Ex 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 | ||||||||
2005 | 2004 | 2005 | 2004 | ||||||
OPERATING REVENUES: | |||||||||
Gas utility | $ 136.8 | $ 112.3 | $ 839.5 | $ 771.6 | |||||
Electric utility | 128.7 | 102.3 | 320.3 | 280.2 | |||||
Energy services and other | 45.3 | 39.8 | 154.4 | 124.6 | |||||
Total operating revenues | 310.8 | 254.4 | 1,314.2 | 1,176.4 | |||||
OPERATING EXPENSES: | |||||||||
Cost of gas sold | 81.6 | 67.2 | 568.8 | 529.8 | |||||
Fuel for electric generation | 39.3 | 25.8 | 95.6 | 72.4 | |||||
Purchased electric energy | 8.8 | 5.3 | 14.7 | 16.6 | |||||
Cost of energy services and other | 32.5 | 27.0 | 115.5 | 90.1 | |||||
Other operating | 67.2 | 59.6 | 204.1 | 190.8 | |||||
Depreciation and amortization | 41.2 | 36.2 | 116.8 | 103.6 | |||||
Taxes other than income taxes | 10.3 | 9.9 | 44.4 | 43.3 | |||||
Total operating expenses | 280.9 | 231.0 | 1,159.9 | 1,046.6 | |||||
OPERATING INCOME | 29.9 | 23.4 | 154.3 | 129.8 | |||||
OTHER INCOME: | |||||||||
Equity in earnings of unconsolidated affiliates | 5.4 | 1.5 | 12.5 | 13.5 | |||||
Other - net | 1.6 | 3.3 | 5.6 | 2.1 | |||||
Total other income | 7.0 | 4.8 | 18.1 | 15.6 | |||||
INTEREST EXPENSE | 21.0 | 19.4 | 60.8 | 57.5 | |||||
INCOME BEFORE INCOME TAXES | 15.9 | 8.8 | 111.6 | 87.9 | |||||
INCOME TAXES | (0.6) | (0.9) | 25.6 | 20.0 | |||||
MINORITY INTEREST & PREFERRED DIVIDEND | |||||||||
REQUIREMENT OF SUBSIDIARIES | - | - | - | 0.1 | |||||
NET INCOME | $ 16.5 | $ 9.7 | $ 86.0 | $ 67.8 | |||||
AVERAGE COMMON SHARES OUTSTANDING | 75.7 | 75.6 | 75.6 | 75.5 | |||||
DILUTED COMMON SHARES OUTSTANDING | 76.2 | 76.0 | 76.2 | 75.9 | |||||
EARNINGS PER SHARE OF COMMON STOCK | |||||||||
BASIC | $ 0.22 | $ 0.13 | $ 1.14 | $ 0.90 | |||||
DILUTED | $ 0.22 | $ 0.13 | $ 1.13 | $ 0.89 |
VECTREN UTILITY HOLDINGS INC. | |||||||||
AND SUBSIDIARY COMPANIES | |||||||||
CONSOLIDATED STATEMENTS OF INCOME | |||||||||
(Millions-Unaudited) | |||||||||
Three Months | Nine Months | |||||||
Ended September 30 | Ended September 30 | |||||||
2005 | 2004 | 2005 | 2004 | |||||
OPERATING REVENUES: | ||||||||
Gas utility | $ 136.8 | $ 112.3 | $ 839.5 | $ 771.6 | ||||
Electric utility | 128.7 | 102.3 | 320.3 | 280.2 | ||||
Other | 0.2 | 0.1 | 0.5 | 0.5 | ||||
Total operating revenues | 265.7 | 214.7 | 1,160.3 | 1,052.3 | ||||
OPERATING EXPENSES: | ||||||||
Cost of gas sold | 81.6 | 67.2 | 568.8 | 529.8 | ||||
Fuel for electric generation | 39.3 | 25.8 | 95.6 | 72.4 | ||||
Purchased electric energy | 8.8 | 5.3 | 14.7 | 16.6 | ||||
Other operating | 58.9 | 52.0 | 179.7 | 167.7 | ||||
Depreciation and amortization | 36.3 | 33.1 | 104.2 | 94.5 | ||||
Taxes other than income taxes | 10.1 | 9.6 | 43.6 | 42.4 | ||||
Total operating expenses | 235.0 | 193.0 | 1,006.6 | 923.4 | ||||
OPERATING INCOME | 30.7 | 21.7 | 153.7 | 128.9 | ||||
OTHER INCOME (EXPENSE): | ||||||||
Equity in earnings of unconsolidated affiliates | - | - | - | 0.2 | ||||
Other - net | 1.3 | 2.3 | 4.6 | 5.7 | ||||
Total other income | 1.3 | 2.3 | 4.6 | 5.9 | ||||
INTEREST EXPENSE | 17.5 | 16.7 | 50.8 | 50.2 | ||||
INCOME BEFORE INCOME TAXES | 14.5 | 7.3 | 107.5 | 84.6 | ||||
INCOME TAXES | 5.6 | 2.8 | 42.7 | 32.7 | ||||
NET INCOME | $ 8.9 | $ 4.5 | $ 64.8 | $ 51.9 |
VECTREN CORPORATION | |||||||||
AND SUBSIDIARY COMPANIES | |||||||||
CONSOLIDATED BALANCE SHEETS | |||||||||
(Millions- Unaudited) | |||||||||
September 30, | December 31, | |||||
2005 | 2004 | |||||
ASSETS | ||||||
Current Assets | ||||||
Cash & cash equivalents | $ | 4.1 | $ | 9.6 | ||
Accounts receivable - less reserves of $2.4 & | ||||||
$2.0, respectively | 97.2 | 173.5 | ||||
Accrued unbilled revenues | 53.5 | 176.6 | ||||
Inventories | 89.2 | 67.6 | ||||
Recoverable fuel & natural gas costs | 17.1 | 17.7 | ||||
Prepayments & other current assets | 180.7 | 141.3 | ||||
Total current assets | 441.8 | 586.3 | ||||
Utility Plant | ||||||
Original cost | 3,563.5 | 3,465.2 | ||||
Less: accumulated depreciation & amortization | 1,361.5 | 1,309.0 | ||||
Net utility plant | 2,202.0 | 2,156.2 | ||||
Investments in unconsolidated affiliates | 183.2 | 180.0 | ||||
Other investments | 116.2 | 115.1 | ||||
Non-utility property - net | 242.4 | 229.2 | ||||
Goodwill - net | 207.1 | 207.1 | ||||
Regulatory assets | 88.0 | 82.5 | ||||
Other assets | 26.3 | 30.5 | ||||
TOTAL ASSETS | $ | 3,507.0 | $ | 3,586.9 | ||
LIABILITIES & SHAREHOLDERS' EQUITY | ||||||
Current Liabilities | ||||||
Accounts payable | $ | 92.7 | $ | 123.8 | ||
Accounts payable to affiliated companies | 82.0 | 109.3 | ||||
Refundable fuel & natural gas costs | 11.0 | 6.3 | ||||
Accrued liabilities | 117.9 | 125.8 | ||||
Short-term borrowings | 369.1 | 412.4 | ||||
Current maturities of long-term debt | 38.4 | 38.5 | ||||
Long-term debt subject to tender | - | 10.0 | ||||
Total current liabilities | 711.1 | 826.1 | ||||
Long-term Debt - Net of Current Maturities & | ||||||
Debt Subject to Tender | 1,026.6 | 1,016.6 | ||||
Deferred Income Taxes & Other Liabilities | ||||||
Deferred income taxes | 227.7 | 234.0 | ||||
Regulatory liabilities & other removal costs | 266.0 | 251.7 | ||||
Deferred credits & other liabilities | 168.6 | 163.2 | ||||
Total deferred credits & other liabilities | 662.3 | 648.9 | ||||
Minority Interest in Subsidiary | 0.4 | 0.4 | ||||
Cumulative, Redeemable Preferred Stock of a Subsidiary | - | 0.1 | ||||
Common Shareholders' Equity | ||||||
Common stock (no par value) – issued & outstanding | ||||||
76.1 and 75.9 shares, respectively | 529.3 | 526.8 | ||||
Retained earnings | 601.1 | 583.0 | ||||
Accumulated other comprehensive loss | (23.8 | ) | (15.0) | |||
Total common shareholders' equity | 1,106.6 | 1,094.8 | ||||
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY | $ | 3,507.0 | $ | 3,586.9 |
VECTREN CORPORATION | |||||||||
AND SUBSIDIARY COMPANIES | |||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||
(Millions- Unaudited) |
Nine Months | |||||||
Ended September 30, | |||||||
2005 | 2004 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||
Net income | $ | 86.0 | $ | 67.8 | |||
Adjustments to reconcile net income to cash from operating activities: | |||||||
Depreciation & amortization | 116.8 | 103.6 | |||||
Deferred income taxes & investment tax credits | (5.5 | ) | (5.4 | ) | |||
Equity in earnings of unconsolidated affiliates | (12.5 | ) | (13.5 | ) | |||
Net unrealized (gain) on derivative instruments | (1.4 | ) | 1.0 | ||||
Pension & postretirement periodic benefit cost | 13.5 | 12.3 | |||||
Other non-cash charges - net | 13.2 | 16.1 | |||||
Changes in working capital accounts: | |||||||
Accounts receivable & accrued unbilled revenue | 189.3 | 126.0 | |||||
Inventories | (21.6 | ) | (7.0 | ) | |||
Recoverable fuel & natural gas costs | 5.3 | (18.2 | ) | ||||
Prepayments & other current assets | (33.1 | ) | (21.3 | ) | |||
Accounts payable, including to affiliated companies | (58.4 | ) | (22.5 | ) | |||
Accrued liabilities | (7.6 | ) | (12.8 | ) | |||
Changes in noncurrent assets | (5.7 | ) | (6.1 | ) | |||
Changes in noncurrent liabilities | (9.4 | ) | (13.4 | ) | |||
Net cash flows from operating activities | 268.9 | 206.6 | |||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
Proceeds from stock option exercises & other stock plans | - | 4.5 | |||||
Requirements for: | |||||||
Dividends on common stock | (67.3 | ) | (64.6 | ) | |||
Retirement of long-term debt, including premiums paid | (0.4 | ) | (12.5 | ) | |||
Redemption of preferred stock of subsidiary | (0.1 | ) | (0.1 | ) | |||
Other financing activities | (0.5 | ) | - | ||||
Net change in short-term borrowings | (43.3 | ) | 34.9 | ||||
Net cash flows from financing activities | (111.6 | ) | (37.8 | ) | |||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
Proceeds from: | |||||||
Unconsolidated affiliate distributions | 9.3 | 23.6 | |||||
Notes receivable & other collections | 0.9 | 8.9 | |||||
Requirements for: | |||||||
Capital expenditures, excluding AFUDC equity | (158.4 | ) | (189.3 | ) | |||
Unconsolidated affiliate investments | (14.6 | ) | (15.7 | ) | |||
Notes receivable & other investments | - | (3.8 | ) | ||||
Net cash flows from investing activities | (162.8 | ) | (176.3 | ) | |||
Net decrease in cash & cash equivalents | (5.5 | ) | (7.5 | ) | |||
Cash & cash equivalents at beginning of period | 9.6 | 15.3 | |||||
Cash & cash equivalents at end of period | $ | 4.1 | $ | 7.8 |
VECTREN CORPORATION | ||||||||||||||||
AND SUBSIDIARY COMPANIES | ||||||||||||||||
HIGHLIGHTS | ||||||||||||||||
(Millions-Unaudited) | ||||||||||||||||
Three Months Ended September 30 | Nine Months Ended September 30 | |||||||||||||||
2005 | 2004 | 2005 | 2004 | |||||||||||||
REPORTED EARNINGS: | ||||||||||||||||
Utility Group | $ 8.9 | $ 4.5 | $ 64.8 | $ 51.9 | ||||||||||||
Non-regulated Group | ||||||||||||||||
Energy Marketing and Services | 3.3 | 1.2 | 10.0 | 9.1 | ||||||||||||
Mining | 1.6 | 0.2 | 4.2 | 1.5 | ||||||||||||
Synfuels related | 3.3 | 3.4 | 9.8 | 9.6 | ||||||||||||
Total Coal Mining | 4.9 | 3.6 | 14.0 | 11.1 | ||||||||||||
Utility Infrastructure Services | 1.0 | 1.4 | 0.5 | 1.3 | ||||||||||||
Other Businesses | (0.7 | ) | (0.3 | ) | (1.4 | ) | (4.3 | ) | ||||||||
Total Non-regulated Group | 8.5 | 5.9 | 23.1 | 17.2 | ||||||||||||
Corporate and Other | (0.9 | ) | (0.7 | ) | (1.9 | ) | (1.3 | ) | ||||||||
Vectren Consolidated | $ 16.5 | $ 9.7 | $ 86.0 | $ 67.8 |
VECTREN CORPORATION | |||||||||
AND SUBSIDIARY COMPANIES | |||||||||
SELECTED GAS DISTRIBUTION | |||||||||
OPERATING STATISTICS |
(Unaudited)
Three Months Ended September 30 | Nine Months Ended September 30 | |||||||||||||||
2005 | 2004 | 2005 | 2004 | |||||||||||||
GAS OPERATING REVENUES (Millions): | ||||||||||||||||
Residential | $ 80.4 | $ 66.5 | $ 549.3 | $ 508.9 | ||||||||||||
Commercial | 41.6 | 35.6 | 236.3 | 220.7 | ||||||||||||
Industrial | 13.9 | 10.5 | 45.6 | 39.5 | ||||||||||||
Miscellaneous Revenue | 0.9 | (0.3 | ) | 8.3 | 2.5 | |||||||||||
$ 136.8 | $ 112.3 | $ 839.5 | $ 771.6 | |||||||||||||
GAS MARGIN (Millions): | ||||||||||||||||
Residential | $ 34.8 | $ 28.5 | $ 174.8 | $ 156.3 | ||||||||||||
Commercial | 10.0 | 8.0 | 55.6 | 49.6 | ||||||||||||
Industrial | 9.1 | 8.8 | 34.4 | 32.9 | ||||||||||||
Miscellaneous | 1.3 | (0.2 | ) | 5.9 | 3.0 | |||||||||||
$ 55.2 | $ 45.1 | $ 270.7 | $ 241.8 | |||||||||||||
GAS SOLD & TRANSPORTED (MMDth): | ||||||||||||||||
Residential | 4.0 | 4.1 | 51.6 | 54.0 | ||||||||||||
Commercial | 2.8 | 2.9 | 23.7 | 24.9 | ||||||||||||
Industrial | 17.4 | 17.1 | 63.4 | 62.4 | ||||||||||||
24.2 | 24.1 | 138.7 | 141.3 | |||||||||||||
AVERAGE GAS CUSTOMERS | ||||||||||||||||
Residential | 877,273 | 870,204 | 887,883 | 879,394 | ||||||||||||
Commercial | 81,967 | 81,005 | 83,046 | 82,044 | ||||||||||||
Industrial | 1,638 | 1,564 | 1,616 | 1,569 | ||||||||||||
960,878 | 952,773 | 972,545 | 963,007 | |||||||||||||
YTD WEATHER AS A PERCENT OF NORMAL: | ||||||||||||||||
Heating Degree Days | 22 | % | 51 | % | 91% | 91% |
VECTREN CORPORATION | |||||||||
AND SUBSIDIARY COMPANIES | |||||||||
SELECTED ELECTRIC | |||||||||
OPERATING STATISTICS |
(Unaudited)
Three Months | Nine Months | ||||||||||||||||||
Ended September 30 | Ended September 30 | ||||||||||||||||||
2005 | 2004 | 2005 | 2004 | ||||||||||||||||
ELECTRIC OPERATING REVENUES (Millions): | |||||||||||||||||||
Residential | $ 48.1 | $ 35.8 | $ 106.2 | $ 92.5 | |||||||||||||||
Commercial | 28.1 | 23.4 | 72.1 | 64.9 | |||||||||||||||
Industrial | 34.1 | 28.0 | 89.9 | 80.2 | |||||||||||||||
Municipals | 7.8 | 7.0 | 20.0 | 18.4 | |||||||||||||||
Miscellaneous Revenue | 1.9 | 2.3 | 4.3 | 8.9 | |||||||||||||||
Total Retail | 120.0 | 96.5 | 292.5 | 264.9 | |||||||||||||||
Net Wholesale Revenues | 8.7 | 5.8 | 27.8 | 15.3 | |||||||||||||||
$ 128.7 | $ 102.3 | $ 320.3 | $ 280.2 | ||||||||||||||||
�� | |||||||||||||||||||
ELECTRIC MARGIN (Millions): | |||||||||||||||||||
Residential | $ 35.6 | $ 28.3 | $ 80.6 | $ 72.7 | |||||||||||||||
Commercial | 18.8 | 17.2 | 50.6 | 47.5 | |||||||||||||||
Industrial | 18.0 | 16.9 | 49.6 | 47.5 | |||||||||||||||
Municipals | 3.2 | 4.2 | 10.0 | 10.8 | |||||||||||||||
Miscellaneous | 1.7 | 0.3 | 4.1 | 3.1 | |||||||||||||||
Total Retail | 77.3 | 66.9 | 194.9 | 181.6 | |||||||||||||||
Net Wholesale Margin | 3.3 | 4.3 | 15.1 | 9.6 | |||||||||||||||
$ 80.6 | $ 71.2 | $ 210.0 | $ 191.2 | ||||||||||||||||
ELECTRICITY SOLD (GWh): | |||||||||||||||||||
Residential | 536.8 | 442.3 | 1,228.1 | 1,179.4 | |||||||||||||||
Commercial | 395.8 | 368.6 | 1,035.9 | 1,018.3 | |||||||||||||||
Industrial | 684.9 | 653.1 | 1,954.9 | 1,911.6 | |||||||||||||||
Municipals | 200.5 | 176.6 | 519.5 | 486.8 | |||||||||||||||
Miscellaneous Sales | 4.7 | 55.6 | 13.8 | 163.1 | |||||||||||||||
Total Retail | 1,822.7 | 1,696.2 | 4,752.2 | 4,759.2 | |||||||||||||||
Wholesale | 727.0 | 1,231.2 | 2,423.9 | 2,336.3 | |||||||||||||||
2,549.7 | 2,927.4 | 7,176.1 | 7,095.5 | ||||||||||||||||
AVERAGE ELECTRIC CUSTOMERS | |||||||||||||||||||
Residential | 120,077 | 118,830 | 119,877 | 118,830 | |||||||||||||||
Commercial | 18,718 | 18,478 | 18,680 | 18,437 | |||||||||||||||
Industrial | 106 | 106 | 106 | 106 | |||||||||||||||
All Others | 54 | 21 | 55 | 21 | |||||||||||||||
138,955 | 137,435 | 138,718 | 137,394 | ||||||||||||||||
YTD WEATHER AS A PERCENT OF NORMAL: | |||||||||||||||||||
Heating Degree Days | 22 | % | 51 | % | 91 | % | 91 | % | |||||||||||
Cooling Degree Days | 114 | % | 76 | % | 107 | % | 90 | % |