GenOn Energy, Inc. (NYSE: GEN) today reported adjusted EBITDA of
$72 million for the second quarter of 2012 compared to $104 million
for the same period of 2011. The adjusted net loss was $107 million
for the second quarter of 2012 compared to the adjusted net loss of
$82 million for the same period last year. GenOn reported a net
loss of $228 million for the second quarter of 2012 compared to a
net loss of $138 million for the same period of 2011.
Second Quarter 2012 versus Second Quarter
2011
Net Loss to Adjusted Net Loss and Adjusted EBITDA
-------------- --------------
Quarter Ended Quarter Ended
(in millions) June 30, 2012 June 30, 2011
-------------- --------------
Net Loss $ (228) $ (138)
Unrealized losses 142 18
Mirant/RRI merger-related costs 2 14
Costs to deactivate generating facilities 3 -
Major litigation costs, net of recoveries 2 7
Lower of cost or market inventory
adjustments, net 3 (4)
Large scale remediation and settlement costs (3) 30
Reversal of Potomac River settlement
obligation (31) -
Gain on early extinguishment of debt - (1)
Reversal of Montgomery County carbon levy
assessment - (8)
Other, net 3 -
-------------- --------------
Adjusted Net Loss $ (107) $ (82)
-------------- --------------
Provision for income taxes 4 -
Interest expense, net 85 96
Depreciation and amortization 90 90
-------------- --------------
Adjusted EBITDA $ 72 $ 104
============== ==============
Adjusted EBITDA was $72 million for the second quarter of 2012
compared to $104 million for the same period of 2011. The decline
primarily resulted from a reduction in energy gross margin because
of lower prices and reduced generation volumes as well as lower
contracted and capacity revenues in Eastern PJM and Western
PJM/MISO. The decline was partially offset by increased realized
value of hedges and lower adjusted operating and other expenses,
primarily from lower project, outage and maintenance expenses.
The adjusted net loss was $107 million for the second quarter of
2012 compared to the adjusted net loss of $82 million for the same
period of 2011. The increase in adjusted net loss was primarily
related to the same items that affected adjusted EBITDA, partially
offset by lower interest expense.
GenOn's net loss was $228 million for the second quarter of 2012
compared to the net loss of $138 million for the same period of
2011. The increase in net loss was primarily a result of increased
unrealized losses and the same items that affected adjusted net
loss. These were partially offset by a reduction in large scale
remediation and settlement costs, the reversal of the Potomac River
settlement obligation and a decrease in Mirant/RRI merger-related
costs.
Net cash used in operating activities was $39 million for the
second quarter of 2012 compared to net cash used in operating
activities of $203 million for the same period of 2011.
Six Months 2012 versus Six Months 2011
Net Loss to Adjusted Net Loss and Adjusted EBITDA
---------------- ----------------
Six Months Ended Six Months Ended
(in millions) June 30, 2012 June 30, 2011
---------------- ----------------
Net Loss $ (260) $ (249)
Unrealized losses 42 97
Mirant/RRI merger-related costs 4 37
Costs to deactivate generating facilities 38 -
Major litigation costs, net of recoveries 4 7
Lower of cost or market inventory
adjustments, net 44 (12)
Advance settlement of out-of-market
contract obligation (20) -
Large scale remediation and settlement
costs (3) 30
Reversal of Potomac River settlement
obligation (31) -
Reversal of Montgomery County carbon levy
assessment - (8)
Loss on early extinguishment of debt - 23
Other, net (1) -
---------------- ----------------
Adjusted Net Loss $ (183) $ (75)
---------------- ----------------
Provision for income taxes 4 3
Interest expense, net 174 205
Depreciation and amortization 178 176
---------------- ----------------
Adjusted EBITDA $ 173 $ 309
================ ================
Adjusted EBITDA was $173 million for the six months ended June
30, 2012 compared to $309 million for the same period in 2011. The
decline primarily resulted from a reduction in energy gross margin
because of lower prices and reduced generation volumes as well as
lower contracted and capacity revenues in Eastern PJM and Western
PJM/MISO. These items were partially offset by increased realized
value of hedges and an improvement in adjusted operating and other
expenses, primarily related to lower project, outage and
maintenance expenses and Mirant/RRI merger cost savings.
The adjusted net loss was $183 million for the six months ended
June 30, 2012 compared to the adjusted net loss of $75 million for
the same period in 2011. The decline was related to the same items
that affected adjusted EBITDA, partially offset by lower interest
expense.
GenOn's net loss was $260 million for the six months ended June
30, 2012 compared to the net loss of $249 million for the same
period in 2011. The decline was primarily related to the same items
that affected adjusted EBITDA in addition to the items listed in
the table above.
Net cash provided by operating activities was $28 million for
the six months ended June 30, 2012 compared to $15 million for the
same period in 2011.
Liquidity Total cash and cash equivalents
at June 30, 2012 was $1.7 billion. When taken together with
availability under existing credit facilities, GenOn's total
available liquidity at June 30, 2012 was $2.2 billion.
Total debt on June 30, 2012 was $4.3 billion.
Common Stock On June 30, 2012, GenOn had
772,898,703 common shares outstanding.
NRG/GEN Merger GenOn continues to expect
to complete its merger with NRG Energy, Inc. by the first quarter
of 2013.
Guidance Due to the pending merger with
NRG Energy, Inc., GenOn is suspending EBITDA guidance.
Conference Call GenOn Energy will host its
second quarter 2012 earnings conference call beginning at 9:00 a.m.
Eastern Time on Thursday, August 9, 2012. The conference call will
be webcast live with audio and slides at www.genon.com in the
Investor Relations section. A replay of the call can be accessed
approximately two hours after the call's completion.
About GenOn Energy, Inc. GenOn Energy,
Inc. (NYSE: GEN) is one of the largest competitive generators of
wholesale electricity in the United States. With power generation
facilities located in key regions of the country and a generation
portfolio of approximately 22,700 megawatts, GenOn is helping meet
the nation's electricity needs. GenOn's portfolio of power
generation facilities includes baseload, intermediate and peaking
units using coal, natural gas and oil to generate electricity. We
have experienced leadership, dedicated team members, financial
strength and a solid commitment to safety, the environment,
operational excellence and the communities in which we operate.
GenOn routinely posts all important information on its web site at
www.genon.com.
Non-GAAP Financial Measures This press
release includes "non-GAAP financial measures" as defined in
Regulation G under the Securities Exchange Act of 1934, as amended.
Reconciliations of these measures to the most directly comparable
GAAP measures are contained herein. This press release is available
in the Investor Relations section of our web site at www.genon.com.
To the extent required, we have included a more detailed
description of each of the non-GAAP financial measures used in this
press release, together with a discussion of the usefulness and
purpose of these measures as an exhibit to the Current Report on
Form 8-K furnished to the Securities and Exchange Commission
("SEC") with this press release, which is also available on our web
site.
Certain factors that could affect GAAP financial measures are
not accessible on a forward-looking basis but could be material to
future reported earnings and cash flow.
Forward Looking Statements In addition to
historical information, the information presented in this
communication includes forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section
21E of the Exchange Act. These statements involve estimates,
expectations, projections, goals, assumptions, known and unknown
risks and uncertainties and can typically be identified by
terminology such as "may," "will," "should," "could," "objective,"
"projection," "forecast," "goal," "guidance," "outlook," "expect,"
"intend," "seek," "plan," "think," "anticipate," "estimate,"
"predict," "target," "potential" or "continue" or the negative of
these terms or other comparable terminology. Such forward-looking
statements include, but are not limited to, statements about the
anticipated benefits of the proposed transaction between NRG and
GenOn, our and the combined company's future revenues, income,
indebtedness, capital structure, plans, expectations, objectives,
projected financial performance and/or business results and other
future events, each party's views of economic and market
conditions, and the expected timing of the completion of the
proposed transaction.
Forward-looking statements are not a guarantee of future
performance and actual events or results may differ materially from
any forward-looking statement as result of various risks and
uncertainties, including, but not limited to, those relating to:
the ability to satisfy the conditions to the proposed transaction
between NRG and GenOn, the ability to successfully complete the
proposed transaction (including any financing arrangements in
connection therewith) in accordance with its terms and in
accordance with expected schedule, the ability to obtain
stockholder, antitrust, regulatory or other approvals for the
proposed transaction, or an inability to obtain them on the terms
proposed or on the anticipated schedule, diversion of management
attention on transaction-related issues, impact of the transaction
on relationships with customers, suppliers and employees, the
ability to finance the combined business post-closing and the terms
on which such financing may be available, the financial performance
of the combined company following completion of the proposed
transaction, the ability to successfully integrate the businesses
of NRG and GenOn, the ability to realize anticipated benefits of
the proposed transaction (including expected cost savings and other
synergies) or the risk that anticipated benefits may take longer to
realize than expected, legislative, regulatory and/or market
developments, the outcome of pending or threatened lawsuits,
regulatory or tax proceedings or investigations, the effects of
competition or regulatory intervention, financial and economic
market conditions, access to capital, the timing and extent of
changes in law and regulation (including environmental), commodity
prices, prevailing demand and market prices for electricity,
capacity, fuel and emissions allowances, weather conditions,
operational constraints or outages, fuel supply or transmission
issues, hedging ineffectiveness.
Additional information concerning other risk factors is
contained in GenOn's most recent Annual Report on Form 10-K,
subsequent Quarterly Reports on Form 10-Q, recent Current Reports
on Form 8-K, and other SEC filings.
Many of these risks, uncertainties and assumptions are beyond
GenOn's ability to control or predict. Because of these risks,
uncertainties and assumptions, you should not place undue reliance
on these forward-looking statements. Furthermore, forward-looking
statements speak only as of the date they are made, and GenOn
undertakes no obligation to update publicly or revise any
forward-looking statements to reflect events or circumstances that
may arise after the date of this communication. All subsequent
written and oral forward-looking statements concerning GenOn, the
proposed transaction, the combined company or other matters and
attributable to GenOn or any person acting on their behalf are
expressly qualified in their entirety by the cautionary statements
above.
Additional Information And Where To Find
It This communication does not constitute an offer to sell or
the solicitation of an offer to buy any securities or a
solicitation of any vote or approval, nor shall there be any sale
of securities in any jurisdiction in which such offer, solicitation
or sale would be unlawful prior to registration or qualification
under the securities laws of any such jurisdiction. The proposed
business combination transaction between NRG and GenOn will be
submitted to the respective stockholders of NRG and GenOn for their
consideration. NRG will file with the SEC a registration statement
on Form S-4 that will include a joint proxy statement of NRG and
GenOn that also constitutes a prospectus of NRG. NRG and GenOn will
mail the joint proxy statement/prospectus to their respective
stockholders. NRG and GenOn also plan to file other documents with
the SEC regarding the proposed transaction. This communication is
not a substitute for any prospectus, proxy statement or any other
document which NRG or GenOn may file with the SEC in connection
with the proposed transaction. INVESTORS AND SECURITY HOLDERS OF
GENON AND NRG ARE URGED TO READ THE JOINT PROXY
STATEMENT/PROSPECTUS AND ANY OTHER RELEVANT DOCUMENTS THAT WILL BE
FILED WITH THE SEC CAREFULLY AND IN THEIR ENTIRETY WHEN THEY BECOME
AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE
PROPOSED TRANSACTION. Investors and stockholders will be able to
obtain free copies of the joint proxy statement/prospectus and
other documents containing important information about NRG and
GenOn, once such documents are filed with the SEC, through the
website maintained by the SEC at www.sec.gov. NRG and GenOn make
available free of charge at www.nrgenergy.com and www.genon.com,
respectively (in the "Investor Relations" section), copies of
materials they file with, or furnish to, the SEC.
Participants In The Merger Solicitation
NRG, GenOn, and certain of their respective directors and executive
officers may be deemed to be participants in the solicitation of
proxies from the stockholders of GenOn and NRG in connection with
the proposed transaction. Information about the directors and
executive officers of NRG is set forth in its proxy statement for
its 2012 annual meeting of stockholders, which was filed with the
SEC on March 12, 2012. Information about the directors and
executive officers of GenOn is set forth in its proxy statement for
its 2012 annual meeting of stockholders, which was filed with the
SEC on March 30, 2012. These documents can be obtained free of
charge from the sources indicated above. Other information
regarding the participants in the proxy solicitation and a
description of their direct and indirect interests, by security
holdings or otherwise, will be contained in the joint proxy
statement/prospectus and other relevant materials to be filed with
the SEC when they become available.
Genesis Healthcare (NYSE:GEN)
Historical Stock Chart
From May 2024 to Jun 2024
Genesis Healthcare (NYSE:GEN)
Historical Stock Chart
From Jun 2023 to Jun 2024
