EXHIBIT 99.(c)
NEWS RELEASE
Florida Progress Corporation
One Progress Plaza
St. Petersburg, Florida 33701
Contact: Karen Raihill - (813) 866-5023
Florida Progress Corporation reports increase in 1993 earnings
ST. PETERSBURG, Fla. (January 24, 1994) - Florida Progress Corporation, parent
of St. Petersburg-based Florida Power Corporation, today reported 1993
consolidated earnings of $196.6 million, compared with $175.7 million earned a
year ago. Revenues for 1993 totaled $2.449 billion, compared with $2.095
billion for 1992. Earnings per share for 1993 were $2.23, compared with $2.06 a
share a year ago.
Improved operating results at Florida Power - the largest subsidiary of Florida
Progress - was the main reason for the company's higher earnings in 1993.
Florida Power earned $181.5 million, or $2.06 per share, on revenues of $1.958
billion in 1993, compared with earnings of $170.2 million, or $1.99 a share, on
revenues of $1.774 billion in 1992.
Revenues increased at Florida Power in 1993 because retail kilowatt-hour sales
climbed by 5.3 percent during the year, compared with 1992 sales. Customer
growth and higher customer usage contributed to the higher energy sales. In
addition, the utility began collecting in November 1993 the third, and final,
part of a 9-percent base rate increase granted by the Florida Public Service
Commission.
Unseasonably hot weather across Florida during the year resulted in the average
Florida Power residential customer using more electricity in 1993 than the year
before. Energy sales also rose because customer growth at the utility was 2.7
percent in 1993, compared with 2 percent in 1992. Florida Power's purchase of
the city of Sebring's electrical distribution system, including its 12,500
customers, caused the utility's growth rate to increase for the year from 2
percent to 2.7 percent.
A 1-percent increase in the federal corporate income tax rate - and its related
impact on accounting for long-term leveraged leases - lowered Florida Progress'
consolidated earnings in 1993 by $6.4 million, or 7 cents a share. Retroactive
to the beginning of 1993, the higher tax rate was part of new federal tax
legislation that was signed into law in August of last year. At Florida Power,
the tax law lowered 1993 earnings by $2.8 million, or 3 cents per share.
A voluntary, early retirement program, offered last month to more than 200
employees, resulted in a negative earnings impact of $3.4 million, or 4 cents
per share, to Florida Power in 1993.
Earnings in 1993 from Florida Progress' diversified operations were $14.3
million, or 16 cents per share, up from the $5.5 million, or 7 cents a share,
earned in 1992. Earnings from Florida Progress' coal mining and transportation
unit were higher in 1993 because of improved results at its marine operations
and the impact of a large acquisition completed during the year.
In the fourth quarter of 1992, Florida Progress' real estate unit established a
loss provision in response to Florida's weak real estate market. On a
comparative basis, this provision allowed the unit to report an improvement in
1993 results. Florida Progress' life insurance unit posted modest earnings
growth in 1993.
The earnings improvement in 1993 from these diversified operations was partially
offset by changes in the new tax law, which lowered earnings from diversified
operations by $3.6 million, or 4 cents a share.
Florida Progress (NYSE: FPC) is a diversified utility holding company with
assets of more than $5.5 billion. Its principal subsidiary is Florida Power,
the state's second-largest electric utility with 1.2 million customers.
Diversified operations include coal mining and transportation, life insurance,
real estate and lending and leasing.
Three Months Ended Twelve Months Ended
December 31 December 31
1993 1992 1993 1992
Revenues $633,500,000 $493,500,000 $2,449,000,000 $2,095,300,000
Income Before
Change in
Accounting $ 37,200,000 $ 36,100,000 $ 195,800,000 $ 175,700,000
Change in
Accounting for
Deferred Taxes - - 800,000 -
----------- ----------- ------------- ------------
Consolidated $ 37,200,000 $ 36,100,000 $ 196,600,000 $ 175,700,000
=========== =========== ============= =============
Earnings Per
Share (EPS):
Florida Power
Corporation $ .33 $ .41 $ 2.06 $ 1.99
Diversified .09 - .16 .07
----- ----- ----- ----
Income Before
Change in
Accounting .42 .41 2.22 2.06
Change in Accounting
for Deferred Taxes - - .01 -
Consolidated $ .42 $ .41 $ 2.23 $ 2.06
===== ===== ===== ====
Average Common
Shares
Outstanding 88,969,140 87,216,897 88,334,418 85,422,236