Exhibit 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 | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
OPERATING REVENUES: | ||||||||||||||||
Gas utility | $ | 261.3 | $ | 306.1 | $ | 954.1 | $ | 1,066.0 | ||||||||
Electric utility | 138.9 | 127.9 | 608.0 | 528.6 | ||||||||||||
Nonutility | 163.9 | 134.6 | 567.4 | 494.3 | ||||||||||||
Total operating revenues | 564.1 | 568.6 | 2,129.5 | 2,088.9 | ||||||||||||
OPERATING EXPENSES: | ||||||||||||||||
Cost of gas sold | 133.0 | 177.5 | 504.7 | 618.1 | ||||||||||||
Cost of fuel and purchased power | 54.7 | 46.9 | 235.0 | 194.3 | ||||||||||||
Cost of nonutility revenues | 72.7 | 53.8 | 243.3 | 207.5 | ||||||||||||
Other operating | 140.0 | 136.4 | 538.4 | 514.0 | ||||||||||||
Depreciation and amortization | 58.5 | 53.6 | 229.1 | 211.9 | ||||||||||||
Taxes other than income taxes | 15.3 | 15.0 | 62.2 | 63.0 | ||||||||||||
Total operating expenses | 474.2 | 483.2 | 1,812.7 | 1,808.8 | ||||||||||||
OPERATING INCOME | 89.9 | 85.4 | 316.8 | 280.1 | ||||||||||||
OTHER INCOME (EXPENSE): | ||||||||||||||||
Equity in earnings (losses) of unconsolidated affiliates | 5.3 | 14.7 | (8.6 | ) | 3.4 | |||||||||||
Other income - net | 2.8 | 3.1 | 4.8 | 13.7 | ||||||||||||
Total other income (expense) | 8.1 | 17.8 | (3.8 | ) | 17.1 | |||||||||||
INTEREST EXPENSE | 26.6 | 26.0 | 104.6 | 100.0 | ||||||||||||
INCOME BEFORE INCOME TAXES | 71.4 | 77.2 | 208.4 | 197.2 | ||||||||||||
INCOME TAXES | 26.0 | 22.6 | 74.7 | 64.1 | ||||||||||||
NET INCOME | $ | 45.4 | $ | 54.6 | $ | 133.7 | $ | 133.1 | ||||||||
AVERAGE COMMON SHARES OUTSTANDING | 81.5 | 80.8 | 81.2 | 80.7 | ||||||||||||
DILUTED COMMON SHARES OUTSTANDING | 81.6 | 81.0 | 81.3 | 81.0 | ||||||||||||
EARNINGS PER SHARE OF COMMON STOCK | ||||||||||||||||
BASIC | $ | 0.56 | $ | 0.68 | $ | 1.65 | $ | 1.65 | ||||||||
DILUTED | $ | 0.56 | $ | 0.67 | $ | 1.64 | $ | 1.64 |
VECTREN UTILITY HOLDINGS | ||||||||||||||||
AND SUBSIDIARY COMPANIES | ||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||
(Millions) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months | Twelve Months | |||||||||||||||
Ended December 31 | Ended December 31 | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
OPERATING REVENUES: | ||||||||||||||||
Gas utility | $ | 261.3 | $ | 306.1 | $ | 954.1 | $ | 1,066.0 | ||||||||
Electric utility | 138.9 | 127.9 | 608.0 | 528.6 | ||||||||||||
Other | 0.4 | 0.4 | 1.6 | 1.6 | ||||||||||||
Total operating revenues | 400.6 | 434.4 | 1,563.7 | 1,596.2 | ||||||||||||
OPERATING EXPENSES: | ||||||||||||||||
Cost of gas sold | 133.0 | 177.5 | 504.7 | 618.1 | ||||||||||||
Cost of fuel and purchased power | 54.7 | 46.9 | 235.0 | 194.3 | ||||||||||||
Other operating | 75.9 | 76.7 | 299.2 | 304.6 | ||||||||||||
Depreciation and amortization | 47.7 | 46.1 | 188.2 | 180.9 | ||||||||||||
Taxes other than income taxes | 14.5 | 14.1 | 59.6 | 60.3 | ||||||||||||
Total operating expenses | 325.8 | 361.3 | 1,286.7 | 1,358.2 | ||||||||||||
OPERATING INCOME | 74.8 | 73.1 | 277.0 | 238.0 | ||||||||||||
OTHER INCOME - NET | 1.5 | 1.7 | 5.4 | 7.8 | ||||||||||||
INTEREST EXPENSE | 20.4 | 20.3 | 81.4 | 79.2 | ||||||||||||
INCOME BEFORE INCOME TAXES | 55.9 | 54.5 | 201.0 | 166.6 | ||||||||||||
INCOME TAXES | 22.3 | 18.6 | 77.1 | 59.2 | ||||||||||||
NET INCOME | $ | 33.6 | $ | 35.9 | $ | 123.9 | $ | 107.4 |
VECTREN CORPORATION | ||||||||
AND SUBSIDIARY COMPANIES | ||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||
(Millions - Unaudited) | ||||||||
December 31, | December 31, | |||||||
2010 | 2009 | |||||||
ASSETS | ||||||||
Current Assets | ||||||||
Cash & cash equivalents | $ | 10.4 | $ | 11.9 | ||||
Accounts receivable - less reserves of $5.3 & | ||||||||
$5.2, respectively | 176.6 | 162.4 | ||||||
Accrued unbilled revenues | 162.0 | 144.7 | ||||||
Inventories | 187.1 | 167.8 | ||||||
Recoverable fuel & natural gas costs | 7.9 | - | ||||||
Prepayments & other current assets | 101.2 | 95.1 | ||||||
Total current assets | 645.2 | 581.9 | ||||||
Utility Plant | ||||||||
Original cost | 4,791.7 | 4,601.4 | ||||||
Less: accumulated depreciation & amortization | 1,836.3 | 1,722.6 | ||||||
Net utility plant | 2,955.4 | 2,878.8 | ||||||
Investments in unconsolidated affiliates | 135.2 | 186.2 | ||||||
Other utility and corporate investments | 34.1 | 33.2 | ||||||
Other nonutility investments | 40.9 | 46.2 | ||||||
Nonutility property - net | 488.3 | 482.6 | ||||||
Goodwill - net | 242.0 | 242.0 | ||||||
Regulatory assets | 189.4 | 187.9 | ||||||
Other assets | 33.7 | 33.0 | ||||||
TOTAL ASSETS | $ | 4,764.2 | $ | 4,671.8 | ||||
LIABILITIES & SHAREHOLDERS' EQUITY | ||||||||
Current Liabilities | ||||||||
Accounts payable | $ | 183.7 | $ | 183.8 | ||||
Accounts payable to affiliated companies | 59.6 | 54.1 | ||||||
Refundable fuel & natural gas costs | - | 22.3 | ||||||
Accrued liabilities | 178.4 | 174.7 | ||||||
Short-term borrowings | 118.3 | 213.5 | ||||||
Current maturities of long-term debt | 250.7 | 48.0 | ||||||
Long-term debt subject to tender | 30.0 | 51.3 | ||||||
Total current liabilities | 820.7 | 747.7 | ||||||
Long-term Debt - Net of Current Maturities & | ||||||||
Debt Subject to Tender | 1,435.2 | 1,540.5 | ||||||
Deferred Income Taxes & Other Liabilities | ||||||||
Deferred income taxes | 515.3 | 458.7 | ||||||
Regulatory liabilities | 333.5 | 322.1 | ||||||
Deferred credits & other liabilities | 220.6 | 205.6 | ||||||
Total deferred credits & other liabilities | 1,069.4 | 986.4 | ||||||
Common Shareholders' Equity | ||||||||
Common stock (no par value) – issued & outstanding | ||||||||
81.7 and 81.1 shares, respectively | 683.4 | 666.8 | ||||||
Retained earnings | 759.9 | 737.2 | ||||||
Accumulated other comprehensive income (loss) | (4.4 | ) | (6.8 | ) | ||||
Total common shareholders' equity | 1,438.9 | 1,397.2 | ||||||
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY | $ | 4,764.2 | $ | 4,671.8 |
VECTREN CORPORATION | ||||||||
AND SUBSIDIARY COMPANIES | ||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
(Millions - Unaudited) | ||||||||
For the twelve months ended | ||||||||
December 31, | ||||||||
2010 | 2009 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
Net income | $ | 133.7 | $ | 133.1 | ||||
Adjustments to reconcile net income to cash from operating activities: | ||||||||
Depreciation & amortization | 229.1 | 211.9 | ||||||
Deferred income taxes & investment tax credits | 69.3 | 84.9 | ||||||
Equity in (earnings) losses of unconsolidated affiliates | 8.6 | (3.4 | ) | |||||
Provision for uncollectible accounts | 16.8 | 15.1 | ||||||
Expense portion of pension & postretirement benefit cost | 10.0 | 10.4 | ||||||
Other non-cash charges - net | 15.9 | 13.3 | ||||||
Changes in working capital accounts: | ||||||||
Accounts receivable & accrued unbilled revenue | (48.3 | ) | 96.9 | |||||
Inventories | (19.3 | ) | (36.1 | ) | ||||
Recoverable/refundable fuel & natural gas costs | (30.2 | ) | 21.3 | |||||
Prepayments & other current assets | (23.5 | ) | 43.1 | |||||
Accounts payable, including to affiliated companies | 5.5 | (85.8 | ) | |||||
Accrued liabilities | 10.2 | 4.0 | ||||||
Unconsolidated affiliate dividends | 42.7 | 12.6 | ||||||
Employer contributions to pension & postretirement plans | (22.0 | ) | (38.5 | ) | ||||
Changes in noncurrent assets | (7.6 | ) | 0.2 | |||||
Changes in noncurrent liabilities | (6.1 | ) | (33.4 | ) | ||||
Net cash flows from operating activities | 384.8 | 449.6 | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
Proceeds from: | ||||||||
Dividend reinvestment plan & other common stock issuances | 14.0 | 5.8 | ||||||
Long-term debt, net of issuance costs | 124.2 | 312.5 | ||||||
Requirements for: | ||||||||
Dividends on common stock | (110.8 | ) | (108.6 | ) | ||||
Retirement of long-term debt | (49.3 | ) | (3.5 | ) | ||||
Other Financing Activities | (0.2 | ) | - | |||||
Net change in short-term borrowings | (95.2 | ) | (306.0 | ) | ||||
Net cash flows from financing activities | (117.3 | ) | (99.8 | ) | ||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
Proceeds from: | ||||||||
Unconsolidated affiliate distributions | 0.5 | 4.6 | ||||||
Other collections | 10.8 | 1.5 | ||||||
Requirements for: | ||||||||
Capital expenditures, excluding AFUDC equity | (277.2 | ) | (432.0 | ) | ||||
Unconsolidated affiliate investments | (0.2 | ) | (0.2 | ) | ||||
Other investments | (2.9 | ) | (5.0 | ) | ||||
Net cash flows from investing activities | (269.0 | ) | (431.1 | ) | ||||
Net change in cash & cash equivalents | (1.5 | ) | (81.3 | ) | ||||
Cash & cash equivalents at beginning of period | 11.9 | 93.2 | ||||||
Cash & cash equivalents at end of period | $ | 10.4 | $ | 11.9 |
VECTREN CORPORATION | ||||||||||||||||
AND SUBSIDIARY COMPANIES | ||||||||||||||||
HIGHLIGHTS | ||||||||||||||||
(millions, except per share amounts) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months | Twelve Months | |||||||||||||||
Ended December 31 | Ended December 31 | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
REPORTED EARNINGS: | ||||||||||||||||
Utility Group | $ | 33.6 | $ | 35.9 | $ | 123.9 | $ | 107.4 | ||||||||
Nonutility Group | ||||||||||||||||
Infrastructure Services | 0.9 | 0.2 | 3.1 | 2.4 | ||||||||||||
Energy Services | 2.2 | 3.0 | 6.4 | 8.4 | ||||||||||||
Coal Mining | 3.8 | 6.0 | 11.9 | 13.4 | ||||||||||||
Energy Marketing | 4.9 | 10.0 | (4.2 | ) | 4.1 | * | ||||||||||
Other Businesses | - | (0.2 | ) | (7.4 | ) | (2.5 | ) | |||||||||
Total Nonutility Group | 11.8 | 19.0 | 9.8 | 25.8 | ||||||||||||
Corporate and Other | - | (0.3 | ) | - | (0.1 | ) | ||||||||||
Vectren Consolidated | $ | 45.4 | $ | 54.6 | $ | 133.7 | $ | 133.1 | ||||||||
REPORTED EPS | $ | 0.56 | $ | 0.68 | $ | 1.65 | $ | 1.65 | ||||||||
* Twelve months ended December 31, 2009 includes $11.9 million after tax charge related to Liberty Gas Storage Investment |
VECTREN CORPORATION | ||||||||||||||||
AND SUBSIDIARY COMPANIES | ||||||||||||||||
SELECTED GAS DISTRIBUTION | ||||||||||||||||
OPERATING STATISTICS | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months | Twelve Months | |||||||||||||||
Ended December 31 | Ended December 31 | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
GAS OPERATING REVENUES (Millions): | ||||||||||||||||
Residential | $ | 179.5 | $ | 209.5 | $ | 651.2 | $ | 726.6 | ||||||||
Commercial | 61.9 | 77.9 | 234.5 | 272.3 | ||||||||||||
Industrial | 17.0 | 16.8 | 57.6 | 55.9 | ||||||||||||
Other Revenue | 2.9 | 1.9 | 10.8 | 11.2 | ||||||||||||
$ | 261.3 | $ | 306.1 | $ | 954.1 | $ | 1,066.0 | |||||||||
GAS MARGIN (Millions): | ||||||||||||||||
Residential | $ | 84.7 | $ | 87.2 | $ | 297.9 | $ | 298.9 | ||||||||
Commercial | 24.8 | 25.7 | 87.2 | 89.9 | ||||||||||||
Industrial | 15.6 | 13.4 | 52.4 | 46.8 | ||||||||||||
Other | 3.2 | 2.3 | 11.9 | 12.3 | ||||||||||||
$ | 128.3 | $ | 128.6 | $ | 449.4 | $ | 447.9 | |||||||||
GAS SOLD & TRANSPORTED (MMDth): | ||||||||||||||||
Residential | 26.1 | 24.1 | 74.0 | 73.3 | ||||||||||||
Commercial | 10.7 | 10.9 | 32.2 | 33.2 | ||||||||||||
Industrial | 25.7 | 22.9 | 90.8 | 78.0 | ||||||||||||
62.5 | 57.9 | 197.0 | 184.5 | |||||||||||||
AVERAGE GAS CUSTOMERS | ||||||||||||||||
Residential | 901,735 | 900,977 | 897,715 | 896,516 | ||||||||||||
Commercial | 82,993 | 83,265 | 82,780 | 83,148 | ||||||||||||
Industrial | 1,652 | 1,618 | 1,638 | 1,621 | ||||||||||||
986,380 | 985,860 | 982,133 | 981,285 | |||||||||||||
YTD WEATHER AS A PERCENT OF NORMAL: | ||||||||||||||||
Heating Degree Days (Ohio) | 108 | % | 102 | % | 105 | % | 103 | % |
VECTREN CORPORATION | ||||||||||||||||
AND SUBSIDIARY COMPANIES | ||||||||||||||||
SELECTED ELECTRIC | ||||||||||||||||
OPERATING STATISTICS | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months | Twelve Months | |||||||||||||||
Ended December 31 | Ended December 31 | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
ELECTRIC OPERATING REVENUES (Millions): | ||||||||||||||||
Residential | $ | 42.4 | $ | 40.9 | $ | 206.4 | $ | 183.3 | ||||||||
Commercial | 36.1 | 34.3 | 149.7 | 139.9 | ||||||||||||
Industrial | 47.6 | 41.1 | �� | 199.1 | 162.3 | |||||||||||
Other Revenue | 3.6 | 3.1 | 9.1 | 7.7 | ||||||||||||
Total Retail | 129.7 | 119.4 | 564.3 | 493.2 | ||||||||||||
Net Wholesale Revenues | 9.2 | 8.5 | 43.7 | 35.4 | ||||||||||||
$ | 138.9 | $ | 127.9 | $ | 608.0 | $ | 528.6 | |||||||||
ELECTRIC MARGIN (Millions): | ||||||||||||||||
Residential | $ | 29.4 | $ | 29.4 | $ | 144.3 | $ | 131.6 | ||||||||
Commercial | 23.0 | 22.8 | 96.9 | 93.1 | ||||||||||||
Industrial | 23.0 | 20.5 | 97.1 | 81.7 | ||||||||||||
Other | 3.4 | 2.9 | 8.5 | 7.2 | ||||||||||||
Total Retail | 78.8 | 75.6 | 346.8 | 313.6 | ||||||||||||
Net Wholesale Margin | 5.4 | 5.4 | 26.2 | 20.7 | ||||||||||||
$ | 84.2 | $ | 81.0 | $ | 373.0 | $ | 334.3 | |||||||||
ELECTRICITY SOLD (GWh): | ||||||||||||||||
Residential | 324.7 | 317.7 | 1,603.5 | 1,451.7 | ||||||||||||
Commercial | 324.0 | 321.0 | 1,360.5 | 1,309.1 | ||||||||||||
Industrial | 610.6 | 572.0 | 2,630.3 | 2,258.9 | ||||||||||||
Other Sales - Street Lighting | 6.6 | 5.9 | 22.6 | 20.0 | ||||||||||||
Total Retail | 1,265.9 | 1,216.6 | 5,616.9 | 5,039.7 | ||||||||||||
Wholesale | 121.4 | 109.3 | 587.6 | 603.6 | ||||||||||||
1,387.3 | 1,325.9 | 6,204.5 | 5,643.3 | |||||||||||||
AVERAGE ELECTRIC CUSTOMERS | ||||||||||||||||
Residential | 122,907 | 122,600 | 122,857 | 122,380 | ||||||||||||
Commercial | 18,261 | 18,347 | 18,321 | 18,357 | ||||||||||||
Industrial | 111 | 106 | 108 | 105 | ||||||||||||
Other | 33 | 33 | 33 | 33 | ||||||||||||
141,312 | 141,086 | 141,319 | 140,875 | |||||||||||||
YTD WEATHER AS A PERCENT OF NORMAL: | ||||||||||||||||
Cooling Degree Days (Indiana) | 134 | % | 90 | % | ||||||||||||
Heating Degree Days (Indiana) | 101 | % | 96 | % |