As filed with the Securities and Exchange Commission on January 28, 1997
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):
January 23, 1997
<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 Annual Report on Form 10-K for the year ended
December 31, 1996:
Florida Power issued a news release dated January 23, 1997 and Florida
Progress issued a related Investor News report of even date therewith reporting
the signing of an agreement to acquire the Tiger Bay Cogeneration facility.
Florida Progress also issued a news release dated January 27, 1997 and a related
Investor News report of even date therewith reporting 1996 earnings. Copies of
the news releases and reports are being filed herewith as Exhibits 99.(a),
99.(b), 99.(c) and 99.(d), 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 Power Corporation News Release dated January
23, 1997 regarding the acquisition of Tiger Bay.
99.(b) Florida Progress Corporation Investor News report
dated January 23, 1997 regarding the acquisition of
Tiger Bay.
99.(c) Florida Progress Corporation News Release dated January
27, 1997 regarding 1996 earnings.
99.(d) Florida Progress Corporation Investor News report dated
January 27, 1997 regarding 1996 earnings.<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/ Jeffrey R. Heinicka
By:____________________________
Jeffrey R. Heinicka
Senior Vice President and
Chief Financial Officer
of each Registrant
Date: January 27, 1997
<PAGE>
EXHIBIT INDEX
Exhibit No. Description of Exhibit
99.(a) Florida Power Corporation News Release dated January
23, 1997 regarding the acquisition of Tiger Bay.
99.(b) Florida Progress Corporation Investor News report
dated January 23, 1997 regarding the acquisition of
Tiger Bay.
99.(c) Florida Progress Corporation News Release dated January
27, 1997 regarding 1996 earnings.
99.(d) Florida Progress Corporation Investor News report
dated January 27, 1997 regarding 1996 earnings.
EXHIBIT 99.(a)
Florida Power Corporation NEWS RELEASE
Corporate Relations Department, St. Petersburg, Florida
Media contact: Karen Raihill -- (813) 866-5023
[LOGO OMITTED]
FLORIDA POWER CORPORATION ANNOUNCES ACQUISITION OF TIGER BAY FACILITY
TO ACHIEVE COST SAVINGS FOR CUSTOMERS
St. Petersburg, FL (January 23, 1997) -- Under an agreement signed
this week, Florida Power Corporation will acquire the 220-megawatt Tiger
Bay cogeneration facility near Ft. Meade, Florida. The plant is being
sold for $445 million.
Tiger Bay is Florida Power's largest cogeneration power supplier,
representing more than 20 percent of the 1,050 megawatts of total capacity that
the company receives from 16 cogenerators. Buying this facility is expected to
result in customer savings in the range of more than $2 billion over the life of
the existing contract that runs to 2025.
Like many utilities, Florida Power became obligated in the 1980s to
sign long-term purchase power contracts with nonutility power producers, such as
Tiger Bay, to comply with the 1978 Public Utility Regulatory Policies Act. Over
the last several years, reductions in generating costs have come about by
lower-than-expected natural gas costs, lower construction costs, and more
efficient power plant technology. Purchase power costs are now significantly
higher than the projected costs for Florida Power's new generating facilities to
be located at its Polk County site.
"By acquiring Tiger Bay, we can take advantage of a unique opportunity
that should result in substantial savings. We can significantly reduce costs for
our customers by purchasing the plant and terminating the contract obligations,"
said Joe Richardson, Florida Power president and chief operating officer.
The Tiger Bay facility is owned by Tiger Bay Limited Partnership, which
is comprised of three general partners. Destec Energy, Inc., a leading
independent power producer based in Houston, Texas, owns the largest share at
approximately 50 percent. The other partners are Energy Investors Fund and
General Peat. The proposed transaction is slated to close on or before July 1,
subject to approval by appropriate regulatory agencies and the closing of a
potential sale of Destec.
The plant, which uses an advanced gas-fired combined cycle technology,
began commercial operation in January 1995. When it is added to Florida Power's
fleet, it will be the most efficient generating unit on the company's system.
The purchase would include the plant, equipment, spare parts and assigned
contracts, including natural gas fuel and transportation contracts.
Florida Power Corporation, the state's second-largest investor-owned
electric utility serving 1.3 million customers in central and northern Florida,
is the principal subsidiary of Florida Progress Corporation (NYSE:FPC).
###
EXHIBIT 99.(b)
Florida Progress Corporation INVESTOR NEWS
Analyst Contacts:
Mark A. Myers (813) 866-4245
Greg Beuris (813) 866-4442
[LOGO OMITTED]
Florida Power Corporation Announces Acquisition Of
Tiger Bay Facility To Achieve Customer Savings
ST. PETERSBURG, Florida, January 23, 1997 -- Florida Progress Corporation
(NYSE:FPC) announced that Florida Power Corporation, its electric utility
subsidiary, signed an agreement this week to acquire the 220-megawatt Tiger Bay
cogeneration facility near Ft. Meade, Florida, for $445 million. Tiger Bay is
Florida Power's largest cogeneration power supplier, representing more than 20
percent of the 1,050 megawatts of total capacity that the company receives from
16 cogenerators.
Like many utilities, Florida Power became obligated in the 1980's to sign
long-term purchase power contracts with nonutility power producers, like the
Tiger Bay project, to comply with the 1978 Public Utility Regulatory Polices
Act. Since those contracts were signed, projections indicate dramatic declines
in the market price of electricity, made possible by lower-than-predicted fuel
costs, lower construction costs and more efficient power plant technology.
To mitigate the impact of these higher future costs for Florida Power's
customers, the company is pursuing an aggressive strategy to reduce and
restructure the financial impact of these contracts for its customers. Buying
the Tiger Bay facility is expected to result in long-term customer savings in
the range of more than $2 billion over the life of the existing contract that
runs to 2025.
"This is a unique opportunity that should result in substantial savings. We can
significantly reduce costs for our customers by purchasing the plant and
terminating the purchased power obligations," said Joe Richardson, Florida Power
president and chief operating officer. Florida Power will be seeking approval
from the Florida Public Service Commission to recover the acquisition cost from
customers over a 5-year period, as well as the cost of fuel for the facility.
The Tiger Bay facility is owned by Tiger Bay Limited Partnership, which is
comprised of three general partners. Destec Energy, Inc., a leading independent
power producer based in Houston, Texas, owns the largest share at about 50
percent. The other partners are Energy Investors Fund and General Peat. The
proposed transaction is scheduled to close July 1, subject to approval by the
appropriate regulatory agencies and the closing of a potential sale of Destec.
Florida Power intends to add this plant to its fleet of fossil-fired power
plants. The Tiger Bay facility uses an advanced gas-fired combined cycle
technology. The purchase would include the plant, equipment, spare parts and
assigned contracts, including natural gas fuel and transportation contracts.
Florida Progress (NYSE:FPC) is a Fortune 500 diversified utility holding company
with assets of $5.3 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 and
life insurance.
###
EXHIBIT 99.(c)
Florida Progress Corporation
News Release
Corporate Relations Department, St. Petersburg, Florida
Media Contact: Karen Raihill -- (813) 866-5023
[LOGO OMITTED]
Florida Progress reports increase in earnings
ST. PETERSBURG, FL (January 27, 1997) -- Florida Progress Corporation
(NYSE:FPC), parent of Florida Power Corporation, reported 1996 earnings from
continuing operations of $250.7 million or $2.59 per share, compared with $238.9
million, or $2.50 a share in 1995.
Florida Power, the largest subsidiary of Florida Progress, earned $232.6 million
or $2.40 per share, on revenues of $2.4 billion for the year, compared to
earnings of $217.3 million, or $2.27 per share, on revenues of $2.3 billion in
1995. This reflects an increase of 5.7% over 1995 earnings per share.
Residential customer growth of about 2% in 1996 was the primary reason for
Florida Power's 2.9% increase in retail energy sales over 1995. Contributing to
the increase was higher usage among commercial and industrial customers. Through
lower debt balances and preferred stock redemptions, Florida Power's financing
costs were reduced $10 million from 1995.
For 1996, Electric Fuels Corporation, the energy and transportation subsidiary
of Florida Progress, had earnings of $27.1 million before a provision for loss
on certain coal properties, up 12.9% over 1995 earnings of $24 million. The
increase is primarily attributable to an increase in tonnage handled in 1996 by
its marine and terminaling services operations. Based on the continuation of
depressed market conditions for Central Appalachian low-sulfur coal, Electric
Fuels recorded a $25.2 million or $.26 a share after-tax charge to earnings
during the fourth quarter for the provision for loss on certain coal properties.
Florida Progress sold its 80% share of Advanced Separation Technologies
Incorporated for $56 million and realized an after-tax gain of $23.5 million or
$.24 per share. Advanced Separation Technologies is a manufacturer of chemical
separation devices headquartered in Lakeland, Florida. It has annual sales of
approximately $27 million and 65 employees.
On December 18, 1996, Florida Progress completed the divestiture of Echelon
International Corporation, formerly Progress Credit Corporation. As part of the
transaction, Florida Progress recorded a $26.3 million after-tax charge to
earnings for the write-down certain non-core assets of Echelon International and
transaction costs associated with the divestiture.
Florida Progress is a Fortune 500 diversified utility holding company with
assets of $5.3 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 and life
insurance.
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------
Three Months Ended Twelve Months Ended
December 31 December 31
------------------------------ ------------------------------
1996 1995 1996 1995
-------------- -------------- ------------- ------------
-------------- -------------- ------------- ------------
<S> <C> <C> <C> <C>
Revenues $774,900,000 $731,100,000 $3,157,900,000 $3,007,800,000
-------------- -------------- -------------- -------------
-------------- -------------- -------------- -------------
Income from continuing operations 45,600,000 46,000,000 250,700,000 238,900,000
Discontinued operations (1,300,000) -- (26,300,000) --
-------------- -------------- -------------- --------------
Net Income $ 44,300,000 $ 46,000,000 $ 224,400,000 $ 238,900,000
============== ============== ============== ==============
Earnings Per Share (EPS):
Income from continuing operations $ .47 $ .48 $2.59 $2.50
Discontinued operations (.01) - (.27) -
-------- -------- -------- -------
Consolidated $ .46 $ .48 $2.32 $2.50
======== ======== ======== =======
Average Common
Shares Outstanding 97,026,036 96,212,060 96,835,632 95,743,072
Current and prior periods reflect the recapitalization of the spin-off company, Echelon International and its
associated treatment as discontinued operations.
</TABLE>
###
Florida Progress Corporation
Investor News
Analysts Contacts:
Mark A. Myers (813) 866-4245
Greg Beuris (813) 866-4442
[LOGO OMITTED]
Florida Progress reports increase in 1996 earnings
St. Petersburg, Florida, January 27, 1997 -- Florida Progress Corporation
(NYSE:FPC), parent of St. Petersburg-based Florida Power Corporation, reported
1996 earnings from continuing operations before non-recurring items of $252.4
million or $2.61 per share, compared with $238.9 million, or $2.50 a share in
1995. This is an increase of 4.4% in earnings per share. The non-recurring items
were a $.26 per share after-tax charge for the provision for loss on certain
coal properties, a $.24 per share gain on the sale of Advanced Separation
Technologies Incorporated and a $.27 a share after-tax charge to earnings
related to the spin-off of Echelon International Corporation.
Significant items influencing 1996 results:
o Good Utility Growth - Strong residential customer growth of nearly 2%.
o Regulatory asset amortization - Accelerated the amortization of
certain regulatory assets which totaled $31 million.
o Provision for loss on coal properties - Electric Fuels Corporation
recorded a $25.2 million or $.26 per share after-tax charge to
earnings due to a provision for loss on certain unprofitable coal
properties.
o Lower earnings at Mid-Continent Life - Disappointing sales of a new
life insurance product along with higher death claims and
restructuring costs lowered 1996 earnings.
o Sale of Advanced Separation Technologies - Recorded an after-tax gain
of $23.5 million or $.24 per share.
o Spin-off of Echelon International to shareholders - Completed the
divestiture of Echelon International through a tax-free stock
dividend to shareholders in December 1996.
Florida Power, the largest subsidiary of Florida Progress, earned $232.6 million
or $2.40 per share, on revenues of $2.4 billion for the year, compared to
earnings of $217.3 million, or $2.27 per share, on revenues of $2.3 billion in
1995. This reflects an increase of 5.7% over 1995 earnings per share.
Residential customer growth of about 2% in 1996 was the primary reason for
Florida Power's 2.9% increase in retail energy sales over 1995. Contributing to
the increase was higher usage among commercial and industrial customers.
Operating and maintenance expenses increased $19.7 million or five percent over
1995. The increase is due primarily to additional maintenance costs associated
with the prolonged outage of the Crystal River nuclear plant and expenses
associated with customer service improvements for the company's telephone
centers and an expanded tree trimming program designed to improve service
reliability.
During 1996, continuing cost control efforts allowed Florida Power to further
strengthen its balance sheet by writing off $31 million in regulatory assets.
This included two oil-fired power plants -- Higgins and Turner -- which were
placed in extended cold shutdown in 1994. The Public Service Commission had
previously authorized the utility to amortize the costs of its canceled Lake
Tarpon-Kathleen transmission line over a four-year period beginning in 1995.
However, Florida Power chose to accelerate the amortization and complete the
write-off in 1996.
Interest expense and preferred dividends for Florida Power were $10 million
lower in 1996 compared to 1995. Improved cash flow resulted in lower debt
balances, and the redemption of $80 million of preferred stock in June 1996 and
$25 million in November 1996 lowered preferred dividends for the year.
Electric Fuels earned $27.1 million in 1996 before the provision for loss on
certain coal properties, up 12.9% over 1995 earnings of $24 million. The
increase is primarily attributable to higher tonnage handled by its marine and
terminaling services operations.
Electric Fuels began purchasing low-sulfur coal operations in the late 1980's as
part of a strategy to take advantage of the expected increase in demand for
low-sulfur coal. The increase was expected because of sulfur dioxide emission
requirements imposed on electric utilities by the Clean Air Act amendments of
1990. The supply of inexpensive low-sulfur coal from mines in the western United
States and the low cost of emission allowance credits have kept the price of
Central Appalachian low-sulfur coal lower than originally forecasted.
Since these coal market conditions are not considered by management to be
temporary, Electric Fuels' management decided to close and hold for sale certain
coal properties, which resulted in a provision for loss on these properties.
Mid-Continent Life Insurance Company introduced a new life insurance product in
1996 in an effort to reverse the decline in sales of new policies, and replaced
its previous product, which was determined to be inadequately priced. In 1997,
Mid-Continent plans to begin an orderly process to resolve the pricing issue.
This is expected to involve reducing policy dividends and increasing premiums.
Sales of the new policy have not met management's expectations. In November,
Mid-Continent restructured its operations to be able to reduce its workforce to
compete on a more focused and cost efficient basis.
Florida Progress sold its 80% share of Advanced Separation Technologies for $56
million and realized an after-tax gain of $23.5 million or $.24 per share.
Advanced Separation Technologies is a manufacturer of chemical separation
devices headquartered in Lakeland, Florida. It has annual sales of approximately
$27 million and 65 employees.
On December 18, 1996, Florida Progress completed the divestiture of Echelon
International, formerly Progress Credit Corporation, through a tax-free spin-off
to shareholders. As part of the transaction, Florida Progress recorded a $26.3
million after-tax charge to earnings for the write-down of certain non-core
assets of Echelon International and transaction costs associated with the
divestiture.
Restructuring its diversified businesses was a high priority for Florida
Progress in 1996. Through the spin-off of Echelon International, the sale of
Advanced Separation Technologies and the restructuring of Mid-Continent, Florida
Progress made significant strides in exiting those businesses that are not
related to its core businesses, Florida Power and Electric Fuels.
Florida Progress (NYSE:FPC) is a Fortune 500 diversified utility holding company
with assets of $5.3 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,
and life insurance.
<PAGE>
<TABLE>
<CAPTION>
FLORIDA PROGRESS CORPORATION
CONSOLIDATED STATEMENTS OF INCOME Page 4
(In millions, except per share amounts)
Three Months Ended Twelve Months Ended
December 31 December 31
------------------- -------------------
(UNAUDITED) 1996 1995 1996 1995
-------- -------- -------- --------
<S> <C> <C> <C> <C>
REVENUES:
Electric utility $562.9 $533.5 $2,393.6 $2,271.7
Diversified 212.0 197.6 764.3 736.1
--------- --------- --------- ---------
774.9 731.1 3,157.9 3,007.8
EXPENSES: --------- --------- --------- ---------
Electric utility:
Fuel 86.7 94.6 409.7 431.3
Purchased power 143.4 109.7 531.6 436.5
Energy conservation cost 11.5 19.1 62.6 84.0
Operations and maintenance 109.2 101.6 413.4 393.7
Depreciation 82.7 76.4 324.2 293.7
Taxes other than income taxes 40.5 40.0 183.6 176.2
--------- --------- --------- ---------
474.0 441.4 1,925.1 1,815.4
--------- --------- --------- ---------
Diversified:
Cost of sales 180.0 169.4 642.9 624.6
Provision for loss on coal properties 40.9 - 40.9 -
Other 19.1 14.9 66.6 58.9
--------- --------- --------- ---------
240.0 184.3 750.4 683.5
--------- --------- --------- ---------
INCOME FROM OPERATIONS 60.9 105.4 482.4 508.9
--------- --------- --------- ---------
INTEREST EXPENSE AND OTHER:
Interest expense 32.5 33.9 135.9 139.4
Allowance for funds used during
construction (2.0) (1.7) (7.5) (7.3)
Preferred dividend requirements of
Florida Power 0.6 2.4 5.8 9.7
Gain on sale of business (44.2) - (44.2) -
Other expense (income) 0.9 (1.1) (4.2) (9.9)
--------- --------- --------- ---------
(12.2) 33.5 85.8 131.9
--------- --------- --------- ---------
INCOME FROM CONTINUING OPERATIONS
BEFORE INCOME TAXES 73.1 71.9 396.6 377.0
Income Taxes 27.5 25.9 145.9 138.1
--------- --------- --------- ---------
INCOME FROM CONTINUING OPERATIONS $45.6 $46.0 $250.7 $238.9
DISCONTINUED OPERATIONS, NET
OF INCOME TAXES (1.3) - (26.3) -
--------- --------- --------- ---------
NET INCOME $44.3 $46.0 $224.4 $238.9
========= ========= ========= =========
AVERAGE SHARES OF COMMON STOCK
OUTSTANDING 97.0 96.2 96.8 95.7
========= ========= ========= =========
EARNINGS PER AVERAGE COMMON SHARE
CONTINUING OPERATIONS $0.47 $0.48 $2.59 $2.50
DISCONTINUED OPERATIONS ($0.01) - ($0.27) -
--------- --------- --------- ---------
$0.46 $0.48 $2.32 $2.50
========= ========= ========= =========
Regarding these financial statements:
Current and prior periods reflect the recapitalization of the spin-off company, Echelon
International, and its associated treatment as discontinued operations. These are
interim statements. Reference should be made to Florida Progress Corporation's 1995
Annual Report to shareholders. Neither this report nor any statement contained herein
is furnished in connection with the offering of securities or for the purpose of
promoting or influencing the sale or purchase of securities.
</TABLE>
FLORIDA PROGRESS CORPORATION
CONSOLIDATED BALANCE SHEETS Page 5
(In millions)
December 31
-------------------------
(UNAUDITED) 1996 1995
----------- -----------
ASSETS
PROPERTY, PLANT AND EQUIPMENT:
Electric utility plant in service and held for $5,965.6 $5,867.5
for future use
Less - Accumulated depreciation 2,335.8 2,179.7
Accumulated decommissioning for nuclear plant 193.3 165.2
Accumulated dismantlement for fossil plants 119.6 104.4
---------- ----------
3,316.9 3,418.2
Construction work in progress 140.3 131.8
Nuclear fuel, net of amortization of $356.7
in 1996 and $348.7 in 1995 59.9 59.1
---------- ----------
Net electric utility plant 3,517.1 3,609.1
Other property, net of depreciation of $173.8
in 1996 and $157.3 in 1995 309.3 307.0
---------- ----------
3,826.4 3,916.1
---------- ----------
CURRENT ASSETS:
Cash and equivalents 5.2 4.3
Accounts receivable, net 265.0 307.3
Inventories, primarily at average cost:
Fuel 67.1 63.0
Utility materials and supplies 95.4 101.3
Diversified materials 125.5 111.0
Underrecovery of fuel cost 82.6 0.3
Other 48.2 41.6
---------- ----------
689.0 628.8
---------- ----------
DISCONTINUED OPERATIONS:
Advances to discontinued operations - 116.0
Net assets of discontinued operations - 200.8
---------- ----------
- 316.8
---------- ----------
OTHER ASSETS:
Investments:
Loans receivable, net 68.1 31.5
Marketable securities 217.9 188.2
Nuclear plant decommissioning fund 207.8 161.1
Joint ventures and partnerships 41.9 33.9
Deferred insurance policy acquisition costs 120.9 106.4
Other 176.4 167.6
---------- ----------
833.0 688.7
---------- ----------
$5,348.4 $5,550.4
========== ==========
CAPITAL AND LIABILITIES
CAPITAL:
Common stock equity $1,924.2 $2,078.1
Cumulative preferred stock of Florida Power 33.5 138.5
Long-term debt 1,776.9 1,662.3
---------- ----------
3,734.6 3,878.9
---------- ----------
CURRENT LIABILITIES:
Accounts payable 193.2 165.7
Customers' deposits 81.8 85.3
Income taxes payable 27.8 1.7
Accrued other taxes 13.4 15.6
Accrued interest 48.3 46.9
Other 78.5 97.0
---------- ----------
443.0 412.2
Notes payable 4.1 -
Current portion of long-term debt 34.9 173.7
---------- ----------
482.0 585.9
---------- ----------
DEFERRED CREDITS AND OTHER LIABILITIES:
Deferred income taxes 475.4 512.0
Unamortized investment tax credits 93.5 101.5
Insurance policy benefit reserves 325.3 265.0
Other postretirement benefit costs 100.0 84.5
Other 137.6 122.6
---------- ----------
1,131.8 1,085.6
---------- ----------
$5,348.4 $5,550.4
========== ==========
<PAGE>
<TABLE>
<CAPTION>
FLORIDA PROGRESS CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS Page 6
(In millions)
Three Months Ended Twelve Months Ended
December 31 December 31
------------------- -------------------
(UNAUDITED) 1996 1995 1996 1995
-------- -------- -------- --------
<S> <C> <C> <C> <C>
OPERATING ACTIVITIES:
Income from continuing operations $45.6 $46.0 $250.7 $238.9
Adjustments for noncash items:
Depreciation and amortization 91.6 91.3 366.7 352.7
Gain on sale of business (44.2) - (44.2) -
Provision for loss on coal properties 40.9 - 40.9 -
Deferred income taxes and investment
tax credits, net (19.4) 3.2 (56.6) (38.0)
Increase in accrued other postretirement
benefit costs 3.6 4.0 15.5 16.8
Net change in deferred insurance policy
acquisition costs (0.8) (2.8) (14.5) (14.5)
Net change in insurance policy
benefit reserves 16.3 11.1 60.3 42.5
Changes in working capital, net of effects
from acquisition or sale of businesses:
Accounts receivable 43.0 39.4 35.4 (35.2)
Inventories 7.0 (30.1) (10.9) (29.1)
Overrecovery (underrecovery)of fuel cost (35.2) 8.2 (82.3) 1.5
Accounts payable 0.3 0.4 21.6 16.4
Income taxes payable (36.7) (43.9) 23.3 (8.6)
Accrued other taxes (55.2) (54.0) (2.3) 1.0
Other (16.0) 7.8 (13.5) 29.0
Other operating activities (20.8) (6.6) (19.2) 7.3
--------- --------- --------- ---------
Cash provided by continuing operations 20.0 74.0 570.9 580.7
--------- --------- --------- ---------
Income (loss) from discontinued operations (1.3) - (26.3) -
Adjustments for non-cash items 6.3 (9.2) 17.4 (17.6)
--------- --------- --------- ---------
Cash provided by (used for) discontinued
operations 5.0 (9.2) (8.9) (17.6)
--------- --------- --------- ---------
25.0 64.8 562.0 563.1
--------- --------- --------- ---------
INVESTING ACTIVITIES:
Property additions (including allowance for
borrowed funds used during construction) (72.0) (119.6) (264.0) (331.4)
Purchases of loans and securities, net;
cash associated with Echelon note (45.3) (15.7) (70.4) (28.9)
Proceeds from sales of properties 1.4 3.5 8.4 13.1
Acquisition of businesses (8.7) (3.3) (53.8) (9.2)
Proceeds from sales of businesses 52.7 - 52.7 -
Distributions from (investments in) joint
ventures and partnerships, net (4.8) (0.4) (9.4) (4.0)
Investing activities of discontinued operations 21.3 23.5 56.5 69.8
Other investing activities (3.1) (2.7) (27.6) (11.0)
--------- --------- --------- ---------
(58.5) (114.7) (307.6) (301.6)
--------- --------- --------- ---------
FINANCING ACTIVITIES:
Issuance of long-term debt 60.0 - 178.0 -
Repayment of long-term debt (0.6) (16.3) (190.4) (45.8)
Increase (decrease) in commercial paper with
long-term support (10.0) 106.0 (15.3) 1.0
Redemption of preferred stock (25.5) (5.0) (106.4) (5.0)
Sale of common stock - 9.6 18.5 38.4
Equity contribuitions to discontinued operations (23.7) - (23.7) -
Dividends paid on common stock (50.0) (48.6) (199.5) (193.4)
Increase (decrease) in short-term debt (24.9) - 4.1 (55.3)
Financing activities of discontinued operations 96.5 - 85.2 (9.7)
Other financing activities (0.9) (0.8) (4.0) (1.2)
--------- --------- --------- ---------
20.9 44.9 (253.5) (271.0)
--------- --------- --------- ---------
NET INCREASE (DECREASE) IN CASH AND EQUIVALENTS (12.6) (5.0) 0.9 (9.5)
Beginning cash and equivalents 17.8 9.3 4.3 13.8
--------- --------- --------- ---------
ENDING CASH AND EQUIVALENTS $5.2 $4.3 $5.2 $4.3
========= ========= ========= =========
</TABLE>
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<TABLE>
<CAPTION>
Florida Progress Corporation
Selected Financial Information (Unaudited) Page 7
Three Months Ended Percent Twelve Months Ended Percent
December 31 Positive December 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 $2.40 $2.27 5.7
--------- --------- --------- ---------
Electric Fuels Corporation 0.07 0.07 - 0.28 0.25 12.0
Mid-Continent Life Insurance Co. 0.00 0.01 (100.0) 0.02 0.07 (71.4)
Corporate and other (0.02) (0.03) 33.3 (0.09) (0.09) -
--------- --------- --------- ---------
Diversified Continuing 0.05 0.05 - 0.21 0.23 (8.7)
--------- --------- --------- ---------
Continuing Ops before non-recurring 0.49 0.48 2.1 2.61 2.50 4.4
Provision for loss on coal properties (0.26) - - (0.26) - -
Gain on sale of business 0.24 - - 0.24 - -
--------- --------- --------- ---------
Total Continuing Operations 0.47 0.48 (2.1) 2.59 2.50 3.6
Discontinued Operations (0.01) - - (0.27) - -
--------- --------- --------- ---------
$0.46 $0.48 (4.2) $2.32 $2.50 (7.2)
========= ========= ========= =========
Avg. shares outstanding (millions) 97.0 96.2 0.8 96.8 95.7 1.1
Dividends per share $0.515 $0.505 2.0 $2.060 $2.020 2.0
Book value per share:
Florida Power Corporation $18.82 $18.19 3.5
Consolidated $19.84 $21.55 (7.9)
</TABLE>
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<CAPTION
December 31 December 31
December 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 88 87 Common stock $1,924.2 51.0 $2,078.1 51.3
Electric Fuels Corporation 8 9 Preferred stock 33.5 0.9 138.5 3.4
Mid-Continent Life Insurance Co. 4 4 Long-term debt 1,776.9 47.1 1,662.3 41.0
--------- --------- Short-term debt 39.0 1.0 173.7 4.3
Total 100 100 ---------- ---------- ---------- ----------
========= ========= Total $3,773.6 100.0 $4,052.6 100.0
========== ========== ========== ==========
Note: Current and prior periods reflect the recapitalization of the spin-off company, Echelon International, and its
associated treatment as discontinued operations.
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<TABLE>
<CAPTION>
Florida Power Corporation
Selected Statistical Data (Unaudited) Page 8
(In millions, except billing degree days)
Three Months Ended Twelve Months Ended
December 31 Percent December 31 Percent
1996 1995 Change 1996 1995 Change
------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Revenues:
Residential $285.9 $293.0 (2.4) $1,299.1 $1,252.7 3.7
Commercial 135.1 128.6 5.1 537.3 515.3 4.3
Industrial 52.2 49.0 6.5 206.8 189.3 9.2
Other retail sales 33.8 30.0 12.7 125.9 116.5 8.1
--------- --------- --------------------
507.0 500.6 1.3 2,169.1 2,073.8 4.6
Sales for resale 33.3 38.8 (14.2) 159.9 149.6 6.9
--------- --------- --------------------
540.3 539.4 0.2 2,329.0 2,223.4 4.7
Other electric revenues 15.3 3.8 302.6 58.4 51.5 13.4
Deferred fuel 7.3 (9.7) - 6.2 (3.2) -
--------- --------- --------------------
Total $562.9 $533.5 5.5 $2,393.6 $2,271.7 5.4
========= ========= ====================
Kilowatt-hour sales billed:
Residential 3,338.6 3,457.3 (3.4) 15,481.4 14,938.0 3.6
Commercial 2,186.7 2,146.5 1.9 8,848.0 8,612.1 2.7
Industrial 1,028.5 1,012.3 1.6 4,223.7 3,864.4 9.3
Other retail sales 589.9 535.3 10.2 2,231.7 2,085.0 7.0
--------- --------- --------------------
7,143.7 7,151.4 (0.1) 30,784.8 29,499.5 4.4
Sales for resale 622.0 882.1 (29.5) 2,707.7 2,903.1 (6.7)
--------- --------- --------------------
Total electric sales 7,765.7 8,033.5 (3.3) 33,492.5 32,402.6 3.4
========= ========= ====================
System Requirements (KWH) 7,678 7,896 (2.8) 34,715 33,667 3.1
Retail KWH Sales
(Billed & Unbilled) 6,881 7,059 (2.5) 30,613 29,745 2.9
Billing Degree Days:
Cooling 611 892 (31.5) 3,682 3,929 (6.3)
Heating 98 121 (19.0) 859 601 42.9
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. The
statistic for retail KWH sales includes both billed and unbilled sales. Beginning in 1995, Florida
Power was ordered by state regulators to conduct a three-year test of residential revenue
decoupling. Under the plan, abnormal weather variances will no longer impact earnings with respect
to residential revenues.
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