As filed with the Securities and Exchange Commission on April 22, 1996
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 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):
April 18, 1996
<TABLE>
<CAPTION>
Exact name of Registrant as specified
Commission in its charter, address of principal State of I.R.S. Employer
File No. executive offices, telephone number Incorporation Identification No.
<S> <C> <C> <C>
1-8349 FLORIDA PROGRESS CORPORATION Florida 59-2147112
One Progress Plaza
St. Petersburg, Florida 33701
Telephone (813) 824-6400
1-3274 FLORIDA POWER CORPORATION Florida 59-0247770
3201 34th Street South
St. Petersburg, Florida 33711
Telephone (813) 866-5151
</TABLE>
The address of neither registrant has changed since the last report.
This combined Form 8-K represents separate filings by Florida Progress
Corporation and Florida Power Corporation. Florida Power makes no
representations as to the information relating to Florida Progress' diversified
operations.
<PAGE>
Item 5. Other Events
In light of ongoing securities offerings by Florida Progress
Corporation ("Florida Progress") and its subsidiaries, including Florida Power
Corporation ("Florida Power") and Progress Capital Holdings, Inc., the following
information is being presented pending distribution of the combined Florida
Progress and Florida Power Quarterly Report on Form 10-Q for the quarter ended
March 31, 1996:
Florida Progress issued a news release dated April 18, 1996 and a
related Investor Information report of even date therewith reporting first
quarter 1996 earnings. Copies of the news release and report are being filed
herewith as Exhibits 99.(a) and 99.(b), respectively.
Item 7. Financial Statements and Exhibits
(c) Exhibits:
Exhibit Number (by
reference to Item 601
of Regulation S-K) Description of Exhibit
99.(a) Florida Progress Corporation News Release dated April
18, 1996 regarding first quarter 1996 earnings.
99.(b) Florida Progress Corporation Investor Information
Report dated April 18, 1996.
2
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
each registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
FLORIDA PROGRESS CORPORATION
FLORIDA POWER CORPORATION
/s/ James V. Smallwood
By:____________________________
James V. Smallwood
Vice President and Treasurer
of each Registrant
Date: April 18, 1996
3
<PAGE>
EXHIBIT INDEX
Exhibit No. Description of Exhibit
99.(a) Florida Progress Corporation News Release dated April 18, 1996
regarding first quarter 1996 earnings.
99.(b) Florida Progress Corporation Investor Information Report dated
April 18, 1996.
I:\SECRpts\Earn8-K.com
4
<PAGE>
[LOGO] FLORIDA PROGRESS CORPORATION
NEWS RELEASE
CORPORATE RELATIONS DEPARTMENT, ST. PETERSBURG, FLORIDA
MEDIA CONTACT: KAREN RAIHILL - (813) 866-5023
Florida Progress Corporation reports increase in first quarter earnings
ST. PETERSBURG, Fla. (April 18, 1996) - Florida Progress Corporation,
parent of St. Petersburg-based Florida Power Corporation, today
reported consolidated first-quarter earnings of $48.3 million, compared
with $46.6 million for the same quarter last year.
Revenues for the first quarter totaled $739.5 million, compared with
$703.2 million for the first quarter of 1995. Earnings per share for
the quarter were 50 cents, compared with 49 cents per share for the
first three months of 1995.
Improved operating results at Florida Power and Electric Fuels
Corporation, the energy and transportation subsidiary of Florida
Progress' diversified operations, contributed to the higher earnings
for the quarter.
Florida Power earned $42.9 million, or 44 cents per share, on revenues
of $547.3 million, compared with earnings of $40.8 million, or 43 cents
per share, on revenues of $515.9 million in the first quarter of 1995.
Contributing to Florida Power's improved financial performance were an
increase in sales to commercial, industrial and wholesale customers,
retail customer growth of about 2 percent, higher average customer
usage and continuing cost-control efforts. Sales to industrial
customers increased 16.3 percent as a result of higher energy usage by
phosphate companies. Florida Power's customer growth rate continues to
be nearly twice the industry average.
During the first quarter of 1996, residential customers experienced
much colder weather conditions than during the same period last year.
Extreme weather conditions would normally boost earnings from
residential customer usage. However, Florida Power is in the second
year of a three-year test of a revenue decoupling plan for residential
sales ordered by the Florida Public Service Commission. Since
decoupling is designed to reconcile the revenues to an authorized
target level, earnings are not impacted by weather-related fluctuations
in energy usage by residential customers.
- more -
<PAGE>
- Page 2 -
Florida Progress Corporation
News Release - Florida Progress reports first-quarter earnings
Electric Fuels' earnings for the first quarter were $6.8 million,
compared with $6.1 million a year ago. The earnings growth is
attributed to improved results at both the subsidiary's marine
operations and rail services operations. Progress Rail Services
Corporation has locations in 13 states and, as a result of a number of
key acquisitions in the last few years, is the largest integrated
processor and supplier of railroad materials in the United States.
Florida Progress (NYSE:FPC) is a Fortune 500 diversified utility
holding company with assets of $5.8 billion. Its principal subsidiary
is Florida Power, the state's second-largest electric utility with
about 1.3 million customers. Diversified operations include coal
mining, marine operations, rail services, life insurance, real estate,
and lending and leasing.
<TABLE>
<CAPTION>
Three Months Ended Twelve Months Ended
March 31 March 31
1996 1995 1996 1995
----------------- ----------------- ------------------ ------------------
<S> <C> <C> <C> <C>
Revenues $739,500,000 $703,200,000 $3,091,900,000 $2,835,500,000
Net Income $ 48,300,000 $ 46,600,000 $ 240,600,000 $ 222,100,000
================= ================= ================== ==================
Earnings Per Share (EPS):
Florida Power Corporation $ .44 $ .43 $ 2.28 $ 2.12
Diversified Operations .06 .06 .23 .23
------- ------- ------- -------
Consolidated $ .50 $ .49 $ 2.51 $ 2.35
======= ======= ======= =======
Average Common
Shares Outstanding 96,500,110 95,262,137 96,052,565 94,268,564
</TABLE>
FLORIDA PROGRESS CORPORATION
INVESTOR INFORMATION
ANALYSTS' CONTACTS:
MARK A. MYERS, MANAGER, INVESTOR RELATIONS (813) 866-4245
JOHN A. SERBA, SENIOR INVESTOR COMMUNICATIONS ANALYST (813) 866-4247
April 18, 1996
Florida Progress Corporation reports increase in first-quarter earnings
Florida Progress Corporation, parent of St. Petersburg-based Florida Power
Corporation, today reported consolidated first-quarter earnings of $48.3
million, or 50 cents a share, compared with $46.6 million, or 49 cents a
share, for the prior-year quarter. Revenues were $739.5 million, compared
with $703.2 million for the 1995 first quarter.
Significant items influencing the 1996 first-quarter results:
- Retail customer growth of about 2 percent.
- Increase in sales to commercial, industrial and wholesale customers.
- Continuing cost-control efforts at Florida Power.
- Improved performance from Electric Fuels Corporation, the energy and
transportation subsidiary of Florida Progress' diversified operations.
Florida Power, the largest subsidiary of Florida Progress, earned $42.9 million,
or 44 cents per share, on revenues of $547.3 million, compared with earnings of
$40.8 million, or 43 cents per share, on revenues of $515.9 million in the first
quarter of 1995.
Contributing to Florida Power's improved financial performance were an increase
in sales to commercial, industrial and wholesale customers, retail customer
growth of about 2 percent, higher average customer usage and continuing
cost-control efforts. Sales to industrial customers increased more than 16
percent as a result of higher energy usage by phosphate companies. Florida
Power's customer growth rate continues to be nearly twice the industry average.
- more -
<PAGE>
- - Page 2 -
Florida Progress Corporation
Investor Information - Florida Progress reports first-quarter earnings
During the first quarter of 1996, customers experienced much colder weather
conditions than during the same period last year. Extreme weather conditions
would normally boost earnings from higher residential customer usage.
However, Florida Power is in the second year of a three-year test of a revenue
decoupling plan for residential sales ordered by the Florida Public Service
Commission. The plan separates, or decouples, revenues from residential energy
sales. Decoupling is designed to reconcile the revenues to an authorized target
level. Earnings are not impacted by weather-related fluctuations in energy usage
by residential customers. For the first quarter of 1996, the decoupling
mechanism reduced billed residential revenues by $14.3 million.
Electric Fuels' earnings for the first quarter increased to $6.8 million,
compared with $6.1 million a year ago. The earnings growth is attributed to
improved results at both the subsidiary's marine operations and rail services
operations. Progress Rail Services Corporation has locations in 13 states and,
as a result of a number of key acquisitions in the last few years, is the
largest integrated processor and supplier of railroad materials in the United
States.
Florida Progress (NYSE:FPC) is a Fortune 500 diversified utility holding company
with assets of $5.8 billion. Its principal subsidiary is Florida Power, the
state's second-largest electric utility with about 1.3 million customers.
Diversified operations include coal mining, marine operations, rail services,
life insurance, real estate, and lending and leasing.
- more -
<PAGE>
FLORIDA PROGRESS CORPORATION
CONSOLIDATED STATEMENTS OF INCOME Page 3
(UNAUDITED) (In millions, except per share amounts)
Three Months Ended Twelve Months Ended
March 31 March 31
1996 1995 1996 1995
------- ------- -------- --------
REVENUES:
Electric utility $547.3 $515.9 $2,303.1 $2,112.9
Diversified 192.2 187.3 788.8 722.6
------- ------- -------- --------
739.5 703.2 3,091.9 2,835.5
EXPENSES: ------- ------- -------- --------
Electric utility:
Fuel used in generation 114.5 78.6 469.6 419.8
Purchased power 122.9 103.3 460.3 341.6
Deferred fuel (28.5) 7.4 (37.6) (9.3)
Other operation 88.2 87.4 359.5 368.1
------- ------- -------- --------
Operation 297.1 276.7 1,251.8 1,120.2
Maintenance 30.8 33.0 111.9 125.7
Depreciation 77.6 70.7 300.6 267.7
Taxes other than income taxes 47.2 42.9 180.5 165.5
------- ------- -------- --------
452.7 423.3 1,844.8 1,679.1
------- ------- -------- --------
Diversified:
Cost of sales 159.0 152.9 648.4 594.8
Other 16.3 16.7 73.9 66.6
------- ------- -------- --------
175.3 169.6 722.3 661.4
INCOME FROM OPERATIONS 111.5 110.3 524.8 495.0
------- ------- -------- --------
INTEREST EXPENSE AND OTHER:
Interest expense 35.2 36.6 140.6 145.2
Allowance for funds used
during construction (1.7) (2.2) (6.8) (10.5)
Preferred dividend requirements
of Florida Power 2.3 2.5 9.5 10.1
Other expense, net 0.5 0.8 3.6 10.5
------- ------- -------- --------
36.3 37.7 146.9 155.3
------- ------- -------- --------
INCOME BEFORE INCOME TAXES 75.2 72.6 377.9 339.7
Income taxes 26.9 26.0 137.3 117.6
------- ------- -------- --------
NET INCOME $ 48.3 $ 46.6 $ 240.6 $ 222.1
======= ======= ======== ========
AVERAGE SHARES OF COMMON
STOCK OUTSTANDING 96.5 95.3 96.1 94.3
======= ======= ======== ========
EARNINGS PER AVERAGE COMMON SHARE $0.50 $0.49 $2.51 $2.35
======= ======= ======== ========
Regarding these financial statements:
These are interim statements. Reference should be made to Florida Progress
Corporation's 1995 Annual Report to shareholders and Form 10-K for the year
ended December 31, 1995 and all subsequent reports filed with the Securities
and Exchange Commission. Neither this report nor any statement contained
herein is intended to constitute an offer of or solicitation of an offer to
buy any securities or is furnished for the purpose of promoting or influencing
the sale or purchase of securities.
<PAGE>
FLORIDA PROGRESS CORPORATION
CONSOLIDATED BALANCE SHEETS Page 4
(UNAUDITED) (In millions)
March 31
----------------------
1996 1995
ASSETS -------- --------
PROPERTY, PLANT AND EQUIPMENT:
Electric utility plant in service and held
for future use $5,885.6 $5,690.7
Less - Accumulated depreciation 2,238.8 2,042.4
Accumulated decommissioning for nuclear plant 172.3 141.3
Accumulated dismantlement for fossil plants 108.3 91.9
-------- --------
3,366.2 3,415.1
Construction work in progress 165.2 190.7
Nuclear fuel, net of amortization of $350.7
in 1996 and $329.3 in 1995 66.3 45.6
-------- --------
Net electric utility plant 3,597.7 3,651.4
Other property, net of depreciation of $194.2
in 1996 and $169 in 1995 450.4 425.6
-------- --------
4,048.1 4,077.0
-------- --------
CURRENT ASSETS:
Cash and equivalents 6.0 21.9
Accounts receivable, net 297.4 250.5
Current portion of leases and loans receivable 42.9 15.2
Inventories, primarily at average cost:
Fuel 50.5 82.1
Utility materials and supplies 98.4 108.9
Diversified materials 126.0 68.7
Other 65.2 45.9
-------- --------
686.4 593.2
-------- --------
OTHER ASSETS:
Investments:
Leases and loans receivable, net 333.5 426.8
Marketable securities 197.3 149.7
Nuclear plant decommissioning fund 176.5 131.7
Joint ventures and partnerships 73.5 74.8
Deferred insurance policy acquisition costs 108.6 97.2
Other 175.5 156.5
-------- --------
1,064.9 1,036.7
-------- --------
$5,799.4 $5,706.9
======== ========
CAPITAL AND LIABILITIES
CAPITAL:
Common stock equity $2,084.9 $1,995.9
Cumulative preferred stock of Florida Power 138.5 143.5
Long-term debt 1,621.3 1,842.2
-------- --------
3,844.7 3,981.6
-------- --------
CURRENT LIABILITIES:
Accounts payable 153.7 146.0
Customers' deposits 87.3 77.3
Income taxes payable 42.7 44.5
Accrued other taxes 36.7 30.0
Accrued interest 47.0 46.8
Other 102.5 65.0
-------- --------
469.9 409.6
Current portion of long-term debt 196.1 46.8
-------- --------
666.0 456.4
-------- --------
DEFERRED CREDITS AND OTHER LIABILITIES:
Deferred income taxes 687.5 741.1
Unamortized investment tax credits 99.5 107.9
Insurance policy benefit reserves 277.8 233.3
Other postretirement benefit costs 86.4 72.1
Other 137.5 114.5
-------- --------
1,288.7 1,268.9
-------- --------
$5,799.4 $5,706.9
======== ========
<PAGE>
FLORIDA PROGRESS CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS Page 5
(UNAUDITED) (In millions)
Three Months Ended Twelve Months Ended
March 31 March 31
------------------ -----------------
1996 1995 1996 1995
------ ------ ------ ------
OPERATING ACTIVITIES:
Net income $48.3 $46.6 $240.6 $222.1
Adjustments for noncash items:
Depreciation and amortization 89.5 86.7 361.9 326.9
Deferred income taxes and
investment tax credits, net (9.3) (13.0) (76.3) (27.5)
Increase in accrued other
postretirement benefit costs 1.6 4.3 14.3 19.3
Net change in deferred insurance
policy acquisition costs (2.2) (5.3) (11.4) (12.1)
Net change in insurance policy
benefit reserves 12.8 10.8 44.5 37.0
Changes in working capital, net
of effects from acquisition
or sale of businesses:
Accounts receivable 12.0 11.7 (44.0) (23.5)
Inventories 2.3 (7.3) (20.2) (7.2)
Accounts payable (14.8) (1.2) 5.8 32.7
Income taxes payable 28.3 32.3 (2.0) 1.6
Accrued other taxes 20.8 15.0 6.7 2.9
Other (19.7) (3.6) 25.6 5.9
Other operating activities 10.9 8.9 12.1 9.4
------ ------ ------ ------
180.5 185.9 557.6 587.5
------ ------ ------ ------
INVESTING ACTIVITIES:
Property additions (including
allowance for borrowed funds
used during construction) (71.6) (72.7) (334.3) (378.2)
Proceeds from sales of
properties and businesses 3.5 3.6 13.7 15.5
Purchase of leases, loans and securities (15.3) (11.0) (60.5) (47.4)
Proceeds from sale or collection of
leases, loans and securities 10.9 23.6 88.5 94.1
Acquisition of businesses - - (9.2) (17.1)
Distributions from (investments in)
joint ventures and partnerships, net - (0.8) (4.0) (1.9)
Other investing activities (13.3) (2.7) (21.6) (10.6)
------ ------ ------ ------
(85.8) (60.0) (327.4) (345.6)
------ ------ ------ ------
FINANCING ACTIVITIES:
Issuance of long-term debt - - - 4.4
Repayment of long-term debt (11.7) (10.0) (57.2) (82.0)
Increase (decrease) in commercial
paper with long-term support (40.7) (14.4) (25.3) (3.9)
Redemption of preferred stock - - (5.0) (5.0)
Sale of common stock 9.3 9.4 38.3 134.2
Dividends paid on common stock (49.7) (48.1) (195.0) (189.7)
Increase (decrease) in short-term debt - (55.3) - (91.9)
Other financing activities (0.6) - (1.9) (0.9)
------ ------ ------ ------
(93.4) (118.4) (246.1) (234.8)
------ ------ ------ ------
NET INCREASE (DECREASE) IN
CASH AND EQUIVALENTS 1.3 7.5 (15.9) 7.1
Beginning cash and equivalents 4.7 14.4 21.9 14.8
------ ------ ------ ------
ENDING CASH AND EQUIVALENTS $6.0 $21.9 $6.0 $21.9
====== ====== ====== ======
<PAGE>
<TABLE>
<CAPTION>
Florida Progress Corporation
Selected Financial Information (Unaudited) Page 6
Three Months Ended Percent Twelve Months Ended Percent
March 31 Positive March 31 Positive
1996 1995 (Negative) 1996 1995 (Negative)
------ ------ ---------- ------ ------ ----------
<S> <C> <C> <C> <C> <C> <C>
Earnings Per Share:
Florida Power Corporation $0.44 $0.43 2.3 $2.28 $2.12 7.5
------ ------ ------ ------
Electric Fuels Corporation 0.07 0.06 16.7 0.26 0.27 (3.7)
Mid-Continent Life Insurance Co. 0.01 0.02 (50.0) 0.05 0.08 (37.5)
Progress Credit Corporation (0.01) (0.01) - (0.04) (0.06) 33.3
Corporate and other (0.01) (0.01) - (0.04) (0.06) 33.3
------ ------ ------ ------
Diversified 0.06 0.06 - 0.23 0.23 -
------ ------ ------ ------
Consolidated $0.50 $0.49 2.0 $2.51 $2.35 6.8
====== ====== ====== ======
Avg. shares outstanding (millions) 96.5 95.3 1.3 96.1 94.3 1.9
Dividends per share $0.515 $0.505 2.0 $2.030 $2.000 1.5
Book value per share:
Florida Power Corporation $18.22 $17.55 3.8
Consolidated $21.56 $20.89 3.2
</TABLE>
<TABLE>
<CAPTION>
March 31 March 31
March 31 1996 1995
1996 1995 Amount Percent Amount Percent
------ ------ -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
Equity investments (percent): Capitalization (in millions):
Florida Power Corporation 84 84 Common stock $2,084.9 51.6 $1,995.9 49.5
Electric Fuels Corporation 9 9 Preferred stock 138.5 3.4 143.5 3.6
Mid-Continent Life Insurance Co. 4 4 Long-term debt 1,621.3 40.1 1,842.2 45.7
Progress Credit Corporation 3 3 Short-term capital 196.1 4.9 46.8 1.2
------ ------ -------- -------- -------- --------
Total 100 100 Total $4,040.8 100.0 $4,028.4 100.0
====== ====== ======== ======== ======== ========
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Florida Power Corporation
Selected Statistical Data (Unaudited) Page 7
(In millions, except billing degree days)
Three Months Ended Twelve Months Ended
March 31 Percent March 31 Percent
1996 1995 Change 1996 1995 Change
------ ------ ---------- ------- ------- ----------
<S> <C> <C> <C> <C> <C> <C>
Revenues:
Residential $328.5 $283.7 15.8 $1,297.5 $1,158.9 12.0
Commercial 115.1 109.4 5.2 521.0 490.8 6.2
Industrial 47.8 43.1 10.9 194.0 176.5 9.9
Other retail sales 27.0 25.3 6.7 118.2 110.2 7.3
------ ------ ------- -------
518.4 461.5 12.3 2,130.7 1,936.4 10.0
Sales for resale 43.0 26.0 65.4 166.6 123.8 34.6
------ ------ ------- -------
561.4 487.5 15.2 2,297.3 2,060.2 11.5
Other electric revenues (4.6) 25.8 - 21.1 64.1 -
Deferred fuel (9.5) 2.6 - (15.3) (11.4) -
------ ------ ------- -------
Total $547.3 $515.9 6.1 $2,303.1 $2,112.9 9.0
====== ====== ======= =======
Kilowatt-hour sales billed:
Residential 3,919.5 3,320.4 18.0 15,537.1 13,946.1 11.4
Commercial 1,888.9 1,770.2 6.7 8,730.8 8,298.6 5.2
Industrial 1,000.9 860.5 16.3 4,004.8 3,609.9 10.9
Other retail sales 480.8 443.1 8.5 2,122.7 1,997.0 6.3
------ ------ ------- -------
7,290.1 6,394.2 14.0 30,395.4 27,851.6 9.1
Sales for resale 752.6 442.3 70.2 3,213.4 2,266.9 41.8
------ ------ ------- -------
Total electric sales 8,042.7 6,836.5 17.6 33,608.8 30,118.5 11.6
======= ======= ======== ========
System Requirements (KWH) 8,230 7,213 14.1 34,684 31,490 10.1
Retail KWH Sales
(Billed & Unbilled) 7,214 6,414 12.5 30,544 27,853 9.7
Billing Degree Days:
Cooling - - - 3,929 3,346 17.4
Heating 653 463 41.0 791 525 50.7
Note:
Total revenues include billed revenues and unbilled revenues that are accrued for accounting purposes.
Statistics for total kilowatt-hour sales include only billed kilowatt-hour sales. Beginning in 1995,
Florida Power was ordered by state regulators to conduct a three-year test for residential revenue
decoupling. Under the plan, abnormal weather variances will no longer impact earnings with respect
to residential revenues.
</TABLE>
