FPL Group Announces Second Quarter Earnings Growth of 16 Percent.Business Editors JUNO BEACH This article is about the beach codenamed in WWII. For other uses, see Juno Beach (disambiguation) Juno Beach was one of the landing sites for Allied invaders on the coast of Normandy during D-Day. It was situated between Sword Beach and Gold Beach. , Fla.--(BUSINESS WIRE)--July 19, 2002 FPL FPL feline panleukopenia. Group, Inc. (NYSE NYSE See: New York Stock Exchange :FPL) today reported net income for the 2002 second quarter of $249 million, a 16 percent increase compared to $214 million a year ago. Earnings per share rose 14 percent to $1.45 from $1.27 in the same quarter in 2001. The results exclude the mark-to-market Mark-to-market Adjustment of the book value or collateral value of a security to reflect current market value. effect of non-managed hedges which was a $1 million after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. gain in this year's quarter and a $5 million after-tax gain in the 2001 quarter. "We are pleased with the performance of our businesses, particularly in this difficult energy market. Our increased earnings were largely driven by our integrated utility, Florida Florida, state, United States Florida (flôr`ĭdə, flŏr`–), state in the extreme SE United States. A long, low peninsula between the Atlantic Ocean (E) and the Gulf of Mexico (W), Florida is bordered by Georgia and Power & Light Company, which had increased revenues due to warmer than normal weather in Florida and stronger than forecasted customer growth," said Lew a. 1. Lukewarm; tepid. Hay, chairman and chief executive officer. "FPL Energy contributed increased earnings from additions to its wholesale generation portfolio, offset somewhat by mild weather and difficult market conditions." Despite the strong quarter, Mr. Hay reaffirmed that the company continues to expect earnings in 2002 to be $4.70 to $4.75, excluding non-recurring items, citing recent declines in wholesale energy markets and uncertainty of the impact of weather for the remainder of the year. Florida Power & Light Net income for FPL Group's principal subsidiary, Florida Power & Light Company, rose to $205 million from $182 million last year, while contributions to earnings per share rose to $1.20 from $1.08 a year ago. A 7.9 percent increase in retail kilowatt-hour kil·o·watt-hour n. Abbr. kWh or kW-hr A unit of electric energy equal to the work done by one kilowatt acting for one hour. sales, primarily due to weather, more than offset a $250 million annual rate reduction that became effective mid-April Noun 1. mid-April - the middle part of April period, period of time, time period - an amount of time; "a time period of 30 years"; "hastened the period of time of his recovery"; "Picasso's blue period" Apr, April - the month following March and preceding May . FPL customers experienced warmer than normal weather in April and May, compared with relatively mild weather in last year's second quarter, and the higher temperatures significantly contributed to a 5.8 percent usage per customer increase. During the quarter, FPL added 82,000 new customers, accounting for an additional 2.1 percent increase in kilowatt-hour sales. Also affecting the quarter results were higher operations and maintenance costs which were more than offset by lower depreciation expense. During the quarter, the Nuclear Regulatory Commission Nuclear Regulatory Commission (NRC), an independent U.S. government commission, created by the Energy Reorganization Act of 1974 and charged with licensing and regulating civilian use of nuclear energy to protect the public and the environment. issued operating licenses for FPL's two units at its Turkey Point Nuclear Power Plant which will add 20 years to the original license period. The original 40-year operating licenses were scheduled to expire expire /ex·pire/ (ek-spi´er) 1. to exhale. 2. to die. ex·pire v. 1. To breathe one's last breath; die. 2. To exhale. in 2012 and 2013. FPL Energy Excluding the mark-to-market effect of non-managed hedges, FPL Energy reported second quarter net income of $37 million compared to $33 million in the same quarter of 2001. Contributions to earnings per share rose to 21 cents from 19 cents. Additions to its power plant portfolio, improved plant performance and a favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. insurance settlement contributed to FPL Energy's earnings increase. During the quarter, FPL Energy had more than 1,000 additional megawatts in its portfolio compared to the beginning of the prior year quarter, including 843 megawatts of new generation from wind-powered turbines and a 171-megawatt gas-fired gas-fired adj → de gas gas-fired adj → au gaz gas-fired adj (heater etc) → Gas- peaking unit in Virginia Virginia, state, United States Virginia, state of the south-central United States. It is bordered by the Atlantic Ocean (E), North Carolina and Tennessee (S), Kentucky and West Virginia (W), and Maryland and the District of Columbia (N and NE). . Earnings were negatively impacted by lower contributions from FPL Energy's Maine Maine, ship Maine, U.S. battleship destroyed (Feb. 15, 1898) in Havana harbor by an explosion that killed 260 men. The incident helped precipitate the Spanish-American War (Apr., 1898). Commanded by Capt. Charles Sigsbee, the ship had been sent (Jan. assets, mild weather in Texas, as well as net unrealized losses Unrealized Loss A loss that results from holding onto an asset rather than cashing it in and officially taking the loss. Notes: Let's say you own a stock that is down 50%, but you haven't sold it to realize the loss yet. This is said to be an unrealized loss. from trading and managed hedge activities. Earlier this month, FPL Energy also announced it will build, own and operate the largest wind energy project in the eastern United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , the Mountaineer Wind Energy Center, in West Virginia West Virginia, E central state of the United States. It is bordered by Pennsylvania and Maryland (N), Virginia (E and S), and Kentucky and, across the Ohio R., Ohio (W). Facts and Figures Area, 24,181 sq mi (62,629 sq km). Pop. . The output of the 66-megawatt wind facility is covered by a long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. contract. Construction is expected to be complete by the end of the year. FPL Energy currently owns and operates more than 1,500 megawatts of wind-powered electric generation facilities. Corporate and Other Corporate and Other reported $7 million in net income or 4 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. in the second quarter compared to a negative $1 million the prior year. Higher interest expense at Corporate was more than offset by higher earnings at FPL FiberNet, an FPL Group subsidiary that provides fiber-optic See fiber optics. networks and related services in Florida. The higher earnings at FPL FiberNet were primarily from a sale of dark fiber to an existing customer. Outlook for 2002 "FPL Group continues to expect earnings per share for the full year 2002 to be in the $4.70 to $4.75 range," said Hay. "We are encouraged by continued strong customer growth at Florida Power & Light. Year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. the utility is ahead of its forecasted earnings growth, primarily due to weather. If weather conditions were normal in Florida for the remainder of the year, we should see earnings up slightly rather than flat as we earlier anticipated." "We currently expect FPL Energy's 2002 earnings growth to be 10 to 15 percent, down from our previous guidance of 15 to 20 percent. This modified mod·i·fy v. mod·i·fied, mod·i·fy·ing, mod·i·fies v.tr. 1. To change in form or character; alter. 2. outlook is due to recent declines in the wholesale energy market, including reduced liquidity and declining forward prices. In addition, although we have a good start on the development of new wind assets, it is a challenge to make up for the lost time when the production tax credit remained in limbo limbo In Roman Catholicism, a region between heaven and hell, the dwelling place of souls not condemned to punishment but deprived of the joy of existence with God in heaven. The concept probably developed in the Middle Ages. earlier this year," he said. "In addition, despite a tumultuous telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. market, we expect FPL FiberNet to be profitable this year," said Hay. 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 21 states, it is widely recognized as one of the country's premier power companies. Its principal subsidiary, Florida Power & Light Company, serves approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 4 million customer accounts in Florida. FPL Energy, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control , an FPL Group energy-generating subsidiary, is a leader in producing electricity from clean and renewable fuels Renewable fuels are alternative fuel sources such as ethanol, biodiesel (e.g. soy, vegetable oils, animal fats, or recycled restaurant greases) or hydrogen, in contrast to non-renewable fuels such as natural gas, LPG (propane). . Additional information is available on the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the at http://www.fplgroup.com, http://www.fpl.com and http://www.fplenergy.com. Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. Statement: Any statements made herein about future operating results or other future events are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. under the Safe Harbor Provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and 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-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. . NOTE: A Webcast of FPL Group's second quarter earnings conference call, scheduled at 9 a.m. ET on Friday Friday: see Sabbath; week. Friday young Indian rescued by Crusoe and kept as servant and companion. [Br. Lit.: Robinson Crusoe] See : Servant , July July: see month. 19, 2002, is available on FPL Group's Web site, http://www.fplgroup.com, by following the link provided. Note to Editors: High-resolution high-res·o·lu·tion adj. 1. Relating to an image that has fine detail. 2. a. Of or relating to an output device that produces images that contain a large number of dots per unit of area and are therefore sharp and logos and executive head shots are available for download To receive a file transmitted over a network. In any communications session, "download" means receive, and "upload" means send. The download/upload often implies a big/little scenario, in which data is being downloaded from the "big" server into the "little" user's computer. at http://www.fpl.com/news/contents/logos.shtml.
FPL Group, Inc.
Financial Summary
(in millions, except per share amounts)
Three Months Ended June 30,
---------------------------
2002 2001
-------- --------
Operating Revenues $ 2,248 $ 2,166
-------- --------
Operating Expenses
Fuel, purchased power and interchange 1,089 1,054
Other operations and maintenance 335 313
Depreciation and amortization 230 245
Taxes other than income taxes 185 174
-------- --------
Total operating expenses 1,839 1,786
-------- --------
Other Income (Deductions)
Interest charges and preferred
stock dividends (83) (86)
Other - net 45 26
-------- --------
Total other deductions - net (38) (60)
-------- --------
Income Taxes 122 106
-------- --------
Net Income excluding after-tax effect
of net unrealized mark-to-market gains
associated with non-managed hedges $ 249 $ 214
Net unrealized mark-to-market gains
associated with non-managed hedges 1 5
-------- --------
Net Income $ 250 $ 219
======== ========
Earnings Per Share excluding net
unrealized mark-to-market gains
associated with non-managed hedges $ 1.45 $ 1.27
Earnings per share (assuming dilution) $ 1.46 $ 1.30
Weighted-average shares outstanding
(assuming dilution) 171 169
Six Months Ended June 30,
---------------------------
2002 2001
-------- --------
Operating Revenues $ 4,092 $ 4,107
-------- --------
Operating Expenses
Fuel, purchased power and interchange 1,894 2,005
Other operations and maintenance 681 623
Depreciation and amortization 494 485
Taxes other than income taxes 358 344
-------- --------
Total operating expenses 3,427 3,457
-------- --------
Other Income (Deductions)
Interest charges and preferred
stock dividends (167) (174)
Other - net 57 41
-------- --------
Total other deductions - net (110) (133)
-------- --------
Income Taxes 171 174
Net Income excluding after-tax effect of
nonrecurring items and net unrealized
mark-to-market gains associated with
non-managed hedges $ 384 $ 343
Goodwill impairment (222) -
Gain on settlement of IRS litigation 30 -
Net unrealized mark-to-market gains
associated with non-managed hedges 2 5
Merger-related expenses - (19)
-------- --------
Net Income $ 194 $ 329
======== ========
Earnings Per Share excluding nonrecurring
items and net unrealized mark-to-market
gains associated with non-managed hedges $ 2.26 $ 2.04
Earnings per share (assuming dilution) $ 1.14 $ 1.95
Weighted-average shares outstanding
(assuming dilution) 170 169
Twelve Months Ended June 30,
---------------------------
2002 2001
-------- --------
Operating Revenues $ 8,460 $ 8,051
-------- --------
Operating Expenses
Fuel, purchased power and interchange 3,919 3,727
Other operations and maintenance 1,384 1,287
Depreciation and amortization 992 992
Taxes other than income taxes 723 671
-------- --------
Total operating expenses 7,018 6,677
-------- --------
Other Income (Deductions)
Interest charges and preferred
stock dividends (332) (333)
Other - net 105 99
-------- --------
Total other deductions - net (227) (234)
-------- --------
Income Taxes 382 377
-------- --------
Net Income excluding after-tax effect of
non-recurring items and net unrealized
mark-to-market gains associated with
non-managed hedges $ 833 $ 763
Goodwill impairment (222) -
Gain on settlement of IRS litigation 30 -
Net unrealized mark-to-market gains
associated with non-managed hedges 5 5
Merger-related expenses - (60)
-------- --------
Net Income $ 646 $ 708
======== ========
Earnings Per Share excluding nonrecurring
items and net unrealized mark-to-market
gains associated with non-managed hedges $ 4.91 $ 4.51
Earnings per share (assuming dilution) $ 3.81 $ 4.18
Weighted-average shares outstanding
(assuming dilution) 170 169
FPL Group, Inc.
Earning Per Share Summary
(assuming dilution)
Three Months Ended June 30,
---------------------------
2002 2001
-------- --------
Florida Power & Light Company $ 1.20 $ 1.08
FPL Energy, LLC 0.21 0.19
Corporate and other 0.04 -
-------- --------
Earnings Per Share excluding net
unrealized mark-to-market gains
associated with non-managed hedges $ 1.45 $ 1.27
Net unrealized mark-to-market gains
associated with non-managed hedges 0.01 0.03
-------- --------
Earnings Per Share $ 1.46 $ 1.30
======== ========
Six Months Ended June 30,
---------------------------
2002 2001
-------- --------
Florida Power & Light Company $ 1.90 $ 1.75
FPL Energy, LLC 0.35 0.31
Corporate and other 0.01 (0.02)
-------- --------
Earnings Per Share excluding nonrecurring
items and net unrealized mark-to-market
gains associated with non-managed hedges $ 2.26 $ 2.04
-------- --------
Goodwill impairment (1.31) -
Gain on settlement of IRS litigation 0.18 -
Net unrealized mark-to-market gains
associated with non-managed hedges 0.01 0.02
Merger-related expenses - (0.11)
-------- --------
(1.12) (0.09)
-------- --------
Earnings Per Share $ 1.14 $ 1.95
======== ========
Twelve Months Ended June 30,
---------------------------
2002 2001
-------- --------
Florida Power & Light Company $ 4.26 $ 3.91
FPL Energy, LLC 0.67 0.55
Corporate and other (0.02) 0.05
-------- --------
Earnings Per Share excluding nonrecurring
items and net unrealized mark-to-market
gains associated with non-managed hedges $ 4.91 $ 4.51
-------- --------
Goodwill impairment (1.31) -
Gain on settlement of IRS litigation 0.18 -
Net unrealized mark-to-market gains
associated with non-managed hedges 0.03 0.02
Merger-related expenses - (0.35)
-------- --------
(1.10) (0.33)
-------- --------
Earnings Per Share $ 3.81 $ 4.18
======== ========
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