EX-99 3 0003.txt 8K EXH 99-2 ANALYST RPT
Vectren Corporation 3 Months 6 Months Highlights Ended June 30 Ended June 30 (Unaudited) 2000 1999 2000 1999 Basic and Diluted Earnings Per Average Share: Utility Group $ 0.05 $ 0.13 $ 0.26 $ 0.73 Non-regulated Group Communications (0.01) - 0.08 - Energy Services 0.05 0.03 0.08 0.08 Financial Group 0.04 0.02 0.07 0.03 Other Non-regulated 0.01 0.01 0.01 0.01 Total Non-regulated 0.09 0.06 0.24 0.12 Total $ 0.14 * $ 0.19 $ 0.50 $ 0.85 EPS Before Merger Costs $ 0.23 $ 0.19 $ 0.91 $ 0.85 Summary of Impact of Merger Costs: (millions, except per share data) Total Merger Costs $ 3.2 $ - $ 30.4 $ - Depreciation 3.3 - 3.3 - Income Taxes (0.7) - (8.6) - Total $ 5.8 $ - $ 25.1 $ - EPS Impact of Merger Costs $ 0.09 $ - $ 0.41 $ - Utility Group $ 0.09 $ - $ 0.40 $ - Non-regulated Group $ - $ - $ 0.01 $ - Dividends Paid (per common share, 12 months) $ 0.96 $ 0.92 Annualized Dividend $ 0.97 $ 0.93 Dividend Yield (at close) 5.6% N/A Dividend Payout Ratio 85.7% 64.3% Dividend to Book Value 8.4% 8.1% Return on Average Shareholder Equity 9.8% 12.7% Book Value Per Share $11.58 $11.48 Market to Book Value (at close) 149% N/A Common Stock Prices (VVC - NYSE) High (during second quarter) $21.38 N/A Low (during second quarter) $15.75 N/A Close $17.25 N/A Price/Earnings Ratio (trailing) 15.4 N/A Percent Internally Generated Funds - Utility Group 54% 81% Ratio of Earnings to Fixed Charges - SEC Method Consolidated 3.1 4.1 Utility Group 2.9 4.1 Credit Ratings: Indiana Gas AA- / Aa2 AA- / Aa2 SIGECO AA / Aa2 AA / Aa2 * Diluted earnings per share for the 3 months ended June 30, 2000 total $.13 and for the 12 months ended June 30, 1999 total $1.42. Basic and diluted earnings per share for all other periods presented are equal.
Vectren Corporation 12 Months Highlights Ended June 30 (Unaudited) 2000 1999 Basic and Diluted Earnings Per Average Share: Utility Group $ 0.76 $1.20 Non-regulated Group Communications 0.08 - Energy Services 0.09 0.11 Financial Group 0.14 0.06 Other Non-regulated 0.05 0.06 Total Non-regulated 0.36 0.23 Total $ 1.12 $1.43 EPS Before Merger Costs $ 1.53 $1.43 Summary of Impact of Merger Costs: (millions, except per share data) Total Merger Costs $ 30.4 $ - Depreciation 3.3 - Income Taxes (8.6) - Total $ 25.1 $ - EPS Impact of Merger Costs $ 0.41 $ - Utility Group $ 0.40 $ - Non-regulated Group $ 0.01 $ - Dividends Paid (per common share, 12 months) Annualized Dividend Dividend Yield (at close) Dividend Payout Ratio Dividend to Book Value Return on Average Shareholder Equity Book Value Per Share Market to Book Value (at close) Common Stock Prices (VVC - NYSE) High (during second quarter) Low (during second quarter) Close Price/Earnings Ratio (trailing) Percent Internally Generated Funds - Utility Group Ratio of Earnings to Fixed Charges - SEC Method Consolidated Utility Group Credit Ratings: Indiana Gas SIGECO * Diluted earnings per share for the 3 months ended June 30, 2000 total $.13 and for the 12 months ended June 30, 1999 total $1.42. Basic and diluted earnings per share for all other periods presented are equal.
3 Months 6 Months SELECTED UTILITY Ended June 30 Ended June 30 OPERATING STATISTICS (Unaudited) 2000 1999 2000 1999 WEATHER AS A PERCENT OF NORMAL: Heating Degree Days 92% 70% 84% 88% Cooling Degree Days 89% 87% 87% 85% GAS MARGIN (Thousands): Operating Revenues 100,485 82,647 301,330 273,829 Cost of Gas 55,898 38,617 174,425 142,116 Margin 44,587 44,030 126,905 131,713 ELECTRIC MARGIN (Thousands): Operating Revenues 78,289 73,802 151,279 144,789 Cost of Fuel & Purchased Power 26,422 23,943 48,101 44,073 Unconsolidated Margin 51,867 49,859 103,178 100,716 Consolidating Adjustment 1,720 1,149 3,349 2,390 Consolidated Margin 53,587 51,008 106,527 103,106 GAS SOLD & TRANSPORTED (MDth): Residential 6,541 5,802 30,231 32,279 Commercial 2,673 2,972 12,202 13,090 Contract 18,266 17,516 41,591 40,168 27,480 26,290 84,024 85,537 ELECTRICITY SOLD (MWh): Residential 279,646 290,970 595,680 636,827 Commercial 324,278 321,378 614,895 613,248 Industrial 638,418 625,354 1,236,818 1,175,652 - - - - Miscellaneous Sales 3,964 3,951 9,234 9,427 Total Retail 1,246,306 1,241,653 2,456,627 2,435,154 Municipals and Jasper 169,029 164,745 327,003 307,928 Alcoa Generating Corporation 79,980 144,661 102,248 262,294 Other Wholesale 212,320 177,541 571,326 415,204 1,707,635 1,728,600 3,457,204 3,420,580 GAS OPERATING REVENUES (Thousands): Residential 56,430 49,424 196,251 187,719 Commercial 18,550 18,359 69,491 67,252 Contract 10,422 10,408 25,531 25,689 Miscellaneous Revenue 15,083 4,456 10,057 (6,831) 100,485 82,647 301,330 273,829 ELECTRIC OPERATING REVENUES (Thousands): Residential 19,533 20,330 39,768 41,896 Commercial 17,399 17,437 33,280 33,843 Industrial 20,996 20,591 40,365 38,427 Miscellaneous Revenue 2,934 1,740 4,343 2,318 Total Retail 60,862 60,098 117,756 116,484 Municipals and Jasper 5,903 5,880 11,255 10,935 Alcoa Generating Corporation 2,013 3,344 2,565 5,883 Other Wholesale 9,511 4,480 19,703 11,487 78,289 73,802 151,279 144,789 AVERAGE GAS CUSTOMERS: Residential 565,803 553,817 567,739 554,169 Commercial 56,726 56,391 56,988 56,198 Contract 1,248 1,255 1,253 1,252 623,778 611,463 625,980 611,619 AVERAGE ELECTRIC CUSTOMERS: Residential 110,702 108,706 110,496 108,565 Commercial 16,687 15,901 16,570 15,887 Industrial 167 175 169 175 127,556 24,782 127,235 124,627
12 Months SELECTED UTILITY Ended June 30 OPERATING STATISTICS (Unaudited) 2000 1999 WEATHER AS A PERCENT OF NORMAL: Heating Degree Days 84% 86% Cooling Degree Days 94% 105% GAS MARGIN (Thousands): Operating Revenues 527,074 487,185 Cost of Gas 298,738 258,718 Margin 228,336 228,467 ELECTRIC MARGIN (Thousands): Operating Revenues 314,059 299,901 Cost of Fuel & Purchased Power 96,974 92,380 Unconsolidated Margin 217,085 207,521 Consolidating Adjustment 6,809 4,588 Consolidated Margin 223,894 212,109 GAS SOLD & TRANSPORTED (MDth): Residential 49,662 50,869 Commercial 19,639 20,773 Contract 79,897 76,223 149,198 147,865 ELECTRICITY SOLD (MWh): Residential 1,330,433 1,344,135 Commercial 1,305,655 1,260,279 Industrial 2,477,156 2,313,602 - - Miscellaneous Sales 19,174 19,831 Total Retail 5,132,418 4,937,847 Municipals and Jasper 678,530 636,764 Alcoa Generating Corporation 154,401 522,280 Other Wholesale 1,011,990 851,785 6,977,339 6,948,676 GAS OPERATING REVENUES (Thousands): Residential 335,523 319,642 Commercial 114,044 112,379 Contract 48,148 49,692 Miscellaneous Revenue 29,359 5,472 527,074 487,185 ELECTRIC OPERATING REVENUES (Thousands): Residential 88,673 89,213 Commercial 69,343 68,001 Industrial 81,469 76,066 Miscellaneous Revenue 9,167 6,705 Total Retail 248,652 239,985 Municipals and Jasper 23,864 22,782 Alcoa Generating Corporation 4,747 12,140 Other Wholesale 36,796 24,994 314,059 299,901 AVERAGE GAS CUSTOMERS: Residential 560,432 547,861 Commercial 56,365 55,518 Contract 1,248 1,251 618,045 604,630 AVERAGE ELECTRIC CUSTOMERS: Residential 109,956 108,115 Commercial 16,338 15,868 Industrial 171 175 126,465 124,158
VECTREN CORPORATION AND SUBSIDIARY COMPANIES CONSOLIDATED STATEMENTS OF INCOME (Thousands, except for share amounts) (Unaudited) Three Months Six Months Ended June 30 Ended June 30 2000 1999 2000 1999 OPERATING REVENUE: Gas utility $ 100,485 $ 82,647 $ 301,330 $ 273,829 Electric utility 78,289 73,802 151,279 144,789 Energy services and other 84,703 50,593 170,312 109,457 Total operating 263,477 207,042 622,921 528,075 revenues OPERATING EXPENSES: Cost of gas sold 55,898 38,617 174,425 142,116 Fuel for electric 15,543 15,730 32,116 31,358 generation Purchased electric energy 9,159 7,063 12,636 10,325 Cost of energy services and other 80,240 48,464 161,962 104,634 Other operating 50,173 45,940 96,599 90,773 Merger costs 3,261 - 30,442 - Depreciation and amortization 26,031 21,794 48,693 43,019 Taxes other than income taxes 7,456 6,494 16,056 14,777 Total operating expenses 247,761 184,102 572,929 437,002 OPERATING INCOME 15,716 22,940 49,992 91,073 OTHER INCOME Equity in earnings of unconsolidated nvestments 2,074 2,313 14,551 6,539 Other - net 7,801 1,146 10,219 3,006 Total other income 9,875 3,459 24,770 9,545 INTEREST EXPENSE 12,319 9,827 24,592 19,997 INCOME BEFORE PREFERRED DIVIDENDS AND INCOME TAXES 13,272 16,572 50,170 80,621 PREFERRED DIVIDEND REQUIREMENTS OF SUBSIDIARY 266 269 535 539 INCOME BEFORE INCOME TAXES 13,006 16,303 49,635 80,082 INCOME TAXES 4,390 4,538 18,656 27,514 NET INCOME BEFORE MINORITY INTEREST 8,616 11,765 30,979 52,568 MINORITY INTEREST IN SUBSIDIARY 343 211 581 291 NET INCOME $ 8,273 $ 11,554 $ 30,398 $ 52,277 AVERAGE COMMON SHARES OUTSTANDING 61,227 61,287 61,266 61,309 DILUTED COMMON SHARES OUTSTANDING 61,317 61,425 61,338 61,461 BASIC EARNINGS PER AVERAGE SHARE OF COMMON STOCK $ 0.14 $ 0.19 $ 0.50 $ 0.85 DILUTED EARNINGS PER AVERAGE SHARE OF COMMON STOCK $ 0.13 $ 0.19 $ 0.50 $ 0.85
VECTREN CORPORATION AND SUBSIDIARY COMPANIES CONSOLIDATED STATEMENTS OF INCOME (Thousands, except for share amounts) (Unaudited) Twelve Months Ended June 30 2000 1999 OPERATING REVENUE: Gas utility $ 527,074 $ 487,185 Electric utility 314,059 299,901 Energy services and other 322,130 222,543 Total operating revenues 1,163,263 1,009,629 OPERATING EXPENSES: Cost of gas sold 298,738 258,717 Fuel for electric generation 67,063 64,110 Purchased electric energy 23,102 23,681 Cost of energy services and other 304,918 212,397 Other operating 195,448 182,750 Merger costs 30,442 - Depreciation and amortization 92,672 84,133 Taxes other than income taxes 31,189 27,182 Total operating expenses 1,043,572 852,970 OPERATING INCOME 119,691 156,659 OTHER INCOME Equity in earnings of unconsolidated investments 19,654 9,882 Other - net 16,115 6,553 Total other income 35,769 16,435 INTEREST EXPENSE 47,457 40,076 INCOME BEFORE PREFERRED DIVIDENDS AND INCOME TAXES 108,003 133,018 PREFERRED DIVIDEND REQUIREMENTS OF SUBSIDIARY 1,074 1,085 INCOME BEFORE INCOME TAXES 106,929 131,933 INCOME TAXES 36,850 43,780 NET INCOME BEFORE MINORITY INTEREST 70,079 88,153 MINORITY INTEREST IN SUBSIDIARY 1,210 562 NET INCOME $ 68,869 $ 87,591 AVERAGE COMMON SHARES OUTSTANDING 61,281 61,424 DILUTED COMMON SHARES OUTSTANDING 61,362 61,598 BASIC EARNINGS PER AVERAGE SHARE OF COMMON STOCK $ 1.12 $ 1.43 DILUTED EARNINGS PER AVERAGE SHARE OF COMMON STOCK $ 1.12 $ 1.42
VECTREN CORPORATION AND SUBSIDIARY COMPANIES CONSOLIDATED BALANCE SHEETS (Thousands - Unaudited) June 30 December 31 ASSETS 2000 1999 1999 Current Assets: Cash and cash equivalents $ 18,727 $ 11,307 $ 17,351 Temporary investments 1,048 583 903 Accounts receivable, less reserves of $5,469, $3,890 and $3,949 110,533 79,288 123,612 Accrued unbilled revenues 20,347 19,599 55,370 Inventories 34,118 46,367 58,863 Prepaid gas delivery service 20,969 11,645 20,937 Prepayments and other current assets 25,758 25,737 28,676 Total current assets 231,500 194,526 305,712 Utility Plant: Original cost 2,398,714 2,318,750 2,367,831 Less accumulated depreciation and amortization 1,059,500 1,007,135 1,031,498 Net utility plant 1,339,214 1,311,615 1,336,333 Other Investments: Investments in leveraged leases 89,822 35,990 85,737 Investments in partnerships and other corporations 76,819 76,273 74,644 Notes receivable 61,736 20,955 32,271 Other 1,019 4,384 996 Total other investments 229,396 137,602 193,648 Nonutility property, net of accumulated depreciation 86,496 60,329 64,474 Other Assets: Deferred charges 29,347 15,787 23,623 Unamortized debt 15,740 16,236 15,843 Demand side management programs 25,845 24,995 25,298 Other 6,950 10,324 15,536 Total other assets 77,882 67,342 80,300 TOTAL ASSETS $1,964,488 $1,771,414 $1,980,467
VECTREN CORPORATION AND SUBSIDIARY COMPANIES CONSOLIDATED BALANCE SHEETS (Thousands - Unaudited) June 30 December 31 LIABILITIES AND SHAREHOLDERS' 2000 1999 1999 EQUITY Current Liabilities: Current portion of adjustable rate bonds subject to tender $ 53,700 $ 53,700 $ 53,700 Current maturities of long-term debt and other obligations 258 10,814 776 Short-term borrowings 218,012 138,754 207,638 Accounts payable 100,351 63,243 95,827 Refunds to customers and customer deposits 12,718 33,474 27,396 Accrued taxes 14,845 19,806 26,602 Accrued interest 11,404 8,609 12,097 Other current liabilities 47,581 50,580 49,467 Total current liabilities 458,869 378,980 473,503 Deferred Credits and Other Liabilities: Deferred income taxes 205,478 205,359 215,520 Accrued postretirement benefits other than pensions 43,388 40,683 40,942 Unamortized investment tax credit 24,346 26,704 25,524 Other 18,414 7,467 8,297 Total deferred credits and other liabilities 291,626 280,213 290,283 Minority interest in subsidiary 1,498 987 916 Capitalization: Long-term debt and other obligations 484,607 388,409 486,726 Preferred stock of subsidiary: Redeemable 8,076 8,192 8,192 Nonredeemable 11,090 11,090 11,090 Total preferred stock 19,166 19,282 19,282 Common stock - issued and outstanding 61,189, 61,288 and 61,305 shares, respectively 213,742 215,018 215,917 Retained earnings 494,909 488,597 93,918 Accumulated other 71 (72) (78) comprehensive income Total common shareholders' equity 708,722 703,543 709,757 Total capitalization 1,212,495 1,111,234 1,215,765 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $1,964,488 $1,771,414 $1,980,467
VECTREN CORPORATION AND SUBSIDIARY COMPANIES CONSOLIDATED STATEMENTS OF CASH FLOWS (Thousands - Unaudited) Six Months Twelve Months Ended June 30 Ended June 30 2000 1999 2000 1999 CASH FLOWS FROM (REQUIRED FOR) OPERATING ACTIVITIES: Net income $ 30,398 $ 52,277 $ 68,869 $ 87,591 Adjustments to reconcile net income to cash provided from operating activities - Depreciation and amortization 48,693 43,019 92,672 84,133 Preferred dividend requirement 535 539 1,074 1,085 Deferred income taxes and invest- ment tax credit (11,220) (433) (2,239) 6,739 (Gain) on sale of assets (8,961) 730 (8,961) 730 Undistributed earnings of unconsolidated affiliates (7,551) (6,539) (12,654) (9,882) 21,496 37,316 69,892 82,805 Changes in assets and liabilities - Receivables - net 50,398 60,117 (29,697) 5,720 Inventories 24,745 20,319 12,249 213 Accounts payable, refunds to customers, customer deposits, and other current liabilities (12,040) (21,288) 13,353 1,194 Accrued taxes and interest (12,450) 3,301 (2,166) (2,682) Prepayments and other current assets 2,918 (4,520) (21) (7,837) Prepaid gas delivery (32) (11,645) (9,324) (11,645) Accrued post- retirement benefits and other pensions 2,446 3,196 2,705 2,156 Other 2,694 875 (1,703) 7,296 Total adjustments 80,175 87,671 55,288 77,220 Net cash flows from operating activities 110,573 139,948 124,157 164,811 CASH FLOWS FROM (REQUIRED FOR) FINANCING ACTIVITIES: Change in common stock - (2,248) - (7,164) Retirement of preferred stock (116) (116) (116) (232) Proceeds from long- term debt - - 110,000 22,200 Retirement of long- term debt and other obligations (2,637) (46,466) (24,358) (85,009) Net change in short- term borrowings 10,374 12,771 79,258 103,470 Dividends on common stock (29,533) (28,266) (58,798) (56,449) Other - - - 330 Net cash flows from (required for) financing activities (21,912) (64,325) 105,986 (22,854) CASH FLOWS (REQUIRED FOR) INVESTING ACTIVITIES: Capital expenditures (62,871) (63,381) (129,192) (130,135) Demand Side Management program expenditures (547) 51 (850) (346) Investment in leveraged leases (211) 13 (46,510) (275) Investments in partnerships and other corporations (8,737) (2,976) (10,956) 13,125) Non-regulated investments in unconsolidated affiliates - net 8,465 (5,521) 8,465 (9,447) Change in notes receivable (29,465) (583) (40,781) (3,530) Change in nonutility property (10,086) (796) (17,917) (4,544) Cash distributions from unconsolidated affiliates 3,261 3,113 4,898 4,436 Proceeds from sale of assets - - - 4,113 Other 12,906 (1,627) 10,120 (6,153) Net cash flows (required for) investing activities (87,285) (71,707) (222,723) (159,006) NET INCREASE (DECREASE) IN CASH EQUIVALENTS 1,376 3,916 7,420 (17,049) CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 17,351 7,391 11,307 28,356 CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 18,727 $ 11,307 $ 18,727 $ 11,307