Exhibit 99.(a) Florida Progress Corporation Investor News (LOGO OMITTED) Analyst Contacts: Greg Beuris (727) 820-5734 Lauran Willoughby (727) 820-5737 Florida Progress Reports Strong First Quarter Results St. Petersburg, Florida, April 16, 1999 - Florida Progress Corporation (NYSE:FPC) reported first-quarter 1999 earnings of $67.6 million, or $.69 per share, compared with 1998 first-quarter earnings of $50.5 million, or $.52 per share. FLORIDA POWER CORPORATION Florida Power, the largest subsidiary of Florida Progress, reported earnings of $.64 per share for the first quarter of 1999, compared with $.47 per share for the first quarter of 1998. Florida Power's total kilowatt-hour sales increased 5.5 percent during the first quarter of 1999, compared with 1998. Despite mild weather, retail sales were up 1.6 percent due to residential customer growth and strong usage growth among commercial customers. Wholesale sales, which increased 48.9 percent over 1998, accounted for most of the improvement in total kilowatt-hour sales for the quarter. Most of the increase in wholesale sales was due to higher sales in the short-term energy market and higher sales to Florida Power's largest wholesale customer, Seminole Electric Cooperative. Short-term energy sales have a minimal impact on earnings because the net benefit of the sales is credited to retail customers through the fuel cost recovery clause. In January 1999, Florida Power began supplying additional power to Seminole Electric, the largest electric cooperative in the state of Florida, under a three-year contract. Operations and maintenance expenses decreased $5.3 million, compared with the same quarter last year. Lower operations and maintenance costs resulted primarily from the timing of certain generation plant maintenance projects. A reconciliation of Florida Power's 1999 first-quarter earnings is as follows: 1998 First Quarter EPS $0.47 Customer & non-weather usage growth 0.13 Estimated weather impact on sales (0.06) Operations & maintenance 0.04 1998 nuclear outage replacement fuel 0.03 Gain on sale of property 0.03 1999 First Quarter EPS $0.64 ===== - more - ELECTRIC FUELS CORPORATION Electric Fuels earned $.09 per share in the first quarter, compared with $.08 per share last year. The increase was due primarily to improved operating results for the Energy and Related Services group, which offset lower earnings at the Rail Services and Inland Marine Transportation business units. Earnings at the Energy and Related Services group were up $3.0 million. The improvement was due largely to alternative fuel tax credits, which are generated from the production and sale of a synthetic fuel. Earnings from the Inland Marine Transportation group were down $1.0 million due to adverse weather conditions experienced during January and February. Prolonged icing conditions in January and high water conditions in February disrupted barge operations and limited tow capacity. Results in the Rail Services group decreased $1.6 million when compared with 1998, due to several factors. Scrap steel prices during the first quarter of 1999 were approximately 40 percent below 1998 first-quarter prices, resulting in reduced margins at its recycling operations. Scrap steel prices began falling in mid-1998 under the pressure of inexpensive finished steel imports. Also contributing to the lower results for the group was a temporary decrease in track work orders, which can fluctuate as railroads often reschedule the timing of track repair work. Partially offsetting the lower results was a strong demand for rail car parts throughout the quarter. A new track work facility was opened in Sherman, Texas in the first quarter. As a result, certain costs associated with the start-up of the new facility were expensed during the quarter. The plant was built to meet the needs of the major railroads in that region. Management believes the outlook for 1999 remains positive for the diversified operations despite the temporary conditions mentioned above. During March, track work orders returned to expected levels and river conditions returned to normal. "Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: This news release contains a forward-looking statement regarding the 1999 outlook for Florida Progress Corporation's diversified operations. This statement involves risks and uncertainties that could cause actual results or outcomes to differ materially from expectations. Key factors that could have a direct bearing on the company's ability to attain these projections include economic and weather conditions affecting the demand for and the supply of Electric Fuels Corporation's barge, rail and other services; successful cost containment efforts; legislative and regulatory developments, and other factors described in the company's Securities and Exchange Commission filings. Florida Progress (NYSE:FPC) is a Fortune 500 diversified utility holding company with assets of $6.2 billion. Its principal subsidiary is Florida Power, one of the nation's leading electric utilities committed to serving its 1.3 million customers in Florida with competitively priced energy, excellent reliability, and outstanding customer service. Diversified operations include rail services, marine operations and coal mining. FLORIDA PROGRESS CORPORATION CONSOLIDATED STATEMENTS OF INCOME Page 3 (UNAUDITED) (In millions, except per share amounts) Three Months Ended Twelve Months Ended March 31 March 31 -------------------------- -------------------- 1999 1998 1999 1998 ------------ ------------- ----------- -------- REVENUES: Electric utility $ 570.7 $ 565.2 $ 2,653.7 $ 2,459.8 Diversified 249.7 222.3 999.5 896.6 - ---------------------------------------------------------------------------------------------------------------- 820.4 787.5 3,653.2 3,356.4 - ---------------------------------------------------------------------------------------------------------------- EXPENSES: Electric utility: Fuel 113.7 109.2 600.2 472.4 Purchased power 90.3 99.0 425.1 462.4 Energy conservation cost 17.1 16.6 80.1 72.6 Operations and maintenance 97.1 102.4 466.3 422.3 Extended nuclear outage - O&M and replacement power costs - 5.1 - 170.5 Depreciation and amortization 80.8 81.0 346.9 332.6 Taxes other than income taxes 51.9 49.5 206.0 195.0 - ---------------------------------------------------------------------------------------------------------------- 450.9 462.8 2,124.6 2,127.8 - ---------------------------------------------------------------------------------------------------------------- Diversified: Cost of sales 225.1 193.8 858.5 775.9 Loss related to life insurance subsidiary - - - 97.6 Other 14.6 12.7 58.2 58.2 - ---------------------------------------------------------------------------------------------------------------- 239.7 206.5 916.7 931.7 - ---------------------------------------------------------------------------------------------------------------- INCOME FROM OPERATIONS 129.8 118.2 611.9 296.9 - ---------------------------------------------------------------------------------------------------------------- INTEREST EXPENSE AND OTHER: Interest expense 45.0 47.3 184.8 171.7 Allowance for funds used during construction (5.1) (3.9) (18.1) (11.5) Other expense (income) (4.3) - (4.5) 3.2 - ---------------------------------------------------------------------------------------------------------------- 35.6 43.4 162.2 163.4 - ---------------------------------------------------------------------------------------------------------------- INCOME BEFORE INCOME TAXES 94.2 74.8 449.7 133.5 Income taxes 26.6 24.3 150.9 70.7 - ---------------------------------------------------------------------------------------------------------------- NET INCOME 67.6 $ 50.5 298.8 62.8 - ---------------------------------------------------------------------------------------------------------------- AVERAGE SHARES OF COMMON STOCK OUTSTANDING 97.5 97.1 97.2 97.1 - ---------------------------------------------------------------------------------------------------------------- EARNINGS PER AVERAGE COMMON SHARE (BASIC and DILUTED) $.69 $.52 $3.08 $.65 - ----------------------------------------------------------------------------------------------------------------- Regarding these financial statements: In June 1998, Florida Power restated its financial results for the second, third and fourth quarters of 1997 to reflect recognition of the extended nuclear outage costs as incurred. The change affected the financial results for the interim reporting periods but did not have any affect on the results for the fiscal year ended 1997. Effective December 31, 1997, the Company deconsolidated the accounts of Mid-Continent Life Insurance Company and established a provision for loss for the full amount of its investment. The deconsolidation has not been reflected in the consolidated financial statements of prior periods. These are interim statements. Reference should be made to Florida Progress Corporation's 1998 Annual Report to shareholders. This report does not constitute an offer to sell or the solicitation of an offer to buy any securities. Page 4 Florida Progress Corporation Selected Financial Information (Unaudited) Three Months Ended Percent Twelve Months Ended Percent March 31 Positive March 31 Positive 1999 1998 (Negative) 1999 1998 (Negative) ------------ ------------ --------- ----------- ------------ ----------- Earnings (Loss) Per Share: Florida Power Corporation $.64 $.47 36.2 $2.73 $2.48 10.1 ------------ ------------ ----------- ------------ Electric Fuels Corporation .09 .08 12.5 .44 .38 15.8 Corporate and other (.04) (.03) (33.3) (.09) (.20) 55.0 ------------ ------------ ----------- ------------ Diversified Continuing before non-recurring .05 .05 - .35 .18 94.4 ------------ ------------ ----------- ------------ Continuing Ops before non-recurring .69 .52 32.7 3.08 2.66 15.8 Impact of nuclear outage - - - - (1.05) - Loss related to life insurance subsidiary - - - - (.96) - ------------ ------------ ----------- ------------ Total $.69 $.52 32.7 $3.08 $.65 373.8 ============ ============ =========== ============ Avg. shares outstanding (millions) 97.5 97.1 .4 97.2 97.1 .1 Dividends per share $.545 $.535 1.9 $2.15 $2.11 1.9 Book value per share: Florida Power Corporation $18.73 $18.18 3.0 Consolidated $19.39 $18.28 6.1 March 31 March 31 March 31 1999 1998 1999 1998 Amount Percent Amount Percent ------------ ------------ ------------------------------------------------ Equity investments (percent): Capitalization (in millions): Florida Power Corporation 88 90 Common stock $1,897.3 40.9 $1,773.9 39.8 Electric Fuels Corporation 12 10 Preferred stock 33.5 .7 33.5 .8 ------------ ------------ Total 100 100 Long-term debt 2,300.4 49.6 2,328.0 52.2 ------------ ------------ Short-term debt 405.3 8.8 323.2 7.2 ------------------------------------------------ Total $4,636.5 100.0 $4,458.6 100.0 ------------------------------------------------ In June 1998, Florida Power restated its financial results for the second, third and fourth quarters of 1997 to reflect recognition of the extended nuclear outage costs as incurred. The change affected the financial results for the interim reporting periods but did not have any affect on results for the fiscal year ended 1997. Florida Power Corporation Selected Statistical Data (Unaudited) Page 5 (In millions, except billing degree days) Three Months Ended Twelve Months Ended March 31 Percent March 31 Percent 1999 1998 Change 1999 1998 Change ------------ ----------- ----------- ------------ ------------ -------- Revenues: Residential (1) $298.7 $308.7 (3.2) $1,414.6 $1,333.0 6.1 Commercial 131.4 123.7 6.2 616.6 567.9 8.6 Industrial 49.3 47.8 3.1 215.9 203.8 5.9 Other retail sales 31.1 30.0 3.7 143.4 133.6 7.4 ------------ ----------- ------------ ------------ 510.5 510.2 .1 2,390.5 2,238.3 6.8 Wholesale Sales 48.8 36.9 32.2 217.7 150.5 44.7 ------------ ----------- ------------ ------------ 559.3 547.1 2.2 2,608.2 2,388.8 9.2 Other electric revenues (2) 23.6 21.4 10.3 69.2 84.9 (18.5) Deferred fuel (3) (12.2) (3.3) - (23.7) (13.9) - ------------ ----------- ------------ ------------ Total $570.7 $565.2 1.0 $2,653.7 $2,459.8 7.9 ============ =========== ============ ============ Kilowatt-hour sales billed: Residential 3,418.8 3,555.8 (3.9) 16,389.3 15,339.3 6.8 Commercial 2,178.2 2,030.9 7.3 10,146.6 9,293.8 9.2 Industrial 1,027.6 982.9 4.5 4,420.1 4,120.8 7.3 Other retail sales 559.8 529.9 5.6 2,515.5 2,337.9 7.6 ------------ ----------- ------------ ------------ 7,184.4 7,099.5 1.2 33,471.5 31,091.8 7.7 Wholesale Sales 1,007.6 655.2 53.8 4,216.9 2,562.9 64.5 ------------ ----------- ------------ ------------ Total electric sales 8,192.0 7,754.7 5.6 37,688.4 33,654.7 12.0 ============ =========== ============ ============ System Requirements (KWH) 8,024 7,844 2.3 37,943 34,928 8.6 KWH Sales (Billed & Unbilled): Retail 7,209 7,098 1.6 33,562 31,176 7.7 Wholesale 968 650 48.9 4,140 2,645 56.5 ------------ ----------- ------------ ------------ 8,177 7,748 5.5 37,702 33,821 11.5 ============ =========== ============ ============ Billing Degree Days: Cooling - 25 (100.0) 4,134 3,434 20.4 Heating 329 462 (28.8) 424 609 (30.4) Note: (1)From 1995 through 1997, Florida Power, as ordered by state regulators, conducted a three-year test of residential revenue decoupling. Under the plan, abnormal weather variances did not impact earnings with respect to residential revenues. (2)In the 4th quarter of 1998, the FPSC approved the establishment of a regulatory liability for 1998 deferred earnings, which resulted in a $10 million charge to Other electric revenues. Other electric revenues include unbilled revenues. (3)Revenues include amounts resulting from fuel, purchased power, and energy conservation clauses; which are designed to permit full recovery of these costs.