Printer Friendly

ENTERGY REPORTS INCREASED FIRST QUARTER EARNINGS

 NEW ORLEANS, April 29 /PRNewswire/ -- Entergy Corporation (NYSE: ETR) today reported first quarter 1993 consolidated net income of $151.2 million, a 58.6 percent increase over the $95.3 million reported in the first quarter of 1992.
 Earnings per share climbed to 86 cents for the first quarter of 1993, compared with 54 cents a year ago.
 Excluding certain one-time adjustments, first quarter 1993 consolidated net income from on-going operations was $86.1 million, or 49 cents per share. This is a 14.0 percent increase over the comparable number for 1992. An accounting change and the effect of two new accounting pronouncements adopted at the beginning of the year caused the difference between reported results and those from on-going operations.
 -- The predominant industry practice of recording unbilled revenues
 was adopted by all Entergy retail companies. Beginning with this
 quarter, energy delivered to customers but not yet billed to
 them, was reflected in revenues. This increased the quarter's
 reported net income by approximately $78.2 million, or 45 cents
 per share.
 -- Statement of Financial Accounting Standards (SFAS) 106 regarding
 accounting for postretirement benefits was implemented in January
 1993. This reduced net income approximately $1.8 million, or
 1 cent per share.
 -- SFAS 109 regarding accounting for income taxes was implemented in
 January 1993. This reduced reported net income by approximately
 $11.3 million, or 7 cents per share.
 In 1992 first quarter consolidated net income from on-going operations was $75.7 million, or 43 cents per share. This amount is net of a gain on the sale of Arkansas Power & Light Company's Missouri properties for $19.6 million, or 11 cents per share.
 "The $13.4 million increase in first quarter continuing operations results mainly from three items: a solid 2.1 percent increase in energy sales to retail customers; improved results from New Orleans Public Service Inc.'s gas operations; and continued reduction in long-term debt interest expense," said Gerald D. McInvale, Entergy senior vice president and chief financial officer.
 -- KWH sales to retail customers increased by approximately 270
 million due to more favorable weather and a 6,000 increase in
 retail customers.
 First quarter 1993 weather was slightly cooler compared to 1992
 first quarter and resulted in a $2.6 million positive impact on
 net income. However, in comparing first quarter to "normal"
 temperatures over a 20-year period, net income was negatively
 impacted by approximately $9.8 million.
 -- Net income from NOPSI's gas operations increased $2.9 million
 over 1992. This improvement is due primarily to a rate increase
 that took effect in mid-1992.
 -- Interest expense continued to fall as a result of recent
 refinancing. It was down $12.2 million ($7.6 million after tax),
 or 9 percent, from last year.
 "We are pleased with overall first quarter results and are continuing to emphasize improvement in operating costs," McInvale said. "During the quarter Entergy's non-fuel operating and maintenance costs increased by only 1.7 percent, net of adjustments for SFAS 106. We expect cost reductions from our recent functional restructuring activities to assist in continued strong O&M cost control efforts."
 Further explanation of the three special items affecting Entergy's reported net income follows.
 Unbilled Revenues
 Effective Jan. 1, three of Entergy's retail subsidiaries adopted the industry practice of accruing for estimated unbilled revenues. AP&L, Mississippi Power & Light and NOPSI had not previously accrued unbilled revenues.
 The change makes them consistent with Louisiana Power & Light which adopted the practice in 1984.
 Generally Accepted Accounting Principles (GAAP) have certain requirements regarding recording unbilled revenues that affect the presentation of Entergy's first quarter operating results. None of them impacts cash flow.
 SFAS 106
 Employers are now required to recognize the cost of providing benefits to retired employees and their dependents when the right to receive these benefits is earned instead of when retiree health expenses are paid. Two of Entergy's four retail jurisdictions and the Federal Energy Regulatory Commission have ruled that these expenses can be deferred and a regulatory asset has been established.
 Two jurisdictions have not yet ruled and a $1.8 million non-cash charge is included in first quarter expenses.
 SFAS 109
 This new requirement resulted in recalculating tax liabilities associated with timing differences occurring between financial statements and tax records. Entergy recorded a $11.3 million one-time expense and established additional deferred tax assets and liabilities for certain temporary timing differences. Approximately $8.3 million of the $11.3 million is due to excess deferred income taxes related to the earlier write-off of coal plant investments that were not recoverable in rates. Entergy's total assets and liabilities increased by approximately $1.2 billion as a result of the adopting SFAS 109.
 ENTERGY CORPORATION
 Consolidated Income Statement
 Three Months Ended March 31
 (In thousands)
 1993 1992 Pct. chg.
 Operating revenues: (Unaudited)
 Electric $ 897,266 $ 893,598 0.4
 Natural gas 29,146 22,869 27.4
 Total 926,412 916,467 1.1 (a)
 Operating expenses:
 Fuel and fuel-related expenses,
 purchased power, purchased gas 233,748 226,604 3.2
 Nuclear outage expenses 15,002 17,221 (12.9)
 Operations and maintenance 233,166 226,459 3.0
 Depreciation and decommissioning 110,130 105,283 4.6
 Taxes other than income taxes 48,410 50,570 (4.3)
 Income taxes 31,786 39,014 (18.5)
 Rate deferrals:
 Rate deferrals (1,313) (7,196) (81.8)
 Amortization of rate deferrals 62,740 46,833 34.0
 Total 733,669 704,788 4.1
 Operating income 192,743 211,679 (8.9)
 Other income:
 Allowance for equity funds used
 during construction 2,152 2,419 (11.0)
 Miscellaneous - net 15,387 60,735 (74.7)
 Income taxes - (debit) credit (9,577) (22,635) (57.7)
 Total 7,962 40,519 (80.3)
 Interest and other charges:
 Interest on long-term debt 123,719 135,972 (9.0)
 Other interest - net 6,614 6,695 (1.2)
 Allowance for borrowed funds used
 during construction (1,526) (1,695) (10.0)
 Total 128,807 140,972 (8.6)
 Preferred dividend requirements
 of subsidiaries 14,585 15,949 (8.6)
 Total 143,392 156,921 (8.6)
 Income before the cumulative effect
 of a change in accounting method 57,313 95,277 (39.8)
 Cumulative effect to Jan. 1, 1993,
 of Accruing Unbilled Revenues
 (net of income taxes of $57,188) 93,841 --- ---
 Earnings (loss) applicable to
 common stock 151,154 95,277 58.6
 (a) 1993 revenues have been reduced by $25.2 million due to the recording of unbilled revenues and disclosure of the cumulative effect on the Income Statement.
 Consolidated Income Statement
 Twelve Months Ended March 31
 (In thousands)
 1993 1992 Pct. chg.
 Operating revenues: (Unaudited)
 Electric $4,047,223 $4,003,026 1.1
 Natural gas 79,221 71,884 10.2
 Total 4,126,444 4,074,910 1.3 (a)
 Operating expenses:
 Fuel and fuel-related expenses,
 purchased power, purchased gas 1,038,505 993,784 4.5
 Nuclear outage expenses 85,666 87,885 (2.5)
 Operations and maintenance 1,027,511 1,024,736 0.3
 Depreciation and decommissioning 429,805 399,316 7.6
 Taxes other than income taxes 141,656 189,824 (25.4)
 Income taxes 256,932 250,599 2.5
 Rate deferrals:
 Rate deferrals (18,293) (45,714) (60.0)
 Amortization of rate deferrals 225,012 124,325 81.0
 Total 3,186,794 3,024,755 5.4
 Operating income 939,650 1,050,155 (10.5)
 Other income:
 Allowance for equity funds used
 during construction 7,088 8,478 (16.4)
 Miscellaneous - net 90,127 146,449 (38.5)
 Income taxes - (debit) credit (33,324) (45,047) (26.0)
 Total 63,891 109,880 (41.9)
 Interest and other charges:
 Interest on long-term debt 517,415 583,981 (11.4)
 Other interest - net 29,604 27,721 6.8
 Allowance for borrowed funds used
 during construction (4,925) (7,216) (31.7)
 Total 542,094 604,486 (10.3)
 Preferred dividend requirements
 of subsidiaries 61,773 63,696 (3.0)
 Total 603,867 668,182 (9.6)
 Income before the cumulative effect
 of a change in accounting method 399,674 491,853 (18.7)
 Cumulative effect to Jan. 1, 1993,
 of Accruing Unbilled Revenues
 (net of income taxes of $57,188) 93,841 --- ---
 Earnings (loss) applicable to
 common stock 493,515 491,853 0.3
 (a) 1993 revenues have been reduced by $25.2 million due to the recording of unbilled revenues and disclosure of the cumulative effect on the Income Statement.
 Earnings Per Share and Sales Summary
 (Unaudited)
 (Per share amounts in $s)
 3 mos. ended March 31 1993 1992 Pct. chg.
 Consolidated EPS 0.86 0.54 59.3
 Unusual items:
 Unbilled revenues (0.45)
 FAS 106 0.01
 FAS 109 0.07
 Missouri Sale ('92) (0.11)
 Continuing EPS from consolidated opers. 0.49 0.43 14.0
 Entergy Enterprises 0.03 0.02 50.0
 Continuing EPS from regulated opers. 0.52 0.45 15.6
 Average number of shares
 outstanding (in 000s) 175,109 177,982 (1.6)
 Electric Energy Sales:
 (millions of kwh)
 Residential 4,072 3,946 3.2
 Commercial 2,884 2,881 0.1
 Industrial 5,853 5,717 2.4
 Governmental 433 431 0.5
 Total sales to retail 13,242 12,975 2.1
 Sales for resale 1,704 2,037 (16.3)
 Total sales 14,946 15,012 (0.4)
 -0- 4/29/93
 /CONTACT: Media: Joe Holwager, 504-569-4235; Analysts: Stuart Ball, 504-569-4817, both of Entergy Corporation/
 (ETR)


CO: Entergy Corporation ST: Louisiana IN: UTI SU: ERN

RA-BN -- AT015 -- 2948 04/29/93 18:11 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Apr 29, 1993
Words:1602
Previous Article:DEPARTMENT OF FISH & GAME: NEW FEDERAL GUIDELINES FOR OCEAN SALMON SEASON
Next Article:BANDO McGLOCKLIN REPORTS RECORD PROFITS FOR THIRD QUARTER
Topics:


Related Articles
ENTERGY CORPORATION REPORTS THIRD QUARTER NET INCOME
ENTERGY CORPORATION REPORTS EARNINGS RISE IN 1991
ENTERGY CORPORATION REPORTS FIRST QUARTER EARNINGS
ENTERGY REPORTS INCREASED SECOND-QUARTER 1993 FINANCIAL RESULTS
ENTERGY ANNOUNCES RECORD THIRD QUARTER EARNINGS
ENTERGY CORPORATION ANNOUNCES 1993 EARNINGS, INCLUDING REVIEW OF GSU FINANCIAL RESULTS
ENTERGY REPORTS A DECLINE IN FIRST-QUARTER 1995 EARNINGS, DESPITE AN INCREASE IN VOLUME SALES OF ELECTRICITY
Third Quarter Revenues and Net Income Increase
Entergy Revises 1997 Earnings Outlook
Entergy Reports Third Quarter Results

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters