EX-99.2FINANCIALS 3 vvc_qfr4thqtr.txt FOURTH QTR 2000 FINANCIAL ANALYST REPORT Exhibit 99-2
Vectren Corporation 3 Months 12 Months Selected Highlights Ended December 31 Ended December 31 ----------------- ------------------ (Unaudited) 2000 ** 1999 2000 ** 1999 -------------------------- ------- -------- -------- ------- Basic and Diluted Earnings Per Average Share: Utility Group $ 0.43 $ 0.31 $ 0.85 $ 1.23 Non-regulated Group Communications - - 0.07 - Energy Services 0.01 (0.01) 0.12 0.08 Financial Group 0.05 0.04 0.16 0.09 Other Non-regulated (0.06) 0.02 (0.02) 0.08 ------- -------- -------- ------- - Total Non-regulated - 0.05 0.33 0.25 Total $ 0.43 $ 0.36 $ 1.18 * $ 1.48 ------- -------- -------- ------- Total Before Merger and Integration Costs $ 0.57 $ 0.36 $ 1.78 $ 1.48 Summary of Impact of Merger and Integration Costs: (millions, except per share data) Merger and Integration Costs $ 9.8 $ - $ 41.1 $ - Depreciation 4.8 - 11.4 - Income Taxes (5.6) - (15.7) - ------- -------- -------- ------- - Total $ 9.0 $ - $ 36.8 $ - EPS Impact of Merger and Integration Costs $ 0.14 $ - $ 0.60 $ - ------- -------- -------- ------- Utility Group $ 0.08 $ - $ 0.52 $ - Non-regulated Group $ 0.06 $ - $ 0.08 $ - EBITDA (millions) Utility Group $ 79.9 $ 61.1 $ 215.2 $ 234.8 Non-regulated Group 6.8 5.5 53.9 31.5 ------- -------- ------- ------- Total $ 86.7 $ 66.6 $ 269.1 $ 266.3 ------- -------- ------- ------- Total Before Merger and Integration Costs $ 96.5 $ 66.6 $ 310.2 $ 266.3 Dividends Paid (per common share, 12 months) $ 0.98 $ 0.94 Annualized Dividend $ 1.02 $ 0.95 Dividend Yield (at close) 4.0% N/A Dividend Payout Ratio 83.1% 63.5% Dividend to Book Value 8.6% 8.2% Return on Average Shareholder Equity 10.0% 13.1% Book Value Per Share $ 11.91 $ 11.58 Market to Book Value (at close) 215% N/A Common Stock Prices (VVC - NYSE) High (during fourth quarter) $ 26.50 N/A Low (during fourth quarter) $ 20.00 N/A Close $ 25.63 N/A Price/Earnings Ratio (trailing) 21.7 N/A Percent Internally Generated Funds - Utility Group 77% 82% Ratio of Earnings to Fixed Charges - SEC Method Consolidated 2.8 4.0 Utility Group 2.8 4.1 * Diluted earnings per share for the twelve months ended December 31, 2000 total $1.17. Basic and diluted earnings per share for all other periods presented are equal. ** Selected highlights for the three months and twelve months ended December 31, 2000 include two months of operations resulting from the acquisition of Dayton Power and Light Company's natural gas distribution assets on October 31, 2000.
VECTREN CORPORATION 3 Months 12 Months SELECTED UTILITY Ended December 31 Ended December 31 OPERATING STATISTICS ---------------------- --------------------- (Unaudited) 2000 * 1999 2000 * 1999 --------- --------- --------- --------- WEATHER AS A PERCENT OF NORMAL: Heating Degree Days 115% 83% 96% 87% Cooling Degree Days - - 93% 94% GAS MARGIN (Thousands): Operating Revenues 427,267 157,486 818,753 499,573 Cost of Gas 323,167 91,848 552,540 266,429 -------- ------- ------- ------- Margin 104,100 65,638 266,213 233,144 ======== ======= ======= ======= ELECTRIC MARGIN (Thousands): Operating Revenues 87,194 68,609 336,409 307,569 Cost of Fuel & Purchased Power 31,389 18,523 112,093 92,946 --------- -------- -------- -------- Unconsolidated Margin 55,805 50,086 224,316 214,623 Consolidating Adjustment 632 1,687 4,529 5,850 -------- -------- -------- -------- Consolidated Margin 56,437 51,773 228,845 220,473 ========= ======== ======== ======== GAS SOLD & TRANSPORTED (MDth): Residential 32,328 16,627 65,726 51,857 Commercial 12,092 6,262 25,950 20,690 Contract 29,161 20,283 89,562 78,164 --------- --------- --------- -------- 73,581 43,172 181,238 150,711 ========= ========= ========= ======== ELECTRICITY SOLD (MWh): Residential 315,308 261,649 1,383,163 1,371,580 Commercial 337,439 311,516 1,336,047 1,304,008 Industrial 639,130 621,211 2,491,972 2,415,990 - - - - Miscellaneous Sales 5,808 5,672 19,232 19,367 --------- --------- --------- --------- Total Retail 1,297,685 1,200,048 5,230,414 5,110,945 Municipals and Jasper 159,457 159,039 670,195 659,455 Other Wholesale 576,423 240,850 1,624,091 1,170,315 --------- --------- --------- --------- 2,033,565 1,599,937 7,524,700 6,940,715 ========= ========= ========= ========= * Gas operating statistics for the three months and twelve months ended December 31, 2000 include two months of operations resulting from the acquisition of Dayton Power and Light Company's natural gas distribution assets on October 31, 2000.
VECTREN CORPORATION 3 Months 12 Months SELECTED UTILITY Ended December 31 Ended December 31 OPERATING STATISTICS ------------------ ------------------- (Unaudited) 2000 * 1999 2000 * 1999 ------- ------- ------- -------- GAS OPERATING REVENUES (Thousands): Residential 253,238 107,107 486,916 327,704 Commercial 88,631 35,080 171,386 112,558 Contract 43,669 11,807 78,639 46,840 Miscellaneous Revenue 41,729 3,492 81,812 12,471 ------- ------- ------- -------- 427,267 157,486 818,753 499,573 ======= ======= ======= ======== ELECTRIC OPERATING REVENUES (Thousands): Residential 21,360 18,147 92,815 90,801 Commercial 19,843 17,021 73,595 69,906 Industrial 22,267 21,184 82,634 79,531 Miscellaneous Revenue 1,574 (43) 8,682 7,142 ------- ------- ------- ------- Total Retail 65,044 56,309 257,726 247,380 Municipals and Jasper 5,654 5,787 23,646 23,544 Other Wholesale 16,496 6,513 55,037 36,645 ------- ------- ------- ------- 87,194 68,609 336,409 307,569 YEAR END GAS CUSTOMERS: ** ======= ======= ======= ======== Residential 861,869 564,620 861,869 564,620 Commercial 79,861 56,617 79,861 56,617 Contract 4,313 1,242 4,313 1,242 ------- ------- ------- ------- 946,043 622,479 946,043 622,479 ======= ======= ======= ======= YEAR END ELECTRIC CUSTOMERS: Residential 114,946 110,064 114,946 110,064 Commercial 17,207 16,344 17,207 16,344 Industrial 187 197 187 197 ------- ------- ------- -------- 132,340 126,605 132,340 126,605 ======= ======= ======= ======== * Gas operating statistics for the three months and twelve months ended December 31, 2000 include two months of operations resulting from the acquisition of Dayton Power and Light Company's natural gas distribution assets on October 31, 2000. ** Year end gas customers include 311,052 actual customers for Vectren Energy Delivery of Ohio at December 31, 2000
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 ------------------- ---------------------- 2000 1999 2000 1999 -------- -------- ---------- ---------- OPERATING REVENUE: Gas utility $427,267 $157,486 $ 818,753 $ 499,573 Electric utility 87,194 68,609 336,409 307,569 Energy services and other 193,454 83,087 493,528 261,275 -------- -------- --------- --------- Total operating revenues 707,915 309,182 1,648,690 1,068,417 OPERATING EXPENSES: Cost of gas sold 323,167 91,848 552,540 266,429 Fuel for electric generation 19,448 14,776 71,170 66,305 Purchased electric energy 11,309 2,060 36,394 20,791 Cost of energy 1 services and other 87,402 78,989 473,258 247,590 Other operating 56,971 50,535 199,591 189,622 Merger and integration cost 9,839 - 41,145 - Depreciation and amortization 30,653 22,182 105,661 86,998 Taxes other than income taxes 15,840 8,490 38,010 29,910 -------- -------- --------- --------- Total operating expenses 654,629 268,880 1,517,769 907,645 -------- -------- --------- --------- OPERATING INCOME 53,286 40,302 130,921 160,772 OTHER INCOME Equity in earnings of unconsolidated investments 604 2,166 17,554 11,642 Other - net 2,454 2,245 16,951 8,902 -------- -------- --------- --------- Total other income 3,058 4,411 34,505 20,544 INTEREST EXPENSE 19,193 12,279 57,133 42,862 -------- -------- ---------- ---------- INCOME BEFORE PREFERRED DIVIDENDS AND INCOME TAXES 37,151 32,434 108,293 138,454 PREFERRED DIVIDEND REQUIREMENT OF SUBSIDIARY 241 269 1,017 1,078 -------- -------- --------- ---------- INCOME BEFORE INCOME TAXES 36,910 32,165 107,276 137,376 INCOME TAXES 10,705 9,871 34,232 45,708 -------- -------- --------- --------- NET INCOME BEFORE MINORITY INTEREST 26,205 22,294 73,044 91,668 MINORITY INTEREST IN SUBSIDIARY 21 59 1,004 920 -------- -------- ---------- ---------- NET INCOME $ 26,184 $ 22,235 $ 72,040 $ 90,748 ======== ======== ========== ========== AVERAGE COMMON SHARES OUTSTANDING 61,416 61,304 61,297 61,306 DILUTED COMMON SHARES OUTSTANDING 61,586 61,387 61,380 61,430 BASIC EARNINGS PER AVERAGE SHARE OF COMMON STOCK $ 0.43 $ 0.36 $ 1.18 $ 1.48 DILUTED EARNINGS PER AVERAGE SHARE OF COMMON STOCK $ 0.43 $ 0.36 $ 1.17 $ 1.48
VECTREN CORPORATION AND SUBSIDIARY COMPANIES CONSOLIDATED BALANCE SHEETS (Thousands - Unaudited) December 31 ----------------------- ASSETS 2000 1999 ---------- ----------- Current Assets: Cash and cash equivalents $ 15,170 $ 17,351 Temporary investments - 903 Accounts receivable, less reserves of $5,716 and $3,949 295,351 123,612 Accrued unbilled revenues 143,365 55,370 Inventories 95,245 58,863 Prepaid gas delivery service 34,849 20,937 Recoverable fuel costs 96,084 5,585 Prepayments and other current assets 20,998 23,091 --------- --------- Total current assets 701,062 305,712 --------- --------- Utility Plant: Original cost 2,788,794 2,367,831 Less accumulated depreciation and amortization 1,233,033 1,031,498 --------- --------- Net utility plant 1,555,761 1,336,333 --------- --------- Other Investments: Investments in leveraged leases 93,145 85,737 Investments in partnerships and other corporations 108,645 74,644 Notes receivable 64,276 32,271 Other 1,057 996 --------- ---------- Total other investments 267,123 193,648 --------- ---------- Nonutility property, net of accumulated depreciation 103,477 64,474 Other Assets: Deferred charges 31,094 31,672 Goodwill 197,977 - Regulatory assets 52,246 47,593 Other 447 1,035 ---------- ---------- Total other assets 281,764 80,300 ---------- ---------- TOTAL ASSETS $2,909,187 $1,980,467 ========== ===========
VECTREN CORPORATION AND SUBSIDIARY COMPANIES CONSOLIDATED BALANCE SHEETS (Thousands - Unaudited) December 31 ---------------------- LIABILITIES AND SHAREHOLDERS' EQUITY 2000 1999 ----------- ----------- Current Liabilities: Current maturities of adjustable rate bonds subject to tender $ 53,700 $ 53,700 Current maturities of long-term debt and other obligations 249 776 Short-term borrowings 759,908 207,638 Accounts payable 304,021 95,827 Refunds to customers and customer deposits 22,922 27,396 Accrued taxes 556 26,602 Accrued interest 10,272 12,097 Other current liabilities 70,750 49,467 --------- ---------- Total current liabilities 1,222,378 473,503 ---------- ---------- Deferred Credits and Other Liabilities: Deferred income taxes 229,911 215,520 Accrued postretirement benefits other than pensions 45,883 40,942 Unamortized investment tax credit 23,165 25,524 Other 5,826 8,297 Total deferred credits and other liabilities 304,785 290,283 ---------- ---------- Minority interest in subsidiary 1,421 916 Capitalization: Long-term debt and other obligations, net of current maturities 631,954 486,726 Preferred stock of subsidiary: Redeemable 8,076 8,192 Nonredeemable 8,889 11,090 Total preferred stock 16,965 19,282 ---------- ---------- Common stock (no par value) - issued and outstanding 61,419, and 61,305 shares, respectively 217,720 215,917 Retained earnings 506,462 493,918 Accumulated other comprehensive income 7,502 (78) --------- ---------- Total common shareholders' equity 731,684 709,757 --------- ---------- Total capitalization 1,380,603 1,215,765 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 2,909,187 $ 1,980,467 =========== ===========
VECTREN CORPORATION AND SUBSIDIARY COMPANIES CONSOLIDATED STATEMENTS OF CASH FLOWS (Thousands - Unaudited) Twelve Months Ended December 31 ------------------------- 2000 1999 --------- --------- CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 72,040 $ 90,748 Adjustments to reconcile net income to cash provided from operating activities - Depreciation and amortization 105,661 86,998 Preferred dividend requirement of subsidiary 1,017 1,078 Deferred income taxes and investment tax credits 12,032 8,548 (Gain) loss on sale or retirement of assets or investments (8,961) - Undistributed earnings of unconsolidated investments (10,554) (11,642) --------- --------- 99,195 84,982 Changes in assets and liabilities - Receivables - net (246,771) (19,978) Inventories 17,817 7,823 Accounts payable, refunds to customers, customer deposits, and other current liabilities 217,122 1,514 Recoverable fuel costs (82,343) 346 Accrued taxes and interest (27,871) 13,585 Prepayments and other current assets 7,553 (7,805) Prepaid gas delivery service (13,912) (20,937) Accrued post-retirement benefits and other than pensions 4,941 3,455 Regulatory Assets (4,653) 1,718 Other - net (2,411) (6,226) --------- --------- Total adjustments (31,333) 58,477 --------- --------- Net cash flows from operating activities 40,707 149,225 --------- --------- CASH FLOWS FROM (REQUIRED FOR) FINANCING ACTIVITIES: Retirement of common stock 3,978 (1,349) Retirement of preferred stock (2,317) (116) Proceeds from long-term debt 178,000 110,000 Retirement of long-term debt and other obligations (33,299) (67,067) Net change in short-term borrowings 552,270 81,655 Dividends on common stock (59,977) (57,365) Other - (3,614) --------- --------- Net cash flows from (required for) financing activities 638,655 62,144 --------- --------- CASH FLOWS (REQUIRED FOR) INVESTING ACTIVITIES: Capital expenditures (164,266) (132,159) Investment in leveraged leases (850) (49,734) Investments in partnerships and other corporations (29,446) (10,711) Change in notes receivable (32,005) (11,899) Cash distributions from unconsolidated investments 7,033 4,550 Acquisition of DPL gas distribution assets (463,301) - Other 1,292 (1,456) --------- -------- Net cash flows (required for) investing activities (681,543) (201,409) --------- --------- NET INCREASE (DECREASE) IN CASH EQUIVALENTS (2,181) 9,960 CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 17,351 7,391 --------- --------- CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 15,170 $ 17,351 ========= =========