Exhibit 99.2
VECTREN CORPORATION | ||||||||||||||||
AND SUBSIDIARY COMPANIES | ||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||
(Millions, except per share amounts) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months | Six Months | |||||||||||||||
Ended June 30 | Ended June 30 | |||||||||||||||
2008 | 2007 | 2008 | 2007 | |||||||||||||
OPERATING REVENUES: | ||||||||||||||||
Gas utility | $ | 224.9 | $ | 191.9 | $ | 858.5 | $ | 776.0 | ||||||||
Electric utility | 127.2 | 109.9 | 254.4 | 218.0 | ||||||||||||
Nonutility revenues | 111.8 | 119.9 | 253.1 | 261.7 | ||||||||||||
Total operating revenues | 463.9 | 421.7 | 1,366.0 | 1,255.7 | ||||||||||||
OPERATING EXPENSES: | ||||||||||||||||
Cost of gas sold | 143.8 | 114.6 | 605.8 | 539.1 | ||||||||||||
Cost of fuel and purchased power | 48.5 | 38.4 | 94.5 | 79.0 | ||||||||||||
Cost of nonutility revenues | 52.1 | 56.3 | 147.4 | 152.7 | ||||||||||||
Other operating | 124.7 | 111.5 | 240.5 | 218.0 | ||||||||||||
Depreciation and amortization | 47.4 | 46.7 | 94.8 | 92.4 | ||||||||||||
Taxes other than income taxes | 14.4 | 14.5 | 41.2 | 39.2 | ||||||||||||
Total operating expenses | 430.9 | 382.0 | 1,224.2 | 1,120.4 | ||||||||||||
OPERATING INCOME | 33.0 | 39.7 | 141.8 | 135.3 | ||||||||||||
OTHER INCOME (EXPENSE): | ||||||||||||||||
Equity in earnings (losses) of unconsolidated affiliates | (6.5 | ) | 0.5 | 7.5 | 22.7 | |||||||||||
Other - net | 3.1 | 1.8 | 6.1 | 9.2 | ||||||||||||
Total other income (expense) | (3.4 | ) | 2.3 | 13.6 | 31.9 | |||||||||||
INTEREST EXPENSE | 23.2 | 23.4 | 48.5 | 48.4 | ||||||||||||
INCOME BEFORE INCOME TAXES | 6.4 | 18.6 | 106.9 | 118.8 | ||||||||||||
INCOME TAXES | 1.7 | 2.6 | 38.2 | 32.7 | ||||||||||||
NET INCOME | $ | 4.7 | $ | 16.0 | $ | 68.7 | $ | 86.1 | ||||||||
AVERAGE COMMON SHARES OUTSTANDING | 76.2 | 75.9 | 76.1 | 75.9 | ||||||||||||
DILUTED COMMON SHARES OUTSTANDING | 77.1 | 76.7 | 76.8 | 77.0 | ||||||||||||
EARNINGS PER SHARE OF COMMON STOCK | ||||||||||||||||
BASIC | $ | 0.06 | $ | 0.21 | $ | 0.90 | $ | 1.13 | ||||||||
DILUTED | $ | 0.06 | $ | 0.21 | $ | 0.89 | $ | 1.12 |
The accompanying notes are an integral part of these consolidated condensed financial statements.
VECTREN UTILITY HOLDINGS | ||||||||||||||||
AND SUBSIDIARY COMPANIES | ||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||
(Millions) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months | Six Months | |||||||||||||||
Ended June 30 | Ended June 30 | |||||||||||||||
2008 | 2007 | 2008 | 2007 | |||||||||||||
OPERATING REVENUES: | ||||||||||||||||
Gas utility | $ | 224.9 | $ | 191.9 | $ | 858.5 | $ | 776.0 | ||||||||
Electric utility | 127.2 | 109.9 | 254.4 | 218.0 | ||||||||||||
Other | 0.6 | 0.5 | 1.2 | 0.9 | ||||||||||||
Total operating revenues | 352.7 | 302.3 | 1,114.1 | 994.9 | ||||||||||||
OPERATING EXPENSES: | ||||||||||||||||
Cost of gas sold | 143.8 | 114.6 | 605.8 | 539.1 | ||||||||||||
Cost of fuel and purchased power | 48.5 | 38.4 | 94.5 | 79.0 | ||||||||||||
Other operating | 74.5 | 65.6 | 148.5 | 132.8 | ||||||||||||
Depreciation and amortization | 40.9 | 39.8 | 81.6 | 79.0 | ||||||||||||
Taxes other than income taxes | 13.9 | 14.1 | 40.1 | 38.3 | ||||||||||||
Total operating expenses | 321.6 | 272.5 | 970.5 | 868.2 | ||||||||||||
OPERATING INCOME | 31.1 | 29.8 | 143.6 | 126.7 | ||||||||||||
OTHER INCOME - NET | 2.2 | 2.2 | 4.2 | 4.9 | ||||||||||||
INTEREST EXPENSE | 19.1 | 18.6 | 39.9 | 38.0 | ||||||||||||
INCOME BEFORE INCOME TAXES | 14.2 | 13.4 | 107.9 | 93.6 | ||||||||||||
INCOME TAXES | 5.4 | 5.4 | 41.1 | 34.7 | ||||||||||||
NET INCOME | $ | 8.8 | $ | 8.0 | $ | 66.8 | $ | 58.9 |
The accompanying notes are an integral part of these consolidated condensed financial statements.
VECTREN CORPORATION | ||||||||
AND SUBSIDIARY COMPANIES | ||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||
(Millions - Unaudited) | ||||||||
June 30, | December 31, | |||||||
2008 | 2007 | |||||||
ASSETS | ||||||||
Current Assets | ||||||||
Cash & cash equivalents | $ | 12.0 | $ | 20.6 | ||||
Accounts receivable - less reserves of $6.5 & | ||||||||
$3.7, respectively | 159.6 | 189.4 | ||||||
Accrued unbilled revenues | 57.1 | 168.2 | ||||||
Inventories | 134.3 | 160.9 | ||||||
Recoverable fuel & natural gas costs | 17.8 | - | ||||||
Prepayments & other current assets | 105.4 | 160.5 | ||||||
Total current assets | 486.2 | 699.6 | ||||||
Utility Plant | ||||||||
Original cost | 4,169.9 | 4,062.9 | ||||||
Less: accumulated depreciation & amortization | 1,569.3 | 1,523.2 | ||||||
Net utility plant | 2,600.6 | 2,539.7 | ||||||
Investments in unconsolidated affiliates | 182.6 | 208.8 | ||||||
Other investments | 81.2 | 77.0 | ||||||
Nonutility property - net | 343.7 | 320.3 | ||||||
Goodwill - net | 238.0 | 238.0 | ||||||
Regulatory assets | 168.5 | 175.3 | ||||||
Other assets | 38.5 | 37.7 | ||||||
TOTAL ASSETS | $ | 4,139.3 | $ | 4,296.4 | ||||
LIABILITIES & SHAREHOLDERS' EQUITY | ||||||||
Current Liabilities | ||||||||
Accounts payable | $ | 141.9 | $ | 187.4 | ||||
Accounts payable to affiliated companies | 76.1 | 83.7 | ||||||
Refundable fuel & natural gas costs | 12.7 | 27.2 | ||||||
Accrued liabilities | 182.1 | 171.8 | ||||||
Short-term borrowings | 245.5 | 557.0 | ||||||
Current maturities of long-term debt | 0.3 | 0.3 | ||||||
Total current liabilities | 658.6 | 1,027.4 | ||||||
Long-term Debt - Net of Current Maturities & | ||||||||
Debt Subject to Tender | 1,329.1 | 1,245.4 | ||||||
Deferred Income Taxes & Other Liabilities | ||||||||
Deferred income taxes | 313.3 | 318.1 | ||||||
Regulatory liabilities | 310.7 | 307.2 | ||||||
Deferred credits & other liabilities | 166.0 | 164.2 | ||||||
Total deferred credits & other liabilities | 790.0 | 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 | 657.9 | 532.7 | ||||||
Retained earnings | 705.9 | 688.5 | ||||||
Accumulated other comprehensive income (loss) | (2.6 | ) | 12.5 | |||||
Total common shareholders' equity | 1,361.2 | 1,233.7 | ||||||
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY | $ | 4,139.3 | $ | 4,296.4 |
The accompanying notes are an integral part of these consolidated condensed financial statements.
VECTREN CORPORATION | ||||||||
AND SUBSIDIARY COMPANIES | ||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
(Millions - Unaudited) | ||||||||
For the three months ended | ||||||||
June 30, | ||||||||
2008 | 2007 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
Net income | $ | 68.7 | $ | 86.1 | ||||
Adjustments to reconcile net income to cash from operating activities: | ||||||||
Depreciation & amortization | 94.8 | 92.4 | ||||||
Deferred income taxes & investment tax credits | 18.9 | 1.9 | ||||||
Equity in earnings of unconsolidated affiliates | (7.5 | ) | (22.7 | ) | ||||
Provision for uncollectible accounts | 8.9 | 9.1 | ||||||
Expense portion of pension & postretirement periodic benefit cost | 3.9 | 4.9 | ||||||
Other non-cash charges - net | 7.2 | 5.9 | ||||||
Changes in working capital accounts: | ||||||||
Accounts receivable & accrued unbilled revenue | 132.0 | 128.3 | ||||||
Inventories | 25.7 | 35.5 | ||||||
Recoverable/refundable fuel & natural gas costs | (32.3 | ) | 6.9 | |||||
Prepayments & other current assets | 41.2 | 26.3 | ||||||
Accounts payable, including to affiliated companies | (48.2 | ) | (103.2 | ) | ||||
Accrued liabilities | 18.2 | (0.4 | ) | |||||
Unconsolidated affiliate dividends | 9.1 | 17.7 | ||||||
Changes in noncurrent assets | 3.9 | (9.5 | ) | |||||
Changes in noncurrent liabilities | (13.6 | ) | (11.0 | ) | ||||
Net cash flows from operating activities | 330.9 | 268.2 | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
Proceeds from: | ||||||||
Issuance of common stock | 124.9 | - | ||||||
Long-term debt, net of issuance costs | 171.2 | 0.1 | ||||||
Stock option exercises & other | - | 5.2 | ||||||
Requirements for: | ||||||||
Dividends on common stock | (49.4 | ) | (47.8 | ) | ||||
Retirement of long-term debt | (103.3 | ) | - | |||||
Other financing activities | (0.2 | ) | (0.1 | ) | ||||
Net change in short-term borrowings | (311.8 | ) | (135.3 | ) | ||||
Net cash flows from financing activities | (168.6 | ) | (177.9 | ) | ||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
Proceeds from: | ||||||||
Unconsolidated affiliate distributions | - | 11.6 | ||||||
Other collections | 4.3 | 37.2 | ||||||
Requirements for: | ||||||||
Capital expenditures, excluding AFUDC equity | (164.4 | ) | (155.2 | ) | ||||
Unconsolidated affiliate investments | (0.1 | ) | (7.4 | ) | ||||
Other investments | (10.7 | ) | - | |||||
Net cash flows from investing activities | (170.9 | ) | (113.8 | ) | ||||
Net change in cash & cash equivalents | (8.6 | ) | (23.5 | ) | ||||
Cash & cash equivalents at beginning of period | 20.6 | 32.8 | ||||||
Cash & cash equivalents at end of period | $ | 12.0 | $ | 9.3 |
The accompanying notes are an integral part of these consolidated condensed financial statements.
VECTREN CORPORATION | ||||||||||||||||
AND SUBSIDIARY COMPANIES | ||||||||||||||||
HIGHLIGHTS | ||||||||||||||||
(millions, except per share amounts) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months | Six Months | |||||||||||||||
Ended June 30 | Ended June 30 | |||||||||||||||
2008 | 2007 | 2008 | 2007 | |||||||||||||
REPORTED EARNINGS: | ||||||||||||||||
Utility Group | $ | 8.8 | $ | 8.0 | $ | 66.8 | $ | 58.9 | ||||||||
Non-utility Group | ||||||||||||||||
Energy Marketing and Services | (6.7 | ) | 1.9 | 2.3 | 17.6 | |||||||||||
Coal Mining | (0.2 | ) | 0.7 | (1.1 | ) | 2.3 | ||||||||||
Energy Infrastructure Services | 2.7 | 4.0 | (0.5 | ) | 2.0 | |||||||||||
Other Businesses | 0.2 | (0.2 | ) | 1.6 | 0.1 | |||||||||||
Total Non-utility Operations | (4.0 | ) | 6.4 | 2.3 | 22.0 | |||||||||||
Corporate and Other | (0.1 | ) | 0.2 | (0.4 | ) | 0.4 | ||||||||||
Sub-Total Operations | 4.7 | 14.6 | 68.7 | 81.3 | ||||||||||||
Synfuels-related | - | 1.4 | - | 4.8 | ||||||||||||
Vectren Consolidated | $ | 4.7 | $ | 16.0 | $ | 68.7 | $ | 86.1 |
The accompanying notes are an integral part of these consolidated condensed financial statements.
VECTREN CORPORATION | ||||||||||||||||
AND SUBSIDIARY COMPANIES | ||||||||||||||||
SELECTED GAS DISTRIBUTION | ||||||||||||||||
OPERATING STATISTICS | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months | Six Months | |||||||||||||||
Ended June 30 | Ended June 30 | |||||||||||||||
2008 | 2007 | 2008 | 2007 | |||||||||||||
GAS OPERATING REVENUES (Millions): | ||||||||||||||||
Residential | $ | 146.2 | $ | 124.2 | $ | 578.0 | $ | 524.0 | ||||||||
Commercial | 59.6 | 50.2 | 234.8 | 209.8 | ||||||||||||
Industrial | 14.8 | 14.1 | 37.6 | 35.4 | ||||||||||||
Miscellaneous Revenue | 4.3 | 3.4 | 8.1 | 6.8 | ||||||||||||
$ | 224.9 | $ | 191.9 | $ | 858.5 | $ | 776.0 | |||||||||
GAS MARGIN (Millions): | ||||||||||||||||
Residential | $ | 50.3 | $ | 49.9 | $ | 163.5 | $ | 155.0 | ||||||||
Commercial | 15.1 | 14.3 | 52.8 | 49.5 | ||||||||||||
Industrial | 11.1 | 10.0 | 27.8 | 25.7 | ||||||||||||
Miscellaneous | 4.6 | 3.1 | 8.6 | 6.7 | ||||||||||||
$ | 81.1 | $ | 77.3 | $ | 252.7 | $ | 236.9 | |||||||||
GAS SOLD & TRANSPORTED (MMDth): | ||||||||||||||||
Residential | 8.7 | 9.5 | 48.9 | 47.9 | ||||||||||||
Commercial | 3.8 | 4.4 | 21.4 | 20.8 | ||||||||||||
Industrial | 20.4 | 18.1 | 49.1 | 44.5 | ||||||||||||
32.9 | 32.0 | 119.4 | 113.2 | |||||||||||||
AVERAGE GAS CUSTOMERS | ||||||||||||||||
Residential | 899,510 | 898,664 | 906,590 | 905,259 | ||||||||||||
Commercial | 83,766 | 83,709 | 84,443 | 84,275 | ||||||||||||
Industrial | 1,611 | 1,610 | 1,611 | 1,613 | ||||||||||||
984,887 | 983,983 | 992,644 | 991,147 | |||||||||||||
YTD WEATHER AS A PERCENT OF NORMAL: | ||||||||||||||||
Heating Degree Days (Ohio) | 101 | % | 93 | % | 103 | % | 97 | % |
The accompanying notes are an integral part of these consolidated condensed financial statements.
VECTREN CORPORATION | ||||||||||||||||
AND SUBSIDIARY COMPANIES | ||||||||||||||||
SELECTED ELECTRIC | ||||||||||||||||
OPERATING STATISTICS | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months | Six Months | |||||||||||||||
Ended June 30 | Ended June 30 | |||||||||||||||
2008 | 2007 | 2008 | 2007 | |||||||||||||
ELECTRIC OPERATING REVENUES (Millions): | ||||||||||||||||
Residential | $ | 38.2 | $ | 33.3 | $ | 78.9 | $ | 67.0 | ||||||||
Commercial | 32.0 | 26.5 | 60.1 | 49.7 | ||||||||||||
Industrial | 40.0 | 33.8 | 75.0 | 65.9 | ||||||||||||
Municipals | 0.3 | 6.6 | 1.0 | 11.8 | ||||||||||||
Miscellaneous Revenue | 3.1 | 1.7 | 7.7 | 4.7 | ||||||||||||
Total Retail | 113.6 | 101.9 | 222.7 | 199.1 | ||||||||||||
Net Wholesale Revenues | 13.6 | 8.0 | 31.7 | 18.9 | ||||||||||||
$ | 127.2 | $ | 109.9 | $ | 254.4 | $ | 218.0 | |||||||||
ELECTRIC MARGIN (Millions): | ||||||||||||||||
Residential | $ | 28.3 | $ | 25.3 | $ | 58.3 | $ | 49.4 | ||||||||
Commercial | 21.7 | 18.3 | 41.6 | 34.0 | ||||||||||||
Industrial | 20.6 | 18.3 | 39.3 | 34.8 | ||||||||||||
Municipals | 0.0 | 3.5 | 0.0 | 5.7 | ||||||||||||
Miscellaneous | 3.0 | 1.7 | 7.5 | 4.6 | ||||||||||||
Total Retail | 73.6 | 67.1 | 146.7 | 128.5 | ||||||||||||
Net Wholesale Margin | 5.1 | 4.4 | 13.2 | 10.5 | ||||||||||||
$ | 78.7 | $ | 71.5 | $ | 159.9 | $ | 139.0 | |||||||||
ELECTRICITY SOLD (GWh): | ||||||||||||||||
Residential | 314.6 | 352.0 | 720.0 | 742.6 | ||||||||||||
Commercial | 332.0 | 353.4 | 641.8 | 660.7 | ||||||||||||
Industrial | 639.8 | 676.7 | 1,240.5 | 1,303.7 | ||||||||||||
Municipals | 13.0 | 152.0 | 44.3 | 282.0 | ||||||||||||
Miscellaneous Sales | 4.4 | 4.3 | 9.7 | 9.4 | ||||||||||||
Total Retail | 1,303.8 | 1,538.4 | 2,656.3 | 2,998.4 | ||||||||||||
Wholesale | 276.9 | 187.1 | 740.3 | 447.6 | ||||||||||||
1,580.7 | 1,725.5 | 3,396.6 | 3,446.0 | |||||||||||||
AVERAGE ELECTRIC CUSTOMERS | ||||||||||||||||
Residential | 122,387 | 121,980 | 122,571 | 122,021 | ||||||||||||
Commercial | 18,440 | 18,479 | 18,454 | 18,472 | ||||||||||||
Industrial | 101 | 109 | 102 | 109 | ||||||||||||
All Others | 34 | 36 | 34 | 36 | ||||||||||||
140,962 | 140,604 | 141,161 | 140,638 | |||||||||||||
YTD WEATHER AS A PERCENT OF NORMAL: | ||||||||||||||||
Cooling Degree Days (Indiana) | 97 | % | 121 | % | 97 | % | 126 | % | ||||||||
Heating Degree Days (Indiana) | 111 | % | 103 | % | 102 | % | 91 | % |
The accompanying notes are an integral part of these consolidated condensed financial statements.