-----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, VnIoG2w8vC/7NCDIcyFUOaZSAWRpyO7GlU2T3t8xWFHR9evj90L6nwmWohUjVQmm hZwCQsr0L+ZxGy2xhtw4XA== 0000357261-97-000058.txt : 19970423 0000357261-97-000058.hdr.sgml : 19970423 ACCESSION NUMBER: 0000357261-97-000058 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 5 CONFORMED PERIOD OF REPORT: 19970415 ITEM INFORMATION: Other events ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 19970421 SROS: NYSE SROS: PSE 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: 1934 Act SEC FILE NUMBER: 001-08349 FILM NUMBER: 97584283 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: 1934 Act SEC FILE NUMBER: 001-03274 FILM NUMBER: 97584284 BUSINESS ADDRESS: STREET 1: 3201 34TH ST SOUTH CITY: ST PETERSBURG STATE: FL ZIP: 33711 BUSINESS PHONE: 8138665151 8-K 1 FLORIDA PROGRESS/FLORIDA POWER 4/15/97 FORM 8-K As filed with the Securities and Exchange Commission on April 21, 1997 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): April 15, 1997
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 (813) 824-6400 1-3274 FLORIDA POWER CORPORATION Florida 59-0247770 3201 34th Street South St. Petersburg, Florida 33711 Telephone (813) 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 Quarterly Report on Form 10-Q for the period ended March 31, 1997: Earnings. Florida Progress issued an Investor News report and a media News Release each dated April 17, 1997 reporting 1997 first quarter earnings. A copy of the Investor News report and the media News Release are being furnished herewith as Exhibit 99.(a) and 99.(b), respectively. Tiger Bay. Florida Progress issued an identically worded Investor News report and a media News Release each dated April 16, 1997 reporting a joint motion submitted to the Public Service Commission supporting the purchase of the Tiger Bay Cogen Plant. A copy of the Investor News report is being furnished herewith as Exhibit 99.(c). Mid-Continent. Florida Progress issued an identically worded Investor News report and media News Release each dated April 15, 1997 reporting the seizure of Mid-Continent Life Insurance Company by the insurance commissioner of the state of Oklahoma. A copy of the Investor News report is being furnished herewith as Exhibit 99.(d). 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 April 17, 1997 reporting 1997 first quarter earnings. 99.(b) Florida Progress media News Release dated April 17, 1997 reporting 1997 first quarter earnings. 99.(c) Florida Progress Investor News report dated April 16, 1997 reporting a joint motion submitted to the Public Service Commission supporting the purchase of the Tiger Bay Cogen Plant. 99.(d) Florida Progress Investor News report dated April 15, 1997 reporting the seizure of Mid-Continent Life Insurance Company by the insurance commissioner of the state of Oklahoma. 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. FLORIDA PROGRESS CORPORATION FLORIDA POWER CORPORATION /s/Jeffrey R. Heinicka By:____________________________ Jeffrey R. Heinicka Senior Vice President and Chief Financial Officer of each Registrant Date: April 21, 1997 EXHIBIT INDEX Exhibit No. Description of Exhibit 99.(a) Florida Progress Investor News report dated April 17, 1997 reporting 1997 first quarter earnings. 99.(b) Florida Progress media News Release dated April 17, 1997 reporting 1997 first quarter earnings. 99.(c) Florida Progress Investor News report dated April 16, 1997 reporting a joint motion submitted to the Public Service Commission supporting the purchase of the Tiger Bay Cogen Plant. 99.(d) Florida Progress Investor News report dated April 15, 1997 reporting the seizure of Mid-Continent Life Insurance Company by the insurance commissioner of the state of Oklahoma. EX-99.(A) 2 EX 99.(A) TO PROGRESS/POWER 4/15/97 FORM 8-K EXHIBIT 99.(a) Florida Progress Corporation Investor News Analyst Contacts: Mark A. Myers (813) 866-4245 Greg Beuris (813) 866-4442 [CORPORATE LOGO OMITTED] Florida Progress reports decrease in 1997 first-quarter earnings St. Petersburg, Florida, April 17, 1997 -- Florida Progress Corporation (NYSE:FPC), parent of St. Petersburg-based Florida Power Corporation, reported first quarter 1997 earnings of $42 million or $.43 per share, compared with $48.3 million or $.50 a share in the first quarter of 1996. The decrease is due to higher costs associated with the extended outage of Florida Power's Crystal River nuclear unit, planned fossil unit outages and the impact of the March floods along the Ohio and Mississippi rivers to Florida Progress' energy and transportation operations. Significant items influencing first-quarter results: o Flooding hurts non-utility earnings - Extensive flooding along the Ohio and Mississippi rivers caused damage to several river terminals owned by Electric Fuels Corporation, a Florida Progress energy and transportation subsidiary, and disrupted barge shipments. o Higher utility operating & maintenance costs - Florida Power incurred higher operating and maintenance expenses related to outage work at its nuclear unit and several of its fossil-fired plants. o Solid customer growth - Florida Power's retail customer base continued to grow by about 2 percent during the first quarter 1997, compared with the first quarter of 1996. This is approximately twice the national average for investor-owned utilities. o Mild winter weather lowers sales - The mild winter in Florida resulted in an 8.1 percent reduction in kilowatt-hour sales. The largest portion of this came from a 15.9 percent decline in residential sales. However, the impact on Florida Power's earnings was minimal because of revenue decoupling, which eliminates the impact of abnormal weather on residential revenues. Florida Power, the largest subsidiary of Florida Progress, earned $41.2 million or $.42 per share, on revenues of $553.8 million for the quarter, compared with earnings of $42.9 million, or $.44 per share, on revenues of $547.3 million for the same period in 1996. Florida Power's retail customer growth was about 2 percent for the first quarter of 1997 compared with 1996. Residential and commercial customer growth rates in the utility's Central Florida region were 3.4 percent and 3 percent, respectively. Florida Power continues to benefit from an above-average growth rate compared with the industry average. -- more -- The mild winter weather of 1997 contrasted greatly to the abnormally cold weather in 1996. Although this difference had a significant effect on kilowatt-hour sales, there was little impact on Florida Power's earnings. This is because residential revenue decoupling eliminates the earnings impact abnormal weather has on residential sales, Florida Power's largest customer group. Florida Power is in the last year of a three-year test of revenue decoupling that was ordered by the Florida Public Service Commission. Operating and maintenance expenses for Florida Power increased approximately $10 million during the first quarter of 1997 compared with 1996. The increase is due primarily to additional maintenance costs associated with the prolonged outage of the Crystal River nuclear plant and maintenance associated with certain planned outages of fossil-fueled plants. The nuclear unit was taken out of service on September 2, 1996, to repair an oil pressure problem with its main turbine. While repairs were completed in October, Florida Power kept the unit down to address certain backup safety system design issues. The unit is currently scheduled to return to service by the end of 1997. Florida Power's preferred dividends and depreciation expense were lower by about $2 million and $3 million respectively for the first quarter of 1997 compared with 1996. In the second half of 1996 Florida Power redeemed $105 million of preferred stock that has resulted in lower financing costs for the utility. Depreciation expense was higher in 1996 because the company accelerated the write-off of certain regulatory assets. Electric Fuels earned $3.3 million, or $.03 per share, in the first quarter of 1997 compared with $6.8 million, or $.07 per share, in 1996. The decrease was due primarily to the impact of flood conditions along the Ohio and Mississippi rivers. These floods, described as the worst since 1964, temporarily stopped river transportation and terminal services and continue to disrupt barge traffic along these rivers. Electric Fuels' Inland Marine group operates its fleet of over 700 barges and 20 tow boats along the Ohio and Mississippi rivers. The March floods resulted in lost revenues and reduced profit margins for the first quarter of 1997. Electric Fuels operates several docks along the Ohio, Big Sandy and Kanawha rivers, which were directly impacted by the high flood waters. Terminal services at these docks were suspended during this time, which also adversely affected the delivery of coal to the terminals. On April 14, 1997, the insurance commissioner of the state of Oklahoma received approval from the Oklahoma County District Court to temporarily seize control of the operations of Mid-Continent Life Insurance Company, a subsidiary of Florida Progress Corporation. The action taken by the insurance commissioner is known as judicial rehabilitation. Judicial rehabilitation is similar to a Chapter 11 bankruptcy, which is designed to rehabilitate a company, then return it to normal operations. -- more -- Florida Progress has previously stated that Mid-Continent is not a good long-term fit and that Florida Progress intends to rationally exit this business. Mid-Continent's earnings in 1996 were $1.9 million, which represent less than one percent of Florida Progress' consolidated earnings. In addition, the life insurance unit does not pay any dividends to Florida Progress. The company's equity investment in Mid-Continent was approximately $85 million at March 31, 1997. A hearing is set for May 14, 1997 in Oklahoma City for Mid-Continent to appear before the court to show cause why an order of rehabilitation should not be entered against the insurance company and why a receiver should not be appointed for Mid-Continent. Florida Progress and Mid-Continent expect to meet with the insurance commissioner before the court hearing date in an attempt to resolve the matter without judicial action. "Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: this news release contains forward looking statements, including those related to the restart of Florida Power's Crystal River nuclear unit by the end of 1997. These statements involve risks and uncertainties that could cause actual results or outcomes to differ materially from expectations. Key factors that have a direct impact on the company's ability to return the unit to service before the end of 1997 include successful execution of the restart plan, actions of regulatory bodies, absence of new plant modifications which extend the outage beyond 1997 and other factors described in the company's Securities and Exchange Commission filings. Florida Progress (NYSE:FPC) is a Fortune 500 diversified utility holding company with assets of $5.5 billion. Its principal subsidiary is Florida Power, the state's second-largest electric utility with about 1.3 million customers. Diversified operations include coal mining, marine operations, rail services, and life insurance. FLORIDA PROGRESS CORPORATION CONSOLIDATED STATEMENTS OF INCOME Page 4 (In millions, except per share amounts) Three Months Ended Twelve Months Ended March 31 March 31 ------------------- ------------------- (UNAUDITED) 1997 1996 1997 1996 -------- -------- -------- -------- REVENUES: Electric utility $553.8 $547.3 $2,400.1 $2,303.1 Diversified 193.7 183.1 774.9 742.1 --------- --------- --------- --------- 747.5 730.4 3,175.0 3,045.2 EXPENSES: --------- --------- --------- --------- Electric utility: Fuel 94.9 85.0 419.6 422.2 Purchased power 127.2 122.8 536.0 465.0 Energy conservation cost 11.0 19.8 53.9 81.7 Operations & maintenance 110.3 100.3 423.3 394.8 Depreciation 74.3 77.6 320.9 300.6 Taxes other than income taxes 48.1 47.2 184.5 180.5 --------- --------- --------- --------- 465.8 452.7 1,938.2 1,844.8 --------- --------- --------- --------- Diversified: Cost of sales 171.8 155.1 659.6 630.5 Provision for loss on coal properties - - 40.9 - Other 14.9 15.4 66.1 60.0 --------- --------- --------- --------- 186.7 170.5 766.6 690.5 --------- --------- --------- --------- INCOME FROM OPERATIONS 95.0 107.2 470.2 509.9 --------- --------- --------- --------- INTEREST EXPENSE AND OTHER: Interest expense 34.3 34.6 135.6 138.1 Allowance for funds used during construction (2.1) (1.7) (7.9) (6.8) Preferred dividend requirements of Florida Power 0.4 2.3 3.9 9.5 Gain on sale of business - - (44.2) - Other expense (income) 0.4 (3.4) (0.4) (10.5) --------- --------- --------- --------- 33.0 31.8 87.0 130.3 --------- --------- --------- --------- INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES 62.0 75.4 383.2 379.6 Income taxes 20.0 27.1 138.8 139.0 --------- --------- --------- --------- INCOME FROM CONTINUING OPERATIONS 42.0 48.3 244.4 240.6 DISCONTINUED OPERATIONS, NET OF INCOME TAXES - - (26.3) - --------- --------- --------- --------- NET INCOME $42.0 $48.3 $218.1 $240.6 ========= ========= ========= ========= AVERAGE SHARES OF COMMON STOCK OUTSTANDING 97.0 96.5 97.0 96.1 ========= ========= ========= ========= EARNINGS PER AVERAGE COMMON SHARE: CONTINUING OPERATIONS $0.43 $0.50 $2.52 $2.51 DISCONTINUED OPERATIONS - - ($0.27) - --------- --------- --------- --------- $0.43 $0.50 $2.25 $2.51 ========= ========= ========= ========= Regarding these financial statements: Current and prior periods reflect the recapitalization of the spin-off company, Echelon International, and its associated treatment as discontinued operations. These are interim statements. Reference should be made to Florida Progress Corporation's 1996 Annual Report to shareholders. This report does not constitute an offer to sell or solicitation of an offer to buy any securities. FLORIDA PROGRESS CORPORATION CONSOLIDATED BALANCE SHEETS Page 5 (In millions) March 31 ------------------------- (UNAUDITED) 1997 1996 ----------- ----------- ASSETS PROPERTY, PLANT AND EQUIPMENT: Electric utility plant in service and held for $5,986.5 $5,885.6 for future use Less - Accumulated depreciation 2,394.9 2,238.8 Accumulated decommissioning for nuclear plant 200.3 172.3 Accumulated dismantlement for fossil plants 123.8 108.3 ---------- ---------- 3,267.5 3,366.2 Construction work in progress 198.2 165.2 Nuclear fuel, net of amortization of $356.7 in 1997 and $350.7 in 1996 59.9 66.3 ---------- ---------- Net electric utility plant 3,525.6 3,597.7 Other property, net of depreciation of $178.1 in 1997 and $160.7 in 1996 314.3 302.9 ---------- ---------- 3,839.9 3,900.6 ---------- ---------- CURRENT ASSETS: Cash and equivalents 16.5 5.9 Accounts receivable, net 280.7 295.8 Inventories, primarily at average cost: Fuel 80.1 50.5 Utility materials and supplies 95.4 98.4 Diversified materials 137.2 123.3 Underrecovery of fuel cost 105.6 19.3 Other 48.7 42.0 ---------- ---------- 764.2 635.2 ---------- ---------- DISCONTINUED OPERATIONS: Advances to discontinued operations - 132.9 Net assets of discontinued operations - 200.0 ---------- ---------- - 332.9 ---------- ---------- OTHER ASSETS: Investments: Loans receivable, net 57.6 31.0 Marketable securities 228.2 197.3 Nuclear plant decommissioning fund 219.2 176.5 Joint ventures and partnerships 51.0 33.9 Deferred insurance policy acquisition costs 123.0 108.6 Other 179.6 165.5 ---------- ---------- 858.6 712.8 ---------- ---------- $5,462.7 $5,581.5 ========== ========== CAPITAL AND LIABILITIES CAPITAL: Common stock equity $1,912.8 $2,084.9 Cumulative preferred stock of Florida Power 33.5 138.5 Long-term debt 1,820.1 1,600.2 ---------- ---------- 3,766.4 3,823.6 ---------- ---------- CURRENT LIABILITIES: Accounts payable 189.2 153.4 Customers' deposits 94.3 87.3 Income taxes payable 37.0 39.8 Accrued other taxes 32.4 35.8 Accrued interest 39.1 46.3 Other 74.9 95.2 ---------- ---------- 466.9 457.8 Notes payable 55.9 - Current portion of long-term debt 24.9 193.7 ---------- ---------- 547.7 651.5 ---------- ---------- DEFERRED CREDITS AND OTHER LIABILITIES: Deferred income taxes 465.3 507.6 Unamortized investment tax credits 91.5 99.5 Insurance policy benefit reserves 341.3 277.8 Other postretirement benefit costs 102.0 86.2 Other 148.5 135.3 ---------- ---------- 1,148.6 1,106.4 ---------- ---------- $5,462.7 $5,581.5 ========== ========== FLORIDA PROGRESS CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS Page 6 (In millions) Three Months Ended Twelve Months Ended March 31 March 31 ------------------- ------------------- (UNAUDITED) 1997 1996 1997 1996 -------- -------- -------- -------- OPERATING ACTIVITIES: Income from continuing operations $42.0 $48.3 $244.4 $240.6 Adjustments for noncash items: Depreciation and amortization 83.2 88.0 361.9 355.4 Gain on sale of business - - (44.2) - Provision for loss on coal properties - - 40.9 - Deferred income taxes and investment tax credits, net (12.3) (6.9) (62.0) (34.0) Increase in accrued other postretirement benefit costs 2.0 1.7 15.8 14.3 Net change in deferred insurance policy acquisition costs (2.1) (2.2) (14.4) (11.4) Net change in insurance policy benefit reserves 16.0 12.8 63.5 44.5 Changes in working capital, net of effects from acquisition or sale of businesses: Accounts receivable (15.5) 11.5 8.4 (35.2) Inventories (25.0) 3.0 (38.9) (19.5) Underrecovery of fuel cost (23.0) (19.0) (86.3) (22.2) Accounts payable (4.0) (12.3) 29.9 5.4 Income taxes payable 9.4 39.0 (6.3) (2.4) Accrued other taxes 19.0 20.2 (3.5) 6.7 Other (2.2) (1.7) (14.0) 36.1 Other operating activities 1.7 11.0 (28.5) 11.4 --------- --------- --------- -------- Cash provided by continuing operations 89.2 193.4 466.7 589.7 --------- --------- --------- --------- Loss from discontinued operations - - (26.3) - Adjustments for non-cash items - (12.5) 29.9 (32.0) --------- --------- --------- --------- Cash provided by (used for) discontinued operations - (12.5) 3.6 (32.0) --------- --------- --------- --------- 89.2 180.9 470.3 557.7 --------- --------- --------- --------- INVESTING ACTIVITIES: Property additions (including allowance for borrowed funds used during construction) (94.8) (70.7) (288.1) (330.5) Purchases of loans and securities, net (including issuance of Echelon note) (4.5) (11.8) (63.1) (43.2) Proceeds from sales of properties and businesses 2.2 3.3 60.0 12.9 Acquisition of businesses - - (53.8) (9.2) Investing activities of discontinued operations - 6.7 49.8 67.4 Other investing activities (14.2) (13.3) (37.9) (24.9) --------- --------- --------- --------- (111.3) (85.8) (333.1) (327.5) --------- --------- --------- --------- FINANCING ACTIVITIES: Issuance of long-term debt - - 178.0 - Repayment of long-term debt (21.5) (1.5) (210.4) (45.7) Increase (decrease) in commercial paper with long-term support 54.6 (40.7) 80.0 (25.3) Redemption of preferred stock - - (106.4) (5.0) Sale of common stock - 9.3 9.2 38.3 Equity contribuitions to discontinued operations - - (23.7) - Dividends paid on common stock (51.0) (49.7) (200.8) (195.0) Increase in short-term debt 51.8 - 55.9 - Financing activities of discontinued operations - (10.2) 95.4 (11.5) Other financing activities (0.5) (0.7) (3.8) (1.9) --------- --------- --------- --------- 33.4 (93.5) (126.6) (246.1) --------- --------- --------- --------- NET INCREASE (DECREASE) IN CASH AND EQUIVALENTS 11.3 1.6 10.6 (15.9) Beginning cash and equivalents 5.2 4.3 5.9 21.8 --------- --------- --------- --------- ENDING CASH AND EQUIVALENTS $16.5 $5.9 $16.5 $5.9 ========= ========= ========= ========= Florida Progress Corporation Selected Financial Information (Unaudited) Page 7
Three Months Ended Percent Twelve Months Ended Percent March 31 Positive March 31 Positive 1997 1996 (Negative) 1997 1996 (Negative) --------- --------- --------- --------- --------- --------- Earnings Per Share: Florida Power Corporation $0.42 $0.44 (4.5) $2.38 $2.28 4.4 --------- --------- --------- --------- Electric Fuels Corporation 0.03 0.07 (57.1) 0.24 0.26 (7.7) Mid-Continent Life Insurance Co. - 0.01 (100.0) 0.01 0.05 (80.0) Corporate and other (0.02) (0.02) - (0.09) (0.08) (12.5) --------- --------- --------- --------- Diversified Continuing 0.01 0.06 (83.3) 0.16 0.23 (30.4) --------- --------- --------- --------- Continuing Ops before non-recurring 0.43 0.50 (14.0) 2.54 2.51 1.2 Provision for loss on coal properties - - - (0.26) - - Gain on sale of business - - - 0.24 - - --------- --------- --------- --------- Total Continuing Operations 0.43 0.50 (14.0) 2.52 2.51 0.4 Discontinued Operations - - - (0.27) - - --------- --------- --------- --------- $0.43 $0.50 (14.0) $2.25 $2.51 (10.4) ========= ========= ========= ========= Avg. shares outstanding (millions) 97.0 96.5 0.5 97.0 96.1 0.9 Dividends per share $0.525 $0.515 1.9 $2.070 $2.030 2.0 Book value per share: Florida Power Corporation $18.73 $18.22 2.8 Consolidated $19.71 $21.56 (8.6)
March 31 March 31 March 31 1997 1996 1997 1996 Amount Percent Amount Percent --------- --------- ---------- ---------- ---------- ---------- Equity investments (percent): Capitalization (in millions): Florida Power Corporation 87 87 Common stock $1,912.8 49.7 $2,084.9 51.9 Electric Fuels Corporation 9 9 Preferred stock 33.5 0.9 138.5 3.4 Mid-Continent Life Insurance Co. 4 4 Long-term debt 1,820.1 47.3 1,600.2 39.8 --------- --------- Short-term debt 80.8 2.1 193.7 4.9 Total 100 100 ---------- ---------- ---------- ---------- ========= ========= $3,847.2 100.0 $4,017.3 100.0 ========== ========== ========== ========== Note: Current and prior periods reflect the recapitalization of the spin-off company, Echelon International, and its associated treatment as discontinued operations.
Florida Power Corporation Selected Statistical Data (Unaudited) Page 8 (In millions, except billing degree days)
Three Months Ended Twelve Months Ended March 31 Percent March 31 Percent 1997 1996 Change 1997 1996 Change ------- ------- ------- ------- ------- ------- Revenues: Residential $290.7 $316.0 (8.0) $1,279.0 $1,256.3 1.8 Commercial 124.2 115.1 7.9 546.4 521.0 4.9 Industrial 51.9 47.8 8.6 210.9 194.0 8.7 Other retail sales 29.8 27.0 10.4 128.7 118.2 8.9 -------------------- -------------------- 496.6 505.9 (1.8) 2,165.0 2,089.5 3.6 Sales for resale 37.1 43.0 (13.7) 154.0 166.6 (7.6) -------------------- -------------------- 533.7 548.9 (2.8) 2,319.0 2,256.1 2.8 Other electric revenues 12.8 7.9 62.0 58.1 62.3 (6.7) Deferred fuel 7.3 (9.5) - 23.0 (15.3) - -------------------- -------------------- Total $553.8 $547.3 1.2 $2,400.1 $2,303.1 4.2 ==================== ==================== Kilowatt-hour sales billed: Residential 3,296.3 3,919.5 (15.9) 14,858.2 15,537.1 (4.4) Commercial 1,994.4 1,888.9 5.6 8,953.5 8,730.8 2.6 Industrial 1,049.9 1,000.9 4.9 4,272.7 4,004.8 6.7 Other retail sales 517.4 480.8 7.6 2,268.3 2,122.7 6.9 -------------------- -------------------- 6,858.0 7,290.1 (5.9) 30,352.7 30,395.4 (0.1) Sales for resale 531.9 752.6 (29.3) 2,487.0 3,213.4 (22.6) -------------------- -------------------- Total electric sales 7,389.9 8,042.7 (8.1) 32,839.7 33,608.8 (2.3) ==================== ==================== System Requirements (KWH) 7,520 8,230 (8.6) 34,006 34,684 (2.0) Retail KWH Sales (Billed & Unbilled) 6,787 7,218 (6.0) 30,183 30,550 (1.2) Billing Degree Days: Cooling 25 - - 3,707 3,929 (5.7) Heating 296 653 (54.7) 502 791 (36.5) Note: Total revenues include billed revenues and unbilled revenues that are accrued for accounting purposes. Statistics for total kilowatt-hour sales include only billed kilowatt-hour sales. The statistic for retail KWH sales includes both billed and unbilled sales. Beginning in 1995, Florida Power was ordered by state regulators to conduct a three-year test of residential revenue decoupling. Under the plan, abnormal weather variances will no longer impact earnings with respect to residential revenues.
EX-99.(B) 3 EX 99.(B) TO PROGRESS/POWER 4/15/97 FORM 8-K EXHIBIT 99.(b) Florida Progress Corporation News Release Corporate Relations Department, St. Petersburg, Florida Media Contact: Phil Dean -- (813) 866-5779 [CORPORATE LOGO OMITTED] Florida Progress reports decrease in first-quarter earnings ST. PETERSBURG, FL. (April 17, 1997) -- Florida Progress Corporation, the parent of St. Petersburg-based Florida Power Corporation, today reported consolidated first-quarter earnings of $42.0 million, or $.43 per share. This compared with $48.3 million, or $.50 per share for the same quarter last year. Revenues for the first quarter totaled $747.5 million, compared with $730.4 million for the first quarter of 1996. Florida Power Corporation earned $41.2 million, or $.42 per share, on revenues of $553.8 million in the first quarter. This compared with earnings of $42.9 million, or $.44 per share, on revenues of $547.3 million in the first quarter of 1996. The number of utility customers continued to grow by nearly two percent in the first quarter, which is approximately twice the national average. Increased operating and maintenance expenses for Florida Power accounted for some of the reduced earnings. These expenses were almost $10 million higher compared with the first quarter of 1996. The increase was due primarily to costs associated with the outage of the Crystal River nuclear plant and several fossil plant outages. The nuclear unit is scheduled to be out of service until year-end 1997 while modifications required by the Nuclear Regulatory Commission are made to several of the unit's backup safety systems. Lower preferred stock dividends and depreciation expense helped to offset some of these higher expenses. In 1996, Florida Power redeemed $105 million in preferred stock, which reduced preferred dividends by about $2 million. Depreciation of regulatory assets was accelerated in 1996, which lowered depreciation expense by approximately $3 million in 1997. Electric Fuels Corporation, the energy and transportation subsidiary of Florida Progress, earned $3.3 million, or $.03 per share during the first quarter. This compared with earnings of $6.8 million, or $.07 per share for the same period last year. The decrease in earnings is attributable to adverse weather and flooding along the Ohio and Mississippi rivers, which damaged company-owned terminal facilities and continues to disrupt river traffic. -more- Florida Progress Corporation (NYSE:FPC) is a Fortune 500 diversified utility holding company with assets of $5.5 billion. Its principal subsidiary, Florida Power Corporation, is the second-largest investor-owned electric utility in the state. It currently serves approximately 1.3 million customers. Its other primary subsidiary, Electric Fuels Corporation, is an energy and transportation company with interests in coal mining, marine transportation and rail services. - --------------------------------------------------------------------------------------------------------------- Three Months Ended Twelve Months Ended March 31 March 31 ------------------------------------ ---------------------------------------- 1997 1996 1997 1996 ---------------- ---------------- ------------------ -------------------- Revenues $747,500,000 $730,400,000 $3,175,000,000 $3,045,200,000 ---------------- ---------------- ------------------ ------------------- Income from continuing operations 42,000,000 48,300,000 244,400,000 240,600,000 Discontinued operations - - (26,300,000) - ---------------- ---------------- ------------------ ------------------- Net Income $ 42,000,000 $ 48,300,000 $ 218,100,000 $ 240,600,000 ================ ================ ================== =================== Earnings Per Share (EPS): Income from continuing operations $ .43 $ .50 $2.52 $2.51 Discontinued operations - - (.27) - ------ ------ ----- ----- Consolidated $ .43 $ .50 $2.25 $2.51 ====== ====== ===== ===== Average Common Shares Outstanding 97,036,161 96,500,110 96,969,645 96,052,565 - --------------------------------------------------------------------------------------------------------------- Current and prior periods reflect the recapitalization of the spin-off company, Echelon International, and its associated treatment as discontinued operations. ###
EX-99.(C) 4 EX 99.(C) TO PROGRESS/POWER 4/15/97 FORM 8-K EXHIBIT 99.(c) Florida Progress Corporation Investor News Analyst Contacts: Mark A. Myers (813) 866-4245 Greg Beuris (813)866-4442 [CORPORATE LOGO OMITTED] Florida Power Files Joint Motion with the Florida Public Service Commission for purchase of Tiger Bay Cogen Facility ST. PETERSBURG, Florida, April 16, 1997 -- Florida Progress Corporation (NYSE:FPC) announced that Florida Power Corporation, its electric subsidiary filed a joint motion with the Florida Public Service Commission (FPSC) for approval of a stipulation agreement related to the purchase of the 220-megawatt Tiger Bay cogeneration facility. The stipulation agreement is between Florida Power and two other parties, the Florida Industrial Power Users Group (FIPUG) and the Office of Public Counsel for the state of Florida. These two parties had intervened in the original petition filed with the FPSC in January. The stipulation resolves all disputed issues between Florida Power and these parties. Florida Power signed in late January a purchase agreement of $445 million with the owners of the Tiger Bay facility. The agreement includes the plant, equipment, spare parts and assigned contracts. The proposed transaction is scheduled to close in July. The purchase of the Tiger Bay facility is beneficial to Florida Power for several reasons. First, the purchase will eliminate over 20 percent of Florida Power's commitments to cogenerators. Long-term savings from this transaction are estimated to be between $2 billion and $2.4 billion for the period 2008 to 2025. In addition to the savings, the Tiger Bay facility is a new gas-fired combined cycle plant that is well engineered and located close to Florida Power's Polk County generation site. If the FPSC approves the purchase of the Tiger Bay facility, Florida Power will have mitigated the impact of over 30 percent of its current cogeneration commitments when considering other agreements Florida Power has reached to mitigate the cost of cogeneration contracts. On April 1, 1997, the FPSC approved a negotiated settlement agreement between Florida Power and Pasco Cogen, Ltd. (Pasco Cogen). This agreement resolved a dispute over pricing and allows Florida Power to buy-out the last four years and seven months of the contract. The negotiated settlement agreement is expected to result in long-term savings of $183 million. A final order from the FPSC is expected April 22, 1997. Florida Power has two other cogeneration contracts pending before the FPSC that involve buy-out proposals similar to the buy-out of the Pasco Cogen contract. These two contracts represent approximately 190 megawatts or 18 percent of Florida Power's current commitments cogenerators. Florida Progress (NYSE:FPC) is a Fortune 500 diversified utility holding company with assets of $5.3 billion. Its principal subsidiary is Florida Power, the state's second-largest electric utility with about 1.3 million customers. Diversified operations include coal mining, marine operations, rail services and life insurance. #### EX-99.(D) 5 EX 99.(D) TO PROGRESS/POWER 4/15/97 FORM 8-K EXHIBIT 99.(d) Florida Progress Corporation Investor News Analyst Contact: Mark A. Myers (813) 866-4245 Greg Beuris (813) 866-4442 [CORPORATE LOGO OMITTED] Oklahoma Insurance Commissioner Files A Petition Against Mid-Continent Life Insurance Company ST. PETERSBURG, Florida, April 15, 1997 -- Yesterday, the insurance commissioner of the state of Oklahoma received approval from the Oklahoma County District Court to temporarily seize control of the operations of Mid-Continent Life Insurance Company, a subsidiary of Florida Progress Corporation. The action taken by the insurance commissioner is known as judicial rehabilitation. Judicial rehabilitation is similar to a Chapter 11 bankruptcy, which is designed to rehabilitate a company, then return it to normal operations. Florida Progress has previously stated that Mid-Continent is not a good long-term fit and that Florida Progress intends to rationally exit this business. Jeffrey R. Heinicka, Senior Vice President and Chief Financial Officer, said "Mid-Continent's earnings in 1996 were $1.9 million, which represent less than one percent of Florida Progress' consolidated earnings. In addition, the life insurance unit does not pay any dividends to Florida Progress. The company's equity investment in Mid-Continent was approximately $85 million at March 31, 1997." The insurance commissioner's petition stated that a significant number of complaints from policyholders had been received over the prospect of Mid-Continent raising premiums. The petition also alleged that Mid-Continent's policy reserves are understated. A hearing is set for May 14, 1997 in Oklahoma City for Mid-Continent to appear before the court to show cause why an order of rehabilitation should not be entered against the insurance company and why a receiver should not be appointed for Mid-Continent. Florida Progress and Mid-Continent expect to meet with the insurance commissioner before the court hearing date in an attempt to resolve the matter without judicial action. Management of Florida Progress and Mid-Continent expressed surprise and disappointment with the sudden action taken by the insurance commissioner, particularly given the ongoing discussions between Mid-Continent and the insurance commissioner. In December 1996, Florida Progress had announced restructuring plans for the operations of Mid-Continent, as well as a plan to address the pricing issues with its low-priced death benefit product. -- more -- The company has been forthright with the insurance department in reviewing its business strategy and the need to begin an orderly process to reduce policy dividends and increase premiums. Mid-Continent believed the meetings with the department had been productive and positive. Florida Progress (NYSE:FPC) is a Fortune 500 diversified utility holding company with assets of $5.3 billion. Its principal subsidiary is Florida Power, the state's second-largest electric utility with about 1.3 million customers. Diversified operations include coal mining, marine operations, rail services and life insurance. #### -----END PRIVACY-ENHANCED MESSAGE-----