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ENTERGY ANNOUNCES RECORD THIRD QUARTER EARNINGS

 NEW ORLEANS, Oct. 28 /PRNewswire/ -- Entergy Corporation (NYSE: ETR) today reported record quarterly net income of $233.4 million for third quarter 1993.
 It is a 14.1 percent increase over third quarter 1992 and an 11.4 percent increase over third quarter 1990, the previous record. Net income for those two quarters, respectively, was $204.6 million and $209.6 million. Earnings per share were $1.34 in third quarter 1993, a 15.5 percent increase over $1.16 per share in 1992 and a 25.2 percent increase over $1.07 per share in 1990.
 "This excellent performance reflects our continued progress at cost control as well as increased demand due to growth and weather," said Gerald D. McInvale, senior vice president and chief financial officer. "The record results even include a one-time charge against net income of $7.3 million relating to System Energy's rate of return settlement with FERC."
 The earnings increase was driven by three major factors: (1) Unusually warm weather that increased electricity demand throughout the company's service area; (2) Strong growth in customer base and industrial demand; and (3) Continued progress in reducing and controlling costs.
 Hot summer weather caused Entergy to set five successive records for peak demand load during the third quarter. The current system high of 12,861,000 kilowatts, reached on Aug. 19, is 5.5 percent higher than the old System peak of 12,189,000 kilowatts, set in 1990. The new System peak record exceeded 1992's summer high of 11,963,000 kilowatts by 7.5 percent.
 There was exceptionally strong sales volume growth throughout Entergy's service area.
 -- Sales to retail customers increased nearly 11 percent compared
 with third quarter 1992 and totaled 18.3 billion kilowatt hours.
 Sales to residential and commercial customers were up 14.4 and
 9.0 percent, respectively, reflecting the extremely hot weather.
 -- The hot weather increased third quarter net income by
 approximately $19 million when compared to "normal" temperatures
 over a 30-year period. The hot weather added approximately
 $34 million to third quarter net income compared to the 1992
 period.
 "Although hot weather dominated third-quarter results, Entergy also had solid growth in its retail customer base and sales to industrial customers. These two areas reflect a strengthening of our region's economy and a base for future growth," McInvale said.
 -- Total retail customers increased 17,013 from Sept. 30, 1992.
 Over 9,800 new retail customers were added during the third
 quarter alone.
 -- Sales to industrial customers are not materially affected by
 weather conditions. Industrial demand was up 9.1 percent or
 548 million kilowatt hours compared with third quarter 1992.
 Although sales increases occurred in every jurisdiction, the
 Louisiana industrial corridor accounted for over half the gain
 due to very strong growth in the petrochemical industry. The
 Arkansas lumber and plywood industry, benefiting from supply
 constraints due to restrictions in the Pacific Northwest,
 accounted for about one-third of the quarter's increase.
 "We have continued to make good progress on reducing non-fuel O&M expenses and interest expense," McInvale said. "Our goal is to keep basic O&M expense growth as close to zero as possible and to aggressively reduce interest costs during this period of low interest rates."
 -- Third-quarter O&M expenses were up $4.8 million or 1.9 percent
 but included a one-time $2.7 million increase to a supplemental
 retirement plan. For nine months ending Sept. 30, O&M expenses
 are up 1.6 percent.
 -- Entergy continued to take advantage of low interest rates by
 refinancing debt instruments and retiring preferred stock.
 During the third quarter, Entergy refinanced retired
 $222.5 million of high cost debt and preferred stock. For the
 nine months ended Sept. 30, Entergy has refinanced/retired
 $663.7 million of debt and preferred stock. Long-term debt
 interest and preferred dividends are down $10.9 million compared
 to third quarter 1992 and are down $37.2 million for the nine
 months ended Sept. 30.
 Other significant items affecting third quarter results include:
 SYSTEM ENERGY-FERC RETURN ON EQUITY SETTLEMENT. On Oct. 25, FERC gave final approval to a settlement agreement among Entergy and federal and state regulators on a rate issue involving System Energy Resources, Inc., a wholly owned Entergy subsidiary. The agreement reduces System Energy's return on equity from 13 percent to 11 percent effective as of Nov. 3, 1992. During the third quarter Entergy reduced consolidated revenues by $12.1 million to reflect the lower return. The after-tax effect of this revenue reduction is $7.3 million. Through nine months, the consolidated revenue reduction is $27.2 million with an after-tax effect of $16.8 million.
 ENTERGY ENTERPRISES shows a third quarter loss of $5.4 million compared with a $2.7 million loss in the 1992 quarter. The increase is primarily attributable to three activities: (1) Start-up costs at Entergy SASI, which has opened six new offices so far this year. Entergy SASI provides energy conservation services to commercial and industrial clients; (2) Development costs associated with generation and transmission projects overseas and in the U.S.; and (3) increased personnel costs resulting from recent staffing additions. Entergy Power Corp. losses were not significantly different during the two periods.
 CHANGE IN TAX LAW. On Aug. 10, the Omnibus Budget Reconciliation Act of 1993 was signed into law. The most significant effect to Entergy was an increase in the tax rate from 34 percent to 35 percent retroactive to Jan. 1. Entergy recorded the cumulative effect of OBRA in the third quarter by increasing tax expense. Additionally, in accordance with SFAS 109, deferred tax balances were adjusted to the higher tax rate and an offsetting credit was recorded to income. The net effect on taxes paid is not material.
 The higher taxes shown on the income statements result primarily from higher pretax income.
 IMPACT OF ACCOUNTING PRINCIPLES. Earnings for the third quarter continue to reflect the adoption of two accounting principles: Unbilled Revenues and Statement of Financial Accounting Standards 106. These had a combined effect of reducing reported net income by $774,000. These items did not impact cash flow.
 NINE MONTHS 1993 EARNINGS SHOW IMPROVED RESULTS
 For the nine months ended Sept. 30, Entergy's net income totaled $515.4 million, an increase of 34.9 percent from the $382.0 million reported for the first nine months of 1992. Earnings per share were up 36.6 percent at $2.95 vs. $2.16 earned during the 1992 period.
 Net income for the first nine months of 1993 includes unusual items totaling $99.4 million. Excluding these unusual items, Income from Ongoing Consolidated Operations was $416.0 million. This compares with $362.3 million (which is net of a $19.6 million gain from a property sale) in 1992, a 14.8 percent increase. Earnings per share from Ongoing Consolidated Operations were $2.38 compared to $2.05 in 1992, an increase of 16.1 percent.
 The $99.4 million in unusual items for the first nine months of 1993 include:
 Recognition of unbilled revenues $118.2 million
 SFAS 106 post retirement benefits charge (5.6 million)
 SFAS 109 charge relating to income taxes (13.2 million)
 Total $ 99.4 million
 The nine-month 1993 financial results reflect the same strong increases in retail sales, reduced interest expense and O&M cost containment that increased third quarter earnings.
 For the nine months ended Sept. 30, temperatures have been normal compared to the region's 30-year historical average. This is because milder weather in the first half of 1993 was offset by a very hot third quarter. As a result, there has been no material weather effect on Entergy's nine-month 1993 net income.
 ACCOUNTING CHANGES AFFECT REPORTED EARNINGS
 FOR THIRD QUARTER, YEAR TO DATE
 UNBILLED REVENUES. At the beginning of 1993, Entergy's retail subsidiaries uniformly adopted the predominant industry practice of recording unbilled revenues. Under this system of revenue accounting, energy that is delivered to customers, but not yet billed to them, is reflected in revenues. Generally Accepted Accounting Principles (GAAP) have certain requirements regarding recorded unbilled revenues that affect the presentation of Entergy's second-quarter operating results. None of them impacts cash flow.
 The adoption of unbilled revenue accounting had the following effects on third-quarter 1993 financial statements:
 Revenues for the quarter are $4.8 million higher. This is
 the difference between unbilled revenues at June 30 ($188.4
 million) and at Sept. 30 ($193.2 million). The after-tax
 effect on net income of the revenue increase is $1.1 million.
 For the nine-month period ending Sept. 30, adoption of unbilled revenue accounting had the following effects:
 Revenues for the period are $42.2 million higher. This is
 the difference between unbilled revenues at Dec. 31, 1992
 ($151.0 million) and Sept. 30, 1993 ($193.2 million). The
 after-tax effect on net income of the increase in revenues
 is $24.4 million.
 GAAP requires that the after-tax effect of the $151.0 million
 unbilled revenue at Dec. 31, 1992, be shown in nine-months
 1993 net income as a cumulative effect of the accounting
 change. The cumulative effect on net income for the accounting
 change was $93.8 million.
 The total effect of the accounting change on Entergy's nine-
 month 1993 net income is $118.2 million.
 SFAS 106. This accounting requirement affects the manner in which Entergy accounts for post retirement benefits. Two of the four retail jurisdictions and FERC have ruled that these expenses can be deferred, and a regulatory asset has been established.
 Of the two jurisdictions that did not rule expenses can be deferred, one jurisdiction has ruled in favor of continued use of pay as you go expensing. The other jurisdiction has not yet ruled. A non-cash charge to net income of $1.9 million for the third quarter ($5.6 million for nine months) was included in expenses.
 SFAS 109. This requirement resulted in recalculating tax liabilities associated with timing differences between financial statements and tax records. A non-cash charge to expenses of $13.2 million is included in nine-months 1993 net income.
 ENTERGY CORPORATION
 CONSOLIDATED INCOME STATEMENT
 (Unaudited)
 (In thousands)
 3 mos. ended Sept. 30 1993 1992 Pct. chg.
 Operating revenues:
 Electric $1,397,007 $1,224,973 14.0
 Natural gas 13,944 12,921 7.9
 Total 1,410,951 1,237,894 14.0
 Operating expenses:
 Fuel and fuel-related
 expenses, purchased power,
 purchased gas 378,607 307,637 23.1
 Nuclear outage expenses 11,901 14,686 (19.0)
 SFAS 106 3,144 --- ---
 Operation and maintenance 254,472 249,644 1.9
 Depreciation and decommissioning 110,676 107,199 3.2
 Taxes other than inc. taxes 48,599 48,454 0.3
 Income taxes 150,033 109,743 36.7
 Rate deferrals:
 Rate deferrals --- (7,687) ---
 Amortization of rate deferrals 93,581 67,857 37.9
 Total $1,051,013 $ 897,533 17.1
 Operating income 359,938 340,361 5.8
 Other income:
 Allowance for equity funds
 used during construction 1,451 1,508 (3.8)
 Miscellaneous - net 15,931 21,255 (25.0)
 Income taxes - (debit) (1,194) (5,929) (79.9)
 Total 16,188 16,834 (3.8)
 Interest and other charges:
 Interest on long-term debt 121,503 131,029 (7.3)
 Other interest - net 8,162 7,237 12.8
 Allowance for borrowed funds
 used during construction (953) (1,047) (9.0)
 Total 128,712 137,219 (6.2)
 Preferred dividend requirements
 of subsidiaries 13,984 15,398 (9.2)
 Total 142,696 152,617 (6.5)
 Earnings applicable to common
 stock $ 233,430 $ 204,578 14.1
 Earnings per average
 common share $ 1.34 $ 1.16 15.5
 Avg. number of common shares
 outstanding 174,534,253 176,151,335
 9 mos. ended Sept. 30 1993 1992 Pct. chg.
 Operating revenues:
 Electric $3,345,757 $3,062,655 9.2
 Natural gas 61,708 49,827 23.8
 Total 3,407,465 3,112,482 9.5
 Operating expenses:
 Fuel and fuel-related
 expenses, purchased power,
 purchased gas 873,036 765,420 14.1
 Nuclear outage expenses 42,483 72,720 (41.6)
 SFAS 106 9,110 --- ---
 Operation and maintenance 727,109 715,649 1.6
 Depreciation and decommissioning 329,898 317,886 3.8
 Taxes other than inc. taxes 145,643 146,052 (0.3)
 Income taxes 252,744 193,519 30.6
 Rate deferrals:
 Rate deferrals (1,651) (23,470) (93.0)
 Amortization of rate deferrals 215,838 152,525 41.5
 Total $2,594,210 $2,340,301 10.8
 Operating income 813,255 772,181 5.3
 Other income:
 Allowance for equity funds
 used during construction 5,777 5,811 (0.6)
 Miscellaneous - net 51,245 104,631 (51.0)
 Income taxes - (debit) (16,411) (35,714) (54.0)
 Total 40,611 74,728 (45.7)
 Interest and other charges:
 Interest on long-term debt 368,332 401,004 (8.1)
 Other interest - net 24,941 20,480 21.8
 Allowance for borrowed funds
 used during construction (3,974) (4,035) (1.5)
 Total 389,299 417,449 (6.7)
 Preferred dividend requirements
 of subsidiaries 42,964 47,503 (9.6)
 Total 432,263 464,952 (7.0)
 Income before the cumulative
 effect of a change in
 accounting method $ 421,603 $ 381,957 10.4
 Cumulative effect to Jan. 1,
 1993, of Accruing Unbilled
 Revenues (net of income
 taxes of $57,188) 93,841 --- ---
 Earnings applicable to
 common stock $ 515,444 $ 381,957 34.9
 Earnings per average
 common share $ 2.95 $ 2.16 36.6
 Avg. number of common shares
 outstanding 174,794,391 177,056,068
 12 mos. ended Sept. 30 1993 1992 Pct. chg.
 Operating revenues:
 Electric $4,326,657 $3,963,512 9.2
 Natural gas 84,825 70,944 19.6
 Total 4,411,482 4,034,456 9 ? Operat


in expenses:
 Fuel and fuel-related
 expenses, purchased power,
 purchased gas 1,138,977 976,782 16.6
 Nuclear outage expenses 57,648 89,326 (35.5)
 SFAS 106 9,110 --- ---
 Operation and maintenance 1,032,354 1,012,282 2.0
 Depreciation and decommissioning 436,970 414,565 5.4
 Taxes other than inc. taxes 197,486 185,027 6.7
 Income taxes 269,306 246,640 9.2
 Rate deferrals:
 Rate deferrals (2,357) (30,838) (92.4)
 Amortization of rate deferrals 272,328 111,035 145.3
 Total $3,411,822 $3,004,719 13.5
 Operating income 999,660 1,029,737 (2.9)
 Other income:
 Allowance for equity funds
 used during construction 7,321 7,468 (2.0)
 Miscellaneous - net 82,089 135,202 (39.3)
 Income taxes - (debit) (27,079) (44,813) (39.6)
 Total 62,331 97,857 (36.3)
 Interest and other charges:
 Interest on long-term debt 496,996 549,608 (9.6)
 Other interest - net 34,147 26,294 29.9
 Allowance for borrowed funds
 used during construction (5,034) (5,399) (6.8)
 Total 526,109 570,503 (7.8)
 Preferred dividend requirements
 of subsidiaries 58,598 63,842 (8.2)
 Total 584,707 634,345 (7.8)
 Income before the cumulative
 effect of a change in
 accounting method $ 477,284 $ 493,249 (3.2)
 Cumulative effect to Jan. 1,
 1993, of Accruing Unbilled
 Revenues (net of income
 taxes of $57,188) 93,841 --- ---
 Earnings applicable to
 common stock $ 571,125 $ 493,249 15.8
 Earnings per average
 common share $ 3.27 $ 2.77 18.1
 Avg. number of common shares
 outstanding 174,880,840 177,833,039
 ENTERGY CORPORATION
 Earnings Recap
 3 mos. ended September 1993 1992 Pct.
 Income from ongoing regulated operations $239,597 $207,324 15.6
 Entergy Enterprises (5,393) (2,746) (96.4)
 Income from ongoing consolidated opers. 234,204 204,578 14.5
 Unusual items:
 Unbilled rev. -- 6/30/93 to 9/30/93 change 1,105
 FAS 106 (1,879)
 Net income $233,430 $204,578 14.1
 Year to Date September 1993 1992 Pct.
 Income from ongoing regulated operations $429,846 $372,698 15.3
 Entergy Enterprises (13,834) (10,374) (33.4)
 Income from ongoing consolidated opers. 416,012 362,324 14.8
 Unusual items:
 Unbilled rev. -- cum. effect at 1/1/93 93,841
 Unbilled rev. -- 1/1/93 to 9/30/93 change 24,389
 total unbilled revenue 118,230
 FAS 106 (5,601)
 FAS 109 (13,197)
 Missouri sale 19,633
 Net income $515,444 $381,957 34.9
 12 months ended September 1993 1992 Pct.
 Income from ongoing regulated operations $492,188 $441,739 11.4
 Entergy Enterprises (20,495) (16,723) (22.6)
 Income from ongoing consolidated opers. 471,693 425,016 11.0
 Unusual items:
 Unbilled rev. -- cum. effect at 1/1/93 93,841
 Unbilled rev. -- 1/1/93 to 9/30/93 change 24,389
 total unbilled revenue 118,230
 FAS 106 (5,601)
 FAS 109 (13,197)
 NOPSI settlement ('91) 48,600
 Missouri sale 19,633
 Net income $571,125 $493,249 15.8
 ENTERGY CORPORATION
 Earnings Recap
 EPS
 3 mos. ended September 1993 1992 Pct.
 Income from ongoing regulated operations 1.37 1.18 16.1
 Entergy Enterprises (0.03) (0.02) 50.0
 Income from ongoing consolidated opers. 1.34 1.16 15.5
 Unusual items:
 Unbilled revs. -- 6/30/93 to 9/30/93 change 0.01
 FAS 106 (0.01)
 Net income 1.34 1.16 15.5
 Year to Date September 1993 1992 Pct.
 Income from ongoing regulated operations 2.46 2.11 16.6
 Entergy Enterprises (0.08) (0.06) (35.3)
 Income from ongoing consolidated opers. 2.38 2.05 16.1
 Unusual items:
 Unbilled rev. -- cum. effect at 1/1/93 0.54
 Unbilled rev. -- 1/1/93 to 9/30/93 change 0.14
 total unbilled revenue 0.68
 FAS 106 (0.03)
 FAS 109 (0.08)
 Missouri sale 0.11
 Net income 2.95 2.16 36.6
 12 months ended September 1993 1992 Pct.
 Income from ongoing regulated operations 2.81 2.48 13.3
 Entergy Enterprises (0.12) (0.09) (24.6)
 Income from ongoing consolidated opers. 2.70 2.39 13.0
 Unusual items:
 Unbilled rev. -- cum. effect at 1/1/93 0.54
 Unbilled rev. -- 1/1/93 to 9/30/93 change 0.14
 total unbilled revenue 0.68
 FAS 106 (0.03)
 FAS 109 (0.08)
 NOPSI settlement ('91) 0.27
 Missouri sale 0.11
 Net income 3.27 2.77 18.1
 Electric Energy Sales & Customers
 3 mos. ended September 1993 1992 Pct.
 (millions of kwh)
 Electric Energy Sales:
 Residential 6,916 6,043 14.4
 Commercial 4,220 3,870 9.0
 Industrial 6,592 6,044 9.1
 Governmental 540 511 5.7
 Total to ultimate customers 18,268 16,468 10.9
 Wholesale sales 2,296 2,570 (10.7)
 Total sales 20,564 19,038 8.0
 Year to date September 1993 1992 Pct.
 (millions of kwh)
 Electric Energy Sales:
 Residential 14,788 13,738 7.6
 Commercial 10,173 9,803 3.8
 Industrial 18,479 17,480 5.7
 Governmental 1,414 1,390 1.7
 Total to ultimate customers 44,854 42,411 5.8
 Wholesale sales 6,416 6,282 2.1
 Total sales 51,270 48,693 5.3
 12 mos. ended September 1993 1992 Pct.
 (millions of kwh)
 Electric Energy Sales:
 Residential 18,598 17,663 5.3
 Commercial 13,299 12,889 3.2
 Industrial 24,609 23,466 4.9
 Governmental 1,863 1,849 0.8
 Total to ultimate customers 58,369 55,867 4.5
 Wholesale sales 8,112 8,029 1.0
 Total sales 66,481 63,896 4.0
 September 1993 1992 Pct.
 Electric Energy Sales (end of period):
 Residential 1,515,558 1,503,223 0.8
 Commercial 188,692 186,117 1.4
 Industrial 35,936 34,044 5.6
 Governmental 9,384 9,173 2.3
 Total to ultimate customers 1,749,570 1,732,557 1.0
 Wholesale sales 22 22 0.0
 Total sales 1,749,592 1,732,579 1.0
 -0- 10/28/93
 /CONTACT: Media: Joe Holwager, 504-569-4235, or Investors: Stuart Ball, 504-569-4817, both of Entergy/
 (ETR)


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

BR-BN -- AT019 -- 8062 10/28/93 15:13 EDT
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