8-KOther Events

ENTERGY CORP /DE/ 8-K Report (Jul 14, 2004)

Filed July 14, 2004For Securities:ETR

Summary

Entergy Corporation (ETR) filed an 8-K on July 14, 2004, primarily to furnish a press release to investors. This release contains information regarding the company's financial results, specifically introducing and discussing their non-GAAP financial measure, "operational earnings per share." Management utilizes this metric to assess ongoing business performance and for peer comparison, excluding "special items" that are deemed less routine, related to prior periods, or discontinued operations. The company emphasizes that while "operational earnings per share" offers valuable insights into the core business, it does not provide a complete financial picture as it omits significant non-operational impacts. Entergy is transparent about this limitation and reconciles "operational earnings per share" with the most directly comparable GAAP measure, "as-reported earnings per share," to ensure investors have a comprehensive understanding of their financial condition and results. This disclosure is made under Regulation G and is being furnished, not filed.

Key Highlights

  • 1Entergy Corporation is providing a press release dated July 14, 2004, as an exhibit to its 8-K filing.
  • 2The press release introduces and discusses a non-GAAP financial measure: "operational earnings per share."
  • 3"Operational earnings per share" excludes "special items" which include events that are less routine, related to prior periods, or discontinued businesses.
  • 4Management believes "operational earnings per share" is useful for evaluating ongoing business results and for comparing performance to industry peers.
  • 5The company acknowledges that "operational earnings per share" has a material limitation as it does not consider significant non-operational items impacting GAAP earnings.
  • 6Entergy quantifies and reconciles "operational earnings per share" to the GAAP measure "as-reported earnings per share" to comply with Regulation G.
  • 7The information is being furnished, not filed, under Items 9 and 12 of the 8-K.

Frequently Asked Questions

The main purpose of this 8-K filing is to furnish a press release to investors, dated July 14, 2004, which provides financial performance information, including the introduction and explanation of a non-GAAP measure called "operational earnings per share."

"Operational earnings per share" is a non-GAAP financial measure that excludes the impact of "special items," which are events considered less routine, related to prior periods, or stemming from discontinued businesses. This differs from GAAP earnings, which include all such items.

Entergy's management uses "operational earnings per share" to provide investors with insights into the company's ongoing business results and to facilitate comparisons with industry peers. Management also uses this measure internally for decision-making and performance analysis.

The primary limitation of "operational earnings per share" is that it does not present a complete picture of the company's quarterly results because it omits significant non-operational items that impact earnings as calculated under GAAP. Entergy compensates for this by presenting both GAAP and non-GAAP measures.