TAMPA, Fla., Jan. 22, 2003 — TECO Energy Inc. Wednesday reported that its full-year 2002 net income from continuing operations rose 9 percent to $298.2 million, up from $273.8 million in 2001.
Fourth quarter net income from continuing operations decreased 41 percent to
$34.6 million, down from $59.1 million in 2001. Full-year 2002 revenues rose
8 percent to almost $2.7 billion, up from $2.5 billion in 2001.
Full-year 2002 earnings per share from continuing operations were $1.95, down 4 percent, compared with 2001 earnings per share of $2.04. Earnings per share from continuing operations for the quarter were $0.20, compared to $0.43 in 2001. The number of common shares outstanding was 14 percent and 23 percent higher for the year and the quarter, respectively, than for the same periods in 2001.
Results from continuing operations for the year and the fourth quarter include a $34-million pre-tax ($20.9 million after-tax) charge related to a debt refinancing transaction executed by TECO Energy in the fourth quarter, and a $5.8-million after-tax charge for an asset valuation adjustment for TECO Power Services’ (TPS) proposed sale of generating facilities in the Czech Republic.
Absent these charges, net income from continuing operations rose 19 percent to $324.9 million for the year, and earnings per share rose 4 percent to $2.12 per share for the year. Results from continuing operations exclude the results from TECO Coalbed Methane, which was sold in December and is reported as discontinued operations.
Total net income and earnings, including continuing operations and recently discontinued operations were $330.1 million and $2.15 per share, respectively. Total non-GAAP net income and earnings, excluding the $20.9 million debt refinancing and $5.8 million asset valuation charges and the $7.7 million gain on the sale of TECO Coalbed Methane, were $349.1 million and $2.28 per share, respectively.
TECO Energy Chairman and CEO Robert Fagan said, “TECO Energy had another good year for net income in 2002, despite a soft economy and tough energy markets. Except for the two unusual items, we delivered the double-digit net income growth we projected earlier in the year. While earnings per share were diluted by the new shares issued during the year, the share issuance was important to strengthen the balance sheet and improve our cash position.
“We will have our challenges in 2003, but we are making good progress on our $900 million cash generation plan, which we announced in September to fund the completion of the construction programs at TPS and Tampa Electric without raising incremental debt. We have already accounted for more than 70 percent of the targeted $900 million of cash generation from capital expenditure reductions, non-core asset sales and monetization of Section 29 tax credits, and other financial transactions or asset sales. I expect our Florida utilities to have a good year in 2003, contributing strong earnings and cash flow, thanks to continuing growth in the state’s economy. TECO Energy’s mix of profitable regulated and unregulated businesses helps mitigate the impact of the weak energy markets that TPS is experiencing,” Fagan added.
TECO Energy is planning to provide updates on its cash generation plan and 2003 outlook by early March.
Additional financial information related to the company’s results through December 31, 2002, including unaudited financial statements, segment information, and electric and gas volumes is available at the Investor Relations section of TECO Energy’s web site at www.tecoenergy.com.
TECO Energy is a diversified energy-related holding company headquartered in Tampa. Its principal businesses are Tampa Electric, Peoples Gas System, TECO Power Services, TECO Transport, TECO Coal and TECO Solutions.