Attached files
| file | filename |
|---|---|
| 8-K - 8-K - VECTREN CORP | a8k-2013q2earningsfinal.htm |
| EX-99.3 - EXHIBIT 99.3 - VECTREN CORP | a630138kexhibit993.htm |
| EX-99.1 - EXHIBIT 99.1 - VECTREN CORP | a630138kexhibit991.htm |
Exhibit 99.2
VECTREN CORPORATION | ||||||||||||||||
AND SUBSIDIARY COMPANIES | ||||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
(Unaudited - in millions, except per share amounts) | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
OPERATING REVENUES: | ||||||||||||||||
Gas utility | $ | 138.0 | $ | 116.0 | $ | 453.9 | $ | 408.3 | ||||||||
Electric utility | 154.7 | 149.3 | 304.2 | 288.7 | ||||||||||||
Nonutility | 238.3 | 205.3 | 473.5 | 378.2 | ||||||||||||
Total operating revenues | 531.0 | 470.6 | 1,231.6 | 1,075.2 | ||||||||||||
OPERATING EXPENSES: | ||||||||||||||||
Cost of gas sold | 50.7 | 31.8 | 207.9 | 168.9 | ||||||||||||
Cost of fuel and purchased power | 53.9 | 47.0 | 104.1 | 91.7 | ||||||||||||
Cost of nonutility revenues | 77.3 | 57.6 | 163.7 | 117.1 | ||||||||||||
Other operating | 209.4 | 188.4 | 425.0 | 361.6 | ||||||||||||
Depreciation and amortization | 68.8 | 63.4 | 135.0 | 127.0 | ||||||||||||
Taxes other than income taxes | 13.0 | 12.2 | 31.2 | 28.8 | ||||||||||||
Total operating expenses | 473.1 | 400.4 | 1,066.9 | 895.1 | ||||||||||||
OPERATING INCOME | 57.9 | 70.2 | 164.7 | 180.1 | ||||||||||||
OTHER INCOME (EXPENSE): | ||||||||||||||||
Equity in (losses) of unconsolidated affiliates | (50.6 | ) | (6.6 | ) | (57.3 | ) | (14.2 | ) | ||||||||
Other income - net | 3.6 | 1.2 | 6.5 | 4.5 | ||||||||||||
Total other expense | (47.0 | ) | (5.4 | ) | (50.8 | ) | (9.7 | ) | ||||||||
INTEREST EXPENSE | 21.5 | 23.9 | 45.0 | 47.9 | ||||||||||||
INCOME (LOSS) BEFORE INCOME TAXES | (10.6 | ) | 40.9 | 68.9 | 122.5 | |||||||||||
INCOME TAXES | (4.8 | ) | 15.3 | 24.9 | 45.6 | |||||||||||
NET INCOME (LOSS) | $ | (5.8 | ) | $ | 25.6 | $ | 44.0 | $ | 76.9 | |||||||
AVERAGE COMMON SHARES OUTSTANDING | 82.3 | 82.0 | 82.3 | 82.0 | ||||||||||||
DILUTED COMMON SHARES OUTSTANDING | 82.3 | 82.1 | 82.4 | 82.0 | ||||||||||||
EARNINGS (LOSS) PER SHARE OF COMMON STOCK | ||||||||||||||||
BASIC | $ | (0.07 | ) | $ | 0.31 | $ | 0.53 | $ | 0.94 | |||||||
DILUTED | $ | (0.07 | ) | $ | 0.31 | $ | 0.53 | $ | 0.94 | |||||||
VECTREN UTILITY HOLDINGS | ||||||||||||||||
AND SUBSIDIARY COMPANIES | ||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||
(Unaudited - in millions) | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
OPERATING REVENUES: | ||||||||||||||||
Gas utility | $ | 138.0 | $ | 116.0 | $ | 453.9 | $ | 408.3 | ||||||||
Electric utility | 154.7 | 149.3 | 304.2 | 288.7 | ||||||||||||
Other | 0.1 | 0.5 | 0.2 | 0.9 | ||||||||||||
Total operating revenues | 292.8 | 265.8 | 758.3 | 697.9 | ||||||||||||
OPERATING EXPENSES: | ||||||||||||||||
Cost of gas sold | 50.7 | 31.8 | 207.9 | 168.9 | ||||||||||||
Cost of fuel and purchased power | 53.9 | 47.0 | 104.1 | 91.7 | ||||||||||||
Other operating | 76.1 | 77.8 | 162.9 | 157.7 | ||||||||||||
Depreciation and amortization | 48.7 | 47.8 | 97.1 | 96.4 | ||||||||||||
Taxes other than income taxes | 12.2 | 11.6 | 29.7 | 27.5 | ||||||||||||
Total operating expenses | 241.6 | 216.0 | 601.7 | 542.2 | ||||||||||||
OPERATING INCOME | 51.2 | 49.8 | 156.6 | 155.7 | ||||||||||||
OTHER INCOME - NET | 3.0 | 0.7 | 4.8 | 2.9 | ||||||||||||
INTEREST EXPENSE | 15.7 | 18.0 | 33.6 | 35.7 | ||||||||||||
INCOME BEFORE INCOME TAXES | 38.5 | 32.5 | 127.8 | 122.9 | ||||||||||||
INCOME TAXES | 14.3 | 12.4 | 48.5 | 46.8 | ||||||||||||
NET INCOME | $ | 24.2 | $ | 20.1 | $ | 79.3 | $ | 76.1 | ||||||||
VECTREN CORPORATION | ||||||||
AND SUBSIDIARY COMPANIES | ||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||
(Unaudited - in millons) | ||||||||
As of | ||||||||
June 30, | December 31, | |||||||
2013 | 2012 | |||||||
ASSETS | ||||||||
Current Assets | ||||||||
Cash & cash equivalents | $ | 5.9 | $ | 19.5 | ||||
Accounts receivable - less reserves of $7.6 & | ||||||||
$6.8, respectively | 231.7 | 216.7 | ||||||
Accrued unbilled revenues | 84.0 | 185.0 | ||||||
Inventories | 133.9 | 158.6 | ||||||
Recoverable fuel & natural gas costs | 18.6 | 25.3 | ||||||
Prepayments & other current assets | 85.2 | 73.3 | ||||||
Total current assets | 559.3 | 678.4 | ||||||
Utility Plant | ||||||||
Original cost | 5,265.0 | 5,176.8 | ||||||
Less: accumulated depreciation & amortization | 2,104.4 | 2,057.2 | ||||||
Net utility plant | 3,160.6 | 3,119.6 | ||||||
Investments in unconsolidated affiliates | 25.5 | 78.1 | ||||||
Other utility & corporate investments | 35.8 | 34.6 | ||||||
Other nonutility investments | 35.5 | 24.9 | ||||||
Nonutility plant - net | 616.2 | 598.0 | ||||||
Goodwill - net | 262.3 | 262.3 | ||||||
Regulatory assets | 253.1 | 252.7 | ||||||
Other assets | 37.0 | 40.5 | ||||||
TOTAL ASSETS | $ | 4,985.3 | $ | 5,089.1 | ||||
LIABILITIES & SHAREHOLDERS' EQUITY | ||||||||
Current Liabilities | ||||||||
Accounts payable | $ | 117.9 | $ | 180.6 | ||||
Accounts payable to affiliated companies | — | 29.7 | ||||||
Accrued liabilities | 175.2 | 198.8 | ||||||
Short-term borrowings | 297.8 | 278.8 | ||||||
Current maturities of long-term debt | 130.7 | 106.4 | ||||||
Total current liabilities | 721.6 | 794.3 | ||||||
Long-term Debt - Net of Current Maturities | 1,477.8 | 1,553.4 | ||||||
Deferred Income Taxes & Other Liabilities | ||||||||
Deferred income taxes | 669.3 | 637.2 | ||||||
Regulatory liabilities | 376.4 | 364.2 | ||||||
Deferred credits & other liabilities | 221.9 | 213.9 | ||||||
Total deferred credits & other liabilities | 1,267.6 | 1,215.3 | ||||||
Common Shareholders' Equity | ||||||||
Common stock (no par value) – issued & outstanding | ||||||||
82.3 and 82.2 shares, respectively | 704.5 | 700.5 | ||||||
Retained earnings | 815.4 | 829.9 | ||||||
Accumulated other comprehensive (loss) | (1.6 | ) | (4.3 | ) | ||||
Total common shareholders' equity | 1,518.3 | 1,526.1 | ||||||
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY | $ | 4,985.3 | $ | 5,089.1 | ||||
VECTREN CORPORATION | ||||||||
AND SUBSIDIARY COMPANIES | ||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
(Unaudited - in millons) | ||||||||
Six Months Ended | ||||||||
June 30, | ||||||||
2013 | 2012 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
Net income | $ | 44.0 | $ | 76.9 | ||||
Adjustments to reconcile net income to cash from operating activities: | ||||||||
Depreciation & amortization | 135.0 | 127.0 | ||||||
Deferred income taxes & investment tax credits | 25.7 | 32.9 | ||||||
Equity in losses of unconsolidated affiliates | 57.3 | 14.2 | ||||||
Provision for uncollectible accounts | 3.9 | 3.9 | ||||||
Expense portion of pension & postretirement benefit cost | 4.5 | 5.1 | ||||||
Other non-cash charges - net | 4.8 | 5.6 | ||||||
Changes in working capital accounts: | ||||||||
Accounts receivable & accrued unbilled revenues | 82.1 | 74.7 | ||||||
Inventories | 24.7 | (17.7 | ) | |||||
Recoverable/refundable fuel & natural gas costs | 6.7 | 2.8 | ||||||
Prepayments & other current assets | (11.5 | ) | 16.9 | |||||
Accounts payable, including to affiliated companies | (99.4 | ) | (70.3 | ) | ||||
Accrued liabilities | (13.5 | ) | (18.6 | ) | ||||
Unconsolidated affiliate dividends | 0.3 | — | ||||||
Employer contributions to pension & postretirement plans | (6.8 | ) | (10.2 | ) | ||||
Changes in noncurrent assets | (4.6 | ) | (3.5 | ) | ||||
Changes in noncurrent liabilities | 1.7 | (4.5 | ) | |||||
Net cash flows provided by operating activities | 254.9 | 235.2 | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
Proceeds from: | ||||||||
Long-term debt, net of issuance costs | 122.3 | 99.5 | ||||||
Dividend reinvestment plan & other common stock issuances | 3.8 | 3.6 | ||||||
Requirements for: | ||||||||
Dividends on common stock | (58.4 | ) | (57.4 | ) | ||||
Retirement of long-term debt | (176.5 | ) | (36.9 | ) | ||||
Other financing activities | 0.1 | — | ||||||
Net change in short-term borrowings | 19.0 | (65.9 | ) | |||||
Net cash used in financing activities | (89.7 | ) | (57.1 | ) | ||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
Proceeds from investing activities | 3.0 | 7.6 | ||||||
Requirements for: | ||||||||
Capital expenditures, excluding AFUDC equity | (171.4 | ) | (188.5 | ) | ||||
Other investments | (10.4 | ) | (0.2 | ) | ||||
Net cash used in investing activities | (178.8 | ) | (181.1 | ) | ||||
Net change in cash & cash equivalents | (13.6 | ) | (3.0 | ) | ||||
Cash & cash equivalents at beginning of period | 19.5 | 8.6 | ||||||
Cash & cash equivalents at end of period | $ | 5.9 | $ | 5.6 | ||||
VECTREN CORPORATION | ||||||||||||||||
AND SUBSIDIARY COMPANIES | ||||||||||||||||
HIGHLIGHTS | ||||||||||||||||
(Unaudited - in millions, except per share amounts) | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
REPORTED EARNINGS: | ||||||||||||||||
Utility Group | ||||||||||||||||
Gas Utility Services | $ | 2.9 | $ | 1.3 | $ | 41.0 | $ | 38.8 | ||||||||
Electric Utility Services | 18.9 | 17.2 | 33.5 | 32.8 | ||||||||||||
Other Operations | 2.4 | 1.6 | 4.8 | 4.5 | ||||||||||||
Total Utility Group | 24.2 | 20.1 | 79.3 | 76.1 | ||||||||||||
Nonutility Group | ||||||||||||||||
Infrastructure Services | 7.9 | 8.4 | 14.8 | 11.4 | ||||||||||||
Energy Services | (0.8 | ) | — | (2.2 | ) | (1.7 | ) | |||||||||
Coal Mining | (3.7 | ) | 2.5 | (9.7 | ) | 2.2 | ||||||||||
Other Businesses | (0.2 | ) | — | (0.5 | ) | 0.1 | ||||||||||
Nonutility Group, excluding ProLiance | 3.2 | 10.9 | 2.4 | 12.0 | ||||||||||||
Corporate and Other | (0.3 | ) | (0.2 | ) | (0.2 | ) | (0.1 | ) | ||||||||
Vectren Consolidated, excluding ProLiance | $ | 27.1 | $ | 30.8 | $ | 81.5 | $ | 88.0 | ||||||||
ProLiance | (32.9 | ) | (5.2 | ) | (37.5 | ) | (11.1 | ) | ||||||||
Vectren Consolidated | $ | (5.8 | ) | $ | 25.6 | $ | 44.0 | $ | 76.9 | |||||||
EARNINGS PER SHARE: | ||||||||||||||||
Utility Group | $ | 0.29 | $ | 0.24 | $ | 0.96 | $ | 0.93 | ||||||||
Nonutility Group, excluding ProLiance | 0.04 | 0.14 | 0.03 | 0.15 | ||||||||||||
Corporate and Other | — | — | — | — | ||||||||||||
EPS, excluding ProLiance | $ | 0.33 | $ | 0.38 | $ | 0.99 | $ | 1.08 | ||||||||
ProLiance | (0.40 | ) | (0.07 | ) | (0.46 | ) | (0.14 | ) | ||||||||
Reported EPS | $ | (0.07 | ) | $ | 0.31 | $ | 0.53 | $ | 0.94 | |||||||
VECTREN CORPORATION | ||||||||||||||||
AND SUBSIDIARY COMPANIES | ||||||||||||||||
SELECTED GAS DISTRIBUTION | ||||||||||||||||
OPERATING STATISTICS | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
GAS UTILITY (Millions): | ||||||||||||||||
Residential Margin | $ | 53.2 | $ | 52.1 | $ | 144.7 | $ | 142.5 | ||||||||
Commercial Margin | 13.3 | 12.8 | 42.3 | 40.2 | ||||||||||||
Industrial Margin | 12.5 | 12.1 | 29.8 | 27.9 | ||||||||||||
Other Margin | 2.4 | 2.0 | 5.4 | 5.4 | ||||||||||||
Regulatory Expense Recovery Mechanisms | $ | 5.9 | $ | 5.2 | $ | 23.8 | $ | 23.4 | ||||||||
Total Gas Utility Margin | 87.3 | 84.2 | 246.0 | 239.4 | ||||||||||||
Cost of Gas Sold | $ | 50.7 | $ | 31.8 | $ | 207.9 | $ | 168.9 | ||||||||
Total Gas Utility Revenue | $ | 138.0 | $ | 116.0 | $ | 453.9 | $ | 408.3 | ||||||||
GAS SOLD & TRANSPORTED (MMDth): | ||||||||||||||||
Residential | 8.2 | 6.8 | 46.8 | 35.6 | ||||||||||||
Commercial | 3.8 | 3.4 | 20.3 | 15.4 | ||||||||||||
Industrial | 25.1 | 24.3 | 56.1 | 52.1 | ||||||||||||
37.1 | 34.5 | 123.2 | 103.1 | |||||||||||||
AVERAGE GAS CUSTOMERS | ||||||||||||||||
Residential | 906,179 | 897,821 | 909,786 | 903,281 | ||||||||||||
Commercial | 84,285 | 82,579 | 84,628 | 83,117 | ||||||||||||
Industrial | 1,676 | 1,665 | 1,676 | 1,660 | ||||||||||||
992,140 | 982,065 | 996,090 | 988,058 | |||||||||||||
YTD WEATHER AS A PERCENT OF NORMAL: | ||||||||||||||||
Heating Degree Days (Ohio) | 88 | % | 81 | % | 103 | % | 82 | % | ||||||||
VECTREN CORPORATION | ||||||||||||||||
AND SUBSIDIARY COMPANIES | ||||||||||||||||
SELECTED ELECTRIC | ||||||||||||||||
OPERATING STATISTICS | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
ELECTRIC UTILITY (Millions): | ||||||||||||||||
Residential Margin | $ | 33.9 | $ | 38.0 | $ | 70.2 | $ | 71.8 | ||||||||
Commercial Margin | 26.6 | 27.4 | 51.0 | 51.3 | ||||||||||||
Industrial Margin | 27.8 | 28.0 | 53.9 | 54.6 | ||||||||||||
Other Margin | 0.9 | (0.3 | ) | 1.7 | 0.5 | |||||||||||
Regulatory Expense Recovery Mechanisms | 2.0 | 1.3 | 4.5 | 2.0 | ||||||||||||
Wholesale and Transmission | 9.6 | 7.9 | 18.8 | 16.8 | ||||||||||||
Total Electric Utility Margin | 100.8 | 102.3 | 200.1 | 197.0 | ||||||||||||
Cost of Fuel & Purchased Power | 53.9 | 47.0 | 104.1 | 91.7 | ||||||||||||
Total Electric Utility Revenue | $ | 154.7 | $ | 149.3 | $ | 304.2 | $ | 288.7 | ||||||||
ELECTRICITY SOLD (GWh): | ||||||||||||||||
Residential | 307.2 | 346.2 | 679.4 | 684.6 | ||||||||||||
Commercial | 324.0 | 347.1 | 623.1 | 639.8 | ||||||||||||
Industrial | 698.0 | 713.4 | 1,357.3 | 1,395.1 | ||||||||||||
Other Sales - Street Lighting | 4.8 | 4.8 | 10.6 | 10.7 | ||||||||||||
Total Retail | 1,334.0 | 1,411.5 | 2,670.4 | 2,730.2 | ||||||||||||
Wholesale | 187.2 | 76.0 | 263.6 | 124.7 | ||||||||||||
1,521.2 | 1,487.5 | 2,934.0 | 2,854.9 | |||||||||||||
AVERAGE ELECTRIC CUSTOMERS | ||||||||||||||||
Residential | 123,717 | 123,225 | 123,712 | 123,258 | ||||||||||||
Commercial | 18,366 | 18,285 | 18,360 | 18,268 | ||||||||||||
Industrial | 114 | 115 | 115 | 115 | ||||||||||||
Other | 36 | 33 | 36 | 33 | ||||||||||||
142,233 | 141,658 | 142,223 | 141,674 | |||||||||||||
YTD WEATHER AS A PERCENT OF NORMAL: | ||||||||||||||||
Cooling Degree Days (Indiana) | 107 | % | 146 | % | 106 | % | 156 | % | ||||||||
Heating Degree Days (Indiana) | 101 | % | 61 | % | 101 | % | 70 | % | ||||||||