Cleco Corp. Reports Full-Year 2005 Earnings; Issues Guidance for 2006 Results.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 reported 2005 net income of $180.8 million, with $108.0 million of it realized from the sale of Perryville's plant and related claims and the subsidiary's reintegration reintegration /re·in·te·gra·tion/ (-in-te-gra´shun) 1. biological integration after a state of disruption. 2. restoration of harmonious mental function after disintegration of the personality in mental illness. into Cleco's 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: results. Excluding income from the Perryville Perryville is the name of some places in the United States of America:
n. 1. The act or process of reconsolidating; the state of being reconsolidated. , net income for 2005 was $72.8 million, a 14 percent increase over the $64.0 million earned in 2004. Perryville's 2005 results included the sale of both the plant and claims stemming stemming - stemmer from the 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. Corp. 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 , as well as losses incurred by the project since its bankruptcy filing on Jan. 28, 2004. On an earnings 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. ) basis, Cleco recorded earnings of $3.53 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, of which $2.11 per share related to Perryville. Excluding Perryville, Cleco earned $1.42 per diluted share for 2005, up $0.10 per share over the $1.32 per share recorded in 2004. Excluding Perryville, the increase in 2005 earnings over 2004 was largely attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to improved results at Cleco Power LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control (Cleco Power) and lower corporate expenses, partially offset by a decrease in earnings at Cleco Midstream mid·stream n. 1. The middle part of a stream. 2. The part of a course that is neither at the beginning nor at the end: the midstream of life. Noun 1. Resources LLC (Cleco Midstream). The lower non-Perryville earnings at Cleco Midstream were primarily due to a reserve for uncollectible Adj. 1. uncollectible - not capable of being collected; "a bad (or uncollectible) debt" bad invalid - having no cogency or legal force; "invalid reasoning"; "an invalid driver's license" revenue from tolling agreements a subsidiary of Calpine
v. 1. To refuse to accept, submit to, believe, or use something. 2. To discard as defective or useless; throw away. 3. To spit out or vomit. 4. as part of its bankruptcy proceeding. Subsidiaries of Cleco and Calpine are joint owners joint owners npl → copropietarios mpl of Acadia Power Partners, LLC (APP See application. app - application program ), which owns a 1,160-megawatt plant near Eunice Eunice, city, United States Eunice (y  `nĭs), city (1990 pop. 11,162), St. Landry parish, S central La.; inc. 1895. . Calpine Energy Services L.P. (CES) holds tolling
agreements for the entire output of the Acadia plant.Fourth-quarter 2005 earnings were $2.12 per diluted share, with $2.09 per share coming from Perryville. Fourth-quarter earnings excluding Perryville were $0.03 per diluted share, down from the $0.28 per share recorded in the fourth quarter of 2004. Factors affecting earnings included the reserve of uncollectible revenue from the Acadia tolling agreements, as well as higher income taxes and increased 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. at Cleco Power. "We produced solid financial results, completed the Perryville transactions, and made significant 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. on our strategy to 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. our fuel mix and create a foundation for 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. growth of the company. 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 ) recently approved our plan to build a $1 billion solid-fuel unit at our Rodemacher Power Station, and the Louisiana Louisiana (ləwē'zēăn`ə, l ē'–), state in the S central United States. It is bounded by Mississippi, with the Mississippi R. Department of Environmental
Quality issued the final air permit for the project. We expect
construction on the unit to be under way by early in the second quarter
of 2006," Madison Madison, cities, United StatesMadison. 1 City (1990 pop. 12,006), seat of Jefferson co., SE Ind., on the Ohio River; settled c.1806, inc. 1838. It is a port of entry and a tobacco marketing center. said. "Our plans call for the unit to be operational in late 2009." 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 2005 Perryville transactions 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 earnings from the Perryville transactions 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 Diluted Earnings Per Share Allocated to Subsidiaries
----------------------------------------------------------------------
Three Months ended Dec. 31,
---------------------------
Subsidiary 2005 2004
---------- ------------ ------------
Cleco Power $0.13 $0.28
Cleco Midstream (excluding Perryville) (0.10) 0.02
Corporate and Other -- (0.03)
------------ ------------
Earnings from continuing operations
excluding Perryville $0.03 $0.27
Perryville reconsolidation 2.09 --
------------ ------------
Earnings from continuing operations $2.12 $0.27
Cleco Energy discontinued operations -- 0.01
------------ ------------
Earnings applicable to common stock $2.12 $0.28
============ ============
12 Months ended Dec. 31,
---------------------------
Subsidiary 2005 2004
---------- ------------ ------------
Cleco Power $1.15 $1.08
Cleco Midstream (excluding Perryville) 0.28 0.37
Corporate and Other (0.01) (0.13)
------------ ------------
Earnings from continuing operations
excluding Perryville $1.42 $1.32
Perryville reconsolidation 2.11 --
------------ ------------
Earnings applicable to common stock $3.53 $1.32
============ ============
Results for Fourth Quarter 2005:
--------------------------------
Major Reconciling Items for Fourth-Quarter EPS 2005 vs. 2004(a):
----------------------------------------------------------------
$0.28 2004 Fourth-Quarter Diluted EPS
Higher Cleco Power nonfuel revenue, net of customer refund
0.02 accrual
Higher Cleco Power nonfuel expenses, primarily operations and
(0.08) maintenance
(0.08) Higher Cleco Power income taxes
(0.01) Impact of increased number of outstanding shares
(0.12) Lower Cleco Midstream contribution, excluding Perryville
0.03 Lower corporate and other expenses
(0.01) Absence of discontinued operations at Cleco Energy
-------
$0.03 2005 Fourth-Quarter Diluted EPS excluding Perryville
2.09 Perryville reconsolidation
-------
$2.12 2005 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 generating projects and Perryville non-GAAP earnings
data to their most comparable financial measure calculated and
presented in accordance with GAAP.
Cleco Power Cleco Power's 2005 fourth-quarter earnings totaled $0.13 per diluted share, down $0.15 per share from the fourth quarter of 2004. Nonfuel revenue, net of the accrual accrual, n continually recurring short-term liabilities. Examples are accrued wages, taxes, and interest. for customer refunds, was up $0.02 per share compared to the same period a year ago largely due to an increase in the market value of energy hedging hedging, in commerce, method by which traders use two counterbalancing investment strategies so as to minimize any losses caused by price fluctuations. It is generally used by traders on the commodities market. positions connected to a fixed-price power contract with a municipal customer and increased revenue from two municipal customers.
(Million kWh) For the three months ended Dec. 31,
-----------------------------------
2005 2004 Change
-----------------------------------
Electric Sales
Residential 820 811 1.1 %
Commercial 455 462 (1.5)%
Industrial 715 745 (4.0)%
Other retail 156 152 2.6 %
Unbilled (38) (37) 2.7 %
------------------------
Total retail 2,108 2,133 (1.2)%
Sales for resale 143 176 (18.8)%
------------------------
Total retail and wholesale customer
sales 2,251 2,309 (2.5)%
For the fourth quarter, cooling degree-days were approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 33 percent above normal, but they fell 31 percent below 2004's unusually warm fourth-quarter weather. Heating degree-days for the quarter were about 5 percent above normal and 24 percent above 2004 fourth-quarter levels. The slight increase in revenue was more than offset by an $0.08 per share rise in nonfuel expenses during the quarter compared to the same period of 2004. Operating and maintenance expenses were $0.05 per share higher than in the fourth quarter of 2004 mainly due to recognition of third-quarter storm restoration labor costs, increased right-of-way Right-of-way or right of way may refer to: In geography:
An account which cannot be collected by a company because the customer is not able to pay or is unwilling to pay. expense, partially offset by lower power plant maintenance costs. In addition, other expenses were up $0.03 per share because of higher depreciation expense, increased property tax and franchise tax 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. , and lower AFUDC AFUDC Allowance for Funds Used During Construction AFUDC Accumulated Funds Used During Construction revenue. Income taxes were up $0.08 per share compared to the same period of 2004 because of a requirement to normalize normalize to convert a set of data by, for example, converting them to logarithms or reciprocals so that their previous non-normal distribution is converted to a normal one. state tax benefits generated by the casualty losses specific to hurricanes Katrina KATRINA Keeping All the Resources in New Orleans Alive KATRINA Krewe Aiding Trash Removal In the New Orleans Area and Rita. Finally, the utility's earnings were reduced by $0.01 per share because of an increase in the number of outstanding shares of common stock. 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 recorded earnings of $1.99 per share for the fourth quarter of 2005. Excluding the $2.09 per share from the reconsolidation of Perryville, however, Cleco Midstream lost $0.10 per share in the fourth quarter. That compares with an earnings contribution of $0.02 per share recorded in the fourth quarter of 2004. Much of the fourth-quarter loss can be attributed to a $0.07 per share loss from Acadia, which was largely due to a reserve for uncollectible revenue from the plant's tolling agreements with CES. Calpine and certain of its subsidiaries, including CES, filed for federal bankruptcy protection on Dec. 20, 2005. In addition, Acadia recorded higher interest expense in the fourth quarter of 2005 as compared to the same period of 2004. Acadia's results were $0.13 per share lower than its contribution in the fourth quarter of 2004. 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. posted a $0.02 per share loss for the quarter, the same as its fourth-quarter 2004 results. Administrative costs administrative costs, n.pl the overhead expenses incurred in the operation of a dental benefits program, excluding costs of dental services provided. at Midstream were $0.01 per share lower for the quarter compared to the same period a year ago. Perryville's results were deconsolidated from corporate financial statements once it filed for bankruptcy protection on Jan. 28, 2004. With Perryville's emergence from 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. protection on Oct. 11, 2005, its results were reintegrated with Cleco's consolidated earnings in the fourth quarter of 2005. The consolidated figures include the sale of Perryville generating assets and the Mirant claim, as well as losses from the project from Jan. 29, 2004, to Oct. 11, 2005. Perryville ended the quarter contributing $2.09 per share toward earnings. Other Corporate and other expenses were $0.03 per share lower for the fourth quarter of 2005 compared to the same period of 2004, primarily due to lower interest expense relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the repayment Repayment The act of paying back a debt. Notes: Everyone has to repay their debts eventually. See also: Debt, Defeasance, Loan of $100 million of senior notes in June June: see month. 2005. Also affecting the quarter-to-quarter comparison was the absence of the $0.01 per share gain realized in the fourth quarter of 2004 from the discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. of Cleco Energy LLC. Substantially all of Cleco Energy's assets were sold in the last half of 2004. Results for 12 Months ended Dec. 31, 2005: ------------------------------------------ Major Reconciling Items for 12 Months ended Dec. 31 EPS 2005 vs. 2004(a): ---------------------------------------------------------------- $1.32 12 Months ended Dec. 31, 2004, Diluted EPS 0.20 Higher Cleco Power nonfuel revenue (0.15) Higher Cleco Power operating and maintenance expenses 0.04 Lower Cleco Power interest expense (0.06) Higher Cleco Power depreciation and other expenses (0.08) Higher Cleco Power income tax expense 0.03 Gain on sale of Cleco Power distribution assets 0.14 Absence of 2004 Cleco Power fuel audit settlement (0.05) Share dilution caused by higher number of outstanding shares (0.12) Lower contribution from Cleco Midstream generating projects 0.03 Absence of January 2004 Perryville consolidated loss 0.12 Lower corporate expenses, primarily lower interest expense ------- $1.42 2005 Diluted EPS excluding Perryville 2.11 Perryville reconsolidation ------- $3.53 12 Months ended Dec. 31, 2005, 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 generating projects, and Perryville non-GAAP earnings data to their most comparable financial measure calculated and presented in accordance with GAAP. Cleco Power For 2005, Cleco Power's earnings were $1.15 per share, up $0.07 per share from 2004's results. Nonfuel revenue for the year was $0.20 per share higher than 2004. Base revenue was up $0.05 per share over 2004. The major reasons for the increase were higher revenue from two municipal customers, warmer-than-normal weather, and an adjustment for the recovery of fuel transportation costs. Partially offsetting the increase in base revenue was the loss of revenue due to outages caused by hurricanes Katrina and Rita, the 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 in May 2004 of a wholesale contract with a municipal customer, and the absence of a 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. adjustment recorded in 2004.
(Million kWh) For the 12 months ended Dec. 31,
--------------------------------
2005 2004 Change
---------- ----------- ---------
Electric Sales
Residential 3,516 3,507 0.3 %
Commercial 1,838 1,854 (0.9)%
Industrial 2,861 2,902 (1.4)%
Other retail 610 597 2.2 %
Unbilled 18 (3) 733.3%
----------------------
Total retail 8,843 8,857 (0.2)%
Sales for resale 552 1,057 (47.8)%
----------------------
Total retail and wholesale customer
sales 9,395 9,914 (5.2)%
Cooling degree-days were up 5 percent in 2005 over 2004 and 16 percent above normal. Heating degree-days were 17 percent below normal in 2005 and 5 percent below 2004 levels. In addition, other revenue was up $0.05 per share over 2004 largely because of lower accruals for customer refunds and $0.07 per share higher because of an increase in the market value of open energy hedge positions. Transmission and miscellaneous revenues were also up $0.03 per share over the prior year. Nonfuel operating expenses were $0.15 per share higher in 2005 than 2004. Operations expense increased $0.13 per share mainly due to higher employee salary and benefit costs, the absence of a 2004 adjustment in joint pole use fees, and higher uncollectible account expenses. That increase was partially offset by the absence of an economic development incentive. Maintenance expense was up $0.09 per share in 2005 over 2004 levels largely because of increased right-of-way maintenance, higher costs for power plant maintenance, and amortization of storm restoration costs. Also adding to the increase were generation resource planning Resource planning may refer to:
Partially offsetting the increase in expenses was $0.07 per share of lower capacity charges paid in 2005 versus 2004. Interest expense was down $0.04 per share compared to 2004 primarily due to the redemption The liberation of an estate in real property from a mortgage. Redemption is the process by which land that has been mortgaged or pledged is bought back or reclaimed. It is accomplished through a payment of the debt owed or a fulfillment of the other conditions. of mortgage bonds, partially offset by higher interest paid on senior notes issued in July July: see month. and November November: see month. 2005. Depreciation and other expenses were up $0.06 per share over the prior year. Income tax expense for Cleco Power was $0.08 per share higher compared to 2004 primarily due to a requirement to normalize any state tax benefit derived de·rive v. de·rived, de·riv·ing, de·rives v.tr. 1. To obtain or receive from a source. 2. from casualty losses from the storms as well as the absence of a favorable 2004 federal income tax return true-up. In addition, Cleco Power realized a gain of $0.03 per share during 2005 from the sale of distribution assets in Franklinton Franklinton may refer to:
Finally, the utility's 2005 earnings were reduced by $0.05 per share because of an increase in the number of outstanding shares of common stock. 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 2005 earnings were $2.39 per share, which includes $2.11 per share from the Perryville reconsolidation. Excluding Perryville, Cleco Midstream produced 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 of $0.28 per share for 2005, down $0.09 per share from 2004 results. Evangeline earned $0.22 per share, down $0.04 per share from 2004 resulting from a variety of factors, among them lower variable operating and maintenance revenue in 2005, lower plant efficiency, and increased sales tax sales tax, levy on the sale of goods or services, generally calculated as a percentage of the selling price, and sometimes called a purchase tax. It is usually collected in the form of an extra charge by the retailer, who remits the tax to the government. expense due to higher natural gas prices and higher capacity factor. Acadia contributed earnings of $0.10 per share for 2005, $0.08 per share lower than in 2004. The primary reason for the drop in earnings was the reserve for uncollectible revenue from the tolling agreements CES has asked to reject in its bankruptcy proceedings bankruptcy proceedings n. the bankruptcy procedure is: a) filing a petition (voluntary or involuntary) to declare a debtor person or business bankrupt, or, under Chapter 11 or 13, to allow reorganization or refinancing under a plan to meet the debts of the party , as well as higher interest expense. Consolidated 2005 results at Perryville were $2.11 per share, which resulted from the sale of the plant and the Mirant bankruptcy claims partially offset by losses incurred by the project from Jan. 29, 2004, through Oct. 11, 2005. The 2005 results compare to a loss of $0.03 per share recorded prior to Perryville filing for bankruptcy protection on Jan. 28, 2004. Perryville emerged from bankruptcy effective Oct. 11, 2005. Cleco Midstream's net administrative and other costs totaled $0.05 per share in 2005, unchanged from 2004. Other Corporate and other expenses posted a $0.01 per share loss in 2005 compared to a $0.13 per share loss for 2004. The $0.12 per share improvement was mainly the result of lower interest expense due to the repayment of $100 million of senior notes in June 2005, an increase in interest income, and a decrease in professional fees. 2006 Outlook: "The application for a Certificate of Public Convenience and Necessity for our proposed solid-fuel unit at Rodemacher Power Station was unanimously approved Feb. 22 by the Louisiana Public Service Commission. We also received our air permit for the project on Feb. 23. We expect to have construction under way in April. "At a total cost of about $1 billion, it's it's 1. Contraction of it is. 2. Contraction of it has. See Usage Note at its. it's it is or it has it's be ~have a large project for a company our size, but we believe we can raise adequate capital to get the job done. We intend to fund construction of the plant with a balanced approach that keeps our credit rating strong. Helping our financing plan was the LPSC's decision that gives us the ability to collect an amount equal to approximately 75 percent of the carrying costs Carrying costs Costs that increase with increases in the level of investment in current assets. of construction while the plant is being built. "Regulators also approved a method for us to recover the money spent rebuilding our system after hurricanes Katrina and Rita, which strengthens our cash flow," Madison said. "Commissioners authorized au·thor·ize tr.v. au·thor·ized, au·thor·iz·ing, au·thor·iz·es 1. To grant authority or power to. 2. To give permission for; sanction: us to collect $23.4 million, which is the 10-year amortization of the approximately $161 million spent on the storms. Later this year, Cleco Power and the LPSC will reassess reassess Verb to reconsider the value or importance of reassessment n Verb 1. reassess - revise or renew one's assessment reevaluate our storm costs and consider securitization Securitization The process of creating a financial instrument by combining other financial assets and then marketing them to investors. Notes: Mortgage backed securities are a perfect example of securitization. May also be spelled as "securitisation. , which offers the potential to reduce the cost to customers. In addition, we're we're Contraction of we are. we're we are still pursuing federal government assistance that would be used to reduce what our customers pay for rebuilding the system." "Also pending before the LPSC is a staff-proposed rate plan that would set 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. return on equity at 11.25 percent starting Oct. 1, 2006, and continuing through operational startup (STARTing UP) "At startup" means when the computer is first turned on or when a program is first loaded. See Startup folder. of the new unit, which is expected to occur in late 2009. The staff has proposed a plan where 60 percent of any earnings between 11.25 percent and 12.25 percent would be returned to customers, and everything above 12.25 percent would be refunded to customers. It effectively gives us a regulated rate of return of 11.65 percent. We expect the staff's plan to be considered by the commission in the near future." Acadia Issues: "Among the challenges we face will be the issues surrounding sur·round tr.v. sur·round·ed, sur·round·ing, sur·rounds 1. To extend on all sides of simultaneously; encircle. 2. To enclose or confine on all sides so as to bar escape or outside communication. n. the Calpine bankruptcy and putting ourselves in a position to extract To decompress. WinZip and other decompression utilities use the term to mean "pulling out" the original files from the compressed archive. See WinZip and data compression. the most value possible from our interest in the Acadia plant," Madison said. Calpine and a number of its subsidiaries filed for Chapter 11 protection on Dec. 20, 2005. On Dec. 21, 2005, Calpine filed a motion in bankruptcy court to reject CES's tolling agreements with APP. Rejection Rejection Refusal by a bank to grant credit, usually because of the applicants financial history, or refusal to accept a security presented to complete a trade, usually because of a lack of proper endorsements or violation of rules of a firm. of the tolling agreements remains pending, although CES stopped making its payments under the agreements after filing for bankruptcy. Cleco has drawn $2.7 million in 2006 from a $15 million letter of credit it had secured from Calpine in the event CES did not live up to the terms of the tolling agreements. Cleco will draw on the remaining $12.3 million as called for in 2006. "Rejection of the tolling agreements will reduce earnings, but the project will still produce cash. The project's annual preferred distribution to Cleco will help sustain Cleco's investment in the plant if it has to operate on a merchant basis," Madison said. "We do not expect Calpine's bankruptcy to affect Cleco Power's costs or reliability this year. Cleco Power had contracted with CES for 200 megawatts for 2006, but we have secured access to alternate alternate /al·ter·nate/ (awl´ter-nit) 1. following in turns. 2. pertaining to every other one in a series. 3. occurring in place of another; acting as a substitute. sources of power if CES is unable to perform," Madison said. 2006 Earnings Guidance: "We anticipate consolidated earnings in the range of $1.25 to $1.35 per share in 2006," Madison said. "This assumes Cleco Power results are $1.10 to $1.20 per share, Midstream contributes a total of $0.10 per share, and corporate adds $0.05 per share. Our targets assume normal weather, 2006 expenditures of about $200 million on the Rodemacher project, the continuation continuation - continuation passing style of our current rate plan through Sept. 30, 2006, and thereafter the new rate plan as proposed by LPSC staff. "Midstream's contribution is based on Evangeline earning approximately $0.20 per share and Acadia recording a loss of about $0.10 per share. The earnings estimate for Evangeline assumes continued performance by its tolling counterparty Counterparty The other participant, including intermediaries, in a swap or contract. ," Madison said. "In addition, Acadia's 2006 target is based on assumptions about plant operations, market conditions, and earnings resulting from the drawing down of the $15 million letter of credit from Calpine." Cleco management will discuss the company's annual and fourth-quarter 2005 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 1, 2006. 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 2005 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 Resources, Inc.)
Cleco Corp. is a regional energy company headquartered in Pineville, La. It operates a regulated electric utility company that serves 267,000 customers across Louisiana. Cleco also operates a wholesale energy business with approximately 1,350 megawatts of generating capacity. 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,
-----------------------------------
2005 2004 Variance
----------- ----------- ----------
Cleco Midstream earnings from
continuing operations $1.99 $0.02 $1.97
Less: Perryville reconsolidation ($2.09) -- ($2.09)
----------- ----------- ----------
Cleco Midstream earnings (loss)
from continuing operations
(excluding Perryville) ($0.10) $0.02 ($0.12)
=========== =========== ==========
Cleco Midstream generating
operations earnings $2.00 $0.04 $1.96
Less: Perryville transactions ($2.09) -- ($2.09)
----------- ----------- ----------
Cleco Midstream generating
operations earnings (loss)
(excluding Perryville) ($0.09) $0.04 ($0.13)
=========== =========== ==========
Perryville Energy Partners, L.L.C. $2.09 -- $2.09
Less: Perryville reconsolidation (2.09) -- (2.09)
----------- ----------- ----------
Perryville Energy Partners, L.L.C.
earnings (excluding Perryville) -- -- --
=========== =========== ==========
Comparison of Diluted
Earnings per Share
-----------------------------------
For the 12 Months ended Dec. 31,
-----------------------------------
2005 2004 Variance
----------- ----------- ----------
Cleco Midstream earnings from
continuing operations $2.39 $0.37 $2.02
Less: Perryville reconsolidation ($2.11) -- ($2.11)
----------- ----------- ----------
Cleco Midstream earnings from
continuing operations (excluding
Perryville) $0.28 $0.37 ($0.09)
=========== =========== ==========
Cleco Midstream generating
operations earnings $2.43 $0.41 $2.02
Less: Perryville reconsolidation ($2.11) -- ($2.11)
----------- ----------- ----------
Cleco Midstream generating
operations earnings (excluding
Perryville) $0.32 $0.41 ($0.09)
=========== =========== ==========
Perryville Energy Partners, L.L.C. $2.11 ($0.03) $2.14
Less: Perryville reconsolidation ($2.11) -- ($2.11)
----------- ----------- ----------
Perryville Energy Partners, L.L.C.
earnings (excluding Perryville) -- ($0.03) $0.03
=========== =========== ==========
CLECO CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(Thousands, except share and per share amounts)
(UNAUDITED)
For the three months ended Dec. 31, 2005 2004
----------------------------------------------------------------------
Operating revenue
Electric operations $259,887 $172,734
Other operations 9,217 8,028
Affiliate revenue 1,391 2,405
-----------------------
Gross operating revenue 270,495 183,167
Electric customer credits (221) 287
-----------------------
Operating revenue, net 270,274 183,454
Operating expenses
Fuel used for electric generation 80,776 43,521
Power purchased for utility customers 108,355 60,881
Other operations 22,019 23,423
Maintenance 13,670 9,611
Depreciation 15,271 14,780
Taxes other than income taxes 10,423 8,561
-----------------------
Total operating expenses 250,514 160,777
-----------------------
Operating income 19,760 22,677
Interest income 2,323 944
Allowance for other funds used during
construction 245 1,021
Equity income from investees 172,320 6,590
Other income 1,121 2,042
Other expense (1,286) (1,529)
Interest charges
Interest charges, including amortization
of debt expenses, premium and discount,
net of capitalized interest 8,854 12,373
Allowance for borrowed funds used during
construction (201) (349)
-----------------------
Total interest charges 8,653 12,024
-----------------------
Income from continuing operations before income
taxes 185,830 19,721
Federal and state income tax expense 75,460 5,915
-----------------------
Income from continuing operations 110,370 13,806
Discontinued operations
Loss from discontinued operations, net of
tax (104) (1,451)
Gain from disposal of segment, net of tax -- 1,957
-----------------------
Total (loss) income from discontinued
operations (104) 506
-----------------------
Net income 110,266 14,312
Preferred dividends requirements, net 490 471
-----------------------
Net income applicable to common stock $109,776 $13,841
=======================
CLECO CORPORATION
CONSOLIDATED STATEMENTS OF INCOME (Continued)
(Thousands, except share and per share amounts)
(UNAUDITED)
For the three months ended Dec. 31, 2005 2004
----------------------------------------------------------------------
Average shares of common stock outstanding
Basic 49,615,708 48,163,155
Diluted 51,926,160 50,482,222
Basic earnings per share
From continuing operations $2.14 $0.27
From discontinued operations $-- 0.01
-----------------------
Net income applicable to common stock $2.14 $0.28
Diluted earnings per share
From continuing operations $2.12 $0.27
From discontinued operations $-- 0.01
-----------------------
Net income applicable to common stock $2.12 $0.28
Cash dividends paid per share of common stock $0.225 $0.225
CLECO CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(Thousands, except share and per share amounts)
(UNAUDITED)
For the 12 months ended Dec. 31, 2005 2004
----------------------------------------------------------------------
Operating revenue
Electric operations $874,557 $718,151
Tolling operations - 10,255
Other operations 38,710 30,533
Affiliate revenue 7,879 7,767
-----------------------
Gross operating revenue 921,146 766,706
Electric customer credits (992) (20,889)
-----------------------
Operating revenue, net 920,154 745,817
Operating expenses
Fuel used for electric generation 197,915 153,750
Power purchased for utility customers 376,561 267,371
Other operations 88,234 83,816
Maintenance 46,517 40,917
Depreciation 60,330 59,930
Taxes other than income taxes 41,069 38,895
Gain on sales of assets (2,206) --
-----------------------
Total operating expenses 808,420 644,679
-----------------------
Operating income 111,734 101,138
Interest income 5,310 3,956
Allowance for other funds used during
construction 2,349 3,723
Equity income from investees 218,441 47,250
Other income 4,567 2,520
Other expense (2,937) (4,398)
Interest charges
Interest charges, including amortization
of debt expenses, premium and discount,
net of capitalized interest 41,438 53,451
Allowance for borrowed funds used during
construction (903) (1,245)
-----------------------
Total interest charges 40,535 52,206
-----------------------
Income from continuing operations before income
taxes 298,929 101,983
Federal and state income tax expense 115,951 35,864
-----------------------
Income from continuing operations 182,978 66,119
Discontinued operations
Loss from discontinued operations, net of
tax (334) (1,615)
Gain from disposal of segment, net of tax -- 1,685
-----------------------
Total (loss) income from discontinued
operations (334) 70
-----------------------
Net income 182,644 66,189
Preferred dividends requirements, net 1,865 2,216
-----------------------
Net income applicable to common stock $180,779 $63,973
=======================
CLECO CORPORATION
CONSOLIDATED STATEMENTS OF INCOME (Continued)
(Thousands, except share and per share amounts)
(UNAUDITED)
For the 12 months ended Dec. 31, 2005 2004
----------------------------------------------------------------------
Average shares of common stock outstanding
Basic 49,486,790 47,371,319
Diluted 51,760,220 47,528,886
Basic earnings per share
From continuing operations $3.54 $1.33
From discontinued operations -- --
-----------------------
Net income applicable to common stock $3.54 $1.33
Diluted earnings per share
From continuing operations $3.53 $1.32
From discontinued operations -- --
-----------------------
Net income applicable to common stock $3.53 $1.32
Cash dividends paid per share of common stock $0.900 $0.900
CLECO CORPORATION
CONSOLIDATED BALANCE SHEETS
(Thousands)
At At
Dec. 31, Dec. 31,
2005 2004
----------------------------------------------------------------------
Assets
Current Assets
Cash and cash equivalents $219,153 $123,787
Accounts receivable, net 89,750 60,306
Other current assets 125,565 103,673
-----------------------
Total Current Assets 434,468 287,766
Property, plant and equipment, net 1,188,703 1,060,045
Equity investment in investees 317,762 314,284
Prepayments, deferred charges and other 208,555 174,968
-----------------------
Total Assets $2,149,488 $1,837,063
-----------------------
Liabilities
Current Liabilities
Long-term debt due within one year $40,000 $160,000
Accounts payable 144,461 75,820
Other current liabilities 109,643 101,857
-----------------------
Total Current Liabilities 294,104 337,677
Deferred credits and other liabilities 539,478 487,770
Long-term debt, net 609,643 450,552
-----------------------
Total Liabilities 1,443,225 1,275,999
-----------------------
Shareholders' Equity
Preferred stock 20,034 19,226
Common shareholders' equity 690,359 545,106
Other comprehensive income (4,130) (3,268)
-----------------------
Total Shareholders' Equity 706,263 561,064
-----------------------
Total Liabilities and Shareholders'
Equity $2,149,488 $1,837,063
-----------------------
Please note: In addition to historical financial information, this
news release contains forward-looking statements about future results
and circumstances 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 resolution of claims arising from the Calpine
bankruptcy, construction and operational startup of the new unit at
Rodemacher Power Station, extension of Cleco Power's current rate
plan, and the other risks and uncertainties more fully described in
the company's latest Annual Report on Form 10-K. Actual results may
differ materially from those indicated in such forward-looking
statements.
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