As filed with the Securities and Exchange Commission on April 21, 1999
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 16, 1999
<TABLE>
<CAPTION>
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.
<S> <C> <C> <C>
1-8349 FLORIDA PROGRESS CORPORATION Florida 59-2147112
One Progress Plaza
St. Petersburg, Florida 33701
Telephone (727) 824-6400
1-3274 FLORIDA POWER CORPORATION Florida 59-0247770
One Progress Plaza
St. Petersburg, Florida 33701
Telephone (727) 820-5151
</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 period ended March 31, 1999.
Florida Progress issued an Investor News report dated April 16, 1999
reporting 1999 first quarter earnings. A copy of the Investor News report is
being furnished herewith as Exhibit 99.(a).
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 16,
1999 reporting 1999 first 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.
FLORIDA PROGRESS CORPORATION
FLORIDA POWER CORPORATION
/s/Pamela A. Saari
By:____________________________
Pamela A. Saari
Treasurer of each Registrant
Date: April 16, 1999
<PAGE>
EXHIBIT INDEX
Exhibit No. Description of Exhibit
99.(a) Florida Progress Investor News report dated April 16,
1999 reporting 1999 first quarter earnings.
Exhibit 99.(a)
Florida Progress Corporation
Investor News
(LOGO OMITTED) Analyst Contacts:
Greg Beuris (727) 820-5734
Lauran Willoughby (727) 820-5737
Florida Progress Reports Strong First Quarter Results
St. Petersburg, Florida, April 16, 1999 - Florida Progress Corporation
(NYSE:FPC) reported first-quarter 1999 earnings of $67.6 million, or $.69 per
share, compared with 1998 first-quarter earnings of $50.5 million, or $.52 per
share.
FLORIDA POWER CORPORATION
Florida Power, the largest subsidiary of Florida Progress, reported earnings of
$.64 per share for the first quarter of 1999, compared with $.47 per share for
the first quarter of 1998.
Florida Power's total kilowatt-hour sales increased 5.5 percent during the first
quarter of 1999, compared with 1998. Despite mild weather, retail sales were up
1.6 percent due to residential customer growth and strong usage growth among
commercial customers.
Wholesale sales, which increased 48.9 percent over 1998, accounted for most of
the improvement in total kilowatt-hour sales for the quarter. Most of the
increase in wholesale sales was due to higher sales in the short-term energy
market and higher sales to Florida Power's largest wholesale customer, Seminole
Electric Cooperative.
Short-term energy sales have a minimal impact on earnings because the net
benefit of the sales is credited to retail customers through the fuel cost
recovery clause. In January 1999, Florida Power began supplying additional power
to Seminole Electric, the largest electric cooperative in the state of Florida,
under a three-year contract.
Operations and maintenance expenses decreased $5.3 million, compared with the
same quarter last year. Lower operations and maintenance costs resulted
primarily from the timing of certain generation plant maintenance projects.
A reconciliation of Florida Power's 1999 first-quarter earnings is as follows:
1998 First Quarter EPS $0.47
Customer & non-weather usage growth 0.13
Estimated weather impact on sales (0.06)
Operations & maintenance 0.04
1998 nuclear outage replacement fuel 0.03
Gain on sale of property 0.03
1999 First Quarter EPS $0.64
=====
- more -
<PAGE>
ELECTRIC FUELS CORPORATION
Electric Fuels earned $.09 per share in the first quarter, compared with $.08
per share last year. The increase was due primarily to improved operating
results for the Energy and Related Services group, which offset lower earnings
at the Rail Services and Inland Marine Transportation business units.
Earnings at the Energy and Related Services group were up $3.0 million. The
improvement was due largely to alternative fuel tax credits, which are generated
from the production and sale of a synthetic fuel.
Earnings from the Inland Marine Transportation group were down $1.0 million due
to adverse weather conditions experienced during January and February. Prolonged
icing conditions in January and high water conditions in February disrupted
barge operations and limited tow capacity.
Results in the Rail Services group decreased $1.6 million when compared with
1998, due to several factors. Scrap steel prices during the first quarter of
1999 were approximately 40 percent below 1998 first-quarter prices, resulting in
reduced margins at its recycling operations. Scrap steel prices began falling in
mid-1998 under the pressure of inexpensive finished steel imports. Also
contributing to the lower results for the group was a temporary decrease in
track work orders, which can fluctuate as railroads often reschedule the timing
of track repair work. Partially offsetting the lower results was a strong demand
for rail car parts throughout the quarter.
A new track work facility was opened in Sherman, Texas in the first quarter. As
a result, certain costs associated with the start-up of the new facility were
expensed during the quarter. The plant was built to meet the needs of the major
railroads in that region.
Management believes the outlook for 1999 remains positive for the diversified
operations despite the temporary conditions mentioned above. During March, track
work orders returned to expected levels and river conditions returned to normal.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of
1995: This news release contains a forward-looking statement regarding the 1999
outlook for Florida Progress Corporation's diversified operations. This
statement involves risks and uncertainties that could cause actual results or
outcomes to differ materially from expectations. Key factors that could have a
direct bearing on the company's ability to attain these projections include
economic and weather conditions affecting the demand for and the supply of
Electric Fuels Corporation's barge, rail and other services; successful cost
containment efforts; legislative and regulatory developments, and other factors
described in the company's Securities and Exchange Commission filings.
Florida Progress (NYSE:FPC) is a Fortune 500 diversified utility holding company
with assets of $6.2 billion. Its principal subsidiary is Florida Power, one of
the nation's leading electric utilities committed to serving its 1.3 million
customers in Florida with competitively priced energy, excellent reliability,
and outstanding customer service. Diversified operations include rail services,
marine operations and coal mining.
<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
-------------------------- --------------------
1999 1998 1999 1998
------------ ------------- ----------- --------
REVENUES:
<S> <C> <C> <C> <C>
Electric utility $ 570.7 $ 565.2 $ 2,653.7 $ 2,459.8
Diversified 249.7 222.3 999.5 896.6
- ----------------------------------------------------------------------------------------------------------------
820.4 787.5 3,653.2 3,356.4
- ----------------------------------------------------------------------------------------------------------------
EXPENSES:
Electric utility:
Fuel 113.7 109.2 600.2 472.4
Purchased power 90.3 99.0 425.1 462.4
Energy conservation cost 17.1 16.6 80.1 72.6
Operations and maintenance 97.1 102.4 466.3 422.3
Extended nuclear outage - O&M and replacement power costs - 5.1 - 170.5
Depreciation and amortization 80.8 81.0 346.9 332.6
Taxes other than income taxes 51.9 49.5 206.0 195.0
- ----------------------------------------------------------------------------------------------------------------
450.9 462.8 2,124.6 2,127.8
- ----------------------------------------------------------------------------------------------------------------
Diversified:
Cost of sales 225.1 193.8 858.5 775.9
Loss related to life insurance subsidiary - - - 97.6
Other 14.6 12.7 58.2 58.2
- ----------------------------------------------------------------------------------------------------------------
239.7 206.5 916.7 931.7
- ----------------------------------------------------------------------------------------------------------------
INCOME FROM OPERATIONS 129.8 118.2 611.9 296.9
- ----------------------------------------------------------------------------------------------------------------
INTEREST EXPENSE AND OTHER:
Interest expense 45.0 47.3 184.8 171.7
Allowance for funds used during construction (5.1) (3.9) (18.1) (11.5)
Other expense (income) (4.3) - (4.5) 3.2
- ----------------------------------------------------------------------------------------------------------------
35.6 43.4 162.2 163.4
- ----------------------------------------------------------------------------------------------------------------
INCOME BEFORE INCOME TAXES 94.2 74.8 449.7 133.5
Income taxes 26.6 24.3 150.9 70.7
- ----------------------------------------------------------------------------------------------------------------
NET INCOME 67.6 $ 50.5 298.8 62.8
- ----------------------------------------------------------------------------------------------------------------
AVERAGE SHARES OF COMMON
STOCK OUTSTANDING 97.5 97.1 97.2 97.1
- ----------------------------------------------------------------------------------------------------------------
EARNINGS PER AVERAGE COMMON SHARE (BASIC and DILUTED) $.69 $.52 $3.08 $.65
- -----------------------------------------------------------------------------------------------------------------
</TABLE>
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. These are
interim statements. Reference should be made to Florida Progress Corporation's
1998 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>
Page 4
Florida Progress Corporation
Selected Financial Information (Unaudited)
Three Months Ended Percent Twelve Months Ended Percent
March 31 Positive March 31 Positive
1999 1998 (Negative) 1999 1998 (Negative)
------------ ------------ --------- ----------- ------------ -----------
Earnings (Loss) Per Share:
<S> <C> <C> <C> <C> <C> <C>
Florida Power Corporation $.64 $.47 36.2 $2.73 $2.48 10.1
------------ ------------ ----------- ------------
Electric Fuels Corporation .09 .08 12.5 .44 .38 15.8
Corporate and other (.04) (.03) (33.3) (.09) (.20) 55.0
------------ ------------ ----------- ------------
Diversified Continuing before non-recurring .05 .05 - .35 .18 94.4
------------ ------------ ----------- ------------
Continuing Ops before non-recurring .69 .52 32.7 3.08 2.66 15.8
Impact of nuclear outage - - - - (1.05) -
Loss related to life insurance subsidiary - - - - (.96) -
------------ ------------ ----------- ------------
Total $.69 $.52 32.7 $3.08 $.65 373.8
============ ============ =========== ============
Avg. shares outstanding (millions) 97.5 97.1 .4 97.2 97.1 .1
Dividends per share $.545 $.535 1.9 $2.15 $2.11 1.9
Book value per share:
Florida Power Corporation $18.73 $18.18 3.0
Consolidated $19.39 $18.28 6.1
March 31 March 31
March 31 1999 1998
1999 1998 Amount Percent Amount Percent
------------ ------------ ------------------------------------------------
Equity investments (percent): Capitalization (in millions):
<S> <C> <C> <C> <C> <C>
Florida Power Corporation 88 90 Common stock $1,897.3 40.9 $1,773.9 39.8
Electric Fuels Corporation 12 10 Preferred stock 33.5 .7 33.5 .8
------------ ------------
Total 100 100 Long-term debt 2,300.4 49.6 2,328.0 52.2
------------ ------------
Short-term debt 405.3 8.8 323.2 7.2
------------------------------------------------
Total $4,636.5 100.0 $4,458.6 100.0
------------------------------------------------
</TABLE>
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.
<PAGE>
<TABLE>
<CAPTION>
Florida Power Corporation
Selected Statistical Data (Unaudited) Page 5
(In millions, except billing degree days)
Three Months Ended Twelve Months Ended
March 31 Percent March 31 Percent
1999 1998 Change 1999 1998 Change
------------ ----------- ----------- ------------ ------------ --------
Revenues:
<S> <C> <C> <C> <C> <C> <C>
Residential (1) $298.7 $308.7 (3.2) $1,414.6 $1,333.0 6.1
Commercial 131.4 123.7 6.2 616.6 567.9 8.6
Industrial 49.3 47.8 3.1 215.9 203.8 5.9
Other retail sales 31.1 30.0 3.7 143.4 133.6 7.4
------------ ----------- ------------ ------------
510.5 510.2 .1 2,390.5 2,238.3 6.8
Wholesale Sales 48.8 36.9 32.2 217.7 150.5 44.7
------------ ----------- ------------ ------------
559.3 547.1 2.2 2,608.2 2,388.8 9.2
Other electric revenues (2) 23.6 21.4 10.3 69.2 84.9 (18.5)
Deferred fuel (3) (12.2) (3.3) - (23.7) (13.9) -
------------ ----------- ------------ ------------
Total $570.7 $565.2 1.0 $2,653.7 $2,459.8 7.9
============ =========== ============ ============
Kilowatt-hour sales billed:
Residential 3,418.8 3,555.8 (3.9) 16,389.3 15,339.3 6.8
Commercial 2,178.2 2,030.9 7.3 10,146.6 9,293.8 9.2
Industrial 1,027.6 982.9 4.5 4,420.1 4,120.8 7.3
Other retail sales 559.8 529.9 5.6 2,515.5 2,337.9 7.6
------------ ----------- ------------ ------------
7,184.4 7,099.5 1.2 33,471.5 31,091.8 7.7
Wholesale Sales 1,007.6 655.2 53.8 4,216.9 2,562.9 64.5
------------ ----------- ------------ ------------
Total electric sales 8,192.0 7,754.7 5.6 37,688.4 33,654.7 12.0
============ =========== ============ ============
System Requirements (KWH) 8,024 7,844 2.3 37,943 34,928 8.6
KWH Sales (Billed & Unbilled):
Retail 7,209 7,098 1.6 33,562 31,176 7.7
Wholesale 968 650 48.9 4,140 2,645 56.5
------------ ----------- ------------ ------------
8,177 7,748 5.5 37,702 33,821 11.5
============ =========== ============ ============
Billing Degree Days:
Cooling - 25 (100.0) 4,134 3,434 20.4
Heating 329 462 (28.8) 424 609 (30.4)
</TABLE>
Note:
(1)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.
(2)In the 4th quarter of 1998, the FPSC approved the establishment of a
regulatory liability for 1998 deferred earnings, which resulted in a $10
million charge to Other electric revenues. Other electric revenues
include unbilled revenues.
(3)Revenues include amounts resulting from fuel, purchased power, and energy
conservation clauses; which are designed to permit full recovery of these
costs.
