Exhibit 99.1
News
Release
Vectren Corporation
P.O. Box 209
Evansville, IN 47702-0209
FOR IMMEDIATE RELEASE
July 22, 2003
Vectren Corporation
Reports 2nd Quarter 2003 Results
Evansville, Indiana - Vectren Corporation (NYSE:VVC) today reported 2003 second
quarter earnings of $4.1 million, or $0.06 per share, compared to net income of
$12.5 million, or $0.18 per share, for the same period last year. For the six
months ended June 30, 2003, reported earnings were $59.8 million, or $0.88 per
share, compared to $58.1 million, or $0.86 per share, for the same period in
2002.
The 2003 second quarter results declined $0.10 per share as compared to the same
period in 2002 due to milder weather affecting both heating and cooling sales
and the write-off of two investments, as previously announced. Heating weather
experienced in the second quarter 2003 was 9% warmer than the same period last
year and cooling sales were reduced by weather 51% milder than the same period
in 2002. The estimated quarter over quarter impact of milder weather was $4.3
million after tax, or $0.06 per share.
The 2003 results include the write-off of the Company's investment in BABB
International, Inc., an entity that processes fly ash into building materials.
Charges of $1.9 million, pre-tax and $2.0 million, pre-tax were recorded in the
second and first quarters, respectively, of 2003. The second quarter 2003 also
includes the write-off of $2.0 million pre-tax of the investment in First Mile
Technologies, a small broadband entity located in Indianapolis, Indiana. The
write-off of both investments reduced net income for the second quarter by $2.3
million, or $0.04 per share, and the first six months by $3.5 million, or nearly
$0.06 per share.
Said Niel C. Ellerbrook, Chairman, President and CEO, "In addition to the mild
weather and write off of the two investments, our second quarter and year to
date results were impacted by high gas costs and a continued weak economy. For
the first six months in 2003 our uncollectible accounts expense has increased by
approximately $2.7 million pre-tax over 2002 levels. Customer consumption has
shown some sensitivity to the higher gas costs through lower usage and, in some
cases, fuel switching."
"Year to date operations have been solid and we remain focused on executing
business plans around our utility and complementary nonregulated operations that
provide long-term value to our shareholders. While we are confident that our
operations provide this long-term growth platform, we have not seen the expected
economic turnaround in the Midwest and a continued delay could put pressure on
2003 earnings. We continue to expect to achieve 2003 earnings per share in the
range of $1.65 to $1.75 per share," added Ellerbrook.
Operating Review for the Quarter ended June 30
Utility Group
Utility earnings for the second quarter 2003 were $1.4 million as compared to
$8.7 million for the same quarter last year. As noted previously, the primary
contributors to the decline are electric cooling weather
- more-
that was significantly below normal in the 2003 quarter and the write-off of the
BABB investment.
Gas margins were $60.8 million, an increase of $2.5 million over the same
quarter in 2002. The increase is primarily due to increased late payment
charges, an increase in Ohio's percent of income payment plan (PIPP) rate
recovery rider, recovery of customer choice implementation costs, recovery of
gross receipts and excise taxes on higher gas costs, and other items. The
increase was partially offset by heating weather which was normal and 9% warmer
than the prior year period. The estimated quarter over quarter pre-tax impact of
the warmer weather on gas utility margins was approximately $3.3 million.
Weather and an overall decline in customer usage were the primary factors
resulting in the 8% decrease in throughput.
Electric margins were $50.8 million, a decrease of $2.2 million compared to the
second quarter of 2002. The decrease in electric margin was due primarily to the
effect of milder cooling weather which was 43% cooler than normal and 51% cooler
than last year, offset by increased margins from wholesale power activities. The
estimated quarter over quarter pre-tax decrease as a result of the milder
weather on electric utility margins was approximately $3.9 million. As a result
of the mild weather, volumes sold to retail and firm wholesale customers
decreased 7%. Non-firm wholesale electric utility margins increased $1.9 million
to $3.9 million in 2003 compared to 2002.
Other operating expenses for the second quarter increased $5.1 million compared
to the same period in the prior year. The increased expenses were principally
due to higher uncollectible accounts expenses, the timing of electric plant
maintenance expenditures, and other costs such as PIPP and Ohio customer choice
costs that are recovered through margins.
Depreciation and amortization increased $3.3 million compared to the prior year
due to utility plant additions. Since June 30, 2002, the Company has placed in
service over $100 million in utility plant including a new gas-fired electric
peaking unit, expenditures for implementing a choice program for Ohio gas
customers, and other upgrades to existing transmission and distribution
facilities.
Taxes other than income increased $0.9 million compared to the prior year due
primarily to higher gross receipts and excise taxes incurred as a result of
higher gas prices.
Other income (expense), net for the utility group decreased $3.0 million
compared to the prior year. The decrease is primarily the result of the
additional pre-tax charge of $1.9 million taken to write-off the BABB
investment. In addition, the second quarter of 2002 includes income from the
sale of emission allowances of approximately $1.0 million pre-tax that did not
recur in 2003.
Interest expense decreased $1.4 million when compared to the same quarter last
year. The decrease primarily resulted from lower interest rates. This was
partially offset by higher outstanding balances due primarily to funding of
capital expenditures and increased working capital requirements resulting from
the higher gas prices experienced during late 2002 and 2003.
Non Regulated Group (all amounts following in this section are after tax)
Nonregulated earnings for the second quarter 2003 decreased to $3.4 million as
compared to $4.4 million for the same period last year due to the impact of the
write-off of the First Mile investment.
Earnings from Energy Marketing and Services were $2.1 million, a decline of $1.5
million from the second quarter of 2002. Gas Marketing's contribution was down
$2.2 million period over period primarily due to the timing of costs and
optimization benefits related to pipeline contracts. Performance Contracting was
up $0.7 million due to success in obtaining higher margins and working from a
higher construction backlog at the end of 2002. Performance Contracting results
also reflect 100% Vectren ownership during the quarter versus 67% Vectren
ownership in 2002.
Earnings from Coal Mining were $4.7 million, an increase of $1.8 million from
the second quarter 2002. Mining operations were $0.4 million and $0.9 million
for the 2003 quarter compared to the 2002 quarter. Net earnings from the
investment in Pace Carbon were $3.2 million and $1.3 million in 2003 and 2002,
respectively. Synfuels related results, which reflect earnings from the
investment in Pace Carbon and Synfuels related fees, were $4.3 million and $2.0
million in 2003 and 2002, respectively. Approximately eight hundred thousand
tons of coal were mined and an additional three hundred thousand tons were
brokered. Of that amount, seven hundred thousand tons were sold to the utility
operations under approved contracts, with the remainder sold to third parties.
The earnings from mining operations were impacted by reduced mining yields.
However, based on a recently concluded geological study, these conditions are
expected to improve in the fourth quarter of 2003 and early 2004.
Broadband includes the $1.2 million after tax write-off of the First Mile
investment. The company's investments in SIGECOM and its parent Utilicom
Networks, LLC, a local broadband provider to Evansville, Indiana, had no
significant impact on the company's operating results.
Utility Infrastructure and Other Non Regulated businesses results were generally
unchanged quarter over quarter.
Operating Review for the Six Months Ended June 30
Utility Group
Utility earnings for the six months ended June 30, 2003 were $48.7 million in
2003 as compared to $50.7 million for the same period in 2002, primarily driven
by weather that on the year was favorably impacted by $5.4 million after tax
compared to last year and increased wholesale and other margin, offset by the
BABB investment write-off of $2.3 million after tax and increased other
operating costs.
Gas margins were $205.2 million, an increase of $19.0 million over second
quarter 2002. It is estimated that weather, 17% colder than the prior year and
7% colder than normal, contributed $12.0 million pre-tax to the increased
margin. The remaining $7.0 million increase is primarily attributable to gross
receipts and excise taxes, increased late payment fees, and recovery of Ohio
customer choice implementation costs.
Electric margins were $109.0 million, an increase of $6.7 million over 2002
primarily due to increased non-firm wholesale power activity resulting from
price volatility, offset by lower retail sales due to milder cooling weather. As
a result of the mild weather which was 44% cooler than normal and 51% cooler
than last year, volumes sold to retail and firm wholesale customers decreased 3%
with an estimated margin impact of $2.9 million pre-tax. Non-firm wholesale
margins were $12.1 million, an increase of $9.0 million over 2002.
Other operating expenses increased $10.4 million compared to the prior year. The
increased expenses were due principally to higher uncollectible accounts
expense, the timing of electric plant maintenance and other costs such as PIPP
and customer choice implementation costs in Ohio that are recovered through
margins.
Depreciation and amortization increased $5.3 million compared to the prior year
due to utility plant additions.
Taxes other than income increased $4.5 million compared to the prior year due to
higher gross receipts and excise taxes as a result of higher gas prices and
increased gas volumes sold.
Other income (expense), net for the utility group decreased $7.0 million pre-tax
compared to the prior year. The decrease is primarily the result of the $3.9
million pre-tax write-off of the BABB investment, less AFUDC and interest
income, and contributions of $1.2 million pre-tax to low income customer
assistance programs resulting from the ProLiance settlement. In addition, 2002
amounts include income from the sale of emission allowances and other assets
totaling $2.2 million pre-tax.
Interest expense decreased $2.5 million when compared to last year. The decrease
primarily resulted from lower interest rates. This was partially offset by
higher outstanding balances due primarily to funding of capital expenditures and
increased working capital requirements resulting from the higher gas prices
experienced during late 2002 and 2003.
Non Regulated Group (all amounts following in this section are after tax)
For the six months ended June 30, nonregulated earnings were $11.9 million in
2003 as compared to $8.8 million for the same period in 2002.
Earnings from Energy Marketing and Services were $10.5 million, an increase of
$2.3 million over 2002. Gas Marketing's contribution increased $1.2 million
period over period due to continued realization of benefits from the integration
of its two gas marketing companies in 2002 and from opportunities provided by
gas price volatility in the first quarter. Performance Contracting is up $0.9
million due to the higher margins, a large construction backlog at the end of
2002, and Vectren's higher ownership percentage in the second quarter of 2003.
Earnings from Coal Mining were $7.2 million, an increase of $2.3 million over
2002. Mining operations contributed $0.6 million in 2003 and $1.4 million in
2002. Net earnings from the investment in Pace Carbon, comprised of Synfuel tax
credits net of operating losses, were $4.8 million and $2.1 million, in 2003 and
2002 respectively. Synfuels related results, which reflect earnings from the
investment in Pace Carbon and Synfuels related fees, were $6.6 million and $3.5
million, in 2003 and 2002 respectively. Approximately 1.6 million tons of coal
were mined and an additional five hundred thousand tons were brokered. Of that
amount, 1.5 million tons were sold to the utility operations under approved
contracts, with the remainder sold to third parties. Reduced mining yield
continues to impact 2003 earnings of the mining operations. However, based on a
recently completed geological study, these conditions are expected to improve in
late 2003 and early 2004.
Utility Infrastructure losses increased to $1.2 million from $0.5 million in
2002 as a result of continued cutbacks from gas distribution utility customers
which began in the later part of 2002. Recent indications, however, are
favorable as Miller Pipeline has more employees working on construction projects
than ever before in their 50-year history.
Broadband includes the $1.2 million after tax write-off of First Mile in the
second quarter of 2003.
Other nonregulated businesses contributed an after tax loss of $3.5 million in
2003 as compared to a $4.0 million after tax loss in 2002. There was substantial
improvement in the losses at the municipal broadband consulting company and in
the financial asset portfolio. However, the 2002 results include a $0.8 million
gain in the Haddington Ventures portfolio which did not recur in 2003 and
therefore offset part of this turnaround. Retail marketing operations had a less
than expected loss of $1.0 million, continues to make good progress, and now has
over 50,000 midwestern choice customers. Further, it is on track to be
profitable in late 2004.
Please SEE ATTACHED unaudited schedules for additional financial information
Live Webcast on July 23
Vectren Corporation officers will discuss second quarter results provide an
outlook for 2003 during a conference call for analysts scheduled at 2:30 p.m.
EDT (1:30 CDT), Wednesday July 23, 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.
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 as amended on Form 10-K/A filed with the
Securities and Exchange Commission on June 18, 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 Six Months Twelve Months
Ended June 30 Ended June 30 Ended June 30
------------- ------------- -------------
2003 2002 2003 2002 2003 2002
---- ---- ---- ---- ---- ----
As Restated As Restated As Restated
----------- ----------- -----------
OPERATING REVENUE:
Gas utility $ 165,023 $ 140,139 $ 674,554 $ 498,192 $ 1,085,389 $ 838,897
Electric utility 90,243 158,924 209,619 285,724 532,011 482,738
Energy services and other 28,110 81,141 61,711 226,660 122,242 476,662
------- -------- -------- --------- --------- ---------
Total operating revenues 283,376 380,204 945,884 1,010,576 1,739,642 1,798,297
------- -------- -------- --------- --------- ---------
OPERATING EXPENSES:
Cost of gas sold 104,269 81,824 469,385 311,977 728,624 522,012
Fuel for electric generation 20,597 19,068 41,366 36,859 86,126 75,418
Purchased electric energy 18,788 86,796 59,186 146,545 208,908 190,295
Cost of energy services and other 19,060 72,058 44,595 206,841 87,171 433,172
Other operating 59,630 55,979 122,202 113,556 231,594 236,056
Merger and integration costs - - - - - 2,046
Restructuring costs - - - - - 6,631
Depreciation and amortization 32,410 28,728 63,812 57,754 125,689 118,398
Taxes other than income taxes 11,083 10,241 33,118 28,573 56,447 51,691
------- -------- -------- --------- --------- ---------
Total operating expenses 265,837 354,694 833,664 902,105 1,524,559 1,635,719
------- -------- -------- --------- --------- ---------
OPERATING INCOME 17,539 25,510 112,220 108,471 215,083 162,578
OTHER INCOME (EXPENSE):
Equity in earnings (losses) of
unconsolidated investmen (129) 3,729 8,677 6,793 10,966 9,725
Other - net (1,007) 3,057 (2,155) 5,247 4,120 14,115
------- -------- -------- --------- --------- ---------
Total other income (expense) (1,136) 6,786 6,522 12,040 15,086 23,840
------- -------- -------- --------- --------- ---------
INTEREST EXPENSE 18,261 19,501 37,137 39,345 76,273 78,709
------- -------- -------- --------- --------- ---------
INCOME (LOSS) BEFORE INCOME TAXES (1,858) 12,795 81,605 81,166 153,896 107,709
INCOME TAXES (5,939) 361 21,788 23,359 37,312 22,687
MINORITY INTEREST IN SUBSIDIARY 6 (38) 33 (247) 794 544
PREFERRED DIVIDEND REQUIREMENT OF SUBSIDIARY 5 3 14 10 36 288
------- -------- -------- --------- --------- ---------
NET INCOME $ 4,070 $ 12,469 $ 59,770 $ 58,044 $ 115,754 $ 84,190
======= ======== ======== ========= ========= =========
AVERAGE COMMON SHARES OUTSTANDING 67,768 67,578 67,731 67,557 67,668 67,539
DILUTED COMMON SHARES OUTSTANDING 68,083 67,866 67,976 67,849 67,935 67,749
EARNINGS PER SHARE OF COMMON STOCK
BASIC:
EARNINGS PER SHARE OF COMMON STOCK $ 0.06 $ 0.18 $ 0.88 $ 0.86 $ 1.71 $ 1.25
======= ======== ======== ========= ========= =========
DILUTED:
EARNINGS PER SHARE OF COMMON STOCK $ 0.06 $ 0.18 $ 0.88 $ 0.86 $ 1.70 $ 1.24
======= ======== ======== ========= ========= =========
VECTREN UTILITY HOLDINGS
AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF INCOME
(Thousands, except for share amounts)
(Unaudited)
Three Months Six Months Twelve Months
Ended June 30 Ended June 30 Ended June 30
---------------------- ---------------------- --------------------------
2003 2002 2003 2002 2003 2002
---------------------- ---------------------- --------------------------
As Restated As Restated As Restated
----------- ----------- -----------
OPERATING REVENUE:
Gas utility $ 165,023 $140,139 $ 674,554 $498,192 $ 1,085,389 $ 838,897
Electric utility 90,243 158,924 209,619 285,724 532,011 482,738
Other 199 51 397 101 584 189
--------- -------- --------- -------- ----------- ---------
Total operating revenues 255,465 299,114 884,570 784,017 1,617,984 1,321,824
--------- -------- --------- -------- ----------- ---------
OPERATING EXPENSES:
Cost of gas sold 104,269 82,127 469,385 312,595 728,624 522,630
Fuel for electric generation 20,597 19,068 41,366 36,859 86,126 75,418
Purchased electric energy 18,788 86,796 59,186 146,545 208,908 190,295
Other operating 53,895 48,799 110,498 100,055 208,987 206,473
Merger and integration costs - - - - - 2,086
Restructuring costs - - - - - 4,205
Depreciation and amortization 29,681 26,349 58,443 53,120 116,009 108,482
Taxes other than income taxes 10,864 10,016 32,582 28,076 55,243 49,887
--------- -------- --------- -------- ----------- ---------
Total operating expenses 238,094 273,155 771,460 677,250 1,403,897 1,159,476
--------- -------- --------- -------- ----------- ---------
OPERATING INCOME 17,371 25,959 113,110 106,767 214,087 162,348
OTHER INCOME (EXPENSE):
Equity in earnings (losses)
of unconsolidated affiliates 86 (404) (418) (516) (1,761) (1,351)
Other - net 225 3,753 (1,282) 5,838 23 11,457
--------- -------- --------- -------- ----------- ---------
Total other income (expense) 311 3,349 (1,700) 5,322 (1,738) 10,106
--------- -------- --------- -------- ----------- ---------
INTEREST EXPENSE 15,864 17,292 32,380 34,840 66,659 68,681
--------- -------- --------- -------- ----------- ---------
INCOME BEFORE INCOME TAXES 1,818 12,016 79,030 77,249 145,690 103,773
INCOME TAXES 378 3,337 30,273 26,526 50,519 35,388
PREFERRED DIVIDEND REQUIREMENT OF SUBSIDIARY 5 3 14 10 36 288
--------- -------- --------- -------- ----------- ---------
NET INCOME $ 1,435 $ 8,676 $ 48,743 $50,713 $ 95,135 $ 68,097
========= ======== ========= ======== =========== =========
VECTREN CORPORATION
HIGHLIGHTS
3 Months 6 Months 12 Months
(millions, except per share amounts) Ended June 30 Ended June 30 Ended June 30
------------------------------------------------------------------
(Unaudited) 2003 2002 2003 2002 2003 2002 *
- -------------------------------------------------------------------------------------------------------------------
As Restated As Restated As Restated
----------- ----------- ----------
Reported Earnings:
Utility Group $ 1.4 $ 8.7 $ 48.7 $ 50.7 $ 95.1 $ 68.1
Non-regulated Group
Energy Marketing and Services 2.1 3.6 10.5 8.2 17.3 12.9
Mining 0.4 0.9 0.6 1.4 2.5 5.8
Synfuels related 4.3 2.0 6.6 3.5 12.0 7.4
---------- --------- ---------- --------- ---------- ----------
Total Coal Mining 4.7 2.9 7.2 4.9 14.5 13.2
Utility Infrastructure Services (0.2) - (1.2) (0.5) (1.9) (0.2)
Broadband (1.2) 0.1 (1.1) 0.2 (0.9) -
Other Businesses (2.0) (2.2) (3.5) (4.0) (6.9) (10.0)
---------- --------- ---------- --------- ---------- ----------
Total Non-regulated Group 3.4 4.4 11.9 8.8 22.1 15.9
Corporate and Other (0.7) (0.6) (0.8) (1.4) (1.5) 0.2
---------- --------- ---------- --------- ---------- ----------
Vectren Consolidated $ 4.1 $ 12.5 $ 59.8 $ 58.1 $ 115.7 $ 84.2
========== ========= ========== ========= ========== ==========
* Reported earnings for the twelve months ended June 30, 2002 includes $8.5
million after tax of merger, integration and restructuring costs as follows:
Utility group $6.3 million after tax; Non-regulated group $1.8 million after
tax; and Corporate and Other $0.4 million after tax.
Vectren Selected Highlights
12 months 12 months
Ended Ended
June 30 June 30
2003 2002
---------- ---------
Dividends Paid (per common share, 12 months) $ 1.09 $ 1.05
Annualized Dividend $ 1.10 $ 1.06
Dividend Yield (at close) 4.4% 4.2%
Dividend Payout Ratio 63.7% 84.0%
Dividend to Book Value 8.3% 8.3%
Return on Average Shareholder Equity 13.1% 9.9%
Book Value Per Share $ 13.20 $ 12.73
Market to Book Value (at close) 190% 197%
Common Stock Prices (VVC - NYSE)
High $ 26.13 $ 26.10
Low $ 17.95 $ 19.76
Close $ 25.05 $ 25.10
Price/Earnings Ratio (trailing) 14.6 20.1
Ratio of Total Debt to Total Capitalization 60% 60%
Percent Internally Generated Funds - 76% 57%
Utility Group
Ratio of Earnings to Fixed Charges -
SEC Method
Consolidated 2.8 2.2
Utility Group 3.2 2.5
VECTREN CORPORATION
SELECTED GAS DISTRIBUTION 3 Months 6 Months 12 Months
OPERATING STATISTICS Ended June 30 Ended June 30 Ended June 30
-------------------- ------------------- --------------------- ------------------------
2003 2002 2003 2002 2003 2002
---- ---- ---- ---- ---- ----
(Unaudited) As Restated As Restated As Restated
- ------------------------------------ ------------ ----------- -----------
GAS OPERATING REVENUES (Thousands):
Residential $ 109,120 $ 89,429 $ 454,737 $ 336,742 $ 724,893 $ 560,370
Commercial 38,604 32,381 165,822 114,479 263,123 191,781
Contract 15,301 17,184 49,380 44,742 87,973 85,519
Miscellaneous Revenue 1,998 1,145 4,615 2,229 9,400 1,227
--------- --------- --------- --------- ----------- ---------
$ 165,023 $ 140,139 $ 674,554 $ 498,192 $ 1,085,389 $ 838,897
========= ========= ========= ========= =========== =========
GAS MARGIN (Thousands):
Operating Revenues $ 165,023 $ 140,139 $ 674,554 $ 498,192 $ 1,085,389 $ 838,897
Cost of Gas 104,269 81,824 469,385 311,977 728,624 522,012
--------- -------- --------- --------- ----------- ---------
Margin $ 60,754 $ 58,315 $ 205,169 $ 186,215 $ 356,765 $ 316,885
========= ========= ========= ========= =========== =========
GAS SOLD & TRANSPORTED (MDth):
Residential 9,881 10,945 54,437 47,304 87,859 74,312
Commercial 3,985 4,256 21,203 17,591 34,623 28,039
Contract 18,360 20,033 48,684 48,934 95,706 95,700
--------- --------- --------- --------- --------- ---------
32,226 35,234 124,324 113,829 218,188 198,051
========= ========= ========= ========= ========= =========
AVERAGE GAS CUSTOMERS:
Residential 862,058 869,359 872,724 871,982 869,625 863,637
Commercial 78,103 79,623 79,069 80,072 79,171 79,719
Contract 12,053 4,164 9,261 4,220 6,714 4,261
--------- --------- --------- --------- --------- ----------
952,214 953,146 961,054 956,274 955,510 947,617
========= ========= ========= ========= ========= =========
WEATHER AS A PERCENT OF NORMAL:
Heating Degree Days 100% 110% 107% 91% 106% 89%
VECTREN CORPORTION
SELECTED ELECTRIC 3 Months 6 Months 12 Months
OPERATING STATISTICS Ended June 30 Ended June 30 Ended June 30
-------------------- ------------------- --------------------- ---------------------
2003 2002 2003 2002 2003 2002
---- ---- ---- ---- ---- ----
(Unaudited) As Restated As Restated As Restated
- ---------------------------------------- ----------- ----------- -----------
ELECTRIC OPERATING REVENUES (Thousands):
Residential $ 20,401 $ 23,343 $ 46,397 $ 46,503 $ 108,017 $ 100,245
Commercial 18,716 20,053 37,481 37,691 80,410 77,582
Industrial 23,449 22,898 44,500 43,047 91,823 84,634
Miscellaneous Revenue 1,486 1,558 2,990 2,491 5,539 4,858
-------- --------- --------- --------- --------- ---------
Total Retail 64,052 67,852 131,368 129,732 285,789 267,319
Wholesale 26,191 91,072 78,251 155,992 246,222 215,419
-------- --------- --------- --------- --------- ---------
$ 90,243 $ 158,924 $ 209,619 $ 285,724 $ 532,011 $ 482,738
======== ========= ========= ========= =========== =========
ELECTRIC MARGIN (Thousands):
Operating Revenues $ 90,243 $ 158,924 $ 209,619 $ 285,724 $ 532,011 $ 482,738
Cost of Fuel & Purchased Power 39,385 105,864 100,552 183,404 295,034 265,713
-------- --------- --------- --------- --------- ---------
Margin $ 50,858 $ 53,060 $ 109,067 $ 102,320 $ 236,977 $ 217,025
======== ========= ========= ========= ========= =========
ELECTRICITY SOLD (MWh):
Residential 261,504 327,042 656,319 680,281 1,543,253 1,445,732
Commercial 328,998 360,309 662,844 682,146 1,448,478 1,430,660
Industrial 651,770 647,983 1,205,681 1,228,674 2,493,342 2,452,682
Miscellaneous Sales 4,235 3,661 9,349 8,468 18,998 18,362
--------- --------- --------- --------- --------- ---------
Total Retail 1,246,507 1,338,995 2,534,193 2,599,569 5,504,071 5,347,436
Firm Wholesale 145,936 155,812 279,748 290,597 606,836 556,584
Non-Firm Wholesale 576,700 3,168,082 2,025,050 5,635,901 7,100,763 7,408,478
--------- --------- --------- --------- --------- ---------
1,969,143 4,662,889 4,838,991 8,526,067 13,211,670 13,312,498
========= ========= ========= ========= ========== ==========
AVERAGE ELECTRIC CUSTOMERS:
Residential 116,719 115,898 116,887 115,902 116,654 115,617
Commercial 16,975 17,304 16,955 17,326 16,948 17,347
Industrial 177 175 177 175 175 173
All Others 21 23 21 23 22 23
--------- -------- -------- -------- ------- -------
133,892 133,400 134,040 133,426 133,799 133,160
========= ======== ======== ======== ======= =======
WEATHER AS A PERCENT OF NORMAL:
Heating Degree Days 100% 110% 107% 91% 106% 89%
Cooling Degree Days 57% 116% 56% 115% 105% 101%