-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, R70qQp5lWMUSdgIkjGlQXhUUHFgfld2RXZz9Bgz+2EgomdPcAlgkNyJtcv7m9vsm dKn+bBM6wyuW8wly171Y9g== 0001096385-04-000012.txt : 20040130 0001096385-04-000012.hdr.sgml : 20040130 20040130092535 ACCESSION NUMBER: 0001096385-04-000012 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20031231 ITEM INFORMATION: ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20040130 FILER: COMPANY DATA: COMPANY CONFORMED NAME: VECTREN UTILITY HOLDINGS INC CENTRAL INDEX KEY: 0001129542 STANDARD INDUSTRIAL CLASSIFICATION: GAS & OTHER SERVICES COMBINED [4932] IRS NUMBER: 352104850 STATE OF INCORPORATION: IN FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-16739 FILM NUMBER: 04554177 BUSINESS ADDRESS: STREET 1: 20 NW 4TH ST CITY: EVANSVILLE STATE: IN ZIP: 47708 BUSINESS PHONE: 8124914000 FILER: COMPANY DATA: COMPANY CONFORMED NAME: INDIANA GAS CO INC CENTRAL INDEX KEY: 0000050183 STANDARD INDUSTRIAL CLASSIFICATION: NATURAL GAS DISTRIBUTION [4924] IRS NUMBER: 350793669 STATE OF INCORPORATION: IN FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-06494 FILM NUMBER: 04554175 BUSINESS ADDRESS: STREET 1: 20 N. W. FOURTH ST CITY: EVANSVILLE STATE: IN ZIP: 47708 BUSINESS PHONE: 8124914000 MAIL ADDRESS: STREET 1: 20 N. W. FOURTH ST STREET 2: 20 N. W. FOURTH ST CITY: EVANSVILLE STATE: IN ZIP: 47708 FORMER COMPANY: FORMER CONFORMED NAME: INDIANA GAS & WATER CO INC DATE OF NAME CHANGE: 19701023 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SOUTHERN INDIANA GAS & ELECTRIC CO CENTRAL INDEX KEY: 0000092195 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC & OTHER SERVICES COMBINED [4931] IRS NUMBER: 350672570 STATE OF INCORPORATION: IN FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-03553 FILM NUMBER: 04554176 BUSINESS ADDRESS: STREET 1: 20 NW FOURTH ST CITY: EVANSVILLE STATE: IN ZIP: 47708 BUSINESS PHONE: 8124914000 MAIL ADDRESS: STREET 1: 20 NW FOURTH ST CITY: EVANSVILLE STATE: IN ZIP: 47708 FILER: COMPANY DATA: COMPANY CONFORMED NAME: VECTREN CORP CENTRAL INDEX KEY: 0001096385 STANDARD INDUSTRIAL CLASSIFICATION: GAS & OTHER SERVICES COMBINED [4932] IRS NUMBER: 352086905 STATE OF INCORPORATION: IN FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-15467 FILM NUMBER: 04554174 BUSINESS ADDRESS: STREET 1: 20 NW FOURTH ST CITY: EVANSVILLE STATE: IN ZIP: 47708 BUSINESS PHONE: 8124914000 MAIL ADDRESS: STREET 1: 20 NW FOURTH ST CITY: EVANSVILLE STATE: IN ZIP: 47708 8-K 1 vvc_earningsrel-dec03.txt VECTREN CORP 4TH QTR EARNINGS RELEASE FOR DEC 03 SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 of 15(d) of The Securities Exchange Act of 1934 Date of Report (Date of earliest event reported) January 28, 2004 VECTREN CORPORATION (Exact name of registrant as specified in its charter) Commission Registrant, State of Incorporation, I.R.S Employer File No. Address, and Telephone Number Identification No. ---------- ----------------------------------- ------------------ 1-15467 Vectren Corporation 35-2086905 (An Indiana Corporation) 20 N.W. Fourth Street, Evansville, Indiana 47708 (812) 491-4000 1-16739 Vectren Utility Holdings, Inc. 35-2104850 (An Indiana Corporation) 20 N.W. Fourth Street, Evansville, Indiana 47708 (812) 491-4000 1-3553 Southern Indiana Gas and Electric Company 35-0672570 (An Indiana Corporation) 20 N.W. Fourth Street, Evansville, Indiana 47708 (812) 491-4000 1-6494 Indiana Gas Company, Inc. 35-0793669 (An Indiana Corporation) 20 N.W. Fourth Street, Evansville, Indiana 47708 (812) 491-4000 Item 12. Results of Operations and Financial Condition The following information regarding an earnings release is furnished to the Securities and Exchange Commission under Item 12. On January 28, 2004, Vectren Corporation (the Company) released financial information to the investment community regarding the Company's results of operations for the three and twelve month periods ended December 30, 2003. The financial information released is included herein as Exhibit 99-1. This information does not include footnote disclosures and should not be considered complete financial statements. Vectren Corporation is the parent Company of Vectren Utility Holdings, Inc. (VUHI). VUHI serves as the intermediate holding company of the Company's three operating public utilities, which include Southern Indiana Gas and Electric Company and Indiana Gas Company, Inc. In connection with the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, the Company is hereby filing cautionary statements identifying important factors that could cause actual results of the Company and its subsidiaries, including Vectren Utility Holdings, Inc., Indiana Gas Company, Inc. and Southern Indiana Gas and Electric Company, to differ materially from those projected in forward-looking statements of the Company and its subsidiaries made by, or on behalf of, the Company and its subsidiaries. 99-1 Press Release - Vectren Corporation Reports Third Quarter 2003 Results 99-2 Cautionary Statement for Purposes of the "Safe Harbor" Provisions of the Private Securities Litigation Reform Act of 1995 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. VECTREN CORPORATION VECTREN UTILITY HOLDINGS, INC. SOUTHERN INDIANA GAS AND ELECTRIC COMPANY INDIANA GAS COMPANY, INC. Janaury 28, 2004 By: /s/ M. Susan Hardwick ---------------------------------------- M. Susan Hardwick Vice President and Controller EX-99.1 PRESS REL 3 vvc_earnings-ex99x1.txt PRESS RELEASE WITH FINANCIAL STATEMENT EX 99-1 Vectren Corporation P.O. Box 209 Evansville, IN 47702-0209 FOR IMMEDIATE RELEASE January 28, 2004 Vectren Corporation Reports Fiscal 2003 Results Evansville, Indiana - Vectren Corporation (NYSE:VVC) today reported net income of $111.2 million, or $1.58 per share, for the year ended December 31, 2003, compared to net income of $114.0 million, or $1.69 per share, in 2002. Weighted average shares for calendar 2003 were 70.6 million, an increase of 3.0 million shares, or approximately 4.5%, from December 31, 2002, as the result of the August 2003 equity offering of approximately 7.4 million shares. Net income for the fourth quarter ended December 31, 2003, was $44.1 million, or $0.59 per share, compared to net income of $42.4 million, or $0.63 per share, for the same period last year. Results for the fourth quarter and year were consistent with the Wall Street consensus estimates. Said Niel C. Ellerbrook, Chairman, President and CEO, "Overall, fiscal 2003 was a good year for Vectren. We strengthened the balance sheet, began to see the positive impact of the recovery of environmental expenditures in our electric operations, and made progress in narrowing our focus of our nonregulated operations to those businesses that will continue to enhance earnings growth going forward. We are targeting consolidated earnings growth in the 5% range for 2004 and even greater improvement in 2005, as we expect to see the impact of rate relief in our gas distribution operations and continued growth in nonregulated contributions. Our improved financial position and the positive outlook for our businesses going forward led the Board of Directors to approve a 3.6% increase in our dividend during the fourth quarter." Utility Group Utility Group earnings for the fourth quarter 2003 were $34.5 million, as compared to $37.4 million for the same quarter last year. The $2.9 million decline was primarily due to mild heating weather, partially offset by the effects of an Ohio regulatory order allowing the company to defer for future recovery bad debt expense in excess of the amount provided in base rates. Earnings for the year ended December 31, 2003, were $85.6 million as compared to $97.1 million in 2002. The $11.5 million decrease was primarily due to increased operating expenses and the write off of the investment in an entity that processed fly ash into building materials, BABB International. The decrease was partially offset by increased nonfirm wholesale power margins and retail electric rate recovery related to NOx compliance expenditures and related operating expenses. Gas margins for the fourth quarter were $100.9 million as compared to $108.8 million for the same quarter last year. The decrease was primarily attributable to an estimated $5.0 million impact for weather that was 15% warmer than the prior period. Gas margins for the year ended December 31, 2003, were $349.8 million as compared to $337.8 million in 2002. The increase was primarily attributable to weather near normal in 2003 yet 6% colder than 2002 with an estimated year-over-year impact of $7.6 million. The remaining increase was primarily attributable to higher utility receipts and excise taxes on higher gas costs and volumes sold, and the recovery of Ohio customer choice implementation costs. Electric margins for the fourth quarter were $57.5 million as compared to $54.1 million for the same quarter last year. The increase was primarily due to the recovery of incremental NOx expenditures and related operating expenses, which added margin of $2.8 million. Unfavorable weather decreased margin for the quarter by an estimated $1.7 million, as compared to the prior year. Margin from industrial and other large customers increased $1.2 million. Electric margins for the year ended December 31, 2003 were $233.0 million, as compared to $230.2 million in 2002. Electric margins increased $7.1 million due to the recovery of NOx expenditures and related operating expenses and increased nonfirm wholesale margins of $5.6 million. These increases were partially offset by the effect of cooling weather 19% milder than normal and 34% milder than last year, which decreased margin an estimated $8.2 million. The company adopted EITF 03-11 in the fourth quarter of 2003. Prior to October 1, 2003, Vectren had reported revenues and costs associated with nonfirm wholesale sales on a gross basis in the statement of income. Effective October 1, 2003, Vectren began reporting transactions on a net basis, which more clearly reflects the margins delivered from wholesale power asset optimization efforts. Other operating expenses increased $10.4 million for the twelve months ended December 31, 2003, as compared to 2002. The increase is primarily attributable to increases in distribution and transmission expenses, power plant maintenance, and expansion of customer service initiatives. The fourth quarter includes the favorable effect of an Ohio regulatory order allowing the company to defer for future recovery its actual bad debt expense in excess of the amount provided in base rates. Depreciation and amortization for the twelve months ended December 31, 2003 increased $7.2 million primarily due to significant additions of utility plant, including a new gas-fired peaker unit and system upgrades. Taxes other than income for the twelve months ended December 31, 2003 increased $5.9 million. Of the annual increase, $4.5 million was due to higher utility receipts and excise taxes as a result of higher gas prices and increased volumes sold. The remaining increase is primarily attributable to higher property taxes. Other income (expense)-net for the twelve months ended December 31, 2003, decreased $2.4 million as the result of the first quarter 2003 write off of the BABB investment, totaling $3.9 million. Interest expense for the twelve months ended December 31, 2003, decreased $3.0 million as a result of the permanent financing completed in the third quarter of 2003 and lower short-term borrowing rates throughout 2003. Income tax expense for the twelve months ended December 31, 2003, increased $6.0 million primarily due to an increase in the Indiana state income tax rate from 4.5% to 8.5% and other changes in the effective tax rate in 2002. Nonregulated Group (all amounts following in this section are after tax) Nonregulated earnings for the fourth quarter 2003 were $10.0 million, as compared to $4.4 million for the same quarter last year. Earnings for the year ended December 31, 2003, were $27.6 million, as compared to $19.0 million in 2002. Energy Marketing and Services is comprised of the Company's gas marketing and performance contracting operations and held the Company's investment in Genscape, which was sold in the third quarter of 2003 at a gain of $2.6 million. This group's net income for the fourth quarter was $6.2 million, as compared to $3.9 million for the same quarter last year. Net income for the year ended December 31, 2003, was $20.7 million, as compared to $15.0 million in 2002. Gas marketing operations, performed through the Company's investment in ProLiance, completed their 8th consecutive successful year, contributing $15.3 million for the year, an increase of $0.7 million over 2002. The increase was principally attributable to increased storage capacity coupled with more volatile gas prices. The performance contracting operations, Energy Systems Group (ESG), contributed $3.0 million in 2003, an increase of $2.3 million over 2002. ESG has achieved 9 consecutive years of profitability. The Coal Mining group mines and sells coal to the Company's utility operations and to other third parties. The group also generates IRS Code Section 29 investment tax credits relating to the production of coal-based synthetic fuels through its 8.3% ownership interest in Pace Carbon Synfuels, LP (Pace Carbon). This group's net income for the fourth quarter was $3.6 million, as compared to $3.3 million for the same quarter last year. Net income for the year ended December 31, 2003, was $13.8 million, as compared to $12.2 million in 2002. The increase is principally due to increased synfuels-related fees and production, offset by poor mining conditions resulting in lower yields and increased amortization of mine development costs. Mining conditions improved late in the fourth quarter, and updated pricing arrangements became effective in 2004 for a portion of the sales to the company's generation units. Utility Infrastructure Services provides underground construction and repair to gas, water, electric and telecommunications companies primarily through its investment in Miller Pipeline. For the twelve months ended December 31, 2003, this group's loss was $0.8 million, primarily due to cutbacks of underground construction and repair projects by gas distribution customers. In the second half of 2003, Miller returned to profitability due to an increase in construction and repair projects as utilities began to return to historical expenditure levels. Broadband invests in communication services, such as cable television, high-speed Internet, and advanced local and long distance phone services. For the twelve months ended December 31, 2003, losses were $1.0 million. This reflects the impact of a $1.2 million loss on the sale of the Company's investment in First Mile, a small broadband operation in Indianapolis, Indiana. The company's remaining broadband investment, SIGECOM, located in Evansville, Indiana, provides service to over 29,000 customers, averaging nearly 3 revenue generating units per customer, and continues to increase its positive EBITDA. The Other Businesses Group includes a variety of wholly owned operations and investments. For the twelve months ended December 31, 2003, the Other Businesses Group losses, including operating expenses, were $5.1 million, as compared to losses of $7.4 million in 2002. In the fourth quarter of 2003, the Company sold IEIFS, a debt collection subsidiary, as part of a continued plan to narrow the nonregulated portfolio. The sale resulted in a gain of $1.2 million. Vectren's retail group (Source) began operations in 2001 and provides natural gas and other related products and services primarily in Ohio, serving over 70,000 customers opting for choice among energy providers. Source's losses for the year ended December 31, 2003 were $1.9 million, as compared to $2.6 million in 2002. Source expects to be profitable in late 2004. Corporate Corporate and other expenses were $2.0 million. Vectren provided over $1.7 million to various community and civic organizations in 2003. Regulatory Approvals Received As previously mentioned, in response to the impact of high gas costs, The Public Utilities Commission of Ohio authorized the recovery of bad debt expense in excess of the amount provided in base rates. Financial As a result of the long-term debt and equity financings completed in 2003, total long-term debt to permanent capitalization improved to 50.7% at December 31, 2003, as compared to 54.0% at December 31, 2002. In addition, short-term debt decreased to $273 million at December 31, 2003, as compared to $399 million at December 31, 2002. Vectren remains committed to improving its balance sheet and maintaining strong investment grade ratings. Vectren's utility debt is currently rated A- and Baa1 by Standard & Poor's and Moody's, respectively. Dividends Vectren's Board of Directors authorized a $0.285 dividend payable March 1, 2004, to shareholders of record at the close of business on February 13, 2004. In October, Vectren's Board of Directors approved a 3.6% increase in the quarterly dividend rate to $0.285 per share, a new indicated annual dividend rate of $1.14 per share. Vectren and predecessor companies have now increased its dividend for 44 consecutive years. 2004 Earnings Guidance As previously announced, fiscal 2004 earnings are expected to be in the range of $1.60 to $1.75 per share. The targeted range is based on several factors, including normal weather conditions, continued growth from the Company's complementary nonregulated businesses, managed cost control measures and securing rate relief at the company's regulated gas distribution operations. Please SEE ATTACHED unaudited schedules for additional financial information Live Webcast on January 29, 2004 Vectren Corporation officers will discuss fiscal year 2003 earnings results and provide an outlook for 2004 during a conference call for analysts scheduled at 2:30 p.m. EST (1:30 CST), Thursday, January 29, 2004. You are invited to listen to the live Webcast and view the supporting slides by accessing the Investor Relations link on Vectren's Web site at www.Vectren.com. Interested parties may also view the slide presentation and listen to the Webcast replay via Vectren's Web site beginning two hours after the completion of the Webcast. About Vectren 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 over 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 to customers throughout the surrounding region. These services include energy marketing; coal mining; utility infrastructure services; and broadband communication services. To learn more about Vectren, visit www.vectren.com. Safe Harbor for Forward Looking Statements This document contains forward-looking statements, which are based on management's beliefs and assumptions that derive from information currently known by management. Vectren wishes to caution readers that actual results could differ materially from those contained in this document. 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 as amended on Form 10-K/A filed with the Securities and Exchange Commission on June 18, 2003. Investor Contact Steven M. Schein, (812) 491-4209, sschein@vectren.com ------------------- Media Contact Jeffrey W. Whiteside, (812) 491-4205, jwhiteside@vectren.com ---------------------- ### VECTREN CORPORATION AND SUBSIDIARY COMPANIES CONSOLIDATED STATEMENTS OF INCOME (Thousands, except for share amounts) (Unaudited)
Three Months Twelve Months Ended December 31 Ended December 31 ------------------------------------------------------- 2003 2002 2003 2002 ----------------------- -------------------------- OPERATING REVENUE: Gas utility $ 323,584 $ 322,051 $ 1,112,313 $ 907,958 Electric utility 81,498 79,716 335,694 328,621 Energy services and other 48,874 34,186 139,703 287,191 --------- --------- ----------- ---------- Total operating revenues 453,956 435,953 1,587,710 1,523,770 --------- --------- ----------- ---------- OPERATING EXPENSES: Cost of gas sold 222,595 213,232 762,464 570,147 Fuel for electric generation 20,223 21,867 86,477 81,560 Purchased electric energy 3,686 3,712 16,172 16,831 Cost of energy services and other 37,176 26,270 103,737 249,417 Other operating 53,172 54,625 232,567 222,948 Depreciation and amortization 31,914 31,458 128,656 119,631 Taxes other than income taxes 14,952 13,535 57,007 51,902 --------- --------- ----------- ---------- Total operating expenses 383,718 364,699 1,387,080 1,312,436 --------- --------- ----------- ---------- OPERATING INCOME 70,238 71,254 200,630 211,334 OTHER INCOME: Equity in earnings of unconsolidated affiliates 5,719 582 12,169 9,082 Other - net 6,772 2,505 12,946 11,522 --------- --------- ----------- ---------- Total other income 12,491 3,087 25,115 20,604 --------- --------- ----------- ---------- INTEREST EXPENSE 18,892 19,693 75,586 78,481 --------- ------------ ----------- ---------- INCOME BEFORE INCOME TAXES 63,837 54,648 150,159 153,457 INCOME TAXES 19,673 11,861 38,831 38,883 MINORITY INTEREST IN SUBSIDIARY 12 386 66 514 PREFERRED DIVIDEND REQUIREMENT OF SUBSIDIARY 5 7 23 32 --------- --------- ----------- ---------- NET INCOME $ 44,147 $ 42,394 $ 111,239 $ 114,028 ========= ========= =========== ========== AVERAGE COMMON SHARES OUTSTANDING 75,344 67,533 70,623 67,582 DILUTED COMMON SHARES OUTSTANDING 75,578 67,806 70,820 67,842 EARNINGS PER SHARE OF COMMON STOCK BASIC: EARNINGS PER SHARE OF COMMON STOCK $ 0.59 $ 0.63 $ 1.58 $ 1.69 ========= ========= =========== ========== DILUTED: EARNINGS PER SHARE OF COMMON STOCK $ 0.58 $ 0.63 $ 1.57 $ 1.68 ========= ========= =========== ==========
VECTREN UTILITY HOLDINGS AND SUBSIDIARY COMPANIES CONSOLIDATED STATEMENTS OF INCOME (Thousands, except for share amounts) (Unaudited)
Three Months Twelve Months Ended December 31 Ended December 31 -------------------------------------------------- 2003 2002 2003 2002 ---------------------- ------------------------ OPERATING REVENUE: Gas utility $ 323,584 $ 322,051 $1,112,313 $ 907,958 Electric utility 81,498 79,716 335,694 328,621 Other 198 79 793 288 --------- --------- ---------- ---------- Total operating revenues 405,280 401,846 1,448,800 1,236,867 --------- --------- ---------- ---------- OPERATING EXPENSES: Cost of gas sold 222,595 213,232 762,464 570,764 Fuel for electric generation 20,223 21,867 86,477 81,560 Purchased electric energy 3,686 3,712 16,172 16,831 Other operating 47,072 49,454 208,936 198,545 Depreciation and amortization 29,149 29,760 117,948 110,686 Taxes other than income taxes 14,844 13,163 56,626 50,737 --------- --------- ---------- ---------- Total operating expenses 337,569 331,188 1,248,623 1,029,123 --------- --------- ---------- ---------- OPERATING INCOME 67,711 70,658 200,177 207,744 OTHER INCOME (EXPENSE): Equity in earnings (losses) of unconsolidated affiliates (20) (928) (473) (1,859) Other - net 3,806 603 4,762 7,142 --------- --------- ---------- ---------- Total other income (expense) 3,786 (325) 4,289 5,283 --------- --------- ---------- ---------- INTEREST EXPENSE 16,676 17,395 66,135 69,118 --------- --------- ---------- ---------- INCOME BEFORE INCOME TAXES 54,821 52,938 138,331 143,909 INCOME TAXES 20,316 15,530 52,744 46,772 PREFERRED DIVIDEND REQUIREMENT OF SUBSIDIARY 5 7 23 32 --------- --------- ---------- ---------- NET INCOME $ 34,500 $ 37,401 $ 85,564 $ 97,105 ========= ========= ========== ==========
VECTREN CORPORATION 3 Months 12 Months HIGHLIGHTS Ended December 31 Ended December 31 --------------------------------------- (millions, except per share amounts) --------------------------------------- (Unaudited) 2003 2002 2003 2002 - ------------------------------------------------------------------------------- Reported Earnings: Utility Group $ 34.5 $ 37.4 $ 85.6 $ 97.1 Non-regulated Group Energy Marketing and Services 6.2 3.9 20.7 15.0 Mining - 0.5 - 3.2 Synfuels related 3.6 2.8 13.8 9.0 ------ ------ ------ ------ Total Coal Mining 3.6 3.3 13.8 12.2 Utility Infrastructure Services 0.2 (0.8) (0.8) (1.2) Broadband 0.1 0.1 (1.0) 0.4 Other Businesses (0.1) (2.1) (5.1) (7.4) ------ ------ ------ ------ Total Non-regulated Group 10.0 4.4 27.6 19.0 Corporate and Other (0.4) 0.6 (2.0) (2.1) ------ ------ ------ ------ Vectren Consolidated $ 44.1 $ 42.4 $111.2 $114.0 ====== ====== ====== ====== Vectren Selected Highlights 12 months 12 months Ended Ended December 31 December 31 2003 2002 ----------- ----------- Dividends Paid (per common share, 12 months) $ 1.11 $ 1.07 Annualized Dividend $ 1.14 $ 1.10 Dividend Yield (at close) 4.6% 4.8% Dividend Payout Ratio 70.3% 63.3% Dividend to Book Value 8.0% 8.6% Return on Average Shareholders' Equity 11.5% 13.4% Book Value Per Share $14.17 $12.81 Market to Book Value (at close) 174% 180% Common Stock Prices (VVC - NYSE) High $26.13 $26.10 Low $19.70 $17.95 Close $24.65 $23.00 Price/Earnings Ratio (trailing) 15.6 13.6 Ratio of Total Debt to Total Capitalization 56% 62% Percent Internally Generated Funds - Utility Group 66% 75% Ratio of Earnings to Fixed Charges - SEC Method Consolidated 3.0 2.9 Utility Group 3.1 3.1
VECTREN CORPORATION SELECTED GAS DISTRIBUTION 3 Months 12 Months OPERATING STATISTICS Ended December 31 Ended December 31 ----------------------- ------------------------ 2003 2002 2003 2002 ---------- ---------- ----------- --------- (Unaudited) - ----------------------------------- GAS OPERATING REVENUES (Thousands): Residential $ 221,082 $ 216,340 $ 742,563 $ 607,106 Commercial 79,099 75,599 276,177 211,602 Contract 20,329 25,626 84,648 81,960 Miscellaneous Revenue 3,074 4,486 8,925 7,289 --------- --------- ----------- --------- $ 323,584 $ 322,051 $ 1,112,313 $ 907,958 ========= ========= =========== ========= GAS MARGIN (Thousands): Operating Revenues $ 323,584 $ 322,051 $ 1,112,313 $ 907,958 Cost of Gas 222,595 213,232 762,464 570,147 --------- --------- ----------- --------- Margin $ 100,989 $ 108,819 $ 349,849 $ 337,811 ========= ========= =========== ========= GAS SOLD & TRANSPORTED (MDth): Residential 24,559 29,174 83,210 80,726 Commercial 9,570 11,018 33,363 31,011 Contract 25,827 27,195 92,771 95,956 --------- --------- ----------- --------- 59,956 67,387 209,344 207,693 ========= ========= =========== ========= YEAR END GAS CUSTOMERS Residential 887,891 882,151 Commercial 80,292 80,483 Contract 4,047 4,127 --------- --------- 972,230 966,761 ========= ========= WEATHER AS A PERCENT OF NORMAL: Heating Degree Days 89% 105% 100% 94%
VECTREN CORPORATION SELECTED ELECTRIC 3 Months 12 Months OPERATING STATISTICS Ended December 31 Ended December 31 --------------------- ----------------------- 2003 2002 2003 2002 --------- --------- ---------- ---------- (Unaudited) - ---------------------------------------- ELECTRIC OPERATING REVENUES (Thousands): Residential $ 22,884 $ 21,493 $ 105,381 $ 108,123 Commercial 21,259 19,329 82,268 80,620 Industrial 24,417 23,639 92,746 90,370 Municipals 5,493 4,973 21,534 21,199 Miscellaneous Revenue 2,463 847 7,185 4,981 --------- --------- ---------- ---------- Total Retail 76,516 70,281 309,114 305,293 Net Wholesale Revenues 4,982 9,435 26,580 23,328 --------- --------- ---------- ---------- $ 81,498 $ 79,716 $ 335,694 $ 328,621 ========= ========= ========== ========== ELECTRIC MARGIN (Thousands): Operating Revenues $ 81,498 $ 79,716 $ 335,694 $ 328,621 Cost of Fuel & Purchased Power 23,909 25,579 102,649 98,391 --------- --------- ---------- ---------- Margin $ 57,589 $ 54,137 $ 233,045 $ 230,230 ========= ========= ========== ========== ELECTRICITY SOLD (MWh): Residential 297,497 302,621 1,441,706 1,567,215 Commercial 346,036 332,703 1,422,127 1,467,780 Industrial 564,979 644,094 2,416,885 2,516,335 Municipals 151,362 141,452 600,924 617,685 Miscellaneous Sales 4,319 5,383 17,210 18,117 --------- --------- ---------- ---------- Total Retail 1,364,193 1,426,253 5,898,852 6,187,132 Wholesale 1,265,952 2,414,193 4,305,190 10,711,614 --------- --------- ---------- ---------- 2,630,145 3,840,446 10,204,042 16,898,746 ========= ========= ========== ========== YEAR END ELECTRIC CUSTOMERS Residential 117,868 116,979 Commercial 17,054 16,881 Industrial 155 174 All Others 21 23 --------- --------- 135,098 134,057 ========= ========= WEATHER AS A PERCENT OF NORMAL: Heating Degree Days 89% 105% 100% 94% Cooling Degree Days 50% 143% 81% 123%
EX-99.2 SAFE HARBOR 4 vvc_earnings-ex99x2.txt SAFE HARBOR STATEMENT EX-99.2 Cautionary Statement for Purposes of the "Safe Harbor" provisions of the Private Securities Litigation Reform Act of 1995. A "safe harbor" for forward-looking statements is provided by the Private Securities Litigation Reform Act of 1995 (Reform Act of 1995). The Reform Act of 1995 was adopted to encourage such forward-looking statements without the threat of litigation, provided those statements are identified as forward-looking and are accompanied by meaningful cautionary statements identifying important factors that could cause the actual results to differ materially from those projected in the statement. Forward-looking statements have been and will be made in written documents and oral presentations of Vectren Corporation and its subsidiaries. Such statements are based on management's beliefs, as well as assumptions made by and information currently available to management. When used in Vectren Corporation and its subsidiaries' documents or oral presentations, the words "believe," "anticipate," "endeavor," "estimate," "expect," "objective," "projection," "forecast," "goal," and similar expressions are intended to identify forward-looking statements. In addition to any assumptions and other factors referred to specifically in connection with such forward-looking statements, factors that could cause Vectren Corporation and its subsidiaries' actual results to differ materially from those contemplated in any forward-looking statements included, among others, the following: o Factors affecting utility operations such as unusual weather conditions; catastrophic weather-related damage; unusual maintenance or repairs; unanticipated changes to fossil fuel costs; unanticipated changes to gas supply costs, or availability due to higher demand, shortages, transportation problems or other developments; environmental or pipeline incidents; transmission or distribution incidents; unanticipated changes to electric energy supply costs, or availability due to demand, shortages, transmission problems or other developments; or electric transmission or gas pipeline system constraints. o Increased competition in the energy environment including effects of industry restructuring and unbundling. o Regulatory factors such as unanticipated changes in rate-setting policies or procedures, recovery of investments and costs made under traditional regulation, and the frequency and timing of rate increases. o Financial or regulatory accounting principles or policies imposed by the Financial Accounting Standards Board; the Securities and Exchange Commission; the Federal Energy Regulatory Commission; state public utility commissions; state entities which regulate electric and natural gas transmission and distribution, natural gas gathering and processing, electric power supply; and similar entities with regulatory oversight. o Economic conditions including the effects of an economic downturn, inflation rates, and monetary fluctuations. o Changing market conditions and a variety of other factors associated with physical energy and financial trading activities including, but not limited to, price, basis, credit, liquidity, volatility, capacity, interest rate, and warranty risks. o The performance of projects undertaken by the Company's nonregulated businesses and the success of efforts to invest in and develop new opportunities, including but not limited to, the realization of Section 29 income tax credits and the Company's coal mining, gas marketing, and broadband strategies. o Direct or indirect effects on our business, financial condition or liquidity resulting from a change in our credit rating, changes in interest rates, and/or changes in market perceptions of the utility industry and other energy-related industries. o Employee workforce factors including changes in key executives, collective bargaining agreements with union employees, or work stoppages. o Legal and regulatory delays and other obstacles associated with mergers, acquisitions, and investments in joint ventures. o Costs and other effects of legal and administrative proceedings, settlements, investigations, claims, and other matters, including, but not limited to, those described in Management's Discussion and Analysis of Results of Operations and Financial Condition. o Changes in federal, state or local legislature requirements, such as changes in tax laws or rates, environmental laws and regulations. Vectren Corporation and its subsidiaries undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of changes in actual results, changes in assumptions, other factors affecting such statements. -----END PRIVACY-ENHANCED MESSAGE-----