Exhbit 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 | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
OPERATING REVENUES: | ||||||||||||||||
Gas utility | $ | 306.1 | $ | 430.3 | $ | 1,066.0 | $ | 1,432.7 | ||||||||
Electric utility | 127.9 | 121.9 | 528.6 | 524.2 | ||||||||||||
Nonutility revenues | 134.6 | 155.1 | 494.3 | 527.8 | ||||||||||||
Total operating revenues | 568.6 | 707.3 | 2,088.9 | 2,484.7 | ||||||||||||
OPERATING EXPENSES: | ||||||||||||||||
Cost of gas sold | 177.5 | 297.1 | 618.1 | 983.1 | ||||||||||||
Cost of fuel and purchased power | 46.9 | 39.7 | 194.3 | 182.9 | ||||||||||||
Cost of nonutility revenues | 53.8 | 83.8 | 207.5 | 282.2 | ||||||||||||
Other operating | 136.4 | 137.9 | 514.0 | 506.3 | ||||||||||||
Depreciation and amortization | 53.6 | 49.8 | 211.9 | 192.3 | ||||||||||||
Taxes other than income taxes | 15.0 | 20.6 | 63.0 | 74.5 | ||||||||||||
Total operating expenses | 483.2 | 628.9 | 1,808.8 | 2,221.3 | ||||||||||||
OPERATING INCOME | 85.4 | 78.4 | 280.1 | 263.4 | ||||||||||||
OTHER INCOME (EXPENSE): | ||||||||||||||||
Equity in earnings of unconsolidated affiliates | 14.7 | 8.4 | 3.4 | 37.4 | ||||||||||||
Other income (loss)- net | 3.1 | (0.3 | ) | 13.7 | 2.1 | |||||||||||
Total other income | 17.8 | 8.1 | 17.1 | 39.5 | ||||||||||||
INTEREST EXPENSE | 26.0 | 25.4 | 100.0 | 97.8 | ||||||||||||
INCOME BEFORE INCOME TAXES | 77.2 | 61.1 | 197.2 | 205.1 | ||||||||||||
INCOME TAXES | 22.6 | 24.0 | 64.1 | 76.1 | ||||||||||||
NET INCOME | $ | 54.6 | $ | 37.1 | $ | 133.1 | $ | 129.0 | ||||||||
AVERAGE COMMON SHARES OUTSTANDING | 80.8 | 80.6 | 80.7 | 78.3 | ||||||||||||
DILUTED COMMON SHARES OUTSTANDING | 81.0 | 80.8 | 81.0 | 78.7 | ||||||||||||
EARNINGS PER SHARE OF COMMON STOCK | ||||||||||||||||
BASIC | $ | 0.68 | $ | 0.46 | $ | 1.65 | $ | 1.65 | ||||||||
DILUTED | $ | 0.67 | $ | 0.46 | $ | 1.64 | $ | 1.63 |
VECTREN UTILITY HOLDINGS | ||||||||||||||||
AND SUBSIDIARY COMPANIES | ||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||
(Millions) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months | Twelve Months | |||||||||||||||
Ended December 31 | Ended December 31 | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
OPERATING REVENUES: | ||||||||||||||||
Gas utility | $ | 306.1 | $ | 430.3 | $ | 1,066.0 | $ | 1,432.7 | ||||||||
Electric utility | 127.9 | 121.9 | 528.6 | 524.2 | ||||||||||||
Other | 0.4 | - | 1.6 | 1.8 | ||||||||||||
Total operating revenues | 434.4 | 552.2 | 1,596.2 | 1,958.7 | ||||||||||||
OPERATING EXPENSES: | ||||||||||||||||
Cost of gas sold | 177.5 | 297.1 | 618.1 | 983.1 | ||||||||||||
Cost of fuel and purchased power | 46.9 | 39.7 | 194.3 | 182.9 | ||||||||||||
Other operating | 76.7 | 82.6 | 304.6 | 300.3 | ||||||||||||
Depreciation and amortization | 46.1 | 42.3 | 180.9 | 165.5 | ||||||||||||
Taxes other than income taxes | 14.1 | 20.5 | 60.3 | 72.3 | ||||||||||||
Total operating expenses | 361.3 | 482.2 | 1,358.2 | 1,704.1 | ||||||||||||
OPERATING INCOME | 73.1 | 70.0 | 238.0 | 254.6 | ||||||||||||
OTHER INCOME - NET | 1.7 | (0.9 | ) | 7.8 | 4.0 | |||||||||||
INTEREST EXPENSE | 20.3 | 20.4 | 79.2 | 79.9 | ||||||||||||
INCOME BEFORE INCOME TAXES | 54.5 | 48.7 | 166.6 | 178.7 | ||||||||||||
INCOME TAXES | 18.6 | 18.0 | 59.2 | 67.6 | ||||||||||||
NET INCOME | $ | 35.9 | $ | 30.7 | $ | 107.4 | $ | 111.1 |
VECTREN CORPORATION | ||||||||
AND SUBSIDIARY COMPANIES | ||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||
(Millions - Unaudited) | ||||||||
December 31, | December 31, | |||||||
2009 | 2008 | |||||||
ASSETS | ||||||||
Current Assets | ||||||||
Cash & cash equivalents | $ | 11.9 | $ | 93.2 | ||||
Accounts receivable - less reserves of $5.2 & | ||||||||
$5.6, respectively | 162.4 | 226.7 | ||||||
Accrued unbilled revenues | 144.7 | 197.0 | ||||||
Inventories | 167.8 | 131.0 | ||||||
Recoverable fuel & natural gas costs | - | 3.1 | ||||||
Prepayments & other current assets | 95.1 | 124.6 | ||||||
Total current assets | 581.9 | 775.6 | ||||||
Utility Plant | ||||||||
Original cost | 4,601.4 | 4,335.3 | ||||||
Less: accumulated depreciation & amortization | 1,722.6 | 1,615.0 | ||||||
Net utility plant | 2,878.8 | 2,720.3 | ||||||
Investments in unconsolidated affiliates | 186.2 | 179.1 | ||||||
Other utility and corporate investments | 33.2 | 44.2 | ||||||
Other nonutility investments | 46.2 | 27.4 | ||||||
Nonutility property - net | 482.6 | 390.2 | ||||||
Goodwill - net | 242.0 | 240.2 | ||||||
Regulatory assets | 187.9 | 216.7 | ||||||
Other assets | 33.0 | 39.2 | ||||||
TOTAL ASSETS | $ | 4,671.8 | $ | 4,632.9 | ||||
LIABILITIES & SHAREHOLDERS' EQUITY | ||||||||
Current Liabilities | ||||||||
Accounts payable | $ | 183.8 | $ | 266.1 | ||||
Accounts payable to affiliated companies | 54.1 | 75.2 | ||||||
Refundable fuel & natural gas costs | 22.3 | 4.1 | ||||||
Accrued liabilities | 174.7 | 175.0 | ||||||
Short-term borrowings | 213.5 | 519.5 | ||||||
Current maturities of long-term debt | 48.0 | 0.4 | ||||||
Long-term debt subject to tender | 51.3 | 80.0 | ||||||
Total current liabilities | 747.7 | 1,120.3 | ||||||
Long-term Debt - Net of Current Maturities & | ||||||||
Debt Subject to Tender | 1,540.5 | 1,247.9 | ||||||
Deferred Income Taxes & Other Liabilities | ||||||||
Deferred income taxes | 458.7 | 353.4 | ||||||
Regulatory liabilities | 322.1 | 315.1 | ||||||
Deferred credits & other liabilities | 205.6 | 244.6 | ||||||
Total deferred credits & other liabilities | 986.4 | 913.1 | ||||||
Common Shareholders' Equity | ||||||||
Common stock (no par value) – issued & outstanding | ||||||||
81.1 and 81.0 shares, respectively | 666.8 | 659.1 | ||||||
Retained earnings | 737.2 | 712.8 | ||||||
Accumulated other comprehensive income (loss) | (6.8 | ) | (20.3 | ) | ||||
Total common shareholders' equity | 1,397.2 | 1,351.6 | ||||||
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY | $ | 4,671.8 | $ | 4,632.9 |
VECTREN CORPORATION | ||||||||
AND SUBSIDIARY COMPANIES | ||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
(Millions - Unaudited) | ||||||||
For the Twelve months ended | ||||||||
December 31, | ||||||||
2009 | 2008 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
Net income | $ | 133.1 | $ | 129.0 | ||||
Adjustments to reconcile net income to cash from operating activities: | ||||||||
Depreciation & amortization | 211.9 | 192.3 | ||||||
Deferred income taxes & investment tax credits | 84.9 | 79.6 | ||||||
Equity in earnings of unconsolidated affiliates | (3.4 | ) | (37.4 | ) | ||||
Provision for uncollectible accounts | 15.1 | 16.9 | ||||||
Expense portion of pension & postretirement periodic benefit cost | 10.4 | 7.8 | ||||||
Other non-cash charges - net | 13.3 | 25.4 | ||||||
Changes in working capital accounts: | ||||||||
Accounts receivable & accrued unbilled revenue | 96.9 | (83.0 | ) | |||||
Inventories | (36.1 | ) | 26.4 | |||||
Recoverable/refundable fuel & natural gas costs | 21.3 | (26.2 | ) | |||||
Prepayments & other current assets | 43.1 | 9.8 | ||||||
Accounts payable, including to affiliated companies | (85.8 | ) | 65.7 | |||||
Accrued liabilities | 4.0 | 16.5 | ||||||
Unconsolidated affiliate dividends | 12.6 | 15.5 | ||||||
Employer contributions to pension & postretirement plans | (38.5 | ) | (15.1 | ) | ||||
Changes in noncurrent assets | 0.2 | 19.6 | ||||||
Changes in noncurrent liabilities | (33.4 | ) | (19.6 | ) | ||||
Net cash flows from operating activities | 449.6 | 423.2 | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
Proceeds from: | ||||||||
Long-term debt | 312.5 | 171.4 | ||||||
Issuance of common stock | - | 124.9 | ||||||
Dividend reinvestment plan & other | 5.8 | 0.9 | ||||||
Requirements for: | ||||||||
Dividends on common stock | (108.6 | ) | (102.6 | ) | ||||
Retirement of long-term debt | (3.5 | ) | (104.9 | ) | ||||
Other financing activities | - | (0.1 | ) | |||||
Net change in short-term borrowings | (306.0 | ) | (37.8 | ) | ||||
Net cash flows from financing activities | (99.8 | ) | 51.8 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
Proceeds from: | ||||||||
Unconsolidated affiliate distributions | 4.6 | 0.2 | ||||||
Other collections | 1.5 | 6.4 | ||||||
Requirements for: | ||||||||
Capital expenditures, excluding AFUDC equity | (432.0 | ) | (391.0 | ) | ||||
Unconsolidated affiliate investments | (0.2 | ) | (0.6 | ) | ||||
Other investments | (5.0 | ) | (17.4 | ) | ||||
Net cash flows from investing activities | (431.1 | ) | (402.4 | ) | ||||
Net change in cash & cash equivalents | (81.3 | ) | 72.6 | |||||
Cash & cash equivalents at beginning of period | 93.2 | 20.6 | ||||||
Cash & cash equivalents at end of period | $ | 11.9 | $ | 93.2 |
VECTREN CORPORATION | ||||||||||||||||
AND SUBSIDIARY COMPANIES | ||||||||||||||||
HIGHLIGHTS | ||||||||||||||||
(millions, except per share amounts) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months | Twelve Months | |||||||||||||||
Ended December 31 | Ended December 31 | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
REPORTED EARNINGS: | ||||||||||||||||
Utility Group | $ | 35.9 | $ | 30.7 | $ | 107.4 | $ | 111.1 | ||||||||
Non-utility Group | ||||||||||||||||
Energy Marketing and Services | 10.0 | 5.6 | 16.0 | 18.0 | ||||||||||||
Coal Mining | 6.0 | (3.0 | ) | 13.4 | (4.6 | ) | ||||||||||
Energy Infrastructure Services | 3.2 | 5.9 | 10.8 | 11.4 | ||||||||||||
Other Businesses | (0.2 | ) | (1.7 | ) | (2.5 | ) | - | |||||||||
Commercial Real Estate Impairment Charge | - | - | - | (5.9 | ) | |||||||||||
Total Non-utility Operations | 19.0 | 6.8 | 37.7 | 18.9 | ||||||||||||
Corporate and Other | (0.3 | ) | (0.4 | ) | (0.1 | ) | (1.0 | ) | ||||||||
Sub-Total Operations | 54.6 | 37.1 | 145.0 | 129.0 | ||||||||||||
Charge related to Liberty Gas Storage Investment | - | - | (11.9 | ) | - | |||||||||||
Vectren Consolidated | $ | 54.6 | $ | 37.1 | $ | 133.1 | $ | 129.0 | ||||||||
EARNINGS PER SHARE: | ||||||||||||||||
EPS FROM OPERATIONS | $ | 0.68 | $ | 0.46 | $ | 1.80 | $ | 1.65 | ||||||||
Charge related to Liberty Gas Storage Investment | - | - | (0.15 | ) | - | |||||||||||
REPORTED EPS | $ | 0.68 | $ | 0.46 | $ | 1.65 | $ | 1.65 |
VECTREN CORPORATION | ||||||||||||||||
AND SUBSIDIARY COMPANIES | ||||||||||||||||
SELECTED GAS DISTRIBUTION | ||||||||||||||||
OPERATING STATISTICS | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months | Twelve Months | |||||||||||||||
Ended Dec 31 | Ended Dec 31 | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
GAS OPERATING REVENUES (Millions): | ||||||||||||||||
Residential | $ | 209.5 | $ | 295.5 | $ | 726.6 | $ | 959.2 | ||||||||
Commercial | 77.9 | 114.0 | 272.3 | 392.8 | ||||||||||||
Industrial | 16.8 | 18.9 | 55.9 | 68.8 | ||||||||||||
Other Revenue | 1.9 | 1.9 | 11.2 | 11.9 | ||||||||||||
$ | 306.1 | $ | 430.3 | $ | 1,066.0 | $ | 1,432.7 | |||||||||
GAS MARGIN (Millions): | ||||||||||||||||
Residential | $ | 87.2 | $ | 89.5 | $ | 298.9 | $ | 292.5 | ||||||||
Commercial | 25.7 | 27.7 | 89.9 | 93.0 | ||||||||||||
Industrial | 13.4 | 14.0 | 46.8 | 51.2 | ||||||||||||
Other | 2.3 | 2.0 | 12.3 | 12.9 | ||||||||||||
$ | 128.6 | $ | 133.2 | $ | 447.9 | $ | 449.6 | |||||||||
GAS SOLD & TRANSPORTED (MMDth): | ||||||||||||||||
Residential | 24.1 | 26.5 | 73.3 | 79.2 | ||||||||||||
Commercial | 10.9 | 11.7 | 33.2 | 35.6 | ||||||||||||
Industrial | 22.9 | 24.0 | 78.0 | 91.5 | ||||||||||||
57.9 | 62.2 | 184.5 | 206.3 | |||||||||||||
AVERAGE GAS CUSTOMERS | ||||||||||||||||
Residential | 900,977 | 904,163 | 896,516 | 901,131 | ||||||||||||
Commercial | 83,265 | 84,107 | 83,148 | 83,940 | ||||||||||||
Industrial | 1,618 | 1,622 | 1,621 | 1,614 | ||||||||||||
985,860 | 989,892 | 981,285 | 986,685 | |||||||||||||
YTD WEATHER AS A PERCENT OF NORMAL: | ||||||||||||||||
Heating Degree Days (Ohio) | 102 | % | 105 | % | 103 | % | 102 | % |
VECTREN CORPORATION | ||||||||||||||||
AND SUBSIDIARY COMPANIES | ||||||||||||||||
SELECTED ELECTRIC | ||||||||||||||||
OPERATING STATISTICS | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months | Twelve Months | |||||||||||||||
Ended Dec 31 | Ended Dec 31 | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
ELECTRIC OPERATING REVENUES (Millions): | ||||||||||||||||
Residential | $ | 40.5 | $ | 37.2 | $ | 181.4 | $ | 171.0 | ||||||||
Commercial | 34.3 | 30.7 | 139.0 | 127.1 | ||||||||||||
Industrial | 41.5 | 33.1 | 165.1 | 150.5 | ||||||||||||
Municipals | - | - | - | 1.0 | ||||||||||||
Other Revenue | 3.1 | 2.8 | 7.7 | 7.7 | ||||||||||||
Total Retail | 119.4 | 103.8 | 493.2 | 457.3 | ||||||||||||
Net Wholesale Revenues | 8.5 | 18.1 | 35.4 | 66.9 | ||||||||||||
$ | 127.9 | $ | 121.9 | $ | 528.6 | $ | 524.2 | |||||||||
ELECTRIC MARGIN (Millions): | ||||||||||||||||
Residential | $ | 29.0 | $ | 28.8 | $ | 129.7 | $ | 129.0 | ||||||||
Commercial | 22.8 | 22.0 | 92.2 | 89.6 | ||||||||||||
Industrial | 20.9 | 18.4 | 84.5 | 82.9 | ||||||||||||
Municipals | - | - | - | - | ||||||||||||
Other | 2.9 | 2.7 | 7.2 | 7.3 | ||||||||||||
Total Retail | 75.6 | 71.9 | 313.6 | 308.8 | ||||||||||||
Net Wholesale Margin | 5.4 | 10.3 | 20.7 | 32.5 | ||||||||||||
$ | 81.0 | $ | 82.2 | $ | 334.3 | $ | 341.3 | |||||||||
ELECTRICITY SOLD (GWh): | ||||||||||||||||
Residential | 317.7 | 331.4 | 1,451.7 | 1,513.8 | ||||||||||||
Commercial | 321.0 | 323.5 | 1,309.1 | 1,336.7 | ||||||||||||
Industrial | 572.0 | 549.6 | 2,258.9 | 2,409.1 | ||||||||||||
Municipals | - | - | - | 44.3 | ||||||||||||
Other Sales - Street Lighting | 5.9 | 5.5 | 20.0 | 19.5 | ||||||||||||
Total Retail | 1,216.6 | 1,210.0 | 5,039.7 | 5,323.4 | ||||||||||||
Wholesale | 109.3 | 401.5 | 603.6 | 1,512.9 | ||||||||||||
1,325.9 | 1,611.5 | 5,643.3 | 6,836.3 | |||||||||||||
AVERAGE ELECTRIC CUSTOMERS | ||||||||||||||||
Residential | 122,600 | 122,576 | 122,380 | 122,522 | ||||||||||||
Commercial | 18,347 | 18,385 | 18,357 | 18,422 | ||||||||||||
Industrial | 106 | 103 | 105 | 103 | ||||||||||||
Other | 33 | 34 | 33 | 34 | ||||||||||||
141,086 | 141,098 | 140,875 | 141,081 | |||||||||||||
YTD WEATHER AS A PERCENT OF NORMAL: | ||||||||||||||||
Cooling Degree Days (Indiana) | 90 | % | 100 | % | ||||||||||||
Heating Degree Days (Indiana) | 100 | % | 104 | % | 96 | % | 102 | % |