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Cleco Corp. (CNL) filed Quarterly Report for the period ended 2011-09-30.
Cleco Corp. has a market cap of $2.19 billion; its shares were traded at around $35.86 with a P/E ratio of 16.6 and P/S ratio of 1.8. The dividend yield of Cleco Corp. stocks is 3.1%. Cleco Corp. had an annual average earning growth of 9.7% over the past 5 years.
This is the annual revenues and earnings per share of CNL over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of CNL.
Highlight of Business Operations:
Base revenue increased $1.6 million, or 0.9%, during the third quarter of 2011 compared to the third quarter of 2010 primarily due to higher electric sales, generally resulting from favorable weather. Although cooling degree days for the quarter were slightly down, Cleco Power experienced warmer weather in August 2011 as compared to the same period last year. Cleco Power anticipates incremental base revenue over the remainder of 2011 of $1.8 million and an additional $6.8 million for 2012 associated with the completed portions of the Acadiana Load Pocket transmission project.Other operations revenue increased $2.7 million, or 21.4%, in the third quarter of 2011 compared to the third quarter of 2010 primarily due to $1.6 million of higher mineral lease payments and $1.1 million related to the gain on sales of Cleco Power s fuel oil supply.
Other operations revenue increased $7.3 million, or 22.2%, in the first nine months of 2011 compared to the first nine months of 2010 primarily due to a $3.8 million gain on sale of Cleco Power s fuel oil supply, $2.7 million of higher mineral lease payments, $0.6 million related to the absence of net unfavorable results relating to economic hedge transactions associated with fixed-price power that was provided to a wholesale customer, and $0.3 million of higher customer fees.
Operating revenue decreased $7.8 million, or 32.4%, during the first nine months of 2011 compared to the first nine months of 2010, largely as a result of lower tolling revenue resulting from the Evangeline restructuring and pricing of the Evangeline 2010 Tolling Agreement. Affiliate revenue decreased $0.9 million, or 95.1%, in the first nine months of 2011 compared to the first nine months of 2010 primarily due to a decrease in services provided by Generation Services employees who were transferred to Cleco Power during 2010 as a result of Cleco Power s acquisition of Acadia Unit 1.
In August 2011, Cleco Power entered into a treasury rate lock contract in order to mitigate the interest rate exposure on coupon payments related to a forecasted debt issuance. The notional amount of the treasury rate lock is $150.0 million, with a pricing date of November 14, 2011, or the date of issuance of the debt, whichever is earlier. The treasury rate lock meets the criteria of a cash flow hedge under the authoritative guidance as it relates to derivatives and hedging. The 3.77% rate lock was based on the 30-year treasury note yield as of August 12, 2011. At September 30, 2011, the 30-year treasury note yield was 2.89%, which resulted in Cleco Power recognizing a $30.0 million unrealized mark-to-market loss in other comprehensive income for the three and nine months ended September 30, 2011. The offsetting liability was recorded on Cleco and Cleco Power s Condensed Consolidated Balance Sheets as an interest rate risk management liability. There was no impact to earnings due to ineffectiveness for the three and nine months ended September 30, 2011. At September 30, 2011, this derivative qualified as a cash flow hedge because management determined that the interest payments related to the forecasted debt instrument were probable of occurring and the hedge was highly effective. Events could occur subsequent to September 30, 2011, that could cause the interest payments related to the forecasted debt issuance not to occur, the debt issuance to occur for an amount less than $150.0 million, or to result in ineffectiveness in the hedging relationship. If the interest payments related to the forecasted debt issuance do not occur, the debt issuance occurs for an amount less than $150.0 million, or results in ineffectiveness, then all, or a portion of the then current mark-to-market loss, or gain, is required to be reclassified from accumulated other comprehensive income to earnings. For more information about the treasury rate lock contract, see Item 1, “Notes to the Unaudited Condensed Consolidated Financial Statements — Note 1 — Summary of Significant Accounting Policies” and “Note 4 — Fair Value Accounting — Treasury Rate Lock.”
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