EXHIBIT 99.(b)
Florida Progress Corporation
News Release
Corporate Relations Department, St. Petersburg, Florida
Media Contact:
Phil Dean -- (813) 866-5779
[CORPORATE LOGO OMITTED]
Florida Progress reports decrease in first-quarter earnings
ST. PETERSBURG, FL. (April 17, 1997) -- Florida Progress Corporation, the parent
of St. Petersburg-based Florida Power Corporation, today reported consolidated
first-quarter earnings of $42.0 million, or $.43 per share. This compared with
$48.3 million, or $.50 per share for the same quarter last year.
Revenues for the first quarter totaled $747.5 million, compared with $730.4
million for the first quarter of 1996.
Florida Power Corporation earned $41.2 million, or $.42 per share, on revenues
of $553.8 million in the first quarter. This compared with earnings of $42.9
million, or $.44 per share, on revenues of $547.3 million in the first quarter
of 1996. The number of utility customers continued to grow by nearly two percent
in the first quarter, which is approximately twice the national average.
Increased operating and maintenance expenses for Florida Power accounted for
some of the reduced earnings. These expenses were almost $10 million higher
compared with the first quarter of 1996. The increase was due primarily to costs
associated with the outage of the Crystal River nuclear plant and several fossil
plant outages. The nuclear unit is scheduled to be out of service until year-end
1997 while modifications required by the Nuclear Regulatory Commission are made
to several of the unit's backup safety systems.
Lower preferred stock dividends and depreciation expense helped to offset some
of these higher expenses. In 1996, Florida Power redeemed $105 million in
preferred stock, which reduced preferred dividends by about $2 million.
Depreciation of regulatory assets was accelerated in 1996, which lowered
depreciation expense by approximately $3 million in 1997.
Electric Fuels Corporation, the energy and transportation subsidiary of Florida
Progress, earned $3.3 million, or $.03 per share during the first quarter. This
compared with earnings of $6.8 million, or $.07 per share for the same period
last year.
The decrease in earnings is attributable to adverse weather and flooding along
the Ohio and Mississippi rivers, which damaged company-owned terminal facilities
and continues to disrupt river traffic.
-more-
Florida Progress Corporation (NYSE:FPC) is a Fortune 500 diversified utility
holding company with assets of $5.5 billion. Its principal subsidiary, Florida
Power Corporation, is the second-largest investor-owned electric utility in the
state. It currently serves approximately 1.3 million customers. Its other
primary subsidiary, Electric Fuels Corporation, is an energy and transportation
company with interests in coal mining, marine transportation and rail services.
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Three Months Ended Twelve Months Ended
March 31 March 31
------------------------------------ ----------------------------------------
1997 1996 1997 1996
---------------- ---------------- ------------------ --------------------
Revenues $747,500,000 $730,400,000 $3,175,000,000 $3,045,200,000
---------------- ---------------- ------------------ -------------------
Income from continuing operations 42,000,000 48,300,000 244,400,000 240,600,000
Discontinued operations - - (26,300,000) -
---------------- ---------------- ------------------ -------------------
Net Income $ 42,000,000 $ 48,300,000 $ 218,100,000 $ 240,600,000
================ ================ ================== ===================
Earnings Per Share (EPS):
Income from continuing operations $ .43 $ .50 $2.52 $2.51
Discontinued operations - - (.27) -
------ ------ ----- -----
Consolidated $ .43 $ .50 $2.25 $2.51
====== ====== ===== =====
Average Common
Shares Outstanding 97,036,161 96,500,110 96,969,645 96,052,565
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Current and prior periods reflect the recapitalization of the spin-off company, Echelon International, and its
associated treatment as discontinued operations.
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