Cleco Corp. First-Quarter Results Up 24 Percent; Increased Earnings from Wholesale Generating Fleet.Energy Editors/Business Editors PINEVILLE There are several places named Pineville in the United States.
Cleco Corp. (NYSE NYSE See: New York Stock Exchange :CNL CNL CityNightLine (German Rail) CNL Cancel CNL Clinical Nurse Leader Cnl Colonel CNL Center for Naval Leadership CNL Compensated Neutron Log (oil industry) ) (PCX (1) A bitmapped graphics file format that handles monochrome, 2-bit, 4-bit, 8-bit and 24-bit color and uses RLE to achieve compression ratios of approximately 1.1:1 to 1.5:1. Images with large blocks of solid colors compress best under the RLE method. See PC Paintbrush. :CNL) today reported first quarter 2003 earnings of $0.36 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, a 24 percent increase over the $0.29 recorded in first quarter 2002. Results reflected lower income tax expense at Cleco Power and higher earnings from the Perryville Perryville is the name of some places in the United States of America:
pref. Middle: midbrain. 2002. Offsetting factors included higher maintenance and depreciation charges at Cleco Evangeline. -0-
Diluted Earnings per Share
Three Months Ended March 31, 2003
---------------------------------
Subsidiary 2003 2002
---------- ---- ----
Cleco Power LLC $0.33 $0.30
Cleco Midstream Resources LLC 0.06 0.01
Corporate and Other (0.03) (0.02)
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Earnings applicable to common stock $0.36 $0.29
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Major Reconciling Items for First-Quarter EPS 2003 vs. 2002:
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$0.29 2002 First-Quarter Diluted EPS
0.01 Higher Cleco Power nonfuel revenue
(0.01) Higher Cleco Power nonfuel expenses
0.03 Lower Cleco Power income tax expense
0.03 Higher contribution from Cleco Midstream generating projects
0.02 Lower Cleco Midstream administrative expenses
(0.01) Higher corporate administrative expenses
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$0.36 2003 First-Quarter Diluted EPS
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Cleco Power LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control Cleco Power posted 2003 first-quarter earnings $0.03 per share higher than in the same period of 2002. Nonfuel revenue increased by about $0.01 per share in the quarter-to-quarter comparison to 2002, supported by a 2 percent increase in kilowatt-hour sales mainly driven by slightly colder weather. Expenses for Cleco Power were about $0.01 per share higher in first quarter 2003 than in first quarter 2002. The primary factors behind the increase were higher maintenance expenses related to planned substation and line rehabilitation rehabilitation: see physical therapy. and amortization of deferred storm expenses. Income taxes were approximately $0.03 per share lower in first quarter 2003 than in first quarter 2002 largely due to the carryforward carryforward 1. A business operating loss that, for tax purposes, may be claimed a certain number of years in the future, often up to 15 years. of a 2002 state income tax net operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. and an adjustment related to accumulated ac·cu·mu·late v. ac·cu·mu·lat·ed, ac·cu·mu·lat·ing, ac·cu·mu·lates v.tr. To gather or pile up; amass. See Synonyms at gather. v.intr. To mount up; increase. deferred income taxes. Cleco Midstream mid·stream n. 1. The middle part of a stream. 2. The part of a course that is neither at the beginning nor at the end: the midstream of life. Noun 1. Resources LLC Cleco Midstream posted earnings per diluted share of $0.06 for the first quarter of 2003, up from $0.01 per share earned during the first quarter of 2002. The earnings contribution from Cleco Midstream's wholesale generating fleet was $0.03 per share higher than in the first quarter of 2002, primarily because the Acadia and Perryville facilities began commercial operations in mid-2002. The two plants added $0.13 per share to first quarter 2003 earnings, but those amounts were largely offset by lower results from Cleco Evangeline. That plant saw a $0.10 per share decrease in earnings compared to the same period of 2002 because of higher maintenance and depreciation expenses. Cleco Evangeline's increased expenses were due to design changes of certain combustion combustion, rapid chemical reaction of two or more substances with a characteristic liberation of heat and light; it is commonly called burning. The burning of a fuel (e.g., wood, coal, oil, or natural gas) in air is a familiar example of combustion. turbine turbine, rotary engine that uses a continuous stream of fluid (gas or liquid) to turn a shaft that can drive machinery. A water, or hydraulic, turbine is used to drive electric generators in hydroelectric power stations. parts and a reassessment Reassessment The process of re-determining the value of property or land for tax purposes. Notes: Property is usually reassessed on an annual basis. You may request a "reassessment" if you disagree with your assessment. of the useful life of the facility's combustion turbine parts. Cleco Midstream's administrative and development expenses were $0.02 per share lower in quarter-to-quarter comparisons mainly due to decreased marketing and project development activities. Other Higher administrative and legal expenses increased corporate and other expenses by $0.01 per share in first quarter 2003 compared to first quarter 2002. 2003 Update: Cleco President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. David Eppler observed that thus far this year, the company has made steady progress toward its goals to: -- reinforce its balance sheet and improve liquidity; -- reduce risks associated with the Midstream generating projects through either asset sales or contract restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). ; and -- build on the strengths of its utility business. "We recently completed the sale of $100 million of five-year Cleco Corporation notes with a coupon of 7 percent and $75 million of 10-year Cleco Power notes with a coupon of 5-3/8 percent," Eppler said. "We also renewed our 364-day credit facilities credit facilities npl → facilidades fpl de crédito credit facilities npl → facilités fpl de paiement credit facilities totaling $185 million for the combined companies. These financings solidify so·lid·i·fy v. so·lid·i·fied, so·lid·i·fy·ing, so·lid·i·fies v.tr. 1. To make solid, compact, or hard. 2. To make strong or united. v.intr. our corporate liquidity position and reduced our refinancing risk In banking and finance, refinancing risk is the possibility that a borrower cannot refinance by borrowing to repay existing debt. Many types of commercial lending incorporate bullet payments at the point of final maturity; often, the intention or assumption is that the borrower for the next 18 months and beyond. "Just this week we announced that we've signed a letter of intent to sell our Perryville generating project to Entergy," Eppler continued. "Proceeds from that sale will enable us to eliminate all Perryville project debt as well as some corporate level debt. We still need to clear some hurdles to finalize fi·nal·ize tr.v. fi·nal·ized, fi·nal·iz·ing, fi·nal·iz·es To put into final form; complete or conclude: "They have jointly agreed ... the transaction, but we are hopeful the sale will be completed before year-end. Completion of the sale will not only reinforce our balance sheet, it will significantly diminish exposure to the less stable wholesale energy business. We are also continuing discussions with the tolling contract counterparties Counterparties The parties on either side of an interest rate swap or a currency, equity or commodity swap, or to an options or futures position. at our other wholesale projects so we can reduce risks at those projects as much as possible. "We've just started the process of replacing Cleco Power's power purchase agreements, which largely expire expire /ex·pire/ (ek-spi´er) 1. to exhale. 2. to die. ex·pire v. 1. To breathe one's last breath; die. 2. To exhale. at the end of 2004," Eppler said. "The solicitation solicitation In criminal law, the act of asking, inducing, or directing someone to commit a crime. The person soliciting another becomes an accomplice to the crime. The term also refers to the act of obtaining bribes, as well as to the crime of a prostitute who offers sexual of offers to supply up to 750 megawatts of capacity for our utility began in March, with initial proposals due in May. We hope to complete that process by late 2003. "In terms of 2003 earnings outlook, we expect the higher Evangeline maintenance costs and higher interest expense as a result of the two recent note issuances to be substantially offset by lower Cleco Power taxes. Estimates are the Perryville sale will reduce 2003 earnings targets by approximately $0.10 per share, so, if that transaction proceeds as planned, Cleco's overall earnings targets for 2003 will be revised to $1.55 to $1.65 per share, down from the previous level of $1.65 to $1.75. Assuming the Perryville transaction is completed, that plant's planned $0.30 per share annual contribution will be eliminated in 2004 earnings targets." Cleco management will discuss the company's 2003 first-quarter results during a conference call scheduled for 11 a.m. EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT (10 a.m. CDT CDT abbr. Central Daylight Time CDT Central Daylight Time CDT n abbr (US) (= Central Daylight Time) → hora de verano del centro; (BRIT ) Friday, May 9, 2003. The call will be broadcast live on the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the , and replays will be available for 12 months. Investors may access the webcast at http://www.shareholder.com/cnl/medialist.cfm. Cleco's businesses referred to in this news release are:
Cleco Power LLC
Cleco Midstream Resources LLC
Other (Cleco Corporation; Cleco Support Group LLC, Cleco
Innovations LLC; CLE Resources, Inc.)
Cleco Corp. is a regional energy services company headquartered in Pineville, La. It operates a regulated electric utility company that serves 260,000 customers across Louisiana Louisiana (ləwē'zēăn`ə, l  ē'–), state in the S central United States. It is bounded by Mississippi, with the Mississippi R. . Cleco also operates a
wholesale energy business that has approximately 2,100 megawatts of
generating capacity. For more information about Cleco, visit
www.cleco.com.Financial tables follow:
CLECO CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except share and per share amounts)
(unaudited)
Three Months Ended March 31 2003 2002
----------------------------------------------------------------------
OPERATING REVENUE
Electric operations $ 138,866 $ 121,962
Tolling operations 23,776 11,620
Energy trading, net (1) (194) 1,012
Energy operations 18,654 8,637
Other operations 7,258 6,795
-----------------------
Gross Operating Revenue 188,360 150,026
Electric customer credits (911) (350)
-----------------------
Total Operating Revenue 187,449 149,676
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OPERATING EXPENSES
Fuel used for electric generation 32,702 26,460
Power purchased for utility customers 42,596 32,103
Purchases for energy operations 17,768 7,740
Operations and maintenance 25,599 25,277
Depreciation 23,851 14,948
Taxes other than income taxes 9,783 10,078
-----------------------
Total Operating Expenses 152,299 116,606
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OPERATING INCOME 35,150 33,070
Interest expense and AFUDC, net (17,517) (11,812)
Equity income from investees 7,796 572
Other income (expenses), net 623 325
-----------------------
NET INCOME BEFORE INCOME TAXES AND PREFERRED
DIVIDENDS 26,052 22,155
Federal and state income tax expense 8,239 8,102
-----------------------
Net income before preferred dividends 17,813 14,053
Preferred dividend requirements, net 477 472
-----------------------
Net income applicable to common stock $ 17,336 $ 13,581
=======================
Earnings per share
Basic $ 0.37 $0.30
Diluted $ 0.36 $0.29
Average number of shares outstanding
Basic 47,068,584 44,973,466
Diluted 49,485,666 47,663,219
Cash dividends paid per share of common stock $0.225 $0.22
(1) Cleco Corporation adopted Issue 1 of EITF No. 02-3. Issue 1
requires that all gains and losses from energy trading contracts,
as defined in EITF No. 98-10, be reported on the income statement
on a net basis. The netting requirement reduces Cleco's gross
revenue and expenses reported in the statements of income prepared
after the effective date of July 15, 2002. Prior period amounts
have been reclassified in order to be consistent with current
reporting requirements.
CLECO CORPORATION
CONSOLIDATED BALANCE SHEETS
(In thousands)
(unaudited)
March 31, March 31,
2003 2002
----------------------------------------------------------------------
Assets
Current assets
Cash and cash equivalents $ 91,929 $ 3,987
Accounts receivable, net 59,407 84,773
Other current assets 94,847 72,501
----------------------------------------------------------------------
Total current assets 246,183 161,261
Property, plant and equipment, net 1,569,393 1,225,255
Equity investment in investees 272,088 240,679
Prepayments, deferred charges and other 203,067 159,629
----------------------------------------------------------------------
Total Assets $2,290,731 $1,786,824
======================================================================
Liabilities and Shareholders' Equity
Liabilities
Current liabilities
Short-term debt $ 337,617 $ 217,380
Accounts payable 73,830 86,295
Other current liabilities 35,227 54,973
----------------------------------------------------------------------
Total current liabilities 446,674 358,648
Deferred credits and other liabilities 388,762 276,922
Long-term debt, net 866,197 638,267
----------------------------------------------------------------------
Total Liabilities 1,701,633 1,273,837
----------------------------------------------------------------------
Shareholders' equity
Common stock 573,778 496,059
Preferred stock 18,181 16,928
Other comprehensive income (2,861) -
----------------------------------------------------------------------
Total Shareholders' Equity 589,098 512,987
----------------------------------------------------------------------
Total Liabilities and Shareholders' Equity $2,290,731 $1,786,824
======================================================================
Please note: In addition to historical financial information, this news release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. about future results and circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or with respect to which there are many risks and uncertainties, including the weather and other natural phenomena, state and federal legislative and regulatory initiatives, the timing and extent of changes in commodity prices and interest rates, the operating performance of Cleco Power's and Midstream's facilities, the financial condition of the Company's tolling agreement counterparties, the performance of the tolling agreements by such counterparties, the possible restructuring of the tolling agreements and the other risks and uncertainties more fully described in the Company's latest Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. . Actual results may differ materially from those indicated in such forward-looking statements. |
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