Ex. 99.2
VECTREN CORPORATION | |||||||||||||
AND SUBSIDIARY COMPANIES | |||||||||||||
CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||
(Millions, except per share amounts) | |||||||||||||
(Unaudited) | |||||||||||||
Three Months | |||||||||||||
Ended March 31, | |||||||||||||
2006 | 2005 | ||||||||||||
OPERATING REVENUES: | |||||||||||||
Gas utility | $ | 572.7 | $ | 516.7 | |||||||||
Electric utility | 105.2 | 94.7 | |||||||||||
Energy services and other | 96.6 | 65.8 | |||||||||||
Total operating revenues | 774.5 | 677.2 | |||||||||||
OPERATING EXPENSES: | |||||||||||||
Cost of gas sold | 429.0 | 370.9 | |||||||||||
Fuel for electric generation | 34.9 | 26.9 | |||||||||||
Purchased electric energy | 3.2 | 2.3 | |||||||||||
Cost of energy services and other | 78.4 | 51.6 | |||||||||||
Other operating | 72.8 | 71.1 | |||||||||||
Depreciation and amortization | 41.6 | 37.1 | |||||||||||
Taxes other than income taxes | 23.1 | 22.1 | |||||||||||
�� Total operating expenses | 683.0 | 582.0 | |||||||||||
OPERATING INCOME | 91.5 | 95.2 | |||||||||||
OTHER INCOME: | |||||||||||||
Equity in earnings of unconsolidated affiliates | 13.7 | 6.4 | |||||||||||
Other - net | 2.1 | 2.4 | |||||||||||
Total other income | 15.8 | 8.8 | |||||||||||
INTEREST EXPENSE | 23.8 | 20.1 | |||||||||||
INCOME BEFORE INCOME TAXES | 83.5 | 83.9 | |||||||||||
INCOME TAXES | 25.9 | 27.8 | |||||||||||
NET INCOME | $ | 57.6 | $ | 56.1 | |||||||||
AVERAGE COMMON SHARES OUTSTANDING | 75.7 | 75.6 | |||||||||||
DILUTED COMMON SHARES OUTSTANDING | 76.1 | 76.1 | |||||||||||
EARNINGS PER SHARE OF COMMON STOCK | |||||||||||||
BASIC | $ | 0.76 | $ | 0.74 | |||||||||
DILUTED | $ | 0.76 | $ | 0.74 |
1
VECTREN UTILITY HOLDINGS | |||||||
AND SUBSIDIARY COMPANIES | |||||||
CONSOLIDATED STATEMENTS OF INCOME | |||||||
(Millions) | |||||||
(Unaudited) | |||||||
Three Months | |||||||
Ended March 31, | |||||||
2006 | 2005 | ||||||
OPERATING REVENUES: | |||||||
Gas utility | $ | 572.7 | $ | 516.7 | |||
Electric utility | 105.2 | 94.7 | |||||
Other | 0.4 | 0.2 | |||||
Total operating revenues | 678.3 | 611.6 | |||||
OPERATING EXPENSES: | |||||||
Cost of gas sold | 429.0 | 370.9 | |||||
Fuel for electric generation | 34.9 | 26.9 | |||||
Purchased electric energy | 3.2 | 2.3 | |||||
Other operating | 61.6 | 61.6 | |||||
Depreciation and amortization | 37.1 | 33.4 | |||||
Taxes other than income taxes | 22.8 | 21.8 | |||||
Total operating expenses | 588.6 | 516.9 | |||||
OPERATING INCOME | 89.7 | 94.7 | |||||
OTHER INCOME - NET | 0.9 | 2.2 | |||||
INTEREST EXPENSE | 20.0 | 16.9 | |||||
INCOME BEFORE INCOME TAXES | 70.6 | 80.0 | |||||
INCOME TAXES | 27.2 | 31.9 | |||||
NET INCOME | $ | 43.4 | $ | 48.1 |
2
VECTREN CORPORATION | |||||||
AND SUBSIDIARY COMPANIES | |||||||
CONSOLIDATED BALANCE SHEETS | |||||||
(Millions - Unaudited) | |||||||
March 31, | December 31, | ||||||
2006 | 2005 | ||||||
ASSETS | |||||||
Current Assets | |||||||
Cash & cash equivalents | $ | 9.6 | $ | 20.4 | |||
Accounts receivable - less reserves of $3.9 & | |||||||
$2.8, respectively | 218.5 | 197.8 | |||||
Accrued unbilled revenues | 124.1 | 240.6 | |||||
Inventories | 81.9 | 144.6 | |||||
Recoverable fuel & natural gas costs | 2.2 | 15.4 | |||||
Prepayments & other current assets | 70.5 | 106.4 | |||||
Total current assets | 506.8 | 725.2 | |||||
Utility Plant | |||||||
Original cost | 3,668.1 | 3,632.0 | |||||
Less: accumulated depreciation & amortization | 1,399.4 | 1,380.1 | |||||
Net utility plant | 2,268.7 | 2,251.9 | |||||
Investments in unconsolidated affiliates | 215.7 | 214.7 | |||||
Other investments | 110.1 | 111.6 | |||||
Non-utility property - net | 240.9 | 240.3 | |||||
Goodwill - net | 207.1 | 207.1 | |||||
Regulatory assets | 93.9 | 89.9 | |||||
Other assets | 26.8 | 27.4 | |||||
TOTAL ASSETS | $ | 3,670.0 | $ | 3,868.1 | |||
LIABILITIlES & SHAREHOLDERS' EQUITY | |||||||
Current Liabilities | |||||||
Accounts payable | $ | 77.6 | $ | 159.0 | |||
Accounts payable to affiliated companies | 70.1 | 162.3 | |||||
Refundable fuel & natural gas costs | 16.2 | 7.6 | |||||
Accrued liabilities | 213.8 | 156.6 | |||||
Short-term borrowings | 162.8 | 299.9 | |||||
Current maturities of long-term debt | 0.4 | 0.4 | |||||
Long-term debt subject to tender | - | 53.7 | |||||
Total current liabilities | 540.9 | 839.5 | |||||
Long-term Debt - Net of Current Maturities & | |||||||
Debt Subject to Tender | 1,251.7 | 1,198.0 | |||||
Deferred Income Taxes & Other Liabilities | |||||||
Deferred income taxes | 230.9 | 227.3 | |||||
Regulatory liabilities | 281.0 | 272.9 | |||||
Deferred credits & other liabilities | 189.6 | 186.7 | |||||
Total deferred credits & other liabilities | 701.5 | 686.9 | |||||
Minority Interest in Subsidiary | 0.4 | 0.4 | |||||
Common Shareholders' Equity | |||||||
Common stock (no par value) – issued & outstanding | |||||||
76.2 and 76.0 shares, respectively | 524.3 | 528.1 | |||||
Retained earnings | 663.2 | 628.8 | |||||
Accumulated other comprehensive loss | (12.0 | ) | (13.6 | ) | |||
Total common shareholders' equity | 1,175.5 | 1,143.3 | |||||
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY | $ | 3,670.0 | $ | 3,868.1 |
3
VECTREN CORPORATION | |||||||
AND SUBSIDIARY COMPANIES | |||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
(Millions - Unaudited) | |||||||
Three Months | |||||||
Ended March 31, | |||||||
2006 | 2005 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||
Net income | $ | 57.6 | $ | 56.1 | |||
Adjustments to reconcile net income to cash from operating activities: | |||||||
Depreciation & amortization | 41.6 | 37.1 | |||||
Deferred income taxes & investment tax credits | 2.1 | (0.2 | ) | ||||
Equity in earnings of unconsolidated affiliates | (13.7 | ) | (6.4 | ) | |||
Provision for uncollectible accounts | 4.7 | 5.6 | |||||
Expense portion of pension & postretirement periodic benefit cost | 2.7 | 3.2 | |||||
Other non-cash charges - net | 0.8 | (3.1 | ) | ||||
Changes in working capital accounts: | |||||||
Accounts receivable & accrued unbilled revenue | 91.9 | 30.2 | |||||
Inventories | 58.9 | 21.1 | |||||
Recoverable fuel & natural gas costs | 21.8 | 35.4 | |||||
Prepayments & other current assets | 30.9 | 94.7 | |||||
Accounts payable, including to affiliated companies | (170.5 | ) | (103.7 | ) | |||
Accrued liabilities | 54.4 | 59.0 | |||||
Unconsolidated affiliate dividends | 23.9 | 1.3 | |||||
Changes in noncurrent assets | (1.4 | ) | 2.5 | ||||
Changes in noncurrent liabilities | 1.0 | (1.8 | ) | ||||
Net cash flows from operating activities | 206.7 | 231.0 | |||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
Requirements for: | |||||||
Dividends on common stock | (23.1 | ) | (22.5 | ) | |||
Retirement of long-term debt, including premiums paid | - | (0.1 | ) | ||||
Redemption of preferred stock of subsidiary | - | (0.1 | ) | ||||
Net change in short-term borrowings | (137.1 | ) | (177.1 | ) | |||
Other financing activities | |||||||
Net cash flows from financing activities | (160.2 | ) | (199.8 | ) | |||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
Proceeds from: | |||||||
Unconsolidated affiliate distributions | - | 0.1 | |||||
Notes receivable & other collections | 0.7 | 0.5 | |||||
Requirements for: | |||||||
Capital expenditures, excluding AFUDC equity | (54.1 | ) | (27.7 | ) | |||
Unconsolidated affiliate investments | (3.6 | ) | (2.7 | ) | |||
Notes receivable & other investments | (0.3 | ) | - | ||||
Net cash flows from investing activities | (57.3 | ) | (29.8 | ) | |||
Net decrease in cash & cash equivalents | (10.8 | ) | 1.4 | ||||
Cash & cash equivalents at beginning of period | 20.4 | 9.6 | |||||
Cash & cash equivalents at end of period | $ | 9.6 | $ | 11.0 |
4
VECTREN CORPORATION | |||||||
AND SUBSIDIARY COMPANIES | |||||||
HIGHLIGHTS | |||||||
(millions, except per share amounts) | |||||||
(Unaudited) | |||||||
Three Months | |||||||
Ended March 31, | |||||||
2006 | 2005 | ||||||
REPORTED EARNINGS: | |||||||
Utility Group | $ | 43.4 | $ | 48.1 | |||
Non-utility Group | |||||||
Energy Marketing and Services | 12.9 | 7.1 | |||||
Mining Operations | 1.8 | 1.3 | |||||
Energy Infrastructure Services | (1.2 | ) | (2.1 | ) | |||
Other Businesses | - | (0.5 | ) | ||||
Total Non-utility Operations | 13.5 | 5.8 | |||||
Corporate and Other | - | (0.9 | ) | ||||
Sub-Total Operations | 56.9 | 53.0 | |||||
Synfuels-related | 0.7 | 3.1 | |||||
Vectren Consolidated | $ | 57.6 | $ | 56.1 |
5
VECTREN CORPORATION | |||||||
AND SUBSIDIARY COMPANIES | |||||||
SELECTED GAS DISTRIBUTION | |||||||
OPERATING STATISTICS | |||||||
(Unaudited) | |||||||
Three Months | |||||||
Ended March 31, | |||||||
2006 | 2005 | ||||||
GAS OPERATING REVENUES (Millions): | |||||||
Residential | $ | 384.6 | $ | 348.5 | |||
Commercial | 162.1 | 146.6 | |||||
Industrial | 22.1 | 19.0 | |||||
Miscellaneous Revenue | 3.9 | 2.6 | |||||
$ | 572.7 | $ | 516.7 | ||||
GAS MARGIN (Millions): | |||||||
Residential | $ | 92.9 | $ | 94.8 | |||
Commercial | 31.8 | 32.9 | |||||
Industrial | 14.9 | 15.6 | |||||
Miscellaneous | 4.1 | 2.5 | |||||
$ | 143.7 | $ | 145.8 | ||||
GAS SOLD & TRANSPORTED (MMDth): | |||||||
Residential | 31.7 | 38.4 | |||||
Commercial | 13.6 | 16.6 | |||||
Industrial | 25.5 | 26.8 | |||||
70.8 | 81.8 | ||||||
AVERAGE GAS CUSTOMERS | |||||||
Residential | 906,047 | 900,419 | |||||
Commercial | 84,466 | 84,303 | |||||
Industrial | 1,656 | 1,576 | |||||
992,169 | 986,298 | ||||||
YTD WEATHER AS A PERCENT OF NORMAL: | |||||||
Heating Degree Days | 84 | % | 93 | % | |||
6
VECTREN CORPORATION | |||||||
AND SUBSIDIARY COMPANIES | |||||||
SELECTED ELECTRIC | |||||||
OPERATING STATISTICS | |||||||
(Unaudited) | |||||||
Three Months | |||||||
Ended March 31 | |||||||
2006 | 2005 | ||||||
ELECTRIC OPERATING REVENUES (Millions): | |||||||
Residential | $ | 30.2 | $ | 28.4 | |||
Commercial | 21.9 | 20.3 | |||||
Industrial | 30.3 | 26.0 | |||||
Municipals | 5.6 | 5.6 | |||||
Miscellaneous Revenue | 2.9 | 0.9 | |||||
Total Retail | 90.9 | 81.2 | |||||
Net Wholesale Revenues | 14.3 | 13.5 | |||||
$ | 105.2 | $ | 94.7 | ||||
ELECTRIC MARGIN (Millions): | |||||||
Residential | $ | 22.5 | $ | 22.1 | |||
Commercial | 15.4 | 15.0 | |||||
Industrial | 16.6 | 15.3 | |||||
Municipals | 2.7 | 3.3 | |||||
Miscellaneous | 2.8 | 0.8 | |||||
Total Retail | 60.0 | 56.5 | |||||
Net Wholesale Margin | 7.1 | 9.0 | |||||
$ | 67.1 | $ | 65.5 | ||||
ELECTRICITY SOLD (GWh): | |||||||
Residential | 355.4 | 362.3 | |||||
Commercial | 301.6 | 303.6 | |||||
Industrial | 637.9 | 618.9 | |||||
Municipals | 145.3 | 149.6 | |||||
Miscellaneous Sales | 5.2 | 4.8 | |||||
Total Retail | 1,445.4 | 1,439.2 | |||||
Wholesale | 462.6 | 1,064.0 | |||||
1,908.0 | 2,503.2 | ||||||
AVERAGE ELECTRIC CUSTOMERS | |||||||
Residential | 120,918 | 119,833 | |||||
Commercial | 18,733 | 18,627 | |||||
Industrial | 107 | 106 | |||||
All Others | 51 | 55 | |||||
139,809 | 138,621 | ||||||
YTD WEATHER AS A PERCENT OF NORMAL: | |||||||
Cooling Degree Days | N/A | N/A | |||||
Heating Degree Days | 84 | % | 93 | % |