ENTERGY CORPORATION NEW ORLEANS, Aug. 2, 2016 /PRNewswire/ -- Entergy Corporation (NYSE: ETR) reported second quarter 2016 earnings per share of $3.16 on an as-reported basis and $3.11 on an operational basis.
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Consolidated Earnings (GAAP and Non-GAAP Measures)
Second Quarter 2016 (See Appendix A and Appendix C for reconciliation of GAAP to
non-GAAP measures and description of special items)
--------------------------------------------------------------------------------
(Per share in $)
Utility, Parent &
Other EWC Consolidated
------------------ --- ------------
As-Reported 1.77 1.39 3.16
Specials - 0.05 0.05
--- ---- ----
Operational 1.77 1.34 3.11
Included in As-Reported and Operational:
Weather (0.09) - (0.09)
Income Taxes,
Net of
Sharing 0.68 1.33 2.01
Utility,
Parent &
Other
Adjusted 1.18
"We delivered solid results through the first half of the year, and we continue to make progress toward meeting our objective of steady, predictable growth at the Utility while reducing our EWC footprint," said Entergy chairman and chief executive officer Leo Denault. "As-reported earnings for both businesses were higher than expected, with Utility, Parent & Other Adjusted earnings substantially higher than last year and in line with our growth expectations for our core business. We are confident we can deliver on our 2016 commitments, as well as our Utility, Parent & Other long-term outlook."
Business highlights included the following:
-- Entergy updated its consolidated operational EPS guidance range.
-- Self-build resources were selected in ELL and ETI RFPs, as well as a PPA
for ELL.
-- EAI filed its first forward test year FRP.
-- The PUCT approved ETI's TCRF.
-- Moody's Investors Service upgraded EMI to positive outlook.
Consolidated Earnings (GAAP and Non-GAAP Measures)
Second Quarter and Year-to-Date 2016 vs. 2015 (See Appendix A for reconciliation of GAAP to non-GAAP measures and description of
special items)
--------------------------------------------------------------------------------------------------------------------------------
Second Quarter Year-to-Date
-------------- ------------
2016 2015 Change 2016 2015 Change
---- ---- ------ ---- ---- ------
As-Reported
Earnings ($
in millions) 567.3 148.8 418.5 797.3 446.9 350.4
Less Special
Items 9.6 (1.1) 10.7 (3.3) (5.7) 2.4
--- ---- ---- ---- ---- ---
Operational
Earnings 557.7 149.9 407.8 800.6 452.6 348.0
Weather Impact (16.3) (2.9) (13.4) (41.8) 11.4 (53.2)
As-Reported
Earnings (per
share in $) 3.16 0.83 2.33 4.45 2.48 1.97
Less: Special
Items 0.05 - 0.05 (0.02) (0.03) 0.01
---- --- ---- ----- ----- ----
Operational
Earnings 3.11 0.83 2.28 4.47 2.51 1.96
Weather Impact (0.09) (0.02) (0.07) (0.23) 0.06 (0.29)
Totals may not foot due
to rounding
Consolidated Results
Second quarter 2016 EPS were $3.16 on an as-reported basis and $3.11 on an operational basis, compared to second quarter 2015 as-reported and operational EPS of 83 cents. Current period results were favorably impacted by income tax items, which resulted from resolution of previous positions at Utility, as well as a tax election at EWC. Summary discussions by business are below.
Additional details, including information on operating cash flow by business, are provided in Appendix A and a comprehensive analysis of quarterly and year-to-date variances is provided in Appendix B.
Utility, Parent & Other Results
For second quarter 2016, Utility, Parent and Other EPS were $1.77 on an as-reported basis and $1.18 on an adjusted basis. In comparison, second quarter 2015 as-reported EPS were 85 cents and adjusted EPS were 87 cents. The current period results reflected growth in the Utility business, including effects of new rate actions that recover investments and improve returns, as well as income tax items recorded during the quarter.
Utility, Parent & Other second quarter 2016 results included income tax items for resolution of previous positions, which drove 68 cents EPS for income taxes, net of a reserve of approximately 6 cents for guaranteed customer sharing. Weather was milder than normal in both the current and prior periods, with the earnings effect more negative in second quarter 2016 compared to 2015.
Net revenue increased quarter-over-quarter driven by the Union acquisition and EAI's 2015 rate case. Revenue increases for the Union acquisition included amounts to recover operating expenses for the asset. Industrial sales growth also contributed to the increase in net revenue.
Industrial sales were higher on continued growth for new and expansion customers as well as higher sales to existing customers. New and expansion customers across several sectors continued to operate, ramp up and come online. For existing customers, petroleum refiners comprised the majority of that increase as they continued to operate at high capacity levels compared to last year and.
Utility non-fuel O&M was lower than second quarter 2015 due partly to lower pension and OPEB expenses. Fossil spending was also lower due to outage scope, partially offset by spending for Union, which was acquired earlier this year.
Appendix C contains additional details on Utility financial and operational measures, including a schedule of Utility, Parent & Other Adjusted EPS calculations which exclude special items and weather and normalizes income taxes.
Entergy Wholesale Commodities Results
EWC earned $1.39 per share on an as-reported basis and $1.34 per share on an operational basis for second quarter 2016. EWC recorded a 2 cents per share loss in second quarter 2015 on both an as-reported basis and an operational basis.
The EWC quarter-over-quarter increase was due largely to income tax items recorded in the current quarter, which increased EPS $1.33. Current quarter results were also affected by 2015 impairments, which reduced fuel, non-fuel O&M and depreciation expenses, as well as spent nuclear fuel litigation proceeds (a portion of which was considered "special" as discussed below). Conversely, net revenue declined as a result of lower energy and capacity prices as well as lower volume which resulted from the extended refueling outage at Indian Point 2.
EWC second quarter 2016 as-reported EPS included 5 cents for special items resulting from the decisions to close certain nuclear plants. These special items included 12 cents for a portion of litigation proceeds received from the DOE in connection with capitalized spent nuclear fuel storage costs that were previously impaired and written off, partially offset by 7 cents for severance and retention costs and capital that was expensed because the plants are impaired.
Appendix D contains additional details on EWC financial and operational measures, including a schedule of EWC Operational Adjusted EBITDA calculations.
Earnings Guidance
Entergy updated its 2016 operational guidance to be $6.60 to $7.40 per share and affirmed its Utility, Parent & Other Adjusted EPS guidance range of $4.20 to $4.50. The updated guidance range for Entergy includes tax benefits recorded in second quarter 2016, year-to-date weather, the extended outage at Indian Point 2 and lower commodity prices. See webcast presentation slides for additional details.
The company has provided 2016 earnings guidance with regard to the non-GAAP measures operational earnings per share and Utility, Parent and Other Adjusted EPS. These measures exclude from the corresponding GAAP financial measures the effect of special items, which are non-routine items, such as impairment charges, gains or losses on asset sales, and other gains or losses occurring as a result of strategic decisions such as the company's recent decisions to shut down certain of its nuclear plants. Consistent with SEC rules, the company has not provided a reconciliation of such non-GAAP guidance to guidance presented on a GAAP basis because it cannot reasonably estimate all of the special items that may occur for the periods presented. The company's current estimate for special items in 2016 relates to the decisions to close certain nuclear plants and for DOE litigation awards for those plants; those anticipated special items total approximately 35 cents per share. Other special items may occur during the periods presented, the impact of which cannot reasonably be estimated at this time.
Earnings Teleconference
A teleconference will be held at 10 a.m. CT on Tuesday, August 2, 2016, to discuss Entergy's second quarter 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 85416349, no more than 15 minutes prior to the start of the call. The webcast slide presentation is 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 August 9, 2016, by dialing (855) 859-2056, conference ID 85416349. This release and the webcast slide presentation 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. Entergy delivers electricity to 2.8 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of approximately $11.5 billion and more than 13,000 employees.
Entergy Corporation's common stock is listed on the New York and Chicago exchanges under the symbol "ETR."
Details regarding Entergy's results of operations, regulatory proceedings and other matters are available in this earnings release, a copy of which will be filed with the SEC, and the webcast slide presentation. Both documents 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 2016 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 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 and Appendix G.
Second Quarter 2016 Earnings Release Appendices and Financial Statements
Appendices
Seven appendices are presented in this section as follows:
-- Appendix A: Consolidated Results and Special Items
-- Appendix B: Variance Analysis
-- Appendix C: Utility Financial and Operational Measures
-- Appendix D: EWC Financial and Operational Measures
-- Appendix E: Consolidated Financial Performance Measures
-- Appendix F: Definitions, Abbreviations and Acronyms
-- Appendix G: GAAP to Non-GAAP Reconciliations
Also included in this earnings release are:
-- Financial Statements
A: Consolidated Results and Special Items
Appendix A-1 provides a comparative summary of consolidated EPS for current quarter and year-to-date 2016 versus 2015, 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 2016 vs. 2015 (See Appendix A-3 and Appendix A-4 for details on special items)
(Per share in $)
Second Quarter Year-to-Date
-------------- ------------
2016 2015 Change 2016 2015 Change
---- ---- ------ ---- ---- ------
As-reported
Utility 2.09 1.11 0.98 3.18 2.35 0.83
Parent & Other (0.32) (0.26) (0.06) (0.57) (0.53) (0.04)
EWC 1.39 (0.02) 1.41 1.84 0.66 1.18
Consolidated as-
reported
earnings 3.16 0.83 2.33 4.45 2.48 1.97
Less special items
Utility - - - - - -
Parent & Other - - - - - -
EWC 0.05 - 0.05 (0.02) (0.03) 0.01
---- --- ---- ----- ----- ----
Consolidated
special items 0.05 - 0.05 (0.02) (0.03) 0.01
Operational
Utility 2.09 1.11 0.98 3.18 2.35 0.83
Parent & Other (0.32) (0.26) (0.06) (0.57) (0.53) (0.04)
EWC 1.34 (0.02) 1.36 1.86 0.69 1.17
---- ----- ---- ---- ---- ----
Consolidated
operational
earnings 3.11 0.83 2.28 4.47 2.51 1.96
Weather impact (0.09) (0.02) (0.07) (0.23) 0.06 (0.29)
See Appendix B for detailed earnings variance analysis.
Appendix A-2 provides the components of OCF contributed by each business for current quarter and year-to-date 2016 versus 2015.
Appendix A-2: Consolidated Operating Cash Flow
Second Quarter and Year-to-Date 2016 vs. 2015
---------------------------------------------
($ in millions)
Second Quarter Year-to-Date
-------------- ------------
2016 2015 Change 2016 2015 Change
---- ---- ------ ---- ---- ------
Utility 690 762 (72) 1,149 1,216 (67)
Parent
&
Other (47) (43) (4) (109) (94) (15)
EWC 76 8 68 212 216 (4)
--- --- --- --- --- ---
Total
Operating
Cash
Flow 719 727 (8) 1,252 1,338 (86)
Totals may not foot due
to rounding
The quarter-over-quarter decrease in OCF was not significant. Intercompany income tax payments contributed to the line of business variances.
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 earnings consistent with GAAP, but are excluded from operational earnings. 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 2016 vs. 2015
---------------------------------------------
(After-tax, per share in $)
Second Quarter Year-to-Date
-------------- ------------
2016 2015 Change 2016 2015 Change
---- ---- ------ ---- ---- ------
EWC
Decisions to
close VY,
FitzPatrick and
Pilgrim (0.07) - (0.07) (0.14) (0.03) (0.11)
DOE litigation
awards for VY
and FitzPatrick 0.12 - 0.12 0.12 - 0.12
Total EWC 0.05 - 0.05 (0.02) (0.03) 0.01
Total special
items 0.05 - 0.05 (0.02) (0.03) 0.01
Appendix A-4: Special Items by Income Statement Line Item (shown as positive/(negative) impact on earnings)
Second Quarter and Year-to-Date 2016 vs. 2015
---------------------------------------------
(Pre-tax except for Income taxes - other and Total, $ in millions)
Second Quarter Year-to-Date
-------------- ------------
2016 2015 Change 2016 2015 Change
---- ---- ------ ---- ---- ------
EWC
Non-fuel O&M 22.7 (1.6) 24.3 11.2 (9.1) 20.3
Taxes other than
income taxes (0.9) - (0.9) (1.9) 0.3 (2.2)
Asset write-off
and impairments (7.0) - (7.0) (14.3) - (14.3)
Income taxes -
other (5.2) 0.6 (5.8) 1.8 3.0 (1.2)
---- --- ---- --- --- ----
Total EWC 9.6 (1.1) 10.7 (3.3) (5.7) 2.4
Total Special
Items (after-
tax) 9.6 (1.1) 10.7 (3.3) (5.7) 2.4
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 2016 versus 2015 as-reported and operational earnings variance analysis for Utility, Parent & Other, EWC and Consolidated.
Appendix B-1: As-Reported and Operational EPS Variance Analysis
Second Quarter 2016 vs. 2015
----------------------------
(After-tax, per share in $, sorted in consolidated operational column, most to least favorable)
Utility Parent & Other EWC Consolidated
As-Reported Opera-tional As-Reported Opera-tional As- Reported Opera-tional As- Reported Opera-tional
----------- ------------ ----------- ------------ ------------ ------------ ------------ ------------
2015 earnings 1.11 1.11 (0.26) (0.26) (0.02) (0.02) 0.83 0.83
Income taxes - other 0.79 0.79 (a) (0.04) (0.04) 1.33 1.33 (b) 2.08 2.08
Non-fuel O&M 0.09 0.09 (c) (0.01) (0.01) 0.22 0.14 (d) 0.30 0.22
Other income (deductions)-other 0.05 0.05 (e) - - 0.01 0.01 0.06 0.06
Taxes other than income taxes (0.01) (0.01) - - 0.04 0.04 0.03 0.03
Depreciation/amortization expense (0.04) (0.04) - - 0.06 0.06 (f) 0.02 0.02
Share effect 0.01 0.01 - - - - 0.01 0.01
Asset write-offs and impairments - - - - (0.03) - (0.03) -
Decommissioning expense (0.01) (0.01) - - (0.02) (0.02) (0.03) (0.03)
Interest expense and other charges (0.03) (0.03) (0.01) (0.01) - - (0.04) (0.04)
Net revenue 0.13 0.13 (g) - - (0.20) (0.20) (h) (0.07) (0.07)
2016 earnings 2.09 2.09 (0.32) (0.32) 1.39 1.34 3.16 3.11
---- ---- ----- ----- ---- ---- ---- ----
Appendix B-2: As-Reported and Operational EPS Variance Analysis
Year-to-Date 2016 vs. 2015
--------------------------
(After-tax, per share in $, sorted in consolidated operational column, most to least favorable)
Utility Parent & Other EWC Consolidated
As-Reported Opera-tional As-Reported Opera-tional As- Reported Opera-tional As- Reported Opera-tional
----------- ------------ ----------- ------------ ------------ ------------ ------------ ------------
2015 earnings 2.35 2.35 (0.53) (0.53) 0.66 0.69 2.48 2.51
Income taxes - other 0.66 0.66 (a) - - 1.30 1.30 (b) 1.96 1.96
Non-fuel O&M 0.22 0.22 (c) (0.01) (0.01) 0.28 0.21 (d) 0.49 0.42
Taxes other than income taxes 0.02 0.02 - - 0.03 0.04 0.05 0.06
Share effect 0.02 0.02 - - 0.01 0.01 0.03 0.03
Depreciation/amortization expense (0.07) (0.07) (i) - - 0.08 0.08 (f) 0.01 0.01
Asset write-offs and impairments - - - - (0.05) - (j) (0.05) -
Decommissioning expense (0.01) (0.01) - - (0.01) (0.01) (0.02) (0.02)
Other income (deductions)-other 0.02 0.02 (0.01) (0.01) (0.06) (0.06) (k) (0.05) (0.05)
Interest expense and other charges (0.03) (0.03) (0.02) (0.02) - - (0.05) (0.05)
Net revenue - - - - (0.40) (0.40) (h) (0.40) (0.40)
2016 earnings 3.18 3.18 (0.57) (0.57) 1.84 1.86 4.45 4.47
---- ---- ----- ----- ---- ---- ---- ----
See appendix in the webcast slide presentation for additional details on EWC line item variances.
(a) The current quarter and year-to-date
increases were due largely to the
reversal of a portion of the provision
for uncertain tax positions totaling
$136 million for two previous positions
that were resolved in the 2010-2011
tax audit. This was partly offset by
customer sharing recorded as a
regulatory charge ($16 million pre-
tax, included in net revenue). The
year-to-date variance also reflected
a first quarter 2015 reversal of a
portion of the provision for uncertain
tax provisions related to interest
accrual of approximately $24 million.
(b) The current quarter and year-to-date
increases were attributable largely to
a tax election which reduced income tax
expense $238 million.
(c) The current quarter and year-to-date
increases reflected lower pension and
OPEB expenses stemming partly from a
higher discount rate and lower fossil
spending due to lower scope of work for
outage activity. The expense decreases
were partially offset by the Union
acquisition (offset in net revenue).
The year-to-date variance also
reflected a deferral recorded at EAI in
first quarter 2016, expenses in second
quarter 2015 related to the ELL
business combination and higher nuclear
generation spending in 2016 due
primarily to an increase in regulatory
compliance costs, an overall higher
scope of work done during plant outages
and higher nuclear labor costs,
including contract labor.
(d) The current quarter and year-to-date
increases reflected a reduction in
expense for litigation proceeds
received from the DOE in connection
with spent nuclear fuel storage costs
in second quarter 2016, a portion of
the amounts received for VY and
FitzPatrick (approximately 12 cents
EPS) was considered "special." Lower
refueling outage expense, largely as a
result of 2015 impairments, also
contributed to the increase. Partially
offsetting were higher expenses
resulting from the decisions to close
certain nuclear plants (these expenses
were also considered "special").
(e) The current quarter increase was due
largely to higher realized earnings on
nuclear decommissioning trust funds
(substantially offset in net revenue).
(f) The current quarter and year-to-date
increases resulted from 2015
impairments and recording the effects
of DOE litigation proceeds related to
spent nuclear fuel storage costs. These
items were partially offset by the sale
of RISEC.
(g) The current quarter increase was due
primarily to rate changes associated
with the Union acquisition, EAI's 2015
rate case and industrial sales growth.
Higher volume in the unbilled period
also contributed. Partially offsetting
the increase was a $16 million (pre-
tax) reserve for the portion of tax
benefit noted above to be shared with
customers. The effect of weather was
more unfavorable in the current period
than a year ago.
(h) The current quarter and year-to-date
decreases were driven by lower energy
and capacity pricing for nuclear
assets. Volume from nuclear assets was
also lower due largely to the extended
Indian Point 2 refueling outage. The
sale of RISEC facility in December 2015
also contributed to the decline. These
decreases were partially offset by
lower nuclear fuel expense (due largely
to 2015 impairments).
(i) The year-to-date decrease was due
primarily to additions to plant,
including the Union acquisition in
March 2016.
(j) The year-to-date decrease is
attributable to capital that is
recorded as non-fuel O&M for nuclear
plants that have closed or are
identified to close.
(k) The year-to-date decrease was due
largely to realized earnings from
decommissioning trusts in 2015 from
rebalancing of VY's decommissioning
trust.
Utility As-Reported Net Revenue
Variance Analysis
2016 vs. 2015 ($ EPS)
--------------------
Second Year-to-
Quarter
Date
----
Weather (0.07) (0.29)
Sales growth/pricing 0.29 0.43
Other (0.09) (0.14)
----- -----
Total 0.13 -
----- ---- ---
C: Utility Financial and Operational Measures
Appendix C-1 provides a comparative summary of Utility, Parent & Other Adjusted EPS, which excludes the effects of special items and weather and normalizes income tax expense.
Appendix C-1: Utility, Parent & Other Adjusted EPS - Reconciliation of GAAP to Non-GAAP Measures
Second Quarter and Year-to-Date 2016 vs. 2015 (See Appendix A for details on special items)
------------------------------------------------------------------------------------------
(Per
share in
$) Second Quarter Year-to-Date
-------------- ------------
2016 2015 Change 2016 2015 Change
---- ---- ------ ---- ---- ------
As-
reported
earnings 1.77 0.85 0.92 2.61 1.82 0.79
Less:
Special
items - - - - - -
Weather (0.09) (0.02) (0.07) (0.23) 0.06 (0.29)
Income
taxes,
net of
sharing
(l) 0.68 - 0.68 0.71 0.13 0.58
---- --- ---- ---- ---- ----
Adjusted
EPS 1.18 0.87 0.31 2.13 1.63 0.50
(l) Tax items recorded in
second quarter 2016 are
net of the reserve
recorded for amounts to be
shared with customers
(reflected as a reduction
in net revenue).
Appendix C-2 provides a comparative summary of Utility operational performance measures.
Appendix C-2: Utility Operational Performance Measures
Second Quarter and Year-to-Date 2016 vs. 2015 (See Appendix G for reconciliation of GAAP to non-GAAP measures)
-------------------------------------------------------------------------------------------------------------
Second Quarter Year-to-Date
-------------- ------------
2016 2015% % Weather 2016 2015% % Weather
Adjusted Adjusted
Change Change
--- --- ---
GWh billed
Residential 7,081 7,364 (3.8%) (0.6%) 15,218 16,796 (9.4%) (0.6%)
Commercial 6,777 6,904 (1.8%) (0.6%) 13,288 13,625 (2.5%) (1.2%)
Governmental 609 602 1.2% 1.8% 1,209 1,194 1.3% 1.5%
Industrial 11,509 10,737 7.2% 7.2% 22,564 21,144 6.7% 6.7%
------ ------ --- --- ------ ------ --- ---
Total retail sales 25,976 25,607 1.4% 2.7% 52,279 52,759 (0.9%) 2.2%
Wholesale 3,579 3,138 14.1% 6,719 4,949 35.8%
Total sales 29,555 28,745 2.8% 58,998 57,708 2.2%
Number of electric retail customers
Residential 2,448,934 2,430,698 0.8%
Commercial 352,615 348,337 1.2%
Governmental 17,641 17,487 0.9%
Industrial 46,752 45,892 1.9%
Total retail customers 2,865,942 2,842,414 0.8%
Net revenue ($
millions) 1,524 1,488 2.4% 2,899 2,898 -
As-reported non-fuel
O&M per MWh $20.80 $22.35 (6.9%) $19.69 $21.26 (7.4%)
Operational non-fuel
O&M per MWh $20.80 $22.35 (6.9%) $19.69 $21.26 (7.4%)
See appendix in the webcast slide presentation for information on select regulatory cases.
D: EWC Financial and Operational Measures
Appendix D-1 provides a comparative summary of EWC operational adjusted earnings before interest, taxes, depreciation and amortization.
Appendix D-1: EWC Operational Adjusted EBITDA - Reconciliation of GAAP to Non-GAAP Measures
Second Quarter and Year-to-Date 2016 vs. 2015
---------------------------------------------
($ in millions) Second Quarter Year-to-Date
-------------- ------------
2016 2015 Change 2016 2015 Change
---- ---- ------ ---- ---- ------
Net income 251 (4) 255 330 120 210
Add back: interest
expense 6 6 - 13 12 1
Add back: income tax
expense (235) (3) (232) (183) 67 (250)
Add back: depreciation
and amortization 46 64 (18) 102 126 (24)
Subtract: interest and
investment income 34 36 (2) 60 86 (26)
Add back: decommissioning
expense 39 33 6 70 68 2
--- --- --- --- --- ---
Adjusted EBITDA 73 60 13 272 307 (35)
Add back pre-tax special items for:
Decisions to close VY,
FitzPatrick and Pilgrim 19 2 17 39 9 30
DOE litigation awards for
VY and FitzPatrick (34) - (34) (34) - (34)
--- --- --- --- --- ---
Operational adjusted
EBITDA 58 62 (4) 277 315 (39)
Totals may not foot due
to rounding
Appendix D-2 provides a comparative summary of EWC operational performance measures.
Appendix D-2: EWC Operational Performance Measures
Second Quarter and Year-to-Date 2016 vs. 2015 (See Appendix G for reconciliation of GAAP to non-GAAP measures)
-------------------------------------------------------------------------------------------------------------
Second Quarter Year-to-Date
-------------- ------------
2016 2015 % Change 2016 2015 % Change
---- ---- -------- ---- ---- --------
Owned capacity
(MW) (m) 4,880 5,463 (10.7%) 4,880 5,463 (10.7%)
GWh billed 7,866 9,578 (17.9%) 17,112 19,170 (10.7%)
As-reported
average total
revenue per
MWh $43.74 $45.87 (4.6%) $50.62 $56.44 (10.3%)
Adjusted
average total
revenue per
MWh $43.32 $45.47 (4.7%) $50.22 $56.04 (10.4%)
Net revenue ($
millions) 293 350 (16.3%) 759 877 (13.5%)
As-reported
non-fuel O&M
per MWh $23.50 $25.97 (9.5%) $24.39 $25.93 (5.9%)
Operational
non-fuel O&M
per MWh $26.38 $25.80 2.2% $25.04 $25.46 (1.6%)
EWC Nuclear Fleet
-----------------
Capacity
factor 76% 89% (14.6%) 83% 89% (6.7%)
GWh billed 7,308 8,555 (14.6%) 15,996 17,173 (6.9%)
As-reported
average total
revenue per
MWh $43.52 $45.84 (5.1%) $51.07 $55.85 (8.6%)
Adjusted
average total
revenue per
MWh $43.06 $45.40 (5.2%) $50.65 $55.41 (8.6%)
Production
cost per MWh $23.06 $26.21 (12.0%) $22.44 $25.91 (13.4%)
Net revenue ($
millions) 290 336 (13.7%) 754 847 (11.0%)
Refueling outage days
Indian Point 2 77 - 102 -
Indian Point 3 - - - 23
Pilgrim - 34 - 34
(m) Second quarter and year-
to-date 2016 exclude
RISEC (583 MW) that was
sold in December 2015.
See appendix in the webcast slide presentation for EWC hedging and price disclosures.
E: Consolidated Financial Performance Measures
Appendix E 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.
Appendix E: GAAP and Non-GAAP Financial Performance Measures
Second Quarter 2016 vs. 2015 (See Appendix G for reconciliation of GAAP to non-GAAP
measures)
-----------------------------------------------------------------------------------
For
12
months
ending
June
30 2016 2015 Change
---- ---- ------
GAAP Measures
ROIC
-
as-
reported 2.4% 5.0% (2.6%)
ROE
-
as-
reported 1.7% 7.9% (6.2%)
Book
value
per
share $54.54 $56.58 ($2.04)
End
of
period
shares
outstanding
(millions) 178.9 179.5 (0.6)
Non-GAAP Measures
ROIC
-
operational 7.5% 5.4% 2.1%
ROE
-
operational 14.3% 8.8% 5.5%
As of June 30 ($ in
millions)
GAAP Measures
Cash
and
cash
equivalents 996 910 86
Revolver
capacity 4,173 4,158 15
Commercial
paper
outstanding 853 895 (42)
Total
debt 14,837 13,858 979
Securitization
debt 716 734 (18)
Debt
to
capital
ratio 59.6% 57.0% 2.6%
Off-balance sheet
liabilities:
Debt
of
joint
ventures
-
Entergy's
share 76 80 (4)
Leases
-
Entergy's
share 359 422 (63)
Power
purchase
agreements
accounted
for
as
leases 195 224 (29)
--- --- ---
Total
off-
balance
sheet
liabilities 630 726 (96)
Non-GAAP Measures
Debt
to
capital
ratio,
excluding
securitization
debt 58.4% 55.6% 2.8%
Gross
liquidity 5,169 5,068 101
Net
debt
to
net
capital
ratio,
excluding
securitization
debt 56.6% 53.9% 2.7%
Parent
debt
to
total
debt
ratio,
excluding
securitization
debt 19.1% 20.3% (1.2%)
Debt
to
operational
adjusted
EBITDA,
excluding
securitization
debt 4.4x 3.9x 0.5x
Operational
FFO
to
debt
ratio,
excluding
securitization
debt 21.1% 28.4% (7.3%)
F: Definitions, Abbreviations and Acronyms
Appendix F-1 provides definitions of certain operational performance measures, as well as GAAP and non-GAAP financial measures. Non-GAAP measures 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 As-reported revenue per MWh billed
average total (does not include revenue from
revenue per MWh investments in wind generation that
is accounted for under the equity
method of accounting)
Adjusted average As-reported average total revenue
total revenue per MWh, excluding revenue from the
per MWh amortization of the Palisades
below-market PPA
Average revenue Revenue on a per unit basis at which
under contract capacity is expected to be sold to
per kW-month third parties, given existing
(applies to contract prices and/or auction
capacity awards
contracts only)
Average revenue Revenue on a per unit basis at which
per MWh on generation output reflected in
contracted contracts is expected to be sold to
volumes 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 A contract for the sale of installed
and energy capacity and related energy, priced
contracts per MWh sold
Capacity A contract for the sale of the
contracts 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 Total energy and capacity revenue on
and market a per unit basis at which total
total revenue planned generation output and
per MWh 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 and financially-settled
instruments (does not include
amounts from investments in wind
generation that are accounted for
under the equity method of
accounting)
Appendix F-1: Definitions
-------------------------
EWC Operational Performance Measures (continued)
-----------------------------------------------
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 (does not
include amounts from investments in
wind generation that are accounted
for under the equity method of
accounting)
Non-fuel O&M
per MWh Non-fuel O&M per MWh billed
Offsetting Transactions for the purchase of
positions energy, generally to offset a Firm
LD transaction
Owned capacity Installed capacity owned and
(MW) operated by EWC, including
investments in wind generation
accounted for under the equity
method of accounting; RISEC (non-
nuclear) was sold on Dec. 17, 2015
Percent of Percent of planned qualified
capacity sold capacity sold to mitigate price
forward uncertainty under physical or
financial transactions
Percent of Percent of planned generation output
planned sold or purchased forward under
generation contracts, forward physical
under contract 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 Amount of installed capacity to
in operation generate power and/or sell
capacity, assuming intent to
shutdown Pilgrim on May 31, 2019
and FitzPatrick on Jan. 27, 2017
Planned TWh of Amount of output expected to be
generation generated by EWC resources
considering plant operating
characteristics and outage
schedules, assuming intent to
shutdown Pilgrim on May 31, 2019
and FitzPatrick on Jan. 27, 2017,
uninterrupted normal plant
operation and timely renewal of
plant operating licenses at IPEC
Production cost Fuel and non-fuel O&M expenses
per MWh according to accounting standards
that directly relate to the
production of electricity per MWh
(based on net generation),
excluding special items
Refueling outage Number of days lost for scheduled
days refueling outage during the period
Unit-contingent 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
as an availability guarantee
Financial Measures - GAAP
-------------------------
Book value per End of period
share common equity
divided by
end of period
shares
outstanding
Debt of joint Entergy's
ventures - share of debt
Entergy's share issued by
business
joint
ventures at
EWC
Debt to capital Total debt
ratio divided by
total
capitalization
Leases - Operating
Entergy's share leases held
by
subsidiaries
capitalized
at implicit
interest rate
Revolver Amount of
capacity undrawn
capacity
remaining on
corporate and
subsidiary
revolvers,
including
Entergy
Nuclear
Vermont
Yankee
ROIC - as- 12-months
reported rolling net
income
attributable
to Entergy
Corp.
adjusted for
preferred
dividends and
tax-effected
interest
expense
divided by
average
invested
capital
ROE - as- 12-months
reported rolling net
income
attributable
to Entergy
Corp. 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
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
Appendix F-1: Definitions
-------------------------
Financial Measures - Non-GAAP
-----------------------------
Adjusted EBITDA Earnings before interest, depreciation
and amortization and income taxes
excluding decommissioning expense; for
Entergy consolidated, also excludes
AFUDC-equity funds and subtracts
securitization proceeds
Adjusted EPS As-reported EPS excluding special items
and weather and normalizing for income
tax
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 EPS As-reported EPS 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 attributable to Entergy Corp.
adjusted for preferred dividends and
tax-effected interest expense divided
by average invested capital
ROE - operational 12-months rolling operational net income
attributable to Entergy Corp. divided
by average common equity
Appendix F-2 explains abbreviations and acronyms used in the quarterly earnings materials.
Appendix F-2: Abbreviations and Acronyms
----------------------------------------
AFUDC- Allowance for borrowed funds used
during LTM Last twelve months
borrowed
funds Construction
MISO Midcontinent Independent System Operator, Inc.
AFUDC- Allowance for equity funds used
during MPSC Mississippi Public Service Commission
equity funds Construction
MTEP MISO Transmission Expansion Planning
ADIT Accumulated deferred income taxes NEPOOL New England Power Pool
ANO Arkansas Nuclear One (nuclear) Ninemile 6 Ninemile Point Unit 6
APSC Arkansas Public Service Commission NOAA National Oceanic and Atmosphere Administration
BP Basis point Non-fuel O&M Non-fuel operation and maintenance expense
CCGT Combined cycle gas turbine NRC Nuclear Regulatory Commission
CCNO Council of the City of New Orleans,
Louisiana NYISO New York Independent System Operator, Inc.
COD Commercial operation date NYS New York State
Cooper Cooper Nuclear Station NYSDEC New York State Department of Environmental
Conservation
CT Simple cycle combustion turbine
NYSDOS New York State Department of State
CZM Coastal zone management NYSE New York Stock Exchange
DCRF Distribution cost recovery factor
DOE U.S. Department of Energy O&M Operation and maintenance expense
EAI Entergy Arkansas, Inc. OCF Net cash flow provided by operating activities
EBITDA Earnings before interest, income
taxes, depreciation and
amortization OPEB Other post-employment benefits
EGSL Entergy Gulf States Louisiana,
L.L.C. Palisades Palisades Power Plant (nuclear)
ELL Entergy Louisiana, LLC Pilgrim Pilgrim Nuclear Power Station (nuclear)
EMI Entergy Mississippi, Inc. PPA Power purchase agreement or purchased power
agreement
ENOI Entergy New Orleans, Inc.
PUCT Public Utility Commission of Texas
ESI Entergy Services, Inc. RFP Request for proposal
EPS Earnings per share
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
Commission RPCE Rough production cost equalization
FFO Funds from operations RSP Rate Stabilization Plan (ELL Gas)
Firm LD Firm liquidated damages SEC U.S. Securities and Exchange Commission
FitzPatrick James A. FitzPatrick Nuclear Power
Plant (nuclear) SEMARI Southeast Massachusetts/Rhode Island
FRP Formula rate plan SERI System Energy Resources, Inc.
GAAP Generally accepted accounting
principles SPDES State Pollutant Discharge Elimination System
Grand Gulf Unit No. 1 of Grand Gulf Nuclear
Station (nuclear), 90% owned or
leased by System Energy
HCM Human Capital Management program SPP Southwest Power Pool
TCRF Transmission cost recovery factor
Indian Point Indian Point Energy Center Unit 2
2 (nuclear) Top Deer Top Deer Wind Ventures, LLC
Indian Point Indian Point Energy Center Unit 3
3 (nuclear) Union Union Power Station
IPEC Indian Point Energy Center
(nuclear) UP&O Utility, Parent & Other
ISES Independence Steam Electric Station
(coal) VY Vermont Yankee Nuclear Power Station (nuclear)
ISO Independent system operator WACC Weighted-average cost of capital
ISO-NE ISO New England WOTAB West of the Atchafalaya Basin
LHV Lower Hudson Valley WQC Water Quality Certification
LPSC Louisiana Public Service Commission YOY Year-over-year
G: GAAP to Non-GAAP Reconciliations
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
2016 2015 2016 2015
---- ---- ---- ----
Utility
-------
As-reported
Utility non-
fuel O&M (A) 614,820 642,538 1,161,402 1,226,839
Operational
Utility non-
fuel O&M (B) 614,820 642,538 1,161,402 1,226,839
Utility billed
sales (GWh) (C) 29,555 28,745 58,998 57,708
As-reported
Utility non-
fuel O&M per
MWh (A/C) 20.80 22.35 19.69 21.26
Operational
Utility non-
fuel O&M per
MWh (B/C) 20.80 22.35 19.69 21.26
EWC
---
As-reported
EWC non-fuel
O&M (D) 184,820 248,738 417,285 497,063
Special Items
included in
non-fuel O&M:
Decisions to
close VY,
FitzPatrick
and Pilgrim 11,104 1,579 22,625 9,068
DOE litigation
awards for VY
and
FitzPatrick (33,823) - (33,823) -
Total special
items included
in non-fuel
O&M (E) (22,719) 1,579 (11,198) 9,068
Operational EWC
non-fuel O&M (D-E) 207,539 247,159 428,483 487,995
EWC billed
sales (GWh) (F) 7,866 9,578 17,112 19,170
As-reported
EWC non-fuel
O&M per MWh (D/F) 23.50 25.97 24.39 25.93
Operational EWC
non-fuel O&M
per MWh [(D-E)/(F)] 26.38 25.80 25.04 25.46
As-reported
EWC operating
revenue (G) 344,110 439,306 866,189 1,081,896
Less Palisades
below-market
PPA
amortization (H) 3,364 3,800 6,728 7,600
Adjusted EWC
operating
revenue (G-H) 340,746 435,506 859,461 1,074,296
As-reported
EWC nuclear
operating
revenue (I) 318,031 392,188 816,932 959,096
Less Palisades
below-market
PPA
amortization (H) 3,364 3,800 6,728 7,600
Adjusted EWC
nuclear
operating
revenue (I-H) 314,667 388,388 810,204 951,496
As-reported
EWC average
total revenue
per MWh (G)/(F) 43.74 45.87 50.62 56.44
Adjusted EWC
average total
revenue per
MWh [(G-H)/(F)] 43.32 45.47 50.22 56.04
EWC nuclear
billed sales
(GWh) (J) 7,308 8,555 15,996 17,173
As-reported
EWC nuclear
average total
revenue per
MWh (I)/(J) 43.52 45.84 51.07 55.85
Adjusted EWC
nuclear
average total
revenue per
MWh [(I-H)/(J)] 43.06 45.40 50.65 55.41
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
--------------
2016 2015
---- ----
As-reported
net income
attributable
to Entergy
Corporation,
rolling 12
months (A) 174 797
Preferred
dividends 21 20
Tax effected
interest
expense 404 391
--- ---
As-reported
net income effected
attributable interest
to Entergy expense
Corporation,
rolling 12
months
adjusted for
preferred
dividends
and tax 599 1,208
Special items (B)
in prior
quarters (1,260) (95)
Decisions to
close VY,
FitzPatrick
and Pilgrim (12) (1)
DOE
litigation
awards for
VY and
FitzPatrick 22 -
Total special
items,
rolling 12
months (C) (1,250) (95)
Operational
earnings,
rolling 12
months
adjusted for
preferred
dividends
and tax
effected
interest
expense (B-C) 1,849 1,303
Operational
earnings,
rolling 12
months (A-C) 1,424 892
Average
invested
capital (D) 24,617 24,190
Average
common
equity (E) 9,958 10,110
ROIC - as-
reported (B/D) 2.4% 5.0%
ROIC -
operational [(B-C)/D] 7.5% 5.4%
ROE - as-
reported (A/E) 1.7% 7.9%
ROE -
operational [(A-C)/E] 14.3% 8.8%
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
--------------
2016 2015
---- ----
Total
debt (A) 14,837 13,858
Less
securitization
debt (B) 716 734
--- ---
Total
debt,
excluding
securitization
debt (C) 14,121 13,124
Less
cash
and
cash
equivalents (D) 996 910
--- ---
Net
debt,
excluding
securitization
debt (E) 13,125 12,214
Total
capitalization (F) 24,913 24,321
Less
securitization
debt (B) 716 734
--- ---
Total
capitalization,
excluding
securitization
debt (G) 24,197 23,587
Less
cash
and
cash
equivalents (D) 996 910
--- ---
Net
capital,
excluding
securitization
debt (H) 23,201 22,677
Debt
to
capital
ratio (A/F) 59.6% 57.0%
Debt
to
capital
ratio,
excluding
securitization
debt (C/G) 58.4% 55.6%
Net
debt
to
net
capital
ratio,
excluding
securitization
debt (E/H) 56.6% 53.9%
Revolver
capacity (I) 4,173 4,158
Gross
liquidity (D+I) 5,169 5,068
Entergy
Corporation
notes:
Due
September
2015 - 550
Due
January
2017 500 500
Due
September
2020 450 450
Due
July
2022 650 -
Total
parent
long-
term
debt (J) 1,600 1,500
Revolver
draw (K) 240 271
Commercial
paper (L) 853 895
--- ---
Total
parent
debt (J)+(K)+(L) 2,693 2,666
Parent
debt
to
total
debt
ratio,
excluding
securitization
debt
% [((J)+(K)+ 19.1% 20.3%
(L))/(C)]
Appendix G-3: Reconciliation of GAAP to Non-GAAP Financial Measures -
Credit and Liquidity Metrics (continued)
---------------------------------------------------------------------
($ in
millions) Second Quarter
--------------
2016 2015
---- ----
Total debt (A) 14,837 13,858
Less
securitization
debt (B) 716 734
--- ---
Total debt,
excluding
securitization
debt (C) 14,121 13,124
As-
reported
consolidated
net
income,
rolling 12
months 194 817
Add back:
interest
expense,
rolling 12
months 658 636
Add back:
income tax
expense,
rolling 12
months (1,002) 494
Add back:
depreciation
and
amortization,
rolling 12
months 1,335 1,331
Add back:
regulatory
charges
(credits),
rolling 12
months 185 10
Subtract:
securitization
proceeds,
rolling 12
months 137 130
Subtract:
interest
and
investment
income,
rolling 12
months 158 196
Subtract:
AFUDC-
equity
funds,
rolling 12
months 61 59
Add back:
decommissioning
expense,
rolling 12
months 287 278
--- ---
Adjusted
EBITDA,
rolling 12
months (D) 1,301 3,181
Add back:
special
item for
HCM
implementation
expenses,
rolling 12
months
(pre-tax) - 4
Add back:
special rolling 12
item months
resulting (pre-tax)
from
decisions
to close
VY,
FitzPatrick
and
Pilgrim, 1,688 143
Add back:
special
item for
DOE
litigation
awards for
VY and
FitzPatrick (34) -
Add back:
special months
item for (pre-tax)
Palisades
asset
impairment
and
related
write-
offs,
rolling 12 396 -
Add back:
special
item for
Top Deer
investment
impairment,
rolling 12
months
(pre-tax) 37 -
Add back:
special
item for
gain on
the sale
of RISEC,
rolling 12
months
(pre-tax) (154) -
Operational
adjusted
EBITDA,
rolling 12
months (E) 3,234 3,328
Debt to
operational
adjusted
EBITDA,
excluding
securitization
debt (C)/(E) 4.4 3.9
Net cash
flow
provided
by
operating
activities,
rolling 12
months (F) 3,205 3,699
AFUDC-
borrowed
funds used
during
construction,
rolling 12
months (G) (31) (30)
Working
capital
items in
net cash
flow
provided
by
operating
activities,
rolling 12
months:
Receivables 81 45
Fuel
inventory 1 (32)
Accounts
payable 15 (164)
Prepaid
taxes and
taxes
accrued 108 (43)
Interest
accrued (2) 5
Other
working
capital
accounts (111) 104
Securitization
regulatory
charge 107 99
--- ---
Total (H) 199 14
FFO,
rolling 12
months (F)+(G)-(H) 2,975 3,655
Add back:
special
item for
HCM
implementation
expenses,
rolling 12
months
(pre-tax) - 15
Add back:
special rolling 12
item months
resulting (pre-tax)
from
decisions
to close
VY,
FitzPatrick
and
Pilgrim, 6 57
Operational
FFO,
rolling 12
months (I) 2,981 3,727
Operational
FFO to debt
ratio,
excluding
securitization
debt (I)/(C) 21.1% 28.4%
Totals may not foot due
to rounding
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SOURCE Entergy Corporation
