Company provides 2015
earnings-per-share guidance in a range between $1.08 and
$1.11
TECO Energy, Inc. (NYSE:TE) today reported that fourth-quarter
2014 non-GAAP results from continuing operations were $45.0
million, or $0.19 on a per-share basis, compared with $37.7
million, or $0.18 on a per-share basis in 2013. The 2014 results
exclude a $14.6 million consolidated state deferred tax balance
adjustment related to the pending sale of TECO Coal, and $3.0
million of costs associated with the acquisition of New Mexico Gas
Co. (NMGC). On a per share basis, the NMGC acquisition was
approximately $0.03 accretive to fourth-quarter results.
Full-year 2014 non-GAAP results from continuing operations,
which exclude the net impact of $6.7 million of consolidated state
deferred tax balance adjustments and $16.6 million of costs
associated with the integration and acquisition of NMGC, were
$229.7 million, or $1.03 on a per-share basis, compared with $194.9
million, or $0.91 on a per-share basis in 2013. On a per share
basis, these results reflect approximately $0.01 of accretion from
the acquisition of NMGC.
TECO Energy President and Chief Executive Officer John Ramil
said, “2014 was a watershed year for TECO Energy. Our Florida
utilities achieved net income growth of more than 15%, and enjoyed
customer growth well above national averages. We expanded our
utility operations with our NMGC acquisition in September, and
we’re benefitting from accretion from the acquisition earlier than
we originally expected. We are committed to exiting the coal
business, and continue to work with the purchaser to complete the
sale this year. Upon closing, this action will complete our return
to our utility foundation.”
Fourth-quarter 2014 GAAP net income was $10.8 million, or $0.04
per share, compared with $42.0 million, or $0.20 per share, in the
fourth quarter of 2013. Net income from continuing operations was
$27.4 million or $0.11 per share in the 2014 fourth quarter,
compared with $35.4 million, or $0.17 per share, for the same
period in 2013.
Full-year 2014 GAAP net income was $130.4 million, or $0.58 per
share, compared with net income of $197.7 million, or $0.92 per
share, in 2013. Net income from continuing operations was $206.4
million, or $0.92 per share, compared with $188.7 million, or $0.88
per share in 2013.
As a result of the previously announced agreement to sell TECO
Coal (see the Discontinued Operations section later in this
release), those operations were classified as discontinued
operations in the third quarter of 2014.
The full-year $76.0 million loss in discontinued operations
includes the operating results from TECO Coal, the impairment and
valuation charges totaling $76.4 million and items related to the
2012 sale of TECO Guatemala (see the Discontinued Operations
section later in this release).
Non-GAAP Results
Non-GAAP results from continuing operations exclude transaction
and integration costs associated with the acquisition of NMGC, and
consolidated deferred tax balance adjustments related to the
acquisition of NMGC and the pending sale of TECO Coal.
The table below compares the TECO Energy GAAP net income with
the non-GAAP measures used in this release. Non-GAAP results
exclude charges and gains contained in the Results
Reconciliation table later in this release. See the Non-GAAP
Presentation section and Results Reconciliation table
later in this release for reconciliation to GAAP results and a
discussion regarding this presentation of non-GAAP results and
management’s use of this information.
All amounts included in the non-GAAP table below are after
tax.
Results Comparisons
3 months endedDec. 31
12 monthsended Dec. 31
(millions)
2014
2013
2014
2013
Net income $ 10.8 $ 42.0 $ 130.4 $ 197.7 Discontinued operations
(16.6 ) 6.6 (76.0 )
9.0 Net income from continuing operations 27.4 35.4 206.4
188.7 Charges and gains 17.6 2.3
23.3 6.2
Non-GAAP results from
continuing operations
$
45.0
$
37.7
$
229.7
$
194.9
Segment Reporting
The table below includes TECO Energy segment information on a
GAAP basis, which includes all charges and gains for the periods
shown.
Segment
Information
3 monthsended Dec. 31
12 monthsended Dec. 31
(millions)
Net Income Summary
2014
2013
2014
2013
Tampa Electric $ 37.4 $ 39.8 $ 224.5 $ 190.9 Peoples Gas System 8.9
7.6 35.8 34.7 New Mexico Gas Co.(1) 11.4 -- 10.5 -- Other (net)(2)
(30.3 ) (12.0 ) (64.4 )
(36.9 ) Net income from continuing operations 27.4 35.4
206.4 188.7 Discontinued operations (3) (16.6 )
6.6 (76.0 ) 9.0
Total net income attributable to TECO Energy
$
10.8
$
42.0
$
130.4
$
197.7
(1) The 12-months-ended Dec. 31
period reflects the four months of actual results post-closing.
(2) The Other segment (net)
includes transaction and integration costs associated with the
acquisition of NMGC and net consolidated deferred tax balance
adjustments related to the acquisition of NMGC and the pending sale
of TECO Coal.
(3) In the three- and 12-months
ended 2014 periods, discontinued operations include the operating
results at TECO Coal, and the impairment charges and negative
valuation allowances for Kentucky tax benefits, a consolidated tax
benefit recorded in the Other segment, and a benefit related to the
2012 sale of TECO Guatemala.
All amounts included in the operating company discussions below
are after tax, unless otherwise noted.
Tampa Electric
Tampa Electric’s net income for the fourth quarter of 2014 was
$37.4 million, compared with $39.8 million for the same period in
2013. While fourth quarter results in 2014 reflect customer growth
and one additional month of higher rates from the rate case
settlement effective Nov. 1, 2013, energy sales were lower due to
milder weather, and results included three months of lower software
amortization expense compared to a full 12-month benefit of $4
million recognized in 2013’s fourth quarter. Results also reflect
$0.6 million lower earnings on assets recovered through the
Environmental Cost Recovery Clause (ECRC) due to a lower current
weighted average cost of capital, which includes the lower return
on equity (ROE) from the 2013 rate case settlement. Results
reflected lower operations and maintenance expenses and slightly
higher interest expense from higher long-term debt balances.
Fourth-quarter net income in 2014 included $3.2 million of
Allowance for Funds Used During Construction (AFUDC) equity, which
represents allowed equity cost capitalized to construction costs,
compared with $2.0 million in the 2013 quarter.
Total degree days in Tampa Electric's service area in the fourth
quarter of 2014 were 10% below normal and 12% below the 2013
period. Total net energy for load, which is a calendar measurement
of retail energy sales rather than a billing-cycle measurement,
decreased 2.8% in the fourth quarter of 2014 compared with the same
period in 2013, driven by milder weather partially offset by 1.6%
customer growth. In the 2014 period, pretax base revenues were
essentially unchanged from 2013, as lower energy sales were offset
by approximately $7 million of higher pretax base revenue as a
result of the 2013 rate case settlement. Sales to residential and
commercial customers decreased primarily from the milder weather,
while sales to non-phosphate industrial customers increased due to
the improving economy. Sales to lower-margin industrial-phosphate
customers were lower as self-generation by those customers
increased. (The quarterly energy sales shown on the statistical
summary that accompanies this earnings release reflect the energy
sales based on the timing of billing cycles, which can vary period
to period.)
Operations and maintenance expense, excluding all Florida Public
Service Commission (FPSC)-approved cost-recovery clauses, was $2.0
million lower than in the 2013 quarter. These results reflect $3.9
million of higher cost to reliably serve customers and operate and
maintain the system, which was more than offset by lower
employee-related costs, due to the timing of the accrual of
performance-based incentive compensation for all employees and
lower pension expense. Depreciation and amortization expense
increased $3.8 million in 2014, primarily as a result of normal
additions to facilities to reliably serve customers, and the
absence of the benefit to depreciation in the 2013 quarter
discussed above.
Full-year net income was $224.5 million, compared with $190.9
million in 2013, driven primarily by the benefits from the 2013
rate case settlement, higher energy sales from 1.6% customer growth
and a stronger economy, and lower operations and maintenance
expense. Full-year net income in 2014 included $10.5 million of
AFUDC equity, compared with $6.3 million in the 2013 period. These
items were partially offset by higher depreciation expense, and
$2.9 million lower earnings on assets recovered through the ECRC.
Full-year total degree days in Tampa Electric's service area were
4% below normal, and 3% below 2013. Pretax base revenue included
almost $50 million of higher revenue as a result of the 2013 rate
case settlement. In the 2014 full-year period, total net energy for
load was 0.7% higher than in 2013, driven by customer growth.
Operations and maintenance expenses, excluding all FPSC-approved
cost-recovery clauses, decreased $1.0 million in the 2014 full-year
period reflecting lower employee-related costs, including pension
expense, and the elimination of the storm damage reserve accrual,
partially offset by higher costs to operate and maintain the
system. Compared to the 2013 full-year period, depreciation and
amortization expense increased $6.0 million, reflecting additions
to facilities to serve customers.
Peoples Gas
Peoples Gas System reported net income of $8.9 million for the
fourth quarter, compared with $7.6 million in 2013. Average
customer growth was 2.3% in the quarter, which resulted in higher
therm sales to residential customers helped by early winter
weather. Sales to commercial and industrial customers increased as
a result of the stronger Florida economy. Fourth-quarter results in
2014 reflected almost $1.3 million lower non-fuel operations and
maintenance expense driven primarily by lower employee-related
costs, which was affected by the timing of performance-based
incentive compensation accruals for all employees based on
achievement of financial results. The fourth quarter of 2013
reflected the full accrual of incentives, while in 2014 the
accruals occurred in the third and fourth quarters. Depreciation
and amortization increased $1.2 million due to normal additions to
facilities to serve customers, and the absence of the benefit
recorded in 2013 to change software amortization similar to Tampa
Electric’s discussed above. Sales to power-generation customers
decreased due to two power generators not operating.
Peoples Gas reported full year 2014 net income of $35.8 million,
compared with $34.7 million in 2013. Results reflect a 1.9% higher
average number of customers and higher therm sales to residential
and commercial customers due to more-normal winter weather and
improving economic conditions. Higher commercial sales volumes were
also helped by an almost doubling of therms sold to compressed
natural gas (CNG) vehicle fleets. Sales to power generation
customers decreased due to the same reasons as in the fourth
quarter, and off-system sales volumes decreased due to new entrants
in the off-system sales market. Depreciation and amortization
increased $1.6 million due to normal additions to facilities to
serve customers. Non-fuel operations and maintenance expense was in
line with 2013.
New Mexico Gas Co.
NMGC reported fourth quarter net income of $11.4 million. Fourth
quarter heating degree days in New Mexico were 7% below normal,
reflecting a late start to winter temperatures. Fourth quarter 2014
customer growth was 0.4%.
Discontinued Operations
The fourth quarter 2014 loss in discontinued operations of $16.6
million consisted of the TECO Coal loss from operations described
below and an additional $11.6 million impairment charge and related
tax valuation adjustments related to the current market value of
TECO Coal, and $0.2 million of costs recorded in the Other segment.
Full-year discontinued operations resulted in a loss of $76.0
million comprised of the full-year operating results discussed
below, the impairment charges and tax valuation allowances totaling
$76.4 million, and net benefits of $6.0 million recorded in the
Other segment, relating to taxes and the 2012 sale of TECO
Guatemala.
The fourth-quarter loss from operations was $4.8 million on
sales of 1.5 million tons, compared with net income of $6.7 million
on similar volume sold in the same period in 2013. In 2014,
fourth-quarter results reflect selling prices and costs associated
with reductions in personnel and steps taken in advance of closing
the sale of the company.
TECO Coal’s full-year loss from operations in 2014 was $5.6
million on sales of 5.5 million tons, compared with net income of
$9.0 million on 5.8 million tons sold in the 2013 period. The 2014
full-year results reflect the same factors as the quarter.
Other (net)
The cost from continuing operations for Other net of
eliminations in the fourth quarter of 2014 was $30.3 million,
compared with a cost of $12.0 million in the same period in 2013.
The non-GAAP cost from continuing operations in 2014 was $12.7
million, compared with a cost of $9.7 million in 2013. Non-GAAP
costs in 2014 excluded a $14.6 million consolidated deferred income
tax balance adjustment to reflect the pending sale of TECO Coal and
$3.0 million of costs associated with the acquisition and
integration of NMGC, compared with $2.3 million of NMGC-related
costs in 2013. The higher non-GAAP costs in 2014 reflect $1.1
million of interest expense related to notes at New Mexico Gas
Intermediate (NMGI), the parent of NMGC, and $1.0 million of
interest expense previously allocated to TECO Coal.
The 2014 full-year cost from continuing operations was $64.4
million, compared with $36.9 million in the 2013 period. The
non-GAAP cost from continuing operations was $41.1 million in 2014,
which excludes $16.6 million of NMGC acquisition- and
integration-related costs, and net consolidated state deferred tax
balance adjustments of $6.7 million, compared with $30.7 million in
2013, which excluded $6.2 million of NMGC acquisition-related
costs. The higher non-GAAP cost in 2014 reflects $1.4 million of
NMGI interest expense, the fourth-quarter interest expense
previously allocated to TECO Coal, $3.5 million of
integration-related labor and other unallocated costs, and $3.1
million of tax items, including offsets at parent to tax benefits
at Tampa Electric.
The segment data accompanying this earnings release presents
Other and Eliminations as separate segments. The discussion above
nets the two segments.
2015 Guidance from Continuing
Operations in a range between $1.08 and $1.11
TECO Energy expects to deliver earnings from continuing
operations, excluding charges or gains, in a range between $1.08
and $1.11 in 2015, driven by the factors discussed below.
Tampa Electric expects to earn in the upper half of its allowed
ROE range of 9.25% to 11.25%, driven by $7.5 million of higher base
revenues that were effective Nov. 1, 2014 as a result of its
September 2013 rate case settlement agreement, average customer
growth trends in line with those experienced in 2014, and higher
AFUDC. Retail energy sales to residential, commercial and
non-phosphate industrial customers are expected to grow by almost
1.0%. Total retail sales are expected to be about 0.3% higher, as
sales to lower-margin interruptible Industrial-Phosphate customers
are expected to decline due to increased self-generation. These
sales forecasts reflect the impact of improved lighting and
appliance efficiency and customer energy conservation. Full-year
operations and maintenance expenses are expected to be at levels
lower than 2014 as higher costs to operate the system and reliably
serve customers are offset by lower employee-related costs and the
impact of synergies in Florida as a result of the NMGC integration.
Depreciation expense is expected to be higher due to normal
additions to facilities to serve customers.
Peoples Gas expects to continue to earn in the upper half of its
allowed ROE range of 9.75% to 11.75% from customer growth trends in
line with those experienced in 2014, and continued interest from
customers utilizing petroleum and other fuel sources to convert to
natural gas. Operations and maintenance expense and depreciation
trends are expected to be similar to Tampa Electric.
NMGC expects 2015 customer growth of more than 0.5%, volume
growth at about the same level, and lower operations and
maintenance expense from integration synergies. NMGC will credit
$2.0 million to customer bills in the first 12 months post-closing
and $4.0 million in each subsequent 12-month period until new base
rates are established. NMGC is expected to be accretive to TECO
Energy’s earnings per share in 2015.
The forecasts for all utilities assume normal weather in
2015.
Other (net) cost is expected to increase in 2015. While the
benefit of refinancing the $191 million of 6.75% notes due in the
spring of 2015 is expected to offset the impact of no longer
allocating interest expense to TECO Coal, non-utility interest cost
in 2015 will reflect a full year of interest on debt at NMGI.
Discontinued operations will include the operating results for
TECO Coal through the closing of the sale as well as reflect the
accounting for the completion of the pending sale. TECO Coal
expects to record operating losses during this period due to
continued weak coal market conditions. The current market
conditions may impact the ultimate timing and terms of the closing
of the sale.
Non-GAAP Presentation
Management believes it is helpful to present a non-GAAP measure
of performance that reflects the ongoing operations of TECO
Energy’s businesses and that allows investors to better understand
and evaluate the business as it is expected to operate in future
periods.
Management and the board of directors use non-GAAP measures as a
tool for measuring the company’s performance, for making decisions
that are dependent upon the profitability of the company’s various
operating units, and for determining levels of incentive
compensation.
The non-GAAP measures of financial performance used by the
company are not measures of performance under accounting principles
generally accepted in the United States and should not be
considered an alternative to net income or other GAAP figures as an
indicator of the company’s financial performance or liquidity. TECO
Energy’s non-GAAP presentation of net income may not be comparable
to similarly titled measures used by other companies.
The Results Reconciliation table below presents non-GAAP
financial results after eliminating the effects of identified
charges and gains. This provides investors additional information
to assess the company’s results and future earnings potential.
Results
Reconciliation
(millions)
3 months endedDec. 31
12 months endedDec. 31
2014
2013
2014
2013
GAAP net income attributable to TECO Energy
$
10.8
$
42.0
$
130.4
$
197.7
Discontinued operations (16.6 ) 6.6
(76.0 ) 9.0 Net income from continuing
operations
27.4
35.4
206.4
188.7
Add costs associated with the acquisition of NMGC
3.0
2.3
16.6
6.2
Add consolidated deferred tax balance adjustments (net)
14.6
--
6.7
--
Total charges and gains 17.6 2.3
23.3 6.2 Non-GAAP results (1) $ 45.0
$ 37.7 $ 229.7 $ 194.9
(1) A non-GAAP financial measure
is a numerical measure that includes or excludes amounts, or is
subject to adjustments that have the effect of including or
excluding amounts, from the most directly comparable GAAP
measure.
Webcast
As previously announced, TECO Energy will host a webcast with
the investment community to discuss its quarterly results and 2015
guidance at 10:00 a.m. Eastern time today. The webcast will be
accessible through a link on TECO Energy’s website:
www.tecoenergy.com. The webcast and accompanying slides will be
available for replay for 30 days through the website, beginning
approximately two hours after the conclusion of the live event.
TECO Energy Inc. (NYSE: TE) is an energy-related holding company
with regulated electric and gas utilities in Florida and New
Mexico. Tampa Electric serves more than 700,000 customers in West
Central Florida; Peoples Gas System serves more than 350,000
customers across Florida; and New Mexico Gas Co. serves more than
513,000 customers across New Mexico. Other TECO Energy subsidiaries
include TECO Coal, which owns and operates coal-production
facilities in Kentucky, Tennessee and Virginia.
Note: This press release contains forward-looking statements,
which are subject to the inherent uncertainties in predicting
future results and conditions. Actual results may differ materially
from those forecasted. The forecasted results are based on the
company's current expectations and assumptions, and the company
does not undertake to update that information or any other
information contained in this press release, except as may be
required by law. Factors that could impact actual results include:
regulatory actions by federal, state or local authorities; the
ability to successfully implement the integration plans for NMGC
and generate the financial results to make the acquisition
accretive; unexpected capital needs or unanticipated reductions in
cash flow that affect liquidity; the ability to access the capital
and credit markets when required; general economic conditions
affecting customer growth and energy sales at the utility
companies; economic conditions affecting the Florida and New Mexico
economies; weather variations and customer energy usage patterns
affecting sales and operating costs at the utilities and the effect
of weather conditions on energy consumption; the effect of extreme
weather conditions or hurricanes; general operating conditions;
input commodity prices affecting cost at all of the operating
companies; natural gas demand at the utilities; the ability of TECO
Energy's subsidiaries to operate equipment without undue accidents,
breakdowns or failures; and the ability of the purchasers of TECO
Coal to obtain suitable financing, and satisfy other closing
conditions for TECO Energy to successfully close the sale
transaction. Additional information is contained under "Risk
Factors" in TECO Energy, Inc.'s Annual Report on Form 10-K for the
period ended Dec. 31, 2013, and as updated in subsequent filings
with the SEC.
Summary Information
3 MonthsEnded Dec. 31,
12 MonthsEnded Dec. 31,
(millions except per share amounts)
2014 2013 2014
2013 Revenues $
695.5
$ 562.2 $
2,566.4
$ 2,355.1 Net income from continuing operations
$
27.4
$
35.4
$
206.4
$
188.7
Net income from discontinued operations attributable to TECO Energy
(16.6
)
6.6
(76.0
)
9.0
Net income attributable to TECO Energy
$
10.8
$
42.0
$
130.4
$
197.7
Earnings per share from continuing operations- basic
$
0.11
$
0.17
$
0.92
$
0.88
Earnings per share from discontinued operations attributable to
TECO Energy – basic
(0.07
)
0.03
(0.34
)
0.04
Total earnings per share attributable to TECO Energy – basic
$
0.04
$
0.20
$
0.58
$
0.92
Total earnings per share – diluted
$
0.04
$
0.20
$
0.58
$
0.92
Average common shares outstanding – basic
232.5
215.2
223.1
215.0
Average common shares outstanding – diluted
233.1
215.7
223.7
215.5
TECO Energy
DECEMBER 2014
Figures appearing in these statements are presented as general
information and not in connection with any sale or offer to sell or
solicitation of an offer to buy any securities, nor are they
intended as a representation by the company of the value of its
securities. All figures reported are subject to adjustments as the
annual audit by independent accountants may determine to be
necessary and to the explanatory notes affecting income and balance
sheet accounts contained in the company’s Annual Report on Form
10-K. Reference should also be made to information contained in
that and other reports filed by TECO Energy, Inc. and Tampa
Electric Company with the Securities and Exchange Commission.
TECO ENERGY, Inc.
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (All
significant intercompany transactions have been eliminated in the
consolidated financial statements.)
Three Months Ended Twelve Months
Ended Dec. 31, Dec. 31, (millions except share data)
2014 2013
2014 2013
Revenues Regulated electric and gas
$ 692.9 $
559.8
$ 2,557.3 $ 2,342.5 Unregulated
2.6 2.4
9.1
12.6 Total revenues
695.5 562.2
2,566.4 2,355.1
Expenses
Regulated operations & maintenance Fuel
168.5 162.9
692.3 680.2 Purchased power
12.3 13.9
71.4
64.7 Cost of natural gas sold
99.2 25.3
209.7 142.2
Other
162.5 147.0
547.8 524.4 Operations &
maintenance other expense
6.9 4.3
29.5 12.5
Depreciation and amortization
85.3 69.0
315.3 291.8
Taxes, other than income
48.7
44.8
195.0
184.7 Total expenses
583.4
467.2
2,061.0
1,900.5
Income from operations
112.1 95.0
505.4 454.6
Other income
(expense) Allowance for other funds used during construction
3.2 2.0
10.5 6.3 Other income
0.9 (0.6 )
0.5
1.8 Total other income
4.1 1.4
11.0 8.1
Interest charges
Interest expense
49.6 40.9
176.4 165.0 Allowance for
borrowed funds used during construction
(1.7
) (1.1 )
(5.3 )
(3.6 ) Total interest charges
47.9 39.8
171.1 161.4
Income before
provision for income taxes 68.3 56.6
345.3 301.3
Provision for income taxes
40.9
21.2
138.9
112.6
Income from continuing operations 27.4
35.4
206.4 188.7
Discontinued operations Income
(loss) from discontinued operations
(27.8 ) 5.2
(125.4 ) 5.2 Provision for income taxes
(11.2 ) (1.4 )
(49.4 ) (3.8 ) Income (loss) from
discontinued operations, net
(16.6 )
6.6
(76.0 )
9.0
Net income $ 10.8
$ 42.0
$ 130.4
$ 197.7
Average common shares
outstanding - basic (millions) 232.5 215.2
223.1
215.0
Average common shares outstanding - diluted (millions)
233.1 215.7
223.7 215.5
Earnings per
average common share outstanding: Earnings per share from
continuing operations -- basic
$ 0.11 $ 0.17
$
0.92 $ 0.88 Earnings per share from continuing operations --
diluted
$ 0.11 $ 0.17
$ 0.92 $ 0.88
Earnings per share from discontinued operations -- basic
($0.07 ) $ 0.03
($0.34 ) $ 0.04
Earnings per share from discontinued operations -- diluted
($0.07 ) $ 0.03
($0.34 ) $ 0.04
Earnings per share attributable to TECO Energy -- basic
$
0.04 $ 0.20
$ 0.58 $ 0.92 Earnings per share
attributable to TECO Energy -- diluted
$ 0.04 $ 0.20
$ 0.58 $ 0.92
TECO ENERGY,
Inc. CONSOLIDATED BALANCE SHEETS (Unaudited) (All
significant intercompany transactions have been eliminated in the
consolidated financial statements.)
Dec. 31, Dec. 31, (millions)
2014
2013
Assets Current assets Cash and
cash equivalents
$ 25.4 $ 185.2 Receivables
299.8 287.2 Inventories at average cost Fuel
96.4
118.7 Materials and supplies
75.4 85.9 Derivative assets
0.0 9.7 Deferred income taxes
72.8 100.3 Prepayments
and other current assets
22.6 36.4 Regulatory assets
53.6 34.3 Assets held for sale
109.6
0.0 Total current assets
755.6 857.7
Property, plant
and equipment Utility plant in service Electric
7,094.8
6,934.0 Gas
1,984.6 1,308.3 Construction work in progress
640.0 386.7 Other property
14.5
448.3 Property plant and equipment at original
cost
9,733.9 9,077.3 Accumulated depreciation
(2,645.7 ) (2,907.2 ) Total property,
plant and equipment, net
7,088.2
6,170.1
Other assets Regulatory assets
348.5 293.1 Goodwill
408.3 0.0 Derivative assets
0.0 0.3 Deferred charges and other assets
65.8 126.8
Assets held for sale
59.8
0.0 Total other assets
882.4
420.2
Total assets $
8,726.2 $ 7,448.0
Liabilities
and capital Current liabilities Long-term debt due within one
year Recourse
$ 274.5 $ 83.3 Notes payable
139.0 84.0 Accounts payable
$ 288.6 $ 261.7
Other current liabilities
16.8 19.5 Customer deposits
176.2 164.5 Derivative liabilities
36.6 0.1 Interest
accrued
39.9 31.9 Taxes accrued
29.9 34.6 Regulatory
liabilities
57.0 85.8 Liabilities associated with assets
held for sale
39.4 0.0
Total current liabilities
1,097.9
765.4
Other liabilities Deferred
income taxes
519.2 444.0 Investment tax credits
9.0
9.4 Regulatory liabilities
729.0 631.4 Derivative
liabilities
6.1 0.2 Deferred credits and other liabilities
370.9 426.1 Liabilities associated with assets held for sale
65.4 0.0 Long-term debt, less amount due within one year
Recourse
3,354.0 2,837.8
Total other liabilities
5,053.6
4,348.9
Total liabilities
6,151.5 5,114.3
Capital Common equity
234.9
217.3 Additional paid in capital
1,875.9 1,581.3 Retained
earnings
479.6 548.3 Accumulated other comprehensive (loss)
(15.7 ) (13.2 ) Total
capital
2,574.7 2,333.7
Total liabilities and capital $
8,726.2 $ 7,448.0
Book Value
Per Share $ 10.96 $ 10.74
TECO ENERGY, Inc. CONSOLIDATED STATEMENTS
OF CASH FLOWS (Unaudited) (All significant intercompany
transactions have been eliminated in the consolidated financial
statements.) Three Months Ended Twelve Months Ended Dec. 31,
Dec. 31, (millions)
2014 2013
2014 2013
Cash flows from operating
activities Net income
$ 10.8 $ 42.0
$
130.4 $ 197.7 Adjustments to reconcile net income to
net cash from operating activities: Depreciation and amortization
86.2 78.2
341.9 329.5 Deferred income taxes &
Investment tax credits
31.0 21.3
89.4 110.1 Allowance
for other funds used during construction
(3.2 ) (2.0
)
(10.5 ) (6.3 ) Non-cash stock compensation
2.5 3.3
12.7 13.5 Gain on sales of business / assets,
pretax
0.0 (1.3 )
(0.2 ) (1.6 ) Deferred
recovery clause
(9.7 ) (2.4 )
(15.2 )
(6.2 ) Asset impairment, pretax
17.5 0.0
115.9 0.0
Receivables, less allowance for uncollectibles
(10.7
) 59.9
(36.6 ) (4.5 ) Inventories
22.4
(2.0 )
12.8 1.1 Prepayments and other current assets
8.3 2.0
2.8 (2.2 ) Taxes accrued
(47.5
) (42.6 )
1.1 1.4 Interest accrued
(20.5
) (23.5 )
7.3 (1.3 ) Accounts payable
52.8
25.3
23.4 35.9 Other
18.7
(5.7 )
(10.4 )
(8.5 )
158.6 152.5
664.8 658.6
Cash flows from investing activities Capital
expenditures
(222.5 ) (161.5 )
(714.3 )
(532.4 ) Allowance for other funds used during construction
3.2 2.0
10.5 6.3 Purchase of a business, net of cash
acquired
1.0 0.0
(751.5 ) 0.0 Net proceeds
from sale of business / assets
(0.1 ) 3.9
0.2
4.3 Other investments
(7.9 )
0.0
(7.9 )
0.0
(226.3 )
(155.6 )
(1,463.0 )
(521.8 )
Cash flows from financing activities
Dividends paid
(51.7 ) (47.8 )
(199.2 )
(191.2 ) Proceeds from sale of common stock
5.7 (0.7 )
302.3 6.7 Proceeds from long-term debt
(0.6 )
0.0
563.6 0.0 Repayment of long-term debt / Purchase in lieu
of redemption
0.0 0.0
(83.3 ) (51.6 ) Net
increase in short-term debt
67.0
84.0
55.0
84.0
20.4
35.5
638.4 (152.1
) Net increase (decrease) in cash and cash equivalents
(47.3 ) 32.4
(159.8 ) (15.3 ) Cash and
cash equivalents at beginning of period
72.7
152.8
185.2
200.5 Cash and cash equivalents at end of
period
$ 25.4 $ 185.2
$ 25.4 $ 185.2
Supplemental disclosure of non-cash activities Debt
assumed in NMGI acquisition
$ 0.0 $ 0.0
$
200.0 $ 0.0 Capital expenditures accrued - excluded above
$ 3.1 $ 5.3
$ 13.3 $ 4.7
TECO ENERGY, Inc.
SEGMENT INFORMATION (Unaudited)
(millions)
Tampa
Peoples TECO TECO
Electric Gas Coal
NMGC(4)
Other(5)
Eliminations(5)
Energy Three months ended Dec. 31,
2014 Revenues - outsiders $ 473.0 $ 98.5 $ -- $ 121.3
$ 2.7 $ -- $ 695.5 Sales to affiliates 0.3
0.5 -- --
10.2 (11.0 ) -- Total
revenues 473.3 99.0 -- 121.3 12.9 (11.0 ) 695.5 Depreciation and
amortization 63.0 13.7 -- 8.2 0.4 -- 85.3 Total interest charges
(2) 23.7 3.5 -- 3.1 17.8 (0.2 ) 47.9 Allocated interest expense (2)
-- -- -- 0.0 0.4 (0.4 ) -- Provision (Benefit) for income taxes
21.0 5.7 -- 7.6 6.7 (0.1 ) 40.9 Net Income from continuing
operations 37.4 8.9 -- 11.4 (4.4 ) (25.9 ) 27.4 Income (loss) from
discontinued operations, net of tax (3) -- -- (16.4 ) -- (0.2 ) --
(16.6 ) Net income (loss) (1) $ 37.4 $
8.9 $ (16.4 ) $ 11.4 $ (4.6 ) $ (25.9 )
$ 10.8
2013 Revenues - outsiders $ 473.0 $
86.4 $ -- $ -- $ 2.8 $ -- $ 562.2 Sales to affiliates
0.2 -- -- --
0.1 (0.3 ) --
Total revenues 473.2 86.4 -- -- 2.9 (0.3 ) 562.2
Depreciation and amortization 56.8 11.9 -- -- 0.3 -- 69.0 Total
interest charges (2) 22.3 3.4 -- -- 16.0 (1.9 ) 39.8 Allocated
interest expense (2) -- -- -- -- 1.9 (1.9 ) -- Provision (Benefit)
for income taxes 22.9 4.8 -- -- (6.5 ) -- 21.2 Income from
continuing operations 39.8 7.6 -- -- 41.1 (53.1 ) 35.4 Income
(loss) from discontinued operations, net of tax (3) -- -- 6.7 --
(0.1 ) -- 6.6 Net income (loss) (1) $ 39.8
$ 7.6 $ 6.7 $ -- $ 41.0
$ (53.1 ) $ 42.0
Twelve months ended Dec.
31, 2014 Revenues - outsiders $ 2,019.9 $ 398.5 $ -- $
137.5 $ 10.5 $ - $ 2,566.4 Sales to affiliates 1.1
1.1 -- --
40.6 (42.8 ) -
Total revenues 2,021.0 399.6 -- 137.5 51.1 (42.8 ) 2,566.4
Depreciation and amortization 248.6 54.0 -- 11.0 1.7 -- 315.3 Total
interest charges (2) 92.8 13.8 -- 4.2 66.1 (5.8 ) 171.1 Allocated
interest expense (2) -- -- -- -- 1.4 (1.4 ) -- Provision (Benefit)
for income taxes 133.2 22.7 -- 7.1 (24.1 ) -- 138.9 Income from
continuing operations 224.5 35.8 -- 10.5 17.8 (82.2 ) 206.4 Income
(loss) from discontinued operations, net of tax (3) -- -- (82.0 )
-- 6.0 -- (76.0 ) Net income (loss) (1) $
224.5 $ 35.8 $ (82.0 ) $ 10.5 $ 23.8
$ (82.2 ) $ 130.4
2013 Revenues
- outsiders $ 1,949.6 $ 392.7 $ -- $ -- $ 12.8 $ -- $ 2,355.1 Sales
to affiliates 0.9 0.8 --
-- 0.5 (2.2
) -- Total revenues 1,950.5 393.5 -- -- 13.3
(2.2 ) 2,355.1 Depreciation and amortization 238.8 51.5 -- -- 1.5
-- 291.8 Total interest charges (2) 91.8 13.5 -- -- 63.9 (7.8 )
161.4 Allocated interest expense (2) -- -- -- -- 7.8 (7.8 ) --
Provision (Benefit) for income taxes 116.9 21.9 -- -- (26.2 ) --
112.6 Income from continuing operations 190.9 34.7 -- -- 177.3
(214.2 ) 188.7 Income (loss) from discontinued operations, net of
tax (3) -- -- 9.0 -- -- -- 9.0 Net income (loss) (1)
$ 190.9 $ 34.7 $ 9.0 $ --
$ 177.3 $ (214.2 ) $ 197.7
(1) Results are based on GAAP net income. For a complete
reconciliation between GAAP and non-GAAP items, see Results
Reconciliation in Earnings Release.
(2) Segment net income
is reported on a basis that includes internally allocated financing
costs. Internally allocated costs were at pretax rates of 6.00% for
2014 and 2013. Rates were based on the average of each subsidiary's
equity and indebtedness to TECO Energy assuming a 50/50 debt/equity
capital structure. Internally allocated interest charges are a
component of total interest charges.
(3) All periods have
been adjusted to reflect the reclassification of results from
operations to discontinued operations for TECO Coal and TECO
Guatemala, along with certain charges at Parent that directly
relate to TECO Coal and TECO Guatemala.
(4) Results for New
Mexico Gas Company are reflective of results since the date of
acquisition, Sep. 2, 2014.
(5) Represents a change in
presentation to segment previously combined and reported as Other
& Eliminations.
TAMPA ELECTRIC COMPANY
ELECTRIC OPERATING STATISTICS (Unaudited)
Operating Revenues* Sales -- Kilowatt-hours*
Three Months Ended Dec. 31, Percent
Percent 2014 2013
Change 2014 2013
Change Residential
$ 229,978 $ 227,533
1.1 1,964,382 2,007,976
(2.2 )
Commercial
146,735 146,416
0.2 1,488,904
1,521,367
(2.1 ) Industrial -- Phosphate
12,636 18,229
(30.7 ) 153,800 228,238
(32.6 ) Industrial -- Other
25,877 25,355
2.1 287,088 283,856
1.1 Other sales of
electricity
45,445 45,507
(0.1 )
452,181 466,043
(3.0 )
460,671 463,040
(0.5 ) 4,346,355
4,507,480
(3.6 ) Deferred and other revenues
(6,172 ) (6,923 )
10.8 -- --
--
Provision for Revenue Stipulation
-- --
-- --
--
-- Sales for resale
3,254 2,038
59.7
87,826 51,987
68.9 Other operating revenue
15,543 15,076
3.1 -- --
-- SO2
Allowance Sales
-- --
-- -- --
-- NOx
Allowance Sales
-- --
-- -- --
-- $ 473,296
$ 473,231
0.0
4,434,181 4,559,467
(2.7 )
Average customers
709,873
698,826
1.6 --
-- -- Retail Net Energy
For Load
4,342,208 4,469,299
(2.8 )
Total Degree Days
682 777
(12.2 )
Operating Revenues* Sales --
Kilowatt-hours*
Twelve Months Ended Dec. 31, Percent
Percent 2014 2013
Change 2014 2013
Change
Residential
$ 1,007,570 $ 936,833
7.6
8,655,850 8,469,567
2.2 Commercial
602,093
581,205
3.6 6,142,206 6,089,719
0.9 Industrial
-- Phosphate
59,912 71,895
(16.7 )
737,576 895,363
(17.6 ) Industrial -- Other
104,581 100,339
4.2 1,163,210 1,131,450
2.8 Other sales of electricity
181,897 177,385
2.5 1,826,897 1,831,563
(0.3 )
1,956,053 1,867,657
4.7
18,525,739 18,417,662
0.6 Deferred and other
revenues
(7,502 ) 12,125
(161.9 )
-- --
-- Provision for Revenue Stipulation
--
--
-- -- --
-- Sales for resale
12,955
8,492
52.6 259,072 222,265
16.6 Other
operating revenue
59,493 62,219
(4.4 )
-- --
-- SO2 Allowance Sales
1 --
--
-- --
-- NOx Allowance Sales
--
--
--
-- --
-- $
2,021,000 $ 1,950,493
3.6
18,784,811 18,639,927
0.8
Average customers
706,161
694,735
1.6
-- -- -- Retail
Net Energy For Load
19,314,740 19,177,842
0.7
Total Degree Days
4,038 4,160
(2.9 )
* in thousands
PEOPLES GAS SYSTEM GAS
OPERATING STATISTICS (Unaudited)
Operating Revenues* Therms*
Three
Months Ended Dec. 31, Percent
Percent 2014 2013
Change 2014 2013
Change
By Customer Segment: Residential
$
37,534 $ 31,271
20.0 21,562 17,519
23.1
Commercial
34,311 32,165
6.7 117,226 107,823
8.7 Industrial
3,205 3,527
(9.1 )
72,359 68,961
4.9 Off System Sales
8,532 5,416
57.5 20,262 13,610
48.9 Power generation
1,187 1,954
(39.3 ) 149,322 169,777
(12.0 ) Other revenues
11,740
9,972
17.7 --
--
-- $
96,509 $ 84,305
14.5
380,731 377,690
0.8 By
Sales Type: System supply
$ 55,771 $ 46,328
20.4 48,795 38,434
27.0 Transportation
28,998 28,004
3.5 331,936 339,256
(2.2
) Other revenues
11,740
9,973
17.7 -- --
-- $ 96,509 $
84,305
14.5 380,731
377,690
0.8 Average customers
355,902 347,932
2.3
-- --
--
Operating Revenues* Therms*
Twelve Months Ended Dec. 31, Percent Percent
2014 2013
Change
2014 2013
Change By Customer
Segment: Residential
$ 144,117 $ 128,148
12.5 80,775 74,370
8.6 Commercial
139,075 133,439
4.2 460,510 438,150
5.1
Industrial
13,101 13,432
(2.5 ) 274,283
272,010
0.8 Off System Sales
39,358 56,660
(30.5 ) 84,026 143,068
(41.3 )
Power generation
6,794 9,885
(31.3 )
643,512 744,360
(13.5 ) Other revenues
48,472 42,166
15.0
-- --
--
$ 390,917 $ 383,730
1.9
1,543,106 1,671,958
(7.7
) By Sales Type: System supply
$
225,723 $ 226,808
(0.5 ) 194,225
249,482
(22.1 ) Transportation
116,722 114,756
1.7 1,348,881 1,422,476
(5.2 ) Other
revenues
48,472 42,166
15.0 -- --
--
$ 390,917 $ 383,730
1.9 1,543,106 1,671,958
(7.7 ) Average customers
353,903 347,367
1.9
-- --
-- * in
thousands
NEW MEXICO GAS COMPANY GAS
OPERATING STATISTICS (Unaudited)
Operating Revenues* Therms*
Three Months
Ended Dec. 31, Percent
Percent 2014
2013(1)
Change 2014
2013(1)
Change By Customer Segment: Residential
$ 88,787 $ 92,633
(4.2 ) 100,509
114,526
(12.2 ) Commercial
23,743 24,250
(2.1 ) 33,507 37,974
(11.8 )
Industrial
823 803
2.5 1,355 1,431
(5.3
) Off System Sales
-- --
-- -- --
-- On System Transportation
6,108 6,142
(0.6
) 91,302 93,977
(2.8 ) Off System
Transportation
226 210
7.6 11,973 11,488
4.2 Other revenues
1,667
1,823
(8.6 ) -- --
-- $
121,354 $ 125,861
(3.6 )
238,646 259,396
(8.0
) By Sales Type: System supply
$
113,353 $ 117,686
(3.7 ) 135,371
153,931
(12.1 ) Transportation
6,334 6,352
(0.3 ) 103,275 105,465
(2.1 )
Other revenues
1,667 1,823
(8.6 ) -- --
-- $
121,354
$ 125,861
(3.6 ) 238,646
259,396
(8.0 ) Average
customers
513,403 511,186
0.4
Total Degree Days
1,604 1,899
(15.5
)
Operating Revenues*
Therms*
Four Months Ended Dec. 31, Percent
Percent 2014
2013(1)
Change 2014
2013(1)
Change By Customer Segment: Residential
$ 99,872 $ 103,655
(3.6 )
108,208 122,933
(12.0 ) Commercial
27,126 27,541
(1.5 ) 37,403 42,365
(11.7 ) Industrial
936 920
1.7
1,538 1,636
(6.0 ) Off System Sales
--
--
-- -- --
-- On System Transportation
7,104 7,185
(1.1 ) 111,622 114,202
(2.3 ) Off System Transportation
312 277
12.6 16,484 15,015
9.8 Other revenues
2,197 2,372
(7.4
) -- --
--
$ 137,547 $ 141,950
(3.1 ) 275,255 296,151
(7.1 ) By Sales Type:
System supply
$ 127,934 $ 132,116
(3.2
) 147,149 166,934
(11.9 )
Transportation
7,416 7,462
(0.6 )
128,106 129,217
(0.9 ) Other revenues
2,197 2,372
(7.4
) -- -- --
$ 137,547 $ 141,950
(3.1 ) 275,255
296,151
(7.1 ) Average customers
512,615 510,289
0.5
Total Degree Days
1,621 1,937
(16.3 )
(1) Information presented for 2013 is for
comparative purposes only, as this was before the date of
acquisition (Sep. 2, 2014).
* in thousands
TECO Energy, Inc.News Media: Cherie Jacobs, 813-228-4945Investor
Relations: Mark Kane, 813-228-1772Internet:
http://www.tecoenergy.com
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