TECO Energy 8-K/A Financial Statements and Exhibits

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K/A

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):

December 22, 2004

TECO ENERGY, INC.

(Exact name of registrant as specified in its charter)

Florida	1-8180	59-2052286
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer identification No.)

702 N. Franklin Street, Tampa, Florida 33602

(Address of principal executive offices) (Zip code)

Registrant’s telephone number, including area code: (813) 228-1111

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Securities Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Section 9 – Financial Statements and Exhibits

Item 9.01: Financial Statements and Exhibits

(b) Pro forma financial information

As reported on a Current Report on Form 8-K dated December 22, 2004 and filed on December 29, 2004, TECO Energy, Inc. and its subsidiaries completed the sale of Frontera Generation Limited Partnership (Frontera), the owner of the Frontera Power Station in Texas, to a subsidiary of Centrica plc. TECO Energy, Inc. has determined that the operating results and charges related to Frontera will be reported as discontinued operations on its consolidated income statements and has filed this Amendment to the Current Report on Form 8-K to provide the pro forma financial information required as a result of that determination.

The following unaudited pro forma consolidated balance sheet reflects the disposition of Frontera as if it had occurred on Sept. 30, 2004. The unaudited pro forma condensed statements of income for the nine-month periods ended September 30, 2004 and 2003, and for the years ended December 31, 2003, 2002 and 2001, no longer reflect the results of Frontera operations and charges as continuing operations since those results will be included in discontinued operations. The pro forma financial information does not purport to represent TECO Energy, Inc.’s future consolidated financial position or future consolidated results of operations.

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TECO Energy, Inc.

Pro Forma Condensed Consolidated Balance Sheet

September 30, 2004

(Unaudited)

$ millions	As reported		Frontera(1) Adjustments			Pro Forma
Current assets
Cash and cash equivalents	$	102.5	$	132.0		$	234.5
Restricted cash		57.2		—			57.2
Receivables, less allowance for uncollectibles		324.0		—			324.0
Current derivative assets		19.5		—			19.5
Inventories, at average cost
Fuel		59.6		—			59.6
Materials and supplies		86.6		(6.2	)		80.4
Prepayments and other current assets		167.8		(0.5	)		167.3
Assets held for sale		144.7		—			144.7
Total current assets		961.9		125.3			1,087.2
Total property, plant and equipment (net)		5,501.3		(166.2	)		5,335.1
Other assets
Deferred income taxes		967.7		15.4			983.1
Other investments		11.5		—			11.5
Regulatory assets		165.4		—			165.4
Investment in unconsolidated affiliates		254.8		—			254.8
Goodwill		71.2		—			71.2
Deferred charges and other assets		146.8		(5.1	)		141.7
Assets held for sale		2,052.3		—			2,052.3
Total other assets		3,669.7		10.3			3,680.0
Total assets	$	10,132.9	$	(30.6	)	$	10,102.3

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TECO Energy, Inc.

Pro Forma Condensed Consolidated Balance Sheet – continued

September 30, 2004

(Unaudited)

$ millions	As reported			Frontera(1) Adjustments			Pro Forma
Current liabilities
Long-term debt due within one year
Recourse	$	5.5		$	—		$	5.5
Non-recourse		7.7			—			7.7
Notes Payable		25.0			—			25.0
Accounts Payable		256.4			(0.6	)		255.8
Customer deposits		104.0			—			104.0
Current derivative liabilities		3.8			—			3.8
Interest accrued		96.1			—			96.1
Taxes accrued		112.8			(1.4	)		111.4
Liabilities associated with assets held for sale		1,593.8			—			1,593.8
Total current liabilities		2,205.1			(2.0	)		2,203.1
Other liabilities
Deferred income tax		517.4			—			517.4
Investment tax credits		20.6			—			20.6
Regulatory liabilities		547.6			—			547.6
Deferred credits and other liabilities		361.5			—			361.5
Liabilities associated with assets held for sale		675.3			—			675.3
Long-term debt, less amount due within one year
Recourse		3,587.4			—			3,587.4
Non-recourse		14.1			—			14.1
Junior subordinated		400.4			—			400.4
Minority interest		2.7			—			2.7
Total other liabilities		6,127.0			—			6,127.0
Capital
Common equity		199.6			—			199.6
Additional paid in capital		1,488.5			—			1,488.5
Retained earnings		167.9			(28.6	)		139.3
Accumulated other comprehensive income		(47.8	)		—			(47.8	)
Common equity		1,808.2			(28.6	)		1,779.6
Unearned compensation		(7.4	)		—			(7.4	)
Total capital		1,800.8			(28.6	)		1,772.2
Total liabilities and capital	$	10,132.9		$	(30.6	)	$	10,102.3

(1) Reflects the assets and liabilities of Frontera and the related loss net of the tax benefit on the sale.

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TECO Energy, Inc.

Pro Forma Condensed Consolidated Statement of Income

For the nine months ended September 30, 2004

(Unaudited)

$ millions, except per share amounts	As reported			Frontera(1) Adjustments			Pro Forma
Revenues	$	2,097.6		$	49.8		$	2,047.8
Operating expenses		1,886.7			50.8			1,835.9
Income from operations		210.9			(1.0	)		211.9
Other (Expense) Income
AFUDC - other funds		0.7			—			0.7
Other Income		112.5			(2.6	)		115.1
Loss on debt extinguishment		(4.3	)		—			(4.3	)
Impairment on TIE Investment		(152.3	)		—			(152.3	)
TMDP arbitration reserve		5.7			—			5.7
Earnings from equity Investments		26.6			—			26.6
Total Other (expense) income		(11.1	)		(2.6	)		(8.5	)
Interest charges		244.9			—			244.9
(Loss) income before income taxes		(45.1	)		(3.6	)		(41.5	)
Provision (benefit) for income tax		16.6			(1.3	)		17.9
Minority interest		61.0			—			61.0
Net income (loss) from continuing operations		(0.7	)		(2.3	)		1.6
Average common shares outstanding
Basic		190.5						190.5
Diluted		190.5						190.9
Earnings per share from continuing operations
Basic	$	0.00					$	0.01
Diluted	$	0.00					$	0.01

(1) Reflects the reclassification of the results of operations for Frontera and the related tax impacts as discontinued operations.

5

TECO Energy, Inc.

Pro Forma Condensed Consolidated Statement of Income

For the nine months ended September 30, 2003

(Unaudited)

$ millions, except per share amounts	As reported			Frontera(1) Adjustments			Pro Forma
Revenues	$	2,106.2		$	53.5		$	2,052.7
Operating expenses		2,022.3			121.2			1,901.1
Income from operations		83.9			(67.7	)		151.6
Other (Expense) Income
AFUDC - other funds		15.6			—			15.6
Other Income		41.6			—			41.6
Loss on debt extinguishment		—			—			—
Impairment on TIE Investment		—			—			—
TMDP arbitration reserve		(32.0	)		—			(32.0	)
Earnings from equity Investments		6.7			—			6.7
Total Other (expense) income		31.9			—			31.9
Interest charges		230.7			—			230.7
(Loss) income before income taxes		(114.9	)		(67.7	)		(47.2	)
Provision (benefit) for income tax		(69.5	)		(23.8	)		(45.7	)
Minority interest		34.7			—			34.7
Net income (loss) from continuing operations		(10.7	)		(43.9	)		33.2
Average common shares outstanding
Basic		177.5						177.5
Diluted		177.5						177.8
Earnings per share from continuing operations
Basic	$	(0.06	)				$	0.18
Diluted	$	(0.06	)				$	0.18

(1) Reflects the reclassification of the results of operations for Frontera and the related tax impacts as discontinued operations.

6

TECO Energy, Inc.

Pro Forma Condensed Consolidated Statement of Income

For the year ended December 31, 2003

(Unaudited)

$ millions, except per share amounts	As reported			Frontera(1) Adjustments			Pro Forma
Revenues	$	2,740.0		$	63.1		$	2,676.9
Operating expenses		2,719.9			138.7			2,581.2
Income from operations		20.1			(75.6	)		95.7
Other (Expense) Income
AFUDC - other funds		19.8			—			19.8
Other Income		114.5			2.0			112.5
TMDP arbitration reserve		(32.0	)		—			(32.0	)
Earnings from equity Investments		(0.4	)		—			(0.4	)
Total Other (expense) income		101.9			2.0			99.9
Interest charges		320.7			—			320.7
Income before income taxes		(198.7	)		(73.6	)		(125.1	)
Provision (benefit) for income tax		(135.2	)		(25.8	)		(109.4	)
Minority interest		48.8			—			48.8
Net income (loss) from continuing operations		(14.7	)		(47.8	)		33.1
Average common shares outstanding
Basic		179.9						179.9
Diluted		179.9						180.2
Earnings per share from continuing operations
Basic	$	(0.08	)				$	0.18
Diluted	$	(0.08	)				$	0.18

(1) Reflects the reclassification of the results of operations for Frontera and the related tax impacts as discontinued operations.

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TECO Energy, Inc.

Pro Forma Condensed Consolidated Statement of Income

For the year ended December 31, 2002

(Unaudited)

$ millions, except per share amounts	As reported			Frontera(1) Adjustments		Pro Forma
Revenues	$	2,664.9		$	83.1	$	2,581.8
Operating expenses		2,283.1			71.1		2,212.0
Income from operations		381.8			12.0		369.8
Other (Expense) Income
AFUDC - other funds		24.9			—		24.9
Other Income		19.0			—		19.0
Loss on debt extinguishment		(34.1	)		—		(34.1	)
Earnings from equity Investments		5.5			—		5.5
Total Other (expense) income		15.3			—		15.3
Interest charges		171.6			—		171.6
Income before income taxes		225.5			12.0		213.5
Provision (benefit) for income tax		(51.7	)		4.2		(55.9	)
Net income (loss) from continuing operations		277.2			7.8		269.4
Average common shares outstanding
Basic		153.2					153.2
Diluted		153.3					153.3
Earnings per share from continuing operations
Basic	$	1.81				$	1.76
Diluted	$	1.81				$	1.76

(1) Reflects the reclassification of the results of operations for Frontera and the related tax impacts as discontinued operations.

8

TECO Energy, Inc.

Pro Forma Condensed Consolidated Statement of Income

For the year ended December 31, 2001

(Unaudited)

$ millions, except per share amounts	As reported			Frontera(1) Adjustments			Pro Forma
Revenues	$	2,483.3		$	47.4		$	2,435.9
Operating expenses		2,085.4			48.9			2,036.5
Income from operations		397.9			(1.5	)		399.4
Other (Expense) Income
AFUDC - other funds		6.6			—			6.6
Other Income		23.1			—			23.1
Earnings from equity Investments		9.1			—			9.1
Total Other (expense) income		38.8			—			38.8
Interest charges		178.5			—			178.5
Income before income taxes		258.2			(1.5	)		259.7
Provision (benefit) for income tax		(7.3	)		(0.5	)		(6.8	)
Net income (loss) from continuing operations		265.5			(1.0	)		266.5
Average common shares outstanding
Basic		134.5						134.5
Diluted		135.4						135.4
Earnings per share from continuing operations
Basic	$	1.98					$	1.98
Diluted	$	1.96					$	1.97

(1) Reflects the reclassification of the results of operations for Frontera and the related tax impacts as discontinued operations.

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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 hereunto duly authorized.

Date: January 5, 2005	TECO ENERGY, INC.
	(Registrant)
	/s/ G. L. GILLETTE
	G. L. GILLETTE
	Executive Vice President
	and Chief Financial Officer (Principal Financial Officer)

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