-----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, H5VDATWzYQtLKJl+BLnGeEostuzmhCTdX810/pfxtqMHX4SvO+iziDyac+WYmDIG sgP/MmfaNW1Jk0O+ul7kxA== 0001096385-04-000049.txt : 20040429 0001096385-04-000049.hdr.sgml : 20040429 20040429092952 ACCESSION NUMBER: 0001096385-04-000049 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20040331 ITEM INFORMATION: FILED AS OF DATE: 20040429 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: 04762599 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: 04762598 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: 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: 04762597 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: 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: 04762600 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 vvc8k_earnings-mar04.txt VECTREN CORP 1ST QTR EARNINGS RELEASE SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934 Date of Report (Date of earliest event reported) April 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 1-6494 Indiana Gas Company, Inc. 35-0793669 (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 Former name or address, if changed since last report: N/A 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 April 27, 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 March 31, 2004. 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 furnishing 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. These cautionary statements are attached as Exhibit 99-2. 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. INDIANA GAS COMPANY, INC SOUTHERN INDIANA GAS AND ELECTRIC COMPANY April 28, 2004 By: /s/ M. Susan Hardwick ----------------------------- M. Susan Hardwick Vice President and Controller INDEX TO EXHIBITS The following Exhibits are furnished as part of this Report to the extent described in Item 12: Exhibit Number Description 99-1 Press Release - Vectren Corporation Reports First Quarter 2004 Results 99-2 Cautionary Statement for Purposes of the "Safe Harbor" Provisions of the Private Securities Litigation Reform Act of 1995 EX-99.1 PRESS RELEAS 2 vvc_exh99-1earnings.txt PRESS RELEASE FOR 1ST QTR EARNINGS EX 99-1 News Release Vectren Corporation P.O. Box 209 Evansville, IN 47702-0209 FOR IMMEDIATE RELEASE April 27, 2004 Vectren Corporation Reports First Quarter 2004 Results Evansville, Indiana - Vectren Corporation (NYSE:VVC) today reported first quarter 2004 net income of $54.8 million, compared to net income of $55.7 million for the three months ended March 31, 2003. The slight decline in net income was primarily the result of weather 10% warmer than the prior year, partially offset by continued growth in the Company's nonregulated businesses. Earnings per share were $0.73 for the quarter ended March 31, 2004 compared to $0.82 per share a year ago. Of the reduction in earnings per share, $0.01 per share was due to the decline in net income and $0.08 per share was attributable to an increase of 7.7 million in weighted average shares outstanding resulting from the equity offering in August 2003. Said Niel C. Ellerbrook, Chairman, President and CEO, "We are pleased with our first quarter results, despite the warmer than normal weather impacting our heat sensitive throughput. Electric sales to large volume customers were up, suggesting the beginning of economic recovery in our service territory, and our nonregulated group has continued to grow its contribution to consolidated earnings. The decline in earnings per share was the expected result of the very successful common stock offering completed last August, which helped strengthen the balance sheet and credit ratings." Specific Highlights for the Quarter o Milder weather negatively impacted the Utility Group results in the first quarter of 2004, compared to the same quarter last year, by an estimated $5.0 million after tax. The weather impact was partially offset by increased margin from the recovery of NOx related expenditures and increased large electric customer margins, signaling some economic recovery in the region. o The Nonregulated Group performed well during the quarter compared to last year due largely to a strong performance in the Mining Group and the gain from the harvesting of an energy related investment, offset largely by a write down of its investment in certain broadband investments. Discussion of Results: Utility Group Utility Group earnings for the first quarter 2004 were $44.7 million as compared to $47.3 million for the same quarter last year. The $2.6 million decline was primarily due to mild heating weather, approximately 10% warmer in 2004 compared to 2003, which decreased results approximately $5.0 million after tax. The impact of the unfavorable weather was partially offset by increased recovery of NOx expenditures and related operating expenses. The 2003 first quarter included the $1.2 million after tax write down of the Company's investment in BABB International. Gas utility margin for the first quarter was $139.5 million as compared to $144.4 million for the same quarter last year. The $4.9 million decrease was primarily due to an estimated $7.7 million impact for warmer weather, partially offset by customer growth and increasing consumption. Electric utility margin for the first quarter was $61.5 million as compared to $58.2 million for the same quarter last year. The recovery of incremental NOx expenditures and related operating expenses added margin of $3.6 million. Margins from large customers increased $2.1 million quarter over quarter, reflecting some economic recovery. Offsetting those increases, warmer than normal weather negatively impacted electric heating load in the quarter, compared to last year, by an estimated $0.7 million. Net wholesale margin from marketing generation capacity in excess of that needed to serve native load and firm wholesale customers was $7.0 million, a decrease of $1.1 million due largely to market conditions and price volatility this quarter, compared to the same quarter last year. Other operating expenses and depreciation expense for the first quarter increased $3.5 million and $0.8 million, respectively, compared to 2003. The increases resulted from greater operating expenses associated with the NOx equipment, other operating expenses such as labor and benefit costs and depreciation expense on plant additions. Other income (expense) increased $2.2 million compared to 2003, attributable primarily to the $2.0 million pre-tax charge taken against the Company's investment in BABB in the first quarter of 2003. Discussion of Results: Nonregulated Group (all amounts following in this section are after tax) Nonregulated earnings for the first quarter 2004 were $10.6 million as compared to $8.5 million for the same quarter last year. The $2.1 million increase was principally due to increased operating results from Coal Mining and the $5.3 million after tax gain resulting from the sale of an investment held by one of the Company's equity method investments, offset largely by the $4.5 million after tax charge related to the write down of the company's investments in certain broadband investments. Energy Marketing and Services generated net income of $7.0 million for the first quarter 2004 as compared to $8.1 million in 2003. Gas marketing operations, performed through ProLiance Energy, LLC, contributed $6.9 million in 2004 as compared to $8.5 million in 2003. While a strong first quarter 2004 performance, the year over year decrease was principally due to higher earnings in 2003 resulting from unprecedented volatility in 2003 gas prices. The performance contracting operations, performed through Energy Systems Group, LLC, had net losses of $0.5 million in 2004, compared to break even results in 2003. The decrease was principally due to timing of projects year over year, and ESG has now replaced nearly 200% of the backlog utilized in the quarter. Vectren Source contributed $0.6 million in 2004, an increase of $0.7 million over 2003, due to increased customers and margins per unit of throughput. Source has grown its customer count to almost 100,000, nearly double over the same period in 2003. Coal Mining net income for the three months ended March 31, 2004, was $3.6 million, as compared to $2.3 million in 2003. Synfuel-related results, which include earnings from Pace Carbon and synfuel processing fees, contributed $2.9 million in earnings in 2004, as compared to $2.3 million in 2003, due to greater volumes. Mining operations increased from breakeven in 2003 to $0.7 million in 2004 due to improved pricing and better mining conditions. Utility Infrastructure Services provides underground construction and repair to gas, water, electric, and telecommunications companies primarily through its investment in Miller Pipeline. Infrastructure's loss for the quarter was $0.6 million, an improvement of $0.4 million from 2003. The group returned to profitability in late 2003, but first quarter results are often negatively impacted by the seasonality of construction activities. The Company is a minority investor in SIGECOM Holdings, Inc., located in Evansville, Indiana. SIGECOM provides broadband service to over 29,000 customers, averaging nearly 3 revenue generating units per customer and continues to increase its positive EBITDA. In the Company's continued evaluation of the industry and the strategic alternatives for its broadband investments, the Company performed a valuation of its SIGECOM investment. Additionally, while franchises are still in place for the Indianapolis, Indiana and Dayton, Ohio markets and both markets are excellent broadband prospects, it is unlikely that Vectren would be involved in future expansion of those markets. As a result, the Company recorded impairment charges for its investment in SIGECOM and its franchises in the Indianapolis and Dayton markets, totaling $3.6 million after tax. The Company also wrote down its investment in inventory by $0.9 million after tax at Vectren Communications Services as a result of current expectations about realizability in today's market. Vectren Communications Services results are reported in Other Businesses. The Other Business Group reported net income of $4.0 million in 2004, as compared to losses of $0.9 million in 2003. In March 2004, a component of the Other Business group, Haddington Energy Partners, an equity method investment, sold their investment in SAGO Energy, LLC for cash. SAGO is an independent, full service, midstream company providing natural gas producers with processing, gathering, marketing, and other related services, with assets in Texas and Louisiana. The Company recognized its portion of the pretax gain totaling $9.0 million, or $5.3 million after tax. Financial At March 31, 2004, total long-term debt to permanent capitalization improved to 49%, as compared to 52% at March 31, 2003. In addition, short-term debt decreased to $129 million at March 31, 2004, as compared to $380 million at March 31, 2003. 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. 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, continued 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 April 29, 2004 Vectren Corporation officers will discuss First Quarter 2004 earnings results and provide an outlook for 2004 during a conference call for analysts scheduled at 2:30 p.m. EDT (1:30 CDT), Thursday, April 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 midwest and southeast. These include gas marketing and related services; coal production and sales; 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 filed with the Securities and Exchange Commission on February 26, 2004. 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 March 31 Ended March 31 -------------------------------------------- 2004 2003 2004 2003 -------------------- ---------------------- OPERATING REVENUE: Gas utility $ 505,156 $ 509,191 $1,108,278 $1,059,314 Electric utility 88,797 83,541 340,950 341,605 Energy services and other 51,407 33,601 157,509 175,273 --------- --------- ---------- ---------- Total operating revenues 645,360 626,333 1,606,737 1,576,192 --------- --------- ---------- ---------- OPERATING EXPENSES: Cost of gas sold 365,636 364,776 763,324 704,988 Fuel for electric generation 22,860 20,752 88,585 84,524 Purchased electric energy 4,456 4,580 16,048 17,902 Cost of energy services and other 40,004 25,535 118,206 140,169 Other operating 68,607 62,572 239,764 227,943 Depreciation and amortization 32,512 31,402 129,766 122,007 Taxes other than income taxes 22,660 22,035 57,632 55,605 --------- --------- ---------- ---------- Total operating expenses 556,735 531,652 1,413,325 1,353,138 --------- --------- ---------- ---------- OPERATING INCOME 88,625 94,681 193,412 223,054 OTHER INCOME: Equity in earnings of unconsolidated affiliates 16,881 8,806 20,244 14,824 Other - net (5,641) (1,148) 8,453 8,184 --------- --------- ---------- ---------- Total other income 11,240 7,658 28,697 23,008 --------- --------- ---------- ---------- INTEREST EXPENSE 19,342 18,876 76,052 77,513 --------- --------- ---------- ---------- INCOME BEFORE INCOME TAXES 80,523 83,463 146,057 168,549 INCOME TAXES 25,670 27,727 35,612 43,612 MINORITY INTEREST IN SUBSIDIARY 7 27 46 750 PREFERRED DIVIDEND REQUIREMENT OF SUBSIDIARY 6 9 20 34 --------- --------- ---------- ---------- NET INCOME $ 54,840 $ 55,700 $ 110,379 $ 124,153 ========= ========= ========== ========== AVERAGE COMMON SHARES OUTSTANDING 75,472 67,695 72,549 67,621 DILUTED COMMON SHARES OUTSTANDING 75,847 67,842 72,846 67,888 EARNINGS PER SHARE OF COMMON STOCK BASIC: EARNINGS PER SHARE OF COMMON STOCK $ 0.73 $ 0.82 $ 1.52 $ 1.84 ========= ========= ========== ========== EARNINGS PER SHARE OF COMMON STOCK $ 0.72 $ 0.82 $ 1.52 $ 1.83 ========= ========= ========== ==========
VECTREN UTILITY HOLDINGS AND SUBSIDIARY COMPANIES CONSOLIDATED STATEMENTS OF INCOME (Thousands, except for share amounts) (Unaudited) Three Months Twelve Months Ended March 31 Ended March 31 ----------------------------------------------- 2004 2003 2004 2003 --------------------- ----------------------- OPERATING REVENUE: Gas utility $ 505,156 $ 509,191 $1,108,278 $1,059,314 Electric utility 88,797 83,541 340,950 341,605 Other 281 198 876 436 --------- --------- ---------- ---------- Total operating revenues 594,234 592,930 1,450,104 1,401,355 --------- --------- ---------- ---------- OPERATING EXPENSES: Cost of gas sold 365,636 364,776 763,324 705,291 Fuel for electric generation 22,860 20,752 88,585 84,524 Purchased electric energy 4,456 4,580 16,048 17,902 Other operating 60,098 56,603 213,593 203,891 Depreciation and amortization 29,611 28,762 118,797 112,677 Taxes other than income taxes 22,343 21,718 57,251 54,395 --------- --------- ---------- ---------- Total operating expenses 505,004 497,191 1,257,598 1,178,680 --------- --------- ---------- ---------- OPERATING INCOME 89,230 95,739 192,506 222,675 OTHER INCOME (EXPENSE): Equity in earnings (losses) of unconsolidated affiliates 168 (504) 199 (2,251) Other - net (43) (1,507) 6,226 3,551 --------- --------- ---------- ---------- Total other income (expense) 125 (2,011) 6,425 1,300 --------- --------- ---------- ---------- INTEREST EXPENSE 16,959 16,516 66,578 68,087 --------- --------- ---------- ---------- INCOME BEFORE INCOME TAXES 72,396 77,212 132,353 155,888 INCOME TAXES 27,733 29,895 49,420 53,478 PREFERRED DIVIDEND REQUIREMENT OF SUBSIDIARY 6 9 20 34 --------- --------- ---------- ---------- NET INCOME $ 44,657 $ 47,308 $ 82,913 $ 102,376 ========= ========= ========== ==========
VECTREN CORPORATION 3 Months 12 Months HIGHLIGHTS Ended March 31 Ended March 31 ------------------------------------------- (millions, except per share amounts) ------------------------------------------- (Unaudited) 2004 2003 2004 2003 - ----------------------------------------------------------------------------------------- Reported Earnings: Utility Group $ 44.7 $ 47.3 $ 83.0 $ 102.4 Non-regulated Group Energy Marketing and Services 7.0 8.1 14.2 15.9 Mining 0.7 - 0.3 2.2 Synfuels related 2.9 2.3 14.0 9.7 ------ ------ ------ ------- Total Coal Mining 3.6 2.3 14.3 11.9 Utility Infrastructure Services (0.6) (1.0) (0.4) (1.8) Broadband (3.4) - (4.5) 0.3 Other Businesses 4.0 (0.9) 6.2 (3.3) ------ ------ ------ ------- Total Non-regulated Group 10.6 8.5 29.8 23.0 Corporate and Other (0.5) (0.1) (2.4) (1.3) ------ ------ ------ ------- Vectren Consolidated $ 54.8 $ 55.7 $110.4 $ 124.1 ====== ====== ====== =======
Vectren Selected Highlights 12 months 12 months Ended Ended March 31 March 31 2004 2003 -------- ---------- Dividends Paid (per common share, 12 months) $ 1.12 $ 1.08 Annualized Dividend $ 1.14 $ 1.10 Dividend Yield (at close) 4.5% 5.1% Dividend Payout Ratio 73.7% 58.7% Dividend to Book Value 7.8% 8.2% Return on Average Shareholders' Equity 10.9% 13.9% Book Value Per Share $14.63 $13.47 Market to Book Value (at close) 169% 160% Common Stock Prices (VVC - NYSE) High $26.13 $26.10 Low $21.05 $17.95 Close $24.67 $21.51 Price/Earnings Ratio (trailing) 16.2 11.7 Ratio of Total Debt to Total Capitalization 53% 60% Percent Internally Generated Funds - Utility Group 58% 78% Ratio of Earnings to Fixed Charges - SEC Method Consolidated 2.9 3.0 Utility Group 3.0 3.3
VECTREN CORPORATION 3 Months 12 Months SELECTED GAS DISTRIBUTION Ended March 31 Ended March 31 OPERATING STATISTICS ---------------------- ------------------------- 2004 2003 2004 2003 (Unaudited) --------- --------- ---------- ----------- - ----------------------------------- GAS OPERATING REVENUES (Thousands): Residential $ 341,092 $ 345,617 $ 738,038 $ 705,409 Commercial 126,456 127,218 275,415 256,722 Contract 32,966 33,761 83,853 88,367 Miscellaneous Revenue 4,642 2,595 10,972 8,816 --------- --------- ---------- ----------- $ 505,156 $ 509,191 $1,108,278 $ 1,059,314 ========= ========= ========== =========== GAS MARGIN (Thousands): Residential $ 90,368 $ 94,688 $ 221,145 $ 227,084 Commercial 28,111 29,725 63,290 70,645 Contract 18,050 18,511 51,859 51,831 Miscellaneous 2,991 1,491 8,660 4,766 --------- --------- ---------- ----------- $ 139,520 $ 144,415 $ 344,954 $ 354,326 ========= ========= ========== =========== GAS SOLD & TRANSPORTED (MDth): Residential 41,362 44,556 80,016 88,923 Commercial 15,880 17,218 32,025 34,894 Contract 29,221 30,324 91,668 97,379 --------- --------- ---------- ----------- 86,463 92,098 203,709 221,196 ========= ========= ========== =========== AVERAGE GAS CUSTOMERS Residential 891,153 885,084 875,621 871,183 Commercial 80,453 80,675 79,256 79,541 Contract 4,065 4,134 4,057 4,143 --------- --------- ---------- ----------- 975,671 969,893 958,934 954,867 ========= ========= ========== =========== WEATHER AS A PERCENT OF NORMAL: Heating Degree Days 96% 107% 94% 105%
VECTREN CORPORATION SELECTED ELECTRIC 3 Months 12 Months OPERATING STATISTICS Ended March 31 Ended March 31 ----------------------- ----------------------- 2004 2003 2004 2003 ---------- ---------- ---------- ---------- (Unaudited) - ---------------------------------------- ELECTRIC OPERATING REVENUES (Thousands): Residential $ 27,494 $ 25,996 $ 106,879 $ 110,959 Commercial 20,136 18,765 83,639 81,747 Industrial 25,518 21,051 97,213 91,272 Municipals 5,439 4,823 22,150 21,378 Miscellaneous Revenue 1,465 1,487 7,163 5,535 ---------- ---------- ---------- ---------- Total Retail 80,052 72,122 317,044 310,891 Net Wholesale Revenues 8,745 11,419 23,906 30,714 ---------- ---------- ---------- ---------- $ 88,797 $ 83,541 $ 340,950 $ 341,605 ========== ========== ========== ========== ELECTRIC MARGIN (Thousands): Residential $ 21,055 $ 19,781 $ 83,224 $ 87,117 Commercial 14,409 13,513 60,006 59,923 Industrial 14,446 12,335 55,644 54,696 Municipals 3,102 3,014 13,203 12,359 Miscellaneous 1,430 1,428 7,062 5,350 ---------- ---------- ---------- ---------- Total Retail 54,442 50,071 219,139 219,445 ---------- ---------- ---------- ---------- Net Wholesale Margin 7,039 8,138 17,178 19,734 ---------- ---------- ---------- ---------- $ 61,481 $ 58,209 $ 236,317 $ 239,179 ========== ========== ========== ========== ELECTRICITY SOLD (MWh): Residential 377,550 394,815 1,424,441 1,608,791 Commercial 330,943 333,846 1,419,224 1,479,789 Industrial 635,269 553,911 2,498,243 2,489,555 Municipals 152,227 133,812 619,339 616,712 Miscellaneous Sales 3,661 5,114 15,757 18,424 ---------- ---------- ---------- ---------- Total Retail 1,499,650 1,421,498 5,977,004 6,213,271 Wholesale 511,314 1,448,350 3,368,154 9,692,145 ---------- ---------- ---------- ---------- 2,010,964 2,869,848 9,345,158 15,905,416 ========== ========== ========== ========== AVERAGE ELECTRIC CUSTOMERS Residential 118,248 117,057 117,378 116,449 Commercial 17,040 16,934 17,009 17,030 Industrial 155 176 163 175 All Others 21 22 21 23 ---------- ---------- ---------- ---------- 135,464 134,189 134,571 133,677 ========== ========== ========== ========== WEATHER AS A PERCENT OF NORMAL: Heating Degree Days 96% 107% 94% 105% Cooling Degree Days 81% 123%
EX-99.2 SAFE HARBOR 3 vvc_exh99-2safeharbor.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 periodic filings made with Commission by Vectren Corporation and its subsidiaries, Vectren Utility Holdings, Inc., Indiana Gas Company, Inc., and Southern Indiana Gas and Electric Company. 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-----