Condensed Consolidated Statements of Income
Three Months Ended Six Months Ended Twelve Months Ended
June 30, June 30, June 30,
------------------------- ---------------------------- ---------------------------
% Change % Change % Change
Fav/ Fav/ Fav/
1999 1998 (Unfav) 1999 1998 (Unfav) 1999 1998 (Unfav)
----- ----- ------- ----- ----- ------- ----- ----- ------
(Millions) (Millions) (Millions)
Operating Revenues
Electric $276.7 $304.5 (9)% $ 531.9 $ 581.1 (8)% $1,175.0 $1,241.6 (5)%
Electric interchange 56.2 112.7 (50) 150.2 209.0 (28) 498.4 304.5 64
Gas 45.2 49.8 (9) 168.3 166.4 1 289.7 296.2 (2)
Diversified enterprises 101.2 80.3 26 177.3 166.2 7 372.5 676.6 (45)
------ ----- ------- ------- -------- --------
Total 479.3 547.3 (12) 1,027.7 1,122.7 (8) 2,335.6 2,518.9 (7)
------ ----- ------- ------- -------- --------
Operating Expenses
Fuel for electric plants 60.0 53.9 (11) 111.4 109.6 (2) 252.0 244.5 (3)
Power purchased 46.7 229.4 80 98.4 326.5 70 507.1 463.0 (10)
Gas purchased for resale 17.0 22.4 24 89.5 88.4 (1) 150.7 173.6 13
Diversified enterprises 114.5 85.0 (35) 196.0 179.7 (9) 408.3 712.8 43
Other operating and maintenance 107.1 122.9 13 258.8 231.7 (12) 565.0 460.7 (23)
Depreciation and amortization 44.9 50.5 11 89.4 101.2 12 191.8 201.7 5
Amortization of regulatory asset 6.2 - (100) 7.7 - (100) 7.7 - (100)
General taxes 22.9 34.3 33 52.8 73.0 28 103.0 135.1 24
Clinton plant impairment loss - - - - - - 2,341.2 - (100)
------ ----- ------- ------- -------- --------
Total 419.3 598.4 30 904.0 1,110.1 19 4,526.8 2,391.4 (89)
------ ----- ------- ------- -------- --------
Operating Income (Loss) 60.0 (51.1) - 123.7 12.6 - (2,191.2) 127.5 -
------ ----- ------- ------- -------- --------
Other Income
Miscellaneous - net 6.3 2.8 125 17.2 1.3 - 19.0 2.6 -
Equity earnings in affiliates 2.9 3.4 (15) 3.4 8.9 (62) 17.0 20.0 (15)
------ ----- ------- ------- -------- --------
Total 9.2 6.2 48 20.6 10.2 102 36.0 22.6 59
------ ----- ------- ------- -------- --------
Income (Loss) Before Interest Charges
and Income Taxes 69.2 (44.9) - 144.3 22.8 - (2,155.2) 150.1 -
------ ----- ------- ------- -------- --------
Interest Charges
Interest expense 46.8 35.9 (30) 89.9 72.5 (24) 163.4 142.5 (15)
Allowance for borrowed funds
used during construction (2.0) (1.2) 67 (3.2) (2.3) 39 (4.1) (4.6) (11)
Preferred dividend requirements
of subsidiary 4.7 5.0 6 9.7 9.9 2 19.6 20.5 4
------ ----- ------- ------- -------- --------
Total 49.5 39.7 (25) 96.4 80.1 (20) 178.9 158.4 (13)
------ ------- ------- ------- -------- --------
Income (Loss) Before Income Taxes 19.7 (84.6) 123 47.9 (57.3) 184 (2,334.1) (8.3) -
------ ----- ------- ------- -------- --------
Income Taxes
Income tax - impairment loss - - - - - - (853.6) - 100
ITC - Clinton impairment - - - - - - (160.4) - 100
Other income taxes 10.7 (37.6) (128) 22.0 (33.3) (166) 13.0 (13.3) (198)
------ ----- ------- ------- -------- --------
Total 10.7 (37.6) (128) 22.0 (33.3) (166) (1,001.0) (13.3) -
------ ----- ------- ------- -------- --------
Net Income (Loss) Before
Extraordinary Item 9.0 (47.0) 119 25.9 (24.0) - (1,333.1) 5.0 -
Extraordinary Item Net of Income Tax
Benefit of $118.0 Million - - - - - - - (195.0) (100)
------ ----- ------- ------- -------- --------
Net Income (Loss) 9.0 (47.0) 119 25.9 (24.0) - (1,333.1) (190.0) -
Carrying amount over (under)
consideration paid for redeemed
preferred stock of subsidiary (0.3) - (100) 0.5 - 100 0.5 0.2 150
------ ----- ------- ------- -------- --------
Net Income (Loss) Applicable
to Common Stock $ 8.7 $(47.0) 119 $ 26.4 $ (24.0) - $(1,332.6) $ (189.8) -
====== ===== ======= ======= ======== ========
Weighted average common shares 69.9 71.7 69.9 71.7 70.8 72.0
Earnings (loss) per common share before
extraordinary item (basic
and diluted) $0.12 ($0.66) $0.38 ($0.34) ($18.82) $0.07
Extraordinary item per common share
(basic and diluted) - - - - - ($2.71)
Earnings (loss) per common share
(basic and diluted) $0.12 ($0.66) $0.38 ($0.34) ($18.82) ($2.64)
Cash dividends declared
per common share $0.31 $0.31 $0.62 $0.62 $1.24 $1.24
Cash dividends paid
per common share $0.31 $0.31 $0.62 $0.62 $1.24 $1.24
These statements are submitted as a matter of general information and are not
intended to induce, or to be used in connection with, any sale or purchase of
securities. These unaudited statements should be read in conjunction with
Illinova's and Illinois Power Company's 1999 Quarterly Reports on Form 10-Q and
Form 8-K filings to the Securities and Exchange Commission, Illinova's 1998
Annual Report to Shareholders (included in the Proxy Statement) and Illinova and
Illinois Power Company's 1998 Form 10-K filings to the Securities and Exchange
Commission.