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
July 21, 1994
Florida Progress Corporation releases second-quarter earnings of $52.9 million
Florida Progress Corporation, parent of St. Petersburg-based Florida Power
Corporation, today reported second-quarter earnings of $52.9 million, compared
with $43 million earned during the same period a year ago.
Revenues for the quarter ended June 30 totaled $681.5 million, compared with
$553.3 million for the second quarter of 1993. Earnings per share in the
second quarter of 1994 were 58 cents, compared with 49 cents a share a year
ago.
Florida Power, the largest subsidiary of Florida Progress, earned $47.6
million, or 52 cents per share, on revenues of $517 million in this year's
second quarter, compared with earnings of $39.1 million, or 44 cents a share,
on revenues of $461.9 million for the same period a year ago.
Utility revenues continued to rise in 1994 primarily because of increased
retail kilowatt-hour sales and customer growth. Hot weather across Florida
Power's 32-county service area was the primary reason for the higher customer
usage from April to June.
As a measure of hot weather, cooling-degree days indicate variances from year
to year. In this year's second quarter, the cooling-degree days in Florida
Power's service territory were about 95 percent higher than the same period a
year ago, and about 7 percent above the 10-year average.
The average residential customer used 14.4 percent more electricity during this
year's second quarter than during the same three-month period a year ago.
Customer growth of 2.2 percent also contributed to the increase in energy sales
in the second quarter.
Earnings from Florida Progress' diversified operations also grew in the second
quarter, largely because of higher revenues and increased earnings from
Electric Fuels Corporation, the company's coal mining and transportation
subsidiary.
Diversified earnings in the quarter ended June 30 were $5.3 million, or 6 cents
per share, compared with $3.9 million, or 5 cents a share, earned in the second
quarter of 1993. An acquisition last year by Electric Fuels has continued to
boost the company's 1994 operating results. The assets of Steel Processing
Services, a rail car services and parts reconditioning firm based in
Albertville, Ala., were purchased in June 1993.
Higher diversified results during the second quarter of this year were slightly
offset by lower results from Florida Progress' life insurance unit. Higher
death claims and increased reserves resulted in reduced earnings for
Mid-Continent Life Insurance Company in the quarter. Other diversified
operations posted relatively little change over results from the same period a
year ago.
SIX-MONTH SUMMARY OF OPERATING RESULTS
For the six months ended June 30, Florida Progress' earnings were $88.7
million, or 98 cents a share, on revenues of $1.311 billion, compared with
earnings of $77.4 million, or 88 cents a share, on revenues of $1.047 billion
from a year ago. Higher revenues and increased operating results from Florida
Power continued to improve the company's earnings in 1994. Diversified results
also have improved this year, primarily because of significant earnings growth
from Electric Fuels.
Florida Power's earnings for the first six months of this year were $79.4
million, or 88 cents per share, on revenues of $1 billion. During the same
six-month period in 1993, utility earnings were $70.6 million, or 80 cents a
share, on revenues of $868.9 million.
Higher energy sales and higher earnings from Florida Power this year offset the
increased costs for an early retirement package. In 1994, the utility
recognized after-tax expenses of $9.5 million, or 11 cents a share, related to
this package.
Year-to-date earnings from Florida Progress' diversified operations were $9.3
million, or 10 cents per share, compared with $6 million, or 7 cents a share,
for the first six months of 1993.
Florida Progress (NYSE: FPC) is a diversified utility holding company with
assets of $5.7 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.
Florida Progress Corporation Page 3
Selected Financial Information (Unaudited)
(In millions)
Three Months Ended Six Months Ended Twelve Months Ended
June 30 Percent June 30 Percent June 30 Percent
1994 1993 Change 1994 1993 Change 1994 1993 Change
Revenues:
Electric utility $517.0 $461.9 11.9 $1,000.5 $868.9 15.1 $2,089.2 $1,826.5 14.4
Diversified 164.5 91.4 80.0 310.3 177.7 74.6 624.0 340.2 83.4
-------- -------- -------- -------- -------- --------
Total revenues 681.5 553.3 23.2 1,310.8 1,046.6 25.2 2,713.2 2,166.7 25.2
-------- -------- -------- -------- -------- --------
Expenses:
Electric utility:
Fuel and purchased power 173.7 153.5 13.2 335.9 275.1 22.1 719.3 609.7 18.0
Other operation and
maintenance 133.5 125.1 6.7 271.8 242.6 12.0 544.0 469.5 15.9
Depreciation and
other taxes 105.7 95.9 10.2 210.4 189.1 11.3 414.1 363.1 14.0
-------- -------- -------- -------- -------- --------
Total utility expenses 412.9 374.5 10.3 818.1 706.8 15.7 1,677.4 1,442.3 16.3
Diversified 148.3 79.3 87.0 282.4 155.5 81.6 567.2 299.6 89.3
-------- -------- -------- -------- -------- --------
Total expenses 561.2 453.8 23.7 1,100.5 862.3 27.6 2,244.6 1,741.9 28.9
-------- -------- -------- -------- -------- --------
Income from operations 120.3 99.5 20.9 210.3 184.3 14.1 468.6 424.8 10.3
Interest expense and other 37.1 34.2 8.5 73.5 68.4 7.5 141.5 143.0 (1.0)
-------- -------- -------- -------- -------- --------
Income before income taxes 83.2 65.3 27.4 136.8 115.9 18.0 327.1 281.8 16.1
Income taxes 30.3 22.3 35.9 48.1 39.3 22.4 119.2 94.5 26.1
-------- -------- -------- -------- -------- --------
Income before cumulative
effect of accounting change 52.9 43.0 23.0 88.7 76.6 15.8 207.9 187.3 11.0
Cumulative effect of
change in accounting
for income taxes - - - - $0.8 - - $0.8 -
-------- -------- -------- -------- -------- --------
Net Income $52.9 $43.0 23.0 $88.7 $77.4 14.6 $207.9 $188.1 10.5
======== ======== ======== ======== ======== ========
/TABLE
Florida Progress Corporation Page 4
Selected Financial Information (Unaudited)
Three Months Ended Percent Six Months Ended Percent Twelve Months Ended Percent
June 30 Positive June 30 Positive June 30 Positive
1994 1993 (Negative) 1994 1993 (Negative) 1994 1993 (Negative)
-------- -------- -------- -------- --------- -------- --------- -------- --------
Earnings Per Share:
Florida Power Corporation $0.52 $0.44 18.2 $0.88 $0.80 10.0 $2.12 $2.05 3.4
-------- -------- -------- -------- --------- --------
Electric Fuels Corporation 0.06 0.03 100.0 0.10 0.05 100.0 0.21 0.13 61.5
Mid-Continent Life Insurance Co. 0.02 0.03 (33.3) 0.04 0.05 (20.0) 0.09 0.10 (10.0)
Progress Credit Corporation
Lending and Leasing 0.01 0.01 - 0.01 0.02 (50.0) 0.02 0.04 (50.0)
Real estate (0.02) (0.02) - (0.03) (0.04) 25.0 (0.08) (0.17) 52.9
Corporate and other (0.01) - - (0.02) (0.01) (100.0) (0.04) (0.01) (300.0)
-------- -------- -------- -------- --------- --------
Diversified (before SFAS 109) 0.06 0.05 20.0 0.10 0.07 42.9 0.20 0.09 122.2
-------- -------- -------- -------- --------- --------
Before accounting change 0.58 0.49 18.4 0.98 0.87 12.6 2.32 2.14 8.4
Change in accounting - - - - 0.01 - - 0.01 -
-------- -------- -------- -------- --------- --------
Total $0.58 $0.49 18.4 $0.98 $0.88 11.4 $2.32 $2.15 7.9
======== ======== ======== ======== ========= ========
Avg. shares outstanding (millions) 91.6 88.1 4.0 90.5 87.9 3.0 89.6 87.4 2.5
Dividends per share $0.495 $0.485 2.1 $0.990 $0.970 2.1 $1.970 $1.928 2.2
Book value per share:
Florida Power $17.31 $16.73 3.5
Consolidated $20.63 $19.90 3.7
June 30
June 30 1994 1993
1994 1993 Amount Percent Amount Percent
-------- -------- --------- ------------------- --------
Equity investments (percent): Capitalization (in millions):
Florida Power Corporation 84 84 Common stock $1,934.5 47.3 $1,759.7 44.0
Electric Fuels Corporation 8 7 Preferred stock 148.5 3.6 183.5 4.6
Mid-Continent Life Insurance Co. 4 4 Long-term debt 1,857.9 45.5 1,885.9 47.2
Progress Credit Corporation 4 5 Short-term
-------- -------- capital 147.3 3.6 168.2 4.2
Total 100 100 --------- -------- --------- --------
======== ======== Total $4,088.2 100.0 $3,997.3 100.0
========= ======== ========= ========
/TABLE
Florida Power Corporation
Selected Statistical Data (Unaudited) Page 5
(In millions, except billing degree days)
Three Months Ended Six Months Ended Twelve Months Ended
June 30 Percent June 30 Percent June 30 Percent
1994 1993 Change 1994 1993 Change 1994 1993 Change
-------- -------- -------- -------- -------- -------- -------- -------- --------
Revenues:
Residential $272.8 $234.5 16.3 $540.3 $450.8 19.9 $1,148.2 $965.5 18.9
Commercial 122.7 112.5 9.1 225.2 204.4 10.2 478.7 427.7 11.9
Industrial 44.0 42.5 3.5 83.7 77.8 7.6 167.8 147.6 13.7
Other retail sales 27.2 25.7 5.8 50.6 44.3 14.2 106.0 93.5 13.4
-------- -------- -------- -------- -------- --------
466.7 415.2 12.4 899.8 777.3 15.8 1,900.7 1,634.3 16.3
Sales for resale 26.6 26.8 (0.7) 57.5 50.4 14.1 129.4 106.3 21.7
-------- -------- -------- -------- -------- --------
493.3 442.0 11.6 957.3 827.7 15.7 2,030.1 1,740.6 16.6
Other electric revenues 25.4 22.4 13.4 37.7 42.8 (11.9) 61.0 57.3 6.5
Deferred fuel (1.7) (2.5) -- 5.5 (1.6) -- (1.9) 28.6 --
-------- -------- -------- -------- -------- --------
Total $517.0 $461.9 11.9 $1,000.5 $868.9 15.1 $2,089.2 $1,826.5 14.4
======== ======== ======== ======== ======== ========
Kilowatt-hour sales billed:
Residential 3,327.7 2,855.1 16.6 6,565.4 5,761.9 13.9 14,176.1 12,915.0 9.8
Commercial 2,125.0 1,882.8 12.9 3,848.7 3,547.0 8.5 8,186.5 7,661.8 6.8
Industrial 929.0 879.0 5.7 1,759.2 1,660.3 6.0 3,479.7 3,292.3 5.7
Other retail sales 504.9 456.7 10.6 931.1 864.5 7.7 1,956.7 1,826.1 7.2
-------- -------- -------- -------- -------- --------
6,886.6 6,073.6 13.4 13,104.4 11,833.7 10.7 27,799.0 25,695.2 8.2
Sales for resale 426.0 385.4 10.5 940.8 767.2 22.6 2,293.1 1,930.4 18.8
-------- -------- -------- -------- -------- --------
Total electric sales 7,312.6 6,459.0 13.2 14,045.2 12,600.9 11.5 30,092.1 27,625.6 8.9
======== ======== ======== ======== ======== ========
System Requirements (KWH) 8,293 7,354 12.8 15,167 13,826 9.7 31,611 29,091 8.7
Retail KWH Sales
(Billed & Unbilled) 7,223 6,470 11.6 13,383 12,309 8.7 27,848 25,769 8.1
Billing Degree Days:
Cooling 766 393 94.9 766 393 94.9 3,759 3,345 12.4
Heating 30 63 (52.4) 483 397 21.7 594 521 14.0
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.