Exhibit 99-1
News Release
Vectren Corporation
P.O. Box 209
Evansville, IN 47702-0209
January 24, 2001
FOR IMMEDIATE RELEASE
Vectren Reports Fiscal 2000 Earnings
Evansville, Indiana - (NYSE:VVC) Vectren Corporation today
reported 2000 fiscal year earnings of $108.8 million or $1.78 per
share before merger and integration related charges, an increase
of 20% over last year.
For the fourth quarter of 2000, Vectren's earnings were $35.2
million or $.57 per share before merger and integration related
charges, compared to the $22.2 million or $.36 per share in 1999.
According to Vectren Chairman and Chief Executive Officer, Niel
C. Ellerbrook, "Vectren had a very strong first year of
operations and we foresee continued growth. With the addition of
the gas distribution business acquired from the former The Dayton
Power and Light Company Light's gas business, our utility group
expanded its customer base. Vectren's utility group, along with
our continued growth of our non-regulated business and our
ability to successfully compete in the wholesale power market,
provides us a substantial foundation to build upon in the coming
year."
Specific Fiscal 2000 Highlights include:
Total customer count of approximately one million was achieved
with the addition of 310,000 customers acquired from The Dayton
Power and Light Company.
Operating revenues for the year increased to $1.6 billion, 54%
above last year, reflecting colder heating weather, the
significant increases in gas costs and the addition of revenues
for November and December from the newly acquired gas
distribution business.
Earnings per share before merger and integration related charges
increased 20% to $1.78. Reported net income and earnings per
share for the current year were $72.0 million and $1.18 per
share, respectively.
Utility operating margin was $495.11 million, a $41.54 million
increase over last year, due to the additional gas throughput as
a result of the Dayton asset acquisition, colder heating weather
and increased wholesale and retail electricity sold.r.
Non-regulated business segments achieved earnings growth, before
merger and integration related charges, of 64% over 1999.
During the fourth quarter of 2000, Vectren expensed merger and
integration related costs of $14.6 million ($9.0 million net of
tax, or $0.14 per share). Merger and integration related costs
expensed during the fiscal year 2000 totaled $52.5 million ($36.8
million net of tax, or $.60 per share). These costs include
increased depreciation related to certain information systems to
be retired in 2001 as a result of the merger. The continued
merger integration activities, which will contribute to the net
merger savings, will be substantially completed during 2001. The
company expects to realize net merger savings of nearly $200
million over ten years.
Mr. Ellerbrook added, "Gas throughput volumes increased over 70%
in the fourth quarter this year as compared to last year,
generating higher operating margins. In additionAt the same
time, per unit gas costs have dramatically increased to over 3
times the levels of last year. This unprecedented circumstance is
the result of conditions in the national natural gas marketplace.
Distributors While a national issue, transporters like our
Company principal utility subsidiaries do not benefit from these
high gas costs and ,under state law we pass instead passing
through gasthese costs on a dollar for dollar basis. Like our
customers, we expect to experience some adverse consequences from
the higher gas costs in 2001, including higher working capital
requirements, increased expenses, including interest costs and
uncollectibles, and possibly some level of price sensitive
reduction in volumes sold."will continue to work with our
customers to find ways to help them manage their usage and to
help mitigate their financial burden."
Specific Fourth Quarter Highlights include:
Operating revenues totaled $707.9 million, 129% above last year,
also reflecting the colder weather, the significant increases in
gas costs and the addition of revenues for November and December
from the newly acquired gas distribution business.
Earnings per share before merger and integration related charges
increased 5358% to $.57. Reported net income and earnings per
share for the current period were $26.2 million and $.43 per
share, respectively.
Utility operating margin was $160.55 million, a $43.11 million
increase over the same period last year., due to the additional
gas throughput as a result of the Dayton asset acquisition and
increased gas and electric sales on colder heating weather.
Non-regulated business segments achieved earnings growth before
merger and integration related costs of 2520% over the fourth
quarter of 1999.
In conjunction with Vectren Corporation's fourth quarter earnings
release, you are invited to listen in real-time to its conference
call on January 25 at 10 a.m. EST. The call will also be
available for replay. A link to the live broadcast and replay
will be available on Vectren's Web site at
http://www.vectren.com.
Vectren Corporation is an energy and applied technology holding
company headquartered in Evansville, Indiana. Vectren's energy
delivery subsidiaries provide gas and/or electricity to nearly
one million customers in adjoining service territories that cover
nearly two-thirds of Indiana and west central Ohio. Vectren's
non-regulated subsidiaries and affiliates currently offer energy-
related products and services, fiber-optic based communication
services, and utility related services including materials
management, debt collections, underground pipeline construction
and repair, underground facilities locating and meter reading
services to customers throughout the surrounding region. To
learn more about Vectren, visit www.vectren.com.
Please SEE ATTACHED unaudited schedules for additional financial
information.
NOTE: Net income for the three-month period ended December 31 is
not indicative of net income for an annual period due to seasonal
sales of gas and electric 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 8-K filed with the Securities and Exchange
Commission on July 11, 2000.
Investor Contact: Steven M. Schein, (812) 491-4209,
sschein@vectren.com
Media Contact: Jeffrey W. Whiteside, (812) 491-4205,
jwhiteside@vectren.com
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