<PAGE> 1
Exhibit 99
[Logo] FLORIDA
PROGRESS -----------------------------------
CORPORATION INVESTOR News
Analyst Contacts:
Greg Beuris (727) 820-5734
Lauran Willoughby (727) 820-5737
FLORIDA PROGRESS REPORTS THIRD-QUARTER EARNINGS; ESTIMATE RAISED FOR 2000
ST. PETERSBURG, FLORIDA, OCTOBER 25, 2000 - Florida Progress Corporation
(NYSE:FPC) reported third-quarter 2000 earnings of $150.3 million, or $1.53 per
share, compared with 1999 third-quarter earnings of $137.3 million, or $1.40 per
share.
The reported earnings for the quarter include after-tax charges of $13 million,
or $.13 per share, related to a proposed lawsuit settlement and merger
transaction costs. In addition, third quarter results include a reduction in
income taxes, which increased net income $16.8 million, or $.17 per share. Last
year's third-quarter results included after-tax charges of $5 million for merger
transaction costs and a $6 million income tax reduction, which increased net
income for the quarter. Excluding these items, Florida Progress' operating
earnings for the third quarter were $146.5 million, or $1.49 per share, compared
with $136.3 million, or $1.39 per share, for the third quarter last year.
A RECONCILIATION OF FLORIDA PROGRESS' 2000 THIRD-QUARTER EARNINGS PER SHARE IS
AS FOLLOWS:
1999 FLORIDA PROGRESS 3RD QTR EPS $1.40
FLORIDA POWER
Sales of electricity & other revenues (.02)
Operation & maintenance .06
Depreciation & other, net (.03)
-----
.01
ELECTRIC FUELS .19
CORPORATE & OTHER (.07)
2000 FLORIDA PROGRESS 3RD QTR EPS $1.53
=====
FLORIDA POWER CORPORATION
Florida Power reported earnings of $1.24 per share for the third quarter of
2000, up slightly over last year's earnings for the same period.
Florida Power's total retail kilowatt-hour sales increased .7 percent during the
third quarter of 2000, compared with 1999. During the quarter, Florida Power
served approximately 30,000 new customers when compared with the same period
last year. However, lower sales to industrial customers partially offset the
benefit of strong customer growth. The lower industrial sales resulted primarily
from reduced demand from phosphate customers. Higher retail base revenues were
offset by lower wholesale base revenues, which resulted from the expiration and
restructuring of certain contracts.
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Florida Progress Corporation
Investor News -- 2000 Third-Quarter Earnings
Operation and maintenance expense was down $9.3 million during the quarter. Most
of the decrease is due primarily to the timing of planned maintenance and
reliability projects as well as lower employee benefit costs.
Florida Power's depreciation and amortization expense increased $48.7 million
due primarily to $44.4 million of accelerated amortization of the Tiger Bay
regulatory asset. The additional amortization did not affect net income because
it was offset by the recognition of $44.4 million of revenues deferred pursuant
to a regulatory order in the fourth quarter of 1999.
ELECTRIC FUELS CORPORATION
Electric Fuels earned $.43 per share in the third quarter, compared with $.24
per share during the same period last year. Electric Fuels' earnings include a
reduction to income taxes of $.17 per share for the current quarter and $.06 per
share for the third quarter of 1999.
This reduction, as required to reflect interim period tax allocation, relates to
the timing of the recognition of alternative fuel tax credits. One effect is the
recognition of the benefit of alternative fuel tax credits during an interim
period different from the period when the synthetic fuel is sold and the cost of
sales is recognized. While Electric Fuels' quarterly results can be
significantly impacted, the company's annual results are not affected.
Earnings at the Energy and Related Services group were up $25.5 million, of
which about $11 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.
Third-quarter sales of the coal-based synthetic fuel were approximately 1.5
million net tons, triple the tons sold during the same period last year. Total
synthetic fuel sales for 2000 are expected to be approximately 6 million net
tons, compared with 1.6 million net tons sold in 1999.
Earnings from the Inland Marine Transportation group of $3.1 million were down
$.2 million when compared to the same period last year. The lower earnings were
due primarily to higher diesel fuel costs, which were up over 60 percent over
the same period last year.
The Rail Services group continues to be impacted by weak demand from the major
railroads for mechanical and track work, which has decreased operating margins.
In addition, higher interest expense has also contributed to lower earnings.
Earnings from this group were essentially zero for the quarter, compared with
$5.6 million for the same quarter last year.
CORPORATE & OTHER
Corporate and other expenses were $.07 per share higher during the third quarter
of 2000, compared with 1999, due primarily to costs associated with a proposed
lawsuit settlement. The settlement relates to Mid-Continent Life Insurance
Company and a policyholder class action lawsuit against Florida Progress and is
subject to court approval.
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Florida Progress Corporation
Investor News -- 2000 Third-Quarter Earnings
2000 EARNINGS OUTLOOK
Year-to-date, Florida Progress' operating earnings are $3.21 per share. This
amount excludes non-recurring charges of $.15 per share and the interim period
effective tax rate adjustments. The current estimate of year 2000 operating
earnings per share is between $3.65 and $3.70 per share. The increase over the
company's previous estimate of $3.60 per share is due primarily to a projected
increase in synthetic fuel sales for 2000, partially offset by lower expected
earnings from its Rail Services group. Florida Progress' estimate is about 15
percent over 1999's operating earnings per share of $3.18, which excludes a $.03
per share non-recurring gain.
OTHER INFORMATION
On October 9, 2000, the Oklahoma Insurance Commissioner issued an order granting
Florida Progress' request for exemption concerning the completion of the
business combination between Florida Progress and CP&L Energy, Inc.
The order exempts CP&L Energy from the requirements of the Oklahoma Insurance
Code that otherwise would have required the Commissioner's approval of the
change in control of Mid-Continent Life Insurance Company due to the combination
with CP&L Energy.
"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.
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 governmental agencies and 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 $6.8 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.
###
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FLORIDA PROGRESS CORPORATION
CONSOLIDATED STATEMENTS OF INCOME PAGE 4
<TABLE>
<CAPTION>
(UNAUDITED) (In millions, except per share amounts)
Three Months Ended Nine Months Ended Twelve Months Ended
September 30 September 30 September 30
--------------------------- --------------------------- --------------------------
2000 1999 2000 1999 2000 1999
------------- ------------ ------------ ------------- ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
REVENUES:
Electric utility $ 914.5 $ 794.9 $ 2,237.8 $ 2,037.3 $ 2,833.1 $ 2,660.9
Diversified 399.4 312.4 1,119.7 866.7 1,465.5 1,141.3
----------------------------------------------------------------------------------------------------------------------------------
1,313.9 1,107.3 3,357.5 2,904.0 4,298.6 3,802.2
----------------------------------------------------------------------------------------------------------------------------------
EXPENSES:
Electric utility:
Fuel 213.2 191.5 501.4 448.7 648.7 610.4
Purchased power 166.3 106.7 389.7 305.4 498.4 407.1
Energy conservation costs 20.0 25.4 50.0 61.9 69.3 81.4
Operation and maintenance 98.7 108.0 308.2 325.9 448.7 470.6
Depreciation and amortization 135.5 86.8 313.3 260.8 400.0 347.0
Taxes other than income taxes 59.4 56.9 165.3 159.9 208.5 205.1
----------------------------------------------------------------------------------------------------------------------------------
693.1 575.3 1,727.9 1,562.6 2,273.6 2,121.6
----------------------------------------------------------------------------------------------------------------------------------
Diversified:
Cost of sales 389.1 273.6 1,070.7 768.4 1,374.6 1,008.0
Loss related to life insurance
subsidiary 12.8 - 12.8 - 24.6 -
Other 21.8 30.3 63.7 60.7 80.8 74.0
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423.7 303.9 1,147.2 829.1 1,480.0 1,082.0
----------------------------------------------------------------------------------------------------------------------------------
INCOME FROM OPERATIONS 197.1 228.1 482.4 512.3 545.0 598.6
----------------------------------------------------------------------------------------------------------------------------------
INTEREST EXPENSE AND OTHER:
Interest expense 46.1 42.3 139.5 131.2 181.9 177.1
Allowance for funds used during
construction (1.1) (.4) (3.0) (6.7) (3.5) (11.2)
Distributions on company obligated
mandatorily redeemable
preferred securities 5.3 5.3 16.0 9.9 21.3 9.9
Other (income), net (4.8) (7.5) (8.4) (10.8) (11.0) (14.0)
----------------------------------------------------------------------------------------------------------------------------------
45.5 39.7 144.1 123.6 188.7 161.8
----------------------------------------------------------------------------------------------------------------------------------
INCOME BEFORE INCOME TAXES 151.6 188.4 338.3 388.7 356.3 436.8
Income taxes 1.3 51.1 1.6 107.2 (13.9) 119.2
----------------------------------------------------------------------------------------------------------------------------------
NET INCOME $ 150.3 $ 137.3 $ 336.7 $ 281.5 $ 370.2 $ 317.6
==================================================================================================================================
AVERAGE SHARES OF COMMON
STOCK OUTSTANDING 98.6 98.3 98.6 97.9 98.6 97.7
==================================================================================================================================
EARNINGS PER AVERAGE COMMON SHARE
(Basic and Diluted): $ 1.53 $ 1.40 $ 3.42 $ 2.87 $ 3.76 $ 3.25
==================================================================================================================================
</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.
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<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended Twelve Months Ended
September 30 Percent September 30 Percent September 30 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 $ 1.24 $ 1.23 .8 $ 2.69 $ 2.54 5.9 $ 2.85 $ 2.82 1.1
--------- --------- -------- -------- --------- --------
Electric Fuels
Corporation .43 .24 79.2 1.00 .48 108.3 1.17 .61 91.8
Corporate and other (.14) (.07) (100.0) (.27) (.15) (80.0) (.26) (.18) (44.4)
--------- --------- -------- -------- --------- --------
Diversified
continuing .29 .17 70.6 .73 .33 121.2 .91 .43 111.6
--------- --------- -------- -------- --------- --------
Total $ 1.53 $ 1.40 9.3 $ 3.42 $ 2.87 19.2 $ 3.76 $ 3.25 15.7
========= ========= ======== ======== ========= ========
Average shares
outstanding
(millions) 98.6 98.3 .3 98.6 97.9 .7 98.6 97.7 .9
Dividends per share $ .555 $ .545 1.8 $ 1.665 $ 1.635 1.8 $ 2.21 $ 2.17 1.8
Book value per
share:
Florida Power
Corporation $ 20.24 $ 19.49 3.8
Consolidated $ 22.18 $ 20.61 7.6
</TABLE>
<TABLE>
<CAPTION>
September 30 September 30
September 30 2000 1999
2000 1999 Amount Percent Amount Percent
-------- --------- -----------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Equity investments
(percent): Capitalization (in millions):
Florida Power
Corporation 80 85 Common stock $2,187.8 42.3 $2,029.3 43.2
Electric Fuels
Corporation 16 13 Preferred stock 33.5 .6 33.5 .7
Other subsidiaries 4 2 Preferred securities * 300.0 5.8 300.0 6.4
-------- ---------
Total 100 100 Long-term debt 2,041.9 39.5 2,177.5 46.4
======== =========
Short-term debt 608.4 11.8 152.8 3.3
-----------------------------------------------
Total $5,171.6 100.0 $4,693.1 100.0
===============================================
</TABLE>
* Quarterly income preferred securities
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FLORIDA POWER CORPORATION
SELECTED STATISTICAL DATA (UNAUDITED)
(In millions, except billing degree days) PAGE 6
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended Twelve Months Ended
September 30 Percent September 30 Percent September 30 Percent
2000 1999 Change 2000 1999 Change 2000 1999 Change
--------- --------- ------- --------- --------- ------- --------- --------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Revenues:
Residential $ 468.7 $ 446.9 4.9 $ 1,135.0 $ 1,072.5 5.8 $ 1,457.4 $ 1,407.9 3.5
Commercial 197.0 180.0 9.4 498.2 464.7 7.2 651.1 621.8 4.7
Industrial 55.8 54.8 1.8 160.3 155.8 2.9 212.1 211.7 .2
Other retail sales 43.3 39.2 10.5 113.1 105.2 7.5 149.6 143.4 4.3
--------- --------- --------- --------- --------- ---------
764.8 720.9 6.1 1,906.6 1,798.2 6.0 2,470.2 2,384.8 3.6
Wholesale sales 81.7 72.1 13.3 195.7 164.7 18.8 259.1 215.5 20.2
--------- --------- --------- --------- --------- ---------
846.5 793.0 6.7 2,102.3 1,962.9 7.1 2,729.3 2,600.3 5.0
Other electric
revenues (1) 61.5 26.2 134.7 124.3 97.4 27.6 86.4 77.0 12.2
Deferred fuel (2) 6.5 (24.3) n/m* 11.2 (23.0) n/m* 17.4 (16.4) n/m*
--------- --------- --------- --------- --------- ---------
Total $ 914.5 $ 794.9 15.0 $ 2,237.8 $ 2,037.3 9.8 $ 2,833.1 $ 2,660.9 6.5
========= ========= ========= ========= ========= =========
Kilowatt-hour sales
billed:
Residential 5,467.1 5,331.0 2.6 13,266.9 12,530.6 5.9 16,981.1 16,381.3 3.7
Commercial 3,184.3 3,046.0 4.5 8,214.8 7,769.5 5.7 10,772.1 10,359.3 4.0
Industrial 1,077.6 1,141.2 (5.6) 3,244.1 3,251.3 (.2) 4,326.5 4,394.3 (1.5)
Other retail sales 737.8 704.9 4.7 1,988.7 1,883.3 5.6 2,641.1 2,548.4 3.6
--------- --------- --------- --------- --------- ---------
10,466.8 10,223.1 2.4 26,714.5 25,434.7 5.0 34,720.8 33,683.3 3.1
Wholesale sales 1,460.6 1,488.8 (1.9) 3,751.6 3,458.7 8.5 5,149.2 4,544.1 13.3
--------- --------- --------- --------- --------- ---------
Total electric
sales 11,927.4 11,711.9 1.8 30,466.1 28,893.4 5.4 39,870.0 38,227.4 4.3
========= ========= ========= ========= ========= =========
System Requirements
(KWH) 12,170 12,131 .3 31,528 30,115 4.7 40,573 38,684 4.9
KWH Sales (Billed &
Unbilled):
Retail 10,261 10,194 .7 26,870 25,882 3.8 34,549 33,595 2.8
Wholesale 1,445 1,621 (10.9) 3,873 3,781 2.4 5,080 4,553 11.6
--------- --------- --------- --------- --------- ---------
11,706 11,815 (.9) 30,743 29,663 3.6 39,629 38,148 3.9
========= ========= ========= ========= ========= =========
Billing Degree Days:
Cooling 2,265 2,227 1.7 3,013 2,722 10.7 3,737 3,584 4.3
Heating - - - 405 379 6.9 468 404 15.8
Normal Average Billing
Degree Days:
Cooling 2,285 2,273 .5 3,015 2,975 1.3 3,731 3,673 1.6
Heating - - - 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 3rd quarter of 2000, Florida Power recognized the 1999 $44.4 million
deferral in Other electric revenues and applied it to the amortization of
the Tiger Bay regulatory asset, which resulted in no impact to 2000
earnings. Similarly, 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
