Exhibit 99.1
News Release
Vectren Corporation
P.O. Box 209
Evansville, IN 47702-0209
April 23, 2003
FOR IMMEDIATE RELEASE
Vectren Corporation
Reports 1st Quarter 2003 Increase
Evansville, Indiana - Vectren Corporation (NYSE:VVC) today reported 2003 first
quarter earnings of $55.7 million, or $.82 per share compared to net income of
$45.6 million, or $.68 per share, for the same period last year.
Said Niel C. Ellerbrook, Chairman and CEO, "Fiscal year 2003 is off to a very
good start with higher gas and electric margins due to colder than normal
weather and a strong wholesale power market. Our energy marketing and services
group capitalized on increased demand for gas and volatile gas prices with a
very good first quarter. While we have not seen the economic recovery we had
hoped for, we believe our business plans remain on target and fiscal year 2003
will produce another solid year of performance."
Specific Highlights for the Quarter Include
Utility earnings for the first quarter 2003 were $47.3 million as compared to
$42.0 million in the same period last year.
Gas margins were $144.4 million, an increase of $16.5 million over first quarter
2002. Electric margins were $58.2, an increase of $8.9 million over first
quarter 2002. The increase in margins was due primarily to higher demand
resulting from the colder weather and improved margins in the wholesale power
market. First quarter 2003 weather was 8% colder than normal as compared to
first quarter 2002 that was 12% warmer than normal.
Other operating expenses at Vectren Utility Holdings increased $5.3 million due
primarily to scheduled maintenance costs and increased uncollectible accounts
expense related to higher customer bills resulting from higher gas costs and
colder weather.
Taxes other than income taxes increased $3.7 million principally due to higher
gross receipt taxes as a result of increased sales volumes. These taxes are
recovered through utility customer margins.
Nonregulated earnings for the first quarter 2003 were $8.5 million as compared
to $4.4 million in the same period last year.
Earnings from the Energy Marketing and Services group increased $3.8 million
over the first quarter 2002 principally due to synergies captured as the result
of the recent integration of the company's two gas marketing firms and continued
sales growth.
Affirms 2003 Guidance
Vectren confirmed 2003 earnings guidance in the range of $1.75 to $1.85 per
share, including the potential impact of any permanent financing to be completed
during 2003.
Please SEE ATTACHED unaudited schedules for additional financial information
Live Webcast
Vectren Corporation will provide more detail on 2003 first quarter results on a
conference call for analysts scheduled at 2:30 p.m. EDT (1:30 CDT), Thursday
April 24, 2003. You are invited to listen to the live Webcast and view the
supporting slides by accessing the Investor Relations link on Vectren's Web site
at www.Vectren.com. Interested parties may also view the slide presentation and
listen to the Webcast replay via Vectren's Web site beginning two hours after
the completion of the Webcast. A tape-recorded replay of the call will also be
available through Thursday, May 1, 2003. To access the replay, dial 706-645-9201
and enter the conference identification number 7498394.
About Vectren
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 over 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 services include energy marketing; coal mining; utility
infrastructure services; and broadband communication services. To learn more
about Vectren, visit www.vectren.com.
Safe Harbor for Forward Looking Statements
This document contains forward-looking statements, which are based on
management's beliefs and assumptions that derive from information currently
known by management. Vectren wishes to caution readers that actual results could
differ materially from those contained in this document. 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 17, 2003.
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
---------------------- -------------------------
2003 2002 2003 2002
---------------------- -------------------------
As Restated As Restated
----------- -----------
OPERATING REVENUE:
Gas utility $ 509,531 $ 358,053 $ 1,060,505 $ 851,715
Electric utility 119,376 126,800 600,692 419,330
Energy services and other 33,601 145,519 175,273 563,157
--------- --------- ----------- ----------
Total operating revenues 662,508 630,372 1,836,470 1,834,202
--------- --------- ----------- ----------
OPERATING EXPENSES:
Cost of gas sold 365,116 230,153 706,179 534,911
Fuel for electric generation 20,769 17,791 84,597 74,207
Purchased electric energy 40,398 59,749 276,916 135,868
Cost of energy services and other 25,535 134,783 140,169 522,500
Other operating 62,572 57,577 227,943 239,115
Merger and integration costs - - - 1,846
Restructuring costs - - - 19,048
Depreciation and amortization 31,402 29,026 122,007 121,550
Taxes other than income taxes 22,035 18,332 55,605 52,503
--------- --------- ----------- ----------
Total operating expenses 567,827 547,411 1,613,416 1,701,548
--------- --------- ----------- ----------
OPERATING INCOME 94,681 82,961 223,054 132,654
OTHER INCOME (EXPENSE):
Equity in earnings of
unconsolidated investments 8,806 3,064 14,824 9,761
Other - net (1,148) 2,190 8,184 16,108
--------- --------- ----------- ----------
Total other income 7,658 5,254 23,008 25,869
--------- --------- ----------- ----------
INTEREST EXPENSE 18,876 19,844 77,513 80,156
--------- --------- ----------- ----------
INCOME BEFORE INCOME TAXES 83,463 68,371 168,549 78,367
INCOME TAXES 27,727 22,998 43,612 16,272
MINORITY INTEREST IN SUBSIDIARY 27 (209) 750 433
PREFERRED DIVIDEND REQUIREMENT
OF SUBSIDIARY 9 7 34 528
--------- --------- ----------- ----------
NET INCOME BEFORE EXTRAORDINARY LOSS $ 55,700 $ 45,575 $ 124,153 $ 61,134
EXTRAORDINARY LOSS, NET OF TAX - - - (7,706)
--------- --------- ----------- ----------
NET INCOME $ 55,700 $ 45,575 $ 124,153 $ 53,428
========= ========= =========== ==========
AVERAGE COMMON SHARES OUTSTANDING 67,695 67,533 67,621 67,521
DILUTED COMMON SHARES OUTSTANDING 67,842 67,806 67,888 67,658
EARNINGS PER SHARE OF COMMON STOCK
BASIC:
NET INCOME BEFORE EXTRAORDINARY LOSS $ 0.82 $ 0.68 $ 1.84 $ 0.91
EXTRAORDINARY LOSS, NET OF TAX - - - (0.11)
--------- --------- ----------- ----------
EARNINGS PER SHARE OF COMMON STOCK $ 0.82 $ 0.68 $ 1.84 $ 0.79
DILUTED:
NET INCOME BEFORE EXTRAORDINARY LOSS $ 0.82 $ 0.67 $ 1.83 $ 0.90
EXTRAORDINARY LOSS, NET OF TAX - - - (0.11)
--------- --------- ----------- ----------
EARNINGS PER SHARE OF COMMON STOCK $ 0.82 $ 0.67 $ 1.83 $ 0.79
========= ========= =========== ==========
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
---------------------- --------------------------
2003 2002 2003 2002
---------------------- --------------------------
As Restated As Restated
----------- -----------
OPERATING REVENUE:
Gas utility $ 509,531 $ 358,053 $ 1,060,505 $ 851,715
Electric utility 119,376 126,800 600,692 419,330
Other 198 50 436 182
--------- --------- ----------- -----------
Total operating revenues 629,105 484,903 1,661,633 1,271,227
--------- --------- ----------- -----------
OPERATING EXPENSES:
Cost of gas sold 365,116 230,468 706,482 535,227
Fuel for electric generation 20,769 17,791 84,597 74,207
Purchased electric energy 40,398 59,749 276,916 135,868
Other operating 56,603 51,256 203,891 210,287
Merger and integration costs - - - 1,814
Restructuring costs - - - 15,010
Depreciation and amortization 28,762 26,771 112,677 113,472
Taxes other than income taxes 21,718 18,060 54,395 50,486
--------- --------- ----------- -----------
Total operating expenses 533,366 404,095 1,438,958 1,136,371
--------- ----------- ----------- -----------
OPERATING INCOME 95,739 80,808 222,675 134,856
OTHER INCOME (EXPENSE):
Equity in earnings (losses) of
unconsolidated affiliates (504) (112) (2,251) (1,334)
Other - net (1,507) 2,085 3,551 8,830
--------- --------- ----------- -----------
Total other income (expense) (2,011) 1,973 1,300 7,496
--------- --------- ----------- -----------
INTEREST EXPENSE 16,516 17,548 68,087 68,765
--------- --------- ----------- -----------
INCOME BEFORE INCOME TAXES 77,212 65,233 155,888 73,587
INCOME TAXES 29,895 23,189 53,478 23,781
PREFERRED DIVIDEND REQUIREMENT
OF SUBSIDIARY 9 7 34 527
--------- --------- ----------- -----------
NET INCOME $ 47,308 $ 42,037 $ 102,376 $ 49,279
========= ========= =========== ===========
VECTREN CORPORATION 3 Months 12 Months
HIGHLIGHTS Ended March 31 Ended March 31
-------------------------------------------
(millions, except per share amounts)
(Unaudited) 2003 2002 2003 2002
- ----------------------------------------------------------------------------------------
As Restated As Restated
----------- -----------
Reported Earnings:
Utility Group $ 47.3 $ 42.0 $ 102.4 $ 49.3
Non-regulated Group 8.5 4.4 23.0 9.0
Corporate and Other (0.1) (0.8) (1.3) (4.9)
------- ------ ------- ------
Vectren Consolidated $ 55.7 $ 45.6 $ 124.1 $ 53.4
Merger, Integration and
Restructuring Costs:
Utility Group $ - $ - $ - $ 14.7
Non-regulated Group - - - 2.2
Corporate and Other - - - 0.6
------- ------ ------- ------
Total - - - 17.5
Other Non-Recurring Items:
Non-regulated Group-
Extraordinary Loss in 2001 $ - $ - $ - $ (7.7)
------ ------ ------- ------
Income From Operations:
Utility Group $ 47.3 $ 42.0 $ 102.4 $ 64.0
Non-regulated Group
Energy Marketing and Services 8.4 4.6 18.6 11.3
Coal Mining 2.5 2.0 12.7 14.4
Utility Infrastructure Services (1.0) (0.5) (1.6) (0.4)
Broadband 0.1 0.1 0.4 -
Other Businesses (1.5) (1.8) (7.1) (6.4)
------ ------ ------- ------
Total Non-regulated Group 8.5 4.4 23.0 18.9
Corporate and Other (0.1) (0.8) (1.3) (4.3)
------ ------ ------- ------
Vectren Consolidated $ 55.7 $ 45.6 $ 124.1 $ 78.6
====== ====== ======= ======
Vectren Selected Highlights
12 months 12 months
Ended Ended
March 31 March 31
2003 2002
--------- ---------
Dividends Paid (per common
share, 12 months) $ 1.08 $ 1.04
Annualized Dividend $ 1.10 $ 1.06
Dividend Yield (at close) 5.1% 4.1%
Dividend Payout Ratio 58.7% 131.6%
Dividend to Book Value 8.1% 8.3%
Return on Average Shareholder Equity 13.9% 6.1%
Book Value Per Share $13.54 $12.77
Market to Book Value (at close) 159% 201%
Common Stock Prices (VVC - NYSE)
High $26.10 $25.95
Low $17.95 $19.76
Close $21.51 $25.69
Price/Earnings Ratio (trailing) 11.7 32.5
Percent Internally Generated Funds -
Utility Group 79% 65%
Ratio of Earnings to Fixed
Charges - SEC Method
Consolidated 2.9 1.7
Utility Group 3.3 2.1
VECTREN CORPORATION
SELECTED GAS DISTRIBUTION 3 Months 12 Months
OPERATING STATISTICS Ended March 31 Ended March 31
------------------------ ---------------------------
2003 2002 2003 2002
--------- ----------- ----------- -----------
(Unaudited) As Restated As Restated
- ------------------------------------ ----------- -----------
GAS OPERATING REVENUES (Thousands):
Residential $ 345,617 $ 247,313 $ 705,410 $ 570,773
Commercial 127,218 82,098 256,722 195,161
Contract 34,079 27,558 89,490 81,782
Miscellaneous Revenue 2,617 1,084 8,883 3,999
--------- --------- ----------- ---------
$ 509,531 $ 358,053 $ 1,060,505 $ 851,715
========= ========= =========== =========
GAS MARGIN (Thousands):
Operating Revenues $ 509,531 $ 358,053 $ 1,060,505 $ 851,715
Cost of Gas 365,116 230,153 706,179 534,911
--------- --------- ----------- ---------
Margin $ 144,415 $ 127,900 $ 354,326 $ 316,804
========= ========= =========== =========
GAS SOLD & TRANSPORTED (MDth):
Residential 44,556 36,359 88,923 72,381
Commercial 17,218 13,335 34,894 27,469
Contract 30,324 28,901 97,380 95,472
--------- --------- ----------- ---------
92,098 78,595 221,197 195,322
========= ========= =========== =========
AVERAGE GAS CUSTOMERS:
Residential 885,084 874,605 871,183 861,180
Commercial 80,675 80,671 79,541 79,803
Contract 4,134 4,275 4,143 4,006
--------- --------- ----------- --------
969,893 959,551 954,867 944,989
========= ========= =========== =========
WEATHER AS A PERCENT OF NORMAL:
Heating Degree Days 108% 88% 107% 85%
VECTREN CORPORATION
SELECTED ELECTRIC 3 Months 12 Months
OPERATING STATISTICS Ended March 31 Ended March 31
------------------------- -------------------------
2003 2002 2003 2002
---------- ----------- ----------- -----------
(Unaudited) As Restated As Restated
- ---------------------------------------- ----------- -----------
ELECTRIC OPERATING REVENUES (Thousands):
Residential $ 25,996 $ 23,160 $ 110,959 $ 97,542
Commercial 18,765 17,638 81,747 75,702
Industrial 21,051 20,149 91,272 83,971
Miscellaneous Revenue 1,504 933 5,611 5,799
---------- ---------- ---------- -----------
Total Retail 67,316 61,880 289,589 263,014
Wholesale 52,060 64,920 311,103 156,316
---------- ---------- ---------- -----------
$ 119,376 $ 126,800 $ 600,692 $ 419,330
========== ========== ========== ===========
ELECTRIC MARGIN (Thousands):
Operating Revenues $ 119,376 $ 126,800 $ 600,692 $ 419,330
Cost of Fuel & Purchased Power 61,167 77,540 361,513 210,075
---------- ---------- ---------- -----------
Margin $ 58,209 $ 49,260 $ 239,179 $ 209,255
========== ========== ========== ===========
ELECTRICITY SOLD (MWh):
Residential 394,815 353,239 1,608,791 1,413,094
Commercial 333,846 321,837 1,479,789 1,403,327
Industrial 553,911 580,691 2,489,555 2,431,157
Miscellaneous Sales 5,114 4,807 18,424 18,686
---------- ---------- ---------- -----------
Total Retail 1,287,686 1,260,574 5,596,559 5,266,264
Firm Wholesale 133,812 134,785 616,712 544,577
Non-Firm Wholesale 1,448,350 2,467,819 9,692,145 5,037,422
---------- ---------- ---------- -----------
2,869,848 3,863,178 15,905,416 10,848,263
========== ========== ========== ===========
AVERAGE ELECTRIC CUSTOMERS:
Residential 117,057 115,905 116,449 115,365
Commercial 16,934 17,348 17,030 17,360
Industrial 176 175 175 171
All Others 22 23 23 23
---------- ---------- ----------- -----------
134,189 133,451 133,677 132,919
========== ========== =========== ===========
WEATHER AS A PERCENT OF NORMAL:
Heating Degree Days 108% 88% 107% 85%
Cooling Degree Days 0% 0% 123% 97%