Summary
Duke Energy Corporation (DUK) has filed an 8-K report on February 22, 2008, to update its previously announced financial results for the fourth quarter and full year ended December 31, 2007. The company is revising its reported diluted Earnings Per Share (EPS) downwards due to two specific events: a settlement of an outstanding litigation and an adjustment by Crescent Resources, an entity in which Duke Energy holds a 50% investment, deferring recognition of certain real estate gains until 2008. These adjustments lead to new anticipated reported diluted EPS figures of $0.19 for Q4 2007 and $1.18 for the full year 2007. While reported EPS is affected, Duke Energy also highlights its 'ongoing diluted EPS' of $0.25 for Q4 and $1.24 for the full year 2007, a non-GAAP measure that excludes these special items. Management utilizes this ongoing EPS to assess operational performance and for employee incentive programs, believing it offers a clearer view of recurring business strength.
Key Highlights
- 1Duke Energy revised its previously reported Q4 and full-year 2007 diluted EPS due to new information.
- 2The revisions stem from a litigation settlement and a deferred real estate gain from Crescent Resources.
- 3Reported diluted EPS for Q4 2007 is now expected to be $0.19, down from prior announcements.
- 4Reported diluted EPS for the full year 2007 is now expected to be $1.18, down from prior announcements.
- 5The company emphasizes 'ongoing diluted EPS' of $0.25 for Q4 and $1.24 for the full year 2007 as a key performance metric.
- 6Ongoing diluted EPS is a non-GAAP measure that excludes special items to reflect recurring operational performance.
- 7The filing also includes information regarding forms for 2008 long-term incentive awards, such as phantom stock and performance share awards.