Highlights March 31, March 31,
(Unaudited) 1998 1997
Basic and Diluted Earnings Per Average Share:
Three Months Ended $1.03 $1.07
Twelve Months Ended $0.90 $1.71
Twelve Months Ended Before Restructuring $1.98 $1.71
Dividends Paid (per common share, 12 months) $1.17 $1.13
Annualized Dividend $1.18 $1.14
Dividend Yield (at close) 3.8% 4.6%
Dividend Payout Ratio (1) 130.0% 66.1%
Dividend to Book Value (1) 8.3% 7.9%
Return on Average Shareholder Equity (ROE) 6.3% 12.0%
ROE Before Restructuring 13.4% 12.0%
Book Value Per Share (1) $14.22 $14.45
Market to Book Value (1) 217% 170%
Common Stock Prices (IEI - NYSE)
High (12 Month) $34.25 $29.38
Low (12 Month) $23.13 $22.63
Close $30.88 $24.63
Price/Earnings Ratio (1) 34.3 14.4
Percent Internally Generated Funds-Utility(2) 57% 56%
Ratio of Earnings to Fixed Charges
- SEC Method (1) 2.7 4.3
Credit Ratings:
Indiana Gas AA- / Aa2 AA-/Aa3
Indiana Energy A+ / Aa3 n/a
(1) Amounts are after restructuring costs.
(2) Amounts are after cash restructuring costs.
For 3 Months For 6 Months For 12 Months
SELECTED UTILITY Ended March 31 Ended March 31 Ended March 31
OPERATING STATISTICS
(Unaudited) 1998 1997 1998 1997 1998 1997
WEATHER AS A PERCENT OF NORMAL: 77% 93% 87% 96% 93% 98%
MARGIN (Thousands):
Operating Revenues $163,131 $215,695 $333,263 $388,176 $475,494 $541,908
Cost of Gas 94,241 140,345 201,293 250,181 273,634 337,098
Margin $ 68,890 $ 75,350 $131,970 $137,995 $201,860 $204,810
GAS SOLD & TRANSPORTED (MDth):
Residential 18,406 22,088 34,605 37,700 44,410 47,237
Commercial 7,271 8,871 13,868 15,132 17,898 19,086
Contract 16,314 16,746 32,316 32,836 55,659 55,527
41,991 47,705 80,789 85,668 117,967 121,850
OPERATING REVENUES (Thousands):
Residential $109,009 $139,073 $221,735 $243,849 $308,226 $327,839
Commercial 39,241 51,880 80,600 89,980 109,325 118,000
Contract 12,585 22,437 27,605 50,884 52,015 90,060
Miscellaneous Revenue 2,296 2,305 3,323 3,463 5,928 6,009
$163,131 $215,695 $333,263 $388,176 $475,494 $541,908
AVERAGE CUSTOMERS:
Residential 446,478 434,884 443,045 431,151 437,084 424,806
Commercial 46,074 45,588 45,739 45,207 45,299 44,760
Contract 1,063 1,060 1,057 1,072 1,057 1,072
493,615 481,533 489,841 477,430 483,440 470,638
INDIANA ENERGY, INC.
AND SUBSIDIARY COMPANIES
CONSOLIDATED BALANCE SHEETS
ASSETS
(Thousands - Unaudited)
March 31 September 30
1998 1997 1997
CURRENT ASSETS:
Cash and cash equivalents 24,147 18 48
Accounts receivable, less reserves of $2,565,
$3,220 and $1,784 respectively 43,451 45,841 22,318
Accrued unbilled revenues 23,275 25,104 8,964
Materials and supplies - at average cost 222 3,820 63
Liquefied petroleum gas - at average cost 868 860 872
Gas in underground storage - at last-in,
first-out cost 904 467 19,240
Recoverable gas costs - 15,097 5,843
Prepayments and other 4,979 789 3,703
97,846 91,996 61,051
INVESTMENTS IN UNCONSOLIDATED AFFILIATES 30,396 16,510 24,549
UTILITY PLANT:
Original cost 935,390 955,223 951,617
Less - accumulated depreciation and
amortization 366,936 350,362 361,936
568,454 604,861 589,681
NONUTILITY PLANT:
Original cost 48,264 5,743 4,114
Less - accumulated depreciation and
amortization 10,128 2,273 779
38,136 3,470 3,335
DEFERRED CHARGES:
Unamortized debt discount and expense 12,649 7,271 7,074
Other 4,217 7,674 5,155
16,866 14,945 12,229
$ 751,698 $ 731,782 $ 690,845
INDIANA ENERGY, INC.
AND SUBSIDIARY COMPANIES
CONSOLIDATED BALANCE SHEETS
LIABILITIES AND SHAREHOLDERS' EQUITY
(Thousands except shares - Unaudited)
March 31 September 30
1998 1997 1997
CURRENT LIABILITIES:
Maturities and sinking fund requirements of
long-term debt 272 35,272 35,272
Notes payable 80,100 42,300 23,800
Accounts payable 26,957 31,458 25,523
Refundable gas costs 19,282 - -
Customer deposits and advance payments 9,118 5,680 20,405
Accrued taxes 22,104 19,893 8,659
Accrued interest 1,687 2,632 2,629
Other current liabilities 26,769 25,259 31,817
186,289 162,494 148,105
DEFERRED CREDITS AND OTHER LIABILITIES:
Deferred income taxes 56,266 67,977 55,205
Accrued postretirement benefits other than pensions 24,450 16,751 23,038
Unamortized investment tax credit 9,779 10,709 10,243
Regulatory income tax liability 1,874 2,835 1,874
Other 1,971 1,802 1,992
94,340 100,074 92,352
COMMITMENTS AND CONTINGENCIES - - -
CAPITALIZATION:
Long-term debt 149,873 142,882 157,791
Common stock (no par value) - authorized 200,000,000
shares - issued and outstanding 22,594,513,
22,580,998 and 22,580,543 shares, respectively 146,882 146,508 146,498
Less unearned compensation - restricted stock grants 1,596 2,002 1,589
145,286 144,506 144,909
Retained earnings 175,910 181,826 147,688
Total common shareholders' equity 321,196 326,332 292,597
471,069 469,214 450,388
$ 751,698 $ 731,782 $ 690,845
INDIANA ENERGY, INC.
AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF INCOME
(Thousands except per share data)
(Unaudited)
Three Months Six Months
Ended March 31 Ended March 31
1998 1997 1998 1997
OPERATING REVENUES:
Utility $ 163,131 $ 215,695 $ 333,263 $ 388,176
Other 155 - 358 -
163,286 215,695 333,621 388,176
OPERATING EXPENSES:
Cost of gas 92,724 139,964 199,776 249,800
Other operating 19,580 20,578 37,600 39,833
Depreciation and amortization 9,396 8,814 18,302 17,465
Taxes other than income taxes 4,743 5,093 9,656 9,768
126,443 174,449 265,334 316,866
OPERATING INCOME 36,843 41,246 68,287 71,310
OTHER INCOME:
Equity in earnings of unconsolidated
affiliates 3,822 1,739 5,785 3,231
Other - net 476 339 881 572
4,298 2,078 6,666 3,803
INCOME BEFORE INTEREST AND
INCOME TAXES 41,141 43,324 74,953 75,113
INTEREST EXPENSE 4,538 4,534 9,199 8,910
INCOME BEFORE INCOME TAXES 36,603 38,790 65,754 66,203
INCOME TAXES 13,461 14,441 24,256 24,569
NET INCOME $ 23,142 $ 24,349 $ 41,498 $ 41,634
AVERAGE COMMON SHARES OUTSTANDING 22,594 22,580 22,592 22,579
BASIC AND DILUTED EARNINGS PER AVERAGE
SHARE OF COMMON STOCK $ 1.03 $ 1.07 $ 1.84 $ 1.84
INDIANA ENERGY, INC.
AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF INCOME
(Thousands except per share data)
(Unaudited)
Twelve Months
Ended March 31
1998 1997
OPERATING REVENUES:
Utility $ 475,494 $ 541,908
Other 511 -
476,005 541,908
OPERATING EXPENSES:
Cost of gas 272,117 336,775
Other operating 77,780 82,281
Restructuring costs 39,531 -
Depreciation and amortization 35,999 34,403
Taxes other than income taxes 16,886 16,502
442,313 469,961
OPERATING INCOME 33,692 71,947
OTHER INCOME:
Equity in earnings of unconsolidated
affiliates 11,195 4,201
Other - net 3,536 311
14,731 4,512
INCOME BEFORE INTEREST AND
INCOME TAXES 48,423 76,459
INTEREST EXPENSE 17,420 16,918
INCOME BEFORE INCOME TAXES 31,003 59,541
INCOME TAXES 10,636 21,033
NET INCOME $ 20,367 $ 38,508
AVERAGE COMMON SHARES OUTSTANDING 22,587 22,534
BASIC AND DILUTED EARNINGS PER AVERAGE
SHARE OF COMMON STOCK $ 0.90 $ 1.71
INDIANA ENERGY, INC.
AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Thousands - Unaudited)
Six Months Twelve Months
Ended March 31 Ended March 31
1998 1997 1998 1997
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 41,498 $ 41,634 $ 20,367 $ 38,508
Adjustments to reconcile net income to
cash provided from operating activities -
Noncash restructuring costs - - 32,838 -
Depreciation and amortization 18,302 17,505 35,999 34,487
Deferred income taxes 1,061 1,115 (12,672) 1,228
Investment tax credit (465) (465) (930) (930)
Gain on sale of nonutility assets - - (2,923) -
Undistributed earnings of unconsolidated
affiliates (5,785) (3,231) (11,195) (4,201)
13,113 14,924 41,117 30,584
Changes in assets and liabilities -
Receivables - net (35,444) (48,189) 4,219 30,295
Inventories 18,181 39,054 3,153 10,555
Accounts payable, customer deposits,
advance payments and other current
liabilities (14,901) (13,407) 447 (37,418)
Accrued taxes and interest 12,503 15,767 1,266 (6,028)
Recoverable/refundable gas costs 25,125 (12,387) 34,379 (18,660)
Prepayments (1,276) (743) (4,190) 209
Accrued postretirement benefits other
than pensions 1,412 1,847 7,699 3,723
Other - net (4,897) (2,729) (3,034) (1,182)
Total adjustments 13,816 (5,863) 85,056 12,078
Net cash flows from operations 55,314 35,771 105,423 50,586
CASH FLOWS FROM (REQUIRED FOR)
FINANCING ACTIVITIES:
Repurchase of common stock - - - (1,356)
Sale of long-term debt 50,028 32 65,060 65
Reduction in long-term debt (92,946) (213) (93,069) (19,296)
Net change in short-term borrowings 56,300 14,264 37,800 38,500
Dividends on common stock (13,251) (12,780) (26,258) (25,328)
Net cash flows from (required for)
financing activities 131 1,303 (16,467) (7,415)
CASH FLOWS REQUIRED FOR INVESTING ACTIVITIES:
Capital expenditures (32,873) (36,676) (68,104) (79,447)
Nonutility investments - net (3,211) (400) (4,461) (400)
Cash distribution from unconsolidated
affiliate 4,738 - 4,738 -
Proceeds from sale of nonutility assets - - 3,000 -
Net cash flows required for investing
activities (31,346) (37,076) (64,827) (79,847)
NET INCREASE (DECREASE) IN CASH 24,099 (2) 24,129 (36,676)
CASH AND CASH EQUIVALENTS AT BEGINNING OF
PERIOD 48 20 18 36,694
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 24,147 $ 18 $ 24,147 $ 18