EX-99.4 5 a05-19122_1ex99d4.htm EXHIBIT 99

Schedule 3

CINERGY CORP.

RECONCILIATION OF GAAP EPS TO ADJUSTED EPS - 2005

(unaudited)

 

 

Q1

 

Q2

 

Q3

 

Total

 

Regulated Businesses

 

 

 

 

 

 

 

 

 

EPS As Reported

 

$

0.39

 

$

0.24

 

$

0.46

 

$

1.09

 

Special Items:

 

 

 

 

 

 

 

 

 

Merger and Severance Costs

 

—

 

0.03

 

0.02

 

0.05

 

EPS Adjusted

 

$

0.39

 

$

0.27

 

$

0.48

 

$

1.14

 

 

 

 

 

 

 

 

 

 

 

Commercial Businesses

 

 

 

 

 

 

 

 

 

EPS As Reported

 

$

0.23

 

$

0.02

 

$

0.20

 

$

0.45

 

Special Items:

 

 

 

 

 

 

 

 

 

Merger and Severance Costs

 

—

 

0.03

 

0.02

 

0.05

 

Mark-to-Market Effect on Asset Hedges*

 

0.12

 

0.04

 

0.27

 

0.43

 

EPS Adjusted

 

$

0.35

 

$

0.09

 

$

0.49

 

$

0.93

 

 

 

 

 

 

 

 

 

 

 

Power Technology & Infrastructure Services

 

 

 

 

 

 

 

 

 

EPS As Reported

 

$

(0.02

)

$

(0.01

)

$

—

 

$

(0.03

)

Special Items:

 

 

 

 

 

 

 

 

 

Merger and Severance Costs

 

$

—

 

0.01

 

$

—

 

$

0.01

 

EPS Adjusted

 

$

(0.02

)

$

—

 

$

—

 

$

(0.02

)

 

 

 

 

 

 

 

 

 

 

Cinergy Corp.

 

 

 

 

 

 

 

 

 

EPS As Reported

 

$

0.60

 

$

0.25

 

$

0.66

 

$

1.51

 

Special Items

 

0.12

 

0.11

 

0.31

 

$

0.54

 

EPS Adjusted

 

$

0.72

 

$

0.36

 

$

0.97

 

$

2.05

 

* Represents the mark-to-market impact of contracts used in Cinergy’s economic hedging of its excess unregulated generation portfolio and its natural gas storage portfolio. The economic value of these portfolios is subject to market fluctuations and, as such, the hedging process involves both purchases and sales. Because these generation assets and gas storage contracts are accounted for under the accrual method of accounting, the Company believes that excluding the impact of mark-to-market changes from reported earnings better matches the contract with the settlement period of the position it is hedging. These amounts will be recognized through adjusted earnings when the contracts ultimately settle.

 

The increase in the third quarter of 2005 is primarily due to significant increases in the market price of power. Approximately 30% of the mark-to-market value of these contracts is expected to settle in the fourth quarter of 2005 and an additional 60% is expected to settle in the first quarter of 2006.