Entergy Provides Preliminary First Quarter Earnings Guidance
NEW ORLEANS, April 18, 2013
NEW ORLEANS, April 18, 2013 /PRNewswire/ -- Entergy Corporation (NYSE: ETR)
today indicated that it expects first quarter 2013 as-reported earnings of
approximately $0.89 per share and operational earnings of approximately $0.93
per share. Results for first quarter 2012 were a loss of $0.86 per share on an
as-reported basis and earnings of $0.44 per share on an operational basis.
Entergy also affirmed previously issued operational earnings guidance for
As-reported results are prepared in accordance with generally accepted
accounting principles (GAAP) and are comprised of operational earnings
(described below) and special items. Special items were recorded for:
oan impairment in connection with the Vermont Yankee nuclear plant in first
quarter 2012 and
oexpenses associated with the proposed spin-off and merger of Entergy's
electric transmission business with ITC Holdings Corp. in the first
quarters of 2012 and 2013.
The increase in first quarter 2013 earnings was driven by higher results at
Utility and Entergy Wholesale Commodities, which was partially offset by lower
results at Parent and Other.
The increase in Utility first quarter 2013 operational earnings was driven by
higher net revenue and lower income tax expense. The improvement in Utility
net revenue reflected pricing adjustments due primarily to nuclear and
combined cycle natural gas-fired generation investments in 2012. These
resources provide clean and efficient generation for the benefit of customers.
Both periods had negative weather effects. However, weather in first quarter
2013 was not as mild as the comparable year period, resulting in an increase
in as-reported retail volume, which was also reflected in the higher net
The lower income tax expense was driven by a prior period item. First quarter
2012 income tax expense included a non-cash adjustment to write off a
regulatory asset for income taxes to appropriately align the financial
accounting treatment with the regulatory treatment of income taxes for certain
Partially offsetting these items were increases in non-fuel operation and
maintenance and depreciation expenses.
Entergy Wholesale Commodities
The quarter-over-quarter increase in earnings at Entergy Wholesale Commodities
was due to an increase in net revenue driven by higher nuclear energy and
capacity pricing. Partially offsetting was an increase in nuclear refueling
and unplanned outage days. Refueling days at the Indian Point 3 and Vermont
Yankee nuclear plants totaled 50 days in the current quarter, compared to 27
refueling days at Indian Point 2 in first quarter 2012.
Parent & Other
Parent & Other's operational results declined during the quarter due to
several individually insignificant items.
Entergy affirmed its previously issued 2013 operational earnings guidance to
be in the range of $4.60 to $5.40 per share. The revised 2013 as-reported
guidance of $4.56 to $5.36 per share reflects the first quarter special item
for expenses associated with the proposed spin-off and merger of the
transmission business with ITC noted above. The as-reported guidance range
will be updated throughout the year as these transaction-related expenses are
Entergy will report first quarter earnings results before the market opens on
Thursday, April 25, 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 9708842, 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 9708842.
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 $10 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 Dec. 31, 2012
and (ii) 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.
SOURCE Entergy Corporation
Contact: Michael Burns (Media), (504) 576-4238, email@example.com, or Paula
Waters (Investor Relations), (504) 576-4380, firstname.lastname@example.org
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