TECO Energy Reports First Quarter Earnings Per Share Up 29 Percent To $.54 Per Share

Apr 18, 2001, 01:00 ET from TECO Energy, Inc.

    TAMPA, April 18 /PRNewswire/ -- TECO Energy, Inc. (NYSE:   TE) today
 reported first quarter earnings of $.54 per share, up 29 percent from $.42 per
 share in 2000.  Net income for the quarter was $69.7 million, 30 percent
 higher than the $53.5 million recorded in the 2000 period.
     TECO Energy Chairman and CEO Robert Fagan said, "TECO Energy is off to a
 great start for 2001.  These outstanding first quarter results were led by
 strong growth in our Florida operations, the new power generation projects
 that TECO Power Services brought online last year and good results at TECO
 Coal and TECO Coalbed Methane.  With these results and further improvements
 expected at several of our companies, 2001 earnings are expected to increase
 by 15 percent.  Further, we are continuing to target 10 percent long-term
 earnings growth for 2002 and beyond."
 
     Operating Segment Results:
     Results for the quarter relative to last year reflected the continued
 strong customer growth and favorable weather in the core electric and gas
 businesses; contributions from TECO Power Services' Commonwealth Chesapeake
 Plant and Guatemalan operations offset by a $6.1 million after-tax reserve for
 an asset valuation adjustment related to its minority interests in smaller
 international projects; continued strong U.S. Government grain and northbound
 river shipments at TECO Transport; increased U.S. conventional coal production
 and sale, and the addition of synthetic fuel production at TECO Coal; higher
 realized gas prices at TECO Coalbed Methane and a greater contribution from
 TECO Propane Ventures.
 
 
                                         TECO Energy, Inc.
                                  Three months            Twelve months
                                  Ended 3/31/01           Ended 3/31/01
 
     (in millions)
 
     Net Income Summary        2001          2000         2001          2000
     Tampa Electric           $30.5         $28.6       $146.4        $140.1
     Peoples Gas System        10.5           8.5         23.8          20.9
     TECO Power Services        2.5           7.3         18.0          14.4
     TECO Transport             8.4           8.0         29.7          28.1
     TECO Coal                 14.0           0.5         46.9          10.4
     Other diversified
      companies                11.3           6.1         33.4          24.4
     Other/financing/
       eliminations           (7.5)         (5.5)       (31.1)        (13.8)
 
     Net income before
      charges                  69.7          53.5        267.1         224.5
     Charges                     --            --           --        (19.6)
     Net income from continuing
      operations               69.7          53.5        267.1         204.9
 
     Discontinued operations     --            --           --        (14.5)
 
     Net income               $69.7         $53.5       $267.1        $190.4
 
     Segment net income is reported on a basis which includes internally
 allocated financing costs.  Individual company results for 2000 have been
 restated to reflect the allocation of financing costs.
 
     Tampa Electric's net income for the first quarter was $30.5 million,
 compared with $28.6 million for the same period in 2000.  The company showed
 improved results from retail energy sales growth of 11 percent driven by
 continued customer growth of almost 3 percent and favorable winter weather;
 base revenue increased by $10.5 million.
     Peoples Gas System reported net income of $10.5 million for the quarter,
 compared with $8.5 million for the same period last year.  Quarterly results
 reflected strong customer growth of more than 4 percent and higher residential
 and commercial sales as a result of favorable winter weather this year, which
 increased net revenue by $1.5 million. Decreased volumes for low-margin,
 transportation gas for electric power generators, interruptible customers and
 off-system sales reflected the higher cost of gas for these customers who have
 the ability to switch to alternate fuels or alter consumption patterns.
     TECO Power Services' net income for the quarter was $2.5 million, after
 the effect of the $6.1 million asset value adjustment, compared with $7.3
 million last year.  Results for the quarter reflected contributions from the
 operation of Commonwealth Chesapeake Station and increased usage of the San
 Jose Power Station in Guatemala, offset by increased financing costs.  The
 Commonwealth Chesapeake Station began commercial operation in the second half
 of 2000 and is normally used for summer peak loads, but a special need for
 power in the PJM market due to transmission constraints allowed the plant to
 run a significant amount this winter.  The asset valuation adjustment was made
 related to its minority interests in smaller international projects.
     TECO Transport reported net income of $8.4 million in the quarter,
 compared with $8.0 million for the same period last year, which included
 approximately $1.5 million associated with the disposition of equipment.
 Higher grain shipments to Puerto Rico, continued strong government grain
 shipments and higher northbound river volumes more than offset the effects of
 lower shipments for Tampa Electric as a result of weather conditions.
     TECO Coal achieved net income of $14.0 million, up from $.5 million last
 year.  These results included increased conventional coal production from the
 Perry County Coal operations that were acquired late last year, and synthetic
 fuel facilities which were not in operation in last year's first quarter.
     TECO Energy's other unregulated companies recorded net income of $11.3
 million for the quarter, compared to $6.1 million for the same period in 2000.
 For the quarter, TECO Coalbed Methane achieved higher earnings, as higher gas
 prices more than offset the impact of normal production declines.  TECO
 Propane Ventures benefited from the combination with Heritage Propane and
 colder winter weather.
 
     Non-operating Items
     Financing costs were higher for the quarter, reflecting higher borrowing
 levels primarily associated with the expansion of the independent power
 business.  Beginning in the first quarter of 2001, financing costs were
 allocated to the respective operating subsidiaries by TECO Energy. Segment
 results for 2001 reflect these allocated financing costs; prior periods have
 been restated to reflect pro forma financing costs had the costs been
 similarly allocated.  In March 2001, the company issued 8.625 million shares
 of common stock.
     Cash from operations was $135.5 million for the quarter, compared with
 $107.2 million in 2000.  Cash from investing activities was ($296.3) million
 compared with ($216.1) million last year, and cash from financing activities
 was $119.7 million compared with $33.1 million last year. Dividend payments
 were $42.4 million in the first quarter of 2001, compared with $41.1 million
 last year.
 
     Outlook
     For 2001, TECO Energy expects earnings to increase 15 percent above last
 year's $1.99 per share.  This forecast is based on the strong first quarter
 results and several other factors discussed below.  TECO Power Services
 expects increased earnings from the addition of the Frontera Power Station, a
 full year of operations at the Hamakua Station and the Hardee Station
 combustion turbine addition and the second phase of the Commonwealth
 Chesapeake Power Station which is expected to enter commercial service in
 June. Customer growth and related increased energy sales and investment in
 facilities to serve the growing customer base are expected to produce improved
 results at the regulated Florida utilities. The company expects to benefit
 from continued strength in commodity natural gas prices at TECO Coalbed
 Methane.  Improvements in metallurgical coal prices sold to European customers
 and higher synthetic coal production are expected to increase net income at
 TECO Coal.
 
     TECO Energy will web cast a conference call discussing the first quarter
 results and the outlook for 2001 and beyond on Thursday, April 19, 2001 at
 9:00 AM.  This broadcast can be accessed through the investor relations
 section of the TECO Energy web site at www.tecoenergy.com.
     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 at 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.  Its principal businesses are Tampa Electric, Peoples Gas System,
 TECO Power Services, TECO Transport, TECO Coal, TECO Coalbed Methane, TECO
 Propane Ventures and TECO Solutions.
     Note:  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
 Peoples Gas System as well as the margins at TECO Coalbed Methane and TECO
 Coal; authorizations from the FERC and energy price changes affecting TECO
 Power Services' merchant plants; changes in and compliance with environmental
 regulations that may impose additional costs or curtail some activities; TECO
 Power Services' ability to successfully develop, construct, finance and
 operate its projects on schedule and within budget; TECO Energy's ability to
 find and successfully implement attractive investments in unregulated
 businesses; interest rates and other factors that could impact TECO Energy's
 ability to obtain access to sufficient capital on satisfactory terms; and TECO
 Coal's ability to successfully operate its synthetic fuel production
 facilities in a manner qualifying for Section 29 federal income tax credits,
 which credits could be impacted by changes in tax law or interpretive action
 by the U. S. Treasury.
     Some of these factors are discussed more fully under "Investment
 Considerations" in the company's Annual Report on Form 10-K for the year ended
 December 31, 2000, and reference is made thereto.
 
                      Summary Information (as of March 31)
 
                             Three months Ended         Twelve months Ended
 
     (millions except
       per share amounts)
                               2001          2000         2001          2000
     Revenues                $672.6        $524.5     $2,443.5      $2,062.0
     Net income from
      continuing operations   $69.7         $53.5       $267.1        $204.9
      (after non-recurring
      charges)
     Net income (loss) from
      discontinued               --            --           --        (14.5)
     Operations
     Net income               $69.7         $53.5       $267.1        $190.4
 
     Earnings per share
      from continuing         $0.54         $0.42        $2.11         $1.58
      operations - basic
     Earnings per share
      from continuing         $0.53         $0.42        $2.09         $1.58
      operations - diluted
 
     Earnings per share
      - basic                 $0.54         $0.42        $2.11         $1.47
     Earnings per share
      - diluted               $0.53         $0.42        $2.09         $1.47
 
     Average common shares
      outstanding -           128.6         126.2        126.5         129.7
      basic
     Average common shares
      outstanding -           129.8         126.2        127.2         129.7
      diluted
 
     (1) Net income (loss)
         from continuing      $69.7         $53.5       $267.1        $224.5
         operations - basic
         (before non-recurring
          charges)
 
     (2) Earnings per share
         from continuing      $0.54         $0.42        $2.11         $1.73
         operations - basic
         (before non-recurring
          charges)
 
 

SOURCE TECO Energy, Inc.
    TAMPA, April 18 /PRNewswire/ -- TECO Energy, Inc. (NYSE:   TE) today
 reported first quarter earnings of $.54 per share, up 29 percent from $.42 per
 share in 2000.  Net income for the quarter was $69.7 million, 30 percent
 higher than the $53.5 million recorded in the 2000 period.
     TECO Energy Chairman and CEO Robert Fagan said, "TECO Energy is off to a
 great start for 2001.  These outstanding first quarter results were led by
 strong growth in our Florida operations, the new power generation projects
 that TECO Power Services brought online last year and good results at TECO
 Coal and TECO Coalbed Methane.  With these results and further improvements
 expected at several of our companies, 2001 earnings are expected to increase
 by 15 percent.  Further, we are continuing to target 10 percent long-term
 earnings growth for 2002 and beyond."
 
     Operating Segment Results:
     Results for the quarter relative to last year reflected the continued
 strong customer growth and favorable weather in the core electric and gas
 businesses; contributions from TECO Power Services' Commonwealth Chesapeake
 Plant and Guatemalan operations offset by a $6.1 million after-tax reserve for
 an asset valuation adjustment related to its minority interests in smaller
 international projects; continued strong U.S. Government grain and northbound
 river shipments at TECO Transport; increased U.S. conventional coal production
 and sale, and the addition of synthetic fuel production at TECO Coal; higher
 realized gas prices at TECO Coalbed Methane and a greater contribution from
 TECO Propane Ventures.
 
 
                                         TECO Energy, Inc.
                                  Three months            Twelve months
                                  Ended 3/31/01           Ended 3/31/01
 
     (in millions)
 
     Net Income Summary        2001          2000         2001          2000
     Tampa Electric           $30.5         $28.6       $146.4        $140.1
     Peoples Gas System        10.5           8.5         23.8          20.9
     TECO Power Services        2.5           7.3         18.0          14.4
     TECO Transport             8.4           8.0         29.7          28.1
     TECO Coal                 14.0           0.5         46.9          10.4
     Other diversified
      companies                11.3           6.1         33.4          24.4
     Other/financing/
       eliminations           (7.5)         (5.5)       (31.1)        (13.8)
 
     Net income before
      charges                  69.7          53.5        267.1         224.5
     Charges                     --            --           --        (19.6)
     Net income from continuing
      operations               69.7          53.5        267.1         204.9
 
     Discontinued operations     --            --           --        (14.5)
 
     Net income               $69.7         $53.5       $267.1        $190.4
 
     Segment net income is reported on a basis which includes internally
 allocated financing costs.  Individual company results for 2000 have been
 restated to reflect the allocation of financing costs.
 
     Tampa Electric's net income for the first quarter was $30.5 million,
 compared with $28.6 million for the same period in 2000.  The company showed
 improved results from retail energy sales growth of 11 percent driven by
 continued customer growth of almost 3 percent and favorable winter weather;
 base revenue increased by $10.5 million.
     Peoples Gas System reported net income of $10.5 million for the quarter,
 compared with $8.5 million for the same period last year.  Quarterly results
 reflected strong customer growth of more than 4 percent and higher residential
 and commercial sales as a result of favorable winter weather this year, which
 increased net revenue by $1.5 million. Decreased volumes for low-margin,
 transportation gas for electric power generators, interruptible customers and
 off-system sales reflected the higher cost of gas for these customers who have
 the ability to switch to alternate fuels or alter consumption patterns.
     TECO Power Services' net income for the quarter was $2.5 million, after
 the effect of the $6.1 million asset value adjustment, compared with $7.3
 million last year.  Results for the quarter reflected contributions from the
 operation of Commonwealth Chesapeake Station and increased usage of the San
 Jose Power Station in Guatemala, offset by increased financing costs.  The
 Commonwealth Chesapeake Station began commercial operation in the second half
 of 2000 and is normally used for summer peak loads, but a special need for
 power in the PJM market due to transmission constraints allowed the plant to
 run a significant amount this winter.  The asset valuation adjustment was made
 related to its minority interests in smaller international projects.
     TECO Transport reported net income of $8.4 million in the quarter,
 compared with $8.0 million for the same period last year, which included
 approximately $1.5 million associated with the disposition of equipment.
 Higher grain shipments to Puerto Rico, continued strong government grain
 shipments and higher northbound river volumes more than offset the effects of
 lower shipments for Tampa Electric as a result of weather conditions.
     TECO Coal achieved net income of $14.0 million, up from $.5 million last
 year.  These results included increased conventional coal production from the
 Perry County Coal operations that were acquired late last year, and synthetic
 fuel facilities which were not in operation in last year's first quarter.
     TECO Energy's other unregulated companies recorded net income of $11.3
 million for the quarter, compared to $6.1 million for the same period in 2000.
 For the quarter, TECO Coalbed Methane achieved higher earnings, as higher gas
 prices more than offset the impact of normal production declines.  TECO
 Propane Ventures benefited from the combination with Heritage Propane and
 colder winter weather.
 
     Non-operating Items
     Financing costs were higher for the quarter, reflecting higher borrowing
 levels primarily associated with the expansion of the independent power
 business.  Beginning in the first quarter of 2001, financing costs were
 allocated to the respective operating subsidiaries by TECO Energy. Segment
 results for 2001 reflect these allocated financing costs; prior periods have
 been restated to reflect pro forma financing costs had the costs been
 similarly allocated.  In March 2001, the company issued 8.625 million shares
 of common stock.
     Cash from operations was $135.5 million for the quarter, compared with
 $107.2 million in 2000.  Cash from investing activities was ($296.3) million
 compared with ($216.1) million last year, and cash from financing activities
 was $119.7 million compared with $33.1 million last year. Dividend payments
 were $42.4 million in the first quarter of 2001, compared with $41.1 million
 last year.
 
     Outlook
     For 2001, TECO Energy expects earnings to increase 15 percent above last
 year's $1.99 per share.  This forecast is based on the strong first quarter
 results and several other factors discussed below.  TECO Power Services
 expects increased earnings from the addition of the Frontera Power Station, a
 full year of operations at the Hamakua Station and the Hardee Station
 combustion turbine addition and the second phase of the Commonwealth
 Chesapeake Power Station which is expected to enter commercial service in
 June. Customer growth and related increased energy sales and investment in
 facilities to serve the growing customer base are expected to produce improved
 results at the regulated Florida utilities. The company expects to benefit
 from continued strength in commodity natural gas prices at TECO Coalbed
 Methane.  Improvements in metallurgical coal prices sold to European customers
 and higher synthetic coal production are expected to increase net income at
 TECO Coal.
 
     TECO Energy will web cast a conference call discussing the first quarter
 results and the outlook for 2001 and beyond on Thursday, April 19, 2001 at
 9:00 AM.  This broadcast can be accessed through the investor relations
 section of the TECO Energy web site at www.tecoenergy.com.
     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 at 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.  Its principal businesses are Tampa Electric, Peoples Gas System,
 TECO Power Services, TECO Transport, TECO Coal, TECO Coalbed Methane, TECO
 Propane Ventures and TECO Solutions.
     Note:  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
 Peoples Gas System as well as the margins at TECO Coalbed Methane and TECO
 Coal; authorizations from the FERC and energy price changes affecting TECO
 Power Services' merchant plants; changes in and compliance with environmental
 regulations that may impose additional costs or curtail some activities; TECO
 Power Services' ability to successfully develop, construct, finance and
 operate its projects on schedule and within budget; TECO Energy's ability to
 find and successfully implement attractive investments in unregulated
 businesses; interest rates and other factors that could impact TECO Energy's
 ability to obtain access to sufficient capital on satisfactory terms; and TECO
 Coal's ability to successfully operate its synthetic fuel production
 facilities in a manner qualifying for Section 29 federal income tax credits,
 which credits could be impacted by changes in tax law or interpretive action
 by the U. S. Treasury.
     Some of these factors are discussed more fully under "Investment
 Considerations" in the company's Annual Report on Form 10-K for the year ended
 December 31, 2000, and reference is made thereto.
 
                      Summary Information (as of March 31)
 
                             Three months Ended         Twelve months Ended
 
     (millions except
       per share amounts)
                               2001          2000         2001          2000
     Revenues                $672.6        $524.5     $2,443.5      $2,062.0
     Net income from
      continuing operations   $69.7         $53.5       $267.1        $204.9
      (after non-recurring
      charges)
     Net income (loss) from
      discontinued               --            --           --        (14.5)
     Operations
     Net income               $69.7         $53.5       $267.1        $190.4
 
     Earnings per share
      from continuing         $0.54         $0.42        $2.11         $1.58
      operations - basic
     Earnings per share
      from continuing         $0.53         $0.42        $2.09         $1.58
      operations - diluted
 
     Earnings per share
      - basic                 $0.54         $0.42        $2.11         $1.47
     Earnings per share
      - diluted               $0.53         $0.42        $2.09         $1.47
 
     Average common shares
      outstanding -           128.6         126.2        126.5         129.7
      basic
     Average common shares
      outstanding -           129.8         126.2        127.2         129.7
      diluted
 
     (1) Net income (loss)
         from continuing      $69.7         $53.5       $267.1        $224.5
         operations - basic
         (before non-recurring
          charges)
 
     (2) Earnings per share
         from continuing      $0.54         $0.42        $2.11         $1.73
         operations - basic
         (before non-recurring
          charges)
 
 SOURCE  TECO Energy, Inc.