NEWS RELEASE
Florida Progress Corporation
One Progress Plaza
St. Petersburg, Florida 33701
Contact: Karen Raihill - (813) 866-5023
Florida Progress Corporation reports third-quarter earnings of $75.1 million
ST. PETERSBURG, Fla. (October 20, 1994) -- Florida Progress Corporation, parent
of St. Petersburg-based Florida Power Corporation, today reported third-quarter
earnings of $75.1 million, compared with $82 million earned during the same
period a year ago.
Revenues for the quarter ended September 30, 1994, totaled $745 million,
compared with $768.9 million for the third quarter of 1993. Earnings per share
in the third quarter of 1994 were 80 cents, compared with 93 cents a share
earned during the same three-month period last year.
Florida Power, the largest subsidiary of Florida Progress, earned $69.4
million, or 74 cents per share, on revenues of $586.5 million in this year's
third quarter, compared with earnings of $81.5 million, or 92 cents a share, on
revenues of $609 million for the same period a year ago.
Lower retail kilowatt-hour sales during this year's third quarter contributed
to the reduced earnings at Florida Power. Also reducing utility results were
two one-time charges against earnings - one for work force reduction costs and
another because of a decision to withdraw as an equity partner from a gas
pipeline project.
During the third quarter, frequent afternoon thunderstorms lowered normally
high temperatures across Florida Power's 32-county service territory. This
reduced electricity demand and customer usage from July to September, compared
with a year ago, when Florida Power customers used record amounts of power.
Six times last summer, the utility set system demand peaks.
In this year's third quarter, retail energy sales declined 3.7 percent,
compared with the same period in 1993. Florida Power's average residential
customer used 6.5 percent less electricity in the third quarter of 1994 than
during the same three-month period last year. Partly offsetting the decline in
third-quarter sales was customer growth of about 2 percent during the past
year.
Earlier this month, Florida Power announced that about 300 jobs would be
eliminated by the end of the year as part of its continuing efforts to reduce
costs. Expenses associated with these work force reductions resulted in an
after-tax charge against third-quarter earnings of $4.4 million. Later this
year, Florida Power will recognize a pension plan gain related to these work
force reductions, which will increase fourth-quarter earnings by approximately
$2.5 million. In addition, last month's decision to withdraw as an equity
partner from the proposed 715-mile SunShine gas pipeline project reduced
Florida Power's after-tax earnings in the third quarter by $3.9 million.
Earnings from Florida Progress' diversified operations for the quarter ended
September 30, 1994, were $5.7 million, or 6 cents per share, compared with
$500,000, or 1 cent a share, earned during last year's third quarter.
Electric Fuels Corporation, the company's coal mining and transportation
subsidiary, posted higher operating results this year over the same three-month
period a year ago. Also, diversified results were higher this year than last
year because of the 1993 changes in the federal corporate income tax rate. The
higher tax rate and its related impact on accounting for long-term leveraged
leases lowered third-quarter earnings in 1993.
Florida Progress (NYSE: FPC) is a diversified utility holding company with
assets of $5.7 billion. Its principal subsidiary is Florida Power Corporation,
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.
<CAPTION
Three Months Ended Twelve Months Ended
September 30 September 30
1994 1993 1994 1993
------------ ------------ -------------- --------------
Revenues $745,000,000 $768,900,000 $2,689,300,000 $2,309,000,000
============ ============ ============== ==============
Income Before Change in
Accounting $ 75,100,000 $ 82,000,000 $ 201,000,000 $ 194,700,000
Change in Accounting for
Income Taxes - - - 800,000
------------- ------------ -------------- --------------
Consolidated $ 75,100,000 $ 82,000,000 $ 201,000,000 $ 195,500,000
============ ============ ============== ==============
Earnings Per Share (EPS):
Florida Power Corporation $ .74 $ .92 $ 1.96 $ 2.14
Diversified Operations .06 .01 .25 .07
Income Before Change in ------ ------ ------ ------
Accounting .80 .93 2.21 2.21
Change in Accounting for
Income Taxes - - - .01
------ ------ ------ ------
Consolidated $ .80 $ .93 $ 2.21 $ 2.22
====== ====== ====== ======
Average Common
Shares Outstanding 93,870,194 88,576,989 90,960,841 87,896,357