NEW ORLEANS, Feb. 2 /PRNewswire-FirstCall/ -- Entergy Corporation
(NYSE: ETR) today reported fourth quarter 2009 as-reported earnings
of $313.8 million, or $1.64 per share, compared with $170.6
million, or 89 cents per share, for fourth quarter 2008. On an
operational basis, Entergy's fourth quarter 2009 earnings were
$334.9 million, or $1.75 per share, compared with $190.7 million,
or 99 cents per share, in fourth quarter 2008. For the year,
Entergy's as-reported earnings were $1.2 billion, or $6.30 per
share, and operational earnings were $1.3 billion, or $6.67 per
share. These results compare with 2008 as-reported earnings of $1.2
billion, or $6.20 per share, and operational earnings of $1.3
billion, or $6.51 per share. Consolidated Earnings - Reconciliation
of GAAP to Non-GAAP Measures Fourth Quarter and Year-to-Date 2009
vs. 2008 (Per share in U.S. $) Fourth Quarter Year-to-Date
-------------- ------------ 2009 2008 Change 2009 2008 Change ----
---- ------ ---- ---- ------ As-Reported Earnings 1.64 0.89 0.75
6.30 6.20 0.10 Less Special Items (0.11) (0.10) (0.01) (0.37)
(0.31) (0.06) ----- ----- ----- ----- ----- ----- Operational
Earnings 1.75 0.99 0.76 6.67 6.51 0.16 ----------- ---- ---- ----
---- ---- ---- *GAAP refers to United States generally accepted
accounting principles. Operational Earnings Highlights for Fourth
Quarter 2009 -- Utility, Parent & Other's results were higher
due to lower income tax expense, lower non-fuel operation and
maintenance expense and higher net revenue. -- Entergy Nuclear's
earnings decreased as a result of higher income tax and non-fuel
operation and maintenance expenses, partially offset by higher net
revenue and other income. -- Entergy's Non-Nuclear Wholesale
Assets' results improved due to lower income tax expense. "Both our
utility and non-utility nuclear businesses delivered strong
operational performance during a period of extraordinary global
economic and financial uncertainty," said J. Wayne Leonard,
Entergy's chairman and chief executive officer. "Looking ahead,
signs of an improving economic environment, our market-based
point-of-view, adherence to our disciplined risk management and the
strength of our cash position provide a foundation that supports
our strategic, operational and financial goals." Other Business
Highlights -- Entergy Texas completed storm recovery for Hurricane
Ike in November when it executed $545.9 million of securitization
financing. Also, a stipulation agreement was reached with the
Louisiana Public Service Commission staff in the storm proceedings
in Louisiana. -- Entergy Texas made a new rate case filing with the
Public Utility Commission of Texas at the end of December. -- The
Nuclear Regulatory Commission agreed to extend the expiration date
for the spin-off approval to Aug. 1, 2010. Entergy will host a
teleconference to discuss this release at 10:00 a.m. CT on Tuesday,
Feb. 2, 2010, with access by telephone, 719-457-2080, confirmation
code 6584600. 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 Feb. 9, 2010, by dialing
719-457-0820, confirmation code 6584600. The replay will also be
available on Entergy's Web site at http://www.entergy.com/.
Utility, Parent & Other In fourth quarter 2009, Utility, Parent
& Other's as-reported earnings were $107.0 million, or 56 cents
per share, compared to a loss of $82.6 million, or 38 cents per
share, in fourth quarter 2008. On an operational basis, fourth
quarter 2009 earnings were $116.2 million, or 61 cents per share,
compared to a loss of $62.5 million, or 33 cents per share, in
fourth quarter 2008. Operational earnings for Utility, Parent &
Other in fourth quarter 2009 reflect lower income tax expense
associated with the net effect of annual consolidated income tax
adjustments across the Entergy companies. A favorable tax reserve
adjustment also contributed following issuance by the Louisiana
Department of Revenue of a private letter ruling related to
securitization of Katrina and Rita storm costs. In addition, the
absence of regulatory charges associated with rate proceedings at
Entergy Arkansas in 2008 was the primary driver of lower non-fuel
operation and maintenance expense, as well as a contributor to the
lower income tax expense compared to fourth quarter 2008. Also
contributing to the earnings improvement versus the same quarter
last year was higher net revenue. Residential sales in fourth
quarter 2009, on a weather-adjusted basis, increased 4.6 percent
compared to fourth quarter 2008. Commercial and governmental sales,
on a weather-adjusted basis, increased 3.0 percent year over year.
Industrial sales in the fourth quarter increased 7.1 percent
compared to the same quarter of 2008. Residential, commercial and
industrial classes reflected sales growth as a result of increasing
economic activity in Entergy's service territory. The improvement
in industrial sales in fourth quarter 2009 was driven by the large
industrial customer group, particularly in chemicals and refining.
Small and mid-sized industrial customers are slowly showing signs
of recovery from the recession, but their usage continued to be
negatively affected in the current quarter. Also, a portion of the
quarter-over-quarter increase in sales for all customer classes was
the result of the absence of outages for the September 2008
hurricanes, most notably in the industrial segment. Industrial
customers are typically billed at the beginning of the month, and
as such these outages for hurricanes Gustav and Ike were reflected
in October sales. Near normal weather versus warmer-than-normal
weather in fourth quarter 2008 also provided a modest increase in
sales volume. For the year 2009, Utility, Parent and Other earned
$561.4 million, or $2.88 per share, on an as-reported earnings
basis, compared to $422.0 million, or $2.22 per share, in 2008.
Operational earnings in 2009 were $588.4 million, or $3.02 per
share, compared to $477.4 million, or $2.43 per share, in 2008. The
increase in operational earnings in 2009 was driven by higher
Utility net revenue with the absence of hurricanes Gustav and Ike
in 2008 contributing. Another factor in the improved results at
Utility, Parent & Other was lower operation and maintenance
expense, due primarily to the absence of Entergy Arkansas
regulatory charges noted above. Also contributing to the earnings
improvement was a lower overall effective tax rate for Utility,
Parent & Other in 2009 versus 2008. Partially offsetting these
items was an increase in depreciation and amortization expense in
the current year due to increased plant in service. Entergy Nuclear
Entergy Nuclear earned $169.5 million, or 89 cents per share, on an
as-reported basis in fourth quarter 2009, compared to as-reported
earnings of $226.6 million, or $1.14 per share, in fourth quarter
2008. On an operational basis, fourth quarter 2009 Entergy Nuclear
earnings were $181.5 million, or 95 cents per share, versus $226.6
million, or $1.18 per share, in the last quarter of 2008. Entergy
Nuclear's operational earnings decreased as a result of higher
income tax expense in the current quarter due primarily to the net
effect of the annual consolidated tax adjustments. Also
contributing to the lower results was higher operation and
maintenance expense during the quarter due to the absence of
refueling outages in the quarter and associated deferral of costs.
Partially offsetting these items was higher net revenue as a result
of higher generation due to 32 fewer refueling outage days in the
current quarter and increased pricing. Higher other income
associated with decommissioning trusts also provided an offset to
decreased earnings. A smaller impairment recognized on Entergy
Nuclear's decommissioning trust funds in the current period
contributed to higher other income, as well as higher earnings
realized on decommissioning trust investments in 2009. For the year
2009, Entergy Nuclear earned $631.0 million, or $3.22 per share, on
an as-reported basis and $675.0 million, or $3.45 per share, on an
operational basis. This compares to as-reported earnings of $797.3
million, or $3.97 per share, and operational earnings of $797.3
million, or $4.07 per share at Entergy Nuclear in 2008. The decline
in Entergy Nuclear's operational earnings in 2009 was due primarily
to a higher effective income tax rate as well as an increase in
operation and maintenance expense. Impairments on Entergy Nuclear's
decommissioning trust funds in 2009 exceeded amounts recognized in
2008, and were partially offset by higher realized earnings on
decommissioning trust investments, also reflected in other income.
Non-Nuclear Wholesale Assets Entergy's Non-Nuclear Wholesale Assets
business earned $37.2 million, or 19 cents per share, on both
as-reported and operational bases in fourth quarter 2009 compared
to $26.5 million, or 13 cents per share, on an as-reported basis,
and $26.5 million, or 14 cents per share, on an operational basis,
a year ago. Income tax benefits were the primary drivers in both
quarters. The current quarter reflects a tax benefit recognized on
a capital loss associated with the sale of stock of a merchant
fossil generation subsidiary to a third party. In the fourth
quarter 2008, a closing agreement was reached with the Internal
Revenue Service allowing a capital loss. As a result, a provision
for tax uncertainties that existed on this item was reversed. For
the year 2009, Entergy's Non-Nuclear Wholesale Assets business
earned $38.7 million, or 20 cents per share, compared to earnings
of $1.3 million, or one cent per share, in 2008. As-reported and
operational results were the same in both periods. The earnings
increase in 2009 was driven by a decrease in income tax expense due
to the fourth quarter 2009 benefit noted above, plus a second
quarter decrease in valuation allowance on loss carryovers.
Quarterly income tax effects in 2008 were largely offsetting.
Outlook Entergy is affirming 2010 earnings guidance in the range of
$6.15 to $6.95 per share on an as-reported basis, assuming a
business as usual operation for the full year. Operational earnings
per share guidance ranges from $6.40 to $7.20 per share and
excludes $(0.25) per share of 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. Guidance for
2010 does not incorporate a special item for expenses anticipated
in connection with outside services provided to pursue the
spin-off. The level of these charges in 2010 will vary depending
upon resolution of the spin-off. 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. 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 $10 billion and approximately
15,000 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 Feb. 2, 2010,
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, June 30
and September 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
Fourth Quarter and Year-to-Date 2009 vs. 2008 (Per share in U.S. $)
Fourth Quarter Year-to-Date -------------- ------------ 2009 2008
Change 2009 2008 Change ---- ---- ------ ---- ---- ------
As-Reported Utility, Parent & Other 0.56 (0.38) 0.94 2.88 2.22
0.66 Entergy Nuclear 0.89 1.14 (0.25) 3.22 3.97 (0.75) Non-Nuclear
Wholesale Assets 0.19 0.13 0.06 0.20 0.01 0.19 ---- ---- ---- ----
---- ---- Consolidated As-Reported Earnings 1.64 0.89 0.75 6.30
6.20 0.10 ---- ---- ---- ---- ---- ---- Less Special Items Utility,
Parent & Other (0.05) (0.05) - (0.14) (0.21) 0.07 Entergy
Nuclear (0.06) (0.04) (0.02) (0.23) (0.10) (0.13) Non-Nuclear
Wholesale Assets - (0.01) 0.01 - - - --- ----- ---- --- --- ---
Consolidated Special Items (0.11) (0.10) (0.01) (0.37) (0.31)
(0.06) ----- ----- ----- ----- ----- ----- Operational Utility,
Parent & Other 0.61 (0.33) 0.94 3.02 2.43 0.59 Entergy Nuclear
0.95 1.18 (0.23) 3.45 4.07 (0.62) Non-Nuclear Wholesale Assets 0.19
0.14 0.05 0.20 0.01 0.19 ---- ---- ---- ---- ---- ---- Consolidated
Operational Earnings 1.75 0.99 0.76 6.67 6.51 0.16 ---- ---- ----
---- ---- ---- Entergy Corporation Consolidated Income Statement
Three Months Ended December 31 (in thousands) 2009 2008 % Inc/(Dec)
---- ---- ---------- (unaudited) Operating Revenues: Electric
$1,739,193 $2,293,710 (24.2) Natural gas 45,298 56,495 (19.8)
Competitive businesses 714,163 650,662 9.8 ------- ------- Total
2,498,654 3,000,867 (16.7) --------- --------- Operating Expenses:
Operation and maintenance: Fuel, fuel-related expenses, and gas
purchased for resale 382,139 1,040,267 (63.3) Purchased power
360,721 358,232 0.7 Nuclear refueling outage expenses 62,856 56,582
11.1 Other operation and maintenance 729,348 784,196 (7.0)
Decommissioning 50,945 49,082 3.8 Taxes other than income taxes
118,211 121,620 (2.8) Depreciation and amortization 283,592 274,243
3.4 Other regulatory charges (credits) - net 7,643 (40,088) (119.1)
----- ------- Total 1,995,455 2,644,134 (24.5) --------- ---------
Operating Income 503,199 356,733 41.1 ------- ------- Other Income
(Deductions): Allowance for equity funds used during construction
12,046 15,740 (23.5) Interest and dividend income 66,651 54,599
22.1 Other than temporary impairment losses (703) (14,463) (95.1)
Equity in earnings of unconsolidated equity affiliates (7,350)
(9,641) (23.8) Miscellaneous - net (12,133) (9,328) 30.1 -------
------ Total 58,511 36,907 58.5 ------ ------ Interest and Other
Charges: Interest on long-term debt 137,462 129,106 6.5 Other
interest - net 13,557 39,493 (65.7) Allowance for borrowed funds
used during construction (6,688) (9,274) (27.9) ------ ------ Total
144,331 159,325 (9.4) ------- ------- Income Before Income Taxes
417,379 234,315 78.1 Income Taxes 98,639 58,744 67.9 ------ ------
Consolidated Net Income 318,740 175,571 81.5 Preferred Dividend
Requirements of Subsidiaries 4,965 4,997 - ----- ----- Net Income
Attributable to Entergy Corporation $313,775 $170,574 84.0 ========
======== Earnings Per Average Common Share Basic $1.66 $0.90 84.4
Diluted $1.64 $0.89 84.3 Average Number of Common Shares
Outstanding - Basic 188,996,969 189,379,904 Average Number of
Common Shares Outstanding - Diluted 191,255,405 198,257,675 Entergy
Corporation Consolidated Income Statement Twelve Months Ended
December 31 (in thousands) 2009 2008 % Inc/(Dec) ---- ----
----------- (unaudited) Operating Revenues: Electric $7,880,016
$10,073,160 (21.8) Natural gas 172,213 241,856 (28.8) Competitive
businesses 2,693,421 2,778,740 (3.1) --------- --------- Total
10,745,650 13,093,756 (17.9) ---------- ---------- Operating
Expenses: Operation and maintenance: Fuel, fuel-related expenses,
and gas purchased for resale 2,309,831 3,577,764 (35.4) Purchased
power 1,395,203 2,491,200 (44.0) Nuclear refueling outage expenses
241,310 221,759 8.8 Other operation and maintenance 2,750,810
2,742,762 0.3 Decommissioning 199,063 189,409 5.1 Taxes other than
income taxes 503,859 496,952 1.4 Depreciation and amortization
1,082,775 1,030,860 5.0 Other regulatory charges (credits) - net
(21,727) 59,883 (136.3) ------- ------ Total 8,461,124 10,810,589
(21.7) --------- ---------- Operating Income 2,284,526 2,283,167
0.1 --------- --------- Other Income (Deductions): Allowance for
equity funds used during construction 59,545 44,523 33.7 Interest
and dividend income 236,628 197,872 19.6 Other than temporary
impairment losses (86,069) (49,656) 73.3 Equity in loss of
unconsolidated equity affiliates (7,793) (11,684) (33.3)
Miscellaneous - net (32,603) (11,768) 177.0 ------- ------- Total
169,708 169,287 0.2 ------- ------- Interest and Other Charges:
Interest on long-term debt 520,716 500,898 4.0 Other interest - net
82,963 133,290 (37.8) Allowance for borrowed funds used during
construction (33,235) (25,267) 31.5 ------- ------- Total 570,444
608,921 (6.3) ------- ------- Income Before Income Taxes 1,883,790
1,843,533 2.2 Income Taxes 632,740 602,998 4.9 ------- -------
Consolidated Net Income 1,251,050 1,240,535 0.8 Preferred Dividend
Requirements of Subsidiaries 19,958 19,969 (0.1) ------ ------ Net
Income Attributable to Entergy Corporation $1,231,092 $1,220,566
0.9 ========== ========== Earnings Per Average Common Share Basic
$6.39 $6.39 0.0 Diluted $6.30 $6.20 1.6 Average Number of Common
Shares Outstanding - Basic 192,772,032 190,925,613 Average Number
of Common Shares Outstanding - Diluted 195,838,068 201,011,588
Entergy Corporation Utility Electric Energy Sales & Customers
Three Months Ended December 31 % Weather- 2009 2008 % Change
Adjusted ---- ---- -------- -------- (Millions of KWh) Electric
Energy Sales: Residential 7,421 6,992 6.1 4.6 Commercial 6,635
6,418 3.4 2.8 Governmental 605 574 5.4 5.0 Industrial 9,235 8,626
7.1 7.1 ----- ----- Total to Ultimate Customers 23,896 22,610 5.7
5.0 Wholesale 998 1,240 (19.5) --- ----- Total Sales 24,894 23,850
4.4 ====== ====== Twelve Months Ended December 31 % Weather- 2009
2008 % Change Adjusted ---- ---- -------- -------- (Millions of
KWh) Electric Energy Sales: Residential 33,626 33,047 1.8 1.5
Commercial 27,476 27,340 0.5 0.5 Governmental 2,408 2,379 1.2 0.9
Industrial 35,638 37,843 (5.8) (5.8) ------ ------ Total to
Ultimate Customers 99,148 100,609 (1.5) (1.5) Wholesale 4,862 5,401
(10.0) ----- ----- Total Sales 104,010 106,010 (1.9) =======
======= December 31 2009 2008 % Change ---- ---- --------- Electric
Customers (End of period): Residential 2,331,433 2,304,324 1.2
Commercial 330,908 326,758 1.3 Governmental 16,017 15,394 4.0
Industrial 40,757 42,148 (3.3) ------ ------ Total Ultimate
Customers 2,719,115 2,688,624 1.1 Wholesale 25 31 (19.4) --- ---
Total Customers 2,719,140 2,688,655 1.1 ========= =========
DATASOURCE: Entergy Corporation CONTACT: Media, Chanel Lagarde,
+1-504-576-4238, , or Investors, Michele Lopiccolo,
+1-504-576-4879, Web Site: http://www.entergy.com/
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