EXHIBIT 99.2
VECTREN CORPORATION | ||||||||||||||||
AND SUBSIDIARY COMPANIES | ||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||
(Unaudited - in millions, except per share amounts) | ||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
OPERATING REVENUES: | ||||||||||||||||
Gas Utility | $ | 254.2 | $ | 229.6 | $ | 810.0 | $ | 738.1 | ||||||||
Electric utility | 149.3 | 138.3 | 619.3 | 594.9 | ||||||||||||
Nonutility | 276.5 | 276.2 | 1,061.9 | 899.8 | ||||||||||||
Total operating revenues | 680.0 | 644.1 | 2,491.2 | 2,232.8 | ||||||||||||
OPERATING EXPENSES: | ||||||||||||||||
Cost of gas sold | 122.7 | 104.3 | 358.1 | 301.3 | ||||||||||||
Cost of fuel and purchased power | 48.4 | 47.4 | 202.9 | 192.0 | ||||||||||||
Cost of nonutility revenues | 95.3 | 97.0 | 366.7 | 295.1 | ||||||||||||
Other operating | 239.1 | 223.8 | 891.6 | 781.0 | ||||||||||||
Depreciation and amortization | 72.1 | 65.7 | 277.8 | 254.6 | ||||||||||||
Taxes other than income taxes | 16.8 | 15.1 | 60.5 | 56.3 | ||||||||||||
Total operating expenses | 594.4 | 553.3 | 2,157.6 | 1,880.3 | ||||||||||||
OPERATING INCOME | 85.6 | 90.8 | 333.6 | 352.5 | ||||||||||||
OTHER INCOME (EXPENSE): | ||||||||||||||||
Equity in (losses) of unconsolidated affiliates | (2.1 | ) | (5.5 | ) | (59.7 | ) | (23.3 | ) | ||||||||
Other income - net | 8.7 | 0.5 | 17.7 | 8.3 | ||||||||||||
Total other income (expense) | 6.6 | (5.0 | ) | (42.0 | ) | (15.0 | ) | |||||||||
INTEREST EXPENSE | 21.6 | 24.2 | 87.9 | 96.0 | ||||||||||||
INCOME BEFORE INCOME TAXES | 70.6 | 61.6 | 203.7 | 241.5 | ||||||||||||
INCOME TAXES | 20.8 | 18.8 | 67.1 | 82.5 | ||||||||||||
NET INCOME | $ | 49.8 | $ | 42.8 | $ | 136.6 | $ | 159.0 | ||||||||
AVERAGE COMMON SHARES OUTSTANDING | 82.4 | 82.1 | 82.3 | 82.0 | ||||||||||||
DILUTED COMMON SHARES OUTSTANDING | 82.4 | 82.2 | 82.4 | 82.1 | ||||||||||||
EARNINGS PER SHARE OF COMMON STOCK | ||||||||||||||||
BASIC | $ | 0.60 | $ | 0.52 | $ | 1.66 | $ | 1.94 | ||||||||
DILUTED | $ | 0.60 | $ | 0.52 | $ | 1.66 | $ | 1.94 | ||||||||
EXHIBIT 99.2
VECTREN UTILITY HOLDINGS | ||||||||||||||||
AND SUBSIDIARY COMPANIES | ||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||
(Unaudited - in millions) | ||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
OPERATING REVENUES: | ||||||||||||||||
Gas utility | $ | 254.2 | $ | 229.6 | $ | 810.0 | $ | 738.1 | ||||||||
Electric utility | 149.3 | 138.3 | 619.3 | 594.9 | ||||||||||||
Other | 0.1 | 0.1 | 0.3 | 0.6 | ||||||||||||
Total operating revenues | 403.6 | 368.0 | 1,429.6 | 1,333.6 | ||||||||||||
OPERATING EXPENSES: | ||||||||||||||||
Cost of gas sold | 122.7 | 104.3 | 358.1 | 301.3 | ||||||||||||
Cost of fuel and purchased power | 48.4 | 47.4 | 202.9 | 192.0 | ||||||||||||
Other operating | 96.5 | 80.6 | 333.4 | 310.1 | ||||||||||||
Depreciation and amortization | 49.6 | 47.3 | 196.4 | 190.0 | ||||||||||||
Taxes other than income taxes | 15.9 | 14.4 | 57.2 | 53.4 | ||||||||||||
Total operating expenses | 333.1 | 294.0 | 1,148.0 | 1,046.8 | ||||||||||||
OPERATING INCOME | 70.5 | 74.0 | 281.6 | 286.8 | ||||||||||||
OTHER INCOME - NET | 3.7 | 2.8 | 10.5 | 8.0 | ||||||||||||
INTEREST EXPENSE | 15.8 | 18.0 | 65.0 | 71.5 | ||||||||||||
INCOME BEFORE INCOME TAXES | 58.4 | 58.8 | 227.1 | 223.3 | ||||||||||||
INCOME TAXES | 21.2 | 23.3 | 85.3 | 85.3 | ||||||||||||
NET INCOME | $ | 37.2 | $ | 35.5 | $ | 141.8 | $ | 138.0 | ||||||||
EXHIBIT 99.2
VECTREN CORPORATION | ||||||||
AND SUBSIDIARY COMPANIES | ||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||
(Unaudited - in millions) | ||||||||
As of | ||||||||
December 31, | December 31, | |||||||
2013 | 2012 | |||||||
ASSETS | ||||||||
Current Assets | ||||||||
Cash & cash equivalents | $ | 21.5 | $ | 19.5 | ||||
Accounts receivable - less reserves of $6.8 & | ||||||||
$6.8, respectively | 259.2 | 216.7 | ||||||
Accrued unbilled revenues | 134.2 | 185.0 | ||||||
Inventories | 134.4 | 158.6 | ||||||
Recoverable fuel & natural gas costs | 5.5 | 25.3 | ||||||
Prepayments & other current assets | 75.6 | 73.3 | ||||||
Total current assets | 630.4 | 678.4 | ||||||
Utility Plant | ||||||||
Original cost | 5,389.6 | 5,176.8 | ||||||
Less: accumulated depreciation & amortization | 2,165.3 | 2,057.2 | ||||||
Net utility plant | 3,224.3 | 3,119.6 | ||||||
Investments in unconsolidated affiliates | 24.0 | 78.1 | ||||||
Other utility & corporate investments | 38.1 | 34.6 | ||||||
Other nonutility investments | 33.8 | 24.9 | ||||||
Nonutility plant - net | 657.2 | 598.0 | ||||||
Goodwill - net | 262.3 | 262.3 | ||||||
Regulatory assets | 193.4 | 252.7 | ||||||
Other assets | 39.1 | 40.5 | ||||||
TOTAL ASSETS | $ | 5,102.6 | $ | 5,089.1 | ||||
LIABILITIES & SHAREHOLDERS' EQUITY | ||||||||
Current Liabilities | ||||||||
Accounts payable | $ | 227.2 | $ | 180.6 | ||||
Accounts payable to affiliated companies | — | 29.7 | ||||||
Refundable fuel & natural gas costs | 2.6 | — | ||||||
Accrued liabilities | 182.1 | 198.8 | ||||||
Short-term borrowings | 68.6 | 278.8 | ||||||
Current maturities of long-term debt | 30.0 | 106.4 | ||||||
Total current liabilities | 510.5 | 794.3 | ||||||
Long-term Debt - Net of Current Maturities | 1,777.1 | 1,553.4 | ||||||
Deferred Income Taxes & Other Liabilities | ||||||||
Deferred income taxes | 707.4 | 637.2 | ||||||
Regulatory liabilities | 387.3 | 364.2 | ||||||
Deferred credits & other liabilities | 166.0 | 213.9 | ||||||
Total deferred credits & other liabilities | 1,260.7 | 1,215.3 | ||||||
Common Shareholders' Equity | ||||||||
Common stock (no par value) – issued & outstanding | ||||||||
82.4 and 82.2 shares, respectively | 709.3 | 700.5 | ||||||
Retained earnings | 845.7 | 829.9 | ||||||
Accumulated other comprehensive (loss) | (0.7 | ) | (4.3 | ) | ||||
Total common shareholders' equity | 1,554.3 | 1,526.1 | ||||||
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY | $ | 5,102.6 | $ | 5,089.1 |
EXHIBIT 99.2
VECTREN CORPORATION | ||||||||
AND SUBSIDIARY COMPANIES | ||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
(Millions - Unaudited) | ||||||||
Twelve Months Ended | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
Net income | $ | 136.6 | $ | 159.0 | ||||
Adjustments to reconcile net income to cash from operating activities: | ||||||||
Depreciation & amortization | 277.8 | 254.6 | ||||||
Deferred income taxes & investment tax credits | 43.3 | 84.3 | ||||||
Equity in losses of unconsolidated affiliates | 59.7 | 23.3 | ||||||
Provision for uncollectible accounts | 6.8 | 8.2 | ||||||
Expense portion of pension & postretirement benefit cost | 9.9 | 8.7 | ||||||
Other non-cash charges - net | 5.8 | 9.8 | ||||||
Changes in working capital accounts: | ||||||||
Accounts receivable & accrued unbilled revenues | 1.5 | (67.1 | ) | |||||
Inventories | 24.2 | 3.3 | ||||||
Recoverable/refundable fuel & natural gas costs | 22.4 | (12.9 | ) | |||||
Prepayments & other current assets | 12.8 | (5.1 | ) | |||||
Accounts payable, including to affiliated companies | 6.8 | (14.8 | ) | |||||
Accrued liabilities | (1.2 | ) | 3.4 | |||||
Unconsolidated affiliate dividends | 1.1 | 0.1 | ||||||
Employer contributions to pension & postretirement plans | (13.7 | ) | (20.5 | ) | ||||
Changes in noncurrent assets | (2.1 | ) | (35.3 | ) | ||||
Changes in noncurrent liabilities | (4.7 | ) | (11.6 | ) | ||||
Net cash provided by operating activities | 587.0 | 387.4 | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
Proceeds from: | ||||||||
Long-term debt, net of issuance costs | 481.7 | 199.5 | ||||||
Dividend reinvestment plan & other common stock issuances | 6.9 | 7.2 | ||||||
Requirements for: | ||||||||
Dividends on common stock | (117.3 | ) | (115.3 | ) | ||||
Retirement of long-term debt | (338.9 | ) | (62.7 | ) | ||||
Other financing activities | (2.1 | ) | — | |||||
Net change in short-term borrowings | (210.2 | ) | (48.3 | ) | ||||
Net cash used in financing activities | (179.9 | ) | (19.6 | ) | ||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
Proceeds from: | ||||||||
Unconsolidated affiliate distributions | — | 0.2 | ||||||
Other collections | 5.6 | 9.9 | ||||||
Requirements for: | ||||||||
Capital expenditures, excluding AFUDC equity | (393.4 | ) | (365.8 | ) | ||||
Other Investments | (17.3 | ) | (1.2 | ) | ||||
Net cash used in investing activities | (405.1 | ) | (356.9 | ) | ||||
Net change in cash & cash equivalents | 2.0 | 10.9 | ||||||
Cash & cash equivalents at beginning of period | 19.5 | 8.6 | ||||||
Cash & cash equivalents at end of period | $ | 21.5 | $ | 19.5 |
EXHIBIT 99.2
VECTREN CORPORATION | ||||||||||||||||
AND SUBSIDIARY COMPANIES | ||||||||||||||||
HIGHLIGHTS | ||||||||||||||||
(Unaudited - in millions, except per share amounts) | ||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
REPORTED EARNINGS: | ||||||||||||||||
Utility Group | ||||||||||||||||
Gas Utility Services | $ | 18.5 | $ | 23.9 | $ | 55.7 | $ | 60.0 | ||||||||
Electric Utility Services | 15.7 | 8.6 | 75.8 | 68.0 | ||||||||||||
Other Operations | 3.0 | 3.0 | 10.3 | 10.0 | ||||||||||||
Total Utility Group | 37.2 | 35.5 | 141.8 | 138.0 | ||||||||||||
Nonutility Group | ||||||||||||||||
Infrastructure Services | 13.8 | 13.2 | 49.0 | 40.5 | ||||||||||||
Energy Services | 3.0 | 4.8 | 1.0 | 5.7 | ||||||||||||
Coal Mining | (4.0 | ) | (3.5 | ) | (16.0 | ) | (3.5 | ) | ||||||||
Energy Marketing (ProLiance) (*) | — | (4.1 | ) | — | (17.6 | ) | ||||||||||
Other Businesses | 0.3 | (2.8 | ) | (1.0 | ) | (3.4 | ) | |||||||||
Nonutility Group, excluding ProLiance (*) | 13.1 | 7.6 | 33.0 | 21.7 | ||||||||||||
Corporate and Other | (0.5 | ) | (0.3 | ) | (0.7 | ) | (0.7 | ) | ||||||||
Vectren Consolidated, excluding ProLiance (*) | $ | 49.8 | $ | 42.8 | $ | 174.1 | $ | 159.0 | ||||||||
ProLiance | — | — | (37.5 | ) | — | |||||||||||
Vectren Consolidated | $ | 49.8 | $ | 42.8 | $ | 136.6 | $ | 159.0 | ||||||||
EARNINGS PER SHARE: | ||||||||||||||||
Utility Group | $ | 0.45 | $ | 0.43 | $ | 1.72 | $ | 1.68 | ||||||||
Nonutility Group, excluding ProLiance (*) | 0.16 | 0.14 | 0.41 | 0.47 | ||||||||||||
ProLiance | — | (0.05 | ) | — | (0.21 | ) | ||||||||||
Corporate and Other | (0.01 | ) | — | (0.01 | ) | — | ||||||||||
EPS, excluding ProLiance (*) | $ | 0.60 | $ | 0.52 | $ | 2.12 | $ | 1.94 | ||||||||
ProLiance | — | — | (0.46 | ) | — | |||||||||||
Reported EPS | $ | 0.60 | $ | 0.52 | $ | 1.66 | $ | 1.94 | ||||||||
(*) Excludes ProLiance in 2013 - year of disposition |
EXHIBIT 99.2
VECTREN CORPORATION | ||||||||||||||||
AND SUBSIDIARY COMPANIES | ||||||||||||||||
SELECTED GAS DISTRIBUTION | ||||||||||||||||
OPERATING STATISTICS | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
GAS UTILITY (Millions): | ||||||||||||||||
Residential Margin | $ | 75.7 | $ | 74.7 | $ | 265.9 | $ | 261.9 | ||||||||
Commercial Margin | 22.0 | 21.2 | 75.2 | 72.0 | ||||||||||||
Industrial Margin | 16.1 | 15.4 | 58.0 | 55.2 | ||||||||||||
Other Margin | 2.1 | 2.7 | 9.7 | 9.5 | ||||||||||||
Regulatory Expense Recovery Mechanisms | 15.6 | 11.3 | 43.1 | 38.2 | ||||||||||||
Total Gas Utility Margin | 131.5 | 125.3 | 451.9 | 436.8 | ||||||||||||
Cost of Gas Sold | 122.7 | 104.3 | 358.1 | 301.3 | ||||||||||||
Total Gas Utility Revenue | $ | 254.2 | $ | 229.6 | $ | 810.0 | $ | 738.1 | ||||||||
GAS SOLD & TRANSPORTED (MMDth): | ||||||||||||||||
Residential | 26.5 | 23.2 | 77.1 | 62.5 | ||||||||||||
Commercial | 11.8 | 9.7 | 34.8 | 27.7 | ||||||||||||
Industrial | 31.0 | 28.6 | 111.7 | 105.8 | ||||||||||||
69.3 | 61.5 | 223.6 | 196.0 | |||||||||||||
AVERAGE GAS CUSTOMERS | ||||||||||||||||
Residential | 908,857 | 906,828 | 906,168 | 901,402 | ||||||||||||
Commercial | 84,348 | 83,766 | 84,239 | 83,028 | ||||||||||||
Industrial | 1,674 | 1,671 | 1,675 | 1,664 | ||||||||||||
994,879 | 992,265 | 992,082 | 986,094 | |||||||||||||
YTD WEATHER AS A PERCENT OF NORMAL: | ||||||||||||||||
Heating Degree Days (Ohio) | 103 | % | 96 | % | 103 | % | 88 | % |
EXHIBIT 99.2
VECTREN CORPORATION | ||||||||||||||||
AND SUBSIDIARY COMPANIES | ||||||||||||||||
SELECTED ELECTRIC | ||||||||||||||||
OPERATING STATISTICS | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
ELECTRIC UTILITY (Millions): | ||||||||||||||||
Residential Margin | $ | 34.4 | $ | 30.8 | $ | 150.1 | $ | 151.4 | ||||||||
Commercial Margin | 26.4 | 24.9 | 105.7 | 104.4 | ||||||||||||
Industrial Margin | 26.2 | 24.6 | 108.7 | 108.5 | ||||||||||||
Other Margin | 1.7 | 2.0 | 4.8 | 1.6 | ||||||||||||
Regulatory Expense Recovery Mechanisms | 3.8 | 2.0 | 10.5 | 4.9 | ||||||||||||
Wholesale and Transmission | 8.4 | 6.6 | 36.6 | 32.1 | ||||||||||||
Total Electric Utility Margin | 100.9 | 90.9 | 416.4 | 402.9 | ||||||||||||
Cost of Fuel & Purchased Power | 48.4 | 47.4 | 202.9 | 192.0 | ||||||||||||
Total Electric Utility Revenue | $ | 149.3 | $ | 138.3 | $ | 619.3 | $ | 594.9 | ||||||||
ELECTRICITY SOLD (GWh): | ||||||||||||||||
Residential | 325.7 | 288.7 | 1,425.8 | 1,434.4 | ||||||||||||
Commercial | 324.3 | 304.8 | 1,296.3 | 1,297.3 | ||||||||||||
Industrial | 648.2 | 582.9 | 2,735.2 | 2,710.5 | ||||||||||||
Other Sales - Street Lighting | 6.3 | 6.6 | 21.8 | 22.6 | ||||||||||||
Total Retail | 1,304.5 | 1,183.0 | 5,479.1 | 5,464.8 | ||||||||||||
Wholesale | 182.6 | 152.3 | 514.4 | 336.7 | ||||||||||||
1,487.1 | 1,335.3 | 5,993.5 | 5,801.5 | |||||||||||||
AVERAGE ELECTRIC CUSTOMERS | ||||||||||||||||
Residential | 123,989 | 123,434 | 123,780 | 123,303 | ||||||||||||
Commercial | 18,419 | 18,344 | 18,380 | 18,297 | ||||||||||||
Industrial | 117 | 115 | 116 | 115 | ||||||||||||
Other | 37 | 33 | 36 | 33 | ||||||||||||
142,562 | 141,926 | 142,312 | 141,748 | |||||||||||||
YTD WEATHER AS A PERCENT OF NORMAL: | ||||||||||||||||
Cooling Degree Days (Indiana) | 103 | % | 130 | % | ||||||||||||
Heating Degree Days (Indiana) | 106 | % | 93 | % | 102 | % | 79 | % |