Entergy Reports First Quarter Earnings
Entergy Reports First Quarter Earnings
Company affirms 2018 guidance and long-term financial outlooks
NEW ORLEANS, April 25, 2018 /PRNewswire/ -- Entergy Corporation (NYSE: ETR) reported first quarter 2018 earnings per share of 73 cents on an as-reported basis and $1.16 on an operational basis. These results reflect the lower federal income tax rate, favorable weather of 9 cents and a loss of (4) cents from the implementation of ASU No. 2016-01, which now requires the mark-to-market of equity investments in the nuclear decommissioning trust funds at EWC.
"We've had a solid start to 2018 with success on key projects and regulatory initiatives," said Entergy Chairman and Chief Executive Officer Leo Denault. "Our results keep us on track to achieve our full year guidance and long-term outlooks."
Business highlights included the following:
-- Entergy New Orleans received approval for the New Orleans Power Station.
-- The LPSC approved Entergy Louisiana's unopposed settlement for its
formula rate plan.
-- Entergy Mississippi made its annual formula rate plan filing.
-- Entergy and parties filed a settlement memorandum of understanding with
the Vermont PUC for the sale of Vermont Yankee.
-- Indian Point 2 completed its final refueling and maintenance outage
before retirement.
-- Entergy was named for a third consecutive year by the Women's Business
Enterprise National Council to the list of America's Top Corporations
for Women's Business Enterprise, honoring corporations that have
implemented world-class policies and programs to enable growth and
reduce barriers for women-owned businesses.
Consolidated Earnings (GAAP and Non-GAAP Measures)
First Quarter 2018 vs. 2017 (See Appendix A for reconciliation of GAAP to non-
GAAP measures and description of special items)
------------------------------------------------------------------------------
First Quarter
-------------
2018 2017 Change
---- ---- ------
(After-tax, $ in millions)
As-reported
earnings 133 83 50
Less special
items (78) (95) 17
--- --- ---
Operational
earnings (non-
GAAP) 211 178 33
Estimated weather
in billed sales 16 (29) 46
(After-tax, per share in $)
As-reported
earnings 0.73 0.46 0.27
Less special
items (0.43) (0.53) 0.10
----- ----- ----
Operational
earnings (non-
GAAP) 1.16 0.99 0.17
Estimated weather
in billed sales 0.09 (0.16) 0.25
Calculations may differ due to
rounding
Consolidated Results
For first quarter 2018, the company reported earnings of $133 million, or 73 cents per share, on an as-reported basis and earnings of $211 million, or $1.16 per share, on an operational basis. This compared to first quarter 2017 earnings of $83 million, or 46 cents per share, on an as-reported basis and earnings of $178 million, or 99 cents per share on an operational basis.
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 variances by business is provided in Appendix B.
Utility, Parent & Other Results
For first quarter 2018, the Utility business reported earnings attributable to Entergy Corporation of $215 million, or $1.19 per share, compared to $165 million, or 92 cents per share, in first quarter 2017. Key drivers for the quarterly increase included higher net revenue and lower income tax expense, partially offset by higher operating expenses.
Net revenue increased quarter-over-quarter driven by favorable weather in first quarter 2018 compared to unfavorable weather a year ago. Weather-adjusted sales growth was positive, but was more than offset by lower volume in the unbilled period. Rate actions to recover investments that benefit customers were also more than offset by regulatory provisions recorded to return benefits from tax reform to customers at Entergy Louisiana and Entergy New Orleans.
On a weather-adjusted basis, billed sales increased 3.0 percent, including 4.1 percent and 2.4 percent for residential and commercial billed sales, respectively. Industrial billed sales volume increased 2.6 percent with higher sales to both new and expansion customers as well as existing customers. The increase was driven largely by the primary metals segment. Sales to petroleum refining customers were also higher.
Income tax expense was lower due primarily to the reduction of the federal income tax rate. Utility non-fuel O&M increased quarter-over-quarter, driven by higher spending on nuclear operations, primarily labor, and taxes other than income taxes.
For first quarter 2018, Parent & Other reported a loss of $(64 million), or (36) cents per share, compared to a loss of $(54 million), or (30) cents per share, in first quarter 2017.
On a combined basis, Utility, Parent & Other (non-GAAP) contributed 83 cents to first quarter 2018 consolidated EPS compared to 62 cents to first quarter 2017 consolidated EPS. On an adjusted basis, excluding special items and normalizing weather and income taxes, Utility, Parent & Other contributed 71 cents in first quarter 2018 to consolidated EPS, compared to 83 cents in first quarter 2017.
Appendix C contains additional details on Utility financial and operating measures, including a reconciliation for non-GAAP Utility, Parent & Other adjusted earnings and EPS.
Entergy Wholesale Commodities Results
For first quarter 2018, EWC recorded a loss attributable to Entergy Corporation of $(18 million), or (10) cents per share, on an as-reported basis and earned $60 million, or 33 cents per share, on an operational basis. This compared to a first quarter 2017 loss of $(28 million), or (16) cents per share, on an as-reported basis and earnings of $67 million, or 37 cents per share, on an operational basis.
As-reported losses in both periods reflected impairments and other expenses recorded as a result of strategic decisions for the wholesale business. These items were considered special items and excluded from operational earnings.
The sale of FitzPatrick at the end of first quarter 2017 affected period-over-period variances for multiple line items. Excluding FitzPatrick, quarterly earnings reflected lower other income, primarily due to losses on decommissioning trust funds previously classified as other comprehensive income on the balance sheet, now recorded to the income statement. The decrease was partially offset by lower income tax expense which resulted primarily from the reduction of the federal income tax rate.
Appendix D contains additional details on EWC financial and operating measures, including reconciliation for non-GAAP EWC operational adjusted EBITDA.
Earnings Guidance
Entergy affirmed its 2018 consolidated operational earnings guidance range of $6.25 to $6.85 per share and its Utility, Parent & Other adjusted guidance range of $4.50 to $4.90 per share. See webcast presentation slides for additional details, including Progress Against Guidance on slide 35.
The company has provided 2018 earnings guidance with regard to the non-GAAP measures of consolidated operational EPS and Utility, Parent & Other adjusted EPS. These measures exclude from the corresponding GAAP financial measures the effect of special items 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 special items that may occur during 2018. The only anticipated special items that the company can reasonably estimate at this time are those that relate to the decisions to sell or close the company's merchant nuclear plants; these estimated costs, which are excluded from the earnings guidance, are expected to decrease as-reported EPS by approximately $(2.55) per share in 2018.
Earnings Teleconference
A teleconference will be held at 10:00 a.m. Central Time on Wednesday, April 25, 2018, 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 9178845, 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 May 2, 2018, by dialing 855-859-2056, conference ID 9178845. 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 9,000 megawatts of nuclear power. Entergy delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of approximately $11 billion and more than 13,000 employees.
Entergy Corporation's common stock is listed on the New York and Chicago stock 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.
Entergy maintains a web page as part of its Investor Relations website, entitled "Regulatory and Other Information," which provides investors with key updates of 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. Generally, a non-GAAP financial measure is a numerical measure of a company's performance, financial position, or cash flows that either excludes or includes 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 release of the non-GAAP financial measures to the most directly comparable GAAP financial measures.
Certain non-GAAP financial measures in this news release could differ from GAAP only in that the figure or ratio states or includes operational earnings. Operational earnings are not calculated in accordance with GAAP because they exclude the effect of "special items." Special items are unusual or non-recurring items or events or other items or events that management believes do not reflect the ongoing business of Entergy, and may include items such as impairments, gains or losses on asset sales, and other gains or losses occurring as a result of strategic decisions such as Entergy's decisions to shut down or sell its merchant nuclear plants. In addition, other financial measures including net income (or earnings), adjusted for preferred dividends and tax effected interest expense; net revenue; return on average invested capital; and return on average common equity are included on both an operational and as-reported basis. In each case, the metrics defined as "operational" would exclude the effect of special items as defined above.
Entergy reports the combination of the Utility segment with Parent & Other as Utility, Parent & Other, which is all of Entergy excluding the EWC segment, since management uses this combination in making decisions about its ongoing business in light of its decision to exit the merchant power business. Entergy also reports Utility, Parent & Other adjusted earnings, which combines the Utility segment with Parent & Other, excludes applicable special items and normalizes weather and income tax expense for the periods presented, because it believes that these financial metrics provide useful information to investors in evaluating the ongoing results of Entergy's businesses and assist investors in comparing Entergy's financial performance to the financial performance of other companies in the Utility sector. The methodologies employed to determine the normalized weather and income tax expense adjustments, each of which is further described in this release, involve estimations and the judgement of management.
In addition to reporting earnings per share on a consolidated basis, Entergy reports on a per share basis the earnings or loss of each of its segments, together with the combination of the Utility segment and Parent & Other. These per share measures represent the net income or loss of such segment or segments divided by the diluted average number of shares of common stock outstanding for the period. Entergy believes such per share measures provide useful information to investors in understanding the results of operations of those businesses and their contribution to Entergy's consolidated results of operations.
Other non-GAAP measures, including adjusted EBITDA; operational adjusted EBITDA; gross liquidity; debt to capital ratio, excluding securitization debt; net debt to net capital ratio, excluding securitization debt; parent debt to total debt ratio, excluding securitization debt; debt to operational adjusted EBITDA ratio, excluding securitization debt; and operational FFO to debt ratio, excluding securitization debt are measures Entergy uses internally for management and board discussions and cash budgeting and performance monitoring activities 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.
The non-GAAP financial measures and other reported adjusted items in this release are presented in addition to, and in conjunction with, results presented in accordance with GAAP. These non-GAAP financial measures should not be used to the exclusion of GAAP financial measures. 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. Investors are strongly encouraged to review Entergy's consolidated financial statements and publicly filed reports in their entirety and to not rely on any single financial measure. 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 2018 earnings guidance; its current financial and operational outlook; 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) 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 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; and (i) the effects of technological changes and changes in commodity markets, capital markets or economic conditions, during the periods covered by the forward-looking statements.
First Quarter 2018 Earnings Release Appendices and Financial Statements
Appendices
Appendices are presented in this section as follows:
-- A: Consolidated Results and Special Items
-- 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: GAAP to Non-GAAP Reconciliations
A: Consolidated Results and Special Items
Appendix A-1 provides a comparative summary of consolidated earnings, including a reconciliation of as-reported earnings (GAAP) to operational earnings (non-GAAP).
Appendix A-1: Consolidated Earnings - Reconciliation of GAAP to Non-GAAP
Measures
First Quarter 2018 vs. 2017 (See Appendix A-3 and Appendix A-4 for
details on special items)
------------------------------------------------------------------
First Quarter
-------------
2018 2017 Change
---- ---- ------
(After-tax, $ in millions)
Earnings (loss)
Utility 215 165 50
Parent &
Other (64) (54) (10)
EWC (18) (28) 9
--- --- ---
Consolidated 133 83 50
Less special items
Utility - - -
Parent &
Other - - -
EWC (78) (95) 17
--- --- ---
Consolidated (78) (95) 17
Operational earnings (loss)
(non-GAAP)
Utility 215 165 50
Parent &
Other (64) (54) (10)
EWC 60 67 (8)
--- --- ---
Consolidated 211 178 33
Estimated
weather in
billed sales 16 (29) 46
Diluted
average
number of
common
shares
outstanding
(in
millions) 181.4 179.8
(After-tax, per share in $) (a)
Earnings (loss)
Utility 1.19 0.92 0.27
Parent &
Other (0.36) (0.30) (0.06)
EWC (0.10) (0.16) 0.06
----- ----- ----
Consolidated 0.73 0.46 0.27
Less special items
Utility - - -
Parent &
Other - - -
EWC (0.43) (0.53) 0.10
----- ----- ----
Consolidated (0.43) (0.53) 0.10
Operational earnings (loss)
(non-GAAP)
Utility 1.19 0.92 0.27
Parent &
Other (0.36) (0.30) (0.06)
EWC 0.33 0.37 (0.04)
---- ---- -----
Consolidated 1.16 0.99 0.17
Estimated
weather in
billed sales 0.09 (0.16) 0.25
------------- ---- ----- ----
Calculations may differ due to
rounding
(a) Per share amounts are calculated by
dividing the corresponding
earnings (loss) by the diluted
average number of common shares
outstanding for the period.
See Appendix B for detailed earnings variance analysis. See Appendix A-3 for special items by driver.
Appendix A-2 provides a comparative summary OCF, by business.
Appendix A-2: Consolidated Operating Cash Flow
First Quarter 2018 vs. 2017
---------------------------
($ in millions)
First Quarter
-------------
2018 2017 Change
---- ---- ------
Utility 523 558 (35)
Parent & Other (57) (176) 119
EWC 91 147 (56)
--- --- ---
Consolidated 557 529 28
Calculations may differ due to
rounding
OCF increased quarter-over-quarter driven in part by lower refueling outage spending. Favorable weather in the quarter, compared to unfavorable weather a year ago, also contributed. Lower net revenue at EWC partially offset the increase. 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 earnings and EPS basis. Special items are included in as-reported earnings consistent with GAAP, but are excluded from operational earnings. As a result, operational earnings is considered a non-GAAP measure.
Appendix A-3: Special Items by Driver (shown as positive/(negative)
impact on earnings or EPS)
First Quarter 2018 vs. 2017
---------------------------
First Quarter
-------------
2018 2017 Change
---- ---- ------
(Pre-tax except for income tax
effects and total, $ in millions)
EWC
Items
associated
with
decisions
to close
or sell
EWC
nuclear
plants (99) (231) 132
Gain on
the sale
of
FitzPatrick - 16 (16)
Income tax
effect on
adjustments
above (b) 21 75 (54)
Income tax
benefit
resulting
from
FitzPatrick
transaction - 45 (45)
Total EWC (78) (95) 17
Total
special
items (78) (95) 17
(After-tax, per
share in $) (c)
EWC
Items
associated
with
decisions
to close
or sell
EWC
nuclear
plants (0.43) (0.84) 0.41
Gain on
the sale
of
FitzPatrick - 0.06 (0.06)
Income tax
benefit
resulting
from
FitzPatrick
transaction - 0.25 (0.25)
Total EWC (0.43) (0.53) 0.10
Total
special
items (0.43) (0.53) 0.10
Calculations may differ due to
rounding
(b) Income tax effect is
calculated by multiplying the
pre-tax amount by the
estimated income tax rate
that is expected to apply.
(c) EPS effect is calculated by
multiplying the pre-tax
amount by the estimated
income tax rate that is
expected to apply to each
adjustment and then dividing
by the diluted average number
of common shares outstanding
for the period.
Appendix A-4: Special Items by Income Statement Line Item (shown as
positive/(negative) impact on earnings)
First Quarter 2018 vs. 2017
---------------------------
(Pre-tax except for Income taxes and total, $ in millions)
First Quarter
-------------
2018 2017 Change
---- ---- ------
EWC
Net revenue - 91 (91)
Non-fuel O&M (25) (120) 95
Asset write-
off and
impairments (73) (212) 139
Taxes other
than income
taxes (1) (4) 4
Gain on sale of
assets - 16 (16)
Miscellaneous
net (other
income) - 15 (15)
Income taxes
(d) 21 120 (99)
--- --- ---
Total EWC (78) (95) 17
Total special
items (after-
tax) (78) (95) 17
Calculations may differ due to
rounding
(d) Income taxes include the
income tax effect of the
special items which were
calculated using the
estimated income tax rate
that is expected to apply to
each item. First quarter 2017
also includes the income tax
benefit which resulted from
the FitzPatrick transaction.
B: Earnings Variance Analysis
Appendix B provides details of current quarter 2018 versus 2017 as-reported and operational earnings variance analysis for Utility, Parent & Other and EWC.
Appendix B: As-Reported and Operational Earnings Variance Analysis
First Quarter 2018 vs. 2017
---------------------------
(Pre-tax except for Income taxes, $ in millions)
Utility Parent & Other EWC Consolidated
As-Reported Opera-tional As-Reported Opera-tional As- Opera-tional As- Opera-
Reported Reported tional
2017 earnings 165 165 (54) (54) (28) 67 83 178
Net revenue 55 55 (e) - - (112) (22) (f) (57) 34
Non-fuel O&M (35) (35) (g) - - 98 3 (h) 63 (32)
Asset write-offs and impairments - - - - 139 - (i) 139 -
Decommissioning expense 3 3 - - 17 17 (j) 20 20
Taxes other than income taxes (15) (15) (k) - - 7 3 (9) (12)
Depreciation/amortization exp. (14) (14) - - 14 14 - -
Gain on sale of assets - - - - (16) - (l) (16) -
Other income (deductions)-other 12 12 (1) (1) (57) (43) (m) (47) (32)
Interest exp. and other charges (2) (2) (4) (4) (2) (2) (8) (8)
Income taxes 46 46 (n) (5) (5) (77) 22 (o) (36) 63
2018 earnings 215 215 (64) (64) (18) 60 133 211
--- --- --- --- --- --- --- ---
Calculations may differ due to
rounding
See appendix in the webcast slide presentation for additional details on EWC line item variances.
(e) The earnings increase from higher Utility
net revenue was driven by weather, which
was positive in first quarter 2018 and
negative in first quarter 2017. While
weather-adjusted billed sales volume
increased across all classes, the net
revenue effect was more than offset by
lower volume in the unbilled period.
Rate changes including E-AR's 2018 FRP
and E-TX's TCRF and DCRF also
contributed to the increase, but
regulatory provisions at E-LA and E-NO
to reflect regulatory agreements to
return the benefits of the lower
effective tax rate in first quarter 2018
to customers more than offset the rate
changes.
(f) The earnings decrease from lower EWC net
revenue reflected lower volume from
merchant nuclear plants, including
FitzPatrick (sold first quarter 2017),
largely offset by higher nuclear energy
prices. The as-reported variance also
reflected cost reimbursements from the
buyer related to the FitzPatrick sale
(classified as a special item and offset
in non-fuel O&M).
(g) The earnings decrease from higher Utility
non-fuel O&M was primarily due to
higher spending on nuclear operations,
higher energy efficiency and storm
reserve costs (largely offset in net
revenue), as well as higher spending on
fossil work. This was partly offset by
higher nuclear insurance refunds in
first quarter 2018.
(h) The as-reported earnings increase from
lower EWC non-fuel O&M is primarily due
to costs incurred in first quarter 2017
related to the agreement to sell
FitzPatrick (classified as a special
item and offset in net revenue).
(i) The as-reported earnings increase from
lower EWC asset write-offs and
impairments was due to lower impairment
charges for EWC nuclear plants, partly
due to Palisades no longer being
impaired as a result of the decision to
operate that plant until May 2022, as
well as lower refueling outage costs
charged to impairment (classified as a
special item).
(j) The earnings increase from lower EWC
decommissioning expense was primarily
due to the sale of FitzPatrick in first
quarter 2017.
(k) The earnings decrease from higher Utility
taxes other than income taxes was due to
higher franchise, ad valorem and payroll
taxes.
(l) The as-reported earnings decrease from
lower EWC gain on sale of assets was due
to the gain on the sale of FitzPatrick
in first quarter 2017 (classified as a
special item).
Utility Net Revenue
Variance Analysis
2018 vs. 2017 (Pre-tax, $ in millions)
-------------------------------------
1Q
---
Estimated weather 69
Volume/unbilled (9)
Retail electric price 18
Reg. provisions for tax reform (29)
Other 6
---
Total 55
----- ---
(m) The earnings decrease from lower EWC other
income (deductions)-other was due largely
to losses on the decommissioning trust
fund investments in first quarter 2018,
including unrealized losses on equity
investments that were previously recorded
to other comprehensive income for periods
prior to 2018. In first quarter 2017,
only realized gains along with interest
and dividends from the decommissioning
trust fund investments, were recorded to
the income statement. The as-reported
earnings decrease also reflected the
absence of gains on the receipt of the
Indian Point 3 and FitzPatrick
decommissioning trust funds from NYPA in
first quarter 2017 (classified as a
special item).
(n) The earnings increase from lower Utility
income taxes is primarily due to the
change in the federal income tax rate.
(o) The as-reported earnings decrease from
higher EWC income taxes is primarily due
to the tax benefit in first quarter 2017,
which resulted from the sale of
FitzPatrick (classified as a special
item). The change in the federal income
tax rate, as well as a change in pre-tax
income was reflected in the as-reported
and operational variances.
C: Utility Financial and Operating Measures
Appendix C-1 provides a comparative summary of Utility, Parent & Other adjusted earnings and EPS contribution, each of which excludes the effects of special items and normalizes weather and income tax expense.
Appendix C-1: Utility, Parent & Other Adjusted Earnings and EPS -
Reconciliation of GAAP to Non-GAAP Measures
First Quarter 2018 vs. 2017
---------------------------
First Quarter
-------------
2018 2017 Change
---- ---- ------
($ in
millions)
Utility as-
reported
earnings 215 165 50
Parent &
Other as-
reported
earnings
(loss) (64) (54) (10)
UP&O as-
reported
earnings 151 110 41
Less:
Special
items - - -
Estimated
weather
(p) 22 (48) 69
Tax effect
of
estimated
weather
(q) (6) 18 (24)
--- --- ---
Estimated
weather
impact
(after-
tax) 16 (29) 46
Other
income tax
items (r) 6 (9) 15
UP&O
adjusted
earnings 129 149 (20)
(After tax,
per share
in $)(s)
Utility as-
reported
earnings 1.19 0.92 0.27
Parent &
Other as-
reported
earnings
(loss) (0.36) (0.30) (0.06)
----- ----- -----
UP&O as-
reported
earnings 0.83 0.62 0.21
Less:
Special
items - - -
Estimated
weather 0.09 (0.16) 0.25
Other
income tax
items 0.03 (0.05) 0.08
---- ----- ----
UP&O
adjusted
earnings 0.71 0.83 (0.12)
--------- ---- ---- -----
Calculations may differ due to
rounding
(p) The effects of weather were
estimated using heating degree
days and cooling degree days for
the billing cycles from certain
locations within each jurisdiction
and comparing to "normal" weather
based on 20-year historical data.
The models used to estimate
weather are updated periodically
and are subject to change.
(q) Income tax effect is calculated by
multiplying the pre-tax amount by
the estimated income tax rates
that are expected to apply.
(r) Other income tax items represent
the adjustment made to income tax
expense to reflect a statutory tax
rate estimated to be 25.5% in 2018
and 38.5% in 2017.
(s) Per share amounts are calculated by
dividing the corresponding
earnings (loss) by the diluted
average number of common shares
outstanding for the period.
Appendix C-2 and Appendix C-3 provides comparative summaries of Utility operating and financial measures.
Appendix C-2: Utility Operating and Financial Measures
First Quarter 2018 vs. 2017
---------------------------
First Quarter
-------------
2018 2017% % Weather
Adjusted (t)
Change
--- ---
GWh billed
Residential 9,287 7,637 21.6 4.1
Commercial 6,732 6,439 4.6 2.4
Governmental 608 593 2.5 2.2
Industrial 11,405 11,117 2.6 2.6
------ ------ --- ---
Total
retail
sales 28,032 25,786 8.7 3.0
Wholesale 3,244 3,022 7.3
Total
sales 31,276 28,808 8.6
Number of electric retail
customers
Residential 2,476,056 2,469,879 0.3
Commercial 356,034 355,138 0.3
Governmental 17,945 18,229 (1.6)
Industrial 40,856 41,043 (0.5)
Total
retail
customers 2,890,891 2,884,289 0.2
As-
reported
net
revenue
($ in
millions) 1,460 1,404 4.0
Non-
fuel
O&M
per
MWh $20.09 $20.61 (2.5)
Appendix C-3: Utility Operating Measures
Twelve Months Ended March 31, 2018 vs. 2017
-------------------------------------------
Twelve Months Ended March 31
----------------------------
2018 2017% % Weather Adjusted (t)
Change
--- ---
GWh billed
Residential 35,484 34,612 2.5 3.0
Commercial 29,039 29,125 (0.3) 1.8
Governmental 2,525 2,540 (0.6) 0.1
Industrial 48,057 45,801 4.9 4.9
Total retail sales 115,105 112,078 2.7 3.4
Calculations may differ due to
rounding
Certain prior year data has been
reclassified to conform with
current year presentation
(t) The effects of weather were
estimated using heating
degree days and cooling
degree days for the billing
cycles from certain
locations within each
jurisdiction and comparing
to "normal" weather based on
20-year historical data. The
models used to estimate
weather are updated
periodically and are subject
to change.
D: EWC Financial and Operating Measures
Appendix D-1 provides a comparative summary of EWC operational adjusted EBITDA (non-GAAP).
Appendix D-1: EWC Operational Adjusted EBITDA - Reconciliation of GAAP to
Non-GAAP Measures
-------------------------------------------------------------------------
First Quarter 2018 vs. 2017
---------------------------
($ in millions) First Quarter
-------------
2018 2017 Change
---- ---- ------
Net income (loss) (18) (27) 9
Add back: interest
expense 8 6 2
Add back: income
taxes (1) (78) 77
Add back:
depreciation and
amortization 38 53 (15)
Subtract: interest
and investment
income (1) 43 (44)
Add back:
decommissioning
expense 58 75 (17)
--- --- ---
Adjusted EBITDA
(non-GAAP) 86 (15) 101
Add back pre-tax special items for:
Items associated
with decisions to
close or sell EWC
nuclear plants 99 231 (132)
Gain on the sale of
FitzPatrick - (16) 16
--- --- ---
Operational adjusted
EBITDA (non-GAAP) 185 200 (15)
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 2018 vs. 2017 (See Appendix G for reconciliation of GAAP to non-GAAP
measures)
----------------------------------------------------------------------------------
First Quarter
-------------
2018 2017 % Change
---- ---- --------
Owned capacity
(MW) (u) 3,962 4,800 (17.5)
GWh billed 7,885 8,363 (5.7)
As-reported
net revenue ($
in millions) 382 494 (22.7)
Operational net
revenue (non-
GAAP) ($ in
millions) 382 404 (5.4)
EWC Nuclear Fleet
-----------------
Capacity factor 83% 80% 3.7
GWh billed 6,408 7,835 (18.2)
Production cost
per MWh $18.75 $16.36 14.6
Average energy/
capacity
revenue per
MWh (v) $56.96 $55.15 3.3
As-reported
net revenue ($
in millions) 379 491 (22.9)
Operational net
revenue ($ in
millions) 379 401 (5.6)
Refueling outage days
FitzPatrick - 42
Indian Point 2 13 -
Indian Point 3 - 19
Calculations may differ due to
rounding
(u) FitzPatrick (838 MW) was
sold on 3/31/17.
(v) Average energy and capacity
revenue per MWh excluding
FitzPatrick was $55.27 in
first quarter 2017.
See 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 2018 vs. 2017 (See Appendix G for reconciliation of GAAP
to non-GAAP financial measures)
----------------------------------------------------------------------
For
12
months
ending
March
31 2018 2017 Change
---- ---- ------
GAAP Measures
ROIC
-
as-
reported 3.9% (1.3%) 5.2%
ROE
-
as-
reported 5.8% (8.4%) 14.2%
Book
value
per
share $44.11 $44.90 ($0.79)
End
of
period
shares
outstanding
(in
millions) 180.8 179.4 1.4
Non-GAAP Measures
ROIC
-
operational 7.4% 6.7% 0.7%
ROE
-
operational 16.6% 13.9% 2.7%
As
of
March
31
($
in
millions) 2018 2017 Change
---- ---- ------
GAAP Measures
Cash
and
cash
equivalents 1,206 1,083 123
Revolver
capacity 3,010 4,185 (1,175)
Commercial
paper 655 1,088 (433)
Total
debt 17,680 15,611 2,069
Securitization
debt 520 637 (117)
Debt
to
capital 68.4% 65.4% 3.0%
Off-balance sheet
liabilities:
Debt
of
joint
ventures
-
Entergy's
share 66 71 (5)
Leases
-
Entergy's
share 429 397 32
Power
purchase
agreements
accounted
for
as
leases 136 166 (30)
--- --- ---
Total
off-
balance
sheet
liabilities 631 634 (3)
Non-GAAP Financial
Measures
Debt
to
capital,
excluding
securitization
debt 67.7% 64.4% 3.3%
Gross
liquidity 4,216 5,268 (1,052)
Net
debt
to
net
capital,
excluding
securitization
debt 66.1% 62.7% 3.4%
Parent
debt
to
total
debt,
excluding
securitization
debt 21.2% 21.1% 0.1%
Debt
to
operational
adjusted
EBITDA,
excluding
securitization
debt 5.0x 4.4x 0.6x
Operational
FFO
to
debt,
excluding
securitization
debt 15.4% 17.3% (1.9%)
F: Definitions and Abbreviations and Acronyms
Appendix F-1 provides definitions of certain operating measures, as well as GAAP and non-GAAP financial measures. Non-GAAP financial measures remove the effects of financial events that are not routine from commonly used financial measures.
Appendix F-1: Definitions
-------------------------
Utility Operating and Financial Measures
----------------------------------------
GWh billed Total number of GWh billed to
retail and wholesale customers
Net revenue Operating revenues 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 the end of
the prior year
EWC Operating and Financial Measures
------------------------------------
Average revenue under Revenue on a per unit basis at
contract per kW-month which capacity is expected to be
(applies to capacity sold to third parties, given
contracts only) existing contract prices and/or
auction awards
Average revenue per MWh on Revenue on a per unit basis at
contracted volumes 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 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
contracts 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 ISO
New England, 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
total revenue per MWh 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 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
------- ---------------------------------
Appendix F-1: Definitions
-------------------------
EWC Operating and Financial Measures (continued)
-----------------------------------------------
GWh billed Total number of GWh billed to
customers and financially-settled
instruments
Net revenue Operating revenues less fuel, fuel-
related expenses and purchased
power
Offsetting positions Transactions for the purchase of
energy, generally to offset a Firm
LD transaction
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 Percent of planned generation
under contract 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, assuming intent to
shutdown Pilgrim (May 31, 2019),
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, assuming intent to
shutdown Pilgrim (May 31, 2019),
Indian Point 2 (April 30, 2020),
Indian Point 3 (April 30, 2021)
and Palisades (May 31, 2022)
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 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
-------------------------
Book value per share End of period common equity divided
by end of period shares
outstanding
Debt of joint ventures - Entergy's Entergy's share of debt issued by
share business joint ventures at EWC
Debt to capital ratio Total debt divided by total
capitalization
Leases - Entergy's share Operating leases 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
ROE - as-reported 12-months rolling net income
attributable to Entergy
Corporation divided by average
common equity
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
Securitization debt Debt associated with securitization
bonds issued to recover storm
costs from hurricanes Rita, Ike
and Gustav at E-TX and Hurricane
Isaac at E-NO; the 2009 ice storm
at E-AR and investment recovery
of costs associated with the
cancelled Little Gypsy repowering
project at E-LA
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 and
excluding decommissioning expense; for
Entergy consolidated, also excludes
AFUDC-equity funds and subtracts
securitization proceeds
Adjusted EPS As-reported EPS excluding special items
and normalizing weather and income taxes
Debt to capital ratio, Total debt divided by total
excluding securitization capitalization, excluding securitization
debt debt
Debt to operational End of period total debt excluding
adjusted EBITDA ratio, securitization debt divided by 12-months
excluding securitization rolling operational adjusted EBITDA
debt
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 charges
Gross liquidity Sum of cash and revolver capacity
Net debt to net capital Total debt less cash and cash equivalents
ratio, excluding divided by total capitalization less cash
securitization debt and cash equivalents, excluding
securitization debt
Operational adjusted Adjusted EBITDA excluding effects of
EBITDA special items
Operational EPS As-reported EPS excluding special items
Operational FFO FFO excluding the effects of special items
Operational FFO to debt 12-months rolling operational FFO as a
ratio, excluding percentage of end of period total debt
securitization debt excluding securitization debt
Parent debt to total debt End of period Entergy Corporation debt,
ratio, excluding including amounts drawn on credit
securitization debt revolver and commercial paper facilities,
as a percent of consolidated total debt,
excluding securitization debt
ROE - operational 12-months rolling operational net income
attributable to Entergy Corporation
divided by average common equity
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
Utility, Parent & Other Combines the Utility segment with Parent &
Other, which is all of Entergy excluding
the EWC segment
Appendix F-2 explains abbreviations and acronyms used in the quarterly earnings materials.
Appendix F-2: Abbreviations and Acronyms
----------------------------------------
ADIT Accumulated deferred income taxes ISES 2 Unit 2 of Independence Steam Electric
Station (coal)
AFUDC - Allowance for borrowed funds used
borrowed during construction
funds LPSC Louisiana Public Service Commission
AFUDC - Allowance for equity funds used
equity during construction
funds LTM Last twelve months
ALJ Administrative Law Judge MISO Midcontinent Independent System Operator,
Inc.
AMI Advanced metering infrastructure Moody's Moody's Investor Service
ANO Units 1 and 2 of Arkansas Nuclear
One owned by E-AR (nuclear) MPSC Mississippi Public Service Commission
APSC Arkansas Public Service Commission MTEP MISO Transmission Expansion Planning
ARO Asset retirement obligation Nelson 6 Unit 6 of Roy S. Nelson plant (coal)
ASU Accounting Standards Update issued
by the Financial Accounting
Standards Board NEPOOL New England Power Pool
bps Basis points Ninemile 6 Ninemile Point Unit 6 (CCGT)
CCGT Combined cycle gas turbine Non-fuel O&M Non-fuel operation and maintenance expense
CCNO Council of the City of New Orleans,
Louisiana NDT Nuclear decommissioning trust
COD Commercial operation date NOPS New Orleans Power Station (reciprocating
internal combustion engine/natural gas)
CT Simple cycle combustion turbine NRC Nuclear Regulatory Commission
DCRF Distribution cost recovery factor NYISO New York Independent System Operator, Inc.
DOE U.S. Department of Energy NYPA New York Power Authority
E-AR Entergy Arkansas, Inc. NYSE New York Stock Exchange
E-LA Entergy Louisiana, LLC O&M Operation and maintenance expense
E-MS Entergy Mississippi, Inc. OCF Net cash flow provided by operating
activities
E-NO Entergy New Orleans, LLC OpCo Operating Company
E-TX Entergy Texas, Inc. OPEB Other post-employment benefits
EBITDA Earnings before interest, income
taxes, depreciation and
amortization Palisades Palisades Power Plant (nuclear)
ENVY Entergy Nuclear Vermont Yankee Pilgrim Pilgrim Nuclear Power Station (nuclear)
ESI Entergy Services, Inc. PPA Power purchase agreement or purchased
power agreement
EPS Earnings per share PUCT Public Utility Commission of Texas
ETR Entergy Corporation RFP Request for proposals
EWC Entergy Wholesale Commodities ROE Return on equity
FERC Federal Energy Regulatory
Commission ROIC Return on invested capital
FFO Funds from operations RPCE Rough production cost equalization
Firm LD Firm liquidated damages RS Cogen RS Cogen facility (CCGT cogeneration)
FitzPatrick James A. FitzPatrick Nuclear Power
Plant (nuclear, sold March 31,
2017) RSP Rate Stabilization Plan (E-LA Gas)
FRP Formula rate plan S&P Standard & Poor's
GAAP U.S. generally accepted accounting
principles SEC U.S. Securities and Exchange Commission
Grand Gulf Unit 1 of Grand Gulf Nuclear
Station (nuclear), 90% owned or
leased by SERI SERI System Energy Resources, Inc.
Indian Point Indian Point Energy Center Unit 1
1 or IP1 (nuclear) (shut down in 1974) TCRF Transmission cost recovery factor
Indian Point Indian Point Energy Center Unit 2
2 or IP2 (nuclear) Union Union Power Station (CCGT)
Indian Point Indian Point Energy Center Unit 3
3 or IP3 (nuclear) UP&O Utility, Parent & Other
IPEC Indian Point Energy Center
(nuclear) VPUC Vermont Public Utility Commission
ISO Independent system operator VY or Vermont Yankee Vermont Yankee Nuclear Power Station
(nuclear)
WACC Weighted-average cost of capital
WPEC Washington Parish Energy Center (CT/
natural gas)
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 - EWC Operational Net Revenue
-------------------------------------------------
($
in
millions
except
where
noted) First Quarter
2018 2017
---- ----
EWC
---
As-
reported
net
revenue (A) 382 494
Special
items
included
in
net
revenue:
EWC
Nuclear
costs
associated
with
decisions
to
close
or
sell
plants - 91
Total
special
items
included
in
net
revenue (B) - 91
Operational
net
revenue (A-B) 382 404
EWC
Nuclear
-------
As-
reported
EWC
Nuclear
net
revenue (C) 379 491
Special
items
included
in
EWC
Nuclear
net
revenue:
EWC
Nuclear
costs
associated
with
decisions
to
close
or
sell
plants - 91
Total
special
items
included
in
EWC
Nuclear
net
revenue (D) - 91
Operational
EWC
Nuclear
net
revenue (C-D) 379 401
Calculations may differ due to
rounding
Appendix G-2: Reconciliation of GAAP to Non-GAAP Financial Measures - ROIC, ROE
($ in millions except
where noted) First Quarter
-------------
2018 2017
---- ----
As-reported net
income (loss)
attributable to
Entergy Corporation,
rolling 12 months (A) 462 (731)
Preferred dividends 14 17
Tax effected interest
expense 499 409
--- ---
As-reported net
income (loss)
attributable to
Entergy Corporation,
rolling 12 months
adjusted for
preferred dividends
and tax effected
interest expense (B) 975 (305)
Special items in prior
quarters (793) (1,842)
Items associated with
decisions to close or
sell EWC nuclear
plants (78) (150)
Gain on the sale of
FitzPatrick - 11
Income tax benefit
resulting from
FitzPatrick
transaction - 45
Total special items,
rolling 12 months (C) (871) (1,937)
Operational earnings,
rolling 12 months
adjusted for
preferred dividends
and tax effected
interest expense
(non-GAAP) (B-C) 1,846 1,632
Operational earnings,
rolling 12 months
(non-GAAP) (A-C) 1,333 1,206
Average invested
capital (D) 24,862 24,321
Average common equity (E) 8,016 8,709
ROIC - as-reported (B/D) 3.9% (1.3%)
ROIC - operational [(B-C)/D] 7.4% 6.7%
ROE - as-reported (A/E) 5.8% (8.4%)
ROE - operational [(A-C)/E] 16.6% 13.9%
Calculations may differ due to
rounding
Appendix G-3: Reconciliation of GAAP to Non-GAAP Financial Measures -
Debt Ratios excluding Securitization Debt; Gross Liquidity; Debt to
Operational Adjusted EBITDA, excluding Securitization Debt; Operational
FFO to Debt Ratio, excluding Securitization Debt
------------------------------------------------------------------------
($ in
millions
except
where
noted) First Quarter
-------------
2018 2017
---- ----
Total
debt (A) 17,680 15,611
Less
securitization
debt (B) 520 637
--- ---
Total
debt,
excluding
securitization
debt (C) 17,160 14,974
Less
cash
and
cash
equivalents (D) 1,206 1,083
----- -----
Net
debt,
excluding
securitization
debt (E) 15,954 13,891
Total
capitalization (F) 25,853 23,871
Less
securitization
debt (B) 520 637
--- ---
Total
capitalization,
excluding
securitization
debt (G) 25,333 23,234
Less
cash
and
cash
equivalents (D) 1,206 1,083
----- -----
Net
capital,
excluding
securitization
debt (H) 24,127 22,151
Debt to
capital (A/F) 68.4% 65.4%
Debt to
capital,
excluding
securitization
debt (C/G) 67.7% 64.4%
Net
debt
to net
capital,
excluding
securitization
debt (E/H) 66.1% 62.7%
Revolver
capacity (I) 3,010 4,185
Gross
liquidity (D+I) 4,216 5,268
Entergy
Corporation
notes:
Due
September
2020 450 450
Due
July
2022 650 650
Due
September
2026 750 750
Total
parent
long-
term
debt (J) 1,850 1,850
Revolver
draw (K) 1,125 225
Commercial
paper (L) 655 1,088
--- -----
Total
parent
debt (J)+(K)+(L) 3,630 3,163
Parent
debt
to
total
debt,
excluding
securitization
debt [((J)+(K)+(L))/(C)] 21.2% 21.1%
Appendix G-3: Reconciliation of GAAP to Non-GAAP Financial Measures - Debt Ratios excluding
Securitization Debt; Gross Liquidity; Debt to Operational Adjusted EBITDA, excluding
Securitization Debt; Operational FFO to Debt Ratio, excluding Securitization Debt (continued)
----------------------------------------------------------------------------------------------
($ in millions except where noted) First Quarter
-------------
2018 2017
---- ----
Total debt (A) 17,680 15,611
Less securitization debt (B) 520 637
--- ---
Total debt, excluding
securitization debt (C) 17,160 14,974
As-reported consolidated net
income (loss), rolling 12 months 476 (714)
Add back (rolling 12 months):
Interest expense 670 664
Income taxes 578 (949)
Depreciation and amortization 1,390 1,360
Regulatory charges (credits) (4) 8
Decommissioning expense 386 373
Subtract (rolling 12 months):
Securitization proceeds 150 143
Interest and investment income 249 169
AFUDC-equity funds 104 68
Adjusted EBITDA, rolling 12 months
(non-GAAP) (D) 2,993 362
Add back special items (rolling 12
months pre-tax):
Items associated with decisions to
close or sell EWC nuclear plants 511 3,121
Tax reform (56) -
DOE litigation awards - (34)
Gain on the sale of FitzPatrick - (16)
Operational adjusted EBITDA,
rolling 12 months (non-GAAP) (E) 3,448 3,433
Debt to operational adjusted
EBITDA, excluding securitization
debt (C)/(E) 5.0x 4.4x
Net cash flow provided by operating
activities, rolling 12 months (F) 2,652 2,995
AFUDC-borrowed funds, rolling 12
months (G) (49) (34)
Working capital items in net cash
flow provided by operating
activities (rolling 12 months):
Receivables (123) (17)
Fuel inventory (26) 54
Accounts payable 81 194
Prepaid taxes and taxes accrued 36 (72)
Interest accrued 5 6
Other working capital accounts (25) 119
Securitization regulatory charges 121 114
--- ---
Total (H) 69 398
FFO, rolling 12 months (F)+(G)-(H) 2,534 2,563
Add back special items (rolling 12
months pre-tax):
Items associated with decisions to
close or sell EWC nuclear plants 108 24
Operational FFO, rolling 12 months (I) 2,642 2,587
Operational FFO to debt, excluding
securitization debt (I)/(C) 15.4% 17.3%
Calculations may differ due to
rounding
CONTACT: Emily Parenteau (Media), (504) 576-4328, eparent@entergy.com, OR David Borde (Investor Relations), (504) 576-5668, dborde@entergy.com
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SOURCE Entergy Corporation
