SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1996
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from to
Commission File Number 1-8180
TECO ENERGY, INC.
(Exact name of registrant as specified in its charter)
FLORIDA 59-2052286
(State or other jurisdiction (IRS Employer
incorporation or organization) Identification No.)
702 North Franklin Street, Tampa, Florida 33602
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (813) 228-4111
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding 12 months (or for such shorter period
that the registrant was required to file such reports), and (2) has been
subject to such filing requirements for the past 90 days.
Yes X No
Number of shares outstanding of each of the issuer's classes of common
stock, as of the latest practicable date (April 30, 1996):
Common Stock, $1 Par Value 117,101,052<PAGE>
FORM 10-Q
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
In the opinion of management, the unaudited consolidated
financial statements include all adjustments (none of which were
other than normal and recurring) necessary to present fairly the
results for the three-month periods ended March 31, 1996 and 1995.
Reference should be made to the explanatory notes affecting the
income and balance sheet accounts contained in TECO Energy, Inc.'s
Annual Report on Form 10-K for the year ended Dec. 31, 1995 and to
the notes on page 6 of this report.
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FORM 10-Q
CONSOLIDATED BALANCE SHEETS
(in thousands)
March 31, Dec. 31,
1996 1995
Assets
Current assets
Cash and cash equivalents $ 13,748 $ 10,259
Short-term investments 32,761 32,176
Receivables, less allowance
for uncollectibles 161,081 163,536
Inventories, at average cost
Fuel 60,274 76,737
Materials and supplies 51,718 48,984
Prepayments 7,982 9,574
327,564 341,266
Property, plant and equipment,
at original cost
Utility plant in service 3,207,348 3,174,526
Construction work in progress 498,870 479,586
Other property 839,594 836,411
4,545,812 4,490,523
Accumulated depreciation (1,651,916) (1,616,231)
2,893,896 2,874,292
Other assets
Other investments 84,823 86,277
Deferred income taxes 70,422 65,906
Deferred charges and other assets 105,745 105,626
260,990 257,809
$3,482,450 $3,473,367
Liabilities and Capital
Current liabilities
Long-term debt due within one year $ 31,618 $ 31,327
Notes payable 337,680 361,340
Accounts payable 98,803 146,313
Customer deposits 52,147 51,273
Interest accrued 23,994 13,297
Taxes accrued 40,218 11,731
584,460 615,281
Deferred income taxes 394,673 396,624
Investment tax credits 60,056 61,347
Regulatory liability-tax related 43,984 47,558
Other deferred credits 164,655 136,092
Long-term debt, less amount due
within one year 995,802 994,856
Preferred stock of Tampa Electric 54,956 54,956
Common equity
Common equity - 400 million shares
authorized, $1 par value - issued and
outstanding 116,975,525 in 1996 and
116,731,681 in 1995 1,257,026 1,240,887
Unearned compensation related to ESOP (73,162) (74,234)
$3,482,450 $3,473,367
The accompanying notes are an integral part of the consolidated financial
statements.
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FORM 10-Q
CONSOLIDATED STATEMENTS OF INCOME
(in thousands)
For the three months ended March 31, 1996 1995
Revenues $341,141 $319,134
Expenses
Operation 177,070 155,421
Maintenance 20,903 23,934
Depreciation 44,963 44,597
Taxes, other than income 30,056 29,135
272,992 253,087
Income from operations 68,149 66,047
Other income
Allowance for other funds used
during construction 5,019 1,799
Other income, net 1,410 192
Preferred dividend requirements of
Tampa Electric (892) (892)
5,537 1,099
Income before interest and income taxes 73,686 67,146
Interest charges
Interest expense 22,670 21,685
Allowance for borrowed funds used during
construction (2,051) (1,084)
20,619 20,601
Income before provision for income taxes 53,067 46,545
Provision for income taxes 11,558 10,041
Net income $ 41,509 $ 36,504
Average shares outstanding 116,889 116,266
Earnings per average common share
outstanding $ 0.36 $ 0.31
Dividends per common share outstanding $ 0.265 $ 0.2525
The accompanying notes are an integral part of the consolidated financial
statements.
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FORM 10-Q
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
For the three months ended March 31, 1996 1995
Cash flows from operating activities
Net income $ 41,509 $ 36,504
Adjustments to reconcile net income
to net cash:
Depreciation 44,963 44,597
Deferred income taxes (10,883) (3,229)
Investment tax credits, net (1,309) (1,334)
Allowance for funds used
during construction (7,070) (2,883)
Amortization of unearned compensation
related to ESOP 1,072 1,232
Revenue reduction 20,869 7,421
Deferred recovery clause 1,365 (5,857)
Amortization of coal contract buyout 676 --
Receivables, less allowance
for uncollectibles 2,455 15,493
Inventories 13,729 (7,169)
Taxes accrued 28,487 16,328
Interest accrued 10,697 5,730
Accounts payable (47,510) (34,619)
Other 8,582 2,607
107,632 74,821
Cash flows from investing activities
Capital expenditures (64,938) (102,113)
Allowance for funds used
during construction 7,070 2,883
Investment in short-term investments (585) 69,658
Other non-current investments 2,879 308
(55,574) (29,264)
Cash flows from financing activities
Common stock 4,888 2,725
Proceeds from long-term debt 3,058 620
Repayment of long-term debt (1,880) (2,486)
Net decrease in short-term debt (23,660) (40,985)
Dividends (30,975) (29,346)
(48,569) (69,472)
Net increase (decrease) in cash
and cash equivalents 3,489 (23,915)
Cash and cash equivalents
at beginning of period 10,259 35,797
Cash and cash equivalents at end of period $ 13,748 $ 11,882
The accompanying notes are an integral part of the consolidated financial
statements.
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FORM 10-Q
NOTES TO FINANCIAL STATEMENTS
A. TECO Energy, Inc. and its subsidiaries have made certain
commitments in connection with their continuing capital improvement
program and estimate that capital expenditures, excluding allowance
for funds used during construction (AFUDC), during 1996 will be as
follows:
millions
Tampa Electric Company $178
TECO Coalbed Methane, Inc. 3
TECO Coal Corporation 5
TECO Gas & Oil, Inc. 28
TECO Properties Corporation 1
TECO Transport & Trade Corporation 37
$252
B. During the first quarter of 1996, Tampa Electric recognized a
$21 million revenue reduction pursuant to a multi-year base rate
freeze, revenue deferral and refund plan which the Florida Public
Service Commission (FPSC) voted to approve in April 1996. Tampa
Electric deferred $7 million during the first quarter of last year
in accordance with a plan approved by the FPSC for 1995. The
revenue reductions totaling $70 million recorded under the plans in
1995 and 1996 are included in other deferred credits on the balance
sheet. See additional discussion on page 10.
C. On April 29, 1996, Tampa Electric retired $35 million aggregate
par value of 8.00% Series E and 7.44% Series F preferred stock at
redemption prices of $102.00 and $101.00 per share, respectively.
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FORM 10-Q
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations
Results of Operations
Three months ended March 31, 1996:
Net income of $41.5 million in the first quarter of 1996 was
$5.0 million or 14 percent higher than 1995's first quarter due
primarily to favorable gas prices at TECO Coalbed Methane and the
onset of operations at TECO Power Services independent power
project in Guatemala. In addition, Tampa Electric s capitalized
financing costs (AFUDC), primarily associated with the investment in
the Polk Power Station currently under construction, increased to
$7.1 million from $2.9 million for the same period last year.
Consolidated operating income was up 3 percent from 1995's
first quarter due to strong performances by TECO Coalbed Methane and
TECO Power Services which more than offset the decline in Tampa
Electric s operating income.
The following table identifies the unconsolidated revenues and
operating income of TECO Energy s significant operating groups.
Contributions by operating group (unconsolidated)
(thousands of dollars)
Revenues
1996 1995
Tampa Electric $254,746 $253,796
Diversified companies $132,533 $114,603
Operating income
1996 1995
Tampa Electric $ 43,468 $ 45,880
Diversified companies* $ 27,011 $ 21,599
* Operating income includes items which are reclassified for
consolidated financial statement purposes. The principal items are
the non-conventional fuels tax credit related to coalbed methane
production and interest expense of the non-recourse debt related to
independent power operations, both of which are included in
operating income for the diversified companies. In the Consolidated
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FORM 10-Q
Statements of Income, the tax credit is part of the provision for
income taxes and the interest is part of interest expense.
Tampa Electric's first-quarter operating income of
$43.5 million was 6 percent lower than in 1995. The 1996 results
were net of a $21-million revenue reduction which included $15-
million of a $25-million refund and a $6-million revenue deferral.
This reduction was in accordance with a FPSC-approved plan described
on page 10. Operating income last year was net of a $7-million
revenue deferral in accordance with 1995's FPSC-approved regulatory
plan.
Tampa Electric s revenues for the quarter increased slightly
due to higher energy sales. Retail energy sales increased
10 percent reflecting cooler than normal temperatures, customer
growth of more than 2 percent and a strong local economy. Energy
sales to other utilities were 13 percent higher than in 1995, driven
by lower coal prices at Gannon Station and weather.
Tampa Electric's total operating expenses for the first quarter
were 2 percent higher than in 1995. The increase was primarily due
to higher fuel expense resulting from higher energy sales, partially
offset by lower operation-other and maintenance expenses reflecting
aggressive cost management efforts.
Unconsolidated operating income from TECO Energy's diversified
companies increased 25 percent to $27.0 million on revenues of
$132.5 million.
Favorable gas prices improved TECO Coalbed Methane s operating
income, which increased over 1995 even though last year s results
included a $4.2-million gain from a gas contract termination
settlement.
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FORM 10-Q
The Alborada Power Station in Guatemala, which began commercial
operation in the third quarter of 1995, accounted for improved
results at TECO Power Services.
TECO Transport & Trade and TECO Coal continued to increase
third-party volumes even though operations were adversely affected
by winter weather.
Consolidated interest expense before the allowance for borrowed
funds used during construction was up 5 percent due to higher levels
of short-term debt, partially offset by lower short-term rates.
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FORM 10-Q
Liquidity, Capital Resources and Changes in Financial Condition
Tampa Electric recognized a $21-million revenue reduction
during the first quarter of 1996 pursuant to a multi-year base rate
freeze, revenue deferral and refund plan. The plan is an agreement
between Tampa Electric, the Office of Public Counsel and the Florida
Industrial Power Users Group which covers the years 1996 through
1998. A more complete description of the plan, which the FPSC voted
to approve on April 30, 1996, is contained in TECO Energy s Annual
Report on Form 10-K for the year ended Dec. 31, 1995.
TECO Gas & Oil s joint venture, which held 13 lease blocks in
the shallow gulf waters off Texas and Louisiana in 1995, has
successfully bid for nine additional blocks at the April 1996
federal auction.
Fuel inventory declined because of increased energy sales and
as a result of winter weather conditions which affected the
transportation of coal to Tampa Electric s facilities.
The increase in other deferred credits reflected the refund
accrual and revenue deferral at Tampa Electric related to the FPSC-
approved regulatory plan.
Taxes accrued increased primarily because of the timing of
federal income tax and property tax payments at Tampa Electric.
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FORM 10-Q
PART II. OTHER INFORMATION
Item 4. Submission of Matters to a Vote of Security Holders
At the Annual Meeting of Shareholders held on April 17,
1996, the shareholders of TECO Energy, Inc. elected six
directors and voted to approve the 1996 Equity Incentive Plan.
The votes were as follows:
Votes Cast Votes Cast Broker
For Against Abstentions Non-Votes
Election of Directors
DuBose Ausley 99,621,255 2,687,141
James L. Ferman, Jr. 100,359,010 1,949,386
Dennis R. Hendrix 100,529,197 1,779,199
Robert L. Ryan 100,539,317 1,769,079
William P. Sovey 100,456,573 1,851,823
James O. Welch, Jr. 100,456,636 1,851,760
1996 Equity
Incentive Plan 85,140,964 14,998,382 2,169,049 8,690,954
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
10.1 TECO Energy, Inc. 1996 Equity Incentive Plan.
11. Computation of earnings per common share.
27. Financial data schedule. (EDGAR filing only)
(b) Reports on Form 8-K
The registrant filed a Current Report on Form 8-K dated
January 4, 1996 reporting under Item 5. Other Events on a
proposed agency action by the Florida Public Service
Commission.
The registrant filed a Current Report on Form 8-K dated
February 13, 1996 reporting under Item 5. Other Events on
the protest of Florida Public Service Commission s proposed
agency action by the Office of Public Counsel and the Florida
Industrial Power Users Group.
The registrant filed a Current Report on Form 8-K dated March
25, 1996 reporting under Item 5. Other Events on the
agreement between Tampa Electric, the Office of Public Counsel
and the Florida Industrial Power Users Group on a multi-year
base rate freeze, revenue deferral and refund plan for Tampa
Electric.
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FORM 10-Q
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by
the undersigned thereunto duly authorized.
TECO ENERGY, INC.
(Registrant)
Date: May 14, 1996 By: /s/ A. D. Oak
A. D. Oak
Senior Vice President - Finance,
and Chief Financial Officer
(Principal Accounting Officer)
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FORM 10-Q
INDEX TO EXHIBITS
Exhibit No. Description of Exhibits Page No.
10.1 TECO Energy, Inc. 1996 Equity Incentive Plan 14
11. Computation of earnings per common share 20
27. Financial data schedule (EDGAR filing only) --
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Exhibit 10.1
TECO ENERGY, INC.
1996 EQUITY INCENTIVE PLAN
1. Purpose.
The purpose of the TECO Energy, Inc. 1996 Equity Incentive Plan (the
"Plan") is to attract and retain key employees of TECO Energy, Inc. (the
"Company") and its affiliates, to provide an incentive for them to achieve
long-range performance goals, and to enable them to participate in the long-
term growth of the Company by the granting of awards ("Awards") of, or based
on, the Company's common stock, $1.00 par value (the "Common Stock"). The
Plan is an amendment and restatement of the Company's 1990 Equity Incentive
Plan (the "1990 Plan"). No provision of the Plan will affect the rights and
privileges of holders of outstanding options under the 1990 Plan.
2. Administration.
The Plan will be administered by a committee of not less than three
members of the Board of Directors of the Company appointed by the Board to
administer the Plan (the "Committee"). Each member of the Committee will be a
"disinterested person" or the equivalent within the meaning of Rule 16b-3
under the Securities Exchange Act of 1934, as amended from time to time (the
"Exchange Act"), and an "outside director" within the meaning of Section 162
of the Internal Revenue Code of 1986, as amended from time to time (the
"Code"). The Committee will select those persons to receive Awards under the
Plan ("Participants") and will determine the terms and conditions of all
Awards. The Committee will have authority to adopt, alter and repeal such
administrative rules, guidelines and practices governing the operation of the
Plan as it from time to time considers advisable, and to interpret the
provisions of the Plan. The Committee's decisions will be final and binding.
To the extent permitted by applicable law, the Committee may delegate to one
or more executive officers of the Company the power to make Awards to
Participants who are not subject to Section 16 of the Exchange Act and all
determinations under the Plan with respect thereto, provided that the
Committee will fix the maximum amount of such Awards for all such Participants
and a maximum for any one Participant.
3. Eligibility.
All employees of the Company (or any business entity in which the
Company owns directly or indirectly 50% or more of the total voting power or
has a significant financial interest as determined by the Committee) capable
of contributing significantly to the successful performance of the Company,
other than an employee who has irrevocably elected not to be eligible, are
eligible to be Participants in the Plan.
4. Stock Available for Awards.
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Exhibit 10.1
(a) Amount. Subject to adjustment under subsection (b), Awards may be
made under the Plan for up to 3,750,000 shares of Common Stock, together with
all shares of Common Stock available for issue under the 1990 Plan on the
effective date of the Plan. If any Award (including any Award under the 1990
Plan) expires or is terminated unexercised or is forfeited or settled in a
manner that results in fewer shares outstanding than were awarded, the shares
subject to such Award, to the extent of such expiration, termination,
forfeiture or decrease, will again be available for award under the Plan.
Common Stock issued through the assumption or substitution of outstanding
grants from an acquired company will not reduce the shares available for
Awards under the Plan. Shares issued under the Plan may consist in whole or
in part of authorized but unissued shares or treasury shares.
(b) Adjustment. In the event that the Committee determines that any
stock dividend, extraordinary cash dividend, recapitalization, reorganization,
merger, consolidation, split-up, spin-off, combination, exchange of shares or
other change affects the Common Stock such that an adjustment is required in
order to preserve the benefits intended to be provided by the Plan, then the
Committee (subject in the case of incentive stock options to any limitation
required under the Code) will equitably adjust any or all of (i) the number
and kind of shares for which Awards may be made under the Plan, (ii) the
number and kind of shares subject to outstanding Awards and (iii) the exercise
price with respect to any of the foregoing. In making such adjustments, the
Committee may ignore fractional shares so that the number of shares subject to
any Award will be a whole number. If considered appropriate, the Committee
may make provision for a cash payment with respect to all or part of an
outstanding Award instead of or in addition to any such adjustment.
(c) Limit on Individual Grants. The maximum number of shares of
Common Stock subject to Stock Options and SARs that may be granted to any
Participant in the aggregate in any calendar year will not exceed 1,000,000
shares, subject to adjustment under subsection (b).
5. Types of Awards.
(a) Stock Grants. The Committee may make awards of shares of Common
Stock ("Stock Grants") upon such terms and conditions as the Committee
determines. Stock Grants may include without limitation restricted stock,
performance shares, performance-accelerated restricted stock and bonus stock.
Stock Grants may be issued for no cash consideration, such minimum
consideration as may be required by applicable law or such other consideration
as the Committee may determine.
(b) Stock Options. The Committee may grant options ("Stock Options")
to purchase shares of Common Stock at an exercise price determined by the
Committee of not less than 100% of the fair market value of the Common Stock
on the date of grant and upon such terms and conditions as the Committee
determines. Stock Options may include without limitation incentive stock
options, nonstatutory stock options, indexed stock options, performance-vested
stock options, performance-accelerated stock options and reload options. No
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Exhibit 10.1
incentive stock option may be granted under the Plan more than ten years after
the effective date of this restatement of the Plan. Payment of the exercise
price may be made in cash or, to the extent permitted by the Committee at or
after the grant of the Stock Option, in whole or in part by delivery of a
promissory note or shares of Common Stock owned by the optionee, including
Stock Grants, or by retaining shares otherwise issuable pursuant to the Stock
Option, in each case valued at fair market value on the date of delivery or
retention, or such other lawful consideration as the Committee may determine.
(c) Stock Equivalents. The Committee may grant rights to receive
payment from the Company based in whole or in part on the value of the Common
Stock ("Stock Equivalents") upon such terms and conditions as the Committee
determines. Stock Equivalents may include without limitation phantom stock,
performance units, dividend equivalents and stock appreciation rights
("SARs"). SARs granted in tandem with a Stock Option will terminate to the
extent that the related Stock Option is exercised, and the related Stock
Option will terminate to the extent that the tandem SARs are exercised. An
SAR will have an exercise price determined by the Committee of not less than
100% of the fair market value of the Common Stock on the date of grant, or of
not less than the exercise price of the related Stock Option in the case of an
SAR granted in tandem with a Stock Option. The Committee will determine at
the time of grant or thereafter whether Stock Equivalents are to be settled in
cash, Common Stock or other securities of the Company, other Awards or other
property.
6. General Provisions Applicable to Awards.
(a) Fair Market Value. The fair market value of the Common Stock or
any other property will be the fair market value of such property as
determined by the Committee in good faith or in the manner established by the
Committee from time to time.
(b) Reporting Person Limitations. Notwithstanding any other provision
of the Plan, to the extent required to qualify for the exemption provided by
Rule 16b-3 under the Exchange Act, Awards made to a person subject to
Section 16 of the Exchange Act will not be transferable by such person other
than by will or the laws of descent and distribution and are exercisable
during such person's lifetime only by such person or by such person's guardian
or legal representative. If then permitted by Rule 16b-3, such Awards will
also be transferable pursuant to a qualified domestic relations order as
defined in the Code or Title I of the Employee Retirement Income Security Act
or the rules thereunder.
(c) Documentation. Each Award under the Plan will be evidenced by a
writing delivered to the Participant specifying the terms and conditions
thereof and containing such other terms and conditions not inconsistent with
the provisions of the Plan as the Committee considers necessary or advisable
to achieve the purposes of the Plan. These terms and conditions may include
without limitation performance criteria, vesting requirements, restrictions on
transfer and payment rules. The Committee may establish the terms and
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Exhibit 10.1
conditions at the time the Award is granted or may provide that such terms and
conditions will be determined at any time thereafter.
(d) Committee Discretion. Each type of Award may be made alone, in
addition to or in relation to any other Award. The terms of each type of
Award need not be identical, and the Committee need not treat Participants
uniformly. Except as otherwise provided by the Plan or a particular Award,
any determination with respect to an Award may be made by the Committee at the
time of grant or at any time thereafter.
(e) Dividends and Cash Awards. In the discretion of the Committee,
any Award under the Plan may provide the Participant with (i) dividends or
dividend equivalents payable currently or deferred with or without interest
and (ii) cash payments in lieu of or in addition to an Award.
(f) Termination of Employment. The Committee will determine the
effect on an Award of the disability, death, retirement or other termination
of employment of a Participant and the extent to which, and the period during
which, the Participant's legal representative, guardian or beneficiary may
receive payment of an Award or exercise rights thereunder. A Participant may
designate a beneficiary in a manner determined by the Committee. In the
absence of an effective designation, a Participant's beneficiary will be the
Participant's estate.
(g) Change in Control. In order to preserve a Participant's rights
under an Award in the event of a change in control of the Company, the
Committee in its discretion may, at the time an Award is made or at any time
thereafter, take one or more of the following actions: (i) provide for the
acceleration of any time period relating to the exercise or payment of the
Award, (ii) provide for payment to the Participant of cash or other property
with a fair market value equal to the amount that would have been received
upon the exercise or payment of the Award had the Award been exercised or paid
upon the change in control, (iii) adjust the terms of the Award in a manner
determined by the Committee to reflect the change in control, (iv) cause the
Award to be assumed, or new rights substituted therefor, by another entity, or
(v) make such other provision as the Committee may consider equitable to the
Participant and in the best interests of the Company.
(h) Loans. The Committee may authorize the making of loans or cash
payments to Participants in connection with the grant or exercise of any Award
under the Plan, which loans may be secured by any security, including Common
Stock, underlying such Award, and which may be forgiven upon such terms and
conditions as the Committee may establish at the time of such loan or at any
time thereafter.
(i) Withholding Taxes. The Participant will pay to the Company, or
make provision satisfactory to the Committee for payment of, any taxes
required by law to be withheld in respect of Awards under the Plan no later
than the date of the event creating the tax liability. In the Committee's
discretion, such tax obligations may be paid in whole or in part in shares of
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Exhibit 10.1
Common Stock, including shares retained from the Award creating the tax
obligation, valued at fair market value on the date of delivery or retention.
The Company and its affiliates may, to the extent permitted by law, deduct any
such tax obligations from any payment of any kind otherwise due to the
Participant.
(j) Foreign Nationals. Awards may be made to Participants who are
foreign nationals or employed outside the United States on such terms and
conditions different from those specified in the Plan as the Committee
considers necessary or advisable to achieve the purposes of the Plan or to
comply with applicable laws.
(k) Amendment of Award. The Committee may amend, modify or terminate
any outstanding Award, including substituting therefor another Award of the
same or a different type and changing the date of exercise or realization,
provided that the Participant's consent to such action will be required unless
the action, taking into account any related action, would not adversely affect
the Participant.
7. Miscellaneous.
(a) No Right To Employment. No person will have any claim or right to
be granted an Award. Neither the Plan nor any Award hereunder will be deemed
to give any employee the right to continued employment or to limit the right
of the Company to discharge any employee at any time.
(b) No Rights As Shareholder. Subject to the provisions of the
applicable Award, no Participant or beneficiary will have any rights as a
shareholder with respect to any shares of Common Stock to be distributed under
the Plan until he or she becomes the holder thereof. A Participant to whom
Common Stock is awarded will be considered the holder of such Common Stock at
the time of the Award except as otherwise provided in the applicable Award.
(c) Effective Date. The Plan will be effective on April 17, 1996.
(d) Amendment of Plan. The Board of Directors of the Company may
amend, suspend or terminate the Plan or any portion thereof at any time,
subject to any shareholder approval that the Board determines to be necessary
or advisable, provided that the Participant's consent will be required for any
amendment, suspension or termination that would adversely affect the rights of
the Participant under any outstanding Award.
(e) Governing Law. The provisions of the Plan will be governed by and
interpreted in accordance with the laws of Florida.
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Exhibit 11
TECO ENERGY, INC.
COMPUTATIONS OF EARNINGS PER COMMON SHARE
Three months ended March 31, 1996 1995
Primary Fully Diluted Primary Fully Diluted
Earnings Earnings Earnings Earnings
Net income (000) $ 41,509 $ 41,509 $ 36,504 $ 36,504
Common shares outstanding
at beginning of period 116,731,681 116,731,681 116,199,423 116,199,423
Dividend reinvestment and
common stock purchase plan:
Shares issued 44,582 44,582 56,944 56,944
Stock option plans:
Options exercised 112,503 112,503 10,036 10,036
Shares under option at
end of period -- 2,268,772 -- 2,063,372
Treasury shares which could
be purchased -- (1,705,496) -- (1,809,884)
Avg. no. of shares outstanding 116,888,766 117,452,042 116,266,403 116,519,891
Earnings per share $ 0.36 $ 0.35 $ 0.31 $ 0.31
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<TABLE> <S> <C>
<ARTICLE> UT
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
TECO ENERGY, INC. CONSOLIDATED BALANCE SHEETS, CONSOLIDATED STATEMENTS
OF INCOME AND CONSOLIDATED STATEMENTS OF CASH FLOWS AND IS QUALIFIED IN
ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0000350563
<NAME> TECO Energy, Inc.
<MULTIPLIER> 1000
<S> <C>
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-1-1996
<PERIOD-END> MAR-31-1996
<PERIOD-TYPE> 3-MOS
<BOOK-VALUE> PER-BOOK
<TOTAL-NET-UTILITY-PLANT> 1,960,823
<OTHER-PROPERTY-AND-INVEST> 933,073
<TOTAL-CURRENT-ASSETS> 327,564
<TOTAL-DEFERRED-CHARGES> 176,167
<OTHER-ASSETS> 84,823
<TOTAL-ASSETS> 3,482,450
<COMMON> 116,976
<CAPITAL-SURPLUS-PAID-IN> 346,974
<RETAINED-EARNINGS> 793,076
<TOTAL-COMMON-STOCKHOLDERS-EQ> 1,257,026
0
54,956
<LONG-TERM-DEBT-NET> 995,802
<SHORT-TERM-NOTES> 780
<LONG-TERM-NOTES-PAYABLE> 0
<COMMERCIAL-PAPER-OBLIGATIONS> 336,900
<LONG-TERM-DEBT-CURRENT-PORT> 31,618
0
<CAPITAL-LEASE-OBLIGATIONS> 0
<LEASES-CURRENT> 0
<OTHER-ITEMS-CAPITAL-AND-LIAB> 805,368
<TOT-CAPITALIZATION-AND-LIAB> 3,482,450
<GROSS-OPERATING-REVENUE> 341,141
<INCOME-TAX-EXPENSE> 11,558
<OTHER-OPERATING-EXPENSES> 272,992
<TOTAL-OPERATING-EXPENSES> 272,992
<OPERATING-INCOME-LOSS> 68,149
<OTHER-INCOME-NET> 6,429
<INCOME-BEFORE-INTEREST-EXPEN> 73,686
<TOTAL-INTEREST-EXPENSE> 20,619
<NET-INCOME> 42,401
892
<EARNINGS-AVAILABLE-FOR-COMM> 41,509
<COMMON-STOCK-DIVIDENDS> 30,975
<TOTAL-INTEREST-ON-BONDS> 10,869
<CASH-FLOW-OPERATIONS> 107,632
<EPS-PRIMARY> 0.36
<EPS-DILUTED> 0.35
</TABLE>
/TEXT
<PAGE>
</DOCUMENT>
</SEC-DOCUMENT>
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