EXHIBIT 99.(a)
Florida Progress Corporation
One Progress Plaza
St. Petersburg, Florida 33701
Contact: Karen Raihill - (813) 866-5023
FOR IMMEDIATE RELEASE:
Florida Progress Corporation releases first-quarter earnings
ST. PETERSBURG, Fla. (April 21, 1994) -- Florida Progress Corporation, parent
of St. Petersburg-based Florida Power Corporation, today reported first-quarter
earnings of $35.8 million, compared with $34.4 million earned a year ago.
Higher revenues from Florida Power and improved operating results from Florida
Progress' diversified operations were the main reasons for the company's
increase in first-quarter earnings. Florida Power's higher revenues in the
first quarter of 1994 were offset significantly because of costs associated
with an early retirement option.
Revenues for the quarter ended March 31 totaled $629.3 million, compared with
$493.3 million for the same period in 1993. Earnings per share in the first
quarter of 1994 were 40 cents, compared with 39 cents a share a year ago.
Florida Power, the largest subsidiary of Florida Progress, earned $31.8
million, or 36 cents per share, on revenues of $483.5 million in this year's
first quarter, compared with earnings of $31.5 million, or 36 cents a share, on
revenues of $407 million for the same period a year ago.
Utility revenues increased in 1994 primarily because retail kilowatt-hour sales
rose 5.5 percent and due to the continued impact of a phased-in rate increase
during 1993. Colder-than-normal temperatures across Florida Power's 32-county
service area contributed to the higher customer usage during the first three
months of this year. The average residential customer used 8.2 percent more
electricity this year than during the same three-month period last year.
A voluntary early retirement option, offered by the company to more than 200
eligible employees in December 1993, was accepted by 177 of them in January
1994. Costs related to this option lowered earnings by $7.9 million, or 9
cents a share, during the first quarter of this year. In last year's fourth
quarter, initial expenses for the early retirement option reduced 1993 earnings
by $3.4 million.
In this year's first quarter, earnings from Florida Progress' diversified
operations nearly doubled over the same period in 1993, largely because of
higher revenues and increased earnings from Electric Fuels Corporation, the
company's coal mining and
- - more -
transportation subsidiary. An acquisition in June 1993 by Electric Fuels
boosted the company's 1994 operating results. Diversified earnings were $4
million, or 4 cents per share, compared with the $2.1 million, or 2 cents a
share, earned last year.
Florida Progress (NYSE: FPC) is a diversified utility holding company with
assets of $5.6 billion. Its principal subsidiary is Florida Power, the state's
second-largest electric utility with more than 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
March 31 March 31
1994 1993 1994 1993
------------- ------------- -------------- --------------
Revenues $629,300,000 $493,300,000 $2,585,000,000 $2,125,100,000
Income Before Change in
Accounting $ 35,800,000 $ 33,600,000 $ 198,000,000 $ 179,200,000
Change in Accounting for
Deferred Taxes - 800,000 - 800,000
------------- ------------- -------------- --------------
Consolidated $ 35,800,000 $ 34,400,000 $ 198,000,000 $ 180,000,000
============= ============= ============== ==============
Earnings Per Share (EPS):
Florida Power Corporation $ .36 $ .36 $ 2.05 $ 2.00
Diversified Operations .04 .02 .18 .07
Income Before Change in ------- ------- ------ ------
Accounting .40 .38 2.23 2.07
Change in Accounting for
Deferred Taxes - .01 - .01
------- ------- ------ ------
Consolidated $ .40 $ .39 $ 2.23 $ 2.08
======= ======= ====== ======
Average Common
Shares Outstanding 89,393,052 87,671,182 88,764,886 86,588,917