TECO Energy Reports Fourth-Quarter Results
TECO Energy Reports Fourth-Quarter Results
Company Provides 2013 Earnings-Per-Share Guidance from Continuing Operations
in a Range between $0.90 and $1.00
Business Wire
TAMPA, Fla. -- February 5, 2013
TECO Energy, Inc. (NYSE:TE) today reported fourth quarter 2012 net income of
$45.1 million, or $0.21 per share, compared with $53.2 million, or $0.25 per
share in the fourth quarter of 2011. Net income from continuing operations was
$45.6 million, or $0.21 per share, in the 2012 fourth quarter, compared with
$47.3 million, or $0.22 per share, for the same period in 2011. The 2012
fourth-quarter loss of $0.5 million reported in discontinued operations
reflected the operating results from TECO Guatemala, and the closing of the
sale in December 2012 (see Discontinued Operations below).
The 2012 full-year net income was $212.7 million, or $0.99 per share, compared
with $272.6 million, or $1.27 per share, in 2011. The 2012 full-year net
income from continuing operations was $246.0 million, or $1.14 per share,
compared with $250.8 million, or $1.17 per share, in 2011. The 2012 full-year
loss reported in discontinued operations was $33.3 million, or $0.15 per
share, compared with net income of $21.8 million, or $0.10 per share, in 2011.
TECO Energy President and Chief Executive Officer John Ramil said, “Our
operating results this quarter reflect stronger customer growth but another
mild start to the winter at our Florida utilities. We are very pleased that
the Florida Public Service Commission unanimously approved the need for our
Polk expansion project in December. TECO Coal reported strong results on lower
volumes and was proactive in reducing production and cost and was able to
deliver good 2012 results even in a weak market.
“Our sale of the Guatemalan companies reflects our commitment to our core
utility operations. We took advantage of an attractive opportunity to obtain
good value and closed on the sale of those operations in December.”
Ramil went on to say, “Looking ahead to 2013, it will be a transitioning and
challenging year for TECO Energy. While our team members have instituted cost
controls and efficiency measures allowing Tampa Electric to operate in 2012 at
2007 cost levels, continued investment in required infrastructure, a slow
economic recovery and mounting operations and maintenance cost pressures will
cause Tampa Electric to earn below the bottom of its allowed return on equity
range. As a result, Tampa Electric will be filing in the spring for a base
rate increase that is estimated at approximately $135 million for new rates in
early 2014. We expect Peoples Gas to continue to benefit from low natural gas
prices and customer growth from a slowly improving economy. And although TECO
Coal will reduce production again in 2013, at the middle of our cost and
production guidance ranges it is positioned to produce $12 million of net
income in 2013 in the current weak coal market.”
Non-GAAP Results
There were no non-GAAP adjustments to net income in the fourth quarter or
full-year periods of 2012 or 2011.
Segment Reporting
The table below includes TECO Energy segment information on a GAAP basis,
which includes all charges and gains for the periods shown.
Segment Information 3 months 12 months
(millions) ended Dec. 31 ended Dec. 31
Net Income Summary 2012 2011 2012 2011
Tampa Electric $ 36.2 $ 37.7 $ 193.1 $ 202.7
Peoples Gas System 7.1 7.2 34.1 32.6
TECO Coal 10.8 13.4 50.2 51.5
Parent & other (8.5 ) (11.0 ) (31.4 ) (36.0 )
Net income from continuing 45.6 47.3 246.0 250.8
operations
Discontinued operations (0.5 ) 5.9 (33.3 ) 21.8
Total net income attributable $ 45.1 $ 53.2 $ 212.7 $ 272.6
to TECO Energy
All amounts included in the operating company discussions below are after tax,
unless otherwise noted.
Tampa Electric
Tampa Electric’s net income for the fourth quarter was $36.2 million, compared
with $37.7 million for the same period in 2011. Results for the quarter
reflected a 1.4% higher average number of customers, higher base revenues due
to weather that was slightly better than in 2011, and lower interest expense,
more than offset by higher depreciation and operations and maintenance
expenses. Fourth quarter net income in 2012 included $1.0 million of Allowance
for Funds Used During Construction (AFUDC) equity, which represents allowed
equity cost capitalized to construction costs, compared with $0.2 million in
the 2011 quarter.
Total degree days in Tampa Electric's service area in the fourth quarter of
2012 were 14% below normal, but 5% above the same period in 2011, resulting in
pretax base revenue approximately $5.0 million higher than in 2011. Total net
energy for load, which is a calendar measurement of retail energy sales rather
than a billing-cycle measurement, increased 3.5% in the fourth quarter of 2012
compared with the same period in 2011. The quarterly energy sales shown on the
statistical summary that accompanies this earnings release reflect the energy
sales based on the timing of billing cycles, which can vary period to period.
The increased number of residential customers drove higher sales to those
customers in the quarter. Energy sales to industrial-phosphate customers
increased due to the transfer of certain load from self-generation to Tampa
Electric’s system.
Operations and maintenance expense, excluding all Florida Public Service
Commission (FPSC)-approved cost-recovery clauses, increased $6.7 million in
the 2012 quarter, reflecting higher generating system maintenance expenses,
higher costs to operate and maintain the distribution system and higher
pension and other employee benefit expenses, partially offset by lower
bad-debt expense. Depreciation and amortization expense increased $2.9 million
in 2012 due to additions to facilities to serve customers. Interest expense
decreased $4.1 million due to lower long-term debt interest rates and balances
and a lower interest rate on customer deposits.
Full-year net income was $193.1 million, compared with $202.7 million in 2011,
driven primarily by lower energy sales and higher depreciation and operations
and maintenance expenses, partially offset by 1.2% higher average number of
customers, and lower interest expense. Net income in 2012 included $2.6
million of AFUDC equity, compared with $1.0 million in 2011.
Full-year total degree days in Tampa Electric's service area were normal, and
almost 3% below the prior year full-year period, reflecting mild winter
weather and the unusually rainy summer weather pattern offset by higher than
normal degree days in the normally mild spring and fall periods, which do not
generate significantly higher energy sales. Pretax base revenue was almost
$6.0 million lower than in 2011, primarily reflecting lower sales to
residential customers from the milder weather and voluntary conservation that
typically occurs during periods without extreme weather and changes in
customer usage patterns.
In the 2012 full-year period, total net energy for load was 0.3% higher than
the same period in 2011. Milder weather reduced sales to higher-margin
residential and smaller commercial customers, while industrial-other sales
were higher, reflecting improvements in the Florida economy. Sales to
interruptible industrial-phosphate customers increased due to the same factors
as described for the quarter above.
Full-year 2012 operations and maintenance expenses, excluding all
FPSC-approved cost-recovery clauses, increased $11.8 million reflecting the
items discussed above. Compared to the 2011 full-year period, depreciation and
amortization expense increased $9.6 million, reflecting additions to
facilities to serve customers. Interest expense decreased $7.4 million due to
the reasons discussed above.
Peoples Gas
Peoples Gas System reported net income of $7.1 million for the quarter,
compared with $7.2 million recorded in 2011. Quarterly results reflected
customer growth of 1.4% and higher therm sales to all customer classes. Therms
sold to commercial and interruptible industrial customers increased due to
improving economic conditions. Volumes for the low-margin transportation
service for electric power generators increased due to low natural gas prices,
which made it more economical to use natural gas for power generation.
Non-fuel operations and maintenance expense increased $1.0 million compared to
the 2011 period, due to higher pipeline awareness and benefit expenses
partially offset by lower bad-debt expense. Interest expense decreased
slightly due to lower long-term debt interest rates and balances and a lower
interest rate on customer deposits.
Full-year net income was $34.1 million, compared with $32.6 million in 2011.
The 2012 results reflect customer growth of 1.2%, lower sales to residential
customers due to mild winter weather more than offset by higher sales to
commercial and industrial customers and power generation customers as
discussed above. Non-fuel operations and maintenance expense decreased $2.1
million, compared with 2011, due in part to an insurance recovery of legal
expenses associated with environmental-contamination claims. In 2011,
operations and maintenance expenses included $2.5 million related to legal
expenses associated with environmental-contamination claims. Interest expense
decreased $1.0 million due to the reasons discussed above. Depreciation
expense increased $1.4 million reflecting additions to facilities to serve
customers.
TECO Coal
TECO Coal reported fourth quarter net income of $10.8 million on sales of 1.4
million tons, compared with $13.4 million on sales of 1.9 million tons in the
same period in 2011.
In 2012, fourth quarter results reflect an average net per-ton selling price,
excluding transportation allowances, of almost $95 per ton. In the fourth
quarter of 2012, the all-in total per-ton cost of sales was more than $85,
3.3% higher than in the 2011 period. The 2012 per-ton cost of sales increase
was driven by spreading fixed costs over fewer tons and included costs
associated with personnel reductions and with idling certain mining
operations. TECO Coal's effective income tax rate in the fourth quarter of
2012 was 19%, compared with 26% in the 2011 period.
TECO Coal recorded full-year net income of $50.2 million on sales of 6.3
million tons in 2012, compared with $51.5 million on sales of 8.1 million tons
in 2011. Lower sales volumes in the 2012 full-year period reflect the current
coal market conditions. The 2012 full-year average net per-ton selling price
was more than $95 per ton, compared with almost $88 per ton in 2011, and the
all-in total per-ton cost of sales was more than $85 per ton compared with
almost $80 per ton in 2011. The 2012 full-year cost of sales reflects
spreading fixed costs over fewer tons, and costs associated with personnel
reductions and with idling certain mining operations. TECO Coal's effective
income tax rate was 24%, compared with 23% in the 2011 full-year period.
Parent & other
The cost for Parent & other in continuing operations in the fourth quarter of
2012 was $8.5 million, compared with a cost of $11.0 million in the same
period in 2011. Results for the quarter include a charge of $0.8 million
associated with the early retirement of the remaining $8.8 million of TECO
Energy parent debt. The 2011 quarter included certain tax adjustments recorded
at Parent. The full-year Parent & other cost in continuing operations was
$31.4 million in 2012, compared with $36.0 million in 2011. Results for the
2012 quarter and full-year periods reflect tax items and lower interest
expense as a result of the mid-year 2011 debt retirement.
The total cost for Parent & other for the fourth quarter of 2012 was $8.3
million, compared with $11.1 million for the 2011 period. The total cost for
Parent & other for the 2012 full-year period was $35.4 million, compared with
$36.6 million in the same period in 2011. Total cost for the 2012 fourth
quarter and full-year periods includes transaction costs and tax items
recorded at Parent related to the TECO Guatemala discontinued operations.
Discontinued Operations
On Sept. 28, 2012, TECO Energy announced that its international power
subsidiary, TECO Guatemala, entered into agreements to sell all of its equity
interests in the Alborada and San José power stations, and related solid fuel
handling and port facilities in Guatemala, for a total purchase price of
$227.5 million in cash. The sale of the Alborada Power Station closed on the
same date for a price of $12.5 million. On Dec. 19, 2012, the sale closed on
the San José Power Station and related facilities and operations for a
purchase price of $215.0 million.
The fourth quarter and full-year 2012 losses in discontinued operations of
$0.5 million and $33.3 million, respectively, reflect the results from
operations for the generating plants in Guatemala through the closing of the
sales, a $28.6 million loss on assets sold including transaction costs, and a
$22.9 million charge associated with foreign tax credits.
2013 Guidance
TECO Energy expects earnings per share in 2013 to be in a range between $0.90
and $1.00, excluding any unusual charges and gains. TECO Energy expects
earnings in 2013 to be driven by the factors discussed below.
Tampa Electric has experienced steady growth in the number of new customers
since the fourth quarter of 2009, and customer growth in 2012 increased from
1.0% in the first quarter to 1.4% in the fourth quarter. Customer growth of
1.2% is anticipated in 2013, but total retail energy sales growth is expected
to be lower than customer growth due to lower average customer usage. Sales to
the lower margin industrial-phosphate customers are expected to be lower in
2013 due to increased self-generation following outages of customers’
generating equipment that increased sales to these customers in 2012. After
three years of virtually unchanged operations and maintenance expense, those
costs are expected to increase in 2013 due to increased expenses to operate
the system and reliably serve customers and higher employee-related expenses,
including pension expense driven by discount rate assumptions in the current
low interest rate environment. In 2013, Tampa Electric expects to earn below
the bottom of its allowed return on equity (ROE) range of 10.25% to 12.25%.
As a result of the increasing pressure on operations and maintenance expense,
higher depreciation expense from investment in infrastructure required to
serve customers, and the economic recovery that has been slower than expected
compared to the assumptions in Tampa Electric’s last base rate proceeding, on
Feb. 4, 2013, Tampa Electric notified the FPSC that it is planning to file a
new base rate proceeding in April for new rates effective in early 2014. The
actual revenue requirement calculation is not final, but is estimated to be
approximately $135 million.
Peoples Gas expects to continue to earn above the middle of its allowed ROE
range of 9.75% to 11.75% from moderate customer growth, which is expected to
continue in 2013 in line with the trends experienced in 2012, and continued
focus on cost management. It also expects to benefit from continued interest
from customers utilizing petroleum and other fuel sources to convert to
natural gas due to the attractive economics.
TECO Coal has 90% of its expected sales of between 5.2 and 5.7 million tons
contracted for 2013. The product mix is expected to be about 50% specialty
coals, which include stoker, metallurgical and PCI coals, and the remainder
utility steam coal. The average selling price across all products is expected
to be more than $86 per ton. All of the 2.7 million tons of steam coal sales
planned for 2013 are committed and priced. The all-in total cost of production
is expected to be below 2012 levels in a range between $81 and $85 per ton due
to actions taken in 2012 to reduce mining costs, and lower royalty payments
and severance taxes, which are a function of selling price. TECO Coal’s
effective income tax rate in 2013 is expected to be 25%.
As engineering has progressed on the Polk Power Station Units 2 – 5 conversion
to combined-cycle operation, the timing of expected capital expenditures has
been refined. The largest capital spending for that project is now expected to
occur in 2014 and 2015. TECO Energy now plans to utilize the majority of
proceeds from the sale of the TECO Guatemala assets to invest in Tampa
Electric’s rate base growth in the form of equity contributions. Over the next
several years, after maintaining Tampa Electric’s capital structure,
additional cash used to repurchase shares as market opportunities allow, and
to offset dilution from shares issued as compensation could be as much as $50
million.
Webcast
As previously announced, TECO Energy will host a webcast with the investment
community to discuss its fourth-quarter results and 2013 guidance at 9:00 am
Eastern time, Tuesday, Feb. 5, 2013. The webcast will be accessible through
the link on TECO Energy’s website: www.tecoenergy.com. The webcast and
accompanying slides will be available for replay for 30 days through the
website, beginning approximately two hours after the conclusion of the live
event.
TECO Energy, Inc. (NYSE: TE) is an energy-related holding company. Its
principal subsidiary, Tampa Electric Company, is a regulated utility in
Florida with both electric and gas divisions (Tampa Electric and Peoples Gas
System). Its other major subsidiary, TECO Coal, owns and operates coal
production facilities in Kentucky and Virginia.
Note: This press release contains forward-looking statements, which are
subject to the inherent uncertainties in predicting future results and
conditions. Actual results may differ materially from those forecasted. The
forecasted results are based on the company's current expectations and
assumptions, and the company does not undertake to update that information or
any other information contained in this press release, except as may be
required by law. Factors that could impact actual results include: regulatory
actions by federal, state or local authorities; unexpected capital needs or
unanticipated reductions in cash flow that affect liquidity; the ability to
access the capital and credit markets when required; general economic
conditions affecting energy sales at the utility companies; economic
conditions, both national and international, affecting the Florida economy and
demand for TECO Coal’s production; costs for alternative fuels used for power
generation affecting demand for TECO Coal’s thermal coal production; weather
variations and changes in customer energy usage patterns affecting sales and
operating costs at Tampa Electric and Peoples Gas and the effect of extreme
weather conditions or hurricanes; general operating conditions; input
commodity prices affecting cost at all of the operating companies; operating
cost and environmental or safety regulations affecting the production levels
and margins at TECO Coal; fuel cost recoveries and related cash at the
utilities; natural gas demand at Peoples Gas; and the ability of TECO Energy's
subsidiaries to operate equipment without undue accidents, breakdowns or
failures. Additional information is contained under "Risk Factors" in TECO
Energy, Inc.'s Annual Report on Form 10-K for the period ended Dec. 31, 2011.
Summary Information (as of Dec. 31, 2012)
Three Months Twelve Months
Ended Ended
(millions except per share
amounts)
2012 2011 2012 2011
Revenues $ 688.4 $ 720.0 $ 2,996.6 $ 3,209.9
Net income from continuing $ 45.6 $ 47.3 $ 246.0 $ 250.8
operations
Net income from discontinued
operations attributable to (0.5 ) 5.9 (33.3 ) 21.8
TECO Energy
Net income attributable to $ 45.1 $ 53.2 $ 212.7 $ 272.6
TECO Energy
Earnings per share from $ 0.21 $ 0.22 $ 1.14 $ 1.17
continuing operations- basic
Earnings per share from
discontinued operations
attributable to TECO Energy – -- 0.03 (0.15 ) 0.10
basic
Total earnings per share
attributable to TECO Energy – $ 0.21 $ 0.25 $ 0.99 $ 1.27
basic
Total earnings per share – $ 0.21 $ 0.25 $ 0.99 $ 1.27
diluted
Average common shares 214.5 213.8 214.3 213.6
outstanding – basic
Average common shares 215.0 215.4 215.0 215.1
outstanding – diluted
TECO Energy
DECEMBER 2012
Figures appearing in these statements are presented as general information and
not in connection with any sale or offer to sell or solicitation of an offer
to buy any securities, nor are they intended as a representation by the
company of the value of its securities. All figures reported are subject to
adjustments as the annual audit by independent accountants may determine to be
necessary and to the explanatory notes affecting income and balance sheet
accounts contained in the company’s Annual Report on Form 10-K. Reference
should also be made to information contained in that and other reports filed
by TECO Energy, Inc. and Tampa Electric Company with the Securities and
Exchange Commission.
TECO ENERGY, Inc.
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
(All significant intercompany transactions have been eliminated in the
consolidated financial statements.)
Three Months Ended Twelve Months Ended
Dec. 31, Dec. 31,
(millions except share 2012 2011 2012 2011
data)
Revenues
Regulated electric and gas $ 550.6 $ 540.7 $ 2,377.4 $ 2,469.8
Unregulated 137.8 179.3 619.2 740.1
Total revenues 688.4 720.0 2,996.6 3,209.9
Expenses
Regulated operations &
maintenance
Fuel 160.2 166.0 694.7 731.4
Purchased power 20.1 22.7 105.3 125.9
Cost of natural gas sold 37.2 32.8 155.7 210.4
Other 120.3 105.5 462.5 436.9
Operation & maintenance
other expense
Mining related costs 102.4 136.9 461.1 574.1
Other 3.5 2.3 7.9 7.1
Depreciation and 83.7 79.3 330.6 317.2
amortization
Taxes, other than income 51.5 53.7 222.3 223.7
Total expenses 578.9 599.2 2,440.1 2,626.7
Income from operations 109.5 120.8 556.5 583.2
Other income (expense)
Allowance for other funds 1.0 0.2 2.6 1.0
used during construction
Other income 3.6 2.4 9.4 6.7
Loss on debt (1.2 ) 0.0 (1.2 ) 0.0
extinguishment
Total other income 3.4 2.6 10.8 7.7
Interest charges
Interest expense 43.3 48.8 185.0 198.0
Allowance for borrowed
funds used during (0.6 ) (0.2 ) (1.5 ) (0.6 )
construction
Total interest charges 42.7 48.6 183.5 197.4
Income before provision 70.2 74.8 383.8 393.5
for income taxes
Provision for income taxes 24.6 27.5 137.8 142.7
Income from continuing 45.6 47.3 246.0 250.8
operations
Discontinued operations
Income (loss) from (2.7 ) 8.7 (10.6 ) 33.3
discontinued operations
Provision for income taxes (2.2 ) 2.7 22.4 11.2
Total discontinued (0.5 ) 6.0 (33.0 ) 22.1
operations, net
Less: Income from
discontinued operations 0.0 0.1 0.3 0.3
attributable to
noncontrolling interest
Income from discontinued
operations attributable to (0.5 ) 5.9 (33.3 ) 21.8
TECO Energy, net
Net income attributable to $ 45.1 $ 53.2 $ 212.7 $ 272.6
TECO Energy
Average common shares
outstanding - basic 214.5 213.8 214.3 213.6
(millions)
Average common shares
outstanding - diluted 215.0 215.4 215.0 215.1
(millions)
Earnings per average
common share outstanding:
Earnings per share from
continuing operations -- $ 0.21 $ 0.22 $ 1.14 $ 1.17
basic
Earnings per share from
continuing operations -- $ 0.21 $ 0.22 $ 1.14 $ 1.17
diluted
Earnings per share from
discontinued operations -- $ 0.00 $ 0.03 ($0.15 ) $ 0.10
basic
Earnings per share from
discontinued operations -- $ 0.00 $ 0.03 ($0.15 ) $ 0.10
diluted
Earnings per share
attributable to TECO $ 0.21 $ 0.25 $ 0.99 $ 1.27
Energy -- basic
Earnings per share
attributable to TECO $ 0.21 $ 0.25 $ 0.99 $ 1.27
Energy -- diluted
TECO ENERGY, Inc.
CONSOLIDATED BALANCE SHEETS (Unaudited)
(All significant intercompany transactions have been eliminated in the
consolidated financial statements.)
Dec. 31, Dec. 31,
(millions) 2012 2011
Assets
Current assets
Cash and cash equivalents $ 200.5 $ 44.0
Restricted cash 0.0 8.7
Receivables 282.7 327.7
Inventories at average cost
Fuel 123.6 136.8
Materials and supplies 82.1 87.3
Derivative assets 0.0 0.9
Income tax receivables 0.4 0.6
Deferred income taxes 63.3 72.7
Prepayments and other current 33.9 31.9
assets
Regulatory assets 70.3 87.3
Total current assets 856.8 797.9
Property, plant and equipment
Utility plant in service
Electric 6,655.8 6,731.7
Gas 1,228.3 1,169.9
Construction work in progress 336.1 247.4
Other property 443.8 432.3
Property plant and equipment at 8,664.0 8,581.3
original cost
Accumulated depreciation (2,673.9 ) (2,613.5 )
Total property, plant and 5,990.1 5,967.8
equipment, net
Other assets
Regulatory assets 382.6 364.5
Goodwill 0.0 55.4
Derivative assets 0.2 0.0
Deferred charges and other assets 126.8 136.6
Total other assets 509.6 556.5
Total assets $ 7,356.5 $ 7,322.2
Liabilities and capital
Current liabilities
Long-term debt due within one
year
Recourse $ 0.0 $ 374.9
Non-recourse 0.0 11.2
Accounts payable 232.8 252.3
Other current liabilities 19.9 17.2
Customer deposits 162.9 159.5
Derivative liabilities 14.6 58.4
Interest accrued 33.2 39.3
Taxes accrued 32.1 20.7
Regulatory liabilities 106.7 86.2
Total current liabilities 602.2 1,019.7
Other liabilities
Deferred income taxes 277.9 150.8
Investment tax credits 9.7 10.0
Regulatory liabilities 651.9 619.4
Derivative liabilities 0.6 8.6
Deferred credits and other 549.7 559.2
liabilities
Long-term debt, less amount due
within one year
Recourse 2,972.7 2,665.0
Non-recourse 0.0 22.3
Total other liabilities 4,462.5 4,035.3
Total liabilities 5,064.7 5,055.0
Capital
Common equity 216.6 215.8
Additional paid in capital 1,564.5 1,553.4
Retained earnings 541.7 519.4
Accumulated other comprehensive (31.0 ) (22.0 )
(loss)
TECO Energy stockholders' equity 2,291.8 2,266.6
Noncontrolling interest 0.0 0.6
Total capital 2,291.8 2,267.2
Total liabilities and capital $ 7,356.5 $ 7,322.2
Book Value Per Share $ 10.58 $ 10.50
TECO ENERGY, Inc.
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(All significant intercompany transactions have been eliminated in the
consolidated financial statements.)
Three Months Ended Twelve Months Ended
Dec. 31, Dec. 31,
(millions) 2012 2011 2012 2011
Cash flows from operating
activities
Net income attributable to $ 45.1 $ 53.2 $ 212.7 $ 272.6
TECO Energy
Adjustments to reconcile
net income to net cash
from operating activities:
Depreciation and 84.5 81.2 337.7 324.6
amortization
Deferred income taxes 21.7 28.5 136.9 146.0
Investment tax credits 0.0 (0.1 ) (0.3 ) (0.4 )
Allowance for other funds (1.0 ) (0.2 ) (2.6 ) (1.0 )
used during construction
Non-cash stock 3.5 2.5 12.0 9.1
compensation
Loss (gain) on sales of 4.0 0.0 18.5 (0.5 )
business / assets, pretax
Deferred recovery clause (5.2 ) (12.6 ) (8.9 ) (9.0 )
Asset impairment, pretax (0.2 ) 0.0 17.2 0.0
Receivables, less
allowance for 85.0 15.1 37.7 5.7
uncollectibles
Inventories (10.3 ) (16.2 ) (2.4 ) 23.5
Prepayments and other 1.1 1.6 (2.0 ) (2.8 )
current assets
Taxes accrued (46.6 ) (40.9 ) 12.1 (5.7 )
Interest accrued (29.5 ) (22.9 ) (5.9 ) 0.3
Accounts payable (23.3 ) (15.7 ) (1.3 ) (42.6 )
Other 20.3 9.0 (4.7 ) 34.3
149.1 82.5 756.7 754.1
Cash flows from investing
activities
Capital expenditures (149.9 ) (155.8 ) (505.1 ) (454.1 )
Allowance for other funds 1.0 0.2 2.6 1.0
used during construction
Net proceeds from sale of 187.0 0.1 194.4 3.5
business / assets
Restricted cash 8.9 0.0 8.9 0.0
Other investments 0.0 0.0 0.0 14.4
47.0 (155.5 ) (299.2 ) (435.2 )
Cash flows from financing
activities
Dividends (47.6 ) (46.4 ) (190.4 ) (183.2 )
Proceeds from sale of 0.7 0.4 3.9 7.0
common stock
Proceeds from long-term (0.2 ) 0.0 538.1 0.0
debt
Repayment of long-term
debt / Purchase in lieu of (181.2 ) (2.8 ) (650.4 ) (153.6 )
redemption
Dividend to noncontrolling 0.0 0.0 (0.3 ) (0.6 )
interest
Restricted cash (1.9 ) 0.0 (1.9 ) 0.0
Net decrease in short-term 0.0 0.0 0.0 (12.0 )
debt
(230.2 ) (48.8 ) (301.0 ) (342.4 )
Net increase (decrease) in (34.1 ) (121.8 ) 156.5 (23.5 )
cash and cash equivalents
Cash and cash equivalents 234.6 165.8 44.0 67.5
at beginning of period
Cash and cash equivalents $ 200.5 $ 44.0 $ 200.5 $ 44.0
at end of period
TECO ENERGY, Inc.
SEGMENT INFORMATION (Unaudited)
(millions) Tampa Peoples TECO TECO Other & TECO
Electric Gas Coal Guatemala Eliminations Energy
Three months ended
Dec. 31,
2012 Revenues - $ 452.9 $ 97.7 $ 134.8 $ -- $ 3.0 $ 688.4
outsiders
Sales to (0.2 ) 1.0 -- -- (0.8 ) --
affiliates
Total 452.7 98.7 134.8 -- 2.2 688.4
revenues
Depreciation
and 60.4 12.9 10.0 -- 0.4 83.7
amortization
Total
interest 23.6 3.4 1.6 -- 14.1 42.7
charges ^(2)
Allocated
interest -- -- 1.6 -- (1.6 ) --
expense ^(2)
Provision
(Benefit) 23.7 4.5 2.5 -- (6.1 ) 24.6
for income
taxes
Income from
continuing 36.2 7.1 10.8 -- (8.5 ) 45.6
operations
Discontinued
operations
attributable -- -- -- (0.7 ) 0.2 (0.5 )
to TECO
Energy, net
of tax ^(3)
Net income
(loss)
attributable $ 36.2 $ 7.1 $ 10.8 $ (0.7 ) $ (8.3 ) $ 45.1
to TECO
Energy ^(1)
2011 Revenues - $ 448.7 $ 92.0 $ 177.5 $ -- $ 1.8 $ 720.0
outsiders
Sales to 0.3 -- -- -- (0.3 ) --
affiliates
Total 449.0 92.0 177.5 -- 1.5 720.0
revenues
Depreciation
and 55.7 12.4 10.9 -- 0.3 79.3
amortization
Total
interest 30.2 4.4 1.8 -- 12.2 48.6
charges ^(2)
Allocated
interest -- -- 1.7 -- (1.7 ) --
expense ^(2)
Provision
(Benefit) 20.5 4.6 4.7 -- (2.3 ) 27.5
for income
taxes
Income from
continuing 37.7 7.2 13.4 -- (11.0 ) 47.3
operations
Discontinued
operations
attributable -- -- -- 6.0 (0.1 ) 5.9
to TECO
Energy, net
of tax ^(3)
Net income
(loss)
attributable $ 37.7 $ 7.2 $ 13.4 $ 6.0 $ (11.1 ) $ 53.2
to TECO
Energy ^(1)
Twelve months ended
Dec. 31,
2012 Revenues - $ 1,980.7 $ 396.6 $ 608.9 $ -- $ 10.4 $ 2,996.6
outsiders
Sales to 0.6 2.3 -- -- (2.9 ) --
affiliates
Total 1,981.3 398.9 608.9 -- 7.5 2,996.6
revenues
Depreciation
and 237.6 50.6 41.0 -- 1.4 330.6
amortization
Total
interest 109.8 16.0 7.1 -- 50.6 183.5
charges ^(2)
Allocated
interest -- -- 6.8 -- (6.8 ) --
expense ^(2)
Provision
(Benefit) 120.2 21.5 15.7 -- (19.6 ) 137.8
for income
taxes
Income from
continuing 193.1 34.1 50.2 -- (31.4 ) 246.0
operations
Discontinued
operations
attributable -- -- -- (29.3 ) (4.0 ) (33.3 )
to TECO
Energy, net
of tax ^(3)
Net income
(loss)
attributable $ 193.1 $ 34.1 $ 50.2 $ (29.3 ) $ (35.4 ) $ 212.7
to TECO
Energy ^(1)
2011 Revenues - $ 2,019.3 $ 450.5 $ 733.0 $ -- $ 7.1 $ 3,209.9
outsiders
Sales to 1.3 3.0 -- -- (4.3 ) --
affiliates
Total 2,020.6 453.5 733.0 -- 2.8 3,209.9
revenues
Depreciation
and 222.1 48.4 45.3 -- 1.4 317.2
amortization
Total
interest 121.8 17.7 6.9 -- 51.0 197.4
charges ^(2)
Allocated
interest -- -- 6.7 -- (6.7 ) --
expense ^(2)
Provision
(Benefit) 124.8 20.6 15.4 -- (18.1 ) 142.7
for income
taxes
Income from
continuing 202.7 32.6 51.5 -- (36.0 ) 250.8
operations
Discontinued
operations
attributable -- -- -- 22.4 (0.6 ) 21.8
to TECO
Energy, net
of tax ^(3)
Net income
(loss)
attributable $ 202.7 $ 32.6 $ 51.5 $ 22.4 $ (36.6 ) $ 272.6
to TECO
Energy ^(1)
(1) Results are based on GAAP net income. For a complete reconciliation between GAAP and
non-GAAP items, see Results Reconciliation in Earnings Release.
Segment net income is reported on a basis that includes internally allocated financing
costs. Internally allocated costs were at pretax rates of 6.00% for 2012 and 6.25% for
(2) 2011. Rates were based on the average of each subsidiary's equity and indebtedness to
TECO Energy assuming a 50/50 debt/equity capital structure. Internally allocated
interest charges are a component of total interest charges.
All periods have been adjusted to reflect the reclassification of results from
(3) operations to discontinued operations for TECO Guatemala and certain charges at Parent
that directly relate to TECO Guatemala.
TAMPA ELECTRIC COMPANY
ELECTRIC OPERATING STATISTICS (Unaudited)
Operating Revenues* Sales -- Kilowatt-hours*
Three
Months Percent Percent
Ended Dec.
31,
2012 2011 Change 2012 2011 Change
Residential $ 211,398 $ 206,377 2.4 1,848,679 1,804,073 2.5
Commercial 145,227 146,661 (1.0 ) 1,454,981 1,467,976 (0.9 )
Industrial
-- 19,263 15,508 24.2 232,103 182,722 27.0
Phosphate
Industrial 24,394 24,609 (0.9 ) 260,153 263,963 (1.4 )
-- Other
Other sales
of 46,086 45,755 0.7 456,490 449,137 1.6
electricity
446,368 438,910 1.7 4,252,406 4,167,871 2.0
Deferred
and other (13,786 ) (8,371 ) 64.7 -- -- --
revenues
Sales for 3,315 3,332 (0.5 ) 50,377 73,015 (31.0 )
resale
Other
operating 16,906 15,094 12.0 -- -- --
revenue
SO[2]
Allowance -- -- -- -- -- --
Sales
NOx
Allowance -- -- -- -- -- --
Sales
$ 452,803 $ 448,965 0.9 4,302,783 4,240,886 1.5
Average 686,633 677,411 1.4 -- -- --
customers
Retail Net
Energy For 4,308,231 4,161,063 3.5
Load
Total 658 629 4.6
Degree Days
Operating Revenues* Sales -- Kilowatt-hours*
Twelve
Months Percent Percent
Ended Dec.
31,
2012 2011 Change 2012 2011 Change
Residential $ 958,955 $ 994,748 (3.6 ) 8,395,166 8,717,992 (3.7 )
Commercial 612,282 612,598 (0.1 ) 6,185,012 6,206,564 (0.3 )
Industrial
-- 75,686 61,966 22.1 913,071 731,228 24.9
Phosphate
Industrial 101,209 99,287 1.9 1,088,367 1,072,474 1.5
-- Other
Other sales
of 184,053 185,199 (0.6 ) 1,826,964 1,835,311 (0.5 )
electricity
1,932,185 1,953,798 (1.1 ) 18,408,580 18,563,569 (0.8 )
Deferred
and other (26,641 ) (10,292 ) 158.9 -- -- --
revenues
Sales for 16,210 21,680 (25.2 ) 267,061 352,860 (24.3 )
resale
Other
operating 59,625 55,380 7.7 -- -- --
revenue
SO[2]
Allowance 1 4 (75.0 ) -- -- --
Sales
NOx
Allowance -- 37 (100.0 ) -- -- --
Sales
$ 1,981,380 $ 2,020,607 (1.9 ) 18,675,641 18,916,429 (1.3 )
Average 684,236 675,799 1.2 -- -- --
customers
Retail Net
Energy For 19,254,552 19,205,173 0.3
Load
Total 4,190 4,298 (2.5 )
Degree Days
* in thousands
PEOPLES GAS SYSTEM
GAS OPERATING STATISTICS (Unaudited)
Operating Revenues* Therms*
Three Months Percent Percent
Ended Dec. 31,
2012 2011 Change 2012 2011 Change
By Customer
Segment:
Residential $ 31,931 $ 31,398 1.7 18,835 17,816 5.7
Commercial 33,536 32,308 3.8 107,788 104,009 3.6
Industrial 3,362 2,309 45.6 68,487 53,869 27.1
Off System 15,551 12,250 26.9 40,720 32,600 24.9
Sales
Power 2,751 2,444 12.6 182,906 141,360 29.4
generation
Other revenues 9,294 9,352 (0.6 ) -- -- --
$ 96,425 $ 90,061 7.1 418,736 349,654 19.8
By Sales Type:
System supply $ 59,444 $ 54,872 8.3 69,209 60,542 14.3
Transportation 27,687 25,837 7.2 349,527 289,112 20.9
Other revenues 9,294 9,352 (0.6 ) -- -- --
$ 96,425 $ 90,061 7.1 418,736 349,654 19.8
Average 343,761 339,066 1.4 -- -- --
customers
Operating Revenues* Therms*
Twelve Months Percent Percent
Ended Dec. 31,
2012 2011 Change 2012 2011 Change
By Customer
Segment:
Residential $ 125,355 $ 140,787 (11.0 ) 70,811 77,676 (8.8 )
Commercial 134,146 137,985 (2.8 ) 421,452 409,271 3.0
Industrial 10,331 8,833 17.0 237,338 205,081 15.7
Off System 73,675 105,974 (30.5 ) 223,964 230,992 (3.0 )
Sales
Power 12,395 10,629 16.6 913,462 614,302 48.7
generation
Other revenues 34,868 39,877 (12.6 ) -- -- --
$ 390,770 $ 444,085 (12.0 ) 1,867,027 1,537,322 21.4
By Sales Type:
System supply $ 247,361 $ 302,714 (18.3 ) 334,268 353,306 (5.4 )
Transportation 108,541 101,494 6.9 1,532,759 1,184,016 29.5
Other revenues 34,868 39,877 (12.6 ) -- -- --
$ 390,770 $ 444,085 (12.0 ) 1,867,027 1,537,322 21.4
Average 342,907 338,840 1.2 -- -- --
customers
* in thousands
Contact:
TECO Energy, Inc.
News Media: Cherie Jacobs, 813-228-4945
Investor Relations: Mark Kane, 813-228-1772
Internet: http://www.tecoenergy.com
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