<PAGE> 1
As filed with the Securities and Exchange Commission on April 27, 2000
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 27, 2000
<TABLE>
<CAPTION>
Exact name of Registrant as specified
Commission in its charter, address of principal State of I.R.S. Employer
File No. executive offices, telephone number Incorporation Identification No.
<S> <C> <C> <C>
1-8349 FLORIDA PROGRESS CORPORATION Florida 59-2147112
One Progress Plaza
St. Petersburg, Florida 33701
Telephone (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> 2
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, 2000:
Florida Progress issued an Investor News report dated April 27, 2000
reporting first quarter 2000 earnings. A copy of the Investor News report is
filed herewith as Exhibit 99.
In addition, Edward Moneypenny, Florida Progress' Senior Vice President
and Chief Financial Officer, has indicated that Florida Progress' 2000 earnings
per share is expected to be around $3.50 per share, due to higher expected
synfuel sales. In response to an analyst's question as to whether the 6 to 7
percent earnings per share growth would be achievable for 2001 on a stand-alone
basis, Mr. Moneypenny confirmed that Florida Progress' earnings growth could be
between 6 and 7 percent.
A caution about forward looking statements
This report contains certain forward looking statements, including
projections regarding Florida Progress' earnings per share. These statements,
and any other statements contained herein that are not historical facts, are
forward-looking statements that are based on a series of projections and
estimates regarding the economy, the electric utility business and Florida
Progress' other businesses in general. Key factors that have a direct impact on
the ability to attain these projections include continued annual growth in
customers, the weather, successful cost containment efforts, the operations of
synthetic fuel plants and the efficient operation of Florida Power's existing
and future generating units. If these projections and estimates regarding the
economy, the electric utility business and other factors differ materially from
what actually occurs, or if various legal or regulatory proceedings have
unfavorable outcomes, then actual results could vary significantly from the
performance projected in the forward-looking statements.
Item 7. Financial Statements and Exhibits
(c) Exhibits:
Exhibit Number (by
reference to Item 601
of Regulation S-K) Description of Exhibit
99 Florida Progress Corporation Investor News report dated
April 27, 2000.
2
<PAGE> 3
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
By: /s/ Pamela A. Saari
--------------------------------
Pamela A. Saari
Treasurer of each Registrant
Date: April 27, 2000
3
<PAGE> 4
EXHIBIT INDEX
Exhibit No. Description of Exhibit
99 Florida Progress Corporation Investor News report dated
April 27, 2000.
4
<PAGE> 1
Exhibit 99
[LOGO] FLORIDA --------------------------------------------------------
PROGRESS INVESTOR News
CORPORATION
Analyst Contact:
Greg Beuris (727) 820-5734
FLORIDA PROGRESS REPORTS 1ST QUARTER RESULTS
ST. PETERSBURG, FLORIDA, APRIL 27, 2000 - Florida Progress Corporation
(NYSE:FPC) reported first-quarter 2000 earnings of $76.5 million, or $.78 per
share, compared with 1999 first-quarter earnings of $67.6 million, or $.69 per
share.
A RECONCILIATION OF FLORIDA PROGRESS'S 2000 FIRST-QUARTER EARNINGS PER SHARE IS
AS FOLLOWS:
<TABLE>
<S> <C> <C>
1999 FLORIDA PROGRESS 1ST QTR EPS $ .69
FLORIDA POWER
Sales of electricity & other revenues 0.12
Operations & maintenance (0.02)
Depreciation & amortization (0.03)
Interest expense & AFUDC (0.04)
1999 gain on sale of property (0.03)
-----
--
ELECTRIC FUELS 0.12
CORPORATE & OTHER (0.03)
------
2000 FLORIDA PROGRESS 1ST QTR EPS $ .78
======
</TABLE>
FLORIDA POWER CORPORATION
Florida Power, the largest subsidiary of Florida Progress, reported $.64 per
share, for the first quarter of 2000 equaling last year's first quarter results.
Excluding a $.03 per share one-time gain on the sale of property in the first
quarter of 1999, Florida Power's earnings per share were up nearly 5 percent.
Florida Power's total kilowatt-hour sales increased 9 percent during the first
quarter of 2000, compared with 1999. The improvement was primarily due to strong
customer growth, a return to more normal temperatures and higher wholesale
sales.
Retail sales were up 6 percent as Florida Power provided electric service to
approximately 30,000 new customers during the first quarter of 2000 compared
with last year. Weather, a key factor influencing usage among residential
customers, favorably influenced sales for the quarter. Usage among residential
customers was nearly 9 percent higher during the quarter when compared with last
year.
Wholesale sales increased nearly 30 percent over 1999. Most of the increase is
attributable to higher sales to Seminole Electric Cooperative, Florida Power's
largest wholesale customer.
Operations and maintenance expense was up $2.9 million during the quarter. The
increase is due primarily to higher costs associated with the utility's
generation fleet, including scheduled maintenance on certain peaking units and
costs associated with the utility's new 530-megawatt generation plant, which was
placed into service in April 1999.
-- more --
<PAGE> 2
Page 2
Florida Progress Corporation
Investor News - First Quarter Earnings
The new plant also resulted in higher plant-in-service balances, which
increased depreciation expense during the first quarter of 2000 compared with
1999.
Allowance for funds used during construction (AFUDC) was $4.2 million less than
last year as a result of lower construction work-in-progress (CWIP) balances in
2000. The lower CWIP balances were due to the new 530-megawatt generation plant
placed into service as discussed above.
ELECTRIC FUELS CORPORATION
Electric Fuels earned $.21 per share, in the first quarter, compared with $.09
per share, last year. All three Electric Fuels' business units experienced
improved operating results, however most of the $.12 per share improvement was
attributable to the Energy & Related Services group.
Earnings at the Energy and Related Services group were up $12.1 million, of
which $8 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
synfuel sales during the quarter compared with last year when the company was
in the early phases of producing and marketing the new product.
In April, Carolina Power & Light purchased an ownership interest in 90 percent
of one synthetic fuel plant located at the Powell Mountain mine site in
Virginia and is negotiating to purchase a 90 percent ownership in a second
plant in the near future. This investment will enable both companies to
maximize the cash benefit of operating these plants in 2000.
Earnings from the Inland Marine Transportation group were up $.6 million when
compared to last year. Improved operating conditions during 2000 were partially
offset by higher diesel fuel costs.
Results in the Rail Services group improved $.5 million when compared to 1999.
The improvement reflects higher demand for rail and track work, partially
offset by reduced orders for railcar repair work. The company's recycling
division showed some improvement over last year's results as scrap steel prices
continued to improve.
CORPORATE & OTHER
Corporate and other expenses were higher during the first quarter of 2000
compared with 1999 due primarily to the write-down of a minority interest in a
cogeneration facility, which reduced earnings by $.02 a share.
Florida Progress (NYSE:FPC) is a Fortune 500 diversified utility holding
company with assets of $6.5 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> 3
FLORIDA PROGRESS CORPORATION
CONSOLIDATED STATEMENTS OF INCOME PAGE 3
<TABLE>
<CAPTION>
(UNAUDITED) (In millions, except per share amounts)
Three Months Ended Twelve Months Ended
March 31 March 31
--------------------------- -------------------------------
2000 1999 2000 1999
------------- ------------ -------------- ---------------
<S> <C> <C> <C> <C>
REVENUES:
Electric utility $ 621.9 $ 570.7 $ 2,683.8 $ 2,653.7
Diversified 328.2 249.7 1,291.0 999.5
- ------------------------------------------------------------------------------------------------------------------------------
950.1 820.4 3,974.8 3,653.2
- ------------------------------------------------------------------------------------------------------------------------------
EXPENSES:
Electric utility:
Fuel 134.0 113.7 616.3 600.2
Purchased power 103.1 90.3 426.9 425.1
Energy conservation costs 14.1 17.1 78.2 80.1
Operation and maintenance 100.0 97.1 469.3 466.3
Depreciation and amortization 85.7 80.8 352.4 346.9
Taxes other than income taxes 53.1 51.9 204.3 206.0
- ------------------------------------------------------------------------------------------------------------------------------
490.0 450.9 2,147.4 2,124.6
- ------------------------------------------------------------------------------------------------------------------------------
Diversified:
Cost of sales 304.2 225.1 1,151.4 858.5
Loss related to life insurance subsidiary - - 11.8 -
Other 20.8 14.6 84.0 58.2
- ------------------------------------------------------------------------------------------------------------------------------
325.0 239.7 1,247.2 916.7
- ------------------------------------------------------------------------------------------------------------------------------
INCOME FROM OPERATIONS 135.1 129.8 580.2 611.9
- ------------------------------------------------------------------------------------------------------------------------------
INTEREST EXPENSE AND OTHER:
Interest expense 45.2 45.0 173.8 184.8
Allowance for funds used during construction (.9) (5.1) (3.0) (18.1)
Distributions on company obligated mandatorily
redeemable preferred securities 5.3 - 20.5 -
Other expense (income), net (.4) (4.3) (9.4) (4.5)
- ------------------------------------------------------------------------------------------------------------------------------
49.2 35.6 181.9 162.2
- ------------------------------------------------------------------------------------------------------------------------------
INCOME FROM OPERATIONS BEFORE INCOME TAXES 85.9 94.2 398.3 449.7
Income taxes 9.4 26.6 74.6 150.9
- ------------------------------------------------------------------------------------------------------------------------------
NET INCOME $ 76.5 $ 67.6 $ 323.7 $ 298.8
==============================================================================================================================
AVERAGE SHARES OF COMMON STOCK OUTSTANDING 98.5 97.5 98.3 97.2
==============================================================================================================================
EARNINGS PER AVERAGE COMMON SHARE
(Basic and Diluted): $ .78 $ .69 $ 3.29 $ 3.08
==============================================================================================================================
</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> 4
FLORIDA PROGRESS CORPORATION
SELECTED FINANCIAL INFORMATION (UNAUDITED) Page 4
<TABLE>
<CAPTION>
Three Months Ended Twelve Months Ended
March 31 Percent March 31 Percent
2000 1999 Change 2000 1999 Change
----- ----- ------ ------ ------ -------
<S> <C> <C> <C> <C> <C> <C> <C>
Earnings (Loss) Per Share:
Florida Power Corporation $.64 $ .64 - $ 2.70 $ 2.73 (1.1)
----- ----- ------ -----
Electric Fuels Corporation .21 .09 133.3 .76 .44 72.7
Corporate and other (.07) (.04) (75.0) (.17) (.09) (88.9)
----- ----- ------ ------
Diversified continuing .14 .05 180.0 .59 .35 68.6
----- ----- ------ ------
Total $.78 $ .69 13.0 $ 3.29 $ 3.08 6.8
===== ===== ====== ======
Average shares outstanding
(millions) 98.5 97.5 1.0 98.3 97.2 1.1
Dividends per share $.555 $.545 1.8 $2.19 $2.15 1.9
Book value per share:
Florida Power Corporation $19.24 $18.73 2.7
Consolidated $20.66 $19.39 6.5
March 31 March 31
March 31 2000 1999
2000 1999 Amount Percent Amount Percent
---- ----- ---------------------------------------------
Equity investments (percent): Capitalization (in millions):
Florida Power Corporation 82 87 Common stock $ 2,037.0 41.4 $ 1,897.3 40.9
Electric Fuels Corporation 14 11 Preferred stock 33.5 .7 33.5 .7
Other subsidiaries 4 2 Preferred securities * 300.0 6.1 - -
----- --- Long-term debt 2,170.7 44.1 2,300.4 49.6
Total 100 100 Short-term debt 381.5 7.7 405.3 8.8
===== ===
--------------------------------------------
Total $ 4,922.7 100.0 $ 4,636.5 100.0
============================================
</TABLE>
* Quarterly income preferred securities
<PAGE> 5
FLORIDA POWER CORPORATION
SELECTED STATISTICAL DATA (UNAUDITED) PAGE 5
(In millions, except billing degree days)
<TABLE>
<CAPTION>
Three Months Ended Twelve Months Ended
March 31 Percent March 31 Percent
2000 1999 Change 2000 1999 Change
---- ---- ------ ---- ---- ------
<S> <C> <C> <C> <C> <C> <C>
Revenues:
Residential $ 319.2 $ 298.7 6.9 $ 1,415.4 $ 1,414.6 .1
Commercial 135.9 131.4 3.4 622.1 616.6 .9
Industrial 51.0 49.3 3.4 209.3 215.9 (3.1)
Other retail sales 32.2 31.1 3.5 142.8 143.4 (.4)
-------- -------- --------- ---------
538.3 510.5 5.4 2,389.6 2,390.5 -
Wholesale sales 59.9 48.8 22.7 239.2 217.7 9.9
-------- -------- --------- ---------
598.2 559.3 7.0 2,628.8 2,608.2 .8
Other electric revenues (1) 27.1 23.6 14.8 63.0 69.2 (9.0)
Deferred fuel (2) (3.4) (12.2) n/m* (8.0) (23.7) n/m*
-------- -------- --------- ---------
Total $ 621.9 $ 570.7 9.0 $ 2,683.8 $ 2,653.7 1.1
======== ======== ========= =========
Kilowatt-hour sales billed:
Residential 3,734.4 3,418.8 9.2 16,560.4 16,389.3 1.0
Commercial 2,272.6 2,178.2 4.3 10,421.2 10,146.6 2.7
Industrial 1,065.1 1,027.6 3.6 4,371.2 4,420.1 (1.1)
Other retail sales 579.2 559.8 3.5 2,555.1 2,515.5 1.6
-------- -------- --------- ---------
7,651.3 7,184.4 6.5 33,907.9 33,471.5 1.3
Wholesale sales 1,284.3 1,007.6 27.5 5,133.0 4,216.9 21.7
-------- -------- --------- ---------
Total electric sales 8,935.6 8,192.0 9.1 39,040.9 37,688.4 3.6
======== ======== ========= =========
System Requirements (KWH) 8,871 8,024 10.6 40,007 37,943 5.4
KWH Sales (Billed & Unbilled):
Retail 7,658 7,209 6.2 34,009 33,562 1.3
Wholesale 1,254 968 29.5 5,275 4,140 27.4
-------- -------- --------- ---------
8,912 8,177 9.0 39,284 37,702 4.2
======== ======== ========= =========
Billing Degree Days:
Cooling - - - 3,446 4,134 (16.6)
Heating 384 329 16.7 497 424 17.2
Normal Average Billing Degree Days:
Cooling 10 6 66.7 3,695 3,699 (.1)
Heating 392 400 (2.0) 543 556 (2.3)
</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
