Cleco Corp. Reports 2004 Earnings Rise to $1.32; Announces Earnings Guidance for 2005.PINEVILLE There are several places named Pineville in the United States.
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) ) today announced it earned $1.32 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 in 2004, compared to a loss of $0.79 per diluted share in 2003. Results for 2003 included a $1.94 per share asset-impairment charge associated with the company's Perryville Perryville is the name of some places in the United States of America:
1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. charge, 2003 earnings would have totaled $1.15 per diluted share. The increase in 2004 earnings was attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk primarily to higher 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 (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control (Cleco Midstream) contributions, partially offset by the costs of the settlement of the Cleco Power LLC (Cleco Power) 2001-2002 fuel audit. For the fourth quarter, earnings totaled $0.28 per diluted share compared to a loss of $0.23 per diluted share reported for the fourth quarter of 2003. Excluding a fourth-quarter 2003 Perryville impairment charge of $0.17 per share, the 2003 fourth-quarter loss would have been $0.06 per diluted share. Results for the fourth quarter of 2003 included operating losses 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. at the Perryville project following its counterparty's 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 , expensing of prepaid pre·pay tr.v. pre·paid, pre·pay·ing, pre·pays To pay or pay for beforehand. pre·pay  ment n. costs under the
Evangeline Evangelineconcerns peaceful village vacated and destroyed during war. [Am. Lit.: “Evangeline” in Magill I, 261–263] See : Disaster Evangeline lifelong search for lover, Gabriel. [Am. Lit. project's renegotiated maintenance agreement, and asset-impairment charges on Cleco Energy LLC (Cleco Energy) natural gas pipeline assets. "We're we're Contraction of we are. we're we are pleased to report solid earnings for 2004, including a 2.2 percent increase in utility power sales. Just as important, we have ended the year with a stronger balance sheet and more liquidity. During 2004, we paid down $68 million of Cleco Corp. and Cleco Power debt and issued $36 million in equity," said David Eppler, 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. of Cleco Corp. "While we've we've Contraction of we have. we've have continued to strengthen our financial base, Cleco Power is implementing an integrated resource plan that will diversify diversify To acquire a variety of assets that do not tend to change in value at the same time. To diversify a securities portfolio is to purchase different types of securities in different companies in unrelated industries. its fuel mix, increase its competitiveness, and position our utility for 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. growth," Eppler said. Summary of Financial Results: In the tables below, the diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of allocated to subsidiaries, the diluted earnings per share of Cleco Midstream and the total diluted earnings per share data that exclude the 2003 Perryville asset-impairment charge are not measures defined under accounting principles generally accepted in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. (GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). ). Management believes these numbers are useful to investors in understanding the results of operations of Cleco Midstream because they illustrate the impact that the asset-impairment charge had separately from Cleco Midstream's other operational results. The total earnings non-GAAP data are reconciled rec·on·cile v. rec·on·ciled, rec·on·cil·ing, rec·on·ciles v.tr. 1. To reestablish a close relationship between. 2. To settle or resolve. 3. to their most comparable financial measure calculated and presented 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 GAAP in the tables below. The Cleco Midstream, Cleco Midstream generating projects and Perryville non-GAAP earnings data presented below are reconciled to their most comparable financial measure calculated and presented in accordance with GAAP in the attached Schedule I. Consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: earnings (loss) allocated to subsidiaries non-GAAP data presented below are reconciled to their most comparable financial measure calculated and presented in accordance with GAAP in the attached Schedule II.
Consolidated Diluted Earnings (Loss) Per Share
Allocated to Subsidiaries
-------------------------
Three Months
ended Dec. 31,
------------------
Subsidiary 2004 2003
----------
Cleco Power $0.28 $0.25
Cleco Midstream (excluding 2003 Perryville
asset-impairment charge) 0.02 (0.15)
Corporate and Other (0.03) (0.05)
-------- -------
Earnings from continuing operations excluding
2003 Perryville asset-impairment charge $0.27 $0.05
Perryville asset-impairment charge -- (0.17)
-------- -------
Earnings from continuing operations $0.27 $(0.12)
Cleco Energy discontinued operations 0.01 (0.11)
-------- -------
Earnings applicable to common stock $0.28 $(0.23)
======== =======
Twelve Months
ended Dec. 31,
------------------
Subsidiary 2004 2003
----------
Cleco Power $1.08 $1.22
Cleco Midstream (excluding 2003 Perryville
asset-impairment charge) 0.37 0.22
Corporate and Other (0.13) (0.18)
-------- -------
Earnings from continuing operations excluding
2003 Perryville asset-impairment charge $1.32 $1.26
Perryville asset-impairment charge -- (1.94)
-------- -------
Earnings from continuing operations $1.32 $(0.68)
Cleco Energy discontinued operations -- (0.11)
-------- -------
Earnings applicable to common stock $1.32 $(0.79)
======== =======
Results for Fourth Quarter 2004:
Major Reconciling Items for Fourth-Quarter EPS 2004 vs. 2003(a):
($0.23) 2003 Fourth-Quarter Diluted EPS
0.04 Higher Cleco Power nonfuel revenue, net of customer refund
accrual under the rate stabilization plan
(0.04) Higher Cleco Power expenses, primarily operations
0.02 Higher Cleco Power other income
0.01 Higher Cleco Power interest income
0.17 Higher contribution from Cleco Midstream generating projects
(excluding 2003 Perryville asset-impairment charge)
0.02 Lower corporate and other expenses, primarily lower income tax
and benefit expense
-------
($0.01)
0.17 2003 Perryville asset-impairment charge
0.12 Higher Cleco Energy earnings from discontinued operations
-------
$0.28 2004 Fourth-Quarter Diluted EPS
=======
(a) Please see the Summary of Financial Results tables on Page 2,
which reconcile total earnings non-GAAP data to their most comparable
financial measure calculated and presented in accordance with GAAP;
the attached Schedule I, which reconciles the Cleco Midstream, Cleco
Midstream generating projects and Perryville non-GAAP earnings data to
their most comparable financial measure calculated and presented in
accordance with GAAP; and the attached Schedule II, which reconciles
consolidated earnings (loss) allocated to subsidiaries' non-GAAP data
to their most comparable financial measure calculated and presented in
accordance with GAAP.
Cleco Power Cleco Power's 2004 fourth-quarter earnings totaled $0.28 per share, $0.03 per share higher than results posted in the fourth quarter of 2003. Revenue from electric sales, net of reserves for customer refunds, increased $0.03 per share in the quarter-to-quarter comparison because of unseasonably warm weather during October October: see month. 2004. Partially offsetting the increase in sales revenue was the May 2004 expiration EXPIRATION. Cessation; end. As, the expiration of, a lease, of a contract, or statute. 2. In general, the expiration of a contract puts an end to all the engagements of the parties, except to those which arise from the non- fulfillment of obligations created of a contract with a municipal customer. Transmission and miscellaneous revenue was up $0.01 per share compared to the fourth quarter of 2003.
(Million kWh) For the three months
ended Dec. 31,
----------------------------
2004 2003 Change
--------- -------- ------
Electric Sales
Residential 811 715 13.4 %
Commercial 461 418 10.3 %
Industrial 746 748 (0.3)%
Other retail 152 141 7.8 %
Unbilled (37) 8 (562.5)%
-------------------
Total retail 2,133 2,030 5.1 %
Sales for resale 176 261 (32.6)%
-------------------
Total retail and wholesale customer sales 2,309 2,291 0.8 %
Nonfuel operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. during the quarter were approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $0.04 per share higher than in the fourth quarter of 2003. The primary difference was about $0.09 per share of higher incentive compensation expense compared to 2003, when incentive compensation expense was lower as a result of the company's failure to meet target performance measures. Additionally, depreciation was about $0.01 per share higher than in fourth quarter 2003 due to routine capital additions. Partially offsetting the increased expenses was $0.06 per share in lower capacity payments, ad valorem taxes Ad Valorem Tax A tax based on the assessed value of real estate or personal property. In other words ad valorem taxes can be property tax or even duty on imported items. Property ad valorem taxes are the major source of revenues for state and municipal governments. , allowance for funds used during construction (AFUDC AFUDC Allowance for Funds Used During Construction AFUDC Accumulated Funds Used During Construction ), salary expense, post-retirement benefit expense and other expenses, net. Interest income for the fourth quarter was up $0.01 per share primarily as a result of higher levels of temporary investments. Other income for the quarter was up $0.02 per share primarily as a result of reimbursements for assistance provided to other utilities by Cleco Power employees for the restoration of power in the Gulf Coast states following three hurricanes in the fall of 2004. Cleco Midstream Please see the attached Schedule I, which reconciles the Cleco Midstream, Cleco Midstream generating projects and Perryville non-GAAP earnings data to their most comparable financial measure calculated and presented in accordance with GAAP. Cleco Midstream's earnings from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the totaled $0.02 per share in the fourth quarter of 2004 compared to a loss of $0.32 per share reported in the fourth quarter of 2003. Fourth-quarter 2003 results included a $0.17 per share asset-impairment charge related to the Perryville generating project. Without the impairment charge, Cleco Midstream would have reported a loss from continuing operations of $0.15 per share for the fourth quarter of 2003. For the fourth quarter of 2004, Cleco Evangeline posted a loss of $0.02 per share, up $0.07 per share from the $0.09 per share loss reported in the same period of 2003. The improvement reflects prepaid costs under a renegotiated long-term maintenance agreement that were expensed in 2003. The Acadia project contributed $0.06 per share in the fourth quarter of 2004, equal to its 2003 fourth-quarter earnings. The Perryville project had no effect on consolidated net income during the fourth quarter of 2004 due to its deconsolidation. By comparison, Perryville posted a loss of $0.10 per share in the fourth quarter of 2003, excluding impairment charges, due to the termination The point where a line, channel or circuit ends. See SCSI termination and hybrid. of the tolling agreement with Mirant Mirant Services LLC, an Atlanta-based energy company, produces and sells electricity in the United States, the Caribbean, and the Philippines. The company was spun-off from parent, Southern Company, on April 2, 2001. in the third quarter of 2003. Additionally, Cleco Midstream administrative costs administrative costs, n.pl the overhead expenses incurred in the operation of a dental benefits program, excluding costs of dental services provided. totaled about $0.02 per share during the quarter, comparable to costs of a year ago. Other Corporate and other expenses were $0.02 per share lower for the fourth quarter of 2004, primarily due to lower benefits and state tax expense versus the fourth quarter of 2003. Earnings from discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. were $0.01 per share for the quarter, largely due to a gain recorded on the November November: see month. 2004 sale of Cleco Energy's pipeline and marketing operations. By comparison, Cleco Energy posted a loss of $0.11 per share for the fourth quarter of 2003, primarily due to the impairment of its pipeline and production assets. Because Perryville was deconsolidated from Cleco Corp.'s financial statements effective with its Jan. 28, 2004, bankruptcy filing, Perryville's fourth-quarter 2004 operations are not reflected in corporate consolidated results. For the fourth quarter of 2004, Perryville recorded a net loss of $1.6 million. During the fourth quarter of 2003, Perryville results were included in 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 .
Results for Twelve Months ended Dec. 31, 2004:
Major Reconciling Items for Twelve Months ended
Dec. 31 EPS 2004 vs. 2003(a):
($0.79) Twelve Months ended Dec. 31, 2003, Diluted EPS
0.03 Higher Cleco Power nonfuel revenue, net of customer refund
accrual under the rate stabilization plan (excluding 2004 fuel
audit settlement amounts)
(0.03) Higher Cleco Power expenses
0.02 Higher Cleco Power interest income
(0.02) Cleco Power 2003 Federal Energy Regulatory Commission (FERC)
settlement revenue
(0.14) Cleco Power 2004 fuel audit settlement
0.10 Higher contribution from Cleco Midstream generating projects
(excluding 2003 Perryville asset-impairment charge)
0.04 Cleco Midstream 2003 FERC settlement costs
0.01 Lower Midstream administrative and development costs
0.05 Lower corporate and other, primarily lower state income tax
expense
-------
($0.73)
1.94 2003 Perryville asset-impairment charge
0.11 Higher Cleco Energy earnings from discontinued operations
-------
$1.32 Twelve Months ended Dec. 31, 2004, Diluted EPS
=======
(a) Please see the Summary of Financial Results tables on Page 2,
which reconcile total earnings non-GAAP data to their most comparable
financial measure calculated and presented in accordance with GAAP;
the attached Schedule I, which reconciles the Cleco Midstream, Cleco
Midstream generating projects and Perryville non-GAAP earnings data to
their most comparable financial measure calculated and presented in
accordance with GAAP; and the attached Schedule II, which reconciles
consolidated earnings (loss) allocated to subsidiaries' non-GAAP data
to their most comparable financial measure calculated and presented in
accordance with GAAP.
Cleco Power For 2004, Cleco Power's earnings were $1.08 per share, down $0.14 from 2003 levels. Revenue from electric sales to customers grew about $0.03 per share, net of reserves for customer refunds. This growth was mainly due to favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. fuel surcharge An overcharge or additional cost. A surcharge is an added liability imposed on something that is already due, such as a tax on tax. It also refers to the penalty a court can impose on a fiduciary for breaching a duty. adjustments related to previously uncollected fuel costs, warmer weather and higher 2004 revenue from a renegotiated contract with a municipal customer, partially offset by the May 2004 expiration of a contract with a municipal customer.
(Million kWh) For the twelve months
ended Dec. 31,
---------------------------
2004 2003 Change
---------- ------- ------
Electric Sales
Residential 3,507 3,429 2.3 %
Commercial 1,854 1,781 4.1 %
Industrial 2,902 2,786 4.2 %
Other retail 597 595 0.3 %
Unbilled (3) 39 (107.7)%
-------------------
Total retail 8,857 8,630 2.6 %
Sales for resale 1,057 1,066 (0.8)%
-------------------
Total retail and wholesale customer sales 9,914 9,696 2.2 %
Nonfuel operating expenses for 2004 were up $0.03 per share over 2003 levels. Compensation, benefit and other employee expenses were $0.09 per share higher in 2004 compared to 2003, primarily because incentive compensation expense was lower in 2003 as a result of the company's failure to meet target performance measures. Depreciation was $0.04 per share higher in 2004 due to routine asset additions, and professional fees were $0.03 per share higher due to consulting and audit fees related to testing required by Section 404 of the Sarbanes-Oxley Act See SOX. of 2002. Other expenses, net were $0.02 per share higher. Partially offseting these increases were $0.04 per share in lower capacity payments for 2004 compared to 2003, and $0.11 per share in lower maintenance expenses in 2004, reflecting the company's higher expenditures for its 2003 reliability initiative. Interest income for 2004 was up $0.02 per share period to period, largely due to favorable fuel surcharge adjustments related to interest on previously uncollected fuel expenses, as well as increased interest earned on temporary investments. Cleco Power's results for 2003 included a $0.02 per share positive effect from the July July: see month. 2003 FERC FERC Federal Energy Regulatory Commission FERC FEMA Emergency Response Capability settlement of certain Cleco Midstream trading issues. In addition, during 2004, Cleco recorded approximately $0.14 per share of net costs related to 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 ) fuel audit settlement. Cleco Midstream Please see the attached Schedule I, which reconciles the Cleco Midstream, Cleco Midstream generating projects and Perryville non-GAAP earnings data to their most comparable financial measure calculated and presented in accordance with GAAP. Cleco Midstream's earnings from continuing operations were $0.37 per share for 2004 compared to a loss of $1.72 per share in 2003. The 2003 loss included a $1.94 per share asset-impairment charge associated with the Perryville plant. Excluding the impairment charge, 2003 Cleco Midstream earnings from continuing operations would have been $0.22 per share. The Evangeline project earned $0.26 per share for 2004, up $0.18 per share from its 2003 contribution of $0.08 per share, when expenses were higher largely due to the 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 and the expensing of prepaid costs under the project's long-term maintenance agreement with the turbine manufacturer. The Acadia project earned $0.18 per share for 2004, down $0.02 per share from 2003. The drop was primarily due to higher availability penalties, replacement power costs and maintenance expenses. The Perryville project recorded a loss of $0.03 per share for 2004 prior to its Jan. 28, 2004, deconsolidation compared to earnings of $0.03 per share recorded in 2003 excluding the asset-impairment charges. In year-to-year comparisons, Cleco Midstream's earnings were affected by 2003 expenses of $0.04 per share from the July 2003 FERC settlement. Additionally, Cleco Midstream administrative costs totaled about $0.04 per share for 2004, $0.01 per share lower than in 2003. Other Corporate and other expenses totaled $0.13 per share in 2004 compared to $0.18 per share for 2003. The decrease was primarily the result of a positive settlement of certain outstanding state tax issues, lower legal and professional fees associated with the FERC and LPSC investigations, as well as lower interest expense. Discontinued operations had no impact in 2004. The company recorded a $0.11 per share loss in 2003 largely due to the impairment of Cleco Energy's pipeline and production assets. Because the Perryville project's results were deconsolidated from Cleco Corp.'s financial statements effective with its Jan. 28, 2004, bankruptcy filing, 2004 Perryville operations are only reflected in corporate consolidated results prior to that date. During 2004, Perryville recorded a net loss of $4.8 million following its deconsolidation. 2005 Outlook: "Cleco Power has just received its second round of bids in our Request For Proposal process. We'll we'll Contraction of we will. we'll we will or we shall we'll will ~shall be working in the second quarter to complete our portfolio analyses, with the goal to submit our final integrated resource plan to the LPSC by midyear mid·year n. 1. The middle of the calendar or academic year. 2. a. An examination given in the middle of a school year. b. midyears A series of such examinations. ," Eppler said. "An important part of that submission Submission Elliott, Anne reluctantly gives up her fiancé on her family’s advice. [Br. Lit.: Jane Austen Persuasion in Magill I, 734] will be an agreement on how rate recovery of our investment will occur. "During the second half of the year, we hope to complete the sale of the Perryville generation assets to Entergy Entergy Corporation NYSE: ETR is an integrated energy company engaged primarily in electric power productions and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, and it is the Louisiana Louisiana (ləwē'zēăn`ə, l  ē'–), state in the S central United States. It is bounded by Mississippi, with the Mississippi R. , Inc.,
once they receive regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. approval of the transaction," Eppler said. "We also are in settlement discussions with Mirant in an attempt to resolve Perryville's bankruptcy claims against Mirant and certain of its subsidiaries, but the timing of that resolution is still uncertain." Eppler added, "With my planned retirement at midyear, the board of directors is now reviewing leadership alternatives for Cleco. We have an exciting strategy and an experienced executive team in place, so I am confident of Cleco's continued success." 2005 Earnings Guidance: "In terms of earnings guidance, we have set a target range of $1.35 to $1.40 per share for 2005," Eppler said. "This assumes Cleco Power results are in the range of $1.05 to $1.10; the Evangeline and Acadia projects each contribute $0.20 per share; and corporate and Midstream holding company administrative, legal and interest expenses reduce earnings approximately $0.10 per share. "The 2005 Cleco Power target is slightly above 2004 actual results. We won't won't Contraction of will not. won't will not won't will see the negative effect of the fuel audit settlement again in 2005, and capacity costs should be down," Eppler said. "However, we look for lower revenues due to the loss of one municipal customer in mid- mid- pref. Middle: midbrain. 2004 and a small municipal franchise during 2005; we do not expect to record fuel surcharges as we did in 2004; and we expect higher administrative and general expenses -- primarily compensation and benefits costs - as well as higher depreciation and taxes. Our targets assume normal weather and a continuation continuation - continuation passing style of our current rate plan through year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. . "The Acadia and Evangeline targets assume continued performance by those projects' tolling 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. . Overall targets assume no earnings effect from Perryville," Eppler said. "Lower losses are projected from corporate and Midstream holding companies largely due to lower legal and interest expenses. Corporate targets do not include any potential income effect from the sale of the Perryville assets or receipt of a claim from Mirant's bankruptcy process." Cleco management will discuss the company's annual and fourth-quarter 2004 results during a conference call scheduled for 11 a.m. EST EST electroshock therapy. EST abbr. electroshock therapy (10 a.m. CST CST abbr. 1. Central Standard Time 2. convulsive shock treatment CST Central Standard Time Noun 1. ) Tuesday Tuesday: see week. , March 15, 2005. 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 through the company's Web site at www.cleco.com by selecting "For Investors" and then "Fourth Quarter 2004 Earnings Conference Call." Cleco's businesses referred to in this news release are: Cleco Power LLC Cleco Midstream Resources LLC Cleco Evangeline LLC Perryville Energy Partners, L.L.C.; Perryville Energy Holdings LLC Acadia Power Partners LLC; Acadia Power Holdings LLC Cleco Energy LLC Other (Cleco Corporation; Cleco Support Group LLC, Cleco Innovations LLC; CLE Cle total elimination clearance. Resources, Inc.) Cleco Corp. is a regional energy company headquartered in Pineville, La. It operates a regulated reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. electric utility company that serves approximately 265,000 customers across Louisiana. Cleco also operates a wholesale energy business with 2,100 megawatts of generating capacity, including the 718-megawatt Perryville plant. The sale of the Perryville plant to Entergy Louisiana, Inc. is pending. For more information about Cleco, visit www.cleco.com. Financial tables follow:
Schedule I
Reconciliation of Cleco Midstream, Cleco Midstream Generating
Projects and Perryville Non-GAAP Earnings Data to Their
Most Comparable Financial Measure Calculated and
Presented in Accordance with GAAP
Comparison of Diluted
Earnings per Share
For the Three Months
ended Dec. 31,
-------------------------
2004 2003 Variance
------- ------- --------
Cleco Midstream earnings from
continuing operations $0.02 ($0.15) $0.17
Add: 2003 Perryville asset-impairment charge -- $0.17 ($0.17)
------- ------- --------
Cleco Midstream earnings from continuing
operations (excluding asset-impairment
charge) $0.02 $0.02 --
======= ======= ========
Cleco Midstream generating operations $0.04 ($0.13) $0.17
Add: 2003 Perryville asset-impairment charge -- $0.17 ($0.17)
------- ------- --------
Cleco Midstream generating operations
(excluding asset-impairment charge) $0.04 $0.04 --
======= ======= ========
Perryville Energy Partners, L.L.C. -- ($0.27) $0.27
Add: 2003 Perryville asset-impairment charge -- $0.17 ($0.17)
------- ------- --------
Perryville Energy Partners, L.L.C.
(excluding asset-impairment charge) -- ($0.10) $0.10
======= ======= ========
Comparison of Diluted
Earnings per Share
For the Twelve Months
ended Dec. 31,
-------------------------
2004 2003 Variance
------- ------- --------
Cleco Midstream earnings from
continuing operations $0.37 ($1.72) $2.09
Add: 2003 Perryville asset-impairment charge -- $1.94 ($1.94)
------- ------- --------
Cleco Midstream earnings from continuing
operations (excluding asset-impairment
charge) $0.37 $0.22 $0.15
======= ======= ========
Cleco Midstream generating operations $0.41 ($1.63) $2.04
Add: 2003 Perryville asset-impairment charge -- $1.94 ($1.94)
------- ------- --------
Cleco Midstream generating operations
(excluding asset-impairment charge) $0.41 $0.31 $0.10
======= ======= ========
Perryville Energy Partners, L.L.C. ($0.03) ($1.91) $1.88
Add: 2003 Perryville asset-impairment charge -- $1.94 ($1.94)
------- ------- --------
Perryville Energy Partners, L.L.C.
(excluding asset-impairment charge) ($0.03) $0.03 ($0.06)
======= ======= ========
Schedule II
Reconciliation of Consolidated Earnings (Loss) Allocated to
Subsidiaries' Non-GAAP Data to Their Most Comparable
Financial Measure Calculated and Presented
in Accordance with GAAP
Cleco calculates a percentage of its subsidiaries' net income (loss)
applicable to common stock to consolidated net income (loss)
applicable to common stock. The percentages are multiplied times
Cleco's diluted earnings (loss) per common share to determine the
subsidiaries' allocation of diluted earnings (loss) per common share.
Cleco believes that the earnings contributions of the subsidiaries are
meaningfully represented by this allocation.
Three Months ended Dec. 31, 2004
-----------------------------------
Net Income
(Loss)
Applicable Allocated
(Thousands, except per share to Common Earnings Percentage
amounts and percentages) Stock Per Share Allocation
----------------------------------------------------------------------
Cleco Power $13,507 $0.28 97.59 %
Cleco Midstream 1,635 0.03(1) 11.81 %
Corporate and Other (1,301) (0.03) (9.40)%
----------------------------------------------------------------------
Total $13,841 $0.28 100.00 %
----------------------------------------------------------------------
(1) Includes income from discontinued operations of $0.01
----------------------------------------------------------------------
Three Months ended Dec. 31, 2003
-----------------------------------
Net Income
(Loss)
Applicable Allocated
(Thousands, except per share to Common Earnings Percentage
amounts and percentages) Stock Per Share Allocation
----------------------------------------------------------------------
Cleco Power $11,908 $0.25 (112.23)%
Cleco Midstream (19,997) (0.43)(2) 188.47 %
Corporate and Other (2,521) (0.05) 23.76 %
----------------------------------------------------------------------
Total $(10,610) $(0.23) 100.00 %
----------------------------------------------------------------------
(2) Includes loss from discontinued operations of $(0.11) and
Perryville asset-impairment charge of $(0.17)
----------------------------------------------------------------------
Twelve Months ended Dec. 31, 2004
-----------------------------------
Net Income
(Loss)
Applicable Allocated
(Thousands, except per share to Common Earnings Percentage
amounts and percentages) Stock Per Share Allocation
----------------------------------------------------------------------
Cleco Power $52,202 $1.08 81.60 %
Cleco Midstream 17,899 0.37 27.98 %
Corporate and Other (6,128) (0.13) (9.58)%
----------------------------------------------------------------------
Total $63,973 $1.32 100.00 %
----------------------------------------------------------------------
Twelve Months ended Dec. 31, 2003
-----------------------------------
Net Income
(Loss)
Applicable Allocated
(Thousands, except per share to Common Earnings Percentage
amounts and percentages) Stock Per Share Allocation
----------------------------------------------------------------------
Cleco Power $57,008 $1.22 (154.95)%
Cleco Midstream (85,313) (1.83)(3) 231.89 %
Corporate and Other (8,485) (0.18) 23.06 %
----------------------------------------------------------------------
Total $(36,790) $(0.79) 100.00 %
----------------------------------------------------------------------
(3) Includes loss from discontinued operations of $(0.11) and
Perryville asset-impairment charge of $(1.94)
CLECO CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(Thousands, except share and per share amounts)
(UNAUDITED)
For the three months ended December 31, 2004 2003
----------------------------------------------------------------------
Operating revenue
Electric operations $172,734 $156,922
Tolling operations -- 10,586
Energy trading, net -- (379)
Other operations 8,028 7,362
Intercompany revenue 2,406 --
-------------------
Gross operating revenue 183,168 174,491
Electric customer credits 287 --
-------------------
Operating revenue, net 183,455 174,491
Operating expenses
Fuel used for electric generation 43,521 42,658
Power purchased for utility customers 60,881 49,406
Other operations 23,425 22,666
Maintenance 9,611 18,264
Depreciation 14,780 17,364
Impairments of long-lived assets -- 13,220
Taxes other than income taxes 8,561 9,454
-------------------
Total operating expenses 160,779 173,032
-------------------
Operating income 22,676 1,459
Interest income 944 475
Allowance for other funds used during construction 1,021 628
Equity income from investees 6,666 7,711
Other income 1,966 706
Other expense (1,528) (2,282)
-------------------
Income before interest charges 31,745 8,697
Interest charges
Interest charges, including amortization of
debt expenses, premium and discount, net
of capitalized interest 12,373 17,970
Allowance for borrowed funds used during
construction (348) (190)
-------------------
Total interest charges 12,025 17,780
-------------------
Income (loss) from continuing operations before
income taxes 19,720 (9,083)
Federal and state income tax expense (benefit) 5,914 (4,101)
-------------------
Income (loss) from continuing operations 13,806 (4,982)
Discontinued operations
Loss from discontinued operations, net of tax (1,451) (5,163)
Gain from disposal of segment, net of tax 1,957 --
-------------------
Total income (loss) from discontinued
operations 506 (5,163)
-------------------
Net income (loss) 14,312 (10,145)
Preferred dividends requirements, net 471 465
-------------------
Net income (loss) applicable to common stock $13,841 $(10,610)
===================
Average shares of common stock outstanding
Basic 48,163,155 46,887,283
Diluted 50,482,222 46,887,283
Basic earnings (loss) per share
From continuing operations $0.27 $(0.12)
From discontinued operations $0.01 (0.11)
-------------------
Net income (loss) applicable to common
stock $0.28 $(0.23)
Diluted earnings (loss) per share
From continuing operations $0.27 $(0.12)
From discontinued operations $0.01 (0.11)
-------------------
Net income (loss) applicable to common
stock $0.28 $(0.23)
Cash dividends paid per share of common stock $0.225 $0.225
CLECO CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(Thousands, except share and per share amounts)
For the twelve months ended December 31, 2004 2003
----------------------------------------------------------------------
Operating revenue
Electric operations $718,151 $676,002
Tolling operations 10,255 98,726
Energy trading, net 3 (936)
Other operations 30,530 31,222
Intercompany revenue 7,767 --
-------------------
Gross operating revenue 766,706 805,014
Electric customer credits (20,889) (1,562)
-------------------
Operating revenue, net 745,817 803,452
Operating expenses
Fuel used for electric generation 153,750 163,769
Power purchased for utility customers 267,371 231,839
Other operations 83,816 95,464
Maintenance 40,917 60,479
Depreciation 59,930 76,318
Impairments of long-lived assets -- 147,993
Taxes other than income taxes 38,895 39,137
-------------------
Total operating expenses 644,679 814,999
-------------------
Operating income (loss) 101,138 (11,547)
Interest income 3,956 2,371
Allowance for other funds used during construction 3,723 2,741
Equity income from investees 47,538 31,649
Other income 2,232 3,578
Other expense (4,398) (9,188)
-------------------
Income before interest charges 154,189 19,604
Interest charges
Interest charges, including amortization of
debt expenses, premium and discount, net
of capitalized interest 53,451 71,602
Allowance for borrowed funds used during
construction (1,245) (813)
-------------------
Total interest charges 52,206 70,789
-------------------
Income (loss) from continuing operations before
income taxes 101,983 (51,185)
Federal and state income tax expense (benefit) 35,864 (21,417)
-------------------
Income (loss) from continuing operations 66,119 (29,768)
Discontinued operations
Loss from discontinued operations, net of tax (1,615) (5,161)
Gain from disposal of segment, net of tax 1,685 --
-------------------
Total income (loss) from discontinued
operations 70 (5,161)
-------------------
Net income (loss) 66,189 (34,929)
Preferred dividends requirements, net 2,216 1,861
-------------------
Net income (loss) applicable to common stock $63,973 $(36,790)
===================
Average shares of common stock outstanding
Basic 47,371,319 46,820,058
Diluted 47,528,886 46,820,058
Basic earnings (loss) per share
From continuing operations $1.33 $(0.68)
From discontinued operations -- $(0.11)
-------------------
Net income (loss) applicable to common
stock $1.33 $(0.79)
Diluted earnings (loss) per share
From continuing operations $1.32 $(0.68)
From discontinued operations -- $(0.11)
-------------------
Net income (loss) applicable to common
stock $1.32 $(0.79)
Cash dividends paid per share of common stock $0.900 $0.900
CLECO CORPORATION
CONSOLIDATED BALANCE SHEETS
(Thousands)
At At
Dec. 31, Dec. 31,
2004 2003
----------------------------------------------------------------------
Assets
Current Assets
Cash and cash equivalents $123,787 $95,381
Accounts receivable, net 60,306 56,890
Other current assets 103,673 107,740
-----------------------
Total Current Assets 287,766 260,011
Property, plant and equipment, net 1,060,045 1,408,784
Equity investment in investees 314,284 264,073
Prepayments, deferred charges and other 174,968 226,558
-----------------------
Total Assets $1,837,063 $2,159,426
-----------------------
Liabilities
Current Liabilities
Short-term debt $168,799 $205,705
Accounts payable 75,820 89,939
Other current liabilities 93,058 50,512
-----------------------
Total Current Liabilities 337,677 346,156
Deferred credits and other liabilities 487,770 404,744
Long-term debt, net 450,552 907,058
-----------------------
Total Liabilities 1,275,999 1,657,958
-----------------------
Shareholders' Equity
Preferred stock 19,226 18,717
Common shareholders' equity 545,106 486,531
Other comprehensive income (3,268) (3,780)
-----------------------
Total Shareholders' Equity 561,064 501,468
-----------------------
Total Liabilities and
Shareholders' Equity $1,837,063 $2,159,426
-----------------------
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 Cleco Midstream's facilities, the financial condition of the company's tolling agreement counterparties, 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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