Exhibit 99
FPL Group, Inc.
Corporate Communications Dept.
Media Line: (305) 552-3888
April 30, 2007
FOR IMMEDIATE RELEASE
|
FPL Group announces approximately 20 percent growth in first quarter adjusted earnings
- FPL Energy adjusted earnings increase over 30 percent quarter over quarter
- Florida Power & Light Company benefits from strong customer growth
- FPL Group reaffirms 2007 and 2008 adjusted earnings expectations
JUNO BEACH, Fla. (April 30, 2007) - FPL Group, Inc. (NYSE: FPL) today reported 2007 first quarter net income on a GAAP basis of $150 million, or $0.38 per share, compared with $251 million, or $0.64 per share, in the first quarter of 2006. FPL Group's net income for the first quarter of 2007 included a net unrealized after-tax loss of $126 million associated with the mark-to-market effect of non-qualifying hedges. The results for last year's first quarter included a net unrealized after-tax gain of $23 million associated with the mark-to-market effect of non-qualifying hedges and $3 million of after-tax merger related costs.
Excluding the mark-to-market effect of non-qualifying hedges (and merger-related costs in 2006), FPL Group's adjusted earnings were $276 million, or $0.70 per share, for the first quarter of 2007, compared with $231 million, or $0.59 per share, in the first quarter of 2006.
The difference between 2007 first quarter GAAP results and adjusted results is the negative impact of marking to market non-qualifying hedges. The negative mark in the first quarter is the result of increasing forward prices for natural gas and power during the quarter and implies an increase in underlying values for FPL Energy's power generation assets, not marked to market under GAAP, as well as improved market conditions for future contracting opportunities.
FPL Group's management uses adjusted earnings internally for financial planning, for analysis of performance, for reporting of results to the Board of Directors and as inputs in determining whether performance targets are met for performance-based compensation under the company's employee incentive compensation plans. FPL Group also uses earnings expressed in this fashion when communicating its earnings outlook to analysts and investors. FPL Group management believes that adjusted earnings provide a more meaningful representation of FPL Group's fundamental earnings power.
"FPL Group is off to an excellent start in 2007 with another outstanding quarter of earnings growth at FPL Energy coupled with a solid contribution from FPL," said Lew Hay, chairman and chief executive officer of FPL Group. "FPL Energy once again posted double-digit adjusted earnings growth and, similar to last year's first quarter, exceeded the contributions of FPL on an adjusted earnings basis. FPL Energy's results were driven by incremental asset additions, strong results from our wholesale marketing activities and favorable market conditions.
"FPL also performed well in the quarter and benefited from strong customer growth reflecting the continued attractiveness of the Florida economy, but, similar to recent quarters, usage growth, adjusted for weather, remained weak."
Florida Power & LightCompany
FPL, FPL Group's rate-regulated utility subsidiary, reported first quarter net income of $126 million or $0.32 per share, compared to $122 million, or $0.31 per share, for the prior-year quarter.
Retail sales of electricity grew three percent during the first quarter. Much of this was driven by customer growth: in the last 12 months,the average number of FPL accounts increased by 98,000 or 2.2 percent, which is slightly ahead of FPL's long-term historical growth rate.
For the first quarter of 2007, operations and maintenance (O&M) expenses were essentially flat compared to the prior-year quarter. Higher customer service, nuclear, employee benefit and insurance costs were offset by lower distribution expenses. Last year's first quarter saw unusually high distribution spending, driven by additional maintenance and repair activities after the 2005 hurricane season.
Full-year O&M is not expected to remain flat. FPL expects increases in nuclear and fossil generation expenses, employee benefits costs, and the impact of the Storm Secure®program to be partially offset by continued productivity gains in other areas. Storm Secureis FPL's comprehensive program to further strengthen its electric infrastructure and power plants against hurricane impacts. For the next few years, FPL expects to spend about $50 million of O&M per year in support of its infrastructure hardening activities. In addition, FPL expects incremental capital investments of $70 million to $200 million per year for its Storm Secure efforts.
Depreciation in the first quarter fell $7 million to $188 million, with higher transmission and distribution depreciation more than offset by reductions in certain amounts recovered through the capacity clause.
Depreciation costs are expected to increase as FPL continues to invest in generation and distribution infrastructure to support customer growth.
"FPL's overall performance for the first quarter was in line with our expectations," said Hay. "FPL had another strong quarter of customer growth and favorable weather related sales comparisons; however, underlying usage, or that portion of usage which cannot be attributed to weather, declined slightly in the quarter."
In early April, FPL filed its ten-year resource plan with the Florida Public Service Commission (PSC) and said it anticipates needing to add approximately 6,700 megawatts of new generation through 2016, in addition to incremental demand side management programs equivalent to nearly 1,500 megawatts of capacity. Over the last 25 years, FPL's demand side management programs have avoided the need for 3,660 megawatts of capacity.
FPL's 1,144 megawatt Turkey Point 5 power plant is expected to become operational in May, slightly ahead of schedule and under budget. The West County Energy Center is currently under construction and the first of the two 1,220 megawatt units is expected to be placed into service in 2009.
Also in April, the PSC began hearings on the need for the proposed 1,960 megawatt Glades Power Park (FGPP). During the hearings, FPL presented evidence to the PSC that the FGPP is not only needed, but that it is expected to be the cleanest coal power plant in the nation with the highest level of efficiency and the lowest CO2 emission rates. The plant will set a standard of excellence for emission controls as it will be 23 percent more efficient than the average existing U.S. coal power plant and produce significantly lower emissions. Including the addition of FGPP, FPL still expects to reduce its CO2 emission rate per megawatt hour 15 percent from 2005 to 2015. The PSC is expected to issue a final order on the need for the FPL Glades Power Park in June 2007.
FPL Energy
FPL Energy, the competitive energy subsidiary of FPL Group, reported first quarter net income on a GAAP basis of $45 million or $0.11 per share, compared to $154 million, or $0.39 per share, in the prior year quarter. FPL Energy's net income for the first quarter of 2007 included a net unrealized after-tax loss of $126 million associated with the mark-to-market effect of non-qualifying hedges. The results for last year's first quarter included a net unrealized after-tax gain of $23 million associated with the mark-to-market effect of non-qualifying hedges.
Excluding the mark-to-market effect of non-qualifying hedges, adjusted net income for FPL Energy was $171 million, or $0.43 per share, compared to $131 million, or $0.33 per share, in 2006.
The loss in the non-qualifying hedge category is offset by increases in the fair value of physical asset positions in the portfolio, which are not marked-to-market under GAAP. The same factors that drove the decline in value of the hedges also increased the future value of many of FPL Energy's physical assets.
FPL Energy's growth in adjusted earnings in the first quarter was driven primarily by incremental asset additions and growth in the contribution from the wholesale marketing activities.
"The outstanding performance at FPL Energy reflects the strength of our balanced business model," said Hay. "We entered the year highly hedged. Our existing portfolio delivered results comparable to last year's very strong performance, while new assets and favorable results from our full requirements business led to strong growth overall."
FPL Energy's hedged gross margin position for 2007 remains essentially unchanged from the pervious quarter, while hedging of 2008 expected output increased modestly. Over 90 percent of FPL Energy's 2007 equivalent gross margin is protected against commodity price volatility. For 2008 the comparable figure is 85 percent.
FPL Energy's 2007 wind program continues to make excellent progress. Thus far in 2007, the company has well over 500 megawatts of new wind projects under construction, all of which are expected to reach commercial operation by the end of the year. FPL Energy expects to add at least 1,500 megawatts in the 2007/2008 timeframe.
Corporate and Other
Corporate and Other negatively impacted net income by $21 million or $0.05 per share, primarily driven by interest expense.
Outlook
"At this early stage of the year we are not changing our previously disclosed adjusted earnings expectations for 2007 and 2008. For 2007, we expect adjusted EPS to be in the range of $3.35 to $3.45, while for 2008, we expect adjusted EPS to be in the range of $3.60 to $3.80," said Hay. "Although we are not changing our official earnings expectations for 2007 and 2008 at this time, I am pleased with the general trend of the first quarter and optimistic that we can achieve better than the mid-points of the respective ranges."
For 2007, the strong start made by FPL Energy is tempered somewhat by continuing uncertainty over trends in usage per customer at FPL.
For 2008, FPL Group now expects some additional contribution from the pending acquisition of Point Beach Nuclear Plant, which was not factored into adjusted EPS expectations last fall. However, as noted when the transaction was announced, the impact in 2008 is only a few pennies, and the major impact is not expected until after that time.
As always, FPL Group's earnings expectations assume normal weather and operating conditions and exclude the effect of adopting new accounting standards, if any, and the mark-to-market effect of non-qualifying hedges, neither of which can be determined at this time.
As previously announced, FPL Group's first quarter earnings conference call is scheduled for 9 a.m. ET on Monday, April 30, 2007. The webcast is available on FPL Group's website by accessing the following link, http://www.FPLGroup.com/investor/contents/investor_index.shtml. The slides accompanying the presentation may be downloaded at www.FPLGroup.com beginning at 7:30 a.m. ET today. For persons unable to listen to the live webcast, a replay will be available for 30 days by accessing the same link as listed above.
This press release should be read in conjunction with the attached unaudited financial information.
Profile
FPL Group, with annual revenues of nearly $16 billion, is nationally known as a high quality, efficient, and customer-driven organization focused on energy-related products and services. With a growing presence in 26 states, it is widely recognized as one of the country's premier power companies. Its principal subsidiary, Florida Power & Light Company, serves 4.4 million customer accounts in Florida. FPL Energy, LLC, an FPL Group competitive energy subsidiary, is a leader in producing electricity from clean and renewable fuels. Additional information is available on the Internet at www.FPLGroup.com , www.FPL.com and www.FPLEnergy.com.
Cautionary Statements And Risk Factors That May Affect Future Results
In connection with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 (Reform Act), FPL Group, Inc. (FPL Group) and Florida Power & Light Company (FPL) are hereby providing cautionary statements identifying important factors that could cause FPL Group's or FPL's actual results to differ materially from those projected in forward-looking statements (as such term is defined in the Reform Act) made by or on behalf of FPL Group and FPL in this press release, on their respective websites, in response to questions or otherwise. Any statements that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions or future events or performance (often, but not always, through the use of words or phrases such as will likely result, are expected to, will continue, is anticipated, believe, could, estimated, may, plan, potential, projection, target, outlook) are not statements of historical facts and may be forward-looking. Forward-looking statements involve estimates, assumptions and uncertainties. Accordingly, any such statements are qualified in their entirety by reference to, and are accompanied by, the following important factors (in addition to any assumptions and other factors referred to specifically in connection with such forward-looking statements) that could cause FPL Group's or FPL's actual results to differ materially from those contained in forward-looking statements made by or on behalf of FPL Group and FPL.
Any forward-looking statement speaks only as of the date on which such statement is made, and FPL Group and FPL undertake no obligation to update any forward-looking statement to reflect events or circumstances, including unanticipated events, after the date on which such statement is made. New factors emerge from time to time and it is not possible for management to predict all of such factors, nor can it assess the impact of each such factor on the business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statement.
The following are some important factors that could have a significant impact on FPL Group's and FPL's operations and financial results, and could cause FPL Group's and FPL's actual results or outcomes to differ materially from those discussed in the forward-looking statements:
FPL Group and FPL are subject to complex laws and regulations and to changes in laws and regulations as well as changing governmental policies and regulatory actions, including initiatives regarding deregulation and restructuring of the energy industry and environmental matters. FPL holds franchise agreements with local municipalities and counties, and must renegotiate expiring agreements. These factors may have a negative impact on the business and results of operations of FPL Group and FPL.
- FPL Group and FPL are subject to complex laws and regulations, and to changes in laws or regulations, including the Public Utility Regulatory Policies Act of 1978, as amended, the Public Utility Holding Company Act of 2005, the Federal Power Act, the Atomic Energy Act of 1954, as amended, the Energy Policy Act of 2005 (2005 Energy Act) and certain sections of the Florida statutes relating to public utilities, changing governmental policies and regulatory actions, including those of the Federal Energy Regulatory Commission (FERC), the Florida Public Service Commission (FPSC) and the legislatures and utility commissions of other states in which FPL Group has operations, and the Nuclear Regulatory Commission (NRC), with respect to, among other things, allowed rates of return, industry and rate structure, operation of nuclear power facilities, operation and construction of plant facilities, operation and construction of transmission facilities, acquisition, disposal, depreciation and amort ization of assets and facilities, recovery of fuel and purchased power costs, decommissioning costs, return on common equity and equity ratio limits, and present or prospective wholesale and retail competition (including but not limited to retail wheeling and transmission costs). The FPSC has the authority to disallow recovery by FPL of any and all costs that it considers excessive or imprudently incurred. The regulatory process generally restricts FPL's ability to grow earnings and does not provide any assurance as to achievement of earnings levels.
- FPL Group and FPL are subject to extensive federal, state and local environmental statutes as well as the effect of changes in or additions to applicable statutes, rules and regulations relating to air quality, water quality, climate change, waste management, wildlife mortality, natural resources and health and safety that could, among other things, restrict or limit the output of certain facilities or the use of certain fuels required for the production of electricity and/or require additional pollution control equipment and otherwise increase costs. There are significant capital, operating and other costs associated with compliance with these environmental statutes, rules and regulations, and those costs could be even more significant in the future.
- FPL Group and FPL operate in a changing market environment influenced by various legislative and regulatory initiatives regarding deregulation, regulation or restructuring of the energy industry, including deregulation or restructuring of the production and sale of electricity. FPL Group and its subsidiaries will need to adapt to these changes and may face increasing competitive pressure.
- FPL Group's and FPL's results of operations could be affected by FPL's ability to renegotiate franchise agreements with municipalities and counties in Florida.
The operation and maintenance of power generation facilities, including nuclear facilities, involve significant risks that could adversely affect the results of operations and financial condition of FPL Group and FPL.
- The operation and maintenance of power generation facilities involve many risks, including, but not limited to, start up risks, breakdown or failure of equipment, transmission lines or pipelines, the inability to properly manage or mitigate known equipment defects throughout our generation fleets unless and until such defects are remediated, use of new technology, the dependence on a specific fuel source, including the supply and transportation of fuel, or the impact of unusual or adverse weather conditions (including natural disasters such as hurricanes), as well as the risk of performance below expected or contracted levels of output or efficiency. This could result in lost revenues and/or increased expenses, including, but not limited to, the requirement to purchase power in the market at potentially higher prices to meet contractual obligations. Insurance, warranties or performance guarantees may not cover any or all of the lost revenues or increased expenses, including the cost of replacement power. In addition to these risks, FPL Group's and FPL's nuclear units face certain risks that are unique to the nuclear industry including, but not limited to, the ability to store and/or dispose of spent nuclear fuel and the potential payment of significant retrospective insurance premiums, as well as additional regulatory actions up to and including shutdown of the units stemming from public safety concerns, whether at FPL Group's and FPL's plants, or at the plants of other nuclear operators. Breakdown or failure of an operating facility of FPL Energy may prevent the facility from performing under applicable power sales agreements which, in certain situations, could result in termination of the agreement or incurring a liability for liquidated damages.
The construction of, and capital improvements to, power generation facilities involve substantial risks. Should construction or capital improvement efforts be unsuccessful, the results of operations and financial condition of FPL Group and FPL could be adversely affected.
- FPL Group's and FPL's ability to successfully and timely complete their power generation facilities currently under construction, those projects yet to begin construction or capital improvements to existing facilities within established budgets is contingent upon many variables and subject to substantial risks. Should any such efforts be unsuccessful, FPL Group and FPL could be subject to additional costs, termination payments under committed contracts, and/or the write-off of their investment in the project or improvement.
The use of derivative contracts by FPL Group and FPL in the normal course of business could result in financial losses that negatively impact the results of operations of FPL Group and FPL.
- FPL Group and FPL use derivative instruments, such as swaps, options and forwards to manage their commodity and financial market risks. FPL Group provides full energy and capacity requirements services and engages in trading activities. FPL Group could recognize financial losses as a result of volatility in the market values of these contracts, or if a counterparty fails to perform. In the absence of actively quoted market prices and pricing information from external sources, the valuation of these derivative instruments involves management's judgment or use of estimates. As a result, changes in the underlying assumptions or use of alternative valuation methods could affect the reported fair value of these contracts. In addition, FPL's use of such instruments could be subject to prudency challenges and if found imprudent, cost recovery could be disallowed by the FPSC.
FPL Group's competitive energy business is subject to risks, many of which are beyond the control of FPL Group, that may reduce the revenues and adversely impact the results of operations and financial condition of FPL Group.
- There are other risks associated with FPL Group's competitive energy business. In addition to risks discussed elsewhere, risk factors specifically affecting FPL Energy's success in competitive wholesale markets include the ability to efficiently develop and operate generating assets, the successful and timely completion of project restructuring activities, maintenance of the qualifying facility status of certain projects, the price and supply of fuel (including transportation), transmission constraints, competition from new sources of generation, excess generation capacity and demand for power. There can be significant volatility in market prices for fuel and electricity, and there are other financial, counterparty and market risks that are beyond the control of FPL Energy. FPL Energy's inability or failure to effectively hedge its assets or positions against changes in commodity prices, interest rates, counterparty credit risk or other risk measures co uld significantly impair FPL Group's future financial results. In keeping with industry trends, a portion of FPL Energy's power generation facilities operate wholly or partially without long-term power purchase agreements. As a result, power from these facilities is sold on the spot market or on a short-term contractual basis, which may affect the volatility of FPL Group's financial results. In addition, FPL Energy's business depends upon transmission facilities owned and operated by others; if transmission is disrupted or capacity is inadequate or unavailable, FPL Energy's ability to sell and deliver its wholesale power may be limited.
FPL Group's ability to successfully identify, complete and integrate acquisitions is subject to significant risks, including the effect of increased competition for acquisitions resulting from the consolidation of the power industry.
- FPL Group is likely to encounter significant competition for acquisition opportunities that may become available as a result of the consolidation of the power industry, in general, as well as the passage of the 2005 Energy Act. In addition, FPL Group may be unable to identify attractive acquisition opportunities at favorable prices and to successfully and timely complete and integrate them.
Because FPL Group and FPL rely on access to capital markets, the inability to maintain current credit ratings and access capital markets on favorable terms may limit the ability of FPL Group and FPL to grow their businesses and would likely increase interest costs.
- FPL Group and FPL rely on access to capital markets as a significant source of liquidity for capital requirements not satisfied by operating cash flows. The inability of FPL Group, FPL Group Capital Inc and FPL to maintain their current credit ratings could affect their ability to raise capital on favorable terms, particularly during times of uncertainty in the capital markets, which, in turn, could impact FPL Group's and FPL's ability to grow their businesses and would likely increase their interest costs.
Customer growth in FPL's service area affects FPL Group's and FPL's results of operations.
- FPL Group's and FPL's results of operations are affected by the growth in customer accounts in FPL's service area. Customer growth can be affected by population growth as well as economic factors in Florida, including job and income growth, housing starts and new home prices. Customer growth directly influences the demand for electricity and the need for additional power generation and power delivery facilities at FPL.
Weather affects FPL Group's and FPL's results of operations.
- FPL Group's and FPL's results of operations are affected by changes in the weather. Weather conditions directly influence the demand for electricity and natural gas and affect the price of energy commodities, and can affect the production of electricity at wind and hydro-powered facilities. FPL Group's and FPL's results of operations can be affected by the impact of severe weather which can be destructive, causing outages and/or property damage, may affect fuel supply, and could require additional costs to be incurred. At FPL, recovery of these costs is subject to FPSC approval.
FPL Group and FPL are subject to costs and other effects of legal proceedings as well as changes in or additions to applicable tax laws, rates or policies, rates of inflation, accounting standards, securities laws and corporate governance requirements.
- FPL Group and FPL are subject to costs and other effects of legal and administrative proceedings, settlements, investigations and claims, as well as the effect of new, or changes in, tax laws, rates or policies, rates of inflation, accounting standards, securities laws and corporate governance requirements.
Threats of terrorism and catastrophic events that could result from terrorism may impact the operations of FPL Group and FPL in unpredictable ways.
- FPL Group and FPL are subject to direct and indirect effects of terrorist threats and activities. Generation and transmission facilities, in general, have been identified as potential targets. The effects of terrorist threats and activities include, among other things, terrorist actions or responses to such actions or threats, the inability to generate, purchase or transmit power, the risk of a significant slowdown in growth or a decline in the U.S. economy, delay in economic recovery in the U.S., and the increased cost and adequacy of security and insurance.
The ability of FPL Group and FPL to obtain insurance and the terms of any available insurance coverage could be affected by national, state or local events and company-specific events.
- FPL Group's and FPL's ability to obtain insurance, and the cost of and coverage provided by such insurance, could be affected by national, state or local events as well as company-specific events.
FPL Group and FPL are subject to employee workforce factors that could affect the businesses and financial condition of FPL Group and FPL.
- FPL Group and FPL are subject to employee workforce factors, including loss or retirement of key executives, availability of qualified personnel, collective bargaining agreements with union employees and work stoppage that could affect the businesses and financial condition of FPL Group and FPL.
The risks described herein are not the only risks facing FPL Group and FPL. Additional risks and uncertainties not currently known to FPL Group or FPL, or that are currently deemed to be immaterial, also may materially adversely affect FPL Group's or FPL's business, financial condition and/or future operating results.
FPL Group, Inc.
Condensed Consolidated Statements of Income
(millions, except per share amounts)
(unaudited) |
Three Months Ended March 31, 2007
| | Florida Power
& Light | FPL
Energy | | Corporate &
Other | FPL Group,
Inc. |
| | | | | | | | | | |
Operating Revenues | | $ 2,448 | | $ 585 | | $ 42 | | $ 3,075 |
| | | | | | | | | | | |
Operating Expenses | | | | | | | | |
| | Fuel, purchased power and interchange | | 1,414 | | 237 | | 21 | | 1,672 |
| | Other operations and maintenance | | 329 | | 172 | | 15 | | 516 |
| | Merger-related | | - | | - | | - | | - |
| | Amortization of storm reserve deficiency | | 23 | | - | | - | | 23 |
| | Depreciation and amortization | | 188 | | 103 | | 4 | | 295 |
| | Taxes other than income taxes | | 247 | | 26 | | (2) | | 271 |
| | | | | | | | | | |
| | Total operating expenses | | 2,201 | | 538 | | 38 | | 2,777 |
| | | | | | | | | | |
| | | | | | | | | | | |
Operating Income (Loss) | | 247 | | 47 | | 4 | | 298 |
| | | | | | | | | | |
Other Income (Deductions) | | | | | | | | |
| | Interest charges | | (68) | | (73) | | (39) | | (180) |
| | Equity in earnings of equity method investees | | - | | 10 | | - | | 10 |
| | Allowance for equity funds used during construction | | 8 | | - | | - | | 8 |
| | Interest income | | 1 | | 7 | | 7 | | 15 |
| | Other - net | | 6 | | (1) | | - | | 5 |
| | | | | | | | | | |
| | | Total other income (deductions) - net | | (53) | | (57) | | (32) | | (142) |
| | | | | | | | | | |
| | | | | | | | | | | |
Income (Loss) Before Income Taxes | | 194 | | (10) | | (28) | | 156 |
| | | | | | | | | | | |
Income Tax Expense (Benefit) | | 68 | | (55) | | (7) | | 6 |
| | | | | | | | | | |
| | | | | | | | | | | |
Net Income (Loss) | | $ 126 | | $ 45 | | $ (21) | | $ 150 |
| | | | | | | | | | |
| | | | | | | | | | | |
Reconciliation of Net Income (Loss) to Adjusted Earnings (Loss): | | | | | | |
| | | | | | | | | | | |
Net Income (Loss) | | $ 126 | | $ 45 | | $ (21) | | $ 150 |
| | | | | | | | | | | |
Adjustments, net of income taxes: | | | | | | | | |
| | Merger - related costs | | - | | - | | - | | - |
| | Net unrealized mark-to-market (gains) losses associated | | | | | | | | |
| | | with non-qualifying hedges | | - | | 126 | | - | | 126 |
| | | | | | | | | | |
| | | | | | | | | | | |
Adjusted Earnings (Loss) | | $ 126 | | $ 171 | | $ (21) | | $ 276 |
| | | | | | | | | | |
| | | | | | | | | | | |
Earnings (Loss) Per Share (assuming dilution) | | $ 0.32 | | $ 0.11 | | $ (0.05) | | $ 0.38 |
Adjusted Earnings (Loss) Per Share | | $ 0.32 | | $ 0.43 | | $ (0.05) | | $ 0.70 |
Weighted-average shares outstanding (assuming dilution) | | | | | | 400 |
| | | | | | | | | | | |
| | | | | | | | | | | |
FPL Energy's interest charges are based on a deemed capital structure of 50% debt for operating projects and 100% debt for projects under construction. Residual non-utility interest charges are included in Corporate & Other. Corporate & Other represents other business activities, other segments that are not separately reportable, eliminating entries, and may include the net effect of rounding. |
FPL Group, Inc.
Condensed Consolidated Statements of Income
(millions, except per share amounts)
(unaudited) |
Three Months Ended March 31, 2006
| | Florida Power
& Light | FPL
Energy | | Corporate &
Other | FPL Group,
Inc. |
| | | | | | | | | | |
Operating Revenues | | $ 2,584 | | $ 952 | | $ 48 | | $ 3,584 |
| | | | | | | | | | | |
Operating Expenses | | | | | | | | |
| | Fuel, purchased power and interchange | | 1,538 | | 487 | | 28 | | 2,053 |
| | Other operations and maintenance | | 330 | | 128 | | 11 | | 469 |
| | Merger-related | | - | | - | | 5 | | 5 |
| | Amortization of storm reserve deficiency | | 32 | | - | | - | | 32 |
| | Depreciation and amortization | | 195 | | 87 | | 4 | | 286 |
| | Taxes other than income taxes | | 243 | | 21 | | 2 | | 266 |
| | | | | | | | | | |
| | | Total operating expenses | | 2,338 | | 723 | | 50 | | 3,111 |
| | | | | | | | | | |
| | | | | | | | | | | |
Operating Income (Loss) | | 246 | | 229 | | (2) | | 473 |
| | | | | | | | | | |
| | | | | | | | | | | |
Other Income (Deductions) | | | | | | | | |
| | Interest charges | | (68) | | (63) | | (38) | | (169) |
| | Equity in earnings of equity method investees | | - | | 11 | | - | | 11 |
| | Allowance for equity funds used during construction | | 4 | | - | | - | | 4 |
| | Interest income | | 1 | | 5 | | 2 | | 8 |
| | Other - net | | (2) | | 4 | | (1) | | 1 |
| | | | | | | | | | |
| | | Total other income (deductions) - net | | (65) | | (43) | | (37) | | (145) |
| | | | | | | | | | |
| | | | | | | | | | | |
Income (Loss) Before Income Taxes | | 181 | | 186 | | (39) | | 328 |
| | | | | | | | | | | |
Income Tax Expense (Benefit) | | 59 | | 32 | | (14) | | 77 |
| | | | | | | | | | |
| | | | | | | | | | | |
Net Income (Loss) | | $ 122 | | $ 154 | | $ (25) | | $ 251 |
| | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Reconciliation of Net Income (Loss) to Adjusted Earnings (Loss): | | | | | | |
| | | | | | | | | | | |
Net Income (Loss) | | $ 122 | | $ 154 | | $ (25) | | $ 251 |
| | | | | | | | | | | |
Adjustments, net of income taxes: | | | | | | | | |
| | Merger - related costs | | - | | - | | 3 | | 3 |
| | Net unrealized mark-to-market (gains) losses associated | | | | | | | | |
| | | with non-qualifying hedges | | - | | (23) | | - | | (23) |
| | | | | | | | | | |
| | | | | | | | | | | |
Adjusted Earnings (Loss) | | $ 122 | | $ 131 | | $ (22) | | $ 231 |
| | | | | | | | | | |
| | | | | | | | | | | |
Earnings (Loss) Per Share (assuming dilution) | | $ 0.31 | | $ 0.39 | | $ (0.06) | | $ 0.64 |
Adjusted Earnings (Loss) Per Share | | $ 0.31 | | $ 0.33 | | $ (0.05) | | $ 0.59 |
Weighted-average shares outstanding (assuming dilution) | | | | | | 393 |
| | | | | | | | | | | |
| | | | | | | | | | | |
FPL Energy's interest charges are based on a deemed capital structure of 50% debt for operating projects and 100% debt for projects under construction. Residual non-utility interest charges are included in Corporate & Other. Corporate & Other represents other business activities, other segments that are not separately reportable, eliminating entries, and may include the net effect of rounding. |
Amounts have been adjusted to reflect the retrospective application of an accounting standard change related to planned major maintenance activities. |
FPL Group, Inc.
Condensed Consolidated Balance Sheets
(millions)
(unaudited) | | |
March 31, 2007
| | Florida Power
& Light | FPL
Energy | Corporate &
Other | FPL Group,
Inc. |
| | | | | | | | | |
Property, Plant and Equipment | | | | | | | | |
Electric utility plant in service and other property | $ 24,323 | | $ 9,769 | | $ 236 | | $ 34,328 |
Nuclear fuel | | 458 | | 304 | | - | | 762 |
Construction work in progress | | 1,303 | | 575 | | 10 | | 1,888 |
Less accumulated depreciation and amortization | (9,880) | | (1,798) | | (129) | | (11,807) |
| | | | | | | | | |
| | Total property, plant and equipment - net | 16,204 | | 8,850 | | 117 | | 25,171 |
| | | | | | | | | |
| | | | | | | | | | |
Current Assets | | | | | | | | |
Cash and cash equivalents | | 43 | | 161 | | 22 | | 226 |
Customer receivables, net of allowances | | 744 | | 462 | | 18 | | 1,224 |
Other receivables, net of allowances | | 136 | | 376 | | 199 | | 711 |
Materials, supplies and fossil fuel inventory - at avg. cost | 551 | | 161 | | 7 | | 719 |
Regulatory assets: | | | | | | | | |
Deferred clause and franchise expenses | | 41 | | - | | - | | 41 |
Storm reserve deficiency | | 108 | | - | | - | | 108 |
Derivatives | | 378 | | - | | - | | 378 |
Other | | - | | - | | 3 | | 3 |
Derivatives | | 11 | | 133 | | - | | 144 |
Other | | 201 | | 193 | | (7) | | 387 |
| | | | | | | | | |
| Total current assets | | 2,213 | | 1,486 | | 242 | | 3,941 |
| | | | | | | | | |
| | | | | | | | | | |
Other Assets | | | | | | | | |
Nuclear decommissioning reserve funds | | 2,288 | | 567 | | - | | 2,855 |
Pension plan assets - net | | 876 | | - | | 751 | | 1,627 |
Other investments | | 8 | | 276 | | 171 | | 455 |
Regulatory assets: | | | | | | | | |
Storm reserve deficiency | | 743 | | - | | - | | 743 |
Unamortized loss on reacquired debt | | 38 | | - | | - | | 38 |
Other | | 46 | | - | | 42 | | 88 |
Other | | 143 | | 388 | | 86 | | 617 |
| | | | | | | | | |
| Total other assets | | 4,142 | | 1,231 | | 1,050 | | 6,423 |
| | | | | | | | | |
| | | | | | | | | | |
Total Assets | | $ 22,559 | | $ 11,567 | | $ 1,409 | | $ 35,535 |
| | | | | | | | | |
| | | | | | | | | | |
Capitalization | | | | | | | | |
Common stock | | $ 1,373 | | $ - | | $ (1,369) | | $ 4 |
Additional paid-in capital | | 4,319 | | 4,583 | | (4,340) | | 4,562 |
Retained earnings | | 1,624 | | 1,297 | | 2,334 | | 5,255 |
Accumulated other comprehensive income (loss) | - | | (48) | | 98 | | 50 |
| | | | | | | | | |
| | Total common shareholders' equity | | 7,316 | | 5,832 | | (3,277) | | 9,871 |
Long-term debt | | 4,214 | | 2,495 | | 2,382 | | 9,091 |
| | | | | | | | | |
| | Total capitalization | | 11,530 | | 8,327 | | (895) | | 18,962 |
| | | | | | | | | |
| | | | | | | | | | |
Current Liabilities | | | | | | | | |
Commercial paper | | 526 | | - | | 574 | | 1,100 |
Current maturities of long-term debt | | - | | 580 | | 1,006 | | 1,586 |
Accounts payable | | 651 | | 336 | | 8 | | 995 |
Customer deposits | | 511 | | 10 | | 1 | | 522 |
Accrued interest and taxes | | 336 | | 56 | | (22) | | 370 |
Regulatory liabilities: | | | | | | | | |
Deferred clause and franchise revenues | | 138 | | - | | - | | 138 |
Pension | | - | | - | | 13 | | 13 |
Derivatives | | 268 | | 258 | | - | | 526 |
Other | | 444 | | 278 | | (19) | | 703 |
| | | | | | | | | |
| Total current liabilities | | 2,874 | | 1,518 | | 1,561 | | 5,953 |
| | | | | | | | | |
| | | | | | | | | |
Other Liabilities and Deferred Credits | | | | | | | | |
Asset retirement obligations | | 1,593 | | 252 | | - | | 1,845 |
Accumulated deferred income taxes | | 2,398 | | 1,140 | | (62) | | 3,476 |
Regulatory liabilities: | | | | | | | | |
Accrued asset removal costs | | 2,077 | | - | | - | | 2,077 |
Asset retirement obligation regulatory expense difference | 872 | | - | | - | | 872 |
Pension | | - | | - | | 531 | | 531 |
Deferred clause revenues | | 17 | | - | | - | | 17 |
Other | | 235 | | - | | - | | 235 |
Other | | 963 | | 330 | | 274 | | 1,567 |
| | | | | | | | | |
Total other liabilities and deferred credits | | 8,155 | | 1,722 | | 743 | | 10,620 |
| | | | | | | | | |
| | | | | | | | | |
Commitments and Contingencies | | | | | | | | |
| | | | | | | | | |
Total Capitalization and Liabilities | | $ 22,559 | | $ 11,567 | | $ 1,409 | | $ 35,535 |
| | | | | | | | | |
| | | | | | | | | | |
Corporate & Other represents other business activities, other segments that are not separately reportable, eliminating entries, and may include the net effect of rounding. |
FPL Group, Inc.
Condensed Consolidated Balance Sheets
(millions)
(unaudited) | | |
December 31, 2006
| | Florida Power
& Light | FPL
Energy | | Corporate &
Other | FPL Group,
Inc. |
| | | | | | | | | |
Property, Plant and Equipment | | | | | | | | |
Electric utility plant in service and other property | $ 24,150 | | $ 9,689 | | $ 232 | | $ 34,071 |
Nuclear fuel | | 423 | | 265 | | - | | 688 |
Construction work in progress | | 1,113 | | 270 | | 10 | | 1,393 |
Less accumulated depreciation and amortization | (9,848) | | (1,679) | | (126) | | (11,653) |
| | | | | | | | | |
| Total property, plant and equipment - net | 15,838 | | 8,545 | | 116 | | 24,499 |
| | | | | | | | | |
| | | | | | | | | |
Current Assets | | | | | | | | |
Cash and cash equivalents | | 64 | | 92 | | 464 | | 620 |
Customer receivables, net of allowances | | 872 | | 389 | | 18 | | 1,279 |
Other receivables, net of allowances | | 221 | | 232 | | (76) | | 377 |
Materials, supplies and fossil fuel inventory - at avg. cost | 558 | | 219 | | 8 | | 785 |
Regulatory assets: | | | | | | | | |
Deferred clause and franchise expenses | | 167 | | - | | - | | 167 |
Storm reserve deficiency | | 106 | | - | | - | | 106 |
Derivatives | | 921 | | - | | - | | 921 |
Other | | - | | - | | 3 | | 3 |
Derivatives | | 4 | | 372 | | - | | 376 |
Other | | 202 | | 158 | | 5 | | 365 |
| | | | | | | | | |
| Total current assets | | 3,115 | | 1,462 | | 422 | | 4,999 |
| | | | | | | | | |
| | | | | | | | | |
Other Assets | | | | | | | | |
Nuclear decommissioning reserve funds | | 2,264 | | 561 | | (1) | | 2,824 |
Pension plan assets - net | | 857 | | - | | 751 | | 1,608 |
Other investments | | 8 | | 389 | | 136 | | 533 |
Regulatory assets: | | | | | | | | |
Storm reserve deficiency | | 762 | | - | | - | | 762 |
Unamortized loss on reacquired debt | | 39 | | - | | - | | 39 |
Other | | 37 | | - | | 43 | | 80 |
Other | | 153 | | 414 | | 80 | | 647 |
| | | | | | | | | |
| Total other assets | | 4,120 | | 1,364 | | 1,009 | | 6,493 |
| | | | | | | | | |
| | | | | | | | | |
Total Assets | | $ 23,073 | | $ 11,371 | | $ 1,547 | | $ 35,991 |
| | | | | | | | | |
| | | | | | | | | |
Capitalization | | | | | | | | |
Common stock | | $ 1,373 | | $ - | | $ (1,369) | | $ 4 |
Additional paid-in capital | | 4,318 | | 4,695 | | (4,458) | | 4,555 |
Retained earnings | | 1,848 | | 1,252 | | 2,156 | | 5,256 |
Accumulated other comprehensive income (loss) | - | | 17 | | 98 | | 115 |
| | | | | | | | | |
| | Total common shareholders' equity | | 7,539 | | 5,964 | | (3,573) | | 9,930 |
Long-term debt | | 4,214 | | 2,490 | | 2,887 | | 9,591 |
| | | | | | | | | |
| | Total capitalization | | 11,753 | | 8,454 | | (686) | | 19,521 |
| | | | | | | | | |
| | | | | | | | | |
Current Liabilities | | | | | | | | |
Commercial paper | | 630 | | - | | 467 | | 1,097 |
Current maturities of long-term debt | | - | | 572 | | 1,073 | | 1,645 |
Accounts payable | | 735 | | 322 | | 3 | | 1,060 |
Customer deposits | | 500 | | 10 | | - | | 510 |
Accrued interest and taxes | | 281 | | 54 | | (33) | | 302 |
Regulatory liabilities: | | | | | | | | |
Deferred clause and franchise revenues | | 37 | | - | | - | | 37 |
Pension | | - | | - | | 17 | | 17 |
Derivatives | | 780 | | 361 | | 3 | | 1,144 |
Other | | 423 | | 237 | | 21 | | 681 |
| | | | | | | | | |
| | Total current liabilities | | 3,386 | | 1,556 | | 1,551 | | 6,493 |
| | | | | | | | | |
| | | | | | | | | |
Other Liabilities and Deferred Credits | | | | | | | | |
Asset retirement obligations | | 1,572 | | 248 | | - | | 1,820 |
Accumulated deferred income taxes | | 2,561 | | 907 | | (36) | | 3,432 |
Regulatory liabilities: | | | | | | | | |
Accrued asset removal costs | | 2,044 | | - | | - | | 2,044 |
Asset retirement obligation regulatory expense difference | 868 | | - | | - | | 868 |
Pension | | - | | - | | 531 | | 531 |
Deferred clause revenues | | - | | - | | - | | - |
Other | | 209 | | - | | - | | 209 |
Other | | 680 | | 206 | | 187 | | 1,073 |
| | | | | | | | | |
| Total other liabilities and deferred credits | 7,934 | | 1,361 | | 682 | | 9,977 |
| | | | | | | | | |
| | | | | | | | | |
Commitments and Contingencies | | | | | | | | |
| | | | | | | | | |
Total Capitalization and Liabilities | | $ 23,073 | | $ 11,371 | | $ 1,547 | | $ 35,991 |
| | | | | | | | | |
| | | | | | | | | |
Corporate & Other represents other business activities, other segments that are not separately reportable, eliminating entries, and may include the net effect of rounding. |
FPL Group, Inc.
Condensed Consolidated Statements of Cash Flows
(millions)
(unaudited) |
Three Months Ended March 31, 2007
| | Florida Power
& Light | FPL
Energy | | Corporate &
Other | FPL Group,
Inc. |
| | | | | | | | | |
Cash Flows From Operating Activities | | | | | | | | |
Net income (loss) | | $ 126 | | $ 45 | | $ 21) | | $ 150 |
Adjustments to reconcile net income (loss) to net | | | | | | | | |
cash provided by (used in) operating activities: | | | | | | | | |
Depreciation and amortization | | 189 | | 103 | | 4 | | 296 |
Nuclear fuel amortization | | 23 | | 11 | | (1) | | 33 |
Recoverable storm-related costs of FPL | | (4) | | - | | - | | (4) |
Amortization of storm reserve deficiency | | 23 | | - | | - | | 23 |
Unrealized (gains) losses on marked to market energy contracts | | - | | 187 | | - | | 187 |
Deferred income taxes | | 109 | | 210 | | (2) | | 317 |
Cost recovery clauses and franchise fees | | 244 | | - | | - | | 244 |
Change in prepaid option premiums | | 23 | | - | | - | | 23 |
Equity in earnings of equity method investees | | - | | (10) | | - | | (10) |
Distributions of earnings from equity method investees | | - | | 85 | | - | | 85 |
Changes in operating assets and liabilities: | | | | | | | | |
| | Customer receivables | | 128 | | (73) | | 1 | | 56 |
| | Other receivables | | 16 | | (8) | | (3) | | 5 |
| | Materials, supplies and fossil fuel inventory | | 7 | | 58 | | 1 | | 66 |
| | Other current assets | | (22) | | 2 | | 9 | | (11) |
| | Other assets | | (34) | | 8 | | (1) | | (27) |
| | Accounts payable | | (88) | | 8 | | 5 | | (75) |
| | Customer deposits | | 11 | | 1 | | - | | 12 |
| | Margin cash deposits | | 56 | | 45 | | - | | 101 |
| | Income taxes | | 63 | | (134) | | (266) | | (337) |
| | Interest and other taxes | | 61 | | 2 | | 4 | | 67 |
| | Other current liabilities | | 17 | | - | | (11) | | 6 |
| | Other liabilities | | (3) | | (36) | | 13 | | (26) |
Other - net | | 28 | | 15 | | (5) | | 38 |
| | | | | | | | | |
Net cash provided by (used in) operating activities | | 973 | | 519 | | (273) | | 1,219 |
| | | | | | | | | |
| | | | | | | | | | |
Cash Flows From Investing Activities | | | | | | | | |
Capital expenditures of FPL | | (491) | | - | | - | | (491) |
Independent power investments | | - | | (265) | | - | | (265) |
Nuclear fuel purchases | | (29) | | (39) | | - | | (68) |
Other capital expenditures | | - | | - | | (15) | | (15) |
Proceeds from sale of securities in nuclear decommissioning funds | 413 | | 64 | | - | | 477 |
Purchases of securities in nuclear decommissioning funds | | (435) | | (68) | | - | | (503) |
Proceeds from sale of other securities | | - | | - | | 48 | | 48 |
Purchases of other securities | | - | | - | | (62) | | (62) |
Other - net | | 2 | | 12 | | 12 | | 26 |
| | | | | | | | | |
Net cash provided by (used in) investing activities | | (540) | | (296) | | (17) | | (853) |
| | | | | | | | | |
| | | | | | | | | | |
Cash Flows From Financing Activities | | | | | | | | |
Issuances of long-term debt | | - | | - | | - | | - |
Retirements of long-term debt | | - | | (43) | | (575) | | (618) |
Proceeds from purchased Corporate Units | | - | | - | | - | | - |
Payments to terminate Corporate Units | | - | | - | | - | | - |
Net change in short-term debt | | 104) | | - | | 107 | | 3 |
Issuances of common stock | | - | | - | | 11 | | 11 |
Dividends on common stock | | - | | - | | (163) | | (163) |
Dividends & capital distributions from (to) FPL Group - net | | (350) | | (114) | | 464 | | - |
Other - net | | - | | 3 | | 4 | | 7 |
| | | | | | | | | |
Net cash provided by (used in) financing activities | | (454) | | (154) | | (152) | | (760) |
| | | | | | | | | |
| | | | | | | | | | |
Net increase (decrease) in cash and cash equivalents | | (21) | | 69 | | (442) | | (394) |
Cash and cash equivalents at beginning of period | | 64 | | 92 | | 464 | | 620 |
| | | | | | | | | |
| | | | | | | | | |
Cash and cash equivalents at end of period | | $ 43 | | $ 161 | | $ 22 | | $ 226 |
| | | | | | | | | |
| | | | | | | | | | |
Corporate & Other represents other business activities, other segments that are not separately reportable, eliminating entries, and may include the net effect of rounding. |
FPL Group, Inc.
Condensed Consolidated Statements of Cash Flows
(millions)
(unaudited) | | | | | |
Three Months Ended March 31, 2006
| | Florida Power
& Light | FPL
Energy | Corporate &
Other | FPL Group,
Inc. |
| | | | | | | | | | |
Cash Flows From Operating Activities | | | | | | | | | |
Net income (loss) | | $ 122 | | $ 154 | | $ (25) | | $ 251 | |
Adjustments to reconcile net income (loss) to net | | | | | | | | | |
cash provided by (used in) operating activities: | | | | | | | | | |
Depreciation and amortization | | 184 | | 87 | | 5 | | 276 | |
Nuclear fuel amortization | | 24 | | 10 | | - | | 34 | |
Recoverable storm-related costs of FPL | | (282) | | - | | - | | (282) | |
Amortization of storm reserve deficiency | | 32 | | - | | - | | 32 | |
Unrealized (gains) losses on marked to market energy contracts | - | | (61) | | - | | (61) | |
Deferred income taxes | | 62 | | 65 | | 7 | | 134 | |
Cost recovery clauses and franchise fees | | 312 | | - | | - | | 312 | |
Change in prepaid option premiums | | 12 | | (3) | | - | | 9 | |
Equity in earnings of equity method investees | | - | | (11) | | - | | (11) | |
Distribution of earnings from equity method investees | | - | | 26 | | - | | 26 | |
Changes in operating assets and liabilities: | | | | | | | | | |
| Customer receivables | | (61) | | 25 | | 4 | | (32) | |
| Other receivables | | 27 | | 13 | | (11) | | 29 | |
| Materials, supplies and fossil fuel inventory | | (113) | | (54) | | - | | (167) | |
| Other current assets | | (17) | | (1) | | 9 | | (9) | |
| Other assets | | (19) | | 15 | | (3) | | (7) | |
| Accounts payable | | (177) | | (104) | | (14) | | (295) | |
| Customer deposits | | 10 | | 1 | | - | | 11 | |
| Margin cash deposits | | (382) | | (2) | | - | | (384) | |
| Income taxes | | 139 | | (35) | | (187) | | (83) | |
| Interest and other taxes | | 92 | | 9 | | 13 | | 114 | |
| Other current liabilities | | (53) | | (23) | | 3 | | (73) | |
| Other liabilities | | 39 | | 20 | | 13 | | 72 | |
Other - net | | 22 | | (64) | | 29 | | (13) | |
| | | | | | | | | | |
Net cash provided by (used in) operating activities | | (27) | | 67 | | (157) | | (117) | |
| | | | | | | | | | |
| | | | | | | | | | | |
Cash Flows From Investing Activities | | | | | | | | | |
Capital expenditures of FPL | | (487) | | - | | - | | (487) | |
Independent power investments | | - | | (639) | | - | | (639) | |
Nuclear fuel purchases | | (34) | | (26) | | (1) | | (61) | |
Other capital expenditures | | - | | - | | (15) | | (15) | |
Proceeds from sale of securities in nuclear decommissioning funds | 634 | | 17 | | - | | 651 | |
Purchases of securities in nuclear decommissioning funds | (652) | | (18) | | - | | (670) | |
Proceeds from sale of other securities | | - | | - | | 20 | | 20 | |
Purchases of other securities | | - | | - | | 1) | | (31) | |
Other - net | | (1) | | (1) | | 1 | | (1) | |
| | | | | | | | | | |
Net cash provided by (used in) investing activities | | (540) | | (667) | | (26) | | (1,233) | |
| | | | | | | | | | |
| | | | | | | | | | | |
Cash Flows From Financing Activities | | | | | | | | | |
Issuances of long-term debt | | 392 | | - | | - | | 392 | |
Retirements of long-term debt | | - | | (37) | | - | | (37) | |
Proceeds from purchased Corporate Units | | - | | - | | 210 | | 210 | |
Payments to terminate Corporate Units | | - | | - | | (258) | | (258) | |
Net change in short-term debt | | 170 | | - | | 314 | | 484 | |
Issuances of common stock | | - | | - | | 299 | | 299 | |
Dividends on common stock | | - | | - | | (148) | | (148) | |
Dividends & capital distributions from (to) FPL Group - net | - | | 581 | | (581) | | - | |
Other - net | | - | | 29 | | (3) | | 26 | |
| | | | | | | | | | |
Net cash provided by (used in) financing activities | | 562 | | 573 | | (167) | | 968 | |
| | | | | | | | | | |
| | | | | | | | | | | |
Net increase (decrease) in cash and cash equivalents | | (5) | | (27) | | (350) | | (382) | |
Cash and cash equivalents at beginning of period | | 56 | | 83 | | 391 | | 530 | |
| | | | | | | | | | |
| | | | | | | | | | | |
Cash and cash equivalents at end of period | | $ 51 | | $ 56 | | $ 41 | | $ 148 | |
| | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Corporate & Other represents other business activities, other segments that are not separately reportable, eliminating entries, and may include the net effect of rounding. |
Amounts have been adjusted to reflect the retrospective application of an accounting standard change related to planned major maintenance activities. |
FPL Group, Inc.
Earnings Per Share Summary
(assuming dilution)
(unaudited)
| | Three Months Ended March 31, | |
| | | | |
| | 2007 | | 2006 | |
| | | | |
Florida Power & Light Company | $ 0.32 | | $ 0.31 | |
FPL Energy, LLC | 0.11 | | 0.39 | |
Corporate and Other | (0.05 | ) | (0.06 | ) |
| | | | |
| | | | | |
Earnings Per Share | $ 0.38 | | $ 0.64 | |
| | | | |
| | | | | |
Reconciliation of Earnings Per Share to Adjusted Earnings Per Share: | | | | |
| | | | | |
Earnings Per Share | $ 0.38 | | $ 0.64 | |
| | | | | |
Merger - related costs | - | | 0.01 | |
Net unrealized mark-to-market (gains) losses associated with non-qualifying hedges, | | | | |
primarily FPL Energy | 0.32 | | (0.06 | ) |
| | | | |
| | | | | |
Adjusted Earnings Per Share | $ 0.70 | | $ 0.59 | |
| | | | |
2006 amounts have been adjusted to reflect the retrospective application of an accounting standard change related to planned major maintenance activities.
FPL Group, Inc.
Earnings Per Share Contributions
(assuming dilution)
(unaudited)
| | First
Quarter |
| | |
FPL Group - 2006 Earnings Per Share | $ 0.64 | |
| | | | |
Florida Power & Light - 2006 Earnings Per Share | 0.31 | |
Customer growth | 0.03 | |
Usage due to weather | 0.02 | |
Underlying usage growth and price mix | (0.02 | ) |
O&M expense | - | |
Depreciation expense | (0.01 | ) |
AFUDC | 0.01 | |
Interest expense (gross) | - | |
Share dilution | (0.01 | ) |
Other | (0.01 | ) |
| | |
Florida Power & Light - 2007 Earnings Per Share | 0.32 | |
| | | |
FPL Energy - 2006 Earnings Per Share | 0.39 | |
New investments | 0.06 | |
Existing assets | - | |
Asset optimization and trading | 0.07 | |
Non-qualifying hedges impact | (0.38 | ) |
Share dilution | (0.01 | ) |
Other, including interest expense | (0.02 | ) |
| | |
FPL Energy - 2007 Earnings Per Share | 0.11 | |
| | | |
Corporate and Other - 2006 Earnings Per Share | (0.06 | ) |
Merger - related costs | 0.01 | |
Share dilution | 0.01 | |
Other, including interest expense | (0.01 | ) |
| | |
Corporate and Other - 2007 Earnings Per Share | (0.05 | ) |
| | |
| | | |
FPL Group - 2007 Earnings Per Share | $ 0.38 | |
| | |
Amounts have been adjusted to reflect the retrospective application of an accounting standard change related to planned major maintenance activities.
The sum of the quarterly amounts may not equal the total for the year due to rounding.
FPL Group, Inc.
Schedule of Total Debt and Equity
(millions)
(unaudited)
March 31, 2007 | | Per Books | | Adjusted1 |
| | | | | |
Long-term debt, including current maturities, and commercial paper | | | | |
Junior Subordinated Debentures2 | | $ 1,009 | | $ 350 |
Project debt: | | | | |
Natural gas-fired assets | | 335 | | |
Wind assets | | 2,002 | | |
Debt with partial corporate support: | | | | |
Natural gas-fired assets | | 340 | | |
Other long-term debt, including current maturities, and commercial paper | | 8,091 | | 8,091 |
| | | | |
Total debt | | 11,777 | | 8,441 |
Junior Subordinated Debentures2 | | | | 659 |
Common shareholders' equity | | 9,871 | | 9,871 |
| | | | |
Total capitalization, including debt due within one year | | $ 21,648 | | $ 18,971 |
| | | | |
| | | | | |
Debt ratio | | 54% | | 44% |
| | | | | |
| | | | | |
December 31. 2006
| | Per Books | | Adjusted1 |
| | | | |
Long-term debt, including current maturities, and commercial paper | | | | |
Junior Subordinated Debentures2 | | $ 1,009 | | $ 350 |
Project debt: | | | | |
Natural gas-fired assets | | 353 | | |
Wind assets | | 2,026 | | |
Debt with partial corporate support: | | | | |
Natural gas-fired assets | | 341 | | |
Other long-term debt, including current maturities, and commercial paper | | 8,604 | | 8,604 |
| | | | |
Total debt | | 12,333 | | 8,954 |
Junior Subordinated Debentures2 | | | | 659 |
Common shareholders' equity | | 9,930 | | 9,930 |
| | | | |
Total capitalization, including debt due within one year | | $ 22,263 | | $ 19,543 |
| | | | |
| | | | | |
Debt ratio | | 55% | | 46% |
1 Ratios exclude impact of imputed debt for purchase power obligations
2 Adjusted to reflect preferred stock characteristics of these securities (preferred trust securities and enhanced junior subordinated debentures)
FPL Group, Inc.
Long-Term Debt and Commercial Paper
Schedule as of March 31, 2007
(unaudited)
Type of Debt | Interest
Rate (%) | Maturity
Date | Total
Debt | Current
Portion | Long-
Term
Portion |
|
Long-Term: | | | | | | | |
| | Florida Power & Light | | | | | | | |
| | | First Mortgage Bonds: | | | | | | | |
| | | First Mortgage Bonds | 6.000 | | 06/01/08 | | $ 200 | $ - | $ 200 |
| | | First Mortgage Bonds | 5.875 | | 04/01/09 | | 225 | - | 225 |
| | | First Mortgage Bonds | 4.850 | | 02/01/13 | | 400 | - | 400 |
| | | First Mortgage Bonds | 5.850 | | 02/01/33 | | 200 | - | 200 |
| | | First Mortgage Bonds | 5.950 | | 10/01/33 | | 300 | - | 300 |
| | | First Mortgage Bonds | 5.625 | | 04/01/34 | | 500 | - | 500 |
| | | First Mortgage Bonds | 5.650 | | 02/01/35 | | 240 | - | 240 |
| | | First Mortgage Bonds | 4.950 | | 06/01/35 | | 300 | - | 300 |
| | | First Mortgage Bonds | 5.400 | | 09/01/35 | | 300 | - | 300 |
| | | First Mortgage Bonds | 6.200 | | 06/01/36 | | 300 | - | 300 |
| | | First Mortgage Bonds | 5.650 | | 02/01/37 | | 400 | - | 400 |
| |
| | | Total First Mortgage Bonds | | | | | 3,365 | - | 3,365 |
| | | | | | | | | | |
| | | Revenue Refunding Bonds: | | | | | | | |
| | | Miami-Dade Solid Waste Disposal | VAR | | 02/01/23 | | 15 | - | 15 |
| | | St. Lucie Solid Waste Disposal | VAR | | 05/01/24 | | 79 | - | 79 |
| | | | | | | | | | |
| | | Total Revenue Refunding Bonds | | | | | 94 | - | 94 |
| | | | | | | | | | |
| | | Pollution Control Bonds: | | | | | | | |
| | | Dade | VAR | | 04/01/20 | | 9 | - | 9 |
| | | Martin | VAR | | 07/15/22 | | 96 | - | 96 |
| | | Jacksonville | VAR | | 09/01/24 | | 46 | - | 46 |
| | | Manatee | VAR | | 09/01/24 | | 17 | - | 17 |
| | | Putnam | VAR | | 09/01/24 | | 4 | - | 4 |
| | | Jacksonville | VAR | | 05/01/27 | | 28 | - | 28 |
| | | St. Lucie | VAR | | 09/01/28 | | 242 | - | 242 |
| | | Jacksonville | VAR | | 05/01/29 | | 52 | - | 52 |
| | | | | | | | | | |
| | | Total Pollution Control Bonds | | | | | 494 | - | 494 |
| | | | | | | | | | |
| | | Industrial Bonds: | | | | | | | |
| | | Dade | VAR | | 06/01/21 | | 46 | - | 46 |
| | | | | | | | | | |
| | | Total Industrial Bonds | | | | | 46 | - | 46 |
| | | | | | | | | | |
| | | Term Loan | | | May 2008 | | 250 | - | 250 |
| | | Unamortized discount | | | | | (34) | - | (34) |
| | | | | | | | | | |
| | TOTAL FLORIDA POWER & LIGHT | | | | | 4,215 | - | 4,215 |
| | | | | | | | | | |
| | FPL Group Capital | | | | | | | |
| | | Debentures: | | | | | | | |
| | | Debentures | 6.125 | | 05/15/07 | | 500 | 500 | - |
| | | Debentures (B Equity Units) | 5.551 | | 02/16/08 | | 506 | 506 | - |
| | | Debentures | 7.375 | | 06/01/09 | | 225 | - | 225 |
| | | Debentures | 7.375 | | 06/01/09 | | 400 | - | 400 |
| | | Debentures | 5.625 | | 09/01/11 | | 600 | - | 600 |
| | | Debentures (Junior Subordinated) | 5.875 | | 03/15/44 | | 309 | - | 309 |
| | | Debentures (Junior Subordinated) | 6.600 | | 10/01/66 | | 350 | - | 350 |
| | | Debentures (Junior Subordinated) | 6.350 | | 10/01/66 | | 350 | - | 350 |
| | | | | | | | | | |
| | | Total Debentures | | | | | 3,240 | 1,006 | 2,234 |
| | | | | | | | | | |
| | | Term Loans | | | June 2008 | | 150 | - | 150 |
| | | Unamortized discount | | | | | (2) | - | (2) |
| | FPL Energy | | | | | | | |
| | | Senior Secured Bonds: | | | | | | | |
| | | Senior Secured Bonds | 6.876 | | 06/27/17 | | 99 | 10 | 89 |
| | | Senior Secured Bonds | 6.125 | | 03/25/19 | | 88 | 8 | 80 |
| | | Senior Secured Bonds | 6.639 | | 06/20/23 | | 314 | 27 | 287 |
| | | Senior Secured Bonds | 5.608 | | 03/10/24 | | 326 | 21 | 305 |
| | | | | | | | | | |
| | | | Total Senior Secured Bonds | | | | | 827 | 66 | 761 |
| | | | | | | | | | |
| | | Senior Secured Notes | 7.520 | | 06/30/19 | | 233 | 22 | 211 |
| | | Senior Secured Notes | 7.110 | | 06/28/20 | | 102 | 5 | 97 |
| | | Limited-recourse Senior Secured Notes | 7.510 | | 07/20/21 | | 20 | 1 | 19 |
| | | Senior Secured Notes | 6.665 | | 01/10/31 | | 182 | 10 | 172 |
| | | Construction Term Facility | VAR | | 06/30/08 | | 355 | 28 | 327 |
| | | Other Debt: | | | | | | | |
| | | | Other Debt | VAR | | 12/27/07 | | 326 | 326 | - |
| | | | Other Debt | 8.450 | | 11/30/12 | | 55 | 7 | 48 |
| | | | Other Debt | VAR | | 12/19/17 | | 99 | 11 | 88 |
| | | | Other Debt | 8.010 | | 12/31/18 | | 3 | - | 3 |
| | | | Other Debt | Part fixed & VAR | 11/30/19 | | 273 | 65 | 208 |
| | | | Other Debt | VAR | | 01/31/22 | | 600 | 40 | 560 |
| | | | | | | | | | |
| | | | Total Other Debt | | | | | 1,356 | 449 | 907 |
| | | | | | | | | | |
| | | TOTAL FPL ENERGY | | | | | 3,075 | 581 | 2,494 |
| | | | | | | | | | |
Commercial Paper: | | | | | | | |
| | FPL | | | | | 526 | 526 | - |
| | Capital | | | | | 573 | 573 | - |
| | TOTAL FPL GROUP CAPITAL | | | | | 7,036 | 2,160 | 4,876 |
| | | | | | | | | | |
| | TOTAL FPL GROUP, INC. | | | | | $ 11,777 | $ 2,686 | $ 9,091 |
| | | | | | | | | | |
May not agree to financial statements due to rounding.
Florida Power & Light Company
Statistics
(unaudited)
| | | Quarter |
| | | | |
Periods Ended March 31 | | 2007 | | 2006 |
| | | | |
Energy sales (million kwh) | | | | |
Residential | | 11,654 | | 11,374 |
Commercial | | 10,615 | | 9,994 |
Industrial | | 981 | | 985 |
Public authorities | | 146 | | 148 |
Electric utilities | | 340 | | 372 |
Increase (decrease) in unbilled sales | | (793) | | (568) |
Interchange power sales | | 826 | | 996 |
| | | | | |
Total | | 23,769 | | 23,301 |
| | | | |
| | | | | |
| | | | | |
Average price (cents/kwh)1 | | | | |
Residential | | 11.34 | | 11.76 |
Commercial | | 10.06 | | 10.55 |
Industrial | | 8.70 | | 8.73 |
Total | | 10.61 | | 11.03 |
| | | | | |
Average customer accounts (000's) | | | | |
Residential | | 3,965 | | 3,881 |
Commercial | | 487 | | 475 |
Industrial | | 21 | | 21 |
Other | | 4 | | 2 |
| | | | |
Total | | 4,477 | | 4,379 |
| | | | |
1 Excludes interchange power sales, net change in unbilled revenues, deferrals under cost recovery clauses and any provision for refund.
| | | 2007 | | Normal | | 2006 |
| | | | | | |
| | | | | | | |
Three Months Ended March 31 | | | | | | |
Cooling degree-days | | 76 | | 49 | | 35 |
Heating degree-days | | 134 | | 214 | | 191 |
