 |
|
|||||||||||||||
|
January 22, 2001
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
JUNO BEACH, Fla. -- FPL Group, Inc. (NYSE: FPL) today reported recurring net income of $745 million or $4.38 per share, for the year ended Dec. 31, 2000, compared with net income of $681 million, or $3.98 per share in 1999. The results exclude expenses in 2000 related to the pending FPL Group-Entergy Corporation merger, as well as nonrecurring gains and charges in 1999. For the fourth quarter of 2000, FPL Group's recurring net income was $106 million, or 63 cents per share, compared with $97 million, or 57 cents per share in the 1999 quarter. Nonrecurring gains and charges for both quarters were excluded. Including the merger-related costs, FPL Group's 2000 net income was $704 million or $4.14 per share, and fourth quarter 2000 net income was $65 million or 38 cents per share. Including special gains from the sale of cable investments and nonrecurring charges in 1999, full-year net income was $697 million or $4.07 per share, and fourth quarter net income was $121 million or 71 cents per share. "This past year was a landmark year for FPL Group," said James L. Broadhead, FPL Group chairman and chief executive officer. "Florida Power & Light and FPL Energy produced outstanding operating results, and our new subsidiary, FPL FiberNet, achieved profitability in its first year of operation. This performance enabled us to reach new records of net income and earnings per share, and shareholders were rewarded with exceptionally attractive returns. The highlight of our year was the announcement of our agreement to merge with Entergy Corporation, thereby creating one of America's leading energy companies." Shareholders of FPL Group and Entergy approved the merger in December. The companies have said they expected to complete the transaction in the fourth quarter of this year. Earlier this month, however, an Administrative Law Judge, assigned to the Louisiana Public Service Commission, scheduled hearings on the merger for late October. Entergy will file a motion for reconsideration of that schedule, noting it believes the commission's review can be accomplished within a shorter timeframe without undue hardship on the LPSC. If the revised schedule is not obtained, the companies estimate the merger closing could be delayed by three to six months. In 2000, the company's recurring net income increased 9 percent, and earnings per share growth exceeded 10 percent. The total return on the company's common stock - dividends plus stock price appreciation - was 74.8 percent, compared to the Standard & Poor's Electric Utilities Index of 53.5 percent. Florida Power & Light Company Fourth quarter net income for the company's principal subsidiary Florida Power & Light, excluding merger-related expenses and 1999 nonrecurring items, was $92 million compared to $87 million in 1999. Net income for the full year 2000 increased more than four percent to $645 million from $618 million in 1999. FPL added 92,000 new customers during 2000, an increase of 2.5 percent from 1999. Customer growth, increased usage per customer of nearly two percent, and lower operations and maintenance and depreciation expense contributed to earnings -- offset somewhat by the effect of the rate agreement and interest expense associated with the company's power plant and system expansion program. "The key to FPL's success is our ability to lower costs while improving customer service and reliability," said Mr. Broadhead. "FPL has lowered operating and maintenance expense per kilowatt-hour by 40 percent over the past decade. We have improved the performance of our power plants to be among the best run in the nation, and our service reliability far exceeds the national average."
FPL Energy In the fourth quarter, net income for FPL Energy, excluding merger-related expenses, more than doubled to $9 million in 2000 from $4 million in 1999. Net income for the full year 2000 increased by 43 percent to $83 million from $58 million in 1999. The growth in earnings reflects an increase in FPL Energy's power plant portfolio, as well as improved operating performance of existing assets. During 2000, FPL Energy increased its power project portfolio by nearly 40 percent to approximately 4,100 megawatts. It now has power plants operating, under construction or in development in 15 states. "In addition to having made a significant contribution to our earnings growth in 2000," said Mr. Broadhead, "FPL Energy has developed a solid and growing pipeline of projects that should help ensure its continued healthy growth." Corporate & Other FPL FiberNet, which leases fiber optic capacity in Florida and the Southeast, posted modest earnings in its first year of operation. The subsidiary began operating as a wholly owned subsidiary of FPL Group in January. It operates a 2,000-mile fiber optic network throughout much of the state and has plans to build intra-city networks in 15 metropolitan areas in Florida. The increase in net income and contributions to earnings per share from Corporate and Other was largely attributable to FPL FiberNet. Other 2000 Highlights for FPL Group Improved Service: Florida Power & Light's electric reliability continued to improve in 2000, and its reliability is 40 percent better than the national average. Added power sources: Florida Power & Light continued to repower its Fort Myers and Sanford plants and construct new peaking units at its Martin plant. By 2002, FPL will have added 15 percent capacity to its existing power plant fleet in Florida. FPL Energy completed construction of a 1000-megawatt gas-fired power plant in Paris, Texas and acquired a 104-megawatt wind farm in Minnesota in 2000. In addition, the subsidiary announced plans to construct new plants: a 744-megawatt project in Pennsylvania; a 171-megawatt plant in Virginia; a 160-megawatt wind farm in Texas; and a 535-megawatt plant in Rhode Island. In January, FPL Energy announced it has begun construction of a 535-megawatt gas-fired plant in Bastrop, Texas, which will be co-owned with Coastal Power Company. It also announced it will build a 300-megawatt wind farm on the Washington-Oregon border. Stock Repurchase: FPL Group repurchased approximately 2.6 million shares of FPL common stock during 2000 compared to 2.2 million shares in 1999. Approximately one million shares were repurchased in the fourth quarter of 2000. Profile FPL Group, with annual revenues of more than $7 billion, is one of the nation's largest providers of electricity-related services. Its principal subsidiary, Florida Power & Light Company serves 3.9 million customer accounts in Florida. FPL Energy, LLC, FPL Group's independent power producer subsidiary, is a leader in generating electricity from clean and renewable fuels. Information about FPL Group businesses and the company's pending merger with Entergy is available on the Internet at www.fplgroup.com Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 This press release contains forward looking statements within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements with respect to revenues, earnings, performance, strategies, prospects and other aspects of the businesses of FPL Group, Inc. and Entergy Corporation are based on current expectations that are subject to risk and uncertainties. A number of factors could cause actual results or outcomes to differ materially from those indicated by such forward looking statements. These factors include, but are not limited to, risks and uncertainties relating to: changes in laws or regulations, changing governmental policies and regulatory actions with respect to allowed rates of return including but not limited to return on equity and equity ratio limits, industry and rate structure, operation of nuclear power facilities, acquisition, disposal, depreciation and amortization of assets and facilities, operation and construction of plant facilities, recovery of fuel and purchased power costs, decommissioning costs, present or prospective wholesale and retail competition (included but not limited to retail wheeling and transmission costs), political and economic risks, changes in and compliance with environmental and safety laws and policies, weather conditions (including natural disasters such as hurricanes), population growth rates and demographic patterns, competition for retail and wholesale customers, availability, pricing and transportation of fuel and other energy commodities, market demand for energy from plants or facilities, changes in tax rates or policies or in rates of inflation or in accounting standards, unanticipated delays or changes in costs for capital projects, unanticipated changes in operating expenses and capital expenditures, capital market conditions, competition for new energy development opportunities and legal and administrative proceedings (whether civil, such as environmental, or criminal) and settlements and other factors. Readers are referred to FPL Group, Inc.'s and Entergy Corporation's most recent reports filed with the Securities and Exchange Commission. A webcast of our 4th quarter earnings conference call scheduled at 9 a.m. ET on Monday January 22, 2001 is available on FPL Group's Web site, www.fplgroup.com, by following the link provided. FPL Group, Inc. |
|||
Three Months Ended Dec. 31, |
|||
2000 |
1999 |
||
FPL kilowatt-hour sales |
21,216 |
20,132 |
|
Operating Revenues |
$ 1,857 |
$ 1,520 |
|
Operating Expenses |
|||
Fuel, purchased power and interchange |
877 |
578 |
|
Other operations and maintenance |
349 |
342 |
|
Depreciation and amortization |
269 |
271 |
|
Taxes other than income taxes |
149 |
154 |
|
Total operating expenses |
1,644 |
1,345 |
|
Other Income (Deductions) |
|||
Interest charges and preferred stock dividends |
(81) |
(63) |
|
Other - net |
13 |
1 |
|
Total other income (deductions) - net |
(68) |
(62) |
|
Income Taxes |
39 |
16 |
|
Net Income excluding merger-related and nonrecurring items |
$ 106 |
$ 97 |
|
Merger-related and nonrecurring items |
|||
Merger-related expenses |
(41) |
-- |
|
Redemption of interest in cable limited partnership |
-- |
66 |
|
Litigation settlement |
-- |
(42) |
|
Total |
$ (41) |
$ 24 |
|
Earnings per share excluding nonrecurring items (basic and assuming dilution) |
$ 0.63 |
$ 0.57 |
|
Weighted-average shares outstanding (basic and assuming dilution) |
169 |
171 |
|
Twelve Months Ended Dec. 31, |
|||
2000 |
1999 |
||
FPL kilowatt-hour sales |
91,969 |
88,067 |
|
Operating Revenues |
$ 7,082 |
$ 6,438 |
|
Operating Expenses |
|||
Fuel, purchased power and interchange |
2,868 |
2,365 |
|
Other operations and maintenance |
1,257 |
1,253 |
|
Depreciation and amortization |
1,032 |
1,040 |
|
Taxes other than income taxes |
618 |
615 |
|
Total operating expenses |
5,775 |
5,273 |
|
Other Income (Deductions) |
|||
Interest charges and preferred stock dividends |
(293) |
(237) |
|
Other - net |
93 |
80 |
|
Total other income (deductions) - net |
(200) |
(157) |
|
Income Taxes |
362 |
327 |
|
Net Income excluding merger-related and nonrecurring items |
$ 745 |
$ 681 |
|
Merger-related and nonrecurring items |
|||
Merger-related expenses |
(41) |
-- |
|
Divestiture of cable investments |
-- |
162 |
|
Impairment loss on Maine assets |
-- |
(104) |
|
Litigation settlement |
-- |
(42) |
|
Total |
$ (41) |
$ 16 |
|
Earnings per share excluding nonrecurring items (basic and assuming dilution) |
$ 4.38 |
$ 3.98 |
|
Weighted-average shares outstanding: |
|||
Basic |
170 |
171 |
|
Assuming dilution |
170 |
172 |
|
FPL Group, Inc. |
|||
Three Months Ended Dec. 31, |
|||
2000 |
1999 |
||
Earnings Per Share |
|||
Basic: |
|||
Florida Power & Light Company |
$0.55 |
$0.51 |
|
FPL Energy, LLC |
0.06 |
0.03 |
|
Corporate and other |
0.02 |
0.03 |
|
Subtotal |
0.63 |
0.57 |
|
Merger-related and nonrecurring items: |
|||
Merger-related expenses |
(0.24) |
--- |
|
Redemption of interest in cable limited partnership |
--- |
0.39 |
|
Litigation settlement |
--- |
(0.25) |
|
Total |
$0.39 |
$0.71 |
|
Assuming Dilution |
$0.38 |
$0.71 |
|
Twelve Months Ended Dec. 31, |
|||
Earnings Per Share |
2000 |
1999 |
|
Basic: |
|||
Florida Power & Light Company |
$ 3.80 |
$ 3.61 |
|
FPL Energy, LLC |
0.49 |
0.34 |
|
Corporate and other |
0.09 |
0.03 |
|
Subtotal |
4.38 |
3.98 |
|
Merger-related and nonrecurring items: |
|||
Merger related expenses |
(0.24) |
-- |
|
Divestiture of cable investments |
-- |
0.95 |
|
Impairment loss on Maine assets |
-- |
(0.61) |
|
Litigation settlement |
-- |
(0.25) |
|
Total |
$4.14 |
$4.07 |
|
Assuming dilution |
$4.14 |
$4.07 |
|
FPL Group, Inc. |
|||
Three Months Ended Dec. 31, |
|||
2000 |
1999 |
||
Effect on Net Income |
|||
Florida Power & Light Company |
$ (38) |
$ (42) |
|
FPL Energy, LLC |
(1) |
-- |
|
Corporate and Other |
(2) |
66 |
|
Total |
(41) |
24 |
|
Effect on Earnings Per Share |
|||
Florida Power & Light Company |
$(0.22) |
$(0.25) |
|
FPL Energy, LLC |
(0.01) |
-- |
|
Corporate and Other |
(0.01) |
0.39 |
|
Total |
(0.24) |
0.14 |
|
Twelve Months Ended Dec. 31, |
|||
2000 |
1999 |
||
Effect on Net Income |
|||
Florida Power & Light Company |
$ (38) |
$ (42) |
|
FPL Energy, LLC |
(1) |
(104) |
|
Corporate and Other |
(2) |
162 |
|
Total |
$ (41) |
$ 16 |
|
Effect on Earnings Per Share |
|||
Florida Power & Light Company |
$ (0.22) |
$ (0.25) |
|
FPL Energy, LLC |
(0.01) |
(0.61) |
|
Corporate and other |
(0.01) |
0.95 |
|
Total |
$ (0.24) |
$ 0.09 |
|
