NEW ORLEANS, Aug. 4 /PRNewswire-FirstCall/ -- Entergy Corporation
(NYSE: ETR) today reported second quarter 2009 as-reported earnings
of $226.8 million, or $1.14 per share, compared with $271.0
million, or $1.37 per share, for second quarter 2008. On an
operational basis, Entergy's second quarter 2009 earnings were
$244.0 million, or $1.23 per share, compared with $289.2 million,
or $1.46 per share, in second quarter 2008. Consolidated Earnings -
Reconciliation of GAAP to Non-GAAP Measures
-------------------------------------------------------------------
Second Quarter and Year-to-Date 2009 vs. 2008 (Per share in U.S. $)
Second Quarter Year-to-Date -------------- ------------ 2009 2008
Change 2009 2008 Change ---- ---- ------ ---- ---- ------
As-Reported Earnings 1.14 1.37 (0.23) 2.35 2.93 (0.58) Less Special
Items (0.09) (0.09) - (0.17) (0.09) (0.08) ---- ----- --- -----
----- ----- Operational Earnings 1.23 1.46 (0.23) 2.52 3.02 (0.50)
----------- ---- ---- ----- ---- ---- ----- *GAAP refers to United
States generally accepted accounting principles. Operational
Earnings Highlights for Second Quarter 2009 -- Utility, Parent
& Other's results were modestly lower due to lower net revenue
and higher expenses that offset the benefit of lower income tax
expense during the quarter. -- Entergy Nuclear's earnings decreased
as a result of lower production due to additional refueling and
unplanned outage days and a significant impairment recorded on
decommissioning trust fund investments. -- Entergy's Non-Nuclear
Wholesale Assets results improved primarily as a result of lower
income tax expense during the quarter. "While financial and
commodity markets present near-term challenges, we remain committed
to executing on the opportunities we have at hand and creating new
ones consistent with the opportunities of a changed economic
climate," said J. Wayne Leonard, Entergy's chairman and chief
executive officer. "At the same time, we are very attentive to
managing risks with uncertainties around the economy, markets,
pending legislation and new technologies." Other Business
Highlights -- Entergy Texas, Inc. reached an agreement in principle
that should resolve all issues in its storm recovery case through
an unopposed settlement agreement. Legislation was also enacted,
providing long sought clarity, mandating that all activities
relating to Transition to Competition be ceased. -- Entergy Nuclear
received a pair of Top Industry Practice awards from the Nuclear
Energy Institute, out of 14 industry-wide awards presented by the
industry trade group each year. -- Entergy filed a motion in its
New York proceeding on its non-utility nuclear spin-off
reorganization proposal requesting procedures and a schedule that
would support closing the transaction this year. The Administrative
Law Judges ruled that a decision on the motion would come after
reviewing the amended petition expected to be filed around Aug. 10,
2009. Entergy will host a teleconference to discuss this release at
10:00 a.m. CDT on Tuesday, Aug. 4, 2009, with access by telephone,
719-457-2080, confirmation code 4219567. The call and presentation
slides can also be accessed via Entergy's Web site at
http://www.entergy.com/. A replay of the teleconference will be
available for seven days thereafter by dialing 719-457-0820,
confirmation code 4219567. The replay will also be available on
Entergy's Web site at http://www.entergy.com/. Utility, Parent
& Other In second quarter 2009, Utility, Parent & Other had
as-reported earnings of $134.7 million, or 68 cents per share,
compared to $123.4 million, or 62 cents per share, in second
quarter 2008. On an operational basis, second quarter 2009 earnings
were $136.8 million, or 69 cents per share, compared to $141.6
million, or 71 cents per share, in second quarter 2008. Operational
results for Utility, Parent & Other in second quarter 2009
reflect lower net revenue driven primarily by a regulatory charge
associated with a May 2009 Federal Energy Regulatory Commission
(FERC) order. Higher expenses also contributed to lower results in
the current quarter. Partially offsetting these items were benefits
from lower income tax expense. Residential sales in second quarter
2009, on a weather-adjusted basis, were nearly flat, with only a
0.2 percent decrease compared to second quarter 2008. Commercial
and governmental sales, on a weather-adjusted basis, decreased 1.0
percent year over year. Industrial sales in the second quarter were
down 9.7 percent compared to the same quarter of 2008. The weak
economy affected customer usage across all customer segments, most
notably in the industrial sector. Industrial sales in the second
quarter 2009 for large customers were led by weaknesses in
chemicals, primary metals and refining. Small and mid-sized
industrial customers also continue to be negatively affected by
overseas competition. Excluding the regulatory charge noted above,
net revenue increased modestly in part due to the fact that a
significant portion of the industrial customer bill is based on a
fixed charge basis that does not vary linearly with volume changes.
Also, net revenue included contributions from the
warmer-than-normal weather experienced at the end of the second
quarter 2009 primarily reflected in unbilled sales. Entergy Nuclear
Entergy Nuclear earned $80.2 million, or 40 cents per share, on an
as-reported basis and $95.3 million, or 48 cents per share, on an
operational basis in second quarter 2009, compared to $143.6
million, or 73 cents per share, on as-reported and operational
bases in second quarter 2008. Entergy Nuclear's earnings decreased
as a result of a decline in revenue from lower generation due to
additional refueling and unplanned outage days in the current
quarter and the scheduled reduction in revenue amortization for the
Palisades below-market Power Purchase Agreement. Lower operation
and maintenance expense during the quarter partially offset lower
revenue. In addition, Entergy Nuclear's second quarter 2009
earnings reflect a significant impairment on decommissioning trust
investments, exceeding the amount recorded in the same period last
year. Finally, as-reported results were further reduced by the
special item for spin-off dis-synergies. Non-Nuclear Wholesale
Assets Entergy's Non-Nuclear Wholesale Assets business earned $11.9
million, or six cents per share, on both as-reported and
operational bases in second quarter 2009 compared to $4.0 million,
or two cents per share, a year ago. Business results improved
primarily due to lower income tax expense. Outlook As a result of
financial market conditions resulting in recognition of additional
decommissioning trust impairments, and further decline in power
prices for Entergy Nuclear's open position, Entergy revised its
2009 as-reported earnings guidance to a range of $6.00 to $6.60 per
share. The revised as-reported estimate incorporates year-to-date
spin-off expenses for outside services, in addition to projected
dis-synergies associated with the spin-off of Entergy's non-utility
nuclear business and plans to enter into a nuclear services joint
venture. 2009 operational earnings guidance was revised to a range
of $6.20 to $6.80 per share. Entergy had previously indicated that
should the current economic climate and power prices on Entergy
Nuclear's open position persist for the balance of 2009, earnings
could approach the lower end of the then-guidance ranges of $6.56
to $7.16 per share on an as-reported basis and $6.70 to $7.30 per
share on an operational basis. Business Separation On Nov. 3, 2007,
Entergy's Board of Directors approved a plan to pursue a separation
of the non-utility nuclear business from Entergy's regulated
utility business through a tax-free spin-off of the non-utility
nuclear business. Enexus Energy Corporation will be a new,
independent publicly traded company. In addition, Entergy and
Enexus intend to enter into a nuclear services joint venture, with
equal ownership. EquaGen LLC has been selected as the name for the
joint venture. Progress achieved since the last quarter update
and/or current status includes: -- Entergy has filed a motion in
New York outlining enhancements to the spin-off reorganization
proposal and requesting procedures and a schedule to enable the
report of the presiding Administrative Law Judges (ALJs) to be
issued in time for the New York Public Service Commission (NYPSC)
to issue a final order no later than its regularly scheduled
November meeting; ALJs have ruled that a decision on Entergy's
motion will be considered after reviewing the company's amended
petition expected to be filed in August -- Entergy has received a
six month extension of the Nuclear Regulatory Commission's approval
for the spin-off to January 28, 2010 -- Entergy and Enexus remain
in a rolling readiness posture Enexus intends to file a petition in
August with the NYPSC addressing amendments to the reorganization
proposal to further enhance Enexus' already robust financial
strength and flexibility, including: -- A $1.0 billion reduction in
long-term bonds to $3.5 billion -- A commitment to reserve at least
$350 million of liquidity -- An increase in the initial cash
balance left at Enexus to $750 million from the original $250
million -- A revised reorganization plan to transfer approximately
20 percent of the Enexus shares to a trust, to be exchanged for
Entergy shares on a tax-free basis within a fixed period of time
following the spin-off; this exchange is commonly referred to in
tax-free reorganizations as a split-off and facilitates the
enhancements listed above The state regulatory decisions and
financing continue as the critical path items. The rolling
readiness posture enables Entergy to execute the spin-off following
receipt of regulatory approvals and once the timing is right to
access the credit markets, both on acceptable terms. 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 $13 billion and approximately 14,700 employees.
Additional information regarding Entergy's quarterly results of
operations, regulatory proceedings, and other operations is
available in Entergy's investor news release dated Aug. 4, 2009, a
copy of which has been filed today with the Securities and Exchange
Commission on Form 8-K and is available on Entergy's investor
relations Web site at http://www.entergy.com/investor_relations. In
this news release, and from time to time, Entergy Corporation makes
certain "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995. 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. There are factors that could cause actual
results to differ materially from those expressed or implied in the
forward-looking statements, including (a) those factors discussed
in (i) Entergy's Form 10-K for the year ended December 31, 2008,
(ii) Entergy's Form 10-Q for the quarter ended March 31, 2009, and
(iii) Entergy's other reports and filings made under the Securities
Exchange Act of 1934, (b) the uncertainties associated with efforts
to remediate the effects of Hurricanes Gustav and Ike and the
January 2009 Arkansas ice storm and recovery of costs associated
with restoration, and (c) the following transactional factors (in
addition to others described elsewhere in this news release and in
subsequent securities filings): (i) risks inherent in the
contemplated spin-off, joint venture and related transactions
(including the level of debt to be incurred by Enexus Energy
Corporation and the terms and costs related thereto), (ii)
legislative and regulatory actions, and (iii) conditions of the
capital markets during the periods covered by the forward-looking
statements. Entergy cannot provide any assurances that the spin-off
or any of the proposed transactions related thereto will be
completed, nor can it give assurances as to the terms on which such
transactions will be consummated. The transaction is subject to
certain conditions precedent, including regulatory approvals and
the final approval by the Board of Directors of Entergy. 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 Second Quarter and
Year-to-Date 2009 vs. 2008
--------------------------------------------- (Per share in U.S. $)
Second Quarter Year-to-Date -------------- ------------ 2009 2008
Change 2009 2008 Change ---- ---- ------ ---- ---- ------
As-Reported Utility, Parent & Other 0.68 0.62 0.06 1.00 1.11
(0.11) Entergy Nuclear 0.40 0.73 (0.33) 1.32 1.84 (0.52)
Non-Nuclear Wholesale Assets 0.06 0.02 0.04 0.03 (0.02) 0.05 ----
---- ---- ---- ----- ---- Consolidated As-Reported Earnings 1.14
1.37 (0.23) 2.35 2.93 (0.58) ---- ---- ----- ---- ---- ----- Less
Special Items Utility, Parent & Other (0.01) (0.09) 0.08 (0.06)
(0.09) 0.03 Entergy Nuclear (0.08) - (0.08) (0.11) - (0.11)
Non-Nuclear Wholesale Assets - - - - - - - - - - - - Consolidated
Special Items (0.09) (0.09) - (0.17) (0.09) (0.08) ----- -----
----- ----- ----- ----- Operational Utility, Parent & Other
0.69 0.71 (0.02) 1.06 1.20 (0.14) Entergy Nuclear 0.48 0.73 (0.25)
1.43 1.84 (0.41) Non-Nuclear Wholesale Assets 0.06 0.02 0.04 0.03
(0.02) 0.05 ---- ---- ---- ---- ----- ---- Consolidated Operational
Earnings 1.23 1.46 (0.23) 2.52 3.02 (0.50) ---- ---- ----- ----
---- ----- Entergy Corporation Consolidated Income Statement Three
Months Ended June 30 (in thousands) 2009 2008 %Inc/(Dec) ---- ----
--------- (unaudited) Operating Revenues: Electric $1,918,446
$2,524,222 (24.0) Natural gas 28,834 53,985 (46.6) Competitive
businesses 573,509 686,064 (16.4) ------- ------- Total 2,520,789
3,264,271 (22.8) --------- --------- Operating Expenses: Operation
and maintenance: Fuel, fuel-related expenses, and gas purchased for
resale 521,071 726,836 (28.3) Purchased power 322,919 748,203
(56.8) Nuclear refueling outage expenses 60,234 55,840 7.9 Other
operation and maintenance 696,345 710,309 (2.0) Decommissioning
49,307 46,816 5.3 Taxes other than income taxes 122,401 125,942
(2.8) Depreciation and amortization 260,689 247,977 5.1 Other
regulatory charges - net 13,327 34,239 (61.1) ------ ------ Total
2,046,293 2,696,162 (24.1) --------- --------- Operating Income
474,496 568,109 (16.5) ------- ------- Other Income (Deductions):
Allowance for equity funds used during construction 15,782 9,085
73.7 Interest and dividend income 58,892 47,803 23.2 Other than
temporary impairment losses (69,203) (24,404) 183.6 Equity in
earnings (loss) of unconsolidated equity affiliates 1,369 (2,572)
(153.2) Miscellaneous - net (14,723) 3,916 (476.0) ------- -----
Total (7,883) 33,828 (123.3) ------ ------ Interest and Other
Charges: Interest on long-term debt 125,157 119,903 4.4 Other
interest - net 27,487 28,030 (1.9) Allowance for borrowed funds
used during construction (8,483) (4,937) 71.8 ------ ------ Total
144,161 142,996 0.8 ------- ------- Income Before Income Taxes
322,452 458,941 (29.7) Income Taxes 90,641 183,012 (50.5) ------
------- Consolidated Net Income 231,811 275,929 (16.0) Preferred
Dividend Requirements of Subsidiaries 4,998 4,975 0.5 ----- -----
Net Income Attributable to Entergy Corporation $226,813 $270,954
(16.3) ======== ======== Earnings Per Average Common Share Basic
$1.16 $1.42 (18.3) Diluted $1.14 $1.37 (16.8) Average Number of
Common Shares Outstanding - Basic 196,105,002 191,326,928 Average
Number of Common Shares Outstanding - Diluted 198,243,169
197,864,459 Entergy Corporation Consolidated Income Statement Six
Months Ended June 30 (in thousands) 2009 2008 %Inc/(Dec) ---- ----
--------- (unaudited) Operating Revenues: Electric $3,945,363
$4,570,449 (13.7) Natural gas 102,884 143,380 (28.2) Competitive
businesses 1,261,654 1,415,176 (10.8) --------- --------- Total
5,309,901 6,129,005 (13.4) --------- --------- Operating Expenses:
Operation and maintenance: Fuel, fuel-related expenses, and gas
purchased for resale 1,367,060 1,267,337 7.9 Purchased power
646,174 1,368,845 (52.8) Nuclear refueling outage expenses 117,013
107,098 9.3 Other operation and maintenance 1,341,389 1,321,577 1.5
Decommissioning 98,050 92,812 5.6 Taxes other than income taxes
256,798 234,513 9.5 Depreciation and amortization 518,541 492,962
5.2 Other regulatory charges (credits) - net (16,147) 69,519
(123.2) ------- ------ Total 4,328,878 4,954,663 (12.6) ---------
--------- Operating Income 981,023 1,174,342 (16.5) -------
--------- Other Income (Deductions): Allowance for equity funds
used during construction 32,730 18,371 78.2 Interest and dividend
income 105,278 105,740 (0.4) Other than temporary impairment losses
(84,939) (28,060) 202.7 Equity in loss of unconsolidated equity
affiliates (1,758) (3,501) (49.8) Miscellaneous - net (24,895)
(7,640) 225.9 ------- ------ Total 26,416 84,910 (68.9) ------
------ Interest and Other Charges: Interest on long-term debt
253,123 243,047 4.1 Other interest - net 46,780 60,567 (22.8)
Allowance for borrowed funds used during construction (18,294)
(10,053) 82.0 ------- ------- Total 281,609 293,561 (4.1) -------
------- Income Before Income Taxes 725,830 965,691 (24.8) Income
Taxes 253,686 376,015 (32.5) ------- ------- Consolidated Net
Income 472,144 589,676 (19.9) Preferred Dividend Requirements of
Subsidiaries 9,996 9,973 0.2 ----- ----- Net Income Attributable to
Entergy Corporation $462,148 $579,703 (20.3) ======== ========
Earnings Per Average Common Share Basic $2.38 $3.02 (21.2) Diluted
$2.35 $2.93 (19.8) Average Number of Common Shares Outstanding -
Basic 194,359,001 191,983,266 Average Number of Common Shares
Outstanding - Diluted 198,150,768 198,101,863 Entergy Corporation
Utility Electric Energy Sales & Customers Three Months Ended
June 30 -------------------------- % % Weather- 2009 2008 Change
Adjusted ---- ---- ------ --------- (Millions of kwh) Electric
Energy Sales: Residential 7,100 7,372 (3.7) (0.2) Commercial 6,518
6,688 (2.5) (1.0) Governmental 577 587 (1.7) (1.4) Industrial 8,790
9,730 (9.7) (9.7) ----- ----- Total to Ultimate Customers 22,985
24,377 (5.7) (4.3) Wholesale 1,313 1,440 (8.8) ----- ----- Total
Sales 24,298 25,817 (5.9) ====== ====== Six Months Ended June 30
------------------------ % % Weather- 2009 2008 Change Adjusted
---- ---- ------ --------- (Millions of kwh) Electric Energy Sales:
Residential 14,992 15,384 (2.5) (1.1) Commercial 12,711 12,926
(1.7) (1.1) Governmental 1,140 1,155 (1.3) (1.5) Industrial 16,929
19,107 (11.4) (11.4) ------ ------ Total to Ultimate Customers
45,772 48,572 (5.8) (5.2) Wholesale 2,700 2,729 (1.1) ----- -----
Total Sales 48,472 51,301 (5.5) ====== ====== June 30 ------- %
2009 2008 Change ---- ---- ------ Electric Customers (End of
period): Residential 2,330,337 2,311,624 0.8 Commercial 330,891
328,127 0.8 Governmental 15,523 15,318 1.3 Industrial 43,864 45,427
(3.4) ------ ------ Total Ultimate Customers 2,720,615 2,700,496
0.7 Wholesale 33 32 3.1 -- -- Total Customers 2,720,648 2,700,528
0.7 ========= ========= DATASOURCE: Entergy Corporation CONTACT:
Chanel Lagarde, News Media, +1-504-576-4238, ; or Michele
Lopiccolo, Investor Relations, +1-504-576-4879, Web Site:
http://www.entergy.com/
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