Florida Public Utilities Announces Results for the Second Quarter of 2009
August 12 2009 - 11:18AM
Marketwired
Florida Public Utilities Company (NYSE Amex: FPU) reported higher
earnings for the second quarter ending June 30, 2009 compared to
this same period in 2008. Net income for the second quarter of 2009
was $1,004,000 or $.16 per share, compared with $81,000 or $.01 per
share for the same period last year. Net income for the six months
ended June 30, 2009 was $1,748,000 or $.28 per share, compared to
$2,031,000 or $.33 per share for the same period last year.
Total revenues decreased $6,402,000 in the second quarter of
2009 compared to the same period in 2008, primarily due to the
lower fuel costs and associated taxes that are recovered directly
from customers. Excluding the revenue for fuel costs and associated
taxes passed directly through to our customers, remaining revenues
or gross profit rose by $1,316,000 during the second quarter of
2009 compared to the same period in 2008 mainly as the result of
the recent base rate increase in our natural gas segment.
On May 5, 2009 the Florida Public Service Commission (FPSC)
approved a final natural gas rate increase of approximately $8.5
million in revenues annually with new rates beginning June 4, 2009.
On June 17, 2009 the Office of Public Counsel entered a protest to
FPSC's final natural gas rate increase ruling and a full hearing
will be required within eight months. The vote for the final rate
increase is scheduled for February 9, 2010. Previously approved
final rates and the related revenues will be collected pending
possible refund upon final determination at the full hearing. It is
possible that the final rate increase awarded may be lower than was
approved by FPSC on May 5, 2009 and a refund may be required to our
customers for any variance in the final rates approved at the full
hearing compared to the previously approved rates on May 5, 2009.
At this time management does not expect any adjustments to the
final rate increase approved on May 5, 2009 and has not set up a
liability for a possible rate refund as of June 30, 2009.
Management will recognize a liability for a possible rate refund if
it concludes that adjustments are probable. The impact of a refund
of previously collected rates could be material to our results of
operation.
Operating expenses remained flat in the second quarter of 2009
compared to the same period in 2008. Merger related administrative
and general expenses were $540,000 in the second quarter of 2009
which were almost the same as the initial merger negotiations'
costs of approximately $500,000 incurred during the same period in
2008.
On April 20, 2009, FPU and Chesapeake Utilities Corporation
(Chesapeake) announced a definitive merger agreement, pursuant to
which FPU will merge with a wholly-owned subsidiary of Chesapeake
with FPU being the surviving corporation and operating as a
wholly-owned subsidiary of Chesapeake after the merger. The merger
was unanimously approved by the Board of Directors of each company
on April 17, 2009. The merger is subject to approvals of the
shareholders of each of FPU and Chesapeake Utilities as well as the
satisfaction of other conditions which were set forth in the merger
agreement. The Company's management believes that the merger will
close in the fourth quarter of 2009.
This press release contains forward-looking statements including
those relating to the expectations of management regarding the
benefit of the recent natural gas rate increase approved by the
FPSC and the possible adjustments that may be required pending the
final rate hearing as well as management's expectation that the
merger with Chesapeake Utilities will close in the fourth quarter
of 2009. These statements entail certain risks and uncertainties
and actual results may differ materially from what is expressed in
such forward-looking statements. Essential factors that could cause
actual results to differ materially from those expressed in these
forward-looking statements include, but are not limited to, those
set forth under "Risk Factors" in the Company's Form 10-K for the
year ended December 31, 2008 and our Form 10-Q for the quarter
ended June 30, 2009.
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 second quarter and year to date
2009 and 2008 are summarized below:
Florida Public Utilities
(Dollars in thousands except per share data)
Three Months Ended Six Months Ended
June 30, June 30,
2009 2008 2009 2008
---------- ---------- ---------- ----------
Total Revenues $ 34,974 $ 41,376 $ 80,755 $ 86,406
Net Income $ 1,004 $ 81 $ 1,748 $ 2,031
Earnings for Common Stock $ 997 $ 74 $ 1,734 $ 2,017
Earnings per Common Share -
basic & diluted $ .16 $ .01 $ .28 $ .33
Average Shares Outstanding 6,123,697 6,078,446 6,120,101 6,075,005
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