Cleco Corp. Posts First Quarter 2004 Earnings of $0.27 per Share.Business Editors PINEVILLE, La.--(BUSINESS WIRE)--May 5, 2004 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 2004 earnings of $0.27 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, down from the $0.36 per share recorded in first quarter 2003. The decrease in earnings primarily reflected higher expenses at Cleco Power. The earnings contribution from 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. for the first quarter of 2004 was slightly below that recorded in the first quarter of 2003. Results at Cleco Evangeline LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control improved, but they were partially offset by losses at Perryville Energy Partners LLC.
Diluted EPS
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Three Months Ended March 31,
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Subsidiary 2004 2003
---------- ---- ----
Cleco Power LLC $0.25 $0.33
Cleco Midstream Resources LLC 0.05 0.06
Corporate and Other (0.03) (0.03)
------ ------
Earnings applicable to common stock $0.27 $0.36
"Our first-quarter results are within our anticipated range despite cost pressures from several areas," 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 said. "Cleco Power revenue was strong, and both Acadia and Evangeline performed well. Just as important as the quarter's financial results was the extension by the Louisiana Public Service Commission Louisiana Public Service Commission (LPSC) is an independent regulatory agency serving the public of Louisiana by managing its public utilities and motor carriers. It is the successor to the Railroad Commission of Louisiana. (LPSC LPSC Lunar and Planetary Science Conference (League City, Texas) LPSC Louisiana Public Service Commission (Baton Rouge, LA) LPSC Laboratoire de Physique Subatomique et de Cosmologie ) of our rate stabilization Stabilization The action undertakes a country when it buys and sells its own currency to protect its exchange value. Actions registered competitive traders undertake by on the NYSE to meet the exchange requirement that 75% of their traded be stabilizing, meaning that sell orders plan for an additional 12 months. The plan now runs through September 2005. "The extension provides us the time to thoroughly analyze offers we anticipate receiving through a request for proposals (RFP (Request For Proposal) A document that invites a vendor to submit a bid for hardware, software and/or services. It may provide a general or very detailed specification of the system. 1. (business) RFP - Request for Proposal. 2. ) for power supplies we plan to issue in June. We'll then compare those bids against several self-build projects we are considering. Our intent is to put together a balanced generation portfolio that provides our customers with reliable, low-cost power," Eppler said.
Major Reconciling Items for First-Quarter EPS 2004 vs. 2003:
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$0.36 2003 First-Quarter Diluted EPS
0.01 Higher Cleco Power nonfuel revenue, net of customer
refund accrual
(0.05) Higher Cleco Power nonfuel expenses
(0.01) Higher Cleco Power depreciation
(0.01) Higher Cleco Power interest expense
(0.02) Higher Cleco Power effective tax rate
(0.01) Lower contribution from Midstream generating projects
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$0.27 2004 First-Quarter Diluted EPS
Cleco Power LLC Cleco Power posted 2004 first-quarter earnings of $0.25 per share, $0.08 per share lower than the $0.33 per share recorded in the same period of 2003. Cleco Power's overall nonfuel revenue increased by about $0.01 per share in the quarter-to-quarter comparison to 2003. Revenues benefited from customer growth, warmer than normal March 2004 weather, new energy management services that began in May 2003, and a renegotiated contract for additional ancillary Subordinate; aiding. A legal proceeding that is not the primary dispute but which aids the judgment rendered in or the outcome of the main action. A descriptive term that denotes a legal claim, the existence of which is dependent upon or reasonably linked to a main claim. services with a municipal customer. Offsetting those increases were lower revenues due to the mid- mid- pref. Middle: midbrain. 2003 renegotiation of rates for a large industrial customer and milder than normal January and February weather.
(Million kWh) For the three months ended March 31,
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2004 2003 Change
---- ---- ------
Electric Sales
Residential 822 805 2.1%
Commerical 406 394 3.0%
Industrial 660 658 0.3%
Other retail 134 134 0.0%
Unbilled (82) (81) 1.2%
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Total retail 1,940 1,910 1.6%
Sales for resale 187 163 14.7%
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Total retail and wholesale
customer sales 2,127 2,073 2.6%
Nonfuel expenses for Cleco Power were about $0.05 per share higher in the first quarter of 2004 than in the first quarter of 2003, mostly due to higher employee benefit costs, and professional services (job) professional services - A department of a supplier providing consultancy and programming manpower for the supplier's products. and insurance costs. Depreciation was $0.01 per share higher primarily due to property additions. Additionally, interest expense was $0.01 per share higher largely due to the issuance of senior notes in April 2003, partially offset by effects of the redemption of medium-term notes Medium-term note (MTN) A corporate debt instrument that is continuously offered to investors over a period of time by an agent of the issuer. Investors can select from maturity bands of: 9 months to 1 year, more than 1 year to 18 months, more than 18 months to 2 years, etc. and the repayment of short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. bank lines. Lastly, Cleco Power's first quarter 2004 earnings were about $0.02 per share lower due to a higher effective tax rate than in the first quarter of 2003. State tax expense increased in 2004 as a result of a 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. 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. that was utilized during 2003. Cleco Midstream Resources LLC Cleco Midstream earned $0.05 per share for the first quarter of 2004, $0.01 per share less than the $0.06 per share posted in the first quarter of 2003. The Acadia project recorded earnings of $0.06 per share for the first quarter of 2004, up from $0.04 per share earned during the first quarter of 2003, primarily because the plant ran more and incurred lower operating and maintenance costs in the 2004 period. Evangeline earned $0.02 per share for the first quarter of 2004. The plant recorded a loss of $0.07 per share during the first quarter of 2003 when the project experienced higher maintenance and depreciation costs due to 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 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. In accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with requirements under Financial Accounting Standards Board Financial Accounting Standards Board (FASB) Board composed of independent members who create and interpret Generally Accepted Accounting Principles (GAAP). (FASB FASB See: Financial Accounting Standards Board FASB See Financial Accounting Standards Board (FASB). ) Interpretation No. 46R (FIN fin, organ of locomotion characteristic of fish and consisting of thin tissue supported by cartilaginous or bony rays. In some fish, e.g., the eel, a single fin extends from the back, around the tail, and along the ventral surface. 46R --Consolidation of Variable Interest Entities), Cleco Evangeline LLC was deconsolidated from Cleco Corp.'s consolidated financial statements Consolidated Financial Statements The combined financial statements of a parent company and its subsidiaries. Notes: Because consolidated financial statements present an aggregated look at the financial position of a parent and its subsidiaries, they enable you to gauge as of March 31, 2004. The deconsolidation was required under FIN 46R because under the long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. tolling agreement, the company expects to be reimbursed for more than 50 percent of Evangeline's variable expenses. Since the subsidiary was deconsolidated on March 31, revenues and expenses for the first quarter of 2004 were detailed on Cleco Corp.'s consolidated income statement consolidated income statement An income statement that combines the income statements of two or more organizations. As with other consolidated statements, a consolidated income statement eliminates any funds owed to or due from firms within the same group. . For future periods, the subsidiary's net results will be accounted for as equity income from investees. The subsidiary's assets and liabilities were not included on the March 31, 2004, Cleco Corp. balance sheet, but instead the corporation's investment in the project was accounted for as an equity investment in investees. Prior to its Jan. 28, 2004, bankruptcy bankruptcy, in law, settlement of the liabilities of a person or organization wholly or partially unable to meet financial obligations. The purposes are to distribute, through a court-appointed receiver, the bankrupt's assets equitably among creditors and, in most filing, Perryville posted a $0.03 per share loss, which is included in Cleco Corp.'s first quarter 2004 income statement. For the first quarter of 2003, Perryville had earnings of $0.09 per share. Following the bankruptcy filing, Perryville Energy Partners LLC and its holding company, Perryville Energy Holdings LLC (collectively, Perryville), were deconsolidated from Cleco Corp. As a result, no income or loss following the bankruptcy filing was recognized on Cleco's consolidated financial statements. For the months of February and March 2004, Perryville posted a $0.9 million loss, which was not included in the Cleco Corp. income statement for the quarter. As a result of the deconsolidation of both the Perryville and Evangeline subsidiaries, all project-related debt (nonrecourse Nonrecourse In the case of default, the lender has no ability to claim assets over and above what the limited partners contributed. to the corporation) has been removed from Cleco Corp.'s balance sheet. Other Corporate and other expenses in the first quarter of 2004 were comparable to expenses during the first quarter of 2003. Perryville Project on Schedule The Perryville bankruptcy process continues on schedule. On April 23, the U.S. Bankruptcy Court bankruptcy court n. the specialized Federal court in which bankruptcy matters under the Federal Bankruptcy Act are conducted. There are several bankruptcy courts in each state, and each one's territory covers several counties. for the Western District of Louisiana The District of Louisiana or Louisiana District was an official United States government designation for the portion of the Louisiana Purchase that had not been organized into Orleans Territory. The area north of present-day Arkansas was also known as Upper Louisiana. approved Perryville's asset sales agreement with Entergy. The parties still must obtain state and federal regulatory approvals of the transaction before the sale can be completed, and the company cannot be certain when or if those approvals will be obtained. In addition, other customary closing conditions must be satisfied or waived before the sale can be completed. In the meantime Adv. 1. in the meantime - during the intervening time; "meanwhile I will not think about the problem"; "meantime he was attentive to his other interests"; "in the meantime the police were notified" meantime, meanwhile , the unit continues to perform well and is providing power to Entergy under an interim power purchase agreement. Cleco Power RFP Issued In April, Cleco Power announced its intent to seek proposals for up to 1,000 megawatts of capacity to replace existing contracts and accommodate load growth, as well as 800 megawatts of capacity to replace older natural gas-fired units. Cleco made an informational filing with the LPSC on April 15 and expects to formally issue the RFP in late June. Eppler said, "We are looking at all options to create the lowest cost, most reliable long-term power supply possible for our customers. We'll be analyzing fuel conversion opportunities at our existing gas plants, new asset construction, generating asset purchases, power contracts, as well as transmission investments. We hope to have recommendations in front of the LPSC for approval and certification in early 2005." In March the LPSC extended Cleco's rate stabilization plan though September 2005 in order to allow Cleco Power the time needed to compile To translate a program written in a high-level programming language into machine language. See compiler. a broad, long-term integrated resource plan. The rate plan, which allows a maximum effective return on equity of 12.625 percent, was due to 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. in September 2004. Credit Facilities credit facilities npl → facilidades fpl de crédito credit facilities npl → facilités fpl de paiement credit facilities Renewed On April 30, Cleco Corp. and Cleco Power finalized See finalization. credit facilities totaling $275 million, replacing $185 million in expiring ex·pire v. ex·pired, ex·pir·ing, ex·pires v.intr. 1. To come to an end; terminate: My membership in the club has expired. 2. credit lines. "The $150 million Cleco Corp. facility is a three-year credit line, which effectively prefinances the $100 million corporate senior notes expiring in May 2005," Eppler said. "The expanded $125 million Cleco Power 364-day credit facility adds liquidity, which will be necessary should we proceed with any of the proposed investments under the integrated resource plan." Annual Meeting The company's annual meeting of shareholders was held in Alexandria, La., on April 23. At the meeting, shareholders elected four directors for three-year terms: Sherian G. Cadoria, retired brigadier general of the U.S. Army and president of Cadoria Speaker and Consultancy Service; Richard B. Crowell, member of the law firm of Crowell & Owens; Eppler; and W. Larry Westbrook, retired chief financial officer of Southern Company. 2004 Earnings Guidance Unchanged Results for the first quarter of 2004 were in line with expectations previously provided by the company. Cleco is maintaining its 2004 earnings target of $1.25 to $1.35 per share. That target assumes no net income effect from the Perryville project. The target also assumes normal weather for utility power sales and continued performance of the tolling contracts at Acadia and Evangeline. Cleco management will discuss the company's 2004 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 ) Thursday, May 6, 2004. The call will be broadcast live on the Internet, and replays will be available for 12 months. Investors may access the webcast through the company's Web site at www.cleco.com by selecting "For Investors" and then "1st Quarter 2004 Earnings Conference Call."
Cleco's businesses referred to in this news release are:
Cleco Power LLC
Cleco Midstream Resources LLC
Perryville Energy Partners, LLC; Perryville Energy Holdings, LLC
Other (Cleco Corporation; Cleco Support Group LLC, Cleco
Innovations LLC; CLE Resources, Inc.)
Cleco Corp. is an energy services company headquartered in Pineville, La. It operates a regulated electric utility that serves 264,000 customers across Louisiana. Cleco also operates a wholesale energy business that has approximately 2,100 megawatts of generating capacity, including the Perryville plant, a 718-megawatt plant. Perryville's sale to Entergy Louisiana Inc. is pending. For more information about Cleco, visit www.cleco.com. Financial tables follow:
CLECO CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Thousands, except share and per share amounts)
(UNAUDITED)
For the three months ended March 31 2004 2003
----------------------------------------------------------------------
Operating revenue
Electric operations $149,379 $138,866
Tolling operations 10,255 23,776
Energy trading, net (53) (194)
Energy operations 17,098 18,654
Other operations 6,910 7,258
Affiliate revenue 842 -
---------------------
Gross operating revenue 184,431 188,360
Electric customer credits (721) (911)
---------------------
Total operating revenue 183,710 187,449
---------------------
Operating expenses
Fuel used for electric generation 30,143 32,702
Power purchased for utility customers 55,109 42,596
Purchases for energy operations 15,950 17,768
Operations and maintenance 28,832 25,599
Depreciation 16,363 23,851
Taxes other than income taxes 10,104 9,783
---------------------
Total operating expenses 156,501 152,299
---------------------
Operating income 27,209 35,150
Interest income 375 677
Allowance for other funds used during
construction 842 910
Equity income from investees 8,638 7,796
Other income 96 434
Other expense (478) (1,398)
---------------------
Income before interest charges 36,682 43,569
Interest charges
Interest charges, including amortization of
debt expenses, premium and discount, net of
capitalized interest 17,933 17,723
Allowance for borrowed funds used during
construction (282) (206)
---------------------
Total interest charges 17,651 17,517
---------------------
Net income before income taxes and preferred
dividends 19,031 26,052
Federal and state income taxes 5,653 8,239
---------------------
Net income before preferred dividends 13,378 17,813
Preferred dividends requirements, net 499 477
---------------------
Net income applicable to common stock $12,879 $17,336
=====================
CLECO CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Continued)
(Thousands, except share and per share amounts)
(UNAUDITED)
For the three months ended March 31 2004 2003
----------------------------------------------------------------------
Average shares of common stock outstanding
Basic 46,916,535 47,068,584
Diluted 49,266,592 49,485,666
Basic earnings per share
Net income applicable to common stock $ 0.27 $0.37
Diluted earnings per share
Net income applicable to common stock $ 0.27 $0.36
Cash dividends paid per share of common stock $0.225 $0.225
CLECO CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Thousands)
(UNAUDITED)
At March 31, At March 31,
2004 2003
----------------------------------------------------------------------
Assets
Current assets
Cash and cash equivalents $80,108 $91,929
Account receivable, net 48,094 59,407
Other current assets 83,170 94,847
----------------------------------------------------------------------
Total current assets 211,372 246,183
Property, plant and equipment, net 1,052,702 1,569,393
Equity investment in investee 312,777 272,088
Prepayments, deferred charges and other 164,430 203,067
----------------------------------------------------------------------
Total assets $1,741,281 $2,290,731
======================================================================
Liabilities
Current liabilities
Short-term debt $116,076 $337,617
Accounts payable 60,020 73,830
Other current liabilities 49,170 35,227
----------------------------------------------------------------------
Total current liabilities 225,266 446,674
Deferred credits and other liabilities 463,420 388,762
Long-term debt, net 550,590 866,197
----------------------------------------------------------------------
Total liabilities 1,239,276 1,701,633
----------------------------------------------------------------------
Shareholders' equity
Preferred stock 19,510 18,181
Common stock 486,214 573,778
Other comprehensive income (3,719) (2,861)
----------------------------------------------------------------------
Total shareholders' equity 502,005 589,098
----------------------------------------------------------------------
Total liabilities and shareholder's
equity $1,741,281 $2,290,731
======================================================================
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 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. , the performance of the tolling agreements by such counterparties, the completion of the pending sale of the Perryville Plant, the resolution of damage claims against Mirant Corp. and certain of its subsidiaries, 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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