As filed with the Securities and Exchange Commission on April 22, 1998
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 17, 1998
<TABLE>
<CAPTION>
<S> <C> <C> <C>
Exact name of Registrant as
Commission specified in its charter, address State of I.R.S. Employer
File No. of principal executive offices, telephone Incorporation Identification No.
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. Information contained herein relating
to an individual registrant is filed by that registrant on its own behalf.
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,
1998:
Florida Progress issued an Investor News report and a media News
Release, each dated April 17, 1998, to report an increase in its 1998
first-quarter earnings. A copy of the Investor News report and the media News
Release are being furnished herewith as Exhibit 99.(a) and 99.(b), respectively.
Florida Progress also issued a media News Release dated April 17, 1998 to
report Dr. Jack Critchfield's retirement as Chairman of the Board of Florida
Progress. A copy of the media News Release is being furnished herewith as
Exhibit 99.(c).
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 Investor News report dated April 17,
1998 reporting an increase in 1998 first-quarter
earnings.
99.(b) Florida Progress media News Release dated April 17, 1998
reporting an increase in 1998 first-quarter earnings.
99.(c) Florida Progress media News Release dated April 17, 1998
announcing Dr. Jack Critchfield's retirement.
<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. The signature of the undersigned on behalf
of each listed company shall be deemed to relate only to matters having
reference to such company.
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: April 17, 1998
<PAGE>
EXHIBIT INDEX
Exhibit No. Description of Exhibit
99.(a) Florida Progress Investor News report dated April 17,
1998 reporting an increase in 1998 first-quarter
earnings.
99.(b) Florida Progress media News Release dated April 17, 1998
reporting an increase in 1998 first-quarter earnings.
99.(c) Florida Progress media News Release dated April 17, 1998
announcing Dr. Jack Critchfield's retirement.
EXHIBIT 99.(a)
Florida Progress Corporation
Investor News
[LOGO OMITTED]
Analyst Contacts:
Greg Beuris (813) 866-4442
Lauran Willoughby (813) 866-4837
Florida Progress reports increase in 1998 first-quarter earnings
St. Petersburg, Florida, April 17, 1998 - Florida Progress Corporation
(NYSE:FPC), parent of St. Petersburg-based Florida Power Corporation,
reported first-quarter 1998 earnings of $50.5 million, or $.52 per share,
compared with $42 million, or $.43 a share in the first quarter of 1997.
Excluding the costs associated with Florida Power's nuclear plant outage,
Florida Progress' first-quarter 1998 earnings were $53.6 million, or $.55
per share, compared with $46.8 million, or $.48 per share for the first
quarter of 1997. The increase in earnings is due primarily to customer
growth and increased customer usage at Florida Power and improved operating
results at Electric Fuels Corporation, the company's energy and
transportation group.
Significant items influencing first-quarter results:
o Crystal River nuclear plant returns to service - On February 15, 1998,
Florida Power's nuclear plant returned to service after an extended
maintenance outage.
o Non-utility earnings up significantly - Electric Fuels' earnings
increased $.05 per share for the quarter compared with the first
quarter of 1997. This increase is attributable primarily to a return to
normal operating conditions for its inland marine transportation group
and improved results from the mining operations in its energy and
related transportation group.
o Customer growth and increased usage boost energy sales - Florida Power
served more than 20,000 new residential and commercial customers during
the first quarter of 1998, compared with the first quarter of 1997. The
addition of these new customers and colder weather resulted in a 4.6
percent increase in retail kilowatt hour sales.
o Good cost control at the utility - Continued cost control kept
operating and maintenance expenses virtually flat for the first quarter
of 1998, compared with the first quarter of 1997, despite a growing
customer base and operating and maintenance costs associated with the
Tiger Bay cogeneration facility acquired in July 1997.
FLORIDA POWER CORPORATION
Excluding the impact of the nuclear plant outage, Florida Power, the
largest subsidiary of Florida Progress, earned $48.9 million, or $.50 per
share, on revenues of $565.2 million for the quarter, compared with
earnings of $46 million, or $.47 per share, on revenues of $553.8 million
for the same period in 1997.
-- more --
<PAGE>
For the first quarter of 1998, Florida Power's retail kilowatt-hour sales
increased 4.6 percent over the first quarter of 1997. The increase in
retail sales was attributable largely to a 1.8 percent increase in Florida
Power's residential and commercial customers, continuing its growth rate at
nearly twice the national average. In addition, during the first quarter of
1998, Florida Power's service area experienced more normal weather
conditions as compared to the extremely mild weather experienced in 1997.
Florida Power's continuing efforts to control costs resulted in operating
and maintenance expense during the first quarter of 1998 remaining level
with the same period for 1997, excluding nuclear outage costs. This was
achieved despite the utility absorbing additional operating and maintenance
costs related to the Tiger Bay facility, the addition of more than 20,000
new residential and commercial customers, and general inflationary
pressures.
Depreciation and amortization expense increased approximately $7 million
for the first quarter of 1998 compared with 1997. Most of the increase was
due to the depreciation and amortization expenses associated with the 1997
purchase of the Tiger Bay facility and buy-out of the related purchased
power contracts.
Florida Power incurred approximately $11 million of additional interest
expense in the first quarter of 1998 compared with the first quarter of
1997. The increase was the result of higher debt balances due to financing
the costs associated with the extended nuclear maintenance outage and the
issuance of $450 million of medium-term notes used to finance the Tiger Bay
transaction.
ELECTRIC FUELS CORPORATION
Electric Fuels earned $8.2 million, or $.08 per share, in the first quarter
of 1998 compared with $3.3 million, or $.03 per share, in 1997. Most of the
increase is attributable to improved operations at the inland marine
transportation group.
In the first quarter of 1997, flooding along the Ohio and Mississippi
rivers significantly affected earnings for the inland marine transportation
group. Normal operating conditions thus far in 1998 combined with a larger
barge fleet have increased earnings from this group by $2.5 million, or
$.03 per share, when compared with the same three-month period last year.
Earnings for Electric Fuels' energy and related services group were up $1.6
million, or $.02 per share, for the first quarter of 1998 compared with
1997. The improvement in earnings was due primarily to lower production
costs at company mines and increased coal sales. The increase in sales
resulted largely from the September 1997 buy-out of a 50-percent partner in
one of its coal properties. Electric Fuels now recognizes 100 percent of
the sales from this mining operation.
Progress Rail, the lead company in Electric Fuels' Rail Services group,
continues to experience increased demand for its railroad related parts and
services. Earnings from this group were up $.5 million for the quarter.
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
and rail services.
###
<PAGE>
<TABLE>
<CAPTION>
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,
--------------------------------------------------
1998 1997 1998 1997
----------- ----------- ----------- -----------
REVENUES:
<S> <C> <C> <C> <C>
Electric utility $ 565.2 $ 553.8 $ 2,459.8 $ 2,400.1
Diversified 222.3 193.7 895.8 774.9
- ------------------------------------------------------------------------------------------------------------------
787.5 747.5 3,355.6 3,175.0
- ------------------------------------------------------------------------------------------------------------------
EXPENSES:
Electric utility:
Fuel 109.2 94.9 472.4 419.6
Purchased power 99.0 127.2 462.4 536.0
Energy conservation cost 16.6 11.0 72.6 53.9
Operations and maintenance 102.4 102.4 422.3 415.4
Extended nuclear outage - O&M and replacement power costs 5.1 7.9 170.5 7.9
Depreciation 81.0 74.3 332.6 320.9
Taxes other than income taxes 49.5 48.1 195.0 184.5
- ------------------------------------------------------------------------------------------------------------------
462.8 465.8 2,127.8 1,938.2
- ------------------------------------------------------------------------------------------------------------------
Diversified:
Cost of sales 193.8 171.8 775.9 659.6
Provision for loss on coal properties - - - 40.9
Loss related to life insurance subsidiary - - 97.6 -
Other 12.8 14.9 58.6 66.1
- ------------------------------------------------------------------------------------------------------------------
206.6 186.7 932.1 766.6
- ------------------------------------------------------------------------------------------------------------------
INCOME FROM OPERATIONS 118.1 95.0 295.7 470.2
- ------------------------------------------------------------------------------------------------------------------
INTEREST EXPENSE AND OTHER:
Interest expense 47.3 34.3 171.7 135.6
Allowance for funds used during construction (3.9) (2.1) (11.5) (7.9)
Preferred dividend requirements of Florida Power .4 .4 1.5 3.9
(Gain) on sale of business - - - (44.2)
Other expense (income) (.5) .4 .5 (.4)
- ------------------------------------------------------------------------------------------------------------------
43.3 33.0 162.2 87.0
- ------------------------------------------------------------------------------------------------------------------
INCOME FROM CONTINUING OPERATIONS
BEFORE INCOME TAXES 74.8 62.0 133.5 383.2
Income taxes 24.3 20.0 70.7 138.8
- ------------------------------------------------------------------------------------------------------------------
INCOME FROM CONTINUING OPERATIONS 50.5 42.0 62.8 244.4
DISCONTINUED OPERATIONS, NET OF INCOME TAXES - - - (26.3)
- ------------------------------------------------------------------------------------------------------------------
NET INCOME $ 50.5 $ 42.0 $ 62.8 $ 218.1
- ------------------------------------------------------------------------------------------------------------------
AVERAGE SHARES OF COMMON
STOCK OUTSTANDING 97.1 97.0 97.1 97.0
- ------------------------------------------------------------------------------------------------------------------
EARNINGS (LOSS) PER AVERAGE COMMON SHARE:
CONTINUING OPERATIONS $.52 $.43 $.65 $2.52
DISCONTINUED OPERATIONS - - - (.27)
- ------------------------------------------------------------------------------------------------------------------
$.52 $.43 $.65 $2.25
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
Regarding these financial statements:
Prior periods reflect the recapitalization of the spin-off company, Echelon
International, and its associated treatment as discontinued operations.
Effective December 31, 1997, the Company deconsolidated the accounts of
Mid-Continent Life Insurance Company and established a provision for loss for
the full amount of its investment. The deconsolidation has not been reflected in
the consolidated financial statements of prior periods. These are interim
statements. Reference should be made to Florida Progress Corporation's 1997
Annual Report to shareholders. This report does not constitute an offer to sell
or the solicitation of an offer to buy any securities.
<PAGE>
<TABLE>
<CAPTION>
FLORIDA PROGRESS CORPORATION
CONSOLIDATED BALANCE SHEETS Page 4
(UNAUDITED) (In millions)
March 31
---------------------------
ASSETS 1998 1997
----------- ----------
PROPERTY, PLANT AND EQUIPMENT:
<S> <C> <C>
Electric utility plant in service and held for future use $ 6,172.5 $ 5,986.5
Less - Accumulated depreciation 2,570.3 2,394.9
Accumulated decommissioning for nuclear plant 230.6 200.3
Accumulated dismantlement for fossil plants 128.9 123.8
- --------------------------------------------------------------------------------------------------
3,242.7 3,267.5
Construction work in progress 336.3 198.2
Nuclear fuel, net of amortization of $359.9 in 1998 and $356.7 in 1997 63.2 59.9
- --------------------------------------------------------------------------------------------------
Net electric utility plant 3,642.2 3,525.6
Other property, net of depreciation of $224 in 1998 and $178.1 in 1997 455.6 314.3
- --------------------------------------------------------------------------------------------------
4,097.8 3,839.9
- --------------------------------------------------------------------------------------------------
CURRENT ASSETS:
Cash and equivalents 8.2 16.5
Accounts receivable, net 370.9 280.7
Inventories, primarily at average cost:
Fuel 75.6 80.1
Utility materials and supplies 92.1 95.4
Diversified materials 139.6 137.2
Underrecovery of fuel cost 37.7 105.6
Deferred income taxes 40.6 33.7
Other 46.4 15.0
- --------------------------------------------------------------------------------------------------
811.1 764.2
- --------------------------------------------------------------------------------------------------
OTHER ASSETS:
Investments:
Loans receivable, net 31.6 57.6
Marketable securities - 228.2
Nuclear plant decommissioning fund 281.7 219.2
Joint ventures and partnerships 51.8 51.0
Deferred insurance policy acquisition costs - 123.0
Deferred purchased power contract termination costs 344.6 -
Other 217.8 179.6
- --------------------------------------------------------------------------------------------------
927.5 858.6
- --------------------------------------------------------------------------------------------------
$ 5,836.4 $ 5,462.7
- --------------------------------------------------------------------------------------------------
CAPITAL AND LIABILITIES
CAPITAL:
Common stock equity $ 1,773.9 $ 1,912.8
Cumulative preferred stock of Florida Power 33.5 33.5
Long-term debt 2,342.3 1,820.1
- --------------------------------------------------------------------------------------------------
4,149.7 3,766.4
- --------------------------------------------------------------------------------------------------
CURRENT LIABILITIES:
Accounts payable 222.3 189.2
Customers' deposits 99.1 94.3
Income taxes payable 12.5 37.0
Accrued other taxes 32.8 32.4
Accrued interest 48.8 39.1
Other 73.4 74.9
- --------------------------------------------------------------------------------------------------
488.9 466.9
Notes payable 303.2 55.9
Current portion of long-term debt 5.7 24.9
- --------------------------------------------------------------------------------------------------
797.8 547.7
- --------------------------------------------------------------------------------------------------
DEFERRED CREDITS AND OTHER LIABILITIES:
Deferred income taxes 504.4 465.3
Unamortized investment tax credits 83.7 91.5
Insurance policy benefit reserves - 341.3
Other postretirement benefit costs 109.0 102.0
Other 191.8 148.5
- --------------------------------------------------------------------------------------------------
888.9 1,148.6
- --------------------------------------------------------------------------------------------------
$ 5,836.4 $ 5,462.7
- --------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
FLORIDA PROGRESS CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS Page 5
(UNAUDITED) (In millions)
Three Months Ended Twelve Months Ended
March 31 March 31
------------------------ ------------------------
1998 1997 1998 1997
----------- ----------- ----------- -----------
OPERATING ACTIVITIES:
<S> <C> <C> <C> <C>
Income from continuing operations $ 50.5 $ 42.0 $ 62.8 $ 244.4
Adjustments for noncash items:
Depreciation and amortization 100.9 83.2 381.9 361.9
Extended nuclear outage - replacement power costs - - 73.3 -
Provision for loss on investment in life insurance subsidiary - - 86.9 -
Gain on sale of business - - - (44.2)
Provision for loss on coal properties - - - 40.9
Deferred income taxes and investment tax
credits, net (7.3) (12.3) (25.7) (62.0)
Increase in accrued other postretirement benefit costs 1.6 2.0 8.2 15.8
Net change in deferred insurance policy acquisition costs - (2.1) .4 (14.4)
Net change in insurance policy benefit reserves - 16.0 36.7 63.5
Changes in working capital, net of effects from acquisition
or sale of businesses:
Accounts receivable 10.2 (15.5) (82.6) 8.4
Inventories 3.1 (25.0) 30.3 (38.9)
Underrecovery of fuel cost (8.3) (23.0) (18.4) (86.3)
Accounts payable (33.0) (4.0) 29.3 29.9
Income taxes payable 29.9 9.4 (24.6) (6.3)
Accrued other taxes 20.5 19.0 (.5) (3.5)
Other (11.8) (2.2) (8.4) (14.0)
Other operating activities (2.7) 1.7 (42.6) (28.5)
- --------------------------------------------------------------------------------------------------------------------
Cash provided by continuing operations 153.6 89.2 507.0 466.7
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Cash provided by discontinued operations - - - 3.6
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
153.6 89.2 507.0 470.3
- --------------------------------------------------------------------------------------------------------------------
INVESTING ACTIVITIES:
Property additions (including allowance for
borrowed funds used during construction) (103.0) (94.8) (521.8) (288.1)
Purchases of loans and securities, net (7.7) (4.5) (14.2) (63.1)
Proceeds from sales of properties and businesses 2.1 2.2 24.2 60.0
Acquisition of businesses (9.1) - (41.8) (53.8)
Acquisition of cogeneration facility and payment of
contract termination costs - - (445.0) -
Investments in joint ventures and partnerships, net (.5) (9.3) (21.7) (18.7)
Investing activities of discontinued operations - - - 49.8
Other investing activities (5.2) (4.9) (22.5) (19.2)
- --------------------------------------------------------------------------------------------------------------------
(123.4) (111.3) (1,042.8) (333.1)
- --------------------------------------------------------------------------------------------------------------------
FINANCING ACTIVITIES:
Issuance of long-term debt 144.1 - 626.9 178.0
Repayment of long-term debt (169.4) (21.5) (182.8) (210.4)
Increase(decrease) in commercial paper with
long-term support (35.7) 54.6 40.3 80.0
Redemption of preferred stock - - - (106.4)
Sale of common stock - - - 9.2
Equity contributions to discontinued operations - - - (23.7)
Dividends paid on common stock (51.9) (51.0) (204.7) (200.8)
Increase in short-term debt 88.4 51.8 247.4 55.9
Financing activities of discontinued operations - - - 95.4
Other financing activities (.6) (.5) .4 (3.8)
- --------------------------------------------------------------------------------------------------------------------
(25.1) 33.4 527.5 (126.6)
- --------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN CASH AND EQUIVALENTS 5.1 11.3 (8.3) 10.6
Beginning cash and equivalents 3.1 5.2 16.5 5.9
- --------------------------------------------------------------------------------------------------------------------
ENDING CASH AND EQUIVALENTS $ 8.2 $ 16.5 $ 8.2 $ 16.5
- --------------------------------------------------------------------------------------------------------------------
</TABLE>
<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
1998 1997 (Negative) 1998 1997 (Negative)
------------ ----------- ------------------ ----------- ------------ -------------
Earnings (Loss) Per Share:
<S> <C> <C> <C> <C> <C> <C>
Florida Power Corporation $.50 $.47 6.4 $2.51 $2.43 3.3
------------ ----------- ----------- ------------
Electric Fuels Corporation .08 .03 166.7 .38 .24 58.3
Mid-Continent Life Insurance Co. - - - - .01 -
Corporate and other (.03) (.02) (50.0) (.20) (.09) (122.2)
------------ ----------- ----------- ------------
Diversified Continuing before non-recurring .05 .01 400.0 .18 .16 12.5
------------ ----------- ----------- ------------
Continuing Ops before non-recurring .55 .48 14.6 2.69 2.59 3.9
Impact of nuclear outage (.03) (.05) - (1.08) (.05) -
Provision for loss on coal properties - - - - (.26) -
Gain on sale of business - - - - .24 -
Loss related to life insurance subsidiary - - (.96) -
------------ ----------- ----------- ------------
Total Continuing Operations .52 .43 20.9 .65 2.52 (74.2)
Discontinued Operations - - - - (.27) -
============ =========== =========== ============
$.52 $.43 20.9 $.65 $2.25 (71.1)
============ =========== =========== ============
Avg. shares outstanding (millions) 97.1 97.0 .1 97.1 97.0 .1
Dividends per share $.535 $.525 1.9 $2.11 $2.07 1.9
Book value per share:
Florida Power Corporation $18.18 $18.73 (3.0)
Consolidated $18.28 $19.71 (7.3)
</TABLE>
<TABLE>
<CAPTION>
March 31 March 31
March 31 1998 1997
1998 1997 Amount Percent Amount Percent
------------ ----------- --------------------------------------------
Equity investments (percent): Capitalization (in millions):
<S> <C> <C> <C> <C> <C> <C>
Florida Power Corporation 90 87 Common stock $1,773.9 39.8 $1,912.8 49.7
Electric Fuels Corporation 10 9 Preferred stock 33.5 .8 33.5 .9
Mid-Continent Life Insurance Co. - 4 Long-term debt 2,342.3 52.5 1,820.1 47.3
------------ -----------
Total 100 100 Short-term debt 308.9 6.9 80.8 2.1
------------ -----------
--------------------------------------------
Total $4,458.6 100.0 $3,847.2 100.0
--------------------------------------------
Note: Prior periods reflect the recapitalization of the spin-off company, Echelon International, and its associated treatment
as discontinued operations.
</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
1998 1997 Change 1998 1997 Change
------------- ------------- --------------- ------------- -------------- ------------
Revenues:
<S> <C> <C> <C> <C> <C> <C>
Residential $308.7 $290.7 6.2 $1,333.0 $1,279.0 4.2
Commercial 123.7 124.2 (.4) 567.9 546.4 3.9
Industrial 47.8 51.9 (7.9) 203.8 210.9 (3.4)
Other retail sales 30.0 29.8 .7 133.6 128.7 3.8
------------- ------------- ------------- --------------
510.2 496.6 2.7 2,238.3 2,165.0 3.4
Sales for resale 36.9 37.1 (.5) 150.5 154.0 (2.3)
------------- ------------- ------------- --------------
547.1 533.7 2.5 2,388.8 2,319.0 3.0
Other electric revenues 21.4 12.8 67.2 84.9 58.1 46.1
Deferred fuel (3.3) 7.3 - (13.9) 23.0 -
------------- ------------- ------------- --------------
Total $565.2 $553.8 2.1 $2,459.8 $2,400.1 2.5
------------- ------------- ------------- --------------
Kilowatt-hour sales billed:
Residential 3,555.8 3,296.3 7.9 15,339.3 14,858.2 3.2
Commercial 2,030.9 1,994.4 1.8 9,293.8 8,953.5 3.8
Industrial 982.9 1,049.9 (6.4) 4,120.8 4,272.7 (3.6)
Other retail sales 529.9 517.4 2.4 2,337.9 2,268.3 3.1
------------- ------------- ------------- --------------
7,099.5 6,858.0 3.5 31,091.8 30,352.7 2.4
Sales for resale 655.2 531.9 23.2 2,562.9 2,487.0 3.1
------------- ------------- ------------- --------------
Total electric sales 7,754.7 7,389.9 4.9 33,654.7 32,839.7 2.5
------------- ------------- ------------- --------------
System Requirements (KWH) 7,844 7,520 4.3 34,928 34,006 2.7
KWH Sales (Billed & Unbilled):
Retail 7,098 6,787 4.6 31,176 30,183 3.3
Wholesale 650 438 48.4 2,645 2,296 15.2
Billing Degree Days:
Cooling 25 25 - 3,434 3,707 (7.4)
Heating 462 296 56.1 609 502 21.3
Note:
Revenues include amounts resulting from fuel, purchased power, and energy
conservation clauses; which are designed to permit full recovery of these
costs. 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 and
wholesale KWH sales includes both billed and unbilled sales. From 1995
through 1997, Florida Power, as ordered by state regulators, conducted a
three-year test of residential revenue decoupling. Under the plan, abnormal
weather variances did not impact earnings with respect to residential
revenues.
</TABLE>
EXHIBIT 99.(b)
Florida Progress Corporation
News Release
Corporate Relations Department, St. Petersburg, Florida
FOR IMMEDIATE RELEASE CONTACT: Melanie Forbrick
813/866-5023
[LOGO OMITTED]
Florida Progress reports increase in 1998 first-quarter earnings
St. Petersburg, FL....April 17, 1998....Florida Progress Corporation, parent of
St. Petersburg-based Florida Power Corporation, today reported first-quarter
1998 earnings of $50.5 million, or $.52 per share. This compares with $42
million, or $.43 per share, in the first quarter of 1997. Excluding $3.1 million
in non-recurring fuel replacements costs associated with the outage of the
Crystal River 3 nuclear unit, first-quarter 1998 earnings were $53.6 million, or
$.55 per share, compared with $46.8 million, or $.48 per share, for the first
quarter of 1997. The increase in earnings is due primarily to customer growth
and increased customer usage at Florida Power Corporation and improved operating
results at Electric Fuels Corporation, the company's energy and transportation
group.
Significant items influencing first-quarter results:
o Crystal River nuclear plant returns to service - On February 15, 1998,
Florida Power's nuclear plant returned to service after an extended
maintenance outage.
o Non-utility earnings up significantly - Electric Fuels Corporation
earnings increased $.05 per share for the quarter compared with the
first quarter of 1997. The increase in earnings was the result of a
return to normal operating conditions for its inland marine
transportation group, along with improved results from the mining
operations in its energy and related services group.
o Customer growth and increased usage boost utility sales - With more
than 20,000 new residential and commercial customers, Florida Power's
customer growth of 1.8 percent continued at more that twice the
national average. This combined with colder weather during the first
quarter of 1998, compared with the first quarter of 1997, resulted in a
4.6 percent increase in the retail kilowatt hour sales of Florida
Power.
o Good cost control at the utility - Continued cost control kept
operating and maintenance expenses virtually flat for the first quarter
of 1998, compared with the first quarter of 1997, despite a growing
customer base and the operating and maintenance costs associated with
the Tiger Bay facility, which was acquired in July 1997.
- more -
<PAGE>
Florida Progress 1998 first-quarter earnings
Add one
Florida Power Corporation, the largest subsidiary of Florida Progress, earned
$45.8 million, or $.47 per share, on revenues of $565.2 million for the quarter.
This compares with earnings of $41.2 million, or $.42 per share, on revenues of
$553.8 million for the same period in 1997.
Electric Fuels earned $8.2 million, or $.08 per share, in the first quarter of
1998. This compares with $3.3 million, or $.03 per share, in 1997. The increase
was due primarily to improved operating conditions for the inland marine
transportation group and increased coal sales for the energy and related
services group.
In the first quarter of 1997, flooding along the Ohio and Mississippi rivers
significantly affected earnings for the inland marine transportation group.
Normal operating conditions thus far in 1998, combined with a larger barge fleet
increased earnings from this group by $2.5 million, or $.03 per share. Lower
production costs and increased coal sales increased earnings for the energy and
related services group by $1.6 million, or $.02 per share, in the first quarter
of 1998 compared with 1997.
Florida Progress Corporation (NYSE:FPC) is a FORTUNE 500 diversified utility
holding company with assets of $5.8 billion. Its principal subsidiary is Florida
Power Corporation, one of Florida's largest electric utilities serving 4.5
million residents and businesses in 32 counties in the central and northern
portions of the state. Diversified operations include coal mining, marine
operations and rail services.
(earnings chart -- see attached)
###
<PAGE>
<TABLE>
<CAPTION>
Three Months Ended Twelve Months Ended
MARCH 31 MARCH 31
--------------------------------------------------------------------------
1998 1997 1998 1997
---------------- ---------------- ------------------ ------------------
<S> <C> <C> <C> <C>
Revenues $787,500,000 $747,500,000 $3,355,600,000 $3,175,000,000
---------------- ---------------- ------------------ ------------------
Continuing operations before
non-recurring items 53,600,000 46,800,000 261,000,000 250,900,000
Non-recurring items (3,100,000) (4,800,000) (198,200,000) (6,500,000)
---------------- ---------------- ------------------ ------------------
Continuing operations 50,500,000 42,000,000 62,800,000 244,400,000
Discontinued operations - - - (26,300,000)
---------------------------------- ------------------ ------------------
Net income $50,500,000 $42,000,000 $62,800,000 $218,100,000
================ ================ ================== ==================
Earnings (loss) per share (EPS):
Income from continuing operations
before non-recurring items $ .55 $ .48 $ 2.69 $ 2.59
Non-recurring items (.03) (.05) (2.04) (.07)
---------------- ---------------- ------------------ ------------------
Continuing operations .52 .43 .65 2.52
Discontinued operations - - - (.27)
---------------- ---------------- ------------------ ------------------
Consolidated $ .52 $ .43 $ .65 $ 2.25
================ ================ ================== ==================
Average Common
Shares Outstanding 97,059,243 97,036,161 97,060,069 96,969,645
</TABLE>
Prior periods reflect the recapitalization of the spin-off company, Echelon and
its and its associated treatment as discontinued operations.
EXHIBIT 99.(c)
FOR IMMEDIATE RELEASE CONTACT: Melanie Forbrick
813/866-5023
CRITCHFIELD TO RETIRE, KORPAN ELECTED CHAIRMAN OF FLORIDA PROGRESS CORPORATION
St. Petersburg, FL...April 17, 1998...Dr. Jack Critchfield today announced his
plans to retire as chairman of the board of Florida Progress Corporation (NYSE:
FPC), effective June 30, 1998. In addition, the board elected President and CEO
Dick Korpan to succeed Critchfield as company chairman, effective July 1, 1998.
Critchfield joined Florida Power Corporation in 1983 as the vice president of
the utility's Central Florida Divisions. He went on to become the president of
Electric Fuels Corporation in 1987. In 1988, Critchfield became president and
chief operating officer of Florida Progress. He assumed the role of CEO in 1990
and in 1991 became the chairman of the board, a position he has held ever since.
"I have thoroughly enjoyed the 15 years I have spent working for Florida
Progress and its subsidiaries, and so it is with mixed emotions that I announce
my intentions to retire. I'm confident that we have in place an extremely
talented management team that will lead this company to great things," said
Critchfield.
Korpan joined Florida Progress in 1989 as executive vice president and chief
financial officer. He went on to become the president and chief operating
officer in 1991 and in 1996 also became the chairman and CEO of Florida Power.
In June 1997, Korpan assumed the role of president and CEO of Florida Progress
and remained as chairman of Florida Power.
"I'm very much looking forward to continuing the charge placed upon me by the
board of directors and shareholders of this company. I intend to work diligently
toward our goal to become a world-class energy services company in an
increasingly competitive market place," said Korpan.
Florida Progress Corporation (NYSE:FPC) is a FORTUNE 500 diversified utility
holding company with assets of $5.8 billion. Its principal subsidiary is Florida
Power Corporation, one of Florida's largest electric utilities serving 4.5
million residents and businesses in 32 counties in the central and northern
portions of the state. Diversified operations include coal mining, marine
operations and rail services.
###
