Ex 99.2
VECTREN CORPORATION
AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF INCOME
(Millions, except per share amounts)
(Unaudited)
Three Months
Ended March 31
-------------------
2005 2004
-------------------
OPERATING REVENUES:
Gas utility $ 516.7 $ 505.1
Electric utility 94.7 88.8
Energy services and other 65.8 51.4
-------- --------
Total operating revenues 677.2 645.3
-------- --------
OPERATING EXPENSES:
Cost of gas sold 370.9 365.6
Fuel for electric generation 26.9 22.9
Purchased electric energy 2.3 4.4
Cost of energy services and other 51.6 40.0
Other operating 71.1 71.2
Depreciation and amortization 37.1 32.5
Taxes other than income taxes 22.1 22.7
-------- --------
Total operating expenses 582.0 559.3
-------- --------
OPERATING INCOME 95.2 86.0
OTHER INCOME (EXPENSE):
Equity in earnings of unconsolidated affiliates 6.4 16.9
Other - net 2.4 (3.1)
-------- --------
Total other income 8.8 13.8
-------- --------
INTEREST EXPENSE 20.1 19.3
-------- --------
INCOME BEFORE INCOME TAXES 83.9 80.5
INCOME TAXES 27.8 25.7
-------- --------
NET INCOME $ 56.1 $ 54.8
======== ========
AVERAGE COMMON SHARES OUTSTANDING 75.6 75.5
DILUTED COMMON SHARES OUTSTANDING 76.1 75.8
EARNINGS PER SHARE OF COMMON STOCK
BASIC $ 0.74 $ 0.73
======== ========
DILUTED $ 0.74 $ 0.72
======== ========
VECTREN UTILITY HOLDINGS
AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF INCOME
(Millions, except per share amounts)
(Unaudited)
Three Months
Ended March 31
--------------------
2005 2004
--------------------
OPERATING REVENUES:
Gas utility $ 516.7 $ 505.1
Electric utility 94.7 88.8
Other 0.2 0.3
-------- --------
Total operating revenues 611.6 594.2
-------- --------
OPERATING EXPENSES:
Cost of gas sold 370.9 365.6
Fuel for electric generation 26.9 22.9
Purchased electric energy 2.3 4.4
Other operating 61.6 62.1
Depreciation and amortization 33.4 29.6
Taxes other than income taxes 21.8 22.3
-------- --------
Total operating expenses 516.9 506.9
-------- --------
OPERATING INCOME 94.7 87.3
OTHER INCOME (EXPENSE):
Equity in earnings of unconsolidated affiliates - 0.2
Other - net 2.2 1.9
-------- --------
Total other income 2.2 2.1
-------- --------
INTEREST EXPENSE 16.9 17.0
-------- --------
INCOME BEFORE INCOME TAXES 80.0 72.4
INCOME TAXES 31.9 27.7
-------- --------
NET INCOME $ 48.1 $ 44.7
======== ========
VECTREN CORPORATION
HIGHLIGHTS
(millions, except per share amounts)
(Unaudited)
3 Months
Ended March 31
----------------
2005 2004
----------------
Reported Earnings:
Utility Group $ 48.1 $ 44.7
Non-regulated Group
Energy Marketing and Services 6.0 7.0
Mining 1.3 0.7
Synfuels related 3.1 2.9
------- -------
Total Coal Mining 4.4 3.6
Utility Infrastructure Services (1.0) (0.6)
Other Businesses (0.5) 0.6
------- -------
Total Non-regulated Group 8.9 10.6
Corporate and Other (0.9) (0.5)
------- -------
Vectren Consolidated $ 56.1 $ 54.8
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VECTREN CORPORATION
AND SUBSIDIARY COMPANIES
SELECTED GAS DISTRIBUTION
OPERATING STATISTICS
(Unaudited)
Three Months
Ended March 31
-----------------------
2005 2004
-----------------------
GAS OPERATING REVENUES (Millions):
Residential $ 348.5 $ 343.6
Commercial 146.6 142.0
Industrial 19.0 18.1
Miscellaneous Revenue 2.6 1.4
-------- --------
$ 516.7 $ 505.1
======== ========
GAS MARGIN (Millions):
Residential $ 94.8 $ 91.7
Commercial 32.9 31.5
Industrial 15.6 14.9
Miscellaneous 2.5 1.4
-------- --------
$ 145.8 $ 139.5
======== ========
GAS SOLD & TRANSPORTED (MMDth):
Residential 38.4 41.4
Commercial 16.6 17.7
Industrial 26.8 27.4
-------- --------
81.8 86.5
======== ========
AVERAGE GAS CUSTOMERS
Residential 900,419 891,575
Commercial 84,263 83,220
Industrial 1,616 1,565
-------- --------
986,298 976,360
======== ========
YTD WEATHER AS A PERCENT OF NORMAL:
Heating Degree Days 93% 96%
VECTREN CORPORATION
SELECTED ELECTRIC
OPERATING STATISTICS
(Unaudited)
3 Months
Ended March 31
---------------------------
2005 2004
------ ------
ELECTRIC OPERATING REVENUES (Millions):
Residential $ 28.4 $ 27.3
Commercial 20.3 18.9
Industrial 26.0 24.9
Municipals 5.6 5.4
Miscellaneous Revenue 0.9 3.6
-------- --------
Total Retail 81.2 80.1
Net Wholesale Revenues 13.5 8.7
-------- --------
$ 94.7 $ 88.8
======== ========
ELECTRIC MARGIN (Millions):
Residential $ 22.1 $ 21.2
Commercial 15.0 14.0
Industrial 15.3 14.5
Municipals 3.3 3.1
Miscellaneous 0.8 1.7
-------- --------
Total Retail 56.5 54.5
-------- --------
Net Wholesale Margin 9.0 7.0
-------- --------
$ 65.5 $ 61.5
======== ========
ELECTRICITY SOLD (GWh):
Residential 362.3 376.0
Commercial 303.6 295.6
Industrial 618.9 622.6
Municipals 149.6 152.2
Miscellaneous Sales 4.8 53.3
-------- --------
Total Retail 1,439.2 1,499.7
Wholesale 1,064.0 511.3
-------- --------
2,503.2 2,011.0
======== ========
AVERAGE ELECTRIC CUSTOMERS
Residential 125,641 124,056
Commercial 18,627 17,090
Industrial 106 105
All Others 55 54
-------- --------
144,429 141,305
======== ========
YTD WEATHER AS A PERCENT OF NORMAL:
Heating Degree Days 93% 96%
VECTREN CORPORATION
AND SUBSIDIARY COMPANIES
CONSOLIDATED BALANCE SHEETS
(Millions - Unaudited)
March 31, December 31,
-------------------------
2005 2004
-------------------------
ASSETS
------
Current Assets
Cash & cash equivalents $ 11.0 $ 9.6
Accounts receivable - less reserves of $2.4 &
$2.0, respectively 192.9 173.5
Accrued unbilled revenues 121.4 176.6
Inventories 46.5 67.6
Recoverable fuel & natural gas costs - 17.7
Prepayments & other current assets 49.1 141.3
---------- -----------
Total current assets 420.9 586.3
---------- -----------
Utility Plant
Original cost 3,482.6 3,465.2
Less: accumulated depreciation & amortization 1,321.1 1,309.0
---------- -----------
Net utility plant 2,161.5 2,156.2
---------- -----------
Investments in unconsolidated affiliates 196.1 180.0
Other investments 115.8 115.1
Non-utility property - net 235.9 229.2
Goodwill - net 207.1 207.1
Regulatory assets 79.5 82.5
Other assets 30.5 30.5
---------- -----------
TOTAL ASSETS $ 3,447.3 $ 3,586.9
========== ===========
LIABILITIES & SHAREHOLDERS' EQUITY
----------------------------------
Current Liabilities
Accounts payable $ 56.5 $ 123.8
Accounts payable to affiliated companies 78.3 109.3
Accrued liabilities 214.4 132.1
Short-term borrowings 235.3 412.4
Current maturities of long-term debt 38.5 38.5
Long-term debt subject to tender 10.0 10.0
---------- -----------
Total current liabilities 633.0 826.1
---------- -----------
Long-term Debt - Net of Current Maturities &
Debt Subject to Tender 1,016.2 1,016.6
Deferred Income Taxes & Other Liabilities
Deferred income taxes 240.4 234.0
Regulatory liabilities 256.4 251.7
Deferred credits & other liabilities 166.7 163.2
---------- -----------
Total deferred credits & other liabilities 663.5 648.9
---------- -----------
Minority Interest 0.4 0.4
Cumulative, Redeemable Preferred Stock of a Subsidiary - 0.1
Common Shareholders' Equity
Common stock (no par value) - issued & outstanding
75.9 and 75.6, respectively 527.5 526.8
Retained earnings 616.6 583.0
Accumulated other comprehensive loss (9.9) (15.0)
---------- -----------
Total common shareholders' equity 1,134.2 1,094.8
========== ===========
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY $ 3,447.3 $ 3,586.9
========== ===========
VECTREN CORPORATION
AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Millions - Unaudited)
Three Months Ended March 31,
----------------------------
2005 2004
----------------------------
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $ 56.1 $ 54.8
Adjustments to reconcile net income to cash
from operating activities:
Depreciation & amortization 37.1 32.5
Deferred income taxes & investment tax credits (0.2) (2.3)
Equity in earnings of unconsolidated affiliates (6.4) (16.9)
Net unrealized gain on derivative instruments (2.5) (2.8)
Pension & postretirement periodic benefit cost 4.5 4.3
Other non-cash charges - net 6.0 11.2
Changes in working capital accounts:
Accounts receivable & accrued unbilled revenue 30.2 (5.6)
Inventories 21.1 21.6
Recoverable fuel & natural gas costs 35.4 11.4
Prepayments & other current assets 94.7 107.9
Accounts payable, including to affiliated companies (98.3) (55.3)
Accrued liabilities 67.0 60.6
Changes in noncurrent assets 2.5 (1.0)
Changes in noncurrent liabilities (1.8) (2.8)
------- -------
Net cash flows from operating activities 245.4 217.6
------- -------
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from stock option exercises & other stock plans - 2.3
Requirements for:
Dividends on common stock (22.5) (21.5)
Retirement of long-term debt (0.1) -
Redemption of preferred stock of subsidiary (0.1) (0.1)
Net change in short-term borrowings (177.1) (143.9)
------- -------
Net cash flows from financing activities (199.8) (163.2)
------- -------
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from:
Unconsolidated affiliate distributions 1.4 2.0
Notes receivable & other collections 0.5 0.6
Requirements for:
Capital expenditures, excluding AFUDC equity (43.4) (44.5)
Unconsolidated affiliate investments (2.7) (3.2)
------- -------
Net cash flows from investing activities (44.2) (45.1)
------- -------
Net increase in cash & cash equivalents 1.4 9.3
Cash & cash equivalents at beginning of period 9.6 15.3
------- -------
Cash & cash equivalents at end of period $ 11.0 $ 24.6
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