Florida Public Utilities Announces Third Quarter 2004 Results
WEST PALM BEACH, Fla., Nov. 10 /PRNewswire-FirstCall/ -- Florida Public
Utilities (AMEX:FPU) reported third quarter ended September 30, 2004 income
from continuing operations of $221,000 or $.05 per share, compared with a loss
from continuing operations for the same period last year of $82,000 or $.02 per
share. Total revenues for the quarter increased by $2,555,000 or 12%. Income
from continuing operations for the nine months ended September 30, 2004 was
$2,156,000 or $ .54 per share, compared to last year, which was $2,213,000 or
$.56 per share. Income from discontinued operations for the nine months ended
September 30, 2003 was $9,816,000 or $2.52 per share.
The Company experienced a significant increase in electric revenues in the
quarter and year to date, primarily attributable to the rate relief granted in
March 2004 and higher fuel revenue that resulted from increased fuel costs. Revenue for propane also increased in both the quarter and year to date due to
customer growth and higher rates charged for propane. Natural gas revenue
increased for the quarter primarily due to increased fuel costs. Year-to-date
revenue for natural gas was lower than last year, primarily due to revenue
associated with a non-recurring termination fee of $1.5 million recorded in
2003.
Impacting the quarter and year-to-date income from continuing operations were
increased total operating expenses. Higher revenues were offset by increased
pension, insurance, and benefit-related expenses experienced in 2004. Other
expense increases included depreciation and amortization due to normal plant
growth.
The Company successfully completed a request for rate relief with the Florida
Public Service Commission (FPSC) for the electric segment in the first quarter
of 2004. Annual rate relief in the amount of approximately $1.8 million was
granted mid-March 2004. On October 19, 2004 the Company was granted natural gas
rate relief of approximately $5.9 million annually. Interim rate relief of $1.2
million became effective August 5, 2004, with the remaining $4.7 million
effective on November 18, 2004.
The Company incurred storm-related expenses due to the hurricanes in 2004 and
charged those expenses to storm reserves. The expenses incurred for the
electric areas had storm reserves that covered the amounts incurred for the
hurricanes. The natural gas areas had expenses exceeding current storm reserves
and have deferred those expenses pending a request to the FPSC for recovery
through a surcharge. The Company will file a natural gas petition with the FPSC
to request recovery of these storm expenses along with an amount for a future
storm reserve. Management feels the FPSC will allow recovery through a special
surcharge to customers over a period of time in the future. As of September 30,
2004, there are $375,000 of natural gas storm expenses that have been deferred
and are classified as a regulatory asset. Additional charges for repairs
performed in the fourth quarter are expected and will be included in the
petition for recovery. The recovery of storm damages, if any, is expected to
be determined in early 2005. If the FPSC does not approve the Company's request
for a special surcharge to customers or disallows a portion of the costs
charged to the reserve, expenses will increase by the disallowed portion.
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 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 early 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.
Key operating results for the third quarter and year to date 2004 compared to
the third quarter and year to date 2003 are summarized below: Florida Public Utilities
(dollars in thousands except per share data)
Three Months Ended Nine Months Ended
September 30, September 30,
2004 2003 2004 2003 Total Revenues $24,183 $21,628 $79,637 $77,186 Net Income (Loss)
from Continuing
Operations $221 $(82) $2,156 $2,213 Income (Loss) from
Discontinued
Operations --
water division $-- $(5) $-- $9,816 Net Income (Loss) $221 $(87) $2,156 $12,029 Earnings (Loss) for
Common Stock $214 $(94) $2,135 $12,008 Earnings (Loss) Per
Common Share --
basic & diluted:
Continuing Operations $.05 $(.02) $.54 $.56 Discontinued
Operations --
water division -- -- -- 2.52
Total $.05 $(.02) $.54 $3.08 Average Shares
Outstanding 3,944,798 3,912,398 3,935,232 3,902,288
Average Customers 90,000 86,000 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/
|