| VECTREN CORPORATION | ||||||||
| AND SUBSIDIARY COMPANIES | ||||||||
| CONSOLIDATED STATEMENTS OF INCOME | ||||||||
| (Millions, except per share amounts) | ||||||||
| (Unaudited) | ||||||||
| Three Months | ||||||||
| Ended March 31 | ||||||||
| 2012 | 2011 | |||||||
| OPERATING REVENUES: | ||||||||
| Gas utility | $ | 292.3 | $ | 356.7 | ||||
| Electric utility | 139.4 | 146.4 | ||||||
| Nonutility | 172.9 | 179.5 | ||||||
| Total operating revenues | 604.6 | 682.6 | ||||||
| OPERATING EXPENSES: | ||||||||
| Cost of gas sold | 137.1 | 195.1 | ||||||
| Cost of fuel and purchased power | 44.7 | 59.5 | ||||||
| Cost of nonutility revenues | 59.5 | 105.1 | ||||||
| Other operating | 173.2 | 141.6 | ||||||
| Depreciation and amortization | 63.6 | 59.1 | ||||||
| Taxes other than income taxes | 16.6 | 18.9 | ||||||
| Total operating expenses | 494.7 | 579.3 | ||||||
| OPERATING INCOME | 109.9 | 103.3 | ||||||
| OTHER INCOME (EXPENSE): | ||||||||
| Equity in earnings (losses) of unconsolidated affiliates | (7.6 | ) | (10.9 | ) | ||||
| Other income - net | 3.3 | 2.4 | ||||||
| Total other income (expense) | (4.3 | ) | (8.5 | ) | ||||
| INTEREST EXPENSE | 24.0 | 26.6 | ||||||
| INCOME BEFORE INCOME TAXES | 81.6 | 68.2 | ||||||
| INCOME TAXES | 30.3 | 23.6 | ||||||
| NET INCOME | $ | 51.3 | $ | 44.6 | ||||
| AVERAGE COMMON SHARES OUTSTANDING | 82.0 | 81.7 | ||||||
| DILUTED COMMON SHARES OUTSTANDING | 82.0 | 81.7 | ||||||
| EARNINGS PER SHARE OF COMMON STOCK | ||||||||
| BASIC | $ | 0.63 | $ | 0.55 | ||||
| DILUTED | $ | 0.62 | $ | 0.55 | ||||
| VECTREN UTILITY HOLDINGS | ||||||||
| AND SUBSIDIARY COMPANIES | ||||||||
| CONSOLIDATED STATEMENTS OF INCOME | ||||||||
| (Millions - Unaudited) | ||||||||
| Three Months | ||||||||
| Ended March 31 | ||||||||
| 2012 | 2011 | |||||||
| OPERATING REVENUES: | ||||||||
| Gas utility | $ | 292.3 | $ | 356.7 | ||||
| Electric utility | 139.4 | 146.4 | ||||||
| Other | 0.4 | 0.5 | ||||||
| Total operating revenues | 432.1 | 503.6 | ||||||
| OPERATING EXPENSES: | ||||||||
| Cost of gas sold | 137.1 | 195.1 | ||||||
| Cost of fuel and purchased power | 44.7 | 59.5 | ||||||
| Other operating | 79.9 | 86.9 | ||||||
| Depreciation and amortization | 48.6 | 48.2 | ||||||
| Taxes other than income taxes | 15.9 | 18.0 | ||||||
| Total operating expenses | 326.2 | 407.7 | ||||||
| OPERATING INCOME | 105.9 | 95.9 | ||||||
| OTHER INCOME - NET | 2.2 | 1.7 | ||||||
| INTEREST EXPENSE | 17.7 | 20.4 | ||||||
| INCOME BEFORE INCOME TAXES | 90.4 | 77.2 | ||||||
| INCOME TAXES | 34.4 | 28.6 | ||||||
| NET INCOME | $ | 56.0 | $ | 48.6 | ||||
| VECTREN CORPORATION | ||||||||
| AND SUBSIDIARY COMPANIES | ||||||||
| CONSOLIDATED BALANCE SHEETS | ||||||||
| (Millions - Unaudited) | ||||||||
| March 31, | December 31, | |||||||
| 2012 | 2011 | |||||||
| ASSETS | ||||||||
| Current Assets | ||||||||
Cash & cash equivalents | $ | 14.2 | $ | 8.6 | ||||
Accounts receivable - less reserves of $6.1 & | ||||||||
$6.7, respectively | 214.6 | 221.3 | ||||||
Accrued unbilled revenues | 67.8 | 121.5 | ||||||
Inventories | 147.5 | 161.9 | ||||||
Recoverable fuel & natural gas costs | 9.5 | 12.4 | ||||||
Prepayments & other current assets | 41.6 | 84.3 | ||||||
Total current assets | 495.2 | 610.0 | ||||||
| Utility Plant | ||||||||
Original cost | 5,033.8 | 4,979.9 | ||||||
Less: accumulated depreciation & amortization | 1,975.9 | 1,947.3 | ||||||
Net utility plant | 3,057.9 | 3,032.6 | ||||||
| Investments in unconsolidated affiliates | 88.2 | 92.9 | ||||||
| Other utility & corporate investments | 35.5 | 34.4 | ||||||
| Other nonutility investments | 24.6 | 29.6 | ||||||
| Nonutility plant - net | 562.0 | 550.8 | ||||||
| Goodwill - net | 262.3 | 262.3 | ||||||
| Regulatory assets | 232.8 | 226.0 | ||||||
| Other assets | 39.6 | 40.3 | ||||||
TOTAL ASSETS | $ | 4,798.1 | $ | 4,878.9 | ||||
| LIABILITIES & SHAREHOLDERS' EQUITY | ||||||||
| Current Liabilities | ||||||||
Accounts payable | $ | 141.6 | $ | 185.8 | ||||
Accounts payable to affiliated companies | 19.3 | 36.8 | ||||||
Refundable fuel & natural gas costs | 2.6 | - | ||||||
Accrued liabilities | 183.6 | 181.1 | ||||||
Short-term borrowings | 174.7 | 227.1 | ||||||
Current maturities of long-term debt | 61.6 | 62.7 | ||||||
Total current liabilities | 583.4 | 693.5 | ||||||
| Long-term Debt - Net of Current Maturities | 1,559.3 | 1,559.6 | ||||||
| Deferred Income Taxes & Other Liabilities | ||||||||
Deferred income taxes | 575.4 | 575.7 | ||||||
Regulatory liabilities | 350.5 | 345.2 | ||||||
Deferred credits & other liabilities | 238.1 | 239.4 | ||||||
Total deferred credits & other liabilities | 1,164.0 | 1,160.3 | ||||||
| Common Shareholders' Equity | ||||||||
Common stock (no par value) – issued & outstanding | ||||||||
82.0 and 81.9 shares, respectively | 694.4 | 692.6 | ||||||
Retained earnings | 808.7 | 786.2 | ||||||
Accumulated other comprehensive income (loss) | (11.7 | ) | (13.3 | ) | ||||
Total common shareholders' equity | 1,491.4 | 1,465.5 | ||||||
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY | $ | 4,798.1 | $ | 4,878.9 | ||||
| VECTREN CORPORATION | |||||||||
| AND SUBSIDIARY COMPANIES | |||||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||
| (Millions - Unaudited) | |||||||||
| Three Months | |||||||||
| Ended March 31 | |||||||||
| 2012 | 2011 | ||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||
Net income | $ | 51.3 | $ | 44.6 | |||||
Adjustments to reconcile net income to cash from operating activities: | |||||||||
Depreciation & amortization | 63.6 | 59.1 | |||||||
Deferred income taxes & investment tax credits | 13.7 | 18.5 | |||||||
Equity in losses of unconsolidated affiliates | 7.6 | 10.9 | |||||||
Provision for uncollectible accounts | 2.3 | 5.9 | |||||||
Expense portion of pension & postretirement benefit cost | 2.7 | 2.2 | |||||||
| Other non-cash charges - net | 1.9 | 3.2 | |||||||
Changes in working capital accounts: | |||||||||
Accounts receivable & accrued unbilled revenues | 58.1 | 31.5 | |||||||
Inventories | 4.7 | 54.7 | |||||||
Recoverable/refundable fuel & natural gas costs | 5.5 | 5.1 | |||||||
Prepayments & other current assets | 30.4 | 39.0 | |||||||
Accounts payable, including to affiliated companies | (66.1 | ) | (86.8 | ) | |||||
Accrued liabilities | 2.4 | 23.8 | |||||||
Employer contributions to pension & postretirement plans | (4.9 | ) | (29.2 | ) | |||||
Changes in noncurrent assets | 0.8 | 8.0 | |||||||
Changes in noncurrent liabilities | (5.2 | ) | (2.1 | ) | |||||
Net cash flows from operating activities | 168.8 | 188.4 | |||||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||
Proceeds from: | |||||||||
Long-term debt, net of issuance costs | 99.5 | - | |||||||
Dividend reinvestment plan & other common stock issuances | 1.6 | 1.7 | |||||||
Requirements for: | |||||||||
Dividends on common stock | (28.7 | ) | (28.2 | ) | |||||
Retirement of long-term debt | (1.5 | ) | (0.1 | ) | |||||
Other financing activities | - | (1.4 | ) | ||||||
Net change in short-term borrowings | (152.4 | ) | 4.0 | ||||||
Net cash flows from financing activities | (81.5 | ) | (24.0 | ) | |||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||
Proceeds from: | |||||||||
Other collections | 5.5 | 0.3 | |||||||
Requirements for: | |||||||||
Capital expenditures, excluding AFUDC equity | (87.2 | ) | (57.7 | ) | |||||
Business acquisition, net of cash acquired | - | (82.9 | ) | ||||||
Net cash flows from investing activities | (81.7 | ) | (140.3 | ) | |||||
| Net change in cash & cash equivalents | 5.6 | 24.1 | |||||||
| Cash & cash equivalents at beginning of period | 8.6 | 10.4 | |||||||
| Cash & cash equivalents at end of period | $ | 14.2 | $ | 34.5 | |||||
| VECTREN CORPORATION | |||||||||
| AND SUBSIDIARY COMPANIES | |||||||||
| HIGHLIGHTS | |||||||||
| (Millions, except per share amounts) | |||||||||
| (Unaudited) | |||||||||
| Three Months | |||||||||
| Ended March 31 | |||||||||
| 2012 | 2011 | ||||||||
| REPORTED EARNINGS: | |||||||||
| Utility Group | |||||||||
| Gas Utility Services | $ | 37.5 | $ | 36.1 | |||||
| Electric Utility Services | 15.6 | 8.6 | |||||||
| Other Operations | 2.9 | 3.9 | |||||||
| Total Utility Group | 56.0 | 48.6 | |||||||
| Nonutility Group | |||||||||
| Infrastructure Services | 3.0 | (2.9 | ) | ||||||
| Energy Services | (1.7 | ) | (1.4 | ) | |||||
| Coal Mining | (0.3 | ) | 1.6 | ||||||
| Energy Marketing | |||||||||
| Vectren Source | - | 7.1 | (1) | ||||||
| ProLiance | (5.9 | ) | (7.5 | ) | |||||
| Other Businesses | 0.1 | (0.3 | ) | ||||||
| Total Nonutility Group | (4.8 | ) | (3.4 | ) | |||||
| Corporate and Other | 0.1 | (0.6 | ) | ||||||
| Vectren Consolidated | $ | 51.3 | $ | 44.6 | |||||
| EARNINGS PER SHARE: | |||||||||
| Utility Group | $ | 0.69 | $ | 0.59 | |||||
| Nonutility Group, excluding ProLiance | 0.01 | 0.05 | |||||||
| ProLiance | (0.07 | ) | (0.09 | ) | |||||
| Reported EPS | $ | 0.63 | $ | 0.55 | |||||
| (1) | Vectren Source was sold 12/31/11. Full year 2011 earnings were $2.8 million. | ||||||||
| VECTREN CORPORATION | ||||||||
| AND SUBSIDIARY COMPANIES | ||||||||
| SELECTED GAS DISTRIBUTION | ||||||||
| OPERATING STATISTICS | ||||||||
| (Unaudited) | ||||||||
| Three Months | ||||||||
| Ended March 31 | ||||||||
| 2012 | 2011 | |||||||
| GAS OPERATING REVENUES (Millions): | ||||||||
| Residential | $ | 201.5 | $ | 245.5 | ||||
| Commercial | 70.0 | 88.5 | ||||||
| Industrial | 17.3 | 18.6 | ||||||
| Other Revenue | 3.5 | 4.1 | ||||||
| $ | 292.3 | $ | 356.7 | |||||
| GAS MARGIN (Millions): | ||||||||
| Residential | $ | 103.0 | $ | 105.7 | ||||
| Commercial | 32.1 | 34.0 | ||||||
| Industrial | 16.5 | 17.6 | ||||||
| Other | 3.6 | 4.3 | ||||||
| $ | 155.2 | $ | 161.6 | |||||
| GAS SOLD & TRANSPORTED (MMDth): | ||||||||
| Residential | 28.8 | 37.1 | ||||||
| Commercial | 12.0 | 15.7 | ||||||
| Industrial | 27.8 | 28.8 | ||||||
| 68.6 | 81.6 | |||||||
| AVERAGE GAS CUSTOMERS | ||||||||
| Residential | 908,740 | 909,290 | ||||||
| Commercial | 83,654 | 83,852 | ||||||
| Industrial | 1,655 | 1,654 | ||||||
| 994,049 | 994,796 | |||||||
| YTD WEATHER AS A PERCENT OF NORMAL: | ||||||||
| Heating Degree Days (Ohio) | 82 | % | 107 | % | ||||
| VECTREN CORPORATION | ||||||||
| AND SUBSIDIARY COMPANIES | ||||||||
| SELECTED ELECTRIC | ||||||||
| OPERATING STATISTICS | ||||||||
| (Unaudited) | ||||||||
| Three Months | ||||||||
| Ended March 31 | ||||||||
| 2012 | 2011 | |||||||
| ELECTRIC OPERATING REVENUES (Millions): | ||||||||
| Residential | $ | 45.7 | $ | 47.4 | ||||
| Commercial | 34.2 | 34.1 | ||||||
| Industrial | 47.6 | 50.3 | ||||||
| Other Revenue | 1.9 | 2.0 | ||||||
| Total Retail | 129.4 | 133.8 | ||||||
| Net Wholesale Revenues | 10.0 | 12.6 | ||||||
| $ | 139.4 | $ | 146.4 | |||||
| ELECTRIC MARGIN (Millions): | ||||||||
| Residential | $ | 34.3 | $ | 32.1 | ||||
| Commercial | 24.4 | 21.9 | ||||||
| Industrial | 25.3 | 23.4 | ||||||
| Other | 1.8 | 1.9 | ||||||
| Total Retail | 85.8 | 79.3 | ||||||
| Net Wholesale Margin | 8.9 | 7.6 | ||||||
| $ | 94.7 | $ | 86.9 | |||||
| ELECTRICITY SOLD (GWh): | ||||||||
| Residential | 338.4 | 381.2 | ||||||
| Commercial | 292.7 | 300.4 | ||||||
| Industrial | 681.7 | 661.9 | ||||||
| Other Sales - Street Lighting | 5.9 | 5.9 | ||||||
| Total Retail | 1,318.7 | 1,349.4 | ||||||
| Wholesale | 48.7 | 183.9 | ||||||
| 1,367.4 | 1,533.3 | |||||||
| AVERAGE ELECTRIC CUSTOMERS | ||||||||
| Residential | 123,290 | 123,126 | ||||||
| Commercial | 18,251 | 18,248 | ||||||
| Industrial | 115 | 111 | ||||||
| Other | 33 | 33 | ||||||
| 141,689 | 141,518 | |||||||
| YTD WEATHER AS A PERCENT OF NORMAL: | ||||||||
| Cooling Degree Days (Indiana) | N/A | N/A | ||||||
| Heating Degree Days (Indiana) | 71 | % | 97 | % | ||||
