NEW ORLEANS, May 11, 2020 /PRNewswire/ -- Entergy
Corporation (NYSE: ETR) reported first quarter 2020 earnings of
59 cents per share on an as-reported
basis and $1.14 per share on an
adjusted basis (non-GAAP).
"The past few months have presented extraordinary circumstances,
and we extend our well-wishes to all affected. We also extend our
deepest thanks to everyone working tirelessly to help those in
need," said Entergy Chairman and Chief Executive Officer
Leo Denault. "Providing safe,
reliable power is essential, especially during times like these;
that's why at Entergy we plan and prepare for the extraordinary,
and our response has been effective. We are meeting the needs and
expectations of our customers and communities, our major projects
remain on track, and our capital plan is unchanged. Our first
quarter results were solid, and recent events have not changed our
objective to be the premier utility that delivers sustainable value
for our stakeholders."
Business highlights included the following:
- Entergy affirms 2020 adjusted EPS guidance of $5.45 to $5.75.
- The Lake Charles Power Station was placed in service on budget
and ahead of schedule.
- Entergy Texas issued an RFP for a 1,000MW to 1,200MW CCGT and
Entergy Louisiana issued an RFP for 250MW of solar resources.
- Entergy Mississippi received approval for the Sunflower Solar
project and Entergy Arkansas received approval for the Searcy Solar
project.
- Entergy Mississippi made its annual formula rate plan
filing.
- Entergy Texas filed for an increase in its distribution cost
recovery factor.
- Indian Point Unit 2 was permanently shutdown.
- The Entergy Charitable Foundation established the COVID-19
Emergency Relief Fund.
Consolidated Earnings
(GAAP and Non-GAAP Measures)
|
First Quarter 2020
vs. 2019 (See Appendix A for reconciliation of GAAP to
non-GAAP measures and description of adjustments)
|
|
First
Quarter
|
|
2020
|
2019
|
Change
|
(After-tax, $ in
millions)
|
|
|
|
As-reported
earnings
|
119
|
255
|
(136)
|
Less
adjustments
|
(111)
|
97
|
(208)
|
Adjusted earnings
(non-GAAP)
|
230
|
158
|
72
|
Estimated
weather in billed sales
|
(50)
|
(23)
|
(26)
|
|
|
|
|
(After-tax, per share
in $)
|
|
|
|
As-reported
earnings
|
0.59
|
1.32
|
(0.73)
|
Less
adjustments
|
(0.55)
|
0.50
|
(1.05)
|
Adjusted earnings
(non-GAAP)
|
1.14
|
0.82
|
0.32
|
Estimated
weather in billed sales
|
(0.25)
|
(0.12)
|
(0.13)
|
|
|
|
|
Calculations may
differ due to rounding
|
Consolidated Results
For first quarter 2020, the company reported earnings of
$119 million, or 59 cents per share, on an as-reported basis, and
earnings of $230 million, or
$1.14 per share, on an adjusted
basis. This compared to first quarter 2019 earnings of $255 million, or $1.32 per share, on an as-reported basis, and
earnings of $158 million, or
82 cents per share, on an adjusted
basis.
Summary discussions by business are below. Additional details,
including information on OCF by business, are provided in Appendix
A. An analysis of quarterly variances by business is provided in
Appendix B.
Business Segment Results
Utility
For first quarter 2020, the Utility business reported earnings
attributable to Entergy Corporation of $320 million, or
$1.59 per share, on both an
as-reported and an adjusted basis. This compared to first quarter
2019 earnings of $231 million, or
$1.20 per share, on both an
as-reported basis and an adjusted basis. Drivers for the
quarter included:
- rate activity at E-AR, E-LA, E-MS, and E-TX;
- a first quarter 2019 reserve at E-AR;
- higher nuclear insurance refunds, as well as lower fossil and
nuclear generation spending;
- a favorable book-to-tax permanent difference related to
stock-based compensation; and
- an IRS settlement related to Hurricane Isaac Act 55 financing,
net of customer sharing (largely offset by higher tax expense from
this settlement at P&O).
These drivers were partially offset by:
- higher pension and benefits expenses;
- higher depreciation and interest expenses; and
- lower sales volume, including the net effect of billed and
unbilled sales, and the effects of weather.
On a per share basis, first quarter 2020 results reflected
higher common shares outstanding.
Appendix C contains additional details on Utility financial and
operating measures.
Parent & Other
For first quarter 2020, Parent & Other reported a
loss attributable to Entergy Corporation of $(90 million), or (45)
cents per share, on both an as-reported basis and an
adjusted basis. This compared to a loss of $(73 million), or (38)
cents per share, on both an as-reported and an adjusted
basis in first quarter 2019. The main driver for the quarter
was higher income tax expense resulting from the IRS settlement
related to Hurricane Isaac Act 55 financing, which largely
offsets the benefit from this settlement at the Utility.
On a per share basis, first quarter 2020 results reflected
higher common shares outstanding.
Entergy Wholesale Commodities
For first quarter 2020, EWC reported a loss attributable to
Entergy Corporation of $(111
million), or (55) cents per
share, on an as-reported basis. This compared to first quarter 2019
earnings attributable to Entergy Corporation of $97 million, or 50
cents per share, on an as-reported basis. Drivers for the
quarter included:
- losses on decommissioning trust funds; and
- lower revenue due to the shutdown of Pilgrim, as well as lower
nuclear pricing.
These drivers were partially offset by:
- lower impairments as compared to a year ago;
- lower other O&M expense due to the shutdown of Pilgrim, as
well as lower severance and retention expense;
- higher nuclear volume; and
- an income tax item related to the sale of Vermont Yankee
recorded in first quarter 2019.
On a per share basis, first quarter 2020 results reflected
higher common shares outstanding.
Appendix D contains additional details on EWC financial and
operating measures, including reconciliation for non-GAAP EWC
adjusted EBITDA.
Earnings per Share Guidance
Entergy affirmed its 2020 adjusted EPS guidance range of
$5.45 to $5.75. See webcast presentation slides for
additional details.
The company has provided 2020 earnings guidance with regard to
the non-GAAP measure of Entergy adjusted EPS. This measure excludes
from the corresponding GAAP financial measure the effect of
adjustments as described below under "Non-GAAP Financial Measures."
The company has not provided a reconciliation of such non-GAAP
guidance to guidance presented on a GAAP basis because it cannot
predict and quantify with a reasonable degree of confidence all of
the adjustments that may occur during the period. One such
adjustment will be the exclusion of EWC earnings from Entergy
adjusted EPS. We currently estimate that the contribution of EWC to
Entergy's as-reported EPS will be approximately $(1.25) in 2020. These estimates are subject to
substantial uncertainty due to, among other things, the potential
effects of exiting the EWC business.
Earnings Teleconference
A teleconference will be held at 10:00
a.m. Central Time on Monday, May 11, 2020, to discuss
Entergy's quarterly 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
844-309-6569, conference ID 5242577, 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 news 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 May 18, 2020, by dialing 855-859-2056, conference
ID 5242577.
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 8,000 megawatts of nuclear power. Entergy delivers
electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi, and Texas. Entergy has annual revenues of
$11 billion and approximately 13,600
employees.
Entergy Corporation's common stock is listed on the New York
Stock Exchange and NYSE Chicago 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.
Entergy maintains a web page as part of its Investor Relations
website, entitled Regulatory and Other Information, which
provides investors with key updates of certain regulatory
proceedings and important milestones on the execution of its
strategy. While some of this information may be considered material
information, investors should not rely exclusively on this page for
all relevant company information.
For definitions of certain operating measures, as well as GAAP
and non-GAAP financial measures and abbreviations and acronyms used
in the earnings release materials, see Appendix F.
Non-GAAP Financial Measures
This news release contains non-GAAP financial measures, which
are generally numerical measures of a company's performance,
financial position, or cash flows that either exclude or include
amounts that are not normally excluded or included in the most
directly comparable measure calculated and presented in accordance
with GAAP. Entergy has provided quantitative reconciliations within
this news release of the non-GAAP financial measures to the most
directly comparable GAAP financial measures.
Entergy reports earnings using the non-GAAP measure of Entergy
adjusted earnings, which excludes the effect of certain
"adjustments," including the removal of the Entergy Wholesale
Commodities segment in light of the company's decision to exit the
merchant power business. Adjustments are unusual or non-recurring
items or events or other items or events that management believes
do not reflect the ongoing business of Entergy, such as the results
of the EWC segment, significant tax items, and other items such as
certain costs, expenses, or other specified items. In addition to
reporting GAAP consolidated earnings on a per share basis, Entergy
reports its adjusted earnings on a per share basis. These per share
measures represent the applicable earnings amount divided by the
diluted average number of common shares outstanding for the
period.
Management uses the non-GAAP financial measures of adjusted
earnings and adjusted earnings per share for, among other things,
financial planning and analysis; reporting financial results to the
board of directors, employees, stockholders, analysts, and
investors; and internal evaluation of financial performance.
Entergy believes that these non-GAAP financial measures provide
useful information to investors in evaluating the ongoing results
of Entergy's business, comparing period to period results, and
comparing Entergy's financial performance to the financial
performance of other companies in the utility sector.
Other non-GAAP measures, including adjusted EBITDA; adjusted
ROE; adjusted ROIC; gross liquidity; net liquidity; net liquidity,
including storm escrow balances; debt to capital, excluding
securitization debt; net debt to net capital, excluding
securitization debt; parent debt to total debt, excluding
securitization debt; FFO; FFO to debt, excluding securitization
debt; and FFO to debt, excluding securitization debt, return of
unprotected excess ADIT, and severance and retention payments
associated with exit of EWC, are measures Entergy uses internally
for management and board discussions and to gauge the overall
strength of its business. Entergy believes the above data provides
useful information to investors in evaluating Entergy's ongoing
financial results and flexibility, and assists investors in
comparing Entergy's credit and liquidity to the credit and
liquidity of others in the Utility sector. In addition, other
financial measures including net income (or earnings), adjusted for
preferred dividends and tax-effected interest expense; return on
average invested capital; and return on average common equity are
included on both an adjusted and an as-reported basis. In each
case, the metrics defined as "adjusted" (other than EWC's adjusted
EBITDA) excludes the effect of adjustments as defined above. EWC's
adjusted EBITDA represents EWC's earnings before interest, taxes,
and depreciation and amortization, and also excludes
decommissioning expense.
These non-GAAP financial measures reflect an additional way of
viewing aspects of Entergy's operations that, when viewed with
Entergy's GAAP results and the accompanying reconciliations to
corresponding GAAP financial measures, provide a more complete
understanding of factors and trends affecting Entergy's business.
These non-GAAP financial measures should not be used to the
exclusion of GAAP financial measures. Investors are strongly
encouraged to review Entergy's consolidated financial statements
and publicly filed reports in their entirety and not to rely on any
single financial measure. Although certain of these measures are
intended to assist investors in comparing Entergy's performance to
other companies in the utility sector, non-GAAP financial measures
are not standardized; therefore, it might not be possible to
compare these financial measures with other companies' non-GAAP
financial measures having the same or similar names.
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
2020 earnings guidance; its current financial and operational
outlooks; and other statements of Entergy's plans, beliefs, or
expectations included in this news release. Readers are cautioned
not to place undue reliance on these forward-looking statements,
which apply only as of the date of 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 (1) rate
proceedings, formula rate plans, and other cost recovery
mechanisms, including the risk that costs may not be recoverable to
the extent anticipated by the utilities and (2) implementation of
the ratemaking effects of changes in law; (c) uncertainties
associated with efforts to remediate the effects of major storms
and recover related restoration costs; (d) risks associated with
operating nuclear facilities, including plant relicensing,
operating, and regulatory costs and risks; (e) changes in
decommissioning trust fund values or earnings or in the timing or
cost of decommissioning Entergy's 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; (h) effects of changes in
federal, state, or local laws and regulations and other
governmental actions or policies, including changes in monetary,
fiscal, tax, environmental, or energy policies; (i) the effects of
technological changes and changes in commodity markets, capital
markets, or economic conditions; (j) impacts from a terrorist
attack, cybersecurity threats, data security breaches or other
attempts to disrupt Entergy's business or operations, and/or other
catastrophic events; and (k) the direct and indirect impacts of the
COVID-19 pandemic on Entergy and its customers.
First Quarter 2020 Earnings Release Appendices
and Financial Statements
Appendices
Appendices are presented in this section as
follows:
- A: Consolidated Results and Adjustments
- B: Earnings Variance Analysis
- C: Utility Financial and Operating Measures
- D: EWC Financial and Operating Measures
- E: Consolidated Financial Measures
- F: Definitions and Abbreviations and Acronyms
- G: Other GAAP to Non-GAAP Reconciliations
Financial Statements
Financial statements are
presented in this section.
A: Consolidated Results and Adjustments
Appendix A-1
provides a comparative summary of consolidated earnings, including
a reconciliation of as-reported earnings (GAAP) to adjusted
earnings (non-GAAP).
Appendix A-1:
Consolidated Earnings - Reconciliation of GAAP to Non-GAAP
Measures
First Quarter 2020
vs. 2019 (See Appendix A-3 and Appendix A-4 for details on
adjustments)
|
|
First
Quarter
|
|
2020
|
2019
|
Change
|
(After-tax, $ in
millions)
|
|
|
|
Earnings
(loss)
|
|
|
|
Utility
|
320
|
231
|
89
|
Parent &
Other
|
(90)
|
(73)
|
(18)
|
EWC
|
(111)
|
97
|
(208)
|
Consolidated
|
119
|
255
|
(136)
|
|
|
|
|
Less
adjustments
|
|
|
|
Utility
|
-
|
-
|
-
|
Parent &
Other
|
-
|
-
|
-
|
EWC
|
(111)
|
97
|
(208)
|
Consolidated
|
(111)
|
97
|
(208)
|
|
|
|
|
Adjusted earnings
(loss) (non-GAAP)
|
|
|
|
Utility
|
320
|
231
|
89
|
Parent &
Other
|
(90)
|
(73)
|
(18)
|
EWC
|
-
|
-
|
-
|
Consolidated
|
230
|
158
|
72
|
Estimated weather
in billed sales
|
(50)
|
(23)
|
(26)
|
|
|
|
|
Diluted average
number of common shares outstanding (in millions)
|
201
|
192
|
|
|
|
|
|
(After-tax, per share
in $) (a)
|
|
|
|
Earnings
(loss)
|
|
|
|
Utility
|
1.59
|
1.20
|
0.39
|
Parent &
Other
|
(0.45)
|
(0.38)
|
(0.07)
|
EWC
|
(0.55)
|
0.50
|
(1.05)
|
Consolidated
|
0.59
|
1.32
|
(0.73)
|
|
|
|
|
Less
adjustments
|
|
Utility
|
-
|
-
|
-
|
Parent &
Other
|
-
|
-
|
-
|
EWC
|
(0.55)
|
0.50
|
(1.05)
|
Consolidated
|
(0.55)
|
0.50
|
(1.05)
|
|
|
|
|
Adjusted earnings
(loss) (non-GAAP)
|
|
|
|
Utility
|
1.59
|
1.20
|
0.39
|
Parent &
Other
|
(0.45)
|
(0.38)
|
(0.07)
|
EWC
|
-
|
-
|
-
|
Consolidated
|
1.14
|
0.82
|
0.32
|
Estimated weather
in billed sales
|
(0.25)
|
(0.12)
|
(0.13)
|
Calculations may
differ due to rounding
|
(a)
|
Per share amounts are
calculated by dividing the corresponding earnings (loss) by the
diluted average number of common shares outstanding for the
period.
|
See Appendix B for detailed earnings variance analysis.
Appendix A-2 provides a comparative summary of OCF, by
business.
Appendix A-2:
Consolidated Operating Cash Flow
|
First Quarter 2020
vs. 2019
|
($ in
millions)
|
|
First
Quarter
|
|
2020
|
2019
|
Change
|
Utility
|
603
|
455
|
148
|
Parent &
Other
|
(81)
|
(78)
|
(3)
|
EWC
|
137
|
124
|
13
|
Consolidated
|
659
|
501
|
158
|
|
|
|
|
Calculations may
differ due to rounding
|
OCF increased quarter-over-quarter due primarily to higher
collections for fuel and purchased power cost recovery, a lower
amount of unprotected excess ADIT returned to customers, higher
nuclear insurance refunds, and lower nuclear refueling outage
spending at EWC. Unfavorable weather and higher pension
contributions partially offset the increase. Intercompany income
tax payments also contributed to the line of business
variances.
Appendix A-3 and Appendix A-4 list adjustments by business.
Amounts are shown on both an earnings and an EPS basis. Adjustments
are included in as-reported earnings consistent with GAAP but are
excluded from adjusted earnings. As a result, adjusted earnings is
considered a non-GAAP measure.
Appendix A-3:
Adjustments by Driver (shown as positive/(negative) impact on
earnings or EPS)
|
First Quarter 2020
vs. 2019
|
|
First
Quarter
|
|
2020
|
2019
|
Change
|
(Pre-tax except for
income taxes, preferred dividend requirements, and totals; $ in
millions)
|
|
|
|
EWC
|
|
|
|
Income before income
taxes
|
(141)
|
163
|
(304)
|
Income
taxes
|
(31)
|
66
|
(96)
|
Preferred dividend
requirements
|
1
|
1
|
-
|
Total EWC
|
(111)
|
97
|
(208)
|
|
|
|
|
Total
adjustments
|
(111)
|
97
|
(208)
|
|
|
|
|
(After-tax, per share
in $) (b)
|
|
|
|
EWC
|
|
|
|
Total EWC
|
(0.55)
|
0.50
|
(1.05)
|
|
|
|
|
Total
adjustments
|
(0.55)
|
0.50
|
(1.05)
|
|
|
|
|
Calculations may
differ due to rounding
|
(b)
|
Per share amounts are
calculated by dividing the corresponding earnings (loss) by the
diluted average number of common shares outstanding for the
period.
|
Appendix A-4:
Adjustments by Income Statement Line Item (shown as
positive/(negative) impact on earnings)
|
|
First Quarter 2020
vs. 2019
|
|
(Pre-tax except for
income taxes, preferred dividend requirements, and totals; $ in
millions)
|
|
|
First
Quarter
|
|
|
2020
|
2019
|
Change
|
|
EWC
|
|
|
|
|
Operating
revenue
|
333
|
434
|
(101)
|
|
Fuel and fuel-related
expenses
|
(20)
|
(25)
|
5
|
|
Purchased
power
|
(11)
|
(16)
|
5
|
|
Nuclear refueling
outage expenses
|
(12)
|
(12)
|
-
|
|
Other
O&M
|
(131)
|
(189)
|
58
|
|
Asset write-off and
impairments
|
(5)
|
(74)
|
69
|
|
Decommissioning
expense
|
(50)
|
(63)
|
13
|
|
Taxes other than
income taxes
|
(20)
|
(13)
|
(7)
|
|
Depreciation/amortization exp.
|
(35)
|
(38)
|
3
|
|
Other income
(deductions)–other
|
(184)
|
169
|
(352)
|
|
Interest exp. and
other charges
|
(5)
|
(9)
|
4
|
|
Income
taxes
|
31
|
(66)
|
96
|
|
Preferred dividend
requirements
|
(1)
|
(1)
|
-
|
|
Total
EWC
|
(111)
|
97
|
(208)
|
|
|
|
|
|
|
Total adjustments
(after-tax)
|
(111)
|
97
|
(208)
|
|
|
|
|
|
Calculations may
differ due to rounding
|
B: Earnings Variance Analysis
Appendix B provides
details of current quarter 2020 versus 2019 as-reported and
adjusted earnings variance analysis for Utility, Parent &
Other, and EWC.
Appendix B:
As-Reported and Adjusted Earnings Variance Analysis (c),
(d)
|
First Quarter 2020
vs. 2019
|
(After-tax, per share
in $)
|
|
Utility
|
|
Parent &
Other
|
|
EWC
|
|
Consolidated
|
|
As-Reported
|
Adjusted
|
|
As-Reported
|
Adjusted
|
|
As-
Reported
|
|
As-
Reported
|
Adjusted
|
2019
earnings
|
1.20
|
1.20
|
|
(0.38)
|
(0.38)
|
|
0.50
|
|
1.32
|
0.82
|
Operating revenue
less:
Fuel,
fuel-related expenses and gas
purchased for resale, Purchased
power, and Regulatory charges
(credits)
|
0.28
|
0.28
|
(e)
|
-
|
-
|
|
(0.37)
|
(f)
|
(0.09)
|
0.28
|
Nuclear refueling
outage expense
|
-
|
-
|
|
-
|
-
|
|
-
|
|
-
|
-
|
Other
O&M
|
0.08
|
0.08
|
(g)
|
0.02
|
0.02
|
|
0.24
|
(h)
|
0.34
|
0.10
|
Asset write-offs and
impairments
|
-
|
-
|
|
-
|
-
|
|
0.28
|
(i)
|
0.28
|
-
|
Decommissioning
expense
|
(0.02)
|
(0.02)
|
|
-
|
-
|
|
0.06
|
(j)
|
0.04
|
(0.02)
|
Taxes other than
income taxes
|
(0.02)
|
(0.02)
|
|
-
|
-
|
|
(0.03)
|
|
(0.05)
|
(0.02)
|
Depreciation/amortization exp.
|
(0.18)
|
(0.18)
|
(k)
|
-
|
-
|
|
0.01
|
|
(0.17)
|
(0.18)
|
Other income
(deductions)–other
|
(0.03)
|
(0.03)
|
|
-
|
-
|
|
(1.45)
|
(l)
|
(1.48)
|
(0.03)
|
Interest exp. and
other charges
|
(0.05)
|
(0.05)
|
(m)
|
0.01
|
0.01
|
|
0.02
|
|
(0.02)
|
(0.04)
|
Income
taxes–other
|
0.40
|
0.40
|
(n)
|
(0.12)
|
(0.12)
|
(o)
|
0.17
|
(p)
|
0.45
|
0.28
|
Preferred dividend
requirements
|
-
|
-
|
|
-
|
-
|
|
-
|
|
-
|
-
|
Share
effect
|
(0.07)
|
(0.07)
|
(q)
|
0.02
|
0.02
|
|
0.02
|
|
(0.03)
|
(0.05)
|
2020
earnings
|
1.59
|
1.59
|
|
(0.45)
|
(0.45)
|
|
(0.55)
|
|
0.59
|
1.14
|
|
|
|
|
|
|
|
|
|
|
|
Calculations may
differ due to rounding
|
(c)
|
Utility
operating revenue / regulatory charges and Utility
income taxes exclude $30 million in first quarter 2020 and
$61 million in first quarter 2019 for the return of unprotected
excess ADIT to customers (net effect is neutral to
earnings).
|
(d)
|
EPS effect is
calculated by multiplying the pre-tax amount by the estimated
income tax rate that is expected to apply and dividing by diluted
average number of common shares outstanding for the prior period;
income taxes–other represents income tax differences other than the
tax effect of individual line items.
|
(e)
|
The earnings increase
was primarily driven by rate activity from E-AR's FRP; E-LA's FRP,
including recovery of the J. Wayne Leonard Power Station (formerly
St Charles Power Station); E-MS's FRP; recovery of E-MS's Choctaw
Generating Station; and E-TX's TCRF and AMI rider. The variance
also reflected a first quarter 2019 regulatory reserve at E-AR, as
well as higher regulatory credits at E-LA for the difference
between asset retirement obligation-related expenses and trust
earnings plus asset retirement obligation-related costs collected
in revenue. Partially offsetting was the net effect of
volume/weather, as well as a regulatory liability for tax sharing
with E-LA customers (this partially offsets the Hurricane Isaac Act
55 income tax item discussed in footnote n).
|
(f)
|
The earnings decrease
was due largely to lower revenues from the shutdown of Pilgrim in
May 2019, as well as lower capacity and energy prices. These were
partially offset by higher energy volume at Indian
Point.
|
(g)
|
The earnings increase
from lower Utility other O&M was due largely to higher
nuclear insurance refunds and lower fossil and nuclear generation
spending. These were partially offset by higher pension and
benefits expenses, as well as higher E-MS storm damage provisions
(offset in operating revenue).
|
(h)
|
The earnings increase
from lower EWC other O&M was due largely to the shutdown
of Pilgrim in May 2019, as well as a decrease in severance and
retention expense.
|
(i)
|
The earnings increase
from lower EWC asset write-offs and impairments was due
primarily to higher impairment charges in first quarter 2019,
largely refueling outage costs at Indian Point.
|
(j)
|
The earnings increase
from lower EWC decommissioning expense was due to the sale
of Pilgrim in 2019.
|
(k)
|
The earnings decrease
from higher Utility depreciation expense was due primarily
to higher plant in service, including J. Wayne Leonard Power
Station and Choctaw County Generating Station, as well as higher
depreciation rates at E-MS.
|
(l)
|
The earnings decrease
from lower EWC other income (deductions)–other was due
largely to losses on the decommissioning trust fund investments in
first quarter 2020 as compared to gains in first quarter
2019.
|
(m)
|
The earnings decrease
from higher Utility interest expense was due primarily to
higher debt balances at E-LA and E-AR.
|
(n)
|
The earnings increase
from lower Utility effective income tax rate reflected two first
quarter 2020 items. A $55 million tax benefit was recorded as a
result of an IRS settlement related to Act 55 financing of
Hurricane Isaac costs (partly offset by customer sharing, recorded
as a regulatory charge discussed in footnote e). In addition, an
annual tax deduction related to stock-based compensation resulted
in an income tax benefit of $22million, $20 million greater than
first quarter 2019.
|
(o)
|
The earnings decrease
from higher Parent & Other effective income tax rate was due to
an increase in income tax expense of $23 million as a result of the
IRS settlement related to the Hurricane Isaac Act 55 financing
(discussed in footnote n).
|
(p)
|
The earnings increase
from lower EWC effective income tax rate is primarily due to a
first quarter 2019 accrual of $29 million of tax expense, which
resulted from the sale of Vermont Yankee in January
2019.
|
(q)
|
The earnings per
share impacts from share effect were due to settlement of
the equity forward (8.4 million shares settled in May
2019).
|
Utility
as-reported operating revenue less fuel,
fuel-related expenses and gas purchased for
resale; purchased power; and regulatory charges
(credits) variance analysis
2020 vs. 2019 ($
EPS)
|
|
1Q
|
Volume/weather
|
(0.04)
|
Retail electric
price
|
0.33
|
Reg. provision for
E-AR FRP
|
0.04
|
Reg. liability for
tax sharing
|
(0.10)
|
Other
|
0.05
|
Total
|
0.28
|
C: Utility Financial and Operating Measures
Appendix
C-1 and Appendix C-2 provide comparative summaries of Utility
operating and financial measures.
Appendix C-1: Utility
Operating and Financial Measures
|
First Quarter 2020
vs. 2019
|
|
First
Quarter
|
|
2020
|
2019
|
%
Change
|
% Weather
Adjusted (r)
|
GWh billed
|
|
|
|
|
Residential
|
8,126
|
8,471
|
(4.1)
|
1.4
|
Commercial
|
6,244
|
6,423
|
(2.8)
|
(2.7)
|
Governmental
|
595
|
601
|
(1.0)
|
(1.5)
|
Industrial
|
11,815
|
11,683
|
1.1
|
1.1
|
Total retail
sales
|
26,780
|
27,178
|
(1.5)
|
0.3
|
Wholesale
|
3,117
|
3,814
|
(18.3)
|
|
Total
sales
|
29,897
|
30,992
|
(3.5)
|
|
|
|
|
|
|
Number of electric
retail customers
|
|
|
|
|
Residential
|
2,504,243
|
2,485,256
|
0.8
|
|
Commercial
|
356,303
|
357,950
|
(0.5)
|
|
Governmental
|
17,724
|
17,814
|
(0.5)
|
|
Industrial
|
44,443
|
44,429
|
-
|
|
Total retail
customers
|
2,922,713
|
2,905,449
|
0.6
|
|
|
|
|
|
|
Other O&M and
refueling outage expense per MWh
|
$20.20
|
$20.12
|
0.4
|
|
|
|
|
|
|
|
Appendix C-2: Utility
Operating Measures
|
Twelve Months Ended
March 31, 2020 vs. 2019
|
|
Twelve Months Ended
March 31
|
|
2020
|
2019
|
%
Change
|
% Weather
Adjusted (r)
|
GWh billed
|
|
|
|
|
Residential
|
35,748
|
36,291
|
(1.5)
|
(0.8)
|
Commercial
|
28,576
|
29,117
|
(1.9)
|
(2.2)
|
Governmental
|
2,573
|
2,574
|
-
|
(0.4)
|
Industrial
|
48,616
|
48,662
|
(0.1)
|
(0.1)
|
Total retail
sales
|
115,513
|
116,644
|
(1.0)
|
(0.8)
|
|
|
|
|
|
Calculations may
differ due to rounding
|
(r)
|
The effects of
weather were estimated using heating degree days and cooling degree
days for the billing cycles from certain locations within each
jurisdiction and comparing to "normal" weather based on 20-year
historical data. The models used to estimate weather are updated
periodically and are subject to change.
|
On a weather-adjusted basis for first quarter 2020, billed
retail sales increased 0.3 percent. Residential billed sales
increased 1.4 percent primarily due to more days billed compared to
a year ago. Commercial billed sales decreased (2.7) percent driven
by the continued impact of energy efficiency as well as billing
delays. Industrial billed sales volume increased 1.1 percent driven
by continued growth from new/expansion customers, partially offset
by lower sales to existing large customers.
D: EWC Financial and Operating Measures
Appendix D-1
provides a comparative summary of EWC adjusted EBITDA
(non-GAAP).
Appendix D-1: EWC
Adjusted EBITDA - Reconciliation of GAAP to Non-GAAP
Measures
|
First Quarter 2020
vs. 2019
|
($ in
millions)
|
First
Quarter
|
|
2020
|
2019
|
Change
|
Net income
(loss)
|
(110)
|
97
|
(207)
|
Add back: interest
expense
|
5
|
9
|
(4)
|
Add back: income
taxes
|
(31)
|
66
|
(97)
|
Add back:
depreciation and amortization
|
35
|
38
|
(3)
|
Subtract: interest
and investment income
|
(172)
|
181
|
(353)
|
Add back:
decommissioning expense
|
50
|
63
|
(13)
|
Adjusted EBITDA
(non-GAAP)
|
122
|
92
|
30
|
|
|
|
|
Calculations may
differ due to rounding
|
Appendix D-2 provides a comparative summary of EWC operating and
financial measures.
Appendix D-2: EWC
Operational and Financial Measures
|
First Quarter 2020
vs. 2019
|
|
First
Quarter
|
|
2020
|
2019
|
% Change
|
Owned capacity (MW)
(s)
|
3,274
|
3,962
|
(17.4)
|
GWh billed
|
6,757
|
7,203
|
(6.2)
|
|
|
|
|
EWC Nuclear
Fleet
|
|
|
|
Capacity
factor
|
99%
|
85%
|
16.5
|
GWh billed
|
6,259
|
6,690
|
(6.5)
|
Production cost per
MWh
|
$15.42
|
$20.04
|
(23.1)
|
Average
energy/capacity revenue per MWh
|
$48.44
|
$57.99
|
(16.5)
|
Refueling outage
days
|
|
|
|
Indian Point
3
|
-
|
21
|
|
|
|
|
|
Calculations may
differ due to rounding
|
(s)
|
First quarter 2020
excludes Pilgrim (688MW), which was shut down May 31, 2019 and sold
August 26, 2019.
|
See the appendix in the webcast slide presentation for EWC
hedging and price disclosures.
E: Consolidated Financial Measures
Appendix E provides
comparative financial measures. Financial measures in this table
include those calculated and presented in accordance with GAAP, as
well as those that are considered non-GAAP financial measures.
Appendix E: GAAP
and Non-GAAP Financial Measures
|
First Quarter 2020
vs. 2019 (See Appendix G for reconciliation of GAAP to non-GAAP
financial measures)
|
|
|
For 12 months ending
March 31
|
2020
|
2019
|
Change
|
GAAP
Measures
|
|
|
|
As-reported
ROIC
|
5.6%
|
5.6%
|
0.0%
|
As-reported
ROE
|
11.5%
|
11.4%
|
0.1%
|
|
|
|
|
Non-GAAP Financial
Measures
|
|
|
|
Adjusted
ROIC
|
5.6%
|
5.5%
|
0.1%
|
Adjusted ROE
|
11.8%
|
11.5%
|
0.3%
|
|
|
|
|
As of March 31 ($ in
millions, except where noted)
|
2020
|
2019
|
Change
|
GAAP
Measures
|
|
|
|
Cash and
cash equivalents
|
1,464
|
983
|
480
|
Available revolver
capacity
|
3,348
|
3,950
|
(602)
|
Commercial
paper
|
1,942
|
1,942
|
(1)
|
Total debt
|
21,465
|
19,325
|
2,140
|
Securitization
debt
|
271
|
398
|
(127)
|
Debt to
capital
|
67.2%
|
67.8%
|
(0.6%)
|
Off-balance sheet
liabilities:
|
|
|
|
Debt of
joint ventures – Entergy's share
|
53
|
59
|
(7)
|
Total off-balance
sheet liabilities
|
53
|
59
|
(7)
|
|
|
|
|
Storm escrow
balances
|
373
|
405
|
(33)
|
|
|
|
|
Non-GAAP Financial
Measures ($ in millions, except where noted)
|
|
|
|
Debt to capital,
excluding securitization debt
|
66.9%
|
67.3%
|
(0.4%)
|
Gross
liquidity
|
4,811
|
4,933
|
(122)
|
Net
liquidity
|
2,870
|
2,991
|
(121)
|
Net liquidity,
including storm escrow balances
|
3,242
|
3,396
|
(154)
|
Net debt to net
capital, excluding securitization debt
|
65.3%
|
66.1%
|
(0.8%)
|
Parent debt to total
debt, excluding securitization debt
|
22.2%
|
21.7%
|
0.5%
|
FFO to debt, excluding
securitization debt
|
14.3%
|
11.1%
|
3.1%
|
FFO to debt, excluding
securitization debt, return of unprotected excess ADIT, and
severance and retention payments associated with exit of
EWC
|
16.0%
|
15.0%
|
1.0%
|
|
|
|
|
Calculations may
differ due to rounding
|
F: Definitions and Abbreviations and Acronyms
Appendix
F-1 provides definitions of certain operating measures, as well as
GAAP and non-GAAP financial measures.
Appendix F-1:
Definitions
|
Utility Financial
and Operating Measures
|
GWh billed
|
Total number of GWh
billed to retail and wholesale customers
|
Other O&M and
refueling outage expense per MWh
|
Other operation and
maintenance expense plus nuclear refueling outage expense per MWh
of billed sales
|
Number of electric
retail customers
|
Average number of
electric customers over the period
|
|
|
EWC Financial and
Operating Measures
|
Adjusted EBITDA
(non-GAAP)
|
Earnings before
interest, income taxes, and depreciation and amortization, and
excluding decommissioning expense
|
Average revenue under
contract per kW-month (applies to capacity contracts
only)
|
Revenue on a per unit
basis at which capacity is expected to be sold to third parties,
given existing contract prices and/or auction awards
|
Average revenue per
MWh on contracted volumes
|
Revenue on a per unit
basis at which generation output reflected in contracts is expected
to be sold to third parties (including offsetting positions) at the
minimum contract prices and at forward market prices at a point in
time, given existing contract or option exercise prices based on
expected dispatch or capacity, excluding the revenue associated
with the amortization of the below-market PPA for Palisades.
Revenue will fluctuate due to factors including positive or
negative basis differentials and other risk management
costs
|
Bundled capacity and
energy contracts
|
A contract for the
sale of installed capacity and related energy, priced per MWh
sold
|
Capacity
contracts
|
A contract for the
sale of the installed capacity product in regional markets managed
by NYISO and MISO
|
Capacity
factor
|
Normalized percentage
of the period that the nuclear plants generate power
|
Expected sold and
market total revenue per MWh
|
Total energy and
capacity revenue on a per unit basis at which total planned
generation output and capacity is expected to be sold given
contract terms and market prices at a point in time, including
positive or negative basis differentials and other risk management
costs, divided by total planned MWh of generation, excluding the
revenue associated with the amortization of the Palisades
below-market PPA
|
|
|
Appendix F-1:
Definitions (continued)
|
EWC Financial and
Operating Measures (continued)
|
GWh billed
|
Total number of GWh
billed to customers and financially-settled instruments
|
Owned capacity
(MW)
|
Installed capacity
owned by EWC
|
Percent of capacity
sold forward
|
Percent of planned
qualified capacity sold to mitigate price uncertainty under
physical or financial transactions
|
Percent of planned
generation under contract
|
Percent of planned
generation output 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, reflecting the
shutdown of Indian Point 2 (April 30, 2020), Indian Point 3 (April
30, 2021), and Palisades (May 31, 2022)
|
Planned TWh of
generation
|
Amount of output
expected to be generated by EWC resources considering plant
operating characteristics and outage schedules, reflecting the
shutdown of Indian Point 2 (April 30, 2020), Indian Point 3 (April
30, 2021), and Palisades (May 31, 2022)
|
Production cost per
MWh
|
Fuel and other
O&M expenses according to accounting standards that directly
relate to the production of electricity per MWh (based on net
generation)
|
Refueling outage
days
|
Number of days lost
for a scheduled refueling and maintenance outage during the
period
|
Unit-contingent
|
Transaction under
which power is supplied from a specific generation asset; if the
asset is in 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
|
As-reported
ROE
|
12-months rolling net
income attributable to Entergy Corporation divided by average
common equity
|
As-reported
ROIC
|
12-months rolling net
income attributable to Entergy Corporation adjusted for preferred
dividends and tax-effected interest expense divided by average
invested capital
|
Debt of joint
ventures – Entergy's share
|
Entergy's share of
debt issued by business joint ventures at EWC
|
Debt to
capital
|
Total debt divided by
total capitalization
|
Leases – Entergy's
share
|
Operating leases held
by subsidiaries capitalized at implicit interest rate
|
Available revolver
capacity
|
Amount of undrawn
capacity remaining on corporate and subsidiary revolvers
|
Securitization
debt
|
Debt on the balance
sheet associated with securitization bonds that is secured by
certain future customer collections
|
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 (continued)
|
Financial Measures -
Non-GAAP
|
Adjusted
EPS
|
As-reported EPS
excluding adjustments
|
Adjusted
ROE
|
12-months rolling
adjusted net income attributable to Entergy Corporation divided by
average common equity
|
Adjusted
ROIC
|
12-months rolling
adjusted net income attributable to Entergy Corporation adjusted
for preferred dividends and tax-effected interest expense divided
by average invested capital
|
Adjustments
|
Unusual or
non-recurring items or events or other items or events that
management believes do not reflect the ongoing business of Entergy,
such as the results of the EWC segment, significant tax items, and
other items such as certain costs, expenses, or other specified
items
|
Debt to capital,
excluding securitization debt
|
Total debt divided by
total capitalization, excluding securitization debt
|
FFO
|
OCF less
AFUDC-borrowed funds, working capital items in OCF (receivables,
fuel inventory, accounts payable, taxes accrued, interest accrued,
and other working capital accounts), and securitization regulatory
charges
|
FFO to debt,
excluding securitization debt
|
12-months rolling
adjusted FFO as a percentage of end of period total debt excluding
securitization debt
|
FFO to debt,
excluding securitization debt, return of unprotected excess ADIT,
and severance and retention payments associated with exit of
EWC
|
12-months rolling
adjusted FFO excluding return of unprotected excess ADIT and
severance and retention payments associated with exit of
EWC as a percentage of end of period total debt excluding
securitization debt
|
Gross
liquidity
|
Sum of cash and
available revolver capacity
|
Net debt to net
capital, excluding securitization debt
|
Total debt less cash
and cash equivalents divided by total capitalization less cash and
cash equivalents, excluding securitization debt
|
Net
liquidity
|
Sum of cash and
available revolver capacity less commercial paper
borrowing
|
Net liquidity,
including storm escrow reserves
|
Sum of cash,
available revolver capacity, and escrow accounts available for
certain storm expenses, less commercial paper borrowing
|
Parent debt to total
debt, excluding securitization debt
|
End of period Entergy
Corporation debt, including amounts drawn on credit revolver and
commercial paper facilities, as a percent of consolidated total
debt, excluding securitization debt
|
|
|
Appendix F-2 explains abbreviations and acronyms used in the
quarterly earnings materials.
Appendix F-2:
Abbreviations and Acronyms
|
ADIT
|
Accumulated deferred
income taxes
|
ISO
|
Independent system
operator
|
AFUDC –
borrowed
funds
|
Allowance for
borrowed funds used during construction
|
LCPS
|
Lake Charles Power
Station (CCGT)
|
ALJ
|
Administrative law
judge
|
LPSC
|
Louisiana Public
Service Commission
|
AMI
|
Advanced metering
infrastructure
|
LTM
|
Last twelve
months
|
ANO
|
Units 1 and 2 of
Arkansas Nuclear One owned by E-AR (nuclear)
|
MCPS
|
Montgomery County
Power Station (CCGT)
|
APSC
|
Arkansas Public
Service Commission
|
MISO
|
Midcontinent
Independent System Operator, Inc.
|
ARO
|
Asset retirement
obligation
|
Moody's
|
Moody's Investor
Service
|
bps
|
Basis
points
|
MPSC
|
Mississippi Public
Service Commission
|
CCGT
|
Combined cycle gas
turbine
|
MTEP
|
MISO Transmission
Expansion Plan
|
CCN
|
Certificate of
convenience and necessity
|
Nelson 6
|
Unit 6 of Roy S.
Nelson plant (coal)
|
CCNO
|
Council of the City
of New Orleans
|
NDT
|
Nuclear
decommissioning trust
|
Choctaw
|
Choctaw County
Generating Station (CCGT)
|
NOPS
|
New Orleans Power
Station
|
COD
|
Commercial operation
date
|
NRC
|
U.S. Nuclear
Regulatory Commission
|
CT
|
Simple cycle
combustion turbine
|
NY PSC
|
New York Public
Service Commission
|
CWIP
|
Construction work in
progress
|
NYISO
|
New York Independent
System Operator, Inc.
|
DCRF
|
Distribution cost
recovery factor
|
NYSE
|
New York Stock
Exchange
|
DOE
|
U.S. Department of
Energy
|
OCF
|
Net cash flow
provided by operating activities
|
E-AR
|
Entergy Arkansas,
LLC
|
OpCo
|
Utility operating
company
|
E-LA
|
Entergy Louisiana,
LLC
|
OPEB
|
Other post-employment
benefits
|
E-MS
|
Entergy Mississippi,
LLC
|
Other
O&M
|
Other non-fuel
operation and maintenance expense
|
E-NO
|
Entergy New Orleans,
LLC
|
P&O
|
Parent &
Other
|
E-TX
|
Entergy Texas,
Inc.
|
Palisades
|
Palisades Power Plant
(nuclear)
|
EBITDA
|
Earnings before
interest, income taxes, and depreciation and
amortization
|
Pilgrim
|
Pilgrim Nuclear Power
Station (nuclear, sold August 26, 2019)
|
ENP
|
Entergy Nuclear
Palisades, LLC
|
PMR
|
Performance
Management Rider
|
EPS
|
Earnings per
share
|
PPA
|
Power purchase
agreement or purchased power agreement
|
ETR
|
Entergy
Corporation
|
PSC
|
Public service
commission
|
EWC
|
Entergy Wholesale
Commodities
|
PUCT
|
Public Utility
Commission of Texas
|
FERC
|
Federal Energy
Regulatory Commission
|
RICE
|
Reciprocating
internal combustion engine
|
FFO
|
Funds from
operations
|
RFP
|
Request for
proposals
|
FRP
|
Formula rate
plan
|
ROE
|
Return on
equity
|
GAAP
|
U.S. generally
accepted accounting principles
|
ROIC
|
Return on invested
capital
|
Grand Gulf or
GGNS
|
Unit 1 of Grand Gulf
Nuclear Station (nuclear), 90% owned or leased by SERI
|
RS Cogen
|
RS Cogen facility
(CCGT cogeneration)
|
IIRR-G
|
Infrastructure
investment recovery rider - gas
|
RSP
|
Rate Stabilization
Plan (E-LA Gas)
|
Indian Point
1
|
Indian Point Energy
Center Unit 1 (nuclear) (shut down in 1974)
|
S&P
|
Standard &
Poor's
|
Indian Point
2
or IP2
|
Indian Point Energy
Center Unit 2 (nuclear) (shut down 4/30/20)
|
SEC
|
U.S. Securities and
Exchange Commission
|
Indian Point
3
or IP3
|
Indian Point Energy
Center Unit 3 (nuclear)
|
SERI
|
System Energy
Resources, Inc.
|
IPEC
|
Indian Point Energy
Center (nuclear)
|
TCRF
|
Transmission cost
recovery factor
|
ISES 2
|
Unit 2 of
Independence Steam Electric Station (coal)
|
UPSA
|
Unit Power Sales
Agreement
|
IRS
|
Internal Revenue
Service
|
Vermont
Yankee
|
Vermont Yankee
Nuclear Power Station (nuclear, sold January 11, 2019)
|
|
|
WACC
|
Weighted-average cost
of capital
|
|
|
WPEC
|
Washington Parish
Energy Center
|
|
G: Other 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 news release
to their most comparable GAAP measure.
Appendix G-1:
Reconciliation of GAAP to Non-GAAP Financial Measures - ROIC,
ROE
|
($ in millions except
where noted)
|
|
First
Quarter
|
|
|
2020
|
2019
|
As-reported net
income (loss) attributable to Entergy Corporation, rolling 12
months
|
(A)
|
1,105
|
970
|
Preferred
dividends
|
|
17
|
15
|
Tax-effected interest
expense
|
|
559
|
539
|
As-reported net
income (loss) attributable to Entergy Corporation, rolling 12
months adjusted for preferred dividends and tax-effected interest
expense
|
(B)
|
1,681
|
1,524
|
|
|
|
|
Adjustments in prior
three quarters
|
|
80
|
(103)
|
Adjustments in
current quarter
|
|
(111)
|
97
|
Total
adjustments, last 12 months
|
(C)
|
(31)
|
(6)
|
EWC preferred
dividends and tax-effected interest expense, rolling 12
months
|
|
22
|
30
|
|
|
|
|
Total adjustments,
adding back EWC preferred dividends and tax-effected interest
expense (non-GAAP)
|
(D)
|
(9)
|
24
|
|
|
|
|
Adjusted earnings,
rolling 12 months (non-GAAP)
|
(A-C)
|
1,136
|
976
|
Adjusted earnings,
rolling 12 months including preferred dividends and tax- effected
interest expense (non-GAAP)
|
(B-D)
|
1,690
|
1,501
|
|
|
|
|
Average invested
capital
|
(E)
|
30,229
|
27,184
|
|
|
|
|
Average common
equity
|
(F)
|
9,597
|
8,473
|
|
|
|
|
As-reported
ROIC
|
(B/E)
|
5.6%
|
5.6%
|
Adjusted ROIC
(non-GAAP)
|
[(B-D)/E]
|
5.6%
|
5.5%
|
As-reported
ROE
|
(A/F)
|
11.5%
|
11.4%
|
Adjusted ROE
(non-GAAP)
|
[(A-C)/F]
|
11.8%
|
11.5%
|
|
|
|
|
Calculations may
differ due to rounding
|
Appendix G-2:
Reconciliation of GAAP to Non-GAAP Financial Measures – Debt ratios
excluding securitization debt; gross liquidity; net liquidity; net
liquidity, including storm escrow balances
|
($ in millions except
where noted)
|
|
First
Quarter
|
|
|
2020
|
2019
|
Total debt
|
(A)
|
21,465
|
19,325
|
Less securitization
debt
|
(B)
|
271
|
398
|
Total debt, excluding
securitization debt
|
(C)
|
21,193
|
18,927
|
Less cash and cash
equivalents
|
(D)
|
1,464
|
983
|
Net debt, excluding
securitization debt
|
(E)
|
19,730
|
17,944
|
|
|
|
|
Commercial
paper
|
(F)
|
1,942
|
1,942
|
|
|
|
|
Total
capitalization
|
(G)
|
31,943
|
28,515
|
Less securitization
debt
|
(B)
|
271
|
398
|
Total capitalization,
excluding securitization debt
|
(H)
|
31,672
|
28,117
|
Less cash and cash
equivalents
|
(D)
|
1,464
|
983
|
Net capital,
excluding securitization debt
|
(I)
|
30,208
|
27,134
|
|
|
|
|
Debt to
capital
|
(A/G)
|
67.2%
|
67.8%
|
Debt to capital,
excluding securitization debt (non-GAAP)
|
(C/H)
|
66.9%
|
67.3%
|
Net debt to net
capital, excluding securitization debt (non-GAAP)
|
(E/I)
|
65.3%
|
66.1%
|
|
|
|
|
Available revolver
capacity
|
(J)
|
3,348
|
3,950
|
|
|
|
|
Storm escrow
balances
|
(K)
|
373
|
405
|
|
|
|
|
Gross liquidity
(non-GAAP)
|
(D+J)
|
4,811
|
4,933
|
Net liquidity
(non-GAAP)
|
(D+J-F)
|
2,870
|
2,991
|
Net liquidity,
including storm escrow balances (non-GAAP)
|
(D+J-F+K)
|
3,242
|
3,396
|
|
|
|
|
Entergy Corporation
notes:
|
|
|
|
Due September
2020
|
|
450
|
450
|
Due July
2022
|
|
650
|
650
|
Due September
2026
|
|
750
|
750
|
Total parent long-term
debt
|
(L)
|
1,850
|
1,850
|
Revolver
draw
|
(M)
|
922
|
320
|
Unamortized debt
issuance costs and discounts
|
(N)
|
(8)
|
(9)
|
Total parent
debt
|
(F+L+M+N)
|
4,706
|
4,103
|
|
|
|
|
Parent debt to total
debt, excluding securitization debt (non-GAAP)
|
[(F+L+M+N)/C]
|
22.2%
|
21.7%
|
|
|
|
|
Calculations may
differ due to rounding
|
Appendix G-3:
Reconciliation of GAAP to Non-GAAP Financial Measures – FFO to
debt, excluding securitization debt; FFO to debt, excluding
securitization debt, return of unprotected excess ADIT, and
severance and retention payments associated with exit of
EWC
|
($ in millions except
where noted)
|
|
First
Quarter
|
|
|
2020
|
2019
|
Total debt
|
(A)
|
21,465
|
19,325
|
Less securitization
debt
|
(B)
|
271
|
398
|
Total debt, excluding
securitization debt
|
(C)
|
21,193
|
18,927
|
|
|
|
|
Net cash flow
provided by operating activities, rolling 12 months
|
(D)
|
2,974
|
2,329
|
|
|
|
|
AFUDC – borrowed
funds, rolling 12 months
|
(E)
|
(63)
|
(65)
|
|
|
|
|
Working capital items
in net cash flow provided by operating activities (rolling 12
months):
|
|
|
|
Receivables
|
|
(71)
|
7
|
Fuel
inventory
|
|
(39)
|
58
|
Accounts
payable
|
|
(136)
|
103
|
Taxes
accrued
|
|
(21)
|
51
|
Interest
accrued
|
|
17
|
(5)
|
Other working capital
accounts
|
|
17
|
(178)
|
Securitization
regulatory charges
|
|
122
|
121
|
Total
|
(F)
|
(111)
|
157
|
|
|
|
|
FFO, rolling 12
months (non-GAAP)
|
(G)=(D+E-F)
|
3,023
|
2,107
|
|
|
|
|
FFO to debt,
excluding securitization debt (non-GAAP)
|
(G/C)
|
14.3%
|
11.1%
|
|
|
|
|
Estimated return of
unprotected excess ADIT (rolling 12 months pre-tax)
|
(H)
|
236
|
692
|
Severance and
retention payments associated with exit of EWC (rolling 12 months
pre-tax)
|
(I)
|
141
|
43
|
|
|
|
|
FFO to debt,
excluding securitization debt, return of unprotected excess ADIT,
and severance and retention payments associated with exit of EWC
(non-GAAP)
|
[(G+H+I)/(C)]
|
16.0%
|
15.0%
|
|
|
|
|
Calculations may
differ due to rounding
|
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SOURCE Entergy Corporation