Florida Public Utilities Announces First Quarter 2004 Results
WEST PALM BEACH, Fla., May 10 /PRNewswire-FirstCall/ -- Florida Public
Utilities reported first quarter ended March 31, 2004 income from continuing
operations of $1,413,000, or $ .36 per share, compared with income from
continuing operations for the same period last year of $1,813,000, or $.46 per
share. In addition to total revenues decreasing by $424,000 or 1%, and gross
profit decreasing by $335,000 or 3%, the Company experienced significant
increases in operating expenses, resulting in a $400,000 or 22% decrease in net
income from continuing operations. During the quarter, insurance costs
increased by $148,000 as a result of higher medical expenses, increased
premiums for workers' compensation, and higher general liability insurance.
Other increases to expenses included higher depreciation and amortization of
$176,000.
Natural gas revenues for the quarter decreased $1,322,000 due to the $1,500,000
early termination fee from a contract recorded in 2003. This was offset by an
increase in units sold. Both electric and propane revenues increased by
$510,000 and $388,000, respectively. Electric revenues increased primarily due
to increased fuel revenue and an increase in units sold. The increase in
propane revenues is primarily attributable to higher costs of gas passed
through to customers and the addition of a large wholesale customer.
The Company successfully filed a request for rate relief with the Florida
Public Service Commission (FPSC) for the electric segment in the first quarter. Rate relief in the amount of $1,800,000 was granted effective March 17, 2004.
Additionally, the Company is preparing to file for rate relief for the natural
gas segment in the second quarter of 2004. The request includes recovery for
$9,100,000 for environmental liabilities, as well as recovery for recent
increases to certain operating expenses, including pension and insurance
expenses. The Company will request the inclusion of goodwill and intangible
assets in the rate base. The Company is requesting approximately $8,200,000 in
annual rate relief. This amount is subject to review by the FPSC, which may
not grant the full amount requested. If an increase is granted, it is
anticipated the rate relief will take effect in the fourth quarter of 2004.
The Company is also requesting interim relief in the amount of $1,500,000
annually which, if granted, will take effect this summer until final rate
relief is granted.
Statements in this press release regarding Florida Public Utilities Company's
business which are not historical facts are "forward-looking statements" that
involve risks and uncertainties. For a discussion of such risks and
uncertainties, which could cause actual results to differ from those contained
in the forward-looking statements, see the disclosures in the Company's filings
with the Securities and Exchange Commission.
Key operating results for the first quarter 2004 compared to the first quarter
2003 are summarized below: Florida Public Utilities
(dollars in thousands except per share data) Three Months Ended
March 31,
2004 2003 Total Revenues $30,725 $31,149 Net Income from Continuing Operations $1,413 $1,813 Income from Discontinued Operations -
water division $-- $9,882 Net Income $1,413 $11,695 Earnings applicable to Common Stock $1,406 $11,688 Earnings Per Common Share - basic & diluted:
Continuing Operations $.36 $ .46 Discontinued Operations-water division -- 2.54 Total $ .36 $3.00 Average Shares Outstanding 3,928,889 3,894,978 Average Customers - excluding water division 91,000 86,000
Florida Public Utilities is primarily in the business of providing natural gas,
electric and propane gas distribution services throughout Florida. DATASOURCE: Florida Public Utilities Company CONTACT: George M. Bachman, CFO and Treasurer, Florida Public Utilities Company, +1-561-838-1731 Web site: http://www.fpuc.com/
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