Florida Public Utilities Announces Results for the Third Quarter of 2008
12 Noviembre 2008 - 3:12PM
Marketwired
Florida Public Utilities (AMEX: FPU) reported net income for the
third quarter ended September 30, 2008 of $424,000 or $.07 per
share, compared with $355,000 or $.06 per share for the same period
last year. Net income for the nine months ended September 30, 2008
was $2,454,000 or $.40 per share, compared to the same period last
year of $2,563,000 or $.42 per share.
Total revenues increased $10,293,000 in the third 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.
We recorded additional 2006 natural gas over-earnings of
$135,000 which reduced revenues and gross profit in the third
quarter of 2008. The Florida Public Service Commission (FPSC)
approved finalization of the 2006 over-earnings on September 29,
2008 and ordered the Company to apply the over-earnings to fund its
natural gas storm reserve to help offset future storm costs.
In our regulated segments, usage per customer was down this
quarter and management believes it is due to conservation measures
taken by the Company's gas and electric customers as a result of
higher fuel costs and the slowdown in the general economy. Earnings
for the third quarter were higher than the prior year, but,
earnings for the year to date period ending September 30, 2008 were
lower than the prior year primarily due to nonrecurring
professional fees and expenses incurred in the second quarter of
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 $164,000 in the third 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 revenues as a result of the 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,
partial recovery of capital expenditures and a return on investment
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 likely 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.
This rate increase should offset many increased expenditures and
expected reduced 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 expected reduced 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 and our Form 10-Q for the quarter ended September 30,
2008.
Key operating results for the third quarter and year to date
2008 and 2007 are summarized below:
Florida Public Utilities
(Dollars in thousands except per share data)
Three Months Ended Nine Months Ended
September 30, September 30,
2008 2007 2008 2007
--------- --------- --------- ---------
Total Revenues $ 41,934 $ 31,641 $ 128,340 $ 102,721
Net Income $ 424 $ 355 $ 2,454 $ 2,563
Earnings for Common Stock $ 417 $ 348 $ 2,433 $ 2,542
Earnings per Common Share -
basic & diluted $ .07 $ .06 $ .40 $ .42
Average Shares Outstanding 6,098,034 6,049,644 6,082,681 6,035,103
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