FPL Group, Inc.
"Each of our businesses performed well during the quarter, contributing to the more than 8 percent growth in earnings per share," said James L. Broadhead, chairman and chief executive officer of FPL Group. "Florida Power & Light experienced continued customer growth, and FPL Energy added to its clean energy portfolio."
For the nine months ended September 30, 2000, FPL Group's net income was $639 million, or $3.75 per share. Earnings per share for the nine-month period increased by 10 percent, excluding non-recurring items in the 1999 period. Net income for the same period in 1999 was $585 million, or $3.41 per share.
Florida Power & Light
Florida Power & Light Company, FPL Group's principal subsidiary, contributed $275 million in net income, or $1.62 per share, to the parent company's 2000 third quarter earnings, up 5.2 percent from the prior year quarter. FPL's increased earnings came from an increase in the number of customers, as well as a decrease in depreciation.
FPL served more than 95,000 new customers compared to the prior year quarter. The customer growth of 2.5 percent and a slight increase in average customer usage drove energy sales up by nearly 3 percent.
FPL Energy
FPL Energy achieved $32 million in net income, or $0.19 per share for the quarter, up by more than 18 percent from the prior year quarter.
"FPL Energy's revenues increased due to expansion of the FPL Group subsidiary's generating portfolio, including a new gas-fired power plant and an existing wind-powered electrical generating farm," said Broadhead. The addition of more than 600 megawatts of capacity was somewhat offset by significantly milder weather in the Northeast where FPL Energy owns and operates a number of power plants.
FPL Energy began operation of unit 1 of its 1,000-megawatt combined cycle, gas-fired power plant in Texas in July. Unit 2 is expected to begin operation by year-end. Also in July, FPL Energy acquired an operational 104- megawatt wind farm located in Minnesota and announced that it would build a 160-megawatt wind generation project in Texas to supply electricity to TXU Electric & Gas beginning the third quarter of 2001. FPL Energy expects to have added 500 to 1,000 megawatts of wind generation to its portfolio by the end of 2001.
By year-end, FPL Energy expects to have increased its portfolio by nearly 40 percent since the beginning of the year.
Corporate & Other
FPL FiberNet, which leases fiber optic capacity in Florida, posted modest earnings in the third quarter. The subsidiary began operating as a wholly owned subsidiary of FPL Group in January. It operates a 1,600-mile fiber optic network throughout much of the state and is building intra-city networks in 15 metropolitan areas in Florida.
Other Highlights
Following are other highlights or events that occurred during the quarter and recent weeks:
* FPL Group and Entergy Corporation announced on July 31 that the two companies had agreed to combine in a merger of equals, forming the largest electric utility and the largest power producer in the United States. The companies' objective is to complete the transaction within 15 months of announcement date. (For more information about the merger, please visit http://www.fplgroup.com/.)
* During the third quarter, FPL Group repurchased approximately 1 million shares.
* In response to a Federal Energy Regulatory Commission order, Florida Power & Light joined two other major investor-owned utilities in Florida in proposing an independent, for-profit Regional Transmission Organization. Under the proposal that was submitted on October 16, FPL would contribute its transmission assets to the independent company and receive passive ownership in return, thereby retaining economic value of the assets for its shareholders.
FPL Group, with annual revenues of more than $6 billion, is one of the nation's largest providers of electricity-related services. Its principal subsidiary, Florida Power & Light Company, serves 3.8 million customer accounts in Florida. FPL Energy, LLC, FPL Group's independent power production subsidiary, is a leader in generating electricity from clean and renewable fuels. Information is available on the Internet at http://www.fplgroup.com/, http://www.fpl.com/, http://www.fplenergy.com/ and http://www.fplfibernet.com/.
FPL Group, Inc.
Financial Summary
(in millions, except per share amounts)
Three Months Ended September 30,
2000 1999
FPL kilowatt-hour sales 27,294 26,639
Operating Revenues $2,087 $1,892
Operating Expenses
Fuel, purchased power and interchange 845 693
Other operations and maintenance 314 309
Depreciation and amortization 237 245
Taxes other than income taxes 180 175
Total operating expenses 1,576 1,422
Other Income (Deductions)
Interest charges and preferred stock dividends (78) (62)
Other - net 46 39
Total other (deductions) - net (32) (23)
Income Taxes 165 156
Net Income $314 $291
Earnings per share:
Basic $1.85 $1.70
Assuming dilution $1.84 $1.70
Weighted-average shares outstanding:
Basic 170 171
Assuming dilution 171 171
Nine Months Ended September 30,
2000 1999
FPL kilowatt-hour sales 70,753 67,934
Operating Revenues $5,225 $4,918
Operating Expenses
Fuel, purchased power and interchange 1,992 1,788
Other operations and maintenance 907 910
Depreciation and amortization 763 768
Impairment loss on Maine assets --- 176
Taxes other than income taxes 469 462
Total operating expenses 4,131 4,104
Other Income (Deductions)
Interest charges and preferred stock dividends (212) (174)
Divestiture of cable investment --- 149
Other - net 80 79
Total other income (deductions) - net (132) 54
Income Taxes 323 291
Net Income $639 $577
Earnings per share (basic and
assuming dilution) $3.75 $3.36
Weighted-average shares outstanding:
Basic 170 171
Assuming dilution 171 172
FPL Group, Inc.
Financial Summary
(in millions, except per share amounts)
Twelve Months Ended September 30,
2000 1999
FPL kilowatt-hour sales 90,885 89,222
Operating Revenues $6,744 $6,549
Operating Expenses
Fuel, purchased power and interchange 2,569 2,379
Other operations and maintenance 1,319 1,248
Depreciation and amortization 1,034 1,142
Impairment loss on Maine assets --- 176
Taxes other than income taxes 621 603
Total operating expenses 5,543 5,548
Other Income (Deductions)
Interest charges and preferred stock dividends (275) (272)
Divestiture of cable investments 108 149
Other - net 81 65
Total other (deductions) - net (86) (58)
Income Taxes 355 273
Net Income $760 $670
Earnings per share:
Basic $4.46 $3.90
Assuming dilution $4.45 $3.90
Weighted-average shares outstanding:
Basic 170 172
Assuming dilution 171 172
FPL Group, Inc.
Earnings Per Share Summary
Three Months Ended September 30,
2000 1999
Earnings Per Share
Basic:
Florida Power & Light Company $1.62 $1.54
FPL Energy, LLC 0.19 0.16
Corporate and other 0.04 ---
Total $1.85 $1.70
Assuming dilution $1.84 $1.70
Nine Months Ended September 30,
2000 1999
Earnings Per Share
Basic:
Florida Power & Light Company $3.25 $3.10
FPL Energy, LLC 0.43 0.32
Corporate and other 0.07 (0.01)
Subtotal 3.75 3.41
Nonrecurring items:
Impairment loss on Maine assets --- (0.61)
Divestiture of cable investment --- 0.56
Total $3.75 $3.36
Assuming dilution $3.75 $3.36
Twelve Months Ended September 30,
2000 1999
Earnings Per Share
Basic:
Florida Power & Light Company $3.75 $3.60
FPL Energy, LLC 0.46 0.33
Corporate and other 0.11 0.02
Subtotal 4.32 3.95
Nonrecurring items:
Impairment loss on Maine assets --- (0.61)
Divestiture of cable investments 0.39 0.56
Litigation settlement (0.25) ---
Total $4.46 $3.90
Assuming dilution $4.45 $3.90
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SOURCE: Florida Power & Light Company
Contact: Media Relations, Duty Officer, 305-552-3888 or Investor
Relations, Lisa Kuzel, 561-694-6497 both of FPL Group, Inc.
Website: http://www.fpl.com/
Website: http://www.fplgroup.com/