-----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, UCmvGRuLauzuCbKtjh7UTNs0yx4BAzCQ5gW2Bmb951oIXlOh6PCrLfaqDbDxOjtZ gdHjPDEXz7j8m/QFHNS17g== 0000357261-98-000066.txt : 19980424 0000357261-98-000066.hdr.sgml : 19980424 ACCESSION NUMBER: 0000357261-98-000066 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 19980417 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 19980422 SROS: NYSE SROS: PCX 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: 98598768 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: 98598769 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 4-17-98 FORM 8-K As filed with the Securities and Exchange Commission on April 22, 1998 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 17, 1998
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 quarter ended March 31, 1998: Florida Progress issued an Investor News report and a media News Release, each dated April 17, 1998, to report an increase in its 1998 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. Florida Progress also issued a media News Release dated April 17, 1998 to report Dr. Jack Critchfield's retirement as Chairman of the Board of Florida Progress. A copy of the media News Release is being furnished herewith as Exhibit 99.(c). 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, 1998 reporting an increase in 1998 first-quarter earnings. 99.(b) Florida Progress media News Release dated April 17, 1998 reporting an increase in 1998 first-quarter earnings. 99.(c) Florida Progress media News Release dated April 17, 1998 announcing Dr. Jack Critchfield's retirement. 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/Jeffrey R. Heinicka By:____________________________ Jeffrey R. Heinicka Senior Vice President and Chief Financial Officer of each Registrant Date: April 17, 1998 EXHIBIT INDEX Exhibit No. Description of Exhibit 99.(a) Florida Progress Investor News report dated April 17, 1998 reporting an increase in 1998 first-quarter earnings. 99.(b) Florida Progress media News Release dated April 17, 1998 reporting an increase in 1998 first-quarter earnings. 99.(c) Florida Progress media News Release dated April 17, 1998 announcing Dr. Jack Critchfield's retirement. 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: Greg Beuris (813) 866-4442 Lauran Willoughby (813) 866-4837 Florida Progress reports increase in 1998 first-quarter earnings St. Petersburg, Florida, April 17, 1998 - Florida Progress Corporation (NYSE:FPC), parent of St. Petersburg-based Florida Power Corporation, reported first-quarter 1998 earnings of $50.5 million, or $.52 per share, compared with $42 million, or $.43 a share in the first quarter of 1997. Excluding the costs associated with Florida Power's nuclear plant outage, Florida Progress' first-quarter 1998 earnings were $53.6 million, or $.55 per share, compared with $46.8 million, or $.48 per share for the first quarter of 1997. The increase in earnings is due primarily to customer growth and increased customer usage at Florida Power and improved operating results at Electric Fuels Corporation, the company's energy and transportation group. Significant items influencing first-quarter results: o Crystal River nuclear plant returns to service - On February 15, 1998, Florida Power's nuclear plant returned to service after an extended maintenance outage. o Non-utility earnings up significantly - Electric Fuels' earnings increased $.05 per share for the quarter compared with the first quarter of 1997. This increase is attributable primarily to a return to normal operating conditions for its inland marine transportation group and improved results from the mining operations in its energy and related transportation group. o Customer growth and increased usage boost energy sales - Florida Power served more than 20,000 new residential and commercial customers during the first quarter of 1998, compared with the first quarter of 1997. The addition of these new customers and colder weather resulted in a 4.6 percent increase in retail kilowatt hour sales. o Good cost control at the utility - Continued cost control kept operating and maintenance expenses virtually flat for the first quarter of 1998, compared with the first quarter of 1997, despite a growing customer base and operating and maintenance costs associated with the Tiger Bay cogeneration facility acquired in July 1997. FLORIDA POWER CORPORATION Excluding the impact of the nuclear plant outage, Florida Power, the largest subsidiary of Florida Progress, earned $48.9 million, or $.50 per share, on revenues of $565.2 million for the quarter, compared with earnings of $46 million, or $.47 per share, on revenues of $553.8 million for the same period in 1997. -- more -- For the first quarter of 1998, Florida Power's retail kilowatt-hour sales increased 4.6 percent over the first quarter of 1997. The increase in retail sales was attributable largely to a 1.8 percent increase in Florida Power's residential and commercial customers, continuing its growth rate at nearly twice the national average. In addition, during the first quarter of 1998, Florida Power's service area experienced more normal weather conditions as compared to the extremely mild weather experienced in 1997. Florida Power's continuing efforts to control costs resulted in operating and maintenance expense during the first quarter of 1998 remaining level with the same period for 1997, excluding nuclear outage costs. This was achieved despite the utility absorbing additional operating and maintenance costs related to the Tiger Bay facility, the addition of more than 20,000 new residential and commercial customers, and general inflationary pressures. Depreciation and amortization expense increased approximately $7 million for the first quarter of 1998 compared with 1997. Most of the increase was due to the depreciation and amortization expenses associated with the 1997 purchase of the Tiger Bay facility and buy-out of the related purchased power contracts. Florida Power incurred approximately $11 million of additional interest expense in the first quarter of 1998 compared with the first quarter of 1997. The increase was the result of higher debt balances due to financing the costs associated with the extended nuclear maintenance outage and the issuance of $450 million of medium-term notes used to finance the Tiger Bay transaction. ELECTRIC FUELS CORPORATION Electric Fuels earned $8.2 million, or $.08 per share, in the first quarter of 1998 compared with $3.3 million, or $.03 per share, in 1997. Most of the increase is attributable to improved operations at the inland marine transportation group. In the first quarter of 1997, flooding along the Ohio and Mississippi rivers significantly affected earnings for the inland marine transportation group. Normal operating conditions thus far in 1998 combined with a larger barge fleet have increased earnings from this group by $2.5 million, or $.03 per share, when compared with the same three-month period last year. Earnings for Electric Fuels' energy and related services group were up $1.6 million, or $.02 per share, for the first quarter of 1998 compared with 1997. The improvement in earnings was due primarily to lower production costs at company mines and increased coal sales. The increase in sales resulted largely from the September 1997 buy-out of a 50-percent partner in one of its coal properties. Electric Fuels now recognizes 100 percent of the sales from this mining operation. Progress Rail, the lead company in Electric Fuels' Rail Services group, continues to experience increased demand for its railroad related parts and services. Earnings from this group were up $.5 million for the quarter. Florida Progress (NYSE:FPC) is a Fortune 500 diversified utility holding company with assets of $5.8 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 and rail services. ###
FLORIDA PROGRESS CORPORATION CONSOLIDATED STATEMENTS OF INCOME Page 3 (UNAUDITED) (In millions, except per share amounts) Three Months Ended Twelve Months Ended March 31, March 31, -------------------------------------------------- 1998 1997 1998 1997 ----------- ----------- ----------- ----------- REVENUES: Electric utility $ 565.2 $ 553.8 $ 2,459.8 $ 2,400.1 Diversified 222.3 193.7 895.8 774.9 - ------------------------------------------------------------------------------------------------------------------ 787.5 747.5 3,355.6 3,175.0 - ------------------------------------------------------------------------------------------------------------------ EXPENSES: Electric utility: Fuel 109.2 94.9 472.4 419.6 Purchased power 99.0 127.2 462.4 536.0 Energy conservation cost 16.6 11.0 72.6 53.9 Operations and maintenance 102.4 102.4 422.3 415.4 Extended nuclear outage - O&M and replacement power costs 5.1 7.9 170.5 7.9 Depreciation 81.0 74.3 332.6 320.9 Taxes other than income taxes 49.5 48.1 195.0 184.5 - ------------------------------------------------------------------------------------------------------------------ 462.8 465.8 2,127.8 1,938.2 - ------------------------------------------------------------------------------------------------------------------ Diversified: Cost of sales 193.8 171.8 775.9 659.6 Provision for loss on coal properties - - - 40.9 Loss related to life insurance subsidiary - - 97.6 - Other 12.8 14.9 58.6 66.1 - ------------------------------------------------------------------------------------------------------------------ 206.6 186.7 932.1 766.6 - ------------------------------------------------------------------------------------------------------------------ INCOME FROM OPERATIONS 118.1 95.0 295.7 470.2 - ------------------------------------------------------------------------------------------------------------------ INTEREST EXPENSE AND OTHER: Interest expense 47.3 34.3 171.7 135.6 Allowance for funds used during construction (3.9) (2.1) (11.5) (7.9) Preferred dividend requirements of Florida Power .4 .4 1.5 3.9 (Gain) on sale of business - - - (44.2) Other expense (income) (.5) .4 .5 (.4) - ------------------------------------------------------------------------------------------------------------------ 43.3 33.0 162.2 87.0 - ------------------------------------------------------------------------------------------------------------------ INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES 74.8 62.0 133.5 383.2 Income taxes 24.3 20.0 70.7 138.8 - ------------------------------------------------------------------------------------------------------------------ INCOME FROM CONTINUING OPERATIONS 50.5 42.0 62.8 244.4 DISCONTINUED OPERATIONS, NET OF INCOME TAXES - - - (26.3) - ------------------------------------------------------------------------------------------------------------------ NET INCOME $ 50.5 $ 42.0 $ 62.8 $ 218.1 - ------------------------------------------------------------------------------------------------------------------ AVERAGE SHARES OF COMMON STOCK OUTSTANDING 97.1 97.0 97.1 97.0 - ------------------------------------------------------------------------------------------------------------------ EARNINGS (LOSS) PER AVERAGE COMMON SHARE: CONTINUING OPERATIONS $.52 $.43 $.65 $2.52 DISCONTINUED OPERATIONS - - - (.27) - ------------------------------------------------------------------------------------------------------------------ $.52 $.43 $.65 $2.25 - ------------------------------------------------------------------------------------------------------------------
Regarding these financial statements: Prior periods reflect the recapitalization of the spin-off company, Echelon International, and its associated treatment as discontinued operations. 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 4 (UNAUDITED) (In millions) March 31 --------------------------- ASSETS 1998 1997 ----------- ---------- PROPERTY, PLANT AND EQUIPMENT: Electric utility plant in service and held for future use $ 6,172.5 $ 5,986.5 Less - Accumulated depreciation 2,570.3 2,394.9 Accumulated decommissioning for nuclear plant 230.6 200.3 Accumulated dismantlement for fossil plants 128.9 123.8 - -------------------------------------------------------------------------------------------------- 3,242.7 3,267.5 Construction work in progress 336.3 198.2 Nuclear fuel, net of amortization of $359.9 in 1998 and $356.7 in 1997 63.2 59.9 - -------------------------------------------------------------------------------------------------- Net electric utility plant 3,642.2 3,525.6 Other property, net of depreciation of $224 in 1998 and $178.1 in 1997 455.6 314.3 - -------------------------------------------------------------------------------------------------- 4,097.8 3,839.9 - -------------------------------------------------------------------------------------------------- CURRENT ASSETS: Cash and equivalents 8.2 16.5 Accounts receivable, net 370.9 280.7 Inventories, primarily at average cost: Fuel 75.6 80.1 Utility materials and supplies 92.1 95.4 Diversified materials 139.6 137.2 Underrecovery of fuel cost 37.7 105.6 Deferred income taxes 40.6 33.7 Other 46.4 15.0 - -------------------------------------------------------------------------------------------------- 811.1 764.2 - -------------------------------------------------------------------------------------------------- OTHER ASSETS: Investments: Loans receivable, net 31.6 57.6 Marketable securities - 228.2 Nuclear plant decommissioning fund 281.7 219.2 Joint ventures and partnerships 51.8 51.0 Deferred insurance policy acquisition costs - 123.0 Deferred purchased power contract termination costs 344.6 - Other 217.8 179.6 - -------------------------------------------------------------------------------------------------- 927.5 858.6 - -------------------------------------------------------------------------------------------------- $ 5,836.4 $ 5,462.7 - -------------------------------------------------------------------------------------------------- CAPITAL AND LIABILITIES CAPITAL: Common stock equity $ 1,773.9 $ 1,912.8 Cumulative preferred stock of Florida Power 33.5 33.5 Long-term debt 2,342.3 1,820.1 - -------------------------------------------------------------------------------------------------- 4,149.7 3,766.4 - -------------------------------------------------------------------------------------------------- CURRENT LIABILITIES: Accounts payable 222.3 189.2 Customers' deposits 99.1 94.3 Income taxes payable 12.5 37.0 Accrued other taxes 32.8 32.4 Accrued interest 48.8 39.1 Other 73.4 74.9 - -------------------------------------------------------------------------------------------------- 488.9 466.9 Notes payable 303.2 55.9 Current portion of long-term debt 5.7 24.9 - -------------------------------------------------------------------------------------------------- 797.8 547.7 - -------------------------------------------------------------------------------------------------- DEFERRED CREDITS AND OTHER LIABILITIES: Deferred income taxes 504.4 465.3 Unamortized investment tax credits 83.7 91.5 Insurance policy benefit reserves - 341.3 Other postretirement benefit costs 109.0 102.0 Other 191.8 148.5 - -------------------------------------------------------------------------------------------------- 888.9 1,148.6 - -------------------------------------------------------------------------------------------------- $ 5,836.4 $ 5,462.7 - --------------------------------------------------------------------------------------------------
FLORIDA PROGRESS CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS Page 5 (UNAUDITED) (In millions) Three Months Ended Twelve Months Ended March 31 March 31 ------------------------ ------------------------ 1998 1997 1998 1997 ----------- ----------- ----------- ----------- OPERATING ACTIVITIES: Income from continuing operations $ 50.5 $ 42.0 $ 62.8 $ 244.4 Adjustments for noncash items: Depreciation and amortization 100.9 83.2 381.9 361.9 Extended nuclear outage - replacement power costs - - 73.3 - Provision for loss on investment in life insurance subsidiary - - 86.9 - Gain on sale of business - - - (44.2) Provision for loss on coal properties - - - 40.9 Deferred income taxes and investment tax credits, net (7.3) (12.3) (25.7) (62.0) Increase in accrued other postretirement benefit costs 1.6 2.0 8.2 15.8 Net change in deferred insurance policy acquisition costs - (2.1) .4 (14.4) Net change in insurance policy benefit reserves - 16.0 36.7 63.5 Changes in working capital, net of effects from acquisition or sale of businesses: Accounts receivable 10.2 (15.5) (82.6) 8.4 Inventories 3.1 (25.0) 30.3 (38.9) Underrecovery of fuel cost (8.3) (23.0) (18.4) (86.3) Accounts payable (33.0) (4.0) 29.3 29.9 Income taxes payable 29.9 9.4 (24.6) (6.3) Accrued other taxes 20.5 19.0 (.5) (3.5) Other (11.8) (2.2) (8.4) (14.0) Other operating activities (2.7) 1.7 (42.6) (28.5) - -------------------------------------------------------------------------------------------------------------------- Cash provided by continuing operations 153.6 89.2 507.0 466.7 - -------------------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------------------- Cash provided by discontinued operations - - - 3.6 - -------------------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------------------- 153.6 89.2 507.0 470.3 - -------------------------------------------------------------------------------------------------------------------- INVESTING ACTIVITIES: Property additions (including allowance for borrowed funds used during construction) (103.0) (94.8) (521.8) (288.1) Purchases of loans and securities, net (7.7) (4.5) (14.2) (63.1) Proceeds from sales of properties and businesses 2.1 2.2 24.2 60.0 Acquisition of businesses (9.1) - (41.8) (53.8) Acquisition of cogeneration facility and payment of contract termination costs - - (445.0) - Investments in joint ventures and partnerships, net (.5) (9.3) (21.7) (18.7) Investing activities of discontinued operations - - - 49.8 Other investing activities (5.2) (4.9) (22.5) (19.2) - -------------------------------------------------------------------------------------------------------------------- (123.4) (111.3) (1,042.8) (333.1) - -------------------------------------------------------------------------------------------------------------------- FINANCING ACTIVITIES: Issuance of long-term debt 144.1 - 626.9 178.0 Repayment of long-term debt (169.4) (21.5) (182.8) (210.4) Increase(decrease) in commercial paper with long-term support (35.7) 54.6 40.3 80.0 Redemption of preferred stock - - - (106.4) Sale of common stock - - - 9.2 Equity contributions to discontinued operations - - - (23.7) Dividends paid on common stock (51.9) (51.0) (204.7) (200.8) Increase in short-term debt 88.4 51.8 247.4 55.9 Financing activities of discontinued operations - - - 95.4 Other financing activities (.6) (.5) .4 (3.8) - -------------------------------------------------------------------------------------------------------------------- (25.1) 33.4 527.5 (126.6) - -------------------------------------------------------------------------------------------------------------------- NET INCREASE (DECREASE) IN CASH AND EQUIVALENTS 5.1 11.3 (8.3) 10.6 Beginning cash and equivalents 3.1 5.2 16.5 5.9 - -------------------------------------------------------------------------------------------------------------------- ENDING CASH AND EQUIVALENTS $ 8.2 $ 16.5 $ 8.2 $ 16.5 - --------------------------------------------------------------------------------------------------------------------
Florida Progress Corporation Selected Financial Information (Unaudited) Page 6 Three Months Ended Percent Twelve Months Ended Percent March 31 Positive March 31 Positive 1998 1997 (Negative) 1998 1997 (Negative) ------------ ----------- ------------------ ----------- ------------ ------------- Earnings (Loss) Per Share: Florida Power Corporation $.50 $.47 6.4 $2.51 $2.43 3.3 ------------ ----------- ----------- ------------ Electric Fuels Corporation .08 .03 166.7 .38 .24 58.3 Mid-Continent Life Insurance Co. - - - - .01 - Corporate and other (.03) (.02) (50.0) (.20) (.09) (122.2) ------------ ----------- ----------- ------------ Diversified Continuing before non-recurring .05 .01 400.0 .18 .16 12.5 ------------ ----------- ----------- ------------ Continuing Ops before non-recurring .55 .48 14.6 2.69 2.59 3.9 Impact of nuclear outage (.03) (.05) - (1.08) (.05) - Provision for loss on coal properties - - - - (.26) - Gain on sale of business - - - - .24 - Loss related to life insurance subsidiary - - (.96) - ------------ ----------- ----------- ------------ Total Continuing Operations .52 .43 20.9 .65 2.52 (74.2) Discontinued Operations - - - - (.27) - ============ =========== =========== ============ $.52 $.43 20.9 $.65 $2.25 (71.1) ============ =========== =========== ============ Avg. shares outstanding (millions) 97.1 97.0 .1 97.1 97.0 .1 Dividends per share $.535 $.525 1.9 $2.11 $2.07 1.9 Book value per share: Florida Power Corporation $18.18 $18.73 (3.0) Consolidated $18.28 $19.71 (7.3)
March 31 March 31 March 31 1998 1997 1998 1997 Amount Percent Amount Percent ------------ ----------- -------------------------------------------- Equity investments (percent): Capitalization (in millions): Florida Power Corporation 90 87 Common stock $1,773.9 39.8 $1,912.8 49.7 Electric Fuels Corporation 10 9 Preferred stock 33.5 .8 33.5 .9 Mid-Continent Life Insurance Co. - 4 Long-term debt 2,342.3 52.5 1,820.1 47.3 ------------ ----------- Total 100 100 Short-term debt 308.9 6.9 80.8 2.1 ------------ ----------- -------------------------------------------- Total $4,458.6 100.0 $3,847.2 100.0 -------------------------------------------- Note: 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 7 (In millions, except billing degree days) Three Months Ended Twelve Months Ended March 31 Percent March 31 Percent 1998 1997 Change 1998 1997 Change ------------- ------------- --------------- ------------- -------------- ------------ Revenues: Residential $308.7 $290.7 6.2 $1,333.0 $1,279.0 4.2 Commercial 123.7 124.2 (.4) 567.9 546.4 3.9 Industrial 47.8 51.9 (7.9) 203.8 210.9 (3.4) Other retail sales 30.0 29.8 .7 133.6 128.7 3.8 ------------- ------------- ------------- -------------- 510.2 496.6 2.7 2,238.3 2,165.0 3.4 Sales for resale 36.9 37.1 (.5) 150.5 154.0 (2.3) ------------- ------------- ------------- -------------- 547.1 533.7 2.5 2,388.8 2,319.0 3.0 Other electric revenues 21.4 12.8 67.2 84.9 58.1 46.1 Deferred fuel (3.3) 7.3 - (13.9) 23.0 - ------------- ------------- ------------- -------------- Total $565.2 $553.8 2.1 $2,459.8 $2,400.1 2.5 ------------- ------------- ------------- -------------- Kilowatt-hour sales billed: Residential 3,555.8 3,296.3 7.9 15,339.3 14,858.2 3.2 Commercial 2,030.9 1,994.4 1.8 9,293.8 8,953.5 3.8 Industrial 982.9 1,049.9 (6.4) 4,120.8 4,272.7 (3.6) Other retail sales 529.9 517.4 2.4 2,337.9 2,268.3 3.1 ------------- ------------- ------------- -------------- 7,099.5 6,858.0 3.5 31,091.8 30,352.7 2.4 Sales for resale 655.2 531.9 23.2 2,562.9 2,487.0 3.1 ------------- ------------- ------------- -------------- Total electric sales 7,754.7 7,389.9 4.9 33,654.7 32,839.7 2.5 ------------- ------------- ------------- -------------- System Requirements (KWH) 7,844 7,520 4.3 34,928 34,006 2.7 KWH Sales (Billed & Unbilled): Retail 7,098 6,787 4.6 31,176 30,183 3.3 Wholesale 650 438 48.4 2,645 2,296 15.2 Billing Degree Days: Cooling 25 25 - 3,434 3,707 (7.4) Heating 462 296 56.1 609 502 21.3 Note: Revenues include amounts resulting from fuel, purchased power, and energy conservation clauses; which are designed to permit full recovery of these costs. 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 and wholesale KWH sales includes both billed and unbilled sales. 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.
EX-99.(B) 3 EX-99.(B) TO FLORIDA PROGRESS/POWER FORM 8-K EXHIBIT 99.(b) Florida Progress Corporation News Release Corporate Relations Department, St. Petersburg, Florida FOR IMMEDIATE RELEASE CONTACT: Melanie Forbrick 813/866-5023 [LOGO OMITTED] Florida Progress reports increase in 1998 first-quarter earnings St. Petersburg, FL....April 17, 1998....Florida Progress Corporation, parent of St. Petersburg-based Florida Power Corporation, today reported first-quarter 1998 earnings of $50.5 million, or $.52 per share. This compares with $42 million, or $.43 per share, in the first quarter of 1997. Excluding $3.1 million in non-recurring fuel replacements costs associated with the outage of the Crystal River 3 nuclear unit, first-quarter 1998 earnings were $53.6 million, or $.55 per share, compared with $46.8 million, or $.48 per share, for the first quarter of 1997. The increase in earnings is due primarily to customer growth and increased customer usage at Florida Power Corporation and improved operating results at Electric Fuels Corporation, the company's energy and transportation group. Significant items influencing first-quarter results: o Crystal River nuclear plant returns to service - On February 15, 1998, Florida Power's nuclear plant returned to service after an extended maintenance outage. o Non-utility earnings up significantly - Electric Fuels Corporation earnings increased $.05 per share for the quarter compared with the first quarter of 1997. The increase in earnings was the result of a return to normal operating conditions for its inland marine transportation group, along with improved results from the mining operations in its energy and related services group. o Customer growth and increased usage boost utility sales - With more than 20,000 new residential and commercial customers, Florida Power's customer growth of 1.8 percent continued at more that twice the national average. This combined with colder weather during the first quarter of 1998, compared with the first quarter of 1997, resulted in a 4.6 percent increase in the retail kilowatt hour sales of Florida Power. o Good cost control at the utility - Continued cost control kept operating and maintenance expenses virtually flat for the first quarter of 1998, compared with the first quarter of 1997, despite a growing customer base and the operating and maintenance costs associated with the Tiger Bay facility, which was acquired in July 1997. - more - Florida Progress 1998 first-quarter earnings Add one Florida Power Corporation, the largest subsidiary of Florida Progress, earned $45.8 million, or $.47 per share, on revenues of $565.2 million for the quarter. This compares with earnings of $41.2 million, or $.42 per share, on revenues of $553.8 million for the same period in 1997. Electric Fuels earned $8.2 million, or $.08 per share, in the first quarter of 1998. This compares with $3.3 million, or $.03 per share, in 1997. The increase was due primarily to improved operating conditions for the inland marine transportation group and increased coal sales for the energy and related services group. In the first quarter of 1997, flooding along the Ohio and Mississippi rivers significantly affected earnings for the inland marine transportation group. Normal operating conditions thus far in 1998, combined with a larger barge fleet increased earnings from this group by $2.5 million, or $.03 per share. Lower production costs and increased coal sales increased earnings for the energy and related services group by $1.6 million, or $.02 per share, in the first quarter of 1998 compared with 1997. Florida Progress Corporation (NYSE:FPC) is a FORTUNE 500 diversified utility holding company with assets of $5.8 billion. Its principal subsidiary is Florida Power Corporation, one of Florida's largest electric utilities serving 4.5 million residents and businesses in 32 counties in the central and northern portions of the state. Diversified operations include coal mining, marine operations and rail services. (earnings chart -- see attached) ###
Three Months Ended Twelve Months Ended MARCH 31 MARCH 31 -------------------------------------------------------------------------- 1998 1997 1998 1997 ---------------- ---------------- ------------------ ------------------ Revenues $787,500,000 $747,500,000 $3,355,600,000 $3,175,000,000 ---------------- ---------------- ------------------ ------------------ Continuing operations before non-recurring items 53,600,000 46,800,000 261,000,000 250,900,000 Non-recurring items (3,100,000) (4,800,000) (198,200,000) (6,500,000) ---------------- ---------------- ------------------ ------------------ Continuing operations 50,500,000 42,000,000 62,800,000 244,400,000 Discontinued operations - - - (26,300,000) ---------------------------------- ------------------ ------------------ Net income $50,500,000 $42,000,000 $62,800,000 $218,100,000 ================ ================ ================== ================== Earnings (loss) per share (EPS): Income from continuing operations before non-recurring items $ .55 $ .48 $ 2.69 $ 2.59 Non-recurring items (.03) (.05) (2.04) (.07) ---------------- ---------------- ------------------ ------------------ Continuing operations .52 .43 .65 2.52 Discontinued operations - - - (.27) ---------------- ---------------- ------------------ ------------------ Consolidated $ .52 $ .43 $ .65 $ 2.25 ================ ================ ================== ================== Average Common Shares Outstanding 97,059,243 97,036,161 97,060,069 96,969,645
Prior periods reflect the recapitalization of the spin-off company, Echelon and its and its associated treatment as discontinued operations. EX-99.(C) 4 EX-99.(C) TO FLORIDA PROGRESS/POWER FORM 8-K EXHIBIT 99.(c) FOR IMMEDIATE RELEASE CONTACT: Melanie Forbrick 813/866-5023 CRITCHFIELD TO RETIRE, KORPAN ELECTED CHAIRMAN OF FLORIDA PROGRESS CORPORATION St. Petersburg, FL...April 17, 1998...Dr. Jack Critchfield today announced his plans to retire as chairman of the board of Florida Progress Corporation (NYSE: FPC), effective June 30, 1998. In addition, the board elected President and CEO Dick Korpan to succeed Critchfield as company chairman, effective July 1, 1998. Critchfield joined Florida Power Corporation in 1983 as the vice president of the utility's Central Florida Divisions. He went on to become the president of Electric Fuels Corporation in 1987. In 1988, Critchfield became president and chief operating officer of Florida Progress. He assumed the role of CEO in 1990 and in 1991 became the chairman of the board, a position he has held ever since. "I have thoroughly enjoyed the 15 years I have spent working for Florida Progress and its subsidiaries, and so it is with mixed emotions that I announce my intentions to retire. I'm confident that we have in place an extremely talented management team that will lead this company to great things," said Critchfield. Korpan joined Florida Progress in 1989 as executive vice president and chief financial officer. He went on to become the president and chief operating officer in 1991 and in 1996 also became the chairman and CEO of Florida Power. In June 1997, Korpan assumed the role of president and CEO of Florida Progress and remained as chairman of Florida Power. "I'm very much looking forward to continuing the charge placed upon me by the board of directors and shareholders of this company. I intend to work diligently toward our goal to become a world-class energy services company in an increasingly competitive market place," said Korpan. Florida Progress Corporation (NYSE:FPC) is a FORTUNE 500 diversified utility holding company with assets of $5.8 billion. Its principal subsidiary is Florida Power Corporation, one of Florida's largest electric utilities serving 4.5 million residents and businesses in 32 counties in the central and northern portions of the state. Diversified operations include coal mining, marine operations and rail services. ### -----END PRIVACY-ENHANCED MESSAGE-----