Florida Public Utilities Announces Results for 2003
WEST PALM BEACH, Fla., March 5 /PRNewswire-FirstCall/ -- Florida Public
Utilities reported net income of $12,423,000 or $ 3.17 per share. Net income
from continuing operations was $2,522,000, or $.64 per share compared with the
prior year's net income from continuing operations of $2,761,000, or $.70 per
share. Gross profit increased 8% between the years, offset by significant
increases in operating expenses. During the year, the Company experienced
higher expenses for pension, casualty and property insurance, employee medical
benefits, auditing and underground gas line detection. The total increase as
compared with 2002 for such expenses was $1,567,000, which decreased net income
by $.25 per share, net of income taxes. Other increases to the expenses included
higher depreciation and amortization expense of $466,000.
Total revenues increased $14,262,000 in 2003 compared to the prior year despite
the loss of revenue from discontinued operations. The major cause of the
increase was higher natural gas costs in 2003, which are recovered through
revenue. Propane revenues increased over $2,203,000 due to the Nature Coast
acquisition, increases in late fees, and the new assessment of regulatory
compliance fees for propane customers.
Revenues of $1.5 million received from a one-time termination fee offset the
increase in operating expenses. Additionally, in the first quarter of 2003, the
Company sold the assets comprising its water operations to the City of
Fernandina Beach for a gain of $9,901,000 net of income tax. The City paid the
Company $19,242,000 in cash at closing, as well as future consideration of
approximately $7,400,000 to be received annually until February 15, 2010, when
the Company will receive the final payment from the City. The Company recognized
and recorded the present value of the long-term receivable in the amount of
$5,716,000, using a discount rate of 4.34%. Proceeds from the water sale were
utilized to pay off shot term debt. Operating and administrative expenses
increased primarily from higher pension, health care, and liability and property
insurance costs.
On August 14, 2003 the Company filed a request for rate relief with the Florida
Public Service Commission (FPSC) for the electric segment. The Company had a
hearing before the FPSC on February 18, 2004, at which time the FPSC approved a
$1,800,000 increase in annual revenue. The effective date for the increase has
not been set but is anticipated to occur in the second quarter of 2004,
resulting in less than a full year of the annual increase for 2004.
A summary of the financial results for years ended December 31 is presented
below.
Florida Public Utilities
(dollars in thousands except pershare data)
December 31,
2003 2002
Total Revenues $102,723 $88,461 Income from Continuing Operations $2,522 $2,761 Income from Discontinued Operations -
water division $9,901 $602 Net Income $12,423 $3,363 Earningsapplicable to Common Stock $12,394 $3,334 Earnings Per Common Share - basic & diluted:
Continuing Operations $.64 $.70
Discontinued Operations - water division 2.53 .16
Total $3.17 $.86 Average Shares Outstanding 3,905,814 3,871,019 Average Customers - excluding water
division 86,000 83,000
DATASOURCE: Florida Public Utilities Company CONTACT: George M. Bachman , CFO, Treasurer and Corporate Secretary, Florida Public Utilities Company, +1-561-838-1731 Web site: http://www.fpuc.com/
|