8-KOther Events

CENTERPOINT ENERGY INC 8-K Report (Apr 22, 2004)

Filed April 22, 2004For Securities:CNP

Summary

CenterPoint Energy, Inc. (CNP) filed an 8-K on April 22, 2004, to report its first quarter 2004 financial results. The company reported net income of $74 million, or $0.24 per diluted share, for Q1 2004. This represents a decrease compared to the prior year's first quarter. The company highlights several factors impacting its year-over-year performance. Key positive drivers for Q1 2004 included improved operating income from Texas Genco Holdings, Inc., continued customer growth with nearly 87,000 new electric and gas customers, and a significant decrease in interest expense. However, these were offset by the termination of Excess Cost Over Market (ECOM) revenues, milder weather conditions, and a charge related to staff reductions in its natural gas distribution business.

Key Highlights

  • 1Reported Q1 2004 net income of $74 million, or $0.24 per diluted share.
  • 2Q1 2004 net income decreased compared to Q1 2003's adjusted net income of $81 million ($0.27 per diluted share) before certain items.
  • 3Full Q1 2003 net income was $168 million ($0.56 per diluted share), including gains from an accounting change and discontinued operations.
  • 4Improved operating income from Texas Genco Holdings, Inc. contributed positively to Q1 2004 results.
  • 5Gained approximately 87,000 new metered electric and gas customers in the period.
  • 6Reduced interest expense by $33 million year-over-year.
  • 7Negatively impacted by the cessation of ECOM revenues, which were $132 million in Q1 2003.

Frequently Asked Questions

CenterPoint Energy reported net income of $74 million, or $0.24 per diluted share, for the first quarter of 2004.

While reported net income for Q1 2004 was $74 million ($0.24/share), it was lower than the adjusted Q1 2003 net income of $81 million ($0.27/share) before certain items. Key positive factors in 2004 included improved Texas Genco performance, customer growth, and lower interest expense. However, the company was negatively impacted by the end of ECOM revenues, milder weather, and staff reduction charges.

The decrease was primarily due to the termination of Excess Cost Over Market (ECOM) revenues, which generated $132 million in Q1 2003. Milder weather conditions and a charge for staff reductions also negatively impacted results.

Positive contributions included improved operating income from Texas Genco Holdings, Inc., the addition of nearly 87,000 new electric and gas customers, and a $33 million decrease in interest expense.