Florida Public Utilities Announces Results for 2004
WEST PALM BEACH, Fla., March 18 /PRNewswire-FirstCall/ -- Florida Public
Utilities (AMEX:FPU) reported net income of $3,594,000 or $.91 per share for
the year ended December 31, 2004 compared with the prior year's net income from
continuing operations of $2,522,000, or $.64 per share. Income from
discontinued operations for 2003 was $9,901,000 or $2.53 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 $7.3 million in 2004 primarily due to higher fuel
costs in 2004 that are recovered through revenue, along with the increased
rates approved by the Florida Public Service Commission (FPSC) and higher
propane rates. Offsetting the increase in revenues was a nonrecurring
termination fee of $1.5 million in 2003 revenue.
In 2004, higher expenses of $664,000 for pension, casualty insurance, employee
medical benefits, and underground gas line detection expenses impacted net
income. Other expense increases included higher depreciation and amortization
expense of $408,000 as a result of normal plant growth.
In March 2004, the Company successfully completed a petition with FPSC to
increase rates for electric customers. A rate increase of approximately $1.8
million annually was granted. In 2004, the Company also successfully completed
a petition to increase rates for natural gas customers and was approved an
annual rate increase of $1.2 million effective August 5, 2004, and an
additional rate increase of $4.7 million annually effective on November 18,
2004.
The Company had storm-related expenses due to the hurricanes in 2004 and
charged the expenses to storm reserves. The reserve in the electric segment was
sufficient to cover the expenses related to the hurricanes. The reserve in the
natural gas segment was less than the incurred expenses and these excess costs
were deferred pending the outcome of a request to the FPSC to recover these
expenses through a surcharge on customer bills. The recovery of the surplus
storm expenses, if any, is subject to approval by the FPSC. The FPSC is
expected to determine the amount of any recovery in 2005. Management believes
the FPSC will allow recovery of the natural gas storm expenses through the
special surcharge to customers. If the FPSC does not approve the Company's
request or disallows a portion of the deferred expenses, the disallowed
expenses will be charged against income in 2005. As of December 31, 2004, the
maximum expense that, if denied, could affect 2005 operating income is
approximately $534,000.
This press release contains forward-looking statements within the meaning of
the Securities Litigation Reform Act of 1995, including those relating to
management's belief that the FPSC will allow recovery of storm-related expenses
exceeding current storm reserves through a special surcharge to customers and
that the FPSC will make its determination on these storm expenses 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 years ended December 31, 2004 and 2003 are
summarized below: Florida Public Utilities
(dollars in thousands except per share data) December 31,
2004 2003 Total Revenues $110,039 $102,723 Net Income from Continuing Operations $3,594 $2,522 Income from Discontinued Operations -
water division $0 $9,901 Net Income $3,594 $12,423 Earnings applicable to Common Stock $3,565 $12,394 Earnings Per Common Share - basic & diluted:
Continuing Operations $.91 $.64 Discontinued Operations - water division 0 2.53
Total $.91 $3.17 Average Shares Outstanding 3,938,929 3,905,814
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/
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