EX-99 59 0059.txt FINANCIAL STATEMENTS
CINERGY CORP. CONSOLIDATING STATEMENTS OF INCOME FOR THE YEAR ENDED DECEMBER 31, 1999 (dollars in thousands, except per share amounts) Consolidated Consolidated Cinergy The Cincinnati Gas PSI Energy, Cinergy Corp. Services, Inc. & Electric Company 1/ Inc. 1/ --------------------------------------------------------------- OPERATING REVENUES Electric Non-affiliated companies $ - $ - $2,120,594 $2,108,475 Affiliated companies - 416,342 54,267 27,231 Gas Non-affiliated companies - - 374,390 - Affiliated companies - - 1,623 - Other - - - - ----------- ------------ ------------------ ------------- - 416,342 2,550,874 2,135,706 OPERATING EXPENSES Fuel used in electric production - - 340,593 396,644 Gas purchased - - 171,997 - Purchased and exchanged power Non-affiliated companies - - 701,767 769,005 Affiliated companies - - 24,130 48,004 Operation and maintenance 7,052 400,500 416,257 460,707 Depreciation and amortization - 6,869 204,468 136,402 Taxes other than income taxes 308 8,533 212,193 52,920 ----------- ------------ ------------------ ------------- 7,360 415,902 2,071,405 1,863,682 OPERATING INCOME (LOSS) (7,360) 440 479,469 272,024 EQUITY IN EARNINGS OF CONSOLIDATED SUBSIDIARIES 423,084 - - - EQUITY IN EARNINGS OF UNCONSOLIDATED SUBSIDIARIES 2,753 - - - GAIN ON SALE OF INVESTMENT IN UNCONSOLIDATED SUBSIDIARY - - - - MISCELLANEOUS - NET 17,456 443 (2,480) 655 INTEREST 43,812 369 99,737 86,265 ----------- ------------ ------------------ ------------- INCOME (LOSS) BEFORE TAXES 392,121 514 377,252 186,414 INCOME TAXES (11,520) 514 143,676 69,215 PREFERRED DIVIDEND REQUIREMENTS OF SUBSIDIARIES - - - - ----------- ------------ ------------------ ------------- NET INCOME (LOSS) $403,641 $ - $233,576 $ 117,199 PREFERRED DIVIDEND REQUIREMENT - - 856 4,601 ----------- ------------ ------------------ ------------- INCOME APPLICABLE TO COMMON STOCK $403,641 $ - $232,720 $ 112,598 AVERAGE COMMON SHARES OUTSTANDING EARNINGS PER COMMON SHARE EARNINGS PER COMMON SHARE - ASSUMING DILUTION DIVIDENDS DECLARED PER COMMON SHARE 1/ See accompanying consolidating statement of income (loss).
CINERGY CORP. CONSOLIDATING STATEMENTS OF INCOME (C0NTINUED) FOR THE YEAR ENDED DECEMBER 31, 1999 (dollars in thousands, except per share amounts) Consolidated Consolidated Cinergy Cinergy Consolidated Investments, Inc. 1/ Global Resources, Inc. Eliminations Cinergy Corp. ------------------------------------------------------------------------- OPERATING REVENUES Electric Non-affiliated companies $ 26,252 $ 57,578 $ - $4,312,899 Affiliated companies - - (497,840) - Gas Non-affiliated companies 1,221,756 - - 1,596,146 Affiliated companies - - (1,623) - Other 24,991 3,852 - 28,843 ----------- ------------ ---------- ----------- 1,272,999 61,430 (499,463) 5,937,888 OPERATING EXPENSES Fuel used in electric production 1,261 22,806 - 761,304 Gas purchased 1,212,115 - (119) 1,383,993 Purchased and exchanged power Non-affiliated companies 28,221 - - 1,498,993 Affiliated companies - - (72,134) - Operation and maintenance 59,551 46,293 (409,306) 981,054 Depreciation and amortization 6,242 6,802 (6,963) 353,820 Taxes other than income taxes 2,023 168 (10,644) 265,501 ----------- ------------ ---------- ----------- 1,309,413 76,069 (499,166) 5,244,665 OPERATING INCOME (LOSS) (36,414) (14,639) (297) 693,223 EQUITY IN EARNINGS OF CONSOLIDATED SUBSIDIARIES - - (423,084) - EQUITY IN EARNINGS OF UNCONSOLIDATED SUBSIDIARIES (1,565) 59,586 (2,753) 58,021 GAIN ON SALE OF INVESTMENT IN UNCONSOLIDATED SUBSIDIARY - 99,272 - 99,272 MISCELLANEOUS - NET (2,379) 9,610 (21,274) 2,031 INTEREST 4,458 25,628 (25,491) 234,778 ------------ ------------- ---------- ----------- INCOME BEFORE TAXES (44,816) 128,201 (421,917) 617,769 INCOME TAXES (25,118) 30,736 1,168 208,671 PREFERRED DIVIDEND REQUIREMENTS OF SUBSIDIARIES - - 5,457 5,457 ------------ ------------- ---------- ----------- NET INCOME (LOSS) ($ 19,698) $ 97,465 ($428,542) $ 403,641 PREFERRED DIVIDEND REQUIREMENT - - (5,457) - ------------ ------------- ---------- ----------- INCOME APPLICABLE TO COMMON STOCK ($ 19,698) $ 97,465 ($423,085) $ 403,641 AVERAGE COMMON SHARES OUTSTANDING $ 158,863 EARNINGS PER COMMON SHARE $ 2.54 EARNINGS PER COMMON SHARE - ASSUMING DILUTION $ 2.53 DIVIDENDS DECLARED PER COMMON SHARE $ 1.80 1/ See accompanying consolidating statement of income (loss).
CINERGY CORP. CONSOLIDATING BALANCE SHEET DECEMBER 31, 1999 (dollars in thousands) Consolidated Cinergy Cinergy The Cincinnati Gas Corp. Services, Inc. & Electric Company 1/ ----------------------------------------------------- ASSETS CURRENT ASSETS Cash and cash equivalents $ 12,353 $ 1,224 $ 9,554 Restricted deposits - 496 132 Notes receivable - - - Notes receivable from affiliated companies - 6,707 - Accounts receivable - net 639 323 279,591 Accounts receivable from affiliated companies 276,086 42,795 12,718 Materials, supplies, and fuel - at average cost - - 98,999 Prepayments and other 1,000 50 35,527 Energy risk management current assets - - 63,926 ------------- -------------- --------------------- 290,078 51,595 500,447 UTILITY PLANT - ORIGINAL COST In service Electric - - 4,875,633 Gas - - 824,427 Common - - 189,124 ------------- -------------- --------------------- - - 5,889,184 Accumulated depreciation - - 2,279,587 ------------- -------------- --------------------- - - 3,609,597 Construction work in progress - - 153,229 ------------- -------------- --------------------- Total utility plant - - 3,762,826 OTHER ASSETS Regulatory assets - - 536,224 Investments in consolidated subsidiaries 2,801,415 - - Investments in unconsolidated subsidiaries (4,100) - - Energy risk management non-current assets 7,368 Other 20,492 45,273 109,753 ------------- -------------- --------------------- 2,817,807 45,273 653,345 $ 3,107,885 $ 96,868 $ 4,916,618 1/ See accompanying consolidating balance sheets.
CINERGY CORP. CONSOLIDATING BALANCE SHEET (CONTINUED) DECEMBER 31, 1999 (dollars in thousands) Consolidated Consolidated Consolidated Cinergy Cinergy PSI Energy, Investments, Global Resources Consolidated Inc. Inc. 1/ Inc. 1/ Eliminations Cinergy Corp. ------------------------------------------------------------------------------- ASSETS CURRENT ASSETS Cash and cash equivalents $ 8,842 $ 32,982 $ 16,964 $ - $ 81,919 Restricted deposits - - - - 628 Notes receivable 481 - - - 481 Notes receivable from affiliated companies 60,360 - - (67,067) - Accounts receivable - net 253,022 134,033 38,459 1 706,068 Accounts receivable from affiliated companies 42,715 5,357 66 (379,737) - Materials, supplies, and fuel - at average cost 103,490 920 2,340 - 205,749 Prepayments and other 36,173 2,159 2,792 - 77,701 Energy risk management current assets 63,927 3,292 - - 131,145 -------------- ------------- ----------------- -------------- ----------- 569,010 178,743 60,621 (446,803) 1,203,691 UTILITY PLANT - ORIGINAL COST In service Electric 4,539,111 - - - 9,414,744 Gas - - - - 824,427 Common - - - - 189,124 -------------- ------------- ----------------- -------------- ---------- 4,539,111 - - - 10,428,295 Accumulated depreciation 1,980,290 - - - 4,259,877 -------------- ------------- ----------------- -------------- ---------- 2,558,821 - - - 6,168,418 Construction work in progress 95,825 - - - 249,054 -------------- ------------- ----------------- -------------- ---------- Total utility plant 2,654,646 - - - 6,417,472 OTHER ASSETS Regulatory assets 518,788 - - - 1,055,012 Investments in consolidated subsidiaries - - - (2,801,415) - Investments in unconsolidated subsidiaries - 282,061 76,792 4,100 358,853 Energy risk management non-current assets 7,368 11,888 - - 26,624 Other 85,024 92,202 202,552 - 555,296 -------------- ------------- ----------------- -------------- ---------- 611,180 386,151 279,344 (2,797,315) 1,995,785 $ 3,834,836 $ 564,894 $ 339,965 $ (3,244,118) $ 9,616,948 1/ See accompanying consolidating balance sheets.
CINERGY CORP. CONSOLIDATING BALANCE SHEET DECEMBER 31, 1999 (dollars in thousands) Consolidated Consolidated Cinergy The Cincinnati Gas PSI Energy, Cinergy Corp. Services, Inc. & Electric Company 1/ Inc. 1/ ------------- -------------- -------------------- -------------- CAPITALIZATION AND LIABILITIES CURRENT LIABILITIES Accounts payable $15,815 $ 22,153 $ 253,115 $ 241,072 Accounts payable to affiliated companies 33,560 - 65,256 6,762 Accrued taxes 2,051 4,953 136,118 93,056 Accrued interest 3,131 - 17,375 26,989 Notes payable and other short-term obligations - - 234,702 232,597 Notes payable to affiliated companies - - 60,360 6,707 Long-term debt due within one year - - - 31,000 Energy risk management current liabilities - - 60,478 60,478 Other - 496 25,468 1,986 ------------- -------------- -------------------- -------------- 54,557 27,602 852,872 700,647 NON-CURRENT LIABILITIES Long-term debt 399,667 - 1,205,916 1,211,552 Deferred income taxes (438) (25,473) 720,168 460,748 Unamortized investment tax credits - - 104,655 42,895 Accrued pension and other postretirement benefit costs - 71,390 154,718 129,103 Amounts due to customers - income taxes - - 11,652 - Energy risk management non-current liabilities - - 57,644 57,645 Other 378 25,177 129,142 104,638 ------------- -------------- -------------------- -------------- 399,607 71,094 2,383,895 2,006,581 Total Liabilities 454,164 98,696 3,236,767 2,707,228 CUMULATIVE PREFERRED STOCK OF SUBSIDIARIES Not subject to mandatory redemption - - 20,686 71,911 COMMON STOCK EQUITY Common stock 1,589 - 762,136 - Common stock of subsidiaries - - - 539 Paid-in capital 1,597,554 156 562,851 411,198 Retained earnings (deficit) 1,064,319 - 335,144 642,569 Accumulated other comprehensive income (loss) (9,741) (1,984) (966) 1,391 ------------- -------------- -------------------- -------------- Total common stock equity 2,653,721 (1,828) 1,659,165 1,055,697 $ 3,107,885 $ 96,868 $ 4,916,618 $ 3,834,836
CINERGY CORP. CONSOLIDATING BALANCE SHEET (CONTINUED) DECEMBER 31, 1999 (dollars in thousands) Consolidated Consolidated Cinergy Cinergy Investments, Global Resources Consolidated Inc. 1/ Inc. 1/ Eliminations Cinergy Corp. ------------- ----------------- ------------- -------------- CAPITALIZATION AND LIABILITIES CURRENT LIABILITIES Accounts payable $ 189,468 $ 12,936 $ 378 $734,937 Accounts payable to affiliated companies 273,004 1,155 (379,737) - Accrued taxes (10,606) (6,306) - 219,266 Accrued interest - 1,859 - 49,354 Notes payable and other short-term obligations 20,000 62,895 - 550,194 Notes payable to affiliated companies - - (67,067) - Long-term debt due within one year - - - 31,000 Energy risk management current liabilities 5,726 - - 126,682 Other - 48,824 - 76,774 ------------- ----------------- -------------- ------------ 477,592 121,363 (446,426) 1,788,207 NON-CURRENT LIABILITIES Long-term debt - 172,107 - 2,989,242 Deferred income taxes 894 17,732 1,187 1,174,818 Unamortized investment tax credits - - - 147,550 Accrued pension and other postretirement benefit costs 706 - - 355,917 Amounts due to customers - income taxes - - - 11,652 Energy risk management non-current liabilities 16,752 - - 132,041 Other 6,115 5,753 - 271,203 ------------- ----------------- -------------- ------------ 24,467 195,592 1,187 5,082,423 Total Liabilities 502,059 316,955 (445,239) 6,870,630 CUMULATIVE PREFERRED STOCK OF SUBSIDIARIES Not subject to mandatory redemption - - - 92,597 COMMON STOCK EQUITY Common stock - - (762,136) 1,589 Common stock of subsidiaries - - (539) - Paid-in capital 628,721 143,369 (1,746,295) 1,597,554 Retained earnings (deficit) (565,852) (112,673) (299,188) 1,064,319 Accumulated other comprehensive income (loss) (34) (7,686) 9,279 (9,741) ------------- ----------------- -------------- ------------ Total common stock equity 62,835 23,010 (2,798,879) 2,653,721 $ 564,894 $ 339,965 $ (3,244,118) $ 9,616,948
CINERGY CORP. CONSOLIDATING STATEMENT OF CHANGES IN COMMON STOCK EQUITY (dollars in thousands) Consolidated Consolidated Cinergy The Cincinnati Gas PSI Cinergy Corp. Services, Inc. & Electric Company 1/ Energy, Inc. ----------------------------------------------------------------------------- BALANCE AT DECEMBER 31, 1998 2,541,231 $ 739 $ 1,666,443 $ 975,648 Comprehensive income Net income (loss) 403,641 - 233,576 117,199 Other comprehensive income (loss) Foreign currency translation adjustment (9,781) - - - Minimum pension liability adjustment (1,239) (1,227) 158 (163) Unrealized gains on grantor and rabbi trusts 2,086 37 - 2,049 Comprehensive income (loss) total 394,707 (1,190) 233,734 119,085 Issuance of common stock - net 6,722 - - - Treasury shares purchased (233) - - - Treasury shares reissued 3,660 - - - Dividends on preferred stock - - (856) (4,601) Dividends on common stock (284,545) - (250,100) (35,900) Contributions from parent company - - - - Contribution from parent company for reallocation of taxes - 155 8,920 457 Other (7,821) (1,532) 1,024 1,008 BALANCE AT DECEMBER 31, 1999 $ 2,653,721 ($1,828) $ 1,659,165 $1,055,697
CINERGY CORP. CONSOLIDATING STATEMENT OF CHANGES IN COMMON STOCK EQUITY (CONTINUED) (dollars in thousands) Consolidated Consolidated Cinergy Cinergy Global Consolidated Investments, Inc. 1/ Resources, Inc. 1/ Eliminations Cinergy Corp. ------------------------------------------------------------------------ BALANCE AT DECEMBER 31, 1998 $ 78,136 $ 508,464 $(3,229,430) $2,541,231 Comprehensive income Net income (loss) (19,698) 97,465 (428,542) 403,641 Other comprehensive income (loss) Foreign currency translation adjustment - (9,758) 9,758 (9,781) Minimum pension liability adjustment (6) - 1,238 (1,239) Unrealized gains on grantor and rabbi trusts - - (2,086) 2,086 Comprehensive income (loss) total (19,704) 87,707 (419,632) 394,707 Issuance of common stock - net - - - 6,722 Treasury shares purchased - - - (233) Treasury shares reissued - - - 3,660 Dividends on preferred stock - - 5,457 - Dividends on common stock - (217,308) 503,308 (284,545) Contributions from parent company 4,500 (359,678) 355,178 - Contribution from parent company for reallocation of taxes 381 3,825 (13,738) - Other (478) - (22) (7,821) BALANCE AT DECEMBER 31, 1999 $62,835 $ 23,010 $(2,798,879) $2,653,721 1/ See accompanying consolidating statements of changes in common stock equity. 2/ Par values, authorized shares, and outstanding shares are as follows: Par Value Authorized shares Outstanding shares Issued shares (in thousands) Cinergy $0.01 600,000 158,665 259 4/ CG&E $8.50 120,000 89,663 - PSI $0.01 stated value 60,000 53,914 - Services $0.05 - 3/ - 3/ - Investments $0.01 - 3/ - 3/ - Global Resources none - 3/ - 3/ - 3/ 3/ Services and Investments each have authority to issue 100 shares of common stock. At December 31, 1999, Services and Investments had 50 shares and 100 shares, respectively, outstanding. Global Resources has authority to issue 500 shares of no par value common stock. At December 31, 1999, Global Resources had 100 shares outstanding. 4/ Shares issued during 1999.
CINERGY CORP. CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 1999 (in thousands) Consolidated Consolidated Cinergy Cinergy The Cincinnati Gas & PSI Energy, Corp. Services, Inc. Electric Company 1/ Inc. ----------- -------------- -------------------- ------------- Operating Activities Net income $ 403,641 $ - $ 233,576 $ 117,199 Items providing or (using) cash currently: Depreciation and amortization - 6,869 204,468 136,402 Deferred income taxes and investment tax credits - net 411 2,637 2,366 102,878 Unrealized (gain) loss from energy risk management activities - - (27,245) (27,245) Equity in unconsolidated subsidiaries - - - - Equity in consolidated subsidiaries (423,084) - - - Gain on sale of investment in unconsolidated subsidiaries - - - - Allowance for equity funds used during construction - - (2,565) (1,068) Regulatory assets - net - - 14,325 (217,549) Changes in current assets and current liabilities Restricted deposits - (496) 1,041 2,414 Accounts and notes receivable, net of reserves on receivables sold (269,870) (5,592) 17,676 (118,183) Materials, supplies, and fuel - - 16,295 (23,045) Accounts payable 25,070 (8,648) 22,462 (270) Accrued taxes and interest (12,654) 2,376 (18,533) 32,809 Other items - net 863,567 4,376 19,500 42,491 ------------ ----------- ------------ ------------- Net cash provided by (used in) operating activities 587,081 1,522 483,366 46,833 Financing Activities Issuance of common stock 6,722 - - - Issuance of long-term debt 198,504 - 19,818 589,225 Retirement of preferred stock of subsidiaries - - (26) (8) Redemption of long-term debt - - (164,264) (379,484) Change in short-term debt (505,000) (53) 88 759 (36,804) Dividends on preferred stock - - (856) (4,601) Dividends on common stock (285,925) - (250,100) (35,900) ---------- ------------ ------------ ------------- Net cash provided by (used in) financing activities (585,699) (53) (306,669) 132,428 Investing Activities Construction expenditures (less allowance for equity funds used during construction) - (283) (194,132) (189,207) Acquisition of businesses - net of cash acquired - - - - Investments in unconsolidated subsidiaries - - - -` Sale of investment in unconsolidated subsidiaries - - - - ---------- ------------ ------------ ------------- Net cash provided by (used in) investing activities - (283) (194,132) (189,207) Net increase (decrease) in cash and temporary cash investments 1,382 1,186 (17,435) (9,946) Cash and temporary cash investments at beginning of period 10,971 38 26,989 18,788 ------------ ------------ ------------ ------------- Cash and temporary cash investments at end of period $ 12,353 $ 1,224 $ 9,554 $ 8,842 1/ See accompanying consolidating statements of cash flows.
CINERGY CORP. CONSOLIDATING STATEMENT OF CASH FLOWS (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 1999 (in thousands) Consolidated Consolidated Cinergy Cinergy Global Consolidated Investments, Inc. 1/ Resources, Inc. 1/ Eliminations Cinergy Corp. --------------------- ------------------ ------------- ------------- Operating Activities Net income $ (19,698) $ 97,465 $ (428,542) $ 403,641 Items providing or (using) cash currently: Depreciation and amortization 6,242 6,802 (6,963) 353,820 Deferred income taxes and investment tax credits - net 2,984 (16,891) 1,682 96,067 Unrealized (gain) loss from energy risk management activities 7,298 - - (47,192) Equity in unconsolidated subsidiaries 2,664 (47,568) - (44,904) Equity in consolidated subsidiaries - - 423,084 - Gain on sale of investment in unconsolidated subsidiaries - (99,272) - (99,272) Allowance for equity funds used during construction - - - (3,633) Regulatory assets - net - - - (203,224) Changes in current assets and current liabilities Restricted deposits - - - 2,959 Accounts and notes receivable, net of reserves on receivables sold 8,445 28,780 220,183 (118,561) Materials, supplies, and fuel 3,236 1,073 (561) (3,002) Accounts payable 305,071 (9,520) (272,575) 61,590 Accrued taxes and interest (6,652) (8,752) - (11,406) Other items - net (27,003) (449,170) (498,026) (44,265) ------------ ----------- ------------ ------------- Net cash provided by (used in) operating activities 282,587 (497,053) (561,718) 342,618 Financing Activities Issuance of common stock - - - 6,722 Issuance of long-term debt - 22,400 1 829,948 Retirement of preferred stock of subsidiaries - - - (34) Redemption of long-term debt - (9,443) - (553,191) Change in short-term debt 20,000 26,640 52,952 (353,506) Dividends on preferred stock - - 5,457 - Dividends on common stock - (217,308) 503,308 (285,925) ---------- ------------ ------------ ------------- Net cash provided by (used in) financing activities 20,000 (177,711) 561,718 (355,986) Investing Activities Construction expenditures (less allowance for equity funds used during construction) (2,671) - - (386,293) Acquisition of businesses - net of cash acquired (24,500) - - (24,500) Investments in unconsolidated subsidiaries (270,386) (13,957) - (284,343) Sale of investment in unconsolidated subsidiaries - 690,269 - 690,269 ---------- ------------ ------------ ------------- Net cash provided by (used in) investing activities (297,557) 676,312 - (4,867) Net increase (decrease) in cash and temporary cash investments 5,030 1,548 - (18,235) Cash and temporary cash investments at beginning of period 27,952 15,416 - 100,154 ------------ ------------ ------------ ------------- Cash and temporary cash investments at end of period $ 32,982 $ 16,964 $ - $ 81,919 1/ See accompanying consolidating statements of cash flows.