JUNO BEACH, Fla., April 19 /PRNewswire-FirstCall/ -- FPL Group, Inc.
(NYSE: FPL) today reported 2002 first quarter recurring net income of
$135 million compared to $130 million the prior year. Earnings per share rose
to 80 cents from 77 cents a year ago, a 4 percent increase.
(Photo: http://www.newscom.com/cgi-bin/prnh/20010621/FPLLOGO )
These 2002 first-quarter results exclude two nonrecurring items -- a
$30-million or 18 cents per share gain on the settlement of litigation with
the Internal Revenue Service and an after-tax impairment loss on goodwill of
$222 million or $1.31 per share. The goodwill impairment is the cumulative
effect of adopting a new accounting standard (FAS 142). Both quarters exclude
the after-tax effect of mark-to-market accounting of non-managed hedges which
was a $1 million gain in the 2002 quarter and a $1 million loss in the 2001
quarter. The comparison to the 2001 quarter excludes merger-related expenses
last year of 11 cents per share.
Including all items, net income for the 2002 first quarter was a negative
$56 million or a loss of 33 cents per share compared to $110 million or 65
cents per share in the 2001 quarter.
"FPL Group's first-quarter operating results were solid, despite a general
downturn in the economy, milder weather in Florida and extreme drought
conditions affecting our hydroelectric operations in the Northeast," said Lew
Hay, chairman and chief executive officer.
"With a solid first quarter under our belt and a new rate agreement in
place at Florida Power & Light, we expect 2002 earnings to be $4.78 to $4.82,"
he said.
Mr. Hay said he expects flat earnings from the utility in 2002 and 15 to
20 percent earnings growth from its independent power production subsidiary,
FPL Energy. The projected growth for FPL Energy in 2002 reflects the impact
of the Northeast drought in the first quarter and assumes the addition of
approximately 500 megawatts of wind generation, normal weather conditions the
remainder of the year and no major declines in power markets.
"For 2003 through 2005, FPL Group expects to realize 6 to 8 percent
average annual earnings growth," said Mr. Hay. "We expect FPL to achieve
average annual earnings growth of 4 to 5 percent, driven by anticipated growth
in customer accounts and usage per customer, cost management and lower
depreciation. Excluding the recently announced acquisition of the Seabrook
Nuclear Generating Station, FPL Energy expects average annual earnings growth
of 20 to 30 percent, as several gas-fired power projects transition from
construction to operation, and we add at least 500 to 1,000 megawatts of wind
generation."
The Seabrook purchase, which is expected to close by the end of 2002, is
expected to be modestly accretive in 2003 and add 10 cents to 12 cents per
share on average each year over the following three years. Accretion is
expected to accelerate thereafter.
Florida Power & Light
Florida Power & Light Company's net income for the quarter rose 4 percent
to $118 million from $113 million the prior year quarter, excluding previously
mentioned items. The utility's contribution to earnings per share was 69
cents compared to 67 cents in the 2001 quarter.
Base revenues were up 1.6 percent due to customer growth. FPL added
approximately 76,000 new customer accounts, a 1.9-percent increase. However,
usage per customer declined 2.2 percent due to milder weather and weaker
economic conditions.
Higher revenues, coupled with lower interest expense, more than offset
higher operations and maintenance expense, driving the 4 percent earnings
increase.
During the quarter, FPL announced a 7 percent base-rate reduction of
$250 million a year through 2005 that was part of an incentive-based agreement
approved by the Florida Public Service Commission and endorsed by the Office
of Public Counsel and other parties following nine months of review. The
agreement became effective April 15 and is similar in structure to one
negotiated in 1999.
FPL Energy
First quarter net income for FPL Energy was $23 million compared to
$20 million the prior year quarter, excluding previously mentioned items. The
independent power production subsidiary contributed earnings per share of 13
cents, compared to 12 cents per share last year.
Contributing to the increase was the addition of projects totaling more
than 1,000 megawatts since last year's first quarter and a $9 million after-
tax or 5 cents per share gain from mark-to-market managed hedging and trading
activities. The new projects include 843 megawatts of wind assets in the
central and western regions and the 171-megawatt expansion of the gas-fired
Doswell plant in Virginia. Partially offsetting the gains from the new
projects and trading activities was the severe drought in the Northeast that
had a serious negative impact on the performance of the company's
hydroelectric assets in Maine.
In March, Congress extended the production tax credit for wind generation
projects. As a result, FPL Energy expects to build 1,000 to 2,000 additional
megawatts of wind projects over the next two years, adding to its current
1,400-megawatt wind portfolio. As part of its growth plan, FPL Energy
announced earlier this month an agreement with Vestas Wind Systems A/S of
Denmark for delivery of approximately 175 660-kilowatt wind turbines and an
option for an additional 650 turbines.
With the addition of Seabrook and the anticipated wind projects to FPL
Energy's current list of projects in operation and under construction, the
subsidiary expects to have an 11,500-megawatt portfolio by 2004.
Corporate and Other
Corporate and Other was essentially flat. Earnings from FPL FiberNet, an
FPL Group subsidiary providing fiber-optic networks and related services in
Florida, were lower than the prior year quarter; however the business remained
profitable despite a turbulent telecommunications market.
Profile
FPL Group, with annual revenues of more than $8 billion, is nationally
known as a high-quality, efficient and customer-driven organization focused on
energy-related products and services. With a growing presence in more than 15
states, it is widely recognized as one of the country's premier power
companies and has nearly 22,000 megawatts of electricity generating capacity.
Its principal subsidiary, Florida Power & Light Company, serves more than 4
million customer accounts in Florida. FPL Energy, LLC, an FPL Group energy-
generating subsidiary, is a leader in producing electricity from clean and
renewable fuels. FPL FiberNet, LLC is a leading provider of fiber-optic
networks in Florida. Additional information is available on the Internet at
http://www.fplgroup.com, http://www.fpl.com, http://www.fplenergy.com and http://www.fplfibernet.com.
NOTE: A Webcast of FPL Group's first quarter earnings conference call,
scheduled at 9 a.m. EDT on Friday, April 19, 2002, is available on FPL Group's
Web site, http://www.fplgroup.com, by following the link provided.
Safe Harbor Statement: Any statements made herein about future operating
results or other future events are forward-looking statements under the Safe
Harbor Provisions of the Private Securities Litigation Reform Act of 1995.
Actual results may differ substantially from such forward-looking statements.
A discussion of factors that could cause actual results or events to vary is
contained in FPL Group's 2001 SEC Form 10-KA.
FPL Group, Inc.
Financial Summary
(in millions, except per share amounts)
Three Months Ended March 31,
2002 2001
Operating Revenues $1,843 $1,941
Operating Expenses
Fuel, purchased power and interchange 804 951
Other operations and maintenance 346 310
Depreciation and amortization 264 240
Taxes other than income taxes 173 169
Total operating expenses 1,587 1,670
Other Income (Deductions)
Interest charges and preferred stock dividends (84) (89)
Other - net 11 17
Total other deductions - net (73) (72)
Income Taxes 48 69
Net Income excluding after-tax effect of
nonrecurring items and net unrealized
mark-to-market gains (losses)
associated with non-managed hedges $135 $130
Goodwill impairment (222) --
Gain on settlement of IRS litigation 30 --
Net unrealized mark-to-market gains (losses)
associated with non-managed hedges 1 (1)
Merger-related expenses -- (19)
Net Income (Loss) $(56) $110
Earnings Per Share excluding nonrecurring items
and net unrealized mark-to-market gains
(losses) associated with non-managed hedges $0.80 $0.77
Earnings (loss) per share (assuming dilution) $(0.33) $0.65
Weighted-average shares outstanding
(assuming dilution) 169 169
Twelve Months Ended March 31,
2002 2001
Operating Revenues $8,377 $7,555
Operating Expenses
Fuel, purchased power and interchange 3,883 3,278
Other operations and maintenance 1,361 1,282
Depreciation and amortization 1,007 1,013
Taxes other than income taxes 714 641
Total operating expenses 6,965 6,214
Other Income (Deductions)
Interest charges and preferred stock dividends (334) (316)
Other - net 86 103
Total other deductions - net (248) (213)
Income Taxes 366 373
Net Income excluding after-tax effect of
nonrecurring items and net unrealized
mark-to-market gains (losses)
associated with non-managed hedges $798 $755
Goodwill impairment (222) --
Gain on settlement of IRS litigation 30 --
Net unrealized mark-to-market gains (losses)
associated with non-managed hedges 9 (1)
Merger-related expenses -- (60)
Net Income $615 $694
Earnings Per Share excluding nonrecurring
items and net unrealized mark-to-market
gains (losses) associated with non-managed
hedges $4.72 $4.45
Earnings per share (assuming dilution) $3.64 $4.09
Weighted-average shares outstanding
(assuming dilution) 169 170
FPL Group, Inc.
Earnings Per Share Summary
(assuming dilution)
Three Months Ended March 31,
2002 2001
Florida Power & Light Company $0.69 $0.67
FPL Energy, LLC 0.13 0.12
Corporate and other (0.02) (0.02)
Earnings Per Share excluding
nonrecurring items and
net unrealized mark-to-market
gains (losses) associated with
non-managed hedges $0.80 $0.77
Goodwill impairment (1.31) --
Gain on settlement of IRS litigation 0.18 --
Net unrealized mark-to-market gains (losses)
associated with non-managed hedges -- (0.01)
Merger-related expenses -- (0.11)
(1.13) (0.12)
Earnings (Loss) Per Share $(0.33) $0.65
Twelve Months Ended March 31,
2002 2001
Florida Power & Light Company $4.14 $3.84
FPL Energy, LLC 0.64 0.52
Corporate and other (0.06) 0.09
Earnings Per Share excluding nonrecurring
items and net unrealized mark-to-market
gains (losses) associated with non-managed
hedges $4.72 $4.45
Goodwill impairment (1.31) --
Gain on settlement of IRS litigation 0.18 --
Net unrealized mark-to-market gains (losses)
associated with non-managed hedges 0.05 (0.01)
Merger-related expenses -- (0.35)
(1.08) (0.36)
Earnings Per Share $3.64 $4.09
SOURCE Florida Power & Light Company
 back to top
Related links:
http://www.fpl.com
Photo Notes:http://www.newscom.com/cgi-bin/prnh/20010621/FPLLOGO
AP Archive: http://photoarchive.ap.org
PRN Photo Desk, 888-776-6555 or 212-782-2840
Company News On-Call:
http://www.prnewswire.com/gh/cnoc/comp/319763.html
CONTACT:
Corporate Communications Dept., FPL Group,
Inc., +1-305-552-3888
|
