Company maintains 2015
earnings-per-share guidance range
TECO Energy, Inc. (NYSE:TE) today reported third-quarter
non-GAAP results from continuing operations, which exclude $12.4
million of acquisition-related costs, of $77.3 million, or $0.33 on
a per-share basis, compared with $73.9 million, or $0.32 on a
per-share basis in 2014.
Third-quarter 2015 net income was $53.2 million, or $0.23 per
share, compared with $11.1 million, or $0.04 per share, in the
third quarter of 2014. Net income from continuing operations was
$64.9 million, or $0.28 per share, in the 2015 third quarter,
compared with $73.0 million, or $0.32 per share, for the same
period in 2014. The third quarter loss in discontinued operations
of $11.7 million and $61.9 million in 2015 and 2014, respectively,
reflects the operating results and charges associated with TECO
Coal, which was sold on Sept. 21.
Year-to-date non-GAAP results from continuing operations, which
exclude $13.4 million of acquisition-related costs, were $203.6
million, or $0.87 on a per-share basis, compared with $184.7
million, or $0.84 on a per-share basis in 2014.
Year-to-date net income was $123.0 million, or $0.53 per share,
compared with net income of $119.6 million, or $0.54 per share in
the 2014 period. Net income from continuing operations was $190.2
million or $0.81 per share, compared with $179.0 million or $0.81
per share in the 2014 period. The year-to-date losses from
discontinued operations were $67.2 million and $59.4 million in
2015 and 2014, respectively.
TECO Energy President and Chief Executive Officer John Ramil
said, “This has been a momentous quarter for TECO Energy marked by
significant changes. On Sept. 4, we announced that Emera, Inc.
would acquire TECO Energy for $27.55 per share. On Sept. 21, we
closed the sale of TECO Coal, our last unregulated business, thus
completing our transformation to a regulated utility business. At
the same time, our operating companies have delivered impressive
results. Our Florida utilities have achieved year-to-date net
income growth of almost 6%, and we are well positioned for New
Mexico Gas to be accretive this year.”
Non-GAAP Results
Non-GAAP results in the third quarter and year-to-date periods
of 2015 and 2014 exclude costs related to the pending acquisition
by Emera, and costs associated with the integration and acquisition
of New Mexico Gas Co. (NMGC). 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 discussion below are after
tax, unless otherwise noted.
Results Comparisons 3 months 9
months 12 months ended Sept. 30
ended Sept. 30 ended Sept. 30
(millions)
2015 2014
2015 2014
2015 2014 Net income
$ 53.2 $ 11.1 $123.0 $119.6 $133.7 $161.6 Discontinued operations
(11.7) (61.9) (67.2) (59.4) (83.9)
(52.9) Net income from continuing operations 64.9 73.0 190.2
179.0 217.6 214.5 Charges 12.4 0.9 13.4 5.7
31.0 8.0
Non-GAAP Results from continuing
operations
$77.3
$ 73.9
$203.6
$184.7
$248.6
$222.5
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 Sept. 30
9 monthsended Sept. 30
12 monthsended Sept. 30
(millions)
Net Income Summary 2015
2014 2015
2014 2015
2014 Tampa Electric $82.1 $79.7
$198.0 $187.1 $235.4 $226.9 Peoples Gas
System 6.2 4.8 28.4 26.9 37.3 34.5 New Mexico Gas Co. (1) (2.8)
(0.9) 11.0 (0.9) 22.4 (0.9) Other – net (20.6) (10.6)
(47.2) (34.1) (77.5) (46.0) Net income from
continuing operations 64.9 73.0 190.2 179.0 217.6 214.5
Discontinued operations (2) (11.7) (61.9) (67.2)
(59.4) (83.9) (52.9) Total net income $53.2
$11.1 $123.0 $119.6 $133.7 $
161.6
1. The 12-months ended 2014 and 2015 periods reflect results
after the Sept. 2, 2014, closing of the NMGC acquisition.
2. Discontinued operations for all periods shown include the
operating results at TECO Coal, impairment charges and costs
associated with the sale of TECO Coal.
All amounts included in the operating company discussions below
are after tax, unless otherwise noted.
Tampa Electric
Tampa Electric’s net income for the third quarter of 2015 was
$82.1 million, compared with $79.7 million for the same period in
2014. Results for the quarter reflected a 1.8% higher average
number of customers partially offset by slightly lower energy sales
primarily due to rainy summer weather. Results reflected operations
and maintenance expense virtually unchanged from 2014 and higher
depreciation expense. Third-quarter net income in 2015 included
$4.6 million of Allowance for Funds Used During Construction
(AFUDC) equity, which represents allowed equity cost capitalized to
construction costs, compared with $2.9 million in the 2014
quarter.
Total degree days in Tampa Electric's service area in the third
quarter of 2015 were 1% above normal, and 2% above the 2014 period.
Rainfall, which reduces energy sales, in the Tampa area in the
third quarter was 60% above normal. Total net energy for load,
which is a calendar measurement of retail energy sales rather than
a billing-cycle measurement, decreased 0.3% in the third quarter of
2015, compared with the same period in 2014. In the 2015 period,
pretax base revenues were more than $1 million higher than in 2014,
driven by customer growth and almost $2 million of higher pretax
base revenue from the $7.5 million of higher base rates effective
Nov. 1, 2014, as a result of the 2013 rate case settlement,
partially offset by lower energy sales. (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.) Retail energy sales to
residential and commercial customers decreased primarily from rainy
weather partially offset by customer growth. Sales to non-phosphate
industrial customers increased due to the strength of the Tampa
area economy. Sales to lower-margin industrial-phosphate customers
decreased as self-generation by those customers increased.
Operations and maintenance expense, excluding all Florida Public
Service Commission (FPSC)-approved cost-recovery clauses, was
essentially unchanged from the 2014 quarter, reflecting $5.1
million of higher costs to safely and reliably operate and maintain
the generating, transmission and distribution systems, offset by
lower employee-related costs, primarily due to the timing of
short-term incentive accruals for all employees in 2015 compared to
2014. Depreciation and amortization expense increased $1.7 million
in 2015, as a result of normal additions to facilities to reliably
serve customers.
Year-to-date net income was $198.0 million, compared with $187.1
million in the 2014 period, driven by 1.8% higher average number of
customers, higher energy sales from customer growth, more favorable
weather and a stronger economy, partially offset by higher
operations and maintenance and depreciation expenses. Year-to-date
net income in 2015 included $12.1 million of AFUDC equity, compared
with $7.3 million in the 2014 period.
Year-to-date total degree days in Tampa Electric's service area
were 7% above normal and 10% above the prior year-to-date period.
Pretax base revenue was almost $22 million higher than in 2014,
including approximately $5 million of higher pretax base revenue as
a result of the Nov. 1, 2014, base rate increase. In the 2015
year-to-date period, total net energy for load was 2.5% higher than
the same period in 2014. Higher energy sales were driven by hotter
than normal 2015 spring weather, and winter weather that was colder
than in 2014.
Operations and maintenance expenses, excluding all FPSC-approved
cost-recovery clauses, increased $4.7 million in the 2015
year-to-date period reflecting approximately $8.0 million of higher
costs to safely and reliably serve customers partially offset by
lower employee-related expenses. Compared to the 2014 year-to-date
period, depreciation and amortization expense increased $3.6
million, reflecting additions to facilities to serve customers.
Interest expense increased $1.3 million due to higher long-term
debt balances.
Peoples Gas
Peoples Gas System (PGS) reported net income of $6.2 million for
the third quarter, compared with $4.8 million in the 2014 quarter.
Average customer growth was 2.0% in the quarter, and therm sales to
retail customers increased as a result of customer growth and a
stronger economy. Third-quarter results in 2015 reflected non-fuel
operations and maintenance expense $1.0 million lower than in the
2014 period, driven by lower employee-related costs, primarily due
to the timing of short-term incentive accruals for all employees in
2015 compared to 2014. Depreciation and amortization increased
slightly due to normal additions to facilities to serve customers.
Sales to power-generation customers and off-system sales increased
due to coal-to-gas switching by customers and new gas-fired
generation in the state.
PGS reported net income of $28.4 million for the year-to-date
period, compared with $26.9 million in the 2014 year-to-date
period. Results reflect a 2.1% higher average number of customers,
lower therm sales to residential customers due to warmer than
normal spring weather, and increased commercial therm sales due to
strong economic conditions in Florida. Sales to power generation
customers and off-system sales increased due to the same reasons as
in the third quarter. Non-fuel operations and maintenance expense
decreased $0.5 million compared to the 2014 period, driven by lower
general operating costs. Operations and maintenance expense in 2014
reflected a first-quarter recovery of $1.6 million of costs
incurred in connection with a 2010 outage incident.
NMGC
NMGC reported a third-quarter loss of $2.8 million, which was
less than historical third-quarter loss patterns. Results reflected
the benefit of 0.8% customer growth, and lower operating and
maintenance expenses from acquisition synergies and a focus on cost
control. Results in 2014 reflected the loss in the first month of
ownership, September, following the closing of the acquisition.
NMGC reported year-to-date 2015 net income of $11.0 million.
Results reflected customer growth of 0.7%, much milder than normal
winter weather in the first quarter, and degree days 6.7% below
normal and 1.4% below 2014. Operations and maintenance expense was
lower than in the 2014 period from acquisition synergies and a
focus on cost control. Results included $1.4 million of pretax rate
credits to customers under the Certification of Stipulation
approved by the New Mexico Public Regulation Commission.
Other - net
The third quarter 2015 non-GAAP cost from continuing operations
for Other – net of $8.2 million excluded $12.2 million of
transaction costs related to the pending Emera acquisition and $0.2
million of costs associated with the integration of NMGC, compared
with the non-GAAP cost of $9.7 million in 2014, which excluded $0.9
million of NMGC-related costs. Although third-quarter results in
2015 reflected $1.1 million of interest expense at New Mexico Gas
Intermediate (NMGI), the parent company of NMGC, and $1.0 million
of interest expense previously allocated to TECO Coal, this was
more than offset by lower interest expense as a result of
refinancing debt maturities in May. The cost from continuing
operations for Other – net in the third quarter of 2015 was $20.6
million, compared with a cost of $10.6 million in the same period
in 2014.
The 2015 year-to-date non-GAAP cost from continuing operations
for Other – net was $33.8 million, which excluded the third quarter
transaction costs related to the pending Emera acquisition and $1.2
million of NMGC integration-related costs, compared with $28.4
million in 2014, which excluded $5.7 million of NMGC
acquisition-related costs. Cost drivers in the 2015 year-to-date
period included $3.3 million of interest at NMGI, $3.0 million of
interest previously allocated to TECO Coal that was offset by lower
interest expense, and a $2.6 million tax expense related to
long-term incentive compensation shares that vested below target
levels. The 2015 year-to-date Other – net cost from continuing
operations was $47.2 million, compared with $34.1 million in the
2014 period.
Discontinued Operations
The sale of TECO Coal closed on Sept. 21. The third quarter 2015
loss of $11.7 million recorded in discontinued operations reflects
TECO Coal’s operating results prior to its sale and a previously
disclosed $7.7 million charge related to black lung
liabilities.
The year-to-date loss of $67.2 million in discontinued
operations reflects TECO Coal’s operating loss, net impairment
charges of $50.8 million recorded in the second quarter and the
third-quarter black-lung related charge.
Maintaining 2015 Guidance from
Continuing Operations
TECO Energy continues to expect to deliver consolidated non-GAAP
earnings-per-share from continuing operations in a range between
$1.08 and $1.11 in 2015. TECO Energy expects earnings in 2015 to be
driven by the factors discussed when guidance was initially
provided in early 2015.
Preliminary 2016 Business
Drivers
Results in 2016 are expected to be driven by customer growth
trends for all three utilities at or above the trends experienced
in 2015. Tampa Electric and PGS are expected to continue to earn
toward the upper end of their allowed Return on Equity ranges of
9.25% to 11.25% and 9.75% to 11.75%, respectively. Depreciation
expense at all three utilities is expected to increase from normal
additions to facilities to safely and reliably serve customers.
Tampa Electric expects higher AFUDC-equity earnings from the
growing investment in the Polk Power Station conversion
project.
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
3 months ended 9 months ended
12 months ended (millions) Sept. 30
Sept. 30 Sept. 30 2015
2014 2015
2014 2015
2014 GAAP net income $53.2 $11.1 $123.0 $119.5
$133.7 $161.6 Discontinued operations (11.7) (61.9)
(67.2) (59.4) (83.9) (52.9) Net income from
continuing operations
64.9
73.0
190.2
179.0
217.6
214.5
Consolidated deferred tax balance adjustment
--
--
--
--
14.6
(7.9)
Add Emera transaction related costs 12.2 -- 12.2 -- 12.2 -- Add
costs associated with the acquisition and integration of NMGC
0.2
0.9
1.2
5.7
4.2
15.9
Total charges 12.4 0.9 13.4 5.7 31.0
8.0 Non-GAAP results (1) $77.3 $73.9 $203.6
$184.7 $248.6 $222.5
(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
outlook for the remainder of 2015 at 9:00 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 715,000 customers in West
Central Florida; Peoples Gas System serves more than 360,000
customers across Florida; and New Mexico Gas Co. serves more than
515,000 customers across New Mexico.
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 that 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; and the ability of
TECO Energy's subsidiaries to operate equipment without undue
accidents, breakdowns or failures. Additional information is
contained under "Risk Factors" in TECO Energy, Inc.'s Annual Report
on Form 10-K for the period ended Dec. 31, 2014, as updated in
subsequent filings with the SEC.
Summary Information (as of Sept.
30)
(millions except per share amounts)
Three Months
Nine Months Twelve Months Ended
Ended Ended 2015
2014 2015 2014
2015 2014 Revenues $693.8 $687.2
$2,067.4 $1,870.9 $2,762.9 $2,433.1 Net income
from continuing operations
$64.9
$73.0
$190.2
$179.0
$217.6
$214.5
Net income from discontinued operations
(11.7)
(61.9)
(67.2)
(59.4)
(83.9)
(52.9)
Net income $ 53.2 $11.1 $123.0 $119.6
$133.7 $161.6 Earnings per share from continuing
operations- basic
$ 0.28
$0.32
$0.81
$0.81
$0.93
$0.97
Earnings per share from discontinued operations – basic (0.05)
(0.28)
(0.28)
(0.27)
(0.36)
(0.24)
Total earnings per share – basic $0.23 $0.04 $0.53
$0.54 $0.57 $0.73 Total earnings per
share – diluted
$0.23
$0.04
$0.53
$0.54
$0.57
$0.73
Average common shares outstanding – basic
233.2
227.8
233.0
220.3
232.9
219.1
Average common shares outstanding – diluted
234.7
228.3
234.4
220.3
234.2
219.6
SEPTEMBER 2015
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 Nine Months
Ended Twelve Months Ended Sep. 30, Sep. 30, Sep. 30,
(millions except share data)
2015 2014
2015 2014
2015 2014
Revenues Regulated electric and gas
$690.8 $685.1
$2,058.9 $1,864.4
$2,751.9
$2,424.1 Unregulated
3.0 2.1
8.5
6.5
11.0 9.0 Total revenues
693.8 687.2
2,067.4 1,870.9
2,762.9 2,433.1
Expenses Regulated
operations & maintenance Fuel
176.6 204.5
492.5
523.8
661.1 686.6 Purchased power
23.8 21.0
60.5 59.1
72.8 73.0 Cost of natural gas sold
42.0 34.3
194.1 110.5
293.3 135.7 Other
149.4 137.9
448.5 385.3
610.9 532.3 Operations
& maintenance other expense
16.1 14.8
18.8 22.6
25.5 26.9 Depreciation and amortization
87.8 78.6
260.3 230.0
345.7 299.1 Taxes, other than income
51.5 50.4
156.6 146.3
205.4 191.1 Total expenses
547.2
541.5
1,631.3 1,477.6
2,214.7 1,944.7
Income from operations
146.6 145.7
436.1 393.3
548.2 488.4
Other income (expense) Allowance
for other funds used during construction
4.7 2.9
12.2
7.3
15.4 9.3 Other income
1.4 1.0
4.4 (0.4)
5.4 (1.1) Total
other income
6.1 3.9
16.6
6.9
20.8 8.2
Interest charges Interest
expense
48.4 44.4
146.4 126.8
196.2 167.6
Allowance for borrowed funds used during construction
(2.3) (1.5)
(6.0) (3.6)
(7.8) (4.7) Total interest charges
46.1
42.9
140.4 123.2
188.4
162.9
Income before provision for income taxes
106.6 106.7
312.3 277.0
380.6 333.7 Provision
for income taxes
41.7 33.7
122.1
98.0
163.0 119.2
Income from
continuing operations 64.9 73.0
190.2 179.0
217.6 214.5
Discontinued operations Income (loss)
from discontinued operations
(17.8) (98.8)
(105.5)
(97.6)
(133.4) (92.4) Provision for income taxes
(6.1) (36.9)
(38.3) (38.2)
(49.5) (39.5) Income (loss) from discontinued
operations, net
(11.7) (61.9)
(67.2) (59.4)
(83.9) (52.9)
Net income $53.2 $11.1
$123.0 $119.6
$133.7 $161.6
Average common shares outstanding - basic
(millions) 233.2 227.8
233.0 220.3
232.9
219.1
Average common shares outstanding - diluted (millions)
234.7 228.3
234.4 220.8
234.2 219.6
Earnings per average common share outstanding: Earnings per
share from continuing operations -- basic
$0.28 $0.32
$0.81 $0.81
$0.93 $0.97 Earnings per share from
continuing operations -- diluted
$0.28 $0.32
$0.81
$0.81
$0.93 $0.97 Earnings per share from
discontinued operations -- basic
($0.05) ($0.28)
($0.28) ($0.27)
($0.36) ($0.24) Earnings per share
from discontinued operations -- diluted
($0.05) ($0.28)
($0.28) ($0.27)
($0.36) ($0.24) Earnings per
share attributable to TECO Energy -- basic
$0.23 $0.04
$0.53 $0.54
$0.57 $0.73 Earnings per share
attributable to TECO Energy -- diluted
$0.23 $0.04
$0.53 $0.54
$0.57 $0.73
TECO ENERGY, Inc.
CONSOLIDATED BALANCE SHEETS (Unaudited) (All significant
intercompany transactions have been eliminated in the consolidated
financial statements.)
Sep. 30, Dec. 31, (millions)
2015
2014
Assets Current assets Cash and
cash equivalents
$55.4 $25.4 Receivables
270.7 299.8
Inventories at average cost Fuel
135.9 96.4 Materials and
supplies
77.4 75.4 Derivative assets
0.2 0.0 Deferred
income taxes
68.2 72.8 Prepayments and other current assets
36.9 22.6 Regulatory assets
43.1 53.6 Assets held for
sale
0.0 109.6 Total current assets
687.8 755.6
Property, plant and equipment
Utility plant in service Electric
7,258.9 7,094.8 Gas
2,076.8 1,984.6 Construction work in progress
725.6
640.0 Other property
15.2 14.5 Property plant
and equipment at original cost
10,076.5 9,733.9 Accumulated
depreciation
(2,750.1) (2,645.7) Total
property, plant and equipment, net
7,326.4
7,088.2
Other assets Regulatory assets
330.8 348.5
Goodwill
408.4 408.3 Deferred charges and other assets
63.5 65.8 Assets held for sale
0.0 59.8
Total other assets
802.7 882.4
Total
assets $8,816.9 $8,726.2
Liabilities and capital Current liabilities Long-term debt
due within one year
$333.3 $274.5 Notes payable
128.0
139.0 Accounts payable
216.1 288.6 Other current liabilities
18.3 16.8 Customer deposits
179.9 176.2 Derivative
liabilities
23.9 36.6 Interest accrued
54.5 39.9
Taxes accrued
60.8 29.9 Regulatory liabilities
69.1
57.0 Liabilities associated with assets held for sale
0.0 39.4 Total current liabilities
1,083.9 1,097.9
Other liabilities Deferred
income taxes
609.1 519.2 Investment tax credits
8.8
9.0 Regulatory liabilities
716.2 729.0 Derivative
liabilities
2.7 6.1 Deferred credits and other liabilities
316.9 370.9 Liabilities associated with assets held for sale
0.0 65.4 Long-term debt, less amount due within one year
3,517.7 3,354.0 Total other liabilities
5,171.4 5,053.6
Total liabilities
6,255.3 6,151.5
Capital Common equity
235.2
234.9 Additional paid in capital
1,891.2 1,875.9 Retained
earnings
443.8 479.6 Accumulated other comprehensive loss
(8.6) (15.7) Total capital
2,561.6 2,574.7
Total liabilities and capital
$8,816.9 $8,726.2 Book Value
Per Share $10.89 $10.96
TECO ENERGY, Inc.
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (All
significant intercompany transactions have been eliminated in the
consolidated financial statements.)
Three Months Ended Nine Months Ended
Twelve Months Ended Sep. 30, Sep. 30, Sep. 30, (millions)
2015 2014
2015 2014
2015 2014
Cash flows from
operating activities Net income
$53.2 $11.1
$123.0 $119.6
$133.7 $161.6 Adjustments to
reconcile net income to net cash from operating activities:
Depreciation and amortization
88.2 86.6
261.5 255.7
347.7 333.9 Deferred income taxes & Investment tax
credits
37.7 (3.4)
84.6 58.4
115.7 79.7
Allowance for other funds used during construction
(4.7)
(2.9)
(12.2) (7.3)
(15.4) (9.3) Non-cash stock
compensation
3.2 3.1
10.1 10.2
12.6 13.5 Loss
(gain) on sales of business / assets, pretax
10.0 (0.1)
10.0 (0.2)
10.0 (1.6) Deferred recovery clause
17.2 8.9
13.1 (5.5)
3.3 (7.8) Asset
impairment, pretax
0.0 98.4
78.6 98.4
96.1
98.4 Receivables, less allowance for uncollectibles
6.3 10.7
46.1 (25.9)
35.4 34.0 Inventories
(8.5) 6.6
(45.7) (9.6)
(23.3) (11.6) Prepayments and other
current assets
(2.0) (3.4)
(14.2) (5.5)
(5.8)
(3.6) Taxes accrued
12.6 14.3
31.6 48.6
(15.9)
6.0 Interest accrued
16.5 25.3
14.7 27.8
(5.8)
4.2 Accounts payable
(27.4) 6.6
(85.7) (29.4)
(32.8) (4.1) Other
(19.7) (16.6)
(36.1) (29.1)
(17.5)
(34.6)
182.6 245.2
479.4 506.2
638.0 658.7
Cash flows from investing activities Capital
expenditures
(180.0) (171.5)
(523.2) (491.8)
(745.7) (653.3) Allowance for other funds used during
construction
4.7 2.9
12.2 7.3
15.4 9.3
Purchase of a business, net of cash acquired
0.0 (752.5)
0.0 (752.5)
1.0 (752.5) Net proceeds from sale of
business / assets
0.0 0.0
0.0 0.3
(0.1) 4.2
Other investments
(0.1) 0.0
(0.2) 0.0
(8.1) 0.0
(175.4) (921.1)
(511.2) (1,236.7)
(737.5)
(1,392.3)
Cash flows from financing activities
Dividends paid
(52.9) (51.6)
(158.8) (147.5)
(210.5) (195.3) Proceeds from sale of common stock
2.9 293.6
6.4 296.6
12.1 295.9 Proceeds from
long-term debt
(0.3) 267.6
499.7 564.2
499.1
564.2 Repayment of long-term debt / Purchase in lieu of redemption
0.0 0.0
(274.5) (83.3)
(274.5) (83.3) Net
increase (decrease) in short-term debt
42.5
72.0
(11.0) (12.0)
56.0 72.0
(7.8) 581.6
61.8 618.0
82.2
653.5 Net (decrease) increase in cash and cash
equivalents
(0.6) (94.3)
30.0 (112.5)
(17.3)
(80.1) Cash and cash equivalents at beginning of period
56.0 167.0
25.4 185.2
72.7 152.8 Cash and cash equivalents at
end of period
$55.4 $72.7
$55.4 $72.7
$55.4 $72.7
Supplemental disclosure of non-cash activities
Debt assumed in NMGI acquisition
$0.0 $200.0
$0.0
$200.0
$0.0 200.0 Change in accrued capital expenditures -
excluded above
($9.7) $1.7
($8.1) $10.2
($4.8)
$15.5
TECO ENERGY, Inc. SEGMENT INFORMATION
(Unaudited)
(millions)
Tampa
Peoples TECO TECO
Electric Gas Coal (3)
NMGC Other (3)
Eliminations Energy Three months
ended Sep. 30, 2015 Revenues - outsiders $ 559.4 $ 88.1
$
--
$ 43.7 $ 2.6
$
--
$ 693.8 Sales to affiliates 0.8 2.0
-- --
-- (2.8 ) -- Total
revenues 560.2 90.1 -- 43.7 2.6 (2.8 ) 693.8 Depreciation and
amortization 64.6 14.4 -- 8.5 0.3 -- 87.8 Total interest charges
(2) 24.1 3.7 -- 3.2 15.4 (0.3 ) 46.1 Allocated interest expense (2)
-- -- -- -- 0.3 (0.3 ) -- Provision (Benefit) for income taxes 50.0
3.5 -- (1.9 ) (9.9 ) -- 41.7 Net income (loss) from continuing
operations 82.1 6.2 -- (2.8 ) (20.6 ) -- 64.9 Income (loss) from
discontinued operations, net of tax -- -- (12.1 ) -- 0.4 -- (11.7 )
Net income (loss) (1) $ 82.1 $ 6.2
$ (12.1 ) $ (2.8 ) $ (20.2 )
$
--
$ 53.2
2014 Revenues - outsiders $
581.5 $ 86.9
$
--
$ 16.2 $ 2.6
$
--
$ 687.2 Sales to affiliates 0.3 --
-- --
-- (0.3 ) -- Total
revenues 581.8 86.9 -- 16.2 2.6 (0.3 ) 687.2 Depreciation and
amortization 61.8 13.6 -- 2.8 0.4 -- 78.6 Total interest charges
(2) 23.8 3.5 -- 1.1 16.4 (1.9 ) 42.9 Allocated interest expense (2)
-- -- -- -- 1.9 (1.9 ) -- Provision (Benefit) for income taxes 48.5
3.0 -- (0.5 ) (17.3 ) -- 33.7 Net income (loss) from continuing
operations 79.7 4.8 -- (0.9 ) (10.6 ) -- 73.0 Income (loss) from
discontinued operations, net of tax -- -- (64.8 ) -- 2.9 -- (61.9 )
Net income (loss) (1) $ 79.7 $ 4.8
$ (64.8 ) $ (0.9 ) $ (7.7 )
$
--
$ 11.1
Nine months ended Sep. 30,
2015 Revenues - outsiders $ 1,540.8 $ 302.0
$
--
$ 216.7 $ 7.9
$
--
$ 2,067.4 Sales to affiliates 2.4 4.5
-- --
0.1 (7.0 ) --
Total revenues 1,543.2 306.5 -- 216.7 8.0 (7.0 ) 2,067.4
Depreciation and amortization 191.5 42.3 -- 25.3 1.2 -- 260.3 Total
interest charges (2) 71.2 10.8 -- 9.8 49.6 (1.0 ) 140.4 Allocated
interest expense (2) -- -- -- -- 1.0 (1.0 ) -- Provision (Benefit)
for income taxes 116.3 17.5 -- 7.1 (18.8 ) -- 122.1 Net income
(loss) from continuing operations 198.0 28.4 -- 11.0 (47.2 ) --
190.2 Income (loss) from discontinued operations, net of tax -- --
(69.6 ) -- 2.4 -- (67.2 ) Net income (loss) (1)
$ 198.0 $ 28.4 $ (69.6 ) $ 11.0
$ (44.8 )
$
--
$ 123.0
2014 Revenues - outsiders $
1,546.9 $ 300.0
$
--
$ 16.2 $ 7.8
$
--
$ 1,870.9 Sales to affiliates 0.8 0.6
-- --
-- (1.4 ) -- Total
revenues 1,547.7 300.6 -- 16.2 7.8 (1.4 ) 1,870.9 Depreciation and
amortization 185.6 40.3 -- 2.8 1.3 -- 230.0 Total interest charges
(2) 69.1 10.3 -- 1.1 48.3 (5.6 ) 123.2 Allocated interest expense
(2) -- -- -- -- 5.6 (5.6 ) -- Provision (Benefit) for income taxes
112.2 17.0 -- (0.5 ) (30.7 ) -- 98.0 Net income (loss) from
continuing operations 187.1 26.9 -- (0.9 ) (34.1 ) -- 179.0 Income
(loss) from discontinued operations, net of tax -- -- (65.6 ) --
6.2 -- (59.4 ) Net income (loss) (1) $ 187.1
$ 26.9 $ (65.6 ) $ (0.9 ) $
(27.9 )
$
--
$ 119.6
Twelve months ended Sep. 30,
2015 Revenues - outsiders $ 2,013.8 $ 400.5
$
--
$ 338.0 $ 10.6
$
--
$ 2,762.9 Sales to affiliates 2.7 5.0
-- --
(20.7 ) 13.0 --
Total revenues 2,016.5 405.5 -- 338.0 (10.1 ) 13.0 2,762.9
Depreciation and amortization 254.5 56.0 -- 33.5 1.7 -- 345.7 Total
interest charges (2) 94.9 14.3 -- 13.0 67.4 (1.2 ) 188.4 Allocated
interest expense (2) -- -- -- -- 1.3 (1.3 ) -- Provision (Benefit)
for income taxes 137.3 23.1 -- 14.6 (12.0 ) -- 163.0 Net income
(loss) from continuing operations 235.4 37.3 -- 22.4 (77.5 ) --
217.6 Income (loss) from discontinued operations, net of tax -- --
(86.1 ) -- 2.2 -- (83.9 ) Net income (loss) (1)
$ 235.4 $ 37.3 $ (86.1 ) $ 22.4
$ (75.3 )
$
--
$ 133.7
2014 Revenues - outsiders $
2,019.9 $ 386.3
$
--
$ 16.2 $ 10.7
$
--
$ 2,433.1 Sales to affiliates 1.0 0.7
-- --
-- (1.7 ) -- Total
revenues 2,020.9 387.0 -- 16.2 10.7 (1.7 ) 2,433.1 Depreciation and
amortization 242.5 52.1 -- 2.8 1.7 -- 299.1 Total interest charges
(2) 91.4 13.7 -- 1.1 64.2 (7.5 ) 162.9 Allocated interest expense
(2) -- -- -- -- 7.5 (7.5 ) -- Provision (Benefit) for income taxes
135.1 21.9 -- (0.5 ) (37.3 ) -- 119.2 Net income (loss) from
continuing operations 226.9 34.5 -- (0.9 ) (46.0 ) -- 214.5 Income
(loss) from discontinued operations, net of tax -- -- (58.9 ) --
6.0 -- (52.9 ) Net income (loss) (1) $ 226.9
$ 34.5 $ (58.9 ) $ (0.9 ) $
(40.0 )
$
--
$ 161.6
(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 October 2013 through
September 2015.
(3)
All periods have been adjusted to reflect the reclassification of
results from operations to discontinued operations for TECO
Guatemala, TECO Coal, and certain charges at Other that directly
relate to TECO Guatemala or TECO Coal.
TAMPA ELECTRIC
COMPANY ELECTRIC OPERATING STATISTICS (Unaudited)
Operating Revenues* Sales --
Kilowatt-hours*
Three Months Ended Sep. 30,
Percent Percent 2015
2014
Change
2015 2014
Change Residential
$ 311,780 $ 320,613
(2.8 )
2,728,812 2,779,412
(1.8 ) Commercial
167,055 170,329
(1.9 ) 1,753,573
1,773,177
(1.1 ) Industrial -- Phosphate
11,011 14,012
(21.4 ) 130,827 171,992
(23.9 ) Industrial -- Other
27,650 27,754
(0.4 ) 313,747 310,807
0.9 Other sales
of electricity
46,237 48,347
(4.4 )
473,801 493,816
(4.1 )
563,733 581,055
(3.0 ) 5,400,760
5,529,204
(2.3 ) Deferred and other revenues
(18,179 ) (14,573 )
(24.7 ) --
--
-- Provision for Revenue Stipulation
-- --
-- -- --
-- Sales for resale
195 1,565
(87.5 ) 5,022 38,640
(87.0 )
Other operating revenue
14,403 13,713
5.0 --
--
-- SO2 Allowance Sales
-- 1
(100.0 )
-- --
-- NOx Allowance Sales
--
--
-- --
--
-- $ 560,152
$ 581,761
(3.7 )
5,405,782 5,567,844
(2.9 )
Average customers
720,075
707,136
1.8 --
-- -- Retail Net Energy For Load
5,700,127
5,718,530
(0.3 ) Total Degree Days
1,666 1,637
1.8
Operating
Revenues* Sales -- Kilowatt-hours*
Nine Months Ended Sep.
30, Percent Percent 2015
2014
Change
2015 2014
Change Residential
$ 792,596 $ 777,592
1.9 6,898,839
6,691,468
3.1 Commercial
454,910 455,358
(0.1
) 4,713,624 4,653,303
1.3 Industrial --
Phosphate
38,261 47,275
(19.1 ) 471,770
583,776
(19.2 ) Industrial -- Other
80,337
78,704
2.1 912,646 876,122
4.2 Other sales of
electricity
131,666 136,451
(3.5 )
1,329,878 1,374,715
(3.3 )
1,497,770 1,495,380
0.2 14,326,757
14,179,384
1.0 Deferred and other revenues
(1,436 ) (1,330 )
(8.0 ) -- --
-- Provision for Revenue Stipulation
-- --
--
-- --
-- Sales for resale
3,066 9,701
(68.4 ) 89,706 171,346
(47.6 )
Other operating revenue
43,802 43,950
(0.3 )
-- --
-- SO2 Allowance Sales
-- 1
(100.0 ) -- --
-- NOx Allowance Sales
-- --
--
-- --
--
$ 1,543,202 $ 1,547,702
(0.3 ) 14,416,463 14,350,730
0.5 Average customers
717,342 704,923
1.8 -- --
-- Retail Net Energy For Load
15,344,986 14,972,532
2.5 Total Degree Days
3,700 3,356
10.3
Operating Revenues* Sales
-- Kilowatt-hours*
Twelve Months Ended Sep. 30,
Percent Percent 2015
2014
Change 2015
2014
Change Residential
$
1,022,574 $ 1,005,126
1.7 8,863,221 8,699,444
1.9 Commercial
601,645 601,774
--
6,202,528 6,174,670
0.5 Industrial -- Phosphate
50,897 65,504
(22.3 ) 625,571 812,015
(23.0 ) Industrial -- Other
106,214 104,059
2.1 1,199,734 1,159,978
3.4 Other sales of
electricity
177,112 181,959
(2.7 )
1,782,059 1,840,757
(3.2 )
1,958,442 1,958,422
-- 18,673,113
18,686,864
(0.1 ) Deferred and other revenues
(7,610 ) (8,253 )
7.8 -- --
--
Provision for Revenue Stipulation
-- --
-- --
--
-- Sales for resale
6,321 11,740
(46.2
) 177,532 223,333
(20.5 ) Other
operating revenue
59,345 59,026
0.5 -- --
-- SO2 Allowance Sales
-- --
-- -- --
-- NOx Allowance Sales
--
--
-- -- --
-- $ 2,016,498 $
2,020,935
(0.2 )
18,850,645 18,910,197
(0.3 )
Average customers
715,477
703,400
1.7 --
-- -- Retail Net Energy For Load
19,687,194
19,441,831
1.3 Total Degree Days
4,382 4,133
6.0 * in thousands
PEOPLES GAS SYSTEM
GAS OPERATING STATISTICS (Unaudited)
Operating Revenues* Therms*
Three Months Ended
Sep. 30, Percent Percent
2015 2014
Change
2015 2014
Change By Customer
Segment: Residential
$ 26,772 $ 26,172
2.3
10,946 10,652
2.8 Commercial
30,775 30,507
0.9 105,964 101,400
4.5 Industrial
3,332 2,979
11.8 68,818 65,121
5.7 Off
System Sales
13,519 12,996
4.0 42,956 29,865
43.8 Power generation
1,745 2,038
(14.4
) 192,229 189,845
1.3 Other revenues
11,189 10,177
9.9
-- --
-- $
87,332 $ 84,869
2.9
420,913 396,883
6.1 By
Sales Type: System supply
$ 48,532 $ 48,286
0.5 60,062 47,332
26.9 Transportation
27,611 26,406
4.6 360,851 349,551
3.2
Other revenues
11,189 10,177
9.9 -- --
--
$ 87,332 $ 84,869
2.9 420,913 396,883
6.1 Average customers
361,045
353,921
2.0 --
--
--
Operating Revenues* Therms*
Nine Months Ended Sep.
30, Percent Percent 2015
2014
Change 2015
2014
Change By Customer Segment:
Residential
$ 104,111 $ 106,583
(2.3 )
57,881 59,213
(2.2 ) Commercial
104,867
104,764
0.1 354,071 343,283
3.1 Industrial
9,774 9,896
(1.2 ) 215,136 201,924
6.5 Off System Sales
35,699 30,826
15.8
112,743 63,765
76.8 Power generation
5,632
5,607
0.4 567,601 494,189
14.9 Other revenues
38,439 36,732
4.6
-- --
-- $
298,522 $ 294,408
1.4
1,307,432 1,162,374
12.5
By Sales Type: System supply
$ 169,573 $
169,952
(0.2 ) 192,056 145,429
32.1
Transportation
90,510 87,724
3.2 1,115,376
1,016,945
9.7 Other revenues
38,439
36,732
4.6 -- --
-- $ 298,522 $
294,408
1.4 1,307,432
1,162,374
12.5 Average customers
360,597 353,236
2.1
-- --
--
Operating Revenues* Therms*
Twelve Months
Ended Sep. 30, Percent Percent
2015 2014
Change
2015 2014
Change By Customer
Segment: Residential
$ 141,644 $ 137,854
2.7 79,443 76,732
3.5 Commercial
139,178 136,928
1.6 471,297 451,106
4.5
Industrial
12,980 13,423
(3.3 ) 287,495
270,885
6.1 Off System Sales
44,230 36,242
22.0 133,004 77,374
71.9 Power generation
6,820 7,561
(9.8 ) 716,924 663,967
8.0 Other revenues
50,179 46,705
7.4 -- --
-- $ 395,031 $ 378,713
4.3 1,688,163 1,540,064
9.6 By Sales Type: System supply
$ 225,343 $ 216,280
4.2 240,851 183,863
31.0 Transportation
119,509 115,728
3.3
1,447,312 1,356,201
6.7 Other revenues
50,179 46,705
7.4
-- --
-- $
395,031 $ 378,713
4.3
1,688,163 1,540,064
9.6
Average customers
359,423 351,910
2.1 -- --
-- * in thousands
NEW MEXICO GAS
COMPANY GAS OPERATING STATISTICS (Unaudited)
Operating Revenues* Therms*
Three Months Ended Sep. 30, Percent
Percent 2015
2014(1)
Change 2015
2014(1)
Change By Customer Segment: Residential
$ 30,313 $ 35,135
(13.7 ) 22,550
24,360
(7.4 ) Commercial
8,260 11,884
(30.5 ) 11,662 13,838
(15.7 )
Industrial
184 374
(50.8 ) 365 574
(36.5 ) Off System Sales
-- --
--
-- --
-- On System Transportation
3,069 3,016
1.8 69,955 64,962
7.7 Off System
Transportation
229 244
(5.8 ) 12,133
12,886
(5.8 ) Other revenues
1,590
1,652
(3.8 ) --
--
-- $ 43,645
$ 52,305
(16.6 ) 116,665
116,620
-- By Sales Type:
System supply
$ 38,757 $ 47,393
(18.2 )
34,577 38,772
(10.8 ) Transportation
3,298 3,260
1.2 82,088 77,848
5.4 Other
revenues
1,590 1,652
(3.8
) -- --
--
$ 43,645
$ 52,305
(16.6 ) 116,665
116,620
-- Average customers
514,459 510,289
0.8
Total Degree Days
4 19
(78.9 )
Operating
Revenues* Therms*
Nine Months Ended Sep. 30, Percent
Percent 2015
2014(1)
Change 2015
2014(1)
Change By Customer Segment: Residential
$ 156,007 192,264
(18.9 )
182,656 183,920
(0.7 ) Commercial
41,786 59,312
(29.5 ) 69,482 75,406
(7.9 ) Industrial
514 1,043
(50.7
) 1,036 1,611
(35.7 ) Off System Sales
308 2,175
(85.8 ) 1,200 4,251
(71.8 ) On System Transportation
12,833 13,194
(2.7 ) 228,066 238,424
(4.3 )
Off System Transportation
667 668
(0.2 )
34,736 34,983
(0.7 ) Other revenues
$
4,558 4,829
(5.6 )
-- --
-- $
216,673 $ 273,485
(20.8 )
517,176 538,595
(4.0 )
By Sales Type: System supply
$ 198,615 $
254,794
(22.0 ) 254,374 265,188
(4.1
) Transportation
13,500 13,862
(2.6 )
262,802 273,407
(3.9 ) Other revenues
4,558 4,829
(5.6 )
-- --
-- $
216,673
$ 273,485
(20.8 ) 517,176
538,595
(4.0 ) Average customers
515,668 512,160
0.7
Total Degree Days
2,397 2,430
(1.4 )
Operating
Revenues* Therms*
Twelve Months Ended Sep. 30,
Percent Percent
2015(1)
2014(1)
Change
2015(1)
2014(1)
Change By Customer Segment: Residential
$ 244,794 $ 284,897
(14.1 )
283,165 298,446
(5.1 ) Commercial
65,528 83,563
(21.6 ) 102,989 113,380
(9.2 ) Industrial
1,337 1,845
(27.5
) 2,391 3,043
(21.4 ) Off System Sales
308 2,175
(85.9 ) 1,200 4,251
(71.8 ) On System Transportation
18,941 19,336
(2.0 ) 319,368 332,401
(3.9 )
Off System Transportation
893 879
1.6 46,709
46,471
0.5 Other revenues
6,225
6,652
(6.4 ) -- --
-- $ 338,026 $ 399,347
(15.4 ) 755,822 797,992
(5.3 ) By Sales Type: System
supply
$ 311,967 $ 372,480
(16.2 )
389,745 419,119
(7.0 ) Transportation
19,834 20,215
(1.9 ) 366,077 378,873
(3.4 ) Other revenues
6,225
6,652
(6.4 ) -- --
-- $ 338,026 $
399,347
(15.4 ) 755,822
797,992
(5.3 ) Average customers
515,102 511,917
0.6
Total Degree Days
4,002 4,330
(7.6 ) (1) Information presented for
2014 is for comparative purposes only, as this was before the date
of acquisition (Sep. 2, 2014). * in thousands
View source
version on businesswire.com: http://www.businesswire.com/news/home/20151105005084/en/
TECO Energy, Inc.News Media:Cherie Jacobs,
813-228-4945orInvestor Relations:Mark Kane, 813-228-1772Internet:
http://www.tecoenergy.com
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