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TECO Energy, Inc. Q2 2010 Earnings Call Transcript

TECO Energy, Inc. Q2 2010 Earnings Call Transcript

TECO Energy, Inc. (TE)

Q2 2010 Earnings Call

August 5, 2010 9:00 am ET


Sandy Callahan – CFO

Sherrill Hudson – CEO

John Ramil – President & newly named CEO

Mark Kane - Director of IR


Lasan Johong – RBC Capital

Ali Agha - SunTrust Robinson Humphrey

Mark De Croisset – FBR

Jeff Gildersleeve – Millenium Partners

Maurice May – Power Insight

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Jack DeAngelo – Catapult

Timothy Yee – KeyBanc Capital Markets



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Good morning. My name is Janiqua, and I will be your conference operator today. At this time, I would like to welcome everyone to the TECO Energy Second Quarter Result and Remainder 2010 Outlook Conference Call. (Operator Instructions)

I would now like to turn the call over to Mark Kane, Director of Investor Relations. You may begin.

Mark Kane

Thank you, Janiqua. Good morning, everyone. And thank you for joining us on TECO Energy’s Second Quarter Results Conference Call and Webcast.

Our Earnings Release, along with unaudited financial statements were released and were also filed with the SEC earlier this morning.

The presentation is being webcasted and our Earnings Release, Financial Statements, and the slides for this presentation are available on our website at

The presentation will be available for replay through the website approximately two hours after the end of the presentation and will be available for 30 days.

In the course of our remarks, today, we will be making forward-looking statements regarding our financial outlook and plans for 2010 and beyond.

There are a number of factors that could cause our actual results to differ materially from those that we’ll discussion as our outlook and expectations today.

For a more complete discussion of these factors, we refer you to the discussion of the risk factors in our annual report on Form 10K for the period ended December 31, 2009 and as they’ve been updated in subsequent filings with the SEC.

Also today, we’ll be using non-GAAP measures in the course of the presentation. There are reconciliations to the nearest GAAP measure contained in the appendix to today’s presentation.

On our call today, Sherrill Hudson and John Ramil will make some opening remarks regarding our management change announced yesterday afternoon. Then Sandy Callahan, our Chief Financial Officer will cover the second quarter results, discuss what we’re seeing in the local and Florida economies, and update the drivers for our guidance for 2010.

Now, let me turn it over to Sherrill Hudson.

Sherrill Hudson

Thank you, Mark. And I want to thank all of you for joining us this morning.

Yesterday we announce that our Board had named John Ramil as TECO Energy’s President and Chief Executive Officer. That was an important day for John, for the company, and for me.

Shortly after I became TECO Energy’s CEO, in an interview in the Miami Herald, I stated that my number one priority was to develop a successor. John has been an outstanding leader at TECO Energy for many years in a variety of key roles.

I’m confident that with his extensive experience, that he’s the perfect person to lead TECO Energy in the environment of change and opportunity we see today.

I look forward to working with John and his team. John, again, congratulations. I appreciate everything you’ve done and are going to do in the future.

John Ramil

Thanks, Sherrill. And thanks all of you for joining us this morning.

I’m, indeed, excited to assume this new leadership role at TECO Energy, and I’m especially pleased to be following Sherrill as our CEO.

Over the past six years, under Sherrill’s guidance and steady hand at the company we made significant progress on improving our financial health. We added generate facilities and state-of-the-art environmental controls. We retired over 900 million of debt. We’ve grown our dividends three of the last four years, and we are on a nice trend of meaningful earnings growth.

We focused on our regulated for the utilities and positioned them well. We’ve served our customers and our communities for more than 110 years and we look forward to serving you for another 110.

And most importantly, I think we’ve met our commitments. We’ve done what we said we would do. And I can assure you that’s something that won’t change as we move forward.

I’ve gotten to know most of you over the past several years and I look forward to continue to work with you as we move ahead.

And most of you know Sandy, and Gordon Gillette has joined us on the conference call this morning as smart, competent, dedicated and achievement-oriented executives.

I can assume you that the rest of our leadership team possesses those very same skills and we’re committed to continue success.

And with that, I’ll turn things over to Sandy.

Sandy Callahan

Thank you, John. Good morning, everyone. And thank you for joining us on what we know is a very busy day for utility earnings reports.

I’ll cover our first quarter and year-to-date results and business drivers, and then I’ll update our outlook for the remainder of this year, what we’re seeing in the Florida and local economies. And finally, update you on some of our investor communication plans.

In the first quarter, our GAAP net income was 75 ½ million compared to 60.9 million in 2009. Earnings per share were $0.35 in the first quarter compared to $0.29 last year.

Net Income included a $4.1 million charge for early debt retirement completed in April. There were no charges or gains in the 2009 quarter.

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