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 | |||||||||||||||
2008 | 2007 | 2008 | 2007 | |||||||||||||
OPERATING REVENUES: | ||||||||||||||||
Gas utility | $ | 430.3 | $ | 379.4 | $ | 1,432.7 | $ | 1,269.4 | ||||||||
Electric utility | 121.9 | 126.3 | 524.2 | 487.9 | ||||||||||||
Nonutility revenues | 155.1 | 139.1 | 527.8 | 524.6 | ||||||||||||
Total operating revenues | 707.3 | 644.8 | 2,484.7 | 2,281.9 | ||||||||||||
OPERATING EXPENSES: | ||||||||||||||||
Cost of gas sold | 297.1 | 255.2 | 983.1 | 847.2 | ||||||||||||
Cost of fuel and purchased power | 39.7 | 45.3 | 182.9 | 174.8 | ||||||||||||
Cost of nonutility revenues | 83.8 | 77.5 | 282.2 | 287.7 | ||||||||||||
Other operating | 137.9 | 122.5 | 506.3 | 456.9 | ||||||||||||
Depreciation and amortization | 49.8 | 45.1 | 192.3 | 184.8 | ||||||||||||
Taxes other than income taxes | 20.6 | 19.1 | 74.5 | 70.0 | ||||||||||||
Total operating expenses | 628.9 | 564.7 | 2,221.3 | 2,021.4 | ||||||||||||
OPERATING INCOME | 78.4 | 80.1 | 263.4 | 260.5 | ||||||||||||
OTHER INCOME: | ||||||||||||||||
Equity in earnings of unconsolidated affiliates | 8.4 | 4.2 | 37.4 | 22.9 | ||||||||||||
Other income/(expense)- net | (0.3 | ) | 13.7 | 2.1 | 36.8 | |||||||||||
Total other income | 8.1 | 17.9 | 39.5 | 59.7 | ||||||||||||
INTEREST EXPENSE | 25.4 | 26.9 | 97.8 | 101.0 | ||||||||||||
INCOME BEFORE INCOME TAXES | 61.1 | 71.1 | 205.1 | 219.2 | ||||||||||||
INCOME TAXES | 24.0 | 31.1 | 76.1 | 76.0 | ||||||||||||
MINORITY INTEREST | - | 0.1 | - | 0.1 | ||||||||||||
NET INCOME | $ | 37.1 | $ | 39.9 | $ | 129.0 | $ | 143.1 | ||||||||
AVERAGE COMMON SHARES OUTSTANDING | 80.6 | 75.9 | 78.3 | 75.9 | ||||||||||||
DILUTED COMMON SHARES OUTSTANDING | 81.0 | 76.7 | 78.9 | 76.6 | ||||||||||||
EARNINGS PER SHARE OF COMMON STOCK | ||||||||||||||||
BASIC | $ | 0.46 | $ | 0.53 | $ | 1.65 | $ | 1.89 | ||||||||
DILUTED | $ | 0.46 | $ | 0.52 | $ | 1.63 | $ | 1.87 |
VECTREN UTILITY HOLDINGS | ||||||||||||||||
AND SUBSIDIARY COMPANIES | ||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||
(Millions) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months | Twelve Months | |||||||||||||||
Ended December 31 | Ended December 31 | |||||||||||||||
2008 | 2007 | 2008 | 2007 | |||||||||||||
OPERATING REVENUES: | ||||||||||||||||
Gas utility | $ | 430.3 | $ | 379.4 | $ | 1,432.7 | $ | 1,269.4 | ||||||||
Electric utility | 121.9 | 126.3 | 524.2 | 487.9 | ||||||||||||
Other | - | 0.4 | 1.8 | 1.7 | ||||||||||||
Total operating revenues | 552.2 | 506.1 | 1,958.7 | 1,759.0 | ||||||||||||
OPERATING EXPENSES: | ||||||||||||||||
Cost of gas sold | 297.1 | 255.2 | 983.1 | 847.2 | ||||||||||||
Cost of fuel and purchased power | 39.7 | 45.3 | 182.9 | 174.8 | ||||||||||||
Other operating | 82.6 | 67.7 | 300.3 | 266.1 | ||||||||||||
Depreciation and amortization | 42.3 | 39.0 | 165.5 | 158.4 | ||||||||||||
Taxes other than income taxes | 20.5 | 18.5 | 72.3 | 68.1 | ||||||||||||
Total operating expenses | 482.2 | 425.7 | 1,704.1 | 1,514.6 | ||||||||||||
OPERATING INCOME | 70.0 | 80.4 | 254.6 | 244.4 | ||||||||||||
OTHER INCOME (EXPENSE) - NET | (0.9 | ) | 3.2 | 4.0 | 9.4 | |||||||||||
INTEREST EXPENSE | 20.4 | 21.8 | 79.9 | 80.6 | ||||||||||||
INCOME BEFORE INCOME TAXES | 48.7 | 61.8 | 178.7 | 173.2 | ||||||||||||
INCOME TAXES | 18.0 | 24.9 | 67.6 | 66.7 | ||||||||||||
NET INCOME | $ | 30.7 | $ | 36.9 | $ | 111.1 | $ | 106.5 |
VECTREN CORPORATION | ||||||||
AND SUBSIDIARY COMPANIES | ||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||
(Millions - Unaudited) | ||||||||
December 31, | December 31, | |||||||
2008 | 2007 | |||||||
ASSETS | ||||||||
Current Assets | ||||||||
Cash & cash equivalents | $ | 93.2 | $ | 20.6 | ||||
Accounts receivable - less reserves of $5.6 & | ||||||||
$3.7, respectively | 226.7 | 189.4 | ||||||
Accrued unbilled revenues | 197.0 | 168.2 | ||||||
Inventories | 131.0 | 160.9 | ||||||
Recoverable fuel & natural gas costs | 3.1 | - | ||||||
Prepayments & other current assets | 124.6 | 160.5 | ||||||
Total current assets | 775.6 | 699.6 | ||||||
Utility Plant | ||||||||
Original cost | 4,335.3 | 4,062.9 | ||||||
Less: accumulated depreciation & amortization | 1,615.0 | 1,523.2 | ||||||
Net utility plant | 2,720.3 | 2,539.7 | ||||||
Investments in unconsolidated affiliates | 179.1 | 208.8 | ||||||
Other utility and corporate investments | 25.7 | 26.3 | ||||||
Other nonutility investments | 45.9 | 50.7 | ||||||
Nonutility property - net | 390.2 | 320.3 | ||||||
Goodwill - net | 240.2 | 238.0 | ||||||
Regulatory assets | 216.7 | 175.3 | ||||||
Other assets | 39.2 | 37.7 | ||||||
TOTAL ASSETS | $ | 4,632.9 | $ | 4,296.4 | ||||
LIABILITIES & SHAREHOLDERS' EQUITY | ||||||||
Current Liabilities | ||||||||
Accounts payable | $ | 266.1 | $ | 187.4 | ||||
Accounts payable to affiliated companies | 75.2 | 83.7 | ||||||
Refundable fuel & natural gas costs | 4.1 | 27.2 | ||||||
Accrued liabilities | 175.0 | 171.8 | ||||||
Short-term borrowings | 519.5 | 557.0 | ||||||
Current maturities of long-term debt | 0.4 | 0.3 | ||||||
Long-term debt subject to tender | 80.0 | - | ||||||
Total current liabilities | 1,120.3 | 1,027.4 | ||||||
Long-term Debt - Net of Current Maturities & | ||||||||
Debt Subject to Tender | 1,247.9 | 1,245.4 | ||||||
Deferred Income Taxes & Other Liabilities | ||||||||
Deferred income taxes | 353.4 | 318.1 | ||||||
Regulatory liabilities | 315.1 | 307.2 | ||||||
Deferred credits & other liabilities | 244.2 | 164.2 | ||||||
Total deferred credits & other liabilities | 912.7 | 789.5 | ||||||
Minority Interest in Subsidiary | 0.4 | 0.4 | ||||||
Common Shareholders' Equity | ||||||||
Common stock (no par value) – issued & outstanding | ||||||||
81.0 and 76.3 shares, respectively | 659.1 | 532.7 | ||||||
Retained earnings | 712.8 | 688.5 | ||||||
Accumulated other comprehensive income/(loss) | (20.3 | ) | 12.5 | |||||
Total common shareholders' equity | 1,351.6 | 1,233.7 | ||||||
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY | $ | 4,632.9 | $ | 4,296.4 |
VECTREN CORPORATION | ||||||||
AND SUBSIDIARY COMPANIES | ||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
(Millions - Unaudited) | ||||||||
For the twelve months ended | ||||||||
December 31, | ||||||||
2008 | 2007 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
Net income | $ | 129.0 | $ | 143.1 | ||||
Adjustments to reconcile net income to cash from operating activities: | ||||||||
Depreciation & amortization | 192.3 | 184.8 | ||||||
Deferred income taxes & investment tax credits | 79.6 | 27.0 | ||||||
Equity in earnings of unconsolidated affiliates | (37.4 | ) | (22.9 | ) | ||||
Provision for uncollectible accounts | 16.9 | 16.6 | ||||||
Expense portion of pension & postretirement periodic benefit cost | 7.8 | 9.8 | ||||||
Other non-cash charges - net | 25.4 | 4.8 | ||||||
Changes in working capital accounts: | ||||||||
Accounts receivable & accrued unbilled revenue | (83.0 | ) | (29.1 | ) | ||||
Inventories | 26.4 | 2.6 | ||||||
Recoverable/refundable fuel & natural gas costs | (26.2 | ) | (6.3 | ) | ||||
Prepayments & other current assets | 9.8 | (3.7 | ) | |||||
Accounts payable, including to affiliated companies | 65.7 | 4.9 | ||||||
Accrued liabilities | 16.5 | 4.6 | ||||||
Unconsolidated affiliate dividends | 15.5 | 20.8 | ||||||
Changes in noncurrent assets | 19.6 | (21.4 | ) | |||||
Changes in noncurrent liabilities | (34.7 | ) | (37.5 | ) | ||||
Net cash flows from operating activities | 423.2 | 298.1 | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
Proceeds from: | ||||||||
Common stock issuance | 124.9 | - | ||||||
Long-term debt | 171.4 | 16.4 | ||||||
Stock option exercises | 0.8 | 5.2 | ||||||
Requirements for: | ||||||||
Dividends on common stock | (102.6 | ) | (96.4 | ) | ||||
Retirement of long-term debt | (104.9 | ) | (23.9 | ) | ||||
Other financing activities | - | (0.8 | ) | |||||
Net change in short-term borrowings | (37.8 | ) | 92.2 | |||||
Net cash flows from financing activities | 51.8 | (7.3 | ) | |||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
Proceeds from: | ||||||||
Unconsolidated affiliate distributions | 0.2 | 12.7 | ||||||
Other collections | 6.4 | 38.0 | ||||||
Requirements for: | ||||||||
Capital expenditures, excluding AFUDC equity | (391.0 | ) | (334.5 | ) | ||||
Unconsolidated affiliate investments | (0.6 | ) | (17.5 | ) | ||||
Other investments | (17.4 | ) | (1.7 | ) | ||||
Net cash flows from investing activities | (402.4 | ) | (303.0 | ) | ||||
Net change in cash & cash equivalents | 72.6 | (12.2 | ) | |||||
Cash & cash equivalents at beginning of period | 20.6 | 32.8 | ||||||
Cash & cash equivalents at end of period | $ | 93.2 | $ | 20.6 |
VECTREN CORPORATION | ||||||||||||||||
AND SUBSIDIARY COMPANIES | ||||||||||||||||
HIGHLIGHTS | ||||||||||||||||
(millions, except per share amounts) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months | Twelve Months | |||||||||||||||
Ended December 31 | Ended December 31 | |||||||||||||||
2008 | 2007 | 2008 | 2007 | |||||||||||||
REPORTED EARNINGS: | ||||||||||||||||
Utility Group | $ | 30.7 | $ | 36.9 | $ | 111.1 | $ | 106.5 | ||||||||
Non-utility Group | ||||||||||||||||
Energy Marketing and Services | 5.6 | 6.7 | 18.0 | 22.3 | ||||||||||||
Coal Mining | (3.0 | ) | (0.7 | ) | (4.6 | ) | 2.0 | |||||||||
Energy Infrastructure Services | 5.9 | 2.8 | 11.4 | 9.4 | ||||||||||||
Other Businesses | (1.7 | ) | 0.1 | - | 0.3 | |||||||||||
Commercial Real Estate Impairment Charge | - | - | (5.9 | ) | - | |||||||||||
Total Non-utility Operations | 6.8 | 8.9 | 18.9 | 34.0 | ||||||||||||
Corporate and Other | (0.4 | ) | (0.6 | ) | (1.0 | ) | (0.4 | ) | ||||||||
Sub-Total Operations | 37.1 | 45.2 | 129.0 | 140.1 | ||||||||||||
Synfuels-related | - | (5.3 | ) | - | 3.0 | |||||||||||
Vectren Consolidated | $ | 37.1 | $ | 39.9 | $ | 129.0 | $ | 143.1 |
VECTREN CORPORATION | ||||||||||||||||
AND SUBSIDIARY COMPANIES | ||||||||||||||||
SELECTED GAS DISTRIBUTION | ||||||||||||||||
OPERATING STATISTICS | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months | Twelve Months | |||||||||||||||
Ended December 31 | Ended December 31 | |||||||||||||||
2008 | 2007 | 2008 | 2007 | |||||||||||||
GAS OPERATING REVENUES (Millions): | ||||||||||||||||
Residential | $ | 295.5 | $ | 259.9 | $ | 958.9 | $ | 851.1 | ||||||||
Commercial | 114.1 | 99.2 | 392.7 | 339.9 | ||||||||||||
Industrial | 18.9 | 17.8 | 68.8 | 64.7 | ||||||||||||
Other Revenue | 1.8 | 2.5 | 12.3 | 13.7 | ||||||||||||
$ | 430.3 | $ | 379.4 | $ | 1,432.7 | $ | 1,269.4 | |||||||||
GAS MARGIN (Millions): | ||||||||||||||||
Residential | $ | 89.5 | $ | 83.6 | $ | 292.2 | $ | 275.1 | ||||||||
Commercial | 27.7 | 25.7 | 92.9 | 85.8 | ||||||||||||
Industrial | 14.2 | 13.5 | 52.2 | 48.7 | ||||||||||||
Other | 1.8 | 1.4 | 12.3 | 12.6 | ||||||||||||
$ | 133.2 | $ | 124.2 | $ | 449.6 | $ | 422.2 | |||||||||
GAS SOLD & TRANSPORTED (MMDth): | ||||||||||||||||
Residential | 26.5 | 23.3 | 79.2 | 75.0 | ||||||||||||
Commercial | 11.7 | 10.0 | 35.6 | 33.4 | ||||||||||||
Industrial | 24.0 | 23.7 | 91.5 | 86.2 | ||||||||||||
62.2 | 57.0 | 206.3 | 194.6 | |||||||||||||
AVERAGE GAS CUSTOMERS | ||||||||||||||||
Residential | 904,163 | 904,922 | 901,131 | 901,173 | ||||||||||||
Commercial | 84,107 | 84,263 | 83,940 | 83,934 | ||||||||||||
Industrial | 1,622 | 1,609 | 1,614 | 1,610 | ||||||||||||
989,892 | 990,794 | 986,685 | 986,717 | |||||||||||||
YTD WEATHER AS A PERCENT OF NORMAL: | ||||||||||||||||
Heating Degree Days (Ohio) | 105 | % | 91 | % | 102 | % | 94 | % |
VECTREN CORPORATION | ||||||||||||||||
AND SUBSIDIARY COMPANIES | ||||||||||||||||
SELECTED ELECTRIC | ||||||||||||||||
OPERATING STATISTICS | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months | Twelve Months | |||||||||||||||
Ended December 31 | Ended December 31 | |||||||||||||||
2008 | 2007 | 2008 | 2007 | |||||||||||||
ELECTRIC OPERATING REVENUES (Millions): | ||||||||||||||||
Residential | $ | 37.2 | $ | 37.5 | $ | 171.0 | $ | 161.3 | ||||||||
Commercial | 30.7 | 30.6 | 127.1 | 115.1 | ||||||||||||
Industrial | 33.1 | 37.0 | 150.5 | 142.8 | ||||||||||||
Municipals | - | 3.2 | 1.0 | 21.4 | ||||||||||||
Other Revenue | 2.8 | 2.6 | 7.7 | 8.2 | ||||||||||||
Total Retail | 103.8 | 110.9 | 457.3 | 448.8 | ||||||||||||
Net Wholesale Revenues | 18.1 | 15.4 | 66.9 | 39.1 | ||||||||||||
$ | 121.9 | $ | 126.3 | $ | 524.2 | $ | 487.9 | |||||||||
ELECTRIC MARGIN (Millions): | ||||||||||||||||
Residential | $ | 28.8 | $ | 28.3 | $ | 129.0 | $ | 119.6 | ||||||||
Commercial | 22.0 | 21.3 | 89.6 | 79.0 | ||||||||||||
Industrial | 18.4 | 21.0 | 82.9 | 78.3 | ||||||||||||
Municipals | - | 0.1 | - | 7.4 | ||||||||||||
Other | 2.7 | 2.5 | 7.3 | 7.9 | ||||||||||||
Total Retail | 71.9 | 73.2 | 308.8 | 292.2 | ||||||||||||
Net Wholesale Margin | 10.3 | 7.8 | 32.5 | 20.9 | ||||||||||||
$ | 82.2 | $ | 81.0 | $ | 341.3 | $ | 313.1 | |||||||||
ELECTRICITY SOLD (GWh): | ||||||||||||||||
Residential | 331.4 | 340.2 | 1,513.8 | 1,630.5 | ||||||||||||
Commercial | 323.5 | 345.0 | 1,336.7 | 1,412.4 | ||||||||||||
Industrial | 549.6 | 596.1 | 2,409.1 | 2,538.5 | ||||||||||||
Municipals | - | 146.8 | 44.3 | 616.2 | ||||||||||||
Other Sales - Street Lighting | 5.5 | 4.8 | 19.5 | 18.9 | ||||||||||||
Total Retail | 1,210.0 | 1,432.9 | 5,323.4 | 6,216.5 | ||||||||||||
Wholesale | 401.5 | 377.2 | 1,512.9 | 921.3 | ||||||||||||
1,611.5 | 1,810.1 | 6,836.3 | 7,137.8 | |||||||||||||
AVERAGE ELECTRIC CUSTOMERS | ||||||||||||||||
Residential | 122,576 | 122,412 | 122,522 | 122,162 | ||||||||||||
Commercial | 18,385 | 18,465 | 18,422 | 18,474 | ||||||||||||
Industrial | 103 | 107 | 103 | 109 | ||||||||||||
Other | 34 | 38 | 34 | 37 | ||||||||||||
141,098 | 141,022 | 141,081 | 140,782 | |||||||||||||
YTD WEATHER AS A PERCENT OF NORMAL: | ||||||||||||||||
Cooling Degree Days (Indiana) | 100 | % | 133 | % | ||||||||||||
Heating Degree Days (Indiana) | 104 | % | 89 | % | 102 | % | 90 | % |