Duke Energy held an earnings call to discuss its financial results for Q4 2003 and the full year. The company reported a net loss of $1.48 per share for 2003, which included $2.76 in special items. Most business segments met their targets except for Franchised Electric, which saw lower earnings due to higher costs. Duke Energy's largest loss was primarily driven by asset impairments and other special charges related to its DENA business. Management provided additional details on special items to help analysts understand the company's ongoing earnings performance excluding these one-time charges.
This document contains the prepared remarks and Q&A from Duke Energy Corporation's earnings conference call for Q2 2004.
The key points are:
1) Duke Energy reported earnings per share of $0.46 for Q2 2004, which included $0.04 per share in special items. Ongoing earnings were $0.42 per share.
2) The company's largest business segments - Franchised Electric and Gas Transmission - generated solid earnings and cash flows for the quarter. Field Services also had strong results due to high natural gas liquid prices and operating improvements.
3) Duke Energy reduced its mark-to-market trading position, but results were still affected by changing commodity prices
Duke Energy reported third quarter earnings per share of $0.41, which included $0.03 from special items primarily related to additional tax benefits from asset sales. Ongoing earnings were $0.38 per share. Key business segments like Franchised Electric and Natural Gas Transmission reported solid results. Field Services benefited from strong natural gas liquid prices. Duke Energy North America continued working to reduce losses from its merchant energy business. The company has reduced its debt by $2.4 billion year-to-date through asset sales and cash flows. Management expects to meet or exceed its financial goals for 2004 and continues working to improve the company's performance.
Duke Energy 02/02/05_prepared_remarks_and_qafinance21
This document provides a summary of Duke Energy Corporation's Q4 2004 earnings conference call. Key points include:
- Duke Energy reported 2004 EPS of $1.59, including special items, and ongoing EPS of $1.38, exceeding its $1.20 target.
- Business units like Field Services and Crescent Resources had strong years. Field Services benefited from higher commodity prices.
- For Q4 2004, Duke Energy reported EPS of $0.38 including special items. Ongoing segment EBIT increased at Franchised Electric and Natural Gas Transmission.
- Guidance for 2005 includes a $150M loss for DENA and $350-500M EBIT for Field Services depending
Duke Energy held its Q2 2003 earnings conference call on July 30, 2003. Fred Fowler, President and COO, reported that Duke Energy has made strong progress in the first half of 2003 through an asset sales program that generated over $1.5 billion, reducing capital spending to $3 billion, and lowering net debt by approximately $1.8 billion for the year. Duke Energy reported Q2 earnings of 46 cents per share including 16 cents from asset sales. For the first half of 2003, Duke Energy reported earnings of 71 cents per share including gains from asset sales and an accounting charge, with benefits from Westcoast earnings and expansion projects offset by lower DENA earnings and higher interest expenses.
Duke Energy held an earnings conference call to discuss its first quarter 2005 results. The call included prepared remarks from Duke Energy's Chairman and CEO, Group VP and CFO, and President and COO. They reported earnings of $0.91 per share including special items, and ongoing earnings of $0.44 per share, up nearly 30% from the prior year. Business unit highlights included strong results from Field Services, International Energy, and Crescent Resources. DENA reported a smaller loss than the prior year. The executives provided an outlook for the remainder of 2005 and discussed the impact of recent transactions involving Duke Energy's ownership in Field Services.
Duke Energy held a conference call to discuss its second quarter 2005 earnings. The call included prepared remarks from Chairman and CEO Paul Anderson and Group VP and CFO David Hauser. Key highlights from their remarks include:
- Earnings per share were $0.33, including $0.02 in special items, compared to analyst expectations of $0.38. However, the company was on plan for the year.
- Weather had a negative $0.05 impact on earnings compared to last year. Results were also impacted by higher O&M costs.
- Most business units performed well, though Franchised Electric and DENA saw declines due to weather and other factors.
- The proposed merger with C
The document is the transcript of Duke Energy's Q1 2003 earnings conference call.
In the call, Duke Energy executives discuss the company's financial results and progress on its strategic plan. They report that regulated utilities Franchised Electric and Gas Transmission contributed 94% of earnings. Duke is reducing costs, selling $1.1 billion in assets, and focusing on its strongest businesses. While merchant energy faced challenges, Duke is restructuring to improve results going forward.
This document contains the prepared remarks from Duke Energy's Q1 2004 earnings conference call. The key points are:
1) Duke Energy reported earnings of 36 cents per share including special items, and ongoing earnings of 32 cents, which met expectations despite $6 cents of MTM losses during the quarter.
2) Several business segments performed well, including franchised electric and gas transmission. Field services benefited from higher frac spreads and hedging gains.
3) Challenges included a disappointing quarter for DENA due to inability to capture optionality. However, DENA expects to realize its full-year budget.
4) Duke Energy continues reducing debt and increasing cash, made progress on legal issues,
This document contains the prepared remarks and Q&A from Duke Energy Corporation's earnings conference call for Q2 2004.
The key points are:
1) Duke Energy reported earnings per share of $0.46 for Q2 2004, which included $0.04 per share in special items. Ongoing earnings were $0.42 per share.
2) The company's largest business segments - Franchised Electric and Gas Transmission - generated solid earnings and cash flows for the quarter. Field Services also had strong results due to high natural gas liquid prices and operating improvements.
3) Duke Energy reduced its mark-to-market trading position, but results were still affected by changing commodity prices
Duke Energy reported third quarter earnings per share of $0.41, which included $0.03 from special items primarily related to additional tax benefits from asset sales. Ongoing earnings were $0.38 per share. Key business segments like Franchised Electric and Natural Gas Transmission reported solid results. Field Services benefited from strong natural gas liquid prices. Duke Energy North America continued working to reduce losses from its merchant energy business. The company has reduced its debt by $2.4 billion year-to-date through asset sales and cash flows. Management expects to meet or exceed its financial goals for 2004 and continues working to improve the company's performance.
Duke Energy 02/02/05_prepared_remarks_and_qafinance21
This document provides a summary of Duke Energy Corporation's Q4 2004 earnings conference call. Key points include:
- Duke Energy reported 2004 EPS of $1.59, including special items, and ongoing EPS of $1.38, exceeding its $1.20 target.
- Business units like Field Services and Crescent Resources had strong years. Field Services benefited from higher commodity prices.
- For Q4 2004, Duke Energy reported EPS of $0.38 including special items. Ongoing segment EBIT increased at Franchised Electric and Natural Gas Transmission.
- Guidance for 2005 includes a $150M loss for DENA and $350-500M EBIT for Field Services depending
Duke Energy held its Q2 2003 earnings conference call on July 30, 2003. Fred Fowler, President and COO, reported that Duke Energy has made strong progress in the first half of 2003 through an asset sales program that generated over $1.5 billion, reducing capital spending to $3 billion, and lowering net debt by approximately $1.8 billion for the year. Duke Energy reported Q2 earnings of 46 cents per share including 16 cents from asset sales. For the first half of 2003, Duke Energy reported earnings of 71 cents per share including gains from asset sales and an accounting charge, with benefits from Westcoast earnings and expansion projects offset by lower DENA earnings and higher interest expenses.
Duke Energy held an earnings conference call to discuss its first quarter 2005 results. The call included prepared remarks from Duke Energy's Chairman and CEO, Group VP and CFO, and President and COO. They reported earnings of $0.91 per share including special items, and ongoing earnings of $0.44 per share, up nearly 30% from the prior year. Business unit highlights included strong results from Field Services, International Energy, and Crescent Resources. DENA reported a smaller loss than the prior year. The executives provided an outlook for the remainder of 2005 and discussed the impact of recent transactions involving Duke Energy's ownership in Field Services.
Duke Energy held a conference call to discuss its second quarter 2005 earnings. The call included prepared remarks from Chairman and CEO Paul Anderson and Group VP and CFO David Hauser. Key highlights from their remarks include:
- Earnings per share were $0.33, including $0.02 in special items, compared to analyst expectations of $0.38. However, the company was on plan for the year.
- Weather had a negative $0.05 impact on earnings compared to last year. Results were also impacted by higher O&M costs.
- Most business units performed well, though Franchised Electric and DENA saw declines due to weather and other factors.
- The proposed merger with C
The document is the transcript of Duke Energy's Q1 2003 earnings conference call.
In the call, Duke Energy executives discuss the company's financial results and progress on its strategic plan. They report that regulated utilities Franchised Electric and Gas Transmission contributed 94% of earnings. Duke is reducing costs, selling $1.1 billion in assets, and focusing on its strongest businesses. While merchant energy faced challenges, Duke is restructuring to improve results going forward.
This document contains the prepared remarks from Duke Energy's Q1 2004 earnings conference call. The key points are:
1) Duke Energy reported earnings of 36 cents per share including special items, and ongoing earnings of 32 cents, which met expectations despite $6 cents of MTM losses during the quarter.
2) Several business segments performed well, including franchised electric and gas transmission. Field services benefited from higher frac spreads and hedging gains.
3) Challenges included a disappointing quarter for DENA due to inability to capture optionality. However, DENA expects to realize its full-year budget.
4) Duke Energy continues reducing debt and increasing cash, made progress on legal issues,
NiSource Inc. is a utility company focused on natural gas and electric utilities. It has over 3 million customers across 9 states. In 2002, NiSource focused on strengthening its balance sheet by reducing debt, streamlining operations, and shedding non-core assets. It raised $735 million through an equity offering, using the funds to further pay down debt. NiSource maintained investment-grade credit ratings while improving transparency and adhering to new governance standards. It focused on efficiently operating its regulated gas and electric utilities to serve customers in a high-demand region from Indiana to New England.
WellPoint provided guidance for its 2004 and 2005 earnings. For 2004, WellPoint expected earnings per share of approximately $6.07, which includes expenses related to repurchasing surplus notes and merger undertakings. For the fourth quarter of 2004 specifically, WellPoint expected earnings per share of about 90 cents, lower than previous guidance due to repurchasing more surplus notes than anticipated. For 2005, WellPoint did not provide specific earnings per share guidance but said it expected earnings growth over 2004 levels driven by synergies from the merger.
The annual report summarizes Perini Corporation's financial results for 2005. It highlights that revenues decreased 6% to $1.73 billion due to timing shifts on some projects, but pre-tax income was impacted by a $24.9 million legal charge. Two acquisitions expanded Perini's presence and its backlog reached a record $7.9 billion due to major new project wins in gaming and hospitality. Looking ahead, the company expects continued growth from its building segment and improved margins and earnings from its civil and management service segments.
This document announces and provides information about the 3rd annual "Scaling up through successful investment and cutting edge technology" conference taking place on February 24-25, 2011 in San Francisco. The conference will bring together geothermal experts, developers, investors, utilities and others to discuss opportunities for expanding geothermal energy through investment and new technologies. Over two days, attendees can learn from industry leaders, participate in case studies and debates, and network with over 220 past attendees. Pre-conference training and sponsorship opportunities are also advertised.
The document provides an overview of DuPont's 2001 financial results and realignment into new business segments. It notes that in 2001, DuPont sold its Pharmaceuticals business to Bristol-Myers Squibb for $7.8 billion in cash, repositioned its Polyester business through various joint ventures and asset sales, and took additional steps to strengthen its technology position in displays through acquisitions. The document also outlines DuPont's new five Growth Platform business structure and explains that financial data from 2001 is presented under both the old and new reporting segments to help users understand the company's transformation.
DuPont provides a summary of its 2002 financial data and business activities in its 2002 DATA BOOK. Some key highlights include:
- Earnings recovered dramatically from 2001 levels, though excluding the large gain from the 2001 sale of DuPont Pharmaceuticals.
- DuPont realigned its business units into five market-focused Growth Platforms and took steps to separate its Textiles & Interiors segment.
- Science, knowledge intensity, productivity improvements, and financial discipline supported DuPont's performance and positioning for sustainable growth.
- Acquisitions and partnerships expanded DuPont's offerings in areas like electronics, biotechnology, and agriculture.
The document provides details on Pepco Holdings' 2003 performance and future plans. It discusses challenges faced in 2003 including an energy trading loss, Mirant's bankruptcy, and Hurricane Isabel. However, actions taken in 2003 such as divesting non-core businesses and reducing risk are expected to set the stage for future earnings growth. The company remains focused on strengthening its core power delivery business and improving customer satisfaction.
This document is Xcel Energy's 2001 annual report. It summarizes the company's financial performance for 2001 and highlights some of its key accomplishments that year. Specifically:
- Xcel Energy met its earnings target for 2001 despite challenges in the energy industry like price swings, regulatory changes, and a softening economy. Its non-regulated subsidiary, NRG Energy, contributed significantly.
- The company delivered $1.50 in dividends per share, expanded its customer base, successfully traded electricity in deregulated markets, and improved reliability.
- Xcel Energy also completed repowering its Fort St. Vrain nuclear plant with natural gas, expanded its wind generation portfolio, and received recognition for its Wind
This document provides an overview of Xcel Energy Inc. for investors attending the EEI International Financial Conference. It summarizes Xcel's business segments, strengths, investment merits, capital investment plans, power supply, environmental commitments, and financial performance. Projections for 2004 earnings per share and cash flow are also presented. Key points include Xcel being the 4th largest US electric and gas utility, a growing service area, low rates, and a goal of providing competitive total returns of 7-9% to shareholders.
NiSource Inc. delivered strong financial results in 2003, with income from continuing operations of $1.64 per share. It strengthened its balance sheet by selling non-core assets and reducing debt. The company adopted a new organizational structure to focus on its core regulated utility businesses. NiSource aims to continue improving operations, pursuing growth opportunities, and operating responsibly in the communities it serves.
This document provides a summary of Leggett & Platt's debt obligations, derivative financial instruments, foreign investments, and stock performance. It discloses that over 75% of Leggett's debt is fixed rate and carries an average interest rate of 4.99% in 2006. It also uses derivatives to hedge interest rate, foreign currency, and commodity risks. Leggett views its foreign subsidiaries as long-term investments and does not hedge them except through one net investment hedge. Finally, it shows Leggett's stock has outperformed its industry peers and the S&P 500 over the past 5 years.
This document provides a summary of recent ethics-related news stories:
1) A report from Global Witness accuses HSBC of bankrolling unsustainable logging companies in Borneo that are violating the bank's forest policies.
2) The EU has decided to cut the aviation industry from the EU Emissions Trading Scheme due to pressure from China, India, and Russia.
3) The US has toughened its stance against human trafficking by introducing new rules to rank countries based on their efforts to combat trafficking and protect victims.
4) There is debate around the potential of wind energy given uncertainties over subsidies and public opposition to wind farms in some areas.
This document provides an overview of Xcel Energy from their presentation at the Edison Electric Institute Financial Conference in October 2003. Key points include Xcel achieving several accomplishments in 2003 including settling with NRG creditors, maintaining investment grade ratings, and refinancing debt. Projections for 2004 include earnings of $1.15-1.25 per share assuming NRG emerges from bankruptcy. The presentation outlines Xcel's objectives, investments, regulatory strategy, and earnings drivers to emphasize the company as a low-risk, integrated utility with a total return of 7-8%.
This document summarizes Xcel Energy's presentation at the Banc of America Securities Energy & Power Conference on November 17-19, 2003. It discusses Xcel Energy's accomplishments in 2003, objectives for investment, earnings growth, and credit ratings improvement. It also provides guidance on projected 2003 and 2004 earnings, cash flows, utility investments, and the expected timeline for NRG's emergence from bankruptcy.
Improving Patient Satisfaction with BellwetherBrian Lee Csp
Bellwether is a tool that enables hospitals to proactively manage HCAHPS feedback in real-time to maximize reimbursement from Value-Based Purchasing. It identifies trends in patient satisfaction early through bedside interviews using configurable question sets. Results are automatically integrated with an accountability system to trigger immediate corrective actions when thresholds are not met. This allows hospitals to shape outcomes before official HCAHPS scores are published, which can negatively impact reimbursement.
Lisa Sims, President of The IT Mechanic (www.theitmechanic.com) and founder of The Business Professionals Network (www.bpronetwork.com) shares her insights on what it takes for entrepreneurs to be their own boss and valuable tips to be successful.
1. The document discusses efforts to strengthen the local food system in six counties in northeast Iowa by increasing connections between producers, institutions, and consumers.
2. It outlines strategies used such as developing a strategic plan, expanding growing seasons, engaging schools in farm to school programs, and increasing commitments from organizations like colleges to purchase local food.
3. Results so far include increased sales and purchases of local food by producers and institutions between 2007-2009, as well as leveraged funding through grants.
The document summarizes a discussion at the January 2013 Agile:MK user group meeting about a project to develop a cloud-based computing grid platform called MG-ALFA Compute for Azure. A team of 4 developers used agile methods to develop the platform over 2 years. Key aspects included keeping the process simple, frequent design sessions, test-driven development, pair programming, and prioritizing the minimum required features. The platform successfully executed thousands of complex actuarial modeling jobs in the cloud.
Coles partnerships quality and trust-nfdp13DataDryad
Presentation by Simon Coles on issues of partnerships, quality and trust in data publishing given at the Now and Future of Data Publishing Symposium, 22 May 2013, Oxford, UK
In this presentation, Lisa Sims, Chief Technology Consultant for The IT Mechanic, shares her entrepreneurial experiences with small business owners and aspiring entrepreneurs as they journey along the road to being their own boss.
This document contains the prepared remarks and Q&A from Duke Energy's third quarter 2003 earnings conference call on October 30, 2003. Rick Priory, then-CEO of Duke Energy, noted that third quarter results were below expectations due to challenges faced by the DENA business segment. Duke Energy reported GAAP earnings of $0.05 per share and ongoing earnings of $0.35 per share for the quarter, excluding special items. Priory discussed cost reduction efforts that would yield over $200 million in annual pre-tax savings. CFO Robert Brace provided additional details on segment results and $0.30 per share in special items recorded in the quarter.
The document is the transcript from Duke Energy Corporation's Q4 2005 earnings conference call and outlook for 2006. It includes an introduction by Julie Dill, VP of Investor Relations. Paul Anderson, Chairman and CEO, provides an overview of Duke Energy's 2005 results and progress on the merger with Cinergy. Fred Fowler, President and COO, then reviews the outlook and earnings expectations for each of Duke Energy's business units for 2006.
NiSource Inc. is a utility company focused on natural gas and electric utilities. It has over 3 million customers across 9 states. In 2002, NiSource focused on strengthening its balance sheet by reducing debt, streamlining operations, and shedding non-core assets. It raised $735 million through an equity offering, using the funds to further pay down debt. NiSource maintained investment-grade credit ratings while improving transparency and adhering to new governance standards. It focused on efficiently operating its regulated gas and electric utilities to serve customers in a high-demand region from Indiana to New England.
WellPoint provided guidance for its 2004 and 2005 earnings. For 2004, WellPoint expected earnings per share of approximately $6.07, which includes expenses related to repurchasing surplus notes and merger undertakings. For the fourth quarter of 2004 specifically, WellPoint expected earnings per share of about 90 cents, lower than previous guidance due to repurchasing more surplus notes than anticipated. For 2005, WellPoint did not provide specific earnings per share guidance but said it expected earnings growth over 2004 levels driven by synergies from the merger.
The annual report summarizes Perini Corporation's financial results for 2005. It highlights that revenues decreased 6% to $1.73 billion due to timing shifts on some projects, but pre-tax income was impacted by a $24.9 million legal charge. Two acquisitions expanded Perini's presence and its backlog reached a record $7.9 billion due to major new project wins in gaming and hospitality. Looking ahead, the company expects continued growth from its building segment and improved margins and earnings from its civil and management service segments.
This document announces and provides information about the 3rd annual "Scaling up through successful investment and cutting edge technology" conference taking place on February 24-25, 2011 in San Francisco. The conference will bring together geothermal experts, developers, investors, utilities and others to discuss opportunities for expanding geothermal energy through investment and new technologies. Over two days, attendees can learn from industry leaders, participate in case studies and debates, and network with over 220 past attendees. Pre-conference training and sponsorship opportunities are also advertised.
The document provides an overview of DuPont's 2001 financial results and realignment into new business segments. It notes that in 2001, DuPont sold its Pharmaceuticals business to Bristol-Myers Squibb for $7.8 billion in cash, repositioned its Polyester business through various joint ventures and asset sales, and took additional steps to strengthen its technology position in displays through acquisitions. The document also outlines DuPont's new five Growth Platform business structure and explains that financial data from 2001 is presented under both the old and new reporting segments to help users understand the company's transformation.
DuPont provides a summary of its 2002 financial data and business activities in its 2002 DATA BOOK. Some key highlights include:
- Earnings recovered dramatically from 2001 levels, though excluding the large gain from the 2001 sale of DuPont Pharmaceuticals.
- DuPont realigned its business units into five market-focused Growth Platforms and took steps to separate its Textiles & Interiors segment.
- Science, knowledge intensity, productivity improvements, and financial discipline supported DuPont's performance and positioning for sustainable growth.
- Acquisitions and partnerships expanded DuPont's offerings in areas like electronics, biotechnology, and agriculture.
The document provides details on Pepco Holdings' 2003 performance and future plans. It discusses challenges faced in 2003 including an energy trading loss, Mirant's bankruptcy, and Hurricane Isabel. However, actions taken in 2003 such as divesting non-core businesses and reducing risk are expected to set the stage for future earnings growth. The company remains focused on strengthening its core power delivery business and improving customer satisfaction.
This document is Xcel Energy's 2001 annual report. It summarizes the company's financial performance for 2001 and highlights some of its key accomplishments that year. Specifically:
- Xcel Energy met its earnings target for 2001 despite challenges in the energy industry like price swings, regulatory changes, and a softening economy. Its non-regulated subsidiary, NRG Energy, contributed significantly.
- The company delivered $1.50 in dividends per share, expanded its customer base, successfully traded electricity in deregulated markets, and improved reliability.
- Xcel Energy also completed repowering its Fort St. Vrain nuclear plant with natural gas, expanded its wind generation portfolio, and received recognition for its Wind
This document provides an overview of Xcel Energy Inc. for investors attending the EEI International Financial Conference. It summarizes Xcel's business segments, strengths, investment merits, capital investment plans, power supply, environmental commitments, and financial performance. Projections for 2004 earnings per share and cash flow are also presented. Key points include Xcel being the 4th largest US electric and gas utility, a growing service area, low rates, and a goal of providing competitive total returns of 7-9% to shareholders.
NiSource Inc. delivered strong financial results in 2003, with income from continuing operations of $1.64 per share. It strengthened its balance sheet by selling non-core assets and reducing debt. The company adopted a new organizational structure to focus on its core regulated utility businesses. NiSource aims to continue improving operations, pursuing growth opportunities, and operating responsibly in the communities it serves.
This document provides a summary of Leggett & Platt's debt obligations, derivative financial instruments, foreign investments, and stock performance. It discloses that over 75% of Leggett's debt is fixed rate and carries an average interest rate of 4.99% in 2006. It also uses derivatives to hedge interest rate, foreign currency, and commodity risks. Leggett views its foreign subsidiaries as long-term investments and does not hedge them except through one net investment hedge. Finally, it shows Leggett's stock has outperformed its industry peers and the S&P 500 over the past 5 years.
This document provides a summary of recent ethics-related news stories:
1) A report from Global Witness accuses HSBC of bankrolling unsustainable logging companies in Borneo that are violating the bank's forest policies.
2) The EU has decided to cut the aviation industry from the EU Emissions Trading Scheme due to pressure from China, India, and Russia.
3) The US has toughened its stance against human trafficking by introducing new rules to rank countries based on their efforts to combat trafficking and protect victims.
4) There is debate around the potential of wind energy given uncertainties over subsidies and public opposition to wind farms in some areas.
This document provides an overview of Xcel Energy from their presentation at the Edison Electric Institute Financial Conference in October 2003. Key points include Xcel achieving several accomplishments in 2003 including settling with NRG creditors, maintaining investment grade ratings, and refinancing debt. Projections for 2004 include earnings of $1.15-1.25 per share assuming NRG emerges from bankruptcy. The presentation outlines Xcel's objectives, investments, regulatory strategy, and earnings drivers to emphasize the company as a low-risk, integrated utility with a total return of 7-8%.
This document summarizes Xcel Energy's presentation at the Banc of America Securities Energy & Power Conference on November 17-19, 2003. It discusses Xcel Energy's accomplishments in 2003, objectives for investment, earnings growth, and credit ratings improvement. It also provides guidance on projected 2003 and 2004 earnings, cash flows, utility investments, and the expected timeline for NRG's emergence from bankruptcy.
Improving Patient Satisfaction with BellwetherBrian Lee Csp
Bellwether is a tool that enables hospitals to proactively manage HCAHPS feedback in real-time to maximize reimbursement from Value-Based Purchasing. It identifies trends in patient satisfaction early through bedside interviews using configurable question sets. Results are automatically integrated with an accountability system to trigger immediate corrective actions when thresholds are not met. This allows hospitals to shape outcomes before official HCAHPS scores are published, which can negatively impact reimbursement.
Lisa Sims, President of The IT Mechanic (www.theitmechanic.com) and founder of The Business Professionals Network (www.bpronetwork.com) shares her insights on what it takes for entrepreneurs to be their own boss and valuable tips to be successful.
1. The document discusses efforts to strengthen the local food system in six counties in northeast Iowa by increasing connections between producers, institutions, and consumers.
2. It outlines strategies used such as developing a strategic plan, expanding growing seasons, engaging schools in farm to school programs, and increasing commitments from organizations like colleges to purchase local food.
3. Results so far include increased sales and purchases of local food by producers and institutions between 2007-2009, as well as leveraged funding through grants.
The document summarizes a discussion at the January 2013 Agile:MK user group meeting about a project to develop a cloud-based computing grid platform called MG-ALFA Compute for Azure. A team of 4 developers used agile methods to develop the platform over 2 years. Key aspects included keeping the process simple, frequent design sessions, test-driven development, pair programming, and prioritizing the minimum required features. The platform successfully executed thousands of complex actuarial modeling jobs in the cloud.
Coles partnerships quality and trust-nfdp13DataDryad
Presentation by Simon Coles on issues of partnerships, quality and trust in data publishing given at the Now and Future of Data Publishing Symposium, 22 May 2013, Oxford, UK
In this presentation, Lisa Sims, Chief Technology Consultant for The IT Mechanic, shares her entrepreneurial experiences with small business owners and aspiring entrepreneurs as they journey along the road to being their own boss.
This document contains the prepared remarks and Q&A from Duke Energy's third quarter 2003 earnings conference call on October 30, 2003. Rick Priory, then-CEO of Duke Energy, noted that third quarter results were below expectations due to challenges faced by the DENA business segment. Duke Energy reported GAAP earnings of $0.05 per share and ongoing earnings of $0.35 per share for the quarter, excluding special items. Priory discussed cost reduction efforts that would yield over $200 million in annual pre-tax savings. CFO Robert Brace provided additional details on segment results and $0.30 per share in special items recorded in the quarter.
The document is the transcript from Duke Energy Corporation's Q4 2005 earnings conference call and outlook for 2006. It includes an introduction by Julie Dill, VP of Investor Relations. Paul Anderson, Chairman and CEO, provides an overview of Duke Energy's 2005 results and progress on the merger with Cinergy. Fred Fowler, President and COO, then reviews the outlook and earnings expectations for each of Duke Energy's business units for 2006.
This document contains the prepared remarks and Q&A from Duke Energy's third quarter 2005 earnings conference call on November 2, 2005. The call covered Duke Energy's financial results for the third quarter of 2005, including segment results for franchised electric, natural gas transmission, field services, international energy, and Crescent resources. It also provided updates on Duke Energy's plans to exit its DENA business and its proposed merger with Cinergy. Key executives discussed drivers of earnings growth or declines across business segments and provided earnings guidance for the remainder of 2005.
The document is a transcript from Duke Energy's first quarter 2007 earnings conference call.
- Duke Energy reported first quarter 2007 ongoing diluted EPS of $0.30, up from $0.21 in the prior year quarter. Results exceeded internal plans.
- Key drivers included the addition of Cinergy's regulated Midwest assets, improved results at Duke Energy International, and continued strong performance from core regulated businesses.
- Segment results were positively impacted by customer growth, favorable weather, a DOE settlement, and synergies from the Cinergy merger, partially offset by rate reductions related to merger approval requirements.
Duke Energy held an earnings conference call to discuss its third quarter 2006 results. The call included prepared remarks from Jim Rogers, President and CEO, and David Hauser, CFO. Rogers noted results were below expectations due to weaker performance across most business segments compared to the prior year third quarter. Hauser provided more details on financial results, noting lower earnings in franchised electric and gas, natural gas transmission, international, and Crescent Resources segments. However, commercial power results improved due to the addition of Cinergy's nonregulated operations. Overall, Duke Energy expects to achieve its revised 2006 employee incentive target of $1.86 per share.
The document provides details on Pepco Holdings' 2003 performance and future plans. It discusses challenges faced in 2003 including an energy trading loss, Mirant's bankruptcy, and Hurricane Isabel. However, actions taken in 2003 such as divesting non-core businesses and reducing risk are expected to set the stage for future earnings growth. The company remains focused on strengthening its core power delivery business and improving customer satisfaction.
This document summarizes a New York investor meeting held by Xcel Energy on November 29, 2005. The presentation outlines Xcel's strategy of investing in regulated utility assets to earn its allowed rate of return and achieve earnings growth targets. It highlights Xcel's financial performance objectives and discusses its investments in infrastructure, environmental stewardship, and supportive regulatory treatment across its utility territories. The presentation also reviews Xcel's operational focus and organizational structure.
This document summarizes a New York investor meeting held by Xcel Energy on November 29, 2005. The presentation outlines Xcel's strategy of investing in regulated utility assets to earn the allowed rate of return and deliver earnings per share growth of 5-7% annually. It highlights Xcel's environmental stewardship through renewable energy initiatives and discusses regulatory support for major projects. The organizational structure and roles of key executives are also summarized.
This document summarizes a New York investor meeting held by Xcel Energy on November 29, 2005. The presentation outlines Xcel's strategy of investing in regulated utility assets to earn its allowed rate of return and achieve earnings growth targets. It highlights Xcel's financial performance objectives and discusses its investments in transmission, distribution and customer service. The presentation also provides details on Xcel's construction program, environmental stewardship initiatives, and supportive regulatory treatment across its utility territories.
Dean Scarborough provided an overview of Avery Dennison Corporation's performance in 2005 and outlook. Key points:
1) The company improved underlying profitability in 2005 despite weaker sales, through price increases, cost cuts, and actions to drive future margin expansion.
2) Scarborough's assessment found the company has the right portfolio and strategies to deliver long-term value, with a goal to outperform shareholders' returns.
3) Over the next 3-5 years, the company aims to make its portfolio more profitable by reallocating resources and exiting underperforming businesses, while investing in growth initiatives like RFID and expanding in emerging markets.
This document summarizes Duke Energy's and Cinergy's first quarter 2006 earnings conference call. David Hauser, Duke Energy's CFO, discussed the financial results of both companies. For Duke Energy, earnings per share were $0.48, up from the prior year. Segment EBIT increased across most business units due to factors like customer and volume growth. For Cinergy, ongoing earnings per share were $0.62, up slightly from the prior year, while reported earnings were $0.39 due to merger costs. Hauser provided an overview of key financial metrics and outlook for both companies.
This transcript summarizes a Duke Energy earnings call for the third quarter of 2007:
[1] Duke Energy reported ongoing diluted EPS of $0.48 for Q3 2007, an improvement over $0.29 for the same period last year, driven by higher EBIT from its major business segments.
[2] The US Franchised Electric and Gas segment saw an $82 million increase in EBIT year-over-year due to favorable weather, rate reductions ending, and higher wholesale volumes, partially offset by higher costs.
[3] Commercial Power reported higher EBIT of $121 million compared to $57 million last year, from improved margins and Midwest gas plant performance.
[4
The annual report summarizes Corning's financial performance in 2002, a challenging year due to the downturn in the telecommunications industry. Corning reported a net loss of $1.3 billion on sales of $3.2 billion, down significantly from 2001. In response, Corning restructured operations, cutting costs and jobs to preserve its financial position. It aims to return to profitability in 2003 by focusing on growing its display glass, environmental, and semiconductor businesses within Corning Technologies. While telecommunications remains weak, Corning maintains its leadership in optical fiber and intends to benefit when the market rebounds.
David Ratcliffe will become President of Southern Company in April and Chairman and CEO in July, succeeding Allen Franklin who will retire after 34 years with the company. Ratcliffe praises Franklin's leadership and the consistent success Southern Company has achieved. He expresses confidence in the company's strategy and team to continue delivering solid long-term results and earnings growth of 5% annually. The transition will be seamless as Southern Company's strengths remain its focus on the Southeast region and balanced business portfolio.
This document summarizes the business wealth management process for one quarter. It focuses on cash flow planning this quarter and estate and legacy planning for the next quarter. Cash flow planning can address future needs like retirement contributions and business obligations. Though planning requires initial time, future adjustments can be easily made. The next quarter will focus on estate and legacy planning.
This document is the annual report for Omnicom from 2001. It summarizes the company's financial performance for 2001 and compares it to previous years. Some key points:
- Revenue reached $6.89 billion in 2001, a record high, though growth slowed due to economic challenges including the recession and 9/11 attacks.
- Operating income was $968 million and net income was $503 million in 2001. Earnings per share were $2.75 excluding a one-time gain.
- The company achieved all of its financial goals for 2001 except improving operating margins, due to a slowdown in client spending in many industries.
- Omnicom won a record $4.
This document is the annual report for Omnicom from 2001. It provides an overview of the company's financial performance for 2001 compared to previous years, as well as highlights from each of its major advertising agency networks - BBDO Worldwide, DDB Worldwide, and TBWA Worldwide. The report discusses how each agency network expanded its client roster and won various industry awards in 2001 despite challenges from economic slowdown. It also notes some leadership changes that occurred within the company.
The United States premier Solar Energy Investment & Finance Summit. Back for its second edition in 2009, secure investment and finance for your solar projects in 2009 and beyond
The document is Southern Company's 2005 annual report. It provides an overview of the company's financial performance in 2005, highlights from the CEO's letter to shareholders, and summaries of key issues discussed by the CEO including the federal energy policy act, industry consolidation, the future of nuclear power, environmental performance, and making the right choices to meet long-term energy needs.
This document contains the prepared remarks and Q&A from Duke Energy Corporation's earnings conference call for the second quarter of 2006. Key points:
- Duke Energy reported ongoing EPS of $0.43 compared to consensus of $0.38.
- Financial results were impacted by mild weather, lower bulk power sales, and purchase accounting charges from the Cinergy merger.
- The company achieved several strategic objectives in the quarter including closing the Cinergy merger early and announcing the sale of the Commercial Marketing and Trading business.
- While some business units are performing ahead of plan, overall the company is on track to achieve its $1.90 EPS target for 2006.
Similar to Duke Energy 4Q/03_Transcript_and_QA_-Final (20)
ConAgra Foods is selling its chicken business to focus on branded and value-added food items. The sale includes chicken processing operations and will generate cash for ConAgra to reinvest. ConAgra will receive Class A shares in Pilgrim's Pride, the chicken company acquiring its business, representing 7% of voting shares and 49% of equity. It can sell up to 1/3 of these shares annually but expects to reduce ownership over time based on market conditions. ConAgra will also receive notes from Pilgrim's Pride due in 2011 with a 10.5% interest rate to be paid semi-annually.
This document summarizes the Q1 FY2004 earnings results of a large packaged foods company. Key points include:
- Q1 EPS was $0.37 compared to $0.43 in Q1 FY2003, impacted by various one-time gains and losses.
- Packaged foods sales were down $168M excluding divested businesses, with a 5% volume decline.
- Several major brands saw growth, while others like Butterball declined.
- Corporate expenses increased due to litigation expenses from a past joint venture.
- The effective tax rate for FY2004 is estimated at 38%.
ConAgra Foods is selling its United Agri Products business to focus on branded and value-added products, as part of a broader strategy of divesting non-core businesses over the past year including fresh beef/pork, canned seafood, and cheese operations. The sale is expected to close by December 31, 2003 for cash and $60-75 million in preferred stock. ConAgra will retain some international UAP operations generating $250 million in annual sales, concentrated in several countries. Proceeds will be used for debt paydown and general corporate purposes including acquisitions and stock buybacks.
ConAgra Foods divested its poultry business to focus on branded, value-added foods with strong margins and growth. The $300 million cash and 25 million Pilgrim's Pride shares valued at $245 million totaled less than the poultry business' estimated $545 million book value due to the shares being valued based on past prices, not current prices. ConAgra Foods can sell up to 1/3 of the shares each year and account for shares eligible for resale within a year as securities, and other shares using cost accounting. The poultry business was previously reported in Meat Processing but is now in Discontinued Operations.
ConAgra Foods completed the divestiture of its chicken processing and crop inputs businesses, finalizing its strategy to focus on branded, value-added food opportunities. The company received $300 million in cash and 25 million shares of Pilgrim's Pride stock worth $245 million for the chicken business. ConAgra can sell up to 1/3 of the Pilgrim's Pride shares per year and will account for the shares as securities held for resale within one year or using the cost method if the eligibility for resale is over one year away. The chicken business was previously reported as part of ConAgra's Meat Processing segment but is now in Discontinued Operations.
ConAgra Foods has divested several commodity businesses and acquired branded and value-added food products to focus on higher margin businesses. The company is planning a share repurchase program using cash from strong operating cash flows and recent divestitures. ConAgra expects to continue investing in growth through acquisitions and paying down debt while deploying cash to dividends, debt repayment, and share repurchases as appropriate.
The document provides a Q&A summary of ConAgra Foods' financial results for Q2 FY04 compared to Q2 FY03. Key points include:
- Q2 FY04 diluted EPS was $0.51 compared to $0.44 in Q2 FY03, impacted by $0.04 in discontinued operations in FY04 and $0.03 in divestiture expenses in FY03.
- Sales comparability was impacted by $506M in divested fresh meat businesses in FY03 and $154M in divested canned food businesses in FY03.
- Examples of brand sales growth included Banquet, Chef Boyardee, Egg Beaters
Packaged Foods sales increased 4% excluding divestitures, with 2% volume growth. Several brands posted sales growth including Armour, Banquet, and Blue Bonnet, while others like ACT II and Butterball declined. Sales comparability was affected by $155 million in divested businesses last year. Operating profit grew 5% in Packaged Foods and 10% overall when adjusting for divested businesses and cost savings initiatives. The company is implementing cost cutting measures expected to save more than implementation costs in the future.
The document provides the quarterly and annual financial results for a company. Some key highlights include:
- Several consumer brands posted sales growth for the quarter including Banquet, Blue Bonnet, and Chef Boyardee, while others like ACT II and Eckrich saw declines.
- Total depreciation and amortization was around $93 million for the quarter and $352 million for the fiscal year.
- Capital expenditures were around $106 million for the quarter and $352 million for the fiscal year.
- Net interest expense was $80 million for the quarter and $275 million for the fiscal year.
- Corporate expenses were around $95 million for the quarter and $342 million
- Major brands in the Retail Products segment that posted sales growth included ACT II, Armour, Banquet, and Blue Bonnet. Brands that posted sales declines included Healthy Choice, Slim Jim, and Snack Pack.
- Retail volume increased 8% while foodservice volume was flat excluding divested businesses.
- Increased input costs negatively impacted operating profits in the Retail Products segment by approximately $45 million.
- Capital expenditures were approximately $105 million, reflecting increased investment in information systems.
This document contains the questions and answers from ConAgra Foods' Q2 FY2005 earnings call. Some key details include:
- Several major brands in the Retail Products segment posted sales growth, while others saw declines.
- Retail volume increased 7% and Foodservice volume decreased 1% excluding divested businesses.
- Capital expenditures increased significantly year-over-year due to investments in information systems.
- The company received proceeds from the sale of its minority interest in Swift Foods and shares of Pilgrim's Pride stock.
This document summarizes the Q3 2005 earnings results of a major food company. Some key highlights include: 1) Major brands in the Retail Products segment saw mixed sales results, with growth for brands like Chef Boyardee but declines for brands like Butterball. 2) Unit volumes declined 3% for Retail Products but increased 4% for Foodservice Products. 3) The packaged meats operations were slightly profitable but profits were over $45 million lower than the previous year. The company expects some improvement but not year-over-year profit gains for packaged meats in Q4.
This document summarizes ConAgra Foods' earnings results for fiscal year 2005 (FY05) in a question and answer format. Some key details include:
- FY05 diluted EPS was $1.23, including $0.12 in expenses that impacted comparability.
- Major brands in the Retail Products segment that saw sales growth included ACT II, Banquet, and Blue Bonnet. Brands that saw declines included Armour and Butterball.
- Retail Products volume increased 2% while Foodservice Products volume decreased 2% in Q4.
- Total depreciation and amortization was approximately $351 million for FY05 and $90 million for Q4. Capital expenditures
The document provides the questions and answers from the Q1 FY06 earnings call for ConAgra Foods. Some key details from the summary include:
- Sales grew for major brands like Butterball but declined for brands like ACT II. Retail Products volume declined 3% while Foodservice increased 4%.
- Depreciation and amortization was $89 million. Capital expenditures were $71 million and net interest expense was $68 million. Corporate expense was $73 million.
- Gross margin was 21.6% and operating margin was 10.9%. The effective tax rate for FY06 is estimated to be 36%.
Major brands in the Retail Products segment that posted sales growth included ACT II, Blue Bonnet, Butterball, Kid Cuisine, Marie Callender's, Reddi-wip and Ro*Tel. Brands that posted sales declines included Armour, Banquet, Cook's, DAVID, Eckrich, Egg Beaters, Healthy Choice, Hebrew National, Hunt's, LaChoy, Orville Redenbacher, PAM, Parkay, Peter Pan, Slim Jim, Snack Pack, Swiss Miss, Van Camp's and Wesson. Retail Products volume declined 5% for the quarter while Foodservice Products volume increased 2%. Corporate expense for the quarter was approximately $103 million
The document provides financial information from ConAgra Foods' Q3 FY06 quarterly earnings call. Some key details include:
- Retail segment sales grew 4% and Foodservice grew 1% over the prior year. Several major brands posted sales growth while others declined.
- Gross margin was 24.8% and operating margin was 12.5% for the quarter.
- Net debt was $3.6 billion, down from $4.5 billion a year prior due to debt repayment of $500 million during the quarter.
- Capital expenditures for the quarter and fiscal year-to-date were below prior year levels. Projected fiscal year expenditures are up to $400
- Major brands in the Consumer Foods segment that posted sales growth in Q4 FY06 included Blue Bonnet, Chef Boyardee, DAVID, Egg Beaters, Hebrew National, and Hunt's. Brands that posted sales declines included ACT II, Banquet, Healthy Choice, Peter Pan, Slim Jim, Snack Pack, and Van Camp's.
- Consumer Foods volume declined 2% in Q4 while Food and Ingredients volume increased 1%.
- Total depreciation and amortization for Q4 was approximately $85 million and approximately $353 million for all of FY06. Capital expenditures were approximately $92 million for Q4 and $288 million for FY
This document summarizes the Q1 FY07 financial results of ConAgra Foods. Some key highlights include:
- Consumer Foods volume increased 1% and Food and Ingredients volume increased 2% in Q1.
- Gross margin was 24.7% and operating margin was 11.7% for the quarter.
- Net debt decreased to $2.88 billion from $3.97 billion in Q1 FY06.
- Restructuring charges totaled $39 million pre-tax, impacting costs in Consumer Foods and corporate expenses.
Major brands in the Consumer Foods segment that posted sales growth included Egg Beaters, Healthy Choice, and Slim Jim. Brands that posted sales declines included ACT II and Blue Bonnet. Total depreciation and amortization from continuing operations was $88 million for the quarter and $177 million year-to-date. Capital expenditures were $66 million for the quarter and $111 million year-to-date. Net interest expense was $52 million for the quarter and $110 million year-to-date.
1) Several major brands in the Consumer Foods segment posted sales growth for the quarter, while others like ACT II and Banquet saw declines. Overall, Consumer Foods volume declined 1% excluding divested businesses.
2) Total depreciation and amortization from continuing operations was around $91 million for the quarter and $268 million year-to-date. Capital expenditures were around $147 million for the quarter and $258 million year-to-date.
3) The company's net debt at the end of the quarter was around $3 billion, with a net debt to total capital ratio of 39%.
The Universal Account Number (UAN) by EPFO centralizes multiple PF accounts, simplifying management for Indian employees. It streamlines PF transfers, withdrawals, and KYC updates, providing transparency and reducing employer dependency. Despite challenges like digital literacy and internet access, UAN is vital for financial empowerment and efficient provident fund management in today's digital age.
Economic Risk Factor Update: June 2024 [SlideShare]Commonwealth
May’s reports showed signs of continued economic growth, said Sam Millette, director, fixed income, in his latest Economic Risk Factor Update.
For more market updates, subscribe to The Independent Market Observer at https://blog.commonwealth.com/independent-market-observer.
A toxic combination of 15 years of low growth, and four decades of high inequality, has left Britain poorer and falling behind its peers. Productivity growth is weak and public investment is low, while wages today are no higher than they were before the financial crisis. Britain needs a new economic strategy to lift itself out of stagnation.
Scotland is in many ways a microcosm of this challenge. It has become a hub for creative industries, is home to several world-class universities and a thriving community of businesses – strengths that need to be harness and leveraged. But it also has high levels of deprivation, with homelessness reaching a record high and nearly half a million people living in very deep poverty last year. Scotland won’t be truly thriving unless it finds ways to ensure that all its inhabitants benefit from growth and investment. This is the central challenge facing policy makers both in Holyrood and Westminster.
What should a new national economic strategy for Scotland include? What would the pursuit of stronger economic growth mean for local, national and UK-wide policy makers? How will economic change affect the jobs we do, the places we live and the businesses we work for? And what are the prospects for cities like Glasgow, and nations like Scotland, in rising to these challenges?
5 Tips for Creating Standard Financial ReportsEasyReports
Well-crafted financial reports serve as vital tools for decision-making and transparency within an organization. By following the undermentioned tips, you can create standardized financial reports that effectively communicate your company's financial health and performance to stakeholders.
1. Elemental Economics - Introduction to mining.pdfNeal Brewster
After this first you should: Understand the nature of mining; have an awareness of the industry’s boundaries, corporate structure and size; appreciation the complex motivations and objectives of the industries’ various participants; know how mineral reserves are defined and estimated, and how they evolve over time.
"Does Foreign Direct Investment Negatively Affect Preservation of Culture in the Global South? Case Studies in Thailand and Cambodia."
Do elements of globalization, such as Foreign Direct Investment (FDI), negatively affect the ability of countries in the Global South to preserve their culture? This research aims to answer this question by employing a cross-sectional comparative case study analysis utilizing methods of difference. Thailand and Cambodia are compared as they are in the same region and have a similar culture. The metric of difference between Thailand and Cambodia is their ability to preserve their culture. This ability is operationalized by their respective attitudes towards FDI; Thailand imposes stringent regulations and limitations on FDI while Cambodia does not hesitate to accept most FDI and imposes fewer limitations. The evidence from this study suggests that FDI from globally influential countries with high gross domestic products (GDPs) (e.g. China, U.S.) challenges the ability of countries with lower GDPs (e.g. Cambodia) to protect their culture. Furthermore, the ability, or lack thereof, of the receiving countries to protect their culture is amplified by the existence and implementation of restrictive FDI policies imposed by their governments.
My study abroad in Bali, Indonesia, inspired this research topic as I noticed how globalization is changing the culture of its people. I learned their language and way of life which helped me understand the beauty and importance of cultural preservation. I believe we could all benefit from learning new perspectives as they could help us ideate solutions to contemporary issues and empathize with others.
Fabular Frames and the Four Ratio ProblemMajid Iqbal
Digital, interactive art showing the struggle of a society in providing for its present population while also saving planetary resources for future generations. Spread across several frames, the art is actually the rendering of real and speculative data. The stereographic projections change shape in response to prompts and provocations. Visitors interact with the model through speculative statements about how to increase savings across communities, regions, ecosystems and environments. Their fabulations combined with random noise, i.e. factors beyond control, have a dramatic effect on the societal transition. Things get better. Things get worse. The aim is to give visitors a new grasp and feel of the ongoing struggles in democracies around the world.
Stunning art in the small multiples format brings out the spatiotemporal nature of societal transitions, against backdrop issues such as energy, housing, waste, farmland and forest. In each frame we see hopeful and frightful interplays between spending and saving. Problems emerge when one of the two parts of the existential anaglyph rapidly shrinks like Arctic ice, as factors cross thresholds. Ecological wealth and intergenerational equity areFour at stake. Not enough spending could mean economic stress, social unrest and political conflict. Not enough saving and there will be climate breakdown and ‘bankruptcy’. So where does speculative design start and the gambling and betting end? Behind each fabular frame is a four ratio problem. Each ratio reflects the level of sacrifice and self-restraint a society is willing to accept, against promises of prosperity and freedom. Some values seem to stabilise a frame while others cause collapse. Get the ratios right and we can have it all. Get them wrong and things get more desperate.
Optimizing Net Interest Margin (NIM) in the Financial Sector (With Examples).pdfshruti1menon2
NIM is calculated as the difference between interest income earned and interest expenses paid, divided by interest-earning assets.
Importance: NIM serves as a critical measure of a financial institution's profitability and operational efficiency. It reflects how effectively the institution is utilizing its interest-earning assets to generate income while managing interest costs.
OJP data from firms like Vicinity Jobs have emerged as a complement to traditional sources of labour demand data, such as the Job Vacancy and Wages Survey (JVWS). Ibrahim Abuallail, PhD Candidate, University of Ottawa, presented research relating to bias in OJPs and a proposed approach to effectively adjust OJP data to complement existing official data (such as from the JVWS) and improve the measurement of labour demand.
Abhay Bhutada, the Managing Director of Poonawalla Fincorp Limited, is an accomplished leader with over 15 years of experience in commercial and retail lending. A Qualified Chartered Accountant, he has been pivotal in leveraging technology to enhance financial services. Starting his career at Bank of India, he later founded TAB Capital Limited and co-founded Poonawalla Finance Private Limited, emphasizing digital lending. Under his leadership, Poonawalla Fincorp achieved a 'AAA' credit rating, integrating acquisitions and emphasizing corporate governance. Actively involved in industry forums and CSR initiatives, Abhay has been recognized with awards like "Young Entrepreneur of India 2017" and "40 under 40 Most Influential Leader for 2020-21." Personally, he values mindfulness, enjoys gardening, yoga, and sees every day as an opportunity for growth and improvement.
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1. PREPARED REMARKS AND Q&A
Q4 2003 Duke Energy Earnings Conference Call January 29, 2004
CORPORATE PARTICIPANTS PRESENTATION
Greg Ebel
Duke Energy Corporation - VP-Investor and Shareholder
Relations
Operator
Paul Anderson
Duke Energy Corporation - Chairman, CEO
Good day, everyone, and welcome to the Duke Energy fourth
David Hauser quarter and year end earnings conference call. Today's call is being
Duke Energy Corporation - Interim CFO, Senior VP recorded.
Fred Fowler
At this time for opening remarks, I would like to turn the call over
Duke Energy Corporation - President, COO
to the Vice President of Investor and Shareholder Relations for
Duke Energy, Mr. Greg Ebel. Please go ahead, sir.
CONFERENCE CALL PARTICIPANTS
Kit Konolige
Greg Ebel - Duke Energy Corporation - VP-Investor and
Morgan Stanley
Shareholder Relations
Dan Eggers
Credit Suisse First Boston
Good morning and thank you for joining us this morning. With
Andrew Davis me today are Paul Anderson, CEO and Chairman of Duke Energy
Harvard Manangement and David Hauser, group vice president and CFO of Duke Energy.
In addition, Fred Fowler – Chief Operating Officer, Keith Butler –
Jessica Rutledge
Corporate Controller, and Myron Caldwell, our Treasurer are with
Lazard Asset Management
us to assist with questions you may have today.
Maureen Howell
RBC Capital Markets
Today’s call will be focused on the results for the fourth quarter
Jay Yannello and full year 2003. I know many of you are eager to get more
UBS
information on our medium term outlook following our conference
Leslie Rich call a few weeks ago. Our key business unit leaders will be in a
Bank of America position to have that discussion with you on February 3rd when we
come to New York for a half day analyst meeting.
Wen-Wen Chen
ABN Amro
Before we start today let me read to you our Safe Harbor
Brian Chin
Statement.
Smith Barney
Jason West
Some of the things we will discuss in today's call concerning future
Deutsche Bank
company performance will be forward-looking statements within
Ollie Auga
the meaning of securities laws. Actual results may materially
Burnham Securities
differ from those discussed in these forward-looking statements,
Vic Khaitan and you should refer to the additional information contained in our
Deutsche Asset Management SEC filings concerning factors that could cause those results to be
different than contemplated in today’s discussion.
Devin Geoghegan
Zimmer Lucas Partners
Steve Fleishman In addition, today’s discussion includes certain non-GAAP
Merrill Lynch financial measures as defined under SEC Regulation G. A
reconciliation of those measures to the most directly comparable
Michael Goldenberg
GAAP measures will be made available on our investor relations
Luminus Management
website at: www.duke-energy.com.
Following Paul’s and David’s prepared comments we will open the
lines for questions.
Now I’ll turn to Paul for opening comments.
1
2. PREPARED REMARKS AND Q&A
Q4 2003 Duke Energy Earnings Conference Call January 29, 2004
thought you needed to see a table which summarizes all of the
Paul Anderson - Duke Energy Corporation - Chairman, CEO
special items included in our reported EBIT numbers.
Thank you, Greg.
As you can see the most significant items shown here have to do
with the fourth quarter 2003 asset impairments at DENA, the
I’d like to begin by noting that 2003 has been a year of transition
associated disqualified hedges and the wind down of Duke Energy
for Duke Energy. We were quite successful in reversing the
Trading & Marketing. The third quarter goodwill write-down was
trajectory of the company and establishing a stable platform on
the most significant charge not in the fourth quarter.
which we can build. Despite those accomplishments, and to a
certain extent because of them, we are reporting the largest loss in
In addition to the numbers shown here, other special items totaling
the history of the company.
approximately $170 million are included in our financials as net
losses from discontinued operations, net of tax.
As you have no doubt seen, Duke Energy reported a net loss of
$1.48 per share for 2003, which included $2.76 in special items
We’ve put this information out to help you better understand what
which we will cover in more detail in just a minute. Reported
our 2003 ongoing EBIT from continuing operations are for each of
earnings for 2002 were $1.22 per share and included charges for
our reporting segments.
special items totaling 66 cents per share.
With that, let me turn things over to David…
Most of our business segments continued to deliver strong results
for the quarter and the year. Gas Transmission, Field Services,
International and Crescent met their earnings targets and produced David Hauser - Duke Energy Corporation - Inteirm CFO,
Senior VP
good cash flows. Natural Gas Transmission recognized its first
full year of earnings from the Westcoast assets and Field Services
benefited from higher NGL prices and improving frac spreads. Thank you, Paul.
International’s Latin American assets delivered expected results
and National Methanol had record output during the year. For the fourth quarter 2003, Duke Energy reported a loss of $2.23
per share. Excluding the $2.45 in special items for fourth quarter
Decreased earnings for the year at Franchised Electric reflect discussed earlier, ongoing earnings were 22 cents per share.
higher depreciation, amortization and O&M costs. Lower sales in
our service territory due to unfavorable weather for the year were As you may likely have noticed we are now reporting
offset by higher off-system sales to wholesale customers. Discontinued Operations. This is the first time that we have the
income statement line “Discontinued Operations” . It is the
DENA’s ongoing results for the year reflect the continued over- accounting fall-out associated with our fourth quarter decision to
supply of merchant generation and low spark spreads which have exit certain businesses. The Discontinued Operations line is net of
precluded many of our facilities from generating cost-effective both interest expense and income taxes. As this change affects
power. And as we discussed in our call earlier this month, we took past periods we have reclassified for prior periods. Looking
a number of charges for asset impairments, at both DENA and forward, this should provide you with a better view of our ongoing
DEI, and for costs to wind-down the Duke Energy Trading & earnings.
Marketing joint venture. With these decisions behind us, DENA
can now focus on divesting plants in the Southeast and contracting Now let me move on to the specifics at the business segments.
more power supplies from our remaining facilities.
Franchised Electric reported segment EBIT of $197 million for the
As a part of our cost reduction efforts across the company, Duke fourth quarter of 2003 compared with $248 million for the same
Energy incurred approximately $153 million in severance costs period in 2002. Excluding $29 million primarily related to
during 2003. Annual cost savings related to the workforce severance charges, ongoing segment EBIT for the fourth quarter of
reduction and other cost saving initiatives will reach at least $200 2003 was $226 million. While our ongoing EBIT was lower than
million in 2004. originally anticipated, the cash flow generated in 2003 was in line
with our projections.
Earlier this month I shared with you some charges we planned to
take during the fourth quarter. I would like to update you on where Primary drivers for the quarter were reduced revenues from milder
we ended up with those charges as well as other charges which weather, lower wholesale power sales, and higher depreciation,
make up our special items for 2003. amortization and O&M expenses. Additional Clean Air
amortization and the new Mill Creek plant, along with other capital
This table has a lot of numbers on it. I’m not going to walk through additions, contributed to higher depreciation and amortization
each item in this table as we have already provided you with expense.
information concerning these charges in previous calls. But I
2
3. PREPARED REMARKS AND Q&A
Q4 2003 Duke Energy Earnings Conference Call January 29, 2004
During the fourth quarter, Franchised Electric increased its North the third quarter. We’ve seen frac spreads continue to increase in
Carolina Clean Air amortization expense by $10 million from its January as well.
originally projected amount for a total of $28 million. Clean Air
amortization for the year totaled $115 million, approximately $45 Weighted average NGL prices for the full year also showed similar
million more than our original estimate for 2003. improvement -- 58¢ compared with 45¢ in 2002.
We saw heating degree hours decrease 12.8% from last year’s Operating costs during the quarter were about $20 million higher
fourth quarter. This warmer winter weather decreased gigawatt- than last year primarily due to some $20 million in 4Q03 charges
hour sales by about 7% from the fourth quarter of 2002. for severance and other employee-related expenses. Going into
Residential and industrial sales decreased by 7% and 5.5% 2004, we expect direct operating and G&A expenses to average
respectively. The number of customers increased by 1.9% about $575-600 million.
compared with fourth quarter last year.
Field Services continues to work on adding minimum fee clauses
[Annual gigawatt-hour sales decreased 1.2% and customers to a portion of its keep-whole contracts. These clauses could be
increased 2.0% during 2003. Heating degree hours increased 1.1% exercised in the event of weak frac spread pricing environments.
and cooling degree hours decreased 30.4% for the year.]
And we have also transitioned some keep-whole contracts to
For the full year you will notice that our reported earnings for percent-of-proceeds contracts. This transition has had the effect of
Franchised Electric are about $200 million lower than in 2002. neutralizing the sensitivity to changes in natural gas prices. Field
This lower earnings number is consistent with both our current rate Services’ sensitivity to a 10¢ per MMBtu change in the price for
base and our allowed returns in North and South Carolina. natural gas now equates to a less than $1 million change in
segment EBIT with a negative correlation – where it was about $5
Now let me move on to Natural Gas Transmission. million before.
Our gas transmission businesses in the US and Canada delivered Sensitivities to NGL prices have also changed – At the Duke
$308 million in segment EBIT for the fourth quarter of 2003 Energy level, net of all hedging, the sensitivity is approximately $6
compared with $294 million in 2002. When adjusted for special million in segment EBIT for a 1¢ change in NGL prices. The NGL
items EBIT for both quarters totaled $303 million. sensitivity is positively correlated. At the 100% Field Services
level, without hedging, a 1¢ per gallon change in NGL prices
Special items during the fourth quarter of 2003 included gains on moves segment EBIT by about $18 million compared with the
asset sales of $16 million and an $11 million charge for severance prior sensitivity of $25 million. This reduction is largely driven by
and related costs. the movement from keep-whole contracts to percent-of-proceeds
contracts. The transition to more percent-of-proceeds contracts
Flat earnings quarter over quarter was the result of foregone essentially reduces the volatility in earnings related to NGL price
earnings related to asset sales during 2003 partially offset by fluctuations.
incremental earnings from expansion projects.
DENA’s results for the quarter continue to reflect the poor market
Natural Gas Transmission delivered solid results and exceeded its conditions for the merchant energy business. Continued
forecasted annual EBIT target of $1.2 billion despite foregone downward pressure on spark spreads severely limited our ability to
earnings associated with certain asset divestitures. capture value in the marketplace. Higher depreciation expenses
associated with new projects added over the last year also
Overall, Field Services’ ongoing EBIT for the fourth quarter was contributed to the EBIT loss. DENA reported a fourth quarter
about $10 million higher than last year. Earnings benefited from ongoing EBIT loss of $74 million compared with a positive $63
the improvement in NGL pricing, although hedges against million last year.
movements in NGL pricing partially offset the price increases.
The major variance between reported EBIT and ongoing EBIT is
Field Services realized strong margins from its processing the approximately $3.1 billion in special items taken in the fourth
business, especially on percent-of-proceeds contract margins quarter of 2003. These charges related to the asset impairment of
which increased nearly $35 million over last year’s fourth quarter. DENA’s Southeastern plants and the deferred Western plants,
wind-down costs associated with the DETM joint venture and the
Natural gas liquids prices continued to improve over last year from re-designation of certain hedges from accrual to MTM that are
45 cents in the fourth quarter of 2002 to 54 cents in the fourth related to the impaired assets.
quarter this year. NGLs so far in the first quarter of 2004 have
averaged about 66 cents per gallon. The frac spread was $1.81 per During the fourth quarter of 2002, DENA had special charges of
MMBtu at the end of the fourth quarter – about a dollar higher than $41 million made up of workforce reductions of $7 million,
3
4. PREPARED REMARKS AND Q&A
Q4 2003 Duke Energy Earnings Conference Call January 29, 2004
demobilization costs of $10 million and a $24 million charge for For our Other Operations segment, I’d like to briefly review the
an information management system write-off. largest component in that segment – Crescent Resources, our real
estate business. Crescent reported 2003 EBIT of approximately
At Duke Energy North America, total gross margin realized in $150 million, which was in line with our expectations for the full
2003 amounted to $653 million. Low-risk gross margin totaled year as was their cash generation.
approximately $600 million for the year which is consistent with
the amount we have been expecting and have discussed with you For the entire year we reached a total of more than $2 billion in
previously. gross proceeds from asset sales, far exceeding our original
expectation of $600 million. And it’s important to note that these
Offsetting total gross margin were operating expenses totaling were not fire sales – we realized good value for these assets.
$722 million for depreciation, operating and maintenance, G&A
and minority interest expenses which results in an annual ongoing The after-tax proceeds associated with our 2003 asset sales are
EBIT loss before special items of $69 million. approximately $1.8 billion.
G&A expenses were higher in the fourth quarter due to charges for For 2003, the impact of foregone operating income was
bad debt and severance expenses, and a contract dispute reserve. approximately $150 million. The annualized impact on operating
income going forward will be approximately $245 million.
You can see that we have also included the special items recorded
in the fourth quarter of 2003 to reconcile to our reported segment Proceeds from our 2003 asset sales have contributed greatly to our
EBIT. ability to reduce the company’s debt balances.
This Committee of Chief Risk Officers table is something that you We are actively pursuing the sale of our generation assets in the
are all familiar with. I wanted to bring to your attention that we Southeast and the sale or IPO of our Australian energy business is
have removed the Southeast assets from all years shown because well underway. We have hired financial advisors to assist us in
we are pursuing the sale of these assets. We have also excluded these transactions. Expected proceeds from these transactions are
the capacity associated with the deferred plants beginning in 2005 approximately $1.5 billion. The completion of these asset sales
when they were expected to be in service. will substantially reduce the company’s exposure to merchant
generation and international operations.
You can see that we have sold approximately 93% of our estimated
production in 2004 and about 66% in both 2005 and 2006. The Before I move on to the discussion of debt reductions let me
average price per MWH for these sales is $44 in 2004, $45 in 2005 review the change in interest expense.
and $42 in 2006.
Duke Energy reported a $283 million increase in interest expense
Additionally, we have purchased in excess of 80% of the gas in 2003 compared to 2002. With our $2.2 billion reduction in debt
needed to meet production sold for each of the years shown in the during the year, you might reasonably have expected a decrease in
table. interest expense. A few of the significant reasons for the increase
are:
For the fourth quarter of 2003, Duke Energy’s international
•
operations reported EBIT from continuing operations of $36 $136 million decrease in capitalized interest at
million, including a $26 million charge for an environmental DENA and Crescent
•
reserve related to our Brazilian operations. Excluding this charge, $48 million interest on trust preferred securities
ongoing EBIT was $62 million. Reported EBIT for the fourth reclassified from minority interest expense
•
quarter of 2002 as restated to remove the effect of discontinued $46 million due to full year effect of Westcoast
operations was $23 million. Ongoing EBIT for the fourth quarter acquisition
•
of 2002 was $27 million. $16 million write-off of unamortized debt costs in
Duke Power’s settlement with the South Carolina
International Energy’s ongoing operations produced favorable commission
results for the quarter reflecting positive results from the Latin
American operations and National Methanol. There are myriad other factors affecting interest but these are just
some of the more significant items. As we begin to realize the full
Earnings and special charges from the company’s Australian and year effect of the $2.2 billion decline in debt in 2003 and the
European businesses as well as results from PJP have been additional debt reduction in 2004, we’ll see considerably lower
reclassed to discontinued operations for the current and prior years. interest expense going forward. In 2004, interest expense should
be about $1.3 billion and in 2005 about $1.1 billion.
4
5. PREPARED REMARKS AND Q&A
Q4 2003 Duke Energy Earnings Conference Call January 29, 2004
This slide illustrates the changes in debt balances for 2003 and These accomplishments allowed Duke Energy to reduce debt in
2004. At the end of 2003, we had a total debt balance of 2003 by approximately $2.2 billion and approximately $3.7 billion
approximately $22 billion. at Duke Capital. We’re off to a strong start in our debt reduction
goal having exceeded our 2003 projections. Our current plan,
which we shared with you on Jan 7th, will result in debt reduction
We have exceeded our plans for debt repayment and reduced
overall debt, including trust preferred securities, by $2.2 billion at of approximately $6 billion in the two years ending December
Duke Energy. Reductions at Duke Capital reached $3.7 billion. 2004 versus our original goal of $5.5 billion in debt reduction over
The total planned debt reduction for 2003 was originally $1.8 the three years ending 2005. In other words, we are a year ahead
billion. of schedule.
Over the next 12 months we expect to reduce overall debt by We discussed a change in management’s view of DENA and DEI
approximately $3.5 to $4 billion. These reductions will take place that resulted in approximately $3.4 billion in pre-tax charges. In
through the mandatory conversion of the equity units in May and 2004, we expect to reduce the size of these operations along with
November, asset sales, debt maturities and other reductions. We reducing the risk exposures inherent in these businesses. We
plan to retire all economically callable debt and trust preferred expect to divest generation assets at DENA, primarily in the
securities in 2004. Southeastern US, and we are already taking steps to exit DEI’s
business in Australia. We expect to complete our exit from Europe
Included in this debt reduction amount is the approximately $900 in the first half of 2004.
million of debt related to our Australian business. Because the
operations of this business are now considered “Discontinued While Duke Energy continues to be subject to significant litigation
Operations” for accounting purposes, the debt associated with and regulatory challenges, this is also an area which has enjoyed
these operations was reclassed on the balance sheet to “Liabilities significant successes over the last year. Highlights include the
Associated with Assets Held for Sale”. At the time the assets are dismissals of the shareholder class action suits arising out of the
sold, the associated debt will be removed from the balance sheet. “round-trip trading;” the settlement of false price reporting
allegations with the Commodity Futures Trade Commission
The combination of debt reductions of $3.1 billion, excluding the (CFTC); and, the Federal Energy Regulatory Commission (FERC)
Australian debt, and new equity issued as a result of the mandatory Staff’s exoneration of DENA from allegations of physical
conversion of debt to equity will significantly improve our debt to withholding during the California energy crisis and settlement of
cap ratio from 58% to 52% in just one year. Both of these all California-related FERC matters except the refund case.
numbers reflect the impact on our equity balance of the
impairments taken at the end of 2003. While it’s unfortunate that we did not deliver on our earnings goal,
reaching and exceeding other financial goals and clearing up
Strengthening the balance sheet has been a top priority for the significant legal and regulatory issues should not be overlooked.
company. We have maintained an appropriate level of liquidity
and have ready access to funds for our day-to-day business The company has made a dramatic shift in capital management.
operations. At Duke Energy and Duke Capital, we currently have Some of my top priorities include the continuing evaluation of the
a total unused capacity of $2.3 billion in credit facilities and letters portfolio from a strategic perspective, ensuring strong capital
of credit. discipline across the organization and focusing on earning
appropriate returns on all our investments.
In addition, we had cash on hand at December 31st in excess of $1
billion for additional liquidity purposes and we expect to maintain My first few months on the job have been oriented toward
this level of cash throughout 2004. providing stability by naming a strong leadership team and making
key operational and financial decisions. In doing so we have
I’ll now turn the call back over to Paul for his closing remarks. streamlined the organization – eliminating the role of Chief
Administrative Officer, combining DENA and DEI into Duke
Energy Americas under Bobby Evans, and a number of smaller yet
Paul Anderson - Duke Energy Corporation - Chairman, CEO
significant actions.
Before we take your questions let me review the company’s A few weeks ago, I laid out the high-level goals for Duke Energy
achievements in 2003. First, we were successful in selling non- and next week we will provide you with more detail on our
strategic assets for more than $2 billion in gross proceeds. medium-term expectations for each of our businesses.
Let me assure you that the entire management team is focused on
Our capex for the year totaled less than $2.8 billion. This is a $400 improving the results you see from Duke Energy and providing
million reduction from our original forecast of $3.2 billion. superior long-term value for our investors.
5
6. PREPARED REMARKS AND Q&A
Q4 2003 Duke Energy Earnings Conference Call January 29, 2004
And let me remind you that my entire compensation is based on David Hauser - Duke Energy Corporation - Inteirm CFO,
Duke stock that cannot be sold before 2007. As such, I am totally Senior VP
aligned with other long-term investors.
Yes. We have talked in the past about low risk gross margin, and
With that, let me open the lines for your questions. we've said it's $300 million to slightly over $300 million for 2004,
and that's still where we would expect it to be, Kit.
QUESTION AND ANSWER Of course, the drop from this year is because we have less hedges
at somewhat lower prices.
Kit Konolige - Morgan Stanley
Operator
I noticed that you have higher production in '05 than '04, now. In
Thank you. The question and answer session will be conducted
fact, my recollection was that it used to be pretty flat. Are you
electronically. If you would like to ask a question, please press star
seeing some different expectations now?
one at this time. If you are using a speakerphone, please make sure
your mute function is turned off to allow your signal to reach our
equipment. David Hauser - Duke Energy Corporation - Interim CFO,
Senior VP
Once again, it is star one if you do have a question. We'll take our
first question from Kit Konoliqe with Morgan Stanley.
In '05, we've actually reduced our estimated production some. We
took out the southeast plants, and we took out the deferred plants
Kit Konolige - Morgan Stanley in '05.
Good morning. Thanks for all the detail. Wanted to ask a little bit Greg Ebel - Duke Energy Corporation - VP-Investor and
about DENA. Shareholder Relations
The implication, I think it was you David, overall in your
It's Greg Ebel. The estimated production in the third quarter that
discussion as I understand it was that the fourth quarter net of the
we've told you for '04 was about 30 million megawatt hours. Now
special charges and so on should start to reflect kind of what can
we're at about 20 million megawatt hours. So it has come down.
be expected on an ongoing basis.
Kit Konolige - Morgan Stanley
So what I wanted to ask was, first of all, the $74 million negative
EBIT at DENA, how does that vary quarterly going forward, and
can you give us an idea -- you talked about the $600 million in low I see. Finally, just separate area, can you discuss -- it looked like
risk gross margin in '03. What would the comparable number be the tax rate overall in the fourth quarter -- and obviously, there's a
now for '04? lot of things washing back and forth -- was I think we calculated
about 24%.
Paul Anderson - Duke Energy Corporation - Chairman, CEO
Is there going forward, you know, should we assume a kind of
normal corporate tax rate?
This is Paul. First of all, I guess one of the things that we're going
to get out of doing is making a bunch of forecasts and then
David Hauser - Duke Energy Corporation - Interim CFO,
spending all of our time talking about the numbers. We have told
Senior VP
the market that we expect DENA to lose as a base case $300
million.
Yes. Of course the tax rate when you have positive earnings from
So, that's sort of our total guidance at this point in time. I'll let some international operations and then the big losses that we
David comment on the low risk gross margin. record, the tax rate calculation gets fairly meaningless on a
consolidated basis.
But if you look going forward, if you looked at the statutory rate of
federal US about 35% and a couple percent per state, you'd be on
track.
6
7. PREPARED REMARKS AND Q&A
Q4 2003 Duke Energy Earnings Conference Call January 29, 2004
I think the second point is basically, the model that we have, that
Kit Konolige - Morgan Stanley
we use, indicates that you are always a little bit shorter gas than
you are your power that you have sold.
Very good. Thank you.
We've used that model consistently. We have been through in
Operator recent times several pretty big movements, both in all directions on
prices, and you will note that we've never had any big hits.
And moving on, we'll take our next question from Dan Eggers
So our model continues to prove out, and work pretty well.
with Credit Suisse First Boston.
Dan Eggers - Credit Suisse First Boston
Dan Eggers - Credit Suisse First Boston
Okay. I guess the other question is, you guys are talking in excess
Good morning.
of $200 million of cost savings in '04 over '03.
David Hauser - Duke Energy Corporation - Interim CFO,
Can you give a little more color on where all those pieces are
Senior VP
coming? I know some is from O&M. But maybe a little more
clarity there.
Good morning, Dan.
Fred Fowler - Duke Energy Corporation - President, COO
Dan Eggers - Credit Suisse First Boston
The really big driver, if you look at it since September of '02, we
Not to belabor DENA too much, but just from a strategic have reduced 4,000 people in this company.
standpoint, you are talking about 80% hedged on the gas side of
that business. It's the accumulation you get off of not only just, you know, the
salaries and benefits of the employees, but employees, you know,
As you approach, I guess, the company in a more maybe there's other costs that go along with them that start going away.
conservative manner, is that hedging position going to go up, and
are you planning on locking in those positions in the near future, I Computers start disappearing as the leases roll off. Office space
guess? that you had as leases roll off goes away. So you start seeing the
cumulative affect.
Paul Anderson - Duke Energy Corporation - Chairman, CEO
And that's really -- that along with procurement-type savings is the
major drivers.
I'm going to turn that over to Fred, because we get that question a
lot. And I think the answer is pretty straightforward. But I'd like
him to give it. Dan Eggers - Credit Suisse First Boston
Okay. Thanks, guys.
Fred Fowler - Duke Energy Corporation - President, COO
Yes, just to clarify, what David said was in excess of 80%. Operator
And moving on, we'll take our next question from Andrew Davis
David Hauser - Duke Energy Corporation - Interim CFO,
of Harvard Management.
Senior VP
Yes. Andrew Davis - Harvard Manangement
Good morning. I'm wondering if you could comment on the recent
Fred Fowler - Duke Energy Corporation - President, COO
Moody's release which said quot;management has reiterated its
commitment to maintaining investment grade credit rating at Duke
Okay? That's the first point.
Capital. Based on revised metric projections, we anticipate that the
parent will need to contribute additional support in 2004quot;.
7
8. PREPARED REMARKS AND Q&A
Q4 2003 Duke Energy Earnings Conference Call January 29, 2004
That runs contrary to what you said in the last conference call. I Fred Fowler - Duke Energy Corporation - President, COO
just wondered if you could comment on early support – needed
support, where that kicks in.
A little below 13%. Okay.
David Hauser - Duke Energy Corporation - Interim CFO,
Jessica Rutledge - Lazard Asset Management
Senior VP
And are those levels where you feel that it is a sustainable
Well, we're in good communications with both Moody's and S&P
projection looking forward, where you just basically sit on those
and have met with them and reviewed all our plans with them.
return numbers?
No decision has been made about whether any movement of cash
Fred Fowler - Duke Energy Corporation - President, COO
from Duke Energy to Duke Capital will need to occur in '04. I
think that depends on the timing of all the cash flows in '04.
Yeah, I think we're pretty comfortable with those.
But keep in mind as you look at '04, that the vast majority of the
debt that comes due in '04 is not until the last quarter of the year. That's the allowed number in South Carolina, by the way.
So we don't anticipate having to move any cash from Duke Energy
Jessica Rutledge - Lazard Asset Management
to Duke Capital, but we'll assess as the year goes and make the
right decisions.
Okay. Excellent.
Andrew Davis - Harvard Manangement And also just to follow-up up on Kit's question at the beginning,
what was the full year tax rate underlying your operating numbers
Thanks. for this year?
Operator David Hauser - Duke Energy Corporation - Interim CFO,
Senior VP
And moving on, we'll take our next question from Jessica
Rutledge of Lazard Asset Management. Well, the simple way to look at that is the statutory US tax rate is
about 37%. And to the degree things have happened different than
37%, it's because of one-time events.
Jessica Rutledge - Lazard Asset Management
And so for modeling purposes, you really ought to use a rate of
I am hoping to follow-up on your comments about Franchised
about 37%.
Electric back at the beginning of your presentation, where you
talked about the earnings number being consistent with both the
Jessica Rutledge - Lazard Asset Management
rate base and the allowed returns in North and South Carolina.
What are the realized returns at the utility today, and where does So it's fair to assume in the ongoing earnings numbers that you
your rate base stand? gave us, you assumed a statutory rate of about 37% and everything
else went below the line to the extraordinaries?
Fred Fowler - Duke Energy Corporation - President, COO
David Hauser - Duke Energy Corporation - Interim CFO,
Senior VP
Our realized returns in South Carolina are at 12 ¼%. Our realized
returns in North Carolina are slightly above 13%. Anybody in the
room know the exact number? Well, I'm with you on up to the 37%, but I don't know about the
part below the line.
David Hauser - Duke Energy Corporation - Interim CFO,
Senior VP Jessica Rutledge - Lazard Asset Management
At the end of the year, they will be a little below 13%. Okay, I'm sorry, I think I'm being imprecise from an accounting
standpoint.
8
9. PREPARED REMARKS AND Q&A
Q4 2003 Duke Energy Earnings Conference Call January 29, 2004
Maureen Howell - RBC Capital Markets
In our GAAP reconciliations, when you talk about the ongoing
earnings number, you are using a statutory tax rate to come up with Okay, but that's still -- we're still missing something, right?
it. Because. you know, as I said, that the -- you also have the
discontinued $880 million which kind of offsets the $900 million,
right?
David Hauser - Duke Energy Corporation - Interim CFO,
Senior VP
David Hauser - Duke Energy Corporation - Interim CFO,
Senior VP
Yes.
Let me see --
Jessica Rutledge - Lazard Asset Management
Maureen Howell - RBC Capital Markets
Okay. Thank you.
I'm assuming the $880 million is not in the $22 billion. I'm
David Hauser - Duke Energy Corporation - Interim CFO,
assuming that's what that note means?
Senior VP
Okay. David Hauser - Duke Energy Corporation - Interim CFO,
Senior VP
Operator
That is correct. Let me clarify one other thing on the $22 billion.
The $22.465 billion did not include the trust preferreds last year.
And next we'll go to Maureen Howell with RBC Capital Markets.
Maureen Howell - RBC Capital Markets
Maureen Howell - RBC Capital Markets
No. I understand that -- oh, okay. Okay.
Thanks very much. You talk about the debt reduction of $2.2
billion. And I'm just wondering, I realize there's been a re-
David Hauser - Duke Energy Corporation - Interim CFO,
classification of the preferred securities of about $900 million.
Senior VP
But also, that's basically offset by the classification discontinued of
about $880 million, I guess associated with the Australia assets. So I think that may be the difference that you're not picking up.
when I look at the balance sheet, we really only see a reduction in
debt of $500 million.
Maureen Howell - RBC Capital Markets
And in fact, the debt to capital number, you know, increases. Part
So in the 2002 number shown here, the trust preferreds are not in
of that, I guess, would be, you know, foreign exchange translation.
there.
But I'm wondering if you could just reconcile how we go from the
$22.5 billion to the $21 billion -- or almost $22 billion, I guess. David Hauser - Duke Energy Corporation - Interim CFO,
Senior VP
David Hauser - Duke Energy Corporation - Interim CFO,
That's right. Because when the accounting change occurred, you
Senior VP
changed it prospectively.
Okay. The difference between the $22.465 billion and the $21.952
But on that particular change, you did not have to change it
billion that we showed on the quarterly highlights is because of the
retroactively.
$1 billion due to the FX translation and $1 billion due to the re-
classification of the trust preferreds.
Maureen Howell - RBC Capital Markets
But the Australia numbers have been taken out in both years?
9
10. PREPARED REMARKS AND Q&A
Q4 2003 Duke Energy Earnings Conference Call January 29, 2004
We had lower sales due to unfavorable weather of about $70
David Hauser - Duke Energy Corporation - Interim CFO,
million. We had the South Carolina rate reduction of $30 million.
Senior VP
We had a little bit lower industrial sales of about $13 million.
Yes, that is correct. [The Australian debt that was reclassified in
And then those were offset by higher bulk power marketing sales
2003 is included in the 2002 debt numbers as the reclassification as
of $112 million, and higher residential and commercial customer
debt held for sale is not a retrospective change. Additionally, it is
sales of about $38 million.
reflected as a reduction in total debt when comparing 2002 to
2003.]
Jay Yannello - UBS
Maureen Howell - RBC Capital Markets
Okay. Thank you.
Okay. Yeah, that explains that.
And the second question, can we have the Crescent property sales
number for the fourth quarter this year and the fourth quarter last
If I could just get a clarification on a previous clarification. In the
year?
$1.28, the tax -- if we had the tax number, the tax calculated would
be 37%?
David Hauser - Duke Energy Corporation - Interim CFO,
Senior VP
David Hauser - Duke Energy Corporation - Interim CFO,
Senior VP
We don't provide that information quarterly, I don't think
normally.
Yes. It's not exactly 37%, because there are a few permanent
differences.
Jay Yannello - UBS
But if you're looking at Duke's tax rate, 37% is a good number.
Okay. Thank you.
Maureen Howell - RBC Capital Markets
Operator
Okay. That's great. Thank you very much.
And moving on, we'll take our next question from Michael
Goldenberg with Luminus Management.
Operator
And next we'll go to Jay Yannello with UBS. Michael Goldenberg - Luminus Management
Good morning, guys.
Jay Yannello - UBS
Good morning. If we could look at slide six, the delta in Franchise David Hauser - Duke Energy Corporation - Interim CFO,
Electric ongoing segment EBIT was, I think, roughly $144 million. Senior VP
You gave us a little flavor on that. Could we have a little more Good morning.
dollar value, what was weather, what was lower off-system sales,
what was the clean air expenditures, and what was other year over
Paul Anderson - Duke Energy Corporation - Chairman, CEO
year. If you have those comparison,s that would be good. Because
$144 million is a pretty big number.
Good morning, Michael. You're a little weak.
Fred Fowler - Duke Energy Corporation - President, COO
Michael Goldenberg - Luminus Management
Yes. Starting off you've got higher D&A of $137 million, about
Is it better now?
$115 million of that is the clean air amortization.
Paul Anderson - Duke Energy Corporation - Chairman, CEO
10
11. PREPARED REMARKS AND Q&A
Q4 2003 Duke Energy Earnings Conference Call January 29, 2004
Oh, it's much better, thank you. Okay. Just one final question on the debt maturities, $4.8 billion.
There's obviously a big chunk of the mandatory converts
The other portion, have you guys identified what specifically you
Michael Goldenberg - Luminus Management can re-pay? Because I'm not sure I'm getting that number with
current maturities. So maybe you will be buying back some stuff
Could you explain the $222 million number in other EBIT? earlier.
Maybe you could break it out for us if at all possible. Just wondering if you guys have identified what particular you can
pay off early.
David Hauser - Duke Energy Corporation - Interim CFO,
Senior VP David Hauser - Duke Energy Corporation - Interim CFO,
Senior VP
All right. Let me make sure I'm with you. What slide are you
looking at? Well, we certainly have a list of that. But as I said, it is all of the
economically callable debt.
Michael Goldenberg - Luminus Management
And the big pieces of that would be the trust preferred securities
and a project financing we have with one of the banks that's about
Slide four, ongoing segment of EBIT of quot;otherquot; of $222 million.
a billion dollars, as well as one set of retail notes that becomes
callable.
David Hauser - Duke Energy Corporation - Interim CFO,
Senior VP
Michael Goldenberg - Luminus Management
The biggest part of that, just the lion's share of that is corporate
Okay. But all of these have actually been identified?
governance. We don't allocate corporate governance back to the
business units. So that's the way you ought to look at that.
David Hauser - Duke Energy Corporation - Interim CFO,
Senior VP
Michael Goldenberg - Luminus Management
Yes.
So what percentage of the $200 million plus is corporate O&M?
You can look in our supplemental information, and you can see
what is callable. If you look at the supplemental filing we did at
David Hauser - Duke Energy Corporation - Interim CFO,
the end of last year that would tell you what the callable debt is.
Senior VP
It's the vast majority. Michael Goldenberg - Luminus Management
Great. Thank you very much, guys.
Michael Goldenberg - Luminus Management
Okay. And on the Franchise Electric, if I back out the one-time David Hauser - Duke Energy Corporation - Interim CFO,
items and I use the $1.5 billion EBIT versus $1.4 billion, what is Senior VP
the ROE we're looking at then -- or approximate ROE we'd be
getting if we used the $1.5 billion, versus the $1.4 billion reported?
Okay.
David Hauser - Duke Energy Corporation - Interim CFO,
Operator
Senior VP
And we'll take our next question from Leslie Rich of Bank of
We haven't calculated that. Fred provided the returns based on the
America.
reported EBIT.
Leslie Rich - Bank of America
Michael Goldenberg - Luminus Management
11
12. PREPARED REMARKS AND Q&A
Q4 2003 Duke Energy Earnings Conference Call January 29, 2004
Wen-Wen Chen – ABN Amro
Yeah, I wondered if you could clarify the goodwill on the balance
sheet.
Okay. But definitely it's an '04 event?
During 2003, you impaired $250 million or so of goodwill, yet the
goodwill balance increased. And I just wondered what that Paul Anderson - Duke Energy Corporation - Chairman, CEO
goodwill is mostly attributable to? Is it all Westcoast or is there
some other pieces in there? Certainly our goal and both Fred Fowler’s and Jim Mogg’s
bonuses are based on accomplishing those in 2004.
David Hauser - Duke Energy Corporation - Interim CFO,
Senior VP Wen-Wen Chen – ABN Amro
I think the big movement you're seeing in goodwill that you're Okay. Thanks a lot.
talking about relates to FX, because you have to move goodwill
with FX as the currency changes.
Operator
And that applies to Canada as the big driver there. It is Westcoast.
And moving on, we'll take our next question from Brian Chin of
Smith Barney.
Leslie Rich - Bank of America
Brian Chin - Smith Barney
Okay. And then just to clarify in terms of cost savings, the $200
million, is that incremental 2004 over 2003, or that's sort of
Hi. If we could just circle back to the rate-based question on
cumulative since you began your cost initiative?
Franchised Electric, what the rate base is as of the end?
Fred Fowler - Duke Energy Corporation - President, COO
Paul Anderson - Duke Energy Corporation - Chairman, CEO
No, that's incremental 2004 over 2003.
What's the question?
Leslie Rich - Bank of America
Brian Chin - Smith Barney
Great. Thank you.
The question was what was the rate base for Franchised Electric,
if you could just kind of center us in terms of the end of the year.
Operator
David Hauser - Duke Energy Corporation - Interim CFO,
And moving on, we'll take our next question from Wen-Wen Chen
Senior VP
of ABN Amro
That number is -- of course it moves around a little bit, but it's
Wen-Wen Chen – ABN Amro
between $8 billion and $9 billion.
Good morning.
Brian Chin - Smith Barney
Most of my questions have been answered, but I was wondering if
Thank you.
you could comment on timing of any announcement of the sale of
the southeast plants?
Operator
Paul Anderson - Duke Energy Corporation - Chairman, CEO
And moving on, we'll take our next question from Jason West of
Deutsche Bank.
We will announce them just as soon as we have a disclosable
event.
Jason West - Deutsche Bank
12
13. PREPARED REMARKS AND Q&A
Q4 2003 Duke Energy Earnings Conference Call January 29, 2004
And we'll take our next question from Ollie Auga with Burnham
Hi. A couple of questions. Securities.
One, if we wanted to calculate just the net income from Franchised
Ollie Auga - Burnham Securities
Electric, could we do that by taking the EBIT and then subtracting
all the interest expense associated with the DUK debt, you know,
Thank you.
Duke Energy only debt, and then, you know, put a tax rate on that?
I mean, is that a proper way to calculate net income for the utility?
First question, the gas that you have hedged '04 through '06, could
you give us a sense of what price that's been hedged at? You gave
David Hauser - Duke Energy Corporation - Interim CFO, us the power side, but could you also give us the gas side?
Senior VP
Fred Fowler - Duke Energy Corporation - President, COO
That would come pretty close. I think you'd have to make some
AFUDC adjustments that wouldn't be reflected in EBIT. But other
No. That's information that we don't disclose.
than that, that would bring you pretty close.
I guess my advice would be wait until we file the Duke Energy and Ollie Auga - Burnham Securities
Duke Capital 10K's and go look at the differences.
Okay. Fair enough.
Jason West - Deutsche Bank
Separate question. Could you tell us how much of an impact was
the Brazilian currency -- strengthening of the currency -- in the
Okay.
fourth quarter to the international results?
And then the other thing, I know this has come up a couple of
times already on the call, but just trying to get the number that you David Hauser - Duke Energy Corporation - Interim CFO,
guys use for the tax rate in '03 in doing your operating numbers. Senior VP
And I know the forward looking is obviously more important, but
looking sort of '03 actuals is also important, I believe.
In Brazil, we have the investment, and then we have substantial
debt in Brazil, around $400 million of debt in Brazil. And that debt
And I was just wondering what you guys use there.
is in Brazilian Real.
David Hauser - Duke Energy Corporation - Interim CFO, So the movement of currency in Brazil is not a very important
Senior VP factor for us. So the currency in the fourth quarter in Brazil was not
significant to earnings at all.
I guess I'm not clear how to answer the question, other than what I
have answered. Ali Aga - Burnham Securities
We use the statutory federal tax rate, and then there are some items
Okay. And finally, just wanted to clarify another point. When you
such as amortization of ITC and some ESOP dividend distributions
gave us your DENA production numbers, '04 through '06, you've
that are some permanent differences that impact that. And then of
taken out the southeast and deferred plants.
course, the fact that you have some losses and some foreign
earnings impact it.
Specifically as it relates to the southeast, are you including those in
your outlook for '04, or should we expect that they will be
But again, I would be focused on using about a 37% rate going
discontinued at an early stage this year?
forward.
Paul Anderson - Duke Energy Corporation - Chairman, CEO
Jason West - Deutsche Bank
They become discontinued operations at the time we actually have
All right. Thanks a lot.
a sales contract on them.
Operator
Operator
13
14. PREPARED REMARKS AND Q&A
Q4 2003 Duke Energy Earnings Conference Call January 29, 2004
And moving on, we'll take our next question from Vic Khaitan $1.20 per share for the bonus target. Beyond that, we are not
with Deutsche Asset Management. planning to provide guidance in any great detail.
Next week, we'll be giving some outlooks for individual operations
for the medium term. But I don't intend to say, you know, earnings
Vic Khaitan - Deutsche Asset Management will be in a range of X to Y and then spend the rest of the year
refining that and defending penny movements off that.
Thank you. Yes. One follow-up question on this southeast asset
sales.
Vic Khaitan - Deutsche Asset Management
While intention is to do it as soon as possible, but given the FERCs
No. I understand that, Paul.
recent issue about looking at these asset sales to utilities or where
there may be some competitive issues, so do you see that could be
But given your long-term commitment of the share value, you
somewhat of a challenge, or do you think that you have sufficient
probably have an idea about what this company can potentially do,
by as to make that thing work?
so that's what we are trying to understand, what are the potential
there?
Fred Fowler - Duke Energy Corporation - President, COO
Paul Anderson - Duke Energy Corporation - Chairman, CEO
I think there's no doubt that will complicate it. Some of the logical
buyers are incumbent utilities, there is no doubt about it.
Sure. Well, we've said that our goal is for income and modest
growth.
And it looks to be -- it's our feeling that it's going to make that a
more difficult transaction to get closed. So we'll have to see.
And, you know, to start defining it precisely, it would just get
ourselves in that trap where you get stampeded into putting out
But to me it makes it probably more -- it's probably more probable
numbers and defending them. You know, modest growth is
that we'll be looking probably at financial buyers as opposed to
probably in the 4% to 6% range. So, you know, that's what we're
incumbent utilities, until we start getting a better feel for what this
looking at.
order really means.
As a base going forward, obviously we're going to be trying to
Vic Khaitan - Deutsche Asset Management improve on that. But I don't want to start defining all kinds of
forecasts out there and then, you know, spending our life defending
So does that mean that the asset sale could be slowed, or you think them.
that you can still accomplish it within your time period?
Vic Khaitan - Deutsche Asset Management
Fred Fowler - Duke Energy Corporation - President, COO
I understand the challenge. Thank you so much.
Yes, I don't think it will necessarily slow it down. I think it will
just provide a smaller potential buyer base.
Paul Anderson - Duke Energy Corporation - Chairman, CEO
Vic Khaitan - Deutsche Asset Management Thank you.
And the other thing which I'm not sure whether you provided
Operator
today or not, but the earnings potential for this company, I mean,
do you have a long-term view as well as a short-term view?
And we'll take our next question from Devin Geoghegan with
Zimmer Lucas Partners.
So is that something which you'll discuss later on or are you
willing to discuss today also?
Devin Geoghegan - Zimmer Lucas Partners
Paul Anderson - Duke Energy Corporation - Chairman, CEO
Hi. Just one question.
Well, what we've said at our call on the 7th is that we've set the
target for management incentive purposes at $1.20 for the target --
14
15. PREPARED REMARKS AND Q&A
Q4 2003 Duke Energy Earnings Conference Call January 29, 2004
Next week will you guys give EBIT guidance by segments? You Steve Fleishman - Merrill Lynch
typically have not given it for other, but you've given it for the four
major segments.
Okay. Thank you.
Paul Anderson - Duke Energy Corporation - Chairman, CEO
Operator
What item?
And that concludes today's question-and-answer session. Mr.
Ebel, I'll turn the conference back over to you for any additional or
closing remarks.
Devin Geoghegan - Zimmer Lucas Partners
EBIT guidance by segment. Greg Ebel - Duke Energy Corporation - VP-Investor and
Shareholder Relations
Paul Anderson - Duke Energy Corporation - Chairman, CEO
Thanks, Paula. Just to say thank you to all of you for your time
today. And of course, the team is ready to take your questions
No. I mean, we'll give guidance as to, are things going to get
throughout the day and help you through the numbers.
better or worse.
Thank you very much, and we'll see many of you next week in
But as far as saying -- other than the one number we have given
New York.
you, which is for DENA, the $300 million loss. But we'll just give
sort of trend indications. But we're not going to try to put numbers
out there. Operator
And that does conclude today's conference. We do thank you for
Devin Geoghegan - Zimmer Lucas Partners
your participation. At this time, you may now disconnect.
Okay. So that makes sense.
Thank you very much.
Operator
And we'll take our final question today from Steve Fleishman with
Merrill Lynch.
Steve Fleishman - Merrill Lynch
Yeah, hi, good morning. I'm not sure if you have this number, but
in 2003, the DENA business -- is it possible to provide any sense
of what the southeast plants did in 2003?
Or if you can't specifically do that, some sense of the, you know,
loss of $75 million of EBIT roughly, how the different regions may
have performed with that?
David Hauser - Duke Energy Corporation - Interim CFO,
Senior VP
At this point, we have elected not to give regional information for
DENA. So I don't think we're going to start down that path right
now, Steve.
15