(Source: PRNewswire-FirstCall)
ATLANTA, May 8 /PRNewswire-FirstCall/ -- Mirant Corporation today reported income from continuing operations for the first quarter of 2009 of $380 million compared to a loss from continuing operations of $154 million for the same period in 2008. Results for 2009 include unrealized gains, principally on hedges, of $254 million compared to unrealized losses of $303 million for 2008. Per share results from continuing operations for the first quarter of 2009 were $2.62 per share, compared to a loss of $0.71 per share from continuing operations for the first quarter of 2008.
Net Income (Loss) to Adjusted Income from Continuing Operations and Adjusted EBITDA --------------- -------------- Quarter Ending Quarter Ending (in millions except per share) March 31, 2009 March 31, 2008 --------------- -------------- Per Share (1) Per Share (1) ----------- ----------- Net income (loss) $380 $2.62 $(152) $(0.70) Income from discontinued operations - - 2 0.01 ---- ---- ---- ---- Income (loss) from continuing operations 380 2.62 (154) (0.71) Unrealized losses (gains) (254) (1.75) 303 1.40 Lower of cost or market inventory adjustments, net (12) (0.08) - - Other 1 - 9 0.04 Adjustment to GAAP EPS for dilution - (0.07) ---- ---- ---- ----- Adjusted income from continuing operations $115 $0.79 $158 $0.66 ===== ===== Provision for income taxes 8 - Interest expense, net 36 20 Depreciation and amortization 36 33 --- --- Adjusted EBITDA $195 $211 ==== ==== (1) Per share amounts for 2009 are based on diluted weighted average shares outstanding of 145 million. Per share amounts for 2008 are based on basic weighted average shares outstanding of 216 million, for all amounts except adjusted income from continuing operations which is based on diluted weighted average shares outstanding of 238 million.
Mirant reported adjusted income from continuing operations of $115 million for the first quarter of 2009, or diluted earnings per share of $0.79, compared to adjusted income from continuing operations of $158 million for the same period of 2008, or diluted earnings per share of $0.66. Adjusted income from continuing operations excludes unrealized gains and losses and other non-recurring items. The quarter over quarter change resulted principally from lower realized gross margin and higher net interest expense.
Adjusted EBITDA from continuing operations for the first quarter of 2009 was $195 million, compared to adjusted EBITDA from continuing operations of $211 million for the first quarter of 2008. The change in adjusted EBITDA resulted principally from lower energy gross margins in the Mid-Atlantic region primarily because of compressed dark spreads, partially offset by higher realized value of hedges.
Net cash provided by operating activities of continuing operations for the first quarter of 2009 was $267 million compared to net cash provided by operating activities of continuing operations of $249 million for the same period in 2008.
As of March 31, 2009, the company had cash and cash equivalents of $1.905 billion, of which $424 million was restricted at Mirant North America and its subsidiaries and not available for distribution to Mirant. In addition, Mirant North America is restricted from further distributions, beyond permitted interest payable by its parent, Mirant Americas Generation, primarily because of the significant capital expenditure program underway to comply with the Maryland Healthy Air Act. Mirant does not expect the restriction on distributions to have any effect on its operations.
As of March 31, 2009, the company had total outstanding debt of $2.637 billion.
Guidance
Mirant today revised its 2009 adjusted EBITDA guidance from $897 million to $873 million and revised its 2010 adjusted EBITDA guidance from $667 million to $609 million.
Senior Management Changes
Mirant today announced executive management changes that will become effective on May 31, 2009. The following executive vice presidents will retire on that date:
Robert M. Edgell - Chief Operating Officer James V. Iaco, Jr. - Chief Financial Officer S. Linn Williams - General Counsel
Mr. Iaco will be succeeded as Chief Financial Officer by J. William Holden III, who is currently Senior Vice President and Treasurer. Mr. Williams will be succeeded as General Counsel by Julia A. Houston, who currently serves as Senior Vice President, Deputy General Counsel and Corporate Secretary.
Mr. Edgell's responsibilities will be divided among the following: Anne M. Cleary - currently Senior Vice President, Administration who will become Senior Vice President, Asset Management James P. Garlick - Senior Vice President, Operations John L. O'Neal - Senior Vice President and Chief Commercial Officer
These five senior vice presidents, together with Edward R. Muller, Chairman and Chief Executive Officer, to whom each will report, will constitute the Company's executive committee.
Mirant also announced that Thomas E. Legro, Senior Vice President and Controller will retire on August 31, 2009. Angela M. Nagy, who is currently Vice President and Assistant Controller, will succeed Mr. Legro. G. Gary Garcia will succeed Mr. Holden as Treasurer, and Kevin P. Boudreaux will succeed Ms. Cleary as Vice President, Administration.
"Bob Edgell, Jim Iaco, Tom Legro and Linn Williams have provided invaluable leadership for Mirant for which I am extremely grateful," said Mr. Muller. "Among their contributions has been the conscious and careful development of their successors who are well prepared for their responsibilities."
Earnings Call
Mirant is hosting an earnings call today to discuss its first quarter 2009 financial results. The call will be held from 9-10 a.m., New York City time. The conference call can be accessed via the investor relations section of the company's website at http://www.mirant.com/ or analysts are invited to listen to the call by dialing 888 259 8552 (International 913 312 1503) and entering pass code 9341108.
