VECTREN CORPORATION
REPORTS CONSOLIDATED EARNINGS;
DIVIDEND DECLARED
EVANSVILLE -Vectren Corporation (NYSE:VVC), formed on March 31,
2000 from the combination of Indiana Energy, Inc. and SIGCORP,
Inc., today reported financial results for fiscal 2000's first
quarter. Consolidated net income before merger related charges
was $41.4 million ($.68 EPS) for the quarter ended March 31,
2000, as compared to the combined net income of the predecessor
companies of $40.7 million ($.66 EPS) for the same period in
1999. Reported net income and earnings per share for the current
period were $22.1 million and $.36 per share, respectively.
The companies expect to realize net merger savings of nearly $200
million over ten years from the elimination of duplicate
corporate and administrative programs and greater efficiencies in
operations, business processes and purchasing. Merger costs
expensed at March 31 totaled $27.2 million ($19.3 million, net of
tax or $.32 EPS). More than one third ($10.2 million) of the
charge relates to transaction costs. In addition, costs were
incurred related to severance and other merger integration
activities. The continued merger integration activities, which
will contribute to the net merger savings, will be substantially
complete by 2001.
Lower utility margins resulting from weather that was 17 percent
warmer than normal and 10 percent warmer than the prior period
decreased earnings per share by $. 06. The significant weather
impact on utility margin was offset by a $4.9 million after-tax
gain ($.08 EPS) resulting from restructuring of SIGCORP's
investment in SIGECOM, an integrated communications provider.
"Our quarterly results represent a significant step toward
achieving our growth objectives. We have certainly met the
challenges of running our business in exceptionally warm weather
while completing the Vectren merger transaction," said Niel C.
Ellerbrook, Vectren's chairman and chief executive officer.
VECTREN DECLARES FIRST DIVIDEND
Today, the board of directors of Vectren declared a cash dividend
of 24.25 cents per share of common stock. The dividend is
payable June 1, 2000, to shareholders of record as of May 15,
2000.
Vectren, headquartered in Evansville, Indiana through its
regulated subsidiaries Indiana Gas and SIGECO, offers gas and/or
electricity to more than 650,000 customers in adjoining service
areas that cover nearly two-thirds of Indiana. Vectren's non-
regulated subsidiaries currently offer energy-related products
and services, including energy marketing, fiber-optic based
communication services, and utility related services including
materials management, debt collections, locating, meter reading
and trenching services to customers throughout the surrounding
region. In December 1999 (prior to its merger with SIGCORP, Inc.
to form Vectren), Indiana Energy, Inc. announced the planned
acquisition of the natural gas distribution business of Dayton
Power and Light Company. This acquisition is expected to close
later this year and bring Vectren's total customer count to one
million. To learn more about Vectren visit
http://www.vectren.com.
SUMMARY OF CONSOLIDATED EARNINGS DATA:
Three Months Ended
March 31
(In Thousands Except Per Share 2000 1999
Data)
Operating Revenues
$359,444 $321,033
Net Income
22,125 40,723
Net Income Before Merger
Related Charges 41,425 40,723
Basic Earnings Per Average
Common Share $ 0.36 $ 0.66
Diluted Earnings Per Average
Common Share $ 0.36 $ 0.66
Earnings Per Share Before
Merger Related Charges
$ 0.68 $ 0.66
Average Common Shares
Outstanding 61,299 61,301
Twelve Months Ended
March 31
(In Thousands Except Per Share 2000 1999
Data)
Operating Revenues
$1,106,828 $1,010,759
Net Income
72,150 87,755
Net Income Before Merger
Related Charges 91,450 87,755
Basic Earnings Per Average
Common Share $ 1.18 $ 1.43
Diluted Earnings Per Average
Common Share $ 1.18 $ 1.42
Earnings Per Share Before
Merger Related Charges $ 1.50 $ 1.43
Average Common Shares
Outstanding 61,298 61,499
NOTE: Net income (loss) for the three-month period ended March 31
is not indicative of net income (loss) for an annual period due
to seasonal sales of electric and gas for space heating and
cooling purposes.
This press release may contain forward-looking statements.
Vectren wishes to caution readers that actual results could
differ materially from those that will be projected in our
discussions. Additional detailed information concerning a number
of factors that could cause actual results to differ materially
from the information that is provided to you is readily available
in our report Form 8K filed with the Securities and Exchange
Commission on April 26, 2000.
Investor Contact: Steven M. Schein, VP-Investor Relations, 812-
491-4209, sschein@vectren.com
Media Contact: Jeffrey W. Whiteside, VP-Corporate Communications,
812-491-4205, jwhiteside@vectren.com
Vectren Corporation, P.O. Box 209, Evansville, IN 47702-0209