CenterPoint Energy 2008 Annual Report Download - page 56

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Item 6. Selected Financial Data
The following table presents selected financial data with respect to our consolidated financial condition and
consolidated results of operations and should be read in conjunction with our consolidated financial statements and
the related notes in Item 8 of this report.
Year Ended December 31,
2004(1)
2005(2)
2006
2007
2008
(In millions, except per share amounts)
Revenues ................................................................................................
$ 7,999
$ 9,722
$ 9,319
$ 9,623
$ 11,322
Income from continuing operations before extraordinary item ................................
205
225
432
399
447
Discontinued operations, net of tax ................................................................
(133)
(3)
—
—
—
Extraordinary item, net of tax ................................................................
(977)
30
—
—
—
Net income (loss) ................................................................................................
$ (905)
$ 252
$ 432
$ 399
$ 447
Basic earnings (loss) per common share:
Income from continuing operations before extraordinary item ................................
$ 0.67
$ 0.72
$ 1.39
$ 1.25
$ 1.33
Discontinued operations, net of tax ................................................................
(0.43)
(0.01)
—
—
—
Extraordinary item, net of tax................................................................
(3.18)
0.10
—
—
—
Basic earnings (loss) per common share ................................................................
$ (2.94)
$ 0.81
$ 1.39
$ 1.25
$ 1.33
Diluted earnings (loss) per common share:
Income from continuing operations before extraordinary item ................................
$ 0.61
$ 0.67
$ 1.33
$ 1.17
$ 1.30
Discontinued operations, net of tax ................................................................
(0.37)
(0.01)
—
—
—
Extraordinary item, net of tax................................................................
(2.72)
0.09
—
—
—
Diluted earnings (loss) per common share ................................................................
$ (2.48)
$ 0.75
$ 1.33
$ 1.17
$ 1.30
Cash dividends paid per common share................................................................
$ 0.40
$ 0.40
$ 0.60
$ 0.68
$ 0.73
Dividend payout ratio from continuing operations ................................
60%
56%
43%
54%
55%
Return from continuing operations on average common equity ................................
14.4%
18.7%
30.3%
23.7%
23.2%
Ratio of earnings from continuing operations to fixed charges ................................
1.43
1.51
1.77
1.86
2.09
At year-end:
Book value per common share ................................................................
$ 3.59
$ 4.18
$ 4.96
$ 5.61
$ 5.89
Market price per common share ................................................................
11.30
12.85
16.58
17.13
12.62
Market price as a percent of book value ................................................................
315%
307%
334%
305%
214%
Assets of discontinued operations ................................................................
$ 1,565
$ —
$ —
$ —
$ —
Total assets ................................................................................................
18,096
17,116
17,633
17,872
19,676
Short-term borrowings (3) ................................................................
—
—
187
232
153
Transition bonds, including current maturities ................................
676
2,480
2,407
2,260
2,589
Other long-term debt, including current maturities ................................
8,353
6,427
6,593
7,419
7,925
Capitalization:
Common stock equity ................................................................................................
11%
13%
15%
16%
16%
Long-term debt, including current maturities ................................
89%
87%
85%
84%
84%
Capitalization, excluding transition bonds:
Common stock equity ................................................................................................
12%
17%
19%
20%
20%
Long-term debt, excluding transition bonds, including
current maturities ................................................................................................
88%
83%
81%
80%
80%
Capital expenditures, excluding discontinued operations ................................
$ 530
$ 719
$ 1,121
$ 1,011
$ 1,053
__________
(1) Net income for 2004 includes an after-tax extraordinary loss of $977 million ($3.18 and $2.72 loss per basic
and diluted share, respectively) based on our analysis of the Public Utility Commission of Texas’ (Texas
Utility Commission) order in the 2004 True-Up Proceeding. Additionally, we recorded as discontinued
operations a net after-tax loss of approximately $133 million ($0.43 and $0.37 loss per basic and diluted share,
respectively) in 2004 related to our interest in Texas Genco.
(2) Net income for 2005 includes an after-tax extraordinary gain of $30 million ($0.10 and $0.09 per basic and
diluted share, respectively) recorded in the first quarter reflecting an adjustment to the extraordinary loss
recorded in the last half of 2004 to write down generation-related regulatory assets as a result of the final
orders issued by the Texas Utility Commission.
(3) Under the terms of the receivables facilities in place since October 2006, the provisions for sale accounting
under Statement of Financial Accounting Standards No. 140, ―Accounting for Transfers and Servicing of
Financial Assets and Extinguishments of Liabilities,‖ have not been met. Accordingly, advances received upon
the sale of receivables are accounted for as short-term borrowings as of December 31, 2006, 2007 and 2008.
As of December 31, 2008, short-term borrowings included a $75 million inventory financing obligation related
to an asset management agreement. For more information regarding this transaction, see Note 8(a).