-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, PLkv+3dsq2kPQVfVpXGqeTTjRaYiXknQqmGW8hTjtJU9UAFy+qXRG0DXQq5n2IkT 6RNQ8zhv9mvFeOVEXQvG1A== 0000357261-99-000011.txt : 19990129 0000357261-99-000011.hdr.sgml : 19990129 ACCESSION NUMBER: 0000357261-99-000011 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19990125 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 19990128 FILER: COMPANY DATA: COMPANY CONFORMED NAME: FLORIDA PROGRESS CORP CENTRAL INDEX KEY: 0000357261 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC SERVICES [4911] IRS NUMBER: 592147112 STATE OF INCORPORATION: FL FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 001-08349 FILM NUMBER: 99515303 BUSINESS ADDRESS: STREET 1: ONE PROGRESS PLZ STREET 2: SUITE 2600 CITY: ST PETERSBURG STATE: FL ZIP: 33701 BUSINESS PHONE: 8138246400 MAIL ADDRESS: STREET 1: ONE PROGRESS PLZ STREET 2: SUITE 2600 CITY: ST PETERSBURG STATE: FL ZIP: 33701 FILER: COMPANY DATA: COMPANY CONFORMED NAME: FLORIDA POWER CORP / CENTRAL INDEX KEY: 0000037637 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC SERVICES [4911] IRS NUMBER: 590247770 STATE OF INCORPORATION: FL FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 001-03274 FILM NUMBER: 99515304 BUSINESS ADDRESS: STREET 1: 3201 34TH ST SOUTH STREET 2: ONE PROGRESS PLAZA CITY: ST PETERSBURG STATE: FL ZIP: 33701 BUSINESS PHONE: 8138665151 8-K 1 FLORIDA PROGRESS/FLORIDA POWER 1/25/99 FORM 8-K As filed with the Securities and Exchange Commission on January 28, 1999 SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 --------------------- FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): January 25, 1999
Exact name of Registrant as Commission specified in its charter, address State of I.R.S. Employer File No. of principal executive offices, telephone Incorporation Identification No. 1-8349 FLORIDA PROGRESS CORPORATION Florida 59-2147112 One Progress Plaza St. Petersburg, Florida 33701 Telephone (727) 824-6400 1-3274 FLORIDA POWER CORPORATION Florida 59-0247770 One Progress Plaza St. Petersburg, Florida 33701 Telephone (727) 866-5151
The address of neither registrant has changed since the last report. This combined Form 8-K represents separate filings by Florida Progress Corporation and Florida Power Corporation. Information contained herein relating to an individual registrant is filed by that registrant on its own behalf. Florida Power makes no representations as to the information relating to Florida Progress' diversified operations. Item 5. Other Events In light of ongoing securities offerings by Florida Progress Corporation ("Florida Progress") and its subsidiaries, including Florida Power Corporation ("Florida Power") and Progress Capital Holdings, Inc., the following information is being presented pending distribution of the combined Florida Progress and Florida Power Annual Report on Form 10-K for the year ended December 31, 1998: Florida Progress issued an Investor News report dated January 25, 1999, and a related News Release of even date therewith, regarding 1998 earnings. Copies of the Investor News report and News Release are being filed herewith as Exhibits 99.(a) and 99.(b) respectively. Item 7. Financial Statements and Exhibits (c) Exhibits: Exhibit Number (by reference to Item 601 of Regulation S-K) Description of Exhibit 99.(a) Florida Progress Investor News report dated January 25, 1999 regarding 1998 earnings. 99.(b) Florida Progress News Release dated January 25, 1999 regarding 1998 earnings. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, each registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. The signature of the undersigned on behalf of each listed company shall be deemed to relate only to matters having reference to such company. FLORIDA PROGRESS CORPORATION FLORIDA POWER CORPORATION /s/Pamela A. Saari By:____________________________ Pamela A. Saari Treasurer of each Registrant Date: January 25, 1999 EXHIBIT INDEX Exhibit No. Description of Exhibit 99.(a) Florida Progress Investor News report dated January 25, 1999 regarding 1998 earnings. 99.(b) Florida Progress News Release dated January 25, 1999 regarding 1998 earnings. EX-99.(A) 2 EX-99.(A) TO FLORIDA PROGRESS/POWER FORM 8-K EXHIBIT 99.(a) Florida Progress Corporation Investor News [LOGO OMITTED] Analyst Contacts: Gre Beuris (727) 820-5734 Lauran Willoughby (727) 820-5737 Florida Progress' 1998 Earnings Increase 10.7% over 1997 St. Petersburg, Florida, January 25, 1999 - Florida Progress Corporation (NYSE:FPC), parent of St. Petersburg-based Florida Power Corporation, reported 1998 earnings of $281.7 million, or $2.90 per share, compared with 1997 earnings from recurring operations of $254.3 million, or $2.62 per share. The strong growth in earnings reflected growth in the utility's core Florida market, double-digit earnings growth at Electric Fuels and high demand for electricity due to warmer-than-normal weather in 1998. Listed below are significant highlights for the year: FLORIDA POWER CORPORATION o Earnings per share up 3.2 percent over 1997 o Record sales - Solid customer growth of 2 percent, strong usage growth and hotter-than-normal weather boosted total kilowatt-hour sales 11.9 percent over 1997, setting a new annual kilowatt-hour sales record for Florida Power. o Regulatory asset amortization - Strengthened the balance sheet through $21 million of accelerated amortization of regulatory assets. o Accelerated expenditures to enhance reliability - Accelerated $17 million of 1999 expenditures to enhance the reliability of the generation fleet and the transmission and distribution systems. o Revenue deferral - Deferred $10 million of revenue for either future accelerated regulatory asset amortization or other regulatory initiatives, as approved by the state regulator. o Restart of the nuclear unit - On February 15, 1998, the Crystal River Nuclear Plant was returned to service. Since its restart, the plant has delivered over 100 percent of its rated capacity. ELECTRIC FUELS CORPORATION o Earnings per share up 33 percent over 1997 o $200 million in acquisitions at Progress Rail - During 1998, Electric Fuels' Rail Services group completed approximately $200 million in acquisitions. o Addition of 200 new barges - Electric Fuels' Inland Marine Transportation group put into service approximately 200 new barges in 1998, bringing its total barge fleet to 1,100. -- more -- FLORIDA POWER CORPORATION Florida Power, the largest subsidiary of Florida Progress, reported earnings of $248.6 million, or $2.56 per share for 1998, an increase of 3.2 percent over 1997 earnings from recurring operations of $240.9 million, or $2.48 per share. A reconciliation of Florida Power's 1998 earnings is as follows: 1997 EPS from recurring operations $2.48 Customer & non-weather usage growth 0.28 Estimated weather impact on sales 0.25 Operations & maintenance Accelerated reliability spending (0.11) Accelerated lump-sum pay increase (0.04) Write-off of obsolete inventory (0.03) Ongoing operations and maintenance (0.13) (0.31) ------ Depreciation & amortization (0.08) Nuclear replacement fuel (0.03) Revenue deferral (0.06) AFUDC, interest expense & other 0.03 ------ 1998 EPS $2.56 ===== Florida Power's 1998 kilowatt-hour sales increased 11.9 percent over 1997. Retail kilowatt-hour sales were up 8.4 percent for the year. Strong customer growth of 2 percent (26,000 new customers) and increased usage growth boosted retail kilowatt-hour sales in 1998. In addition, Florida Power benefited from hotter-than-normal weather experienced throughout most of the year. Wholesale kilowatt-hour sales increased 57.2 percent in 1998. Most of the increase was due to higher sales in the short-term energy market and higher sales to Florida Power's largest wholesale customer. The short-term energy sales have a minimal impact on Florida Power's earnings because the benefit of the sales is credited to customers. Florida Power's strong revenues enabled the company to take several actions to better position itself for the future. These were (in millions): Accelerated amortization of regulatory assets $21 Accelerated 1999 expenditures to enhance reliability $17 Accelerated 1999 lump-sum pay increase $ 7 Revenue deferral $10 Ongoing operations and maintenance expenses increased approximately $21 million compared with 1997. The company absorbed the increased costs associated with its growing customer base and a full year of costs for the 220-megawatt Tiger Bay plant acquired in July 1997. Depreciation and amortization expense increased $21 million in 1998 due to higher plant balances and a full year of amortization of the Tiger Bay purchased power contract termination costs (Tiger Bay regulatory asset). -- more -- ELECTRIC FUELS CORPORATION Electric Fuels earned $42.3 million, or $.44 per share, in 1998, compared with $32.1 million, or $.33 per share in 1997. The 33-percent increase in earnings per share reflected improved operating results across all three of its business units. Earnings from the Inland Marine Transportation group were up $4.4 million over 1997. The improvement was due primarily to the expansion of its barge fleet. In addition, 1997's results were negatively impacted due to flooding conditions along the Ohio and Mississippi rivers in March 1997. The Energy and Related Services group reported a $3.6 million improvement in earnings from a year ago. The additional earnings from this group were principally due to increased offshore barge deliveries of coal to Florida Power, improved earnings from mining operations, and expanded terminal operations. Results in the Rail Services group increased $2.6 million over 1997, although negatively impacted by substantial declines in scrap steel prices during the second half of 1998. Increase in demand for railcar and track parts and services, sales of railcars from the lease portfolio and increases resulting from a full year of businesses acquired in 1997 more than offset the effects of lower scrap steel prices. Results for 1998 demonstrated the benefits of the diversified yet complementary mix of products and services that Rail Services delivers to its customers. CORPORATE AND OTHER The loss attributable to corporate and other diversified activities for the year improved by $.09 per share over 1997. The improvement primarily resulted from a one-time gain realized in 1998 from the sale of a purchased power contract and the provision for an uncollectible receivable in the fourth quarter of 1997, both associated with a cogeneration facility in which Florida Progress has an indirect minority interest. Including the charges associated with the 1997 extended outage of Florida Power Corporation's Crystal River Nuclear Plant and the provision for loss related to Mid-Continent Life Insurance Company, Florida Progress reported 1997 earnings of $54.3 million, or $.56 per share. FOURTH QUARTER For the quarter, Florida Progress reported earnings of $36.1 million, or $.37 per share, compared with $43.2 million, or $.45 per share, from recurring operations in 1997. Florida Power's earnings per share of $.27 were $.17 per share lower than 1997. Strong year-to-date results through September and favorable revenues in the fourth quarter enabled the utility to take several actions including the acceleration of certain reliability expenditures and others as previously discussed. In addition, the utility wrote off inventory deemed obsolete. Electric Fuels reported $.13 per share for the quarter, up $.02 over 1997. FLORIDA POWER CORPORATION Florida Power's kilowatt-hour sales were up 8.8 percent during the fourth quarter of 1998, compared with 1997. The higher sales were due to customer growth, non-weather usage growth and warmer-than-normal weather during much of the quarter. -- more -- A reconciliation of Florida Power's 1998 fourth-quarter earnings is as follows: 1997 4QTR EPS from recurring operations $0.44 Customer & non-weather usage growth 0.07 Estimated weather impact on sales (0.04) Operations & maintenance Accelerated reliability spending (0.10) Accelerated lump-sum pay increase (0.04) Obsolete inventory (0.03) Ongoing operations & maintenance (0.09) (0.26) ------ Depreciation & amortization 0.09 Revenue deferral (0.06) AFUDC, interest expense & other 0.03 ------ 1998 4QTR EPS $0.27 ===== The estimated weather impact on sales would have been favorable absent an $8 million increase to revenues in the fourth quarter of 1997. The adjustment was made to recognize additional base revenues for residential revenue decoupling, a three-year rate experiment which expired December 31, 1997. Operations and maintenance expenses increased $41 million over the same quarter last year. The increase was due primarily to the same items discussed for 1998, accelerated reliability expenditures, accelerated lump-sum pay increase and the write-off of obsolete inventory. Depreciation and amortization declined $12 million in the fourth quarter of 1998, compared with 1997. The decrease was due to a $20 million write-off of the Tiger Bay regulatory asset in the fourth quarter of 1997. Excluding the 1997 write-off, depreciation expense increased due to higher plant balances. ELECTRIC FUELS CORPORATION Electric Fuels' earnings increased $2.5 million, or $.02 per share, for the fourth quarter of 1998, compared with 1997. The improvement in earnings was due primarily to a larger barge fleet in the Inland Marine Transportation group and favorable results in the Energy and Related Services group's terminal operations. Also contributing was the Rail Services group with strong demand for railcar and track parts and services and sales of railcars. CORPORATE AND OTHER Corporate and other recorded a loss of $.03 per share for the fourth quarter of 1998, compared with a $.10 per share loss in 1997. The improvement over the prior year was largely due to charges that were recognized in the fourth quarter of 1997. The charges were for the provision for an uncollectible receivable associated with the cogeneration facility, as discussed previously, and consolidated tax adjustments. Including the charges related to the 1997 extended nuclear outage and the provision for loss related to Mid-Continent Life Insurance Company, Florida Progress reported a loss of $75.6 million or $.78 per share, for the fourth quarter of 1997. Florida Progress (NYSE:FPC) is a Fortune 500 diversified utility holding company with assets of $6.2 billion. Its principal subsidiary is Florida Power, the state's second largest electric utility serving about 1.3 million customers. Diversified operations include rail services, marine operations and coal mining. ###
FLORIDA PROGRESS CORPORATION CONSOLIDATED STATEMENTS OF INCOME Page 5 (UNAUDITED) (In millions, except per share amounts) Three Months Ended Twelve Months Ended December 31 December 31 ------------------------- ------------------------- 1998 1997 1998 1997 ------------ ------------ ------------ ------------ REVENUES: Electric utility $ 623.6 $ 590.5 $ 2,648.2 $ 2,448.4 Diversified 274.6 258.6 972.1 868.0 - ------------------------------------------------------------------------------------------------------------------------- 898.2 849.1 3,620.3 3,316.4 - ------------------------------------------------------------------------------------------------------------------------- EXPENSES: Electric utility: Fuel 161.7 114.9 595.7 458.1 Purchased power 101.7 112.9 433.8 490.6 Energy conservation cost 19.5 17.7 79.6 67.0 Operations and maintenance 144.7 103.7 471.6 422.3 Extended nuclear outage - O&M and replacement power costs - 42.4 5.1 173.3 Depreciation and amortization 86.2 98.6 347.1 325.9 Taxes other than income taxes 45.2 43.7 203.6 193.6 - ------------------------------------------------------------------------------------------------------------------------- 559.0 533.9 2,136.5 2,130.8 - ------------------------------------------------------------------------------------------------------------------------- Diversified: Cost of sales 239.6 226.0 827.2 753.9 Loss related to life insurance subsidiary - 96.3 - 97.6 Other 13.3 18.1 56.3 60.4 - ------------------------------------------------------------------------------------------------------------------------- 252.9 340.4 883.5 911.9 - ------------------------------------------------------------------------------------------------------------------------- INCOME FROM OPERATIONS 86.3 (25.2) 600.3 273.7 - ------------------------------------------------------------------------------------------------------------------------- INTEREST EXPENSE AND OTHER: Interest expense 45.9 46.3 187.1 158.7 Allowance for funds used during construction (4.5) (2.8) (16.9) (9.7) Other expense (income) (3.2) 4.6 (.2) 4.0 - ------------------------------------------------------------------------------------------------------------------------- 38.2 48.1 170.0 153.0 - ------------------------------------------------------------------------------------------------------------------------- INCOME BEFORE INCOME TAXES 48.1 (73.3) 430.3 120.7 Income taxes 12.0 2.3 148.6 66.4 - ------------------------------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------------------------------- NET INCOME $ 36.1 $ (75.6) $ 281.7 $ 54.3 - ------------------------------------------------------------------------------------------------------------------------- AVERAGE SHARES OF COMMON STOCK OUTSTANDING 97.1 97.1 97.1 97.1 - ------------------------------------------------------------------------------------------------------------------------- EARNINGS (LOSS) PER AVERAGE COMMON SHARE (BASIC and DILUTED) $.37 $(.78) $2.90 $.56 - ------------------------------------------------------------------------------------------------------------------------- Regarding these financial statements: In June 1998, Florida Power restated its financial results for the second, third and fourth quarters of 1997 to reflect recognition of the extended nuclear outage costs as incurred. The change affected the financial results for the interim reporting periods but did not have any affect on the results for the fiscal year ended 1997. Effective December 31, 1997, the Company deconsolidated the accounts of Mid-Continent Life Insurance Company and established a provision for loss for the full amount of its investment. The deconsolidation has not been reflected in the consolidated financial statements of prior periods. These are interim statements. Reference should be made to Florida Progress Corporation's 1997 Annual Report to shareholders. This report does not constitute an offer to sell or the solicitation of an offer to buy any securities.
FLORIDA PROGRESS CORPORATION CONSOLIDATED BALANCE SHEETS Page 6 (UNAUDITED) (In millions) December 31 -------------------------------- ASSETS 1998 1997 ------------ ------------- PROPERTY, PLANT AND EQUIPMENT: Electric utility plant in service and held for future use $ 6,307.8 $ 6,166.8 Less - Accumulated depreciation 2,716.0 2,511.0 Accumulated decommissioning for nuclear plant 254.8 223.7 Accumulated dismantlement for fossil plants 130.7 128.5 - ---------------------------------------------------------------------------------------------------------------------- 3,206.3 3,303.6 Construction work in progress 378.3 279.4 Nuclear fuel, net of amortization of $377.2 in 1998 and $356.7 in 1997 45.9 66.5 - ---------------------------------------------------------------------------------------------------------------------- Net electric utility plant 3,630.5 3,649.5 Other property, net of depreciation of $234.6 in 1998 and $219.3 in 1997 560.1 437.7 ---------------------------------------------------------------------------------------------------------------------- 4,190.6 4,087.2 - ---------------------------------------------------------------------------------------------------------------------- CURRENT ASSETS: Cash and equivalents 2.5 3.1 Accounts receivable, net 413.4 373.7 Inventories, primarily at average cost: Fuel 69.8 77.6 Utility materials and supplies 83.3 91.9 Diversified materials 137.0 126.8 Underrecovered utility fuel cost - 34.5 Income taxes receivable 23.4 16.8 Deferred income taxes 55.9 5.8 Other 68.8 45.1 - ---------------------------------------------------------------------------------------------------------------------- 854.1 775.3 - ---------------------------------------------------------------------------------------------------------------------- DEFERRED CHARGES AND OTHER ASSETS: Costs deferred pursuant to regulation: Deferred purchased power contract termination costs 321.0 348.2 Other 113.6 126.4 Investments in nuclear plant decommissioning fund 332.1 266.7 Goodwill 139.8 55.2 Joint ventures and partnerships 71.5 54.6 Other 138.1 46.4 - ---------------------------------------------------------------------------------------------------------------------- 1,116.1 897.5 - ---------------------------------------------------------------------------------------------------------------------- $ 6,160.8 $ 5,760.0 - ---------------------------------------------------------------------------------------------------------------------- CAPITAL AND LIABILITIES CAPITAL: Common stock equity $ 1,862.0 $ 1,776.0 Cumulative preferred stock of Florida Power 33.5 33.5 Long-term debt 2,250.4 2,377.8 - ---------------------------------------------------------------------------------------------------------------------- 4,145.9 4,187.3 - ---------------------------------------------------------------------------------------------------------------------- CURRENT LIABILITIES: Accounts payable 297.9 253.2 Customers' deposits 104.1 97.1 Accrued other taxes 10.1 12.0 Accrued interest 70.4 56.8 Overrecovered utility fuel cost 22.2 - Other 85.8 74.8 - ---------------------------------------------------------------------------------------------------------------------- 590.5 493.9 Notes payable 236.2 214.8 Current portion of long-term debt 145.9 15.2 - ---------------------------------------------------------------------------------------------------------------------- 972.6 723.9 - ---------------------------------------------------------------------------------------------------------------------- DEFERRED CREDITS AND OTHER LIABILITIES: Deferred income taxes 595.4 471.2 Unamortized investment tax credits 77.8 85.7 Other postretirement benefit costs 116.1 107.4 Other 253.0 184.5 - ---------------------------------------------------------------------------------------------------------------------- 1,042.3 848.8 - ---------------------------------------------------------------------------------------------------------------------- $ 6,160.8 $ 5,760.0 - ----------------------------------------------------------------------------------------------------------------------
Florida Progress Corporation Page 7 Selected Financial Information (Unaudited) Three Months Ended Percent Twelve Months Ended December 31 Positive December 31 Percent 1998 1997 (Negative) 1998 1997 Positive ----------- ----------- --------- ------------ ----------- ----------- Earnings (Loss) Per Share: Florida Power Corporation $.27 $.44 (38.6) $2.56 $2.48 3.2 ----------- ----------- ------------ ----------- Electric Fuels Corporation .13 .11 18.2 .44 .33 33.3 Corporate and other (.03) (.10) 70.0 (.10) (.19) 47.4 ----------- ----------- ------------ ----------- Diversified Continuing before non-recurring .10 .01 900.0 .34 .14 142.9 ----------- ----------- ------------ ----------- Continuing Ops before non-recurring .37 .45 (17.8) 2.90 2.62 10.7 Impact of nuclear outage - (.27) - - (1.10) - Loss related to life insurance subsidiary - (.96) - - (.96) - ----------- ----------- ------------ ----------- Total $.37 ($.78) 147.4 $2.90 $.56 417.9 =========== =========== ============ =========== Avg. shares outstanding (millions) 97.1 97.1 - 97.1 97.1 - Dividends per share $.535 $.525 1.9 $2.14 $2.10 1.9 Book value per share: Florida Power Corporation $18.70 $18.21 2.7 Consolidated $19.13 $18.30 4.5
December 31 December 31 December 31 1998 1997 1998 1997 Amount Percent Amount Percent ----------- ----------- --------------------------------------------- Equity investments (percent): Capitalization (in millions): Florida Power Corporation 89 90 Common stock $1,862.0 41.1 $1,776.0 40.2 Electric Fuels Corporation 11 10 Preferred stock 33.5 .7 33.5 .8 ----------- ----------- Total 100 100 Long-term debt 2,250.4 49.7 2,377.8 53.8 ----------- ----------- Short-term debt 382.1 8.5 230.0 5.2 ----------------------------------------------- Total $4,528.0 100.0 $4,417.3 100.0 ----------------------------------------------- Note:In June 1998, Florida Power restated its financial results for the second, third and fourth quarters of 1997 to reflect recognition of the extended nuclear outage costs as incurred. The change affected the financial results for the interim reporting periods but did not have any affect on results for the fiscal year ended 1997.
Florida Power Corporation Page 8 Selected Statistical Data (Unaudited) (In millions, except billing degree days) Three Months Ended Twelve Months Ended December 31 Percent December 31 Percent 1998 1997 Change 1998 1997 Change ----------- ------------ ---------- ------------------------ --------- Revenues: Residential (1) $335.4 $321.0 4.5 $1,424.6 $1,315.0 8.3 Commercial 157.1 142.1 10.6 608.9 568.4 7.1 Industrial 55.9 49.9 12.0 214.4 207.9 3.1 Other retail sales 38.2 34.6 10.4 142.3 133.4 6.7 ----------- ------------ ------------------------ 586.6 547.6 7.1 2,390.2 2,224.7 7.4 Sales for resale 50.8 45.6 11.4 205.8 150.7 36.6 ----------- ------------ ------------------------ 637.4 593.2 7.5 2,596.0 2,375.4 9.3 Other electric revenues (2) (20.4) 0.6 - 67.0 76.3 (12.2) Deferred fuel (3) 6.6 (3.3) - (14.8) (3.3) - ----------- ------------ ------------------------ Total $623.6 $590.5 5.6 $2,648.2 $2,448.4 8.2 ----------- ------------ ------------------------ Kilowatt-hour sales billed: Residential 3,850.7 3,618.4 6.4 16,526.3 15,079.8 9.6 Commercial 2,589.8 2,342.3 10.6 9,999.3 9,257.3 8.0 Industrial 1,143.0 1,005.3 13.7 4,375.4 4,187.8 4.5 Other retail sales 665.1 608.4 9.3 2,485.6 2,325.4 6.9 ----------- ------------ ------------------------ 8,248.6 7,574.4 8.9 33,386.6 30,850.3 8.2 Sales for resale 1,085.4 900.2 20.6 3,864.5 2,439.6 58.4 ----------- ------------ ------------------------ Total electric sales 9,334.0 8,474.6 10.1 37,251.1 33,289.9 11.9 ----------- ------------ ------------------------ System Requirements (KWH) 8,570 7,933 8.0 37,763 34,605 9.1 KWH Sales (Billed & Unbilled): Retail 7,713 7,124 8.3 33,451 30,865 8.4 Wholesale 772 677 14.0 3,823 2,432 57.2 =========== ============ ======================== 8,485 7,801 8.8 37,274 33,297 11.9 =========== ============ ======================== Billing Degree Days: Cooling 862 719 19.9 4,159 3,434 21.1 Heating 25 134 (81.3) 557 443 25.7 Note: (1) From 1995 through 1997, Florida Power, as ordered by state regulators, conducted a three-year test of residential revenue decoupling. Under the plan, abnormal weather variances did not impact earnings with respect to residential revenues. (2) In the 4th quarter of 1998, the FPSC approved the establishment of a regulatory liability for 1998 deferred earnings, which resulted in a $10 million charge to Other electric revenues. Total revenues include billed revenues and unbilled revenues that are accrued for accounting purposes. (3) Revenues include amounts resulting from fuel, purchased power, and energy conservation clauses; which are designed to permit full recovery of these costs. - -------------------------------------------------------------------------------------------------------------------------
EX-99.(B) 3 EX-99.(B) TO FLORIDA PROGRESS/POWER FORM 8-K EX-99.(b) Florida Progress Corporation News Release Corporate Relations Department, St. Petersburg, Florida FOR IMMEDIATE RELEASE CONTACT: MELANIE FORBRICK 727/820-5023 Florida Progress' 1998 Earnings Increase 10.7% over 1997 St. Petersburg, FL...January 25, 1999...Florida Progress Corporation (NYSE:FPC), parent of St. Petersburg-based Florida Power Corporation, reported 1998 earnings of $281.7 million, or $2.90 per share. This compares with 1997 earnings from recurring operations of $254.3 million, or $2.62 per share. The increase in earnings was a result of strong growth in the utility's core Florida market, high demand for electricity due to warmer-than-normal weather in 1998, and double-digit earnings growth at Electric Fuels. "We're very pleased with our 1998 earnings results," said Chairman and CEO Richard Korpan. "These results were driven by the outstanding performance of Florida Power's utility business, and by substantial growth at Electric Fuels. And the strength of our operating results at Florida Power permitted us to make investments designed to improve reliability and service for our customers." Listed below are significant highlights for the year: o Florida Power's earnings per share up 3.2 percent over 1997 o Electric Fuels' earnings per share up 33 percent over 1997 o Strong sales for Florida Power- Solid customer growth of two percent, strong usage growth of approximately two percent, and hotter-than-normal weather boosted total kilowatt-hour sales 11.9 percent over 1997. o Reliability enhancements for Florida Power customers - Accelerated $17 million of 1999 expenditures to enhance the reliability of the generation fleet and the transmission and distribution systems. o Restart of Florida Power's nuclear plant - On February 15, 1998, the Crystal River Nuclear Plant was returned to service. Since its restart, the plant has delivered over 100 percent of its rated capacity. - more - Florida Progress Corporation 1998 Earnings Page 2 FLORIDA POWER CORPORATION Florida Power, the largest subsidiary of Florida Progress, reported earnings of $248.6 million, or $2.56 per share, for 1998 -- an increase of 3.2 percent over 1997 earnings from recurring operations of $240.9 million, or $2.48 per share. Florida Power's 1998 kilowatt-hour sales increased 11.9 percent over 1997. Retail kilowatt-hour sales were up 8.4 percent for the year. Strong customer growth of two percent (26,000 new customers) and increased usage growth boosted retail kilowatt-hour sales in 1998. In addition, Florida Power benefited from the hotter-than-normal weather throughout most of the year. The extremely hot weather during 1998 enabled the company to accelerate $17 million of expenditures from 1999 into the fourth quarter of 1998 for reliability projects that will enhance customer service. In addition, Florida Power deferred $10 million of revenues for either future accelerated regulatory asset amortization or other regulatory initiatives that would benefit customers. This deferral was approved by the Florida Public Service Commission. ELECTRIC FUELS CORPORATION Electric Fuels earned $42.3 million, or $.44 per share, in 1998. This compares with $32.1 million, or $.33 per share, in 1997. The 33-percent increase in earnings per share reflects improved results across all three of its business units, including an expanded barge fleet, increased coal deliveries and an increased demand for railcar and track parts and services. FOURTH QUARTER For the fourth quarter of 1998, Florida Progress reported earnings of $36.1 million, or $.37 per share. This compares with $43.2 million, or $.45 per share, from recurring operations in the fourth quarter of 1997. Florida Power earned $26.3 million, or $.27 per share, compared with $42.4 million, or $.44 per share, for the same period in 1997. Electric Fuels reported earnings of $13 million, or $.13 per share, for the quarter, compared with 1997 fourth-quarter earnings of $10.5 million, or $.11 per share. Strong year-to-date results through September and favorable revenues in the fourth quarter enabled the utility to take several actions including the acceleration of $17 million of reliability expenditures as previously discussed, which reduced 1998 fourth-quarter earnings compared with 1997's fourth-quarter results before non-recurring items. - more - Florida Progress Corporation 1998 Earnings Page 3 1997 Adjusted Results Including the charges associated with the 1997 extended outage of Florida Power Corporation's Crystal River Nuclear Plant and the provision for loss related to Mid-Continent Life Insurance Company, Florida Progress reported 1997 earnings of $54.3 million, or $.56 per share, and a fourth-quarter loss of $75.6 million, or $.78 per share. Florida Progress (NYSE:FPC) is a FORTUNE 500 diversified utility holding company with assets of $6.2 billion. Its principal subsidiary is Florida Power, one of the nation's leading electric utilities serving 1.3 million customers in central and northern Florida. Diversified operations include rail services, marine operations and coal mining. ###
Three Months Ended Twelve Months Ended December 31 December 31 (in millions) (in millions) ----------------------------- ------------------------------ 1998 1997 1998 1997 ------------- ------------- -------------- ------------- Revenues $898.2 $849.1 $3,620.3 $3,316.4 ------------- ------------- -------------- ------------- Income from continuing operations before non-recurring items 36.1 43.2 281.7 254.3 Non-recurring items - (118.8) - (200.0) ------------- ------------- -------------- ------------- Net income $36.1 ($75.6) $281.7 $54.3 ============= ============= ============== ============= Earnings (loss) per share (EPS): Income from continuing operations before non-recurring items $.37 $.45 $2.90 $2.62 Non-recurring items - (1.23) - (2.06) ------------- ------------- -------------- ------------- Consolidated $.37 ($.78) $2.90 $.56 ============= ============= ============== ============= Average Common Shares Outstanding 97,122,637 97,061,777 97,068,047 97,054,280
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