ENTERGY CORPORATION NEW ORLEANS, Nov. 2, 2015 /PRNewswire/ -- Entergy Corporation (NYSE: ETR) reported a third quarter 2015 as-reported loss of $4.04 per share, including $5.93 per share of non-cash asset impairments for Pilgrim Nuclear Power Station and James A. FitzPatrick Nuclear Power Plant. Entergy recently announced plans to close Pilgrim and today announced the closing of FitzPatrick. On an operational basis, earnings were $1.90 per share in third quarter 2015. These results compare to third quarter 2014 as-reported earnings of $1.27 per share and operational earnings of $1.68 per share.
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"This year we have intensified our focus on executing on the strategy we put in place last year, and the results are becoming evident," said Entergy chairman and chief executive officer Leo Denault. "Through our accomplishments in the Utility, we continue to strive to meet and exceed our regulators' and customers' expectations; and strategic decisions regarding the future of the Entergy Wholesale Commodities' fleet set us up to deliver long-term value. Our progress enables us to provide improved returns to our owners, safe operations and reliable service to our customers, a rewarding place to work for our employees and sustainable economic benefits to our communities. We thank our stakeholders for their continued support and look forward to continued growth.
"While taking these actions are in the long-term best interest of our stakeholders, in the near-term, these decisions to close nuclear plants are very difficult to make knowing the effect they have on all of our four key stakeholder groups - employees, communities, customers and owners."
Additional business highlights included the following:
-- Entergy Gulf States Louisiana, L.L.C. and Entergy Louisiana, LLC became
one company on Oct. 1st, now referred to as Entergy Louisiana, LLC.
-- Entergy Wholesale Commodities entered into an agreement to sell its
Rhode Island State Energy Center power plant.
-- Entergy Corporation was named to the Dow Jones Sustainability North
America Index, one of four electric utility companies designated a
sustainability leader on the index.
Consolidated Earnings - Reconciliation of GAAP to Non-GAAP Measures
Third Quarter and Year-to-Date 2015 vs. 2014
--------------------------------------------
Third Quarter Year-to-Date
------------- ------------
2015 2014 Change 2015 2014 Change
---- ---- ------ ---- ---- ------
As-Reported Earnings
(Loss) (723.0) 230.0 (953.1) (276.1) 820.6 (1,096.7)
($ in millions)
Less Special Items:
Pilgrim/FitzPatrick asset impairments
and related write-offs (1,062.5) - (1,062.5) (1,062.5) - (1,062.5)
Decision to close VY (1.2) (73.7) 72.5 (6.9) (86.4) 79.5
HCM implementation
expenses - (0.6) 0.6 - (7.8) 7.8
Total Special Items (1,063.7) (74.3) (989.4) (1,069.4) (94.2) (975.2)
Operational Earnings 340.7 304.4 36.3 793.3 914.8 (121.5)
Weather Impact 29.3 (20.0) 49.3 40.7 3.2 37.5
As-Reported Earnings
(Loss) (4.04) 1.27 (5.31) (1.54) 4.56 (6.10)
(per share in $)
Less Special Items:
Pilgrim/FitzPatrick asset impairments
and related write-offs (5.93) - (5.93) (5.92) - (5.92}
HCM implementation
expenses - - - - (0.04) 0.04
Decision to close VY (0.01) (0.41) 0.40 (0.04) (0.48) 0.44
----- ----- ---- ----- ----- ----
Total Special Items (5.94) (0.41) (5.53) (5.96) (0.52) (5.44)
----- ----- ----- ----- ----- -----
Operational Earnings 1.90 1.68 0.22 4.42 5.08 (0.66)
Weather Impact 0.16 (0.11) 0.27 0.23 0.02 0.21
-------------- ---- ----- ---- ---- ---- ----
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, Parent & Other Results
In third quarter 2015, Utility, Parent and Other earnings were $1.72 per share on an as-reported and an operational basis. In comparison, third quarter 2014 as-reported and operational EPS was $1.45. Operational results reflected the effects of productive investments and favorable weather, as well as higher operating expenses. Also contributing to the quarter-over-quarter increase was a regulatory charge recorded in third quarter 2014.
Billed retail sales volume increased quarter-to-quarter on the effects of weather and retail sales growth. On a weather-adjusted basis, billed volume increased 1.8 percent; the components of the sales growth were:
-- Weather-adjusted residential sales decline of (0.1) percent,
-- Commercial sales increase of 1.2 percent on a weather-adjusted basis,
-- Weather-adjusted governmental sales increase of 4.9 percent and
-- Industrial sales increase of 4.0 percent.
Industrial sales growth reflected new and expansion projects that continued to ramp up and come into service, as well as growth from existing customers. Petroleum refineries ran at high utilization levels after their extended spring outages in second quarter 2015.
On a revenue basis, volume was primarily driven by weather. Weather reflected a significantly warmer-than-normal summer in third quarter 2015, compared to a cooler-than-normal season last year. Higher Utility net revenue also included 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, and increased industrial usage. The earnings effect from these rate adjustments was largely offset by changes in other line items (e.g., non-fuel operation and maintenance and depreciation expenses). Increased regulatory compliance at Arkansas Nuclear One and higher distribution reliability spending 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 $129 million in third quarter 2015, compared to $165 million in the same period a year ago. The decrease in operational adjusted EBITDA was driven largely by lower nuclear energy and capacity prices.
EWC Operational Adjusted EBITDA - Reconciliation of GAAP to Non-GAAP Measures
Third Quarter and Year-to-Date 2015 vs. 2014
--------------------------------------------
($ in millions) Third Quarter Year-to-Date
------------- ------------
2015 2014 Change 2015 2014 Change
---- ---- ------ ---- ---- ------
Net income (1,032) (33) (999) (913) 235 (1,148)
Add back: interest
expense 7 4 3 19 12 7
Add back: income tax
expense (555) 2 (557) (488) 141 (629)
Add back: depreciation
and amortization 60 72 (12) 187 213 (26)
Subtract: interest and
investment income 29 29 - 116 77 39
Add back: decommissioning
expense 33 35 (2) 101 104 (3)
--- --- --- --- --- ---
Adjusted EBITDA (1,515) 51 (1,566) (1,210) 627 (1,837)
Add back:
Special item for HCM
implementation (pre-
tax) - 1 (1) - 3 (3)
Special item for the
decision to close VY
(pre-tax) 2 113 (111) 11 134 (123)
Special item for Pilgrim/
FitzPatrick asset
impairments and related
write-offs (pre-tax) 1,642 - 1,642 1,642 - 1,642
----- --- ----- ----- --- -----
Operational adjusted
EBITDA 129 165 (36) 443 764 (321)
-------------------- --- --- --- --- --- ----
Totals may not foot due
to rounding
EWC reported an as-reported loss of $5.76 per share compared to a third quarter 2014 as-reported loss of 18 cents per share. Third quarter 2015 as-reported results included non-cash asset impairments for Pilgrim and FitzPatrick totaling approximately $1.6 billion on a pre-tax basis and approximately $1.1 billion after-tax. Under generally accepted accounting principles, long-lived assets are typically accounted for on a historical cost basis unless a triggering event occurs which requires an impairment evaluation. Both plants experienced a triggering event in the quarter. Applying the accounting rules after these events led to the charges. The impairments were classified as a special item and therefore, excluded from operational results.
Third quarter 2015 EWC operational earnings were 18 cents per share, compared to 23 cents per share in the third quarter 2014. This decline was driven by lower nuclear capacity and energy pricing partially offset by the closure of VY at the end of last year. VY incurred a net operational loss in the third quarter of 2014.
For additional details on EWC's performance for the quarter, see Appendix D and webcast presentation slides.
Earnings Guidance
Entergy updated its 2015 operational earnings guidance to be $5.50 to $6.10 per share. Current expectations are around $6.00 per share. The updated guidance range reflects year-to-date weather and updated expectations for tax benefits at Utility, Parent and Other as well as lower fuel, refueling outage and depreciation and amortization expenses at EWC resulting from the Pilgrim and FitzPatrick impairments. See webcast presentation slides for additional details.
Earnings Teleconference
A teleconference will be held at 10 a.m. CT on Monday, Nov. 2, 2015, to discuss Entergy's third 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 60315863, 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 Nov. 9, 2015, by dialing (855) 859-2056, conference ID 60315863. 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 will be 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 FitzPatrick, Pilgrim or 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 pending acquisition of the Union Power Station near El Dorado, Arkansas, 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.
Third 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 1-1 provides a comparative summary of consolidated EPS for third quarter and year-to-date 2015 versus 2014, including a reconciliation of GAAP as-reported earnings to non-GAAP operational earnings.
Appendix 1-1: Consolidated Earnings - Reconciliation of GAAP to Non-GAAP Measures
Third Quarter and Year-to-Date 2015 vs. 2014
(Per share in $)
Third Quarter Year-to-Date
------------- ------------
2015 2014 Change 2015 2014 Change
---- ---- ------ ---- ---- ------
As-Reported
Utility 2.01 1.72 0.29 4.36 4.00 0.36
Parent & Other (0.29) (0.27) (0.02) (0.81) (0.74) (0.07)
EWC (5.76) (0.18) (5.58) (5.09) 1.30 (6.39)
Consolidated As-
Reported
Earnings (Loss) (4.04) 1.27 (5.31) (1.54) 4.56 (6.10)
Less Special Items
Utility - - - - (0.03) 0.03
Parent & Other - - - - - -
EWC (5.94) (0.41) (5.53) (5.96) (0.49) (5.47)
----- ----- ----- ----- ----- -----
Consolidated
Special Items (5.94) (0.41) (5.53) (5.96) (0.52) (5.44)
Operational
Utility 2.01 1.72 0.29 4.36 4.03 0.33
Parent & Other (0.29) (0.27) (0.02) (0.81) (0.74) (0.07)
EWC 0.18 0.23 (0.05) 0.87 1.79 (0.92)
---- ---- ----- ---- ---- -----
Consolidated
Operational
Earnings 1.90 1.68 0.22 4.42 5.08 (0.66)
Weather Impact 0.16 (0.11) 0.27 0.23 0.02 0.21
Detailed earnings variance analyses are included in Appendix 2-1 and Appendix 2-2.
Appendix 1-2 provides the components of OCF contributed by each business with current quarter and year-to-date comparisons.
Appendix 1-2: Consolidated Operating Cash Flow
Third Quarter and Year-to-Date 2015 vs. 2014
--------------------------------------------
($ in millions)
Third Quarter Year-to-Date
------------- ------------
2015 2014 Change 2015 2014 Change
---- ---- ------ ---- ---- ------
Utility 833 1,239 (406) 2,049 2,243 (194)
Parent
&
Other 13 (83) 96 (81) (208) 127
EWC 165 207 (42) 381 856 (475)
Total
Operating
Cash
Flow 1,011 1,363 (352) 2,350 2,891 (542)
--------- ----- ----- ---- ----- ----- ----
Totals may not foot due
to rounding
The primary drivers of the $352 million quarter-over-quarter decrease were the receipt of Isaac-related securitization funds in third quarter 2014 and lower EWC net revenue.
Appendix 1-3 and Appendix 1-4 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 1-3: Special Items by Driver (shown as positive/(negative) impact on EPS)
Third Quarter and Year-to-Date 2015 vs. 2014
--------------------------------------------
(After-tax, per share in $)
Third Quarter Year-to-Date
------------- ------------
2015 2014 Change 2015 2014 Change
---- ---- ------ ---- ---- ------
Utility
HCM implementation expenses - - - - (0.03) 0.03
--- --- --- --- ----- ----
Total Utility - - - - (0.03) 0.03
EWC
Pilgrim/FitzPatrick asset impairments
and related write-offs (5.93) - (5.93) (5.92) - (5.92)
Decision to close VY (0.01) (0.41) 0.40 (0.04) (0.48) 0.44
HCM implementation expenses - - - - (0.01) 0.01
--- --- --- --- ----- ----
Total EWC (5.94) (0.41) (5.53) (5.96) (0.49) (5.47)
Total Special Items (5.94) (0.41) (5.53) (5.96) (0.52) (5.44)
Appendix 1-4: Special Items by Income Statement Line Item (shown as positive/(negative) impact on earnings)
Third Quarter and Year-to-Date 2015 vs. 2014
--------------------------------------------
(Pre-tax except for Income taxes - other, $ in millions)
Third Quarter Year-to-Date
------------- ------------
2015 2014 Change 2015 2014 Change
---- ---- ------ ---- ---- ------
Utility
Non-fuel O&M - (0.7) 0.7 - (10.2) 10.2
Taxes other than
income taxes - - - - (0.5) 0.5
Income taxes -
other - 0.4 (0.4) - 4.6 (4.6)
--- --- ---- --- --- ----
Total Utility - (0.3) 0.3 - (6.1) 6.1
EWC
Non-fuel O&M (1.7) (10.2) 8.5 (10.8) (27.6) 16.8
Taxes other than
income taxes (0.1) (0.8) 0.7 0.2 (2.2) 2.4
Asset write-off
and impairments (1,642.2) (103.0) (1,539.2) (1,642.2) (107.0) (1,535.2)
Income taxes -
other 580.3 39.9 540.4 583.4 48.6 534.8
----- ---- ----- ----- ---- -----
Total EWC (1,063.7) (74.0) (989.7) (1,069.4) (88.1) (981.3)
Total Special
Items (1,063.7) (74.3) (989.4) (1,069.4) (94.2) (975.2)
------------- -------- ----- ------ -------- ----- ------
Totals may not foot due
to rounding
B: Variance Analysis
Appendix 2-1 and Appendix 2-2 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 2-1: As-Reported and Operational EPS Variance Analysis
Third Quarter 2015 vs. 2014
---------------------------
(After-tax, per share in $, sorted in consolidated operational column, most to least favorable)
Utility Parent & Other EWC Consolidated
As-Reported Opera- As- Opera-tional As-
Reported Reported Opera-tional As- Reported Opera-tional
tional
------
2014 earnings 1.72 1.72 (0.27) (0.27) (0.18) 0.23 1.27 1.68
Asset write-off and impairments 0.23 0.23 (a) - - (5.56) - (b) (5.33) 0.23
Net revenue 0.36 0.36 (c) - - (0.26) (0.26) (d) 0.10 0.10
Income taxes - other - - - - 0.03 0.03 0.03 0.03
Share effect 0.01 0.01 - - - - 0.01 0.01
Decommissioning expense (0.01) (0.01) - - 0.01 0.01 - -
Taxes other than income taxes (0.03) (0.03) - - 0.03 0.03 - -
Depreciation/amortization expense (0.05) (0.05) (e) - - 0.04 0.04 (0.01) (0.01)
Interest expense and other charges (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.03) (0.03)
Other income (deductions)-other (0.05) (0.05) (f) - - - - (0.05) (0.05)
Non-fuel O&M (0.16) (0.16) (g) (0.01) (0.01) 0.14 0.11 (h) (0.03) (0.06)
2015 earnings 2.01 2.01 (0.29) (0.29) (5.76) 0.18 (4.04) 1.90
---- ---- ----- ----- ----- ---- ----- ----
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 Parent & Other EWC Consolidated
As-Reported Opera- As-Reported Opera-tional As- Reported Opera-tional As- Reported Opera-tional
tional
---
2014 earnings 4.00 4.03 (0.74) (0.74) 1.30 1.79 4.56 5.08
Asset write-off and impairments 0.23 0.23 (a) - - (5.54) - (b) (5.31) 0.23
Other income (deductions) - other 0.02 0.02 (0.05) (0.05) (i) 0.12 0.12 (j) 0.09 0.09
Income taxes - other 0.10 0.10 (k) (0.01) (0.01) (0.03) (0.03) 0.06 0.06
Share effect 0.01 0.01 - - - - 0.01 0.01
Decommissioning expense (0.03) (0.03) - - 0.01 0.01 (0.02) (0.02)
Taxes other than income taxes (0.07) (0.07) (l) - - 0.05 0.04 (0.02) (0.03)
Depreciation/amortization expense (0.14) (0.14) (e) - - 0.09 0.09 (m) (0.05) (0.05)
Interest expense and other charges (0.05) (0.05) (n) 0.01 0.01 (0.02) (0.02) (0.06) (0.06)
Non-fuel O&M (0.56) (0.59) (g) (0.01) (0.01) 0.36 0.30 (h) (0.21) (0.30)
Net revenue 0.85 0.85 (c) (0.01) (0.01) (1.43) (1.43) (d) (0.59) (0.59)
2015 earnings 4.36 4.36 (0.81) (0.81) (5.09) 0.87 (1.54) 4.42
---- ---- ----- ----- ----- ---- ----- ----
(a) The current quarter and year to date
increases were due to the third quarter
2014 charge associated with the EMI
rate case settlement ($60.9 million
pre-tax, $40.5 million after-tax).
(b) The as-reported current quarter and
year-to date decreases were primarily
due to non-cash impairment charges and
related write-offs in the current
quarter for the Pilgrim and FitzPatrick
plants totaling $(5.93)/share.
Partially offsetting this decrease was
a third quarter 2014 charge for an
updated VY decommissioning cost study.
(c) The current quarter and year-to date
increases were due to favorable
weather, an increase in industrial
usage and pricing. The price variance
included the Louisiana FRP rate
adjustments for placing Ninemile 6 in
rates and the EMI rate case. Year-to-
date included higher volume from all
classes.
(d) The current quarter and year-to-date
decreases were due to the retirement of
VY at the end of 2014 along with lower
realized nuclear capacity and energy
pricing. Also contributing to the
decreases in the year-to-date period
was the negative net effect of mark-
to-market activity in the current
period compared to a positive
contribution in the comparable period a
year ago. Fewer refueling outage days
provided a partial offset in both
periods.
(e) The current quarter and year-to-date
decreases were due primarily to
additions to plant (including Ninemile
Unit 6 placed in service in December
2014) as well as higher depreciation
rates implemented at EMI for 2015 (as
approved by the MPSC).
(f) The current quarter decrease was due
partly to lower decommissioning trust
earnings (offset in net revenue), lower
AFUDC equity and carrying charges
recorded in 2014 on storm restoration
costs related to Hurricane Isaac.
(g) The current quarter and year-to-date
decreases reflected regulatory
compliance costs resulting from the
NRC's decision to move ANO into Column
4 of the reactor oversight process
action matrix (approximately $21
million in third quarter 2015 and
approximately $38 million in the year-
to-date period). Also higher were
expenses for distribution reliability.
Year-to-date includes higher other
nuclear and fossil expenses. 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.
(h) The current quarter and year-to-date
increases were attributable to the
closure of VY at the end of 2014.
Excluding VY, 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.
(i) The year-to-date decrease was due
primarily to higher earnings on
investments in affiliate preferred
membership interests (offset in
Utility).
(j) 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.
(k) 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.
Partially offsetting was a state income
tax benefit of approximately $10
million resulting from Act 55 storm
securitization in third quarter 2014.
(l) The year-to-date decrease was
primarily due to higher payroll taxes
and ad valorem tax assessments.
(m) The year-to-date increase was mainly
attributable to the absence of VY
depreciation.
(n) The year-to-date decrease resulted
from net debt issuances in fourth
quarter 2014.
See webcast appendix for
more details on the
effects of the VY closure
on EWC line item
variances.
Utility As-Reported Net Revenue
Variance Analysis
2015 vs. 2014 ($ EPS)
--------------------
Third Quarter Year-to-Date
------------- ------------
Weather 0.27 0.21
Sales growth/pricing 0.15 0.73
Other (0.06) (0.09)
----- -----
Total 0.36 0.85
----- ---- ----
C: Utility Performance Measures
Appendix 3-1 provides a comparative summary of Utility operational performance measures.
Appendix 3-1: Utility Operational Performance Measures
Third Quarter and Year-to-Date 2015 vs. 2014
--------------------------------------------
Third Quarter Year-to-Date
------------- ------------
2015 2014 % Change % Weather Adjusted (o) 2015 2014 % Change % Weather
Adjusted
(o)
---- ---- -------- --------------------- ---- ---- -------- ---------
GWh billed
Residential 11,887 10,869 9.4 (0.1) 28,683 28,162 1.9 0.4
Commercial 8,744 8,281 5.6 1.2 22,370 21,844 2.4 0.6
Governmental 692 659 5.0 4.9 1,886 1,829 3.1 2.9
Industrial 12,087 11,620 4.0 4.0 33,230 32,635 1.8 1.8
Total Retail Sales 33,410 31,429 6.3 1.8 86,169 84,470 2.0 1.0
Wholesale 2,586 2,075 24.6 7,535 6,357 18.5
Total Sales 35,996 33,504 7.4 93,704 90,827 3.2
Number of electric retail customers
Residential 2,434,079 2,411,773 0.9
Commercial 348,920 345,338 1.0
Governmental 17,779 17,314 2.7
Industrial 49,941 49,868 0.1
Total Retail Customers 2,850,719 2,824,293 0.9
Net Revenue ($
millions) 1,750 1,646 6.3 4,648 4,401 5.6
As-reported non-fuel
O&M per MWh $18.42 $18.42 - $20.17 $19.02 6.0
Operational non-fuel
O&M per MWh $18.42 $18.40 0.1 $20.17 $18.91 6.7
(o) 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 4-1 provides a comparative summary of EWC operational performance measures.
Appendix 4-1: EWC Operational Performance Measures
Third Quarter and Year-to-Date 2015 vs. 2014
--------------------------------------------
Third Quarter Year-to-Date
------------- ------------
2015 2014 % Change 2015 2014 % Change
---- ---- -------- ---- ---- --------
Owned capacity
(MW) (p) 5,463 6,068 (10.0) 5,463 6,068 (10.0)
GWh billed 10,748 11,328 (5.1) 29,918 32,874 (9.0)
As-reported
average total
revenue per
MWh $48.54 $53.47 (9.2) $53.60 $63.75 (15.9)
Adjusted
average total
revenue per
MWh (q) $48.19 $53.11 (9.3) $53.22 $63.37 (16.0)
Net revenue ($
millions) 410 485 (15.5) 1,287 1,704 (24.5)
As-reported
non-fuel O&M
per MWh $23.79 $26.07 (8.7) $25.16 $26.05 (3.4)
Operational
non-fuel O&M
per MWh (r) $23.63 $25.18 (6.2) $24.80 $25.21 (1.6)
EWC Nuclear Fleet
-----------------
Capacity
factor 92% 90% 2.2 90% 89% 1.1
GWh billed 9,125 9,950 (8.3) 26,298 29,618 (11.2)
As-reported
average total
revenue per
MWh $50.41 $53.66 (6.1) $53.96 $63.34 (14.8)
Adjusted
average total
revenue per
MWh (s) $49.99 $53.24 (6.1) $53.53 $62.93 (14.9)
Production
cost per MWh $26.90 $27.37 (1.7) $26.24 $26.54 (1.1)
Net revenue ($
millions) 395 470 (16.0) 1,242 1,660 (25.2)
Refueling outage days
FitzPatrick - 37 - 37
Indian Point 2 - - - 24
Indian Point 3 - - 23 -
Palisades (t) 13 - 13 56
Pilgrim - - 34 -
------- --- --- --- ---
(p) Third quarter and year-to-
date 2014 include capacity for
VY, which was retired in
December 2014 (605 MW).
(q) Excluding VY, $55.28/MWh and
$62.97/MWh in third quarter
and year-to-date 2014
periods.
(r) Excluding VY, $24.44/MWh and
$24.67/MWh in third quarter
and year-to-date 2014
periods.
(s) Excluding VY, $55.78/MWh and
$62.40/MWh in third quarter
and year-to-date 2014
periods.
(t) Palisades had 19 refueling
outage days in fourth quarter
2015.
See webcast presentation
appendix slides for EWC
hedging and price disclosures.
E: Financial Performance Measures
Appendix 5 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 7.
Appendix 5: GAAP and Non-GAAP Financial Performance Measures
Third Quarter 2015 vs. 2014
---------------------------
For 12 months ending Sept.
30 2015 2014 Change
---- ---- ------
GAAP Measures
ROIC - as-reported 1.1% 5.8% (4.7%)
ROE - as-reported (1.6%) 9.9% (11.5%)
Book value per share $51.33 $56.49 ($5.16)
End of period shares
outstanding (millions) 178.4 179.6 (1.2)
Non-GAAP Measures
ROIC - operational 5.6% 6.3% (0.7%)
ROE - operational 9.6% 11.2% (1.6%)
As of Sept. 30 ($ in
millions) 2015 2014 Change
---- ---- ------
GAAP Measures
Cash and cash equivalents 1,041 1,069 (28)
Revolver capacity 3,869 3,975 (106)
Commercial paper
outstanding 664 776 (112)
Total debt 14,144 13,673 471
Securitization debt 814 814 -
Debt to capital ratio 60.2% 56.7% 3.5%
Off-balance sheet liabilities:
Debt of joint ventures -
Entergy's share 78 83 (5)
Leases - Entergy's share 422 456 (34)
Power purchase agreements
accounted for as leases 224 224 -
--- --- ---
Total off-balance sheet
liabilities 724 763 (39)
Non-GAAP Measures
Debt to capital ratio,
excluding securitization
debt 58.7% 55.2% 3.5%
Gross liquidity 4,910 5,044 (134)
Net debt to net capital
ratio, excluding
securitization debt 56.7% 53.0% 3.7%
Parent debt to total debt
ratio, excluding
securitization debt 20.9% 19.6% 1.3%
Debt to operational
adjusted EBITDA, excluding
securitization debt 3.9 3.6 0.3
Operational FFO to debt
ratio, excluding
securitization debt 25.4% 29.4% (4.0%)
F: Definitions, Abbreviations and Acronyms
Appendix 6-1 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 6-1: 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
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
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
Appendix 6-1: Definitions
-------------------------
EWC Operational Performance Measures (continued)
-----------------------------------------------
Net revenue Operating revenue less fuel, fuel
related expenses and purchased
power
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
Non-fuel O&M 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
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
Owned capacity (MW) MW)
Percent of capacity sold Percent of planned qualified
forward capacity sold to mitigate price
uncertainty under physical or
financial transactions
Percent of planned Percent of planned generation output
generation 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
Amount of installed capacity to
generate power and/or sell
capacity, assuming shutdown of
Pilgrim June 1, 2019 and
FitzPatrick at the end of January
2017, excludes energy and capacity
from EWC's wind investment
accounted for under the equity
Planned net MW in operation method of accounting
Amount of output expected to be
generated by EWC resources
considering plant operating
characteristics and outage
schedules, assuming shutdown of
Pilgrim June 1, 2019 and
FitzPatrick at the end of January
2017, uninterrupted normal plant
operation and timely renewal of
Planned TWh of generation plant operating licenses at IPEC
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),
Production cost per MWh excluding special items
Refueling outage days Number of days lost for scheduled
refueling outage during the period
Transaction under which power is
supplied from a specific generation
asset; if the asset is on
operational outage, seller is
generally not liable to buyer for
any damages, unless the contract
specifies certain conditions such
Unit-contingent as an availability guarantee
Financial Measures - GAAP
-------------------------
Book value per share End of period
common equity
divided by end
of period shares
outstanding
Debt of joint Entergy's share
ventures - Entergy's of debt issued
share by business
joint ventures
at EWC
Debt to capital ratio Total debt
divided by total
capitalization
Leases - Entergy's Operating leases
share 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
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 and
Hurricane Isaac
at ENOI; the
2009 ice storm
at EAI,
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
Appendix 6-1: Definitions
-------------------------
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, excluding Total debt divided by total
securitization debt capitalization, excluding
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 EBITDA Adjusted EBITDA excluding effects of
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 debt End of period Entergy Corporation 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 ratio, Total debt less cash and cash
excluding securitization debt equivalents divided by total
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 6-2 explains abbreviations and acronyms used in the quarterly earnings materials.
Appendix 6-2: 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.
ARO Asset retirement obligation
BTA Best technology available NYPA New York Power
Authority
CCGT Combined cycle gas turbine NYS New York State
CCNO Council of the City of New Orleans, NYSDEC New York State
Louisiana Department of
Environmental
Conservation
COD Commercial operation date NYSDOS New York State Department of State
CZM Coastal zone management NYSE New York Stock
Exchange
DCRF Distribution cost recovery factor O&M Operation and
maintenance expense
DOJ U.S. Department of Justice
EAI Entergy Arkansas, Inc.
EBITDA Earnings before interest, income
taxes, depreciation and
amortization
OCF Operating cash flow
EEI Edison Electric Institute OPEB Other post-
employment benefits
EGSL Entergy Gulf States Louisiana, Palisades Palisades Power
L.L.C. Plant (nuclear)
ELL Entergy Louisiana, LLC Pilgrim Pilgrim Nuclear
Power Station
(nuclear)
EMI Entergy Mississippi, Inc. PPA Power purchase
agreement
ENOI Entergy New Orleans, Inc. PUCT Public Utility
Commission of Texas
EPA Environmental Protection Agency RFO Refueling outage
EPS Earnings per share RFP Request for proposal
ETI Entergy Texas, Inc. RISEC Rhode Island State
Energy Center
(CCGT)
ETR Entergy Corporation ROE Return on equity
EWC Entergy Wholesale Commodities ROIC Return on invested
capital
FCA Forward capacity auction ROS Rest of state
FERC Federal Energy Regulatory RPCE Rough production
Commission cost equalization
FFO Funds from operations SEC U.S. Securities and
Exchange Commission
Firm LD Firm liquidated damages SEMARI Southeast
Massachusetts/
Rhode Island
FitzPatrick James A. FitzPatrick Nuclear Power SERI System Energy
Plant Resources, Inc.
FRP Formula rate plan SPDES State Pollutant
Discharge
Elimination System
GAAP Generally accepted accounting
principles SPP Southwest Power Pool
HCM Human Capital Management program TCRF Transmission cost
recovery factor
HSR Hart-Scott-Rodino UP&O Utility, Parent &
Other
Indian Point Indian Point Energy Center Unit 2 VY Vermont Yankee
2 (nuclear) Nuclear Power
Station (nuclear)
Indian Point Indian Point Energy Center Unit 3 WACC Weighted-average
3 (nuclear) cost of capital
IPEC Indian Point Energy Center WOTAB West of the
(nuclear) Atchafalaya Basin
ISES Independence Steam Electric Station WQC Water Quality
(coal) Certification
YOY Year-over-year
--- --------------
G: GAAP to Non-GAAP Reconciliations
Appendix 7-1, Appendix 7-2 and Appendix 7-3 provide reconciliations of various non-GAAP financial measures disclosed in this release to their most comparable GAAP measure.
Appendix 7-1: 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) Third Quarter Year-to-Date
2015 2014 2015 2014
---- ---- ---- ----
Utility
-------
As-reported Utility
non-fuel O&M (A) 663,142 617,104 1,889,982 1,727,878
Special Items
included in non-
fuel O&M:
HCM implementation
expenses - 681 - 10,202
Total special items
included in non-
fuel O&M (B) - 681 - 10,202
Operational Utility
non-fuel O&M (A-B) 663,142 616,423 1,889,982 1,717,676
Utility billed sales
(GWh) (C) 35,996 33,504 93,704 90,827
As-reported Utility
non-fuel O&M per
MWh (A/C) 18.42 18.42 20.17 19.02
Operational Utility
non-fuel O&M per
MWh [(A-B)/(C)] 18.42 18.40 20.17 18.91
EWC
---
As-reported EWC
non-fuel O&M (D) 255,656 295,375 752,719 856,399
Special Items
included in non-
fuel O&M:
Decision to close VY 1,706 9,681 10,774 25,114
HCM implementation
expenses - 483 - 2,525
Total special items
included in non-
fuel O&M (E) 1,706 10,164 10,774 27,639
Operational EWC non-
fuel O&M (D-E) 253,950 285,211 741,945 828,760
EWC billed sales
(GWh) (F) 10,748 11,328 29,918 32,874
As-reported EWC
non-fuel O&M per
MWh (D/F) 23.79 26.07 25.16 26.05
Operational EWC non-
fuel O&M per MWh [(D-E)/(F)] 23.63 25.18 24.80 25.21
As-reported EWC
operating revenue (G) 521,746 605,740 1,603,643 2,095,752
Less Palisades
below-market PPA
amortization (H) 3,800 4,124 11,400 12,372
Adjusted EWC
operating revenue (G-H) 517,946 601,616 1,592,243 2,083,380
As-reported EWC
nuclear operating
revenue (I) 459,964 533,887 1,419,060 1,876,115
Less Palisades
below-market PPA
amortization (H) 3,800 4,124 11,400 12,372
Adjusted EWC nuclear
operating revenue (I-H) 456,164 529,763 1,407,660 1,863,743
As-reported EWC
average total
revenue per MWh (G)/(F) 48.54 53.47 53.60 63.75
Adjusted EWC average
total revenue per
MWh [(G-H)/(F)] 48.19 53.11 53.22 63.37
EWC nuclear billed
sales (GWh) (J) 9,125 9,950 26,298 29,618
As-reported EWC
nuclear average
total revenue per
MWh (I)/(J) 50.41 53.66 53.96 63.34
Adjusted EWC nuclear
average total
revenue per MWh [(I-H)/(J)] 49.99 53.24 53.53 62.93
VY operational non-
fuel O&M (K) 40,388 115,203
VY operating revenue (L) 47,824 262,312
VY billed sales (M) 1,310 3,953
Operational EWC non- [(D-E)-
fuel O&M per MWh (K)]/[(F)-(M)]
excluding VY 24.44 24.67
Adjusted EWC average [(G-H)-
total revenue per (L)]/(F)-(M)]
MWh excluding VY 55.28 62.97
Adjusted EWC nuclear [(I-H)-
average total (L)]/(J)-(M)]
revenue per MWh
excluding VY 55.78 62.40
-------------------- -------------- ----- -----
Totals may not foot due
to rounding
Appendix 7-2: Reconciliation of GAAP to Non-GAAP Financial Measures - ROE, ROIC
Metrics
-------------------------------------------------------------------------------
($ in millions) Third Quarter
-------------
2015 2014
---- ----
As-reported net
income (loss)
attributable to
Entergy Corporation,
rolling 12 months (A) (156) 968
Preferred dividends 19 19
Tax effected interest
expense 396 383
--- ---
As-reported net
income attributable
to Entergy
Corporation, rolling
12 months adjusted
for preferred
dividends and tax
effected interest
expense (B) 259 1,370
Special items, rolling
12 months (21) (52)
Pilgrim/FitzPatrick
asset impairments and
related write-offs (1,063) -
Decision to close VY (1) (74)
HCM implementation
expenses - (1)
Total special items,
rolling 12 months (C) (1,085) (127)
Operational earnings,
rolling 12 months
adjusted for
preferred dividends
and tax effected
interest expense (B-C) 1,344 1,497
Operational earnings,
rolling 12 months (A-C) 929 1,095
Average invested
capital (D) 23,819 23,720
Average common equity (E) 9,653 9,779
ROIC - as-reported % (B/D) 1.1 5.8
ROIC - operational % [(B-C)/D] 5.6 6.3
ROE - as-reported % (A/E) (1.6) 9.9
ROE - operational % [(A-C)/E] 9.6 11.2
------------------ --------- --- ----
Totals may not foot due
to rounding
Appendix 7-3: Reconciliation of GAAP to Non-GAAP Financial Measures
- Credit and Liquidity Metrics
-------------------------------------------------------------------
($
in
millions) Third Quarter
-------------
2015 2014
---- ----
Total
debt (A) 14,144 13,673
Less
securitization
debt (B) 814 814
--- ---
Total
debt,
excluding
securitization
debt (C) 13,330 12,859
Less
cash
and
cash
equivalents (D) 1,041 1,069
----- -----
Net
debt,
excluding
securitization
debt (E) 12,289 11,790
Total
capitalization (F) 23,512 24,127
Less
securitization
debt (B) 814 814
--- ---
Total
capitalization,
excluding
securitization
debt (G) 22,698 23,313
Less
cash
and
cash
equivalents (D) 1,041 1,069
----- -----
Net
capital,
excluding
securitization
debt (H) 21,657 22,244
Debt
to
capital
ratio
% (A/F) 60.2 56.7
Debt
to
capital
ratio,
excluding
securitization
debt
% (C/G) 58.7 55.2
Net
debt
to
net
capital
ratio,
excluding
securitization
debt
% (E/H) 56.7 53.0
Revolver
capacity (I) 3,869 3,975
Gross
liquidity (D+I) 4,910 5,044
Entergy
Corporation
notes:
Due
July
2022 650 -
Due
September
2015 - 550
Due
January
2017 500 500
Due
September
2020 450 450
--- ---
Total
parent
long-
term
debt (J) 1,600 1,500
Revolver
draw (K) 525 245
Commercial
paper (L) 664 776
--- ---
Total
parent
debt (J)+(K)+(L) 2,789 2,521
Parent
debt
to
total
debt
ratio,
excluding
securitization
debt
% [((J)+(K)+(L))/(C)] 20.9% 19.6%
--------------- ----------------- ---- ----
Appendix 7-3: Reconciliation of GAAP to Non-GAAP Financial Measures -
Credit and Liquidity Metrics (continued)
---------------------------------------------------------------------
($ in
millions) Third Quarter
-------------
2015 2014
---- ----
Total debt (A) 14,144 13,673
Less
securitization
debt (B) 814 814
--- ---
Total debt,
excluding
securitization
debt (C) 13,330 12,859
As-
reported
consolidated
net income
(loss),
rolling 12
months (156) 968
Add back:
interest
expense,
rolling 12
months 644 623
Add back:
income tax
expense,
rolling 12
months (35) 519
Add back:
depreciation
and
amortization,
rolling 12
months 1,333 1,330
Add back:
regulatory
charges
(credits),
rolling 12
months 29 16
Subtract:
securitization
proceeds,
rolling 12
months 134 132
Subtract:
interest
and
investment
income,
rolling 12
months 186 206
Subtract:
AFUDC -
equity
funds,
rolling 12
months 56 66
Add back:
decommissioning
expense,
rolling 12
months 279 264
--- ---
Adjusted
EBITDA,
rolling 12
months (D) 1,718 3,316
Add back:
special
item for
transmission
business
spin-
merge
expenses,
rolling 12
months
(pre-tax) - 6
Add back:
special
item for
HCM
implementation
expenses,
rolling 12
months
(pre-tax) 3 55
Add back:
special
item
resulting
from
decision
to close
VY,
rolling 12
months
(pre-tax) 31 186
Add back:
special
item for
Pilgrim/
FitzPatrick
asset
impairments
and
related
write-
offs 1,642 -
----- ---
Operational
adjusted
EBITDA,
rolling 12
months (E) 3,394 3,563
Debt to
operational
adjusted
EBITDA,
excluding
securitization
debt (C)/(E) 3.9 3.6
Net cash
flow
provided
by
operating
activities,
rolling 12
months (F) 3,348 3,881
AFUDC
borrowed
funds used
during
construction,
rolling 12
months (G) (29) (31)
Working
capital
items in
net cash
flow
provided
by
operating
activities,
rolling 12
months:
Receivables (5) (26)
Fuel
inventory (34) 18
Accounts
payable (63) 135
Prepaid
taxes and
taxes
accrued 25 (117)
Interest
accrued (5) 18
Other
working
capital
accounts (17) 11
Securitization
regulatory
charge 104 99
--- ---
Total (H) 5 138
FFO,
rolling 12
months (F)+(G)-(H) 3,314 3,712
Add back:
special
item for
transmission
business
spin-
merge
expenses,
rolling 12
months
(pre-tax) 8
Add back:
special
item for
HCM
implementation
expenses,
rolling 12
months
(pre-tax) 11 52
Add back:
special
item
resulting
from
decision
to close
VY,
rolling 12
months
(pre-tax) 56 8
--- ---
Operational
FFO,
rolling 12
months (I) 3,381 3,780
Operational
FFO to debt
ratio,
excluding
securitization
debt % (I)/(C) 25.4% 29.4%
--------------- ------- ---- ----
Totals may not foot due
to rounding
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SOURCE Entergy Corporation
