VECTREN CORPORATION & #160; | ||||||||||||||||
AND SUBSIDIARY COMPANIES | ||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||
(Millions, except per share amounts) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months | Twelve Months | |||||||||||||||
Ended December 31 Ended December 31 | ||||||||||||||||
2007 | 2006 | 2007 | 2006 | |||||||||||||
OPERATING REVENUES: | ||||||||||||||||
Gas utility | $ | 379.4 | $ | 383.9 | $ | 1,269.4 | $ | 1,232.5 | ||||||||
Electric utility | 126.3 | 97.8 | 487.9 | 422.2 | ||||||||||||
Nonutility revenues | 139.1 | 127.4 | 524.6 | 386.9 | ||||||||||||
Total operating revenues | 644.8 | 609.1 | 2,281.9 | 2,041.6 | ||||||||||||
OPERATING EXPENSES: | ||||||||||||||||
Cost of gas sold | 255.2 | 264.1 | 847.2 | 841.5 | ||||||||||||
Cost of fuel and purchased power | 45.3 | 35.7 | 174.8 | 151.5 | ||||||||||||
Cost of nonutility revenues | 77.5 | 73.9 | 287.7 | 248.7 | ||||||||||||
Other operating | 122.5 | 98.9 | 456.9 | 341.8 | ||||||||||||
Depreciation and amortization | 45.1 | 44.8 | 184.8 | 172.3 | ||||||||||||
Taxes other than income taxes | 19.1 | 19.6 | 70.0 | 65.3 | ||||||||||||
Total operating expenses | 564.7 | 537.0 | 2,021.4 | 1,821.1 | ||||||||||||
OPERATING INCOME | 80.1 | 72.1 | 260.5 | 220.5 | ||||||||||||
OTHER INCOME: | ||||||||||||||||
Equity in earnings of unconsolidated affiliates | 4.2 | 2.3 | 22.9 | 17.0 | ||||||||||||
Other - net | 13.7 | 1.8 | 36.8 | (2.7 | ) | |||||||||||
Total other income | 17.9 | 4.1 | 59.7 | 14.3 | ||||||||||||
INTEREST EXPENSE | 26.9 | 25.7 | 101.0 | 95.6 | ||||||||||||
INCOME BEFORE INCOME TAXES | 71.1 | 50.5 | 219.2 | 139.2 | ||||||||||||
INCOME TAXES | 31.1 | 15.5 | 76.0 | 30.3 | ||||||||||||
MINORITY INTEREST & PREFERRED DIVIDEND | ||||||||||||||||
REQUIREMENT OF SUBSIDIARIES | 0.1 | 0.1 | 0.1 | 0.1 | ||||||||||||
NET INCOME | $ | 39.9 | $ | 34.9 | $ | 143.1 | $ | 108.8 | ||||||||
AVERAGE COMMON SHARES OUTSTANDING | 75.9 | 75.7 | 75.9 | 75.7 | ||||||||||||
DILUTED COMMON SHARES OUTSTANDING | 76.7 | 76.1 | 76.6 | 76.2 | ||||||||||||
EARNINGS PER SHARE OF COMMON STOCK | ||||||||||||||||
BASIC | $ | 0.53 | $ | 0.46 | $ | 1.89 | $ | 1.44 | ||||||||
DILUTED | $ | 0.52 | $ | 0.46 | $ | 1.87 | $ | 1.43 |
VECTREN UTILITY HOLDINGS | ||||||||||||||||
AND SUBSIDIARY COMPANIES | ||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||
(Millions) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months | Twelve Months | |||||||||||||||
Ended December 31 Ended December 31 | ||||||||||||||||
2007 | 2006 | 2007 | 2006 | |||||||||||||
OPERATING REVENUES: | ||||||||||||||||
Gas utility | $ | 379.4 | $ | 383.9 | $ | 1,269.4 | $ | 1,232.5 | ||||||||
Electric utility | 126.3 | 97.8 | 487.9 | 422.2 | ||||||||||||
Other | 0.4 | 0.4 | 1.7 | 1.8 | ||||||||||||
Total operating revenues | 506.1 | 482.1 | 1,759.0 | 1,656.5 | ||||||||||||
OPERATING EXPENSES: | ||||||||||||||||
Cost of gas sold | 255.2 | 264.1 | 847.2 | 841.5 | ||||||||||||
Cost of fuel and purchased power | 45.3 | 35.7 | 174.8 | 151.5 | ||||||||||||
Other operating | 67.7 | 56.2 | 266.1 | 239.0 | ||||||||||||
Depreciation and amortization | 39.0 | 38.5 | 158.4 | 151.3 | ||||||||||||
Taxes other than income taxes | 18.5 | 19.3 | 68.1 | 64.2 | ||||||||||||
Total operating expenses | 425.7 | 413.8 | 1,514.6 | 1,447.5 | ||||||||||||
OPERATING INCOME | 80.4 | 68.3 | 244.4 | 209.0 | ||||||||||||
OTHER INCOME - NET | 3.2 | 2.8 | 9.4 | 7.6 | ||||||||||||
INTEREST EXPENSE | 21.8 | 20.1 | 80.6 | 77.5 | ||||||||||||
INCOME BEFORE INCOME TAXES | 61.8 | 51.0 | 173.2 | 139.1 | ||||||||||||
INCOME TAXES | 24.9 | 16.6 | 66.7 | 47.7 | ||||||||||||
NET INCOME | $ | 36.9 | $ | 34.4 | $ | 106.5 | $ | 91.4 |
VECTREN CORPORATION | ||||||||
AND SUBSIDIARY COMPANIES | ||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||
(Millions - Unaudited) | ||||||||
December 31, | December 31, | |||||||
2007 | 2006 | |||||||
ASSETS | ||||||||
Current Assets | ||||||||
Cash & cash equivalents | $ | 20.6 | $ | 32.8 | ||||
Accounts receivable - less reserves of $3.7 & | ||||||||
$3.3, respectively | 189.4 | 198.6 | ||||||
Accrued unbilled revenues | 168.2 | 146.5 | ||||||
Inventories | 160.9 | 163.5 | ||||||
Recoverable fuel & natural gas costs | - | 1.8 | ||||||
Prepayments & other current assets | 160.5 | 172.7 | ||||||
Total current assets | 699.6 | 715.9 | ||||||
Utility Plant | ||||||||
Original cost | 4,062.9 | 3,820.2 | ||||||
Less: accumulated depreciation & amortization | 1,523.2 | 1,434.7 | ||||||
Net utility plant | 2,539.7 | 2,385.5 | ||||||
Investments in unconsolidated affiliates | 208.8 | 181.0 | ||||||
Other investments | 77.0 | 74.5 | ||||||
Nonutility property - net | 320.3 | 294.4 | ||||||
Goodwill - net | 238.0 | 237.8 | ||||||
Regulatory assets | 175.3 | 163.5 | ||||||
Other assets | 37.7 | 39.0 | ||||||
TOTAL ASSETS | $ | 4,296.4 | $ | 4,091.6 | ||||
LIABILITIES & SHAREHOLDERS' EQUITY | ||||||||
Current Liabilities | ||||||||
Accounts payable | $ | 187.4 | $ | 180.0 | ||||
Accounts payable to affiliated companies | 83.7 | 89.9 | ||||||
Refundable fuel & natural gas costs | 27.2 | 35.3 | ||||||
Accrued liabilities | 171.8 | 147.2 | ||||||
Short-term borrowings | 557.0 | 464.8 | ||||||
Current maturities of long-term debt | 0.3 | 24.2 | ||||||
Long-term debt subject to tender | - | 20.0 | ||||||
Total current liabilities | 1,027.4 | 961.4 | ||||||
Long-term Debt - Net of Current Maturities & | ||||||||
Debt Subject to Tender | 1,245.4 | 1,208.0 | ||||||
Deferred Income Taxes & Other Liabilities | ||||||||
Deferred income taxes | 318.1 | 260.7 | ||||||
Regulatory liabilities | 307.2 | 291.1 | ||||||
Deferred credits & other liabilities | 164.2 | 195.8 | ||||||
Total deferred credits & other liabilities | 789.5 | 747.6 | ||||||
Minority Interest in Subsidiary | 0.4 | 0.4 | ||||||
Common Shareholders' Equity | ||||||||
Common stock (no par value) – issued & outstanding | ||||||||
76.5 and 76.1 shares, respectively | 532.7 | 525.5 | ||||||
Retained earnings | 688.5 | 643.6 | ||||||
Accumulated other comprehensive income | 12.5 | 5.1 | ||||||
Total common shareholders' equity | 1,233.7 | 1,174.2 | ||||||
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY | $ | 4,296.4 | $ | 4,091.6 |
VECTREN CORPORATION | ||||||||
AND SUBSIDIARY COMPANIES | ||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
(Millions - Unaudited) | ||||||||
Twelve Months | ||||||||
Ended December 31 | ||||||||
2007 | 2006 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
Net income | $ | 143.1 | $ | 108.8 | ||||
Adjustments to reconcile net income to cash from operating activities: | ||||||||
Depreciation & amortization | 184.8 | 172.3 | ||||||
Deferred income taxes & investment tax credits | 27.0 | 1.4 | ||||||
Equity in earnings of unconsolidated affiliates | (22.9 | ) | (17.0 | ) | ||||
Provision for uncollectible accounts | 16.6 | 15.3 | ||||||
Expense portion of pension & postretirement periodic benefit cost | 9.8 | 10.7 | ||||||
Other non-cash charges - net | 4.8 | 11.4 | ||||||
Changes in working capital accounts: | ||||||||
Accounts receivable & accrued unbilled revenue | (29.1 | ) | 108.9 | |||||
Inventories | 2.6 | (17.6 | ) | |||||
Recoverable/refundable fuel & natural gas costs | (6.3 | ) | 41.3 | |||||
Prepayments & other current assets | (3.7 | ) | (21.2 | ) | ||||
Accounts payable, including to affiliated companies | 4.9 | (71.6 | ) | |||||
Accrued liabilities | 4.6 | (23.2 | ) | |||||
Unconsolidated affiliate dividends | 20.8 | 35.8 | ||||||
Changes in noncurrent assets | (21.4 | ) | (25.8 | ) | ||||
Changes in noncurrent liabilities | (37.5 | ) | (19.3 | ) | ||||
Net cash flows from operating activities | 298.1 | 310.2 | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
Proceeds from: | ||||||||
Long-term debt | 16.4 | 92.8 | ||||||
Stock option exercises | 5.2 | - | ||||||
Requirements for: | ||||||||
Dividends on common stock | (96.4 | ) | (93.1 | ) | ||||
Retirement of long-term debt | (23.9 | ) | (124.4 | ) | ||||
Other financing activities | (0.8 | ) | (0.6 | ) | ||||
Net change in short-term borrowings | 92.2 | 164.9 | ||||||
Net cash flows from financing activities | (7.3 | ) | 39.6 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
Proceeds from: | ||||||||
Unconsolidated affiliate distributions | 12.7 | 2.0 | ||||||
Other collections | 38.0 | 3.4 | ||||||
Requirements for: | ||||||||
Capital expenditures, excluding AFUDC equity | (334.5 | ) | (281.4 | ) | ||||
Unconsolidated affiliate investments | (17.5 | ) | (16.7 | ) | ||||
Other investments | (1.7 | ) | (44.7 | ) | ||||
Net cash flows from investing activities | (303.0 | ) | (337.4 | ) | ||||
Net change in cash & cash equivalents | (12.2 | ) | 12.4 | |||||
Cash & cash equivalents at beginning of period | 32.8 | 20.4 | ||||||
Cash & cash equivalents at end of period | $ | 20.6 | $ | 32.8 |
VECTREN CORPORATION & #160; | ||||||||||||||||
AND SUBSIDIARY COMPANIES | ||||||||||||||||
HIGHLIGHTS | ||||||||||||||||
(millions, except per share amounts) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months | Twelve Months | |||||||||||||||
Ended December 31 Ended December 31 | ||||||||||||||||
2007 | 2006 | 2007 | 2006 | |||||||||||||
REPORTED EARNINGS: | ||||||||||||||||
Utility Group | $ | 36.9 | $ | 34.4 | $ | 106.5 | $ | 91.4 | ||||||||
Non-utility Group | ||||||||||||||||
Energy Marketing and Services | 6.7 | 1.9 | 22.3 | 14.9 | ||||||||||||
Coal Mining | (0.7 | ) | 0.7 | 2.0 | 5.0 | |||||||||||
Energy Infrastructure Services | 2.8 | 1.4 | 9.4 | 4.6 | ||||||||||||
Other Businesses | 0.1 | (1.2 | ) | 0.3 | (1.1 | ) | ||||||||||
Total Non-utility Operations | 8.9 | 2.8 | 34.0 | 23.4 | ||||||||||||
Corporate and Other | (0.6 | ) | (0.7 | ) | (0.4 | ) | (0.7 | ) | ||||||||
Sub-Total Operations | 45.2 | 36.5 | 140.1 | 114.1 | ||||||||||||
Synfuels-related | (5.3 | ) | (1.6 | ) | 3.0 | (5.3 | ) | |||||||||
Vectren Consolidated | $ | 39.9 | $ | 34.9 | $ | 143.1 | $ | 108.8 |
VECTREN CORPORATION & #160; | ||||||||||||||||
AND SUBSIDIARY COMPANIES | ||||||||||||||||
SELECTED GAS DISTRIBUTION | ||||||||||||||||
OPERATING STATISTICS 160; | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months | Twelve Months | |||||||||||||||
Ended December 31 Ended December 31 | ||||||||||||||||
2007 | 2006 | 2007 | 2006 | |||||||||||||
GAS OPERATING REVENUES (Millions): | ||||||||||||||||
Residential | $ | 259.9 | $ | 258.4 | $ | 851.1 | $ | 813.6 | ||||||||
Commercial | 99.0 | 103.3 | 339.7 | 339.7 | ||||||||||||
Industrial | 18.0 | 20.0 | 65.5 | 67.1 | ||||||||||||
Miscellaneous Revenue | 2.5 | 2.2 | 13.1 | 12.1 | ||||||||||||
$ | 379.4 | $ | 383.9 | $ | 1,269.4 | $ | 1,232.5 | |||||||||
GAS MARGIN (Millions): | ||||||||||||||||
Residential | $ | 81.7 | $ | 78.5 | $ | 272.1 | $ | 250.4 | ||||||||
Commercial | 25.6 | 25.2 | 85.0 | 79.8 | ||||||||||||
Industrial | 13.4 | 13.8 | 48.3 | 48.0 | ||||||||||||
Miscellaneous | 3.5 | 2.3 | 16.8 | 12.8 | ||||||||||||
$ | 124.2 | $ | 119.8 | $ | 422.2 | $ | 391.0 | |||||||||
GAS SOLD & TRANSPORTED (MMDth): | ||||||||||||||||
Residential | 23.3 | 23.7 | 75.0 | 67.2 | ||||||||||||
Commercial | 10.0 | 10.3 | 33.4 | 30.5 | ||||||||||||
Industrial | 23.7 | 23.7 | 86.2 | 84.9 | ||||||||||||
57.0 | 57.7 | 194.6 | 182.6 | |||||||||||||
AVERAGE GAS CUSTOMERS | ||||||||||||||||
Residential | 904,922 | 903,712 | 901,173 | 895,700 | ||||||||||||
Commercial | 84,263 | 84,067 | 83,934 | 83,938 | ||||||||||||
Industrial | 1,609 | 1,618 | 1,610 | 1,638 | ||||||||||||
990,794 | 989,397 | 986,717 | 981,276 | |||||||||||||
YTD WEATHER AS A PERCENT OF NORMAL: | ||||||||||||||||
Heating Degree Days (Ohio) | 91 | % | 93 | % | 94 | % | 89 | % |
VECTREN CORPORATION | ||||||||||||||||
AND SUBSIDIARY COMPANIES | ||||||||||||||||
SELECTED ELECTRIC 160; | ||||||||||||||||
OPERATING STATISTICS | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months | Twelve Months | |||||||||||||||
Ended December 31 Ended December 31 | ||||||||||||||||
2007 | 2006 | 2007 | 2006 | |||||||||||||
ELECTRIC OPERATING REVENUES (Millions): | ||||||||||||||||
Residential | $ | 36.0 | $ | 28.9 | $ | 159.2 | $ | 130.6 | ||||||||
Commercial | 29.3 | 23.9 | 113.3 | 96.1 | ||||||||||||
Industrial | 34.5 | 31.2 | 139.5 | 128.2 | ||||||||||||
Municipals | 7.9 | 6.0 | 28.0 | 26.0 | ||||||||||||
Miscellaneous Revenue | 2.5 | 2.4 | 8.1 | 11.5 | ||||||||||||
Total Retail | 110.2 | 92.4 | 448.1 | 392.4 | ||||||||||||
Net Wholesale Revenues | 16.1 | 5.4 | 39.8 | 29.8 | ||||||||||||
$ | 126.3 | $ | 97.8 | $ | 487.9 | $ | 422.2 | |||||||||
ELECTRIC MARGIN (Millions): | ||||||||||||||||
Residential | $ | 26.8 | $ | 21.1 | $ | 117.5 | $ | 96.8 | ||||||||
Commercial | 20.0 | 16.2 | 77.2 | 66.1 | ||||||||||||
Industrial | 18.6 | 16.8 | 75.0 | 70.2 | ||||||||||||
Municipals | 4.7 | 2.7 | 14.0 | 12.8 | ||||||||||||
Miscellaneous | 2.4 | 2.4 | 7.8 | 11.2 | ||||||||||||
Total Retail | 72.5 | 59.2 | 291.5 | 257.1 | ||||||||||||
Net Wholesale Margin | 8.5 | 2.9 | 21.6 | 13.6 | ||||||||||||
$ | 81.0 | $ | 62.1 | $ | 313.1 | $ | 270.7 | |||||||||
ELECTRICITY SOLD (GWh): | ||||||||||||||||
Residential | 340.2 | 321.5 | 1,630.5 | 1,468.8 | ||||||||||||
Commercial | 345.0 | 315.8 | 1,412.4 | 1,320.9 | ||||||||||||
Industrial | 596.1 | 586.5 | 2,538.5 | 2,570.4 | ||||||||||||
Municipals | 146.8 | 144.0 | 616.2 | 624.3 | ||||||||||||
Miscellaneous Sales | 4.8 | 5.7 | 18.9 | 20.1 | ||||||||||||
Total Retail | 1,432.9 | 1,373.5 | 6,216.5 | 6,004.5 | ||||||||||||
Wholesale | 377.2 | 135.2 | 921.3 | 898.3 | ||||||||||||
1,810.1 | 1,508.7 | 7,137.8 | 6,902.8 | |||||||||||||
AVERAGE ELECTRIC CUSTOMERS | ||||||||||||||||
Residential | 122,412 | 121,672 | 122,162 | 121,179 | ||||||||||||
Commercial | 18,465 | 18,429 | 18,474 | 18,378 | ||||||||||||
Industrial | 107 | 108 | 109 | 108 | ||||||||||||
All Others | 38 | 36 | 37 | 36 | ||||||||||||
141,022 | 140,245 | 140,782 | 139,701 | |||||||||||||
YTD WEATHER AS A PERCENT OF NORMAL: | ||||||||||||||||
Cooling Degree Days (Indiana) | 133 | % | 95 | % | ||||||||||||
Heating Degree Days (Indiana) | 89 | % | 94 | % | 90 | % | 88 | % |