Progress Energy reported first-quarter 2007 earnings of $1.08 per share, up from $0.18 per share in the prior year period. Ongoing earnings were $0.80 per share compared to $0.50 per share last year, driven by lower taxes and expenses. Core ongoing earnings excluding coal and synthetic fuels were $0.61 per share versus $0.46 per share. The company reaffirmed its 2007 ongoing earnings guidance of $2.70 to $2.90 per share and sees non-core earnings of $0.30 to $0.40 per share from synthetic fuels.
Resume
• Real GDP growth slowed down due to problems with access to electricity caused by the destruction of manoeuvrable electricity generation by Russian drones and missiles.
• Exports and imports continued growing due to better logistics through the Ukrainian sea corridor and road. Polish farmers and drivers stopped blocking borders at the end of April.
• In April, both the Tax and Customs Services over-executed the revenue plan. Moreover, the NBU transferred twice the planned profit to the budget.
• The European side approved the Ukraine Plan, which the government adopted to determine indicators for the Ukraine Facility. That approval will allow Ukraine to receive a EUR 1.9 bn loan from the EU in May. At the same time, the EU provided Ukraine with a EUR 1.5 bn loan in April, as the government fulfilled five indicators under the Ukraine Plan.
• The USA has finally approved an aid package for Ukraine, which includes USD 7.8 bn of budget support; however, the conditions and timing of the assistance are still unknown.
• As in March, annual consumer inflation amounted to 3.2% yoy in April.
• At the April monetary policy meeting, the NBU again reduced the key policy rate from 14.5% to 13.5% per annum.
• Over the past four weeks, the hryvnia exchange rate has stabilized in the UAH 39-40 per USD range.
If you are looking for a pi coin investor. Then look no further because I have the right one he is a pi vendor (he buy and resell to whales in China). I met him on a crypto conference and ever since I and my friends have sold more than 10k pi coins to him And he bought all and still want more. I will drop his telegram handle below just send him a message.
@Pi_vendor_247
how to sell pi coins on Bitmart crypto exchangeDOT TECH
Yes. Pi network coins can be exchanged but not on bitmart exchange. Because pi network is still in the enclosed mainnet. The only way pioneers are able to trade pi coins is by reselling the pi coins to pi verified merchants.
A verified merchant is someone who buys pi network coins and resell it to exchanges looking forward to hold till mainnet launch.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
The secret way to sell pi coins effortlessly.DOT TECH
Well as we all know pi isn't launched yet. But you can still sell your pi coins effortlessly because some whales in China are interested in holding massive pi coins. And they are willing to pay good money for it. If you are interested in selling I will leave a contact for you. Just telegram this number below. I sold about 3000 pi coins to him and he paid me immediately.
Telegram: @Pi_vendor_247
how to sell pi coins in all Africa Countries.DOT TECH
Yes. You can sell your pi network for other cryptocurrencies like Bitcoin, usdt , Ethereum and other currencies And this is done easily with the help from a pi merchant.
What is a pi merchant ?
Since pi is not launched yet in any exchange. The only way you can sell right now is through merchants.
A verified Pi merchant is someone who buys pi network coins from miners and resell them to investors looking forward to hold massive quantities of pi coins before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
what is the future of Pi Network currency.DOT TECH
The future of the Pi cryptocurrency is uncertain, and its success will depend on several factors. Pi is a relatively new cryptocurrency that aims to be user-friendly and accessible to a wide audience. Here are a few key considerations for its future:
Message: @Pi_vendor_247 on telegram if u want to sell PI COINS.
1. Mainnet Launch: As of my last knowledge update in January 2022, Pi was still in the testnet phase. Its success will depend on a successful transition to a mainnet, where actual transactions can take place.
2. User Adoption: Pi's success will be closely tied to user adoption. The more users who join the network and actively participate, the stronger the ecosystem can become.
3. Utility and Use Cases: For a cryptocurrency to thrive, it must offer utility and practical use cases. The Pi team has talked about various applications, including peer-to-peer transactions, smart contracts, and more. The development and implementation of these features will be essential.
4. Regulatory Environment: The regulatory environment for cryptocurrencies is evolving globally. How Pi navigates and complies with regulations in various jurisdictions will significantly impact its future.
5. Technology Development: The Pi network must continue to develop and improve its technology, security, and scalability to compete with established cryptocurrencies.
6. Community Engagement: The Pi community plays a critical role in its future. Engaged users can help build trust and grow the network.
7. Monetization and Sustainability: The Pi team's monetization strategy, such as fees, partnerships, or other revenue sources, will affect its long-term sustainability.
It's essential to approach Pi or any new cryptocurrency with caution and conduct due diligence. Cryptocurrency investments involve risks, and potential rewards can be uncertain. The success and future of Pi will depend on the collective efforts of its team, community, and the broader cryptocurrency market dynamics. It's advisable to stay updated on Pi's development and follow any updates from the official Pi Network website or announcements from the team.
how to sell pi coins in South Korea profitably.DOT TECH
Yes. You can sell your pi network coins in South Korea or any other country, by finding a verified pi merchant
What is a verified pi merchant?
Since pi network is not launched yet on any exchange, the only way you can sell pi coins is by selling to a verified pi merchant, and this is because pi network is not launched yet on any exchange and no pre-sale or ico offerings Is done on pi.
Since there is no pre-sale, the only way exchanges can get pi is by buying from miners. So a pi merchant facilitates these transactions by acting as a bridge for both transactions.
How can i find a pi vendor/merchant?
Well for those who haven't traded with a pi merchant or who don't already have one. I will leave the telegram id of my personal pi merchant who i trade pi with.
Tele gram: @Pi_vendor_247
#pi #sell #nigeria #pinetwork #picoins #sellpi #Nigerian #tradepi #pinetworkcoins #sellmypi
USDA Loans in California: A Comprehensive Overview.pptxmarketing367770
USDA Loans in California: A Comprehensive Overview
If you're dreaming of owning a home in California's rural or suburban areas, a USDA loan might be the perfect solution. The U.S. Department of Agriculture (USDA) offers these loans to help low-to-moderate-income individuals and families achieve homeownership.
Key Features of USDA Loans:
Zero Down Payment: USDA loans require no down payment, making homeownership more accessible.
Competitive Interest Rates: These loans often come with lower interest rates compared to conventional loans.
Flexible Credit Requirements: USDA loans have more lenient credit score requirements, helping those with less-than-perfect credit.
Guaranteed Loan Program: The USDA guarantees a portion of the loan, reducing risk for lenders and expanding borrowing options.
Eligibility Criteria:
Location: The property must be located in a USDA-designated rural or suburban area. Many areas in California qualify.
Income Limits: Applicants must meet income guidelines, which vary by region and household size.
Primary Residence: The home must be used as the borrower's primary residence.
Application Process:
Find a USDA-Approved Lender: Not all lenders offer USDA loans, so it's essential to choose one approved by the USDA.
Pre-Qualification: Determine your eligibility and the amount you can borrow.
Property Search: Look for properties in eligible rural or suburban areas.
Loan Application: Submit your application, including financial and personal information.
Processing and Approval: The lender and USDA will review your application. If approved, you can proceed to closing.
USDA loans are an excellent option for those looking to buy a home in California's rural and suburban areas. With no down payment and flexible requirements, these loans make homeownership more attainable for many families. Explore your eligibility today and take the first step toward owning your dream home.
Introduction to Indian Financial System ()Avanish Goel
The financial system of a country is an important tool for economic development of the country, as it helps in creation of wealth by linking savings with investments.
It facilitates the flow of funds form the households (savers) to business firms (investors) to aid in wealth creation and development of both the parties
Latino Buying Power - May 2024 Presentation for Latino CaucusDanay Escanaverino
Unlock the potential of Latino Buying Power with this in-depth SlideShare presentation. Explore how the Latino consumer market is transforming the American economy, driven by their significant buying power, entrepreneurial contributions, and growing influence across various sectors.
**Key Sections Covered:**
1. **Economic Impact:** Understand the profound economic impact of Latino consumers on the U.S. economy. Discover how their increasing purchasing power is fueling growth in key industries and contributing to national economic prosperity.
2. **Buying Power:** Dive into detailed analyses of Latino buying power, including its growth trends, key drivers, and projections for the future. Learn how this influential group’s spending habits are shaping market dynamics and creating opportunities for businesses.
3. **Entrepreneurial Contributions:** Explore the entrepreneurial spirit within the Latino community. Examine how Latino-owned businesses are thriving and contributing to job creation, innovation, and economic diversification.
4. **Workforce Statistics:** Gain insights into the role of Latino workers in the American labor market. Review statistics on employment rates, occupational distribution, and the economic contributions of Latino professionals across various industries.
5. **Media Consumption:** Understand the media consumption habits of Latino audiences. Discover their preferences for digital platforms, television, radio, and social media. Learn how these consumption patterns are influencing advertising strategies and media content.
6. **Education:** Examine the educational achievements and challenges within the Latino community. Review statistics on enrollment, graduation rates, and fields of study. Understand the implications of education on economic mobility and workforce readiness.
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This SlideShare provides valuable insights for marketers, business owners, policymakers, and anyone interested in the economic influence of the Latino community. By understanding the various facets of Latino buying power, you can effectively engage with this dynamic and growing market segment.
Equip yourself with the knowledge to leverage Latino buying power, tap into their entrepreneurial spirit, and connect with their unique cultural and consumer preferences. Drive your business success by embracing the economic potential of Latino consumers.
**Keywords:** Latino buying power, economic impact, entrepreneurial contributions, workforce statistics, media consumption, education, home ownership, Latino market, Hispanic buying power, Latino purchasing power.
how to sell pi coins effectively (from 50 - 100k pi)DOT TECH
Anywhere in the world, including Africa, America, and Europe, you can sell Pi Network Coins online and receive cash through online payment options.
Pi has not yet been launched on any exchange because we are currently using the confined Mainnet. The planned launch date for Pi is June 28, 2026.
Reselling to investors who want to hold until the mainnet launch in 2026 is currently the sole way to sell.
Consequently, right now. All you need to do is select the right pi network provider.
Who is a pi merchant?
An individual who buys coins from miners on the pi network and resells them to investors hoping to hang onto them until the mainnet is launched is known as a pi merchant.
debuts.
I'll provide you the Telegram username
@Pi_vendor_247
how to sell pi coins effectively (from 50 - 100k pi)
progress energy q1 07
1. Progress Energy announces 2007 first-quarter results; sees benefit from
restructuring
Highlights:
♦ Reports first-quarter GAAP earnings of $1.08 per share, compared to $0.18 per share for the
same period last year due primarily to the impact of discontinued operations
♦ Reports core ongoing earnings of $0.61 per share, compared to $0.46 per share for the same
period last year due primarily to lower income taxes and reduced interest expense
♦ Reaffirms 2007 core ongoing earnings guidance of $2.70 to $2.90 per share
RALEIGH, N.C. (May 7, 2007) – Progress Energy [NYSE: PGN] announced first-quarter net income
of $275 million, or $1.08 per share, compared with net income of $45 million or $0.18 per share, for
the same period last year. The favorable year-over-year variance in GAAP net income is due primarily
to the impact of discontinued Competitive Commercial Operations (CCO) including unrealized mark-
to-market gains in 2007 and a goodwill impairment recorded in 2006. First-quarter ongoing earnings
were $204 million or $0.80 per share, compared to $126 million or $0.50 per share, last year. The
favorable year-over-year variance in ongoing earnings is due primarily to synthetic fuel operating
results, lower income taxes, growth and usage and reduced interest expense. (See the discussion later
in this release for a reconciliation of GAAP earnings per share to ongoing earnings per share.)
“We are off to a good start in 2007,” said Bob McGehee, chairman and chief executive officer of
Progress Energy. “Our utilities are performing well operationally and financially. We are also in the
final stages of divesting our Progress Ventures business, which will allow us to concentrate our capital
and our attention on serving the energy needs of our high growth service territories.
“Our primary focus now is on meeting the energy needs of our customers in a balanced manner.
Conservation, demand side management, renewables and new generation all have a role to play. You
will see us being active in all of these areas over the next several years. Our revenue growth and strong
balance sheet will support the substantial investments we will be making.”
Core ongoing earnings, which exclude the ongoing earnings from the company’s coal and synthetic
fuel operations, were $0.61 per share, compared with $0.46 per share last year. The company benefited
from lower income taxes, growth and usage and lower interest expense as a result of reducing holding
company debt.
Non-core ongoing earnings were $0.19 per share, compared with earnings of $0.04 per share last year,
primarily due to increased synthetic fuel sales and unrealized mark-to-market gains on oil hedge
2. instruments to protect synthetic fuels earnings. Also impacting non-core earnings was the recording of
an 18 percent reserve of 2007 synthetic fuel tax credits as a result of high oil prices.
2007 ONGOING EARNINGS GUIDANCE
“Based on our solid first-quarter business results, we are confident in reaffirming our 2007 core
ongoing earnings guidance of $2.70 to $2.90 per share,” McGehee said. The 2007 core ongoing
earnings guidance excludes any impacts from the CVO mark-to-market adjustment, potential
impairments, coal and synthetic fuel operations and discontinued operations of other businesses.
Progress Energy is not able to provide a corresponding GAAP equivalent for the 2007 earnings
guidance figures due to the uncertain nature and amount of these adjustments.
“Non-core ongoing earnings associated primarily with synthetic fuels are expected to be between $0.30
and $0.40 per share, with oil prices and production levels the primary determining factors. 2007 will be
the final year of synthetic fuels production,” McGehee said. “The company expects to have
approximately $800 million deferred tax credits when the program concludes at the end of this year.”
RECENT DEVELOPMENTS
• Announced the sale of the remainder of our Progress Ventures’ CCO assets (the company
expects to close the two transactions this summer).
• Legislation enacted in South Carolina supportive of new baseload construction and
environmental cost recovery.
• Set new winter peak-demand record at Progress Energy Carolinas of 12,133 MW, surpassing
the previous winter record of 12,004 MW set in 2005.
• Achieved top-quartile ranking among energy providers in the latest business customer
satisfaction survey from J.D. Power & Associates.
• Completed installation of scrubber at Roxboro Unit 2 plant and Selective Catalytic Reduction
system at Asheville plant.
• Completed nuclear refueling outage at Brunswick Unit 2.
• Awarded supplier diversity award by DiversityBusiness.com for being one of the top 50
corporate and organizational buyers of diversity products in the U.S. in the technology,
manufacturing, food service and professional services sectors.
• Awarded innovative energy-efficiency program by Southeastern Electric Exchange for the
company’s work in the Neighborhood Energy Saver program.
• Launched Community Energy Saving Program in Raleigh, N.C. aimed at improving energy
efficiency and reducing energy costs for customers.
• Announced agreement to purchase power generated from hog waste by the North Carolina Pork
Council as part of a pilot project to determine whether producing electricity from hog waste is
economical and feasible.
Press releases regarding various announcements are available on the company’s Web site at:
www.progress-energy.com/aboutus/news.
2
3. FIRST-QUARTER 2007 BUSINESS HIGHLIGHTS
Below are the first-quarter 2007 highlights for the company’s business units. See the reconciliation
table on page S-1 of the supplemental data for a reconciliation of GAAP earnings per share to ongoing
earnings per share. Also see the attached supplemental data schedules for additional information on
Progress Energy Carolinas and Progress Energy Florida electric revenues, energy sales, energy supply,
weather impacts and other information.
Progress Energy Carolinas
• Reported ongoing earnings per share of $0.48, compared with $0.35 for the same period last
year; GAAP earnings per share of $0.48, compared with $0.34 for the same period last year.
• Reported primary ongoing earnings per share favorability in Q1-2007 over Q1-2006 of:
– $0.05 lower environmental remediation expenses
– $0.04 higher growth and usage
– $0.03 lower income taxes
– $0.02 favorable weather
• Reported primary ongoing earnings per share unfavorability in Q1-2007 over Q1-2006 of:
– $(0.01) lower wholesale margins as a result of lower gains on forward sales of excess
generation.
• Added 28,000 customers (net) during the last 12 months.
Progress Energy Florida
• Reported ongoing earnings per share of $0.24, compared with $0.21 for the same period last
year; GAAP earnings per share of $0.24, compared with $0.21 for the same period last year.
• Reported primary ongoing earnings per share favorability in Q1-2007 over Q1-2006 of:
– $0.02 increased wholesale sales
– $0.02 lower income taxes
• Reported primary ongoing earnings per share unfavorability in Q1-2007 over Q1-2006 of:
– $(0.01) increased depreciation expense
• Added 31,000 customers (net) during the last 12 months.
Corporate and Other Businesses (includes primarily Holding Company Debt)
• Reported ongoing after-tax expenses of $0.11 per share compared with ongoing after-tax
expenses of $0.10 per share for the same period last year; GAAP after-tax expenses of $0.07
per share, compared with after-tax expense of $0.18 per share for the same period last year.
• Reported primary ongoing earnings per share favorability in Q1-2007 over Q1-2006 of:
– $0.04 lower interest expense primarily as a result of reducing holding company debt in
2006
– $0.01 other (net)
• Reported primary ongoing earnings per share unfavorability in Q1-2007 over Q1-2006 of:
– $(0.06) prior-year gain on the sale of Level 3 stock received as part of the sale of Progress
Telecom
Non-Core Operations (Coal and Synthetic Fuels)
• Reported ongoing earnings per share of $0.19, compared with ongoing earnings of $0.04 per
share for the same period last year; GAAP earnings of $0.21 per share, compared with a loss of
$0.03 per share for the same period last year.
3
4. • Reported primary ongoing earnings per share favorability in Q1-2007 over Q1-2006 of:
– $0.07 increased synthetic fuels sales of 2.1 million tons, up from 1.2 million tons in 2006
– $0.07 unrealized mark-to-market gains on oil derivative contracts
– $0.01 other (net)
• Recorded an 18 percent reserve against the value of the tax credits associated with 2007
production due to credit phase out related to estimated oil prices.
SALE OF CEREDO SYNTHETIC FUEL INTEREST
In March 2007 Progress Energy disposed of its 100 percent ownership interest in Ceredo Synfuel LLC,
the largest of the company’s four Earthco synthetic fuel plants. The company will continue to operate
on behalf of the buyer. The company expects to receive proceeds of approximately $65 million in
2007. The company does not currently plan to sell the remaining three Earthco facilities. As a result of
this transaction, the company’s synthetic fuel operations are expected to be cash flow neutral excluding
the impact of the oil hedge entered into earlier this year.
ONGOING EARNINGS ADJUSTMENTS
Progress Energy’s management uses ongoing earnings per share to evaluate the operations of the
company and to establish goals for management and employees. Management believes this
presentation is appropriate and enables investors to more accurately compare the company’s ongoing
financial performance over the periods presented. Ongoing earnings as presented here may not be
comparable to similarly titled measures used by other companies. The following table provides a
reconciliation of ongoing earnings per share to reported GAAP earnings per share.
Progress Energy, Inc.
Reconciliation of Ongoing Earnings per Share to Reported GAAP Earnings per Share
Three months ended March 31
2007 2006*
Core Non-core Total Core Non-core Total
Ongoing earnings per share $0.61 $0.19 $0.80 $0.46 $0.04 $0.50
Intraperiod tax allocation 0.03 – 0.03 (0.06) – (0.06)
CVO mark-to-market 0.01 – 0.01 (0.10) – (0.10)
Discontinued operations 0.22 (0.01) 0.21 (0.09) (0.07) (0.16)
Derivative contracts mark-to-market – 0.04 0.04 – – –
Impairment – (0.01) (0.01) – – –
Reported GAAP earnings per share $0.87 $0.21 $1.08 $0.21 $(0.03) $0.18
Shares outstanding (millions) 254 249
* Previously reported 2006 results have been restated to reflect discontinued operations. See page S-3 for further detail.
Reconciling adjustments from GAAP earnings to ongoing earnings as they relate to the current year
and quarter and information included in the Supplemental Data schedules are as follows:
4
5. Intraperiod Tax Allocation
Generally accepted accounting principles require companies to apply an effective tax rate to interim
periods that is consistent with a company’s estimated annual tax rate. The tax credits generated from
synthetic fuel operations reduce Progress Energy’s overall effective tax rate. The company’s synthetic
fuel sales are not subject to seasonal fluctuations to the same extent as the electric utility earnings. The
company projects the effective tax rate for the year and then, based upon projected operating income
for each quarter, raises or lowers the tax expense recorded in that quarter to reflect the projected tax
rate. On the other hand, operating losses incurred to produce the tax credits are included in the current
quarter. The resulting tax adjustment increased earnings per share by $0.03 for the quarter. An
immaterial effective tax rate adjustment was also recorded for Progress Energy Carolinas and Progress
Energy Florida this quarter. Because this adjustment varies by quarter but has no impact on annual
earnings, management believes this adjustment is not representative of the company’s ongoing
quarterly earnings.
Contingent Value Obligation (CVO) Mark-to-Market
In connection with the acquisition of Florida Progress Corporation, Progress Energy issued 98.6
million CVOs. Each CVO represents the right of the holder to receive contingent payments based on
after-tax cash flows above certain levels of four synthetic fuel facilities purchased by subsidiaries of
Florida Progress Corporation in October 1999. The CVOs are debt instruments and, under GAAP, are
valued at market value. Unrealized gains and losses from changes in market value are recognized in
earnings each quarter. The CVO mark-to-market increased earnings per share by $0.01 for the quarter.
Progress Energy is unable to predict the changes in the market value of the CVOs and, since these
changes do not affect the company’s underlying obligation, management does not consider the
adjustment to be a component of ongoing earnings.
Derivative Contracts Mark-to-Market
On March 30, 2007, we disposed of our 100 percent ownership interest in Ceredo to an unrelated third-
party buyer. We will continue to consolidate Ceredo in accordance with Financial Accounting
Standards Board Interpretation No. 46R, “Consolidation of Variable Interest Entities – An
Interpretation of ARB No. 51” (FIN 46R), but we anticipate recording a 100 percent minority interest
so there will be no net earnings impact. Future operating results and tax credits generated by Ceredo
will be excluded from our Coal and Synthetic Fuels segment. A portion of the derivative contracts
entered into in January 2007 to hedge economically a portion of our 2007 synthetic fuels cash flow
exposure to the risk of rising oil prices were entered into by Ceredo and contributed an unrealized
after-tax mark-to-market gain of $0.04 per share for the three months ended March 31, 2007. Future
mark-to-market changes on the Ceredo portion of the derivative contracts will also be excluded from
our Coal and Synthetic Fuels segment. Due to the Ceredo disposal, management does not believe the
mark-to-market adjustment recorded for the three months ended March 31, 2007 is representative of
the ongoing operations of the company.
Impairment Related to the Write-Off of State Net Operating Losses
We evaluated previously recorded state net operating losses for potential impairment during the first
quarter of 2007. Based upon the results of this evaluation, we impaired state net operating losses by
5
6. recording a valuation allowance of $0.01 per share in the Coal and Synthetic Fuels segment.
Management does not believe this impairment is representative of the ongoing earnings of the
company.
Coal Mine Discontinued Operations
On Nov. 14, 2005, our board of directors approved a plan to divest of our coal mining operations. As a
result, we have classified the coal mining operations as discontinued operations in the accompanying
financial statements for all periods presented. On April 6, 2006, we signed an agreement to sell certain
net assets of the coal mining business for $23 million and the sale closed on May 1, 2006. The
remaining coal mining operations are expected to be sold in 2007. Discontinued coal mining
operations decreased earnings per share by $0.01 for the quarter.
Due to our commitment to dispose of these assets, management does not view this activity as
representative of the ongoing operations of the company.
Winchester Energy (Natural Gas Operations) Discontinued Operations
On Oct. 2, 2006, we completed the sale of Winchester Energy. Discontinued Winchester Energy
operations decreased earnings by $0.01 per share for the quarter.
Due to the sale, the operations of Winchester Energy are reported as discontinued operations in the
accompanying financial statements; therefore, management does not believe this activity is
representative of the ongoing operations of the company.
CCO Discontinued Operations
On March 12, 2007, the company entered into agreements to sell nearly all of Progress Ventures, Inc.’s
Competitive Commercial Operations physical and commercial assets, which include approximately
1,900 megawatts of power generation facilities in Georgia, as well as forward gas and power contracts,
gas transportation, storage and structured power and other contracts, including the full requirements
contracts with 16 Georgia Electric Membership Cooperatives. We expect to complete the disposition
plan in 2007. As a result of the disposition plan, we recorded an after-tax estimated loss on the sale of
$226 million in December 2006. Based on the terms of the final agreement, during the quarter ended
March 31, 2007, we reversed $16 million after tax of the loss recorded in 2006. Discontinued CCO
operations increased earnings per share by $0.23 for the quarter.
Due to our commitment to dispose of these assets, management does not view this activity as
representative of the ongoing operations of the company.
****
This earnings announcement, as well as a package of detailed financial information, is available on the
company’s Web site at www.progress-energy.com.
Progress Energy’s conference call with the investment community will be held May 7, 2007, at
2 p.m. ET (11 a.m. PT). Investors, media and the public may listen to the conference call by dialing
6
7. (913) 981-4905, confirmation code 7045636. If you encounter problems, please contact Amy Finelli at
(919) 546-2233. A playback of the call will be available from 5 p.m. ET May 7 through midnight on
May 21, 2007. To listen to the recorded call, dial (719) 457-0820 and enter confirmation code
7045636.
A webcast of the live conference call will be available at www.progress-energy.com. The webcast will
be available in Windows Media format. The webcast will be archived on the site for at least 30 days
following the call for those unable to listen in real time.
Members of the media are invited to listen to the conference call and then participate in a media-only
question and answer session with Peter Scott starting at 3 p.m. ET. To participate in this session, please
dial (913) 981-5507, confirmation code 8010943.
Progress Energy, headquartered in Raleigh, N.C., is a Fortune 250 diversified energy company with
more than 23,000 megawatts of generation capacity and $10 billion in annual revenues. The
company's holdings include two electric utilities serving approximately 3.1 million customers in North
Carolina, South Carolina and Florida. Progress Energy's nonregulated operations include energy
marketing. Progress Energy is the 2006 recipient of the Edison Electric Institute's Edison Award, the
industry's highest honor, in recognition of its operational excellence. The company also is the first
utility to receive the prestigious J.D. Power and Associates Founder's Award for dedication,
commitment and sustained improvement in customer service. For more information about Progress
Energy, visit the company's Web site at www.progress-energy.com.
Caution Regarding Forward-Looking Information:
This release contains forward-looking statements within the meaning of the safe harbor provisions of
the Private Securities Litigation Reform Act of 1995. The matters discussed in this document involve
estimates, projections, goals, forecasts, assumptions, risks and uncertainties that could cause actual
results or outcomes to differ materially from those expressed in the forward-looking statements.
Any forward-looking statement is based on information current as of the date of this document and
speaks only as of the date on which such statement is made, and we undertake no obligation to update
any forward-looking statement or statements to reflect events or circumstances after the date on which
such statement is made.
Examples of factors that you should consider with respect to any forward-looking statements made
throughout this document include, but are not limited to, the following: the impact of fluid and complex
laws and regulations, including those relating to the environment and the Energy Policy Act of 2005;
the financial resources and capital needed to comply with environmental laws and our ability to
recover eligible costs under cost-recovery clauses; weather conditions that directly influence the
production, delivery and demand for electricity; the ability to recover in a timely manner, if at all,
costs associated with future significant weather events through the regulatory process; recurring
seasonal fluctuations in demand for electricity; fluctuations in the price of energy commodities and
purchased power and our ability to recover such costs through the regulatory process; economic
fluctuations and the corresponding impact on our commercial and industrial customers; the ability of
our subsidiaries to pay upstream dividends or distributions to the Parent; the impact on our facilities
and businesses from a terrorist attack; the inherent risks associated with the operation of nuclear
7
8. facilities, including environmental, health, regulatory and financial risks; the anticipated future need
for additional baseload generation and associated transmission facilities in our regulated service
territories and the accompanying regulatory and financial risks; the ability to successfully access
capital markets on favorable terms; the Progress Registrants’ ability to maintain their current credit
ratings and the impact on the Progress Registrants’ financial condition and ability to meet their cash
and other financial obligations in the event their credit ratings are downgraded; the impact that
increases in leverage may have on each of the Progress Registrants; the impact of derivative contracts
used in the normal course of business; the investment performance of our pension and benefit plans;
the Progress Registrants’ ability to control costs, including pension and benefit expense, and achieve
our cost-management targets for 2008; our ability to generate and utilize tax credits from the
production and sale of qualifying synthetic fuels under Internal Revenue Code Section 29/45K (Section
29/45K); the impact that future crude oil prices may have on our earnings from our coal-based solid
synthetic fuels businesses; the execution of our announced transactions to dispose of our Competitive
Commercial Operations (CCO) business and additional resulting charges to income, which could
exceed $300 million after-tax; our ability to manage the risks involved with the CCO business,
including dependence on third parties and related counterparty risks, until completion of our
divestiture transactions; the outcome of any ongoing or future litigation or similar disputes and the
impact of any such outcome or related settlements; and unanticipated changes in operating expenses
and capital expenditures. Many of these risks similarly impact our nonreporting subsidiaries.
These and other risk factors are detailed from time to time in our filings with the United States
Securities and Exchange Commission (SEC). All such factors are difficult to predict, contain
uncertainties that may materially affect actual results and may be beyond our control. New factors
emerge from time to time, and it is not possible for management to predict all such factors, nor can it
assess the effect of each such factor on us.
###
Contacts: Corporate Communications – (919) 546-6189 or toll-free (877) 641-NEWS (6397)
8
9. PROGRESS ENERGY, INC.
CONSOLIDATED INTERIM FINANCIAL STATEMENTS
March 31, 2007
UNAUDITED CONSOLIDATED STATEMENTS of INCOME
Three months ended
March 31
(in millions except per share data) 2006
2007
Operating revenues
Electric $1,985
$2,068
Diversified business 238
266
Total operating revenues 2,223
2,334
Operating expenses
Utility
Fuel used in electric generation 690
736
Purchased power 229
221
Operation and maintenance 416
420
Depreciation and amortization 228
219
Taxes other than on income 119
124
Other (2)
(1)
Diversified business
Cost of sales 256
244
Depreciation and amortization 9
2
Gain on the sales of assets (4)
(16)
Other 14
18
Total operating expenses 1,955
1,967
268
Operating income 367
Other income (expense)
Interest income 17
8
Other, net (2)
9
Total other income 15
17
Interest charges
Net interest charges 165
144
Allowance for borrowed funds used during construction (2)
(3)
Total interest charges, net 163
141
120
Income from continuing operations before income tax and minority interest 243
29
Income tax expense 19
91
Income from continuing operations before minority interest 224
6
Minority interest in subsidiaries’ income, net of tax 4
85
Income from continuing operations 220
(40)
Discontinued operations, net of tax 55
$45
Net income $275
249
Average common shares outstanding – basic 254
Basic earnings per common share
Income from continuing operations $0.34
$0.87
Discontinued operations, net of tax (0.16)
0.21
Net income $0.18
$1.08
Diluted earnings per common share
Income from continuing operations $0.34
$0.87
Discontinued operations, net of tax (0.16)
0.21
Net income $0.18
$1.08
$0.605
Dividends declared per common share $0.610
This financial information should be read in conjunction with the Company’s Annual Report to shareholders. These
statements have been prepared for the purpose of providing information concerning the Company and not in connection with
any sale, offer for sale, or solicitation of an offer to buy any securities.
10. PROGRESS ENERGY, INC.
UNAUDITED CONSOLIDATED BALANCE SHEETS
(in millions) December 31, 2006
March 31, 2007
ASSETS
Utility plant
Utility plant in service $23,743
$23,865
Accumulated depreciation (10,064)
(10,152)
Utility plant in service, net 13,679
13,713
Held for future use 10
10
Construction work in progress 1,289
1,526
Nuclear fuel, net of amortization 267
300
15,245
Total utility plant, net 15,549
Current assets
Cash and cash equivalents 265
133
Short-term investments 71
1
Receivables, net 930
960
Inventory 969
1,013
Deferred fuel cost 196
189
Deferred income taxes 159
17
Assets of discontinued operations 887
895
Derivative assets 1
112
Prepayments and other current assets 107
68
3,585
Total current assets 3,388
Deferred debits and other assets
Regulatory assets 1,231
1,104
Nuclear decommissioning trust funds 1,287
1,307
Diversified business property, net 31
30
Miscellaneous other property and investments 456
456
Goodwill 3,655
3,655
Other assets and deferred debits 211
230
6,871
Total deferred debits and other assets 6,782
$25,701
Total assets $25,719
CAPITALIZATION AND LIABILITIES
Common stock equity
Common stock without par value, 500 million shares authorized, 258 and 256 million shares
issued and outstanding, respectively $5,791
$5,882
Unearned ESOP shares (2 million shares) (50)
(42)
Accumulated other comprehensive loss (49)
(50)
Retained earnings 2,594
2,711
8,286
Total common stock equity 8,501
93
Preferred stock of subsidiaries – not subject to mandatory redemption 93
10
Minority interest 54
271
Long-term debt, affiliate 271
8,564
Long-term debt, net 8,512
17,224
Total capitalization 17,431
Current liabilities
Current portion of long-term debt 324
404
Short-term debt 117 –
Accounts payable 712
652
Interest accrued 171
139
Dividends declared 156
157
Customer deposits 227
236
Liabilities of discontinued operations 189
179
Income taxes accrued 284
44
Other current liabilities 755
692
2,818
Total current liabilities 2,620
Deferred credits and other liabilities
Noncurrent income tax liabilities 306
270
Accumulated deferred investment tax credits 151
148
Regulatory liabilities 2,543
2,584
Asset retirement obligations 1,306
1,321
Accrued pension and other benefits 957
964
Other liabilities and deferred credits 396
381
5,659
Total deferred credits and other liabilities 5,668
Commitments and contingencies
$25,701
Total capitalization and liabilities $25,719
11. PROGRESS ENERGY, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions)
Three months ended March 31 2006
2007
Operating activities
Net income $45
$275
Adjustments to reconcile net income to net cash provided by operating activities:
Discontinued operations, net of tax 40
(55)
Depreciation and amortization 267
250
Deferred income taxes 34
106
Investment tax credit (3)
(3)
Tax levelization 16
(8)
Deferred fuel cost 134
108
Other adjustments to net income 75
12
Cash provided (used) by changes in operating assets and liabilities:
Receivables 123
59
Inventory (60)
(36)
Prepayments and other current assets (15)
(74)
Accounts payable (78)
(51)
Other current liabilities (172)
(290)
Regulatory assets and liabilities (2)
8
Other liabilities and deferred credits 22
(11)
Other assets and deferred debits 16
(21)
442
Net cash provided by operating activities 269
Investing activities
Gross utility property additions (304)
(469)
Nuclear fuel additions (52)
(61)
Proceeds from sales of discontinued operations and other assets, net of cash divested 103
30
Purchases of available-for-sale securities and other investments (538)
(192)
Proceeds from sales of available-for-sale securities and other investments 522
252
Other investing activities (11)
(1)
(280)
Net cash used by investing activities (441)
Financing activities
Issuance of common stock 28
65
Proceeds from issuance of long-term debt, net 397
–
Net increase in short-term debt 79
117
Retirement of long-term debt (801)
–
Dividends paid on common stock (151)
(155)
Other financing activities (60)
(33)
(508)
Net cash used by financing activities (6)
Cash provided (used) by discontinued operations
Operating activities 54
47
Investing activities (50)
(1)
Financing activities –
–
(342)
Net decrease in cash and cash equivalents (132)
605
Cash and cash equivalents at beginning of period 265
$263
Cash and cash equivalents at end of the period $133
12. Progress Energy, Inc.
SUPPLEMENTAL DATA Page S-1
Unaudited
Progress Energy, Inc.
Earnings Variances
First Quarter 2007 vs. 2006
Regulated Utilities
Former Corporate Coal &
Core
Progress and Other Synthetic
Business Consolidated
($ per share) Carolinas Florida Ventures Businesses Fuels
2006 GAAP earnings 0.34 0.21 (0.16) (0.18) 0.21 (0.03) 0.18
Intraperiod tax allocation 0.01 0.05 0.06 A 0.06
Discontinued operations 0.16 (0.07) 0.09 B 0.07 B 0.16
CVO mark-to-market 0.10 0.10 C 0.10
2006 ongoing earnings 0.35 0.21 - (0.10) 0.46 0.04 0.50
Weather - retail 0.02 0.02 0.02
Other retail - growth and usage 0.04 0.04 0.04
Other retail margin 0.01 0.01 0.02 0.02
Wholesale (0.01) 0.02 0.01 D 0.01
O&M 0.02 0.02 E 0.02
Other 0.01 0.01 0.01
Depreciation & Amortization 0.02 (0.01) 0.01 F 0.01
Interest charges 0.04 0.04 G 0.04
Net diversified business (0.05) (0.05) H 0.15 H 0.10
Taxes 0.03 0.02 0.05 I 0.05
Share dilution (0.01) (0.01) (0.02) (0.02)
2007 ongoing earnings 0.48 0.24 - (0.11) 0.61 0.19 0.80
Intraperiod tax allocation 0.03 0.03 A 0.03
Discontinued operations 0.22 0.22 B (0.01) B 0.21
CVO mark-to-market 0.01 0.01 C 0.01
Derivative contracts mark-to-market - 0.04 J 0.04
Impairment - (0.01) K (0.01)
2007 GAAP earnings 0.48 0.24 0.22 (0.07) 0.87 0.21 1.08
Corporate and Other Businesses includes other small subsidiaries, Holding Company interest expense, CVO mark-to-market,
intraperiod tax allocations, purchase accounting transactions and corporate eliminations.
A - Intraperiod income tax allocation impact, related to cyclical nature of energy demand/earnings and timing of synthetic fuel tax credits.
B - Discontinued operations from sales of 1) CCO operations 2) Gas operations 3) Progress Telecom 4) Coal Mining businesses 5) Dixie Fuels and other fuels
businesses.
C - Corporate and Other - Impact of change in market value of outstanding CVO's.
D - Carolinas - Unfavorable primarily due to lower gains on forward sales of excess generation.
Florida - Favorable primarily due to increased capacity under contract with a major customer.
E - Carolinas - Favorable primarily due to the recording of additional estimated environmental remediation expenses in 2006.
F - Carolinas - Favorable primarily due to a decrease in Clean Smokestacks Act amortization partially offset by the impact of increases in depreciable base.
Florida - Unfavorable primarily due to the impact of increases in depreciable base.
G - Corporate and Other - Favorable primarily due to the $1.7 billion reduction in holding company debt during 2006 partially offset by a decrease in the interest
allocated to discontinued operations.
H - Corporate and Other - Unfavorable primarily due to the 2006 gain on the sale of Level 3 stock received as part of the Progress Telecom sale.
Coal and Synthetic Fuels - Favorable primarily due to increased synthetic fuels production, unrealized mark-to-market gains on derivative contracts, change in
estimated tax credit reserve from 47% in 2006 to 18% in 2007, and lower royalty expense and lower depreciation expense due to the second quarter 2006 impairment
of synthetic fuel assets.
I - Carolinas - Favorable primarily due to changes relating to prior year federal and state income tax returns.
Florida - Favorable primarily due to the impact of an increase in AFUDC equity and current year miscellaneous tax adjustments.
J - Coal and Synthetic Fuels - Unrealized mark-to-market gains on derivative contracts entered into by Ceredo Synfuel LLC.
K - Coal and Synthetic Fuels - Impairment represents the write-off of state net operating loss carry forwards.
S-1
13. Progress Energy, Inc.
SUPPLEMENTAL DATA - Page S-2
Unaudited
Three Months Ended Three Months Ended Percentage Change
March 31, 2007 March 31, 2006 From March 31, 2006
Total Progress Total Progress
Utility Statistics Carolinas Florida Energy Carolinas Florida Energy Carolinas Florida
Operating Revenues (in millions)
Retail
Residential $424 $491 $915 $376 $506 $882 12.8 % (3.0) %
Commercial 254 247 501 226 245 471 12.4 0.8
Industrial 165 74 239 163 83 246 1.2 (10.8)
Governmental 22 67 89 20 66 86 10.0 1.5
Provision for retail revenue sharing - - - - 1 1 - -
Total Retail $865 $879 $1,744 $785 $901 $1,686 10.2 (2.4)
Wholesale 194 80 274 192 69 261 1.0 15.9
Unbilled (25) 8 (17) (27) 1 (26) - -
Miscellaneous revenue 23 44 67 28 36 64 (17.9) 22.2
Total Electric $1,057 $1,011 $2,068 $978 $1,007 $1,985 8.1 % 0.4 %
Energy Sales (millions of kWh)
Retail
Residential 4,740 4,155 8,895 4,417 4,311 8,728 7.3 % (3.6) %
Commercial 3,245 2,624 5,869 3,052 2,550 5,602 6.3 2.9
Industrial 2,821 895 3,716 2,933 1,006 3,939 (3.8) (11.0)
Governmental 327 748 1,075 320 721 1,041 2.2 3.7
Total Retail 11,133 8,422 19,555 10,722 8,588 19,310 3.8 (1.9)
Wholesale 3,956 1,170 5,126 3,958 1,007 4,965 (0.1) 16.2
Unbilled (343) 190 (153) (378) (150) (528) - -
Total Electric 14,746 9,782 24,528 14,302 9,445 23,747 3.1 % 3.6 %
Energy Supply (millions of kWh)
Generated - steam 7,572 4,564 12,136 7,510 4,352 11,862
nuclear 6,124 1,632 7,756 6,119 1,350 7,469
combustion turbines/combined cycle 477 1,787 2,264 230 1,778 2,008
hydro 213 - 213 189 - 189
Purchased 911 2,315 3,226 900 2,470 3,370
Total Energy Supply (Company Share) 15,297 10,298 25,595 14,948 9,950 24,898
Impact of Weather to Normal on Retail Sales
Heating Degree Days - Actual 1,579 293 1,534 289 2.9 % 1.4 %
- Normal 1,637 360 1,672 360
Cooling Degree Days - Actual 29 212 15 211 93.3 % 0.5 %
- Normal 12 207 11 207
Impact of retail weather to normal on EPS ($0.01) ($0.02) ($0.03) ($0.03) ($0.03) ($0.06)
S-2
14. Progress Energy, Inc.
SUPPLEMENTAL DATA - Page S-3
Unaudited
Financial Statistics
March 31, 2007 March 31, 2006
9.8 % 8.2 %
Return on average common stock equity (12 months ended)
Book value per common share $33.31 $32.05
Capitalization
% %
Common stock equity 47.4 42.2
% %
Preferred stock of subsidiary and minority interest 0.8 0.8
% %
Total debt 51.8 57.0
% %
Total Capitalization 100.0 100.0
2006 Impact of Discontinued Operations
Three months ended Three months ended
(Earnings per share) March 31, 2007 March 31, 2006
$0.07
Progress Telecom $–
Coal Mine Operations (0.01) (0.07)
Rowan and DeSoto Plants - (0.01)
Gas Operations (0.01) 0.09
CCO Operations 0.23 (0.24)
Total $0.21 ($0.16)
2006 Ongoing Earnings - Restated
Corporate and
Other Core Coal &
Businesses Business Synthetic Fuels
(Earnings per share) Carolinas Florida Consolidated
Q1 $0.35 $0.21 ($0.10) $0.46 $0.04 $0.50
Q2 0.29 0.34 (0.14) 0.49 (0.14) 0.35
Q3 0.75 0.52 (0.22) 1.05 0.03 1.08
Q4 0.42 0.24 (0.06) 0.60 0.05 0.65
2006 $1.81 $1.31 ($0.52) $2.60 ($0.02) $2.58
S-3