As filed with the Securities and Exchange Commission on October 19, 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):
October 16, 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. 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
September 30, 1998:
Florida Progress issued an Investor News report and a media News Release,
each dated October 16, 1998, to report an increase in its 1998 third-quarter
earnings. A copy of the Investor News report and the media News Release are
being filed herewith as Exhibits 99.(a) and 99.(b), respectively.
The following litigation updates are also being reported:
1. Metropolitan Dade County ("Dade") and Montenay Power Corp.("Montenay")
v. Florida Power Corporation, Circuit Court of the Eleventh Circuit
for Dade County, Florida, Case No 96-09598-CA-30.
Metropolitan Dade County and Montenay Power Corp. v. Florida Progress
Corporation, Florida Power Corporation and Electric Fuels Corporation,
U.S. District Court, Southern District, Miami Division, Florida, Case
No 96-594-CIV-LENARD.
In re: Petition for Declaratory Statement That Energy Payments Are
Limited to Analysis of Avoided Unit's Contractually Specified
Characteristics, Florida Public Service Commission, Docket No. 980283-
EQ
See prior discussion of this matter in the 1997 Form 10-K, Item 3,
paragraph 2, the first quarter 1998 Form 10-Q, Part 2, Item 1,
paragraph 2 and the second quarter 1998 Form 10-Q, Part 2, Item 1,
paragraph 3. On September 14, 1998 the Judge affirmed the order
granting Florida Power's Motion for Summary Judgment. On October 6,
1998, the FPSC denied the Florida Power Motion for Declaratory
Statement.
2. NCP Lake Power, Inc. ("Lake") v. Florida Power Corporation, Florida
Circuit Court, Fifth Judicial Circuit for Lake County, Case No.
9402354-CA-01
In re: Petition for Expedited Approval of Settlement Agreement With
Lake Cogen, Ltd., Public Service Commission, Docket No. 961477-EQ
In re: Petition for Declaratory Statement Regarding the Negotiated
Contract for Purchase of Firm Capacity and Energy between Florida
Power Corporation and Lake Cogen, Ltd., Florida Public Service
Commission, Docket No. 980509-EQ.
See prior discussion of this matter in the 1997 Form 10-K, Item 3,
paragraph 3, and the first quarter 1998 Form 10-Q, Part 2, Item 1,
paragraph 3. On April 9, 1998, Florida Power filed a petition with the
FPSC for a Declaratory Statement. Florida Power is seeking a
determination that energy payments due pursuant to the negotiated
contract are limited to amounts derived from an analysis of avoided
costs, based exclusively upon the contractually specified
characteristics. On October 6, 1998 the FPSC denied the petition.
In the Circuit Court action, a pre-trial conference was held on
October 1, 1998 and Court mandated mediation was conducted on October
6, with the parties reaching impasse. The bench trial is scheduled to
begin on November 2, 1998.
<PAGE>
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 October 16, 1998
reporting an increase in 1998 third-quarter earnings.
99.(b) Florida Progress media News Release dated October 16, 1998
reporting an increase in 1998 third-quarter 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. 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/ Pamela A. Saari
By:____________________________
Pamela A. Saari
Treasurer of each Registrant
Date: October 16, 1998
<PAGE>
EXHIBIT INDEX
Exhibit No. Description of Exhibit
99.(a) Florida Progress Investor News report dated October 16, 1998
reporting an increase in 1998 third-quarter earnings.
99.(b) Florida Progress media News Release dated October 16, 1998
reporting an increase in 1998 third-quarter earnings.
4
Florida Progress Corporation
Investor News
Analyst Contacts:
Greg Beuris (727) 820-5734
Lauran Willoughby (727) 820-5737
[LOGO OMITTED]
Florida Progress' third-quarter earnings per share up 15 percent
St. Petersburg, Florida, October 16, 1998 - Florida Progress Corporation
(NYSE:FPC), parent of St. Petersburg-based Florida Power Corporation, reported
third-quarter 1998 earnings of $117.3 million, or $1.21 per share, compared with
1997 third-quarter earnings from recurring operations (excluding one-time
nuclear outage costs) of $102.0 million, or $1.05 per share. The 15-percent
increase in earnings per share was due to continued hot weather during the
summer months as well as customer growth at Florida Power and improved results
from Electric Fuels Corporation, lead company for Florida Progress' diversified
operations.
Third-quarter earnings for 1997, including after-tax outage costs of $20.4
million, or $.21 per share, associated with Florida Power Corporation's Crystal
River Nuclear Plant, were $81.6 million, or $.84 per share. (See page 7, 1997
restatement schedule attached.)
FLORIDA POWER CORPORATION
Florida Power, the largest subsidiary of Florida Progress, earned $108.8
million, or $1.12 per share, on revenues of $795.6 million for the third quarter
of 1998, up 13 percent compared with third-quarter 1997 earnings from recurring
operations of $96.4 million, or $.99 per share, on revenues of $706.9 million.
Including the impact of the restated extended nuclear outage costs, Florida
Power's 1997 third-quarter earnings were $76.0 million, or $.78 per share.
The following is a reconciliation of Florida Power's third-quarter 1997 earnings
per share, as amended, with third-quarter 1998 earnings per share:
3 Months
Ended
September 30
------------
1997 EPS as amended $ 0.78
1997 Nuclear Outage 0.21
1997 EPS from recurring operations 0.99
Customer & non-weather usage growth 0.08
Estimated weather impact on sales 0.10
Operations & maintenance (0.02)
Depreciation & amortization (0.01)
Accelerated Tiger Bay amortization (0.04)
AFUDC & other 0.02
-----
1998 EPS from operations $ 1.12
=====
-- more --
<PAGE>
Page 2
Florida Progress Corporation
Investor News - 3rd quarter earnings
For the second straight quarter, Florida Power experienced a significant
increase in total system requirements due to continued hot summer temperatures.
System requirements for the third quarter of 1998 were 7.4 percent higher than
the third quarter of 1997.
Retail kilowatt-hour sales increased 7.1 percent over the same period a year
ago, driven primarily by the warmer weather. In addition to the weather, Florida
Power continues to benefit from the strong retail customer growth. The number of
retail customers served in the third quarter of 1998 was approximately 25,000,
or 2 percent, greater than the third quarter of 1997.
Wholesale kilowatt-hour sales, also benefiting from warmer weather, were nearly
60 percent higher than the third quarter of 1997. Most of the increase was due
to additional sales of short-term energy, along with higher sales to Florida
Power's largest wholesale customer. Short-term energy sales have a minimal
impact on Florida Power's earnings.
Florida Power accelerated the amortization of the Tiger Bay regulatory asset by
$7 million, which reduced the utility's third quarter results by $.04 a share.
ELECTRIC FUELS CORPORATION
Electric Fuels earned $10.5 million or $.11 per share, during the third quarter,
compared with $9.1 million or $.09 per share, in 1997. The improvement in
earnings was primarily attributable to improved results at the Inland Marine
business unit.
Earnings for the Inland Marine group were up $1.3 million over the third quarter
of 1997. The increased earnings were largely attributable to the expansion of
the MEMCO barge fleet.
The Rail Services group third-quarter 1998 results increased approximately $.4
million compared with a year ago. The improved results were primarily due to
continued strong demand for railcar parts and services from the major railroads.
Partially offsetting the earnings improvement were lower earnings from the
recycling division. The recycling division was negatively impacted by a decline
in market prices for scrap steel. Lower market prices have resulted from an
increase in finished steel imports and a decline in scrap steel exports.
Electric Fuels' Energy and Related Services group earnings were essentially
unchanged for the third quarter of 1998, compared with the third quarter of
1997.
Florida Progress (NYSE:FPC) is a Fortune 500 diversified utility holding company
with assets of $6.0 billion. Its principal subsidiary is Florida Power, the
state's second largest electric utility serving 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 Nine Months Ended Twelve Months Ended
September 30 September 30 September 30
------------------ ----------------- ------------------
1998 1997 1998 1997 1998 1997
-------- ------- -------- -------- --------- --------
REVENUES:
<S> <C> <C> <C> <C> <C> <C>
Electric utility $795.6 $706.9 $2,024.6 $1,857.9 $2,615.1 $2,420.8
Diversified 235.9 215.6 697.5 609.4 955.3 821.4
- -------------------------------------------------------------------------------------------
1,031.5 922.5 2,722.1 2,467.3 3,570.4 3,242.2
- -------------------------------------------------------------------------------------------
EXPENSES:
Electric utility:
Fuel 188.9 129.5 434.0 343.2 548.9 429.9
Purchased power 122.3 133.7 332.1 377.7 445.0 521.1
Energy conservation cost 24.5 21.7 60.1 49.3 77.8 60.8
Operations and maintenance 108.3 105.5 326.9 318.6 430.7 427.8
Extended nuclear outage -
O&M and replacement power costs - 33.1 5.1 130.9 47.4 130.9
Depreciation and amortization 89.5 78.8 260.9 227.3 359.5 310.0
Taxes other than income taxes 57.5 53.2 158.4 149.9 202.1 190.4
- -------------------------------------------------------------------------------------------
591.0 555.5 1,577.5 1,596.9 2,111.4 2,070.9
- -------------------------------------------------------------------------------------------
Diversified:
Cost of sales 201.0 187.0 587.6 527.9 813.6 707.9
Provision for loss on coal
properties - - - - - 40.9
Loss related to life insurance
subsidiary - - - - 96.3 1.3
Other 11.8 14.1 43.6 43.8 61.8 61.6
- -------------------------------------------------------------------------------------------
212.8 201.1 631.2 571.7 971.7 811.7
- -------------------------------------------------------------------------------------------
INCOME FROM OPERATIONS 227.7 165.9 513.4 298.7 487.3 359.6
- -------------------------------------------------------------------------------------------
INTEREST EXPENSE AND OTHER:
Interest expense 46.2 42.3 141.2 112.4 187.5 144.9
Allowance for funds used during
construction (4.4) (2.5) (12.4) (6.9) (15.2) (8.9)
Preferred dividend requirements
of Florida Power .3 .3 1.1 1.1 1.5 1.7
(Gain) on sale of business - - - - - (44.2)
Other expense (income) 1.2 (1.6) 1.3 (1.9) 4.7 (1.0)
- -------------------------------------------------------------------------------------------
43.3 38.5 131.2 104.7 178.5 92.5
- -------------------------------------------------------------------------------------------
INCOME FROM CONTINUING OPERATIONS
BEFORE INCOME TAXES 184.4 127.4 382.2 194.0 308.8 267.1
Income taxes 67.1 45.8 136.6 64.1 138.9 91.6
- ------------------------------------------------------------------------------------------
INCOME FROM CONTINUING OPERATIONS 117.3 81.6 245.6 129.9 169.9 175.5
DISCONTINUED OPERATIONS, NET OF
INCOME TAXES - - - - - (1.3)
-------------------------------------------------------------------------------------------
NET INCOME 117.3 81.6$ 245.6$ 129.9 169.9 174.2
- -------------------------------------------------------------------------------------------
AVERAGE SHARES OF COMMON
STOCK OUTSTANDING 97.0 97.1 97.0 97.1 97.1 97.0
- -------------------------------------------------------------------------------------------
EARNINGS (LOSS) PER AVERAGE COMMON SHARE:
CONTINUING OPERATIONS $1.21 $.84 $2.53 $1.34 $1.75 $1.81
DISCONTINUED OPERATIONS - - - - - (.01)
- -------------------------------------------------------------------------------------------
$1.21 $.84 $2.53 $1.34 $1.75 $1.80
- -------------------------------------------------------------------------------------------
Regarding these financial statements:
In June 1998, Florida Power restated its financial results for the second, third
and fourth quarters of 1997 to reflect recognition of the extended nuclear
outage costs as incurred. The change affected the financial results for the
interim reporting periods but did not have any affect on the results for the
fiscal year ended 1997. 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. Financial
results for the twelve months ended September 30, 1997 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's1997 Annual Report to
shareholders. This report does not constitute an offer to sell or the
solicitation of an offer to buy any securities.
</TABLE>
<PAGE>
<TABLE>
FLORIDA PROGRESS CORPORATION
CONSOLIDATED BALANCE SHEETS Page 4
(UNAUDITED) (In millions)
September 30
----------------------
ASSETS 1998 1997
--------- ---------
PROPERTY, PLANT AND EQUIPMENT:
<S> <C> <C>
Electric utility plant in service and held for future use $6,286.8 $6,148.0
Less - Accumulated depreciation 2,676.7 2,494.1
Accumulated decommissioning for nuclear plant 246.6 215.8
Accumulated dismantlement for fossil plants 130.1 127.6
- -------------------------------------------------------------------------------
3,233.4 3,310.5
Construction work in progress 322.9 224.9
Nuclear fuel, net of amortization of $371.3 in 1998
and $356.7 in 1997 51.8 65.4
- -------------------------------------------------------------------------------
Net electric utility plant 3,608.1 3,600.8
Other property, net of depreciation of $230.8 in 1998
and $228.3 in 1997 521.5 367.2
- -------------------------------------------------------------------------------
4,129.6 3,968.0
- -------------------------------------------------------------------------------
CURRENT ASSETS:
Cash and equivalents 21.1 15.2
Accounts receivable, net 435.0 361.7
Inventories, primarily at average cost:
Fuel 60.5 78.1
Utility materials and supplies 91.0 94.4
Diversified materials 142.3 133.0
Underrecovery of fuel cost 14.5 69.7
Deferred income taxes 47.3 13.4
Other 50.9 20.8
- -------------------------------------------------------------------------------
862.6 786.3
- -------------------------------------------------------------------------------
OTHER ASSETS:
Investments:
Loans receivable, net 31.0 35.1
Marketable securities - 257.2
Nuclear plant decommissioning fund 289.7 248.1
Joint ventures and partnerships 60.2 49.1
Deferred insurance policy acquisition costs - 123.7
Deferred purchased power contract termination costs 325.5 369.8
Other 326.6 224.7
- -------------------------------------------------------------------------------
1,033.0 1,307.7
- -------------------------------------------------------------------------------
$6,025.2 $6,062.0
- -------------------------------------------------------------------------------
CAPITAL AND LIABILITIES
CAPITAL:
Common stock equity $1,865.1 $1,904.3
Cumulative preferred stock of Florida Power 33.5 33.5
Long-term debt 2,348.1 2,343.4
- -------------------------------------------------------------------------------
4,246.7 4,281.2
- -------------------------------------------------------------------------------
CURRENT LIABILITIES:
Accounts payable 208.7 221.8
Customers' deposits 101.2 96.0
Income taxes payable 21.1 38.4
Accrued other taxes 71.6 71.8
Accrued interest 47.4 47.7
Other 70.0 81.6
- -------------------------------------------------------------------------------
520.0 557.3
Notes payable 183.2 23.6
Current portion of long-term debt 71.4 15.0
- -------------------------------------------------------------------------------
774.6 595.9
- -------------------------------------------------------------------------------
DEFERRED CREDITS AND OTHER LIABILITIES:
Deferred income taxes 601.6 450.6
Unamortized investment tax credits 79.4 87.5
Insurance policy benefit reserves - 369.0
Other postretirement benefit costs 114.0 106.6
Other 208.9 171.2
- -------------------------------------------------------------------------------
1,003.9 1,184.9
- -------------------------------------------------------------------------------
$6,025.2 $6,062.0
- -------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------
Florida Progress Corporation
Selected Financial Information (Unaudited) Page 5
Three Months Ended Percent Nine Months Ended Percent Twelve Months Ended Percent
September 30 Positive September 30 Positive September 30 Positive
1998 1997 (Negative) 1998 1997 (Negative) 1998 1997 (Negative)
-------- -------- ------------ ------ -------- ------------ ------- -------- ---------
Earnings (Loss) Per Share:
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Florida Power Corporation $ 1.12 $ .99 13.1 $ 2.29 $ 2.04 12.3 $ 2.73 $ 2.48 10.1
------- ------ ------ ----- ----- ---- ---- ----- ----
Electric Fuels Corporation .11 .09 22.2 .30 .22 36.4 .41 .30 36.7
Corporate and other (.02) (.03) 33.3 (.06) (.10) 40.0 (.16) (.13) (23.1)
------- ------- ------ ------ ------ ----- ------ ------ ------
Diversified Continuing before non-
recurring .09 .06 50.0 .24 .12 100.0 .25 .17 47.1
------- -------- ------ ------ ------ ------ ------ ------ ------
Continuing Ops before non-recurring 1.21 1.05 15.2 2.53 2.16 17.1 2.98 2.65 12.5
Impact of nuclear outage - (.21) - - (.82) - (.27) (.82) 67.1
Provision for loss on coal properties- - - - - - - - (.26) -
Gain on sale of business - - - - - - - .24 -
Loss related to life insurance subsidiary - - - - - - (.96) - -
------- -------- ------ ------ ------ ----- ------ ----- ------
Total Continuing Operations 1.21 .84 44.0 2.53 1.34 88.8 1.75 1.81 (3.3)
Discontinued Operations - - - - - - - (.01) -
======= ======== ====== ====== ======
$1.21 $.84 44.0 $2.53 $1.34 88.8 $1.75 $1.80 (2.8)
======= ======== ====== ====== ====== ==== ====
Avg. shares outstanding (millions) 97.0 97.1 (.1) 97.0 97.1 (.1) 97.1 97.0 .1
Dividends per share $.535 $.525 1.9 $1.605 $1.575 1.9 $2.13 $2.09 1.9
Book value per share:
Florida Power Corporation $18.99 $18.54 2.4
Consolidated $19.22 $19.62 (2.0)
September 30 September 30
September 30 1998 1997
1998 1997 Amount Percent Amount Percent
-------- -------- ------------------------------------
Equity investments (percent): Capitalization (in millions):
Florida Power Corporation 89 87 Common stock $1,865.1 41.4 $1,904.3 44.1
Electric Fuels Corporation 11 9 Preferred stock 33.5 .7 33.5 .8
Mid-Continent Life Insurance Co. - 4 Long-term debt 2,348.1 52.2 2,343.4 54.2
-------- --------
Total 100 100 Short-term debt 254.6 5.7 38.6 .9
-------- --------
------------------------------------
Total $4,501.3 100.0 $4,319.8 100.0
------------------------------------
Note: In June 1998, Florida Power restated its financial results for the
second, third and fourth quarters of 1997 to reflect recognition of
the extended nuclear outage costs as incurred. The change affected the
financial results for the interim reporting periods but did not have
any affect on results for the fiscal year ended 1997. Financial
results for the twelve months ended 1997 reflect the recapitalization
of the spin-off company, Echelon International, and its associated
treatment as discontinued operations.
</TABLE>
<PAGE>
<TABLE>
Florida Power Corporation
Selected Statistical Data (Unaudited) Page 6
(In millions, except billing degree days)
Three Months Ended Nine Months Ended Twelve Months Ended
September 30 Percent September 30 Percent September 30 Percent
1998 1997 Change 1998 1997 Change 1998 1997 Change
-------- ------- ---------- --------- --------- --------- --------- --------- ----------
Revenues:
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Residential $445.0 $397.0 12.1 $1,089.2 $994.0 9.6 $1,410.5 $1,292.4 9.1
Commercial 174.4 156.7 11.3 451.8 426.3 6.0 593.9 561.4 5.8
Industrial 55.5 51.0 8.8 158.5 158.0 .3 208.4 210.2 (.9)
Other retail sales 39.1 34.9 12.0 104.1 98.8 5.4 138.7 132.6 4.6
------- -------- ------- -------- ------ ------- -------
714.0 639.6 11.6 1,803.6 1,677.1 7.5 2,351.5 2,196.6 7.1
Sales for resale 74.3 47.7 55.8 155.0 105.1 47.5 200.6 138.4 44.9
------- -------- ------- -------- ------ ------- -------
788.3 687.3 14.7 1,958.6 1,782.2 9.9 2,552.1 2,335.0 9.3
Other electric revenues 18.1 23.2 (22.0) 87.4 75.7 15.5 87.7 78.5 11.7
Deferred fuel (10.8) (3.6) - (21.4) - - (24.7) 7.3 -
------- -------- ------- -------- ----- -------- ------- -----
Total $795.6 $706.9 12.5 $2,024.6 $1,857.9 9.0 $2,615.1 $2,420.8 8.0
------- -------- ------- -------- ----- -------- -------
Kilowatt-hour sales billed:
Residential 5,260.1 4,801.4 9.6 12,675.6 11,461.4 10.6 16,294.0 14,800.0 10.1
Commercial 2,880.9 2,651.6 8.6 7,409.5 6,915.0 7.2 9,751.8 9,101.7 7.1
Industrial 1,129.3 1,058.5 6.7 3,232.4 3,182.5 1.6 4,237.7 4,211.0 .6
Other retail sales 682.6 629.8 8.4 1,820.5 1,717.0 6.0 2,428.8 2,306.9 5.3
------- ------- ------ ------- ------- ------- -------
9,952.9 9,141.3 8.9 25,138.0 23,275.9 8.0 32,712.3 30,419.6 7.5
Sales for resale 1,390.1 700.4 98.5 2,779.1 1,539.4 80.5 3,679.3 2,161.4 70.2
-------- ------- ------- --------- ------ -------- -------
Total electric
sales 11,343.0 9,841.7 15.3 27,917.1 24,815.3 12.5 36,391.6 32,581.0 11.7
-------- ------- ------- --------- ------ --------- --------
System Requirements(KWH) 11,403 10,617 7.4 29,193 26,672 9.5 37,126 34,350 8.1
KWH Sales (Billed & Unbilled):
Retail 9,873 9,216 7.1 25,738 23,742 8.4 32,862 30,623 7.3
Wholesale 1,370 859 59.5 3,051 1,755 73.8 3,728 2,212 68.5
Billing Degree Days:
Cooling 2,454 2,220 10.5 3,297 2,715 21.4 4,016 3,326 20.7
Heating - - - 532 309 72.2 666 407 63.6
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>
<PAGE>
<TABLE>
<CAPTION>
Florida Progress Corporation
Selected Financial Information (Unaudited) Page 7
(In millions, except per share amounts)
Three Months Three Months Three Months Three Months Twelve Months
Ended Ended Ended Ended Ended
March 31, 1997 June 30, 1997 Sept. 30, 1997 Dec. 31, 1997 Dec. 31, 1997
1997 as amended:
<S> <C> <C> <C> <C> <C>
Florida Power:
Net income $ 41.2 $ 0.9 $ 76.0 $ 16.3 $ 134.4
Earnings per share 0.42 0.01 0.78 0.17 1.38
Florida Progress:
Net income (loss) 42.0 6.3 81.6 (75.6) 54.3
Earnings (loss) per share 0.43 0.07 0.84 (0.78) 0.56
1997 as originally reported:
Florida Power:
Net income (loss) $ 41.2 ($ 43.6) $ 96.4 $ 40.4 $ 134.4
Earnings (loss) per share 0.42 (0.45) 0.99 0.42 1.38
Florida Progress:
Net income (loss) 42.0 (38.2) 102.0 (51.5) 54.3
Earnings (loss) per share 0.43 (0.39) 1.05 (0.53) 0.56
</TABLE>
EXHIBIT 99.(b)
Florida Progress Corporation
News Release
Corporate Relations Department, St. Petersburg, Florida
FOR IMMEDIATE RELEASE Media contact:
Contact: Mary Estes
(727) 820-5348
FLORIDA PROGRESS REPORTS THIRD QUARTER EARNINGS
St. Petersburg, Florida, October 16, 1998 - Florida Progress Corporation
(NYSE:FPC), parent of St. Petersburg-based Florida Power Corporation, reported
third-quarter 1998 earnings of $117.3 million, or $1.21 per share. This compares
with 1997 third-quarter earnings from recurring operations (excluding one-time
nuclear outage costs) of $102.0 million, or $1.05 per share. The 15-percent
increase in earnings was primarily due to above average retail sales as a result
of the hot weather during the summer months as well as solid customer growth at
Florida Power and improved results from Electric Fuels Corporation, the lead
company for Florida Progress' diversified operations.
Third-quarter earnings for 1997, including after-tax outage costs of $20.4
million, or $.21 per share, associated with Florida Power Corporation's Crystal
River Nuclear Plant, were $81.6 million, or $.84 per share.
FLORIDA POWER CORPORATION
Florida Power, the largest subsidiary of Florida Progress, earned $108.8
million, or $1.12 per share, on revenues of $795.6 million for the third quarter
of 1998. This compares with third-quarter 1997 earnings from recurring
operations of $96.4 million, or $.99 per share, on revenues of $706.9 million.
Including the impact of the extended nuclear outage costs, Florida Power's 1997
third-quarter earnings were $76.0 million, or $.78 per share.
For the second straight quarter, Florida Power experienced a significant
increase in demand for electricity due to continued higher than normal summer
temperatures. Retail kilowatt-hour sales increased 7.1 percent over the same
period a year ago, driven primarily by the warmer weather. In addition to the
weather, Florida Power continues to benefit from the strong retail customer
growth as well as growth in usage per customer. Florida Power has 25,000, or 2
percent, more customers than it did this time last year.
ELECTRIC FUELS CORPORATION
Electric Fuels earned $10.5 million, or $.11 per share, during the third
quarter. This compares with $9.1 million, or $.09 per share, in 1997. The
increase in earnings was primarily attributable to improved results at the
Inland Marine business unit.
Earnings for the Inland Marine group were up $1.3 million over the third quarter
of 1997. The increased earnings were largely due to the expansion of the MEMCO
barge.
Florida Progress (NYSE:FPC) is a Fortune 500 diversified utility holding company
with assets of $6.0 billion. Its principal subsidiary is Florida Power, the
state's second largest electric utility serving about 1.3 million customers.
Diversified operations include coal mining, marine operations and rail services.
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- ---------------------------------------------------------------------------------------------------------------------
Three Months Ended Twelve Months Ended
September 30 September 30
-------------------------------------------------------------------------------
1998 1997 1998 1997
----------------- ----------------- ---------------- -----------------
<S> <C> <C> <C> <C>
Revenues $1,031,500,000 $922,500,000 $3,570,400,000 $3,242,200,000
----------------- ----------------- ---------------- -----------------
Continuing operations before
non-recurring items 117,300,000 102,000,000 289,400,000 257,600,000
Non-recurrring items - (20,400,000) (119,500,000) (82,100,000)
----------------- ----------------- ---------------- -----------------
Continuing operations 117,300,000 81,600,000 169,900,000 175,500,000
Discontinued operations - - - (1,300,000)
-------------------------------------- -------------------------------------
Net income $117,300,000 81,600,000 $169,900,000 $174,200,000
================= ================= ================ =================
Earnings (loss) per share (EPS):
Income from continuing operations
before non-recurring items $ 1.21 $ 1.05 $ 2.98 $ 2.65
Non-recurring items - (.21) (1.23) (.84)
----------------- ----------------- ---------------- -----------------
Continuing operations 1.21 .84 1.75 1.81
Discontinued operations - - - (.01)
----------------- ----------------- ---------------- -----------------
Consolidated $ 1.21 $ .84 $ 1.75 $ 1.80
================= ================= ================ =================
Average Common
Shares Outstanding 97,045,233 97,061,543 97,052,832 97,045,345
Note: In June 1998, Florida Power restated its financial results for the second,
third and fourth quarters of 1997 to reflect recognition of the extended nuclear
outage costs as incurred. The change affected the financial results for the
interim reporting periods but did not have any affect on results for the fiscal
year ended 1997. Financial results for the twelve months ended 1997 reflect the
recapitalization of the spin-off company, Echelon International, and its
associated treatment as discontinued operations.
###
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