sell assets at attractive prices and on other attractive terms, volatility and changes in markets for electricity, natural gas, uranium, and other energy-related commodities, changes in utility regulation, including the beginning or end of retail and wholesale competition, the ability to recover net utility assets and other potential stranded costs, the establishment of a regional transmission organization that inc ludes Entergy's utility service territory, and the application of market power criteria by the Federal Energy Regulatory Commission, changes in regulation of nuclear generation facilities and nuclear materials and fuel, including possible shutdown of nuclear generating facilities, particularly those in the northeastern United States, uncertainty regarding the establishment of interim or permanent sites for spent nuclear fuel storage and disposal, resolution of pending or future applications for license extensions or modifications of nuclear generating facilities, changes in law resulting from the new federal energy legislation, including the effects of the Public Utilities Holding Company Act of 1935 repeal, changes in environmental, tax, and other laws, including requirements for reduced emissions of sulfur, nitrogen, carbon, mercury, and other substances, the economic climate, particularly growth in Entergy's service territory, variations in weather and the occurrence of hurricanes and other storms and dis asters, including uncertainties associated with efforts to remediate the effects of Hurricanes Katrina and Rita and recovery of costs associated with restoration including Entergy's ability to obtain financial assistance from governmental authorities in connection with these storms, the outcome of the Chapter 11 bankruptcy proceeding of Entergy New Orleans, Inc. and the impact of this proceeding on other Entergy companies, advances in technology, the potential effects of threatened or actual terrorism and war, the effects of Entergy's strategies to reduce tax payments, the effects of litigation and government investigations, changes in accounting standards, corporate governance, and securities law requirements, Entergy's ability to attract and retain talented management and directors.
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 |
|||
(Per share in U.S. $) |
|||
First Quarter |
|||
2006 |
2005 |
Change |
|
As-Reported |
|||
Utility, Parent & Other |
0.54 |
0.42 |
0.12 |
Entergy Nuclear |
0.39 |
0.36 |
0.03 |
Non-Nuclear Wholesale Assets |
(0.01) |
0.01 |
(0.02) |
Consolidated As-Reported Earnings |
0.92 |
0.79 |
0.13 |
Less Special Items |
|||
Utility, Parent & Other |
0.02 |
(0.01) |
0.03 |
Entergy Nuclear |
- |
- |
- |
Non-Nuclear Wholesale Assets |
- |
- |
- |
Consolidated Special Items |
0.02 |
(0.01) |
0.03 |
Operational |
|||
Utility, Parent & Other |
0.52 |
0.43 |
0.09 |
Entergy Nuclear |
0.39 |
0.36 |
0.03 |
Non-Nuclear Wholesale Assets |
(0.01) |
0.01 |
(0.02) |
Consolidated Operational Earnings |
0.90 |
0.80 |
0.10 |
Entergy Corporation |
|||||
Consolidated Income Statement |
|||||
Three Months Ended March 31 |
|||||
(in thousands) |
|||||
2006 |
2005 |
% Inc/(Dec) |
|||
(unaudited) |
|||||
Operating Revenues: |
|||||
Domestic electric |
$2,092,933 |
$1,702,017 |
23.0 |
||
Natural gas |
37,415 |
26,855 |
39.3 |
||
Competitive businesses |
437,683 |
381,310 |
14.8 |
||
Total |
2,568,031 |
2,110,182 |
21.7 |
||
Operating Expenses: |
|||||
Operation and maintenance: |
|||||
Fuel, fuel-related expenses, and gas purchased for resale |
840,171 |
498,986 |
68.4 |
||
Purchased power |
461,370 |
431,623 |
6.9 |
||
Nuclear refueling outage expenses |
41,993 |
39,811 |
5.5 |
||
Other operation and maintenance |
529,430 |
503,639 |
5.1 |
||
Decommissioning |
35,596 |
36,998 |
(3.8) |
||
Taxes other than income taxes |
103,338 |
90,616 |
14.0 |
||
Depreciation and amortization |
205,388 |
215,521 |
(4.7) |
||
Other regulatory (credits) - - net |
(44,018) |
(18,020) |
144.3 |
||
Total |
2,173,268 |
1,799,174 |
20.8 |
||
Operating Income |
394,763 |
311,008 |
26.9 |
||
Other Income: |
|||||
Allowance for equity funds used during construction |
15,459 |
12,602 |
22.7 |
||
Interest and dividend income |
43,831 |
30,618 |
43.2 |
||
Equity in earnings (loss) of unconsolidated equity affiliates |
3,586 |
3,302 |
8.6 |
||
Miscellaneous - net |
(6,207) |
25,931 |
(123.9) |
||
Total |
56,669 |
72,453 |
(21.8) |
||
Interest and Other Charges: |
|||||
Interest on long-term debt |
120,481 |
107,266 |
12.3 |
||
Other interest - net |
17,261 |
11,485 |
50.3 |
||
Allowance for borrowed funds used during construction |
(9,045) |
(7,277) |
24.3 |
||
Total |
128,697 |
111,474 |
15.5 |
||
Income From Continuing Operations Before Income Taxes |
322,735 |
271,987 |
18.7 |
||
Income Taxes |
118,830 |
92,242 |
28.8 |
||
Income From Continuing Operations |
203,905 |
179,745 |
13.4 |
||
Loss From Discontinued Operations (net of taxes of ($17,995) and ($399)) |
(2,239) |
(1,366) |
63.9 |
||
Consolidated Net Income |
201,666 |
178,379 |
13.1 |
||
Preferred dividend requirements of subsidiaries and other |
8,038 |
6,383 |
25.9 |
||
Earnings Applicable to Common Stock |
$193,628 |
$171,996 |
12.6 |
||
Earnings Per Average Common Share (from continuing operations): |
|||||
Basic |
$0.94 |
$0.81 |
16.0 |
||
Diluted |
$0.93 |
$0.80 |
16.3 |
||
Loss Per Average Common Share (from discontinued operations): |
|||||
Basic |
($0.01) |
($0.01) |
- |
||
Diluted |
($0.01) |
($0.01) |
- |
||
Earnings Per Average Common Share: |
|||||
Basic |
$0.93 |
$0.80 |
16.3 |
||
Diluted |
$0.92 |
$0.79 |
16.5 |
||
Average Number of Common Shares Outstanding - Basic |
207,732,341 |
214,128,023 |
|||
Average Number of Common Shares Outstanding - Diluted |
211,374,512 |
218,633,202 |
Entergy Corporation |
|||||||||
Utility Electric Energy Sales & Customers |
|||||||||
Three Months Ended March 31 |
|||||||||
2006 |
2005 |
% |
% |
||||||
(Millions of kwh) |
|||||||||
Electric Energy Sales: |
|||||||||
Residential |
6,963 |
7,170 |
(2.9) |
2.3 |
|||||
Commercial |
5,534 |
5,471 |
1.2 |
2.2 |
|||||
Governmental |
382 |
383 |
(0.3) |
(0.3) |
|||||
Industrial |
9,053 |
9,452 |
(4.2) |
(4.2) |
|||||
Total to Ultimate Customers |
21,932 |
22,476 |
(2.4) |
(0.5) |
|||||
Wholesale |
1,555 |
1,728 |
(10.0) |
||||||
Total Sales |
23,487 |
24,204 |
(3.0) |
||||||
March 31 |
|||||||||
2006 |
2005 |
% |
|||||||
Electric Customers (End of period): |
|||||||||
Residential |
2,120,033 |
2,126,685 |
(0.3) |
||||||
Commercial |
300,439 |
301,728 |
(0.4) |
||||||
Governmental |
12,455 |
13,338 |
(6.6) |
||||||
Industrial |
39,015 |
38,484 |
1.4 |
||||||
Total Ultimate Customers |
2,471,942 |
2,480,235 |
(0.3) |
||||||
Wholesale |
32 |
37 |
(13.5) |
||||||
Total Customers |
2,471,974 |
2,480,272 |
(0.3) |
Customer count data reflects estimates of customers in the hardest hit areas affected by Hurricane Katrina. Issues associated with temporary housing and resumption of service at permanent dwellings render precise counts difficult at this time.
Exhibit 99.3
STATEMENT ON USES AND USEFULNESS OF NON-GAAP FINANCIAL MEASURES
Exhibits 99.1 and 99.2 to this Report on Form 8-K (the "Earnings Releases"), contain non-GAAP financial measures. Generally, a non-GAAP financial measure is a numerical measure of a company's performance, financial position, or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with United States generally accepted accounting principles, or GAAP. Pursuant to the requirements of Regulation G, Entergy has provided quantitative reconciliations within the Earnings Releases and the presentation of the non-GAAP financial measures to the most directly comparable GAAP financial measures.
Certain non-GAAP measures in the Earnings Releases and the related presentation differ from GAAP only in that the figure or ratio states or includes operational earnings per share. Operational earnings per share is presented for each of Entergy's major business segments as well as on a consolidated basis. Operational earnings per share is not calculated in accordance with GAAP because it excludes the impact of "special items". Special items reflect the impact on earnings of events that are less routine, are related to prior periods, or are related to discontinued businesses. In addition, other financial measures including return on average invested capital (ROIC), return on average common equity (ROE), and net margin - operational are included on both an operational and as-reported basis. In each case, the metrics defined as "operational" exclude the impact of special items as defined above. Management believes financial metrics calculated using operational earnings provides useful information to inv estors in evaluating the ongoing results of Entergy's businesses and assists investors in comparing the company's operating performance to the operating performance of others in the energy sector. Entergy management frequently references these non-GAAP financial measures in its decision-making, using them to facilitate historical and ongoing performance comparisons as well as comparisons to the performance of peer companies.
Other non-GAAP measures, total gross liquidity, net debt to net capital ratio, net debt ratio including off-balance sheet liabilities, free cash flow and net cash available for new investment, debt or equity repayment, dividend increase, are measures Entergy uses internally for management and board discussions, and cash budgeting and performance monitoring activities to gauge the overall strength of its business. Free cash flow, as defined by Entergy, is net cash flow provided by operating activities, a GAAP measure, reduced by cash requirements for nuclear fuel purchases and decommissioning trust fund contributions, planned maintenance capital expenditures, and estimated preferred dividends, and does not consider other potential demands on cash such as mandatory debt service requirements. Entergy believes the above data provides useful information to investors in evaluating Entergy's ongoing financial flexibility, and assists investors in comparing the company's cash availability to the cash availabili ty of others in the energy sector.
The non-GAAP financial measures and other reported adjusted items in Entergy's Earnings Releases are used in addition to, and in conjunction with, results presented in accordance with GAAP. These non-GAAP financial measures should not be relied upon to the exclusion of GAAP financial measures. These non-GAAP financial measures reflect an additional way of viewing aspects of our operations that, when viewed with our GAAP results and the accompanying reconciliations to corresponding GAAP financial measures, may provide a more complete understanding of factors and trends affecting our business. Investors are strongly encouraged to review our consolidated financial statements and publicly filed reports in their entirety and to not rely on any single financial measure. Non-GAAP financial measures are not standardized; therefore, it may not be possible to compare these financial measures with other companies' non-GAAP financial measures having the same or similar names.
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