Exhibit 99.6
Entergy Corporation
639 Loyola Avenue
New Orleans, LA 70113
News Release
Date: October 19, 2000
For Release: Immediate
Contact: Yolanda Pollard (News Media)
504-576-4190
[email protected]
Nancy Morovich (Investor Relations)
504-576-5506
[email protected]
Entergy Reports Continued Earnings Growth in Third Quarter
New Orleans - Entergy Corporation (NYSE:ETR) today
reported third quarter 2000 consolidated earnings that were
5 percent higher than earnings in same period of 1999.
Earnings per share from operations set a third quarter
record for the company - the third consecutive record
quarter - and were up 19 percent over operational earnings
per share in the third quarter of 1999.
Entergy's third quarter 2000 earnings were $299.9
million, or $1.34 per share, compared with earnings of
$286.2 million, or $1.16 per share, in third quarter 1999.
On an operational basis, Entergy's earnings were $306.1
million, or $1.37 per share, in third quarter 2000, compared
with $283.3 million, or $1.15 per share, in the year-earlier
period. Weather accounted for 6 cents of the increase in
third quarter earnings per share from 1999 to 2000, as
hotter-than-normal weather boosted sales of electricity in
both years. Other factors contributing to higher earnings
per share included non-weather-related growth in electricity
sales and the effect of Entergy's ongoing program to
repurchase shares of its common stock.
"With another record-breaking quarter for Entergy, we
continue to exceed expectations and to establish a record of
strong execution throughout the organization," said J. Wayne
Leonard, Entergy's chief executive officer.
"In a quarter full of significant announcements for
the company's future, it's significant that ongoing
operations have consistently improved," Leonard said. "Key
achievements during the quarter included:
- announcing a merger of equals with FPL Group,
- finalizing an agreement with The Shaw Group on our
power plant development joint venture,
- acquiring the nuclear decommissioning firm TLG
Services,
- breaking ground on the 425-megawatt RS Cogen facility
in Louisiana, and
- maintaining excellent performance in our utility
operations."
Utility Operations
In the third quarter of 2000, utility earnings on an
operational basis were $290.1 million, or $1.30 per share,
compared with $279.5 million, or $1.14 per share, in third
quarter 1999. Weather was more favorable in 2000,
contributing 17 cents per share to third quarter earnings
compared with 11 cents in 1999. Third quarter 2000 earnings
per share were also helped by sales growth of 1.7 percent on
a weather-adjusted volume basis. For the third quarter of
2000, total retail sales were 31.1 million kilowatt-hours,
compared with 30.3 million kWh for the same period in 1999.
In addition, the year-over-year increase in earnings per
share reflects a reduction in the number of outstanding shares,
due to Entergy's ongoing share repurchase program.
Partially offsetting these factors were current-period
increases in operating and maintenance spending. These
increases are primarily associated with increased nuclear
expenses, including expenses related to the steam turbine
inspections at Entergy's Arkansas Nuclear One plant, other
plant-related expenses, and increased spending in generating
plants and distribution facilities where the company took
steps to enhance reliability to meet peak summer demand.
"Entergy's utility operations achieved outstanding
performance in safety, reliability, customer service, and
availability of our generating units," Leonard said. "We
know that many customers were hit with higher bills as a
result of the hot weather, due in part to higher fuel costs.
Entergy realizes no profit on the fuel we burn in our
generating plants, and we will continue to do our best to
keep customers' fuel costs as low as possible."
Competitive Businesses
In third quarter 2000, Entergy's competitive businesses
earned $13.4 million, or 6 cents per share on an operational
basis, compared with $10.0 million, or 4 cents per share, in
third quarter 1999. Entergy Wholesale Operations reported
earnings per share of 3 cents in the third quarter of 2000,
unchanged from the same period in 1999. Strong trading
earnings of 6 cents per share and liquidated damages of 7
cents per share for delayed construction of the Saltend
generating plant project in the United Kingdom were
partially offset by development cost reserves, compensation-
related foreign tax adjustments and ongoing development
expenses at EWO.
Entergy Nuclear earned 3 cents per share in the third
quarter of 2000, equal to earnings in the third quarter of
1999. Both periods benefited from strong operations at the
Pilgrim Nuclear Power Station, which has run at a 94 percent
capacity factor in 2000.
The combined results of the competitive businesses in
third quarter 2000 do not include a 1999 loss of 2 cents per
share by retail operations, which were divested in 1999.
Parent & Other
Parent and Other earnings per share totaled 1 cent in
third quarter 2000, compared with a loss of 3 cents in third
quarter 1999. Results for the 2000 period benefited from
lower O&M expenses at the parent, reclassification of the
Gulf States merger goodwill amortization from the parent to
the utility, and telecommunications earnings. Partially
offsetting these improvements were slightly lower investment
income and higher interest expense in 2000.
Share Repurchase Program
During third quarter 2000, Entergy bought an additional
3.3 million shares of its common stock under the share
repurchase program at a cost of $108 million. Since the
initiation of the program through September 30, 2000,
Entergy repurchased 27.4 million shares and spent $726
million of what is now a $1.06 billion program, including
the incremental amount announced in association with the
pending merger with FPL Group. Purchases are expected to
continue until the authorized amount is fully spent.
The specific timing of the completion of the program will
depend on market conditions, but it is expected that the
program will be completed by the merger's financial close.
Outlook
"After three record quarters in a row, we are more
confident than ever that 2000 will be an outstanding
operational and financial year for Entergy," said C. John
Wilder, Entergy's chief financial officer. "We are
increasing our guidance on 2000 earnings to a range of $2.85
to $2.90 per share. This new range reflects 18 cents per
share contributed by weather-induced earnings, and the
remaining amount is attributed to improved operating
performance expected at the utility and EWO. Results for
2000 provide a strong foundation for continued earnings
growth supporting our 2001 earnings guidance range of $2.90
to $3.10 per share."
Entergy is a major global energy company with power
production, distribution operations and related diversified
services. Entergy owns, manages, or invests in power plants
generating nearly 30,000 megawatts of electricity
domestically and internationally, and delivers electricity to
about 2.5 million customers in portions of Arkansas,
Louisiana, Mississippi and Texas. It is also a leading
provider of wholesale energy marketing and trading services.
Entergy Corporation's on-line address is
http://www.entergy.com
The following constitutes a "Safe Harbor" statement under
the Private Securities Litigation Reform Act of 1995:
Investors are cautioned that forward-looking statements
contained in the foregoing release with respect to the
revenues, earnings, performance, strategies, prospects and
other aspects of the business of Entergy Corporation may
involve risks and uncertainties. A number of factors could
cause actual results or outcomes to differ materially from
those indicated by such forward-looking statements. These
factors include, but are not limited to, risks and
uncertainties relating to: the effects of weather, the
performance of generating units and transmission systems,
the possession of nuclear materials, fuel prices and
availability, the effects of regulatory decisions and
changes in law, litigation, capital spending requirements,
the onset of competition, advances in technology, changes in
accounting standards, corporate restructuring and changes in
capital structure, movements in the markets for electricity
and other energy-related commodities, changes in interest
rates and in financial and foreign currency markets
generally, changes in corporate strategies, and other
factors.
<PAGE>
ENTERGY CORPORATION
Earnings at a glance
Third Quarter 2000 1999 %
Operating Revenues $3,431.56 $3,064.54 12.0
Earnings $299.93 $286.22 4.8
Earnings per share* $1.34 $1.16 15.5
*Includes Special Items (EPS):
Depreciation adjustment - 0.04
Regulatory & reserve adjustments (0.03) (0.03)
------- -----
Total $( 0.03) $0.01
======= =====
Year to Date 2000 1999 %
Operating Revenues $7,380.84 $7,020.86 5.1
Earnings $635.99 $548.18 16.0
Earnings per share* $2.77 $2.22 24.8
*Includes Special Items (EPS) :
Gain on sale of Freestone Project $ 0.06 -
Change in unbilled revenue estimate 0.13
Depreciation adjustment - 0.04
SERI refund adjustments - (0.08)
Regulatory & reserve adjustments (0.09) (0.09)
Foreign tax benefits - 0.10
Gain on sale of Hyperion - 0.03
CitiPower purchase price adjustment - 0.02
EPG write-off of start-up costs per new
accounting standard - (0.01)
------ -----
Total $(0.03) $0.14
====== =====
Note - dollars in millions except per share amounts, which are actual.
<PAGE>
<TABLE>
<CAPTION>
Entergy Corporation
Consolidated Income Statement
Three Months Ended September 30
(in thousands)
2000 1999 %
Inc/(Dec)
(unaudited)
<S> <C> <C> <C>
Operating Revenues:
Domestic electric $2,385,087 $2,019,513 18.1
Natural gas 21,815 18,441 18.3
Steam products - - -
Competitive businesses 1,024,653 1,026,581 (0.2)
---------- ----------
Total 3,431,555 3,064,535 12.0
---------- ----------
Operating Expenses:
Operation and maintenance:
Fuel, fuel-related expenses,
and gas purchased for resale 794,782 584,211 36.0
Purchased power 1,158,145 1,139,855 1.6
Nuclear refueling outage expenses 18,439 19,594 (5.9)
Other operation and maintenance 504,379 417,339 20.9
Decommissioning 11,505 11,572 (0.6)
Taxes other than income taxes 103,188 93,028 10.9
Depreciation and amortization 188,967 161,616 16.9
Other regulatory charges (credits) - net 47,816 29,003 64.9
Amortization of rate deferrals 10,497 10,722 (2.1)
---------- ----------
Total 2,837,718 2,466,940 15.0
---------- ----------
Operating Income 593,837 597,595 (0.6)
---------- ----------
Other Income (Deductions):
Allowance for equity funds used during
construction 9,163 7,877 16.3
Gain (loss) on sales of assets - net (284) 587 (148.4)
Miscellaneous - net 53,873 29,077 85.3
---------- ----------
Total 62,752 37,541 67.2
---------- ----------
Interest and Other Charges:
Interest on long-term debt 121,464 116,615 4.2
Other interest - net 22,576 12,921 74.7
Dividends on preferred securities of subsidiaries 4,709 4,709 -
Allowance for borrowed funds used during
construction (6,776) (6,064) 11.7
---------- ----------
Total 141,973 128,181 10.8
---------- ----------
Income Before Income Taxes 514,616 506,955 1.5
Income Taxes 207,927 210,797 (1.4)
---------- ----------
Consolidated Net Income 306,689 296,158 3.6
Preferred dividend requirements of subsidiaries and other 6,755 9,939 (32.0)
---------- ----------
Earnings Applicable to Common Stock $299,934 $286,219 4.8
========== ==========
Earnings Per Average Common Share:
Basic $1.35 $1.16 16.4
Diluted $1.34 $1.16 15.5
Average Number of Common Shares Outstanding:
Basic 222,159,091 246,253,929
Diluted 224,352,165 246,389,119
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Entergy Corporation
Consolidated Income Statement
Nine Months Ended September 30
(in thousands)
2000 1999 %
Inc/(Dec)
(unaudited)
<S> <C> <C> <C>
Operating Revenues:
Domestic electric $5,402,657 $4,871,232 10.9
Natural gas 96,107 78,321 22.7
Steam products - 15,550 (100.0)
Competitive businesses 1,882,071 2,055,758 (8.4)
---------- ----------
Total 7,380,835 7,020,861 5.1
---------- ----------
Operating Expenses:
Operation and maintenance:
Fuel, fuel-related expenses,
and gas purchased for resale 1,756,972 1,478,055 18.9
Purchased power 2,030,210 2,190,481 (7.3)
Nuclear refueling outage expenses 53,625 56,414 (4.9)
Other operation and maintenance 1,332,012 1,195,677 11.4
Decommissioning 28,611 35,004 (18.3)
Taxes other than income taxes 266,346 259,149 2.8
Depreciation and amortization 545,991 523,165 4.4
Other regulatory charges (credits) - net 27,311 10,033 172.2
Amortization of rate deferrals 25,776 107,902 (76.1)
---------- ----------
Total 6,066,854 5,855,880 3.6
---------- ----------
Operating Income 1,313,981 1,164,981 12.8
---------- ----------
Other Income (Deductions):
Allowance for equity funds used during
construction 24,898 20,636 20.7
Gain on sales of assets - net 21,291 61,888 (65.6)
Miscellaneous - net 156,505 89,093 75.7
---------- ----------
Total 202,694 171,617 18.1
---------- ----------
Interest and Other Charges:
Interest on long-term debt 353,585 359,310 (1.6)
Other interest - net 66,227 58,404 13.4
Dividends on preferred securities of subsidiaries 14,128 14,128 0.0
Allowance for borrowed funds used during
construction (18,753) (16,469) 13.9
---------- ----------
Total 415,187 415,373 (0.0)
---------- ----------
Income Before Income Taxes 1,101,488 921,225 19.6
Income Taxes 440,616 342,403 28.7
---------- ----------
Consolidated Net Income 660,872 578,822 14.2
Preferred dividend requirements of subsidiaries and other 24,886 30,645 (18.8)
---------- ----------
Earnings Applicable to Common Stock $635,986 $548,177 16.0
========== ==========
Earnings Per Average Common Share:
Basic $2.78 $2.22 25.2
Diluted $2.77 $2.22 24.8
Average Number of Common Shares Outstanding:
Basic 228,930,171 246,541,754
Diluted 230,034,859 246,770,002
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Entergy Corporation
Consolidated Income Statement
Twelve Months Ended September 30
(in thousands)
2000 1999 %
Inc/(Dec)
(unaudited)
<S> <C> <C>
Operating Revenues:
Domestic electric $6,803,141 $6,152,247 10.6
Natural gas 128,141 102,060 25.6
Steam products - 27,001 (100.0)
Competitive businesses 2,201,920 2,824,972 (22.1)
---------- ----------
Total 9,133,202 9,106,280 0.3
---------- ----------
Operating Expenses:
Operation and maintenance:
Fuel, fuel-related expenses,
and gas purchased for resale 2,361,791 1,927,305 22.5
Purchased power 2,282,212 2,765,029 (17.5)
Nuclear refueling outage expenses 73,267 76,165 (3.8)
Other operation and maintenance 1,841,880 1,717,395 7.2
Decommissioning 39,596 45,246 (12.5)
Taxes other than income taxes 346,480 344,157 0.7
Depreciation and amortization 721,707 743,930 (3.0)
Other regulatory charges (credits) - net 32,111 33,410 (3.9)
Amortization of rate deferrals 33,500 125,697 (73.3)
---------- ----------
Total 7,732,544 7,778,334 (0.6)
---------- ----------
Operating Income 1,400,658 1,327,946 5.5
---------- ----------
Other Income (Deductions):
Allowance for equity funds used during
construction 33,553 23,451 43.1
Gain on sales of assets - net 31,327 390,920 (92.0)
Miscellaneous - net 221,835 120,770 83.7
---------- ----------
Total 286,715 535,141 (46.4)
---------- ----------
Interest and Other Charges:
Interest on long-term debt 471,153 529,126 (11.0)
Other interest - net 90,296 87,815 2.8
Dividends on preferred securities of subsidiaries 18,838 23,221 (18.9)
Allowance for borrowed funds used during
construction (24,869) (19,215) 29.4
---------- ----------
Total 555,418 620,947 (10.6)
---------- ----------
Income Before Income Taxes 1,131,955 1,242,140 (8.9)
Income Taxes 454,879 416,318 9.3
---------- ----------
Consolidated Net Income 677,076 825,822 (18.0)
Preferred dividend requirements of subsidiaries and other 36,808 42,114 (12.6)
---------- ----------
Earnings Applicable to Common Stock $640,268 $783,708 (18.3)
========== ==========
Earnings Per Average Common Share (Basic) $2.76 $3.18 (13.2)
Average Number of Common Shares Outstanding (Basic) 231,946,696 246,553,405
</TABLE>
[CAPTION]
Entergy Corporation
U.S. Utility Electric Energy Sales & Customers
Three Months Ended September
2000 1999 %
(Millions of kwh)
Electric Energy Sales:
Residential 11,573 11,007 5.1
Commercial 7,578 7,227 4.9
Governmental 744 720 3.4
Industrial 11,248 11,297 (0.4)
------ ------
Total to Ultimate 31,143 30,251 2.9
Customers
Wholesale 2,290 3,087 (25.8)
------ ------
Total Sales 33,433 33,338 0.3
====== ======
Nine Months Ended September
2000 1999 %
(Millions of kwh)
Electric Energy Sales:
Residential 24,943 24,274 2.8
Commercial 18,738 18,137 3.3
Governmental 1,966 1,932 1.7
Industrial 32,886 32,340 1.7
------ ------
Total to Ultimate 78,533 76,683 2.4
Customers
Wholesale 6,880 7,391 (6.9)
------ ------
Total Sales 85,413 84,074 1.6
====== ======
Twelve Months Ended September
2000 1999 %
(Millions of kwh)
Electric Energy Sales:
Residential 31,300 31,043 0.8
Commercial 24,376 23,868 2.1
Governmental 2,598 2,549 1.9
Industrial 44,095 43,216 2.0
------- -------
Total to Ultimate 102,369 100,676 1.7
Customers
Wholesale 9,203 10,998 (16.3)
------- -------
Total Sales 111,572 111,674 (0.1)
======= =======
September
2000 1999 %
Electric Customers
(Year to date average):
Residential 2,204,308 2,178,367 1.2
Commercial 288,473 281,267 2.6
Governmental 14,296 13,944 2.5
Industrial 42,476 42,496 (0.0)
--------- ---------
Total to Ultimate 2,549,553 2,516,074 1.3
Customers
Wholesale 38 42 (9.4)
--------- ---------
Total Customers 2,549,591 2,516,116 1.3
========= =========
