EXHIBIT 99.(b)
FLORIDA PROGRESS CORPORATION
One Progress Plaza
St. Petersburg, Florida 33701
Fax: (813) 824-6401
INVESTOR INFORMATION
Analysts' Contacts:
Richard R. Champion, Director, Investor Relations (813) 824-6428
Mark A. Myers, Manager, Investor Communications (813) 824-6422
April 21, 1994
Florida Progress Corporation releases first-quarter earnings
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.
As a measure of cold weather, heating-degree days indicate variances from year
to year. In this year's first quarter, the heating-degree days in Florida
Power's service territory were more than 35 percent higher than last year's
first quarter, and about 19 percent above the 10-year average. These variances
indicate that the utility's service area experienced relatively cold
temperatures during the first three months of 1994.
- - more -
Energy sales also increased during the first quarter of this year because
customer growth was 3.2 percent, compared with 2.1 percent a year ago. The
higher customer growth rate is primarily due to Florida Power's acquisition of
the city of Sebring's distribution system in June of last year. This
acquisition added about 12,500 customers to Florida Power's system.
Another factor contributing to increased revenues and higher earnings at the
utility this year has been the continued impact of a phased-in rate increase
during 1993. State regulators granted Florida Power an $86-million base rate
increase in 1992, to be collected in three steps. The phased-in approach was
designed to coincide with the completion of new capital additions, such as the
in-service dates of new generating units.
The first phase of the increase, or about $58 million in annual revenues, went
into effect in November 1992. In April 1993, the utility began collecting the
second phase, or approximately $10 million in annualized revenues. The third,
and final, part of the increase -- estimated to result in revenues of about $18
million annually -- went into effect in November 1993.
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 transportation subsidiary. An acquisition in June
1993 by Electric Fuels boosted the company's 1994 operating results. Earnings
also were higher during the quarter due to a state tax adjustment that lowered
corporate overhead costs in 1994. 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.
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Florida Progress Corporation Page 3
Selected Financial Information (Unaudited)
(In millions)
Three Months Ended Twelve Months Ended
March 31 Percent March 31 Percent
1994 1993 Change 1994 1993 Change
-------- ------ ------- --------- --------- ------
Revenues:
Electric utility $483.5 $407.0 18.8 $2,034.1 $1,798.0 13.1
Diversified 145.8 86.3 68.9 550.9 327.1 68.4
--------------------------------- -----------------------------
Total revenues 629.3 493.3 27.6 2,585.0 2,125.1 21.6
--------------------------------- -----------------------------
Expenses:
Electric utility:
Fuel and purchased power 162.2 121.6 33.4 699.1 614.0 13.9
Other oper. & maintenance 138.3 117.5 17.7 535.6 457.8 17.0
Depr. and other taxes 104.7 93.2 12.3 404.3 353.7 14.3
--------------------------------- -----------------------------
Total utility expenses 405.2 332.3 21.9 1,639.0 1,425.5 15.0
Diversified 134.1 76.2 76.0 498.2 289.5 72.1
--------------------------------- -----------------------------
Total expenses 539.3 408.5 32.0 2,137.2 1,715.0 24.6
--------------------------------- -----------------------------
Income from operations 90.0 84.8 6.1 447.8 410.1 9.2
Interest expense and other 36.4 34.2 6.4 138.6 140.8 (1.6)
--------------------------------- -----------------------------
Income before income taxes 53.6 50.6 5.9 309.2 269.3 14.8
Income taxes 17.8 17.0 4.7 111.2 90.1 23.4
--------------------------------- -----------------------------
Income before cum. effect of
accounting change 35.8 33.6 6.5 198.0 179.2 10.5
Cumulative effect of change in
accounting for income taxes - 0.8 - - 0.8 -
--------------------------------- -----------------------------
Net Income $35.8 $34.4 4.1 $198.0 $180.0 10.0
================================= =============================
/TABLE
Florida Progress Corporation Page 4
Selected Financial Information (Unaudited)
Three Months Ended Percent Twelve Months Ended Percent
March 31 Positive March 31 Positive
1994 1993 (Negative) 1994 1993 (Negative)
-------- -------- -------- ----------------- --------
Earnings Per Share:
Florida Power Corporation $0.36 $0.36 - $2.05 $2.00 2.5
-------- -------- ----------------- --------
Electric Fuels Corporation 0.03 0.02 50.0 0.18 0.14 28.6
Mid-Continent Life Insurance Co. 0.03 0.02 50.0 0.10 0.09 11.1
Progress Credit Corporation
Lending and Leasing 0.01 0.01 - 0.02 0.04 (50.0)
Real Estate (0.02) (0.02) - (0.08) (0.18) 55.6
Corporate and other (0.01) (0.01) - (0.04) (0.02) (100.0)
-------- -------- -----------------
Diversified (before SFAS 109) 0.04 0.02 100.0 0.18 0.07 157.1
-------- -------- -----------------
Income before accounting change 0.40 0.38 5.3 2.23 2.07 7.7
Change in accounting - 0.01 - - 0.01 -
-------- -------- -----------------
Total $0.40 $0.39 2.6 $2.23 $2.08 7.2
======== ======== =================
Average shares outstanding (mill.) 89.4 87.7 1.9 88.8 86.6 2.5
Dividends per share $0.495 $0.485 2.1 $1.960 $1.920 2.1
Book value per share $20.35 $19.83 2.6
March 31
March 31 1994 1993
1994 1993 Amount Percent Amount Percent
-------- -------- --------- -------- --------- --------
Equity investments (percent): Capitalization (in millions):
Florida Power Corporation 84 84 Common stock $1,826.1 45.5 $1,744.3 45.5
Electric Fuels Corporation 8 7 Preferred stock 148.5 3.7 183.5 4.8
Mid-Continent Life Insurance Co. 4 4 Long-term debt 1,891.5 47.1 1,780.6 46.4
Progress Credit Corporation 4 5 Short-term
capital 150.9 3.7 127.9 3.3
-------- -------- --------- -------- --------- --------
Total 100 100 Total $4,017.0 100.0 $3,836.3 100.0
======== ======== ========= ======== ========= ========
/TABLE
Florida Power Corporation
Selected Statistical Data (Unaudited) Page 5
(In millions, except billing degree days)
Three Months Ended Twelve Months Ended
March 31 Percent March 31 Percent
1994 1993 Change 1994 1993 Change
-------- -------- -------- -------- -------- --------
Revenues:
Residential $267.5 $216.3 23.7 $1,109.9 $928.5 19.5
Commercial 102.5 91.9 11.5 468.5 414.9 12.9
Industrial 39.7 35.3 12.5 166.3 139.2 19.5
Other retail sales 23.4 18.6 25.8 104.5 89.9 16.2
-------- -------- -------- --------
433.1 362.1 19.6 1,849.2 1,572.5 17.6
Sales for resale 30.9 23.6 30.9 129.6 98.5 31.6
-------- -------- -------- --------
464.0 385.7 20.3 1,978.8 1,671.0 18.4
Other electric revenues 12.3 20.4 (39.7) 58.0 64.9 (10.6)
Deferred fuel 7.2 0.9 - (2.7) 62.1 -
-------- -------- -------- --------
Total $483.5 $407.0 18.8 $2,034.1 $1,798.0 13.1
======== ======== ======== ========
Kilowatt-hour sales billed:
Residential 3,237.7 2,906.8 11.4 13,703.5 12,765.8 7.3
Commercial 1,723.7 1,664.2 3.6 7,944.3 7,581.2 4.8
Industrial 830.2 781.3 6.3 3,429.7 3,239.1 5.9
Other retail sales 426.2 407.8 4.5 1,908.5 1,799.3 6.1
-------- -------- -------- --------
6,217.8 5,760.1 7.9 26,986.0 25,385.4 6.3
Sales for resale 514.8 381.8 34.8 2,252.5 1,837.2 22.6
-------- -------- -------- --------
Total electric sales 6,732.6 6,141.9 9.6 29,238.5 27,222.6 7.4
======== ======== ======== ========
System Requirements (KWH) 6,874 6,472 6.2 30,646 28,754 6.6
Retail KWH Sales
(Billed & Unbilled) 6,160 5,839 5.5 27,095 25,490 6.3
Billing Degree Days:
Cooling - - - 3,386 3,322 1.9
Heating 453 334 35.6 627 537 16.8
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.