Indiana Energy, Inc. and Subsidiary Companies
Highlights September 30, September 30,
(Unaudited) 1998 1997 (2)
Basic and Diluted Earnings Per Average Share (1) :
Three Months Ended -
Indiana Gas and IEI Services ($0.15) ($1.02)
IEI Investments $0.01 $0.10
Total ($0.14) ($0.92)
Twelve Months Ended -
Indiana Gas and IEI Services $1.12 $0.43
IEI Investments $0.21 $0.25
Total $1.33 $0.68
Dividends Paid (per common share, 12 months) $0.90 $0.86
Annualized Dividend (1) $0.93 $0.89
Dividend Yield (at close) 4.0% 4.0%
Dividend Payout Ratio 67.7% 126.4%
Dividend to Book Value 9.2% 9.1%
Return on Average Shareholder Equity 13.4% 7.0%
Book Value Per Share (1) $10.16 $9.72
Market to Book Value 232% 230%
Common Stock Prices (IEI - NYSE) (1)
High (12 Month) $25.69 $22.36
Low (12 Month) $20.34 $16.97
Close $23.53 $22.31
Price/Earnings Ratio 17.7 32.7
Percent Internally Generated Funds - Utility 64% 58%
Ratio of Earnings to Fixed Charges
- SEC Method 4.6 2.7
Credit Ratings:
Indiana Gas AA- / Aa2 AA- / Aa3
Indiana Energy A+ / Aa3 n/a
(1) Adjusted to reflect the four-for-three stock split October 2, 1998.
(2) Reflects the recording of restructuring costs of $39.5 million ($24.5 million after-tax
or $.81 per common share) at Indiana Gas during the fourth quarter of fiscal 1997.
For 3 Months For 12 Months
SELECTED UTILITY Ended September 30 Ended September 30
OPERATING STATISTICS
(Unaudited) 1998 1997 1998 1997
WEATHER AS A PERCENT OF
NORMAL: 22% 86% 86% 100%
MARGIN (Thousands):
Operating Revenues $61,821 $58,498 $465,644 $530,407
Cost of Gas 34,679 32,257 271,004 322,522
Margin $27,142 $26,241 $194,640 $207,885
GAS SOLD & TRANSPORTED
(MDth):
Residential 2,118 2,371 41,628 47,505
Commercial 1,093 1,247 17,099 19,123
Contract 11,766 11,156 56,068 56,218
14,977 14,774 114,795 122,846
OPERATING REVENUES
(Thousands):
Residential $33,247 $30,921 $300,065 $328,158
Commercial 11,635 11,219 107,746 117,600
Contract 15,749 15,166 51,991 78,581
Miscellaneous Revenue 1,190 1,192 5,842 6,068
$61,821 $58,498 $465,644 $530,407
AVERAGE CUSTOMERS:
Residential 439,093 429,573 442,131 431,133
Commercial 45,106 44,539 45,580 45,038
Contract 1,040 1,051 1,060 1,064
485,239 475,163 488,771 477,235
INDIANA ENERGY, INC.
AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF INCOME
(Thousands except per share amounts)
Year Ended September 30
1998 1997 1996
OPERATING REVENUES
Utility $ 465,644 $ 530,407 $ 530,594
Other 790 152 12,832
466,434 530,559 543,426
OPERATING EXPENSES
Cost of gas 269,487 322,141 326,851
Other operating 75,589 80,012 84,984
Restructuring costs - 39,531 -
Depreciation and amortization 37,655 35,162 33,340
Taxes other than income taxes 14,735 16,962 16,564
397,466 493,808 461,739
OPERATING INCOME 68,968 36,751 81,687
OTHER INCOME
Equity in earnings of unconsolidated
affiliates 7,226 8,712 (88)
Other - net 2,499 3,120 606
9,725 11,832 518
INCOME BEFORE INTEREST AND
INCOME TAXES 78,693 48,583 82,205
INTEREST EXPENSE 16,640 17,131 16,279
INCOME BEFORE INCOME TAXES 62,053 31,452 65,926
INCOME TAXES 21,849 10,949 23,725
NET INCOME $ 40,204 $ 20,503 $ 42,201
AVERAGE COMMON SHARES
OUTSTANDING (1) 30,116 30,107 30,017
BASIC AND DILUTED EARNINGS PER AVERAGE
SHARE OF COMMON STOCK (1) $ 1.33 $ 0.68 $ 1.41
(1) Adjusted to reflect the four-for-three stock split October 2, 1998.
INDIANA ENERGY, INC.
AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Thousands)
Year Ended September 30
1998 1997 1996
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 40,204 $ 20,503 $ 42,201
Adjustments to reconcile net income to cash
provided from operating activities -
Noncash restructuring costs - 32,838 -
Depreciation and amortization 37,842 35,241 33,441
Deferred income taxes 1,591 (12,618) 804
Investment tax credit (930) (930) (930)
Gain on sale of assets (2,102) (2,923) -
Undistributed earnings of unconsolidated affiliates (7,226) (8,712) 88
29,175 42,896 33,403
Changes in assets and liabilities -
Receivables - net 13,890 (8,526) (2,558)
Inventories (272) 24,026 19,966
Accounts payable, customer deposits, advance
payments and other current liabilities (12,781) 1,941 (14,801)
Accrued taxes and interest (4,586) 4,530 (3,744)
Recoverable/refundable gas costs 16,573 (3,133) (7,593)
Accrued postretirement benefits other than pensions 2,350 8,134 3,505
Other - net (5,552) (4,491) 340
Total adjustments 38,797 65,377 28,518
Net cash flows from operations 79,001 85,880 70,719
CASH FLOWS REQUIRED FOR FINANCING ACTIVITIES:
Repurchase of common stock (1,189) - (2,116)
Sale of long-term debt 95,053 15,064 21,068
Reduction in long-term debt (94,508) (336) (19,296)
Net change in short-term borrowings 9,905 (4,236) 22,011
Dividends on common stock (26,840) (25,787) (24,896)
Net cash flows required for financing activities (17,579) (15,295) (3,229)
CASH FLOWS REQUIRED FOR INVESTING ACTIVITIES:
Capital expenditures (66,030) (71,907) (66,381)
Nonutility investments in unconsolidated affiliates - net (6,462) (1,650) (1,109)
Cash distribution from unconsolidated affiliate 7,030 - -
Proceeds from sale of assets 13,317 3,000 -
Net cash flows required for investing activities (52,145) (70,557) (67,490)
NET INCREASE (DECREASE) IN CASH 9,277 28 -
CASH AND CASH EQUIVALENTS AT BEGINNING OF
PERIOD 48 20 20
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 9,325 $ 48 $ 20
INDIANA ENERGY, INC.
AND SUBSIDIARY COMPANIES
CONSOLIDATED BALANCE SHEETS
ASSETS
(Thousands)
September 30
1998 1997
CURRENT ASSETS:
Cash and cash equivalents $ 9,325 $ 48
Accounts receivable, less reserves of
$900 and $1,784, respectively 10,939 22,318
Accrued unbilled revenues 6,453 8,964
Liquefied petroleum gas - at average cost 883 872
Gas in underground storage - at last-in,
first-out cost 19,373 19,240
Recoverable gas costs - 5,843
Prepayments and other 5,483 3,766
52,456 61,051
INVESTMENTS IN UNCONSOLIDATED AFFILIATES 32,186 24,549
UTILITY PLANT:
Original cost 937,977 951,617
Less - accumulated depreciation and amortization 370,872 361,936
567,105 589,681
NONUTILITY PLANT:
Original cost 55,225 4,114
Less - accumulated depreciation and amortization 12,613 779
42,612 3,335
DEFERRED CHARGES:
Unamortized debt discount and expense 12,954 7,074
Regulatory income tax asset 1,778 -
Other 3,259 5,155
17,991 12,229
$ 712,350 $ 690,845
INDIANA ENERGY, INC.
AND SUBSIDIARY COMPANIES
CONSOLIDATED BALANCE SHEETS
LIABILITIES AND SHAREHOLDERS' EQUITY
(Thousands except shares)
September 30
1998 1997
CURRENT LIABILITIES:
Maturities and sinking fund requirements of long-term debt $ 10,119 $ 35,272
Notes payable 33,705 23,800
Accounts payable 19,416 25,523
Refundable gas costs 10,730 -
Customer deposits and advance payments 19,229 20,405
Accrued taxes 4,728 8,659
Accrued interest 1,974 2,629
Other current liabilities 26,319 31,817
126,220 148,105
DEFERRED CREDITS AND OTHER LIABILITIES:
Deferred income taxes 60,448 55,205
Accrued postretirement benefits other than pensions 25,388 23,038
Unamortized investment tax credit 9,313 10,243
Regulatory income tax liability - 1,874
Other 2,061 1,992
97,210 92,352
COMMITMENTS AND CONTINGENCIES - -
CAPITALIZATION:
Long-term debt 183,489 157,791
Common stock (no par value) - authorized 200,000,000
shares - issued and outstanding 30,063,667 and
30,107,391 shares, respectively (1) 145,586 146,498
Less unearned compensation - restricted stock grants 1,207 1,589
144,379 144,909
Retained earnings 161,052 147,688
Total common shareholders' equity 305,431 292,597
488,920 450,388
$ 712,350 $ 690,845
(1) Adjusted to reflect the four-for-three stock split October 2, 1998.