EX-99.2 2 0002.txt WICOR FINANCIAL STATEMENTS - 3 MO ENDED 3/31/00 Exhibit 99.2
WICOR, INC. Consolidated Statements of Operation (Unaudited) (Amounts in Thousands, Except Per Share Data) Three Months Ended March 31 --------------------------- 2000 1999 -------- -------- Operating Revenues: Energy $197,003 $187,182 Manufacturing 142,238 117,059 -------- -------- 339,241 304,241 -------- -------- Operating Costs and Expenses: Cost of gas sold 120,745 107,579 Manufacturing cost of sales 100,374 82,999 Operation and maintenance 57,938 51,975 Depreciation and amortization 9,676 9,092 Taxes, other than income taxes 2,338 2,504 -------- -------- 291,071 254,149 -------- -------- Operating Income 48,170 50,092 -------- -------- Interest Expense (5,139) (4,457) Merger Costs (447) - Other Income, net (414) 770 -------- -------- Income Before Income Taxes 42,170 46,405 Income Tax Provision 16,182 17,539 -------- -------- Net Earnings $25,988 $28,866 ======== ======== Per Share of Common Stock: Basic earnings $0.69 $0.77 Diluted earnings $0.68 $0.77 Cash Dividends paid $0.225 $0.220 Average shares outstanding 37,848 37,413 Average diluted shares outstanding 38,414 37,619 The accompanying notes are an integral part of these statements.
WICOR, INC. Consolidated Balance Sheets March 31, 2000 December 31, 1999 (Unaudited) -------------- ----------------- (Thousands of Dollars) Assets ------ Current Assets: Cash and cash equivalents $7,738 $12,859 Accounts receivable, less allowance for doubtful accounts of $17,529 and $13,166, respectively 210,049 152,127 Accrued revenues 33,680 50,462 Manufacturing inventories 93,868 89,963 Gas in storage, at weighted average cost 9,985 42,754 Deferred income taxes 19,874 19,902 Prepayments and other 14,361 18,514 ---------- ---------- 389,555 386,581 ---------- ---------- Property, Plant and Equipment (less accumulated depreciation of $574,387 and $565,641, respectively) 459,560 463,068 ---------- ---------- Deferred Charges and Other: Goodwill 96,783 93,928 Regulatory assets 50,724 51,686 Prepaid pension costs 60,904 58,833 Other 35,741 35,827 ---------- ---------- 244,152 240,274 ---------- ---------- $1,093,267 $1,089,923 ========== ========== The accompanying notes are an integral part of these statements.
WICOR, INC. Consolidated Balance Sheets (continued) March 31, 2000 December 31, 1999 (Unaudited) -------------- ----------------- (Thousands of Dollars) Liabilities and Capitalization ------------------------------ Current Liabilities: Short-term borrowings $63,737 $116,602 Accounts payable 88,172 78,258 Current portion of long-term debt 8,466 11,017 Refundable gas costs 46,447 24,043 Accrued payroll and benefits 17,883 25,799 Accrued taxes 20,824 5,786 Other 21,987 25,288 ---------- ---------- 267,516 286,793 ---------- ---------- Deferred Credits and Other: Postretirement benefit obligation 52,162 53,864 Regulatory liabilities 25,747 27,742 Deferred income taxes 55,931 55,650 Accrued environmental remediation costs 6,358 3,372 Unamortized investment tax credit 5,568 5,909 Other 16,880 17,483 ---------- ---------- 162,646 164,020 ---------- ---------- Capitalization: Long-term debt 213,234 205,444 Common stock 37,897 37,819 Other paid-in capital 226,705 225,638 Retained earnings 198,847 181,376 Accumulated other comprehensive income (10,049) (8,220) Unearned compensation - ESOP and restricted stock (3,529) (2,947) ---------- ---------- 663,105 639,110 ---------- ---------- $1,093,267 $1,089,923 ========== ========== The accompanying notes are an integral part of these statements.
WICOR, INC. Consolidated Statement of Cash Flows (Unaudited) (Thousands of Dollars) Three Months Ended March 31 --------------------------- 2000 1999 ----------- ----------- Operations: Net earnings $25,988 $28,866 Adjustments to reconcile net earnings to net cash flows: Depreciation and amortization 15,493 14,118 Deferred income taxes 277 125 Net pension and other postretirement benefit (income) (3,584) (2,155) Change in: Receivables (40,842) (32,728) Manufacturing inventories (3,333) 1,658 Gas in storage 32,769 25,196 Accounts payable 9,756 526 Refundable gas costs 22,404 31,545 Accrued taxes 16,246 14,004 Other (10,806) (9,013) ------- ------- 64,368 72,142 ------- ------- Investing Activities: Capital expenditures (10,155) (8,162) Acquisitions (4,828) - Other 16 (23) ------- ------- (14,967) (8,185) ------- ------- Financing Activities: Change in short-term borrowings (44,865) (63,830) Reduction in long-term debt (2,285) (2,157) Issuance of common stock 1,145 693 Dividends paid on common stock (8,517) (8,277) ------- ------- (54,522) (73,571) ------- ------- Change in Cash and Cash Equivalents (5,121) (9,614) Cash and Cash Equivalents at Beginning of Period 12,859 13,383 ------- ------- Cash and Cash Equivalents at End of Period $7,738 $3,769 ======= ======= The accompanying notes are an integral part of these statements.
Notes to Consolidated Financial Statements (Unaudited): 1) The Company and its subsidiaries maintain lines of credit worldwide. At March 31, 2000 the Company had borrowings of $63.7 million and availability of $243.4 million under unsecured lines of credit with several banks. A total of $58.2 million of commercial paper, classified as short-term borrowings, was outstanding as of March 31, 2000 at a weighted average interest rate of 6.2%. 2) For purposes of the Consolidated Statements of Cash Flows, income taxes paid, net of refunds, and interest paid (excluding capitalized interest) were as follows:
For the Three Months Ended March 31, -------------------- 2000 1999 ---- ---- (Thousands of Dollars) Income taxes paid $2,667 $4,784 Interest paid $5,792 $3,570
3) Total comprehensive income for the three months ended March 31, 2000 and 1999 is as follows:
2000 1999 ---- ---- Net earnings $25,988 $28,866 Other comprehensive income Currency translation adjustments (1,829) (379) ------- ------- Total comprehensive income $24,159 $28,487 ======= =======
4) Business Segment Information The Company is a diversified holding company with two principal business segments: an Energy Group responsible for natural gas distribution and related services, and a Manufacturing Group responsible for the manufacture of pumps and processing equipment used to pump, control, transfer, hold and filter water and other fluids. The Company's reportable segments are managed separately because each business requires different technology and marketing strategies. Most of the businesses were acquired as a unit, and the management at the time of the acquisition was retained. The accounting policies of the reportable segments are the same as those described in Note 1 of Notes to the Consolidated Financial Statements contained in the WICOR, Inc. annual report on Form 10-K for the fiscal year ended December 31, 1999. The Company evaluates the performance of its operating segments based on income from continuing operations. Intersegment sales and transfers are not significant. Information regarding products and services and geographic areas are not presented as they are not included in measures that are reviewed by the Company. Summarized financial information concerning the Company's reportable segments for the three-month's ending March 31, 2000 and 1999 is shown in the following table. The other energy category includes the results of the parent company only and non-regulated energy operations involved in energy and risk management services, automated meter reading and other related services.
Energy ------------------------------------- REGULATED OTHER TOTAL MANUFACTURING CONSOLIDATED --------- ----- ----- ------------- ------------ (Thousands of Dollars) 2000 ---- Revenues $176,049 $20,954 $197,003 $142,238 $339,241 Depreciation and amortization $10,846 $33 $10,879 $4,614 $15,493 Net earnings (loss) $19,913 $(592) $19,321 $6,667 $25,988 Total assets $651,518 $13,650 $665,168 $428,099 $1,093,267 Capital expenditures $6,748 $122 $6,870 $3,285 $10,155 1999 ---- Revenues $170,397 $16,785 $187,182 $117,059 $304,241 Depreciation and amortization $10,333 $26 $10,359 $3,759 $14,118 Net earnings $22,970 $255 $23,225 $5,641 $28,866 Total assets $637,354 $15,887 $653,241 $350,638 $1,003,879 Capital expenditures $5,546 $66 $5,612 $2,550 $8,162