Florida Public Utilities Announces First Quarter 2005 Results
WEST PALM BEACH, Fla., May 11 /PRNewswire-FirstCall/ -- Florida Public
Utilities (AMEX:FPU) reported first quarter ended March 31, 2005 net income of
$2,353,000, or $ .59 per share, compared with net income from the same period
last year of $1,413,000, or $.36 per share. The Company's increase in net
income was primarily attributable to electric rate relief granted in March 2004
and natural gas rate increases in August and November 2004.
Total revenues increased $4,713,000 in the first quarter of 2005 over the same
period in 2004, primarily due to the increased natural gas and electric rates
approved by the Florida Public Service Commission (FPSC), along with higher
fuel costs in 2005 that are recovered through revenues and higher propane
rates.
The Company experienced an increase of 15% or $1,148,000 in operating expenses
during the quarter as compared with the first quarter of 2004. There was an
increase of $111,000 in payroll expenses due to a shift in the electric
division from work on capital assets in 2004 to work on operational and
maintenance items. Pension expense increased $101,000 due to the expected
return on pension assets not covering the growth in pension liabilities and
interest on the liabilities. Another contributing factor to the increase in
operating expenses was higher depreciation and amortization expense of
$336,000. This increase includes items that were approved for amortization in
the natural gas rate case, which began in January 2005, such as the bare steel
replacement program and environmental expenses, as well as normal plant growth.
The Company has incurred fuel-related expenses associated with the negotiation
of new fuel contracts effective in 2008 for electric supply. Those costs have
been passed through our fuel cost recovery clause. The recovery of these
fuel-related costs, if any, will be subject to the approval of the FPSC and is
expected to be determined in 2005. If the FPSC does not approve the Company's
pass-through of these costs in the fuel cost recovery clause or disallows a
portion of the costs, the expenses will increase by the disallowed portion. As
of March 31, 2005, the maximum exposure that could affect operating income in
2005 is approximately $65,000.
This press release contains forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995, including those relating
to management's belief that the FPSC will allow recovery of special fuel costs
through their fuel cost recovery clause in 2005. Such statements involve
certain risks and uncertainties that could cause actual results to differ
materially from those in the forward-looking statements. Such risks and
uncertainties relate to the regulatory review process of the FPSC, which is
beyond the control of the Company.
Florida Public Utilities is primarily in the business of providing natural gas,
electric and propane gas distribution services throughout Florida.
Key operating results for the first quarter ended March 31, 2005 and 2004 are
summarized below: Florida Public Utilities
(dollars in thousands except per share data) Three Months Ended
March 31,
2005 2004 Total Revenues $35,438 $30,725 Net Income $2,353 $1,413 Earnings for Common Stock $2,346 $1,406 Earnings per Common Share - basic & diluted: $.59 $.36 Average Shares Outstanding 3,960,619 3,928,889
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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