Progress Energy Announces 2005 Second-Quarter Results
Quarterly Highlights:
o Reports quarterly ongoing earnings of $0.63 per share, GAAP net loss of
$0.01 per share
o Includes quarterly ongoing earnings adjustments of $0.36 per share
related to post-retirement and severance charges and $0.25 per share of
intraperiod tax allocation
o Reports year-to-date ongoing earnings of $1.14 per share, GAAP earnings
of $0.37 per share
o Reaffirms 2005 ongoing earnings guidance of $2.90 - $3.20 per share
RALEIGH, N.C. (July 28, 2005) - Progress Energy [NYSE: PGN] today reported
ongoing earnings of $155 million, or $0.63 per share, for the second quarter of
2005 compared with ongoing earnings of $185 million, or $0.76 per share, for the
second quarter of 2004. Reported consolidated net loss under generally accepted
accounting principles (GAAP) was $1 million, or $0.01 per share, for the quarter
compared with reported consolidated net income of $154 million, or $0.63 per
share, for the second quarter of 2004. See the table that follows for a
reconciliation of ongoing earnings per share to GAAP earnings per share.
Core ongoing earnings, which include the results of Progress Energy Carolinas,
Progress Energy Florida and Progress Ventures, excluding synthetic fuels, were
$0.54 per share for the quarter compared to $0.61 per share for the same period
last year. The primary drivers of the decrease in core ongoing earnings were
milder weather and the write-off of unrecoverable storm costs associated with
the 2004 hurricanes. Partially offsetting these factors were the positive
impacts of one less planned nuclear refueling outage compared with 2004 and the
gain on the sale of the city of Winter Park, Florida's distribution system.
"I'm very pleased with the execution of our strategy so far this year," said Bob
McGehee, chairman and CEO of Progress Energy. "We have achieved several of our
key milestones - including an outstanding start to our cost-management
initiative and the regulatory ruling on recovering the 2004 hurricane costs.
Obviously, milder weather has impacted our earnings this quarter, but the third
quarter is off to a good start temperature-wise. I am confident in reaffirming
our 2005 ongoing earnings guidance of $2.90 to $3.20 per share."
Non-core earnings from the synthetic fuel operations were $0.09 per share for
the quarter compared with ongoing earnings of $0.15 per share for the same
period last year. The primary drivers of the decrease in non-core earnings were
due to lower synthetic fuel sales of 0.4 million tons compared to last year as a
result of a change in the planned production schedule and higher production
costs.
Ongoing earnings for the six months ended June 30, 2005, were $279 million, or
$1.14 per share, compared with ongoing earnings of $330 million, or $1.36 per
share, for the first half of 2004. Reported GAAP consolidated net income for the
first half of 2005 was $92 million, or $0.37 per share, compared with
consolidated net income of $262 million, or $1.08 per share, for the first half
of 2004.
The following table provides a reconciliation of ongoing earnings per share to
reported GAAP earnings per share. A detailed discussion of these items is
provided later in this release under the caption "Ongoing Earnings Adjustments."
Progress Energy, Inc.
Reconciliation of Ongoing Earnings per Share to Reported GAAP Earnings per Share
Three months ended June 30
2005 2004*
----------------------------------- --------------------------------------
Core Non-core Total Core Non-core Total
Ongoing earnings per share $ 0.54 $ 0.09 $ 0.63 $ 0.61 $ 0.15 $ 0.76
Intraperiod tax allocation (0.25) - (0.25) (0.02) - (0.02)
CVO mark-to-market - - - (0.02) - (0.02)
Progress Rail discontinued operations (0.03) - (0.03) 0.03 - 0.03
Postretirement and severance charges (0.36) - (0.36) - - -
SRS litigation settlement - - - (0.12) - (0.12)
----------- ------------ ---------- ----------- ------------ -------------
Reported GAAP earnings per share $ (0.10) $ 0.09 $ (0.01) $ 0.48 $ 0.15 $ 0.63
=========== ============ ========== =========== ============ =============
Shares outstanding (millions) 246 242
Progress Energy, Inc.
Reconciliation of Ongoing Earnings per Share to Reported GAAP Earnings per Share
Six months ended June 30
2005 2004*
----------------------------------- --------------------------------------
Core Non-core Total Core Non-core Total
Ongoing earnings per share $ 1.05 $ 0.09 $ 1.14 $ 1.06 $ 0.30 $ 1.36
Intraperiod tax allocation (0.26) - (0.26) (0.18) - (0.18)
CVO mark-to-market - - - (0.05) - (0.05)
Progress Rail discontinued operations (0.08) - (0.08) 0.07 - 0.07
Postretirement and severance charges (0.43) - (0.43) - - -
SRS litigation settlement - - - (0.12) - (0.12)
----------- ------------ ---------- ----------- ------------ -------------
Reported GAAP earnings per share $ 0.28 $ 0.09 $ 0.37 $ 0.78 $ 0.30 $ 1.08
=========== ============ ========== =========== ============ =============
Shares outstanding (millions) 245 242
* The prior year ongoing earnings have been restated to reflect the operations
of Progress Rail as discontinued operations.
2
The 2005 ongoing earnings guidance of $2.90 to $3.20 per share excludes any
impacts from the CVO mark-to-market adjustment, discontinued operations of
Progress Rail, and the postretirement and severance charges associated with the
cost-management initiative and voluntary enhanced retirement program. The nature
of these adjustments is discussed under the heading "Ongoing Earnings
Adjustments." Progress Energy is not able to provide a corresponding GAAP
equivalent for the 2005 earnings guidance figures due to the uncertain nature
and amount of these adjustments.
SIGNIFICANT DEVELOPMENTS
Financial Accounting Standards Board Issues Exposure Draft
On July 14, 2005, the Financial Accounting Standards Board (FASB) issued an
exposure draft of a proposed interpretation of SFAS No. 109, "Accounting for
Income Taxes," that would address the accounting for uncertain tax positions.
The proposed interpretation, as currently drafted, could have a material impact
on the company's evaluation and recognition of Section 29 tax credits generated
by its Earthco facilities. The exposure draft has a 60-day public comment period
ending September 12, 2005, and the company intends to provide comments during
this period.
Florida Public Service Commission Rules on Storm Cost Recovery
On June 21, 2005, the Florida Public Service Commission (FPSC) ruled that
Progress Energy Florida can begin recovering approximately $232 million of costs
incurred to respond to the four hurricanes in 2004. This amount was based on the
initial request of $252 million, and Progress Energy Florida may begin
recovering the costs in August 2005. The complete press release regarding this
announcement is available on the company's Web site at:
http://www.progress-energy.com/aboutus/news/article.asp?id=11942.
Progress Energy Carolinas Files for Fuel Recovery in North Carolina
On June 3, 2005, Progress Energy Carolinas filed for an increase in the fuel
rate charged to its North Carolina customers. Progress Energy Carolinas is
asking the North Carolina Utilities Commission to approve a $276 million
increase in the fuel components of its rates. Progress Energy Carolinas
requested the change to recoup unrecovered fuel costs for the previous 12 months
and to meet expected fuel costs in the near future. If approved, the increase
would take effect October 1, 2005. The complete press release regarding this
announcement is available on the company's Web site at:
http://www.progress-energy.com/aboutus/news/article.asp?id=11862.
South Carolina Public Service Commission Approves Fuel Factor Increase
On May 25, 2005, the South Carolina Public Service Commission approved an
increase in the fuel component of rates for Progress Energy Carolinas' South
Carolina customers. The agreement spreads a portion of the cost recovery over
three years with the new rates effective on July 1, 2005. The complete press
release regarding this announcement is available on the company's Web site at:
http://www.progress-energy.com/aboutus/news/article.asp?id=11842.
3
Florida's Governor Bush Signs Storm Securitization Bill into Law
On June 1, 2005, Florida's Governor Jeb Bush signed legislation authorizing
electric utilities to petition the FPSC to use securitized bonds to recover
catastrophic storm costs. Progress Energy Florida intends to ask the FPSC for
approval to issue securitized debt and expects the regulatory approval and
financing process to take six to nine months. This arrangement would benefit the
company by providing immediate cash recovery of the hurricane costs and would
benefit the customer by providing a longer recovery period, which would reduce
the price impact.
Progress Energy Florida Files Base Rate Plan
On April 29, 2005, Progress Energy Florida filed a request with the FPSC for a
new base rate plan beginning January 1, 2006. Progress Energy Florida is seeking
to increase base rates by approximately $206 million annually to support new
power plants, increase the storm reserve fund and better reflect the costs of
providing reliable power to customers in one of the fastest-growing regions in
the country. The complete press release regarding this announcement is available
on the company's Web site at:
http://www.progress-energy.com/aboutus/news/article.asp?id=11662.
LINE OF BUSINESS FINANCIAL INFORMATION
Progress Energy Carolinas
Progress Energy Carolinas electric energy operations contributed GAAP net income
of $68 million for the current quarter compared with $97 million for the same
period last year. This quarter's earnings were negatively impacted by
postretirement and severance charges and milder weather. Partially offsetting
these factors were the positive impacts of one less planned nuclear refueling
outage compared with 2004 and increased growth and usage. The results for the
current quarter include an increase in income tax expense to apply an effective
tax rate to interim periods that is consistent with the annual rate.
For the six months ended June 30, 2005, Progress Energy Carolinas electric
energy operations contributed GAAP net income of $184 million compared with $213
million for the same period last year.
See the attached Supplemental Data schedules for additional information on
Progress Energy Carolinas electric revenues, energy sales, energy supply,
weather impacts and the postretirement and severance charges.
Progress Energy Florida
Progress Energy Florida electric energy operations contributed GAAP net income
of $10 million for the quarter compared with $84 million for the same period
last year. This quarter's earnings were negatively impacted by higher O&M
expenses, milder weather and lower average usage per retail customer. These
factors were partially offset by the gain on the sale of the city of Winter
Park's distribution system and increased retail customer growth. Higher O&M
4
expenses were primarily attributable to postretirement and severance charges,
the write-off of unrecoverable storm costs associated with the 2004 hurricanes
and the change in accounting estimates for certain Energy Delivery capital
costs. The results for the current quarter include an increase in income tax
expense to apply an effective tax rate to interim periods that is consistent
with the annual rate.
For the six months ended June 30, 2005, Progress Energy Florida electric energy
operations contributed GAAP net income of $53 million compared with $133 million
for the same period last year.
See the attached Supplemental Data schedules for additional information on
Progress Energy Florida electric revenues, energy sales, energy supply, weather
impacts and the postretirement and severance charges.
Progress Ventures, excluding synthetic fuels
The Progress Ventures operations, excluding synthetic fuels, consist of Progress
Fuels, which includes natural gas production and coal mining, and Competitive
Commercial Operations, which includes nonregulated generation and energy
marketing activities. The Progress Ventures business unit, excluding synthetic
fuels, had GAAP net income of $9 million for the quarter compared with $22
million for the same period last year. This quarter's earnings were negatively
impacted by postretirement and severance charges.
Progress Fuels, excluding synthetic fuels, generated GAAP net income of $12
million for the current quarter compared with $17 million for the same period
last year. This quarter's earnings were negatively impacted by increased mining
and production costs, lower gas production as a result of the sale of certain
gas assets in 2004, and lower coal sales volume. These factors were partially
offset by higher margins on the remaining gas assets.
Competitive Commercial Operations recorded a GAAP net loss of $3 million for the
quarter compared with GAAP net income of $5 million for the same period last
year. This quarter's results were negatively impacted by lower contract margins
primarily as a result of the expiration of certain tolling agreements and lower
at-market sales. These factors were partially offset by increased earnings from
the new full-requirements contracts and increased load on an existing contract.
For the six months ended June 30, 2005, Progress Ventures, excluding synthetic
fuels, contributed GAAP net income of $14 million compared with $24 million for
the same period last year.
Other Businesses
Other businesses include Progress Telecom and other small subsidiaries. Other
businesses had a GAAP net loss of $2 million for the quarter compared with a
GAAP net loss of $31 million for the same period last year. Results from the
quarter ended June 30, 2004, included a $29 million after-tax charge recorded by
SRS related to a civil litigation settlement.
For the six months ended June 30, 2005, other businesses reported a GAAP net
loss of $2 million compared with a GAAP net loss $35 million for the same period
last year.
5
Corporate
Corporate results, which primarily include interest expense on holding company
debt, incurred ongoing operating losses of $53 million for the quarter compared
with ongoing operating losses of $51 million for the same period last year.
For the six months ended June 30, 2005, corporate results had ongoing operating
losses of $108 million compared with $106 million for the same period last year.
Synthetic Fuels
Synthetic fuels operations generated GAAP net income of $23 million for the
quarter compared with GAAP net income of $36 million for the same period last
year. Earnings were negatively impacted by lower sales and higher production
costs. Total synthetic fuel sales were 2.3 million tons for the quarter compared
with 2.7 million tons for the same period last year. The decrease in sales is
primarily attributable to a change in the quarterly planned production schedule
in 2005 compared to 2004.
For the six months ended June 30, 2005, synthetic fuel operations reported GAAP
net income of $22 million compared with $72 million for the same period last
year.
ONGOING EARNINGS ADJUSTMENTS
Progress Energy's management uses ongoing earnings per share to evaluate the
operations of the company and to establish goals for management and employees.
Management believes this presentation is appropriate and enables investors to
compare more accurately the company's ongoing financial performance over the
periods presented. Ongoing earnings as presented here may not be comparable to
similarly titled measures used by other companies. Reconciling adjustments from
GAAP earnings to ongoing earnings as they relate to the current quarter and
information included in the Supplemental Data schedules are as follows:
Intraperiod Tax Allocation
Generally accepted accounting principles require companies to apply an effective
tax rate to interim periods that is consistent with a company's estimated annual
tax rate. The tax credits generated from synthetic fuel operations reduce
Progress Energy's overall effective tax rate. The company's synthetic fuel sales
are not subject to seasonal fluctuations to the same extent as the electric
utility earnings. The company projects the effective tax rate for the year and
then, based upon projected operating income for each quarter, raises or lowers
the tax expense recorded in that quarter to reflect the projected tax rate. On
the other hand, operating losses incurred to produce the tax credits are
included in the current quarter. The resulting tax adjustment decreased earnings
per share by $0.25 for the quarter and by $0.02 for the same period last year,
but has no impact on the company's annual earnings. An effective tax rate
adjustment was also recorded for Progress Energy Carolinas and Progress Energy
Florida this quarter. Since this adjustment varies by quarter but has no impact
on annual earnings, management believes this adjustment is not representative of
the company's ongoing quarterly earnings.
6
Contingent Value Obligation (CVO) Mark-to-Market
In connection with the acquisition of Florida Progress Corporation, Progress
Energy issued 98.6 million CVOs. Each CVO represents the right to receive
contingent payments based on after-tax cash flows above certain levels of four
synthetic fuel facilities purchased by subsidiaries of Florida Progress
Corporation in October 1999. The CVOs are debt instruments and, under GAAP, are
valued at market value. Unrealized gains and losses from changes in market value
are recognized in earnings each quarter. The CVO mark-to-market had no impact
during the quarter and decreased earnings per share by $0.02 for the same period
last year. Since changes in the market value of the CVOs do not affect the
company's underlying obligation, management does not consider the adjustment a
component of ongoing earnings.
Progress Rail Discontinued Operations
The sale of Progress Rail Services Corp. (Progress Rail) to One Equity Partners,
LLC closed on March 24, 2005, and the net proceeds were used to pay down debt.
Progress Rail had a discontinued loss of $7 million for the quarter compared
with discontinued earnings of $8 million in the prior year. The current
quarter's results include an additional after-tax loss on the sale due to
working capital adjustments and adjustments to the estimated loss on the sale.
The company anticipates adjustments to the loss on the divestiture during the
third quarter of 2005 related to employee benefit settlements and the
finalization of the working capital adjustment and other operating expenses.
For the six months ended June 30, 2005, Progress Rail had a discontinued loss of
$19 million compared with discontinued earnings of $16 million in the prior
year.
Due to its sale, the operations of Progress Rail are reported as discontinued
operations in the accompanying financial statements and therefore management
does not believe this activity is representative of the ongoing operations of
the company.
Cost-Management Restructuring Charge
On February 28, 2005, as part of a previously announced cost-management
initiative, Progress Energy approved a workforce restructuring, which will
result in a reduction of approximately 450 positions and is expected to be
completed in September 2005. In connection with the cost-management initiative,
the company incurred approximately $176 million of estimated pre-tax charges.
Approximately $18 million of this amount relates to estimated future payments
for severance benefits that will be paid out over time. The remaining $158
million relates to postretirement and termination benefits that will be paid out
over time to the 1,450 eligible employees who elected to participate in the
voluntary enhanced retirement program. The cost-management initiative charges
are subject to revision in future quarters based on the completion of the
workforce restructuring and the potential additional impacts that the early
retirements and outplacements may have on the company's postretirement plans.
Such revisions may be significant. In addition, the company expects to incur
certain incremental costs other than severance and postretirement benefits for
recruiting and staff augmentation activities that cannot be quantified at this
time. Due to the nonrecurring nature of the adjustment, management believes it
is not representative of the company's ongoing operations.
7
SRS Litigation Settlement
In June 2004, SRS, a subsidiary of the company, reached a settlement agreement
in a civil suit with the San Francisco Unified School District. As a result, the
company recorded a charge of approximately $29 million after-tax in the second
quarter 2004. Management does not believe this settlement charge is indicative
of ongoing operations of the company.
* * * *
This earnings announcement, as well as a package of detailed financial
information, is available on the company's Web site at www.progress-energy.com.
Progress Energy's conference call with the investment community will be held
July 28, 2005, at 10 a.m. ET (7 a.m. PT) and will be hosted by Bob McGehee,
chairman and chief executive officer, and Geoff Chatas, executive vice president
and chief financial officer. Investors, media and the public may listen to the
conference call by dialing 913-981-4913, confirmation code 9587784. Should you
encounter problems, please contact Tammy Blankenship at 919-546-2233. A playback
of the call will be available from 1 p.m. ET July 28 through midnight August 11,
2005. To listen to the recorded call, dial 719-457-0820 and enter confirmation
code 9587784.
A webcast of the live conference call will be available at
www.progress-energy.com. The webcast will be available in Windows Media format.
The webcast will be archived on the site for those unable to listen in real
time.
Members of the media are invited to listen to the conference call and then
participate in a media-only question and answer session with Geoff Chatas
starting at 11 a.m. ET. To participate in this session, please dial
719-457-2602, confirmation code 4170487.
Progress Energy (NYSE: PGN), headquartered in Raleigh, N.C., is a Fortune 250
diversified energy company with more than 24,000 megawatts of generation
capacity and $9 billion in annual revenues. The company's holdings include two
electric utilities serving more than 2.9 million customers in North Carolina,
South Carolina and Florida. Progress Energy also includes nonregulated
operations covering generation, energy marketing, natural gas production, fuel
extraction and broadband capacity. For more information about Progress Energy,
visit the company's Web site at www.progress-energy.com.
This document contains forward-looking statements within the meaning of the safe
harbor provisions of the Private Securities Litigation Reform Act of 1995. The
forward-looking statements involve estimates, projections, goals, forecasts,
assumptions, risk and uncertainties that could cause actual results or outcomes
to differ materially from those expressed in the forward-looking statements. Any
forward-looking statement speaks only as of the date such statement is made, and
we undertake no obligation to update any forward-looking statement or statements
to reflect events or circumstances after the date on which such statement is
made. Examples of factors that you should consider with respect to any
forward-looking statements made in this document include, but are not limited
to, the following: the impact of fluid and complex government laws and
regulations, including those relating to the environment; deregulation or
restructuring in the electric industry that may result in increased competition
and unrecovered (stranded) costs; the uncertainty regarding the timing, creation
and structure of regional transmission organizations; weather conditions that
8
directly influence the demand for electricity; our ability to recover through
the regulatory process, and the timing of such recovery of, the costs associated
with the four hurricanes that impacted our service territory in 2004 or other
future significant weather events; recurring seasonal fluctuations in demand for
electricity; fluctuations in the price of energy commodities and purchased
power; economic fluctuations and the corresponding impact on our commercial and
industrial customers; the ability of our subsidiaries to pay upstream dividends
or distributions to us; the impact on our facilities and the businesses from a
terrorist attack; the inherent risks associated with the operation of nuclear
facilities, including environmental, health, regulatory and financial risks; the
ability to successfully access capital markets on favorable terms; our ability
to maintain our current credit ratings and the impact on our financial condition
and ability to meet cash and other financial obligations in the event our credit
ratings are downgraded below investment grade; the impact that increases in
leverage may have on us; the impact of derivative contracts used in the normal
course of business by us; investment performance of pension and benefit plans;
our ability to control costs, including pension and benefit expense, and achieve
its cost management targets for 2007; the availability and use of Internal
Revenue Code Section 29 (Section 29) tax credits by synthetic fuel producers and
our continued ability to use Section 29 tax credits related to our coal and
synthetic fuel businesses; the impact to our financial condition and performance
in the event it is determined we are not entitled to previously taken Section 29
tax credits; the impact of proposed accounting pronouncements regarding
uncertain tax positions; the outcome of Progress Energy Florida's rate
proceeding in 2005 regarding its future base rates; our ability to manage the
risks involved with the operation of our nonregulated plants, including
dependence on third parties and related counter-party risks, and a lack of
operating history; our ability to manage the risks associated with our energy
marketing operations; the outcome of any ongoing or future litigation or similar
disputes and the impact of any such outcome or related settlements; and
unanticipated changes in operating expenses and capital expenditures. Many of
these risks similarly impact our subsidiaries.
These and other risk factors are detailed from time to time in our SEC reports.
All such factors are difficult to predict, contain uncertainties that may
materially affect actual results, and may be beyond our ability to control or
estimate precisely. New factors emerge from time to time, and it is not possible
for management to predict all such factors or to assess the effect each such
factor will have on us.
# # #
Contacts:
Investor Relations, Bob Drennan, 919-546-7474
Corporate Communications, Garrick Francis, 919-546-6189, or toll-free
877-641-NEWS (6397)
9
PROGRESS ENERGY, INC.
CONSOLIDATED INTERIM FINANCIAL STATEMENTS
June 30, 2005
UNAUDITED CONSOLIDATED STATEMENTS of INCOME
Three months ended Six months ended
June 30 June 30
- -----------------------------------------------------------------------------------------------------------
(in millions except per share data) 2005 2004 2005 2004
- -----------------------------------------------------------------------------------------------------------
Operating revenues
Utility $ 1,768 $ 1,721 $ 3,551 $ 3,406
Diversified business 565 402 980 723
- -----------------------------------------------------------------------------------------------------------
Total operating revenues 2,333 2,123 4,531 4,129
- -----------------------------------------------------------------------------------------------------------
Operating expenses
Utility
Fuel used in electric generation 529 468 1,079 961
Purchased power 217 219 415 402
Operation and maintenance 543 372 949 735
Depreciation and amortization 207 207 415 409
Taxes other than income 108 109 225 214
Diversified business
Cost of sales 539 388 934 699
Depreciation and amortization 43 42 82 83
Other 31 31 63 61
- -----------------------------------------------------------------------------------------------------------
Total operating expenses 2,217 1,836 4,162 3,564
- -----------------------------------------------------------------------------------------------------------
Operating income 116 287 369 565
- -----------------------------------------------------------------------------------------------------------
Other income (expense)
Interest income 4 4 8 6
Other, net 19 (3) 21 (25)
- -----------------------------------------------------------------------------------------------------------
Total other income (expense) 23 1 29 (19)
- -----------------------------------------------------------------------------------------------------------
Interest charges
Net interest charges 168 157 334 318
Allowance for borrowed funds used during construction (4) (2) (7) (3)
- -----------------------------------------------------------------------------------------------------------
Total interest charges, net 164 155 327 315
- -----------------------------------------------------------------------------------------------------------
(Loss) income from continuing operations before income tax and
minority interest (25) 133 71 231
Income tax benefit 22 12 23 14
- -----------------------------------------------------------------------------------------------------------
(Loss) income from continuing operations before minority (3) 145 94 245
interest
Minority interest in subsidiaries' loss, net of tax 9 1 17 -
- -----------------------------------------------------------------------------------------------------------
Income from continuing operations 6 146 111 245
Discontinued operations, net of tax (7) 8 (19) 17
- -----------------------------------------------------------------------------------------------------------
Net (loss) income $ (1) $ 154 $ 92 $ 262
- -----------------------------------------------------------------------------------------------------------
Average common shares outstanding 246 242 245 242
- -----------------------------------------------------------------------------------------------------------
Basic earnings per common share
Income from continuing operations $ 0.02 $ 0.60 $ 0.45 $ 1.01
Discontinued operations, net of tax (0.03) 0.03 (0.08) 0.07
Net (loss) income $ (0.01) $ 0.63 $ 0.37 $ 1.08
- -----------------------------------------------------------------------------------------------------------
Diluted earnings per common share
Income from continuing operations $ 0.02 $ 0.60 $ 0.45 $ 1.01
Discontinued operations, net of tax (0.03) 0.03 (0.08) 0.07
Net (loss) income $ (0.01) $ 0.63 $ 0.37 $ 1.08
- -----------------------------------------------------------------------------------------------------------
Dividends declared per common share $ 0.590 $ 0.575 $ 1.180 $ 1.120
- -----------------------------------------------------------------------------------------------------------
This financial information should be read in conjunction with the Company's
Annual Report to shareholders. These statements have been prepared for the
purpose of providing information concerning the Company and not in connection
with any sale, offer for sale, or solicitation of an offer to buy any
securities.
PROGRESS ENERGY, INC.
UNAUDITED CONSOLIDATED BALANCE SHEETS
(in millions) June 30 December 31
ASSETS 2005 2004
- --------------------------------------------------------------------------------------------------------
Utility plant
Utility plant in service $ 22,320 $ 22,103
Accumulated depreciation (9,341) (8,783)
- --------------------------------------------------------------------------------------------------------
Utility plant in service, net 12,979 13,320
Held for future use 6 13
Construction work in process 1,001 799
Nuclear fuel, net of amortization 230 231
- --------------------------------------------------------------------------------------------------------
Total utility plant, net 14,216 14,363
- --------------------------------------------------------------------------------------------------------
Current Assets
Cash and cash equivalents 141 56
Short-term investments 40 82
Receivables, net 995 911
Inventory 801 805
Deferred fuel cost 231 229
Deferred income taxes 100 114
Assets of discontinued operations - 577
Prepayments and other current assets 235 174
- --------------------------------------------------------------------------------------------------------
Total current assets 2,543 2,948
- --------------------------------------------------------------------------------------------------------
Deferred debits and other assets
Regulatory assets 1,001 1,064
Nuclear decommissioning trust funds 1,081 1,044
Diversified business property, net 1,917 1,838
Miscellaneous other property and investments 502 444
Goodwill 3,719 3,719
Intangibles, net 321 337
Other assets and deferred debits 346 262
- --------------------------------------------------------------------------------------------------------
Total deferred debits and other assets 8,887 8,708
- --------------------------------------------------------------------------------------------------------
Total assets $ 25,646 $ 26,019
- --------------------------------------------------------------------------------------------------------
CAPITALIZATION AND LIABILITIES
- --------------------------------------------------------------------------------------------------------
Common stock equity
Common stock without par value, 500 million shares authorized,
251 and 247 million shares issued and outstanding, respectively $ 5,540 $ 5,360
Unearned restricted shares (16) (13)
Unearned ESOP shares (63) (76)
Accumulated other comprehensive loss (113) (164)
Retained earnings 2,327 2,526
- --------------------------------------------------------------------------------------------------------
Total common stock equity 7,675 7,633
- --------------------------------------------------------------------------------------------------------
Preferred stock of subsidiaries - not subject to mandatory redemption 93 93
Minority interest 41 36
Long-term debt, affiliate 270 270
Long-term debt, net 9,041 9,251
- --------------------------------------------------------------------------------------------------------
Total capitalization 17,120 17,283
- --------------------------------------------------------------------------------------------------------
Current Liabilities
Current portion of long-term debt 848 349
Accounts payable and accrued liabilities 576 630
Interest accrued 221 219
Dividends declared 147 145
Short-term obligations 403 684
Customer deposits 189 180
Liabilities of discontinued operations - 152
Other current liabilities 666 703
- --------------------------------------------------------------------------------------------------------
Total current liabilities 3,050 3,062
- --------------------------------------------------------------------------------------------------------
Deferred credits and other liabilities
Noncurrent income tax liabilities 532 625
Accumulated deferred investment tax credits 170 176
Regulatory liabilities 2,451 2,654
Asset retirement obligations 1,229 1,282
Other liabilities and deferred credits 1,094 937
- --------------------------------------------------------------------------------------------------------
Total deferred credits and other liabilities 5,476 5,674
- --------------------------------------------------------------------------------------------------------
Commitments and contingencies
- --------------------------------------------------------------------------------------------------------
Total capitalization and liabilities $ 25,646 $ 26,019
- --------------------------------------------------------------------------------------------------------
PROGRESS ENERGY, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
- ------------------------------------------------------------------------------------------------------
(in millions)
Six months ended June 30, 2005 2004
- ------------------------------------------------------------------------------------------------------
Operating activities
Net income $ 92 $ 262
Adjustments to reconcile net income to net cash provided by operating
activities:
Discontinued operations, net of tax 19 (17)
Charges for voluntary enhanced retirement program 158 -
Depreciation and amortization 556 549
Deferred income taxes (132) (203)
Investment tax credit (6) (6)
Tax levelization 63 43
Deferred fuel cost - 13
Other adjustments to net income 61 27
Cash provided (used) by changes in operating assets and liabilities:
Receivables (60) (138)
Inventory (90) (2)
Prepayments and other current assets (27) (18)
Accounts payable 76 72
Other current liabilities (68) 230
Regulatory assets and liabilities (59) 10
Other (3) 80
- ------------------------------------------------------------------------------------------------------
Net cash provided by operating activities 580 902
- ------------------------------------------------------------------------------------------------------
Investing activities
Gross utility property additions (539) (473)
Diversified business property additions (130) (93)
Nuclear fuel additions (67) (47)
Proceeds from sales of subsidiaries and other investments, net of cash 436 94
divested
Purchases of short-term investments (2,804) (651)
Proceeds from sales of short-term investments 2,846 853
Other (41) (37)
- ------------------------------------------------------------------------------------------------------
Net cash used in investing activities (299) (354)
- ------------------------------------------------------------------------------------------------------
Financing activities
Issuance of common stock 171 59
Issuance of long-term debt 792 1
Net (decrease) increase in short-term indebtedness (281) 624
Retirement of long-term debt (517) (865)
Dividends paid on common stock (289) (278)
Other (42) (61)
- ------------------------------------------------------------------------------------------------------
Net cash used in financing activities (166) (520)
- ------------------------------------------------------------------------------------------------------
Cash used by discontinued operations:
Operating activities (26) (4)
Investing activities (4) (8)
Financing activities - -
Net increase in cash and cash equivalents 85 16
Cash and cash equivalents at beginning of period 56 35
- ------------------------------------------------------------------------------------------------------
Cash and cash equivalents at end of the period $ 141 $ 51
- ------------------------------------------------------------------------------------------------------
Progress Energy, Inc.
SUPPLEMENTAL DATA Page S-1
Unaudited
Progress Energy, Inc.
Earnings Variances
Second Quarter 2005 vs. 2004
Regulated Utilities
-------------------
Fuels,
excluding Corporate and
synthetic Other Core
($ per share) Carolinas Florida fuels CCO Businesses Business Synthetic fuels Consolidated
- -------------------------------------------------------------------------------------------------------------------------------
2004 GAAP earnings 0.40 0.34 0.07 0.02 (0.35) 0.48 0.15 0.63
Intraperiod tax allocation 0.02 0.02 A 0.02
CVO mark-to-market 0.02 0.02 B 0.02
Rail discontinued operations (0.03) (0.03) C (0.03)
SRS Litigation Settlement 0.12 0.12 D 0.12
- -------------------------------------------------------------------------------------------------------------------------------
2004 ongoing earnings 0.40 0.34 0.07 0.02 (0.22) 0.61 0.15 0.76
- -------------------------------------------------------------------------------------------------------------------------------
Weather - retail (0.07) (0.01) (0.08) (0.08)
Other retail - growth and usage 0.02 (0.02) 0.00 0.00
Wholesale 0.01 0.01 0.02 F 0.02
Retail revenue sharing - 0.01 0.01 0.01
Other margin 0.01 0.01 0.02 G 0.02
O&M 0.03 (0.09) (0.06) H (0.06)
Utility depreciation and amortization(0.01) - (0.01) I (0.01)
Other 0.03 0.06 0.09 J 0.09
Interest charges (0.01) (0.01) (0.02) K (0.02)
Net diversified business (0.01) (0.03) 0.01 (0.03) L (0.06) M (0.09)
Share dilution (0.01) (0.01) (0.01)
- -------------------------------------------------------------------------------------------------------------------------------
2005 ongoing earnings 0.40 0.30 0.06 (0.01) (0.21) 0.54 0.09 0.63
- -------------------------------------------------------------------------------------------------------------------------------
Intraperiod tax allocation (0.01) (0.03) (0.21) (0.25) A (0.25)
CVO mark-to-market - - -
Rail discontinued operations (0.03) (0.03) C (0.03)
Postretirement and severance charges (0.11) (0.23) (0.01) - (0.01) (0.36) E (0.36)
- -------------------------------------------------------------------------------------------------------------------------------
2005 GAAP earnings 0.28 0.04 0.05 (0.01) (0.46) (0.10) 0.09 (0.01)
- -------------------------------------------------------------------------------------------------------------------------------
Corporate and Other Businesses includes Progress Telecom, Progress Rail, other
small subsidiaries, Holding Company interest expense, CVO mark-to-market,
intraperiod tax allocations, purchase accounting transactions and corporate
eliminations.
A - Intraperiod income tax allocation impact, related to cyclical nature of
energy demand/earnings and timing of synthetic fuel tax credits.
B - Impact of change in market value of outstanding CVOs.
C - Sale of Progress Rail to One Equity Partnership LLC which was finalized
on March 24, 2005.
D - Impact of SRS litigation settlement reached in civil proceedings
announced June 30, 2004.
E - Postretirement and severance costs recorded in the second quarter 2005
associated with the previously announced cost management initiative and
voluntary enhanced retirement program.
F - Carolinas - primarily due to increased capacity under contract in current
year.
Florida - increased primarily due to new contracts effective June 2004 and
January 2005.
G - Carolinas - Other margin increased due to higher fuel costs increasing
the recoverable portion of the fixed price cogeneration contract costs as
well as reduced generation at cogeneration facilities in the current year.
Florida - Other margin increased primarily due to higher lighting revenues
and higher transmission and wheeling revenues.
H - Carolinas - O&M decreased primarily due to lower business unit spending
due to one additional planned nuclear outage in 2004 offset by the impact
of the change in accounting estimates for certain Energy Delivery capital
costs, planned fossil plant outages and the employee lump-sum out-of-base
salary increase.
Florida - O&M increased primarily due to the $17M (pre-tax) write-off of
major storm restoration costs as a result of the FPSC's storm cost recovery
ruling, the impact of the change in accounting estimates for certain Energy
Delivery capital costs and the employee lump-sum out-of-base salary
increase.
I - Carolinas - Depreciation & amortization increased due to higher Clean Air
amortization, partially offset by decreased depreciation on plant &
equipment primarily related to the license extensions of the nuclear
plants.
J - Carolinas - Other income increased due to the write-off of a regulatory
liability related to income taxes refundable through future rates and the
favorable impact of lower taxes due to lower pre-tax earnings.
Florida - Other income increased due to the $25M (pre-tax) gain on the sale
of the City of Winter Park, FL distribution system and AFUDC equity
associated with construction of Hines 3 and Hines 4.
K - Carolinas - Increased interest charges on variable rate pollution control
bonds in 2005. Florida - Higher interest rates on commercial paper and
higher balances.
L - CCO - decreased primarily due to lower margins as a result of the
expiration of certain tolling agreements and lower at-market sales,
partially offset by increased earnings from the new full-requirements
contracts and increased load on an existing contract.
M - Synthetic Fuels - Decreased primarily due to lower sales and higher
production costs.
S-1
Progress Energy, Inc.
SUPPLEMENTAL DATA Page S-2
Unaudited
Progress Energy, Inc.
Earnings Variances
Year-to-Date 2005 vs. 2004
Regulated Utilities
-------------------
Fuels,
excluding Corporate and
synthetic Other Core
($ per share) Carolinas Florida fuels CCO Businesss Business Synthetic fuels Consolidated
- ------------------------------------------------------------------------------------------------------------------------------
2004 GAAP earnings 0.88 0.55 0.11 (0.01) (0.75) 0.78 0.30 1.08
Intraperiod tax allocation 0.18 0.18 A 0.18
CVO mark-to-market 0.05 0.05 B 0.05
Rail discontinued operations (0.07) (0.07) C (0.07)
SRS Litigation Settlement 0.12 0.12 D 0.12
- ------------------------------------------------------------------------------------------------------------------------------
2004 ongoing earnings 0.88 0.55 0.11 (0.01) (0.47) 1.06 0.30 1.36
- ------------------------------------------------------------------------------------------------------------------------------
Weather - retail (0.12) (0.02) (0.14) (0.14)
Other retail - growth and usage 0.06 - 0.06 0.06
Wholesale 0.01 0.03 0.04 F 0.04
Retail revenue sharing - 0.02 0.02 0.02
Other margin 0.03 - 0.03 G 0.03
O&M 0.03 (0.11) (0.08) H (0.08)
Utility depreciation and amortization(0.01) - (0.01) I (0.01)
Other 0.05 0.07 0.12 J 0.12
Interest charges (0.01) (0.02) (0.01) 0.01 (0.03) K (0.03)
Net diversified business 0.01 (0.03) 0.02 - L (0.21) M (0.21)
Share dilution (0.01) (0.01) (0.02) (0.02)
- ------------------------------------------------------------------------------------------------------------------------------
2005 ongoing earnings 0.91 0.51 0.11 (0.03) (0.45) 1.05 0.09 1.14
- ------------------------------------------------------------------------------------------------------------------------------
Intraperiod tax allocation (0.01) (0.03) (0.22) (0.26) A (0.26)
CVO mark-to-market - - -
Rail discontinued operations (0.08) (0.08) C (0.08)
Postretirement and severance charges (0.15) (0.26) (0.01) - (0.01) (0.43) E (0.43)
- ------------------------------------------------------------------------------------------------------------------------------
2005 GAAP earnings 0.75 0.22 0.10 (0.03) (0.76) 0.28 0.09 0.37
- ------------------------------------------------------------------------------------------------------------------------------
Corporate and Other Businesses includes Progress Telecom, Progress Rail, other
small subsidiaries, Holding Company interest expense, CVO mark-to-market,
intraperiod tax allocations, purchase accounting transactions and corporate
eliminations.
A - Intraperiod income tax allocation impact, related to cyclical nature of
energy demand/earnings and timing of synthetic fuel tax credits.
B - Impact of change in market value of outstanding CVOs.
C - Sale of Progress Rail to One Equity Partnership LLC which was finalized
on March 24, 2005.
D - Impact of SRS litigation settlement reached in civil proceedings
announced June 30, 2004.
E - Postretirement and severance costs recorded in the first half of 2005
associated with the previously announced cost management initiative and
voluntary enhanced retirement program.
F - Carolinas - primarily due to increased capacity under contract in current
year.
Florida - increased primarily due to new contracts effective June 2004 and
January 2005.
G - Carolinas - Other margin increased due to higher fuel costs increasing
the recoverable portion of the fixed price cogeneration contract costs as
well as reduced generation at cogeneration facilities in the current year
H - Carolinas - O&M decreased primarily due to lower business unit spending
due to an additional planned nuclear outage in 2004 and the impact of storm
costs in 2004 offset by the impact of the change in accounting estimates
for certain Energy Delivery capital costs and additional business unit
spending due to planned fossil plant outages in 2005.
Florida - O&M increased primarily due to the change in accounting estimates
for certain Energy Delivery capital costs, the $17M (pre-tax) write-off of
major storm restoration costs as a result of the FPSC's storm cost recovery
ruling and an increase in the workers' compensation accrual.
I - Carolinas - Depreciation & amortization increased due to higher Clean Air
amortization, offset by decreased depreciation on plant & equipment
primarily related to the license extensions of the nuclear plants.
J - Carolinas - Other income increased due to write-off of a regulatory
liability related to income taxes refundable through future rates and
favorable income tax adjustments related to SC audit assessment and
affordable housing credits. Additionally, 2004 included costs associated
with the write-off of non-trade receivables.
Florida - Other income increased due to the $25M (pre-tax) gain on the sale
of the City of Winter Park, FL distribution system and AFUDC equity
associated with construction of Hines 3 and Hines 4.
K - Carolinas - Increased interest charges on variable rate pollution control
bonds and commercial paper in 2005.
Florida - Higher interest rates on commercial paper and higher balances.
Fuels - Interest expense associated with gas operations is no longer being
capitalized.
CCO - Decreased interest expense due to termination of the variable rate
project financing in December 2004.
L - Fuels - Increased due to increased coal and gas prices, partially offset
by the sale of the North Texas Gas operations, the waterborne coal
transportation rate settlement in 2004 and increased mining costs.
CCO - decreased primarily due to lower margins as a result of the
expiration of certain tolling agreements and lower market sales, partially
offset by increased earnings from the new full-requirements contracts and
increased load on an existing contract.
Corporate and Other Businesses - increased primarily due to increased
earnings at Progress Telecom.
M - Synthetic Fuels - Decreased due to lower sales, forfeited tax credits
from the sale of Progress Rail and higher production costs.
S-2
Progress Energy, Inc.
SUPPLEMENTAL DATA Page S-3
Unaudited
- --------------------------------------------------------------------------------------------------------------------------
Three Months Ended Three Months Ended Percentage Change
June 30, 2005 June 30, 2004 From June 30, 2004
- --------------------------------------------------------------------------------------------------------------------------
Total Total
Utility Statistics Carolinas Florida Progress Carolinas Florida Progress Carolinas Florida
- --------------------------------------------------------------------------------------------------------------------------
Operating Revenues (in millions)
Retail
Residential $272 $431 $703 $284 $422 $706 (4.2)% 2.1 %
Commercial 214 227 441 213 214 427 0.5 6.1
Industrial 164 71 235 161 66 227 1.9 7.6
Other retail 18 57 75 19 52 71 (5.3) 9.6
Provision for retail revenue sharing - 2 2 - (3) (3) - -
- --------------------------------------------------------------------------------------------------------------------------
Total Retail $668 $788 $1,456 $677 $751 $1,428 (1.3) 4.9
Unbilled 15 18 33 24 24 48 - -
Wholesale 154 68 222 139 53 192 10.8 28.3
Miscellaneous revenue 23 34 57 21 32 53 9.5 6.3
- --------------------------------------------------------------------------------------------------------------------------
Total Electric $860 $908 $1,768 $861 $860 $1,721 (0.1)% 5.6 %
- --------------------------------------------------------------------------------------------------------------------------
Energy Sales (millions of kWh)
Retail
Residential 3,285 4,341 7,626 3,525 4,505 8,030 (6.8)% (3.6) %
Commercial 3,087 2,888 5,975 3,172 2,941 6,113 (2.7) (1.8)
Industrial 3,230 1,040 4,270 3,280 1,051 4,331 (1.5) (1.0)
Other retail 314 762 1,076 337 751 1,088 (6.8) 1.5
- --------------------------------------------------------------------------------------------------------------------------
Total Retail 9,916 9,031 18,947 10,314 9,248 19,562 (3.9) (2.3)
Unbilled 235 428 663 404 790 1,194 - -
Wholesale 3,341 1,318 4,659 3,114 1,093 4,207 7.3 20.6
- --------------------------------------------------------------------------------------------------------------------------
Total Electric 13,492 10,777 24,269 13,832 11,131 24,963 (2.5)% (3.2) %
- --------------------------------------------------------------------------------------------------------------------------
Energy Supply (millions of kWh)
Generated - steam 6,388 5,328 11,716 7,178 5,656 12,834
nuclear 6,084 1,614 7,698 5,411 1,708 7,119
hydro 213 - 213 156 - 156
combustion turbines/
combined cycle 359 2,134 2,493 576 2,139 2,715
Purchased 1,045 2,381 3,426 1,042 2,322 3,364
- --------------------------------------------------------------------------------------------------------------------------
Total Energy Supply 14,089 11,457 25,546 14,363 11,825 26,188
(Company Share)
- --------------------------------------------------------------------------------------------------------------------------
Impact of Weather to Normal on
Retail Sales
Heating Degree Days - Actual 277 12 211 21 31.3 % (42.9) %
- Normal 237 13 236 13
Cooling Degree Days - Actual 411 1,019 647 1,090 (36.5) % (6.5) %
- Normal 543 1,144 531 1,144
Impact of retail weather to normal
on EPS ($0.04) ($0.02) ($0.06) $0.03 ($0.01) $0.02
- --------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------
Six Months Ended Six Months Ended Percentage Change
June 30, 2005 June 30, 2004 From June 30, 2004
- --------------------------------------------------------------------------------------------------------------------------
Total Total
Utility Statistics Carolinas Florida Progress Carolinas Florida Progress Carolinas Florida
- --------------------------------------------------------------------------------------------------------------------------
Operating Revenues (in millions)
Retail
Residential $646 $861 $1,507 $655 $824 $1,479 (1.4) % 4.5 %
Commercial 428 428 856 420 395 815 1.9 8.4
Industrial 313 134 447 308 128 436 1.6 4.7
Other retail 38 110 148 38 99 137 - 11.1
Provision for retail revenue sharing - - - - (7) (7) - -
- --------------------------------------------------------------------------------------------------------------------------
Total Retail $1,425 $1,533 $2,958 $1,421 $1,439 $2,860 0.3 6.5
Unbilled (3) 13 10 1 18 19 - -
Wholesale 328 142 470 295 120 415 11.2 18.3
Miscellaneous revenue 45 68 113 45 67 112 - 1.5
- --------------------------------------------------------------------------------------------------------------------------
Total Electric $1,795 $1,756 $3,551 $1,762 $1,644 $3,406 1.9 % 6.8 %
- --------------------------------------------------------------------------------------------------------------------------
Energy Sales (millions of kWh)
Retail
Residential 7,957 8,688 16,645 8,266 8,797 17,063 (3.7) % (1.2) %
Commercial 6,167 5,459 11,626 6,230 5,431 11,661 (1.0) 0.5
Industrial 6,161 1,981 8,142 6,273 2,074 8,347 (1.8) (4.5)
Other retail 642 1,471 2,113 682 1,423 2,105 (5.9) 3.4
- --------------------------------------------------------------------------------------------------------------------------
Total Retail 20,927 17,599 38,526 21,451 17,725 39,176 (2.4) (0.7)
Unbilled (67) 160 93 20 655 675 - -
Wholesale 7,278 2,655 9,933 6,904 2,415 9,319 5.4 9.9
- --------------------------------------------------------------------------------------------------------------------------
Total Electric 28,138 20,414 48,552 28,375 20,795 49,170 (0.8) % (1.8) %
- --------------------------------------------------------------------------------------------------------------------------
Energy Supply (millions of kWh)
Generated - steam 13,813 10,096 23,909 15,127 10,688 25,815
nuclear 12,076 3,322 15,398 11,345 3,366 14,711
hydro 439 - 439 364 - 364
combustion turbines/
combined cycle 890 3,866 4,756 899 3,534 4,433
Purchased 2,105 4,587 6,692 1,804 4,493 6,297
- --------------------------------------------------------------------------------------------------------------------------
Total Energy Supply 29,323 21,871 51,194 29,539 22,081 51,620
(Company Share)
- --------------------------------------------------------------------------------------------------------------------------
Impact of Weather to Normal on
Retail Sales
Heating Degree Days - Actual 1,969 316 2,056 385 (4.2) % (17.9) %
- Normal 1,903 385 1,892 385
Cooling Degree Days - Actual 416 1,059 657 1,090 (36.7) % (2.8) %
- Normal 554 1,172 544 1,172
Impact of retail weather to normal
on EPS ($0.03) ($0.03) ($0.06) $0.08 ($0.01) $0.07
- --------------------------------------------------------------------------------------------------------------------------
S-3
Progress Energy, Inc.
SUPPLEMENTAL DATA Page S-4
Unaudited
- --------------------------------------------------------------------------------
Financial Statistics June 30
2005 2004
- --------------------------------------------------------------------------------
Return on average common stock equity (12 months ended) 7.7 % 9.1 %
Book value per common share $30.99 $30.92
Capitalization
Common stock equity 41.8 % 41.2 %
Preferred stock of subsidiary- redemption not required 0.7 0.7
Total debt 57.5 58.1
- --------------------------------------------------------------------------------
Total Capitalization 100.0 % 100.0 %
- --------------------------------------------------------------------------------
Progress Energy, Inc.
2005 Impact of Postretirement and Severance Charges
- -----------------------------------------------------------------------------------
($ in millions) Three months ended Six months ended
June 30, 2005 Impact June 30, 2005 Impact
Line of Business Pre-tax After-tax Pre-tax After-tax
- -----------------------------------------------------------------------------------
Progress Energy Carolinas 46.2 27.7 60.3 36.2
Progress Energy Florida 93.6 56.2 107 64.2
Fuels 4.4 2.6 5.8 3.5
Competitive Commercial Operations 1 0.6 1.9 1.1
Corporate and Other 0 -0.04 0.8 0.5
- -----------------------------------------------------------------------------------
Total* 145.2 87.1 175.8 105.5
- -----------------------------------------------------------------------------------
*Totals may not foot due to rounding
S-4