NEW ORLEANS, Oct. 22 /PRNewswire-FirstCall/ -- Entergy Corporation
(NYSE: ETR) today reported third quarter 2009 as-reported earnings
of $455.2 million, or $2.32 per share, compared with $470.3
million, or $2.41 per share, for third quarter 2008. On an
operational basis, Entergy's third quarter 2009 earnings were
$470.7 million, or $2.40 per share, compared with $487.3 million,
or $2.50 per share, in third quarter 2008. Consolidated Earnings -
Reconciliation of GAAP to Non-GAAP Measures Third Quarter and
Year-to-Date 2009 vs. 2008 (Per share in U.S. $) Third Quarter
Year-to-Date 2009 2008 Change 2009 2008 Change As-Reported Earnings
2.32 2.41 (0.09) 4.66 5.33 (0.67) Less Special Items (0.08) (0.09)
0.01 (0.26) (0.18) (0.08) Operational Earnings 2.40 2.50 (0.10)
4.92 5.51 (0.59) *GAAP refers to United States generally accepted
accounting principles. Operational Earnings Highlights for Third
Quarter 2009 -- Utility, Parent & Other's results were lower
due to higher income tax expense and higher operation and
maintenance expense. -- Entergy Nuclear's earnings increased as a
result of higher revenue from increased production due to fewer
planned and unplanned outage days and higher other income. --
Entergy's Non-Nuclear Wholesale Assets' results improved due to
lower income tax expense. "While we continue to experience the
negative effects of the slowed economic recovery, we are also
seeing the positive benefits from progress in key initiatives in
both our utility and non-utility nuclear businesses," said J. Wayne
Leonard, Entergy's chairman and chief executive officer. "We are
focused on constantly recalibrating our point of view as markets
and government policies react to the financial crisis, managing our
own risks and executing as opportunities arise." Other Business
Highlights -- Both Entergy Gulf States Louisiana and Entergy
Louisiana reached settlements in outstanding formula rate plan
(FRP) proceedings that included extension of each company's FRP for
the years 2008-2010. -- Entergy and the staff of the Vermont
Department of Public Service reached a Memorandum of Understanding
(MOU) which resolves the remaining issues between these parties
associated with the approval of the non-utility nuclear spin-off
transaction in Vermont. The MOU has been filed with and must be
approved by the Vermont Public Service Board. -- For the eighth
consecutive year Entergy was named to the Dow Jones Sustainability
World Index and was one of only two U.S. utility companies listed.
In addition, the Carbon Disclosure Project named Entergy to its
Climate Disclosure Leadership Index for the sixth consecutive year.
Entergy will host a teleconference to discuss this release at 10:00
a.m. CT on Thursday, Oct. 22, 2009, with access by telephone,
719-457-2080, confirmation code 4133911. 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 through Oct. 29, 2009, by dialing 719-457-0820,
confirmation code 4133911. The replay will also be available on
Entergy's Web site at http://www.entergy.com/. Utility, Parent
& Other In third quarter 2009, Utility, Parent & Other had
as-reported earnings of $259.6 million, or $1.32 per share,
compared to $286.0 million, or $1.47 per share, in third quarter
2008. On an operational basis, third quarter 2009 earnings were
$264.8 million, or $1.35 per share, compared to $303.0 million, or
$1.56 per share, in third quarter 2008. Operational results for
Utility, Parent & Other in third quarter 2009 reflect the
absence of the 2008 adjustment reducing income tax expense
(associated with the liquidation of a subsidiary) and higher
operation and maintenance expense. Partially offsetting lower
results were higher net revenue and other income. The effects of
hurricanes Gustav and Ike reduced revenue in third quarter 2008.
Residential sales in third quarter 2009, on a weather-adjusted
basis, increased 3.2 percent compared to third quarter 2008.
Commercial and governmental sales, on a weather-adjusted basis,
increased 1.1 percent year over year. Industrial sales in the third
quarter were down 6.3 percent compared to the same quarter of 2008.
The weak economy continued to depress sales in the industrial
sector, but to a lesser extent than second quarter 2009, which
reflected a 10 percent decline. Residential and commercial sales
increases reflected the absence of two hurricanes that reduced
usage in third quarter last year. Industrial sales in third quarter
2009 for large customers reflected continued weaknesses in
chemicals and primary metals. Small and mid-sized industrial
customers continue to be the industrial segments most negatively
affected by weakness in the economy. Increased sales also included
contributions from the warmer-than-normal weather particularly from
mid June to early July, as reflected in July billed sales, compared
to near-normal weather in third quarter 2008. Entergy Nuclear
Entergy Nuclear earned $200.4 million, or $1.02 per share, on an
as-reported basis and $210.7 million, or $1.07 per share, on an
operational basis in third quarter 2009, compared to $205.3
million, or $1.05 per share, on as-reported and operational bases
in third quarter 2008. Entergy Nuclear's operational earnings
increased as a result of higher revenue from higher generation due
to fewer planned and unplanned outage days in the current quarter
and increased other income primarily associated with
decommissioning trust funds. An impairment was recognized on
Entergy Nuclear's decommissioning trust funds in third quarter 2008
versus no impairments in the current period where gains were
recognized on investment transactions. Higher operation and
maintenance expense during the quarter and the absence of the 2008
adjustment reducing income tax expense (associated with
Massachusetts state tax law) were partially offsetting. 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 incurred a loss of $4.8
million, or two cents per share, on both as-reported and
operational bases in third quarter 2009 compared to a loss of $21.0
million, or 11 cents per share, a year ago. Business results
improved due primarily to lower income tax expense due to the
absence of a 2008 adjustment associated with the redemption of an
investment that had the effect of increasing income tax expense.
Outlook Entergy is reaffirming 2009 earnings guidance in the range
of $6.20 to $6.80 per share on an operational basis. As-reported
guidance ranges from $6.00 to $6.60 per share and incorporates
spin-off expenses for outside services through June 30, 2009, 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. Business Separation The announced
spin-off of Entergy's non-utility nuclear business will establish a
new independent, publicly traded company, Enexus Energy
Corporation. In addition, Entergy and Enexus intend to enter into a
nuclear services joint venture, with equal ownership, with the
joint venture being named EquaGen LLC. The state regulatory
decisions and financing continue as the critical path items in
finalizing the spin-off transaction. The transactions are subject
to various approvals. Regarding financing, on Oct. 1, 2009, Enexus
executed Amendment No. 1 to its credit agreement dated Dec. 23,
2008, increasing the total facility amount to $1.2 billion from
$1.175 billion. Enexus will not be permitted to draw down the
facility until certain customary and transactional conditions are
met on or prior to July 1, 2010. Final terms of the transactions
and spin-off completion are subject to the approval of the Entergy
Board of Directors. 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, planned
spin-off of its non-utility nuclear business and other operations
is available in Entergy's investor news release dated Oct. 22,
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 quarters ended March 31 and June
30, 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 Third Quarter and
Year-to-Date 2009 vs. 2008 (Per share in U.S. $) Third Quarter
Year-to-Date 2009 2008 Change 2009 2008 Change As-Reported Utility,
Parent & Other 1.32 1.47 (0.15) 2.32 2.56 (0.24) Entergy
Nuclear 1.02 1.05 (0.03) 2.34 2.90 (0.56) Non-Nuclear Wholesale
Assets (0.02) (0.11) 0.09 - (0.13) 0.13 Consolidated As-Reported
Earnings 2.32 2.41 (0.09) 4.66 5.33 (0.67) Less Special Items
Utility, Parent & Other (0.03) (0.09) 0.06 (0.09) (0.18) 0.09
Entergy Nuclear (0.05) - (0.05) (0.17) - (0.17) Non-Nuclear
Wholesale Assets - - - - - - Consolidated Special Items (0.08)
(0.09) 0.01 (0.26) (0.18) (0.08) Operational Utility, Parent &
Other 1.35 1.56 (0.21) 2.41 2.74 (0.33) Entergy Nuclear 1.07 1.05
0.02 2.51 2.90 (0.39) Non-Nuclear Wholesale Assets (0.02) (0.11)
0.09 - (0.13) 0.13 Consolidated Operational Earnings 2.40 2.50
(0.10) 4.92 5.51 (0.59) Entergy Corporation Consolidated Income
Statement Three Months Ended September 30 (in thousands) 2009 2008
%Inc/(Dec) (unaudited) Operating Revenues: Electric $2,195,461
$3,209,000 (31.6) Natural gas 24,030 41,981 (42.8) Competitive
businesses 717,604 712,903 0.7 Total 2,937,095 3,963,884 (25.9)
Operating Expenses: Operation and maintenance: Fuel, fuel-related
expenses, and gas purchased for resale 559,129 1,270,160 (56.0)
Purchased power 388,308 764,122 (49.2) Nuclear refueling outage
expenses 61,441 58,079 5.8 Other operation and maintenance 681,576
636,989 7.0 Decommissioning 50,069 47,515 5.4 Taxes other than
income taxes 128,851 140,819 (8.5) Depreciation and amortization
280,641 263,656 6.4 Other regulatory charges (credits) - net
(13,224) 30,452 (143.4) Total 2,136,791 3,211,792 (33.5) Operating
Income 800,304 752,092 6.4 Other Income (Deductions): Allowance for
equity funds used during construction 14,770 10,411 41.9 Interest
and dividend income 64,730 37,533 72.5 Other than temporary
impairment losses (457) (7,133) (93.6) Equity in earnings of
unconsolidated equity affiliates 1,316 1,459 (9.8) Miscellaneous -
net 4,423 5,200 (14.9) Total 84,782 47,470 78.6 Interest and Other
Charges: Interest on long-term debt 130,132 128,746 1.1 Other
interest - net 22,625 33,229 (31.9) Allowance for borrowed funds
used during construction (8,252) (5,939) 38.9 Total 144,505 156,036
(7.4) Income Before Income Taxes 740,581 643,526 15.1 Income Taxes
280,414 168,239 66.7 Consolidated Net Income 460,167 475,287 (3.2)
Preferred Dividend Requirements of Subsidiaries 4,998 4,998 - Net
Income Attributable to Entergy Corporation $455,169 $470,289 (3.2)
Earnings Per Average Common Share Basic $2.35 $2.47 (4.9) Diluted
$2.32 $2.41 (3.7) Average Number of Common Shares Outstanding -
Basic 193,424,904 190,379,009 Average Number of Common Shares
Outstanding - Diluted 195,875,241 194,960,830 Entergy Corporation
Consolidated Income Statement Nine Months Ended September 30 (in
thousands) 2009 2008 %Inc/(Dec) (unaudited) Operating Revenues:
Electric $6,140,823 $7,779,450 (21.1) Natural gas 126,914 185,361
(31.5) Competitive businesses 1,979,259 2,128,077 (7.0) Total
8,246,996 10,092,888 (18.3) Operating Expenses: Operation and
maintenance: Fuel, fuel-related expenses, and gas purchased for
resale 1,927,692 2,537,498 (24.0) Purchased power 1,034,483
2,132,967 (51.5) Nuclear refueling outage expenses 178,454 165,177
8.0 Other operation and maintenance 2,021,462 1,958,566 3.2
Decommissioning 148,119 140,327 5.6 Taxes other than income taxes
385,649 375,332 2.7 Depreciation and amortization 799,183 756,617
5.6 Other regulatory charges (credits) - net (29,371) 99,970
(129.4) Total 6,465,671 8,166,454 (20.8) Operating Income 1,781,325
1,926,434 (7.5) Other Income (Deductions): Allowance for equity
funds used during construction 47,499 28,782 65.0 Interest and
dividend income 170,007 143,273 18.7 Other than temporary
impairment losses (85,396) (35,193) 142.7 Equity in loss of
unconsolidated equity affiliates (442) (2,042) (78.4) Miscellaneous
- net (20,468) (2,439) 739.2 Total 111,200 132,381 (16.0) Interest
and Other Charges: Interest on long-term debt 383,255 371,793 3.1
Other interest - net 69,406 93,795 (26.0) Allowance for borrowed
funds used during construction (26,547) (15,992) 66.0 Total 426,114
449,596 (5.2) Income Before Income Taxes 1,466,411 1,609,219 (8.9)
Income Taxes 534,101 544,256 (1.9) Consolidated Net Income 932,310
1,064,963 (12.5) Preferred Dividend Requirements of Subsidiaries
14,993 14,971 0.1 Net Income Attributable to Entergy Corporation
$917,317 $1,049,992 (12.6) Earnings Per Average Common Share Basic
$4.73 $5.48 (13.7) Diluted $4.66 $5.33 (12.6) Average Number of
Common Shares Outstanding - Basic 194,044,214 191,444,611 Average
Number of Common Shares Outstanding - Diluted 197,382,562
197,064,629 Entergy Corporation Utility Electric Energy Sales &
Customers Three Months Ended September 30 % % Weather- 2009 2008
Change Adjusted (Millions of kwh) Electric Energy Sales:
Residential 11,213 10,671 5.1 3.2 Commercial 8,131 7,997 1.7 1.0
Governmental 663 649 2.2 1.6 Industrial 9,473 10,110 (6.3) (6.3)
Total to Ultimate Customers 29,480 29,427 0.2 (0.7) Wholesale 1,164
1,431 (18.7) Total Sales 30,644 30,858 (0.7) Nine Months Ended
September 30 % % Weather- 2009 2008 Change Adjusted (Millions of
kwh) Electric Energy Sales: Residential 26,206 26,055 0.6 0.7
Commercial 20,842 20,922 (0.4) (0.3) Governmental 1,802 1,805 (0.2)
(0.4) Industrial 26,402 29,217 (9.6) (9.6) Total to Ultimate
Customers 75,252 77,999 (3.5) (3.5) Wholesale 3,864 4,160 (7.1)
Total Sales 79,116 82,159 (3.7) September 30 % 2009 2008 Change
Electric Customers (End of period): Residential 2,335,387 2,308,250
1.2 Commercial 330,922 328,070 0.9 Governmental 15,652 15,344 2.0
Industrial 47,647 49,199 (3.2) Total Ultimate Customers 2,729,608
2,700,863 1.1 Wholesale 29 29 - Total Customers 2,729,637 2,700,892
1.1 DATASOURCE: Entergy Corporation CONTACT: Media, Chanel Lagarde,
+1-504-576-4238, , or Investors, Michele Lopiccolo,
+1-504-576-4879, , both of Entergy Corporation Web Site:
http://www.entergy.com/
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