EXHIBIT 99.(d)
Florida Progress Corporation
Investor Information
One Progress Plaza
St. Petersburg, FL 33701
Fax: (813) 824-6401
Analysts' Contacts:
Richard R. Champion, Director, Investor Relations (813) 824-6428
Mark A. Myers, Manager, Investor Communications (813) 824-6422
January 24, 1994
Florida Progress reports increase in 1993 earnings
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 in 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.
In November 1993, the utility began collecting the third, and final, part of an
$86-million base rate increase granted by the Florida Public Service Commission.
The first phase of the increase, which was effective in part in April 1992 and
in total by November 1992, resulted in additional annual revenues of $58
million. In April 1993, Florida Power began collecting the second step, or
approximately $10 million in annualized revenues. The final phase of the
increase will result in about $18 million in additional annual revenues.
Revenues also 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.
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 in
April 1993 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 reduced 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. The program is expected to impact utility
earnings in 1994 by approximately $8 million.
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. 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. The after-tax effect of this reserve reduced 1992
earnings by $7.4 million, or 9 cents a share.
Florida Progress' two main diversified businesses - its coal mining and
transportation unit and its life insurance company - reported higher earnings in
1993. Earnings at Electric Fuels Corporation were higher during the year
primarily because of improved results from its marine operations and the impact
of a large acquisition completed in June 1993. The purchase of the assets of a
rail car services and parts reconditioning firm boosted Electric Fuels' earnings
during the second half of the year. Mid-Continent Life Insurance Company posted
modest earnings growth in 1993, largely because of higher sales volume. The
insurance unit continued a strategy of expanding its regional office network
during the year.
Florida Progress' lending and leasing unit reported lower 1993 results, compared
with the prior year, primarily because the new federal tax law had a negative
impact on the accounting for the company's long-term leveraged leases. Overall,
the new tax law lowered the earnings improvement from the company's diversified
operations by $3.6 million, or 4 cents a share in 1993.
1993 FOURTH QUARTER RESULTS
Earnings for the fourth quarter of 1993 from Florida Progress' consolidated
operations were $37.2 million, or 42 cents per share, on revenues of $633.5
million, compared with earnings of $36.1 million, or 41 cents per share, on
revenues of $493.5 million a year ago.
Florida Power earned $29.4 million, or 33 cents per share, on revenues of $479.7
million in the quarter ended December 31, 1993, compared with $35.8 million, or
41 cents a share, on revenues of $407.7 million in the prior-year quarter.
In 1992, Florida Power filed a request with the Federal Energy Regulatory
Commission to increase base rates for wholesale and transmission customers
consistent with the new rates for retail customers. As a result of its
wholesale settlement agreement, Florida Power recorded a one-time, retroactive
depreciation expense reduction that increased earnings in the fourth quarter of
1992 by $5.6 million, or 6 cents a share.
Earnings from diversified operations increased to $7.8 million, or 9 cents a
share, in the fourth quarter of 1993, compared with the $300,000 earned in the
same period in 1992. Higher quarterly earnings at Electric Fuels in 1993,
related to its rail services acquisition, and improved results from Florida
Progress' real estate unit were the main reasons for the rise in fourth-quarter
earnings. A year ago, in the fourth quarter of 1992, the real estate unit
recognized an after-tax loss reserve of $7.4 million.
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.
Florida Progress Corporation
Selected Financial Information (Unaudited)
(In millions)
Three Months Ended Twelve Months Ended
December 31 Percent December 31 Percent
1993 1992 Change 1993 1992 Change
Revenues:
Electric utility $479.7 $407.7 17.7 $1,957.6 $1,774.1 10.3
Diversified 153.8 85.8 79.3 491.4 321.2 53.0
-------- -------- -------- --------
Total revenues 633.5 493.5 28.4 2,449.0 2,095.3 16.9
-------- -------- -------- --------
Expenses:
Electric utility:
Fuel and purchased power 165.6 132.6 24.9 658.5 608.6 8.2
Other oper. & maintenance 144.0 112.8 27.7 514.8 450.6 14.2
Depr. and other taxes 98.3 79.9 23.0 392.8 347.8 12.9
-------- -------- -------- --------
Total utility expenses 407.9 325.3 25.4 1,566.1 1,407.0 11.3
Diversified 139.5 76.6 82.1 440.3 283.5 55.3
-------- -------- -------- --------
Total expenses 547.4 401.9 36.2 2,006.4 1,690.5 18.7
-------- -------- -------- --------
Income from operations 86.1 91.6 (6.0) 442.6 404.8 9.3
Interest expense and other 33.0 41.6 (20.7) 136.4 140.6 (3.0)
-------- -------- -------- --------
Income before income taxes and
change in accounting 53.1 50.0 6.2 306.2 264.2 15.9
Income taxes 15.9 13.9 14.4 110.4 88.5 24.7
-------- -------- -------- --------
Income before cum. effect of
change in accounting 37.2 36.1 3.0 195.8 175.7 11.4
Cumulative effect of change in
accounting for income taxes - - - 0.8 - -
-------- -------- -------- --------
Net Income $37.2 $36.1 3.0 $196.6 $175.7 11.9
======== ======== ======== ========
Florida Progress Corporation
Selected Financial Information (Unaudited)
Three Months Ended Percent Twelve Months Ended Percent
December 31 Positive December 31 Positive
1993 1992 (Negative) 1993 1992 (Negative)
-------- -------- -------- -------- --------- --------
Earnings Per Share:
Florida Power Corporation $0.33 $0.41 (19.5) $2.06 $1.99 3.5
-------- -------- -------- ---------
Electric Fuels Corporation 0.06 0.04 50.0 0.17 0.14 21.4
Mid-Continent Life Insurance Co. 0.02 0.03 (33.3) 0.10 0.09 11.1
Progress Credit Corporation
Lending and Leasing 0.03 0.01 200.0 0.02 0.05 (60.0)
Real Estate (0.01) (0.11) 90.9 (0.08) (0.19) 57.9
Corporate and other (0.01) 0.03 - (0.05) (0.02) (150.0)
-------- -------- -------- ---------
Diversified 0.09 - - 0.16 0.07 128.6
-------- -------- -------- ---------
Income before change in acct. 0.42 0.41 2.4 2.22 2.06 7.8
Change in accounting for def. tax - - - 0.01 - -
-------- -------- -------- ---------
Total $0.42 $0.41 2.4 $2.23 $2.06 8.3
======== ======== ======== =========
Average shares outstanding (mill.) 89.0 87.2 2.1 88.3 85.4 3.4
Dividends per share $0.495 $0.485 2.1 $1.950 $1.905 2.4
Book value per share $20.40 $19.85 2.8
December 31
December 31 1993 1992
1993 1992 Amount Percent Amount Percent
-------- -------- --------- -------- ---------
- --------
Equity investments (percent): Capitalization (in millions):
Florida Power Corporation 84 84 Common stock $1,820.5 45.1 $1,737.6 45.6
Electric Fuels Corporation 8 7 Preferred stock 148.5 3.7 216.0 5.7
Mid-Continent Life Insurance Co. 4 4 Long-term debt 1,866.6 46.2 1,656.4 43.4
Progress Credit Corporation 4 5 Short-term
capital 201.6 5.0 201.9 5.3
-------- -------- --------- -------- ---------
- --------
Total 100 100 Total $4,037.2 100.0 $3,811.9 100.0
======== ======== ========= ======== =========
========
Florida Power Corporation
Selected Statistical Data (Unaudited)
(In millions, except billing degree days)
Three Months Ended Twelve Months Ended
December 31 Percent December 31 Percent
1993 1992 Change 1993 1992 Change
-------- -------- -------- -------- -------- --------
Revenues:
Residential $261.9 $220.6 18.7 $1,058.7 $928.8 14.0
Commercial 116.7 103.2 13.1 457.9 415.9 10.1
Industrial 41.0 35.6 15.2 161.9 138.3 17.1
Other retail sales 27.0 24.7 9.3 99.7 92.6 7.7
-------- -------- -------- --------
446.6 384.1 16.3 1,778.2 1,575.6 12.9
Sales for resale 34.9 25.0 39.6 122.3 100.5 21.7
-------- -------- -------- --------
481.5 409.1 17.7 1,900.5 1,676.1 13.4
Other electric revenues 5.6 (0.5) - 66.1 57.8 14.4
Deferred fuel (7.4) (0.9) - (9.0) 40.2 -
-------- -------- -------- --------
Total $479.7 $407.7 17.7 $1,957.6 $1,774.1 10.3
======== ======== ======== ========
Kilowatt-hour sales billed:
Residential 3,196.3 2,997.5 6.6 13,372.6 12,825.8 4.3
Commercial 1,995.2 1,886.1 5.8 7,884.8 7,544.1 4.5
Industrial 846.6 806.0 5.0 3,380.8 3,254.5 3.9
Other retail sales 499.3 472.1 5.8 1,890.1 1,789.6 5.6
-------- -------- -------- --------
6,537.4 6,161.7 6.1 26,528.3 25,414.0 4.4
Sales for resale 682.0 518.8 31.5 2,119.5 1,961.5 8.1
-------- -------- -------- --------
Total electric sales 7,219.4 6,680.5 8.1 28,647.8 27,375.5 4.6
======== ======== ======== ========
System Requirements (KWH) 7,005 6,466 8.3 30,244 28,701 5.4
Retail KWH Sales
(Billed & Unbilled) 6,326 5,812 8.8 26,774 25,418 5.3
Billing Degree Days:
Cooling 735 755 (2.6) 3,581 3,571 0.3
Heating 96 94 2.1 409 461 (11.3)
Note: Total revenues include billed revenues and unbilled revenues that are
accrued for accounting purposes. Statistics for total kilowatt-hour sales only
include billed kilowatt-hour sales. The statistic for system requirements is
based on total system generation, so it includes billed and unbilled sales.
Since system requirements include billed and unbilled kilowatt-hour sales, it
is a better measure of total sales growth.