Exhibit 99.2
VECTREN CORPORATION | ||||||||||
AND SUBSIDIARY COMPANIES | ||||||||||
CONSOLIDATED STATEMENTS OF INCOME | ||||||||||
(Millions, except per share amounts) | ||||||||||
(Unaudited) | ||||||||||
Three Months | ||||||||||
Ended March 31 | ||||||||||
2007 | 2006 | |||||||||
OPERATING REVENUES: | ||||||||||
Gas utility | $ | 584.1 | $ | 572.7 | ||||||
Electric utility | 108.1 | 105.2 | ||||||||
Nonutility revenues | 141.8 | 96.6 | ||||||||
Total operating revenues | 834.0 | 774.5 | ||||||||
OPERATING EXPENSES: | ||||||||||
Cost of gas sold | 424.5 | 429.0 | ||||||||
Cost of fuel and purchased power | 40.6 | 38.1 | ||||||||
Cost of nonutility revenues | 96.4 | 78.4 | ||||||||
Other operating | 106.5 | 72.8 | ||||||||
Depreciation and amortization | 45.7 | 41.6 | ||||||||
Taxes other than income taxes | 24.7 | 23.1 | ||||||||
Total operating expenses | 738.4 | 683.0 | ||||||||
OPERATING INCOME | 95.6 | 91.5 | ||||||||
OTHER INCOME: | ||||||||||
Equity in earnings of unconsolidated affiliates | 22.2 | 13.7 | ||||||||
Other - net | 7.4 | 2.1 | ||||||||
Total other income | 29.6 | 15.8 | ||||||||
INTEREST EXPENSE | 25.0 | 23.8 | ||||||||
INCOME BEFORE INCOME TAXES | 100.2 | 83.5 | ||||||||
INCOME TAXES | 30.1 | 25.9 | ||||||||
NET INCOME | $ | 70.1 | $ | 57.6 | ||||||
AVERAGE COMMON SHARES OUTSTANDING | 75.8 | 75.7 | ||||||||
DILUTED COMMON SHARES OUTSTANDING | 76.5 | 76.1 | ||||||||
EARNINGS PER SHARE OF COMMON STOCK | ||||||||||
BASIC | $ | 0.92 | $ | 0.76 | ||||||
DILUTED | $ | 0.92 | $ | 0.76 |
VECTREN UTILITY HOLDINGS | ||||||||||
AND SUBSIDIARY COMPANIES | ||||||||||
CONSOLIDATED STATEMENTS OF INCOME | ||||||||||
(Millions) | ||||||||||
(Unaudited) | ||||||||||
Three Months | ||||||||||
Ended March 31 | ||||||||||
2007 | 2006 | |||||||||
OPERATING REVENUES: | ||||||||||
Gas utility | $ | 584.1 | $ | 572.7 | ||||||
Electric utility | 108.1 | 105.2 | ||||||||
Other | 0.4 | 0.4 | ||||||||
Total operating revenues | 692.6 | 678.3 | ||||||||
OPERATING EXPENSES: | ||||||||||
Cost of gas sold | 424.5 | 429.0 | ||||||||
Cost of fuel and purchased power | 40.6 | 38.1 | ||||||||
Other operating | 67.2 | 61.6 | ||||||||
Depreciation and amortization | 39.2 | 37.1 | ||||||||
Taxes other than income taxes | 24.2 | 22.8 | ||||||||
Total operating expenses | 595.7 | 588.6 | ||||||||
OPERATING INCOME | 96.9 | 89.7 | ||||||||
OTHER INCOME - NET | 2.7 | 0.9 | ||||||||
INTEREST EXPENSE | 19.4 | 20.0 | ||||||||
INCOME BEFORE INCOME TAXES | 80.2 | 70.6 | ||||||||
INCOME TAXES | 29.3 | 27.2 | ||||||||
NET INCOME | $ | 50.9 | $ | 43.4 |
VECTREN CORPORATION | |||||||
AND SUBSIDIARY COMPANIES | |||||||
CONSOLIDATED BALANCE SHEETS | |||||||
(Millions - Unaudited) | |||||||
March 31, | December 31, | ||||||
2007 | 2006 | ||||||
ASSETS | |||||||
Current Assets | |||||||
Cash & cash equivalents | $ | 16.9 | $ | 32.8 | |||
Accounts receivable - less reserves of $4.2 & | |||||||
$3.3, respectively | 252.6 | 198.6 | |||||
Accrued unbilled revenues | 98.9 | 146.5 | |||||
Inventories | 79.0 | 163.5 | |||||
Recoverable fuel & natural gas costs | 2.2 | 1.8 | |||||
Prepayments & other current assets | 58.9 | 172.7 | |||||
Total current assets | 508.5 | 715.9 | |||||
Utility Plant | |||||||
Original cost | 3,854.4 | 3,820.2 | |||||
Less: accumulated depreciation & amortization | 1,451.1 | 1,434.7 | |||||
Net utility plant | 2,403.3 | 2,385.5 | |||||
Investments in unconsolidated affiliates | 194.3 | 181.0 | |||||
Other investments | 74.0 | 74.5 | |||||
Nonutility property - net | 301.0 | 294.4 | |||||
Goodwill - net | 238.0 | 237.8 | |||||
Regulatory assets | 158.4 | 163.5 | |||||
Other assets | 39.4 | 39.0 | |||||
TOTAL ASSETS | $ | 3,916.9 | $ | 4,091.6 | |||
LIABILITIES & SHAREHOLDERS' EQUITY | |||||||
Current Liabilities | |||||||
Accounts payable | $ | 104.5 | $ | 180.0 | |||
Accounts payable to affiliated companies | 64.6 | 89.9 | |||||
Refundable fuel & natural gas costs | 41.2 | 35.3 | |||||
Accrued liabilities | 222.6 | 147.2 | |||||
Short-term borrowings | 272.5 | 464.8 | |||||
Current maturities of long-term debt | 24.3 | 24.2 | |||||
Long-term debt subject to tender | 20.0 | 20.0 | |||||
Total current liabilities | 749.7 | 961.4 | |||||
Long-term Debt - Net of Current Maturities & | |||||||
Debt Subject to Tender | 1,208.2 | 1,208.0 | |||||
Deferred Income Taxes & Other Liabilities | |||||||
Deferred income taxes | 234.3 | 260.7 | |||||
Regulatory liabilities | 294.6 | 291.1 | |||||
Deferred credits & other liabilities | 207.1 | 195.8 | |||||
Total deferred credits & other liabilities | 736.0 | 747.6 | |||||
Minority Interest in Subsidiary | 0.4 | 0.4 | |||||
Common Shareholders' Equity | |||||||
Common stock (no par value) – issued & outstanding | |||||||
76.5 and 76.1 shares, respectively | 533.1 | 525.5 | |||||
Retained earnings | 688.0 | 643.6 | |||||
Accumulated other comprehensive income | 1.5 | 5.1 | |||||
Total common shareholders' equity | 1,222.6 | 1,174.2 | |||||
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY | $ | 3,916.9 | $ | 4,091.6 |
VECTREN CORPORATION | ||||||||||
AND SUBSIDIARY COMPANIES | ||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||
(Millions - Unaudited) | ||||||||||
March 31, | ||||||||||
2007 | 2006 | |||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||||
Net income | $ | 70.1 | $ | 57.6 | ||||||
Adjustments to reconcile net income to cash from operating activities: | ||||||||||
Depreciation & amortization | 45.7 | 41.6 | ||||||||
Deferred income taxes & investment tax credits | 1.5 | 2.1 | ||||||||
Equity in earnings of unconsolidated affiliates | (22.2 | ) | (13.7 | ) | ||||||
Provision for uncollectible accounts | 5.4 | 4.7 | ||||||||
Expense portion of pension & postretirement periodic benefit cost | 2.4 | 2.7 | ||||||||
Other non-cash charges - net | 0.2 | 0.8 | ||||||||
Changes in working capital accounts: | ||||||||||
Accounts receivable & accrued unbilled revenue | (11.8 | ) | 91.9 | |||||||
Inventories | 84.5 | 58.9 | ||||||||
Recoverable fuel & natural gas costs | 5.5 | 21.8 | ||||||||
Prepayments & other current assets | 69.5 | 30.9 | ||||||||
Accounts payable, including to affiliated companies | (95.3 | ) | (170.5 | ) | ||||||
Accrued liabilities | 58.0 | 54.4 | ||||||||
Unconsolidated affiliate dividends | 6.8 | 23.9 | ||||||||
Changes in noncurrent assets | 4.3 | (1.4 | ) | |||||||
Changes in noncurrent liabilities | (9.4 | ) | 1.0 | |||||||
Net cash flows from operating activities | 215.2 | 206.7 | ||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||
Proceeds from: | ||||||||||
Long-term debt - net of issuance costs | 0.1 | - | ||||||||
Stock option exercises & other stock plans | 5.8 | - | ||||||||
Requirements for: | ||||||||||
Dividends on common stock | (23.9 | ) | (23.1 | ) | ||||||
Net change in short-term borrowings | (192.3 | ) | (137.1 | ) | ||||||
Net cash flows from financing activities | (210.3 | ) | (160.2 | ) | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||||
Proceeds from: | ||||||||||
Unconsolidated affiliate distributions | 10.7 | - | ||||||||
Other collections | 35.8 | 0.7 | ||||||||
Requirements for: | ||||||||||
Capital expenditures, excluding AFUDC equity | (67.2 | ) | (54.1 | ) | ||||||
Unconsolidated affiliate investments | (0.1 | ) | (3.6 | ) | ||||||
Other investments | - | (0.3 | ) | |||||||
Net cash flows from investing activities | (20.8 | ) | (57.3 | ) | ||||||
Net decrease in cash & cash equivalents | (15.9 | ) | (10.8 | ) | ||||||
Cash & cash equivalents at beginning of period | 32.8 | 20.4 | ||||||||
Cash & cash equivalents at end of period | $ | 16.9 | $ | 9.6 |
VECTREN CORPORATION | ||||||||||
AND SUBSIDIARY COMPANIES | ||||||||||
HIGHLIGHTS | ||||||||||
(millions, except per share amounts) | ||||||||||
(Unaudited) | ||||||||||
Three Months | ||||||||||
Ended March 31 | ||||||||||
2007 | 2006 | |||||||||
REPORTED EARNINGS: | ||||||||||
Utility Group | $ | 50.9 | $ | 43.4 | ||||||
Non-utility Group | ||||||||||
Energy Marketing and Services | 15.7 | 12.9 | ||||||||
Mining Operations | 1.6 | 1.8 | ||||||||
Energy Infrastructure Services | (2.0 | ) | (1.2 | ) | ||||||
Other Businesses | 0.3 | - | ||||||||
Total Non-utility Operations | 15.6 | 13.5 | ||||||||
Corporate and Other | 0.2 | - | ||||||||
Sub-Total Operations | 66.7 | 56.9 | ||||||||
Synfuels-related | 3.4 | 0.7 | ||||||||
Vectren Consolidated | $ | 70.1 | $ | 57.6 |
VECTREN CORPORATION | ||||||||||
AND SUBSIDIARY COMPANIES | ||||||||||
SELECTED GAS DISTRIBUTION | ||||||||||
OPERATING STATISTICS | ||||||||||
(Unaudited) | ||||||||||
Three Months | ||||||||||
Ended March 31 | ||||||||||
2007 | 2006 | |||||||||
GAS OPERATING REVENUES (Millions): | ||||||||||
Residential | $ | 399.8 | $ | 384.6 | ||||||
Commercial | 159.6 | 162.1 | ||||||||
Industrial | 21.3 | 22.1 | ||||||||
Miscellaneous Revenue | 3.4 | 3.9 | ||||||||
$ | 584.1 | $ | 572.7 | |||||||
GAS MARGIN (Millions): | ||||||||||
Residential | $ | 105.1 | $ | 92.9 | ||||||
Commercial | 35.2 | 31.8 | ||||||||
Industrial | 15.7 | 14.9 | ||||||||
Miscellaneous | 3.6 | 4.1 | ||||||||
$ | 159.6 | $ | 143.7 | |||||||
GAS SOLD & TRANSPORTED (MMDth): | ||||||||||
Residential | 38.4 | 31.7 | ||||||||
Commercial | 16.4 | 13.6 | ||||||||
Industrial | 26.4 | 25.5 | ||||||||
81.2 | 70.8 | |||||||||
AVERAGE GAS CUSTOMERS | ||||||||||
Residential | 911,855 | 906,047 | ||||||||
Commercial | 84,827 | 84,466 | ||||||||
Industrial | 1,630 | 1,656 | ||||||||
998,312 | 992,169 | |||||||||
YTD WEATHER AS A PERCENT OF NORMAL: | ||||||||||
Heating Degree Days (Ohio) | 99 | % | 86 | % |
VECTREN CORPORATION | |||||||
AND SUBSIDIARY COMPANIES | |||||||
SELECTED ELECTRIC | |||||||
OPERATING STATISTICS | |||||||
(Unaudited) | |||||||
Three Months | |||||||
Ended March 31 | |||||||
2007 | 2006 | ||||||
ELECTRIC OPERATING REVENUES (Millions): | |||||||
Residential | $ | 33.7 | $ | 30.2 | |||
Commercial | 23.2 | 21.9 | |||||
Industrial | 32.1 | 30.3 | |||||
Municipals | 5.2 | 5.6 | |||||
Miscellaneous Revenue | 3.0 | 2.9 | |||||
Total Retail | 97.2 | 90.9 | |||||
Net Wholesale Revenues | 10.9 | 14.3 | |||||
$ | 108.1 | $ | 105.2 | ||||
ELECTRIC MARGIN (Millions): | |||||||
Residential | $ | 24.1 | $ | 22.5 | |||
Commercial | 15.7 | 15.4 | |||||
Industrial | 16.5 | 16.6 | |||||
Municipals | 2.2 | 2.7 | |||||
Miscellaneous | 2.9 | 2.8 | |||||
Total Retail | 61.4 | 60.0 | |||||
Net Wholesale Margin | 6.1 | 7.1 | |||||
$ | 67.5 | $ | 67.1 | ||||
ELECTRICITY SOLD (GWh): | |||||||
Residential | 390.6 | 355.4 | |||||
Commercial | 307.3 | 301.6 | |||||
Industrial | 627.0 | 637.9 | |||||
Municipals | 130.0 | 145.3 | |||||
Miscellaneous Sales | 5.1 | 5.2 | |||||
Total Retail | 1,460.0 | 1,445.4 | |||||
Wholesale | 260.5 | 462.6 | |||||
1,720.5 | 1,908.0 | ||||||
AVERAGE ELECTRIC CUSTOMERS | |||||||
Residential | 122,063 | 120,918 | |||||
Commercial | 18,899 | 18,733 | |||||
Industrial | 109 | 107 | |||||
All Others | 46 | 51 | |||||
141,117 | 139,809 | ||||||
YTD WEATHER AS A PERCENT OF NORMAL: | |||||||
Cooling Degree Days (Indiana) | N/A | N/A | |||||
Heating Degree Days (Indiana) | 90 | % | 84 | % |