Exhibit 99-2
Vectren Corporation 3 Months 12 Months
Selected Highlights Ended December 31 Ended December 31
----------------- ------------------
(Unaudited) 2000 ** 1999 2000 ** 1999
- -------------------------- ------- -------- -------- -------
Basic and Diluted Earnings
Per Average Share:
Utility Group $ 0.43 $ 0.31 $ 0.85 $ 1.23
Non-regulated Group
Communications - - 0.07 -
Energy Services 0.01 (0.01) 0.12 0.08
Financial Group 0.05 0.04 0.16 0.09
Other Non-regulated (0.06) 0.02 (0.02) 0.08
------- -------- -------- -------
-
Total Non-regulated - 0.05 0.33 0.25
Total $ 0.43 $ 0.36 $ 1.18 * $ 1.48
------- -------- -------- -------
Total Before Merger
and Integration Costs $ 0.57 $ 0.36 $ 1.78 $ 1.48
Summary of Impact of Merger and
Integration Costs:
(millions, except per share data)
Merger and
Integration Costs $ 9.8 $ - $ 41.1 $ -
Depreciation 4.8 - 11.4 -
Income Taxes (5.6) - (15.7) -
------- -------- -------- -------
-
Total $ 9.0 $ - $ 36.8 $ -
EPS Impact of Merger
and Integration Costs $ 0.14 $ - $ 0.60 $ -
------- -------- -------- -------
Utility Group $ 0.08 $ - $ 0.52 $ -
Non-regulated Group $ 0.06 $ - $ 0.08 $ -
EBITDA (millions)
Utility Group $ 79.9 $ 61.1 $ 215.2 $ 234.8
Non-regulated Group 6.8 5.5 53.9 31.5
------- -------- ------- -------
Total $ 86.7 $ 66.6 $ 269.1 $ 266.3
------- -------- ------- -------
Total Before Merger
and Integration Costs $ 96.5 $ 66.6 $ 310.2 $ 266.3
Dividends Paid (per common
share, 12 months) $ 0.98 $ 0.94
Annualized Dividend $ 1.02 $ 0.95
Dividend Yield (at close) 4.0% N/A
Dividend Payout Ratio 83.1% 63.5%
Dividend to Book Value 8.6% 8.2%
Return on Average
Shareholder Equity 10.0% 13.1%
Book Value Per Share $ 11.91 $ 11.58
Market to Book Value
(at close) 215% N/A
Common Stock Prices
(VVC - NYSE)
High (during fourth
quarter) $ 26.50 N/A
Low (during fourth
quarter) $ 20.00 N/A
Close $ 25.63 N/A
Price/Earnings
Ratio (trailing) 21.7 N/A
Percent Internally
Generated Funds -
Utility Group 77% 82%
Ratio of Earnings to
Fixed Charges - SEC Method
Consolidated 2.8 4.0
Utility Group 2.8 4.1
<FN>
* Diluted earnings per share for the twelve months ended
December 31, 2000 total $1.17.
Basic and diluted earnings per share for all other periods
presented are equal.
** Selected highlights for the three months and twelve months
ended December 31, 2000 include two months of operations
resulting from the acquisition of Dayton Power and Light
Company's natural gas distribution assets on October 31, 2000.
</FN>
VECTREN CORPORATION 3 Months 12 Months
SELECTED UTILITY Ended December 31 Ended December 31
OPERATING STATISTICS ---------------------- ---------------------
(Unaudited) 2000 * 1999 2000 * 1999
--------- --------- --------- ---------
WEATHER AS A PERCENT OF NORMAL:
Heating Degree Days 115% 83% 96% 87%
Cooling Degree Days - - 93% 94%
GAS MARGIN (Thousands):
Operating Revenues 427,267 157,486 818,753 499,573
Cost of Gas 323,167 91,848 552,540 266,429
-------- ------- ------- -------
Margin 104,100 65,638 266,213 233,144
======== ======= ======= =======
ELECTRIC MARGIN (Thousands):
Operating Revenues 87,194 68,609 336,409 307,569
Cost of Fuel &
Purchased Power 31,389 18,523 112,093 92,946
--------- -------- -------- --------
Unconsolidated Margin 55,805 50,086 224,316 214,623
Consolidating
Adjustment 632 1,687 4,529 5,850
-------- -------- -------- --------
Consolidated Margin 56,437 51,773 228,845 220,473
========= ======== ======== ========
GAS SOLD & TRANSPORTED (MDth):
Residential 32,328 16,627 65,726 51,857
Commercial 12,092 6,262 25,950 20,690
Contract 29,161 20,283 89,562 78,164
--------- --------- --------- --------
73,581 43,172 181,238 150,711
========= ========= ========= ========
ELECTRICITY SOLD (MWh):
Residential 315,308 261,649 1,383,163 1,371,580
Commercial 337,439 311,516 1,336,047 1,304,008
Industrial 639,130 621,211 2,491,972 2,415,990
- - - -
Miscellaneous Sales 5,808 5,672 19,232 19,367
--------- --------- --------- ---------
Total Retail 1,297,685 1,200,048 5,230,414 5,110,945
Municipals and Jasper 159,457 159,039 670,195 659,455
Other Wholesale 576,423 240,850 1,624,091 1,170,315
--------- --------- --------- ---------
2,033,565 1,599,937 7,524,700 6,940,715
========= ========= ========= =========
<FN>
* Gas operating statistics for the three months and twelve months
ended December 31, 2000 include two months of operations resulting
from the acquisition of Dayton Power and Light Company's natural gas
distribution assets on October 31, 2000.
</FN>
VECTREN CORPORATION 3 Months 12 Months
SELECTED UTILITY Ended December 31 Ended December 31
OPERATING STATISTICS ------------------ -------------------
(Unaudited) 2000 * 1999 2000 * 1999
------- ------- ------- --------
GAS OPERATING REVENUES (Thousands):
Residential 253,238 107,107 486,916 327,704
Commercial 88,631 35,080 171,386 112,558
Contract 43,669 11,807 78,639 46,840
Miscellaneous Revenue 41,729 3,492 81,812 12,471
------- ------- ------- --------
427,267 157,486 818,753 499,573
======= ======= ======= ========
ELECTRIC OPERATING REVENUES (Thousands):
Residential 21,360 18,147 92,815 90,801
Commercial 19,843 17,021 73,595 69,906
Industrial 22,267 21,184 82,634 79,531
Miscellaneous Revenue 1,574 (43) 8,682 7,142
------- ------- ------- -------
Total Retail 65,044 56,309 257,726 247,380
Municipals and Jasper 5,654 5,787 23,646 23,544
Other Wholesale 16,496 6,513 55,037 36,645
------- ------- ------- -------
87,194 68,609 336,409 307,569
YEAR END GAS CUSTOMERS: ** ======= ======= ======= ========
Residential 861,869 564,620 861,869 564,620
Commercial 79,861 56,617 79,861 56,617
Contract 4,313 1,242 4,313 1,242
------- ------- ------- -------
946,043 622,479 946,043 622,479
======= ======= ======= =======
YEAR END ELECTRIC CUSTOMERS:
Residential 114,946 110,064 114,946 110,064
Commercial 17,207 16,344 17,207 16,344
Industrial 187 197 187 197
------- ------- ------- --------
132,340 126,605 132,340 126,605
======= ======= ======= ========
<FN>
* Gas operating statistics for the three months and twelve months ended
December 31, 2000 include two months of operations resulting from
the acquisition of Dayton Power and Light Company's natural
gas distribution assets on October 31, 2000.
** Year end gas customers include 311,052 actual customers for Vectren
Energy Delivery of Ohio at December 31, 2000
</FN>
VECTREN CORPORATION
AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF INCOME
(Thousands, except for share amounts)
(Unaudited)
Three Months Twelve Months
Ended December 31 Ended December 31
------------------- ----------------------
2000 1999 2000 1999
-------- -------- ---------- ----------
OPERATING REVENUE:
Gas utility $427,267 $157,486 $ 818,753 $ 499,573
Electric utility 87,194 68,609 336,409 307,569
Energy services and
other 193,454 83,087 493,528 261,275
-------- -------- --------- ---------
Total operating
revenues 707,915 309,182 1,648,690 1,068,417
OPERATING EXPENSES:
Cost of gas sold 323,167 91,848 552,540 266,429
Fuel for electric
generation 19,448 14,776 71,170 66,305
Purchased electric
energy 11,309 2,060 36,394 20,791
Cost of energy 1
services and other 87,402 78,989 473,258 247,590
Other operating 56,971 50,535 199,591 189,622
Merger and integration
cost 9,839 - 41,145 -
Depreciation and
amortization 30,653 22,182 105,661 86,998
Taxes other than
income taxes 15,840 8,490 38,010 29,910
-------- -------- --------- ---------
Total operating
expenses 654,629 268,880 1,517,769 907,645
-------- -------- --------- ---------
OPERATING INCOME 53,286 40,302 130,921 160,772
OTHER INCOME
Equity in earnings of
unconsolidated
investments 604 2,166 17,554 11,642
Other - net 2,454 2,245 16,951 8,902
-------- -------- --------- ---------
Total other income 3,058 4,411 34,505 20,544
INTEREST EXPENSE 19,193 12,279 57,133 42,862
-------- -------- ---------- ----------
INCOME BEFORE PREFERRED
DIVIDENDS AND INCOME
TAXES 37,151 32,434 108,293 138,454
PREFERRED DIVIDEND REQUIREMENT
OF SUBSIDIARY 241 269 1,017 1,078
-------- -------- --------- ----------
INCOME BEFORE INCOME
TAXES 36,910 32,165 107,276 137,376
INCOME TAXES 10,705 9,871 34,232 45,708
-------- -------- --------- ---------
NET INCOME BEFORE
MINORITY INTEREST 26,205 22,294 73,044 91,668
MINORITY INTEREST IN
SUBSIDIARY 21 59 1,004 920
-------- -------- ---------- ----------
NET INCOME $ 26,184 $ 22,235 $ 72,040 $ 90,748
======== ======== ========== ==========
AVERAGE COMMON SHARES
OUTSTANDING 61,416 61,304 61,297 61,306
DILUTED COMMON SHARES
OUTSTANDING 61,586 61,387 61,380 61,430
BASIC EARNINGS PER AVERAGE
SHARE OF COMMON STOCK $ 0.43 $ 0.36 $ 1.18 $ 1.48
DILUTED EARNINGS PER AVERAGE
SHARE OF COMMON STOCK $ 0.43 $ 0.36 $ 1.17 $ 1.48
VECTREN CORPORATION
AND SUBSIDIARY COMPANIES
CONSOLIDATED BALANCE SHEETS
(Thousands - Unaudited)
December 31
-----------------------
ASSETS 2000 1999
---------- -----------
Current Assets:
Cash and cash equivalents $ 15,170 $ 17,351
Temporary investments - 903
Accounts receivable, less reserves
of $5,716 and $3,949 295,351 123,612
Accrued unbilled revenues 143,365 55,370
Inventories 95,245 58,863
Prepaid gas delivery service 34,849 20,937
Recoverable fuel costs 96,084 5,585
Prepayments and other current assets 20,998 23,091
--------- ---------
Total current assets 701,062 305,712
--------- ---------
Utility Plant:
Original cost 2,788,794 2,367,831
Less accumulated depreciation and
amortization 1,233,033 1,031,498
--------- ---------
Net utility plant 1,555,761 1,336,333
--------- ---------
Other Investments:
Investments in leveraged leases 93,145 85,737
Investments in partnerships and other
corporations 108,645 74,644
Notes receivable 64,276 32,271
Other 1,057 996
--------- ----------
Total other investments 267,123 193,648
--------- ----------
Nonutility property, net of accumulated
depreciation 103,477 64,474
Other Assets:
Deferred charges 31,094 31,672
Goodwill 197,977 -
Regulatory assets 52,246 47,593
Other 447 1,035
---------- ----------
Total other assets 281,764 80,300
---------- ----------
TOTAL ASSETS $2,909,187 $1,980,467
========== ===========
VECTREN CORPORATION
AND SUBSIDIARY COMPANIES
CONSOLIDATED BALANCE SHEETS
(Thousands - Unaudited)
December 31
----------------------
LIABILITIES AND SHAREHOLDERS' EQUITY 2000 1999
----------- -----------
Current Liabilities:
Current maturities of adjustable rate
bonds subject to tender $ 53,700 $ 53,700
Current maturities of long-term debt
and other obligations 249 776
Short-term borrowings 759,908 207,638
Accounts payable 304,021 95,827
Refunds to customers and customer deposits 22,922 27,396
Accrued taxes 556 26,602
Accrued interest 10,272 12,097
Other current liabilities 70,750 49,467
--------- ----------
Total current liabilities 1,222,378 473,503
---------- ----------
Deferred Credits and Other Liabilities:
Deferred income taxes 229,911 215,520
Accrued postretirement benefits other
than pensions 45,883 40,942
Unamortized investment tax credit 23,165 25,524
Other 5,826 8,297
Total deferred credits and other
liabilities 304,785 290,283
---------- ----------
Minority interest in subsidiary 1,421 916
Capitalization:
Long-term debt and other obligations,
net of current maturities 631,954 486,726
Preferred stock of subsidiary:
Redeemable 8,076 8,192
Nonredeemable 8,889 11,090
Total preferred stock 16,965 19,282
---------- ----------
Common stock (no par value) - issued
and outstanding 61,419,
and 61,305 shares, respectively 217,720 215,917
Retained earnings 506,462 493,918
Accumulated other comprehensive income 7,502 (78)
--------- ----------
Total common shareholders' equity 731,684 709,757
--------- ----------
Total capitalization 1,380,603 1,215,765
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 2,909,187 $ 1,980,467
=========== ===========
VECTREN CORPORATION
AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Thousands - Unaudited)
Twelve Months
Ended December 31
-------------------------
2000 1999
--------- ---------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 72,040 $ 90,748
Adjustments to reconcile net income to
cash provided from operating activities -
Depreciation and amortization 105,661 86,998
Preferred dividend requirement
of subsidiary 1,017 1,078
Deferred income taxes and investment
tax credits 12,032 8,548
(Gain) loss on sale or retirement of
assets or investments (8,961) -
Undistributed earnings of
unconsolidated investments (10,554) (11,642)
--------- ---------
99,195 84,982
Changes in assets and liabilities -
Receivables - net (246,771) (19,978)
Inventories 17,817 7,823
Accounts payable, refunds to
customers, customer deposits,
and other current liabilities 217,122 1,514
Recoverable fuel costs (82,343) 346
Accrued taxes and interest (27,871) 13,585
Prepayments and other current assets 7,553 (7,805)
Prepaid gas delivery service (13,912) (20,937)
Accrued post-retirement benefits
and other than pensions 4,941 3,455
Regulatory Assets (4,653) 1,718
Other - net (2,411) (6,226)
--------- ---------
Total adjustments (31,333) 58,477
--------- ---------
Net cash flows from operating
activities 40,707 149,225
--------- ---------
CASH FLOWS FROM (REQUIRED FOR) FINANCING
ACTIVITIES:
Retirement of common stock 3,978 (1,349)
Retirement of preferred stock (2,317) (116)
Proceeds from long-term debt 178,000 110,000
Retirement of long-term debt and
other obligations (33,299) (67,067)
Net change in short-term borrowings 552,270 81,655
Dividends on common stock (59,977) (57,365)
Other - (3,614)
--------- ---------
Net cash flows from (required for)
financing activities 638,655 62,144
--------- ---------
CASH FLOWS (REQUIRED FOR) INVESTING
ACTIVITIES:
Capital expenditures (164,266) (132,159)
Investment in leveraged leases (850) (49,734)
Investments in partnerships and other
corporations (29,446) (10,711)
Change in notes receivable (32,005) (11,899)
Cash distributions from unconsolidated
investments 7,033 4,550
Acquisition of DPL gas distribution
assets (463,301) -
Other 1,292 (1,456)
--------- --------
Net cash flows (required for)
investing activities (681,543) (201,409)
--------- ---------
NET INCREASE (DECREASE) IN CASH EQUIVALENTS (2,181) 9,960
CASH AND CASH EQUIVALENTS AT BEGINNING OF
PERIOD 17,351 7,391
--------- ---------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 15,170 $ 17,351
========= =========