ENTERGY CORPORATION 
NEW ORLEANS, Aug. 4, 2015 /PRNewswire/ -- Entergy Corporation (NYSE: ETR) reported second quarter 2015 earnings per share of 83 cents on an as-reported basis and an operational basis, compared to second quarter 2014 as-reported EPS of $1.05 and operational EPS of $1.11.
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"Once again, financial results in the second quarter were in line with our expectations, and Entergy remains on track to meet its full year guidance," said Entergy Chairman and CEO Leo Denault. "The Utility continues to implement its program to replace aging infrastructure, strengthen reliability and enhance the environmental profile of our generation fleet. The industrial expansion across our service territory also continues to advance. And Entergy Wholesale Commodities, despite market volatility, maintained solid operational and commercial performance."
Business highlights included the following:
-- The U.S. Department of Commerce named the New Orleans-to-Lake Charles
chemical corridor to a program designed to accelerate the resurgence of
manufacturing in America through federal incentives and grants.
-- The City Council of New Orleans approved storm securitization financing,
which was completed in July.
-- Entergy Gulf States Louisiana, L.L.C. and Entergy Louisiana, LLC reached
a settlement with all parties in the business combination of the two
companies.
-- The St. Charles Energy Center was selected in response to a request for
proposals for new long-term capacity.
-- The Nuclear Energy Institute issued a report finding that the Indian
Point Energy Center contributes an estimated $1.6 billion annually to
New York state's economy and $2.5 billion to the nation as a whole.
-- Entergy Corporation issued a $650 million, seven-year note at a 4
percent coupon.
Table of Contents Page
----------------- ----
News Release 1
Appendices 6
A: Consolidated Results and Special
Items 7
B: Variance Analysis 9
C: Utility Performance Measures 11
D: EWC Performance Measures 12
E: Financial Performance Measures 13
F: Definitions, Abbreviations and
Acronyms 14
G: GAAP to Non-GAAP Reconciliations 18
Consolidated Earnings - Reconciliation of GAAP to Non-GAAP Measures
Second Quarter and Year-to-Date 2015 vs. 2014
---------------------------------------------
Second Quarter Year-to-Date
-------------- ------------
2015 2014 Change 2015 2014 Change
---- ---- ------ ---- ---- ------
As-Reported
Earnings ($ in
millions) 148.8 189.4 (40.6) 446.9 590.6 (143.7)
Less Special Items:
HCM implementation
expenses - (4.1) 4.1 - (7.1) 7.1
Decision to close VY (1.1) (6.9) 5.8 (5.7) (12.7) 7.0
---- ---- --- ---- ----- ---
Total Special Items (1.1) (11.0) 9.9 (5.7) (19.8) 14.1
Operational Earnings 149.9 200.3 (50.4) 452.6 610.4 (157.8)
Weather Impact (2.9) (9.3) 6.4 11.4 23.2 (11.8)
As-Reported
Earnings (per share
in $) 0.83 1.05 (0.22) 2.48 3.29 (0.81)
Less Special Items:
HCM implementation
expenses - (0.02) 0.02 - (0.04) 0.04
Decision to close VY - (0.04) 0.04 (0.03) (0.07) 0.04
--- ----- ---- ----- ----- ----
Total Special Items - (0.06) 0.06 (0.03) (0.11) 0.08
--- ----- ---- ----- ----- ----
Operational Earnings 0.83 1.11 (0.28) 2.51 3.40 (0.89)
Weather Impact (0.02) (0.05) 0.03 0.06 0.13 (0.07)
-------------- ----- ----- ---- ---- ---- -----
Totals may not foot due to rounding
Business Unit Results
In addition to the summary business unit discussions below and results provided in Appendix A, a comprehensive analysis of quarterly and year-to-date variances is provided in Appendix B to this release. Appendix A also provides information on operating cash flow by business.
Utility Results
In second quarter 2015, Utility earnings were $1.11 per share on an as-reported and an operational basis. In comparison, second quarter 2014 as-reported EPS was $1.15 and operational EPS was $1.17. Operational results reflected sales growth, the effects of productive investments and higher operating expenses.
Billed retail sales volume increased quarter-to-quarter on the effects of weather and residential sales growth. On a weather-adjusted basis, billed volume declined (0.5) percent; the components of the sales growth were:
-- Weather-adjusted residential sales growth of 0.7 percent,
-- Commercial sales decline of (0.2) percent on a weather-adjusted basis,
-- Weather-adjusted governmental sales increase of 1.8 percent and
-- Industrial sales decline of (1.5) percent.
During second quarter 2015, new industrial and expansion projects continued to ramp-up and come into service. However, billed industrial volume declined due largely to extended seasonal outages for existing large refinery customers, as well as existing chlor-alkali customer outages. On a revenue basis, sales growth, including weather-adjusted residential sales resulted in a quarter-over-quarter positive revenue contribution.
Higher Utility net revenue also reflected rate adjustments for the Ninemile Point Unit 6 plant that went in service at the end of 2014 and the Entergy Mississippi, Inc. rate case. The earnings effect from these changes was largely offset by changes in other line items (e.g., non-fuel operation and maintenance and depreciation expenses). Higher nuclear generation expenses in part due to increased regulatory compliance at Arkansas Nuclear One, higher vegetation maintenance spending and increased scope of work for fossil generation were also reflected in the higher non-fuel O&M.
For additional details on Utility's performance for the quarter, see Appendix C.
Entergy Wholesale Commodities Results
EWC operational adjusted earnings before interest, taxes, depreciation and amortization were $62 million in second quarter 2015, compared to $145 million in the same period a year ago. Principal reasons for the EBITDA decrease include lower wholesale power prices and decreased nuclear generation as well as the closure of the Vermont Yankee Nuclear Power Station last year.
EWC Operational Adjusted EBITDA - Reconciliation of GAAP to Non-GAAP Measures
Second Quarter and Year-to-Date 2015 vs. 2014
---------------------------------------------
($ in millions) Second Quarter Year-to-Date
-------------- ------------
2015 2014 Change 2015 2014 Change
---- ---- ------ ---- ---- ------
Net income (4) 26 (30) 120 269 (149)
Add back: interest
expense 6 3 3 12 8 4
Add back: income tax
expense (3) 20 (23) 67 138 (71)
Add back: depreciation
and amortization 64 71 (7) 126 141 (15)
Subtract: interest and
investment income 36 22 14 86 48 38
Add back: decommissioning
expense 33 35 (2) 68 69 (1)
--- --- --- --- --- ---
Adjusted EBITDA 60 133 (73) 307 577 (270)
Add back:
Special item for HCM
implementation (pre-
tax) - 1 (1) - 2 (2)
Special item for the
decision to close VY
(pre-tax) 2 11 (9) 9 21 (12)
--- --- --- --- --- ---
Operational adjusted
EBITDA 62 145 (83) 315 600 (285)
-------------------- --- --- --- --- --- ----
Totals may not foot due to rounding
Excluding the effects of VY, the change in EBITDA was driven largely by lower net revenue due primarily to lower nuclear energy prices. In addition, nuclear production was lower in the current period with more refueling outage days (34 days for Pilgrim Nuclear Power Station in the current period compared to zero in second quarter 2014).
EWC reported a loss of 2 cents per share on an as-reported basis and an operational basis for second quarter 2015, compared to second quarter 2014 as-reported earnings of 14 cents per share and operational earnings of 18 cents per share. Key drivers for the period-over-period decline in earnings are the lower wholesale prices and generation discussed previously.
For additional details on EWC's performance for the quarter, see Appendix D.
Parent & Other Results
Parent & Other reported a loss of 26 cents per share on an as-reported and an operational basis for second quarter 2015 compared to an as-reported and operational loss of 24 cents per share in second quarter 2014. No drivers were individually significant.
Earnings Guidance
Entergy affirmed its 2015 operational earnings guidance in the range of $5.10 to $5.90 per share. See webcast presentation slides for additional details.
Earnings Teleconference
A teleconference will be held at 10 a.m. CDT on Tuesday, Aug. 4, 2015, to discuss Entergy's second quarter 2015 earnings announcement and the company's financial performance. The teleconference may be accessed by visiting Entergy's website at www.entergy.com or by dialing (855) 893-9849, conference ID 44024303, no more than 15 minutes prior to the start of the call. The presentation slides are also posted to Entergy's website concurrent with this release, which was issued before market open on the day of the call. A replay of the teleconference will be available on Entergy's website at www.entergy.com and by telephone. The telephone replay will be available through Aug. 11, 2015, by dialing (855) 859-2056, conference ID 44024303. This release and presentation slides are also available on the Entergy Investor Relations mobile web app at iretr.com.
Entergy Corporation 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 nearly 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 $12 billion and approximately 13,000 employees.
Entergy Corporation's common stock is listed on the New York and Chicago exchanges under the symbol "ETR."
Additional information regarding Entergy's quarterly results of operations, regulatory proceedings and other matters is available in Entergy's earnings release package, a copy of which has been filed with the U.S. Securities and Exchange Commission, and the quarterly presentation slides. The earnings package contains appendices to this release and financial statements. Both the earnings release package and quarterly presentation slides are available on Entergy's Investor Relations website at www.entergy.com/investor_relations and on Entergy's Investor Relations mobile web app at iretr.com.
Cautionary Note Regarding Forward-Looking Statements
In this news release, and from time to time, Entergy Corporation makes certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, among other things, Entergy's 2015 operational earnings guidance, its current financial and operational outlook, and other statements of Entergy's plans, beliefs or expectations included in this news release. 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 are subject to a number of risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied in such forward-looking statements, including (a) those factors discussed elsewhere in this news release and in Entergy's most recent Annual Report on Form 10-K, any subsequent Quarterly Reports on Form 10-Q and 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) changes in decommissioning trust fund values or earnings or in the timing or cost of decommissioning VY or any of Entergy's other nuclear plant sites; (f) legislative and regulatory actions and risks and uncertainties associated with claims or litigation by or against Entergy and its subsidiaries; (g) risks and uncertainties associated with strategic transactions that Entergy or its subsidiaries may undertake, including the proposed acquisition of the Union Power Station near El Dorado, Arkansas and the proposed combination of Entergy Louisiana and Entergy Gulf States Louisiana, including the risk that any such transaction may not be completed as and when expected and the risk that the anticipated benefits of the transaction may not be realized and (h) economic conditions and conditions in commodity and capital markets during the periods covered by the forward-looking statements.
For definitions of certain operational performance measures, as well as GAAP and non-GAAP financial measures and abbreviations and acronyms used in the quarterly materials, see Appendix F.
Second Quarter 2015 Earnings Release Package
Appendices
Seven appendices are presented in this section as follows:
-- Appendix A: Consolidated Results and Special Items
-- Appendix B: Variance Analysis
-- Appendix C: Utility Performance Measures
-- Appendix D: EWC Performance Measures
-- Appendix E: Financial Performance Measures
-- Appendix F: Definitions, Abbreviations and Acronyms
-- Appendix G: GAAP to Non-GAAP Reconciliations
Also included in this earnings release package are:
-- Financial Statements
Accompanying the earnings package is a webcast slide presentation.
A: Consolidated Results and Special Items
Appendix A-1 provides a comparative summary of consolidated EPS for second quarter and year-to-date 2015 versus 2014, including a reconciliation of GAAP as-reported earnings to non-GAAP operational earnings.
Appendix A-1: Consolidated Earnings - Reconciliation of GAAP to Non-GAAP Measures
Second Quarter and Year-to-Date 2015 vs. 2014
(Per share in $)
Second Quarter Year-to-Date
-------------- ------------
2015 2014 Change 2015 2014 Change
---- ---- ------ ---- ---- ------
As-Reported
Utility 1.11 1.15 (0.04) 2.35 2.28 0.07
EWC (0.02) 0.14 (0.16) 0.66 1.49 (0.83)
Parent & Other (0.26) (0.24) (0.02) (0.53) (0.48) (0.05)
----- ----- ----- ----- ----- -----
Consolidated As-
Reported
Earnings 0.83 1.05 (0.22) 2.48 3.29 (0.81)
Less Special Items
Utility - (0.02) 0.02 - (0.03) 0.03
EWC - (0.04) 0.04 (0.03) (0.08) 0.05
Parent & Other - - - - - -
--- --- --- --- --- ---
Consolidated
Special Items - (0.06) 0.06 (0.03) (0.11) 0.08
Operational
Utility 1.11 1.17 (0.06) 2.35 2.31 0.04
EWC (0.02) 0.18 (0.20) 0.69 1.57 (0.88)
Parent & Other (0.26) (0.24) (0.02) (0.53) (0.48) (0.05)
----- ----- ----- ----- ----- -----
Consolidated
Operational
Earnings 0.83 1.11 (0.28) 2.51 3.40 (0.89)
Weather Impact (0.02) (0.05) 0.03 0.06 0.13 (0.07)
Detailed earnings variance analyses are included in Appendix B-1 and Appendix B-2.
Appendix A-2 provides the components of OCF contributed by each business with current quarter and year-to-date comparisons.
Appendix A-2: Consolidated Operating Cash Flow
Second Quarter and Year-to-Date 2015 vs. 2014
---------------------------------------------
($ in millions)
Second Quarter Year-to-Date
-------------- ------------
2015 2014 Change 2015 2014 Change
---- ---- ------ ---- ---- ------
Utility 762 599 163 1,216 1,004 212
EWC 8 225 (217) 216 649 (433)
Parent
&
Other (43) (63) 20 (94) (124) 30
--- --- --- --- ---- ---
Total
Operating
Cash
Flow 727 761 (34) 1,338 1,529 (190)
--------- --- --- --- ----- ----- ----
Totals may not foot due to rounding
The primary driver of the $34 million quarter-over-quarter decrease was
-- Lower EWC net revenue
Partially offsetting was:
-- Higher Utility net revenue and
-- Lower Utility nuclear refueling outage spending.
Appendix A-3 and Appendix A-4 list special items by business. Amounts are shown on both an EPS basis and a net income basis. Special items are those events that are not routine. Special items are included in as-reported EPS consistent with GAAP, but are excluded from operational EPS. As a result, operational EPS is considered a non-GAAP measure.
Appendix A-3: Special Items by Driver (shown as positive/(negative) impact on EPS)
Second Quarter and Year-to-Date 2015 vs. 2014
---------------------------------------------
(After-tax, per share in $)
Second Quarter Year-to-Date
-------------- ------------
2015 2014 Change 2015 2014 Change
---- ---- ------ ---- ---- ------
Utility
HCM implementation
expenses - (0.02) 0.02 - (0.03) 0.03
--- ----- ---- --- ----- ----
Total Utility - (0.02) 0.02 - (0.03) 0.03
EWC
Decision to close VY - (0.04) 0.04 (0.03) (0.07) 0.04
HCM implementation
expenses - - - - (0.01) 0.01
--- --- --- --- ----- ----
Total EWC - (0.04) 0.04 (0.03) (0.08) 0.05
Total Special Items - (0.06) 0.06 (0.03) (0.11) 0.08
Appendix A-4: Special Items by Income Statement Line Item (shown as positive/(negative) impact on earnings)
Second Quarter and Year-to-Date 2015 vs. 2014
---------------------------------------------
(Pre-tax except for Income taxes - other, $ in millions)
Second Quarter Year-to-Date
-------------- ------------
2015 2014 Change 2015 2014 Change
---- ---- ------ ---- ---- ------
Utility
Non-fuel O&M - (5.6) 5.6 - (9.5) 9.5
Taxes other than
income taxes - (0.3) 0.3 - (0.5) 0.5
Income taxes -
other - 2.4 (2.4) - 4.2 (4.2)
--- --- ---- --- --- ----
Total Utility - (3.5) 3.5 - (5.8) 5.8
EWC
Non-fuel O&M (1.6) (9.6) 8.0 (9.1) (17.5) 8.4
Taxes other than
income taxes - (0.8) 0.8 0.3 (1.4) 1.7
Asset write-off
and impairments - (1.7) 1.7 - (3.9) 3.9
Income taxes -
other 0.6 4.6 (4.0) 3.0 8.8 (5.8)
--- --- ---- --- --- ----
Total EWC (1.1) (7.5) 6.4 (5.7) (14.0) 8.3
Total Special
Items (1.1) (11.0) 9.9 (5.7) (19.8) 14.1
------------- ---- ----- --- ---- ----- ----
Totals may not foot due to rounding
B: Variance Analysis
Appendix B-1 and Appendix B-2 provide details of current quarter and year-to-date 2015 versus 2014 as-reported and operational earnings variance analysis for Utility, EWC, Parent & Other and Consolidated.
Appendix B-1: As-Reported and Operational EPS Variance Analysis
Second Quarter 2015 vs. 2014
----------------------------
(After-tax, per share in $, sorted in consolidated operational column, most to least favorable)
Utility EWC Parent & Other Consolidated
As- Opera- As- Opera- As- Opera- As- Opera-
Reported tional Reported tional Reported tional Reported tional
-------- ------ -------- ------ -------- ------ -------- ------
2014 earnings 1.15 1.17 0.14 0.18 (0.24) (0.24) 1.05 1.11
Other income (deductions) - other 0.02 0.02 0.04 0.04 (0.02) (0.02) 0.04 0.04
Income taxes - other (0.01) (0.01) 0.03 0.03 - - 0.02 0.02
Asset write-off and impairments - - 0.01 - - - 0.01 -
Interest expense and other charges (0.02) (0.02) (0.01) (0.01) 0.02 0.02 (0.01) (0.01)
Decommissioning expense (0.01) (0.01) - - - - (0.01) (0.01)
Taxes other than income taxes (0.01) (0.01) (0.01) (0.01) - - (0.02) (0.02)
Depreciation/amortization expense (0.05) (0.05) (a) 0.02 0.02 - - (0.03) (0.03)
Non-fuel O&M (0.20) (0.22) (b) 0.17 0.14 (c) (0.01) (0.01) (0.04) (0.09)
Net revenue 0.24 0.24 (d) (0.41) (0.41) (e) (0.01) (0.01) (0.18) (0.18)
2015 earnings 1.11 1.11 (0.02) (0.02) (0.26) (0.26) 0.83 0.83
---- ---- ----- ----- ----- ----- ---- ----
Appendix B-2: As-Reported and Operational EPS Variance Analysis
Year-to-Date 2015 vs. 2014
--------------------------
(After-tax, per share in $, sorted in consolidated operational column, most to least favorable)
Utility EWC Parent & Other Consolidated
As- Opera- As- Opera- As- Opera As- Opera
Reported tional Reported tional Reported -tional Reported -tional
-------- ------ -------- ------ -------- ------- -------- -------
2014 earnings 2.28 2.31 1.49 1.57 (0.48) (0.48) 3.29 3.40
Other income (deductions) - other 0.08 0.08 (f) 0.12 0.12 (g) (0.05) (0.05) 0.15 0.15
Income taxes - other 0.11 0.11 (h) (0.07) (0.07) (i) (0.01) (0.01) 0.03 0.03
Asset write-off and impairments - - 0.01 - - - 0.01 -
Share effect (0.01) (0.01) - - - - (0.01) (0.01)
Decommissioning expense (0.02) (0.02) - - - - (0.02) (0.02)
Taxes other than income taxes (0.04) (0.04) 0.02 0.01 - - (0.02) (0.03)
Interest expense and other charges (0.04) (0.04) (0.01) (0.01) 0.02 0.02 (0.03) (0.03)
Depreciation/amortization expense (0.10) (0.10) (a) 0.05 0.05 (j) 0.01 0.01 (0.04) (0.04)
Non-fuel O&M (0.40) (0.43) (b) 0.22 0.19 (c) (0.01) (0.01) (0.19) (0.25)
Net revenue 0.49 0.49 (d) (1.17) (1.17) (e) (0.01) (0.01) (0.69) (0.69)
2015 earnings 2.35 2.35 0.66 0.69 (0.53) (0.53) 2.48 2.51
---- ---- ---- ---- ----- ----- ---- ----
(a) The current quarter and year-to-date
decreases were due to additions to
plant in service, including the
Ninemile 6 project which was placed in
service in December 2014. Higher
depreciation rates at EMI (offset in
net revenue) also contributed.
(b) The current quarter and year-to-date
decreases reflected higher nuclear
generation expenses due partly to
spending for regulatory compliance
resulting from the NRC's decision to
move ANO into Column 4 of the reactor
oversight process action matrix. Also
higher were fossil generation costs
from an overall higher scope of work
and distribution expenses for
vegetation maintenance. Other non-fuel
O&M changes with offsets in net revenue
in the current and year-to date
periods included transmission costs
allocated by MISO and energy efficiency
program costs.
(c) The increases quarter-over-quarter and
year-to-date were attributable to the
closure of VY at the end of 2014.
Excluding VY, the year-over-year non-
fuel O&M was higher due to higher
refueling outage amortization and fewer
refueling outage days resulting in the
lower deferral of costs for future
amortization.
(d) The current quarter and year-to-date
increases were due to both price and
volume factors. The price variance
included the Louisiana FRP rate
adjustments for placing Ninemile 6 in
rates and the EMI rate case. In the
quarter, the net revenue volume
variance was positive due to sales
growth, including weather-adjusted
residential sales growth, and increased
sales to new and expansion industrial
projects. On a year-to-date basis,
the year-over-year effect of weather
was negative while weather-adjusted
sales volume increased across all
segments.
(e) The current quarter and year-to-date
decreases were due largely to the VY
closure and lower energy pricing for
the operating nuclear fleet. In the
current quarter, nuclear generation was
also lower due to more outage days. In
addition, for the year-to-date
period, the net effect of mark-to-
market activity was negative in the
current period compared to a positive
contribution in the comparable period a
year ago.
(f) The year-to-date increase was due
primarily to higher earnings on
investments in affiliate preferred
membership interests (offset in Parent
& Other) and an increase in realized
gains on nuclear decommissioning trust
funds (offset in net revenue).
(g) The year-to-date increase was due
primarily to higher realized gains on
decommissioning trusts, including the
rebalancing of VY's decommissioning
trust portfolio in the current year.
(h) The year-to-date increase was
attributable to a first quarter 2015
adjustment of approximately $24 million
involving the reversal of a portion of
the provision for uncertain tax
provisions related to interest accrual.
(i) The year-to-date decrease was due
primarily to a first quarter 2014
adjustment of approximately $21.5
million related to a change in New York
law which resulted in a reduction of
deferred income taxes. Partially
offsetting this decrease was a
favorable second quarter 2015
adjustment of approximately $7.7
million related to a settlement of a
state tax audit.
(j) The year-to-date increase was mainly
attributable to the absence of VY
depreciation.
See webcast appendix for more details on the effects
of the VY closure on EWC line item variances.
Utility As-Reported Net Revenue
Variance Analysis
2015 vs.
2014 ($ EPS)
-------------------------------------------------------------
Second Year-to-
Quarter Date
------- ----
Weather 0.03 (0.07)
Sales growth/pricing 0.22 0.59
Other (0.01) (0.03)
----- -----
Total 0.24 0.49
----- ---- ----
C: Utility Performance Measures
Appendix C-1 provides a comparative summary of Utility operational performance measures.
Appendix C-1: Utility Operational Performance Measures
Second Quarter and Year-to-Date 2015 vs. 2014
---------------------------------------------
Second Quarter Year-to-Date
-------------- ------------
2015 2014% % Weather 2015 2014% % Weather
Change Adjusted (k) Change Adjusted
(k)
--- ------ --- ------ ---------
GWh billed
Residential 7,364 7,266 1.3% 0.7% 16,796 17,293 (2.9%) 0.7%
Commercial 6,904 6,762 2.1% (0.2%) 13,625 13,563 0.5% 0.2%
Governmental 602 587 2.6% 1.8% 1,194 1,170 2.1% 1.8%
Industrial 10,737 10,902 (1.5%) (1.5%) 21,144 21,015 0.6% 0.6%
Total Retail Sales 25,607 25,517 0.4% (0.5%) 52,759 53,041 (0.5%) 0.6%
Wholesale 3,138 2,048 53.2% 4,949 4,282 15.6%
Total Sales 28,745 27,565 4.3% 57,708 57,323 0.7%
Number of electric retail customers
Residential 2,430,698 2,405,182 1.1%
Commercial 348,337 344,894 1.0%
Governmental 17,487 17,281 1.2%
Industrial 45,892 45,071 1.8%
Total Retail Customers 2,842,414 2,812,428 1.1%
Net Revenue ($
millions) 1,488 1,418 4.9% 2,898 2,755 5.2%
As-reported non-fuel
O&M per MWh $22.35 $21.21 5.4% $21.26 $19.38 9.7%
Operational non-fuel
O&M per MWh $22.35 $21.00 6.4% $21.26 $19.21 10.7%
(k) The effects of weather are
estimated using monthly
heating degree days and
cooling degree days from
certain locations within
each jurisdiction and
comparing to "normal"
weather based on 20 year
historical data. The models
used to estimate weather are
updated periodically and
subject to change.
See webcast presentation appendix slides
for information on select regulatory
cases.
Appendix
D: EWC Performance Measures
Appendix D-1 provides a comparative summary of EWC operational performance measures.
Appendix D-1: EWC Operational Performance Measures
Second Quarter 2015 vs. 2014
----------------------------
Second Quarter Year-to-Date
-------------- ------------
2015 2014 % Change 2015 2014 % Change
---- ---- -------- ---- ---- --------
Owned capacity
(MW) (l) 5,463 6,068 (10.0%) 5,463 6,068 (10.0%)
GWh billed 9,578 11,533 (17.0%) 19,170 21,547 (11.0%)
As-reported
average total
revenue per
MWh $45.87 $50.11 (8.5%) $56.44 $69.15 (18.4%)
Adjusted
average total
revenue per
MWh (m) $45.47 $49.75 (8.6%) $56.04 $68.77 (18.5%)
Net revenue ($
millions) 350 471 (25.7%) 877 1,219 (28.1%)
As-reported
non-fuel O&M
per MWh $25.97 $25.83 0.5% $25.93 $26.04 (0.4%)
Operational
non-fuel O&M
per MWh (n) $25.80 $24.99 3.2% $25.46 $25.23 (0.9%)
EWC Nuclear Fleet
-----------------
Capacity
factor 89% 95% (6.3%) 89% 89% -
GWh billed 8,555 10,588 (19.2%) 17,173 19,667 (12.7%)
As-reported
average total
revenue per
MWh $45.84 $50.18 (8.7%) $55.85 $68.25 (18.2%)
Adjusted
average total
revenue per
MWh (o) $45.40 $49.79 (8.8%) $55.41 $67.83 (18.3%)
Production
cost per MWh $26.21 $25.88 1.3% $25.91 $26.11 (0.8%)
Net revenue ($
millions) 336 459 (26.8%) 847 1,190 (28.8%)
Refueling outage days
Indian Point 2 - - - 24
Indian Point 3 - - 23 -
Palisades - - - 56
Pilgrim 34 - 34 -
------- --- --- --- ---
(l) Second quarter and year-to-
date 2014 include capacity for
VY, which was retired in
December 2014 (605 MW).
(m) Excluding VY, $50.49/MWh and
$67.04/MWh in second quarter
and year-to-date 2014
periods.
(n) Excluding VY, $24.53/MWh and
$24.80/MWh in second quarter
and year-to-date 2014
periods.
(o) Excluding VY, $50.61/MWh and
$65.76/MWh in second quarter
and year-to-date 2014
periods.
See webcast presentation appendix slides for
EWC hedging and price disclosures.
E: Financial Performance Measures
Appendix E-1 provides comparative financial performance measures for the current quarter. Financial performance measures in this table include those calculated and presented in accordance with GAAP, as well as those that are considered non-GAAP measures.
As-reported measures are computed in accordance with GAAP as they include all components of net income, including special items. Operational measures are non-GAAP measures as they are calculated using operational net income, which excludes the impact of special items. A reconciliation of operational measures to as-reported measures is provided in Appendix G.
Appendix E-1: GAAP and Non-GAAP Financial Performance Measures
Second Quarter 2015 vs. 2014
----------------------------
For 12 months ending June
30 2015 2014 Change
---- ---- ------
GAAP Measures
ROIC - as-reported 5.0% 5.8% (0.8%)
ROE - as-reported 7.9% 10.1% (2.2%)
Book value per share $56.58 $56.04 $0.54
End of period shares
outstanding (millions) 179.5 179.6 (0.1)
Non-GAAP Measures
ROIC - operational 5.4% 6.8% (1.4%)
ROE - operational 8.8% 12.6% (3.8%)
As of June 30 ($ in
millions) 2015 2014
---- ----
GAAP Measures
Cash and cash equivalents 910 650 260
Revolver capacity 4,158 4,003 155
Commercial paper
outstanding 895 909 (14)
Total debt 13,858 13,692 166
Securitization debt 734 832 (98)
Debt to capital ratio 57.0% 56.9% 0.1%
Off-balance sheet liabilities:
Debt of joint ventures -
Entergy's share 80 85 (5)
Leases - Entergy's share 422 456 (34)
Power purchase agreements
accounted for as leases 224 224 -
--- --- ---
Total off-balance sheet
liabilities 726 765 (39)
Non-GAAP Measures
Debt to capital ratio,
excluding securitization
debt 55.6% 55.4% 0.2%
Gross liquidity 5,068 4,653 415
Net debt to net capital
ratio, excluding
securitization debt 53.9% 54.1% (0.2%)
Parent debt to total debt
ratio, excluding
securitization debt 20.3% 20.2% 0.1%
Debt to operational
adjusted EBITDA,
excluding securitization
debt 3.9 3.5 0.4
Operational FFO to debt
ratio, excluding
securitization debt 28.4% 28.9% (0.5%)
F: Definitions, Abbreviations and Acronyms
Appendix F-1 provides definitions of certain operational performance measures, as well as GAAP and non-GAAP financial measures which are referenced in the quarterly materials. Non-GAAP measures are included in these quarterly materials to provide metrics that remove the effect of financial events that are not routine from commonly used financial metrics.
Appendix F-1: Definitions
-------------------------
Utility Operational Performance Measures
----------------------------------------
GWh billed Total number of GWh billed to
all retail and wholesale
customers
Net revenue Operating revenue less fuel,
fuel related expenses and gas
purchased for resale, purchased
power and other regulatory
charges (credits) - net
Non-fuel O&M Operation and maintenance
expenses excluding fuel, fuel-
related expenses and gas
purchased for resale and
purchased power
Non-fuel O&M per MWh Non-fuel O&M per MWh of billed
sales
Number of retail customers Number of customers at end of
period
EWC Operational Performance Measures
------------------------------------
As-reported average total As-reported revenue per MWh
revenue per MWh billed, excluding revenue from
investments in wind generation
accounted for under the equity
method of accounting
Adjusted average total As-reported average total
revenue per MWh revenue per MWh, excluding
revenue from the amortization
of the Palisades below-market
PPA
Average revenue under Revenue on a per unit basis at
contract per kW per month which capacity is expected to
(applies to capacity be sold to third parties, given
contracts only) existing contract prices and/
or auction awards
Average revenue per MWh on Revenue on a per unit basis at
contracted volumes which generation output
reflected in contracts is
expected to be sold to third
parties (including offsetting
positions) at the minimum
contract prices and at forward
market prices at a point in
time, given existing contract
or option exercise prices based
on expected dispatch or
capacity, excluding the revenue
associated with the
amortization of the below-
market PPA for Palisades;
revenue will fluctuate due to
factors including market price
changes affecting revenue
received on puts, collars and
call options, positive or
negative basis differentials,
option premiums and market
prices at the time of option
expiration, costs to convert
firm LD to unit-contingent and
other risk management costs
Bundled capacity and energy A contract for the sale of
contracts installed capacity and related
energy, priced per MWh sold
Capacity contracts A contract for the sale of the
installed capacity product in
regional markets managed by
ISO-NE, the NYISO and MISO
Capacity factor Normalized percentage of the
period that the nuclear plants
generate power
Cost-based contracts Contracts priced in accordance
with cost-based rates, a
ratemaking concept used for the
design and development of rate
schedules to ensure that the
filed rate schedules recover
only the cost of providing the
service; these contracts are on
owned EWC resources located
within Entergy's utility
service territory and were
executed prior to EWC receiving
market-based authority under
MISO
Expected sold and market Total energy and capacity
total revenue per MWh revenue on a per unit basis at
which total planned generation
output and capacity is expected
to be sold given contract terms
and market prices at a point in
time, including estimates for
market price changes affecting
revenue received on puts,
collars and call options,
positive or negative basis
differentials, option premiums
and market prices at time of
option expiration, costs to
convert Firm LD to unit-
contingent and other risk
management costs, divided by
total planned MWh of
generation, excluding the
revenue associated with the
amortization of the Palisades
below-market PPA
Appendix F-1: Definitions
-------------------------
EWC Operational Performance Measures (continued)
-----------------------------------------------
Firm LD Transaction that requires receipt or
delivery of energy at a specified
delivery point (usually at a market
hub not associated with a specific
asset) or settles financially on
notional quantities; if a party
fails to deliver or receive energy,
defaulting party must compensate the
other party as specified in the
contract; a portion of which may be
capped through the use of risk
management products
GWh billed Total number of GWh billed to
customers, excluding investments in
wind generation accounted for under
the equity method of accounting and
financially-settled instruments
Net revenue Operating revenue less fuel, fuel
related expenses and purchased power
Non-fuel O&M Operation and maintenance expenses
excluding fuel, fuel-related
expenses and gas purchased for
resale, purchased power and
investments in wind generation
accounted for under the equity
method of accounting
Non-fuel O&M per MWh Non-fuel O&M per MWh billed
Offsetting positions Transactions for the purchase of
energy, generally to offset a Firm
LD transaction
Owned capacity (MW) Installed capacity owned and operated
by EWC, including investments in
wind generation accounted for under
the equity method of accounting; VY
(nuclear) was retired on Dec. 29,
2014 (605 MW)
Percent of capacity sold forward Percent of planned qualified capacity
sold to mitigate price uncertainty
under physical or financial
transactions
Percent of planned generation Percent of planned generation output
under contract sold or purchased forward under
contracts, forward physical
contracts, forward financial
contracts or options that mitigate
price uncertainty that may or may
not require regulatory approval or
approval of transmission rights, or
other conditions precedent;
positions that are no longer
classified as hedges are netted in
the planned generation under
contract
Planned net MW in operation Amount of installed capacity to
generate power and/or sell
capacity; non-nuclear also includes
purchases from affiliated and non-
affiliated counterparties under
long-term contracts and excludes
energy and capacity from EWC's wind
investment accounted for under the
equity method of accounting
Planned TWh of generation Amount of output expected to be
generated by EWC resources
considering plant operating
characteristics, outage schedules
and expected market conditions which
impact dispatch, assuming
uninterrupted normal plant operation
and timely renewal of plant
operating licenses; non-nuclear
also includes purchases from
affiliated and non-affiliated
counterparties under long-term
contracts and excludes energy and
capacity from EWC's wind investment
accounted for under the equity
method of accounting
Production cost per MWh Fuel and non-fuel O&M expenses
according to accounting standards
that directly relate to the
production of electricity per MWh
(based on net generation), excluding
special items
Refueling outage days Number of days lost for scheduled
refueling outage during the period
Unit-contingent Transaction under which power is
supplied from a specific generation
asset; if the asset is not
operating, seller is generally not
liable to buyer for any damages
Financial Measures - GAAP
-------------------------
Book value per share End of period
common equity
divided by end
of period shares
outstanding
Debt of joint ventures - Entergy's share
Entergy's share of debt issued
by business
joint ventures
at EWC
Debt to capital ratio Total debt
divided by total
capitalization
Leases - Entergy's share Operating leases
held by
subsidiaries
capitalized at
implicit
interest rate
Revolver capacity Amount of undrawn
capacity
remaining on
corporate and
subsidiary
revolvers,
including
Entergy Nuclear
Vermont Yankee
Appendix F-1: Definitions
-------------------------
Financial Measures - GAAP (continued)
------------------------------------
ROIC - as-reported 12-months rolling net income
attributable to Entergy Corporation or
Subsidiary (Net Income) adjusted for
preferred dividends and tax-effected
interest expense divided by average
invested capital
ROE - as-reported 12-months rolling Net Income divided by
average common equity
Securitization debt Debt associated with securitization
bonds issued to recover storm costs
from hurricanes Rita, Ike and Gustav at
ETI; the 2009 ice storm at EAI and
investment recovery of costs associated
with the cancelled Little Gypsy
repowering project at ELL
Total debt Sum of short-term and long-term debt,
notes payable and commercial paper and
capital leases on the balance sheet
Financial Measures - Non-GAAP
-----------------------------
Adjusted EBITDA Earnings before interest, depreciation
and amortization and income taxes
excluding decommissioning expense and
other than temporary impairment losses
on decommissioning trust fund assets;
for Entergy consolidated, also excludes
AFUDC-equity funds and subtracts
securitization proceeds
Debt to capital ratio, Total debt divided by total
excluding capitalization, excluding
securitization debt securitization debt
Debt to EBITDA End of period total debt excluding
securitization debt divided by
12-months rolling operational adjusted
EBITDA
FFO Net cash flow provided by operations
less AFUDC-borrowed funds, working
capital items in operating cash flow
(receivables, fuel inventory, accounts
payable, prepaid taxes and taxes
accrued, interest accrued and other
working capital accounts) and
securitization regulatory charge
FFO to debt 12-months rolling operational FFO as a
percentage of end of period total debt
excluding securitization debt
Gross liquidity Sum of cash and revolver capacity
Operational adjusted Adjusted EBITDA excluding effects of
EBITDA special items
Operational earnings As-reported Net Income adjusted to
exclude the impact of special items
Operational FFO FFO excluding effects of special items
Parent debt to total End of period Entergy Corporation debt,
debt including amounts drawn on credit
revolver and commercial paper
facilities, as a percent of total debt
excluding securitization debt
Net debt to net capital Total debt less cash and cash
ratio, excluding equivalents divided by total
securitization debt capitalization less cash and cash
equivalents, excluding securitization
debt
ROIC - operational 12-months rolling operational Net
Income adjusted for preferred dividends
and tax-effected interest expense
divided by average invested capital
ROE - operational 12-months rolling operational Net Income
divided by average common equity
Appendix F-2 explains abbreviations and acronyms used in the quarterly earnings materials.
G: GAAP to Non-GAAP Reconciliations
Appendix F-2: Abbreviations and Acronyms
----------------------------------------
AFUDC- Allowance for borrowed funds used
borrowed during construction
funds ISO-NE ISO New England
LHV Lower Hudson Valley
LPSC Louisiana Public
Service Commission
AFUDC- Allowance for equity funds used
equity during construction
funds LTM Last twelve months
MISO Midcontinent
Independent System
Operator, Inc.
ADIT Accumulated deferred income taxes MPSC Mississippi Public
Service Commission
ALJ Administrative law judge NEPOOL New England Power
Pool
ANO Arkansas Nuclear One (nuclear) Ninemile 6 Ninemile Point Unit
6
Non-fuel O&M Non-fuel O&M
APSC Arkansas Public Service Commission NRC Nuclear Regulatory
Commission
NYISO New York Independent
System Operator,
Inc.
BTA Best Technology Available
CCGT Combined cycle gas turbine NYSDEC New York State
Department of
Environmental
Conservation
CCNO Council of the City of New Orleans, NYSDOS New York State
Louisiana Department of State
NYSE New York Stock
Exchange
CZM Coastal zone management O&M Operation and
maintenance expense
DCRF Distribution cost recovery factor OCF Operating cash flow
DOJ U.S. Department of Justice OPEB Other post-
employment benefits
EAI Entergy Arkansas, Inc. Palisades Palisades Power
Plant (nuclear)
EBITDA Earnings before interest, income
taxes, depreciation and
amortization
Pilgrim Pilgrim Nuclear
Power Station
(nuclear)
EGSL Entergy Gulf States Louisiana, PPA Power purchase
L.L.C. agreement
ELL Entergy Louisiana, LLC PUCT Public Utility
Commission of Texas
EMI Entergy Mississippi, Inc. RFP Request for proposal
ENOI Entergy New Orleans, Inc. RISEC Rhode Island State
Energy Center
(CCGT)
EPS Earnings per share ROE Return on equity
ETI Entergy Texas, Inc. ROIC Return on invested
capital
ETR Entergy Corporation ROS Rest of state
EWC Entergy Wholesale Commodities RPCE Rough production
cost equalization
FCA Forward capacity auction SEC U.S. Securities and
Exchange Commission
FERC Federal Energy Regulatory SEMARI Southeast
Commission Massachusetts/
Rhode Island
FFO Funds from operations SERI System Energy
Resources, Inc.
Firm LD Firm liquidated damages SPDES State Pollutant
Discharge
Elimination System
FitzPatrick James A. FitzPatrick Nuclear Power
Plant SPP Southwest Power Pool
FRP Formula rate plan VY Vermont Yankee
Nuclear Power
Station (nuclear)
GAAP Generally accepted accounting WACC Weighted-average
principles cost of capital
HCM Human Capital Management program WOTAB West of the
Atchafalaya Basin
Indian Point Indian Point Energy Center Unit 2 WQC Water Quality
2 (nuclear) Certification
Indian Point Indian Point Energy Center Unit 3
3 (nuclear) YOY Year-over-year
IPEC Indian Point Energy Center
(nuclear)
ISES Independence Steam Electric Station
(coal)
Appendix G-1, Appendix G-2 and Appendix G-3 provide reconciliations of various non-GAAP financial measures disclosed in this release to their most comparable GAAP measure.
Appendix G-1: Reconciliation of GAAP to Non-GAAP Financial Measures - Utility and EWC Non-fuel O&M per MWh, EWC and EWC Nuclear Average
Total Revenue per MWh
---------------------------------------------------------------------------------------------------------------------------------------
($ in thousands except where noted) Second Quarter Year-to-Date
2015 2014 2015 2014
---- ---- ---- ----
Utility
-------
As-reported Utility
non-fuel O&M (A) 642,538 584,529 1,226,839 1,110,777
Special Items included in non-fuel
O&M:
HCM implementation expenses - 5,573 - 9,521
Total special items
included in non-
fuel O&M (B) - 5,573 - 9,521
Operational Utility
non-fuel O&M (A-B) 642,538 578,956 1,226,839 1,101,256
Utility billed sales
(GWh) (C) 28,745 27,565 57,708 57,323
As-reported Utility
non-fuel O&M per
MWh (A/C) 22.35 21.21 21.26 19.38
Operational Utility
non-fuel O&M per
MWh [(A-B)/(C)] 22.35 21.00 21.26 19.21
EWC
---
As-reported EWC
non-fuel O&M (D) 248,738 297,863 497,063 561,023
Special Items included in non-fuel
O&M:
Decision to close VY 1,579 8,705 9,068 15,433
HCM implementation expenses - 949 - 2,042
Total special items
included in non-
fuel O&M (E) 1,579 9,654 9,068 17,475
Operational EWC non-
fuel O&M (D-E) 247,159 288,209 487,995 543,548
EWC billed sales
(GWh) (F) 9,578 11,533 19,170 21,547
As-reported EWC
non-fuel O&M per
MWh (D/F) 25.97 25.83 25.93 26.04
Operational EWC non-
fuel O&M per MWh [(D-E)/(F)] 25.80 24.99 25.46 25.23
As-reported EWC
operating revenue (G) 439,306 577,891 1,081,896 1,490,013
Less Palisades
below-market PPA
amortization (H) 3,800 4,124 7,600 8,248
Adjusted EWC
operating revenue (G-H) 435,506 573,767 1,074,296 1,481,765
As-reported EWC
nuclear operating
revenue (I) 392,188 531,340 959,096 1,342,227
Less Palisades
below-market PPA
amortization (H) 3,800 4,124 7,600 8,248
Adjusted EWC nuclear
operating revenue (I-H) 388,388 527,216 951,496 1,333,979
As-reported EWC
average total
revenue per MWh (G)/(F) 45.87 50.11 56.44 69.15
Adjusted EWC average
total revenue per
MWh [(G-H)/(F)] 45.47 49.75 56.04 68.77
EWC nuclear billed
sales (GWh) (J) 8,555 10,588 17,173 19,667
As-reported EWC
nuclear average
total revenue per
MWh (I)/(J) 45.84 50.18 55.85 68.25
Adjusted EWC nuclear
average total
revenue per MWh [(I-H)/(J)] 45.40 49.79 55.41 67.83
VY operational non-
fuel O&M (K) 37,723 74,815
VY operating revenue (L) 58,242 214,488
VY billed sales (M) 1,322 2,643
Operational EWC non- [(D-E)-
fuel O&M per MWh (K)]/[(F)-(M)]
excluding VY 24.53 24.80
Adjusted EWC average [(G-H)-
total revenue per (L)]/(F)-(M)]
MWh excluding VY 50.49 67.04
Adjusted EWC nuclear [(I-H)-
average total (L)]/(J)-(M)]
revenue per MWh
excluding VY 50.61 65.76
-------------------- -------------- ----- -----
Totals may not foot due to rounding
Appendix G-2: Reconciliation of GAAP to Non-GAAP Financial Measures - ROE, ROIC
Metrics
-------------------------------------------------------------------------------
($ in millions) Second Quarter
--------------
2015 2014
---- ----
As-reported net
income
attributable to
Entergy
Corporation,
rolling 12
months (A) 797 977
Preferred dividends 20 19
Tax effected interest expense 391 381
--- ---
As-reported net
income
attributable to
Entergy
Corporation,
rolling 12
months adjusted
for preferred
dividends and
tax effected
interest expense (B) 1,208 1,377
Special items, rolling 12 months
Decision to close VY (93) (218)
Transmission business spin-merge expenses ? 15
HCM implementation expenses (3) (40)
Total special
items, rolling
12 months (C) (95) (243)
Operational
earnings,
rolling 12
months adjusted
for preferred
dividends and
tax effected
interest expense (B-C) 1,303 1,620
Operational
earnings,
rolling 12
months (A-C) 892 1,220
Average invested
capital (D) 24,190 23,680
Average common
equity (E) 10,110 9,668
ROIC - as-
reported % (B/D) 5.0 5.8
ROIC -
operational % [(B-C)/D] 5.4 6.8
ROE - as-
reported % (A/E) 7.9 10.1
ROE - operational
% [(A-C)/E] 8.8 12.6
Totals may not foot due to rounding
Appendix G-3: Reconciliation of GAAP to Non-GAAP Financial Measures -
Credit and Liquidity Metrics
---------------------------------------------------------------------
($ in
millions) Second Quarter
--------------
2015 2014
---- ----
Total debt (A) 13,858 13,692
Less
securitization
debt (B) 734 832
--- ---
Total debt,
excluding
securitization
debt (C) 13,124 12,860
Less cash
and cash
equivalents (D) 910 650
--- ---
Net debt,
excluding
securitization
debt (E) 12,214 12,210
Total
capitalization (F) 24,321 24,059
Less
securitization
debt (B) 734 832
--- ---
Total
capitalization,
excluding
securitization
debt (G) 23,587 23,227
Less cash
and cash
equivalents (D) 910 650
--- ---
Net capital,
excluding
securitization
debt (H) 22,677 22,577
Debt to
capital
ratio % (A/F) 57.0 56.9
Debt to
capital
ratio,
excluding
securitization
debt % (C/G) 55.6 55.4
Net debt to
net capital
ratio,
excluding
securitization
debt % (E/H) 53.9 54.1
Revolver
capacity (I) 4,158 4,003
Gross
liquidity (D+I) 5,068 4,653
Entergy
Corporation
notes:
Due
September
2015 550 550
Due January
2017 500 500
Due
September
2020 450 450
--- ---
Total parent
long-term
debt (J) 1,500 1,500
Revolver
draw (K) 271 195
Commercial
paper (L) 895 909
--- ---
Total parent
debt (J)+(K)+(L) 2,666 2,604
Parent debt
to total
debt ratio,
excluding
securitization
debt % [((J)+(K)+(L))/(C)] 20.3 20.2
--------------- ----------------- ---- ----
Appendix G-3: Reconciliation of GAAP to Non-GAAP Financial Measures - Credit and Liquidity
Metrics (continued)
------------------------------------------------------------------------------------------
($ in millions) Second Quarter
--------------
2015 2014
---- ----
Total debt (A) 13,858 13,692
Less securitization debt (B) 734 832
--- ---
Total debt, excluding
securitization debt (C) 13,124 12,860
As-reported consolidated net income, rolling 12 months 817 996
Add back: interest expense, rolling 12 months 636 618
Add back: income tax expense, rolling 12 months 494 382
Add back: depreciation and amortization, rolling 12
months 1,331 1,323
Add back: regulatory charges (credits), rolling 12
months 10 26
Subtract: securitization proceeds, rolling 12 months 130 133
Subtract: interest and investment income, rolling 12
months 196 180
Subtract: AFUDC - equity funds, rolling 12 months 59 67
Add back: decommissioning expense, rolling 12 months 278 257
--- ---
Adjusted EBITDA, rolling
12 months (D) 3,181 3,222
Add back: special item for transmission business spin-
merge expenses, rolling 12 months (pre-tax) - 16
Add back: special item for HCM implementation expenses,
rolling 12 months (pre-tax) 4 66
Add back: special item resulting from decision to close
VY, rolling 12 months (pre-tax) 143 364
--- ---
Operational adjusted
EBITDA, rolling 12
months (E) 3,328 3,668
Debt to operational
adjusted EBITDA,
excluding securitization
debt (C)/(E) 3.9 3.5
Net cash flow provided by
operating activities,
rolling 12 months (F) 3,699 3,602
AFUDC borrowed funds used
during construction,
rolling 12 months (G) (30) (29)
Working capital items in net cash flow provided by
operating activities, rolling 12 months:
Receivables 45 (9)
Fuel inventory (32) 31
Accounts payable (164) (11)
Prepaid taxes and taxes accrued (43) (124)
Interest accrued 5 1
Other working capital accounts 104 (48)
Securitization regulatory charge 99 99
--- ---
Total (H) 14 (61)
FFO, rolling 12 months (F)+(G)-(H) 3,655 3,634
Add back: special item for transmission business spin-
merge expenses, rolling 12 months (pre-tax) - 21
Add back: special item for HCM implementation expenses,
rolling 12 months (pre-tax) 15 55
Add back: special item resulting from decision to close
VY, rolling 12 months (pre-tax) 57 8
--- ---
Operational FFO, rolling
12 months (I) 3,727 3,718
Operational FFO to debt
ratio, excluding
securitization debt % (I)/(C) 28.4 28.9
----------------------- ------- ---- ----
Totals may not foot due to rounding
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SOURCE Entergy Corporation
