Cleco Corp. Reports Full-Year 2003 Results; Posts $0.79 Per Share Loss For the Period Primarily Due to Asset-Impairment Charges.Business Editors PINEVILLE There are several places named Pineville in the United States.
Cleco Corp. (NYSE NYSE See: New York Stock Exchange , 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 CNL CityNightLine (German Rail) CNL Cancel CNL Clinical Nurse Leader Cnl Colonel CNL Center for Naval Leadership CNL Compensated Neutron Log (oil industry) ) today reported a fourth-quarter 2003 loss of $0.23 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 compared to earnings of $0.06 per share recorded in the same period of 2002. The loss stemmed stemmed adj. 1. Having the stems removed. 2. Provided with a stem or a specific type of stem. Often used in combination: stemmed goblets; long-stemmed roses. primarily from three factors: a $0.17 per share fourth-quarter impairment Impairment 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 associated with the Perryville Perryville is the name of some places in the United States of America:
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 plant, and an impairment charge associated with the company's natural gas pipeline assets. For the year, Cleco posted a loss of $0.79 per diluted share compared to earnings of $1.47 per share for 2002. Results in 2003 included $1.94 per share of asset-impairment charges associated with the Perryville project. "We are disappointed in 2003's financial results," 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 said. "We saw lower revenues from our 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. generating projects due to higher maintenance costs and the 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 of a major counterparty Counterparty The other participant, including intermediaries, in a swap or contract. . "At the same time, however, Cleco Power, our 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. utility, continued its solid performance. We improved service reliability, maintained superior customer satisfaction ratings, and received the Edison Edison, township (1990 pop. 88,680), Middlesex co., NE N.J., inc. 1870 as Raritan Township, renamed 1954. Edison's varied manufactures include light trucks, chemicals, metal products, electrical and electronic equipment, machinery, and instruments. Electric Institute's Emergency Response Assistance Award for helping restore power to East Coast communities hit by Hurricane Isabel This article is about the 2003 hurricane; there was also a Tropical Storm Isabel during the 1985 Atlantic hurricane season Hurricane Isabel was the costliest and deadliest hurricane in the 2003 Atlantic hurricane season. last fall," Eppler said. "We also made considerable headway head·way n. 1. Forward movement or the rate of forward movement, especially of a ship. 2. Progress toward a goal. 3. The clear vertical space beneath a ceiling or archway; clearance. 4. in reducing our risk exposure to the wholesale power market. "Last year we restructured the Acadia project tolling agreements to better secure cash flow to Cleco, and in early 2004, we signed an agreement to sell our Perryville plant 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 . Although we recorded significant impairment charges associated with the Perryville project in 2003, we remain focused on realizing the value we built in Perryville through the completion of the sale of the plant and the potential recovery of damages from Perryville's original tolling counterparty, 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. ," Eppler said. A subsidiary of Mirant Corp. was the counterparty to a tolling agreement with the Perryville plant. Mirant and its subsidiaries filed for bankruptcy in July July: see month. 2003 and subsequently rejected re·ject tr.v. re·ject·ed, re·ject·ing, re·jects 1. To refuse to accept, submit to, believe, or make use of. 2. To refuse to consider or grant; deny. 3. the tolling contract. Summary of Financial Results: In the following tables, the diluted earnings (loss) per share (EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. ) of Cleco Midstream Resources LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control (Cleco Midstream) and the total diluted EPS data that exclude the 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 that these numbers are useful to investors in understanding the results of operations of Cleco Midstream and Perryville Energy Partners, LLC (Perryville) because they illustrate the impact that the impairment charge had separately from Cleco Midstream's other operational results. The Cleco Midstream, Cleco Midstream wholesale generating projects and Perryville non-GAAP earnings data presented below 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 attached Schedule I. The total earnings non-GAAP data are reconciled to their most comparable financial measure calculated and presented in accordance with GAAP in the following tables.
Diluted EPS
------------------------
Three Months Ended Dec. 31,
------------------------
Subsidiary 2003 2002
---------- ---- ----
Cleco Power LLC $0.25 $0.24
Cleco Midstream Resources LLC (excluding
Perryville impairment charge) (0.26) (0.14)
Corporate and Other (0.05) (0.04)
------ ------
(Loss) earnings excluding Perryville
impairment charge $(0.06) $0.06
Perryville impairment charge (0.17) --
------ ------
(Loss) earnings applicable to common stock $(0.23) $0.06
==================
Diluted EPS
------------------------
Twelve Months Ended Dec. 31,
------------------------
Subsidiary 2003 2002
---------- ---- ----
Cleco Power LLC $1.22 $1.25
Cleco Midstream Resources LLC (excluding
Perryville impairment charges) 0.11 0.31
Corporate and Other (0.18) (0.09)
------ ------
Earnings excluding Perryville impairment
charges $1.15 $1.47
Perryville impairment charges (1.94) --
------ -----
(Loss) earnings applicable to common stock $(0.79) $1.47
========================
Perryville Project: "As you recall, we recorded an asset-impairment charge during the second quarter of 2003 to reflect our best estimate of the reduced value of the Perryville project following Mirant's bankruptcy," Eppler said. "On Jan. 28, 2004, we announced we had agreed to sell the project to Entergy for $170 million, and the $0.17 per share impairment charge recorded for fourth quarter 2003 reduces the book value of the project to approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. the anticipated proceeds from the proposed sale to Entergy. Cleco's equity investment in Perryville was a negative $8 million at Dec. 31, 2003. "The sale of the Perryville plant to Entergy is subject to 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. approvals that are satisfactory to Entergy. The approval processes are ones which Entergy will control, and they expect them to be complete by December December: see month. 2004," Eppler said. "Entergy is currently buying the plant's output, which is expected to provide adequate cash flow to sustain the project. In order for the sale to be completed in an orderly orderly /or·der·ly/ (or´der-le) an attendant in a hospital who works under the direction of a nurse. or·der·ly n. An attendant in a hospital. fashion, Perryville Energy Partners, LLC, and its parent, Perryville Energy Holdings, LLC, filed voluntary petitions for bankruptcy protection on Jan. 28, 2004. "In addition to the prospect of proceeds from an asset sale to Entergy," Eppler said, "we are continuing to assert our rights as a creditor An individual to whom an obligation is owed because he or she has given something of value in exchange. One who may legally demand and receive money, either through the fulfillment of a contract or due to injury sustained as a result of another's Negligence in the Mirant bankruptcy proceeding to capture value for the 20-year tolling agreement that Mirant terminated ter·mi·nate v. ter·mi·nat·ed, ter·mi·nat·ing, ter·mi·nates v.tr. 1. To bring to an end or halt: after entering bankruptcy. We cannot predict how much our recovery will be, if any, or when we will receive it."
Results for Fourth Quarter 2003:
-------------------------------
Major Reconciling Items for Fourth-Quarter EPS 2003 vs. 2002(a):
---------------------------------------------------------------
$0.06 2002 Fourth-Quarter Diluted EPS
Higher Cleco Power nonfuel revenue, net of customer refund
0.02 accrual
(0.12) Higher Cleco Power nonfuel expenses
0.11 2002 Cleco Power restructuring charge
Lower contribution from Cleco Midstream wholesale
generating projects (excluding Perryville impairment
(0.25) charge)
2003 impairment of Cleco Midstream pipeline and production
(0.11) assets
0.05 2002 deferred income tax adjustment at Cleco Midstream
2002 asset impairment of Cleco Midstream production
0.05 properties
2002 correction of Cleco Midstream fuel transportation
0.09 charges
0.03 2002 Cleco Midstream restructuring charges
0.02 Higher Cleco Midstream other, net
(0.01) Higher corporate administrative and legal expenses
-------
2003 Fourth-Quarter Diluted EPS excluding Perryville
$(0.06) impairment charge
Asset-impairment charge for the Perryville generating
(0.17) project
-------
$(0.23) 2003 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 and the attached Schedule I, which reconciles the Cleco Midstream, Cleco Midstream wholesale generating projects, and Perryville non-GAAP earnings data to their most comparable financial measure calculated and presented in accordance with GAAP. Cleco Power LLC Cleco Power posted 2003 fourth-quarter earnings $0.01 per share higher than earnings in the same period of 2002. Cleco Power's overall nonfuel revenue increased by about $0.02 per share in the quarter-to-quarter comparison to 2002. Revenue from electric sales to customers grew about $0.05 per share, net of reserves for customer refunds. Weather for the quarter was milder than normal and milder than the comparable period in 2002, but customer growth supported a 4 percent increase in sales. For the quarter, transmission and miscellaneous revenues were down $0.02 per share, and energy trading margins were down $0.01 per share. Nonfuel expenses for Cleco Power were about $0.12 per share higher in fourth quarter 2003 than in fourth quarter 2002, largely due to $0.02 per share higher capacity charges, $0.03 per share higher distribution operations and maintenance costs, $0.02 per share in higher generation maintenance expenses, and $0.02 per share higher storm deferral deferral - Waiting for quiet on the Ethernet. and bad debt accruals Accruals Accounts on a balance sheet that represent liabilities and non-cash-based assets used in accrual-based accounting. These accounts include, among many others, accounts payable, accounts receivable, goodwill, future tax liability and future interest expense. . Other expenses, net, which included depreciation, tax and interest expense, were about $0.03 per share higher in the fourth quarter of 2003. The quarter-to-quarter comparison also included $0.11 per share of restructuring charges restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. in fourth quarter 2002 that were not incurred in fourth quarter 2003. Cleco Midstream Resources LLC Please see the attached Schedule I, which reconciles the Cleco Midstream, Cleco Midstream wholesale generating projects, and Perryville non-GAAP earnings data to their most comparable financial measure calculated and presented in accordance with GAAP. Cleco Midstream posted a loss of $0.43 per share for the fourth quarter of 2003, compared to a loss of $0.14 per share in fourth quarter 2002. The fourth quarter 2003 loss included a $0.17 per share asset-impairment charge associated with the Perryville wholesale generating project. Without the impairment charge, the Cleco Midstream loss would have been $0.26 per share for the fourth quarter of 2003. Excluding the Perryville impairment charge, Cleco Midstream's wholesale generating operations posted a loss of $0.13 per share, down $0.25 per share as compared to fourth quarter 2002. The decrease was largely caused by operating results from the Perryville project, which were down $0.19 per share from fourth quarter 2002 results mainly due to the termination The point where a line, channel or circuit ends. See SCSI termination and hybrid. of the Mirant tolling agreement in the third quarter of 2003. Acadia's earnings contribution was comparable to fourth quarter 2002, while earnings from the Evangeline Evangeline concerns 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 were down $0.06 per share primarily due to increased maintenance and depreciation costs. Those higher costs included approximately $0.09 per share resulting from the expensing of pre-paid costs 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. maintenance agreement with the 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. manufacturer. The maintenance agreement was renegotiated in the fourth quarter of 2003. Cleco Energy recorded an $0.11 per share asset impairment of its pipeline and production properties during fourth quarter 2003, reflecting a reevaluation Noun 1. reevaluation - the evaluation of something a second time (or more) rating, valuation, evaluation - an appraisal of the value of something; "he set a high valuation on friendship" of the value of its gas pipeline assets following the loss of its largest industrial customer and management's decision to pursue options to potentially scale down operations and either sell or contribute non-core assets to a joint venture. In quarter-to-quarter comparisons, administrative and development expenses at Cleco Midstream were $0.02 per share lower mainly due to decreased marketing and project development activities. In fourth quarter 2002 Cleco Midstream recorded the following charges totaling $0.22 per share: a $0.05 Cleco Midstream asset-impairment charge relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc Cleco Energy's oil and gas production properties; a $0.05 per share charge reflecting a deferred tax adjustment at Cleco Energy; a $0.09 per share charge correcting Cleco Energy fuel transportation charges previously billed to Cleco Power; and $0.03 per share of restructuring charges. Other Corporate and other expenses increased by $0.01 per share in fourth quarter 2003 compared to fourth quarter 2002, primarily due to increased interest expense for senior notes issued in April 2003.
Results for Twelve Months Ended Dec. 31, 2003:
----------------------------------------------
Major Reconciling Items for Twelve Months Ended Dec. 31 EPS 2003
----------------------------------------------------------------
vs. 2002(a):
-----------
$1.47 Twelve Months Ended Dec. 31, 2002, Diluted EPS
Higher Cleco Power nonfuel revenue, net of customer
0.17 refund accrual
(0.34) Higher Cleco Power nonfuel expenses
0.12 2002 Cleco Power restructuring charges
Effect of lower number of outstanding shares on Cleco
0.02 Power EPS calculation
Lower contribution from Cleco Midstream wholesale
generating projects (excluding Perryville impairment
(0.28) charge)
2003 impairment of Cleco Midstream pipeline and
(0.11) production assets
2003 Cleco Midstream Federal Energy Regulatory Commission
(0.04) (FERC) settlement costs
0.05 2002 deferred income tax adjustment at Cleco Midstream
2002 asset impairment of Cleco Midstream production
0.05 properties
2002 correction of Cleco Midstream fuel transportation
0.09 charges
0.03 2002 Cleco Midstream restructuring charges
0.01 Higher Cleco Midstream other, net
(0.09) Higher corporate administrative and legal expenses
-------
Twelve Months Ended Dec. 31, 2003, Diluted EPS excluding
$1.15 Perryville impairment charge
Asset impairment charges for the Perryville generating
(1.94) project
-------
$(0.79) Twelve Months Ended Dec. 31, 2003, 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 and the attached Schedule I, which reconciles the Cleco Midstream,Cleco Midstream wholesale generating projects, and Perryville non-GAAP earnings data to their most comparable financial measure calculated and presented in accordance with GAAP. Cleco Power LLC For 2003, Cleco Power recorded earnings $0.03 per share lower than during 2002. The utility's overall nonfuel revenue increased by about $0.17 per share in the year-to-year comparison to 2002. Revenue from electric sales to customers increased about $0.11 per share, supported by 2 percent growth in kilowatt-hour kil·o·watt-hour n. Abbr. kWh or kW-hr A unit of electric energy equal to the work done by one kilowatt acting for one hour. sales, net of reserves for customer refunds. Summer weather for the year was milder than normal and milder than in 2002, while 2003 winter weather was slightly cooler than normal, and comparable to 2002 winter weather. Earnings for the period also benefited from $0.04 per share in higher transmission and miscellaneous revenues (including adjustments to fuel revenue) and $0.02 per share in lower losses from energy trading. Nonfuel expenses for Cleco Power during 2003 were about $0.34 per share higher than in 2002. Maintenance expenditures on distribution, transmission and production facilities as part of the 2003 reliability project were approximately $0.12 per share, and other transmission and distribution expenses were up $0.04 per share. Other higher expenses included approximately $0.07 per share of higher capacity charges, $0.03 per share of expenses associated with service restoration following Tropical Storm tropical storm n. A cyclonic storm having winds ranging from approximately 48 to 121 kilometers (30 to 75 miles) per hour. tropical storm Bill, and $0.04 per share of increased storm expense accruals. Depreciation expense increased $0.03 per share, and other expenses increased $0.01 per share primarily due to higher charitable donations. The year-to-year comparison also included $0.12 per share in 2002 restructuring charges that were not incurred in 2003. Earnings results for 2003 included a $0.02 per share benefit because the number of diluted shares used in the EPS calculation was lower than in 2002 due to the corporation's net loss applicable to common stock for the year. Cleco Midstream Resources LLC Please see the attached Schedule I, which reconciles the Cleco Midstream, Cleco Midstream wholesale generating projects, and Perryville non-GAAP earnings data to their most comparable financial measure calculated and presented in accordance with GAAP. Cleco Midstream posted a loss of $1.83 per share for 2003 compared to earnings of $0.31 per share in 2002. The loss included the $1.94 per share of asset impairment charges associated with the Perryville plant. Without the Perryville impairment charges, Midstream earnings would have been $0.11 per share for 2003. Excluding the Perryville impairment charges, earnings from wholesale generating operations were $0.31 per share, down $0.28 per share as compared to 2002. Operating results at the Perryville project were down $0.19 per share from 2002 mainly due to the termination of the Mirant tolling agreement in the third quarter of 2003. Acadia's earnings contribution was up $0.10 per share compared to 2002, reflecting its first full year of operation in 2003. Earnings from the Evangeline project were down $0.19 per share largely due to increased maintenance and depreciation costs. Those higher costs included approximately $0.09 per share resulting from the 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 renegotiated long-term maintenance agreement with the
turbine manufacturer.Cleco Energy recorded an $0.11 per share asset impairment of its pipeline properties during 2003. Additionally, the 2003 FERC FERC Federal Energy Regulatory Commission FERC FEMA Emergency Response Capability settlement of trading issues resulted in a $0.04 reduction to Cleco Midstream earnings. In year-to-year comparisons, Cleco Midstream's 2003 earnings were positively affected by a $0.01 per share decrease in administrative and development expenses largely caused by decreased marketing and project development-related activities. In 2002 Cleco Midstream recorded the following charges totaling $0.22 per share: a $0.05 Cleco Midstream asset-impairment charge relating to Cleco Energy's oil and gas production properties; a $0.05 per share charge reflecting a deferred tax adjustment at Cleco Energy; a $0.09 per share charge correcting Cleco Energy fuel transportation charges previously billed to Cleco Power; and $0.03 per share of restructuring charges. Other Corporate and other expenses for 2003 increased by $0.09 per share compared to 2002. The increase was primarily due to increased interest expense for the senior notes issued in April 2003 and higher legal and consulting expenses associated with the FERC and 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 ) investigations of certain trading and fuel issues. 2004 Focus: Eppler said, "We will continue to work during 2004 to complete the sale of Perryville to Entergy as well as protect our claims against Mirant through the bankruptcy process. This year we will also be heavily focused on Cleco Power and its integrated resource planning Resource planning may refer to:
1. (business) RFP - Request for Proposal. 2. (Request For Proposal) process did not produce attractive, economic proposals for either asset purchases or long-term contracts, and therefore we elected e·lect v. e·lect·ed, e·lect·ing, e·lects v.tr. 1. To select by vote for an office or for membership. 2. To pick out; select: elect an art course. to procure To cause something to happen; to find and obtain something or someone. Procure refers to commencing a proceeding; bringing about a result; persuading, inducing, or causing a person to do a particular act; obtaining possession or control over an item; or making a person 2005 capacity needs through a one-year adj. 1. completing its life cycle within a year. Adj. 1. one-year - completing its life cycle within a year; "a border of annual flowering plants" annual phytology, botany - the branch of biology that studies plants contract. Considering the transmission constraints CONSTRAINTS - A language for solving constraints using value inference. ["CONSTRAINTS: A Language for Expressing Almost-Hierarchical Descriptions", G.J. Sussman et al, Artif Intell 14(1):1-39 (Aug 1980)]. in our area, a still-developing wholesale market and the projections of higher, more volatile With regard to computer memory, it means "temporary" and not "highly changeable," which is the usual meaning of the word. See volatile memory. 1. (programming) volatile - volatile variable. 2. (storage) volatile - See non-volatile storage. gas prices over the long term, we decided to take another look at a longer-range plan for capacity, energy and fuel supply. We've we've Contraction of we have. we've have announced our intent to issue another RFP this year to explore a broader range of options. We've also requested of the LPSC that Cleco Power be allowed to extend its 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, on the same terms, one year from its current September September: see month. 2004 expiration date Expiration Date The day on which an options or futures contract is no longer valid and, therefore, ceases to exist. Notes: The expiration date for all listed stock options in the U.S. to allow for the completion of this process." 2004 Earnings Guidance: "We continue to expect a weather-normalized earnings potential of $1.00 to $1.10 per share from Cleco Power, assuming we achieve a one-year extension of our rate stabilization plan," said Eppler. Acadia and Evangeline projects should each contribute approximately $0.20 per share in earnings, but corporate and Cleco Midstream interest, administrative, legal and development costs will reduce earnings approximately $0.15 per share, for a net earnings per share target for 2004 of $1.25 to $1.35. "Our Cleco Power target reflects continued expense pressures, largely higher administrative costs administrative costs, n.pl the overhead expenses incurred in the operation of a dental benefits program, excluding costs of dental services provided. and escalating benefit costs, in particular post-retirement benefit plan costs. Targets also recognize lower revenues from a 2003 renegotiation of our largest industrial customer's rates and the mid-year 2004 loss of a wholesale customer. "We've reduced our annual earnings targets for Cleco Evangeline from $0.30 per share to $0.20 per share based upon our experience during the past two years with the operations and maintenance of that facility. The previous profitability targets were based upon the assumption the unit would run for prolonged pro·long tr.v. pro·longed, pro·long·ing, pro·longs 1. To lengthen in duration; protract. 2. To lengthen in extent. periods of time as a base-load facility," Eppler said. "However, the reality of the current gas and power markets has resulted in the unit operating more as a peaking facility, starting and stopping more than anticipated. Those starts and stops have increased wear on the equipment, in effect reducing the useful life of the turbine parts. Since we expect current market conditions in our area to remain unchanged for the foreseeable fore·see tr.v. fore·saw , fore·seen , fore·see·ing, fore·sees To see or know beforehand: foresaw the rapid increase in unemployment. future, we believe that the $0.20 per share annual target is more appropriate. "Our corporate earnings targets assume no net income effect of the Perryville project. During the time Perryville remains in bankruptcy, we anticipate that Perryville will be accounted for separately from Cleco Corporation, and its net income or loss will not be 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: into Cleco Corporation statements until the bankruptcy is resolved. For 2004, we expect Perryville to post a net loss of approximately $0.15 per share." Cleco management will discuss the company's 2003 fourth-quarter 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. ) Wednesday Wednesday: see week. , March 10, 2004. 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 website at www.cleco.com, by selecting "Investor Relations Investor relations The process by which the corporation communicates with its investors. ", then "Investor Relations/Webcasts" and "Cleco Corporation Fourth Quarter and Full-Year Earnings Conference Call." A reconciliation of non-GAAP financial information to GAAP measures will also be listed on the company's website as described above at the time of the webcast. Cleco's businesses referred to in this news release are: Cleco Power LLC Cleco Midstream Resources LLC Perryville Energy Partners, LLC Other (Cleco Corporation; Cleco Support Group LLC, Cleco Innovations LLC; CLE Cle total elimination clearance. 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, including the 718-megawatt Perryville facility..
For more information about Cleco, visit www.cleco.com.Financial tables follow:
Schedule I
----------
Reconciliation of Midstream, Midstream Wholesale Generating Projects,
--------------------------------------------------------------------
and Perryville Non-GAAP Earnings Data to Their Most Comparable
--------------------------------------------------------------
Financial Measure Calculated and Presented in Accordance with GAAP
------------------------------------------------------------------
Diluted EPS
------------------------------
Three Months Twelve Months
Ended Ended
------------------------------
December 31, December 31,
2003 2003
------------------------------
Cleco Midstream Resources LLC ($0.43) ($1.83)
Add: Perryville impairment charge $0.17 $1.94
------------------------------
Cleco Midstream Resources LLC (excluding
impairment charge) ($0.26) $0.11
==============================
Cleco Midstream wholesale generating
operations (Evangeline, Acadia, and
Perryville projects) ($0.30) ($1.63)
Add: Perryville impairment charge $0.17 $1.94
------------------------------
Cleco Midstream wholesale generating
operations (excluding impairment
charge) ($0.13) $0.31
==============================
Perryville Energy Partners, LLC ($0.27) ($1.91)
Add: Perryville impairment charge $0.17 $1.94
------------------------------
Perryville Energy Partners, LLC
(excluding impairment charge) ($0.10) $0.03
==============================
Comparison of Diluted EPS
------------------------------
For the Three Months Ended
December 31,
------------------------------
2003 2002 Variance
------------------------------
Cleco Midstream Resources LLC ($0.43) ($0.14) ($0.29)
Add: Perryville impairment charge $0.17 $0.00 $0.17
------------------------------
Cleco Midstream Resources LLC (excluding
impairment charge) ($0.26) ($0.14) ($0.12)
==============================
Cleco Midstream wholesale generating
operations ($0.30) $0.12 ($0.42)
Add: Perryville impairment charge $0.17 $0.00 $0.17
------------------------------
Cleco Midstream wholesale generating
operations (excluding impairment
charge) ($0.13) $0.12 ($0.25)
==============================
Perryville Energy Partners, LLC ($0.27) $0.09 ($0.36)
Add: Perryville impairment charge $0.17 $0.00 $0.17
------------------------------
Perryville Energy Partners, LLC
(excluding impairment charge) ($0.10) $0.09 ($0.19)
==============================
Schedule I (Continued)
---------------------
Comparison of Diluted EPS
----------------------------
For the Twelve Months Ended
December 31,
----------------------------
2003 2002 Variance
----------------------------
Cleco Midstream Resources LLC ($1.83) $0.31 ($2.14)
Add: Perryville impairment charge $1.94 $0.00 $1.94
----------------------------
Cleco Midstream Resources LLC (excluding
impairment charge) $0.11 $0.31 ($0.20)
==========------------------
Cleco Midstream wholesale generating
operations ($1.63) $0.59 ($2.22)
Add: Perryville impairment charge $1.94 $0.00 $1.94
----------------------------
Cleco Midstream wholesale generating
operations (excluding impairment charge) $0.31 $0.59 ($0.28)
============================
Perryville Energy Partners, LLC ($1.91) $0.22 ($2.13)
Add: Perryville impairment charge $1.94 $0.00 $1.94
----------------------------
Perryville Energy Partners, LLC (excluding
impairment charge) $0.03 $0.22 ($0.19)
============================
CLECO CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(Thousands, except share and per share amounts)
(UNAUDITED)
Three months ended December 31 2003 2002
----------------------------------------------------------------------
Operating revenue
Electric operations $156,922 $132,138
Tolling operations 10,586 23,994
Energy trading, net (385) 664
Energy operations 18,031 9,275
Other operations 7,370 8,969
------------------------
Gross operating revenue 192,524 175,040
Electric customer credits - (1,325)
------------------------
Total operating revenue 192,524 173,715
------------------------
Operating expenses
Fuel used for electric generation 42,658 37,931
Power purchased for utility customers 49,406 36,153
Purchases for energy operations 16,646 7,943
Operations and maintenance 41,553 29,581
Depreciation 17,672 20,756
Restructuring charge (271) 10,164
Impairment of long-lived assets 21,477 3,587
Taxes other than income taxes 9,509 8,793
------------------------
Total operating expenses 198,650 154,908
------------------------
Operating (loss) income (6,126) 18,807
Interest income 477 461
Allowance for other funds used during
construction 628 1,352
Equity income from investees 7,729 8,065
Other income 709 292
Other expenses (2,285) (1,760)
------------------------
Income before interest charges 1,132 27,217
Interest charges
Interest charges, including amortization
of debt expenses, premium and discount, net
of capitalized interest 18,099 19,414
Allowance for borrowed funds used during
construction (190) 115
------------------------
Total interest charges 17,909 19,529
------------------------
(Loss) income before income taxes and
preferred dividends (16,777) 7,688
Federal and state income taxes (benefit) expense (6,632) 4,508
------------------------
(Loss) income before preferred dividends (10,145) 3,180
Preferred dividends requirements, net 465 467
------------------------
Net (loss) income applicable to common stock $(10,610) $2,713
========================
CLECO CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS (Continued)
(Thousands, except share and per share amounts)
(UNAUDITED)
Three months ended December 31 2003 2002
----------------------------------------------------------------------
Average shares of common stock outstanding
Basic 46,887,283 47,033,461
Diluted 46,887,283 49,486,816
Basic (loss) earnings per share
Net (loss) income applicable to common
stock $(0.23) $0.06
Diluted (loss) earnings per share
Net (loss) income applicable to common
stock $(0.23) $0.06
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)
(UNAUDITED)
Twelve months ended December 31 2003 2002
----------------------------------------------------------------------
Operating revenue
Electric operations $676,002 $568,102
Tolling operations 98,726 90,260
Energy trading, net (855) 1,675
Energy operations 71,639 30,051
Other operations 30,687 34,036
----------------------
Gross operating revenue 876,199 724,124
Electric customer credits (1,562) (2,900)
----------------------
Total operating revenue 874,637 721,224
----------------------
Operating expenses
Fuel used for electric generation 163,769 143,733
Power purchased for utility customers 231,839 151,086
Purchases for energy operations 66,869 25,317
Operations and maintenance 158,472 122,372
Depreciation 77,550 69,157
Restructuring charge (757) 10,164
Impairment of long-lived assets 156,250 3,587
Taxes other than income taxes 39,285 38,812
----------------------
Total operating expenses 893,277 564,228
----------------------
Operating (loss) income (18,640) 156,996
Interest income 2,380 1,576
Allowance for other funds used during
construction 2,741 2,719
Equity income from investees 31,631 16,204
Other income 3,652 2,181
Other expenses (9,224) (4,949)
----------------------
Income before interest charges 12,540 174,727
Interest charges
Interest charges, including amortization of
debt expenses, premium and discount, net of
capitalized interest 72,256 61,212
Allowance for borrowed funds (813) (603)
----------------------
Total interest charges 71,443 60,609
----------------------
(Loss) income before income taxes and preferred
dividends (58,903) 114,118
Federal and state income taxes (benefit) expense (23,974) 42,243
----------------------
(Loss) income before preferred dividends (34,929) 71,875
Preferred dividends requirements, net 1,861 1,872
----------------------
Net (loss) income applicable to common stock $(36,790) $70,003
======================
CLECO CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS (Continued)
(Thousands, except share and per share amounts)
(UNAUDITED)
Twelve months ended December 31 2003 2002
----------------------------------------------------------------------
Average shares of common stock outstanding
Basic 46,820,058 46,245,104
Diluted 46,820,058 48,771,864
Basic (loss) earnings per share
Net (loss) income applicable to common
stock $(0.79) $1.51
Diluted (loss) earnings per share
Net (loss) income applicable to common
stock $(0.79) $1.47
Cash dividends paid per share of common stock $ 0.90 $0.895
CLECO CORPORATION
CONSOLIDATED BALANCE SHEETS
(Thousands)
(UNAUDITED)
Dec. 31, Dec. 31,
2003 2002
----------------------------------------------------------------------
Assets
Current assets
Cash and cash equivalents $95,381 $114,331
Account receivable, net 56,890 77,863
Other current assets 101,128 92,637
----------------------------------------------------------------------
Total current assets 253,399 284,831
Property, plant & equipment, net 1,417,066 1,566,155
Equity investment in investee 264,073 273,688
Prepayments, deferred charges and other 224,888 219,882
----------------------------------------------------------------------
Total assets $2,159,426 $2,344,556
======================================================================
Liabilities
Current liabilities
Short-term debt $205,705 $360,702
Accounts payable 92,081 112,504
Other current liabilities 47,769 45,483
----------------------------------------------------------------------
Total current liabilities 345,555 518,689
Deferred credits and other liabilities 405,345 377,205
Long-term debt, net 907,058 868,684
----------------------------------------------------------------------
Total liabilities 1,657,958 1,764,578
----------------------------------------------------------------------
Shareholders' equity
Preferred stock 18,717 17,508
Common stock 486,531 565,304
Other comprehensive income (3,780) (2,834)
----------------------------------------------------------------------
Total shareholders' equity 501,468 579,978
----------------------------------------------------------------------
Total liabilities and equity $2,159,426 $2,344,556
======================================================================
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 impact of Mirant's bankruptcy on any sale of the Perryville plant, Mirant's tolling agreement and Perryville's debt, the financial condition of the Company's other 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 the counterparties, the possible 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). 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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