Cleco Franchise Maintains Earnings
Posted on: 19/12/2006
Cleco franchise posts Third-Quarter Net Income of $27.6 Million.Cleco Corp. has reported net income applicable to common stock of $27.6 million for the third quarter of 2006. Net income is down from the $42.0 million recorded in the third quarter of 2005, excluding the $108.0 million of net income from the 2005 Perryville reconsolidation.
Earnings for the third quarter of 2006 were $0.50 per diluted share, $0.32 per share lower than the $0.82 per share reported in the third quarter of 2005 excluding the Perryville reconsolidated earnings. Including the Perryville reconsolidated results, third-quarter 2005 earnings were $2.91 per diluted share.
The main reason for the quarter-to-quarter decrease at Cleco Power was mark-to-market losses on energy hedging positions tied to a fixed-price municipal contract as compared to mark-to-market gains in the third quarter of 2005. Excluding the Perryville reconsolidation, Cleco Midstream Resources' results were primarily affected by the absence of the tolling payments from Calpine Energy Services and higher expenses at Evangeline. Additionally, there was $0.03 per share dilution resulting from the issuance of 6.9 million shares of common stock in August.
In the fourth quarter of 2005, Cleco recognized $108.0 million from the reconsolidation of Perryville into Cleco's consolidated financial results following the sale of the subsidiary's generating plant and related claims and its emergence from bankruptcy. The reconsolidation of Perryville was applied retroactively. Consequently, Cleco has adjusted retroactively and recorded net income of $150.0 million for the third-quarter 2005 to include the $108.0 million of earnings from the Perryville reconsolidated results.
This retroactive adjustment did not have an impact on Cleco's consolidated results for the year ended December 31, 2005. (See Cleco Corporation's Form 10-Q for the quarterly period ended September 30, 2006, for discussion of this adjustment.)
For the nine months ended Sept. 30, 2006, Cleco recorded $62.1 million of net income. Net income for the same period of 2005, excluding income from the 2005 Perryville reconsolidation was $71.1 million. Including the $108.0 million from the Perryville reconsolidated earnings, net income was $179.1 million for the first three quarters of 2005.
Cleco recorded earnings of $1.18 per diluted share for the first three quarters of 2006. During the same period of 2005, excluding the Perryville reconsolidation, Cleco recorded earnings of $1.39 per share. Loss of the Calpine tolling payments and higher expenses at Evangeline, as well as mark-to-market losses on Cleco Power energy hedges, were the primary drivers of the decrease. With the Perryville reconsolidation included, earnings were $3.50 per diluted share for the same period of 2005.
Cleco Power's third quarter 2006 kilowatt-hour sales were up 1.4 percent over third quarter 2005, and 2006 year-to-date sales were up 2.4 percent compared to the same 2005 period.
"We remain on target to meet our financial expectations for the year," Michael Madison, president and CEO of Cleco Corp., said. "And while it is still very early in the game, we're also meeting our schedule in the construction of the new solid-fuel unit at our Rodemacher Power Station near Boyce."
To see how FranchiseUK can help you franchise your franchise business click here.
