2009-11-02 12:18:02 -
PINEVILLE, LA -- (Marketwire) -- 11/02/09 -- Cleco Corp. (NYSE: CNL)
Consolidated Earnings - Reconciliation of GAAP to Non-GAAP Measures
Diluted EPS
Three months ended Nine months ended
Sept. 30, Sept. 30,
--------------------------------------
Subsidiary 2009 2008 2009 2008
--------- -------- -------- --------
Cleco Power LLC $ 0.66 $ 0.53 $ 1.47 $ 1.51
Cleco Midstream Resources LLC(1) 0.14 0.08 (0.08) (0.05)
Corporate and Other(1,2) 0.13 0.03 0.13 0.03
--------- -------- -------- --------
Operational earnings per share
(Non-GAAP) 0.93 0.64 1.52 1.49
Adjustments(3) 0.06 (0.02) 0.03 (0.02)
--------- -------- -------- --------
Earnings per share applicable to
common stock $ 0.99 $ 0.62 $ 1.55 $ 1.47
GAAP refers to United States generally accepted accounting principles
(1) Includes affiliate interest charges/interest income on affiliate debt
related to Cleco's investment in Acadia ($0.01 per share for the
quarters ended September 30, 2009 and 2008; $0.04 per share and $0.05
per share for the nine months ended September 30, 2009 and 2008,
respectively)
(2) Includes dividends on preferred stock
(3) Refer to "Operational Earnings Adjustments" on page 5 of this news
release
"The numbers speak for themselves. We had a strong third quarter," said Mike Madison, president and chief executive officer of Cleco Corp. "In just the past three weeks, we've seen results from the execution of our strategy which will bring lasting shareholder value. We've received approval to implement our new retail rate plan, a plan that is expected to increase the earnings of Cleco while at the same time decreasing bills for our retail customers. That plan will go into effect when Rodemacher Unit 3 begins commercial operation later this year. However, we didn't stop there. Last week we announced that Acadia Power Partners reached an agreement with Entergy Louisiana to sell them the remaining 50 percent of the Acadia plant and further reduce our risk to the merchant power market.
Once again, we are doing what we said we would do."
Recent Developments:
-- The Louisiana Public Service Commission (LPSC) approved Cleco Power's
new retail rate plan on October 14, 2009.
-- Construction of Rodemacher Unit 3 is effectively complete; tuning and
testing are in progress.
-- Definitive agreements have been executed for Entergy Louisiana to
purchase the remaining 50 percent of the Acadia power station; the
completion of this transaction is subject to regulatory approval.
-- The LPSC approved the Acadia/Cleco Power bridge tolling agreement
covering 50 percent of the Acadia power station on October 14, 2009.
-- Construction has begun on the Acadiana Load Pocket transmission
project.
Financial Highlights:
Third Quarter 2009
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Year-to-date 2009
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Earnings Guidance
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Quarter-Over-Quarter Operational EPS Reconciliation:
###PRECONTENT5###
Cleco Power
###PRECONTENT6###
Cleco Midstream Resources
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Corporate and Other
###PRECONTENT8###
Year-Over-Year Operational EPS Reconciliation:
###PRECONTENT9###
Cleco Power
###PRECONTENT10###
Cleco Midstream Resources
###PRECONTENT11###
Corporate and Other
###PRECONTENT12###
Operational Earnings Adjustments:
Cleco's management uses operational earnings per share to evaluate the operations of Cleco and to establish goals for management and employees.
Management believes this presentation is appropriate and enables investors to more accurately compare Cleco's operational financial performance over the periods presented. Operational earnings as presented here may not be comparable to similarly titled measures used by other companies. The following table provides a reconciliation of operational earnings per share to reported GAAP earnings per share.
###PRECONTENT13###
Reconciling adjustments from operational earnings to GAAP earnings are as follows:
Tax Levelization
Generally accepted accounting principles require companies to apply an effective tax rate to interim periods that is consistent with a company's estimated annual effective tax rate. As a result, quarterly, Cleco projects the effective tax rate for the year and then raises or lowers the tax expense recorded in that quarter to reflect the projected annual tax rate. The resulting incremental adjustment to bring the taxes in line with the expected annual tax rate increased earnings by $0.04 per share for the third quarter of 2009 and decreased earnings by $0.01 per share for the third quarter of 2008. While this adjustment has no impact on Cleco's annual earnings, the interim impact is greater in the current year as the projected increased income from equity AFUDC for Rodemacher Unit 3, as a percentage of total book income, has a significant impact on Cleco's projected annual effective tax rate. This incremental adjustment is not related to the third quarter operational results because it reflects the effect of the change in tax rates on operational earnings for the entire year.
COLI/TOLI Adjustments
Cleco has both Company-Owned Life Insurance and Trust-Owned Life Insurance (COLI/TOLI) policies covering certain members of management. These policies are payable to Cleco upon death of the insured. COLI/TOLI assets are acquired at fair value, and adjusted for changes in market value and any payments/redemptions of cash surrender values. The resulting adjustments for these items increased earnings by $0.02 per share for the third quarter of 2009 and decreased earnings by $0.01 per share for the third quarter of 2008. The adjustments increased earnings by $0.03 per share for the first nine months of 2009 and decreased earnings by $0.02 per share for the same period last year. Cleco is unable to predict changes in the market values and amounts of cash surrender values of these policies.
As a result, management does not consider these adjustments to be a component of operational earnings.
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Cleco management will discuss the company's third-quarter 2009 results during a conference call scheduled for 4:30 p.m. Eastern time (3:30 p.m.
Central time) Monday, Nov. 2, 2009. The call will be webcast live on the Internet. A replay will be available for 12 months. Investors may access the webcast through the company's Web site at www.cleco.com :
by selecting "For Investors" and then "Cleco Corporation Third-Quarter 2009 Earnings Conference Call."
Cleco Corp. is a regional energy company headquartered in Pineville, La. It operates a regulated electric utility company that serves approximately 276,000 customers across Louisiana. Cleco also operates a wholesale energy business with approximately 1,350 megawatts of nameplate generating capacity. For more information about Cleco, visit www.cleco.com :
.
Financial tables follow:
###PRECONTENT14###
Please note: In addition to historical financial information, this news release contains forward-looking statements about future results and circumstances, including, without limitation, statements regarding the Rodemacher Unit 3 project. There are many risks and uncertainties with respect to such forward-looking statements, including the weather and other natural phenomena, state and federal legislative and regulatory initiatives, the timing and extent of changes in commodity prices and interest rates, the operating performance of Cleco Power's and Cleco Midstream's facilities, the financial condition of the company's tolling agreement counterparty, the performance of the tolling agreement by such counterparty, construction and operational startup of Rodemacher Unit 3, the results of Cleco Power's 2007 long-term RFP, the completion of the Acadiana Load Pocket project, the completion of the Acadia/Cleco Power and Acadia/Entergy Louisiana transactions, the impact of the global financial crisis, and other risks and uncertainties more fully described in the company's latest Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Actual results may differ materially from those indicated in such forward-looking statements.
Investor Contacts:
R. Russell Davis
(318) 484-7501
Rodney J. Hamilton
(318) 484-7593
Media Contact:
Fran Phoenix
(318) 484-7467
