Florida Public Utilities Announces Results for the Second Quarter of 2008
14 Agosto 2008 - 3:59PM
Marketwired
Florida Public Utilities (AMEX: FPU) reported net income for the
second quarter ended June 30, 2008 of $81,000 or $.01 per share,
compared with $410,000 or $.07 per share for the same period last
year. Net income for the six months ended June 30, 2008 was
$2,031,000 or $.33 per share, compared to the same period last year
of $2,208,000 or $.36 per share. Earnings for the second quarter
were impacted by a nonrecurring expense, as described below.
Total revenues increased $8,908,000 in the second quarter of
2008 compared to the same period in 2007, primarily due to the
higher fuel costs and associated taxes that are recovered directly
from customers. A final annual electric rate increase of
approximately $3,900,000 a year was approved in April 2008, with
the new rates beginning May 22, 2008. These revenues increased
overall profitability for the electric segment and management
expects they will continue to offset increased expenditures
including depreciation, storm readiness mandates and initiatives
and other expenses throughout 2008.
Usage per customer was down and management believes it is due to
conservation measures taken by the Company's gas and electric
customers as a result of recent fuel increases and the slowdown in
the economy. Although gross profit increased for the quarter,
earnings for the second quarter of 2008 were lower due to higher
operating expenses. Earnings for the second quarter and year to
date ending June 30, 2008 were lower than the prior year primarily
due to nonrecurring professional fees and expenses incurred in the
second quarter of 2008 of approximately $500,000, associated with
strategic development activity no longer ongoing. The impact to net
income for the effects of these nonrecurring expenses, is $304,000
after income taxes or $.05 per share for the quarter and year to
date ending June 30, 2008.
Depreciation expense also increased. New plant additions and
increased depreciation rates in our electric segment that became
effective January 1, 2008 caused depreciation expense to increase
by $175,000 in the second quarter of 2008 compared to the same
period in 2007. Due to the timing of final rate recovery in the
electric segment, the depreciation expense increase as a result of
increased electric depreciation rates was not fully recovered in
the first half of 2008. Management believes that the electric
depreciation increase for the remainder of 2008 will be fully
offset by the increase in the revenues as a result of this recent
electric final rate recovery.
The Company plans to file a request with the FPSC in the fourth
quarter of 2008 for a base rate increase in its natural gas
segment. This request will include recovery of increased expenses
and a return and some recovery of capital expenditures since the
Company's last rate proceeding in 2004. Finalization of this
request and approval, if any, of a natural gas base rate increase
would not occur until mid 2009. Possible interim rate relief for
partial recovery of the increased expenditures may occur in early
2009. Management believes these rate increases and the related
revenue increase will increase the overall profitability for the
natural gas segment beginning in mid 2009 and offset many increased
expenditures and lost revenues from the reduction in units sold due
to possible conservation measures taken by customers during
2008.
Florida Public Utilities is primarily in the business of
providing natural gas, electric and propane gas distribution
services throughout Florida.
This press release contains forward-looking statements including
those relating to the expectations of management that revenues for
the electric segment will continue to offset increased expenditures
including depreciation, storm readiness mandates and initiatives
and other expenses throughout 2008; that the electric depreciation
increase for the remainder of 2008 will be fully offset by the
increase in the revenues as a result of the recent electric final
rate recovery; and that requested rate increases, if granted, and
the related revenue increase will increase the overall
profitability for the natural gas segment beginning in mid 2009 and
offset many increased expenditures and lost revenues from the
reduction in units sold due to possible conservation measures taken
by customers during 2008. These statements involve certain risks
and uncertainties. Actual results may differ materially from what
is expressed in such forward-looking statements. Important factors
that could cause actual results to differ materially from those
expressed by the forward-looking statements include, but are not
limited to, those set forth in "Risk Factors" in our Form 10-K for
the year ended December 31, 2007.
Key operating results for the second quarter and year to date
2008 and 2007 are summarized below:
Florida Public Utilities
(Dollars in thousands except per share data)
Three Months Six Months
Ended June 30, Ended June 30,
2008 2007 2008 2007
---------- ---------- ---------- ----------
Total Revenues $ 41,376 $ 32,468 $ 86,406 $ 71,080
Net Income $ 81 $ 410 $ 2,031 $ 2,208
Earnings for Common Stock $ 74 $ 403 $ 2,017 $ 2,194
Earnings per Common
Share - basic &
diluted $ .01 $ .07 $ .33 $ .36
Average Shares Outstanding 6,078,446 6,030,928 6,075,005 6,027,833
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