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News Release

TECO Energy reports first quarter earnings per share up 11 percent

TAMPA, April 19, 2000

TECO Energy, Inc. (NYSE/TE) today reported first quarter earnings of 42 cents per share, up 11 percent from 38 cents per share in 1999. Net income for the quarter was $53.5 million, compared with $49.2 million for the same period last year.

Chairman and Chief Executive Officer Robert D. Fagan said, "We're very pleased with our first quarter financial results. Clearly, these results reflect the dedication of everyone at TECO Energy to executing our refocused strategy, including our target of 7 percent earnings per share growth for 2000."

Fagan added, "In addition to our favorable financial results, we made several strategic moves during the quarter. TECO Power Services maintained an intensive pace with its project development efforts, commenced operation of its San José facility and made significant progress on its other recently announced initiatives. We announced the acquisition of synthetic fuel assets, which we expect to be in service this year. And, in a bold move, we settled our outstanding litigation with the EPA. We also announced the combination of our propane operations with three other key players in the Southeast, and we aggressively continued our share repurchase program."

Operating Segment Results
Net income for the quarter was $53.5 million, up 9 percent from last year's $49.2 million, reflecting strong revenue growth for Tampa Electric and Peoples Gas, better operating conditions for TECO Transport and higher gas prices for TECO Coalbed Methane in the current quarter. TECO Power Services recorded significantly higher net income this quarter as its newest power station began commercial operations. Net income at TECO Coal declined, reflecting the expiration of the long-term Tampa Electric contract at the end of 1999. Comparative net income by operating segment for the first quarter is as follows:

Three months
ended March 31,
($ in millions)
2000
1999
Net income:
Tampa Electric
$28.6
$27.3
Peoples Gas
8.5
7.3
TECO Power Services
9.6
3.3
TECO Transport
7.9
6.3
TECO Coal
1.4
3.8
Other diversified companies
6.8
6.2
Other/eliminations
(9.3)
(4.7)
Net income from continuing operations
53.5
49.5
Discontinued operations
--
(0.3)
Net income
$53.5
$49.2
Average shares outstanding (in 000's)
126.2
132.0
Note: Amounts from 1999 were restated to reflect TeCom's results as discontinued operations.

Tampa Electric's net income for the quarter increased approximately 5 percent, reflecting 8 percent higher retail energy volumes, which were partially offset by higher expenses. Energy sales volumes were higher due to strong customer growth of 2.8 percent and the favorable impact of slightly cooler weather. Results for the quarter also included the favorable impact of cost recovery from the scrubber at Big Bend Station, which was placed into service in December 1999. Expenses were higher due to the expiration of U.S. Department of Energy funding related to the Polk Power Station and the scheduling of outages.

Net income at Peoples Gas System increased more than 16 percent for the quarter, driven by solid customer growth of 3.5 percent along with the favorable impact of slightly cooler weather. Natural gas volumes were higher in the first quarter than for the same period last year, with residential volumes up more than 19 percent and commercial volumes up more than 13 percent. Operating expenses and depreciation were higher, primarily reflecting growth, including the addition of Peoples Gas' recently completed Southwest Florida expansion.

Net income at TECO Power Services increased $6.3 million to $9.6 million and reflected the commencement of operation of the 120-megawatt San José Power Station in Guatemala. In addition, normal growth from existing operating projects contributed to the higher earnings for the quarter.

TECO Transport recorded net income of $7.9 million, an increase of $1.6 million over 1999. The increase was primarily due to increased coal movements to Tampa Electric and favorable operating conditions on the rivers, which were partially offset by lower phosphate and grain volumes during the quarter. TECO Transport's net income included a net benefit of approximately $1 million associated with equipment disposition.

Results at TECO Coal were lower due primarily to the expiration of the Tampa Electric contract as anticipated. TECO Energy's other diversified companies recorded slightly higher net income, driven by improved results at TECO Coalbed Methane due to higher gas prices.

Financing costs increased in the first quarter compared with 1999's first quarter, reflecting higher borrowing levels and higher interest rates. The company's share repurchase program favorably impacted earnings in the first quarter 2000 by approximately $.01 per share.

Summary Financial Information:
Three months
ended March 31,
(000's except per share amounts)
2000
1999
Revenues
$524.5
$445.7
Net income from continuing operations
$53.5
$49.5
Net income (loss) from discontinued operations
--
(.3)
Net income
$53.5
$49.2
Earnings per share from continuing operations - basic
$0.42
$0.38
Earnings per share from continuing operations - diluted
$0.42
$0.38
Earnings per share - basic
$0.42
$0.38
Earnings per share - diluted
$0.42
$0.38
Average common shares outstanding - basic
126.2
132.0
Average common shares outstanding - diluted
126.2
132.2
Note: Amounts from 1999 were restated to reflect TeCom's results as discontinued operations.

Additional financial information related to the company's first quarter results, including unaudited financial statements; segment revenues and operating income; and electric and gas volumes is available in the Investor Relations section of TECO Energy's web site at www.tecoenergy.com.

TECO Energy is a diversified energy-related holding company headquartered in Tampa, Florida. Its principal businesses are Tampa Electric, Peoples Gas System, TECO Transport, TECO Power Services, TECO Coal, TECO Coalbed Methane, Peoples Gas Company and Bosek, Gibson and Associates.

This press release contains forward-looking statements, which are subject to the inherent uncertainties in predicting future results and conditions. Certain factors that could cause actual results to differ materially from those projected in these forward-looking statements include the following: general economic conditions, particularly those in Tampa Electric’s service area affecting energy sales; weather variations affecting energy sales and operating costs; potential competitive changes in the electric and gas industries, particularly in the area of retail competition; regulatory actions affecting Tampa Electric and Peoples Gas System; commodity price changes affecting the competitive positions of Tampa Electric and the Peoples Gas companies as well as the margins at TECO Coalbed Methane and TECO Coal; changes in and compliance with environmental regulations that may impose additional costs or curtail some activities; TECO Energy’s ability to successfully implement its stock repurchase program; TECO Power Services’ ability to successfully develop and operate its projects; and and TECO Transport’s ability to successfully enter new markets and complete acquisitions. Some of Tthese factors are discussed more fully under "Investment Considerations" in the company’s Annual Report on Form 10-K for the year ended December 31, 1999, and reference is made thereto.

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