UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
| x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended March 31, 2005
or
| ¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from to
| Commission File No. |
Exact name of each Registrant as specified in its charter, state of incorporation, address of principal executive offices, telephone number | I.R.S. Employer Identification Number | ||
| 1-8180 | TECO ENERGY, INC. | 59-2052286 | ||
| (a Florida corporation) | ||||
| TECO Plaza 702 N. Franklin Street Tampa, Florida 33602 (813) 228-1111 | ||||
| 1-5007 | TAMPA ELECTRIC COMPANY | 59-0475140 | ||
| (a Florida corporation) | ||||
| TECO Plaza 702 N. Franklin Street Tampa, Florida 33602 (813) 228-1111 |
||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class |
Name of each exchange on which registered | |
| TECO Energy, Inc. |
||
| Common Stock, $1.00 par value | New York Stock Exchange | |
| Common Stock Purchase Rights | New York Stock Exchange |
Securities registered pursuant to Section 12(g) of the Act: NONE
Indicate by check mark whether the registrants (1) have filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) have been subject to such filing requirements for the past 90 days. YES x NO ¨
Indicate by check mark whether TECO Energy, Inc. is an accelerated filer (as defined in Exchange Act Rule 12b-2). YES x NO ¨
Indicate by check mark whether Tampa Electric Company is an accelerated filer (as defined in Exchange Act Rule 12b-2). YES ¨ NO x
Number of shares of TECO Energy, Inc.’s common stock outstanding as of April 30, 2005 was 206,978,853.
As of April 30, 2005, there were 10 shares of Tampa Electric Company’s common stock issued and outstanding, all of which were held, beneficially and of record, by TECO Energy, Inc.
Tampa Electric Company meets the conditions set forth in General Instruction (H) (1) (a) and (b) of Form 10-Q and is therefore filing this form with the reduced disclosure format.
This combined Form 10-Q represents separate filings by TECO Energy, Inc. and Tampa Electric Company. Information contained herein relating to an individual registrant is filed by that registrant on its own behalf. Each registrant makes representations only as to information relating to itself and its subsidiaries.
PART I. FINANCIAL INFORMATION
Item 1. CONSOLIDATED FINANCIAL STATEMENTS
TECO ENERGY, INC.
In the opinion of management, the unaudited consolidated financial statements include all adjustments that are of a recurring nature and necessary to present fairly the financial position of TECO Energy, Inc. and subsidiaries as of Mar. 31, 2005 and Dec. 31, 2004, and the results of their operations and cash flows for the periods ended Mar. 31, 2005 and 2004. The results of operations for the three-month period ended Mar. 31, 2005 are not necessarily indicative of the results that can be expected for the entire fiscal year ending Dec. 31, 2005. References should be made to the explanatory notes affecting the consolidated financial statements contained in TECO Energy, Inc.’s Annual Report on Form 10-K for the year ended Dec. 31, 2004 and to the notes on pages 8 through 21 of this report.
INDEX TO CONSOLIDATED F INANCIAL STATEMENTS
2
Consolidated Balance Sheets
Unaudited
| Assets (millions)
|
Mar. 31, 2005 |
Dec. 31, 2004 |
||||||
| Current assets |
||||||||
| Cash and cash equivalents |
$ | 312.6 | $ | 96.7 | ||||
| Restricted cash |
57.1 | 57.1 | ||||||
| Receivables, less allowance for uncollectibles of $9.3 and $8.0 at Mar. 31, 2005 and Dec. 31, 2004, respectively |
300.4 | 286.8 | ||||||
| Inventories, at average cost |
||||||||
| Fuel |
64.9 | 46.2 | ||||||
| Materials and supplies |
72.3 | 74.6 | ||||||
| Current derivative assets |
40.5 | 3.8 | ||||||
| Prepayments and other current assets |
40.1 | 43.6 | ||||||
| Assets held for sale |
130.5 | 128.8 | ||||||
| Total current assets |
1,018.4 | 737.6 | ||||||
| Property, plant and equipment |
||||||||
| Utility plant in service |
||||||||
| Electric |
4,795.7 | 4,857.9 | ||||||
| Gas |
815.8 | 810.8 | ||||||
| Construction work in progress |
219.7 | 207.1 | ||||||
| Other property |
833.3 | 847.6 | ||||||
| Property, plant and equipment, at original cost |
6,664.5 | 6,723.4 | ||||||
| Accumulated depreciation |
(2,108.3 | ) | (2,065.5 | ) | ||||
| Total property, plant and equipment (net) |
4,556.2 | 4,657.9 | ||||||
| Other assets |
||||||||
| Deferred income taxes |
1,362.4 | 1,379.1 | ||||||
| Other investments |
8.0 | 8.0 | ||||||
| Regulatory assets |
191.6 | 200.9 | ||||||
| Investment in unconsolidated affiliates |
261.2 | 263.0 | ||||||
| Goodwill |
59.4 | 59.4 | ||||||
| Long-term derivative assets |
0.7 | — | ||||||
| Deferred charges and other assets |
121.8 | 111.5 | ||||||
| Assets held for sale |
2,139.6 | 2,059.1 | ||||||
| Total other assets |
4,144.7 | 4,081.0 | ||||||
| Total assets |
$ | 9,719.3 | $ | 9,476.5 | ||||
The accompanying notes are an integral part of the consolidated financial statements.
3
TECO ENERGY, INC.
Consolidated Balance Sheets – continued
Unaudited
| Liabilities and capital (millions)
|
Mar. 31, 2005 |
Dec. 31, 2004 |
||||||
| Current liabilities |
||||||||
| Long-term debt due within one year |
||||||||
| Recourse |
$ | 5.5 | $ | 5.5 | ||||
| Non-recourse |
4.1 | 8.1 | ||||||
| Notes payable |
80.0 | 115.0 | ||||||
| Accounts payable |
251.1 | 257.8 | ||||||
| Customer deposits |
108.6 | 105.8 | ||||||
| Current derivative liabilities |
— | 11.5 | ||||||
| Interest accrued |
90.7 | 50.6 | ||||||
| Taxes accrued |
51.1 | 36.3 | ||||||
| Liabilities associated with assets held for sale |
1,672.3 | 1,631.8 | ||||||
| Total current liabilities |
2,263.4 | 2,222.4 | ||||||
| Other liabilities |
||||||||
| Deferred income taxes |
523.4 | 504.1 | ||||||
| Investment tax credits |
19.3 | 20.0 | ||||||
| Regulatory liabilities |
573.8 | 539.0 | ||||||
| Long-term derivative liability |
— | 0.5 | ||||||
| Deferred credits and other liabilities |
355.8 | 351.5 | ||||||
| Liabilities associated with assets held for sale |
653.9 | 672.2 | ||||||
| Long-term debt, less amount due within one year |
||||||||
| Recourse |
3,590.4 | 3,588.9 | ||||||
| Non-recourse |
— | 13.4 | ||||||
| Junior subordinated |
277.7 | 277.7 | ||||||
| Minority interest |
— | 2.9 | ||||||
| Total other liabilities |
5,994.3 | 5,970.2 | ||||||
| Commitments and contingencies (see Note 11) |
||||||||
| Capital |
||||||||
| Common equity (400 million shares authorized; par value $1; |
||||||||
| 206.9 million shares and 199.7 million shares outstanding at |
||||||||
| Mar. 31, 2005 and Dec. 31, 2004, respectively) |
206.9 | 199.7 | ||||||
| Additional paid in capital |
1,625.6 | 1,489.4 | ||||||
| Retained deficit |
(324.9 | ) | (357.6 | ) | ||||
| Accumulated other comprehensive income |
(42.9 | ) | (43.8 | ) | ||||
| Common equity |
1,464.7 | 1,287.7 | ||||||
| Unearned compensation |
(3.1 | ) | (3.8 | ) | ||||
| Total capital |
1,461.6 | 1,283.9 | ||||||
| Total liabilities and capital |
$ | 9,719.3 | $ | 9,476.5 | ||||
The accompanying notes are an integral part of the consolidated financial statements.
4
Consolidated Statements of Income
Unaudited
| Three months ended Mar. 31, |
||||||||
| (millions, except per share amounts)
|
2005 |
2004 |
||||||
| Revenues |
||||||||
| Regulated electric and gas (includes franchise fees and gross receipts taxes of $20.7 in 2005 and $20.8 in 2004) |
$ | 522.1 | $ | 488.0 | ||||
| Unregulated |
162.6 | 128.0 | ||||||
| Total revenues |
684.7 | 616.0 | ||||||
| Expenses |
||||||||
| Regulated operations |
||||||||
| Fuel |
114.6 | 120.8 | ||||||
| Purchased power |
40.9 | 29.1 | ||||||
| Cost of natural gas sold |
83.5 | 58.9 | ||||||
| Other |
61.0 | 65.2 | ||||||
| Other operations |
145.6 | 134.0 | ||||||
| Maintenance |
39.0 | 33.2 | ||||||
| Depreciation |
70.1 | 68.8 | ||||||
| Asset impairment |
— | 6.7 | ||||||
| Taxes, other than income |
50.1 | 47.5 | ||||||
| Total expenses |
604.8 | 564.2 | ||||||
| Income from operations |
79.9 | 51.8 | ||||||
| Other income |
||||||||
| Allowance for other funds used during construction |
— | 0.7 | ||||||
| Other income |
37.1 | 46.6 | ||||||
| Income from equity investments |
15.2 | 6.9 | ||||||
| Total other income |
52.3 | 54.2 | ||||||
| Interest charges |
||||||||
| Interest expense |
75.5 | 87.5 | ||||||
| Allowance for borrowed funds used during construction |
— | (0.3 | ) | |||||
| Total interest charges |
75.5 | 87.2 | ||||||
| Income before provision for income taxes |
56.7 | 18.8 | ||||||
| Provision for income taxes |
27.8 | 10.2 | ||||||
| Income from continuing operations before minority interests |
28.9 | 8.6 | ||||||
| Minority interest |
22.6 | 23.1 | ||||||
| Income from continuing operations |
51.5 | 31.7 | ||||||
| Discontinued operations |
||||||||
| Loss from discontinued operations |
(29.9 | ) | (44.9 | ) | ||||
| Income tax benefit |
(11.1 | ) | (15.7 | ) | ||||
| Total discontinued operations |
(18.8 | ) | (29.2 | ) | ||||
| Net income |
$ | 32.7 | $ | 2.5 | ||||
| Average common shares outstanding |
||||||||
| – Basic |
205.1 | 188.0 | ||||||
| – Diluted |
206.0 | 188.6 | ||||||
| Earnings per share from continuing operations |
||||||||
| – Basic |
$ | 0.25 | $ | 0.17 | ||||
| – Diluted |
$ | 0.25 | $ | 0.17 | ||||
| Earnings per share from discontinued operations |
||||||||