Entergy Provides Preliminary Fourth Quarter Earnings Guidance
NEW ORLEANS, Jan. 23, 2013
NEW ORLEANS, Jan. 23, 2013 /PRNewswire/ -- Entergy Corporation (NYSE: ETR)
today indicated that it expects fourth quarter 2012 as-reported earnings of
approximately $1.65 per share and operational earnings of approximately $1.71
per share. Results for fourth quarter 2011 were $0.87 per share on an
as-reported basis and $0.94 per share on an operational basis. Entergy also
affirmed previously issued operational earnings guidance for 2013.
As-reported results are prepared in accordance with generally accepted
accounting principles (GAAP) and are comprised of operational earnings
(described below) and special items. The special items in the fourth quarter
of 2011 and 2012 were due to expenses arising out of the proposed spin-off and
merger of Entergy's electric transmission business with ITC Holdings Corp.
The increase in fourth quarter 2012 earnings was driven by higher results at
Utility and Parent & Other, which was partially offset by lower earnings at
Entergy Wholesale Commodities. As indicated below, income tax is cited as a
quarter-over-quarter variance explanation in each of the disclosure segments.
On an overall company basis, the most significant item quarter-over-quarter
was a settlement with the Internal Revenue Service completed at the end of
2012. In conjunction with the terms of the IRS settlement of the 2004 – 2005
audit, a net earnings benefit of approximately $155 million was recorded in
the fourth quarter of 2012.
Results in both the current and prior year periods reflected adjustments
within the EWC and Parent & Other segments to improve the alignment of certain
intercompany items and income tax activity. These adjustments had no effect on
The increase in Utility fourth quarter 2012 operational earnings reflected
lower income tax expense, including the effect of the IRS settlement noted
above. Higher net revenue also contributed to the Utility earnings
improvement, driven by volume and price. Both periods had roughly similar
negative weather effects. On a weather-adjusted basis, retail sales were
higher, driven by growth in the residential and commercial segments. Partially
offsetting these items was an increase in depreciation expense.
Entergy Wholesale Commodities
The quarter-over-quarter decrease in earnings at Entergy Wholesale Commodities
was due to lower net revenue and increases in income tax and decommissioning
expenses. EWC net revenue declined due to lower pricing for the nuclear fleet.
Higher decommissioning expense was incurred this quarter versus the prior year
due to the benefit from an adjustment to the decommissioning liability
recorded in the fourth quarter of 2011 (associated with an updated
Parent & Other
At Parent & Other, operational results improved during the quarter due to a
decrease in income tax expense on Parent & Other activities that was partially
offset by higher interest expense.
Entergy affirmed its previously issued 2013 operational earnings guidance to
be in the range of $4.60 to $5.40 per share. Entergy noted it currently
expects to be in the lower half of the operational guidance range due to
updated pension and post-retirement cost estimates, which included an
approximate 75 basis point decrease in the discount rate assumption.
As-reported earnings guidance for 2013 does not reflect potential future
expenses for the proposed spin-merge of the transmission business with ITC.
The as-reported guidance range will be updated throughout the year as these
transaction-related expenses are incurred.
Entergy will report fourth quarter earnings results before the market opens on
Friday, Feb. 8, 2013, and host a teleconference at 10 a.m. CT that day to
discuss the earnings announcement. The teleconference may be accessed by
dialing (719) 457-2080, confirmation code 6847131, no more than 15 minutes
prior to the start of the call. The call and presentation slides can also be
accessed via Entergy's website at www.entergy.com. A replay of the
teleconference will be available for seven days thereafter by dialing (719)
457-0820, confirmation code 6847131.
Entergy Corporation, which celebrates its 100th birthday this year, is an
integrated energy company engaged primarily in electric power production and
retail distribution operations. Entergy owns and operates power plants with
approximately 30,000 megawatts of electric generating capacity, including more
than 10,000 megawatts of nuclear power, making it one of the nation's leading
nuclear generators. Entergy delivers electricity to 2.8 million utility
customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual
revenues of more than $11 billion and approximately 15,000 employees.
Additional investor information can be accessed online at
In this news release, and from time to time, Entergy makes certain
"forward-looking statements" within the meaning of the Private Securities
Litigation Reform Act of 1995. Except to the extent required by the federal
securities laws, Entergy undertakes no obligation to publicly update or revise
any forward-looking statements, whether as a result of new information, future
events, or otherwise.
Forward-looking statements involve a number of risks and uncertainties. There
are factors that could cause actual results to differ materially from those
expressed or implied in the forward-looking statements, including (a) those
factors discussed in: (i) Entergy's Form 10-K for the year ended December 31,
2011, (ii) Entergy's Form 10-Q for the quarters ended March 31, 2012, June
30, 2012 and September 30, 2012 and (iii) Entergy's other reports and filings
made under the Securities Exchange Act of 1934; (b) uncertainties associated
with rate proceedings, formula rate plans and other cost recovery mechanisms;
(c) uncertainties associated with efforts to remediate the effects of major
storms and recover related restoration costs; (d) nuclear plant relicensing,
operating and regulatory risks, including any changes resulting from the
nuclear crisis in Japan following its catastrophic earthquake and tsunami; (e)
legislative and regulatory actions and risks and uncertainties associated with
claims or litigation by or against Entergy and its subsidiaries; (f)
conditions in commodity and capital markets during the periods covered by the
forward-looking statements, in addition to other factors described elsewhere
in this release and subsequent securities filings and (g) risks inherent in
the proposed spin-off and subsequent merger of Entergy's electric transmission
business with a subsidiary of ITC Holdings Corp. Entergy cannot provide any
assurances that the spin-off and merger transaction will be completed and
cannot give any assurance as to the terms on which such transaction will be
consummated. The spin-off and merger transaction is subject to certain
conditions precedent, including regulatory approvals and approval by ITC
Holdings Corp. shareholders.
SOURCE Entergy Corporation
Contact: Michael Burns, (Media), +1-504-576-4238, firstname.lastname@example.org, or Paula
Waters, (Investor Relations), +1-504-576-4380, email@example.com
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