SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
September 16, 1999
TECO ENERGY, INC.
(Exact name of registrant as specified in its charter)
FLORIDA 1-8180 59-2052286
(State or other jurisdiction (Commission file (IRS Employer
of incorporation) Number) 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
Page 1
Item 5. Other Events
See the Press Release dated Sept. 16, 1999, filed as Exhibit 99.1
and incorporated herein by reference, announcing a stock repurchase
program and providing guidance on financial results.
Item 7. Financial Statements and Exhibits
Exhibits
99.1 Press Release dated Sept. 16, 1999.
Page 2
SIGNATURE
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 hereunto duly authorized.
Dated: Sept. 16, 1999 TECO Energy, Inc.
By:/s/ W. L. Griffin
W. L. Griffin
Vice President-Controller
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INDEX TO EXHIBITS
Exhibit No. Description of Exhibits Page No.
99.1 Press Release dated Sept. 16, 1999 5
Page 4
[TECO Energy Letterhead]
FOR IMMEDIATE RELEASE
Contact: Mike Mahoney
Office: 813-228-4271
Internet: http://www.tecoenergy.com
Home: 813-991-6222
TECO ENERGY BOARD AUTHORIZES STOCK REPURCHASE PROGRAM
Company Also Announces Exit From TeCom; Guidance on Financial Results
TAMPA, Sept. 16, 1999 -- TECO Energy, Inc. today announced a
stock repurchase program, guidance for 1999 and beyond, and its plans
to exit its TeCom technology business.
The Board of Directors authorized the expenditure of up to $150
million to implement a stock repurchase program to begin immediately.
At recent market prices, this program would result in the repurchase
of approximately 7 million shares, or 5 percent of the 132 million
shares of common stock outstanding, if the program is fully
implemented.
TECO Energy's Chief Executive Officer, Robert Fagan, said, "Based
on our current valuation, we find our stock repurchase program is an
excellent use of capital. The decision to repurchase shares
underscores our focus on shareholder value and our confidence in our
management team and our future growth strategy."
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TECO Energy -- 2
The timing and total number of shares repurchased will depend on
market conditions; purchases may be made in the open market, as well
as in negotiated or block transactions.
Guidance for 1999 and Beyond
The company also issued guidance for the balance of 1999 and
beyond. While the company expects that income from continuing
operations before one-time charges in the third and fourth quarters of
1999 will be close to the results in 1998, the company projects
earnings growth of more than 7 percent in 2000 and again in 2001.
These estimates do not reflect any positive effect of share
repurchases on earnings per share.
Fagan noted, "We have sharpened our strategies to deliver annual
earnings growth of more than 7 percent for the year 2000 and beyond.
Execution will be key, and I intend for it to be superb."
In the third and fourth quarters of 1999, the company expects a
charge on the order of 12 cents per share for discontinued operations,
associated with TECO Energy's plans to exit the technology business of
its TeCom subsidiary, and one time charges of 7-12 cents per share
affecting continuing operations.
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TECO Energy -- 3
The charges affecting continuing operations include charges
associated with the recent Florida Public Service Commission regulatory
actions which capped Tampa Electric's equity ratio at 58.7% for
purposes of determining 1997 and 1998 earnings pursuant to audits under the
existing regulatory agreements, and the effects of accounting
provisions for tax matters.
Demand Still Strong in Core Florida Market
Fagan said, "With our sharpened strategy and strong Florida
market, TECO Energy is well positioned for strong growth in 2000 and
beyond."
The demand for electricity is increasing as Florida continues to
experience economic and population growth. In addition, the company
sees excellent growth as it expands its natural gas operations into
new unserved markets in Florida.
TECO Energy's ocean and river barge transportation business has
grown through acquisitions and entry into new markets, and the company
is looking for further growth from this business.
In addition, TECO Energy's independent power unit, TECO Power
Services, expects to double its contributions to earnings in 2000 from
1998 levels, with excellent future earnings growth from committed
"life-of-the-project" power contracts.
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TECO Energy -- 4
Through TECO Power Services, we have the ability to exploit the
accumulated energy experience of TECO Energy in other attractive
markets, both in the United States and abroad. We have very high
quality power projects already in place and want to accelerate growth in this
part of our business," said Fagan.
TECO Energy is a diversified, energy-related utility holding
company. Its principal businesses include Tampa Electric Company,
Peoples Gas, TECO Coal, TECO Transport, TECO Power Services and Bosek,
Gibson and Associates.
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This press release contains forward-looking statements which are
subject to the inherent uncertainties in predicting future results and
conditions. Certain factors that could cause actual results to differ
materially from those projected in these forward-looking statements
include the following: general economic conditions, particularly those
in Tampa Electric's service area affecting energy sales; weather
variations affecting energy sales and operating costs; potential
competitive changes in the electric and gas industries, particularly
in the area of retail competition; regulatory actions affecting Tampa
Electric and Peoples Gas System; commodity price changes affecting the
competitive positions of Tampa Electric and the Peoples Gas companies
as well as the margins at TECO Coalbed Methane and TECO Coal; changes
in and compliance with environmental regulations that may impose
additional costs or curtail some activities; TECO Energy's ability to
successfully implement the stock repurchase program; TECO Power
Services' ability to successfully develop and operate its projects;
and TECO Transport's ability to successfully enter new markets and
complete acquisitions. These factors are discussed more fully under
"Investment Considerations" in the company's Annual Report on Form 10-
K for the year-ended December 31, 1998, and reference is made thereto.
