1 Jan

Entergy Corp sees profits decline in first quarter

first_img Appendix A: Consolidated Earnings – Reconciliation of GAAP to Non- GAAP Measures First Quarter 2009 vs. 2008 (Per share in U.S. $) First Quarter ————- 2009 2008 Change As-Reported Utility, Parent & Other 0.32 0.48 (0.16) Entergy Nuclear 0.91 1.12 (0.21) Non-Nuclear Wholesale Assets (0.03) (0.04) 0.01 Consolidated As-Reported Earnings 1.20 1.56 (0.36) Less Special Items Utility, Parent & Other (0.05) – (0.05) Entergy Nuclear (0.04) – (0.04) Non-Nuclear Wholesale Assets – – – Consolidated Special Items (0.09) – (0.09) Operational Utility, Parent & Other 0.37 0.48 (0.11) Entergy Nuclear 0.95 1.12 (0.17) Non-Nuclear Wholesale Assets (0.03) (0.04) 0.01 Consolidated Operational Earnings 1.29 1.56 (0.27)  Entergy Corporation Consolidated Income Statement Three Months Ended Mar. 31 (in thousands) 2009 2008 %Inc/(Dec) (unaudited) Operating Revenues: Electric $2,026,916 $2,046,227 (0.9) Natural gas 74,049 89,395 (17.2) Competitive businesses 688,147 729,112 (5.6) Total 2,789,112 2,864,734 (2.6) Operating Expenses: Operation and maintenance: Fuel, fuel-related expenses, and gas purchased for resale 846,332 540,501 56.6 Purchased power 323,255 620,642 (47.9) Nuclear refueling outage expenses 56,779 51,258 10.8 Other operation and maintenance 644,702 611,268 5.5 Decommissioning 48,742 45,996 6.0 Taxes other than income taxes 134,397 108,571 23.8 Depreciation and amortization 257,852 244,985 5.3 Other regulatory charges (credits) – net (29,474) 35,280 (183.5) Total 2,282,585 2,258,501 1.1 Operating Income 506,527 606,233 (16.4) Other Income (Deductions): Allowance for equity funds used during construction 16,947 9,286 82.5 Interest and dividend income 30,650 54,282 (43.5) Equity in earnings (loss) of unconsolidated equity affiliates (3,127) (929) 236.6 Miscellaneous – net (10,172) (11,556) (12.0) Total 34,298 51,083 (32.9) Interest and Other Charges: Interest on long-term debt 127,965 123,144 3.9 Other interest – net 19,293 32,538 (40.7) Allowance for borrowed funds used during construction (9,812) (5,116) 91.8 Total 137,446 150,566 (8.7) Income Before Income Taxes 403,379 506,750 (20.4) Income Taxes 163,046 193,003 (15.5) Consolidated Net Income 240,333 313,747 (23.4) Preferred Dividend Requirements of Subsidiaries 4,998 4,998 – Net Income Attributable to Entergy Corporation $235,335 $308,749 (23.8) Earnings Per Average Common Share Basic $1.22 $1.60 (23.8) Diluted $1.20 $1.56 (23.1) Average Number of Common Shares Outstanding – Basic 192,593,601 192,639,605 Average Number of Common Shares Outstanding – Diluted 198,058,002 198,300,041 Entergy Corporation Utility Electric Energy Sales & Customers Three Months Ended Mar. 31 2009 2008 % % Change Weather- Adjusted (Millions of kwh) Electric Energy Sales: Residential 7,893 8,011 (1.5) (1.8) Commercial 6,194 6,238 (0.7) (1.2) Governmental 562 569 (1.1) (1.6) Industrial 8,139 9,377 (13.2) (13.2) Total to Ultimate Customers 22,788 24,195 (5.8) (6.0) Wholesale 1,387 1,290 7.5 Total Sales 24,175 25,485 (5.1) Mar. 31 2009 2008 % Change Electric Customers (End of period): Residential 2,321,488 2,297,765 1.0 Commercial 328,352 325,905 0.8 Governmental 15,519 15,161 2.4 Industrial 38,892 40,860 (4.8) Total Ultimate Customers 2,704,251 2,679,691 0.9 Wholesale 33 32 3.1 Total Customers 2,704,284 2,679,723 0.9 Source: Entergy.  NEW ORLEANS, May 4 /PRNewswire-FirstCall/ — Northstar Vermont Yankee,Entergy Corporation (NYSE: ETR) today reported first quarter 2009 as-reported earnings of $235.3 million, or $1.20 per share, compared with $308.7 million, or $1.56 per share, for first quarter 2008. On an operational basis, Entergy’s first quarter 2009 earnings were $252.6 million, or $1.29 per share, compared with $308.7 million, or $1.56 per share, in first quarter 2008.  Consolidated Earnings – Reconciliation of GAAP to Non-GAAP Measures First Quarter 2009 vs. 2008 (Per share in U.S. $) 2009 2008 Change As-Reported Earnings 1.20 1.56 (0.36) Less Special Items (0.09) – (0.09) Operational Earnings 1.29 1.56 (0.27) *GAAP refers to United States generally accepted accounting principles. Operational Earnings Highlights for First Quarter 2009 Utility, Parent & Other results were lower due to higher other taxes and depreciation and amortization expenses.Entergy Nuclear earnings decreased as a result of lower production due to additional planned refueling outage days and impairments recorded on decommissioning trust fund investments.Entergy’s Non-Nuclear Wholesale Assets results were essentially flat. “In the current uncertain climate, we have focused significant effort on positioning the company for long-term success while weathering the current economic storm,” said J. Wayne Leonard, Entergy’s chairman and chief executive officer. “While we cannot predict what will come next in these times, we will be relentless in seeking value and managing risk, and we are prepared to seize opportunities that add value for our stakeholders.” Other Business Highlights Leonard was named one of the nation’s “Best CEOs” by Institutional Investor magazine, his sixth consecutive year for achieving the honor.Entergy received its 12th and 13th industry awards for restoring power after major storms and is the only company recognized 11 years in a row by Edison Electric Institute for its storm restoration work.Indian Point 3 completed 678 continuous days of operation as it entered its refueling outage in March. This run marked an operating record for Westinghouse Pressurized Water Reactors which account for nearly one-fourth of the commercial nuclear power reactors in the U.S. Entergy will host a teleconference to discuss this release at 10 a.m. CDT on Monday, May 4, 2009, with access by telephone, 719-457-2080, confirmation code 8064872. The call and presentation slides can also be accessed via Entergy’s Web site at www.entergy.com(link is external). A replay of the teleconference will be available for seven days thereafter by dialing 719-457-0820, confirmation code 8064872. The replay will also be available on Entergy’s Web site atwww.entergy.com(link is external). Utility, Parent & OtherIn first quarter 2009, Utility, Parent & Other had earnings of $60.0 million, or 32 cents per share, on an as-reported basis and $70.7 million, or 37 cents per share, on an operational basis, compared to earnings of $95.3 million, or 48 cents per share, on as-reported and operational bases in first quarter 2008. Operational results for Utility, Parent & Other in first quarter 2009 reflect higher taxes other than income taxes due to the absence of the benefit associated with favorable resolution of tax audit issues that was included in results in first quarter 2008. Higher depreciation and amortization expense also contributed to lower results in the current quarter. Residential megawatt-hour sales in first quarter 2009, on a weather-adjusted basis, showed a 1.8 percent decrease compared to first quarter 2008, which was also a leap year. Commercial and governmental sales, after adjusting for weather, decreased 1.2 percent year over year. Industrial sales in the first quarter were down 13.2 percent compared to the same quarter of 2008. The residential and commercial and governmental sales sectors reflected a decrease quarter to quarter as the continued weakening in the economy affected customer usage across these sectors. Sales in the industrial sector for first quarter 2009 decreased significantly compared to the same quarter of 2008 primarily due to a weak economic climate that worsened in the current period. Small and mid-sized industrial customers are also being negatively affected by overseas competition. Despite the lower sales volume, net revenue at the Utility was essentially flat, 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. Entergy NuclearEntergy Nuclear earned $180.9 million, or 91 cents per share, on an as-reported basis and $187.5 million, or 95 cents per share, on an operational basis in first quarter 2009, compared to $221.7 million, or $1.12 per share, on as-reported and operational bases in first quarter 2008. Entergy Nuclear’s earnings decreased primarily as a result of lower revenue due to lower generation resulting from additional planned refueling outage days and lower revenue amortization for the Palisades below-market Power Purchase Agreement. Impairments recorded in the current period associated with decommissioning trust fund investments also contributed to lower earnings. Non-Nuclear Wholesale AssetsEntergy’s Non-Nuclear Wholesale Assets business incurred a loss of $5.6 million, or three cents per share, on both as-reported and operational bases in first quarter 2009 compared to a loss of $8.2 million, or four cents per share, a year ago. OutlookEntergy is reaffirming 2009 earnings guidance in the range of $6.70 to $7.30 per share on an operational basis, assuming a business-as-usual operation for the full year. As-reported guidance ranges from $6.56 to $7.16 and reflects (14) cents 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, both discussed below. Guidance for 2009 does not include a special item for expenses, which were incurred beginning in 2008 and continuing in first quarter 2009, anticipated in connection with the outside services provided to pursue the spin-off. Entergy has 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 guidance ranges. Business SeparationOn 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: An advisory committee of announced members of the Enexus Board has begun to meet periodically.Discussions continue with regulators in Vermont and New YorkIn Vermont, all scheduled procedural matters have been completed and a decision from the Vermont Public Service Board is pending.In New York, settlement discussions are ongoing per the December 2008 notification by the ALJs that the parties intended to conduct a settlement discussion.Entergy and Enexus remain in a rolling readiness posture. 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 May 4, 2009, a copy of which has been filed today with the Securities Exchange Commission on Form 8-K and is available on Entergy’s investor relations Web site atwww.entergy.com/investor_relations(link is external). 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 and (ii) 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. last_img read more

26 Aug

United States team overwhelms Puerto Rico to win World Baseball Classic

first_imgLOS ANGELES — Team USA manager Jim Leyland arrived at his pregame press conference Wednesday afternoon, looked at the crowd of reporters and said, “we’re trying to make America great again.”What the U.S. accomplished by beating Puerto Rico 8-0 in the championship game of the World Baseball Classic was less cliché and more tangible: It compelled fans and players alike to care about a tournament that began, for the U.S. at least, as a mere exhibition back in 2006. “For the most part, up until this point, the other countries were probably into this event a little bit more than the United States,” Leyland said. “But in talking to our players, I know they’re going to spread the word. I’ve had some players already tell me this is the greatest experience of their life.”The announced crowd of 51,565 was divided in its loyalties but united in anticipation of a close game. Both semifinal games were decided by one run — Puerto Rico beat The Netherlands 4-3 and Team USA beat Japan 2-1.Once Angel Pagan doubled to break up Stroman’s no-hitter in the seventh inning, the championship featured less suspense than any game played this week in Chavez Ravine.Stroman, a right-hander for the Toronto Blue Jays, was removed after allowing the double to Pagan. He walked one batter, struck out three, and was generally masterful in denying solid contact. Not including Pagan’s hit, Puerto Rico put only three balls in the outfield against Stroman all night.“I was confident. I was locked in,” Stroman said. “Luckily we came out with the ‘W’.”When Leyland took the ball from Stroman, the pitcher shot a few glances at the Puerto Rico dugout before nodding to the cheering crowd. It was a subtle reminder of the complex loyalties at stake in the tournament.By virtue of his heritage, Stroman was eligible to play for either Puerto Rico or the United States. His mother, Adlin Auffant, is Puerto Rican. His father, Earl, is a police detective in Long Island. When he announced on Twitter in December that he would pitch for Team USA, Stroman included the mea culpa, “sorry momma.”Some Puerto Rico supporters did not accept the apology and trolled Stroman’s mother directly on social media. The Puerto Rico lineup seemed plenty motivated last Friday, when Stroman started for the United States and allowed four runs in the first inning of a 6-5 loss. The rally felt more ominous because Puerto Rico’s dugout emptied to celebrate each run as if it was Game 7 of the World Series.But in this, the real winner-take-all championship game, Stroman had the upper hand from the outset. He was chosen MVP of the tournament. But Stroman said that beating Puerto Rico added no extra meaning to the victory.“Each and every guy came in with a goal, and that was to win it,” he said.Kinsler provided a minor source of controversy himself. After Tuesday’s game, he said “I hope kids watching the WBC can watch the way we play the game and appreciate the way we play the game as opposed to the way Puerto Rico plays or the Dominican plays.”Kinsler was merely expressing hope that the American players’ passion would rub off on its fan base. Perhaps it did. Commissioner Rob Manfred said that the WBC set ratings records on MLB Network for non-playoff games; the near-sellout crowd at Dodger Stadium provided an electric atmosphere that was audible on television.The United States got contributions from top to bottom. All nine of its starters reached base and eight collected at least one hit. Christian Yelich (2 for 5) singled to drive in Kinsler (2 for 5) in the fifth inning, then scored on a single by Andrew McCutchen (2 for 4). In the seventh inning, the U.S. rallied for three runs with two outs. Brandon Crawford’s bases-loaded single drove in Nolan Arenado and Eric Hosmer. Giancarlo Stanton added an RBI single of his own to provide the final score.The U.S. batted around in the seventh inning, highlighted by Brandon Crawford and Giancarlo Stanton’s RBI singles.Sam Dyson, Pat Neshek and David Robertson each threw a scoreless inning to complete the shutout.Of all the teams in the tournament, Leyland said, “I thought we had the best pitching staff, starters and relievers, and I think that proved to be true.”The U.S. allowed 17 earned runs in eight tournament games, finishing with a 2.15 ERA.Leyland dedicated the Americans’ win to the country’s military personnel twice after the game. The second time, his voice cracked. The 73-year-old manager, now a special assistant for the Detroit Tigers, said he had no plans to wear a baseball uniform again after the tournament. After failing to advance past the semifinals in 2006, 2009 and 2013, Team USA won consecutive do-or-die games against the defending champion Dominican Republic and two-time champion Japan. It then played a flawless game against an all-star laden Puerto Rican squad that hadn’t lost a game in the tournament. Team USA starter Marcus Stroman threw six innings without allowing a hit. Ian Kinsler’s two-run home run in the third inning against Puerto Rico starter Seth Lugo began the rout. The U.S. tacked on two runs in the fifth and three in the seventh to put the game out of reach.In the end, the United States did not need all of its best players to win the tournament, or even to fill Dodger Stadium to the top of the upper deck in March. center_img Newsroom GuidelinesNews TipsContact UsReport an Errorlast_img read more