EX-99 4 ipl8k0402exhibit99pt2.txt EXHIBIT 99.2 EXHIBIT 99.2 INTERSTATE POWER AND LIGHT COMPANY UNAUDITED PRO FORMA COMBINED FINANCIAL STATEMENTS The unaudited pro forma combined financial statements for the surviving company, Interstate Power and Light Company (IP&L), combine the historical consolidated balance sheets and statements of income of IES Utilities Inc. (IESU) and Interstate Power Company (IPC) as adjusted by various balance sheet pro forma adjustments identified in Note 1. Pro forma income statement adjustments were not required. We have included all material adjustments known to us at this time which impact the reporting periods shown. These pro forma combined financial statements set forth the restated combined financial data that will be presented for future comparative financial data for the merged company. These statements are prepared on the basis of accounting for the merger as a common control merger and are based on the assumptions set forth in the notes hereto. The following information is not necessarily indicative of the financial position or operating results that would have occurred had the merger been consummated on the date, or at the beginning of the periods, for which the merger is being given effect nor is it necessarily indicative of future operating results or financial position.
INTERSTATE POWER AND LIGHT COMPANY UNAUDITED PRO FORMA COMBINED BALANCE SHEET December 31, 2001 (in thousands) Pro Forma Adjustments Pro Forma IESU IPC (See Note 1) Combined ----------------------------------------------------------------- ASSETS Property, plant and equipment: Electric plant in service $2,368,520 $975,668 $- $3,344,188 Gas plant in service 234,178 82,435 - 316,613 Steam plant in service 59,452 - - 59,452 Other plant in service 166,049 16,819 - 182,868 Accumulated depreciation (1,490,573) (556,183) - (2,046,756) ----------------------------------------------------------------- Net plant 1,337,626 518,739 - 1,856,365 Construction work in progress 49,263 23,978 - 73,241 Leased nuclear fuel, net of amortization 37,407 - - 37,407 Other, net 6,435 268 - 6,703 ----------------------------------------------------------------- 1,430,731 542,985 - 1,973,716 ----------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------------- Current assets: Cash and temporary cash investments 7,299 1,663 - 8,962 Temporary cash investments with associated companies 1,939 - (1,939) - Accounts receivable: Customer, net 16,233 3,717 - 19,950 Associated companies 2,803 2,074 (159) 4,718 Other, net 20,303 5,194 - 25,497 Income tax refunds receivable 6,412 - - 6,412 Production fuel, at average cost 12,474 19,609 - 32,083 Materials and supplies, at average cost 24,223 4,898 - 29,121 Gas stored underground, at average cost 15,694 2,753 - 18,447 Regulatory assets 7,851 4,644 - 12,495 Prepayments and other 2,901 4,133 (1,974) 5,060 ----------------------------------------------------------------- 118,132 48,685 (4,072) 162,745 ----------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------------- Investments: Nuclear decommissioning trust funds 117,159 - - 117,159 Other 8,363 6,794 - 15,157 ----------------------------------------------------------------- 125,522 6,794 - 132,316 ----------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------------- Other assets: Regulatory assets 94,113 37,996 - 132,109 Deferred charges and other 9,797 21,306 - 31,103 ----------------------------------------------------------------- 103,910 59,302 - 163,212 ----------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------------- Total assets $1,778,295 $657,766 ($4,072) $2,431,989 ================================================================= ---------------------------------------------------------------------------------------------------------------------------- The accompanying Notes to Unaudited Pro Forma Combined Balance Sheet are an integral part of this statement.
INTERSTATE POWER AND LIGHT COMPANY UNAUDITED PRO FORMA COMBINED BALANCE SHEET (Continued) December 31, 2001 (in thousands) Pro Forma Adjustments Pro Forma IESU IPC (See Note 1) Combined ----------------------------------------------------------------- CAPITALIZATION AND LIABILITIES Capitalization: Common stock $33,427 $34,221 ($34,221) $33,427 Additional paid-in capital 279,612 108,628 34,221 422,461 Retained earnings 279,185 89,018 - 368,203 Accumulated other comprehensive loss - (2,131) - (2,131) ----------------------------------------------------------------- Total common equity 592,224 229,736 - 821,960 Cumulative preferred stock, not mandatorily redeemable 18,320 10,819 - 29,139 Cumulative preferred stock, mandatorily redeemable - 24,850 - 24,850 Long-term debt (excluding current portion) 694,472 165,596 - 860,068 ----------------------------------------------------------------- 1,305,016 431,001 - 1,736,017 ----------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------------- Current liabilities: Current maturities and sinking funds 560 - - 560 Capital lease obligations 15,278 14 - 15,292 Notes payable to associated companies - 39,986 (1,939) 38,047 Accounts payable 40,115 15,134 - 55,249 Accounts payable to associated companies 25,777 12,637 (159) 38,255 Accrued interest 12,179 2,536 - 14,715 Accrued taxes 53,380 17,367 - 70,747 Other 31,417 6,981 (1,974) 36,424 ----------------------------------------------------------------- 178,706 94,655 (4,072) 269,289 ----------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------------- Other long-term liabilities and deferred credits: Accumulated deferred income taxes 190,821 77,189 - 268,010 Accumulated deferred investment tax credits 22,698 11,793 - 34,491 Environmental liabilities 24,350 13,856 - 38,206 Pension and other benefit obligations 24,277 16,296 - 40,573 Capital lease obligations 22,129 42 - 22,171 Other 10,298 12,934 - 23,232 ----------------------------------------------------------------- 294,573 132,110 - 426,683 ----------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------------- Total capitalization and liabilities $1,778,295 $657,766 ($4,072) $2,431,989 ================================================================= ---------------------------------------------------------------------------------------------------------------------------- The accompanying Notes to Unaudited Pro Forma Combined Balance Sheet are an integral part of this statement.
INTERSTATE POWER AND LIGHT COMPANY NOTES TO UNAUDITED PRO FORMA COMBINED BALANCE SHEET AS OF DECEMBER 31, 2001 1. Pro Forma Adjustments
Merged Company Common Inter- Adjustment Stock Company Clause Utility Total Adjustment Transactions Balances Money Pool Pro Forma (Note 1 (a)) (Note 1 (b)) (Note 1 (c)) (Note 1(d)) Adjustments -------------- -------------- -------------- ------------- ------------- (in thousands) ASSETS Current assets: Temporary cash investments with associated companies $- $- $- ($1,939) ($1,939) Accounts receivable from associated companies - (159) - - (159) Prepayments and other - - (1,974) - (1,974) -------------- -------------- -------------- ------------- ------------- Total current assets - (159) (1,974) (1,939) (4,072) -------------- -------------- -------------- ------------- ------------- Total assets $- ($159) ($1,974) ($1,939) ($4,072) ============== ============== ============== ============= ============= CAPITALIZATION AND LIABILITIES Capitalization: Common equity: Common stock ($34,221) $- $- $- ($34,221) Additional paid-in capital 34,221 - - - 34,221 -------------- -------------- -------------- ------------- ------------- Total common equity - - - - - -------------- -------------- -------------- ------------- ------------- Current liabilities: Notes payable to associated companies - - - (1,939) (1,939) Accounts payable to associated companies - (159) - - (159) Other - - (1,974) - (1,974) -------------- -------------- -------------- ------------- ------------- Total current liabilities - (159) (1,974) (1,939) (4,072) -------------- -------------- -------------- ------------- ------------- Total capitalization and liabilities $- ($159) ($1,974) ($1,939) ($4,072) ============== ============== ============== ============= =============
(a) Merged Company Common Stock Adjustment As provided in the Merger Agreement, all issued and outstanding shares of IPC common stock were dissolved upon consummation of the merger. The pro forma adjustment to common equity restates the common stock account to equal the $2.50 par value of IESU's 13,370,788 shares of common stock and reclassifies the excess to additional paid-in capital. (b) Intercompany Transactions At December 31, 2001, intercompany receivables and payables between IESU and IPC during the period presented were eliminated from the pro forma balance sheet. (c) Adjustment Clause Balances An adjustment was needed to offset IPC's Adjustment Clause debit balance against IESU's Adjustment Clause credit balance. (d) Utility Money Pool An adjustment was needed to offset IESU's investments in the money pool against IPC's borrowings from the money pool.
INTERSTATE POWER AND LIGHT COMPANY UNAUDITED PRO FORMA COMBINED STATEMENT OF INCOME FOR THE YEAR ENDED DECEMBER 31, 2001 (in thousands) Pro Forma IESU IPC Combined --------------------------------------------------- Operating revenues: Electric utility $700,926 $302,180 $1,003,106 Gas utility 220,269 60,745 281,014 Steam 32,130 - 32,130 --------------------------------------------------- 953,325 362,925 1,316,250 --------------------------------------------------- ----------------------------------------------------------------------------------------------------------------- Operating expenses: Electric and steam production fuels 133,237 56,730 189,967 Purchased power 127,588 58,272 185,860 Cost of gas sold 164,747 42,341 207,088 Other operation and maintenance 231,474 91,170 322,644 Depreciation and amortization 110,496 37,998 148,494 Taxes other than income taxes 44,705 18,078 62,783 --------------------------------------------------- 812,247 304,589 1,116,836 --------------------------------------------------- ----------------------------------------------------------------------------------------------------------------- Operating income 141,078 58,336 199,414 --------------------------------------------------- ----------------------------------------------------------------------------------------------------------------- Interest expense and other: Interest expense 52,286 15,863 68,149 Allowance for funds used during construction (5,634) (757) (6,391) Miscellaneous, net (12,770) (607) (13,377) --------------------------------------------------- 33,882 14,499 48,381 --------------------------------------------------- ----------------------------------------------------------------------------------------------------------------- Income before income taxes 107,196 43,837 151,033 --------------------------------------------------- ----------------------------------------------------------------------------------------------------------------- Income taxes 36,292 16,675 52,967 --------------------------------------------------- ----------------------------------------------------------------------------------------------------------------- Net income 70,904 27,162 98,066 --------------------------------------------------- ----------------------------------------------------------------------------------------------------------------- Preferred dividend requirements 914 2,496 3,410 --------------------------------------------------- ----------------------------------------------------------------------------------------------------------------- Earnings available for common stock $69,990 $24,666 $94,656 =================================================== -----------------------------------------------------------------------------------------------------------------