Entergy 2003 Annual Report Download - page 10

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Entergy’s commitment to financial strength and flexibility
can be seen in the improvement in financial metrics since
Entergy adopted a “back to basics” strategy in 1998.
Operational earnings have grown at an
average rate of nearly 14 percent per
year. The balance sheet has been
strengthened, and we project more
than $3 billion of cash to be available
through the end of 2006 for new
investments, debt/equity repayments,
and/or dividend increases.
Entergy has built financial strength and
flexibility to support a growing dividend and to make
break-out growth investments when they become
available. We have set the stage for continued
strong performance driven by intrinsic growth,
intensified productivity improvements, and
the asset acquisition opportunities that
Entergy positioned itself to capture.
On Dec. 17, 1914, the Arkansas Light
and Power Company began
providing electricity to
Malvern and Arkadelphia,
with two 550-kilowatt
generators at a lumber mill
and 22 miles of transmission
lines. At the same time,
several related folk music
styles – including blues,
gospel, marching bands, and
ragtime – were blending into
“jazz.” In the year of Scott
Joplin’s last ragtime song,
WC Handy published “St. Louis
Blues,” perhaps the most
popular song of its era.
he focus of this annual report –
and of our entire company – is
performance. We will detail and
assess Entergy’s performance in 2003. But
first, we’re proud to report that Entergy has
been honored for its performance with two
of
the most prestigious awards in our industry
. At
the Platts/BusinessWeek Global Energy Awards
in December 2003, Entergy was named the
Global Energy Company of the Year and Wayne
Leonard was recognized as the CEO of the Year.
Maintaining Financial Growth
In July 2003, Entergy’s Board of Directors
raised the dividend 29 percent to $1.80 per
share on an annual basis. The higher dividend
is based on Entergy’s strong earnings growth
and cash generation over the past five years.
Between 1998 and 2003, as-reported earnings
have grown at an average rate of 6 percent per
year. Operational earnings – which exclude
special items that are included in as-reported
earnings in accordance with generally accepted
accounting principles – have grown at an
average annual rate of nearly 14 percent over
the five-year period. Special items are those
events that are not routine, are related to prior
periods, or are related to discontinued business.
T
Entergy Corporation –
Award-Winning Performance
ENTERGY CORPORATION AND SUBSIDIARIES 2003