Florida Public Utilities Announces Results for the First Quarter of 2009
May 14 2009 - 4:42PM
Marketwired
Florida Public Utilities Company (NYSE Amex: FPU) reported earnings
for the first quarter of 2009 of $0.12 per share compared with
$0.32 per share for the same period last year. Included in the
first quarter of 2009 was the impact of the noncash pension
curtailment cost, net of tax, of approximately $1.4 million or
$0.24 per share associated with the recently approved pension plan
freeze. In an effort to reduce anticipated pension costs and the
pension liability, the Company froze this plan effective December
31, 2009. Management expects future earnings to be positively
impacted by the pension plan freeze with reduced pension expenses
beginning in the second quarter of 2009. Net income for the first
quarter of 2009 was $744,000 compared with $1,950,000 for the same
period last year.
Finalization of our recent electric rate proceeding along with
colder weather in the first quarter of 2009 contributed
significantly to the increase in total revenues of $751,000 and
gross profit of $1.0 million compared to this same period in the
prior year. The Florida Public Service Commission (FPSC) approved
the final electric rate increase of approximately $3.9 million
annually effective May 22, 2008. An interim rate increase, set to
generate approximately $800,000 annually, was in effect from
November 22, 2007 until the final rates went into effect on May 22,
2008.
Operating expenses increased $3.0 million in the first quarter
of 2009 as compared to the same period in 2008 mainly due to
approximately $2.2 million in curtailment costs associated with our
pension plan freeze.
On May 5, 2009, the FPSC approved a final natural gas rate
increase initiated by the Company in the fourth quarter of 2008. An
annual interim increase of approximately $1.0 million was approved
beginning in March 2009. The final natural gas rate increase is
approximately $8.5 million in annual revenues with new rates to
begin on June 4, 2009. Interested parties may protest the action of
the Commission within 21 days after entry of the Commission's
order; if the ruling is protested, a full hearing will be required
within eight months. Revenues may be collected pending possible
refund upon final determination at the full hearing. These revenues
should provide an increase to the Company's overall profitability
for the natural gas segment and recovery of increased expenditures,
including depreciation and other expenses beginning in 2009.
This press release contains forward-looking statements including
those relating to the expectations of management regarding the
benefit of the recent natural gas rate increase approved by the
FPSC and the intended effects of the pension plan freeze. These
statements entail certain risks and uncertainties and actual
results may differ materially from what is expressed in such
forward-looking statements. Essential factors that could cause
actual results to differ materially from those expressed in these
forward-looking statements include, but are not limited to, those
set forth under "Risk Factors" in the Company's Form 10-K for the
year ended December 31, 2008.
Florida Public Utilities is primarily in the business of
providing natural gas, electric and propane gas distribution
services throughout Florida.
Key operating results for the first quarter 2009 and 2008 are
summarized below:
Florida Public Utilities
(Dollars in thousands except per share data) March 31,
2009 2008
------------- -------------
Total Revenues $ 45,781 $ 45,030
Net Income $ 744 $ 1,950
Earnings Applicable to Common Stock $ 737 $ 1,943
Earnings Per Common Share - basic and diluted $ .12 $ .32
Average Shares Outstanding 6,116,505 6,071,565
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