<PAGE> 1
Florida Progress Corporation
Investor News
Analyst Contacts:
Greg Beuris (727) 820-5734
Lauran Willoughby (727) 820-5737
FLORIDA PROGRESS' 2ND QUARTER RESULTS UP SIGNIFICANTLY
EARNINGS ESTIMATE RAISED FOR 2000
ST. PETERSBURG, FLORIDA, AUGUST 1, 2000 - Florida Progress Corporation
(NYSE:FPC) reported second-quarter 2000 earnings of $109.9 million, or $1.11 per
share, compared with 1999 second-quarter earnings of $76.6 million, or $.78 per
share.
A RECONCILIATION OF FLORIDA PROGRESS' 2000 SECOND-QUARTER EARNINGS PER SHARE IS
AS FOLLOWS:
1999 FLORIDA PROGRESS 2ND QTR EPS $ .78
FLORIDA POWER
Sales of electricity & other revenues .09
Operations & maintenance .07
Other, net (.02)
-----
.14
ELECTRIC FUELS .21
CORPORATE & OTHER (.02)
-----
2000 FLORIDA PROGRESS 2ND QTR EPS $1.11
=====
FLORIDA POWER CORPORATION
Florida Power reported earnings of $.81 per share for the second quarter of
2000, compared with $.67 per share for the same period last year. The improved
earnings were due primarily to higher kilowatt-hour sales and lower operation
and maintenance expense.
Florida Power's total kilowatt-hour sales increased 4.7 percent during the
second quarter of 2000, compared with 1999. The improvement was primarily due to
strong customer growth and a return to more normal temperatures.
Retail sales were up 5.6 percent as Florida Power provided electric service to
approximately 30,000 new customers during the second quarter of 2000 compared
with last year. Weather during the second quarter returned to normal compared to
the second quarter of 1999. Cooling degree days were 51 percent higher this year
when compared with the same quarter last year.
Operation and maintenance expense was down $11.3 million during the quarter.
Most of the decrease is due primarily to the timing of planned maintenance and
reliability projects, most of which are expected to occur later this year.
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<PAGE> 2
Page 2
Florida Progress Corporation
Investor News - Second Quarter Earnings
ELECTRIC FUELS CORPORATION
Electric Fuels earned $.36 per share in the second quarter, compared with $.15
per share during the same period last year. Most of the improvement in earnings
came from the Energy & Related Services group, which includes the company's
synthetic fuel operations.
Earnings at the Energy and Related Services group were up $24.7 million, of
which $11.1 million was due to the timing of the recognition of alternative fuel
tax credits. The remaining amount of the increase was due primarily to higher
synthetic fuel sales during the quarter compared with last year. Electric Fuels
has interests in nine synthetic fuel plants, four of which were relocated and
began operation during the first six months of 2000.
Second-quarter sales of the coal-based synthetic fuel were approximately 1.4
million net tons, compared with .3 million net tons during the same period last
year. Total synthetic fuel sales for 2000 are expected to be approximately 5
million net tons compared with 1.6 million net tons sold in 1999.
Earnings from the Inland Marine Transportation group were up $1.3 million during
the quarter when compared to the same period last year. A larger barge fleet and
more favorable weather conditions more than offset the effect of higher diesel
fuel prices during the second quarter of 2000 compared to last year.
Results in the Rail Services group totaled $1.9 million for the quarter, a
decrease of $3.8 million when compared to 1999. The decrease is the result of
weak demand from the major railroad carriers for mechanical and track work.
Although demand among the Class 1 carriers is not expected to improve
substantially during the second half of 2000, the long-term outlook for these
services remains positive.
Electric Fuels' second-quarter results also reflect higher interest expense when
compared with last year due largely to higher debt balances resulting from the
expansion of its operations. In addition, employee-related general
administrative expenses have increased when compared with the second quarter of
last year.
CORPORATE & OTHER
Corporate and other expenses were higher during the second quarter of 2000
compared with 1999 due primarily to costs associated with the business
combination with Carolina Power & Light.
2000 EARNINGS OUTLOOK
Florida Progress' current estimate of its 2000 earnings per share is around
$3.60 per share. The increase over the company's previous estimate of $3.50 per
share is due primarily to a projected increase in synthetic fuel sales for 2000,
partially offset by lower earnings from its Rail Services group. Florida
Progress' estimate of $3.60 per share, which is on an operating basis, is 13
percent over 1999's operating earnings per share of $3.18, which excludes a $.03
per share nonrecurring gain.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of
1995: This news release contains forward-looking statements including projected
synthetic fuel sales for 2000, the demand for rail services and projected 2000
earnings per share. These statements involve risks and uncertainties that could
cause actual results or outcomes to differ materially from expectations.
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<PAGE> 3
Page 3
Florida Progress Corporation
Investor News - Second Quarter Earnings
Key factors that could have a direct bearing on the company's ability to meet
these projections include continued successful operation of synthetic fuel
plants, market acceptance of synthetic fuel, competition from competing
products, impacts of environmental regulations on potential buyers, actions of
various regulatory bodies, economic and weather conditions affecting the demand
for and supply of not only electricity but also Electric Fuels' barge, rail and
other services, and other factors.
Florida Progress (NYSE:FPC) is a Fortune 500 diversified utility holding company
with assets of $6.7 billion. Its principal subsidiary is Florida Power, one of
the nation's leading electric utilities committed to serving its 1.4 million
customers in Florida with competitively priced energy, excellent reliability,
and outstanding customer service. Diversified operations include energy
operations, marine operations and rail services.
###
<PAGE> 4
<TABLE>
<CAPTION>
FLORIDA PROGRESS CORPORATION
CONSOLIDATED STATEMENTS OF INCOME PAGE 4
(UNAUDITED) (IN MILLIONS, EXCEPT PER SHARE AMOUNTS)
THREE MONTHS ENDED SIX MONTHS ENDED TWELVE MONTHS ENDED
June 30 June 30 June 30
------------------------ ------------------------ ------------------------
2000 1999 2000 1999 2000 1999
----------- ----------- ------------ ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
REVENUES:
Electric utility $ 701.4 $ 671.7 $ 1,323.3 $ 1,242.4 $ 2,713.5 $ 2,661.6
Diversified 392.1 304.6 720.3 554.3 1,378.5 1,064.8
-----------------------------------------------------------------------------------------------------------------------------
1,093.5 976.3 2,043.6 1,796.7 4,092.0 3,726.4
-----------------------------------------------------------------------------------------------------------------------------
EXPENSES:
Electric utility:
Fuel 154.2 143.5 288.2 257.2 627.0 607.8
Purchased power 120.3 108.4 223.4 198.7 438.8 422.7
Energy conservation costs 15.9 19.4 30.0 36.5 74.7 80.5
Operation and maintenance 109.5 120.8 209.5 217.9 458.0 470.9
Depreciation and amortization 92.1 93.2 177.8 174.0 351.3 349.7
Taxes other than income taxes 52.8 51.1 105.9 103.0 206.0 205.7
-----------------------------------------------------------------------------------------------------------------------------
544.8 536.4 1,034.8 987.3 2,155.8 2,137.3
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Diversified:
Cost of sales 377.4 269.7 681.6 494.8 1,259.1 935.4
Loss related to life insurance subsidiary -- -- - - 11.8 -
Other 21.1 15.8 41.9 30.4 89.3 55.1
-----------------------------------------------------------------------------------------------------------------------------
398.5 285.5 723.5 525.2 1,360.2 990.5
-----------------------------------------------------------------------------------------------------------------------------
INCOME FROM OPERATIONS 150.2 154.4 285.3 284.2 576.0 598.6
-----------------------------------------------------------------------------------------------------------------------------
INTEREST EXPENSE AND OTHER:
Interest expense 48.2 43.9 93.4 88.9 178.1 181.0
Allowance for funds used during construction (1.0) (1.2) (1.9) (6.3) (2.8) (15.2)
Distributions on company obligated mandatorily
redeemable preferred securities 5.4 4.6 10.7 4.6 21.3 4.6
Other expense (income), net (3.2) 1.0 (3.6) (3.3) (13.6) (4.6)
-----------------------------------------------------------------------------------------------------------------------------
49.4 48.3 98.6 83.9 183.0 165.8
-----------------------------------------------------------------------------------------------------------------------------
INCOME BEFORE INCOME TAXES 100.8 106.1 186.7 200.3 393.0 432.8
Income taxes (9.1) 29.5 .3 56.1 35.9 135.2
-----------------------------------------------------------------------------------------------------------------------------
NET INCOME $ 109.9 76.6 $ 186.4 $ 144.2 $ 357.1 297.6
=============================================================================================================================
AVERAGE SHARES OF COMMON
STOCK OUTSTANDING 98.6 98.0 98.6 97.8 98.5 97.4
=============================================================================================================================
EARNINGS PER AVERAGE COMMON SHARE
(Basic and Diluted): $ 1.11 .78 $ 1.89 $ 1.48 $3.63 $3.06$
=============================================================================================================================
</TABLE>
REGARDING THESE FINANCIAL STATEMENTS:
THESE ARE INTERIM STATEMENTS. REFERENCE SHOULD BE MADE TO FLORIDA PROGRESS
CORPORATION'S 1999 ANNUAL REPORT TO SHAREHOLDERS. THIS REPORT DOES NOT
CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY ANY
SECURITIES.
<PAGE> 5
<TABLE>
<CAPTION>
FLORIDA PROGRESS CORPORATION
SELECTED FINANCIAL INFORMATION (UNAUDITED) PAGE 5
Three Months Ended Six Months Ended Twelve Months Ended
June 30 June 30 June 30
-------------------- Percent --------------- Percent ------------------------- Percent
2000 1999 Change 2000 1999 Change 2000 1999 Change
-------- ----------- -------- ------- ------- ----------- ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Earnings Per Share:
Florida Power Corporation $.81 $.67 20.9 $1.45 $1.31 10.7 $2.84 $2.70 5.2
-------- ----------- ------- ------- ------------ ------------
Electric Fuels Corporation .36 .15 140.0 .57 .24 137.5 .97 .48 102.1
Corporate and other (.06) (.04) (50.0) (.13) (.07) (85.7) (.18) (.12) (50.0)
-------- ----------- ------- ------- ------------ ------------
Diversified continuing .30 .11 172.7 .44 .17 158.8 .79 .36 119.4
-------- ----------- ------- ------- ------------ ------------
Total $1.11 $.78 42.3 $1.89 $1.48 27.7 $3.63 $3.06 18.6
======== =========== ======= ======= ============ ============
Average shares
outstanding (millions) 98.6 98.0 .6 98.6 97.8 .8 98.5 97.4 1.1
Dividends per share $.555 $.545 1.8 $1.11 $1.09 1.8 $2.20 $2.16 1.9
Book value per share:
Florida Power Corporation $19.52 $18.82 3.7
Consolidated $21.22 $19.70 7.7
June 30 June 30
2000 1999
June 30 ------------------- -------------------------
2000 1999 Amount Percent Amount Percent
------- ----------- -----------------------------------------------
Equity investments (percent): Capitalization (in millions):
Florida Power Corporation 81 86 Common stock $2,092.5 42.1 $1,934.8 41.2
Electric Fuels Corporation 15 12 Preferred stock 33.5 .7 33.5 .7
Other subsidiaries 4 2 Preferred securities * 300.0 6.0 300.0 6.4
------- -----------
Total 100 100 Long-term debt 2,132.0 42.9 2,282.5 48.6
======= ===========
Short-term debt 414.2 8.3 140.9 3.1
-----------------------------------------------
Total $4,972.2 100.0 $4,691.7 100.0
===============================================
</TABLE>
* Quarterly income preferred securities
<PAGE> 6
<TABLE>
<CAPTION>
FLORIDA POWER CORPORATION
SELECTED STATISTICAL DATA (UNAUDITED) PAGE 6
(In millions, except billing degree days)
Three Months Ended Six Months Ended Twelve Months Ended
June 30 June 30 June 30
----------------------- Percent ------------------ Percent ---------------------- Percent
2000 1999 Change 2000 1999 Change 2000 1999 Change
------------ ---------- ------- --------- -------- ------- ----------- ---------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Revenues:
Residential $347.1 $326.9 6.2 $666.3 $625.6 6.5 $1,435.6 $1,406.0 2.1
Commercial 165.3 153.3 7.8 301.2 284.7 5.8 634.1 616.2 2.9
Industrial 53.5 51.7 3.5 104.5 101.0 3.5 211.1 212.4 (.6)
Other retail sales 37.6 34.9 7.7 69.8 66.0 5.8 145.5 143.3 1.5
------------ ----------- --------- --------- ----------- -----------
603.5 566.8 6.5 1,141.8 1,077.3 6.0 2,426.3 2,377.9 2.0
Wholesale sales 54.1 43.8 23.5 114.0 92.6 23.1 249.5 217.7 14.6
------------ ----------- --------- --------- ----------- -----------
657.6 610.6 7.7 1,255.8 1,169.9 7.3 2,675.8 2,595.6 3.1
Other electric revenues (1) 35.7 47.6 (25.0) 62.8 71.2 (11.8) 51.1 68.9 (25.8)
Deferred fuel (2) 8.1 13.5 n/m* 4.7 1.3 n/m* (13.4) (2.9) n/m*
------------ ----------- --------- --------- ----------- -----------
Total $701.4 $671.7 4.4 $1,323.3 $1,242.4 6.5 $2,713.5 $2,661.6 1.9
============ =========== ========= ========= =========== ===========
Kilowatt-hour sales billed:
Residential 4,065.4 3,780.8 7.5 7,799.8 7,199.6 8.3 16,845.0 16,310.4 3.3
Commercial 2,757.9 2,545.3 8.4 5,030.5 4,723.5 6.5 10,633.8 10,194.2 4.3
Industrial 1,101.4 1,082.5 1.7 2,166.5 2,110.1 2.7 4,390.1 4,382.4 .2
Other retail sales 671.7 618.6 8.6 1,250.9 1,178.4 6.2 2,608.2 2,526.1 3.3
------------ ----------- --------- --------- ----------- -----------
8,596.4 8,027.2 7.1 16,247.7 15,211.6 6.8 34,477.1 33,413.1 3.2
Wholesale sales 1,006.7 962.3 4.6 2,291.0 1,969.9 16.3 5,177.4 4,445.4 16.5
------------ ----------- --------- --------- ----------- -----------
Total electric sales 9,603.1 8,989.5 6.8 18,538.7 17,181.5 7.9 39,654.5 37,858.5 4.7
============ =========== ========= ========= =========== ===========
System Requirements (KWH) 10,487 9,960 5.3 19,358 17,983 7.6 40,534 37,956 6.8
KWH Sales (Billed & Unbilled):
Retail 8,951 8,479 5.6 16,609 15,688 5.9 34,481 33,274 3.6
Wholesale 1,174 1,193 (1.6) 2,428 2,160 12.4 5,257 4,302 22.2
------------ ----------- --------- --------- ----------- -----------
10,125 9,672 4.7 19,037 17,848 6.7 39,738 37,576 5.8
============ =========== ========= ========= =========== ===========
Billing Degree Days:
Cooling 748 495 51.1 748 495 51.1 3,699 3,811 (2.9)
Heating 21 50 (58.0) 405 379 6.9 468 404 15.8
Normal Average Billing Degree Days:
Cooling 720 696 3.4 730 702 4.0 3,719 3,697 .6
Heating 45 44 2.3 437 444 (1.6) 544 547 (.5)
</TABLE>
Note:
(1) In the 4th quarter of 1999 and 1998, the FPSC approved the
establishment of a regulatory liability for the purpose of deferring
nonfuel revenues. The 1999 and 1998 deferrals were $44.4 million and
$10.1 million, respectively. In the 2nd quarter of 1999, Florida
Power recognized the 1998 $10 million deferral in Other electric
revenues and applied it to the amortization of the Tiger Bay
regulatory asset, which resulted in no impact to 1999 earnings.
Other electric revenues also includes unbilled revenues.
(2) Revenues include amounts resulting from fuel, purchased power, and
energy conservation clauses, which are designed to permit full
recovery of these costs.
* Not meaningful
