Exhibit 99.1
News Release
Vectren Corporation
P.O. Box 209
Evansville, IN 47702-0209
April 25, 2001
FOR IMMEDIATE RELEASE
Vectren Reports 2001 First Quarter Results
Evansville, Indiana - (NYSE:VVC) Vectren Corporation today
reported 2001 first quarter earnings of $44.4 million or $.68 per
share, compared to net income for the first quarter of 2000 of
$22.1 million or $.36 per share.
Consolidated net income before merger related costs and the
cumulative effect of the change in accounting principle was $43.0
million ($.66 EPS) for the quarter ended March 31, 2001, as
compared to net income before merger related costs of $41.4
million ($.68 EPS) for the same period in 2000.
According to Vectren Chairman and Chief Executive Officer, Niel
C. Ellerbrook, "Vectren had a very strong first quarter
particularly after considering the expenses associated with the
extraordinarily high gas costs experienced throughout this
quarter. Our utility group saw sizable increases in interest
expense and customer service operating costs as the result of gas
costs nearly tripling those of the prior year, however, growth in
our non-regulated group continues with our gas marketers and
other investments having a very strong quarter."
Specific first quarter highlights include:
* Contributions from the non-regulated group before merger costs
were $.14 per share in 2001 compared to $.16 in 2000. Excluding
the one time $. 08 gain recorded in 2000 due to the restructuring
of an investment in SIGECOM, the non-regulated group increased
its contribution by $.06 per share.
* The net of tax impact of merger related costs including the
accelerated depreciation on the information system to be retired
by December 31, 2001 was $2.6 million or $.04 per share in 2001
as compared to $19.3 million or $.32 per share in 2000.
* The cumulative effect of the change in accounting principle
due to the adoption of FAS 133 by the regulated wholesale power
group, requiring mark to market accounting for certain power
contracts was a favorable $3.9 million net of tax adjustment or
$.06 per share.
* Utility operating margins were $179.3 million, a $44.1 million
increase over the same period last year. This was due to
additional gas throughput as a result of the Ohio asset
acquisition, increased gas and electric sales on colder heating
weather and gains recognized from wholesale power marketing with
purchase and sales contracts now reflecting current market values
under FAS 133.
Please SEE ATTACHED unaudited schedules for additional financial
information.
In conjunction with Vectren Corporation's first quarter earnings
release, you are invited to listen in real-time to its conference
call on April 26 at 9:30 a.m. EDT. 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, broadband communication services,
and utility related services including coal production and sales,
underground pipeline construction and repair, facilities locating
and meter reading services, materials management and debt
collections to customers throughout the surrounding region. To
learn more about Vectren, visit www.vectren.com.
NOTE: Net income for the three-month period ended March 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 10-K filed with the Securities and Exchange
Commission on March 30, 2001.
Investor Contact: Steven M. Schein, (812) 491-4209,
sschein@vectren.com
Media Contact: Jeffrey W. Whiteside, (812) 491-4205,
jwhiteside@vectren.com
###
Vectren Corporation 3 Months 12 Months
Selected Highlights Ended March 31 Ended March 31
(Unaudited) 2001 2000 2001 * 2000
-------- ------ ------ ------
Basic and Diluted Earnings Per Average Share:
Utility Group $ 0.54 $ 0.21 $ 1.20 $ 0.85
Non-regulated Group
Energy Services 0.08 0.03 0.16 0.16
Utility Services - 0.01 0.03 0.03
Communications (0.01) 0.08 (0.02) 0.09
Corporate and Other 0.07 0.03 0.14 0.05
------ ------ ------ ------
Total Non-regulated 0.14 0.15 0.31 0.33
Total Earnings Per Average ------ ------ ------ ------
Share ** $ 0.68 $ 0.36 $ 1.51 $ 1.18
------ ------ ------ ------
Merger and Integration Costs 0.04 0.32 0.32 0.32
Cumulative Effect of Change
in Accounting Principle (0.06) - (0.06) -
------- ------- -------- -------
Total Before Merger and
Integration Costs and
Cumulative Effect of Change
in Accounting $ 0.66 $ 0.68 $ 1.77 $ 1.50
------- ------ ------- -------
Summary of Impact of Merger and Integration Costs:
(millions, except per share data)
Merger and Integration
Costs $ 1.0 $ 27.2 $ 14.9 $ 27.2
Depreciation 3.2 - 14.6 -
Income Taxes (1.6) (7.9) (9.4) (7.9)
------- ------- -------- -------
Total $ 2.6 $ 19.3 $ 20.1 $ 19.3
------- ------- ------- -------
EPS Impact of Merger and
Integration Costs $ 0.04 $ 0.32 $ 0.32 $ 0.32
------ ------- -------- -------
Utility Group $ 0.04 $ 0.31 $ 0.32 $ 0.31
Non-regulated Group $ - $ 0.01 $ - $ 0.01
EBITDA (millions)
Utility Group $ .6 $ 45.6 $ 263.9 $ 201.5
Non-regulated Group 20.1 25.8 52.5 41.5
------- ------ ------- -------
Total $118.7 $ 71.4 $ 316.4 $ 243.0
------- ------- ------- --------
Merger and Integration Costs 1.0 27.2 14.9 27.2
Cumulative Effect of Change
in Accounting Principle (6.3) - (6.3) -
------- ------- -------- -------
Total Before Merger and
Integration Costs and
Cumulative Effect of Change
in Accounting $113.4 $ 98.6 $ 325.0 $ 270.2
-------- ------- --------- --------
Dividends Paid (per common
share, 12 months) $ 1.00 $ 0.95
Annualized Dividend $ 1.02 $ 0.97
Dividend Yield (at close) 4.8% N/A
Dividend Payout Ratio 66.2% 80.5%
Dividend to Book Value 7.9% 8.3%
Return on Average
Shareholder Equity 10.9% 10.2%
Book Value Per Share $ 2.92 $ 1.70
Market to Book Value (at
close) 166% N/A
Common Stock Prices (VVC - NYSE)
High (during first
quarter) $ 4.44 N/A
Low (during first quarter) $ 0.50 N/A
Close $21.40 N/A
Price/Earnings Ratio
(trailing) 14.2 N/A
Percent Internally Generated
Funds - Utility Group 95% 60%
Ratio of Earnings to Fixed Charges - SEC Method
Consolidated 2.9 3.3
Utility Group 3.0 3.2
* Selected highlights for the twelve months ended
March 31, 2001 include five months of
operations resulting from the acquisition of the
Ohio operations on October 31, 2000.
** Diluted earnings per share for the three months
ended March 31, 2001, are $0.67. Basic and diluted
earnings per share for all other periods are equal.
VECTREN CORPORATION 3 Months 12 Months
SELECTED UTILITY Ended Ended
March 31 March 31
OPERATING STATISTICS --------------------- -----------------------
(Unaudited) 2001 2000 2001 * 2000
--------- -------- --------- --------
WEATHER AS A PERCENT
OF NORMAL:
Heating Degree Days 99% 86% 103% 82%
Cooling Degree Days 0% 0% 93% 94%
GAS MARGIN
(Thousands):
Operating Revenues 522,889 200,845 1,140,797 509,236
Cost of Gas 404,072 118,527 838,085 281,457
--------- --------- ---------- ---------
Margin 118,817 82,318 302,712 227,779
========== ========== ========== ==========
ELECTRIC MARGIN
(Thousands):
Operating Revenues 88,209 72,990 351,628 309,572
Cost of Fuel &
Purchased Power 27,714 20,050 115,228 88,256
--------- --------- --------- ---------
Margin 60,495 52,940 236,400 221,316
========= ========= ========= ==========
GAS SOLD &
TRANSPORTED (MDth):
Residential 38,060 23,691 80,095 48,923
Commercial 14,508 9,528 30,930 19,938
Contract 30,109 23,325 96,346 79,147
--------- ---------- ---------- ---------
82,677 56,544 207,371 148,008
========= ========= ========= =========
ELECTRICITY SOLD (MWh):
Residential 351,407 316,034 1,418,536 1,341,757
Commercial 301,865 290,617 1,347,295 1,302,755
Industrial 576,290 598,400 2,469,862 2,464,092
Miscellaneous Sales 5,287 5,270 19,249 19,161
Total Retail 1,234,849 1,210,321 5,254,942 5,127,765
Municipals and
Jasper 137,913 157,974 650,134 674,246
Other Wholesale 780,923 381,274 2,023,740 1,196,293
--------- --------- ---------- ---------
2,153,685 1,749,569 7,928,816 6,998,304
========== ========== =========== ==========
* Gas operating statistics for the twelve months ended
March 31, 2001 include five months of operations
resulting from the acquisition of the Ohio operations
on October 31, 2000.
VECTREN CORPORATION 3 Months 12 Months
SELECTED UTILITY Ended Ended
March 31 March 31
OPERATING STATISTICS --------------------- -----------------------
(Unaudited) 2001 2000 2001 * 2000
--------- -------- --------- --------
GAS OPERATING
REVENUES (Thousands):
Residential 351,991 137,341 750,944 334,339
Commercial 126,641 49,967 265,895 116,061
Contract 41,420 11,643 114,673 52,887
Miscellaneous
Revenue 2,837 1,894 9,285 5,949
--------- --------- --------- ---------
522,889 200,845 1,140,797 509,236
========= ========= ========= =========
ELECTRIC OPERATING
REVENUES (Thousands):
Residential 21,892 19,965 96,035 89,573
Commercial 16,449 15,663 75,389 69,462
Industrial 18,453 19,106 83,069 81,159
Miscellaneous
Revenue 1,395 2,160 4,528 7,694
--------- --------- --------- ---------
Total Retail 58,189 56,894 259,021 247,888
Municipals and
Jasper 4,717 5,352 23,011 23,841
Other Wholesale 25,303 10,744 69,596 37,843
--------- --------- --------- ---------
88,209 72,990 351,628 309,572
========= ========= ========= =========
AVERAGE GAS
CUSTOMERS:
Residential 865,040 569,674 856,226 557,435
Commercial 80,274 57,249 79,662 56,281
Contract 3,745 1,257 4,337 1,250
--------- --------- ---------- ---------
949,059 ** 628,180 940,225 ** 614,966
========== ========== ========== ==========
AVERAGE ELECTRIC
CUSTOMERS:
Residential 115,025 110,289 111,288 109,457
Commercial 17,217 16,454 16,716 16,141
Industrial 187 195 180 197
--------- --------- --------- --------
132,429 126,938 128,184 125,795
========== ========== =========== ==========
* Gas operating statistics for the twelve months ended
March 31, 2001, include five months of operations resulting
from the acquisition of the Ohio operations on
October 31, 2000.
** Average gas customers for three months ended and
twelve months ended March 31, 2001, include
312,314 and 311,546 average customers, respectively,
for the Ohio operations.
VECTREN CORPORATION
AND SUBSIDIARY
COMPANIES
CONSOLIDATED
STATEMENTS OF INCOME
(Thousands, except for
share amounts)
(Unaudited)
Three Months Twelve Months
Ended Ended
March 31 March 31
2001 2000 2001 2000
---------- ---------- ---------- ----------
OPERATING REVENUES:
Gas utility $522,889 $200,845 $1,140,797 $ 509,236
Electric utility 88,209 72,990 351,628 309,572
Energy services and
other 271,990 85,609 679,909 288,020
--------- --------- ---------- ---------
Total operating
revenues 883,088 359,444 2,172,334 1,106,828
-------- -------- ---------- ----------
OPERATING EXPENSES:
Cost of gas sold 404,072 118,527 838,085 281,457
Fuel for electric
generation 14,561 16,573 69,158 67,250
Purchased electric
energy 13,153 3,477 46,070 21,006
Cost of energy
services and other 265,204 81,722 656,740 73,142
Other operating 61,432 46,426 214,597 191,215
Merger and
integration costs 962 27,181 14,926 27,181
Depreciation and
amortization 31,471 22,662 114,470 88,435
Taxes other than
income taxes 19,543 8,600 48,953 30,227
--------- --------- ---------- ----------
Total operating
expenses 810,398 325,168 2,002,999 979,913
--------- --------- ---------- ----------
OPERATING INCOME 72,690 34,276 169,335 126,915
OTHER INCOME
Equity in earnings
of unconsolidated
investments 8,083 11,695 13,942 15,003
Other - net 1,450 3,200 15,201 14,350
--------- -------- ---------- ----------
Total other income 9,533 14,895 29,143 29,353
--------- -------- ---------- ----------
INTEREST EXPENSE 22,819 12,273 67,679 44,965
--------- -------- ---------- ----------
INCOME BEFORE
PREFERRED DIVIDENDS
AND INCOME TAXES 59,404 36,898 130,799 111,303
PREFERRED DIVIDEND
REQUIREMENT
OF SUBSIDIARY 238 269 986 1,077
-------- --------- ---------- ----------
INCOME BEFORE INCOME
TAXES 59,166 36,629 129,813 110,226
INCOME TAXES 18,775 14,362 38,645 37,433
--------- --------- ---------- ----------
NET INCOME BEFORE
MINORITY INTEREST 40,391 22,267 91,168 72,793
MINORITY INTEREST IN
SUBSIDIARY (22) 142 840 643
--------- -------- ---------- ----------
NET INCOME BEFORE
CUMULATIVE
EFFECT OF CHANGE IN
ACCOUNTING PRINCIPLE $ 40,413 $ 22,125 $ 90,328 $ 72,150
CUMULATIVE EFFECT OF
CHANGE IN ACCOUNTING
PRINCIPLE-NET OF TAX 3,938 - 3,938 -
--------- --------- ---------- ----------
NET INCOME $ 44,351 $ 22,125 $ 94,266 $ 72,150
========= ========= ========== ==========
AVERAGE COMMON SHARES
OUTSTANDING 65,604 61,299 62,446 61,298
DILUTED COMMON SHARES
OUTSTANDING 65,758 61,407 62,498 61,389
EARNINGS PER SHARE OF
COMMON STOCK BASIC
INCOME FROM
OPERATIONS $ 0.62 $ 0.36 $ 1.45 $ 1.18
CUMULATIVE EFFECT
OF
CHANGE IN ACCOUNTING 0.06 - 0.06 -
PRINCIPLE
-------- --------- -------- ----------
TOTAL EARNINGS PER
SHARE OF COMMON $ 0.68 $ 0.36 $ 1.51 $ 1.18
STOCK
DILUTED
INCOME FROM
OPERATIONS $ 0.61 $ 0.36 $ 1.45 $ 1.18
CUMULATIVE EFFECT OF
CHANGE IN ACCOUNTING
PRINCIPLE 0.06 - 0.06 -
-------- ---------- --------- ----------
TOTAL EARNINGS PER
SHARE OF COMMON $ 0.67 $ 0.36 $ 1.51 $ 1 18
STOCK