EXHIBIT 99.(a)
Florida Progress Corporation
NEWS Release
Corporate Relations Department, St. Petersburg, Florida
Media Contact:
Karen Raihill -- (813) 866-5023
Florida Progress reports 5.2% increase in earnings per share
from continuing operations
ST. PETERSBURG, FL (July 18, 1996) -- Florida Progress Corporation (NYSE:FPC),
parent of Florida Power Corporation, reported second-quarter earnings of $58.8
million, or 61 cents a share from continuing operations, compared with $55.2
million, or 58 cents a share, for the prior-year quarter.
In anticipation of the spin-off of Progress Credit Corporation, the company's
lending, leasing, and real estate business, Florida Progress recorded an
after-tax charge in the second quarter of $25 million, or 26 cents per share,
primarily to write down certain Progress Credit assets that will be sold. The
company is reporting the results of Progress Credit as discontinued operations.
The spin-off will allow Florida Progress management to focus more attention on
its core utility and coal and transportation businesses. Progress Credit will be
launched as a well-capitalized business dedicated to seeking growth
opportunities primarily in real estate development to maximize the value of its
assets for shareholders.
Improved operating results at Florida Power and Electric Fuels Corporation, the
energy and transportation subsidiary of Florida Progress, contributed to the
higher earnings for the quarter.
Florida Power earned $53.9 million, or 56 cents per share, on revenues of $588.7
million, compared with earnings of $50.6 million, or 53 cents per share, on
revenues of $550.5 million in the second quarter of 1995.
Florida Power's customer growth, which is benefiting from a strong Florida
economy, contributed to the utility's improved financial performance. Florida
Power's customer growth rate continues to be nearly twice the industry average.
The company added more than 10,300 new service connections during the quarter.
New service connections are running at the highest annual rate since 1989.
Industrial energy sales for the quarter increased because of a 27 percent jump
in sales to phosphate customers, largely due to the opening of new mining
operations in Hardee County.
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Florida Progress Corporation
News Release -- Florida Progress reports second-quarter earnings
Electric Fuels' earnings for the second quarter were $6.7 million, compared with
$5.3 million a year ago. The earnings growth was attributed to improved results
at both its marine and rail services operations.
Electric Fuels' marine operations continue to benefit from strong customer
demand to move coal, grain, and other bulk commodities along the Ohio and lower
Mississippi rivers and across the Gulf of Mexico.
Earnings from Electric Fuels' rail subsidiary, Progress Rail Services
Corporation, improved as the company continues to expand its operations through
acquisitions and internal expansion. Progress Rail Services has locations in 14
states and is one of the largest integrated processors and suppliers of railroad
materials in the United States.
Florida Progress is a Fortune 500 diversified utility holding company with
assets of $5.6 billion. Its principal subsidiary is Florida Power, the state's
second-largest electric utility with about 1.3 million customers. Diversified
operations include coal mining, marine operations, rail services, and life
insurance.
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Three Months Ended Twelve Months Ended
June 30 June 30
------------------------------------ ------------------------------
1996 1995 1996 1995
---------------- ---------------- -------------- -------------
Revenues $773,600,000 $731,300,000 $3,087,500,000 $2,840,600,000
---------------- ---------------- -------------- --------------
Income from continuing operations 58,800,000 55,200,000 244,100,000 223,600,000
Loss from discontinued operations (25,000,000) - (25,000,000) -
---------------- --------------- ------------- -------------
Net Income $ 33,800,000 $ 55,200,000 $ 219,100,000 $ 223,600,000
================ =============== ============= =============
Earnings Per Share (EPS):
Florida Power Corporation $ .56 $ .53 $ 2.31 $ 2.13
Electric Fuels Corporation .07 .05 .27 .25
Mid-Continent Life Insurance .01 .02 .04 .08
Other Diversified Operations (.03) (.02) (.09) (.11)
------ ----- ----- -----
Income from Continuing Operations .61 .58 $ 2.53 $2.35
Loss from Discontinued Operations (.26) - (.26) -
------ ----- ----- -----
Consolidated $ .35 $ .58 $ 2.27 $ 2.35
====== ===== ===== =====
Average Common
Shares Outstanding 96,792,084 95,593,233 96,352,278 95,089,128
Current and prior periods reflect the recapitalization of the spin-off company,
Progress Credit, and its associated treatment as discontinued operations.
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