TECO Energy Reports Fourth-Quarter Results

BY Business Wire | 02/05/13 - 07:30 AM EST

Stock quotes in this article: TE

Comment

Find out if (TE) is in Cramer's Portfolio.

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; 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 energy sales at the utility companies; economic conditions, both national and international, affecting the Florida economy and demand for TECO Coal’s production; costs for alternative fuels used for power generation affecting demand for TECO Coal’s thermal coal production; weather variations and changes in customer energy usage patterns affecting sales and operating costs at Tampa Electric and Peoples Gas and the effect of extreme weather conditions or hurricanes; general operating conditions; input commodity prices affecting cost at all of the operating companies; operating cost and environmental or safety regulations affecting the production levels and margins at TECO Coal; fuel cost recoveries and related cash at the utilities; natural gas demand at Peoples Gas; 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, 2011.


Summary Information (as of Dec. 31, 2012)
	Three Months Ended					Twelve Months Ended
	Three Months Ended					Twelve Months Ended
(millions except per share amounts)
	2012			2011		2012			2011
Revenues	$	688.4		$	720.0	$	2,996.6		$	3,209.9
Net income from continuing operations	$	45.6		$	47.3	$	246.0		$	250.8
Net income from discontinued operations attributable to TECO Energy		(0.5	)		5.9		(33.3	)		21.8
Net income attributable to TECO Energy	$	45.1		$	53.2	$	212.7		$	272.6

Earnings per share from continuing operations- basic	$	0.21		$	0.22	$	1.14		$	1.17
Earnings per share from discontinued operations attributable to TECO Energy – basic		--			0.03		(0.15	)		0.10
Total earnings per share attributable to TECO Energy – basic	$	0.21		$	0.25	$	0.99		$	1.27

Total earnings per share – diluted	$	0.21		$	0.25	$	0.99		$	1.27
Average common shares outstanding – basic		214.5			213.8		214.3			213.6
Average common shares outstanding – diluted		215.0			215.4		215.0			215.1

TECO Energy

DECEMBER 2012

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)	2012			2011			2012			2011

Revenues
Regulated electric and gas	$	550.6		$	540.7		$	2,377.4		$	2,469.8
Unregulated		137.8			179.3			619.2			740.1
Total revenues		688.4			720.0			2,996.6			3,209.9
Expenses
Regulated operations & maintenance
Fuel		160.2			166.0			694.7			731.4
Purchased power		20.1			22.7			105.3			125.9
Cost of natural gas sold		37.2			32.8			155.7			210.4
Other		120.3			105.5			462.5			436.9
Operation & maintenance other expense
Mining related costs		102.4			136.9			461.1			574.1
Other		3.5			2.3			7.9			7.1
Depreciation and amortization		83.7			79.3			330.6			317.2
Taxes, other than income		51.5			53.7			222.3			223.7
Total expenses		578.9			599.2			2,440.1			2,626.7
Income from operations		109.5			120.8			556.5			583.2
Other income (expense)
Allowance for other funds used during construction		1.0			0.2			2.6			1.0
Other income		3.6			2.4			9.4			6.7
Loss on debt extinguishment		(1.2	)		0.0			(1.2	)		0.0
Total other income		3.4			2.6			10.8			7.7
Interest charges
Interest expense		43.3			48.8			185.0			198.0
Allowance for borrowed funds used during construction		(0.6	)		(0.2	)		(1.5	)		(0.6	)
Total interest charges		42.7			48.6			183.5			197.4
Income before provision for income taxes		70.2			74.8			383.8			393.5
Provision for income taxes		24.6			27.5			137.8			142.7
Income from continuing operations		45.6			47.3			246.0			250.8
Discontinued operations
Income (loss) from discontinued operations		(2.7	)		8.7			(10.6	)		33.3
Provision for income taxes		(2.2	)		2.7			22.4			11.2
Total discontinued operations, net		(0.5	)		6.0			(33.0	)		22.1
Less: Income from discontinued operations attributable to noncontrolling interest		0.0			0.1			0.3			0.3
Income from discontinued operations attributable to TECO Energy, net		(0.5	)		5.9			(33.3	)		21.8
Net income attributable to TECO Energy	$	45.1		$	53.2		$	212.7		$	272.6


Average common shares outstanding - basic (millions)		214.5			213.8			214.3			213.6
Average common shares outstanding - diluted (millions)		215.0			215.4			215.0			215.1

Earnings per average common share outstanding:
Earnings per share from continuing operations -- basic	$	0.21		$	0.22		$	1.14		$	1.17
Earnings per share from continuing operations -- diluted	$	0.21		$	0.22		$	1.14		$	1.17

Earnings per share from discontinued operations -- basic	$	0.00		$	0.03			($0.15	)	$	0.10
Earnings per share from discontinued operations -- diluted	$	0.00		$	0.03			($0.15	)	$	0.10

Earnings per share attributable to TECO Energy -- basic	$	0.21		$	0.25		$	0.99		$	1.27
Earnings per share attributable to TECO Energy -- diluted	$	0.21		$	0.25		$	0.99		$	1.27


TECO ENERGY, Inc.
CONSOLIDATED BALANCE SHEETS (Unaudited)
(All significant intercompany transactions have been eliminated in the consolidated financial statements.)

	Dec. 31,			Dec. 31,
(millions)	2012			2011

Assets
Current assets
Cash and cash equivalents	$	200.5		$	44.0
Restricted cash		0.0			8.7
Receivables		282.7			327.7
Inventories at average cost
Fuel		123.6			136.8
Materials and supplies		82.1			87.3
Derivative assets		0.0			0.9
Income tax receivables		0.4			0.6
Deferred income taxes		63.3			72.7
Prepayments and other current assets		33.9			31.9
Regulatory assets		70.3			87.3
Total current assets		856.8			797.9
Property, plant and equipment
Utility plant in service
Electric		6,655.8			6,731.7
Gas		1,228.3			1,169.9
Construction work in progress		336.1			247.4
Other property		443.8			432.3
Property plant and equipment at original cost		8,664.0			8,581.3
Accumulated depreciation		(2,673.9	)		(2,613.5	)
Total property, plant and equipment, net		5,990.1			5,967.8
Other assets
Regulatory assets		382.6			364.5
Goodwill		0.0			55.4
Derivative assets		0.2			0.0
Deferred charges and other assets		126.8			136.6
Total other assets		509.6			556.5
Total assets	$	7,356.5		$	7,322.2

Liabilities and capital
Current liabilities
Long-term debt due within one year
Recourse	$	0.0		$	374.9
Non-recourse		0.0			11.2
Accounts payable		232.8			252.3
Other current liabilities		19.9			17.2
Customer deposits		162.9			159.5
Derivative liabilities		14.6			58.4
Interest accrued		33.2			39.3
Taxes accrued		32.1			20.7
Regulatory liabilities		106.7			86.2
Total current liabilities		602.2			1,019.7
Other liabilities
Deferred income taxes		277.9			150.8
Investment tax credits		9.7			10.0
Regulatory liabilities		651.9			619.4
Derivative liabilities		0.6			8.6
Deferred credits and other liabilities		549.7			559.2
Long-term debt, less amount due within one year
Recourse		2,972.7			2,665.0
Non-recourse		0.0			22.3
Total other liabilities		4,462.5			4,035.3
Total liabilities		5,064.7			5,055.0
Capital
Common equity		216.6			215.8
Additional paid in capital		1,564.5			1,553.4
Retained earnings		541.7			519.4
Accumulated other comprehensive (loss)		(31.0	)		(22.0	)
TECO Energy stockholders' equity		2,291.8			2,266.6
Noncontrolling interest		0.0			0.6
Total capital		2,291.8			2,267.2
Total liabilities and capital	$	7,356.5		$	7,322.2

Book Value Per Share	$	10.58		$	10.50


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)	2012			2011			2012			2011

Cash flows from operating activities
Net income attributable to TECO Energy	$	45.1		$	53.2		$	212.7		$	272.6

Adjustments to reconcile net income to net cash from operating activities:
Depreciation and amortization		84.5			81.2			337.7			324.6
Deferred income taxes		21.7			28.5			136.9			146.0
Investment tax credits		0.0			(0.1	)		(0.3	)		(0.4	)
Allowance for other funds used during construction		(1.0	)		(0.2	)		(2.6	)		(1.0	)
Non-cash stock compensation		3.5			2.5			12.0			9.1
Loss (gain) on sales of business / assets, pretax		4.0			0.0			18.5			(0.5	)
Deferred recovery clause		(5.2	)		(12.6	)		(8.9	)		(9.0	)
Asset impairment, pretax		(0.2	)		0.0			17.2			0.0
Receivables, less allowance for uncollectibles		85.0			15.1			37.7			5.7
Inventories		(10.3	)		(16.2	)		(2.4	)		23.5
Prepayments and other current assets		1.1			1.6			(2.0	)		(2.8	)
Taxes accrued		(46.6	)		(40.9	)		12.1			(5.7	)
Interest accrued		(29.5	)		(22.9	)		(5.9	)		0.3
Accounts payable		(23.3	)		(15.7	)		(1.3	)		(42.6	)
Other		20.3			9.0			(4.7	)		34.3
		149.1			82.5			756.7			754.1

Cash flows from investing activities
Capital expenditures		(149.9	)		(155.8	)		(505.1	)		(454.1	)
Allowance for other funds used during construction		1.0			0.2			2.6			1.0
Net proceeds from sale of business / assets		187.0			0.1			194.4			3.5
Restricted cash		8.9			0.0			8.9			0.0
Other investments		0.0			0.0			0.0			14.4
		47.0			(155.5	)		(299.2	)		(435.2	)

Cash flows from financing activities
Dividends		(47.6	)		(46.4	)		(190.4	)		(183.2	)
Proceeds from sale of common stock		0.7			0.4			3.9			7.0
Proceeds from long-term debt		(0.2	)		0.0			538.1			0.0
Repayment of long-term debt / Purchase in lieu of redemption		(181.2	)		(2.8	)		(650.4	)		(153.6	)
Dividend to noncontrolling interest		0.0			0.0			(0.3	)		(0.6	)
Restricted cash		(1.9	)		0.0			(1.9	)		0.0
Net decrease in short-term debt		0.0			0.0			0.0			(12.0	)
		(230.2	)		(48.8	)		(301.0	)		(342.4	)

Net increase (decrease) in cash and cash equivalents		(34.1	)		(121.8	)		156.5			(23.5	)
Cash and cash equivalents at beginning of period		234.6			165.8			44.0			67.5
Cash and cash equivalents at end of period	$	200.5		$	44.0		$	200.5		$	44.0


TECO ENERGY, Inc.
SEGMENT INFORMATION (Unaudited)


(millions)		Tampa			Peoples		TECO		TECO			Other &			TECO
		Electric			Gas		Coal		Guatemala			Eliminations			Energy
Three months ended Dec. 31,
2012	Revenues - outsiders	$	452.9		$	97.7	$	134.8	$	--		$	3.0		$	688.4
	Sales to affiliates		(0.2	)		1.0		--		--			(0.8	)		--
	Total revenues		452.7			98.7		134.8		--			2.2			688.4
	Depreciation and amortization		60.4			12.9		10.0		--			0.4			83.7
	Total interest charges ⁽²⁾		23.6			3.4		1.6		--			14.1			42.7
	Allocated interest expense ⁽²⁾		--			--		1.6		--			(1.6	)		--
	Provision (Benefit) for income taxes		23.7			4.5		2.5		--			(6.1	)		24.6
	Income from continuing operations		36.2			7.1		10.8		--			(8.5	)		45.6
	Discontinued operations attributable to TECO Energy, net of tax ⁽³⁾		--			--		--		(0.7	)		0.2			(0.5	)
	Net income (loss) attributable to TECO Energy ⁽¹⁾	$	36.2		$	7.1	$	10.8	$	(0.7	)	$	(8.3	)	$	45.1
2011	Revenues - outsiders	$	448.7		$	92.0	$	177.5	$	--		$	1.8		$	720.0
	Sales to affiliates		0.3			--		--		--			(0.3	)		--
	Total revenues		449.0			92.0		177.5		--			1.5			720.0
	Depreciation and amortization		55.7			12.4		10.9		--			0.3			79.3
	Total interest charges ⁽²⁾		30.2			4.4		1.8		--			12.2			48.6
	Allocated interest expense ⁽²⁾		--			--		1.7		--			(1.7	)		--
	Provision (Benefit) for income taxes		20.5			4.6		4.7		--			(2.3	)		27.5
	Income from continuing operations		37.7			7.2		13.4		--			(11.0	)		47.3
	Discontinued operations attributable to TECO Energy, net of tax ⁽³⁾		--			--		--		6.0			(0.1	)		5.9
	Net income (loss) attributable to TECO Energy ⁽¹⁾	$	37.7		$	7.2	$	13.4	$	6.0		$	(11.1	)	$	53.2
Twelve months ended Dec. 31,
2012	Revenues - outsiders	$	1,980.7		$	396.6	$	608.9	$	--		$	10.4		$	2,996.6
	Sales to affiliates		0.6			2.3		--		--			(2.9	)		--
	Total revenues		1,981.3			398.9		608.9		--			7.5			2,996.6
	Depreciation and amortization		237.6			50.6		41.0		--			1.4			330.6
	Total interest charges ⁽²⁾		109.8			16.0		7.1		--			50.6			183.5
	Allocated interest expense ⁽²⁾		--			--		6.8		--			(6.8	)		--
	Provision (Benefit) for income taxes		120.2			21.5		15.7		--			(19.6	)		137.8
	Income from continuing operations		193.1			34.1		50.2		--			(31.4	)		246.0
	Discontinued operations attributable to TECO Energy, net of tax ⁽³⁾		--			--		--		(29.3	)		(4.0	)		(33.3	)
	Net income (loss) attributable to TECO Energy ⁽¹⁾	$	193.1		$	34.1	$	50.2	$	(29.3	)	$	(35.4	)	$	212.7
2011	Revenues - outsiders	$	2,019.3		$	450.5	$	733.0	$	--		$	7.1		$	3,209.9
	Sales to affiliates		1.3			3.0		--		--			(4.3	)		--
	Total revenues		2,020.6			453.5		733.0		--			2.8			3,209.9
	Depreciation and amortization		222.1			48.4		45.3		--			1.4			317.2
	Total interest charges ⁽²⁾		121.8			17.7		6.9		--			51.0			197.4
	Allocated interest expense ⁽²⁾		--			--		6.7		--			(6.7	)		--
	Provision (Benefit) for income taxes		124.8			20.6		15.4		--			(18.1	)		142.7
	Income from continuing operations		202.7			32.6		51.5		--			(36.0	)		250.8
	Discontinued operations attributable to TECO Energy, net of tax ⁽³⁾		--			--		--		22.4			(0.6	)		21.8
	Net income (loss) attributable to TECO Energy ⁽¹⁾	$	202.7		$	32.6	$	51.5	$	22.4		$	(36.6	)	$	272.6

(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 2012 and 6.25% for 2011. 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 Guatemala and certain charges at Parent that directly relate to TECO Guatemala.


TAMPA ELECTRIC COMPANY
ELECTRIC OPERATING STATISTICS (Unaudited)

	Operating Revenues*								Sales -- Kilowatt-hours*
Three Months Ended Dec. 31,							Percent				Percent
	2012			2011			Change		2012	2011	Change

Residential	$	211,398		$	206,377		2.4		1,848,679	1,804,073	2.5
Commercial		145,227			146,661		(1.0	)	1,454,981	1,467,976	(0.9	)
Industrial -- Phosphate		19,263			15,508		24.2		232,103	182,722	27.0
Industrial -- Other		24,394			24,609		(0.9	)	260,153	263,963	(1.4	)
Other sales of electricity		46,086			45,755		0.7		456,490	449,137	1.6

		446,368			438,910		1.7		4,252,406	4,167,871	2.0

Deferred and other revenues		(13,786	)		(8,371	)	64.7		--	--	--
Sales for resale		3,315			3,332		(0.5	)	50,377	73,015	(31.0	)
Other operating revenue		16,906			15,094		12.0		--	--	--
SO ₂ Allowance Sales		--			--		--		--	--	--
NOx Allowance Sales		--			--		--		--	--	--
	$	452,803		$	448,965		0.9		4,302,783	4,240,886	1.5

Average customers		686,633			677,411		1.4		--	--	--

Retail Net Energy For Load									4,308,231	4,161,063	3.5

Total Degree Days									658	629	4.6


	Operating Revenues*								Sales -- Kilowatt-hours*
Twelve Months Ended Dec. 31,							Percent				Percent
	2012			2011			Change		2012	2011	Change

Residential	$	958,955		$	994,748		(3.6	)	8,395,166	8,717,992	(3.7	)
Commercial		612,282			612,598		(0.1	)	6,185,012	6,206,564	(0.3	)
Industrial -- Phosphate		75,686			61,966		22.1		913,071	731,228	24.9
Industrial -- Other		101,209			99,287		1.9		1,088,367	1,072,474	1.5
Other sales of electricity		184,053			185,199		(0.6	)	1,826,964	1,835,311	(0.5	)

		1,932,185			1,953,798		(1.1	)	18,408,580	18,563,569	(0.8	)

Deferred and other revenues		(26,641	)		(10,292	)	158.9		--	--	--
Sales for resale		16,210			21,680		(25.2	)	267,061	352,860	(24.3	)
Other operating revenue		59,625			55,380		7.7		--	--	--
SO ₂ Allowance Sales		1			4		(75.0	)	--	--	--
NOx Allowance Sales		--			37		(100.0	)	--	--	--
	$	1,981,380		$	2,020,607		(1.9	)	18,675,641	18,916,429	(1.3	)

Average customers		684,236			675,799		1.2		--	--	--

Retail Net Energy For Load									19,254,552	19,205,173	0.3

Total Degree Days									4,190	4,298	(2.5	)

* in thousands


PEOPLES GAS SYSTEM
GAS OPERATING STATISTICS (Unaudited)

	Operating Revenues*						Therms*
Three Months Ended Dec. 31,					Percent				Percent
	2012		2011		Change		2012	2011	Change

By Customer Segment:
Residential	$	31,931	$	31,398	1.7		18,835	17,816	5.7
Commercial		33,536		32,308	3.8		107,788	104,009	3.6
Industrial		3,362		2,309	45.6		68,487	53,869	27.1
Off System Sales		15,551		12,250	26.9		40,720	32,600	24.9
Power generation		2,751		2,444	12.6		182,906	141,360	29.4
Other revenues		9,294		9,352	(0.6	)	--	--	--
	$	96,425	$	90,061	7.1		418,736	349,654	19.8

By Sales Type:
System supply	$	59,444	$	54,872	8.3		69,209	60,542	14.3
Transportation		27,687		25,837	7.2		349,527	289,112	20.9
Other revenues		9,294		9,352	(0.6	)	--	--	--
	$	96,425	$	90,061	7.1		418,736	349,654	19.8

Average customers		343,761		339,066	1.4		--	--	--



	Operating Revenues*						Therms*
Twelve Months Ended Dec. 31,					Percent				Percent
	2012		2011		Change		2012	2011	Change

By Customer Segment:
Residential	$	125,355	$	140,787	(11.0	)	70,811	77,676	(8.8	)
Commercial		134,146		137,985	(2.8	)	421,452	409,271	3.0
Industrial		10,331		8,833	17.0		237,338	205,081	15.7
Off System Sales		73,675		105,974	(30.5	)	223,964	230,992	(3.0	)
Power generation		12,395		10,629	16.6		913,462	614,302	48.7
Other revenues		34,868		39,877	(12.6	)	--	--	--
	$	390,770	$	444,085	(12.0	)	1,867,027	1,537,322	21.4

By Sales Type:
System supply	$	247,361	$	302,714	(18.3	)	334,268	353,306	(5.4	)
Transportation		108,541		101,494	6.9		1,532,759	1,184,016	29.5
Other revenues		34,868		39,877	(12.6	)	--	--	--
	$	390,770	$	444,085	(12.0	)	1,867,027	1,537,322	21.4

Average customers		342,907		338,840	1.2		--	--	--

* in thousands

« First ‹ Previous ... 2 3 4 5 6 7 8 9 10 Next › Last »

Select the service that is right for you!

COMPARE ALL SERVICES

Action Alerts PLUS

TRY IT FREE

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:

$2.5+ million portfolio
Large-cap and dividend focus
Intraday trade alerts from Cramer
Weekly roundups

TheStreet Quant Ratings

TRY IT FREE

New! $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:

Buy, hold, or sell recommendations for over 4,300 stocks
Unlimited research reports on your favorite stocks
A custom stock screener
Upgrade/downgrade alerts

Stocks Under $10

TRY IT FREE

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:

Model portfolio
Stocks trading below $10
Intraday trade alerts
Weekly roundups

Dividend Stock Advisor

TRY IT FREE

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:

Diversified model portfolio of dividend stocks
Alerts when market news affect the portfolio
Bi-weekly updates with exact steps to take - BUY, HOLD, SELL

Real Money Pro

TRY IT FREE

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:

Real Money + Doug Kass + 15 more Wall Street Pros
Intraday commentary & news
Ultra-actionable trading ideas

Options Profits

TRY IT FREE

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:

100+ monthly options trading ideas
Actionable options commentary & news
Real-time trading community
Options TV

To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.