EXHIBIT 99.(a)
Florida Progress Corporation
News Release
Corporate Relations Department, St. Petersburg, Florida
Media Contact:
Karen Raihill -- (813) 866-5023
Florida Progress Reports 6.3% Increase
In Earnings Per Share For The Third Quarter
ST. PETERSBURG, Fla. (October 17, 1996) - Florida Progress Corporation (NYSE:
FPC), parent of Florida Power Corporation, reported third-quarter earnings of
$98.1 million, or $1.01 per share, compared with $91.1 million, or $.95 per
share, for the same period last year.
Florida Power, the largest subsidiary of Florida Progress, earned $93.1 million,
or $.96 per share, on revenues of $694.7 million, compared with earnings of
$84.7 million, or $.88 per share, on revenues of $671.8 million in the third
quarter of 1995.
Florida Power's results improved as its customer growth rate of 2 percent
continues to be about twice the national average in the electric utility
industry. A 26-percent jump in energy sales to phosphate operations as a result
of new mining operations boosted industrial sales for the quarter. Megawatt-hour
sales to commercial customers increased 3 percent compared with a year ago.
Contributing to the improved earnings at Florida Power were lower interest
expense and preferred dividend payments. The lower interest expense is due to
reduced debt balances resulting from improved cash flow. In June 1996, Florida
Power redeemed $80 million of preferred stock, which reduced the utility's
preferred dividend payments.
During the third quarter of 1996, the utility incurred higher operating and
maintenance expenses associated with various improvements to Florida Power's
customer service operations along with additional repairs at its Crystal River
Nuclear Plant.
Electric Fuels Corporation, the energy and transportation subsidiary of Florida
Progress, had earnings of $6.5 million for the third quarter, compared with
earnings of $6.3 million for the same period last year. The 3.2% increase in
earnings is primarily attributable to improved earnings at its marine
operations, which resulted from higher volumes of coal being transported this
year over 1995.
Mid-Continent Life Insurance Company's earnings for the third quarter were down
$0.9 million compared with the same quarter in 1995. Lower than expected sales
of its new insurance product, introduced in the second quarter, combined with
higher death claims, were the primary factors causing lower earnings.
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Florida Progress Corporation
News Release - Florida Progress reports third-quarter earnings
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 service and life
insurance.
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Three Months Ended Twelve Months Ended
September 30 September 30
------------------------------------ ----------------------------------------
1996 1995 1996 1995
---------------- ---------------- ------------------ -------------------
Revenues $879,000,000 $852,400,000 $3,114,100,000 $2,948,100,000
============ ============ ============== ==============
Income from continuing
operations 98,100,000 91,100,000 251,100,000 238,900,000
Loss from discontinued
operations - - (25,000,000) -
------------------ ------------------ -------------------- ---------------------
Net Income $ 98,100,000 $ 91,100,000 $ 226,100,000 $ 238,900,000
================== ================== ==================== =====================
Earnings Per Share (EPS):
Florida Power Corporation $ .96 $ .88 $ 2.39 $ 2.28
Electric Fuels Corporation .07 .07 .27 .24
Mid-Continent Life Insurance Co. - .01 .03 .08
Corporate and Other Diversified (.02) (.01) (.09) (.10)
-------- -------- -------- --------
Income from Continuing Operations 1.01 .95 $ 2.60 $ 2.50
Loss from Discontinued Operations - - (.26) -
-------- -------- -------- --------
Consolidated $1.01 $ .95 $ 2.34 $ 2.50
======== ======== ======== ========
Average Common
Shares Outstanding 97,003,473 95,904,857 96,626,932 95,422,794
Florida Progress plans to spin-off Progress Credit Corporation, the company's
lending, leasing and real estate business. 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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