Exhibit 99.1
FOR IMMEDIATE RELEASE
TECO ENERGY CHANGES HARDEE SALE ACCOUNTING TREATMENT
Change results in no impact on 2003 total results
TAMPA, March 2, 2004 — TECO Energy, Inc. (NYSE:TE) today issued revised 2003 results to reflect the treatment of the sale of Hardee Power Partners as a component of continuing, rather than discontinued, operations and to reflect the 2003 sale of Hardee in the fourth quarter, rather than the third quarter. Hardee Power Partners (HPP), which owns the 370-megawatt combined cycle Hardee Power Station, was sold by TECO Energy to a privately held third party in the fall of 2003. Total net income (loss), cash flows, and non-GAAP results from continuing operations for 2003 remain unchanged by the revised accounting treatment. The company and its independent auditors, in connection with the annual audit of the company’s financial results, reevaluated the accounting originally applied in the third quarter As a result, TECO Energy has revised its 2003 results to reflect the $34.6 million after-tax gain on the sale of Hardee in continuing operations for the fourth quarter and to keep the Hardee net income of $9.0 million through September 30 in full-year continuing operations.
The accounting change moves $43.6 million for the year from discontinued operations to continuing operations. After the change, the overall TECO Energy year-to-date loss remains unchanged at $909.4 million. The loss on a per-share basis remained $5.05. The year-to-date loss from continuing operations is now $14.7 million compared with the previously reported loss of $58.3 million. The loss from continuing operations on a per-share basis was $0.08, compared to the previously reported loss of $0.32 per share. Discontinued operations, (which previously included the Union and Gila River power stations, TECO Coalbed Methane, Prior Energy, TECO Gas Services and HPP) now report a loss for the year of $890.4 million, excluding HPP, compared to the previously reported loss of $846.8 million, or a loss of $4.95 on a per-share basis compared to the previously reported $4.71 per share. The table below compares the previously reported results to the current accounting treatment.
Results from Hardee Power Partners included in continuing operations in the third quarter consist of net income of $2.9 million from operations. Results in the fourth quarter include the $34.6 million after-tax gain on the sale. Full-year results include the gain and net income of $9.0 million from operations in the first nine months.
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| | | Three months ended Sept. 30
| | | Three months ended Dec. 31
| | | Twelve months ended Dec. 31
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($ million) | | Current
| | | Previous
| | | Current
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Net income (loss) | | $ | (19.5 | ) | | $ | 15.0 | | | $ | (790.7 | ) | | $ | (825.2 | ) | | $ | (909.4 | ) | | $ | (909.4 | ) |
Net income (loss) discontinued operations | | | — | | | $ | 37.4 | | | $ | (786.7 | ) | | $ | (786.6 | ) | | $ | (890.4 | ) | | $ | (846.8 | ) |
Cumulative effect of change in accounting principle | | $ | 3.2 | | | $ | 3.2 | | | | — | | | | — | | | $ | 4.3 | | | $ | 4.3 | |
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Net income (loss) continuing operations | | $ | (16.3 | ) | | $ | (19.2 | ) | | $ | (4.0 | ) | | $ | (38.6 | ) | | $ | (14.7 | ) | | $ | (58.3 | ) |
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(Per share data) | | | | | | | | | | | | | | | | | | | | | | | | |
Earnings (loss) per share | | $ | (0.11 | ) | | $ | (0.11 | ) | | $ | (4.21 | ) | | $ | (4.39 | ) | | $ | (5.05 | ) | | $ | (5.05 | ) |
Earnings (loss) per share discontinued operations | | | — | | | $ | 0.21 | | | $ | (4.19 | ) | | $ | (4.19 | ) | | $ | (4.95 | ) | | $ | (4.71 | ) |
Cumulative affect of change in accounting principle | | $ | 0.02 | | | $ | 0.02 | | | | — | | | | — | | | $ | 0.02 | | | $ | 0.02 | |
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Earnings (loss) per share continuing operations | | $ | (0.09 | ) | | $ | (0.08 | ) | | $ | (0.02 | ) | | $ | (0.20 | ) | | $ | (0.08 | ) | | $ | (0.32 | ) |
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TECO Energy’s non-GAAP adjusted earnings are presented below. Results from Tampa Electric, Peoples Gas, TECO Transport and TECO Coal are not impacted by these accounting changes and remain unchanged from previous reporting. The impact of these changes is limited to the “Other Unregulated Companies” segment and discontinued operations.
Non-GAAP Earnings
Non-GAAP net income from continuing operations is unchanged from the February 9, 2004 earnings release for the fourth quarter and full year 2003. Fourth-quarter net income from continuing operations, excluding the charges identified in the following table, and the gain on sale and the operating results of Hardee was $26.3 million, compared to $59.9 million for the 2002 period. In 2003, net income from continuing operations, excluding these items, was $164.8 million, compared with $305.8 million for 2002.
The table below reconciles quarterly and year-to-date net income after elimination of the specified charges, and the gain on the sale and the operating results of Hardee. Management believes that this non-GAAP presentation provides useful supplemental information by providing a measure that is more closely related to the company’s ongoing operations.
Net Income Reconciliation:
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($ millions) | | Three months
ended Dec. 31
| | | Twelve months
ended Dec. 31
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| | | 2003
| | | 2002
| | | 2003
| | | 2002
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GAAP net income (loss) | | $ | (790.7 | ) | | $ | 50.1 | | | $ | (909.4 | ) | | $ | 330.1 | |
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Add change in accounting | | | — | | | | — | | | | 4.3 | | | | — | |
Exclude discontinued operations | | | 786.7 | | | | 21.6 | | | | 890.4 | | | | 52.9 | |
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GAAP net income (loss) from continuing operations | | $ | (4.0 | ) | | $ | 28.5 | | | $ | (14.7 | ) | | $ | 277.2 | |
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Add unutilized tax credits | | | 9.7 | | | | — | | | | 9.7 | | | | — | |
Add TWG cancelled project write-offs | | | 9.0 | | | | — | | | | 9.0 | | | | — | |
Add TECO Solutions valuation | | | 7.9 | | | | — | | | | 7.9 | | | | — | |
Add corporate restructuring costs | | | 8.3 | | | | 7.0 | | | | 15.2 | | | | 10.9 | |
Add TMDP arbitration reserve | | | 0.8 | | | | — | | | | 26.7 | | | | — | |
Add 2002 debt extinguishment costs | | | — | | | | 20.9 | | | | — | | | | 20.9 | |
Add Hamakua FIN 46 accounting | | | 3.2 | | | | — | | | | 3.2 | | | | — | |
Add 2002 ECKG valuation adjustment | | | — | | | | 5.8 | | | | — | | | | 5.8 | |
Add FAS 142 adjustments | | | 12.8 | | | | — | | | | 74.0 | | | | — | |
Add turbine write-offs | | | 13.2 | | | | — | | | | 77.4 | | | | — | |
Subtract Hardee gain on sale | | | (34.6 | ) | | | — | | | | (34.6 | ) | | | — | |
Subtract Hardee operating results | | | — | | | | (2.3 | ) | | | (9.0 | ) | | | (9.0 | ) |
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Non-GAAP net income from continuing operations(1)(2) | | $ | 26.3 | | | $ | 59.9 | | | $ | 164.8 | | | $ | 305.8 | |
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| (1) | Excludes adoption of FAS 143, FAS 142 adjustments and items noted in table above. |
| (2) | A non-GAAP financial measure is a numerical measure of historical or future financial performance, financial position or cash flow that includes amounts, or is subject to adjustments that have the effect of including amounts, that are excluded from the most directly comparable measure GAAP so calculated and presented. |
Included with this release are revised financial statements for the three months ended September 30 and December 31, 2003 and for the twelve months ended December 31, 2003. TECO Energy will reflect these changes in its Annual Report on Form 10-K, which will be filed on or before March 15, 2004.
TECO Energy is a diversified energy-related holding company headquartered in Tampa. Its principal businesses are Tampa Electric, Peoples Gas System, TECO Wholesale Generation, TECO Transport, TECO Coal and TECO Solutions. Additional information on the company is available on its website,www.tecoenergy.com
SEPTEMBER 2003
Figures appearing in these statements are presented as general information and not in connection with any sale or offer to sell or solicitation of an offer to buy any securities, nor are they intended as a representation by the company of the value of its securities. All figures reported are subject to adjustments as the annual audit by independent accountants may determine to be necessary and to the explanatory notes affecting income and balance sheet accounts contained in the company’s Annual Report on Form 10-K. Reference should also be made to information contained in that and other reports filed by TECO Energy, Inc. and Tampa Electric Company with the Securities and Exchange Commission.
TECO ENERGY, Inc.
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
(All significant intercompany transactions have been eliminated in the consolidated financial statements.)
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| | | Three Months Ended
September 30,
| | | Nine Months Ended
September 30,
| | | Twelve Months Ended
September 30,
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(thousands)
| | 2003
| | | 2002
| | | 2003
| | | 2002
| | | 2003
| | | 2002
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Revenues | | $ | 947,989 | | | $ | 731,007 | | | $ | 2,343,676 | | | $ | 2,015,323 | | | $ | 3,001,099 | | | $ | 2,589,399 | |
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Expenses | | | | | | | | | | | | | | | | | | | | | | | | |
Operation | | | 660,184 | | | | 432,835 | | | | 1,543,128 | | | | 1,206,481 | | | | 1,973,678 | | | | 1,555,205 | |
Maintenance | | | 44,617 | | | | 34,240 | | | | 115,860 | | | | 115,130 | | | | 163,832 | | | | 159,336 | |
Asset Impairment | | | — | | | | — | | | | 104,125 | | | | — | | | | 103,154 | | | | — | |
Goodwill Impairment | | | — | | | | — | | | | 95,156 | | | | — | | | | 95,156 | | | | — | |
Restructuring Charges | | | 11,032 | | | | — | | | | 11,032 | | | | — | | | | 21,463 | | | | — | |
Depreciation | | | 104,364 | | | | 79,613 | | | | 280,585 | | | | 234,500 | | | | 349,492 | | | | 313,328 | |
Taxes, other than income | | | 46,215 | | | | 41,849 | | | | 133,463 | | | | 129,779 | | | | 176,868 | | | | 164,018 | |
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Total expenses | | | 866,412 | | | | 588,537 | | | | 2,283,349 | | | | 1,685,890 | | | | 2,883,643 | | | | 2,191,887 | |
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Income from operations | | $ | 81,577 | | | $ | 142,470 | | | $ | 60,327 | | | $ | 329,433 | | | $ | 117,456 | | | $ | 397,512 | |
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Other income (expense) | | | | | | | | | | | | | | | | | | | | | | | | |
Allowance for other funds used during construction | | | 3,929 | | | | 6,877 | | | | 15,665 | | | | 16,894 | | | | 23,698 | | | | 19,529 | |
Other income (expense), net | | | 5,889 | | | | 13,591 | | | | 52,990 | | | | 43,935 | | | | 71,383 | | | | 57,186 | |
Loss on Debt Extinguishment | | | — | | | | — | | | | — | | | | — | | | | (34,125 | ) | | | — | |
Loss on TPGC Joint Venture Termination | | | — | | | | — | | | | (153,933 | ) | | | — | | | | (153,933 | ) | | | — | |
Contingent Arbitration Reserve | | | (32,000 | ) | | | — | | | | (32,000 | ) | | | — | | | | (32,000 | ) | | | — | |
Earnings from equity investments | | | 1,384 | | | | 661 | | | | (2,014 | ) | | | (1,243 | ) | | | (6,775 | ) | | | 2,420 | |
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Total other income (expense) | | | (20,798 | ) | | | 21,129 | | | | (119,292 | ) | | | 59,586 | | | | (131,752 | ) | | | 79,135 | |
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Interest charges | | | | | | | | | | | | | | | | | | | | | | | | |
Interest expense | | | 103,578 | | | | 35,163 | | | | 239,343 | | | | 108,604 | | | | 275,391 | | | | 150,398 | |
Distribution on Preferred Securities | | | 9,988 | | | | 9,988 | | | | 29,963 | | | | 28,912 | | | | 39,950 | | | | 33,162 | |
Allowance for borrowed funds used during construction | | | (1,518 | ) | | | (2,655 | ) | | | (6,050 | ) | | | (6,524 | ) | | | (9,152 | ) | | | (7,542 | ) |
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Total interest charges | | | 112,048 | | | | 42,496 | | | | 263,256 | | | | 130,992 | | | | 306,189 | | | | 176,018 | |
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Income before provision for income taxes | | | (51,269 | ) | | | 121,103 | | | | (322,221 | ) | | | 258,027 | | | | (320,485 | ) | | | 300,629 | |
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(Benefit)Provision for income taxes | | | (23,681 | ) | | | 8,301 | | | | (149,966 | ) | | | (5,601 | ) | | | (182,777 | ) | | | (22,116 | ) |
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Net income from continuing operations before minority interest | | | (27,588 | ) | | | 112,802 | | | | (172,255 | ) | | | 263,628 | | | | (137,708 | ) | | | 322,745 | |
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Minority Interest | | | 11,275 | | | | — | | | | 34,691 | | | | — | | | | 34,691 | | | | — | |
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Net income from continuing operations | | | (16,313 | ) | | | 112,802 | | | | (137,564 | ) | | | 263,628 | | | | (103,017 | ) | | | 322,745 | |
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Discontinued Operations | | | | | | | | | | | | | | | | | | | | | | | | |
Income from discontinued operations | | | — | | | | 3,765 | | | | 38,232 | | | | 7,471 | | | | 56,853 | | | | 9,468 | |
Income tax expense (benefit)-discontinued operations | | | — | | | | (2,350 | ) | | | 15,062 | | | | (8,927 | ) | | | 18,146 | | | | (12,629 | ) |
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Net income from discontinued operations | | | — | | | | 6,115 | | | | 23,170 | | | | 16,398 | | | | 38,707 | | | | 22,097 | |
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Cumulative effect of a change in accounting principle, net of tax | | | (3,233 | ) | | | — | | | | (4,344 | ) | | | — | | | | (4,344 | ) | | | — | |
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Net Income | | $ | (19,546 | ) | | $ | 118,917 | | | $ | (118,738 | ) | | $ | 280,026 | | | $ | (68,654 | ) | | $ | 344,842 | |
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Average common shares outstanding during the period (thousands) | | | 179,469 | | | | 156,126 | | | | 177,469 | | | | 146,432 | | | | 175,566 | | | | 144,579 | |
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Earnings per average common share outstanding: | | | | | | | | | | | | | | | | | | | | | | | | |
Earnings per share from continuing operations — basic | | $ | 0.09 | | | $ | 0.72 | | | $ | (0.78 | ) | | $ | 1.80 | | | $ | (0.59 | ) | | $ | 2.23 | |
Earnings per share — basic | | $ | (0.11 | ) | | $ | 0.76 | | | $ | (0.67 | ) | | $ | 1.91 | | | $ | (0.39 | ) | | $ | 2.38 | |
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Earnings per share from continuing operations — diluted | | $ | 0.09 | | | $ | 0.72 | | | $ | (0.78 | ) | | $ | 1.80 | | | $ | (0.59 | ) | | $ | 2.23 | |
Earnings per share — diluted | | $ | (0.11 | ) | | $ | 0.76 | | | $ | (0.67 | ) | | $ | 1.91 | | | $ | (0.39 | ) | | $ | 2.38 | |
TECO ENERGY, Inc.
CONSOLIDATED BALANCE SHEETS (Unaudited)
(All significant intercompany transactions have been eliminated in the consolidated financial statements.)
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(thousands)
| | Sep. 30, 2003
| | | Dec. 31, 2002
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ASSETS | | | | | | | | |
Current assets | | | | | | | | |
Cash and cash equivalents | | $ | 409,154 | | | $ | 411,142 | |
Restricted cash | | | 113,858 | | | | 1,624 | |
Short-term investments | | | 15,826 | | | | 6 | |
Receivables, less allowance for uncollectibles | | | 439,104 | | | | 422,655 | |
Note receivable | | | — | | | | 235,071 | |
Inventories, at average cost | | | | | | | | |
Fuel | | | 96,855 | | | | 113,724 | |
Materials and supplies | | | 96,862 | | | | 96,116 | |
Current derivative asset | | | 12,595 | | | | 12,442 | |
Prepayments and other current assets | | | 68,741 | | | | 30,426 | |
Assets held for sale, current | | | 21,143 | | | | — | |
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Total current assets | | | 1,274,138 | | | | 1,323,206 | |
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Property, plant and equipment | | | | | | | | |
Utility plant in service-electric | | | 7,719,911 | | | | 5,054,354 | |
Utility plant in service-gas | | | 768,513 | | | | 746,731 | |
Construction work in progress | | | 1,177,406 | | | | 1,556,838 | |
Other property | | | 851,411 | | | | 857,403 | |
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| | | | 10,517,241 | | | | 8,215,326 | |
Accumulated depreciation | | | (2,341,410 | ) | | | (2,310,653 | ) |
Valuation adjustment | | | — | | | | — | |
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Total property, plant and equipment, net | | | 8,175,831 | | | | 5,904,673 | |
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Other assets | | | | | | | | |
Other investments | | | 697,273 | | | | 845,290 | |
Investment in unconsolidated affiliates | | | 344,363 | | | | 149,169 | |
Intangible asset | | | 11,346 | | | | 11,139 | |
Goodwill | | | 100,238 | | | | 193,660 | |
Long term derivative asset | | | 5,169 | | | | 122 | |
Regulatory asset | | | 184,350 | | | | 163,234 | |
Deferred income taxes | | | 507,548 | | | | 340,233 | |
Deferred charges and other assets | | | 170,989 | | | | 147,711 | |
Assets held for sale | | | 141,466 | | | | — | |
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Total other assets | | | 2,162,742 | | | | 1,850,558 | |
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Total assets | | $ | 11,612,711 | | | $ | 9,078,437 | |
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LIABILITIES AND CAPITAL | | | | | | | | |
Current liabilities | | | | | | | | |
Long-term debt due within one year | | | | | | | | |
Recourse | | $ | 6,050 | | | $ | 106,359 | |
Non-recourse | | | 1,442,198 | | | | 20,759 | |
Notes payable | | | 397,500 | | | | 360,500 | |
Accounts payable | | | 417,342 | | | | 377,426 | |
Current derivative liability | | | 44,770 | | | | 3,948 | |
Customer deposits | | | 98,958 | | | | 94,631 | |
Interest accrued | | | 97,277 | | | | 49,774 | |
Taxes accrued | | | 13,059 | | | | 95,845 | |
Liabilities associated with held for sale, current | | | 16,460 | | | | — | |
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Total current liabilities | | | 2,533,614 | | | | 1,109,242 | |
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Other liabilities | | | | | | | | |
Deferred income taxes | | | 549,158 | | | | 495,007 | |
Investment tax credits | | | 23,988 | | | | 27,496 | |
Accumulated reserve for cost of removal | | | — | | | | 440,633 | |
Regulatory liability | | | 555,651 | | | | 98,079 | |
Long term derivative liability | | | 43,044 | | | | 198 | |
Other deferred credits and other liabilities | | | 275,262 | | | | 321,459 | |
Liabilities associated with assets held for sale | | | 98,291 | | | | — | |
Long-term debt, less amount due within one year | | | | | | | | |
Recourse | | | 3,658,724 | | | | 3,112,714 | |
Non-recourse | | | 758,969 | | | | 211,622 | |
Preferred company securities | | | 649,125 | | | | — | |
Minority interest | | | (126 | ) | | | 1,179 | |
Preferred company securities | | | — | | | | 649,125 | |
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Capital | | | | | | | | |
Common equity (outstanding 187,799,685 shares in 2003 and 175,841,512 shares in 2002) | | | 2,487,700 | | | | 2,642,776 | |
Unearned compensation | | | (20,689 | ) | | | (31,093 | ) |
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Total liabilities and capital | | $ | 11,612,711 | | | $ | 9,078,437 | |
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Book value per share | | $ | 13.25 | | | $ | 15.03 | |
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TECO ENERGY, Inc.
SEGMENT INFORMATION (Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended
September 30,
| | | Nine Months Ended
September 30,
| | | Twelve Months Ended
September 30,
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(in millions)
| | 2003
| | | 2002
| | | 2003
| | | 2002
| | | 2003
| | | 2002
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Revenues (1) | | | | | | | | | | | | | | | | | | | | | | | | |
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Tampa Electric | | $ | 456.2 | | | $ | 439.1 | | | $ | 1,206.0 | | | $ | 1,198.1 | | | $ | 1,591.1 | | | $ | 1,517.3 | |
Peoples Gas | | | 103.2 | | | | 74.4 | | | | 324.9 | | | | 237.1 | | | | 405.9 | | | | 302.9 | |
TECO Power Services | | | 266.5 | | | | 98.5 | | | | 447.8 | | | | 229.2 | | | | 528.5 | | | | 287.1 | |
TECO Transport | | | 63.9 | | | | 62.8 | | | | 195.5 | | | | 187.7 | | | | 262.5 | | | | 255.9 | |
TECO Coal | | | 72.3 | | | | 82.9 | | | | 225.9 | | | | 244.1 | | | | 298.9 | | | | 326.0 | |
Other unregulated companies | | | 29.2 | | | | 24.9 | | | | 85.5 | | | | 84.3 | | | | 108.8 | | | | 114.6 | |
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| | | | 991.3 | | | | 782.6 | | | | 2,485.6 | | | | 2,180.5 | | | | 3,195.7 | | | | 2,803.8 | |
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Other/eliminations | | | (43.3 | ) | | | (51.6 | ) | | | (141.9 | ) | | | (165.2 | ) | | | (194.6 | ) | | | (214.4 | ) |
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Consolidated revenues | | $ | 948.0 | | | $ | 731.0 | | | $ | 2,343.7 | | | $ | 2,015.3 | | | $ | 3,001.1 | | | $ | 2,589.4 | |
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Net income (2) | | | | | | | | | | | | | | | | | | | | | | | | |
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Tampa Electric (3) | | $ | 53.3 | | | $ | 63.1 | | | $ | 83.8 | | | $ | 144.5 | | | $ | 111.1 | | | $ | 173.1 | |
Peoples Gas | | | 2.9 | | | | 3.1 | | | | 19.6 | | | | 17.3 | | | | 26.5 | | | | 23.2 | |
TECO Power Services (4) | | | (59.3 | ) | | | 25.6 | | | | (257.3 | ) | | | 39.4 | | | | (262.6 | ) | | | 41.5 | |
TECO Transport | | | 2.6 | | | | 4.7 | | | | 12.4 | | | | 15.8 | | | | 17.6 | | | | 21.8 | |
TECO Coal | | | 18.4 | | | | 21.7 | | | | 64.9 | | | | 58.8 | | | | 82.6 | | | | 77.2 | |
Other unregulated companies | | | — | | | | (1.0 | ) | | | (1.0 | ) | | | 3.6 | | | | 2.2 | | | | 5.2 | |
Other/financing/eliminations (5) | | | (34.2 | ) | | | (4.4 | ) | | | (60.0 | ) | | | (15.8 | ) | | | (80.4 | ) | | | (19.3 | ) |
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Net income from continuing operations | | | (16.3 | ) | | | 112.8 | | | | (137.6 | ) | | | 263.6 | | | | (103.0 | ) | | | 322.7 | |
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Discontinued operations (6) | | | — | | | | 6.1 | | | | 23.2 | | | | 16.4 | | | | 38.7 | | | | 22.1 | |
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Net income before cumulative effect of change in accounting principle | | | (16.3 | ) | | | 118.9 | | | | (114.4 | ) | | | 280.0 | | | | (64.3 | ) | | | 344.8 | |
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Cumulative effect of change in accounting principle, net of tax (7) | | | (3.2 | ) | | | — | | | | (4.3 | ) | | | — | | | | (4.3 | ) | | | — | |
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Net income (including internally allocated finance costs) | | $ | (19.5 | ) | | $ | 118.9 | | | $ | (118.7 | ) | | $ | 280.0 | | | $ | (68.6 | ) | | $ | 344.8 | |
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Average common shares outstanding during the period (thousands) | | | 179,469 | | | | 156,126 | | | | 177,469 | | | | 146,432 | | | | 175,566 | | | | 144,579 | |
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Notes:
| 1) | Revenues for all periods reflect the presentation of energy marketing related revenues on a net basis based on the deliberation of EITF 02-03, and the reclassification of TECO Coalbed Methane to Discontinued operations. |
| 2) | Segment net income is reported on a basis that includes internally allocated financing costs. |
| 3) | Net income for the 9-month and 12-month periods ended Sept. 30, 2003 for Tampa Electric included a $48.9 million after tax asset impairment charge related to turbine purchase cancellations. |
| 4) | Net income for the 3 periods ended Sept. 30, 2003 for TECO Power Services included a $25.9 million after tax charge associated with the recognition of a reserve for an arbitration award against TMDP related to its indirect ownership interest of the Commonwealth Chesapeake Power Station. Net income for the 9-month and 12-month periods ended Sept. 30, 2003 for TPS also included a $61.2 million after tax charge for goodwill impairments, a $94.7 million after tax charge related to the partnership termination and resulting consolidation of the Union and Gila River stations and a $15.3 million after tax asset impairment charge for turbine purchase cancellations. In addition to all these charges, the 12-month period ended Sept. 30, 2003 also included a $5.8 million after tax charge related to the sale of TPS’ ECKG investments recorded in the fourth quarter of 2002. |
| 5) | Net income for the 3-month period ended Sept. 30, 2003 for Other/financing/eliminations included the deferral of $18.0 million of tax credits related to the production of synthetic fuel at TECO Coal. The 9-month and 12-month periods ended Sept. 30, 2003 included the deferral of $28.5 million of tax credits primarily due to the uncertainty created by the IRS’ suspension of issuance of private letter rulings. The 12-month period ended Sept. 30, 2003 also included a $20.9 million after tax charge at TECO Energy for debt extinguishment. |
| 6) | The 9-month and 12-month periods ended Sept. 30, 2003 included an after-tax gain on the sale of TECO Coalbed Methane’s assets of $22.7 million and $30.4 million, respectively. |
| 7) | The 3 periods ended Sept. 30, 2003 included a $3.2 million after-tax charge for the cumulative effect of an accounting change to reflect the implementation of FAS 150,Accounting for Certain Financial Instruments with Characteristics of both Liabilities and Equity. The 9-month and 12-month periods ended Sept. 30, 2003 also included a $1.1 million after-tax charge for the cumulative effect of an accounting change to reflect the adoption of FAS 143,Accountingfor Asset Retirement Obligations. |
DECEMBER 2003
Figures appearing in these statements are presented as general information and not in connection with any sale or offer to sell or solicitation of an offer to buy any securities, nor are they intended as a representation by the company of the value of its securities. All figures reported are subject to adjustments as the annual audit by independent accountants may determine to be necessary and to the explanatory notes affecting income and balance sheet accounts contained in the company’s Annual Report on Form 10-K. Reference should also be made to information contained in that and other reports filed by TECO Energy, Inc. and Tampa Electric Company with the Securities and Exchange Commission.
TECO ENERGY, Inc.
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
(All significant intercompany transactions have been eliminated in the consolidated financial statements.)
| | | | | | | | | | | | | | | | |
| | | Three Months Ended
December 31,
| | | Year-To-Date December 31,
| |
(thousands)
| | 2003
| | | 2002
| | | 2003
| | | 2002
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Revenues | | $ | 633,763 | | | $ | 665,247 | | | $ | 2,739,965 | | | $ | 2,664,924 | |
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Expenses | | | | | | | | | | | | | | | | |
Operation | | | 444,809 | | | | 428,791 | | | | 1,773,882 | | | | 1,626,843 | |
Maintenance | | | 46,600 | | | | 47,004 | | | | 152,401 | | | | 162,134 | |
Asset Impairment | | | 40,937 | | | | — | | | | 145,062 | | | | — | |
Goodwill and Intangible Asset Impairment | | | 27,506 | | | | — | | | | 122,662 | | | | — | |
Restructuring Charges | | | 13,604 | | | | 11,566 | | | | 24,636 | | | | 17,837 | |
Depreciation | | | 81,077 | | | | 76,574 | | | | 325,987 | | | | 303,233 | |
Taxes, other than income | | | 43,067 | | | | 43,346 | | | | 175,222 | | | | 173,065 | |
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Total expenses | | | 697,600 | | | | 607,281 | | | | 2,719,852 | | | | 2,283,112 | |
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Income from operations | | | (63,837 | ) | | | 57,966 | | | | 20,113 | | | | 381,812 | |
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Other income (expense) | | | | | | | | | | | | | | | | |
Allowance for other funds used during construction | | | 4,112 | | | | 8,034 | | | | 19,777 | | | | 24,928 | |
Other income (expense), net | | | 72,939 | | | | (2,479 | ) | | | 114,548 | | | | 18,973 | |
Loss on Debt Extinguishment | | | — | | | | (34,125 | ) | | | — | | | | (34,125 | ) |
Contingent Arbitration Reserve | | | — | | | | — | | | | (32,000 | ) | | | — | |
Earnings from equity investments | | | (7,043 | ) | | | 3,172 | | | | (411 | ) | | | 5,500 | |
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Total other income (expense) | | | 70,008 | | | | (25,398 | ) | | | 101,914 | | | | 15,276 | |
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Interest charges | | | | | | | | | | | | | | | | |
Interest expense | | | 81,572 | | | | 33,905 | | | | 288,362 | | | | 142,311 | |
Distribution on Preferred Securities | | | 9,987 | | | | 9,988 | | | | 39,950 | | | | 38,900 | |
Allowance for borrowed funds used during construction | | | (1,588 | ) | | | (3,103 | ) | | | (7,638 | ) | | | (9,627 | ) |
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Total interest charges | | | 89,971 | | | | 40,790 | | | | 320,674 | | | | 171,584 | |
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Income before provision for income taxes | | | (83,800 | ) | | | (8,222 | ) | | | (198,647 | ) | | | 225,504 | |
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(Benefit)Provision for income taxes | | | (65,670 | ) | | | (36,675 | ) | | | (135,150 | ) | | | (51,673 | ) |
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Net income from continuing operations before minority interest | | | (18,130 | ) | | | 28,453 | | | | (63,497 | ) | | | 277,177 | |
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Minority Interest | | | 14,110 | | | | — | | | | 48,801 | | | | — | |
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Net income from continuing operations | | | (4,020 | ) | | | 28,453 | | | | (14,696 | ) | | | 277,177 | |
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Discontinued Operations | | | | | | | | | | | | | | | | |
Income from discontinued operations | | | (1,225,498 | ) | | | 28,572 | | | | (1,394,640 | ) | | | 60,344 | |
Income tax expense (benefit)-discontinued operations | | | (438,850 | ) | | | 6,941 | | | | (504,274 | ) | | | 7,411 | |
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Net income from discontinued operations | | | (786,648 | ) | | | 21,631 | | | | (890,366 | ) | | | 52,933 | |
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Cumulative effect of a change in accounting principle, net of tax | | | — | | | | — | | | | (4,344 | ) | | | — | |
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Net Income | | $ | (790,668 | ) | | $ | 50,084 | | | $ | (909,406 | ) | | $ | 330,110 | |
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Average common shares outstanding during the period (thousands) | | | 187,829 | | | | 170,877 | | | | 179,862 | | | | 153,202 | |
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Earnings per average common share outstanding: | | | | | | | | | | | | | | | | |
Earnings per share from continuing operations — basic | | $ | (0.02 | ) | | $ | 0.17 | | | $ | (0.08 | ) | | $ | 1.81 | |
Earnings per share — basic | | $ | (4.21 | ) | | $ | 0.29 | | | $ | (5.05 | ) | | $ | 2.15 | |
Earnings per share from continuing operations — diluted | | $ | (0.02 | ) | | $ | 0.17 | | | $ | (0.08 | ) | | $ | 1.81 | |
Earnings per share — diluted | | $ | (4.21 | ) | | $ | 0.29 | | | $ | (5.05 | ) | | $ | 2.15 | |
TECO ENERGY, Inc.
CONSOLIDATED BALANCE SHEETS (Unaudited)
(All significant intercompany transactions have been eliminated in the consolidated financial statements.)
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(thousands)
| | December 31,
2003
| | | December 31,
2002
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ASSETS | | | | | | | | |
Current assets | | | | | | | | |
Cash and cash equivalents | | $ | 108,228 | | | $ | 411,142 | |
Restricted cash | | | 51,373 | | | | 1,624 | |
Short-term investments | | | 6 | | | | 6 | |
Receivables, less allowance for uncollectibles | | | 280,365 | | | | 422,655 | |
Note receivable | | | — | | | | 235,071 | |
Inventories, at average cost | | | | | | | | |
Fuel | | | 88,215 | | | | 113,724 | |
Materials and supplies | | | 82,522 | | | | 96,116 | |
Current derivative assets | | | 21,061 | | | | 12,442 | |
Prepayments and other current assets | | | 68,653 | | | | 30,426 | |
Assets held for sale, current | | | 169,358 | | | | — | |
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Total current assets | | | 869,781 | | | | 1,323,206 | |
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Property, plant and equipment | | | | | | | | |
Utility plant in service-electric | | | 5,245,634 | | | | 5,054,354 | |
Utility plant in service-gas | | | 778,159 | | | | 746,731 | |
Construction work in progress | | | 1,193,252 | | | | 1,556,838 | |
Other property | | | 844,267 | | | | 857,403 | |
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| | | | 8,061,312 | | | | 8,215,326 | |
Accumulated depreciation | | | (2,361,161 | ) | | | (2,310,653 | ) |
Valuation adjustment | | | (21,118 | ) | | | — | |
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Total property, plant and equipment, net | | | 5,679,033 | | | | 5,904,673 | |
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Other assets | | | | | | | | |
Other investments | | | 16,509 | | | | 845,290 | |
Investment in unconsolidated affiliates | | | 343,476 | | | | 149,169 | |
Intangible assets | | | 4,930 | | | | 11,139 | |
Goodwill | | | 71,188 | | | | 193,660 | |
Long term derivative assets | | | — | | | | 122 | |
Regulatory assets | | | 188,305 | | | | 163,234 | |
Deferred income taxes | | | 1,051,509 | | | | 340,233 | |
Deferred charges and other assets | | | 160,179 | | | | 147,711 | |
Assets held for sale | | | 2,077,438 | | | | — | |
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Total other assets | | | 3,913,534 | | | | 1,850,558 | |
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Total assets | | $ | 10,462,348 | | | $ | 9,078,437 | |
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LIABILITIES AND CAPITAL | | | | | | | | |
Current liabilities | | | | | | | | |
Long-term debt due within one year | | | | | | | | |
Recourse | | $ | 6,050 | | | $ | 106,359 | |
Non-recourse | | | 25,496 | | | | 20,759 | |
Notes payable | | | 37,500 | | | | 360,500 | |
Accounts payable | | | 313,732 | | | | 377,426 | |
Current derivative liabilities | | | 12,045 | | | | 3,948 | |
Customer deposits | | | 101,405 | | | | 94,631 | |
Interest accrued | | | 56,634 | | | | 49,774 | |
Taxes accrued | | | 149,935 | | | | 95,845 | |
Liabilities associated with assets held for sale, current | | | 1,544,368 | | | | — | |
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Total current liabilities | | | 2,247,165 | | | | 1,109,242 | |
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Other liabilities | | | | | | | | |
Deferred income taxes | | | 498,028 | | | | 495,007 | |
Investment tax credits | | | 22,819 | | | | 27,496 | |
Accumulated reserve for cost of removal | | | 0 | | | | 440,633 | |
Regulatory liabilities | | | 560,227 | | | | 98,079 | |
Long term derivative liabilities | | | — | | | | 198 | |
Other deferred credits and other liabilities | | | 364,060 | | | | 321,459 | |
Liabilities associated with assets held for sale | | | 697,846 | | | | — | |
Long-term debt, less amount due within one year | | | | | | | | |
Recourse | | | 3,660,284 | | | | 3,112,714 | |
Non-recourse | | | 83,237 | | | | 211,622 | |
Debt related to preferred securities | | | 649,125 | | | | — | |
Minority interest | | | 1,852 | | | | 1,179 | |
Preferred securities | | | — | | | | 649,125 | |
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Capital | | | | | | | | |
Common equity (outstanding 187,792,475 shares in 2003 and 175,841,512 shares in 2002) | | | 1,692,347 | | | | 2,642,776 | |
Unearned compensation | | | (14,642 | ) | | | (31,093 | ) |
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Total liabilities and capital | | $ | 10,462,348 | | | $ | 9,078,437 | |
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Book value per share | | $ | 9.01 | | | $ | 15.03 | |
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TECO ENERGY, Inc.
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(All significant intercompany transactions have been eliminated in the consolidated financial statements.)
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| | | Three Months Ended
December 31,
| | | Year-To-Date December 31,
| |
(thousands)
| | 2003
| | | 2002
| | | 2003
| | | 2002
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Cash flows from operating activities | | | | | | | | | | | | | | | | |
Net income | | $ | (790,668 | ) | | $ | 50,084 | | | $ | (909,406 | ) | | $ | 330,110 | |
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Adjustments to reconcile net income to net cash: | | | | | | | | | | | | | | | | |
Depreciation | | | 111,190 | | | | 76,574 | | | | 382,021 | | | | 303,233 | |
Deferred income taxes | | | (574,517 | ) | | | (29,588 | ) | | | (709,356 | ) | | | (96,471 | ) |
Investment tax credit, net | | | (1,169 | ) | | | (1,431 | ) | | | (4,677 | ) | | | (4,815 | ) |
Allowance for funds used during construction | | | (5,700 | ) | | | (11,137 | ) | | | (27,415 | ) | | | (34,555 | ) |
Amortization of unearned compensation | | | 5,683 | | | | 5,285 | | | | 18,278 | | | | 13,936 | |
Cumulative effect of a change in accounting principle, pretax | | | — | | | | — | | | | 7,064 | | | | — | |
Gain on sale of business/assets, pretax | | | (65,261 | ) | | | (15,106 | ) | | | (147,534 | ) | | | (15,106 | ) |
Equity in earnings of unconsolidated affiliates | | | 8,060 | | | | 11,359 | | | | 13,771 | | | | 15,306 | |
Minority loss | | | (14,110 | ) | | | — | | | | (48,801 | ) | | | — | |
Asset impairment, pretax | | | 1,226,616 | | | | — | | | | 1,330,741 | | | | — | |
Goodwill impairment and intangible asset impairment, pretax | | | 27,506 | | | | — | | | | 122,662 | | | | — | |
Contingent arbitration reserve, pretax | | | — | | | | — | | | | 32,000 | | | | — | |
Loss on TPGC transaction, pretax | | | — | | | | — | | | | 153,933 | | | | — | |
Deferred recovery clause | | | (2,771 | ) | | | (2,985 | ) | | | (27,266 | ) | | | 72,210 | |
Refunded to customers | | | — | | | | (254 | ) | | | — | | | | (6,382 | ) |
Receivables, less allowance for uncollectibles | | | 78,906 | | | | 26,850 | | | | 96,422 | | | | (64,098 | ) |
Inventories | | | (12,498 | ) | | | (4,883 | ) | | | 7,003 | | | | (39,369 | ) |
Prepayments and other current assets | | | 20,231 | | | | (1,027 | ) | | | (16,534 | ) | | | 6,272 | |
Taxes accrued | | | 73,441 | | | | (6,054 | ) | | | 34,498 | | | | 24,114 | |
Interest accrued | | | (25,626 | ) | | | (29,825 | ) | | | (60,705 | ) | | | 14,191 | |
Accounts payable | | | (16,966 | ) | | | 68,973 | | | | (17,453 | ) | | | 98,255 | |
Other | | | 16,444 | | | | 19,572 | | | | 99,388 | | | | 38,916 | |
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| | | | 58,791 | | | | 156,407 | | | | 328,634 | | | | 655,747 | |
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Cash flows from investing activities | | | | | | | | | | | | | | | | |
Capital expenditures | | | (130,118 | ) | | | (273,429 | ) | | | (590,608 | ) | | | (1,065,179 | ) |
Allowance for funds used during construction | | | 5,700 | | | | 11,137 | | | | 27,415 | | | | 34,555 | |
Purchase of minority interest | | | — | | | | — | | | | — | | | | (9,928 | ) |
Net proceeds from sale of assets | | | 20,757 | | | | 103,276 | | | | 188,779 | | | | 103,276 | |
Net proceeds from sale of business | | | 107,718 | | | | — | | | | 107,718 | | | | — | |
Restricted cash | | | 5 | | | | — | | | | (63,453 | ) | | | — | |
Investment in unconsolidated affiliates | | | (1,444 | ) | | | (7,682 | ) | | | (30,627 | ) | | | (7,605 | ) |
Other non-current investments | | | 4,284 | | | | (183,971 | ) | | | (32,414 | ) | | | (715,637 | ) |
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|
|
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|
|
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|
|
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|
|
|
| | | | 6,902 | | | | (350,669 | ) | | | (393,190 | ) | | | (1,660,518 | ) |
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Cash flows from financing activities | | | | | | | | | | | | | | | | |
Dividends | | | (35,686 | ) | | | (62,355 | ) | | | (165,225 | ) | | | (215,795 | ) |
Common stock | | | 800 | | | | 209,686 | | | | 136,632 | | | | 572,574 | |
Proceeds from long-term debt | | | 5,618 | | | | 373,871 | | | | 655,060 | | | | 1,758,396 | |
Minority interest | | | 12,153 | | | | — | | | | 44,371 | | | | — | |
Restricted cash | | | 26,368 | | | | — | | | | (5,850 | ) | | | — | |
Repayment of long-term debt | | | (10,790 | ) | | | (227,843 | ) | | | (526,482 | ) | | | (949,735 | ) |
Settlement of joint venture termination obligation | | | — | | | | — | | | | (33,534 | ) | | | — | |
Net increase (decrease) in short-term debt | | | (360,000 | ) | | | 129,682 | | | | (323,000 | ) | | | (278,400 | ) |
Issuance of preferred securities | | | — | | | | — | | | | — | | | | 435,651 | |
Equity contract adjustment payments | | | (5,082 | ) | | | (5,083 | ) | | | (20,330 | ) | | | (15,247 | ) |
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| | | | (366,619 | ) | | | 417,958 | | | | (238,358 | ) | | | 1,307,444 | |
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Net increase (decrease) in cash and cash equivalents | | | (300,926 | ) | | | 223,696 | | | | (302,914 | ) | | �� | 302,673 | |
Cash and cash equivalents at beginning of period | | | 409,154 | | | | 187,446 | | | | 411,142 | | | | 108,469 | |
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Cash and cash equivalents at end of period | | $ | 108,228 | | | $ | 411,142 | | | $ | 108,228 | | | $ | 411,142 | |
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TECO ENERGY, Inc.
SEGMENT INFORMATION (Unaudited)
| | | | | | | | | | | | | | | | |
| | | Three Months Ended
December 31,
| | | Twelve Months Ended
December 31,
| |
(in millions)
| | 2003
| | | 2002
| | | 2003
| | | 2002
| |
Revenues (1) | | | | | | | | | | | | | | | | |
| | | | |
Tampa Electric | | $ | 380.1 | | | $ | 385.1 | | | $ | 1,586.1 | | | $ | 1,583.2 | |
Peoples Gas | | | 83.5 | | | | 81.0 | | | | 408.4 | | | | 318.1 | |
TECO Wholesale Generation-Merchant | | | 12.0 | | | | 29.0 | | | | 95.9 | | | | 111.1 | |
TECO Transport | | | 65.1 | | | | 66.9 | | | | 260.6 | | | | 254.6 | |
TECO Coal | | | 70.4 | | | | 73.0 | | | | 296.3 | | | | 317.1 | |
Other unregulated companies | | | 52.0 | | | | 82.9 | | | | 263.5 | | | | 297.7 | |
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| | | | 663.1 | | | | 717.9 | | | | 2,910.8 | | | | 2,881.8 | |
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Other/eliminations | | | (29.3 | ) | | | (52.7 | ) | | | (170.8 | ) | | | (216.9 | ) |
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Consolidated revenues | | $ | 633.8 | | | $ | 665.2 | | | $ | 2,740.0 | | | $ | 2,664.9 | |
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Net income (1) (2) | | | | | | | | | | | | | | | | |
| | | | |
Tampa Electric (3) | | $ | 15.1 | | | $ | 27.3 | | | $ | 98.9 | | | $ | 171.8 | |
Peoples Gas (4) | | | 4.9 | | | | 6.9 | | | | 24.5 | | | | 24.2 | |
TECO Wholesale Generation-Merchant (5) | | | (27.5 | ) | | | (8.2 | ) | | | (147.6 | ) | | | (7.9 | ) |
TECO Transport | | | 2.9 | | | | 5.2 | | | | 15.3 | | | | 21.0 | |
TECO Coal (6) | | | 12.2 | | | | 17.6 | | | | 77.1 | | | | 76.4 | |
Other unregulated companies (7) | | | (11.9 | ) | | | — | | | | (5.4 | ) | | | 27.8 | |
Other/financing/eliminations (8) | | | 0.3 | | | | (20.3 | ) | | | (77.5 | ) | | | (36.1 | ) |
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Net income from continuing operations | | | (4.0 | ) | | | 28.5 | | | | (14.7 | ) | | | 277.2 | |
| | | | |
Discontinued operations (1) (9) | | | (786.7 | ) | | | 21.6 | | | | (890.4 | ) | | | 52.9 | |
| | | | |
Cumulative effect of change in accounting principle, net of tax (10) | | | — | | | | — | | | | (4.3 | ) | | | — | |
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Net income | | $ | (790.7 | ) | | $ | 50.1 | | | $ | (909.4 | ) | | $ | 330.1 | |
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Average common shares outstanding during the period (thousands) | | | 187,829 | | | | 170,877 | | | | 179,862 | | | | 153,202 | |
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Notes:
| 1) | All periods have been adjusted to reflect the reclassification of results from operations to discontinued operations for: the Union and Gila River projects (formerly part of TWG Merchant); and TECO Coalbed Methane, Prior Energy and TECO Gas Services (all formerly part of Other unregulated). |
| 2) | Segment net income is reported on a basis that includes internally allocated financing costs. |
| 3) | Net income for the 3-month and 12-month periods ended Dec. 31, 2003 included after tax charges of $4.8 million and $6.1 million, respectively, for restructuring activities. The 12-month period ended Dec. 31, 2003 also included a $48.9 million after tax asset impairment related to turbine purchase cancellations. After tax restructuring charges included in the 3-month and 12-month periods ended Dec. 31, 2002 were $6.4 million and $10.3 million, respectively. |
| 4) | Net income for the 3-month and 12-month periods ended Dec. 31, 2003 included after tax charges of $1.5 million and $2.6 million, respectively, to record expenses associated with restructuring activities. |
| 5) | Net income for the 12-month period ended Dec. 31, 2003 for TWG Merchant operations included a $0.3 million after tax charge for expenses associated with restructuring activities, $61.2 million after tax charges to record goodwill impairments, and a $26.7 million after tax charge associated with the recording of a reserve for an arbitration award against TMDP related to its indirect ownership interest of Commonwealth Chesapeake Power Station. The 3-month and 12-month periods ended Dec. 31, 2002 included a $5.8 million after tax charge related to the sale of its ECKG investments and $0.6 million for restructing costs. |
| 6) | Net income for the 3-month and 12-month periods ended Dec. 31, 2003 included a reversal of $7.0 million of tax credits which were not usable due to insufficient taxable income. |
| 7) | Other unregulated net income for the 3-month and 12-month period ended Dec. 31, 2003 included after tax charges of $49.5 million and $67.7 million, respectively, related to restructuring costs, asset impairment and goodwill impairments, tax credit reversals and other non-recurring charges, and a $34.6 million after-tax gain on the sale of Hardee Power Partners. |
| 8) | Net income for the 3-month period ended Dec. 31, 2003 for Other/financing/eliminations included the reversal of $28.5 million of deferred tax credits from previous quarters, and $7.8 million for unallocable interest expense related to TPGC discontinued operations. The 12-month period ended Dec. 31, 2003 included $25.5 million of unallocable TPGC related interest. The 12-month per ended Dec. 31, 2002 included a $20.9 million after tax charge at TECO Energy for debt extinguishment. |
| 9) | Net income for the 3-month and 12-month periods ended Dec. 31, 2003 included $762.0 million in after-tax asset impairment charges associated with the designation of the TPGC projects as discontinued operations. The 12-months ended Dec. 31, 2003 also included an after-tax charge of $94.7 million related to the partnership termination and resulting consolidation of the Union and Gila River stations, and $22.8 million after-tax partial gain recognition on the sale of TECO Coalbed Methane’s assets. |
The 12-month period ended Dec. 31, 2002 included a $7.7 million after tax gain on the first portion of the sale of the Coalbed Methane assets.
| 10) | The 12-month period ended Dec. 31, 2003 included a $3.2 million after tax charge for the cumulative effect of an accounting change to reflect the implementation of FAS 150,Accounting for Certain Financial Instruments with Characteristics of both Liabilities and Equity, and a $1.1 million after-tax charge for the cumulative effect of an accounting change to reflect the adoption of FAS 143,Accounting for Asset Retirement Obligations. |
TAMPA ELECTRIC COMPANY
ELECTRIC OPERATING STATISTICS (Unaudited)
| | | | | | | | | | | | | | | | | | |
| | | Operating Revenues*
| | | | | | Sales — Kilowatt-hours*
| | | |
Three Months Ended December 31,
| | 2003
| | | 2002
| | | Percent
Change
| | | 2003
| | 2002
| | Percent Change
| |
Residential | | $ | 180,085 | | | $ | 181,797 | | | (0.9 | ) | | 1,905,129 | | 1,933,422 | | (1.5 | ) |
Commercial | | | 115,823 | | | | 113,604 | | | 2.0 | | | 1,457,839 | | 1,438,187 | | 1.4 | |
Industrial—Phosphate | | | 16,239 | | | | 18,877 | | | (14.0 | ) | | 318,519 | | 349,227 | | (8.8 | ) |
Industrial—Other | | | 22,256 | | | | 21,382 | | | 4.1 | | | 327,657 | | 312,096 | | 5.0 | |
Other sales of electricity | | | 32,983 | | | | 30,756 | | | 7.2 | | | 403,745 | | 377,022 | | 7.1 | |
Deferred and other revenues | | | (3,462 | ) | | | (7,710 | ) | | (55.1 | ) | | — | | — | | — | |
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| | | $ | 363,924 | | | $ | 358,706 | | | 1.5 | | | 4,412,889 | | 4,409,954 | | 0.1 | |
Sales for resale | | | 8,823 | | | | 17,893 | | | (50.7 | ) | | 136,366 | | 306,519 | | (55.5 | ) |
Other operating revenue | | | 7,343 | | | | 8,510 | | | (13.7 | ) | | — | | — | | — | |
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| | | $ | 380,090 | | | $ | 385,109 | | | (1.3 | ) | | 4,549,255 | | 4,716,473 | | (3.5 | ) |
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Average customers | | | 610,430 | | | | 594,775 | | | 2.6 | | | — | | — | | — | |
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Retail Output to Line | | | | | | | | | | | | | 4,496,823 | | 4,439,674 | | 1.3 | |
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| | | | |
| | | Operating Revenues*
| | | | | | Sales — Kilowatt-hours*
| | | |
Year-To-Date December 31,
| | 2003
| | | 2002
| | | Percent
Change
| | | 2003
| | 2002
| | Percent Change
| |
Residential | | | 767,405 | | | | 753,936 | | | 1.8 | | | 8,264,748 | | 8,046,430 | | 2.7 | |
Commercial | | | 460,060 | | | | 459,569 | | | 0.1 | | | 5,860,214 | | 5,831,617 | | 0.5 | |
Industrial — Phosphate | | | 65,358 | | | | 74,299 | | | (12.0 | ) | | 1,276,556 | | 1,378,051 | | (7.4 | ) |
Industrial — Other | | | 88,526 | | | | 83,766 | | | 5.7 | | | 1,302,778 | | 1,233,922 | | 5.6 | |
Other sales of electricity | | | 124,865 | | | | 117,370 | | | 6.4 | | | 1,538,020 | | 1,435,125 | | 7.2 | |
Deferred and other revenues | | | (5,208 | ) | | | (15,757 | ) | | (66.9 | ) | | — | | — | | — | |
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| | | $ | 1,501,006 | | | $ | 1,473,183 | | | 1.9 | | | 18,242,316 | | 17,925,145 | | 1.8 | |
Sales for resale | | | 41,590 | | | | 67,669 | | | (38.5 | ) | | 691,085 | | 1,083,712 | | (36.2 | ) |
Other operating revenue | | | 43,525 | | | | 42,384 | | | 2.7 | | | — | | — | | — | |
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| | | $ | 1,586,121 | | | $ | 1,583,236 | | | 0.2 | | | 18,933,401 | | 19,008,857 | | (0.4 | ) |
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Average customers | | | 604,900 | | | | 590,199 | | | 2.5 | | | — | | — | | — | |
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Retail Output to Line | | | | | | | | | | | | | 19,209,915 | | 18,860,187 | | 1.9 | |
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PEOPLES GAS SYSTEM
GAS OPERATING STATISTICS (Unaudited)
| | | | | | | | | | | | | | | | |
| | | Operating Revenues*
| | Percent
Change
| | | Therms*
| | Percent Change
| |
Three Months Ended December 31,
| | 2003
| | 2002
| | | 2003
| | 2002
| |
By Customer Segment: | | | | | | | | | | | | | | | | |
Residential | | $ | 25,495 | | $ | 21,861 | | 16.6 | | | 14,833 | | 16,006 | | (7.3 | ) |
Commercial | | | 34,390 | | | 31,804 | | 8.1 | | | 90,637 | | 83,257 | | 8.9 | |
Industrial | | | 2,618 | | | 3,166 | | (17.3 | ) | | 56,760 | | 60,066 | | (5.5 | ) |
Off System Sales | | | 10,896 | | | 14,430 | | (24.5 | ) | | 27,848 | | 31,504 | | (11.6 | ) |
Power generation | | | 2,493 | | | 2,608 | | (4.4 | ) | | 77,867 | | 100,718 | | (22.7 | ) |
Other revenues | | | 7,634 | | | 7,180 | | 6.3 | | | — | | — | | — | |
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| | | $ | 83,526 | | $ | 81,049 | | 3.1 | | | 267,945 | | 291,551 | | (8.1 | ) |
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By Sales Type: | | | | | | | | | | | | | | | | |
System supply | | $ | 56,242 | | $ | 54,387 | | 3.4 | | | 63,668 | | 70,503 | | (9.7 | ) |
Transportation | | | 19,650 | | | 19,482 | | 0.9 | | | 204,277 | | 221,048 | | (7.6 | ) |
Other revenues | | | 7,634 | | | 7,180 | | 6.3 | | | — | | — | | — | |
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| | | $ | 83,526 | | $ | 81,049 | | 3.1 | | | 267,945 | | 291,551 | | (8.1 | ) |
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|
Average customers | | | 295,651 | | | 281,090 | | 5.2 | | | — | | — | | — | |
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| | | | |
| | | Operating Revenues*
| | Percent
Change
| | | Therms*
| | Percent Change
| |
Year-To-Date December 31,
| | 2003
| | 2002
| | | 2003
| | 2002
| |
By Customer Segment: | | | | | | | | | | | | | | | | |
Residential | | $ | 105,668 | | $ | 76,613 | | 37.9 | | | 64,218 | | 60,237 | | 6.6 | |
Commercial | | | 143,687 | | | 122,336 | | 17.5 | | | 354,821 | | 327,639 | | 8.3 | |
Industrial | | | 10,393 | | | 12,453 | | (16.5 | ) | | 220,158 | | 247,203 | | (10.9 | ) |
Off System Sales | | | 104,506 | | | 67,868 | | 54.0 | | | 186,094 | | 176,555 | | 5.4 | |
Power generation | | | 10,116 | | | 11,374 | | (11.1 | ) | | 363,693 | | 492,558 | | (26.2 | ) |
Other revenues | | | 34,046 | | | 27,464 | | 24.0 | | | — | | — | | — | |
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| | | $ | 408,416 | | $ | 318,108 | | 28.4 | | | 1,188,984 | | 1,304,192 | | 8.8 | |
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By Sales Type: | | | | | | | | | | | | | | | | |
System supply | | $ | 298,231 | | $ | 214,636 | | 38.9 | | | 337,274 | | 332,504 | | 1.4 | |
Transportation | | | 76,139 | | | 76,008 | | 0.2 | | | 851,710 | | 971,688 | | (12.3 | ) |
Other revenues | | | 34,046 | | | 27,464 | | 24.0 | | | — | | — | | — | |
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| | | $ | 408,416 | | $ | 318,108 | | 28.4 | | | 1,188,984 | | 1,304,192 | | (8.8 | ) |
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Average customers | | | 291,919 | | | 277,530 | | 5.2 | | | — | | — | | — | |
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| Contact: | | News Media: Laura Plumb – (813) 228-1572 |
| | | Investor Relations: Mark Kane – (813) 228-1772 |
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| | | Internet:http://www.tecoenergy.com |
