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 monthse nded Sept. 30
 

9 months ended Sept. 30
 

12 months ended 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 -- -- --
SO 2 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 ) -- -- --
SO 2 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 -- -- --
SO 2 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

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