Exhibit 99.2
VECTREN CORPORATION | ||||||||||||||||
AND SUBSIDIARY COMPANIES | ||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||
(Millions, except per share amounts) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months | Nine Months | |||||||||||||||
Ended September 30 | Ended September 30 | |||||||||||||||
2008 | 2007 | 2008 | 2007 | |||||||||||||
OPERATING REVENUES: | ||||||||||||||||
Gas utility | $ | 143.9 | $ | 114.0 | $ | 1,002.4 | $ | 890.0 | ||||||||
Electric utility | 147.9 | 143.6 | 402.3 | 361.6 | ||||||||||||
Nonutility revenues | 119.6 | 123.8 | 372.7 | 385.5 | ||||||||||||
Total operating revenues | 411.4 | 381.4 | 1,777.4 | 1,637.1 | ||||||||||||
OPERATING EXPENSES: | ||||||||||||||||
Cost of gas sold | 80.2 | 52.9 | 686.0 | 592.0 | ||||||||||||
Cost of fuel and purchased power | 48.7 | 50.5 | 143.2 | 129.5 | ||||||||||||
Cost of nonutility revenues | 51.0 | 57.5 | 198.4 | 210.2 | ||||||||||||
Other operating | 127.9 | 116.4 | 368.4 | 334.4 | ||||||||||||
Depreciation and amortization | 47.7 | 47.3 | 142.5 | 139.7 | ||||||||||||
Taxes other than income taxes | 12.7 | 11.7 | 53.9 | 50.9 | ||||||||||||
Total operating expenses | 368.2 | 336.3 | 1,592.4 | 1,456.7 | ||||||||||||
OPERATING INCOME | 43.2 | 45.1 | 185.0 | 180.4 | ||||||||||||
OTHER INCOME (EXPENSE): | ||||||||||||||||
Equity in earnings (losses) of unconsolidated affiliates | 21.5 | (4.0 | ) | 29.0 | 18.7 | |||||||||||
Other - net | (3.7 | ) | 13.9 | 2.4 | 23.1 | |||||||||||
Total other income (expense) | 17.8 | 9.9 | 31.4 | 41.8 | ||||||||||||
INTEREST EXPENSE | 23.9 | 25.7 | 72.4 | 74.1 | ||||||||||||
INCOME BEFORE INCOME TAXES | 37.1 | 29.3 | 144.0 | 148.1 | ||||||||||||
INCOME TAXES | 13.9 | 12.2 | 52.1 | 44.9 | ||||||||||||
NET INCOME | $ | 23.2 | $ | 17.1 | $ | 91.9 | $ | 103.2 | ||||||||
AVERAGE COMMON SHARES OUTSTANDING | 80.6 | 75.9 | 77.6 | 75.9 | ||||||||||||
DILUTED COMMON SHARES OUTSTANDING | 81.1 | 76.4 | 78.2 | 76.5 | ||||||||||||
EARNINGS PER SHARE OF COMMON STOCK | ||||||||||||||||
BASIC | $ | 0.29 | $ | 0.23 | $ | 1.18 | $ | 1.36 | ||||||||
DILUTED | $ | 0.29 | $ | 0.22 | $ | 1.17 | $ | 1.35 |
VECTREN UTILITY HOLDINGS | ||||||||||||||||
AND SUBSIDIARY COMPANIES | ||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||
(Millions) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months | Nine Months | |||||||||||||||
Ended September 30 | Ended September 30 | |||||||||||||||
2008 | 2007 | 2008 | 2007 | |||||||||||||
OPERATING REVENUES: | ||||||||||||||||
Gas utility | $ | 143.9 | $ | 114.0 | $ | 1,002.4 | $ | 890.0 | ||||||||
Electric utility | 147.9 | 143.6 | 402.3 | 361.6 | ||||||||||||
Other | 0.6 | 0.4 | 1.8 | 1.3 | ||||||||||||
Total operating revenues | 292.4 | 258.0 | 1,406.5 | 1,252.9 | ||||||||||||
OPERATING EXPENSES: | ||||||||||||||||
Cost of gas sold | 80.2 | 52.9 | 686.0 | 592.0 | ||||||||||||
Cost of fuel and purchased power | 48.7 | 50.5 | 143.2 | 129.5 | ||||||||||||
Other operating | 69.2 | 65.6 | 217.7 | 198.4 | ||||||||||||
Depreciation and amortization | 41.6 | 40.4 | 123.2 | 119.4 | ||||||||||||
Taxes other than income taxes | 11.7 | 11.3 | 51.8 | 49.6 | ||||||||||||
Total operating expenses | 251.4 | 220.7 | 1,221.9 | 1,088.9 | ||||||||||||
OPERATING INCOME | 41.0 | 37.3 | 184.6 | 164.0 | ||||||||||||
OTHER INCOME - NET | 0.7 | 1.3 | 4.9 | 6.2 | ||||||||||||
INTEREST EXPENSE | 19.6 | 20.8 | 59.5 | 58.8 | ||||||||||||
INCOME BEFORE INCOME TAXES | 22.1 | 17.8 | 130.0 | 111.4 | ||||||||||||
INCOME TAXES | 8.5 | 7.1 | 49.6 | 41.8 | ||||||||||||
NET INCOME | $ | 13.6 | $ | 10.7 | $ | 80.4 | $ | 69.6 |
VECTREN CORPORATION | ||||||||
AND SUBSIDIARY COMPANIES | ||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||
(Millions - Unaudited) | ||||||||
September 30, | December 31, | |||||||
2008 | 2007 | |||||||
ASSETS | ||||||||
Current Assets | ||||||||
Cash & cash equivalents | $ | 14.1 | $ | 20.6 | ||||
Accounts receivable - less reserves of $5.6 & | ||||||||
$4.0, respectively | 146.4 | 189.4 | ||||||
Accrued unbilled revenues | 49.6 | 168.2 | ||||||
Inventories | 234.8 | 160.9 | ||||||
Recoverable fuel & natural gas costs | 28.7 | - | ||||||
Prepayments & other current assets | 142.8 | 160.5 | ||||||
Total current assets | 616.4 | 699.6 | ||||||
Utility Plant | ||||||||
Original cost | 4,226.4 | 4,062.9 | ||||||
Less: accumulated depreciation & amortization | 1,590.6 | 1,523.2 | ||||||
Net utility plant | 2,635.8 | 2,539.7 | ||||||
Investments in unconsolidated affiliates | 205.6 | 208.8 | ||||||
Other utility and corporate investments | 25.0 | 26.3 | ||||||
Other nonutility investments | 45.5 | 50.7 | ||||||
Nonutility property - net | 362.7 | 320.3 | ||||||
Goodwill - net | 239.4 | 238.0 | ||||||
Regulatory assets | 164.7 | 175.3 | ||||||
Other assets | 38.2 | 37.7 | ||||||
TOTAL ASSETS | $ | 4,333.3 | $ | 4,296.4 | ||||
LIABILITIES & SHAREHOLDERS' EQUITY | ||||||||
Current Liabilities | ||||||||
Accounts payable | $ | 182.0 | $ | 187.4 | ||||
Accounts payable to affiliated companies | 49.4 | 83.7 | ||||||
Refundable fuel & natural gas costs | 6.9 | 27.2 | ||||||
Accrued liabilities | 234.0 | 171.8 | ||||||
Short-term borrowings | 354.4 | 557.0 | ||||||
Current maturities of long-term debt | 0.4 | 0.3 | ||||||
Long-term debt subject to tender | 80.0 | - | ||||||
Total current liabilities | 907.1 | 1,027.4 | ||||||
Long-term Debt - Net of Current Maturities & | ||||||||
Debt Subject to Tender | 1,248.4 | 1,245.4 | ||||||
Deferred Income Taxes & Other Liabilities | ||||||||
Deferred income taxes | 343.0 | 318.1 | ||||||
Regulatory liabilities | 313.0 | 307.2 | ||||||
Deferred credits & other liabilities | 161.6 | 164.2 | ||||||
Total deferred credits & other liabilities | 817.6 | 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 | 658.0 | 532.7 | ||||||
Retained earnings | 702.9 | 688.5 | ||||||
Accumulated other comprehensive income | (1.1 | ) | 12.5 | |||||
Total common shareholders' equity | 1,359.8 | 1,233.7 | ||||||
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY | $ | 4,333.3 | $ | 4,296.4 |
VECTREN CORPORATION | ||||||||
AND SUBSIDIARY COMPANIES | ||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
(Millions - Unaudited) | ||||||||
For the nine months ended | ||||||||
September 30, | ||||||||
2008 | 2007 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
Net income | $ | 91.9 | $ | 103.2 | ||||
Adjustments to reconcile net income to cash from operating activities: | ||||||||
Depreciation & amortization | 142.5 | 139.7 | ||||||
Deferred income taxes & investment tax credits | 57.2 | 18.0 | ||||||
Equity in earnings of unconsolidated affiliates | (29.0 | ) | (18.7 | ) | ||||
Provision for uncollectible accounts | 12.9 | 12.7 | ||||||
Expense portion of pension & postretirement periodic benefit cost | 5.8 | 7.3 | ||||||
Other non-cash charges - net | 19.1 | - | ||||||
Changes in working capital accounts: | ||||||||
Accounts receivable & accrued unbilled revenue | 148.7 | 126.5 | ||||||
Inventories | (77.3 | ) | (35.3 | ) | ||||
Recoverable/refundable fuel & natural gas costs | (49.0 | ) | (7.6 | ) | ||||
Prepayments & other current assets | (10.4 | ) | 2.5 | |||||
Accounts payable, including to affiliated companies | (30.9 | ) | (74.3 | ) | ||||
Accrued liabilities | 75.1 | (15.0 | ) | |||||
Unconsolidated affiliate dividends | 9.3 | 20.0 | ||||||
Changes in noncurrent assets | 1.3 | (13.5 | ) | |||||
Changes in noncurrent liabilities | (23.5 | ) | (33.3 | ) | ||||
Net cash flows from operating activities | 343.7 | 232.2 | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
Proceeds from: | ||||||||
Issuance of common stock | 124.9 | - | ||||||
Long-term debt, net of issuance costs | 171.2 | - | ||||||
Stock option exercises & other | - | 5.2 | ||||||
Requirements for: | ||||||||
Dividends on common stock | (75.6 | ) | (71.8 | ) | ||||
Retirement of long-term debt | (104.1 | ) | (6.6 | ) | ||||
Other financing activities | (0.1 | ) | - | |||||
Net change in short-term borrowings | (202.9 | ) | 21.9 | |||||
Net cash flows from financing activities | (86.6 | ) | (51.3 | ) | ||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
Proceeds from: | ||||||||
Unconsolidated affiliate distributions | - | 11.7 | ||||||
Other collections | 6.1 | 37.3 | ||||||
Requirements for: | ||||||||
Capital expenditures, excluding AFUDC equity | (258.7 | ) | (239.0 | ) | ||||
Unconsolidated affiliate investments | (0.2 | ) | (12.4 | ) | ||||
Other investments | (10.8 | ) | (0.1 | ) | ||||
Net cash flows from investing activities | (263.6 | ) | (202.5 | ) | ||||
Net change in cash & cash equivalents | (6.5 | ) | (21.6 | ) | ||||
Cash & cash equivalents at beginning of period | 20.6 | 32.8 | ||||||
Cash & cash equivalents at end of period | $ | 14.1 | $ | 11.2 |
VECTREN CORPORATION | ||||||||||||||||
AND SUBSIDIARY COMPANIES | ||||||||||||||||
HIGHLIGHTS | ||||||||||||||||
(millions, except per share amounts) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months | Nine Months | |||||||||||||||
Ended September 30 | Ended September 30 | |||||||||||||||
2008 | 2007 | 2008 | 2007 | |||||||||||||
REPORTED EARNINGS: | ||||||||||||||||
Utility Group | $ | 13.6 | $ | 10.7 | $ | 80.4 | $ | 69.6 | ||||||||
Non-utility Group | ||||||||||||||||
Energy Marketing and Services | 10.1 | (2.0 | ) | 12.4 | 15.6 | |||||||||||
Coal Mining | (0.5 | ) | 0.4 | (1.6 | ) | 2.7 | ||||||||||
Energy Infrastructure Services | 6.0 | 4.6 | 5.5 | 6.6 | ||||||||||||
Other Businesses | 0.1 | 0.1 | 1.7 | 0.2 | ||||||||||||
Commercial Real Estate Impairment Charge | (5.9 | ) | - | (5.9 | ) | - | ||||||||||
Total Non-utility Operations | 9.8 | 3.1 | 12.1 | 25.1 | ||||||||||||
Corporate and Other | (0.2 | ) | (0.2 | ) | (0.6 | ) | 0.2 | |||||||||
Sub-Total Operations | 23.2 | 13.6 | 91.9 | 94.9 | ||||||||||||
Synfuels-related | - | 3.5 | - | 8.3 | ||||||||||||
Vectren Consolidated | $ | 23.2 | $ | 17.1 | $ | 91.9 | $ | 103.2 |
VECTREN CORPORATION | ||||||||||||||||
AND SUBSIDIARY COMPANIES | ||||||||||||||||
SELECTED GAS DISTRIBUTION | ||||||||||||||||
OPERATING STATISTICS | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months | Nine Months | |||||||||||||||
Ended September 30 | Ended September 30 | |||||||||||||||
2008 | 2007 | 2008 | 2007 | |||||||||||||
GAS OPERATING REVENUES (Millions): | ||||||||||||||||
Residential | $ | 85.4 | $ | 67.2 | $ | 663.4 | $ | 591.2 | ||||||||
Commercial | 43.8 | 30.9 | 278.6 | 240.7 | ||||||||||||
Industrial | 13.1 | 12.1 | 50.7 | 47.5 | ||||||||||||
Miscellaneous Revenue | 1.6 | 3.8 | 9.7 | 10.6 | ||||||||||||
$ | 143.9 | $ | 114.0 | $ | 1,002.4 | $ | 890.0 | |||||||||
GAS MARGIN (Millions): | ||||||||||||||||
Residential | $ | 39.2 | $ | 36.5 | $ | 202.7 | $ | 191.5 | ||||||||
Commercial | 12.4 | 10.6 | 65.2 | 60.1 | ||||||||||||
Industrial | 10.2 | 9.5 | 38.0 | 35.2 | ||||||||||||
Miscellaneous | 1.9 | 4.5 | 10.5 | 11.2 | ||||||||||||
$ | 63.7 | $ | 61.1 | $ | 316.4 | $ | 298.0 | |||||||||
GAS SOLD & TRANSPORTED (MMDth): | ||||||||||||||||
Residential | 3.8 | 3.8 | 52.7 | 51.7 | ||||||||||||
Commercial | 2.5 | 2.6 | 23.9 | 23.4 | ||||||||||||
Industrial | 18.4 | 18.0 | 67.5 | 62.5 | ||||||||||||
24.7 | 24.4 | 144.1 | 137.6 | |||||||||||||
AVERAGE GAS CUSTOMERS | ||||||||||||||||
Residential | 887,185 | 889,257 | 900,122 | 899,926 | ||||||||||||
Commercial | 82,764 | 82,914 | 83,883 | 83,822 | ||||||||||||
Industrial | 1,610 | 1,611 | 1,610 | 1,611 | ||||||||||||
971,559 | 973,782 | 985,615 | 985,359 | |||||||||||||
YTD WEATHER AS A PERCENT OF NORMAL: | ||||||||||||||||
Heating Degree Days (Ohio) | 19 | % | 41 | % | 101 | % | 96 | % |
VECTREN CORPORATION | ||||||||||||||||
AND SUBSIDIARY COMPANIES | ||||||||||||||||
SELECTED ELECTRIC | ||||||||||||||||
OPERATING STATISTICS | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months | Nine Months | |||||||||||||||
Ended September 30 | Ended September 30 | |||||||||||||||
2008 | 2007 | 2008 | 2007 | |||||||||||||
ELECTRIC OPERATING REVENUES (Millions): | ||||||||||||||||
Residential | $ | 53.6 | $ | 56.2 | $ | 132.5 | $ | 123.2 | ||||||||
Commercial | 35.2 | 34.3 | 95.3 | 84.0 | ||||||||||||
Industrial | 40.4 | 39.1 | 115.4 | 105.0 | ||||||||||||
Municipals | 0.0 | 6.4 | 1.0 | 18.2 | ||||||||||||
Miscellaneous Revenue | 1.6 | 2.8 | 9.3 | 7.5 | ||||||||||||
Total Retail | 130.8 | 138.8 | 353.5 | 337.9 | ||||||||||||
Net Wholesale Revenues | 17.1 | 4.8 | 48.8 | 23.7 | ||||||||||||
$ | 147.9 | $ | 143.6 | $ | 402.3 | $ | 361.6 | |||||||||
ELECTRIC MARGIN (Millions): | ||||||||||||||||
Residential | $ | 40.6 | $ | 41.3 | $ | 98.9 | $ | 90.7 | ||||||||
Commercial | 24.9 | 23.2 | 66.5 | 57.2 | ||||||||||||
Industrial | 23.2 | 21.6 | 62.5 | 56.4 | ||||||||||||
Municipals | 0.0 | 1.6 | 0.0 | 7.3 | ||||||||||||
Miscellaneous | 1.5 | 2.8 | 9.0 | 7.4 | ||||||||||||
Total Retail | 90.2 | 90.5 | 236.9 | 219.0 | ||||||||||||
Net Wholesale Margin | 9.0 | 2.6 | 22.2 | 13.1 | ||||||||||||
$ | 99.2 | $ | 93.1 | $ | 259.1 | $ | 232.1 | |||||||||
ELECTRICITY SOLD (GWh): | ||||||||||||||||
Residential | 462.4 | 547.7 | 1,182.4 | 1,290.3 | ||||||||||||
Commercial | 371.4 | 406.7 | 1,013.2 | 1,067.4 | ||||||||||||
Industrial | 619.0 | 638.7 | 1,859.5 | 1,942.4 | ||||||||||||
Municipals | - | 187.4 | 44.3 | 469.4 | ||||||||||||
Miscellaneous Sales | 4.3 | 4.7 | 14.0 | 14.1 | ||||||||||||
Total Retail | 1,457.1 | 1,785.2 | 4,113.4 | 4,783.6 | ||||||||||||
Wholesale | 371.1 | 96.5 | 1,111.4 | 544.1 | ||||||||||||
1,828.2 | 1,881.7 | 5,224.8 | 5,327.7 | |||||||||||||
AVERAGE ELECTRIC CUSTOMERS | ||||||||||||||||
Residential | 122,373 | 122,194 | 122,505 | 122,078 | ||||||||||||
Commercial | 18,393 | 18,489 | 18,434 | 18,478 | ||||||||||||
Industrial | 103 | 109 | 102 | 109 | ||||||||||||
All Others | 34 | 38 | 34 | 37 | ||||||||||||
140,903 | 140,830 | 141,075 | 140,702 | |||||||||||||
YTD WEATHER AS A PERCENT OF NORMAL: | ||||||||||||||||
Cooling Degree Days (Indiana) | 100 | % | 127 | % | 99 | % | 127 | % | ||||||||
Heating Degree Days (Indiana) | 100 | % | 90 | % |