-----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, MLLst/OtuH+WSi3ISZlsIDYgW5uwxpn6SEL4qMsC/rDK6JLWj/Eq3ABx6ZTyDqck XwnZwHk16BOtgisSiw2i7Q== 0000096271-95-000012.txt : 19951119 0000096271-95-000012.hdr.sgml : 19951119 ACCESSION NUMBER: 0000096271-95-000012 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19950930 FILED AS OF DATE: 19951113 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: TAMPA ELECTRIC CO CENTRAL INDEX KEY: 0000096271 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC SERVICES [4911] IRS NUMBER: 590475140 STATE OF INCORPORATION: FL FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-05007 FILM NUMBER: 95590676 BUSINESS ADDRESS: STREET 1: 702 N FRANKLIN ST CITY: TAMPA STATE: FL ZIP: 33602 BUSINESS PHONE: 8132284111 10-Q 1 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 1995 OR TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 1-5007 TAMPA ELECTRIC COMPANY (Exact name of registrant as specified in its charter) FLORIDA 59-0475140 (State or other jurisdiction of (IRS Employer incorporation or organization) Identification No.) 702 North Franklin Street, Tampa, Florida 33602 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (813) 228-4111 Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X No Number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date (October 31, 1995): Common Stock, Without Par Value 10 FORM 10-Q PART I. FINANCIAL INFORMATION Item 1. Financial Statements In the opinion of management, the unaudited financial statements include all adjustments (none of which were other than normal or recurring) necessary to present fairly the results for the three-month and nine-month periods ended Sept. 30, 1995 and 1994. Reference should be made to the explanatory notes affecting the income and balance sheet accounts contained in Tampa Electric Company's Annual Report on Form 10-K for the year ended Dec. 31, 1994 and to the notes on page 7 of this report. - 2 - FORM 10-Q BALANCE SHEETS (in thousands) Sept. 30, Dec. 31, 1995 1994 Assets Property, plant and equipment, at original cost Utility plant in service $2,912,043 $2,854,240 Construction work in progress 418,825 246,089 3,330,868 3,100,329 Accumulated depreciation (1,186,577) (1,115,167) 2,144,291 1,985,162 Other property 194 194 2,144,485 1,985,356 Current assets Cash and cash equivalents 244 7,071 Receivables, less allowance for uncollectibles 123,370 103,508 Inventories, at average cost Fuel 63,349 95,831 Materials and supplies 38,845 38,465 Prepayments 1,596 2,675 227,404 247,550 Deferred debits Unamortized debt expense 18,679 19,782 Deferred income taxes 91,469 86,514 Regulatory asset - tax related 34,170 30,791 Other 54,909 47,828 199,227 184,915 $2,571,116 $2,417,821 Liabilities and Capital Capital Common stock $ 831,956 $ 775,956 Retained earnings 207,272 173,299 1,039,228 949,255 Preferred stock, redemption not required 54,956 54,956 Long-term debt, less amount due within one year 583,038 607,270 1,677,222 1,611,481 Current liabilities Long-term debt due within one year 26,030 1,260 Notes payable 72,700 91,800 Accounts payable 99,524 113,759 Customer deposits 50,849 49,457 Interest accrued 15,716 11,166 Taxes accrued 60,665 2,152 325,484 269,594 Deferred credits Deferred income taxes 326,942 327,646 Investment tax credits 59,690 63,265 Regulatory liability - tax related 85,527 88,291 Other 96,251 57,544 568,410 536,746 $2,571,116 $2,417,821 The accompanying notes are an integral part of the financial statements. - 3 - FORM 10-Q STATEMENTS OF INCOME (in thousands) For the three months ended Sept. 30, 1995 1994 Operating revenues $308,067 $301,440 Operating expenses Operation Fuel 108,710 109,286 Purchased power 13,504 8,374 Other 39,621 38,758 Maintenance 16,328 16,804 Depreciation 26,009 29,027 Taxes, federal and state income 27,974 24,768 Taxes, other than income 21,974 21,617 254,120 248,634 Operating income 53,947 52,806 Other income Allowance for other funds used during construction 3,234 459 Other income (expense), net 1,317 (109) 4,551 350 Income before interest charges 58,498 53,156 Interest charges Interest on long-term debt 9,526 9,331 Other interest 2,521 826 Allowance for borrowed funds used during construction (1,949) (1,071) 10,098 9,086 Net income 48,400 44,070 Preferred dividend requirements 892 892 Balance applicable to common stock $ 47,508 $ 43,178 The accompanying notes are an integral part of the financial statements. - 4 - FORM 10-Q STATEMENTS OF INCOME (in thousands) For the nine months ended Sept. 30, 1995 1994 Operating revenues $840,957 $839,393 Operating expenses Operation Fuel 295,128 299,662 Purchased power 34,693 26,359 Other 119,764 129,216 Maintenance 51,287 52,602 Depreciation 84,893 86,459 Taxes, federal and state income 56,467 53,778 Taxes, other than income 66,952 66,364 709,184 714,440 Operating income 131,773 124,953 Other income Allowance for other funds used during construction 7,554 1,103 Other income (expense), net (435) (304) 7,119 799 Income before interest charges 138,892 125,752 Interest charges Interest on long-term debt 28,559 27,457 Other interest 7,254 3,662 Allowance for borrowed funds used during construction (4,552) (2,527) 31,261 28,592 Net income 107,631 97,160 Preferred dividend requirements 2,676 2,676 Balance applicable to common stock $104,955 $ 94,484 The accompanying notes are an integral part of the financial statements. - 5 - FORM 10-Q STATEMENTS OF CASH FLOWS (in thousands) For the nine months ended Sept. 30, 1995 1994 Cash flows from operating activities Net income $ 107,631 $ 97,160 Adjustments to reconcile net income to net cash Depreciation 84,893 86,459 Deferred income taxes (11,802) (8,764) Investment tax credits, net (3,575) (3,646) Allowance for funds used during construction (12,106) (3,630) Deferred recovery clause (13,975) 20,730 Deferred revenue 30,962 -- Amortization of coal contract buyout 1,352 -- Refund to customers -- (2,428) Receivables, less allowance for uncollectibles (19,862) (17,224) Inventories 32,102 (4,475) Taxes accrued 58,513 33,429 Accounts payable (14,235) (7,058) Other 24,704 23,456 264,602 214,009 Cash flows from investing activities Capital expenditures (247,137) (145,421) Allowance for funds used during construction 12,106 3,630 Short-term investments -- (1,619) (235,031) (143,410) Cash flows from financing activities Proceeds from contributed capital from parent 56,000 99,000 Proceeds from long-term debt 620 686 Repayment of long-term debt (260) (245) Net decrease in short-term debt (19,100) (81,500) Dividends (73,658) (77,268) (36,398) (59,327) Net increase (decrease) in cash and cash equivalents (6,827) 11,272 Cash and cash equivalents at beginning of period 7,071 4,499 Cash and cash equivalents at end of period $ 244 $ 15,771 The accompanying notes are an integral part of the financial statements. - 6 - FORM 10-Q NOTES TO FINANCIAL STATEMENTS A. Tampa Electric Company is a wholly owned subsidiary of TECO Energy, Inc. B. The company has made certain commitments in connection with its continuing construction program. Total construction expenditures are estimated to be $310 million for 1995, excluding allowance for funds used during construction (AFUDC). C. The company s deferred revenue plan approved by the Florida Public Service Commission (FPSC) provides for an 11.75 percent authorized rate of return on common equity (ROE) for all regulatory purposes with a range of 10.75 percent to 12.75 percent retroactive to Jan. 1, 1995. Under the plan the company will defer in 1995 $15 million of revenues as well as 50 percent of actual revenues c o n tributing to a return on average common equity exceeding 11.75 percent and 100 percent of actual revenues contributing to a return on average common equity exceeding 12.75 percent. The company expects, subject to regulatory approval, that beginning in 1997 these deferred revenues will be used to offset a portion of the revenue requirements associated with the Polk Power Station. As of Sept. 30, 1995, the company had deferred $31 million in revenues. The FPSC order also eliminated the company s oil backout tariff effective Jan. 1, 1996. This tariff currently results in approximately $12 million of annual revenues. D. Certain 1994 amounts on the statements of cash flows have been restated to comply with the current-year presentation. - 7 - FORM 10-Q Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Results of Operations Three months ended Sept. 30, 1995: Net income of $48.4 million for the third quarter of 1995 was $4.3 million or 10 percent higher than 1994's third quarter due primarily to increased energy sales and higher AFUDC. Increased energy sales also contributed to 2 percent higher operating income in 1995. These results were net of $14.1 million of revenues deferred under the FPSC-approved plan described on pages 7 and 12. Revenues for the quarter increased $6.6 million or 2 percent after the $14.1 million revenue deferral due to increased energy sales. Retail energy sales increased 5 percent reflecting customer growth of 2 percent and warmer weather than 1994's third quarter. Combined fuel and purchased power expenses increased $4.6 million or 4 percent for the third quarter of 1995 reflecting higher energy sales. Depreciation expense decreased $3.0 million because of a one-time adjustment in the third quarter of 1995 reflecting a change from an accelerated to a straight-line method of depreciation for the energy management system facility. The effective income tax rate for the third quarter was 35.1 percent compared to 36.1 percent for the same period last year. The decrease was primarily due to higher allowance for other funds used during construction in 1995. Total AFUDC increased in 1995 because of additional investment in the Polk Power Station which is under construction. Interest expense before the allowance for borrowed funds used - 8 - FORM 10-Q during construction was $1.9 million, or 19 percent higher in the current quarter, due to higher interest rates on floating-rate debt and an increase in short-term debt balances. - 9 - FORM 10-Q Nine months ended Sept. 30, 1995: Net income of $107.6 million for the nine months of 1995 was $10.5 million or 11 percent higher than 1994's nine months due to increased energy sales, higher AFUDC and lower operating expenses. These results were net of $31.0 million of revenues deferred under the plan discussed on pages 7 and 12. Revenues for the nine months increased $1.6 million or .2 percent after the $31.0 million revenue deferral due to increased energy sales. Retail energy sales increased 4 percent from continued growth in the local economy and favorable weather which resulted in increased energy usage in the residential and commercial sectors. In addition, the industrial-phosphate sector use more energy to meet increased demand. Operation-other and maintenance expenses decreased $10.8 million or 6 percent as a result of the corporate restructuring program established in late 1994, additional cost control activities in 1995 and timing of certain expenses. Combined fuel and purchased power expenses increased $3.8 million or 1 percent for the nine months of 1995 reflecting higher energy sales. The effective income tax rate for the nine months of 1995 was 34.3 percent compared to 35.8 percent for the same period last year. The decrease was primarily due to higher allowance for other funds used during construction in 1995. Total AFUDC increased substantially in 1995 because of additional investment in the Polk Power Station which is under construction. Interest expense before the allowance for borrowed funds used during construction increased $4.7 million or 15 percent due to higher - 10 - FORM 10-Q interest rates on floating-rate debt and an increase in short-term debt balances. - 11 - FORM 10-Q Liquidity, Capital Resources and Changes in Financial Condition The company s FPSC-approved deferred revenue plan provides for an 11.75 percent authorized ROE for all regulatory purposes with a range of 10.75 percent to 12.75 percent and the deferral of revenues under certain financial circumstances related to these returns. Under the plan the company will defer in 1995 $15 million of revenues as well as 50 percent of actual revenues contributing to a return on average common equity exceeding 11.75 percent and 100 percent of actual revenues contributing to a return on average common equity exceeding 12.75 percent. Tampa Electric expects, subject to regulatory approval, that beginning in 1997 these deferred revenues will be used to offset a portion of the revenue requirements associated with the Polk Power Station. As of Sept. 30, 1995, the company had deferred $31 million in revenues. The FPSC also eliminated the company's oil backout tariff effective Jan. 1, 1996. This tariff currently results in approximately $12 million of annual revenues. Net receivables increased $19.9 million, reflecting seasonal variations in electric billings. Fuel inventory decreased $32.5 million, primarily as a result of higher energy sales. Taxes accrued increased $58.5 million because of higher income taxes, revenue-related taxes, and the timing of property tax payments. Other deferred credits increased $38.7 million from year-end primarily due to the deferral of revenues as discussed above. - 12 - FORM 10-Q PART II. OTHER INFORMATION Item 6. Exhibits and Reports on Form 8-K (a) Exhibits 12. Ratio of earnings to fixed charges. 27. Financial data schedule. (EDGAR filing only) (b) Reports on Form 8-K No reports on Form 8-K were filed during the quarter to which this report relates. - 13 - FORM 10-Q SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. TAMPA ELECTRIC COMPANY (Registrant) Dated: November 13, 1995 By: /s/ L. L. Lefler L. L. Lefler Vice President - Controller (Chief Accounting Officer) - 14 - FORM 10-Q INDEX TO EXHIBITS Exhibit No. Description of Exhibits Page No. 12. Ratio of earnings to fixed charges 16 27. Financial data schedule (EDGAR filing only) -- - 15 - EX-11 2 Exhibit 12 TAMPA ELECTRIC COMPANY RATIO OF EARNINGS TO FIXED CHARGES The following table sets forth the company's ratio of earnings to fixed charges for the periods indicated. Nine Months Twelve Months Ended Ended Year Ended December 31, Sept. 30, 1995 Sept. 30, 1995(1) 1994(1) 1993(2) 1992 1991 1990 4.88x 4.24x 4.11x 3.98x 4.16x 3.66x 3.64x For the purposes of calculating this ratio, earnings consist of income before income taxes and fixed charges. Fixed charges consist of interest on indebtedness, amortization of debt premium, the interest component of rentals and preferred stock dividend requirements. (1) Includes the effect of restructuring charge of $21.3 million pretax. The effect of this charge was to reduce the ratio of earnings to fixed charges. Had this non-recurring charge been excluded from the calculation, the ratio of earnings to fixed charges would have been 4.52x for the period ended Dec. 31, 1994 and 4.63x for the twelve months ended Sept. 30, 1995. (2) Includes the effect of the non-recurring $10-million pretax charge associated with a coal pricing settlement. The effect of this charge was to reduce the ratio of earnings to fixed charges. Had this non- recurring charge been excluded from the calculation, the ratio of earnings to fixed charges would have been 4.17x for the year ended Dec. 31, 1993. - 16 - EX-27 3
UT THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE TAMPA ELECTRIC COMPANY BALANCE SHEETS, STATEMENTS OF INCOME AND STATEMENTS OF CASH FLOWS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 0000096271 Tampa Electric Company 1000 DEC-31-1995 JAN-1-1995 SEP-30-1995 9-MOS PER-BOOK 2,144,291 194 227,404 199,227 0 2,571,116 118,358 713,598 207,272 1,039,228 0 54,956 583,038 0 0 72,700 26,030 0 0 0 795,164 2,571,116 840,957 56,467 652,717 709,184 131,773 7,119 138,892 31,261 107,631 2,676 104,955 70,983 28,559 264,603 0 0
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