ENTERGY CORPORATION NEW ORLEANS, Oct. 25, 2016 /PRNewswire/ -- Entergy Corporation (NYSE: ETR) reported third quarter 2016 earnings per share of $2.16 on an as-reported basis and $2.31 on an operational basis.
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"This quarter's solid results demonstrate our ability to execute on our strategy of steady, predictable growth at the Utility while reducing EWC's footprint," said Entergy chairman and chief executive officer Leo Denault. "The prudent decisions we are making for the benefit of our stakeholders to position the nuclear fleet for sustained operational excellence has near-term effects on our financial outlook. However, our 2019 outlook remains unchanged as we continue to execute on our growth objectives for Utility, Parent & Other earnings and corporate dividends."
Business highlights included the following:
-- ETI filed for certification to construct the Montgomery County Power
Station, an approximate 993 MW CCGT. This project was selected in ETI's
RFP.
-- Entergy reached an agreement to sell its EWC FitzPatrick nuclear power
plant. The transaction is expected to close in second quarter 2017.
-- EAI and ENOI made filings requesting approval of their advanced metering
infrastructure investment.
-- Standard & Poor's upgraded Entergy's system rating for Entergy and its
Utility operating companies by one notch to BBB+.
-- Entergy Corporation was named to the Dow Jones Sustainability North
America Index, one of four U.S. electric utility companies designated a
sustainability leader on the index.
Consolidated Earnings (GAAP and Non-GAAP Measures)
Third Quarter and Year-to-Date 2016 vs. 2015 (See Appendix A for reconciliation of GAAP to non-GAAP measures and description of special items)
---------------------------------------------------------------------------------------------------------------------------------------------
Third Quarter Year-to-Date
------------- ------------
2016 2015 Change 2016 2015 Change
---- ---- ------ ---- ---- ------
As-Reported
Earnings ($
millions) 388.2 (723.0) 1,111.2 1,185.4 (276.1) 1,461.6
Less Special
Items (27.5) (1,063.7) 1,036.2 (30.7) (1,069.4) 1,038.7
----- -------- ------- ----- -------- -------
Operational
Earnings 415.6 340.7 75.0 1,216.2 793.3 422.9
Estimated
Weather
Impact 33.8 29.3 4.5 (8.0) 40.7 (48.7)
As-Reported
Earnings (per
share in $) 2.16 (4.04) 6.20 6.60 (1.54) 8.14
Less Special
Items (0.15) (5.94) 5.79 (0.17) (5.96) 5.79
----- ----- ---- ----- ----- ----
Operational
Earnings 2.31 1.90 0.41 6.77 4.42 2.35
Estimated
Weather
Impact 0.18 0.16 0.02 (0.04) 0.23 (0.27)
Totals may not foot due
to rounding
Consolidated Results
Third quarter 2016 EPS were $2.16 on an as-reported basis and $2.31 on an operational basis, compared to a third quarter 2015 as-reported loss of $(4.04) per share and operational EPS of $1.90. Summary discussions by business are below.
Additional details, including information on OCF 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 third quarter 2016, Utility, Parent and Other EPS were $2.12 on an as-reported basis and $1.98 on an adjusted basis. In comparison, third quarter 2015 as-reported EPS were $1.72 and adjusted EPS were $1.56. The current period results reflected growth in the Utility business, including effects of new rate actions that recover investments and improve returns.
Net revenue increased quarter-over-quarter driven largely by the Union acquisition, EAI's rate case and EMI's FRP. Revenue increases for the Union acquisition included amounts to recover operating expenses for the assets.
Billed retail sales volume declined quarter-over-quarter. However, estimated volume in the unbilled period was higher than third quarter 2015.
The Utility saw growth from sales to new and expansion industrial customers as they continued to operate, ramp up and come online. However, as was expected, overall industrial sales were down quarter-over-quarter as volume from existing customers declined on lower sales to customers in the pulp and paper, industrial gases and chlor-alkali segments.
Utility non-fuel O&M was lower than third quarter 2015 due partly to lower pension and OPEB expenses. Vegetation expense also declined due to elevated spending in third quarter 2015.
Appendix C contains additional details on Utility financial and operational measures, including a schedule of Utility, Parent & Other Adjusted EPS which excludes special items and weather and normalizes income taxes.
Entergy Wholesale Commodities Results
EWC earned 4 cents per share on an as-reported basis and 19 cents per share on an operational basis for third quarter 2016. In third quarter 2015, EWC recorded an as-reported loss of $(5.76) per share and operational EPS of 18 cents.
The EWC quarter-over-quarter increase was due largely to expenses recorded in 2015 as a result of decisions to close Pilgrim and VY and to sell or close FitzPatrick nuclear plants. These expenses were considered special items and excluded from operational earnings.
Excluding the special items, EWC's results were essentially flat quarter-over-quarter. Fuel, non-fuel O&M (excluding the special items already discussed above) and depreciation expenses declined as a result of the 2015 impairments. Conversely, energy prices were lower and decommissioning expense increased due partly to the establishment of decommissioning liabilities for Indian Point 3 and FitzPatrick in 2016.
Appendix D contains additional details on EWC financial and operational measures, including a schedule of EWC Operational Adjusted EBITDA calculations.
Earnings Guidance
Entergy affirmed its 2016 operational guidance in the range of $6.60 to $7.40 per share and Utility, Parent & Other Adjusted EPS guidance range of $4.20 to $4.50. 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 or sell certain of its merchant 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 or sell certain merchant nuclear plants and for DOE litigation awards for those plants; those anticipated special items are expected to decrease as-reported EPS by 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, Oct. 25, 2016, to discuss Entergy's third 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 85417477, 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 Nov. 1, 2016, by dialing (855) 859-2056, conference ID 85417477. 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 costs and 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) the effects of technological changes and changes in 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.
Third 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
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
Third Quarter and Year-to-Date 2016 vs. 2015 (See Appendix A-3 and Appendix A-4 for details on special items)
(Per share in $)
Third Quarter Year-to-Date
------------- ------------
2016 2015 Change 2016 2015 Change
---- ---- ------ ---- ---- ------
As-reported
Utility 2.47 2.01 0.46 5.64 4.36 1.28
Parent & Other (0.35) (0.29) (0.06) (0.92) (0.81) (0.11)
EWC 0.04 (5.76) 5.80 1.88 (5.09) 6.97
Consolidated as-
reported
earnings 2.16 (4.04) 6.20 6.60 (1.54) 8.14
Less special items
Utility - - - - - -
Parent & Other - - - - - -
EWC (0.15) (5.94) 5.79 (0.17) (5.96) 5.79
----- ----- ---- ----- ----- ----
Consolidated
special items (0.15) (5.94) 5.79 (0.17) (5.96) 5.79
Operational
Utility 2.47 2.01 0.46 5.64 4.36 1.28
Parent & Other (0.35) (0.29) (0.06) (0.92) (0.81) (0.11)
EWC 0.19 0.18 0.01 2.05 0.87 1.18
---- ---- ---- ---- ---- ----
Consolidated
operational
earnings 2.31 1.90 0.41 6.77 4.42 2.35
Estimated weather
impact 0.18 0.16 0.02 (0.04) 0.23 (0.27)
See Appendix B for detailed earnings variance analysis.
Appendix A-2 provides the components of OCF contributed by each business for current quarter and year-to-date 2016 versus 2015.
Appendix A-2: Consolidated Operating Cash Flow
Third Quarter and Year-to-Date 2016 vs. 2015
--------------------------------------------
($ in millions)
Third Quarter Year-to-Date
------------- ------------
2016 2015 Change 2016 2015 Change
---- ---- ------ ---- ---- ------
Utility 929 833 96 2,078 2,049 29
Parent & Other (53) 13 (66) (162) (81) (81)
EWC 124 165 (41) 336 381 (45)
--- --- --- --- --- ---
Total OCF 1,000 1,011 (11) 2,252 2,350 (97)
Totals may not foot due
to rounding
The quarter-over-quarter decrease in total OCF was not significant. Lower EWC revenue was largely offset by lower pension contributions. 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)
Third Quarter and Year-to-Date 2016 vs. 2015
--------------------------------------------
(After-tax, per share in $)
Third Quarter Year-to-Date
------------- ------------
2016 2015 Change 2016 2015 Change
---- ---- ------ ---- ---- ------
EWC
Decisions to
close VY and
Pilgrim and
decision to
sell or close
FitzPatrick (0.15) (5.94) 5.79 (0.29) (5.96) 5.67
DOE litigation
awards for VY
and FitzPatrick - - - 0.12 - 0.12
Total EWC (0.15) (5.94) 5.79 (0.17) (5.96) 5.79
Total special
items (0.15) (5.94) 5.79 (0.17) (5.96) 5.79
Appendix A-4: Special Items by Income Statement Line Item (shown as positive/(negative) impact on earnings)
Third Quarter and Year-to-Date 2016 vs. 2015
--------------------------------------------
(Pre-tax except for Income taxes - other and Total, $ in millions)
Third Quarter Year-to-Date
------------- ------------
2016 2015 Change 2016 2015 Change
---- ---- ------ ---- ---- ------
EWC
Net revenue 7.5 - 7.5 7.5 - 7.5
Non-fuel O&M (29.3) (1.7) (27.5) (18.1) (10.8) (7.3)
Taxes other than
income taxes (1.8) (0.1) (1.7) (3.7) 0.2 (3.9)
Asset write-off
and impairments (18.8) (1,642.2) 1,623.4 (33.2) (1,642.2) 1,609.0
Income taxes -
other 15.0 580.3 (565.4) 16.8 583.4 (566.6)
---- ----- ------ ---- ----- ------
Total EWC (27.5) (1,063.7) 1,036.2 (30.7) (1,069.4) 1,038.7
Total special
items (after-
tax) (27.5) (1,063.7) 1,036.2 (30.7) (1,069.4) 1,038.7
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
Third 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 2.01 2.01 (0.29) (0.29) (5.76) 0.18 (4.04) 1.90
Net revenue 0.37 0.37 (a) - - (0.04) (0.07) (b) 0.33 0.30
Non-fuel O&M 0.13 0.13 (c) (0.01) (0.01) (0.02) 0.08 (d) 0.10 0.20
Taxes other than income taxes 0.04 0.04 - - - - 0.04 0.04
Other income (deductions)-other 0.01 0.01 - - - - 0.01 0.01
Asset write-offs and impairments - - - - 5.86 - (e) 5.86 -
Share effect (0.01) (0.01) - - - - (0.01) (0.01)
Interest expense and other charges (0.02) (0.02) - - 0.01 0.01 (0.01) (0.01)
Depreciation/amortization expense (0.04) (0.04) - - 0.02 0.02 (0.02) (0.02)
Income taxes - other (0.01) (0.01) (0.05) (0.05) (f) 0.02 0.02 (0.04) (0.04)
Decommissioning expense (0.01) (0.01) - - (0.05) (0.05) (g) (0.06) (0.06)
2016 earnings 2.47 2.47 (0.35) (0.35) 0.04 0.19 2.16 2.31
---- ---- ----- ----- ---- ---- ---- ----
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 4.36 4.36 (0.81) (0.81) (5.09) 0.87 (1.54) 4.42
Income taxes - other 0.66 0.66 (h) (0.05) (0.05) (f) 1.33 1.33 (i) 1.94 1.94
Non-fuel O&M 0.36 0.36 (c) (0.03) (0.03) 0.25 0.28 (d) 0.58 0.61
Taxes other than income taxes 0.05 0.05 (j) - - 0.04 0.05 (k) 0.09 0.10
Asset write-offs and impairments - - - - 5.80 - (e) 5.80 -
Depreciation/amortization expense (0.12) (0.12) (l) - - 0.11 0.11 (m) (0.01) (0.01)
Preferred dividend requirements (0.01) (0.01) - - - - (0.01) (0.01)
Other income (deductions)-other 0.03 0.03 (0.01) (0.01) (0.06) (0.06) (n) (0.04) (0.04)
Interest expense and other charges (0.04) (0.04) (0.02) (0.02) - - (0.06) (0.06)
Decommissioning expense (0.03) (0.03) - - (0.05) (0.05) (g) (0.08) (0.08)
Net revenue 0.38 0.38 (a) - - (0.45) (0.48) (b) (0.07) (0.10)
2016 earnings 5.64 5.64 (0.92) (0.92) 1.88 2.05 6.60 6.77
---- ---- ----- ----- ---- ---- ---- ----
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
primarily to rate changes
associated with the Union
acquisition, EAI's rate case
and EMI's FRP. Volume in the
unbilled period also
contributed to the net
revenue increase. Partially
offsetting the increase in
the year-to-date period was
a $16 million (pre-tax)
reserve recorded in second
quarter 2016 for the portion
of a tax benefit to be shared
with customers. The effect of
weather was slightly
favorable quarter-over-
quarter but unfavorable in
the year-to-date variance.
Utility As-Reported Net Revenue
Variance Analysis
2016 vs. 2015 ($ EPS)
--------------------
Third Year-to-
Quarter
Date
----
Estimated weather 0.02 (0.27)
Sales growth/pricing 0.41 0.89
Other (0.06) (0.24)
----- -----
Total 0.37 0.38
----- ---- ----
(b) The current quarter and year-to-date
decreases were driven by lower energy
pricing for nuclear assets. The sale of
the 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). In the year-to-
date period, volume from nuclear assets
was lower due largely to the extended
IP2 refueling outage.
(c) The current quarter and year-to-date
increases reflected lower pension and
OPEB expenses stemming partly from a
higher discount rate, lower vegetation
maintenance costs and energy efficiency
costs, including the effects of true-
ups. Non-fuel O&M expense was also
reduced as a result of litigation
awards from the DOE in connection with
spent nuclear fuel storage costs. The
expense decreases were partially offset
by the Union acquisition (offset in net
revenue). The quarter variance also
reflected lower nuclear generation
spending in 2016 due primarily to a
decrease in regulatory compliance costs
and expenses related to the ELL
business combination. The year-to-
date variance reflected a deferral
recorded at EAI in first quarter 2016
and lower spending on fossil outages.
These items were partially offset by
higher nuclear generation spending due
primarily to an overall higher scope of
work done during plant outages in 2016
and higher nuclear labor costs,
including contract labor.
(d) The current quarter as-reported
decrease was driven by higher expenses
resulting from the decisions to close
or sell certain nuclear plants (these
expenses were considered special items
and excluded from operational results).
The current quarter operational and
year-to-date variances increased,
reflecting lower refueling outage
expense (largely as a result of 2015
impairments) and the sale of the RISEC
facility in December 2015. The year-
to-date variance also reflected a
reduction in expense for litigation
proceeds received from the DOE in
connection with spent nuclear fuel
storage costs in second quarter 2016
(approximately 12 cents EPS received
for VY and FitzPatrick was considered a
special item).
(e) The as-reported current quarter and
year-to-date increases were primarily
due to non-cash impairment charges and
related write-offs recorded in third
quarter 2015 for Pilgrim and
FitzPatrick. Partially offsetting was
capital recorded as non-fuel O&M for
those nuclear plants that have closed
(VY) or are identified to close or be
sold (Pilgrim and FitzPatrick).
(f) The current quarter and year-to-date
decreases were due to an inter-company
adjustment recorded (offset at EWC).
(g) The current quarter and year-to-date
decreases were due to the establishment
of decommissioning liabilities for
Indian Point 3 and FitzPatrick in 2016
and revisions to decommissioning cost
studies at other EWC nuclear facilities
in 2015.
(h) The year-to-date increase was 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 in second
quarter 2016. This was partly offset by
customer sharing recorded as a
regulatory charge ($16 million pre-
tax, included in net revenue).
Partially offsetting was a first
quarter 2015 reversal of a portion of
the provision for uncertain tax
provisions related to interest accrual
of approximately $24 million.
(i) The year-to-date increase was
attributable largely to a tax election
which reduced income tax expense by
$238 million.
(j) The year-to-date increase was due
primarily to lower franchise taxes and
lower payroll taxes.
(k) The year-to-date increase was due
largely to lower sales and use tax and
the effect of prior year's New York
state audit settlement.
(l) The year-to-date decrease was due
primarily to additions to plant,
including the Union acquisition in
March 2016. The decrease was partially
offset by depreciation expense
reduction which resulted from
litigation awards from the DOE in
connection with spent nuclear fuel
storage costs in the current quarter.
(m) The year-to-date increase resulted
from 2015 impairments, recording the
effects of DOE litigation proceeds
related to spent nuclear fuel storage
costs and the sale of RISEC.
(n) The year-to-date decrease was due
largely to realized earnings from
decommissioning trusts in 2015 from
rebalancing of VY's decommissioning
trust.
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
Third Quarter and Year-to-Date 2016 vs. 2015 (See Appendix A for details on special items)
-----------------------------------------------------------------------------------------
(Per share
in $) Third Quarter Year-to-Date
------------- ------------
2016 2015 Change 2016 2015 Change
---- ---- ------ ---- ---- ------
As-
reported
EPS 2.12 1.72 0.40 4.72 3.55 1.17
Less:
Special
items - - - - - -
Estimated
weather 0.18 0.16 0.02 (0.04) 0.23 (0.27)
Income
taxes,
net of
sharing (0.04) - (0.04) 0.67 0.13 0.54
----- --- ----- ---- ---- ----
Adjusted
EPS 1.98 1.56 0.42 4.09 3.19 0.90
Appendix C-2 provides a comparative summary of Utility operational performance measures.
Appendix C-2: Utility Operational Performance Measures
Third Quarter and Year-to-Date 2016 vs. 2015 (See Appendix G for reconciliation of GAAP to non-GAAP measures)
------------------------------------------------------------------------------------------------------------
Third Quarter Year-to-Date
------------- ------------
2016 2015% % Weather Adjusted 2016 2015% % Weather Adjusted
Change Change
--- --- ---
GWh billed
Residential 11,817 11,887 (0.6%) (0.6%) 27,035 28,683 (5.7%) (0.6%)
Commercial 8,650 8,744 (1.1%) (2.0%) 21,938 22,370 (1.9%) (1.5%)
Governmental 703 692 1.6% 1.0% 1,912 1,886 1.4% 1.3%
Industrial 12,017 12,087 (0.6%) (0.6%) 34,581 33,230 4.1% 4.1%
------ ------ ----- ----- ------ ------ --- ---
Total retail sales 33,187 33,410 (0.7%) (0.9%) 85,466 86,169 (0.8%) 1.0%
Wholesale 2,733 2,586 5.7% 9,452 7,535 25.4%
Total sales 35,920 35,996 (0.2%) 94,918 93,704 1.3%
Number of electric retail customers
Residential 2,454,761 2,434,079 0.8%
Commercial 352,175 348,920 0.9%
Governmental 17,662 17,779 (0.7%)
Industrial 49,606 49,941 (0.7%)
Total retail customers 2,874,204 2,850,719 0.8%
Net revenue ($
millions) 1,859 1,750 6.2% 4,758 4,648 2.4%
As-reported non-fuel
O&M per MWh $17.39 $18.42 (5.6%) $18.82 $20.17 (6.7%)
Operational non-fuel
O&M per MWh $17.39 $18.42 (5.6%) $18.82 $20.17 (6.7%)
The effects of weather are
estimated using monthly
heating degree days and
cooling degree days from
certain locations within
each jurisdiction and
comparing to "normal"
weather based on 20 year
historical data. The models
used to estimate weather are
updated periodically and
subject to change.
See appendix in the webcast slide presentation for information on select regulatory cases.
D: EWC Financial and Operational Measures
Appendix D-1 provides a comparative summary of EWC operational adjusted earnings before interest, taxes, depreciation and amortization.
Appendix D-1: EWC Operational Adjusted EBITDA - Reconciliation of GAAP to Non-GAAP Measures
Third Quarter and Year-to-Date 2016 vs. 2015
--------------------------------------------
($ in millions) Third Quarter Year-to-Date
------------- ------------
2016 2015 Change 2016 2015 Change
---- ---- ------ ---- ---- ------
Net income 8 (1,032) 1,040 339 (913) 1,252
Add back: interest
expense 5 7 (2) 18 19 (1)
Add back: income tax
expense 6 (555) 561 (177) (488) 311
Add back: depreciation
and amortization 53 60 (7) 155 187 (32)
Subtract: interest and
investment income 27 29 (2) 87 116 (29)
Add back: decommissioning
expense 47 33 14 117 101 16
--- --- --- --- --- ---
Adjusted EBITDA 93 (1,515) 1,608 365 (1,210) 1,575
Add back pre-tax special items for:
Decisions to close VY and
Pilgrim and decision to
sell or close
FitzPatrick 42 1,644 (1,602) 81 1,653 (1,572)
DOE litigation awards for
VY and FitzPatrick - - - (34) - (34)
--- --- --- --- --- ---
Operational adjusted
EBITDA 135 129 6 412 443 (31)
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
Third Quarter and Year-to-Date 2016 vs. 2015 (See Appendix G for reconciliation of GAAP to non-GAAP measures)
------------------------------------------------------------------------------------------------------------
Third Quarter Year-to-Date
------------- ------------
2016 2015 % Change 2016 2015 % Change
---- ---- -------- ---- ---- --------
Owned capacity
(MW) (o) 4,880 5,463 (10.7%) 4,880 5,463 (10.7%)
GWh billed 9,372 10,440 (10.2%) 26,484 29,610 (10.6%)
As-reported
average total
revenue per
MWh $50.72 $49.97 1.5% $50.65 $54.16 (6.5%)
Adjusted
operational
average total
revenue per
MWh $49.03 $49.61 (1.2%) $49.74 $53.77 (7.5%)
Net revenue ($
millions) 396 410 (3.4%) 1,156 1,287 (10.2%)
As-reported
non-fuel O&M
per MWh $27.78 $24.49 13.4% $25.59 $25.42 0.7%
Operational
non-fuel O&M
per MWh $24.65 $24.32 1.4% $24.90 $25.06 (0.6%)
EWC Nuclear Fleet
-----------------
Capacity
factor 90% 92% (2.2%) 85% 90% (5.6%)
GWh billed 8,674 9,125 (4.9%) 24,670 26,298 (6.2%)
As-reported
average total
revenue per
MWh $51.01 $50.41 1.2% $51.05 $53.96 (5.4%)
Adjusted
operational
average total
revenue per
MWh $49.19 $49.99 (1.6%) $50.07 $53.53 (6.5%)
Production
cost per MWh $23.77 $26.90 (11.6%) $22.91 $26.24 (12.7%)
Net revenue ($
millions) 396 395 0.3% 1,151 1,240 (7.2%)
Refueling outage days
Indian Point 2 - - 102 -
Indian Point 3 - - - 23
Palisades - 13 - 13
Pilgrim - - - 34
(o) Third 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
Third Quarter 2016 vs. 2015 (See Appendix G for reconciliation of GAAP to non-
GAAP measures)
------------------------------------------------------------------------------
For 12
months
ending
September
30 2016 2015 Change
---- ---- ------
GAAP Measures
ROIC -
as-
reported 7.0% 1.1% 5.9%
ROE - as-
reported 13.4% (1.6%) 15.0%
Book value
per share $56.21 $51.33 $4.88
End of
period
shares
outstanding
(millions) 179.1 178.4 0.7
Non-GAAP Measures
ROIC -
operational 7.9% 5.6% 2.3%
ROE -
operational 15.6% 9.6% 6.0%
As of
September
30 ($ in
millions) 2016 2015 Change
---- ---- ------
GAAP Measures
Cash and
cash
equivalents 1,307 1,041 266
Revolver
capacity 4,243 3,869 374
Commercial
paper 264 664 (400)
Total debt 15,073 14,144 929
Securitization
debt 698 814 (116)
Debt to
capital 59.4% 60.2% (0.8%)
Off-balance sheet liabilities:
Debt of
joint
ventures
-
Entergy's
share 74 78 (4)
Leases -
Entergy's
share 359 422 (63)
Power
purchase
agreements
accounted
for as
leases 195 224 (29)
--- --- ---
Total off-
balance
sheet
liabilities 628 724 (96)
Non-GAAP Measures
Debt to
capital,
excluding
securitization
debt 58.3% 58.7% (0.4%)
Gross
liquidity 5,550 4,910 640
Net debt
to net
capital,
excluding
securitization
debt 55.9% 56.7% (0.8%)
Parent
debt to
total
debt,
excluding
securitization
debt 19.4% 20.9% (1.5%)
Debt to
operational
adjusted
EBITDA,
excluding
securitization
debt 4.2x 3.9x 0.3x
Operational
FFO to
debt,
excluding
securitization
debt 21.1% 25.4% (4.3%)
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 average total As-reported revenue per MWh billed
revenue per MWh (does not include revenue from
investments in wind generation that
is accounted for under the equity
method of accounting)
Adjusted average total As-reported average total revenue
revenue per MWh per MWh, excluding revenue from the
amortization of the Palisades
below-market PPA and VY capacity
revenue
Average revenue under Revenue on a per unit basis at which
contract per kW-month capacity is expected to be sold to
(applies to capacity third parties, given existing
contracts only) contract prices and/or auction
awards
Average revenue per MWh on Revenue on a per unit basis at which
contracted volumes 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 installed
contracts 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 revenue on
total revenue per MWh 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 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 positions Transactions for the purchase of
energy, generally to offset a Firm
LD transaction
Owned capacity (MW) Installed capacity owned and
operated by EWC, including
investments in wind generation
accounted for under the equity
method of accounting; RISEC (non-
nuclear) was sold on Dec. 17, 2015
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
Planned net MW in operation Amount of installed capacity to
generate power and/or sell
capacity, assuming intent to
shutdown Pilgrim on May 31, 2019
and sell FitzPatrick in second
quarter 2017
Planned TWh of generation Amount of output expected to be
generated by EWC resources
considering plant operating
characteristics and outage
schedules, assuming intent to
shutdown Pilgrim on May 31, 2019
and to sell FitzPatrick in second
quarter 2017, uninterrupted normal
plant operation and timely renewal
of plant operating licenses at IPEC
Production cost per MWh Fuel and non-fuel O&M expenses
according to accounting standards
that directly relate to the
production of electricity per MWh
(based on net generation),
excluding special items
Refueling outage days Number of days lost for scheduled
refueling outage during the period
Unit-contingent Transaction under which power is
supplied from a specific generation
asset; if the asset is 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 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
adjusted for
preferred
dividends and
tax-effected
interest expense
divided by
average invested
capital
ROE - as-reported 12-months rolling
net income
attributable to
Entergy
Corporation
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 OCF less AFUDC-borrowed funds, working
capital items in OCF (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
Corporation 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 Corporation
divided by average common equity
Appendix F-2 explains abbreviations and acronyms used in the quarterly earnings materials.
Appendix F-2: Abbreviations and Acronyms
----------------------------------------
ADIT Accumulated deferred income taxes LPSC Louisiana Public Service Commission
AFUDC - Allowance for borrowed funds used
during construction LTM Last twelve months
borrowed
funds
MISO Midcontinent Independent System
Operator, Inc.
AFUDC - Allowance for equity funds used MPSC Mississippi Public Service
during construction Commission
equity funds
MTEP MISO Transmission Expansion
Planning
ALJ Administrative law judge NEPOOL New England Power Pool
AMI Advanced metering infrastructure Ninemile 6 Ninemile Point Unit 6
ANO Arkansas Nuclear One (nuclear) NOAA National Oceanic and Atmosphere
Administration
APSC Arkansas Public Service Commission Non-fuel O&M Non-fuel operation and maintenance
expense
BP Basis point NRC Nuclear Regulatory Commission
CCGT Combined cycle gas turbine NYISO New York Independent System
Operator, Inc.
CCNO Council of the City of New Orleans,
Louisiana NYS New York State
COD Commercial operation date NYSDEC New York State Department of
Environmental Conservation
Cooper Cooper Nuclear Station
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 NYSERDA New York State Energy Research and
Development Authority
DOE U.S. Department of Energy
EAI Entergy Arkansas, Inc. O&M Operation and maintenance expense
EBITDA Earnings before interest, income Net cash flow provided by operating
taxes, depreciation and activities
amortization OCF
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.
ESI Entergy Services, Inc. PUCT Public Utility Commission of Texas
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
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) SERI System Energy Resources, Inc.
FRP Formula rate plan SPDES State Pollutant Discharge
Elimination System
GAAP Generally accepted accounting
principles SPP Southwest Power Pool
Grand Gulf Unit No. 1 of Grand Gulf Nuclear
Station (nuclear), 90% owned or
leased by System Energy TCRF Transmission cost recovery factor
Top Deer Top Deer Wind Ventures, LLC
HCM Human Capital Management program Union Union Power Station (CCGT)
Indian Point Indian Point Energy Center Unit 2
2 (nuclear) UP&O Utility, Parent & Other
Indian Point Indian Point Energy Center Unit 3 VY Vermont Yankee Nuclear Power
3 (nuclear) Station (nuclear)
IPEC Indian Point Energy Center
(nuclear) WACC Weighted-average cost of capital
ISES Independence Steam Electric Station
(coal) WOTAB West of the Atchafalaya Basin
ISO Independent system operator WQC Water Quality Certification
ISO-NE ISO New England 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) Third Quarter Year-to-Date
2016 2015 2016 2015
---- ---- ---- ----
Utility
-------
As-reported
Utility non-
fuel O&M (A) 624,646 663,142 1,786,048 1,889,982
Operational
Utility non-
fuel O&M (B) 624,646 663,142 1,786,048 1,889,982
Utility billed
sales (GWh) (C) 35,920 35,996 94,918 93,704
As-reported
Utility non-
fuel O&M per
MWh (A/C) 17.39 18.42 18.82 20.17
Operational
Utility non-
fuel O&M per
MWh (B/C) 17.39 18.42 18.82 20.17
EWC
---
As-reported EWC
non-fuel O&M (D) 260,319 255,656 677,604 752,719
Special items
included in
non-fuel O&M:
Decisions to
close VY and
Pilgrim and
decision to
sell or close
FitzPatrick 29,254 1,706 51,879 10,774
DOE litigation
awards for VY
and FitzPatrick - - (33,823) -
Total special
items included
in non-fuel
O&M (E) 29,254 1,706 18,056 10,774
Operational EWC
non-fuel O&M (D-E) 231,065 253,950 659,548 741,945
EWC billed sales
(GWh) (F) 9,372 10,440 26,484 29,610
As-reported EWC
non-fuel O&M
per MWh (D/F) 27.78 24.49 25.59 25.42
Operational EWC
non-fuel O&M
per MWh [(D-E)/(F)] 24.65 24.32 24.90 25.06
As-reported EWC
operating
revenue (G) 475,345 521,746 1,341,534 1,603,643
Special items
included in
operating
revenue:
Decision to sell
or close
FitzPatrick (H) 7,479 - 7,479 -
Operational EWC
operating
revenue (G-H) 467,866 521,746 1,334,055 1,603,643
Less Palisades
below-market
PPA
amortization
and VY capacity
revenue (p) (I) 8,338 3,800 16,724 11,400
Adjusted
operational EWC
operating
revenue [(G-H)]-(I) 459,528 517,946 1,317,331 1,592,243
As-reported EWC
average total
revenue per MWh (G)/(F) 50.72 49.97 50.65 54.16
Adjusted
operational EWC
average total
revenue per MWh [[(G-H)]-(I)/(F)] 49.03 49.61 49.74 53.77
As-reported EWC
nuclear
operating
revenue (J) 442,488 459,964 1,259,420 1,419,060
Special items
included in
operating
revenue:
Decision to sell
or close
FitzPatrick (K) 7,479 - 7,479 -
Operational EWC
nuclear
operating
revenue (J-K) 435,009 459,964 1,251,941 1,419,060
Less Palisades
below-market
PPA
amortization
and VY capacity
revenue (p) (L) 8,338 3,800 16,724 11,400
Adjusted
operational EWC
nuclear
operating
revenue [(J-K)]-(L) 426,671 456,164 1,235,217 1,407,660
EWC nuclear
billed sales
(GWh) (M) 8,674 9,125 24,670 26,298
As-reported EWC
nuclear average
total revenue
per MWh (J)/(M) 51.01 50.41 51.05 53.96
Adjusted
operational EWC
nuclear average
total revenue
per MWh [[(J-K)]-(L)/(M)] 49.19 49.99 50.07 53.53
Totals may not foot due
to rounding
(p) VY capacity revenue which is
largely offset by purchased
capacity following decision
to close VY
Appendix G-2: Reconciliation of GAAP to Non-GAAP Financial Measures -
ROIC, ROE Metrics
($ in
millions) Third Quarter
-------------
2016 2015
---- ----
As-reported
net income
attributable
to Entergy
Corporation,
rolling 12
months (A) 1,285 (156)
Preferred
dividends 21 19
Tax effected
interest
expense 407 396
--- ---
As-reported
net income effected
attributable interest
to Entergy expense
Corporation,
rolling 12
months
adjusted for
preferred
dividends
and tax 1,713 259
Special items (B)
in prior
quarters (186) (21)
Decisions to
close VY and
Pilgrim and
decision to
sell or
close
FitzPatrick (27) (1,064)
Total special
items,
rolling 12
months (C) (212) (1,085)
Operational
earnings,
rolling 12
months
adjusted for
preferred
dividends
and tax
effected
interest
expense (B-C) 1,925 1,344
Operational
earnings,
rolling 12
months (A-C) 1,497 929
Average
invested
capital (D) 24,443 23,819
Average
common
equity (E) 9,613 9,653
ROIC - as-
reported (B/D) 7.0 1.1
ROIC -
operational [(B-C)/D] 7.9 5.6
ROE - as-
reported (A/E) 13.4 (1.6)
ROE -
operational [(A-C)/E] 15.6 9.6
Totals may not foot due
to rounding
Appendix G-3: Reconciliation of GAAP to Non-GAAP Financial Measures
- Credit and Liquidity Metrics
-------------------------------------------------------------------
($
in
millions) Third Quarter
-------------
2016 2015
---- ----
Total
debt (A) 15,073 14,144
Less
securitization
debt (B) 698 814
--- ---
Total
debt,
excluding
securitization
debt (C) 14,375 13,330
Less
cash
and
cash
equivalents (D) 1,307 1,041
----- -----
Net
debt,
excluding
securitization
debt (E) 13,068 12,289
Total
capitalization (F) 25,375 23,512
Less
securitization
debt (B) 698 814
--- ---
Total
capitalization,
excluding
securitization
debt (G) 24,677 22,698
Less
cash
and
cash
equivalents (D) 1,307 1,041
----- -----
Net
capital,
excluding
securitization
debt (H) 23,370 21,657
Debt
to
capital (A/F) 59.4% 60.2%
Debt
to
capital,
excluding
securitization
debt (C/G) 58.3% 58.7%
Net
debt
to
net
capital,
excluding
securitization
debt (E/H) 55.9% 56.7%
Revolver
capacity (I) 4,243 3,869
Gross
liquidity (D+I) 5,550 4,910
Entergy
Corporation
notes:
Due
January
2017 500 500
Due
September
2020 450 450
Due
July
2022 650 650
Due
September
2026 750 -
Total
parent
long-
term
debt (J) 2,350 1,600
Revolver
draw (K) 180 525
Commercial
paper (L) 264 664
--- ---
Total
parent
debt (J)+(K)+(L) 2,794 2,789
Parent
debt
to
total
debt,
excluding
securitization
debt [((J)+(K)+(L))/(C)] 19.4% 20.9%
Appendix G-3: Reconciliation of GAAP to Non-GAAP Financial Measures -
Credit and Liquidity Metrics (continued)
---------------------------------------------------------------------
($ in
millions) Third Quarter
-------------
2016 2015
---- ----
Total debt (A) 15,073 14,144
Less
securitization
debt (B) 698 814
--- ---
Total debt,
excluding
securitization
debt (C) 14,375 13,330
As-
reported
consolidated
net
income,
rolling 12
months 1,306 (156)
Add back:
interest
expense,
rolling 12
months 661 644
Add back:
income tax
expense,
rolling 12
months (377) (35)
Add back:
depreciation
and
amortization,
rolling 12
months 1,340 1,333
Add back:
regulatory
charges
(credits),
rolling 12
months 196 29
Subtract:
securitization
proceeds,
rolling 12
months 140 134
Subtract:
interest
and
investment
income,
rolling 12
months 157 186
Subtract:
AFUDC-
equity
funds,
rolling 12
months 62 56
Add back:
decommissioning
expense,
rolling 12
months 303 279
--- ---
Adjusted
EBITDA,
rolling 12
months (D) 3,070 1,718
Add back:
special
item for
HCM
implementation
expenses,
rolling 12
months
(pre-tax) - 3
Add back:
special to sell or
item close
resulting FitzPatrick,
from rolling 12
decisions months
to close (pre-tax)
VY and
Pilgrim
and
decision 86 1,673
Add back:
special
item for
DOE
litigation
awards for
VY and
FitzPatrick,
rolling 12
months
(pre-tax) (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) 3,401 3,394
Debt to
operational
adjusted
EBITDA,
excluding
securitization
debt (C)/(E) 4.2x 3.9x
Net cash
flow
provided
by
operating
activities,
rolling 12
months (F) 3,194 3,348
AFUDC-
borrowed
funds used
during
construction,
rolling 12
months (G) (32) (29)
Working
capital
items in
net cash
flow
provided
by
operating
activities,
rolling 12
months:
Receivables (10) (5)
Fuel
inventory 24 (34)
Accounts
payable 55 (63)
Prepaid
taxes and
taxes
accrued 3 25
Interest
accrued 9 (5)
Other
working
capital
accounts (59) (17)
Securitization
regulatory
charge 111 104
--- ---
Total (H) 133 5
FFO,
rolling 12
months (F)+(G)-(H) 3,029 3,314
Add back:
special
item for
HCM
implementation
expenses,
rolling 12
months
(pre-tax) - 11
Add back:
special to sell or
item close
resulting FitzPatrick,
from rolling 12
decisions months
to close (pre-tax)
VY and
Pilgrim
and
decision 6 56
Operational
FFO,
rolling 12
months (I) 3,035 3,381
Operational
FFO to debt
ratio,
excluding
securitization
debt (I)/(C) 21.1% 25.4%
Totals may not foot due
to rounding
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SOURCE Entergy Corporation
