EX-99.2 3 ex99_2.htm EX99.2 Ex99.2
Ex. 99.2 
 VECTREN CORPORATION
 AND SUBSIDIARY COMPANIES
 CONSOLIDATED STATEMENTS OF INCOME
 (Millions, except per share amounts)
 (Unaudited)
                   
       
 Three Months
       
 Ended March 31,
       
2006
      
2005
  
                   
OPERATING REVENUES:
                  
    Gas utility
        
$
572.7
        
$
516.7
  
    Electric utility
          
105.2
         
94.7
 
    Energy services and other
          
96.6
         
65.8
 
        Total operating revenues
          
774.5
         
677.2
 
                           
OPERATING EXPENSES:
                          
    Cost of gas sold
          
429.0
         
370.9
 
    Fuel for electric generation
          
34.9
         
26.9
 
    Purchased electric energy
          
3.2
         
2.3
 
    Cost of energy services and other
          
78.4
         
51.6
 
    Other operating
          
72.8
         
71.1
 
    Depreciation and amortization
          
41.6
         
37.1
 
    Taxes other than income taxes
          
23.1
         
22.1
 
        Total operating expenses
          
683.0
         
582.0
 
                           
OPERATING INCOME
          
91.5
         
95.2
 
                           
OTHER INCOME:
                          
    Equity in earnings of unconsolidated affiliates
          
13.7
         
6.4
 
    Other - net
          
2.1
         
2.4
 
        Total other income
          
15.8
         
8.8
 
                           
INTEREST EXPENSE
          
23.8
         
20.1
 
                           
INCOME BEFORE INCOME TAXES
          
83.5
         
83.9
 
                           
INCOME TAXES
          
25.9
         
27.8
 
                           
NET INCOME
        
$
57.6
        
$
56.1
  
                           
                           
AVERAGE COMMON SHARES OUTSTANDING
          
75.7
         
75.6
 
DILUTED COMMON SHARES OUTSTANDING
          
76.1
         
76.1
 
                           
EARNINGS PER SHARE OF COMMON STOCK
                          
                           
  BASIC
        
$
0.76
        
$
0.74
  
                           
  DILUTED
        
$
0.76
        
$
0.74
  
 
 
1

 VECTREN UTILITY HOLDINGS
  
 AND SUBSIDIARY COMPANIES
  
 CONSOLIDATED STATEMENTS OF INCOME
  
 (Millions)
  
 (Unaudited)
  
           
   
 Three Months
  
   
 Ended March 31,
  
   
2006
  
2005
  
           
OPERATING REVENUES:
          
    Gas utility
  
$
572.7
  
$
516.7
  
    Electric utility
    
105.2
   
94.7
 
    Other    
    
0.4
   
0.2
 
        Total operating revenues
    
678.3
   
611.6
 
               
OPERATING EXPENSES:
              
    Cost of gas sold
    
429.0
   
370.9
 
    Fuel for electric generation
    
34.9
   
26.9
 
    Purchased electric energy
    
3.2
   
2.3
 
    Other operating
    
61.6
   
61.6
 
    Depreciation and amortization
    
37.1
   
33.4
 
    Taxes other than income taxes
    
22.8
   
21.8
 
        Total operating expenses
    
588.6
   
516.9
 
               
OPERATING INCOME
    
89.7
   
94.7
 
               
OTHER INCOME - NET
    
0.9
   
2.2
 
               
INTEREST EXPENSE
    
20.0
   
16.9
 
               
INCOME BEFORE INCOME TAXES
    
70.6
   
80.0
 
               
INCOME TAXES
    
27.2
   
31.9
 
               
               
NET INCOME
  
$
43.4
  
$
48.1
  
 
 
2
 

 VECTREN CORPORATION
  
 AND SUBSIDIARY COMPANIES
  
 CONSOLIDATED BALANCE SHEETS
  
 (Millions - Unaudited)
  
   
March 31,
  
December 31,
  
   
2006
  
2005
  
ASSETS
          
Current Assets
          
    Cash & cash equivalents
  
$
9.6
  
$
20.4
  
    Accounts receivable - less reserves of $3.9 &
             
        $2.8, respectively
    
218.5
   
197.8
 
    Accrued unbilled revenues
    
124.1
   
240.6
 
    Inventories
    
81.9
   
144.6
 
    Recoverable fuel & natural gas costs
    
2.2
   
15.4
 
    Prepayments & other current assets
    
70.5
   
106.4
 
        Total current assets
    
506.8
   
725.2
 
Utility Plant
              
    Original cost
    
3,668.1
   
3,632.0
 
    Less: accumulated depreciation & amortization
    
1,399.4
   
1,380.1
 
        Net utility plant
    
2,268.7
   
2,251.9
 
Investments in unconsolidated affiliates
    
215.7
   
214.7
 
Other investments
    
110.1
   
111.6
 
Non-utility property - net
    
240.9
   
240.3
 
Goodwill - net
    
207.1
   
207.1
 
Regulatory assets
    
93.9
   
89.9
 
Other assets
    
26.8
   
27.4
 
        TOTAL ASSETS
  
$
3,670.0
  
$
3,868.1
  
LIABILITIlES & SHAREHOLDERS' EQUITY
              
Current Liabilities
              
    Accounts payable
  
$
77.6
  
$
159.0
  
    Accounts payable to affiliated companies
    
70.1
   
162.3
 
    Refundable fuel & natural gas costs
    
16.2
   
7.6
 
    Accrued liabilities
    
213.8
   
156.6
 
    Short-term borrowings
    
162.8
   
299.9
 
    Current maturities of long-term debt
    
0.4
   
0.4
 
    Long-term debt subject to tender
    
-
   
53.7
 
        Total current liabilities
    
540.9
   
839.5
 
Long-term Debt - Net of Current Maturities &
             
      Debt Subject to Tender
    
1,251.7
   
1,198.0
 
Deferred Income Taxes & Other Liabilities
              
      Deferred income taxes
    
230.9
   
227.3
 
      Regulatory liabilities
   
281.0
   
272.9
 
      Deferred credits & other liabilities
    
189.6
   
186.7
 
        Total deferred credits & other liabilities
    
701.5
   
686.9
 
Minority Interest in Subsidiary
    
0.4
   
0.4
 
Common Shareholders' Equity
              
  Common stock (no par value) – issued & outstanding
             
    76.2 and 76.0 shares, respectively
    
524.3
   
528.1
 
  Retained earnings
    
663.2
   
628.8
 
  Accumulated other comprehensive loss
    
(12.0
)
  
(13.6
)
    Total common shareholders' equity
    
1,175.5
   
1,143.3
 
    TOTAL LIABILITIES & SHAREHOLDERS' EQUITY
  
$
3,670.0
  
$
3,868.1
  

3
 

 VECTREN CORPORATION
  
 AND SUBSIDIARY COMPANIES
  
           
 CONSOLIDATED STATEMENTS OF CASH FLOWS
  
 (Millions - Unaudited)
  
   
Three Months
   
Ended March 31,
   
2006
  
2005
  
CASH FLOWS FROM OPERATING ACTIVITIES:
          
Net income
  
$
57.6
  
$
56.1
  
Adjustments to reconcile net income to cash from operating activities:
              
    Depreciation & amortization
    
41.6
   
37.1
 
    Deferred income taxes & investment tax credits
    
2.1
   
(0.2
)
    Equity in earnings of unconsolidated affiliates
    
(13.7
)
  
(6.4
)
    Provision for uncollectible accounts
    
4.7
   
5.6
 
    Expense portion of pension & postretirement periodic benefit cost
    
2.7
   
3.2
 
    Other non-cash charges - net
   
0.8
   
(3.1
)
    Changes in working capital accounts:
              
      Accounts receivable & accrued unbilled revenue
    
91.9
   
30.2
 
      Inventories
    
58.9
   
21.1
 
      Recoverable fuel & natural gas costs
    
21.8
   
35.4
 
      Prepayments & other current assets
    
30.9
   
94.7
 
      Accounts payable, including to affiliated companies
    
(170.5
)
  
(103.7
)
      Accrued liabilities
    
54.4
   
59.0
 
    Unconsolidated affiliate dividends
    
23.9
   
1.3
 
    Changes in noncurrent assets
    
(1.4
)
  
2.5
 
    Changes in noncurrent liabilities
    
1.0
   
(1.8
)
      Net cash flows from operating activities
    
206.7
   
231.0
 
CASH FLOWS FROM FINANCING ACTIVITIES:
              
Requirements for:
              
    Dividends on common stock
    
(23.1
)
  
(22.5
)
    Retirement of long-term debt, including premiums paid
    
-
   
(0.1
)
    Redemption of preferred stock of subsidiary
    
-
   
(0.1
)
Net change in short-term borrowings
    
(137.1
)
  
(177.1
)
Other financing activities
              
    Net cash flows from financing activities
    
(160.2
)
  
(199.8
)
CASH FLOWS FROM INVESTING ACTIVITIES:
              
  Proceeds from:
              
   Unconsolidated affiliate distributions
    
-
   
0.1
 
   Notes receivable & other collections
    
0.7
   
0.5
 
  Requirements for:
              
  Capital expenditures, excluding AFUDC equity
    
(54.1
)
  
(27.7
)
  Unconsolidated affiliate investments
    
(3.6
)
  
(2.7
)
  Notes receivable & other investments
    
(0.3
)
  
-
 
    Net cash flows from investing activities
    
(57.3
)
  
(29.8
)
Net decrease in cash & cash equivalents
    
(10.8
)
  
1.4
 
Cash & cash equivalents at beginning of period
    
20.4
   
9.6
 
Cash & cash equivalents at end of period
  
$
9.6
  
$
11.0
  
 
 
4
 
 VECTREN CORPORATION
  
 AND SUBSIDIARY COMPANIES
  
 HIGHLIGHTS
  
 (millions, except per share amounts)
  
 (Unaudited)
  
           
   
 Three Months
  
   
 Ended March 31,
  
   
2006
  
2005
  
           
REPORTED EARNINGS:
          
Utility Group
  
$
43.4
  
$
48.1
  
               
Non-utility Group
              
  Energy Marketing and Services
    
12.9
   
7.1
 
  Mining Operations
    
1.8
   
1.3
 
  Energy Infrastructure Services
    
(1.2
)
  
(2.1
)
  Other Businesses
    
-  
   
(0.5
)
  Total Non-utility Operations
    
13.5
   
5.8
 
               
Corporate and Other
    
-  
   
(0.9
)
               
Sub-Total Operations
    
56.9
   
53.0
 
               
Synfuels-related
    
0.7
   
3.1
 
               
Vectren Consolidated
  
$
57.6
  
$
56.1
  
 
5

 VECTREN CORPORATION
  
 AND SUBSIDIARY COMPANIES
  
           
 SELECTED GAS DISTRIBUTION
  
 OPERATING STATISTICS
  
 (Unaudited)
  
           
   
 Three Months
  
   
 Ended March 31,
  
   
2006
  
2005
  
           
GAS OPERATING REVENUES (Millions):
          
           
    Residential
  
$
384.6
  
$
348.5
  
    Commercial
    
162.1
   
146.6
 
    Industrial
    
22.1
   
19.0
 
    Miscellaneous Revenue
    
3.9
   
2.6
 
   
$
572.7
  
$
516.7
  
               
               
GAS MARGIN (Millions):
              
               
    Residential
  
$
92.9
  
$
94.8
  
    Commercial
    
31.8
   
32.9
 
    Industrial
    
14.9
   
15.6
 
    Miscellaneous
    
4.1
   
2.5
 
   
$
143.7
  
$
145.8
  
               
GAS SOLD & TRANSPORTED (MMDth):
              
               
    Residential
    
31.7
   
38.4
 
    Commercial
    
13.6
   
16.6
 
    Industrial
    
25.5
   
26.8
 
     
70.8
   
81.8
 
               
               
AVERAGE GAS CUSTOMERS
              
               
    Residential
    
906,047
   
900,419
 
    Commercial
    
84,466
   
84,303
 
    Industrial
    
1,656
   
1,576
 
     
992,169
   
986,298
 
               
YTD WEATHER AS A PERCENT OF NORMAL:
              
               
    Heating Degree Days
    
84
%
  
93
%
               
               
6

 VECTREN CORPORATION
  
 AND SUBSIDIARY COMPANIES
  
           
 SELECTED ELECTRIC
  
 OPERATING STATISTICS
  
 (Unaudited)
  
           
   
 Three Months
  
   
 Ended March 31
  
   
2006
  
2005
  
           
ELECTRIC OPERATING REVENUES (Millions):
          
    Residential
  
$
30.2
  
$
28.4
  
    Commercial
    
21.9
   
20.3
 
    Industrial
    
30.3
   
26.0
 
    Municipals
    
5.6
   
5.6
 
    Miscellaneous Revenue
    
2.9
   
0.9
 
      Total Retail
    
90.9
   
81.2
 
    Net Wholesale Revenues
    
14.3
   
13.5
 
   
$
105.2
  
$
94.7
  
               
ELECTRIC MARGIN (Millions):
              
    Residential
  
$
22.5
  
$
22.1
  
    Commercial
    
15.4
   
15.0
 
    Industrial
    
16.6
   
15.3
 
    Municipals
    
2.7
   
3.3
 
    Miscellaneous
    
2.8
   
0.8
 
      Total Retail
    
60.0
   
56.5
 
    Net Wholesale Margin
    
7.1
   
9.0
 
   
$
67.1
  
$
65.5
  
               
ELECTRICITY SOLD (GWh):
              
    Residential
    
355.4
   
362.3
 
    Commercial
    
301.6
   
303.6
 
    Industrial
    
637.9
   
618.9
 
    Municipals
    
145.3
   
149.6
 
    Miscellaneous Sales
    
5.2
   
4.8
 
      Total Retail
    
1,445.4
   
1,439.2
 
    Wholesale
    
462.6
   
1,064.0
 
     
1,908.0
   
2,503.2
 
               
               
AVERAGE ELECTRIC CUSTOMERS
              
    Residential
    
120,918
   
119,833
 
    Commercial
    
18,733
   
18,627
 
    Industrial
    
107
   
106
 
    All Others
    
51
   
55
 
     
139,809
   
138,621
 
               
YTD WEATHER AS A PERCENT OF NORMAL:
              
    Cooling Degree Days
    
N/A
    
N/A
  
    Heating Degree Days
    
84
%
  
93
%