Texas Genco Holdings, Inc.
(Logo: http://www.newscom.com/cgi-bin/prnh/20030127/DAM020LOGO )
"Our first quarter earnings were significantly better than the first quarter of last year," said David Tees, president and chief executive officer of Texas Genco. "We continue to benefit from higher wholesale electricity prices which are driven by high natural gas prices. In addition, our solid fuel baseload generating units operated well, which when combined with the higher electricity prices, produced a significant improvement in our financial performance for the quarter."
Texas Genco reported increased revenues compared to the same period of 2003, continuing to benefit from increased prices for baseload products. Operation and maintenance expenses for the first quarter of 2004 were lower than the prior year. The first quarter of 2004 had lower expenses associated with planned and unplanned outages compared to the same quarter of 2003.
2004 OUTLOOK
The company reiterated its full year 2004 earnings estimate of $3.35 - $3.75 per share. This estimate reflects over $1 billion of capacity revenues under contract for 2004, including approximately 94 percent of its available baseload capacity. Earnings for 2004 will be highly dependent on the operating performance of the company's baseload generating units.
WEBCAST OF EARNINGS CONFERENCE CALL
The management of Texas Genco will host an earnings conference call on Thursday, April 22, 2004, at 9 a.m. Central time. Interested parties may listen to a live, audio broadcast of the conference call at www.txgenco.com/investor.html . A replay can be accessed approximately two hours after the completion of the call, and will be archived on the Web site for at least one year.
Texas Genco Holdings, Inc., based in Houston, Texas, is one of the largest wholesale electric power generating companies in the United States with over 14,000 megawatts of generation capacity, of which nearly 3,000 megawatts are currently in mothball status. It sells electric generation capacity, energy and ancillary services in one of the nation's largest power markets, the Electric Reliability Council of Texas (ERCOT). Texas Genco has one of the most diversified generation portfolios in Texas, using natural gas, oil, coal, lignite, and uranium fuels. The company owns and operates 60 generating units at 11 electric power-generating facilities and owns a 30.8 percent interest in a nuclear generating plant. Texas Genco currently is a majority-owned subsidiary of CenterPoint Energy, Inc. For more information, visit our web site at www.txgenco.com .
This news release includes forward-looking statements. Actual events and results may differ materially from those projected. The statements in this news release regarding future financial performance and results of operations and other statements that are not historical facts are forward-looking statements. Factors that could affect actual results include the timing and impact of future regulatory and legislative decisions, effects of competition, weather variations, changes in Texas Genco's business plans, financial market conditions, the timing and extent of changes in commodity prices, particularly natural gas, the impact of unplanned plant outages and other factors discussed in Texas Genco's Form 10-K for the period ended December 31, 2003 and other filings with the Securities and Exchange Commission.
Texas Genco Holdings, Inc.
Statements of Consolidated Income
(Thousands of Dollars)
(Unaudited)
Quarter Ended March 31,
2004 2003
Revenues 439,129 358,587
Expenses:
Fuel 186,315 207,989
Purchased power 8,270 11,994
Operation and maintenance 101,327 105,350
Depreciation and amortization 40,369 39,079
Taxes other than income taxes 12,256 11,291
Total 348,537 375,703
Operating Income (Loss) 90,592 (17,116)
Other Income 388 200
Interest Expense (26) (2,803)
Income (Loss) Before Income Taxes
and Cumulative Effect of
Accounting Change 90,954 (19,719)
Income Tax Benefit (Expense) (30,062) 8,837
Income (Loss) Before Cumulative
Effect of Accounting Change 60,892 (10,882)
Cumulative Effect of Accounting
Change, net of tax --- 98,910
Net Income Attributable to Common
Shareholders $60,892 $88,028
Basic and Diluted Earnings Per
Common Share:
Income (Loss) Before Cumulative
Effect of Accounting Change $0.76 $(0.14)
Cumulative Effect of Accounting
Change, net of tax --- 1.24
Net Income Attributable to Common
Shareholders $0.76 $1.10
Dividends Declared per Common Share $0.25 $0.25
Weighted Average Common Shares
Outstanding (000):
- Basic 80,000 80,000
- Diluted 80,000 80,000
Capital Expenditures $24,060 $44,662
Operating Data:
Sales (MWH) 10,720,778 9,276,344
Generation (MWH) 10,149,190 8,994,753
Reference is made to the Notes to the Consolidated Financial Statements contained in the Annual Report on Form 10-K of Texas Genco Holdings, Inc.
Texas Genco Holdings, Inc.
Condensed Consolidated Balance Sheets
(Thousands of Dollars)
(Unaudited)
March 31, December 31,
2004 2003
ASSETS
Current Assets:
Cash $309 $33
Short-term investments --- 44,525
Short-term note receivable-affiliate 52,155 ---
Inventory 168,850 169,692
Other current assets 68,915 84,142
Total current assets 290,229 298,392
Property, Plant and Equipment, net 4,101,621 4,125,595
Other Assets:
Nuclear decommissioning trust 201,310 189,182
Other non-current assets 26,198 26,462
Total other assets 227,508 215,644
Total Assets $4,619,358 $4,639,631
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable and other accrued
liabilities $164,381 $224,319
Deferred capacity auction revenue 82,318 86,853
Other current liabilities 16,289 17,579
Total current liabilities 262,988 328,751
Other Liabilities:
Accumulated deferred income taxes,
net and investment tax credit 986,366 995,078
Nuclear decommissioning reserve 190,394 187,997
Other non-current liabilities 105,557 94,644
Total other liabilities 1,282,317 1,277,719
Shareholders' Equity 3,074,053 3,033,161
Total Liabilities and
Shareholders' Equity $4,619,358 $4,639,631
Reference is made to the Notes to the Consolidated Financial Statements contained in the Annual Report on Form 10-K of Texas Genco Holdings, Inc.
Texas Genco Holdings, Inc.
Condensed Statements of Consolidated Cash Flows
(Thousands of Dollars)
(Unaudited)
Three Months Ended March 31,
2004 2003
Cash Flows from Operating Activities:
Net income attributable to common
shareholders $60,892 $88,028
Adjustments to reconcile net income
to net cash provided by (used in)
operating activities:
Depreciation and amortization,
including fuel-related
amortization 47,559 45,614
Deferred income taxes and
investment tax credit (6,226) (8,008)
Cumulative effect of accounting
change, net --- (98,910)
Changes in other assets and
liabilities (51,162) (63,654)
Net Cash Provided by (Used in)
Operating Activities 51,063 (36,930)
Cash Flows from Investing Activities:
Capital expenditures and other (23,051) (44,340)
Increase in notes receivable-
affiliate (52,155) ---
Net Cash Used in Investing Activities (75,206) (44,340)
Net Cash Provided by (Used in)
Financing Activities (20,106) 82,099
Net Increase (Decrease) in Cash and
Cash Equivalents (44,249) 829
Cash and Cash Equivalents at
Beginning of Period 44,558 578
Cash and Cash Equivalents at End of
Period $309 $1,407
Reference is made to the Notes to the Consolidated Financial Statements contained in the Annual Report on Form 10-K of Texas Genco Holdings, Inc.
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CONTACT: media, Leticia Lowe, +1-713-207-7702, or investors, Marianne
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