Exhibit 99-1
News Release
Vectren Corporation
P.O. Box 209
Evansville, IN 47702-0209
April 24, 2002
FOR IMMEDIATE RELEASE
Vectren Corporation
Reports 1st Quarter 2002 Results
Evansville, Indiana - Today, Vectren Corporation (NYSE:VVC) reported 2002 first
quarter earnings of $45.6 million, or $.68 per share, compared to net income of
$44.4 million, or $.68 per share, for the same period a year ago. Earnings for
the first quarter of 2001, before nonrecurring items, were $42.8 million, or
$.66 per share. Weather for the first quarter of 2002 was 10 percent warmer than
the same period last year.
"The results for the first quarter of 2002 were strong considering the warm
weather and that we are just now beginning to emerge from an economic slowdown,"
said Niel C. Ellerbrook, Vectren's Chairman and CEO. "To date we have
experienced only about one half of our heating weather and are just beginning
our cooling season. In addition, our energy marketing and coal mining groups
continue to be strong performers." added Ellerbrook.
Specific highlights for the quarter include:
o Regulated earnings increased 14 percent to $40.6 million from $35.7
million. The warm weather in the first quarter of 2002, compared to the
same quarter last year, impacted earnings unfavorably by approximately $.12
per share. In 2001, the extraordinarily high gas prices had unfavorable
impacts on margins and operating costs, including uncollectible accounts
expense, interest and excise taxes. Any carryover impact into 2002 has been
relatively minor.
o Nonregulated earnings were $5.0 million for the first quarter 2002 as
compared to $7.5 million for the same period last year. The first quarter
of 2001 included a $2.4 million after tax gain as the result of the sale of
an investment in a gathering and processing company.
Please SEE ATTACHED unaudited schedules for additional financial information.
Live Webcast:
In conjunction with this earnings release, you are invited to listen in
real-time to a conference call on April 25 at 10:00 a.m. EDT. A link to the live
webcast and supporting slides will be available on Vectren's website at
www.vectren.com. The call will be available for replay on Vectren's website as
well as at (719) 457-0820, passcode 653812.
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 to customers throughout the surrounding
region. These include gas marketing and related services; coal production and
sales; utility infrastructure services; and broadband communication services. To
learn more about Vectren, visit www.vectren.com.
NOTE: Net income for the three month periods 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.
Safe Harbor for Forward Looking Statements:
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 this news release and subsequent 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 29, 2002.
Investor Contact: Steven M. Schein, (812) 491-4209, sschein@vectren.com
Media Contact: Jeffrey W. Whiteside, (812) 491-4205, jwhiteside@vectren.com
###
VECTREN CORPORATION
AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF INCOME
(Thousands, except for share amounts)
(Unaudited)
Three Months Twelve Months
Ended March 31 Ended March 31
-------------------- ----------------------
2002 2001 2002 2001
--------- --------- ---------- ----------
OPERATING REVENUE:
Gas utility $ 357,104 $ 523,657 $ 864,966 $1,141,565
Electric utility 126,800 88,209 417,458 351,628
Energy services and other 151,288 271,990 638,925 679,790
--------- --------- ---------- ----------
Total operating revenues 635,192 883,856 1,921,349 2,172,983
--------- --------- ---------- ----------
OPERATING EXPENSES:
Cost of gas sold 230,036 404,149 534,111 838,162
Fuel for electric generation 17,790 17,984 74,208 75,482
Purchased electric energy 59,823 13,153 138,336 46,070
Cost of energy services and other 139,352 261,782 597,733 650,296
Other operating 56,578 61,356 232,139 214,363
Merger and integration costs - 962 1,847 14,926
Restructuring costs - - 19,048 -
Depreciation and amortization 29,074 31,471 121,277 114,470
Taxes other than income taxes 18,257 19,543 52,267 48,953
--------- --------- ---------- ----------
Total operating expenses 550,910 810,400 1,770,966 2,002,722
--------- --------- ---------- ----------
OPERATING INCOME 84,282 73,456 150,383 170,261
OTHER INCOME:
Equity in earnings of unconsolidated
affiliates 2,348 5,932 10,520 13,942
Other - net 1,392 2,835 14,814 14,273
--------- --------- ---------- ----------
Total other income 3,740 8,767 25,334 28,215
--------- --------- ---------- ----------
INTEREST EXPENSE 19,844 22,819 79,604 67,678
--------- --------- ---------- ----------
INCOME BEFORE INCOME TAXES 68,178 59,404 96,113 130,798
INCOME TAXES 22,736 18,775 22,577 38,644
MINORITY INTEREST IN SUBSIDIARY (209) (22) 433 840
PREFERRED DIVIDEND REQUIREMENTS OF SUBSIDIARY 7 238 527 986
--------- --------- ---------- ----------
INCOME BEFORE EXTRAORDINARY LOSS AND CUMULATIVE
EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE, NET $ 45,644 $ 40,413 $ 72,576 $ 90,328
EXTRAORDINARY LOSS, NET - - (7,706) -
CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING
PRINCIPLE, NET - 3,938 - 3,938
--------- -------- --------- ----------
NET INCOME $ 45,644 $ 44,351 $ 64,870 $ 94,266
AVERAGE COMMON SHARES OUTSTANDING 67,533 65,604 67,521 62,446
DILUTED COMMON SHARES OUTSTANDING 67,806 65,758 67,658 62,498
EARNINGS PER SHARE OF COMMON STOCK
BASIC:
INCOME BEFORE EXTRAORDINARY LOSS AND CUMULATIVE
EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE, NET $ 0.68 $ 0.62 $ 1.07 $ 1.45
EXTRAORDINARY LOSS, NET - - (0.11) -
CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING
PRINCIPLE, NET - 0.06 - 0.06
--------- --------- --------- ----------
EARNINGS PER SHARE OF COMMON STOCK $ 0.68 $ 0.68 $ 0.96 $ 1.51
DILUTED:
INCOME BEFORE EXTRAORDINARY LOSS AND CUMULATIVE
EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE, NET $ 0.67 $ 0.61 $ 1.07 $ 1.45
EXTRAORDINARY LOSS, NET - - (0.11) -
CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING
PRINCIPLE, NET - 0.06 - 0.06
--------- --------- ---------- ----------
EARNINGS PER SHARE OF COMMON STOCK $ 0.67 $ 0.67 $ 0.96 $ 1.51
VECTREN UTILITY HOLDINGS
AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF INCOME
(Thousands, except for share amounts)
(Unaudited)
Three Months Twelve Months
Ended March 31 Ended March 31
-------------------- ----------------------
2002 2001 2002 2001
--------- --------- ---------- ----------
OPERATING REVENUE:
Gas utility $ 357,105 $ 523,658 $ 864,966 $1,141,565
Electric utility 126,800 88,209 417,458 351,628
--------- --------- ---------- ----------
Total operating revenues 483,905 611,867 1,282,424 1,493,193
--------- --------- ---------- ----------
OPERATING EXPENSES:
Cost of gas sold 230,352 404,149 534,427 838,163
Fuel for electric generation 17,791 17,984 74,208 75,483
Purchased electric energy 59,823 13,153 138,336 46,070
Other operating 55,793 61,470 229,034 224,964
Merger and integration costs - 982 1,813 7,887
Restructuring costs - - 15,010 -
Depreciation and amortization 23,604 24,770 95,720 86,692
Income Taxes 22,299 17,808 27,171 41,896
Taxes other than income taxes 17,923 19,136 50,112 47,182
--------- --------- ---------- ----------
Total operating expenses 427,585 559,452 1,165,831 1,368,337
--------- --------- ---------- ----------
OPERATING INCOME 56,320 52,415 116,593 124,856
OTHER INCOME:
Equity in earnings of unconsolidated
affiliates (575) - (575) -
Other - net 1,725 (959) 7,650 3,198
--------- --------- ---------- ----------
Total other income 1,150 (959) 7,075 3,198
--------- --------- ---------- ----------
INTEREST EXPENSE 16,883 19,483 67,559 55,762
--------- --------- ---------- ----------
PREFERRED DIVIDEND REQUIREMENTS OF SUBSIDIARY 7 238 527 987
--------- --------- ---------- ----------
INCOME BEFORE CUMULATIVE EFFECT OF
CHANGE IN ACCOUNTING PRINCIPLE, NET $ 40,580 $ 31,735 $ 55,582 $ 71,305
CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING
PRINCIPLE, NET - 3,938 - 3,938
--------- --------- ---------- ----------
NET INCOME $ 40,580 $ 35,673 $ 55,582 $ 75,243
AVERAGE COMMON SHARES OUTSTANDING 67,533 65,604 67,521 62,446
DILUTED COMMON SHARES OUTSTANDING 67,806 65,758 67,658 62,498
EARNINGS PER SHARE OF COMMON STOCK
BASIC:
INCOME BEFORE CUMULATIVE EFFECT OF
CHANGE IN ACCOUNTING PRINCIPLE, NET $ 0.60 $ 0.48 $ 0.82 $ 1.14
CUMULATIVE EFFECT OF CHANGE IN
ACCOUNTING PRINCIPLE, NET - 0.06 - 0.06
--------- --------- ---------- ----------
EARNINGS PER SHARE OF COMMON STOCK $ 0.60 $ 0.54 $ 0.82 $ 1.20
DILUTED:
INCOME BEFORE CUMULATIVE EFFECT OF
CHANGE IN ACCOUNTING PRINCIPLE, NET $ 0.60 $ 0.48 $ 0.82 $ 1.14
CUMULATIVE EFFECT OF CHANGE IN
ACCOUNTING PRINCIPLE, NET - 0.06 - 0.06
--------- --------- ---------- ----------
EARNINGS PER SHARE OF COMMON STOCK $ 0.60 $ 0.54 $ 0.82 $ 1.20
VECTREN CORPORATION
HIGHLIGHTS 3 Months 12 Months
Ended March 31 Ended March 31
(millions, except per share amounts) ----------------------------------
(Unaudited) 2002 2001 2002 * 2001
- -----------------------------------------------------------------------------------
Reported Earnings:
Utility Group $ 40.6 $ 35.7 $ 55.5 $ 75.3
Non-regulated Group 5.0 7.5 9.7 21.7
Corporate and Other - 1.2 (0.3) (2.7)
-------- -------- ------ -------
Vectren Consolidated $ 45.6 $ 44.4 $ 64.9 $ 94.3
Merger, Integration and Restructuring Costs:
Utility Group $ - $ 2.3 $ 14.7 $ 15.5
Non-regulated Group - - 2.2 0.2
Corporate and Other - - 0.6 4.1
-------- -------- ------ -------
Total - 2.3 17.5 19.8
Other Non-Recurring Items:
Utility Group-Cumulative Effect of
Adoption of FAS 133 $ - $ 3.9 $ - $ 3.9
Non-regulated Group-Extraordinary
Loss in 2001 - - (7.7) -
-------- -------- ------ ------
Income From Operations:
Utility Group $ 40.6 $ 34.1 $ 70.2 $ 86.9
Non-regulated Group
Energy Marketing and Services 4.4 5.0 11.3 10.1
Coal Mining 2.9 1.9 14.4 5.8
Utility Infrastructure Services (0.5) (0.7) (0.4) (0.5)
Broadband 0.1 (0.1) - (0.7)
Other Businesses (1.9) 1.4 (5.7) 7.2
-------- -------- ------ -------
Total Non-regulated Group 5.0 7.5 19.6 21.9
Corporate and Other - 1.2 0.3 1.4
-------- -------- ------ -------
Vectren Consolidated $ 45.6 $ 42.8 $ 90.1 $110.2
======== ======== ====== =======
Vectren Selected Highlights
12 months 12 months
Ended Ended
March 31 March 31
2002 2001
-------- --------
Dividends Paid (per common share, 12 months) $ 1.04 $ 1.00
Annualized Dividend $ 1.06 $ 1.02
Dividend Yield (at close) 4.1% 4.8%
Dividend Payout Ratio 108.3% 66.2%
Dividend to Book Value 8.2% 7.9%
Return on Average Shareholder Equity 7.4% 11.8%
Book Value Per Share $12.91 $12.92
Market to Book Value (at close) 199% 166%
Common Stock Prices (VVC - NYSE)
High $25.95 $24.44
Low $22.45 $20.50
Close $25.69 $21.40
Price/Earnings Ratio (trailing) 26.8 14.2
Percent Internally Generated Funds -
Utility Group 70% 100%
Ratio of Earnings to Fixed Charges -
SEC Method
Consolidated 2.2 2.9
Utility Group 2.2 3.0
* 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.
SELECTED GAS DISTRIBUTION 3 Months 12 Months
OPERATING STATISTICS Ended March 31 Ended March 31
----------------------- -----------------------
(Unaudited) 2002 2001 2002 * 2001
- ------------------------------ ---------- ---------- ---------- ----------
GAS OPERATING REVENUES (Thousands):
Residential $ 245,136 $ 351,990 $ 571,935 $ 750,943
Commercial 82,063 126,641 200,322 265,895
Contract 28,392 41,487 84,113 114,740
Miscellaneous Revenue 1,513 3,539 8,596 9,987
---------- ---------- ---------- ----------
$ 357,104 $ 523,657 $ 864,966 $1,141,565
========== ========== ========== ==========
GAS MARGIN (Thousands):
Operating Revenues $ 357,104 $ 523,657 $ 864,966 $1,141,565
Cost of Gas 230,036 404,149 534,111 838,162
---------- ---------- ---------- ----------
Margin $ 127,068 $ 119,508 $ 330,855 $ 303,403
========== ========== ========== ==========
GAS SOLD & TRANSPORTED (MDth):
Residential 36,064 37,791 72,347 79,884
Commercial 13,141 14,300 27,319 30,913
Contract 28,692 30,586 95,314 96,574
---------- ---------- ---------- ----------
77,897 82,677 194,980 207,371
========== ========== ========== ==========
AVERAGE GAS CUSTOMERS:
Residential 874,605 865,040 861,180 856,226
Commercial 80,671 80,274 79,767 79,662
Contract 4,275 4,334 4,297 4,337
---------- ---------- ---------- ----------
959,551 949,648 945,244 940,225
========== ========== ========== ==========
WEATHER AS A PERCENT OF NORMAL:
Heating Degree Days 88% 98% 85% 107%
* Gas operating statistics for the twelve months ended March 31, 2001 include
five months of operations from the acquisition of the Ohio operations on
October 31, 2000.
SELECTED ELECTRIC 3 Months 12 Months
OPERATING STATISTICS Ended March 31 Ended March 31
---------------------- ------------------------
(Unaudited) 2002 2001 2002 2001
---------- ---------- ----------- -----------
ELECTRIC OPERATING REVENUES (Thousands):
Residential $ 23,160 $ 21,892 $ 97,763 $ 96,035
Commercial 17,638 16,449 75,396 75,389
Industrial 20,149 18,453 83,719 83,069
Miscellaneous Revenue 933 1,395 4,264 4,528
---------- ---------- ----------- -----------
Total Retail 61,880 58,189 261,142 259,021
---------- ---------- ----------- -----------
Wholesale 64,920 30,020 156,316 92,607
---------- ---------- ----------- -----------
$ 126,800 $ 88,209 $ 417,458 $ 351,628
========== ========== =========== ===========
ELECTRIC MARGIN (Thousands):
Operating Revenues $ 126,800 $ 88,209 $ 417,458 $ 351,628
Cost of Fuel & Purchased
Power 77,613 31,137 212,544 121,552
---------- ---------- ----------- -----------
Margin $ 49,187 $ 57,072 $ 204,914 $ 230,076
========== ========== =========== ===========
ELECTRICITY SOLD (MWh):
Residential 353,239 351,407 1,413,094 1,418,536
Commercial 321,837 301,865 1,403,327 1,347,295
Industrial 580,691 576,290 2,431,157 2,469,862
Miscellaneous Sales 4,807 5,287 18,686 19,249
---------- ---------- ----------- -----------
Total Retail 1,260,574 1,234,849 5,266,264 5,254,942
Wholesale 2,602,604 918,836 5,581,999 2,673,874
---------- ---------- ----------- -----------
3,863,178 2,153,685 10,848,263 7,928,816
========== ========== =========== ===========
AVERAGE ELECTRIC CUSTOMERS:
Residential 115,905 115,025 115,365 113,309
Commercial 17,348 17,217 17,359 17,024
Industrial 175 164 171 177
All Others 23 23 23 23
---------- ---------- ----------- -----------
133,451 132,429 132,918 130,533
========== ========== =========== ===========
WEATHER AS A PERCENT OF NORMAL:
Heating Degree Days 88% 98% 85% 107%
Cooling Degree Days - - 97% 91%