UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 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):
July 25, 2006
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 North Franklin Street, Tampa Florida | 33602 | |
| (Address of principal executive offices) | (Zip code) |
Registrant’s telephone number, including area code: (813) 228-1111
(Former name or former address, if changed since last report)
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 2 – Financial Information
Item 2.02: Results of Operations and Financial Condition
See the Press Release dated July 28, 2006, furnished as Exhibit 99.1 and incorporated herein by reference, reporting on TECO Energy, Inc.’s financial results for the three and six months ended June 30, 2006.
Section 5 – Corporate Governance and Management
Item 5.02: Departure of Directors or Principal Officers; Election of Directors; Appointment of Principal Officers.
On July 25, 2006, Joseph P. Lacher was elected a member of the TECO Energy, Inc. and Tampa Electric Company Boards of Directors and was appointed to the Audit Committee of the Board of TECO Energy, Inc.
Section 9 – Financial Statements and Exhibits
Item 9.01: Financial Statements and Exhibits
| (d) | Exhibits |
| 99.1 | Press Release dated July 28, 2006 reporting on TECO Energy, Inc.’s financial results for the three and six months ended June 30, 2006. |
.
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: July 28, 2006 | TECO ENERGY, INC. | |||
| (Registrant) | ||||
/s/ G. L. GILLETTE | ||||
| G. L. GILLETTE | ||||
| Executive Vice President | ||||
and Chief Financial Officer (Principal Financial Officer) | ||||
EXHIBIT INDEX
| Exhibit No. | Description of Exhibits | |
| 99.1 | Press Release dated July 28, 2006, reporting on TECO Energy, Inc.’s financial results for the three and six months ended June 30, 2006. |
JUNE 2006
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 | Six Months Ended | Twelve Months Ended | ||||||||||||||||||||||
| June 30, | June 30, | June 30, | ||||||||||||||||||||||
(millions except share data) | 2006 | 2005 | 2006 | 2005 | 2006 | 2005 | ||||||||||||||||||
Revenues | ||||||||||||||||||||||||
Regulated electric and gas | $ | 670.0 | $ | 537.7 | $ | 1,312.5 | $ | 1,059.8 | $ | 2,546.5 | $ | 2,138.3 | ||||||||||||
Unregulated | 192.6 | 181.3 | 386.5 | 343.9 | 758.9 | 619.8 | ||||||||||||||||||
Total revenues | 862.6 | 719.0 | 1,699.0 | 1,403.7 | 3,305.4 | 2,758.1 | ||||||||||||||||||
Expenses | ||||||||||||||||||||||||
Regulated operations | ||||||||||||||||||||||||
Fuel | 200.5 | 127.8 | 383.3 | 242.4 | 602.0 | 537.9 | ||||||||||||||||||
Purchased power | 55.8 | 44.9 | 90.3 | 85.8 | 274.3 | 176.0 | ||||||||||||||||||
Cost of natural gas sold | 88.1 | 66.4 | 210.9 | 149.9 | 411.2 | 257.1 | ||||||||||||||||||
Other | 71.3 | 65.5 | 142.9 | 126.5 | 286.7 | 257.1 | ||||||||||||||||||
Other operations | 165.4 | 170.0 | 331.8 | 315.6 | 669.7 | 632.6 | ||||||||||||||||||
Maintenance | 49.9 | 37.1 | 94.9 | 76.1 | 187.2 | 147.0 | ||||||||||||||||||
Depreciation | 70.6 | 69.9 | 140.9 | 140.0 | 283.1 | 277.1 | ||||||||||||||||||
Asset impairment | 0.0 | 0.0 | 0.0 | 0.0 | 3.2 | 630.2 | ||||||||||||||||||
Restructuring charges | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 1.1 | ||||||||||||||||||
Sale of development stage entity | (10.7 | ) | 0.0 | (10.7 | ) | 0.0 | (10.7 | ) | 0.0 | |||||||||||||||
Taxes, other than income | 53.4 | 44.7 | 110.2 | 94.8 | 210.0 | 183.2 | ||||||||||||||||||
Total expenses | 744.3 | 626.3 | 1,494.5 | 1,231.1 | 2,916.7 | 3,099.3 | ||||||||||||||||||
Income from operations | 118.3 | 92.7 | 204.5 | 172.6 | 388.7 | (341.2 | ) | |||||||||||||||||
Other income (expense) | ||||||||||||||||||||||||
Allowance for other funds used during construction | 0.4 | 0.0 | 0.6 | 0.0 | 0.6 | 0.0 | ||||||||||||||||||
Other income | 6.9 | 34.3 | 30.9 | 71.4 | 130.9 | 129.7 | ||||||||||||||||||
Gain (loss) on debt extinguishment | 0.0 | (71.5 | ) | 0.0 | (71.5 | ) | (2.7 | ) | (75.9 | ) | ||||||||||||||
Impairment on TIE investment | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | (0.4 | ) | |||||||||||||||||
Income from equity investment | 13.8 | 13.7 | 28.4 | 28.9 | 60.0 | 59.0 | ||||||||||||||||||
Total other income | 21.1 | (23.5 | ) | 59.9 | 28.8 | 188.8 | 112.4 | |||||||||||||||||
Interest charges | ||||||||||||||||||||||||
Interest expense | 70.1 | 76.4 | 139.2 | 151.9 | 276.1 | 305.0 | ||||||||||||||||||
Allowance for borrowed funds used during construction | (0.1 | ) | 0.0 | (0.2 | ) | 0.0 | (0.2 | ) | 0.0 | |||||||||||||||
Total interest charges | 70.0 | 76.4 | 139.0 | 151.9 | 275.9 | 305.0 | ||||||||||||||||||
Income before provision for income taxes | 69.4 | (7.2 | ) | 125.4 | 49.5 | 301.6 | (533.8 | ) | ||||||||||||||||
Provision for income taxes | 27.3 | 4.0 | 50.0 | 31.8 | 120.1 | (208.3 | ) | |||||||||||||||||
Income from Continuing Operations before minority interests | 42.1 | (11.2 | ) | 75.4 | 17.7 | 181.5 | (325.5 | ) | ||||||||||||||||
Minority Interests | 19.0 | 23.6 | 40.9 | 46.2 | 81.8 | 84.1 | ||||||||||||||||||
Income (loss) from Continuing Operations | 61.1 | 12.4 | 116.3 | 63.9 | 263.3 | (241.4 | ) | |||||||||||||||||
Discontinued operations | ||||||||||||||||||||||||
Income from discontinued operations | 2.3 | 120.1 | 2.3 | 90.2 | 0.3 | (118.4 | ) | |||||||||||||||||
Income tax benefit-discontinued operations | 0.9 | 37.3 | 0.9 | 26.2 | (0.6 | ) | (41.4 | ) | ||||||||||||||||
Total discontinued operations | 1.4 | 82.8 | 1.4 | 64.0 | 0.9 | (77.0 | ) | |||||||||||||||||
Income before cumulative effect of a chng in acct principle | 62.5 | 95.2 | 117.7 | 127.9 | 264.2 | (318.4 | ) | |||||||||||||||||
Cumulative effect of a change in accounting principle | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | ||||||||||||||||||
Net income (loss) | $ | 62.5 | $ | 95.2 | $ | 117.7 | $ | 127.9 | $ | 264.2 | $ | (318.4 | ) | |||||||||||
Average common shares outstanding (millions) | 207.7 | 206.7 | 207.6 | 205.5 | 207.4 | 200.7 | ||||||||||||||||||
Earnings per average common share outstanding: | ||||||||||||||||||||||||
Earnings per share from continuing operations — basic | 0.29 | 0.06 | 0.56 | 0.31 | 1.27 | (1.20 | ) | |||||||||||||||||
Earnings per share from continuing operations — diluted | 0.29 | 0.04 | 0.55 | 0.29 | 1.27 | (1.20 | ) | |||||||||||||||||
Earnings per share — basic | 0.30 | 0.46 | 0.57 | 0.62 | 1.27 | (1.59 | ) | |||||||||||||||||
Earnings per share — diluted | 0.30 | 0.44 | 0.56 | 0.60 | 1.27 | (1.59 | ) | |||||||||||||||||
TECO ENERGY, Inc.
CONSOLIDATED BALANCE SHEETS (Unaudited)
(All significant intercompany transactions have been eliminated in the consolidated financial statements.)
(millions) | Jun-30-2006 | Dec-31-2005 | ||||||
Assets | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 467.4 | $ | 345.7 | ||||
Restricted cash | 37.2 | 37.6 | ||||||
Receivables | 333.5 | 323.3 | ||||||
Inventories at average cost | ||||||||
Fuel | 92.3 | 84.9 | ||||||
Materials and supplies | 71.9 | 68.9 | ||||||
Current derivative asset | 14.8 | 64.0 | ||||||
Income tax receivables | 13.8 | 11.1 | ||||||
Prepayments and other current assets | 29.3 | 40.4 | ||||||
Regulatory assets - current | 261.4 | 296.3 | ||||||
Assets held for sale | 0.0 | 0.0 | ||||||
Total current assets | 1,321.6 | 1,272.2 | ||||||
Property, plant and equipment | ||||||||
Utility plant in service | ||||||||
Electric | 4,955.6 | 4,892.3 | ||||||
Gas | 855.7 | 839.5 | ||||||
Construction work in process | 249.8 | 200.0 | ||||||
Other property | 825.4 | 822.7 | ||||||
Property plant and equipment at original cost | 6,886.5 | 6,754.5 | ||||||
Accumulated depreciation | (2,266.3 | ) | (2,187.6 | ) | ||||
Total property, plant and equipment (net) | 4,620.2 | 4,566.9 | ||||||
Other assets | ||||||||
Deferred income taxes | 728.4 | 735.7 | ||||||
Other investments | 8.0 | 8.0 | ||||||
Regulatory assets | 98.1 | 101.1 | ||||||
Investment in unconsolidated affiliates | 301.4 | 297.1 | ||||||
Goodwill | 59.4 | 59.4 | ||||||
Long-term derivative asset | 0.4 | 4.9 | ||||||
Deferred charges and other assets | 108.9 | 116.8 | ||||||
Assets held for sale | 0.0 | 8.0 | ||||||
Total other assets | 1,304.6 | 1,331.0 | ||||||
Total assets | $ | 7,246.4 | $ | 7,170.1 | ||||
Liabilities and capital | ||||||||
Current liabilities | ||||||||
Long-term debt due within one year | ||||||||
Recourse | $ | 5.9 | $ | 5.9 | ||||
Non-recourse | 1.3 | 1.3 | ||||||
Notes payable | 0.0 | 215.0 | ||||||
Accounts payable | 293.8 | 354.7 | ||||||
Customer deposits | 120.6 | 115.2 | ||||||
Current derivative liability | 39.4 | 0.3 | ||||||
Interest accrued | 54.7 | 50.0 | ||||||
Taxes accrued | 60.8 | 34.9 | ||||||
Deferred tax liability | 0.0 | 0.0 | ||||||
Regulatory liabilities - current | 123.6 | 146.8 | ||||||
Liabilities associated with assets held for sale | 0.0 | 1.8 | ||||||
Total current liabilities | 700.1 | 925.9 | ||||||
Other liabilities | ||||||||
Deferred income taxes | 0.0 | 0.0 | ||||||
Investment tax credit | 15.9 | 17.3 | ||||||
Regulatory liabilities | 554.3 | 543.1 | ||||||
Long-term derivative liability | 0.7 | 0.0 | ||||||
Deferred credits and other liabilities | 372.3 | 382.9 | ||||||
Long-term debt, less amount due within one year | ||||||||
Recourse | 3,768.5 | 3,519.8 | ||||||
Non-recourse | 10.4 | 11.7 | ||||||
Junior subordinated debt | 177.7 | 177.7 | ||||||
Minority interest | 0.0 | 0.0 | ||||||
Total other liabilities | 4,899.8 | 4,652.5 | ||||||
Total Liabilities | 5,599.9 | 5,578.4 | ||||||
Capital | ||||||||
Common equity | 208.9 | 208.2 | ||||||
Paid in capital | 1,453.1 | 1,527.0 | ||||||
Retained earnings | 34.5 | (83.1 | ) | |||||
Accumulated other comprehensive income | (50.0 | ) | (51.1 | ) | ||||
Common equity | 1,646.5 | 1,601.0 | ||||||
Unearned compensation | 0.0 | (9.3 | ) | |||||
Total capital | 1,646.5 | 1,591.7 | ||||||
Total liabilities and capital | $ | 7,246.4 | $ | 7,170.1 | ||||
Book Value Per Share | $ | 7.88 | $ | 7.69 | ||||
TECO ENERGY, Inc.
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(All significant intercompany transactions have been eliminated in the consolidated financial statements.)
| Three Months Ended June 30, | Six Months Ended June 30, | Twelve Months Ended June 30, | ||||||||||||||||||||||
(millions) | 2006 | 2005 | 2006 | 2005 | 2006 | 2005 | ||||||||||||||||||
Cash flows from operating activities | ||||||||||||||||||||||||
Net income | $ | 62.5 | $ | 95.2 | $ | 117.7 | $ | 127.9 | $ | 264.2 | $ | (318.4 | ) | |||||||||||
Adjustments to reconcile net income to net cash: | ||||||||||||||||||||||||
Depreciation | 70.6 | 70.0 | 140.9 | 140.0 | 283.1 | 284.1 | ||||||||||||||||||
Deferred income taxes | 26.4 | 38.6 | 48.1 | 50.0 | 108.9 | (194.5 | ) | |||||||||||||||||
Investment tax credit, net | (0.6 | ) | (0.7 | ) | (1.3 | ) | (1.4 | ) | (2.6 | ) | (2.8 | ) | ||||||||||||
Allowance for funds used during construction | (0.6 | ) | 0.0 | (0.9 | ) | 0.0 | (0.9 | ) | 0.0 | |||||||||||||||
Non-cash stock compensation | 4.3 | 3.0 | 7.0 | 3.8 | 8.7 | 10.6 | ||||||||||||||||||
Gain on asset sales, pretax | (10.4 | ) | (148.5 | ) | (26.7 | ) | (181.1 | ) | (107.2 | ) | (192.4 | ) | ||||||||||||
Noncash debt extinguishment, pretax | 0.0 | 17.2 | 0.0 | 17.2 | 2.7 | 17.2 | ||||||||||||||||||
Equity in earnings of unconsolidated affiliates | (13.5 | ) | (12.9 | ) | (3.6 | ) | (11.1 | ) | (28.4 | ) | (39.6 | ) | ||||||||||||
Minority interest | (19.0 | ) | (23.6 | ) | (40.9 | ) | (46.2 | ) | (81.8 | ) | (84.1 | ) | ||||||||||||
Asset impairment, pretax | 0.0 | 0.0 | 0.0 | 0.0 | 3.2 | 715.7 | ||||||||||||||||||
Goodwill impairment and intangible asset impairment, pretax | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 16.6 | ||||||||||||||||||
Contingent arbitration reserve, pretax | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | (5.6 | ) | |||||||||||||||||
Deferred recovery clause | (11.1 | ) | (22.6 | ) | 67.6 | (19.6 | ) | (67.1 | ) | (20.6 | ) | |||||||||||||
Receivables, less allowance for uncollectibles | (10.5 | ) | (29.1 | ) | (13.4 | ) | (40.3 | ) | (29.7 | ) | 14.9 | |||||||||||||
Inventories | (14.9 | ) | (6.7 | ) | (10.3 | ) | (28.3 | ) | (20.1 | ) | 1.0 | |||||||||||||
Prepayments and other current assets | (8.6 | ) | 1.3 | 10.5 | 4.5 | (1.6 | ) | 1.0 | ||||||||||||||||
Taxes accrued | 6.6 | 4.3 | 23.1 | 9.4 | (3.7 | ) | (175.2 | ) | ||||||||||||||||
Interest accrued | (27.1 | ) | (28.9 | ) | 4.7 | 20.7 | 1.4 | 65.7 | ||||||||||||||||
Accounts payable | 42.2 | (9.0 | ) | (50.3 | ) | 16.2 | 52.5 | (9.5 | ) | |||||||||||||||
Other | (6.8 | ) | 9.4 | 6.6 | (6.3 | ) | 15.7 | 50.9 | ||||||||||||||||
| 89.5 | (43.0 | ) | 278.8 | 55.4 | 397.3 | 135.0 | ||||||||||||||||||
Cash flows from investing activities | ||||||||||||||||||||||||
Capital expenditures | (101.0 | ) | (79.9 | ) | (179.2 | ) | (142.3 | ) | (332.1 | ) | (291.6 | ) | ||||||||||||
Allowance for funds used during construction | 0.6 | 0.0 | 0.9 | 0.0 | 0.9 | 0.0 | ||||||||||||||||||
Net proceeds from sale of assets | 10.1 | 125.9 | 28.0 | 154.9 | 183.1 | 363.0 | ||||||||||||||||||
Cash paid on disposition of business | 0.0 | (31.8 | ) | 0.0 | (31.8 | ) | 0.0 | (31.8 | ) | |||||||||||||||
Restricted cash | (0.1 | ) | 3.7 | 0.3 | 28.0 | 19.9 | 3.0 | |||||||||||||||||
Investment in unconsolidated affiliates | 0.0 | 0.1 | 0.0 | 0.1 | 2.7 | 1.6 | ||||||||||||||||||
Other non-current investments | 0.0 | 0.0 | 0.0 | 4.2 | (0.1 | ) | 16.1 | |||||||||||||||||
| (90.4 | ) | 18.0 | (150.0 | ) | 13.1 | (125.6 | ) | 60.3 | ||||||||||||||||
Cash flows from financing activities | ||||||||||||||||||||||||
Dividends | (39.7 | ) | (39.4 | ) | (79.3 | ) | (78.7 | ) | (158.3 | ) | (152.4 | ) | ||||||||||||
Common stock | 2.2 | 6.6 | 3.8 | 190.9 | 9.2 | 194.7 | ||||||||||||||||||
Proceeds from long-term debt | 244.2 | 297.8 | 327.6 | 298.9 | 340.6 | 298.9 | ||||||||||||||||||
Repayment of long-term debt | 0.0 | (380.0 | ) | (87.2 | ) | (388.5 | ) | (192.7 | ) | (527.0 | ) | |||||||||||||
Minority interest | 18.1 | 25.6 | 43.0 | 47.4 | 78.7 | 80.0 | ||||||||||||||||||
Early exchange of equity units | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | (17.7 | ) | |||||||||||||||||
Net increase (decrease) in short-term debt | (150.0 | ) | (10.0 | ) | (215.0 | ) | (45.0 | ) | (70.0 | ) | 40.0 | |||||||||||||
Equity contract adjustment payments | 0.0 | 0.0 | 0.0 | (2.0 | ) | 0.0 | (9.2 | ) | ||||||||||||||||
| 74.8 | (99.4 | ) | (7.1 | ) | 23.0 | 7.5 | (92.7 | ) | ||||||||||||||||
Net increase (decrease) in cash and cash equivalents | 73.9 | (124.4 | ) | 121.7 | 91.5 | 279.2 | 102.6 | |||||||||||||||||
Cash and cash equivalents at beginning of period | 393.5 | 312.6 | 345.7 | 96.7 | 188.2 | 85.6 | ||||||||||||||||||
Cash and cash equivalents at end of period | $ | 467.4 | $ | 188.2 | $ | 467.4 | $ | 188.2 | $ | 467.4 | $ | 188.2 | ||||||||||||
TECO ENERGY, Inc.
SEGMENT INFORMATION (Unaudited)
(millions) | Tampa Electric | Peoples Gas(7) | TECO Coal | TECO Transport | TECO Guatemala | TWG Merchant | Other & Eliminations | TECO Energy | ||||||||||||||||||||||||
Three months ended Jun. 30, | ||||||||||||||||||||||||||||||||
2006 | Revenues - outsiders | $ | 532.5 | $ | 137.4 | $ | 144.7 | $ | 46.1 | $ | 1.7 | $ | — | $ | 0.2 | $ | 862.6 | |||||||||||||||
Sales to affiliates | 0.6 | — | — | 31.1 | — | — | (31.7 | ) | — | |||||||||||||||||||||||
Total revenues | 533.1 | 137.4 | 144.7 | 77.2 | 1.7 | — | (31.5 | ) | 862.6 | |||||||||||||||||||||||
Equity Earnings in Unconsolidated Affiliates | — | — | — | 0.1 | 13.7 | — | — | 13.8 | ||||||||||||||||||||||||
Depreciation | 46.7 | 9.1 | 9.0 | 5.5 | 0.2 | — | 0.1 | 70.6 | ||||||||||||||||||||||||
Restructuring costs | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Total interest charges(1) | 26.9 | 3.9 | 2.4 | 1.4 | 3.7 | — | 31.7 | 70.0 | ||||||||||||||||||||||||
Allocated interest expense(1) | — | — | 2.4 | (0.3 | ) | 3.6 | — | (5.7 | ) | — | ||||||||||||||||||||||
Provision (Benefit) for income taxes | 22.0 | 3.7 | 3.3 | 3.8 | 1.3 | — | (6.8 | ) | 27.3 | |||||||||||||||||||||||
Net income (loss) from continuing operations | $ | 37.1 | $ | 5.9 | $ | 13.4 | $ | 6.5 | $ | 8.7 | $ | — | $ | (10.5 | ) | $ | 61.1 | |||||||||||||||
2005 | Revenues - outsiders | $ | 424.7 | $ | 113.0 | $ | 128.2 | $ | 47.1 | $ | 1.7 | $ | 0.1 | $ | 4.2 | $ | 719.0 | |||||||||||||||
Sales to affiliates | 0.7 | — | — | 23.4 | — | — | (24.1 | ) | — | |||||||||||||||||||||||
Total revenues | 425.4 | 113.0 | 128.2 | 70.5 | 1.7 | 0.1 | (19.9 | ) | 719.0 | |||||||||||||||||||||||
Equity Earnings in Unconsolidated Affiliates | — | — | — | (0.1 | ) | 13.8 | — | — | 13.7 | |||||||||||||||||||||||
Depreciation | 46.6 | 8.6 | 8.9 | 5.4 | 0.1 | 0.2 | 0.1 | 69.9 | ||||||||||||||||||||||||
Restructuring costs | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Total interest charges(1) | 23.8 | 3.8 | 3.2 | 1.2 | 3.6 | 4.4 | 36.4 | 76.4 | ||||||||||||||||||||||||
Allocated interest expense(1) | — | — | 3.2 | (0.2 | ) | 3.6 | 4.4 | (11.0 | ) | — | ||||||||||||||||||||||
Provision (Benefit) for income taxes | 23.1 | 3.8 | 15.3 | 1.9 | 1.3 | (4.8 | ) | (36.6 | ) | 4.0 | ||||||||||||||||||||||
Net income (loss) from continuing operations | $ | 38.8 | $ | 6.0 | $ | 28.4 | $ | 5.3 | (5) | $ | 7.9 | $ | (8.6 | ) | $ | (65.4 | ) | $ | 12.4 | |||||||||||||
Six months ended Jun. 30, | ||||||||||||||||||||||||||||||||
2006 | Revenues - outsiders | $ | 988.8 | $ | 323.7 | $ | 284.8 | $ | 97.8 | $ | 3.8 | $ | — | $ | 0.1 | $ | 1,699.0 | |||||||||||||||
Sales to affiliates | 1.2 | — | — | 54.7 | — | — | (55.9 | ) | — | |||||||||||||||||||||||
Total revenues | 990.0 | 323.7 | 284.8 | 152.5 | 3.8 | — | (55.8 | ) | 1,699.0 | |||||||||||||||||||||||
Equity Earnings in Unconsolidated Affiliates | — | — | — | 0.2 | 28.2 | — | — | 28.4 | ||||||||||||||||||||||||
Depreciation | 93.1 | 18.2 | 18.2 | 11.0 | 0.4 | — | — | 140.9 | ||||||||||||||||||||||||
Restructuring costs | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Total interest charges(1) | 53.3 | 7.8 | 5.0 | 2.6 | 7.4 | — | 62.9 | 139.0 | ||||||||||||||||||||||||
Allocated interest expense(1) | — | — | 4.8 | (0.5 | ) | 7.2 | — | (11.5 | ) | — | ||||||||||||||||||||||
Provision (Benefit) for income taxes | 34.9 | 11.6 | 13.0 | 4.7 | 2.4 | — | (16.6 | ) | 50.0 | |||||||||||||||||||||||
Net income (loss) from continuing operations | $ | 59.5 | $ | 18.5 | $ | 38.1 | $ | 11.6 | (5) | $ | 17.3 | $ | — | $ | (28.7 | ) | $ | 116.3 | ||||||||||||||
2005 | Revenues - outsiders | $ | 804.1 | $ | 255.7 | $ | 238.0 | $ | 94.1 | $ | 3.9 | $ | 0.4 | $ | 7.5 | $ | 1,403.7 | |||||||||||||||
Sales to affiliates | 1.4 | — | — | 43.8 | — | — | (45.2 | ) | — | |||||||||||||||||||||||
Total revenues | 805.5 | 255.7 | 238.0 | 137.9 | 3.9 | 0.4 | (37.7 | ) | 1,403.7 | |||||||||||||||||||||||
Equity Earnings in Unconsolidated Affiliates | — | — | — | — | 28.9 | — | — | 28.9 | ||||||||||||||||||||||||
Depreciation | 93.2 | 17.3 | 17.9 | 10.8 | 0.3 | 0.3 | 0.2 | 140.0 | ||||||||||||||||||||||||
Restructuring costs | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Total interest charges(1) | 48.1 | 7.6 | 6.4 | 2.6 | 7.1 | 10.2 | 69.9 | 151.9 | ||||||||||||||||||||||||
Allocated interest expense(1) | — | — | 6.3 | (0.2 | ) | 7.0 | 10.2 | (23.3 | ) | — | ||||||||||||||||||||||
Provision (Benefit) for income taxes | 36.5 | 11.8 | 34.4 | 4.2 | 0.9 | (8.0 | ) | (48.0 | ) | 31.8 | ||||||||||||||||||||||
Net income (loss) from continuing operations | $ | 60.8 | $ | 18.8 | $ | 55.9 | $ | 9.4 | $ | 19.4 | $ | (14.3 | ) | $ | (86.1 | ) | $ | 63.9 | ||||||||||||||
Twelve months ended Jun. 30, | ||||||||||||||||||||||||||||||||
2006 | Revenues - outsiders | $ | 1,929.0 | $ | 617.4 | $ | 551.9 | $ | 196.2 | $ | 7.5 | $ | — | $ | 3.4 | $ | 3,305.4 | |||||||||||||||
Sales to affiliates | 2.3 | — | — | 96.6 | — | — | (98.9 | ) | — | |||||||||||||||||||||||
Total revenues | 1,931.3 | 617.4 | 551.9 | 292.8 | 7.5 | — | (95.5 | ) | 3,305.4 | |||||||||||||||||||||||
Equity Earnings in Unconsolidated Affiliates | — | — | — | (0.1 | ) | 57.3 | — | 2.8 | 60.0 | |||||||||||||||||||||||
Depreciation | 187.0 | 35.9 | 37.1 | 21.5 | 0.8 | 0.4 | 0.4 | 283.1 | ||||||||||||||||||||||||
Restructuring costs | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Total interest charges(1) | 103.5 | 15.4 | 11.9 | 5.0 | 16.2 | 0.2 | 123.7 | 275.9 | ||||||||||||||||||||||||
Allocated interest expense(1) | — | — | 11.0 | (0.9 | ) | 14.4 | — | (24.5 | ) | — | ||||||||||||||||||||||
Provision (Benefit) for income taxes | 89.0 | 18.2 | 43.6 | 8.7 | (0.4 | ) | (2.9 | ) | (36.1 | ) | 120.1 | |||||||||||||||||||||
Net income (loss) from continuing operations | $ | 145.8 | $ | 29.2 | $ | 97.5 | $ | 22.5 | (5) | $ | 38.3 | $ | (0.3 | )(4) | $ | (69.7 | )(2) | $ | 263.3 | |||||||||||||
2005 | Revenues - outsiders | $ | 1,689.0 | $ | 449.3 | $ | 404.2 | $ | 187.3 | $ | 8.4 | $ | 4.4 | $ | 15.5 | $ | 2,758.1 | |||||||||||||||
Sales to affiliates | 3.3 | — | — | 81.8 | — | — | (85.1 | ) | — | |||||||||||||||||||||||
Total revenues | 1,692.3 | 449.3 | 404.2 | 269.1 | 8.4 | 4.4 | (69.6 | ) | 2,758.1 | |||||||||||||||||||||||
Equity Earnings in Unconsolidated Affiliates | — | — | — | 0.2 | 58.5 | 0.5 | (0.2 | ) | 59.0 | |||||||||||||||||||||||
Depreciation | 183.0 | 34.5 | 35.6 | 21.9 | 0.7 | 0.8 | 0.6 | 277.1 | ||||||||||||||||||||||||
Restructuring costs | — | 0.7 | — | — | — | 0.4 | — | 1.1 | ||||||||||||||||||||||||
Total interest charges(1) | 95.4 | 15.1 | 12.6 | 5.0 | 14.1 | 33.1 | 129.7 | 305.0 | ||||||||||||||||||||||||
Allocated interest expense(1) | — | — | 12.4 | (0.8 | ) | 13.7 | 33.1 | (59.1 | ) | (0.7 | ) | |||||||||||||||||||||
Provision (Benefit) for income taxes | 81.2 | 17.4 | 38.9 | 7.3 | (7.9 | ) | (252.7 | ) | (92.5 | ) | (208.3 | ) | ||||||||||||||||||||
Net income (loss) from continuing operations | $ | 141.0 | $ | 27.9 | $ | 84.2 | (6) | $ | 16.5 | $ | 30.3 | (3) | $ | (419.8 | )(4) | $ | (121.5 | )(2) | $ | (241.4 | ) | |||||||||||
| (1) | Segment net income is reported on a basis that includes internally allocated financing costs. Allocated interest is included in Total interest charges. |
| (2) | Results for the 12 months ended Jun. 30, 2006 and Jun. 30, 2005 include $1.7 million and $45.0 million, respectively, of after-tax debt extinguishment charges at TECO Parent. Also included in the 12 months ended Jun. 30, 2006 is the $8.1 million gain on the sale of McAdams taking place in the 2nd quarter of 2006. |
| (3) | TECO Guatemala’s net income for the 12 months ended Jun. 30, 2005 includes a $12.8 million after-tax charge for steam turbine impairments as well as $1.9 million for the reversal of tax expense related to cash repatriations. |
| (4) | TWG Merchant’s results for the 12 months ended Jun. 30, 2006 included a net $1.9 million benefit and the results for the 12 months ended Jun. 30, 2005 included net charges totaling $381.7 million, both related to the Dell and McAdams power stations. Note that in 2006, remaining results for TWG Merchant are included in Parent/other. |
| (5) | TECO Transport’s results include net storm (costs) benefits of: $0.7 million for Q2 2006, $(2.1) million for the 6 months ended Jun. 30, 2006 and $(1.0) million for the 12 months ended Jun. 30, 2006. |
| (6) | TECO Coal’s results for the 12 months ended Jun. 30, 2005 include a $7.0 million benefit related to synfuel tax credits that had been written-off in 2003’s fourth quarter. |
| (7) | Results for Peoples Gas in 2006 include the remaining operating Solutions companies. |
TAMPA ELECTRIC COMPANY
ELECTRIC OPERATING STATISTICS (Unaudited)
| Operating Revenues* | Percent | Sales—Kilowatt-hours* | Percent | |||||||||||||||
Three Months Ended June 30, | 2006 | 2005 | 2006 | 2005 | ||||||||||||||
Residential | $ | 234,859 | $ | 192,357 | 22.1 | 2,138,136 | 1,951,320 | 9.6 | ||||||||||
Commercial | 151,746 | 126,147 | 20.3 | 1,601,984 | 1,519,622 | 5.4 | ||||||||||||
Industrial — Phosphate | 15,582 | 16,423 | (5.1 | ) | 236,938 | 303,186 | (21.9 | ) | ||||||||||
Industrial — Other | 29,167 | 24,282 | 20.1 | 349,376 | 334,482 | 4.5 | ||||||||||||
Other sales of electricity | 40,384 | 34,155 | 18.2 | 415,691 | 398,118 | 4.4 | ||||||||||||
| 471,738 | 393,364 | 19.9 | 4,742,125 | 4,506,728 | 5.2 | |||||||||||||
Deferred and other revenues | 32,906 | 10,071 | — | — | — | — | ||||||||||||
Sales for resale | 17,834 | 13,085 | 36.3 | 209,163 | 204,119 | 2.5 | ||||||||||||
Other operating revenue | 9,208 | 8,885 | 3.6 | — | — | — | ||||||||||||
SO2 Allowance Sales | 1,405 | — | — | — | — | — | ||||||||||||
| $ | 533,091 | $ | 425,405 | 25.3 | 4,951,288 | 4,710,847 | 5.1 | |||||||||||
Average customers | 651,755 | 633,040 | 3.0 | — | — | — | ||||||||||||
Retail Output to Line | 5,275,701 | 4,965,998 | 6.2 | |||||||||||||||
| Operating Revenues* | Percent | Sales—Kilowatt-hours* | Percent | |||||||||||||||
Six Months Ended June 30, | 2006 | 2005 | 2006 | 2005 | ||||||||||||||
Residential | $ | 439,471 | $ | 369,782 | 18.8 | 3,982,239 | 3,738,584 | 6.5 | ||||||||||
Commercial | 285,119 | 240,275 | 18.7 | 2,995,604 | 2,877,101 | 4.1 | ||||||||||||
Industrial — Phosphate | 28,940 | 33,058 | (12.5 | ) | 437,615 | 612,172 | (28.5 | ) | ||||||||||
Industrial — Other | 55,430 | 46,575 | 19.0 | 662,051 | 644,001 | 2.8 | ||||||||||||
Other sales of electricity | 77,070 | 65,752 | 17.2 | 785,807 | 759,055 | 3.5 | ||||||||||||
| 886,030 | 755,442 | 17.3 | 8,863,316 | 8,630,913 | 2.7 | |||||||||||||
Deferred and other revenues | 4,315 | 6,923 | (37.7 | ) | — | — | — | |||||||||||
Sales for resale | 38,319 | 24,536 | 56.2 | 470,343 | 377,548 | 24.6 | ||||||||||||
Other operating revenue | 19,133 | 18,533 | 3.2 | — | — | — | ||||||||||||
SO2 Allowance Sales | 42,168 | — | — | — | — | — | ||||||||||||
| $ | 989,965 | $ | 805,434 | 22.9 | 9,333,659 | 9,008,461 | 3.6 | |||||||||||
Average customers | 650,278 | 631,362 | 3.0 | — | — | — | ||||||||||||
Retail Output to Line | 9,538,695 | 9,207,444 | 3.6 | |||||||||||||||
| Operating Revenues* | Percent | Sales—Kilowatt-hours* | Percent | |||||||||||||||
Twelve Months Ended June 30, | 2006 | 2005 | 2006 | 2005 | ||||||||||||||
Residential | $ | 907,789 | $ | 810,841 | 12.0 | 8,802,116 | 8,223,424 | 7.0 | ||||||||||
Commercial | 561,285 | 506,948 | 10.7 | 6,352,485 | 6,050,249 | 5.0 | ||||||||||||
Industrial — Phosphate | 59,153 | 66,379 | (10.9 | ) | 974,345 | 1,190,637 | (18.2 | ) | ||||||||||
Industrial — Other | 105,173 | 95,188 | 10.5 | 1,346,685 | 1,305,446 | 3.2 | ||||||||||||
Other sales of electricity | 151,623 | 138,191 | 9.7 | 1,668,607 | 1,596,891 | 4.5 | ||||||||||||
| 1,785,023 | 1,617,547 | 10.4 | 19,144,238 | 18,366,647 | 4.2 | |||||||||||||
Deferred and other revenues | (78,591 | ) | (10,416 | ) | — | — | — | — | ||||||||||
Sales for resale | 64,334 | 46,357 | 38.8 | 866,443 | 732,902 | 18.2 | ||||||||||||
Other operating revenue | 38,653 | 38,833 | (0.5 | ) | — | — | — | |||||||||||
SO2 Allowance Sales | 121,927 | — | — | — | — | — | ||||||||||||
| $ | 1,931,346 | $ | 1,692,321 | 14.1 | 20,010,681 | 19,099,549 | 4.8 | |||||||||||
Average customers | 645,205 | 626,534 | 3.0 | — | — | — | ||||||||||||
Retail Output to Line | 20,193,608 | 19,317,300 | 4.5 | |||||||||||||||
| * | in thousands |
PEOPLES GAS SYSTEM
GAS OPERATING STATISTICS (Unaudited)
| Operating Revenues* | Percent | Therms* | Percent | |||||||||||||
Three Months Ended June 30, | 2006 | 2005 | 2006 | 2005 | ||||||||||||
By Customer Segment: | ||||||||||||||||
Residential | $ | 28,366 | $ | 27,318 | 3.8 | 13,243 | 13,725 | (3.5 | ) | |||||||
Commercial | 38,895 | 39,241 | (0.9 | ) | 88,592 | 92,912 | (4.6 | ) | ||||||||
Industrial | 2,517 | 2,549 | (1.3 | ) | 54,947 | 55,652 | (1.3 | ) | ||||||||
Off System Sales | 53,001 | 33,472 | 58.3 | 68,967 | 44,291 | 55.7 | ||||||||||
Power generation | 3,813 | 2,612 | 46.0 | 114,090 | 56,214 | — | ||||||||||
Other revenues | 9,312 | 7,817 | 19.1 | — | — | — | ||||||||||
| $ | 135,904 | $ | 113,009 | 20.3 | 339,839 | 262,794 | 29.3 | |||||||||
By Sales Type: | ||||||||||||||||
System supply | $ | 104,669 | $ | 84,633 | 23.7 | 97,890 | 76,933 | 27.2 | ||||||||
Transportation | 21,923 | 20,559 | 6.6 | 241,949 | 185,861 | 30.2 | ||||||||||
Other revenues | 9,312 | 7,817 | 19.1 | — | — | — | ||||||||||
| $ | 135,904 | $ | 113,009 | 20.3 | 339,839 | 262,794 | 29.3 | |||||||||
Average customers | 328,254 | 319,257 | 2.8 | — | — | — | ||||||||||
| Operating Revenues* | Percent | Therms* | Percent | |||||||||||||
Six Months Ended June 30, | 2006 | 2005 | 2006 | 2005 | ||||||||||||
By Customer Segment: | ||||||||||||||||
Residential | $ | 90,630 | $ | 76,549 | 18.4 | 44,476 | 43,820 | 1.5 | ||||||||
Commercial | 94,970 | 91,063 | 4.3 | 198,163 | 208,355 | (4.9 | ) | |||||||||
Industrial | 5,407 | 5,284 | 2.3 | 112,787 | 111,603 | 1.1 | ||||||||||
Off System Sales | 102,304 | 60,495 | 69.1 | 126,226 | 87,432 | 44.4 | ||||||||||
Power generation | 6,637 | 5,600 | 18.5 | 180,726 | 120,145 | 50.4 | ||||||||||
Other revenues | 20,797 | 16,736 | 24.3 | — | — | — | ||||||||||
| $ | 320,745 | $ | 255,727 | 25.4 | 662,378 | 571,355 | 15.9 | |||||||||
By Sales Type: | ||||||||||||||||
System supply | $ | 253,541 | $ | 194,301 | 30.5 | 207,610 | 177,127 | 17.2 | ||||||||
Transportation | 46,407 | 44,690 | 3.8 | 454,768 | 394,228 | 15.4 | ||||||||||
Other revenues | 20,797 | 16,736 | 24.3 | — | — | — | ||||||||||
| $ | 320,745 | $ | 255,727 | 25.4 | 662,378 | 571,355 | 15.9 | |||||||||
Average customers | 328,166 | 318,123 | 3.2 | — | — | — | ||||||||||
| Operating Revenues* | Percent | Therms* | Percent | |||||||||||||
Twelve Months Ended June 30, | 2006 | 2005 | 2006 | 2005 | ||||||||||||
By Customer Segment: | ||||||||||||||||
Residential | $ | 152,979 | $ | 122,830 | 24.5 | 71,386 | 67,435 | 5.9 | ||||||||
Commercial | 177,740 | 156,945 | 13.2 | 370,096 | 376,897 | (1.8 | ) | |||||||||
Industrial | 10,991 | 9,786 | 12.3 | 209,216 | 211,305 | (1.0 | ) | |||||||||
Off System Sales | 218,466 | 117,030 | 86.7 | 225,387 | 184,690 | 22.0 | ||||||||||
Power generation | 14,760 | 11,237 | 31.4 | 352,279 | 267,126 | 31.9 | ||||||||||
Other revenues | 39,544 | 31,512 | 25.5 | — | — | — | ||||||||||
| $ | 614,480 | $ | 449,340 | 36.8 | 1,228,364 | 1,107,453 | 10.9 | |||||||||
By Sales Type: | ||||||||||||||||
System supply | $ | 485,982 | $ | 334,729 | 45.2 | 367,576 | 332,767 | 10.5 | ||||||||
Transportation | 88,954 | 83,099 | 7.0 | 860,788 | 774,686 | 11.1 | ||||||||||
Other revenues | 39,544 | 31,512 | 25.5 | — | — | — | ||||||||||
| $ | 614,480 | $ | 449,340 | 36.8 | 1,228,364 | 1,107,453 | 10.9 | |||||||||
Average customers | 323,405 | 313,553 | 3.1 | — | — | — | ||||||||||
| * | in thousands |