Ex. 99.2 | |||||||||||||
| VECTREN CORPORATION | |||||||||||||
| AND SUBSIDIARY COMPANIES | |||||||||||||
| CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||
| (Millions, except per share amounts) | |||||||||||||
| (Unaudited) | |||||||||||||
| Three Months | Twelve Months | ||||||||||||
| Ended December 31 | Ended December 31 | ||||||||||||
| 2005 | 2004 | 2005 | 2004 | ||||||||||
| OPERATING REVENUES: | |||||||||||||
| Gas utility | $ | 520.2 | $ | 354.6 | $ | 1,359.7 | $ | 1,126.2 | |||||
| Electric utility | 101.1 | 91.1 | 421.4 | 371.3 | |||||||||
| Energy services and other | 92.5 | 67.7 | 246.9 | 192.3 | |||||||||
| Total operating revenues | 713.8 | 513.4 | 2,028.0 | 1,689.8 | |||||||||
| OPERATING EXPENSES: | |||||||||||||
| Cost of gas sold | 404.5 | 248.7 | 973.3 | 778.5 | |||||||||
| Fuel for electric generation | 30.7 | 23.7 | 126.3 | 96.1 | |||||||||
| Purchased electric energy | 3.1 | 4.1 | 17.8 | 20.7 | |||||||||
| Cost of energy services and other | 75.5 | 53.3 | 191.0 | 143.5 | |||||||||
| Other operating | 78.1 | 61.2 | 282.2 | 252.0 | |||||||||
| Depreciation and amortization | 41.4 | 36.5 | 158.2 | 140.1 | |||||||||
| Taxes other than income taxes | 21.7 | 16.2 | 66.1 | 59.4 | |||||||||
| Total operating expenses | 655.0 | 443.7 | 1,814.9 | 1,490.3 | |||||||||
| OPERATING INCOME | 58.8 | 69.7 | 213.1 | 199.5 | |||||||||
| OTHER INCOME: | |||||||||||||
| Equity in earnings of unconsolidated affiliates | 33.6 | 7.1 | 45.6 | 20.6 | |||||||||
| Other - net | - | 2.5 | 6.2 | 4.6 | |||||||||
| Total other income | 33.6 | 9.6 | 51.8 | 25.2 | |||||||||
| INTEREST EXPENSE | 23.1 | 20.2 | 83.9 | 77.7 | |||||||||
| INCOME BEFORE INCOME TAXES | 69.3 | 59.1 | 181.0 | 147.0 | |||||||||
| INCOME TAXES | 18.4 | 19.0 | 44.1 | 39.0 | |||||||||
| MINORITY INTEREST & PREFERRED DIVIDEND REQUIREMENT OF SUBSIDIARIES | 0.1 | - | 0.1 | 0.1 | |||||||||
| NET INCOME | $ | 50.8 | $ | 40.1 | $ | 136.8 | $ | 107.9 | |||||
| AVERAGE COMMON SHARES OUTSTANDING | 75.7 | 75.6 | 75.6 | 75.6 | |||||||||
| DILUTED COMMON SHARES OUTSTANDING | 76.0 | 76.0 | 76.1 | 75.9 | |||||||||
| EARNINGS PER SHARE OF COMMON STOCK | |||||||||||||
| BASIC | $ | 0.67 | $ | 0.53 | $ | 1.81 | $ | 1.43 | |||||
| DILUTED | $ | 0.67 | $ | 0.53 | $ | 1.80 | $ | 1.42 | |||||
| AND SUBSIDIARY COMPANIES | |||||||||||||
| CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||
| (Millions, except per share amounts) | |||||||||||||
| (Unaudited) | |||||||||||||
| Three Months | Twelve Months | ||||||||||||
| Ended December 31 | Ended December 31 | ||||||||||||
| 2005 | 2004 | 2005 | 2004 | ||||||||||
| OPERATING REVENUES: | |||||||||||||
| Gas utility | $ | 520.2 | $ | 354.6 | $ | 1,359.7 | $ | 1,126.2 | |||||
| Electric utility | 101.1 | 91.1 | 421.4 | 371.3 | |||||||||
| Other | 0.2 | - | 0.7 | 0.5 | |||||||||
| Total operating revenues | 621.5 | 445.7 | 1,781.8 | 1,498.0 | |||||||||
| OPERATING EXPENSES: | |||||||||||||
| Cost of gas sold | 404.5 | 248.7 | 973.3 | 778.5 | |||||||||
| Fuel for electric generation | 30.7 | 23.7 | 126.3 | 96.1 | |||||||||
| Purchased electric energy | 3.1 | 4.1 | 17.8 | 20.7 | |||||||||
| Other operating | 61.6 | 52.7 | 241.3 | 220.4 | |||||||||
| Depreciation and amortization | 37.1 | 33.3 | 141.3 | 127.8 | |||||||||
| Taxes other than income taxes | 21.6 | 15.8 | 65.2 | 58.2 | |||||||||
| Total operating expenses | 558.6 | 378.3 | 1,565.2 | 1,301.7 | |||||||||
| OPERATING INCOME | 62.9 | 67.4 | 216.6 | 196.3 | |||||||||
| OTHER INCOME (EXPENSE): | |||||||||||||
| Equity in earnings of unconsolidated affiliates | - | - | - | 0.2 | |||||||||
| Other - net | 1.3 | 1.4 | 5.9 | 7.1 | |||||||||
| Total other income | 1.3 | 1.4 | 5.9 | 7.3 | |||||||||
| INTEREST EXPENSE | 19.1 | 17.2 | 69.9 | 67.4 | |||||||||
| INCOME BEFORE INCOME TAXES | 45.1 | 51.6 | 152.6 | 136.2 | |||||||||
| INCOME TAXES | 14.8 | 20.4 | 57.5 | 53.1 | |||||||||
| NET INCOME | $ | 30.3 | $ | 31.2 | $ | 95.1 | $ | 83.1 | |||||
| VECTREN CORPORATION | |||||||
| AND SUBSIDIARY COMPANIES | |||||||
| CONSOLIDATED BALANCE SHEETS | |||||||
| (Millions - Unaudited) | |||||||
| December 31, | |||||||
| 2005 | 2004 | ||||||
| ASSETS | |||||||
| Current Assets | |||||||
| Cash & cash equivalents | $ | 20.4 | $ | 9.6 | |||
| Accounts receivable - less reserves of $2.8 & | |||||||
| $2.0, respectively | 197.8 | 173.5 | |||||
| Accrued unbilled revenues | 240.6 | 176.6 | |||||
| Inventories | 144.6 | 72.8 | |||||
| Recoverable fuel & natural gas costs | 15.4 | 17.6 | |||||
| Prepayments & other current assets | 106.4 | 136.2 | |||||
| Total current assets | 725.2 | 586.3 | |||||
| Utility Plant | |||||||
| Original cost | 3,632.0 | 3,465.2 | |||||
| Less: accumulated depreciation & amortization | 1,380.1 | 1,309.0 | |||||
| Net utility plant | 2,251.9 | 2,156.2 | |||||
| Investments in unconsolidated affiliates | 214.7 | 180.0 | |||||
| Other investments | 111.6 | 115.1 | |||||
| Non-utility property - net | 240.3 | 229.2 | |||||
| Goodwill - net | 207.1 | 207.1 | |||||
| Regulatory assets | 89.9 | 82.5 | |||||
| Other assets | 27.4 | 30.5 | |||||
| TOTAL ASSETS | $ | 3,868.1 | $ | 3,586.9 | |||
| LIABILITIES & SHAREHOLDERS' EQUITY | |||||||
| Current Liabilities | |||||||
| Accounts payable | $ | 159.0 | $ | 123.8 | |||
| Accounts payable to affiliated companies | 162.3 | 109.3 | |||||
| Refundable fuel & natural gas costs | 7.6 | 6.3 | |||||
| Accrued liabilities | 156.6 | 125.8 | |||||
| Short-term borrowings | 299.9 | 412.4 | |||||
| Current maturities of long-term debt | 0.4 | 38.5 | |||||
| Long-term debt subject to tender | 53.7 | 10.0 | |||||
| Total current liabilities | 839.5 | 826.1 | |||||
| Long-term Debt - Net of Current Maturities & | |||||||
| Debt Subject to Tender | 1,198.0 | 1,016.6 | |||||
| Deferred Income Taxes & Other Liabilities | |||||||
| Deferred income taxes | 227.3 | 234.0 | |||||
| Regulatory liabilities | 272.9 | 251.7 | |||||
| Deferred credits & other liabilities | 186.7 | 163.2 | |||||
| Total deferred credits & other liabilities | 686.9 | 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 | |||||||
| 76.0 and 75.9 shares, respectively | 528.1 | 526.8 | |||||
| Retained earnings | 628.8 | 583.0 | |||||
| Accumulated other comprehensive loss | (13.6 | ) | (15.0 | ) | |||
| Total common shareholders' equity | 1,143.3 | 1,094.8 | |||||
| TOTAL LIABILITIES & SHAREHOLDERS' EQUITY | $ | 3,868.1 | $ | 3,586.9 | |||
| VECTREN CORPORATION | |||||||
| AND SUBSIDIARY COMPANIES | |||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
| (Millions - Unaudited) | |||||||
| December 31, | |||||||
| 2005 | 2004 | ||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||
| Net income | $ | 136.8 | $ | 107.9 | |||
| Adjustments to reconcile net income to cash from operating activities: | |||||||
| Depreciation & amortization | 158.2 | 140.1 | |||||
| Deferred income taxes & investment tax credits | (8.6 | ) | 5.9 | ||||
| Equity in earnings of unconsolidated affiliates | (45.6 | ) | (20.6 | ) | |||
| Provision for uncollectible accounts | 15.1 | 11.9 | |||||
| Expense portion of pension & postretirement periodic benefit cost | 10.7 | 11.8 | |||||
| Other non-cash charges - net | 1.9 | 8.3 | |||||
| Changes in working capital accounts: | |||||||
| Accounts receivable & accrued unbilled revenue | (102.9 | ) | (84.0 | ) | |||
| Inventories | (71.9 | ) | 0.4 | ||||
| Recoverable fuel & natural gas costs | 3.5 | 8.9 | |||||
| Prepayments & other current assets | 36.1 | (10.2 | ) | ||||
| Accounts payable, including to affiliated companies | 101.2 | 42.5 | |||||
| Accrued liabilities | 27.4 | 11.2 | |||||
| Unconsolidated affiliate dividends | 18.8 | 22.3 | |||||
| Changes in noncurrent assets | (6.9 | ) | (3.5 | ) | |||
| Changes in noncurrent liabilities | (5.4 | ) | (14.9 | ) | |||
| Net cash flows from operating activities | 268.4 | 238.0 | |||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
| Proceeds from: | |||||||
| Long-term debt - net of issuance costs | 274.2 | 32.4 | |||||
| Stock option exercises & other stock plans | - | 4.5 | |||||
| Requirements for: | |||||||
| Dividends on common stock | (90.5 | ) | (87.3 | ) | |||
| Retirement of long-term debt, including premiums paid | (88.5 | ) | (70.7 | ) | |||
| Redemption of preferred stock of subsidiary | (0.1 | ) | (0.1 | ) | |||
| Net change in short-term borrowings | (112.5 | ) | 139.5 | ||||
| Other financing activities | (0.6 | ) | - | ||||
| Net cash flows from financing activities | (18.0 | ) | 18.3 | ||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
| Proceeds from: | |||||||
| Unconsolidated affiliate distributions | 6.9 | 3.2 | |||||
| Notes receivable & other collections | 4.3 | 9.3 | |||||
| Requirements for: | |||||||
| Capital expenditures, excluding AFUDC equity | (231.6 | ) | (252.5 | ) | |||
| Unconsolidated affiliate investments | (19.2 | ) | (18.2 | ) | |||
| Notes receivable & other investments | - | (3.8 | ) | ||||
| Net cash flows from investing activities | (239.6 | ) | (262.0 | ) | |||
| Net decrease in cash & cash equivalents | 10.8 | (5.7 | ) | ||||
| Cash & cash equivalents at beginning of period | 9.6 | 15.3 | |||||
| Cash & cash equivalents at end of period | $ | 20.4 | $ | 9.6 | |||
| VECTREN CORPORATION | |||||||||||||
| AND SUBSIDIARY COMPANIES | |||||||||||||
| HIGHLIGHTS | |||||||||||||
| (millions, except per share amounts) | |||||||||||||
| (Unaudited) | |||||||||||||
| Three Months | Twelve Months | ||||||||||||
| Ended December 31 | Ended December 31 | ||||||||||||
| 2005 | 2004 | 2005 | 2004 | ||||||||||
| REPORTED EARNINGS: | |||||||||||||
| Utility Group | $ | 30.3 | $ | 31.2 | $ | 95.1 | $ | 83.1 | |||||
| Non-utility Group | |||||||||||||
| Energy Marketing and Services | 19.3 | 7.5 | 29.3 | 16.6 | |||||||||
| Mining Operations | 1.1 | (1.2 | ) | 5.3 | 0.4 | ||||||||
| Synfuels related | 1.9 | 2.6 | 11.7 | 12.1 | |||||||||
| Total Coal Mining | 3.0 | 1.4 | 17.0 | 12.5 | |||||||||
| Utility Infrastructure Services | 0.2 | 0.5 | 0.7 | 1.8 | |||||||||
| Other Businesses | 2.6 | (0.2 | ) | 1.2 | (4.5 | ) | |||||||
| Total Non-utility Group | 25.1 | 9.2 | 48.2 | 26.4 | |||||||||
| Corporate and Other | (4.6 | ) | (0.3 | ) | (6.5 | ) | (1.6 | ) | |||||
| Vectren Consolidated | $ | 50.8 | $ | 40.1 | $ | 136.8 | $ | 107.9 | |||||
| VECTREN CORPORATION | |||||||||||||
| AND SUBSIDIARY COMPANIES | |||||||||||||
| SELECTED GAS DISTRIBUTION | |||||||||||||
| OPERATING STATISTICS | |||||||||||||
| (Unaudited) | |||||||||||||
| Three Months | Twelve Months | ||||||||||||
| Ended December 31 | Ended December 31 | ||||||||||||
| 2005 | 2004 | 2005 | 2004 | ||||||||||
| GAS OPERATING REVENUES (Millions): | |||||||||||||
| Residential | $ | 350.4 | $ | 241.5 | $ | 899.7 | $ | 750.4 | |||||
| Commercial | 146.9 | 96.0 | 383.2 | 316.7 | |||||||||
| Industrial | 22.8 | 15.8 | 68.4 | 55.3 | |||||||||
| Miscellaneous Revenue | 0.1 | 1.3 | 8.4 | 3.8 | |||||||||
| $ | 520.2 | $ | 354.6 | $ | 1,359.7 | $ | 1,126.2 | ||||||
| GAS MARGIN (Millions): | |||||||||||||
| Residential | $ | 77.7 | $ | 69.9 | $ | 252.5 | $ | 226.2 | |||||
| Commercial | 25.1 | 21.9 | 80.7 | 71.5 | |||||||||
| Industrial | 13.9 | 12.8 | 48.3 | 45.7 | |||||||||
| Miscellaneous | (1.0 | ) | 1.3 | 4.9 | 4.3 | ||||||||
| $ | 115.7 | $ | 105.9 | $ | 386.4 | $ | 347.7 | ||||||
| GAS SOLD & TRANSPORTED (MMDth): | |||||||||||||
| Residential | 26.4 | 25.0 | 78.0 | 79.0 | |||||||||
| Commercial | 11.2 | 10.6 | 34.9 | 35.5 | |||||||||
| Industrial | 23.8 | 23.4 | 87.2 | 85.8 | |||||||||
| 61.4 | 59.0 | 200.1 | 200.3 | ||||||||||
| YEAR END GAS CUSTOMERS | |||||||||||||
| Residential | 906,246 | 899,345 | |||||||||||
| Commercial | 84,455 | 83,876 | |||||||||||
| Industrial | 1,657 | 1,570 | |||||||||||
| 992,358 | 984,791 | ||||||||||||
| YTD WEATHER AS A PERCENT OF NORMAL: | |||||||||||||
| Heating Degree Days | 103 | % | 91 | % | 95 | % | 91 | % | |||||
| VECTREN CORPORATION | |||||||||||||
| AND SUBSIDIARY COMPANIES | |||||||||||||
| SELECTED ELECTRIC | |||||||||||||
| OPERATING STATISTICS | |||||||||||||
| (Unaudited) | |||||||||||||
| Three Months | Twelve Months | ||||||||||||
| Ended December 31 | Ended December 31 | ||||||||||||
| 2005 | 2004 | 2005 | 2004 | ||||||||||
| ELECTRIC OPERATING REVENUES (Millions): | |||||||||||||
| Residential | $ | 29.1 | $ | 26.3 | $ | 135.3 | $ | 118.8 | |||||
| Commercial | 23.7 | 21.3 | 95.8 | 86.2 | |||||||||
| Industrial | 29.6 | 26.2 | 119.5 | 106.4 | |||||||||
| Municipals | 5.8 | 5.2 | 25.8 | 23.6 | |||||||||
| Miscellaneous Revenue | 2.7 | 3.6 | 7.0 | 12.5 | |||||||||
| Total Retail | 90.9 | 82.6 | 383.4 | 347.5 | |||||||||
| Net Wholesale Revenues | 10.2 | 8.5 | 38.0 | 23.8 | |||||||||
| $ | 101.1 | $ | 91.1 | $ | 421.4 | $ | 371.3 | ||||||
| ELECTRIC MARGIN (Millions): | |||||||||||||
| Residential | $ | 22.4 | $ | 21.0 | $ | 103.0 | $ | 93.7 | |||||
| Commercial | 17.2 | 16.1 | 67.8 | 63.6 | |||||||||
| Industrial | 17.3 | 16.2 | 66.9 | 63.7 | |||||||||
| Municipals | 3.1 | 3.1 | 13.1 | 13.9 | |||||||||
| Miscellaneous | 2.6 | 1.6 | 6.7 | 4.7 | |||||||||
| Total Retail | 62.6 | 58.0 | 257.5 | 239.6 | |||||||||
| Net Wholesale Margin | 4.7 | 5.3 | 19.8 | 14.9 | |||||||||
| $ | 67.3 | $ | 63.3 | $ | 277.3 | $ | 254.5 | ||||||
| ELECTRICITY SOLD (GWh): | |||||||||||||
| Residential | 336.8 | 316.0 | 1,564.9 | 1,495.4 | |||||||||
| Commercial | 332.4 | 317.2 | 1,368.3 | 1,335.5 | |||||||||
| Industrial | 621.0 | 599.6 | 2,575.9 | 2,511.2 | |||||||||
| Municipals | 150.8 | 139.1 | 670.3 | 625.9 | |||||||||
| Miscellaneous Sales | 5.8 | 5.7 | 19.6 | 20.0 | |||||||||
| Total Retail | 1,446.8 | 1,377.6 | 6,199.0 | 5,988.0 | |||||||||
| Wholesale | 625.3 | 1,189.7 | 3,049.2 | 3,526.0 | |||||||||
| 2,072.1 | 2,567.3 | 9,248.2 | 9,514.0 | ||||||||||
| YEAR END ELECTRIC CUSTOMERS | |||||||||||||
| Residential | 120,679 | 119,970 | |||||||||||
| Commercial | 18,677 | 18,522 | |||||||||||
| Industrial | 107 | 107 | |||||||||||
| All Others | 51 | 21 | |||||||||||
| 139,514 | 138,620 | ||||||||||||
| YTD WEATHER AS A PERCENT OF NORMAL: | |||||||||||||
| Cooling Degree Days | 109 | % | 90 | % | |||||||||
| Heating Degree Days | 103 | % | 91 | % | 95 | % | 91 | % | |||||
Net Income | Range | ||
| Utility Operations | $91 | to | $98 |
| Energy Marketing and Services | 15 | to | 20 |
| Mining Operations | 6 | to | 9 |
| Energy Infrastructure Services | 6 | to | 9 |
| Other Businesses | 0 | to | 0 |
Nonutility Operations | 27 | to | 38 |
| Synfuels | 12 | to | 13 |
Total Nonutility | $39 | to | $51 |
Utility Operations | Range | ||
| Gas Margin | $400 | to | $410 |
| Electric Margin | 280 | to | 290 |
| O & M | 240 | to | 245 |
| Depreciation & Amortization | 151 | to | 153 |
| Interest | 75 | to | 79 |
| Other Taxes | 64 | to | 66 |
| Income Taxes | 66 | to | 69 |
2006 Utility Capital Expenditures | $246 | ||
2006 EPS Guidance | Range | ||
| Utility | $1.20 | to | $1.30 |
| Nonutility | 0.36 | to | 0.50 |
| Corporate & Other | (0.01) | to | 0.00 |
| Synfuels | 0.16 | to | 0.17 |
| Total Vectren | $1.75 | to | $1.95 |
