EX-99.1EARNINGS 2 earnings-release_1qtr.txt EARNINGS RELEASE 1ST QTR Exhibit 99.1 News Release Vectren Corporation P.O. Box 209 Evansville, IN 47702-0209 April 25, 2001 FOR IMMEDIATE RELEASE Vectren Reports 2001 First Quarter Results Evansville, Indiana - (NYSE:VVC) Vectren Corporation today reported 2001 first quarter earnings of $44.4 million or $.68 per share, compared to net income for the first quarter of 2000 of $22.1 million or $.36 per share. Consolidated net income before merger related costs and the cumulative effect of the change in accounting principle was $43.0 million ($.66 EPS) for the quarter ended March 31, 2001, as compared to net income before merger related costs of $41.4 million ($.68 EPS) for the same period in 2000. According to Vectren Chairman and Chief Executive Officer, Niel C. Ellerbrook, "Vectren had a very strong first quarter particularly after considering the expenses associated with the extraordinarily high gas costs experienced throughout this quarter. Our utility group saw sizable increases in interest expense and customer service operating costs as the result of gas costs nearly tripling those of the prior year, however, growth in our non-regulated group continues with our gas marketers and other investments having a very strong quarter." Specific first quarter highlights include: * Contributions from the non-regulated group before merger costs were $.14 per share in 2001 compared to $.16 in 2000. Excluding the one time $. 08 gain recorded in 2000 due to the restructuring of an investment in SIGECOM, the non-regulated group increased its contribution by $.06 per share. * The net of tax impact of merger related costs including the accelerated depreciation on the information system to be retired by December 31, 2001 was $2.6 million or $.04 per share in 2001 as compared to $19.3 million or $.32 per share in 2000. * The cumulative effect of the change in accounting principle due to the adoption of FAS 133 by the regulated wholesale power group, requiring mark to market accounting for certain power contracts was a favorable $3.9 million net of tax adjustment or $.06 per share. * Utility operating margins were $179.3 million, a $44.1 million increase over the same period last year. This was due to additional gas throughput as a result of the Ohio asset acquisition, increased gas and electric sales on colder heating weather and gains recognized from wholesale power marketing with purchase and sales contracts now reflecting current market values under FAS 133. Please SEE ATTACHED unaudited schedules for additional financial information. In conjunction with Vectren Corporation's first quarter earnings release, you are invited to listen in real-time to its conference call on April 26 at 9:30 a.m. EDT. The call will also be available for replay. A link to the live broadcast and replay will be available on Vectren's Web site at http://www.vectren.com. Vectren Corporation is an energy and applied technology holding company headquartered in Evansville, Indiana. Vectren's energy delivery subsidiaries provide gas and/or electricity to nearly one million customers in adjoining service territories that cover nearly two-thirds of Indiana and west central Ohio. Vectren's non-regulated subsidiaries and affiliates currently offer energy- related products and services, broadband communication services, and utility related services including coal production and sales, underground pipeline construction and repair, facilities locating and meter reading services, materials management and debt collections to customers throughout the surrounding region. To learn more about Vectren, visit www.vectren.com. NOTE: Net income for the three-month period ended March 31 is not indicative of net income for an annual period due to seasonal sales of gas and electric for space heating and cooling purposes. This press release may contain forward-looking statements. Vectren wishes to caution readers that actual results could differ materially from those that will be projected in our discussions. Additional detailed information concerning a number of factors that could cause actual results to differ materially from the information that is provided to you is readily available in our report Form 10-K filed with the Securities and Exchange Commission on March 30, 2001. Investor Contact: Steven M. Schein, (812) 491-4209, sschein@vectren.com Media Contact: Jeffrey W. Whiteside, (812) 491-4205, jwhiteside@vectren.com ###
Vectren Corporation 3 Months 12 Months Selected Highlights Ended March 31 Ended March 31 (Unaudited) 2001 2000 2001 * 2000 -------- ------ ------ ------ Basic and Diluted Earnings Per Average Share: Utility Group $ 0.54 $ 0.21 $ 1.20 $ 0.85 Non-regulated Group Energy Services 0.08 0.03 0.16 0.16 Utility Services - 0.01 0.03 0.03 Communications (0.01) 0.08 (0.02) 0.09 Corporate and Other 0.07 0.03 0.14 0.05 ------ ------ ------ ------ Total Non-regulated 0.14 0.15 0.31 0.33 Total Earnings Per Average ------ ------ ------ ------ Share ** $ 0.68 $ 0.36 $ 1.51 $ 1.18 ------ ------ ------ ------ Merger and Integration Costs 0.04 0.32 0.32 0.32 Cumulative Effect of Change in Accounting Principle (0.06) - (0.06) - ------- ------- -------- ------- Total Before Merger and Integration Costs and Cumulative Effect of Change in Accounting $ 0.66 $ 0.68 $ 1.77 $ 1.50 ------- ------ ------- ------- Summary of Impact of Merger and Integration Costs: (millions, except per share data) Merger and Integration Costs $ 1.0 $ 27.2 $ 14.9 $ 27.2 Depreciation 3.2 - 14.6 - Income Taxes (1.6) (7.9) (9.4) (7.9) ------- ------- -------- ------- Total $ 2.6 $ 19.3 $ 20.1 $ 19.3 ------- ------- ------- ------- EPS Impact of Merger and Integration Costs $ 0.04 $ 0.32 $ 0.32 $ 0.32 ------ ------- -------- ------- Utility Group $ 0.04 $ 0.31 $ 0.32 $ 0.31 Non-regulated Group $ - $ 0.01 $ - $ 0.01 EBITDA (millions) Utility Group $ .6 $ 45.6 $ 263.9 $ 201.5 Non-regulated Group 20.1 25.8 52.5 41.5 ------- ------ ------- ------- Total $118.7 $ 71.4 $ 316.4 $ 243.0 ------- ------- ------- -------- Merger and Integration Costs 1.0 27.2 14.9 27.2 Cumulative Effect of Change in Accounting Principle (6.3) - (6.3) - ------- ------- -------- ------- Total Before Merger and Integration Costs and Cumulative Effect of Change in Accounting $113.4 $ 98.6 $ 325.0 $ 270.2 -------- ------- --------- -------- Dividends Paid (per common share, 12 months) $ 1.00 $ 0.95 Annualized Dividend $ 1.02 $ 0.97 Dividend Yield (at close) 4.8% N/A Dividend Payout Ratio 66.2% 80.5% Dividend to Book Value 7.9% 8.3% Return on Average Shareholder Equity 10.9% 10.2% Book Value Per Share $ 2.92 $ 1.70 Market to Book Value (at close) 166% N/A Common Stock Prices (VVC - NYSE) High (during first quarter) $ 4.44 N/A Low (during first quarter) $ 0.50 N/A Close $21.40 N/A Price/Earnings Ratio (trailing) 14.2 N/A Percent Internally Generated Funds - Utility Group 95% 60% Ratio of Earnings to Fixed Charges - SEC Method Consolidated 2.9 3.3 Utility Group 3.0 3.2
* Selected highlights for the twelve months ended March 31, 2001 include five months of operations resulting from the acquisition of the Ohio operations on October 31, 2000. ** Diluted earnings per share for the three months ended March 31, 2001, are $0.67. Basic and diluted earnings per share for all other periods are equal.
VECTREN CORPORATION 3 Months 12 Months SELECTED UTILITY Ended Ended March 31 March 31 OPERATING STATISTICS --------------------- ----------------------- (Unaudited) 2001 2000 2001 * 2000 --------- -------- --------- -------- WEATHER AS A PERCENT OF NORMAL: Heating Degree Days 99% 86% 103% 82% Cooling Degree Days 0% 0% 93% 94% GAS MARGIN (Thousands): Operating Revenues 522,889 200,845 1,140,797 509,236 Cost of Gas 404,072 118,527 838,085 281,457 --------- --------- ---------- --------- Margin 118,817 82,318 302,712 227,779 ========== ========== ========== ========== ELECTRIC MARGIN (Thousands): Operating Revenues 88,209 72,990 351,628 309,572 Cost of Fuel & Purchased Power 27,714 20,050 115,228 88,256 --------- --------- --------- --------- Margin 60,495 52,940 236,400 221,316 ========= ========= ========= ========== GAS SOLD & TRANSPORTED (MDth): Residential 38,060 23,691 80,095 48,923 Commercial 14,508 9,528 30,930 19,938 Contract 30,109 23,325 96,346 79,147 --------- ---------- ---------- --------- 82,677 56,544 207,371 148,008 ========= ========= ========= ========= ELECTRICITY SOLD (MWh): Residential 351,407 316,034 1,418,536 1,341,757 Commercial 301,865 290,617 1,347,295 1,302,755 Industrial 576,290 598,400 2,469,862 2,464,092 Miscellaneous Sales 5,287 5,270 19,249 19,161 Total Retail 1,234,849 1,210,321 5,254,942 5,127,765 Municipals and Jasper 137,913 157,974 650,134 674,246 Other Wholesale 780,923 381,274 2,023,740 1,196,293 --------- --------- ---------- --------- 2,153,685 1,749,569 7,928,816 6,998,304 ========== ========== =========== ========== * Gas operating statistics for the twelve months ended March 31, 2001 include five months of operations resulting from the acquisition of the Ohio operations on October 31, 2000.
VECTREN CORPORATION 3 Months 12 Months SELECTED UTILITY Ended Ended March 31 March 31 OPERATING STATISTICS --------------------- ----------------------- (Unaudited) 2001 2000 2001 * 2000 --------- -------- --------- -------- GAS OPERATING REVENUES (Thousands): Residential 351,991 137,341 750,944 334,339 Commercial 126,641 49,967 265,895 116,061 Contract 41,420 11,643 114,673 52,887 Miscellaneous Revenue 2,837 1,894 9,285 5,949 --------- --------- --------- --------- 522,889 200,845 1,140,797 509,236 ========= ========= ========= ========= ELECTRIC OPERATING REVENUES (Thousands): Residential 21,892 19,965 96,035 89,573 Commercial 16,449 15,663 75,389 69,462 Industrial 18,453 19,106 83,069 81,159 Miscellaneous Revenue 1,395 2,160 4,528 7,694 --------- --------- --------- --------- Total Retail 58,189 56,894 259,021 247,888 Municipals and Jasper 4,717 5,352 23,011 23,841 Other Wholesale 25,303 10,744 69,596 37,843 --------- --------- --------- --------- 88,209 72,990 351,628 309,572 ========= ========= ========= ========= AVERAGE GAS CUSTOMERS: Residential 865,040 569,674 856,226 557,435 Commercial 80,274 57,249 79,662 56,281 Contract 3,745 1,257 4,337 1,250 --------- --------- ---------- --------- 949,059 ** 628,180 940,225 ** 614,966 ========== ========== ========== ========== AVERAGE ELECTRIC CUSTOMERS: Residential 115,025 110,289 111,288 109,457 Commercial 17,217 16,454 16,716 16,141 Industrial 187 195 180 197 --------- --------- --------- -------- 132,429 126,938 128,184 125,795 ========== ========== =========== ========== * Gas operating statistics for the twelve months ended March 31, 2001, include five months of operations resulting from the acquisition of the Ohio operations on October 31, 2000. ** Average gas customers for three months ended and twelve months ended March 31, 2001, include 312,314 and 311,546 average customers, respectively, for the Ohio operations.
VECTREN CORPORATION AND SUBSIDIARY COMPANIES CONSOLIDATED STATEMENTS OF INCOME (Thousands, except for share amounts) (Unaudited) Three Months Twelve Months Ended Ended March 31 March 31 2001 2000 2001 2000 ---------- ---------- ---------- ---------- OPERATING REVENUES: Gas utility $522,889 $200,845 $1,140,797 $ 509,236 Electric utility 88,209 72,990 351,628 309,572 Energy services and other 271,990 85,609 679,909 288,020 --------- --------- ---------- --------- Total operating revenues 883,088 359,444 2,172,334 1,106,828 -------- -------- ---------- ---------- OPERATING EXPENSES: Cost of gas sold 404,072 118,527 838,085 281,457 Fuel for electric generation 14,561 16,573 69,158 67,250 Purchased electric energy 13,153 3,477 46,070 21,006 Cost of energy services and other 265,204 81,722 656,740 73,142 Other operating 61,432 46,426 214,597 191,215 Merger and integration costs 962 27,181 14,926 27,181 Depreciation and amortization 31,471 22,662 114,470 88,435 Taxes other than income taxes 19,543 8,600 48,953 30,227 --------- --------- ---------- ---------- Total operating expenses 810,398 325,168 2,002,999 979,913 --------- --------- ---------- ---------- OPERATING INCOME 72,690 34,276 169,335 126,915 OTHER INCOME Equity in earnings of unconsolidated investments 8,083 11,695 13,942 15,003 Other - net 1,450 3,200 15,201 14,350 --------- -------- ---------- ---------- Total other income 9,533 14,895 29,143 29,353 --------- -------- ---------- ---------- INTEREST EXPENSE 22,819 12,273 67,679 44,965 --------- -------- ---------- ---------- INCOME BEFORE PREFERRED DIVIDENDS AND INCOME TAXES 59,404 36,898 130,799 111,303 PREFERRED DIVIDEND REQUIREMENT OF SUBSIDIARY 238 269 986 1,077 -------- --------- ---------- ---------- INCOME BEFORE INCOME TAXES 59,166 36,629 129,813 110,226 INCOME TAXES 18,775 14,362 38,645 37,433 --------- --------- ---------- ---------- NET INCOME BEFORE MINORITY INTEREST 40,391 22,267 91,168 72,793 MINORITY INTEREST IN SUBSIDIARY (22) 142 840 643 --------- -------- ---------- ---------- NET INCOME BEFORE CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE $ 40,413 $ 22,125 $ 90,328 $ 72,150 CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE-NET OF TAX 3,938 - 3,938 - --------- --------- ---------- ---------- NET INCOME $ 44,351 $ 22,125 $ 94,266 $ 72,150 ========= ========= ========== ========== AVERAGE COMMON SHARES OUTSTANDING 65,604 61,299 62,446 61,298 DILUTED COMMON SHARES OUTSTANDING 65,758 61,407 62,498 61,389 EARNINGS PER SHARE OF COMMON STOCK BASIC INCOME FROM OPERATIONS $ 0.62 $ 0.36 $ 1.45 $ 1.18 CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING 0.06 - 0.06 - PRINCIPLE -------- --------- -------- ---------- TOTAL EARNINGS PER SHARE OF COMMON $ 0.68 $ 0.36 $ 1.51 $ 1.18 STOCK DILUTED INCOME FROM OPERATIONS $ 0.61 $ 0.36 $ 1.45 $ 1.18 CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE 0.06 - 0.06 - -------- ---------- --------- ---------- TOTAL EARNINGS PER SHARE OF COMMON $ 0.67 $ 0.36 $ 1.51 $ 1 18 STOCK