Exhibit 99.2
VECTREN CORPORATION | ||||||||||||||||
AND SUBSIDIARY COMPANIES | ||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||
(Millions, except per share amounts) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||
OPERATING REVENUES: | ||||||||||||||||
Gas utility | $ | 100.2 | $ | 102.1 | $ | 508.5 | $ | 592.8 | ||||||||
Electric utility | 167.9 | 186.7 | 456.6 | 492.4 | ||||||||||||
Nonutility | 245.4 | 250.6 | 623.6 | 612.6 | ||||||||||||
Total operating revenues | 513.5 | 539.4 | 1,588.7 | 1,697.8 | ||||||||||||
OPERATING EXPENSES: | ||||||||||||||||
Cost of gas sold | 28.1 | 30.5 | 197.0 | 274.4 | ||||||||||||
Cost of fuel and purchased power | 52.9 | 67.1 | 144.6 | 186.9 | ||||||||||||
Cost of nonutility revenues | 81.0 | 93.0 | 198.1 | 266.6 | ||||||||||||
Other operating | 195.6 | 180.6 | 557.2 | 485.5 | ||||||||||||
Depreciation and amortization | 61.9 | 61.7 | 188.9 | 182.0 | ||||||||||||
Taxes other than income taxes | 12.4 | 12.4 | 41.2 | 43.4 | ||||||||||||
Total operating expenses | 431.9 | 445.3 | 1,327.0 | 1,438.8 | ||||||||||||
OPERATING INCOME | 81.6 | 94.1 | 261.7 | 259.0 | ||||||||||||
OTHER INCOME (EXPENSE): | ||||||||||||||||
Equity in (losses) of unconsolidated affiliates | (3.6 | ) | (11.7 | ) | (17.8 | ) | (34.6 | ) | ||||||||
Other income - net | 3.3 | 0.7 | 7.8 | 5.9 | ||||||||||||
Total other income (expense) | (0.3 | ) | (11.0 | ) | (10.0 | ) | (28.7 | ) | ||||||||
INTEREST EXPENSE | 23.9 | 27.1 | 71.8 | 80.7 | ||||||||||||
INCOME BEFORE INCOME TAXES | 57.4 | 56.0 | 179.9 | 149.6 | ||||||||||||
INCOME TAXES | 18.1 | 20.7 | 63.7 | 54.6 | ||||||||||||
NET INCOME | $ | 39.3 | $ | 35.3 | $ | 116.2 | $ | 95.0 | ||||||||
AVERAGE COMMON SHARES OUTSTANDING | 82.1 | 81.8 | 82.0 | 81.7 | ||||||||||||
DILUTED COMMON SHARES OUTSTANDING | 82.1 | 81.9 | 82.1 | 81.8 | ||||||||||||
EARNINGS PER SHARE OF COMMON STOCK | ||||||||||||||||
BASIC | $ | 0.48 | $ | 0.43 | $ | 1.42 | $ | 1.16 | ||||||||
DILUTED | $ | 0.48 | $ | 0.43 | $ | 1.42 | $ | 1.16 |
VECTREN UTILITY HOLDINGS | ||||||||||||||||
AND SUBSIDIARY COMPANIES | ||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||
(Millions - Unaudited) | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||
OPERATING REVENUES: | ||||||||||||||||
Gas utility | $ | 100.2 | $ | 102.1 | $ | 508.5 | $ | 592.8 | ||||||||
Electric utility | 167.9 | 186.7 | 456.6 | 492.4 | ||||||||||||
Other | (0.4 | ) | 0.5 | 0.5 | 1.5 | |||||||||||
Total operating revenues | 267.7 | 289.3 | 965.6 | 1,086.7 | ||||||||||||
OPERATING EXPENSES: | ||||||||||||||||
Cost of gas sold | 28.1 | 30.5 | 197.0 | 274.4 | ||||||||||||
Cost of fuel and purchased power | 52.9 | 67.1 | 144.6 | 186.9 | ||||||||||||
Other operating | 71.8 | 66.7 | 229.5 | 231.8 | ||||||||||||
Depreciation and amortization | 46.3 | 47.8 | 142.7 | 143.9 | ||||||||||||
Taxes other than income taxes | 11.5 | 11.6 | 39.0 | 40.7 | ||||||||||||
Total operating expenses | 210.6 | 223.7 | 752.8 | 877.7 | ||||||||||||
OPERATING INCOME | 57.1 | 65.6 | 212.8 | 209.0 | ||||||||||||
OTHER INCOME - NET | 2.3 | 0.1 | 5.2 | 4.0 | ||||||||||||
INTEREST EXPENSE | 17.8 | 20.4 | 53.5 | 61.2 | ||||||||||||
INCOME BEFORE INCOME TAXES | 41.6 | 45.3 | 164.5 | 151.8 | ||||||||||||
INCOME TAXES | 15.2 | 17.4 | 62.0 | 59.0 | ||||||||||||
NET INCOME | $ | 26.4 | $ | 27.9 | $ | 102.5 | $ | 92.8 |
VECTREN CORPORATION | ||||||||
AND SUBSIDIARY COMPANIES | ||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||
(Millions - Unaudited) | ||||||||
September 30, | December 31, | |||||||
2012 | 2011 | |||||||
ASSETS | ||||||||
Current Assets | ||||||||
Cash & cash equivalents | $ | 7.0 | $ | 8.6 | ||||
Accounts receivable - less reserves of $6.2 & | ||||||||
$6.7, respectively | 239.9 | 221.3 | ||||||
Accrued unbilled revenues | 56.4 | 121.5 | ||||||
Inventories | 170.7 | 161.9 | ||||||
Recoverable fuel & natural gas costs | 21.4 | 12.4 | ||||||
Prepayments & other current assets | 73.5 | 84.3 | ||||||
Total current assets | 568.9 | 610.0 | ||||||
Utility Plant | ||||||||
Original cost | 5,141.6 | 4,979.9 | ||||||
Less: accumulated depreciation & amortization | 2,030.5 | 1,947.3 | ||||||
Net utility plant | 3,111.1 | 3,032.6 | ||||||
Investments in unconsolidated affiliates | 81.6 | 92.9 | ||||||
Other utility & corporate investments | 34.6 | 34.4 | ||||||
Other nonutility investments | 24.8 | 29.6 | ||||||
Nonutility plant - net | 581.9 | 550.8 | ||||||
Goodwill - net | 262.3 | 262.3 | ||||||
Regulatory assets | 230.1 | 226.0 | ||||||
Other assets | 40.9 | 40.3 | ||||||
TOTAL ASSETS | $ | 4,936.2 | $ | 4,878.9 | ||||
LIABILITIES & SHAREHOLDERS' EQUITY | ||||||||
Current Liabilities | ||||||||
Accounts payable | $ | 159.1 | $ | 185.8 | ||||
Accounts payable to affiliated companies | 15.4 | 36.8 | ||||||
Refundable fuel & natural gas costs | 1.1 | — | ||||||
Accrued liabilities | 159.3 | 181.1 | ||||||
Short-term borrowings | 316.2 | 227.1 | ||||||
Current maturities of long-term debt | 131.5 | 62.7 | ||||||
Total current liabilities | 782.6 | 693.5 | ||||||
Long-term Debt - Net of Current Maturities | 1,453.7 | 1,559.6 | ||||||
Deferred Income Taxes & Other Liabilities | ||||||||
Deferred income taxes | 629.3 | 575.7 | ||||||
Regulatory liabilities | 359.1 | 345.2 | ||||||
Deferred credits & other liabilities | 205.3 | 239.4 | ||||||
Total deferred credits & other liabilities | 1,193.7 | 1,160.3 | ||||||
Common Shareholders' Equity | ||||||||
Common stock (no par value) – issued & outstanding | ||||||||
82.1 and 81.9 shares, respectively | 698.7 | 692.6 | ||||||
Retained earnings | 816.2 | 786.2 | ||||||
Accumulated other comprehensive income (loss) | (8.7 | ) | (13.3 | ) | ||||
Total common shareholders' equity | 1,506.2 | 1,465.5 | ||||||
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY | $ | 4,936.2 | $ | 4,878.9 |
VECTREN CORPORATION | ||||||||
AND SUBSIDIARY COMPANIES | ||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
(Millions - Unaudited) | ||||||||
Nine Months Ended | ||||||||
September 30, | ||||||||
2012 | 2011 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
Net income | $ | 116.2 | $ | 95.0 | ||||
Adjustments to reconcile net income to cash from operating activities: | ||||||||
Depreciation & amortization | 188.9 | 182.0 | ||||||
Deferred income taxes & investment tax credits | 52.6 | 56.5 | ||||||
Equity in losses of unconsolidated affiliates | 17.8 | 34.6 | ||||||
Provision for uncollectible accounts | 6.0 | 9.1 | ||||||
Expense portion of pension & postretirement benefit cost | 6.8 | 6.8 | ||||||
Other non-cash charges - net | 5.5 | 9.5 | ||||||
Changes in working capital accounts | ||||||||
Accounts receivable & accrued unbilled revenues | 40.5 | 68.6 | ||||||
Inventories | (8.8 | ) | (20.2 | ) | ||||
Recoverable/refundable fuel & natural gas costs | (7.9 | ) | (8.1 | ) | ||||
Prepayments & other current assets | 5.7 | (1.0 | ) | |||||
Accounts payable, including to affiliated companies | (50.8 | ) | (83.8 | ) | ||||
Accrued liabilities | (22.0 | ) | (3.4 | ) | ||||
Unconsolidated affiliate dividends | 0.1 | 0.1 | ||||||
Employer contributions to pension & postretirement plans | (16.1 | ) | (37.2 | ) | ||||
Changes in noncurrent assets | (33.7 | ) | (8.4 | ) | ||||
Changes in noncurrent liabilities | (7.0 | ) | (8.6 | ) | ||||
Net cash flows from operating activities | 293.8 | 291.5 | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
Proceeds from: | ||||||||
Long-term debt, net of issuance costs | 99.5 | — | ||||||
Dividend reinvestment plan & other common stock issuances | 5.6 | 5.2 | ||||||
Requirements for: | ||||||||
Dividends on common stock | (86.1 | ) | (84.6 | ) | ||||
Retirement of long-term debt | (37.4 | ) | (2.2 | ) | ||||
Other financing activities | — | (1.4 | ) | |||||
Net change in short-term borrowings | (10.9 | ) | 98.1 | |||||
Net cash flows from financing activities | (29.3 | ) | 15.1 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
Proceeds from: | ||||||||
Unconsolidated affiliate distributions | 0.2 | 0.5 | ||||||
Other collections | 8.9 | 1.0 | ||||||
Requirements for: | ||||||||
Capital expenditures, excluding AFUDC equity | (274.9 | ) | (227.8 | ) | ||||
Business acquisition, net of cash acquired | — | (83.4 | ) | |||||
Other investments | (0.3 | ) | (0.9 | ) | ||||
Net cash flows from investing activities | (266.1 | ) | (310.6 | ) | ||||
Net change in cash & cash equivalents | (1.6 | ) | (4.0 | ) | ||||
Cash & cash equivalents at beginning of period | 8.6 | 10.4 | ||||||
Cash & cash equivalents at end of period | $ | 7.0 | $ | 6.4 |
VECTREN CORPORATION | |||||||||||||||||
AND SUBSIDIARY COMPANIES | |||||||||||||||||
HIGHLIGHTS | |||||||||||||||||
(millions, except per share amounts) | |||||||||||||||||
(Unaudited) | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||||
REPORTED EARNINGS: | |||||||||||||||||
Utility Group | |||||||||||||||||
Gas Utility Services | $ | (2.7 | ) | $ | (4.8 | ) | $ | 36.1 | $ | 33.5 | |||||||
Electric Utility Services | 26.6 | 30.8 | 59.4 | 53.1 | |||||||||||||
Other Operations | 2.5 | 1.9 | 7.0 | 6.2 | |||||||||||||
Total Utility Group | $ | 26.4 | $ | 27.9 | $ | 102.5 | $ | 92.8 | |||||||||
Nonutility Group | |||||||||||||||||
Infrastructure Services | 15.9 | 11.9 | 27.3 | 11.1 | |||||||||||||
Energy Services | 2.6 | 2.3 | 0.9 | 1.6 | |||||||||||||
Coal Mining | (2.2 | ) | 5.8 | — | 15.9 | ||||||||||||
Energy Marketing | |||||||||||||||||
Vectren Source | — | (3.6 | ) | — | 1.0 | (1) | |||||||||||
ProLiance | (2.4 | ) | (8.6 | ) | (13.5 | ) | (25.3 | ) | |||||||||
Other Businesses | (0.7 | ) | (0.2 | ) | (0.6 | ) | (0.9 | ) | |||||||||
Total Nonutility Group | 13.2 | 7.6 | 14.1 | 3.4 | |||||||||||||
Corporate and Other | (0.3 | ) | (0.2 | ) | (0.4 | ) | (1.2 | ) | |||||||||
Vectren Consolidated | $ | 39.3 | $ | 35.3 | $ | 116.2 | $ | 95.0 | |||||||||
EARNINGS PER SHARE | |||||||||||||||||
Utility Group | $ | 0.32 | $ | 0.34 | $ | 1.25 | $ | 1.13 | |||||||||
Nonutility Group, excluding ProLiance | 0.18 | 0.20 | 0.33 | 0.35 | |||||||||||||
ProLiance | (0.02 | ) | (0.11 | ) | (0.16 | ) | (0.31 | ) | |||||||||
Corporate and Other | — | — | — | (0.01 | ) | ||||||||||||
Reported EPS | $ | 0.48 | $ | 0.43 | $ | 1.42 | $ | 1.16 | |||||||||
(1) Vectren Source was sold 12/31/11. Full year 2011 operating earnings were $2.8 million. |
VECTREN CORPORATION | ||||||||||||||||
AND SUBSIDIARY COMPANIES | ||||||||||||||||
SELECTED GAS DISTRIBUTION | ||||||||||||||||
OPERATING STATISTICS | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||
GAS OPERATING REVENUES (Millions): | ||||||||||||||||
Residential | $ | 63.0 | $ | 64.7 | $ | 341.6 | $ | 400.4 | ||||||||
Commercial | 23.5 | 24.0 | 117.9 | 141.2 | ||||||||||||
Industrial | 12.4 | 11.8 | 42.3 | 42.9 | ||||||||||||
Other Revenue | 1.3 | 1.6 | 6.7 | 8.3 | ||||||||||||
$ | 100.2 | $ | 102.1 | $ | 508.5 | $ | 592.8 | |||||||||
GAS MARGIN (Millions): | ||||||||||||||||
Residential | $ | 46.8 | $ | 46.6 | $ | 205.4 | $ | 208.3 | ||||||||
Commercial | 11.7 | 11.8 | 57.7 | 60.1 | ||||||||||||
Industrial | 11.9 | 11.5 | 40.8 | 41.0 | ||||||||||||
Other | 1.7 | 1.7 | 7.6 | 9.0 | ||||||||||||
$ | 72.1 | $ | 71.6 | $ | 311.5 | $ | 318.4 | |||||||||
GAS SOLD & TRANSPORTED (MMDth): | ||||||||||||||||
Residential | 3.7 | 3.9 | 39.3 | 49.1 | ||||||||||||
Commercial | 2.6 | 2.6 | 18.0 | 21.9 | ||||||||||||
Industrial | 25.1 | 20.7 | 77.2 | 70.6 | ||||||||||||
31.4 | 27.2 | 134.5 | 141.6 | |||||||||||||
AVERAGE GAS CUSTOMERS | ||||||||||||||||
Residential | 892,220 | 888,508 | 899,594 | 898,058 | ||||||||||||
Commercial | 82,110 | 81,834 | 82,781 | 82,768 | ||||||||||||
Industrial | 1,664 | 1,635 | 1,661 | 1,643 | ||||||||||||
975,994 | 971,977 | 984,036 | 982,469 | |||||||||||||
YTD WEATHER AS A PERCENT OF NORMAL: | ||||||||||||||||
Heating Degree Days (Ohio) | 83 | % | 106 | % |
VECTREN CORPORATION | ||||||||||||||||
AND SUBSIDIARY COMPANIES | ||||||||||||||||
SELECTED ELECTRIC | ||||||||||||||||
OPERATING STATISTICS | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||
ELECTRIC OPERATING REVENUES (Millions): | ||||||||||||||||
Residential | $ | 65.0 | $ | 71.7 | $ | 160.3 | $ | 169.7 | ||||||||
Commercial | 39.4 | 46.0 | 112.0 | 120.9 | ||||||||||||
Industrial | 51.1 | 56.7 | 148.1 | 160.8 | ||||||||||||
Other Revenue | 2.0 | 2.2 | 6.0 | 6.1 | ||||||||||||
Total Retail | 157.5 | 176.6 | 426.4 | 457.5 | ||||||||||||
Net Wholesale Revenues | 10.4 | 10.1 | 30.2 | 34.9 | ||||||||||||
$ | 167.9 | $ | 186.7 | $ | 456.6 | $ | 492.4 | |||||||||
ELECTRIC MARGIN (Millions): | ||||||||||||||||
Residential | $ | 49.3 | $ | 51.7 | $ | 122.2 | $ | 120.0 | ||||||||
Commercial | 27.6 | 30.4 | 79.1 | 79.1 | ||||||||||||
Industrial | 27.5 | 27.7 | 79.6 | 76.6 | ||||||||||||
Other | 1.9 | 2.2 | 5.6 | 5.7 | ||||||||||||
Total Retail | 106.3 | 112.0 | 286.5 | 281.4 | ||||||||||||
Net Wholesale Margin | 8.7 | 7.6 | 25.5 | 24.1 | ||||||||||||
$ | 115.0 | $ | 119.6 | $ | 312.0 | $ | 305.5 | |||||||||
ELECTRICITY SOLD (GWh): | ||||||||||||||||
Residential | 461.1 | 485.8 | 1,145.7 | 1,209.2 | ||||||||||||
Commercial | 352.7 | 377.7 | 992.5 | 1,013.8 | ||||||||||||
Industrial | 732.5 | 731.8 | 2,127.6 | 2,074.6 | ||||||||||||
Other Sales - Street Lighting | 5.3 | 5.6 | 16.0 | 16.3 | ||||||||||||
Total Retail | 1,551.6 | 1,600.9 | 4,281.8 | 4,313.9 | ||||||||||||
Wholesale | 59.7 | 142.5 | 184.4 | 469.4 | ||||||||||||
1,611.3 | 1,743.4 | 4,466.2 | 4,783.3 | |||||||||||||
AVERAGE ELECTRIC CUSTOMERS | ||||||||||||||||
Residential | 123,264 | 122,831 | 123,259 | 122,947 | ||||||||||||
Commercial | 18,306 | 18,314 | 18,281 | 18,278 | ||||||||||||
Industrial | 115 | 111 | 115 | 111 | ||||||||||||
Other | 33 | 33 | 33 | 33 | ||||||||||||
141,718 | 141,289 | 141,688 | 141,369 | |||||||||||||
YTD WEATHER AS A PERCENT OF NORMAL: | ||||||||||||||||
Cooling Degree Days (Indiana) | 119 | % | 114 | % | 131 | % | 117 | % | ||||||||
Heating Degree Days (Indiana) | 71 | % | 95 | % |