Ex 99.2
VECTREN CORPORATION | |||||||||||||
AND SUBSIDIARY COMPANIES | |||||||||||||
CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||
(Millions, except per share amounts) | |||||||||||||
(Unaudited) | |||||||||||||
Three Months | Six Months | ||||||||||||
Ended June 30 | Ended June 30 | ||||||||||||
2005 | 2004 | 2005 | 2004 | ||||||||||
OPERATING REVENUES: | |||||||||||||
Gas utility | $ | 186.0 | $ | 154.1 | $ | 702.7 | $ | 659.3 | |||||
Electric utility | 96.9 | 89.1 | 191.6 | 177.9 | |||||||||
Energy services and other | 43.3 | 33.5 | 109.1 | 84.9 | |||||||||
Total operating revenues | 326.2 | 276.7 | 1,003.4 | 922.1 | |||||||||
OPERATING EXPENSES: | |||||||||||||
Cost of gas sold | 116.3 | 97.0 | 487.2 | 462.7 | |||||||||
Fuel for electric generation | 29.4 | 23.8 | 56.3 | 46.6 | |||||||||
Purchased electric energy | 3.6 | 6.8 | 5.9 | 11.2 | |||||||||
Cost of energy services and other | 31.4 | 23.1 | 83.0 | 63.1 | |||||||||
Other operating | 65.8 | 60.0 | 136.9 | 131.2 | |||||||||
Depreciation and amortization | 38.5 | 34.9 | 75.6 | 67.4 | |||||||||
Taxes other than income taxes | 12.0 | 10.7 | 34.1 | 33.4 | |||||||||
Total operating expenses | 297.0 | 256.3 | 879.0 | 815.6 | |||||||||
OPERATING INCOME | 29.2 | 20.4 | 124.4 | 106.5 | |||||||||
OTHER INCOME: | |||||||||||||
Equity in earnings of unconsolidated affiliates | 0.7 | (4.9 | ) | 7.1 | 12.0 | ||||||||
Other - net | 1.6 | 1.8 | 4.0 | (1.4 | ) | ||||||||
Total other income | 2.3 | (3.1 | ) | 11.1 | 10.6 | ||||||||
INTEREST EXPENSE | 19.7 | 18.8 | 39.8 | 38.1 | |||||||||
INCOME BEFORE INCOME TAXES | 11.8 | (1.5 | ) | 95.7 | 79.0 | ||||||||
INCOME TAXES | (1.6 | ) | (4.8 | ) | 26.2 | 20.9 | |||||||
NET INCOME | $ | 13.4 | $ | 3.3 | $ | 69.5 | $ | 58.1 | |||||
AVERAGE COMMON SHARES OUTSTANDING | 75.6 | 75.6 | 75.6 | 75.5 | |||||||||
DILUTED COMMON SHARES OUTSTANDING | 76.1 | 75.8 | 76.2 | 75.9 | |||||||||
EARNINGS PER SHARE OF COMMON STOCK | |||||||||||||
BASIC | $ | 0.18 | $ | 0.04 | $ | 0.92 | $ | 0.77 | |||||
DILUTED | $ | 0.18 | $ | 0.04 | $ | 0.91 | $ | 0.77 |
VECTREN CORPORATION | ||||||||||
AND SUBSIDIARY COMPANIES | ||||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||||
(Millions - Unaudited) | ||||||||||
June 30, | December 31, | |||||||||
2005 | 2004 | |||||||||
ASSETS | ||||||||||
Current Assets | ||||||||||
Cash & cash equivalents | $ | 9.5 | $ | 9.6 | ||||||
Accounts receivable - less reserves of $2.4 & | ||||||||||
$2.0, respectively | 103.7 | 173.5 | ||||||||
Accrued unbilled revenues | 47.1 | 176.6 | ||||||||
Inventories | 65.5 | 67.6 | ||||||||
Recoverable fuel & natural gas costs | 2.4 | 17.7 | ||||||||
Prepayments & other current assets | 102.6 | 141.3 | ||||||||
Total current assets | 330.8 | 586.3 | ||||||||
Utility Plant | ||||||||||
Original cost | 3,524.6 | 3,465.2 | ||||||||
Less: accumulated depreciation & amortization | 1,343.0 | 1,309.0 | ||||||||
Net utility plant | 2,181.6 | 2,156.2 | ||||||||
Investments in unconsolidated affiliates | 195.5 | 180.0 | ||||||||
Other investments | 115.6 | 115.1 | ||||||||
Non-utility property - net | 244.3 | 229.2 | ||||||||
Goodwill - net | 207.1 | 207.1 | ||||||||
Regulatory assets | 87.5 | 82.5 | ||||||||
Other assets | 29.6 | 30.5 | ||||||||
TOTAL ASSETS | $ | 3,392.0 | $ | 3,586.9 | ||||||
LIABILITIES & SHAREHOLDERS' EQUITY | ||||||||||
Current Liabilities | ||||||||||
Accounts payable | $ | 61.2 | $ | 123.8 | ||||||
Accounts payable to affiliated companies | 61.8 | 109.3 | ||||||||
Refundable fuel & natural gas costs | 21.8 | 6.3 | ||||||||
Accrued liabilities | 133.5 | 125.8 | ||||||||
Short-term borrowings | 252.9 | 412.4 | ||||||||
Current maturities of long-term debt | 38.6 | 38.5 | ||||||||
Long-term debt subject to tender | - | 10.0 | ||||||||
Total current liabilities | 569.8 | 826.1 | ||||||||
Long-term Debt - Net of Current Maturities &Debt Subject to Tender | 1,026.8 | 1,016.6 | ||||||||
Deferred Income Taxes & Other Liabilities | ||||||||||
Deferred income taxes | 239.6 | 234.0 | ||||||||
Regulatory liabilities & other removal costs | 260.7 | 251.7 | ||||||||
Deferred credits & other liabilities | 168.5 | 163.2 | ||||||||
Total deferred credits & other liabilities | 668.8 | 648.9 | ||||||||
Minority Interest in Subsidiary | 0.4 | 0.4 | ||||||||
Cumulative, Redeemable Preferred Stock of a Subsidiary | - | 0.1 | ||||||||
Common Shareholders' Equity | ||||||||||
Common stock (no par value) – issued & outstanding | ||||||||||
76.1 and 75.9 shares, respectively | 528.6 | 526.8 | ||||||||
Retained earnings | 607.3 | 583.0 | ||||||||
Accumulated other comprehensive loss | (9.7 | ) | (15.0 | ) | ||||||
Total common shareholders' equity | 1,126.2 | 1,094.8 | ||||||||
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY | $ | 3,392.0 | $ | 3,586.9 |
VECTREN CORPORATION | ||||||||||
AND SUBSIDIARY COMPANIES | ||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||
(Millions - Unaudited) | ||||||||||
Six Months | ||||||||||
Ended June 30, | ||||||||||
2005 | 2004 | |||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||||
Net income | $ | 69.5 | $ | 58.1 | ||||||
Adjustments to reconcile net income to cash from operating activities: | ||||||||||
Depreciation & amortization | 75.6 | 67.4 | ||||||||
Deferred income taxes & investment tax credits | (0.1 | ) | 10.1 | |||||||
Equity in earnings of unconsolidated affiliates | (7.1 | ) | (12.0 | ) | ||||||
Net unrealized (gain) on derivative instruments | (2.8 | ) | (0.8 | ) | ||||||
Pension & postretirement periodic benefit cost | 9.0 | 8.3 | ||||||||
Other non-cash charges - net | 12.0 | 13.3 | ||||||||
Changes in working capital accounts: | ||||||||||
Accounts receivable & accrued unbilled revenue | 189.7 | 119.2 | ||||||||
Inventories | 2.1 | 14.6 | ||||||||
Recoverable fuel & natural gas costs | 30.8 | (1.6 | ) | |||||||
Prepayments & other current assets | 39.9 | 45.3 | ||||||||
Accounts payable, including to affiliated companies | (110.1 | ) | (37.8 | ) | ||||||
Accrued liabilities | 11.9 | 6.7 | ||||||||
Changes in noncurrent assets | (3.3 | ) | (5.1 | ) | ||||||
Changes in noncurrent liabilities | (9.3 | ) | (5.6 | ) | ||||||
Net cash flows from operating activities | 307.8 | 280.1 | ||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||
Proceeds from stock option exercises & other stock plans | - | 3.9 | ||||||||
Requirements for: | ||||||||||
Dividends on common stock | (45.2 | ) | (43.0 | ) | ||||||
Redemption of preferred stock of subsidiary | (0.1 | ) | (0.1 | ) | ||||||
Net change in short-term borrowings | (159.5 | ) | (149.4 | ) | ||||||
Net cash flows from financing activities | (204.8 | ) | (188.6 | ) | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||||
Proceeds from: | ||||||||||
Unconsolidated affiliate distributions | 7.2 | 21.0 | ||||||||
Notes receivable & other collections | 0.8 | 1.0 | ||||||||
Requirements for: | ||||||||||
Capital expenditures, excluding AFUDC equity | (104.3 | ) | (111.3 | ) | ||||||
Unconsolidated affiliate investments | (6.8 | ) | (9.0 | ) | ||||||
Net cash flows from investing activities | (103.1 | ) | (98.3 | ) | ||||||
Net decrease in cash & cash equivalents | (0.1 | ) | (6.8 | ) | ||||||
Cash & cash equivalents at beginning of period | 9.6 | 15.3 | ||||||||
Cash & cash equivalents at end of period | $ | 9.5 | $ | 8.5 |
VECTREN CORPORATION | ||||||||||||||||
AND SUBSIDIARY COMPANIES | ||||||||||||||||
HIGHLIGHTS | ||||||||||||||||
(millions, except per share amounts) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months | Six Months | |||||||||||||||
Ended June 30 | Ended June 30 | |||||||||||||||
2005 | 2004 | 2005 | 2004 | |||||||||||||
REPORTED EARNINGS: | ||||||||||||||||
Utility Group | $ | 7.8 | $ | 2.8 | $ | 55.9 | $ | 47.4 | ||||||||
Non-regulated Group | ||||||||||||||||
Energy Marketing and Services | 0.7 | 0.9 | 6.7 | 7.9 | ||||||||||||
Mining | 1.3 | 0.6 | 2.6 | 1.3 | ||||||||||||
Synfuels related | 3.4 | 3.3 | 6.5 | 6.2 | ||||||||||||
Total Coal Mining | 4.7 | 3.9 | 9.1 | 7.5 | ||||||||||||
Utility Infrastructure Services | 0.5 | 0.5 | (0.5 | ) | (0.1 | ) | ||||||||||
Other Businesses | (0.2 | ) | (4.6 | ) | (0.7 | ) | (4.0 | ) | ||||||||
Total Non-regulated Group | 5.7 | 0.7 | 14.6 | 11.3 | ||||||||||||
Corporate and Other | (0.1 | ) | (0.2 | ) | (1.0 | ) | (0.6 | ) | ||||||||
Vectren Consolidated | $ | 13.4 | $ | 3.3 | $ | 69.5 | $ | 58.1 |
VECTREN UTILITY HOLDINGS | |||||||||||||
AND SUBSIDIARY COMPANIES | |||||||||||||
CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||
(Millions, except per share amounts) | |||||||||||||
(Unaudited) | |||||||||||||
Three Months | Six Months | ||||||||||||
Ended June 30 | Ended June 30 | ||||||||||||
2005 | 2004 | 2005 | 2004 | ||||||||||
OPERATING REVENUES: | |||||||||||||
Gas utility | $ | 186.0 | $ | 154.1 | $ | 702.7 | $ | 659.3 | |||||
Electric utility | 96.9 | 89.1 | 191.6 | 177.9 | |||||||||
Other | 0.1 | 0.2 | 0.3 | 0.5 | |||||||||
Total operating revenues | 283.0 | 243.4 | 894.6 | 837.7 | |||||||||
OPERATING EXPENSES: | |||||||||||||
Cost of gas sold | 116.3 | 97.0 | 487.2 | 462.7 | |||||||||
Fuel for electric generation | 29.4 | 23.8 | 56.3 | 46.6 | |||||||||
Purchased electric energy | 3.6 | 6.8 | 5.9 | 11.2 | |||||||||
Other operating | 59.2 | 53.7 | 120.8 | 115.7 | |||||||||
Depreciation and amortization | 34.5 | 31.8 | 67.9 | 61.5 | |||||||||
Taxes other than income taxes | 11.7 | 10.4 | 33.5 | 32.7 | |||||||||
Total operating expenses | 254.7 | 223.5 | 771.6 | 730.4 | |||||||||
OPERATING INCOME | 28.3 | 19.9 | 123.0 | 107.3 | |||||||||
OTHER INCOME (EXPENSE): | |||||||||||||
Equity in earnings of unconsolidated affiliates | - | 0.1 | - | 0.2 | |||||||||
Other - net | 1.1 | 1.4 | 3.3 | 3.2 | |||||||||
Total other income | 1.1 | 1.5 | 3.3 | 3.4 | |||||||||
INTEREST EXPENSE | 16.4 | 16.5 | 33.3 | 33.4 | |||||||||
INCOME BEFORE INCOME TAXES | 13.0 | 4.9 | 93.0 | 77.3 | |||||||||
INCOME TAXES | 5.2 | 2.1 | 37.1 | 29.9 | |||||||||
NET INCOME | $ | 7.8 | $ | 2.8 | $ | 55.9 | $ | 47.4 |
VECTREN CORPORATION | |||||||||||||
AND SUBSIDIARY COMPANIES | |||||||||||||
SELECTED GAS DISTRIBUTION | |||||||||||||
OPERATING STATISTICS | |||||||||||||
(Unaudited) | |||||||||||||
Three Months | Six Months | ||||||||||||
Ended June 30 | Ended June 30 | ||||||||||||
2005 | 2004 | 2005 | 2004 | ||||||||||
GAS OPERATING REVENUES (Millions): | |||||||||||||
Residential | $ | 120.4 | $ | 98.8 | $ | 468.9 | $ | 442.4 | |||||
Commercial | 48.1 | 43.0 | 194.7 | 185.1 | |||||||||
Industrial | 12.7 | 10.9 | 31.7 | 29.0 | |||||||||
Miscellaneous Revenue | 4.8 | 1.4 | 7.4 | 2.8 | |||||||||
$ | 186.0 | $ | 154.1 | $ | 702.7 | $ | 659.3 | ||||||
GAS MARGIN (Millions): | |||||||||||||
Residential | $ | 45.2 | $ | 36.0 | $ | 140.0 | $ | 127.8 | |||||
Commercial | 12.7 | 10.1 | 45.6 | 41.6 | |||||||||
Industrial | 9.7 | 9.2 | 25.3 | 24.1 | |||||||||
Miscellaneous | 2.1 | 1.8 | 4.6 | 3.1 | |||||||||
$ | 69.7 | $ | 57.1 | $ | 215.5 | $ | 196.6 | ||||||
GAS SOLD & TRANSPORTED (MMDth): | |||||||||||||
Residential | 9.2 | 8.5 | 47.6 | 49.9 | |||||||||
Commercial | 4.3 | 4.3 | 20.9 | 22.0 | |||||||||
Industrial | 19.2 | 17.9 | 46.0 | 45.3 | |||||||||
32.7 | 30.7 | 114.5 | 117.2 | ||||||||||
AVERAGE GAS CUSTOMERS | |||||||||||||
Residential | 885,954 | 876,405 | 893,186 | 883,990 | |||||||||
Commercial | 82,870 | 81,590 | 83,586 | 82,484 | |||||||||
Industrial | 1,635 | 1,569 | 1,606 | 1,568 | |||||||||
970,459 | 959,564 | 978,378 | 968,042 | ||||||||||
YTD WEATHER AS A PERCENT OF NORMAL: | |||||||||||||
Heating Degree Days | 88 | % | 73 | % | 92 | % | 92 | % | |||||
VECTREN CORPORATION | |||||||||||||
AND SUBSIDIARY COMPANIES | |||||||||||||
SELECTED ELECTRIC | |||||||||||||
OPERATING STATISTICS | |||||||||||||
(Unaudited) | |||||||||||||
Three Months | Six Months | ||||||||||||
Ended June 30 | Ended June 30 | ||||||||||||
2005 | 2004 | 2005 | 2004 | ||||||||||
ELECTRIC OPERATING REVENUES (Millions): | |||||||||||||
Residential | $ | 29.7 | $ | 29.4 | $ | 58.1 | $ | 56.7 | |||||
Commercial | 23.7 | 22.6 | 44.0 | 41.5 | |||||||||
Industrial | 29.8 | 27.3 | 55.8 | 52.2 | |||||||||
Municipals | 6.6 | 6.0 | 12.2 | 11.4 | |||||||||
Miscellaneous Revenue | 1.5 | 3.0 | 2.4 | 6.6 | |||||||||
Total Retail | 91.3 | 88.3 | 172.5 | 168.4 | |||||||||
Net Wholesale Revenues | 5.6 | 0.8 | 19.1 | 9.5 | |||||||||
$ | 96.9 | $ | 89.1 | $ | 191.6 | $ | 177.9 | ||||||
ELECTRIC MARGIN (Millions): | |||||||||||||
Residential | $ | 22.9 | $ | 23.2 | $ | 45.0 | $ | 44.4 | |||||
Commercial | 16.8 | 16.3 | 31.8 | 30.3 | |||||||||
Industrial | 16.3 | 16.1 | 31.6 | 30.6 | |||||||||
Municipals | 3.5 | 3.5 | 6.8 | 6.6 | |||||||||
Miscellaneous | 1.6 | 1.2 | 2.4 | 2.9 | |||||||||
Total Retail | 61.1 | 60.3 | 117.6 | 114.8 | |||||||||
Net Wholesale Margin | 2.8 | (1.8 | ) | 11.8 | 5.3 | ||||||||
$ | 63.9 | $ | 58.5 | $ | 129.4 | $ | 120.1 | ||||||
ELECTRICITY SOLD (GWh): | |||||||||||||
Residential | 329.0 | 361.1 | 691.3 | 737.1 | |||||||||
Commercial | 336.5 | 354.1 | 640.1 | 649.7 | |||||||||
Industrial | 651.1 | 635.9 | 1,270.0 | 1,258.5 | |||||||||
Municipals | 169.4 | 158.0 | 319.0 | 310.2 | |||||||||
Miscellaneous Sales | 4.3 | 54.2 | 9.1 | 107.5 | |||||||||
Total Retail | 1,490.3 | 1,563.3 | 2,929.5 | 3,063.0 | |||||||||
Wholesale | 632.9 | 593.8 | 1,696.9 | 1,105.1 | |||||||||
2,123.2 | 2,157.1 | 4,626.4 | 4,168.1 | ||||||||||
AVERAGE ELECTRIC CUSTOMERS | |||||||||||||
Residential | 119,720 | 118,723 | 119,776 | 118,830 | |||||||||
Commercial | 18,695 | 18,446 | 18,661 | 18,417 | |||||||||
Industrial | 107 | 107 | 106 | 106 | |||||||||
All Others | 55 | 21 | 55 | 21 | |||||||||
138,577 | 137,297 | 138,598 | 137,374 | ||||||||||
YTD WEATHER AS A PERCENT OF NORMAL: | |||||||||||||
Heating Degree Days | 88 | % | 73 | % | 92 | % | 92 | % | |||||
Cooling Degree Days | 93 | % | 120 | % | 92 | % | 120 | % |