Indiana Energy, Inc. and Subsidiary Companies
Highlights September 30, September 30,
(Unaudited) 1999 1998
Basic and Diluted Earnings Per Average Share:
Three Months Ended -
Indiana Gas $(0.19) $(0.18)
IEI Investments 0.03 0.01
IEI Services / Other 0.03 0.03
Total $(0.13) $(0.14)
Twelve Months Ended -
Indiana Gas $ 1.05 $ 1.03
IEI Investments 0.22 0.21
IEI Services / Other 0.13 0.09
Total $ 1.40 $ 1.33
Dividends Paid (per common share, 12 months) $ 0.94 $ 0.90
Annualized Dividend $ 0.97 $ 0.93
Dividend Yield (at close) 4.8% 4.0%
Dividend Payout Ratio 67.1% 67.7%
Dividend to Book Value 9.3% 9.2%
Return on Average Shareholder Equity 13.6% 13.4%
Book Value Per Share $10.46 $10.16
Market to Book Value 192% 232%
Common Stock Prices (IEI - NYSE)
High (12 Month) $26.38 $25.69
Low (12 Month) $18.06 $20.34
Close $20.06 $23.53
Price/Earnings Ratio 14.3 17.7
Ratio of Earnings to Fixed Charges - SEC Method
Consolidated 4.6 4.6
Utility 4.0 3.9
Percent Internally Generated Funds - Utility 59% 64%
Credit Ratings:
Indiana Gas AA- / Aa2 AA- / Aa2
Indiana Energy A+ / Aa3 A+ / Aa3
For 12 Months
SELECTED UTILITY Ended September 30
OPERATING STATISTICS
(Unaudited) 1999 1998
WEATHER AS A PERCENT OF NORMAL: 87% 86%
MARGIN (Thousands):
Operating Revenues $419,061 $465,644
Cost of Gas 215,691 269,487
Margin $203,370 $196,157
GAS SOLD & TRANSPORTED (MDth):
Residential 42,915 41,628
Commercial 17,150 17,099
Contract 58,000 56,068
118,065 114,795
OPERATING REVENUES (Thousands):
Residential $275,576 $300,065
Commercial 95,483 107,746
Contract 42,957 51,991
Miscellaneous Revenue 5,045 5,842
$419,061 $465,644
AVERAGE CUSTOMERS:
Residential 452,814 442,131
Commercial 46,358 45,580
Contract 1,031 1,060
500,203 488,771
INDIANA ENERGY, INC.
AND SUBSIDIARY COMPANIES
CONSOLIDATED BALANCE SHEETS
ASSETS
(Thousands)
September 30
1999 1998
CURRENT ASSETS:
Cash and cash equivalents $ 20 $ 9,325
Accounts receivable, less reserves of
$733 and $900, respectively 16,895 10,939
Note receivable 300 -
Accrued unbilled revenues 8,136 6,453
Liquefied petroleum gas - at average cost 810 883
Gas in underground storage - at last-in,
first-out cost 9,501 19,373
Prepaid gas delivery service 25,810 -
Prepayments and other 13,179 9,056
74,651 56,029
INVESTMENTS IN UNCONSOLIDATED AFFILIATES 44,315 32,186
UTILITY PLANT:
Original cost 990,780 937,977
Less - accumulated depreciation and amortization 398,912 370,872
591,868 567,105
NONUTILITY PLANT:
Original cost 63,626 55,225
Less - accumulated depreciation and amortization 18,815 12,613
44,811 42,612
DEFERRED CHARGES:
Unamortized debt discount and expense 11,954 12,954
Regulatory income tax asset 2,741 1,778
Other 7,038 4,466
21,733 19,198
$ 777,378 $ 717,130
INDIANA ENERGY, INC.
AND SUBSIDIARY COMPANIES
CONSOLIDATED BALANCE SHEETS
LIABILITIES AND SHAREHOLDERS' EQUITY
(Thousands)
September 30
1999 1998
CURRENT LIABILITIES:
Maturities and sinking fund requirements of long-term debt $ 180 $ 10,119
Notes payable 86,521 33,705
Accounts payable 26,311 19,416
Refundable gas costs 11,192 10,730
Customer deposits and advance payments 14,713 19,229
Accrued taxes 12,860 4,728
Accrued interest 1,182 1,974
Other current liabilities 26,386 29,892
179,345 129,793
DEFERRED CREDITS AND OTHER LIABILITIES:
Deferred income taxes 60,931 60,448
Accrued postretirement benefits other than pensions 28,286 25,388
Unamortized investment tax credit 8,383 9,313
Other 5,625 4,994
103,225 100,143
COMMITMENTS AND CONTINGENCIES - -
CAPITALIZATION:
Long-term debt (see schedule) 183,183 183,489
Common stock (no par value) - authorized 200,000
shares - issued and outstanding 29,787 and 30,064 shares,
respectively 136,760 142,653
Retained earnings 174,865 161,052
Total common shareholders' equity 311,625 303,705
494,808 487,194
$ 777,378 $ 717,130
INDIANA ENERGY, INC.
AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF INCOME
(Thousands)
Year Ended September 30
1999 1998 1997
OPERATING REVENUES
Utility $ 419,061 $ 465,644 $ 530,407
Other 1,402 790 152
420,463 466,434 530,559
OPERATING EXPENSES
Cost of gas 215,691 269,487 322,141
Other operating 78,809 75,589 80,012
Restructuring costs - - 39,531
Depreciation and amortization 40,612 37,655 35,162
Taxes other than income taxes 15,885 14,735 16,962
350,997 397,466 493,808
OPERATING INCOME 69,466 68,968 36,751
OTHER INCOME
Equity in earnings of
unconsolidated affiliates 9,164 7,226 8,712
Other - net 533 2,499 3,120
9,697 9,725 11,832
INCOME BEFORE INTEREST AND
INCOME TAXES 79,163 78,693 48,583
INTEREST EXPENSE 16,657 16,640 17,131
INCOME BEFORE INCOME TAXES 62,506 62,053 31,452
INCOME TAXES 20,755 21,849 10,949
NET INCOME $ 41,751 $ 40,204 $ 20,503
AVERAGE COMMON SHARES
OUTSTANDING 29,848 30,116 30,107
BASIC AND DILUTED EARNINGS PER
AVERAGE SHARE OF COMMON STOCK $ 1.40 $ 1.33 $ 0.68
INDIANA ENERGY, INC.
AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Thousands)
Year Ended September 30
1999 1998 1997
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 41,751 $ 40,204 $ 20,503
Adjustments to reconcile net income to cash
provided from operating activities -
Noncash restructuring costs - - 32,838
Depreciation and amortization 40,700 37,842 35,241
Deferred income taxes (480) 1,591 (12,618)
Investment tax credit (930) (930) (930)
Loss (gain) on sale of assets 730 (2,102) (2,923)
Undistributed earnings of unconsolidated
affiliates (9,164) (7,226) (8,712)
30,856 29,175 42,896
Changes in assets and liabilities -
Receivables - net (7,639) 13,890 (8,526)
Inventories 9,899 (272) 24,026
Accounts payable, customer deposits, advance
payments and other current liabilities (1,427) (12,568) 1,941
Accrued taxes and interest 7,340 (4,586) 4,530
Recoverable/refundable gas costs 462 16,573 (3,133)
Prepaid gas delivery service (25,810) - -
Accrued postretirement benefits other
than pensions 2,898 2,350 8,134
Other - net (3,230) (5,765) (4,491)
Total adjustments 13,349 38,797 65,377
Net cash flows from operations 55,100 79,001 85,880
CASH FLOWS REQUIRED FOR FINANCING ACTIVITIES:
Repurchase of common stock (5,975) (1,189) -
Sale of long-term debt - 95,053 15,064
Reduction in long-term debt (10,245) (94,508) (336)
Net change in short-term borrowings 52,816 9,905 (4,236)
Dividends on common stock (27,905) (26,840) (25,787)
Net cash flows required for financing
activities 8,691 (17,579) (15,295)
CASH FLOWS REQUIRED FOR INVESTING ACTIVITIES:
Capital expenditures (70,745) (66,030) (71,907)
Non- regulated investments in unconsolidated
affiliates (7,272) (6,462) (1,650)
Cash distribution from unconsolidated affiliate 4,921 7,030 -
Proceeds from sale of assets - 13,317 3,000
Net cash flows required for investing
activities (73,096) (52,145) (70,557)
NET INCREASE (DECREASE) IN CASH (9,305) 9,277 28
CASH AND CASH EQUIVALENTS AT BEGINNING OF
PERIOD 9,325 48 20
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 20 $ 9,325 $ 48
October 29, 1999
For Immediate Release
INDIANA ENERGY, INC.
REPORTS CONSOLIDATED EARNINGS;
DIVIDEND UNCHANGED
INDIANAPOLIS--Indiana Energy, Inc., the parent company of Indiana
Gas Company, Inc. and other subsidiaries, reported consolidated net
income of $41.8 million for the fiscal year ended September 30, 1999,
as compared to net income of $40.2 million for fiscal 1998. Earnings
per average common share were $1.40 for fiscal 1999, compared to
$1.33 per share for 1998.
The increase in earnings per share is due in part to higher
utility margin resulting from the addition of new residential and
commercial customers and the lower cost of unaccounted for gas.
However, the results for the year were still significantly impacted
by weather that was 13 percent warmer than normal but approximately
the same as last year. Also contributing was an increase in earnings
from the ongoing operations of the company's non-regulated
investments. The transition to new processes, primarily associated
with the implementation of a new customer and work management
information system, contributed to increased operating expenses this
year, but are expected to create cost savings in future periods.
Depreciation expense increased due to system enhancements and
additions to plant to serve new customers.
"We are very pleased with the relatively strong financial results
produced during a second consecutive year of significantly warmer
than normal weather," said President and Chief Executive Officer,
Niel C. Ellerbrook.
The board of directors of Indiana Energy today also declared a
cash dividend of 24 1/4 cents per share of common stock. This is
unchanged from the previous quarter. The dividend is payable December
1, 1999, to shareholders of record November 12, 1999.
SUMMARY OF CONSOLIDATED EARNINGS DATA:
Three Months Ended
September 30
(In Thousands Except Per Share 1999 1998
Data)
Operating Revenues $59,511 $62,043
Net Income (Loss) $(4,011) $(4,005)
Basic and Diluted Earnings
(Loss) Per Average Common Share $ (.13) $ (.14)
Average Common Shares
Outstanding 29,788 30,094
Twelve Months Ended
September 30
(In Thousands Except Per Share 1999 1998
Data)
Operating Revenues $420,463 $466,434
Net Income $ 41,751 $ 40,204
Basic and Diluted Earnings Per
Average Common Share $ 1.40 $ 1.33
Average Common Shares
Outstanding 29,848 30,116
NOTE: Net income (loss) for the three-month period ended September 30
is not indicative of net income (loss) for an annual period due to the
seasonal sales of gas for space heating purposes.