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8-K - 8-K - VECTREN CORPa8k-2014q1earningsrelease.htm
EX-99.3 - EXHIBIT - VECTREN CORPa331148k-exhibit993forward.htm
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EXHIBIT 99.2


VECTREN CORPORATION
AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited - in millions, except per share amounts)
 
 
 
 
 
 
 
Three Months Ended
 
 
March 31,
 
 
2014
 
2013
 
 
 
 
 
OPERATING REVENUES:
 
 
 
 
   Gas Utility
 
$
443.6

 
$
315.9

   Electric utility
 
163.0

 
149.5

   Nonutility
 
190.2

 
235.2

      Total operating revenues
 
796.8


700.6

 
 
 
 
 
OPERATING EXPENSES:
 
 
 
 
   Cost of gas sold
 
270.9

 
157.2

   Cost of fuel and purchased power
 
57.0

 
50.2

   Cost of nonutility revenues
 
67.7

 
86.4

   Other operating
 
207.6

 
215.6

   Depreciation and amortization
 
73.8

 
66.2

   Taxes other than income taxes
 
20.8

 
18.2

      Total operating expenses
 
697.8


593.8

 
 
 
 
 
OPERATING INCOME
 
99.0


106.8

 
 
 
 
 
OTHER INCOME (EXPENSE):
 
 
 
 
   Equity in (losses) of unconsolidated affiliates
 
(0.1
)
 
(6.7
)
   Other income - net
 
4.3

 
2.9

      Total other income (expense)
 
4.2


(3.8
)
 
 
 
 
 
INTEREST EXPENSE
 
22.1

 
23.5

 
 
 
 
 
INCOME BEFORE INCOME TAXES
 
81.1


79.5

 
 
 
 
 
INCOME TAXES
 
29.9

 
29.7

 
 
 
 
 
NET INCOME
 
$
51.2


$
49.8

 
 
 
 
 
 
 
 
 
 
AVERAGE COMMON SHARES OUTSTANDING
 
82.4

 
82.2

DILUTED COMMON SHARES OUTSTANDING
 
82.5

 
82.3

 
 
 
 
 
EARNINGS PER SHARE OF COMMON STOCK
 
 
 
 
  BASIC
 
$
0.62

 
$
0.61

 
 
 
 
 
  DILUTED
 
$
0.62

 
$
0.61

 
 
 
 
 



EXHIBIT 99.2

VECTREN UTILITY HOLDINGS
AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited - in millions)
 
 
 
 
 
 
 
Three Months Ended
 
 
March 31,
 
 
2014
 
2013
 
 
 
 
 
OPERATING REVENUES:
 
 
 
 
   Gas utility
 
$
443.6

 
$
315.9

   Electric utility
 
163.0

 
149.5

   Other
 

 
0.1

      Total operating revenues
 
606.6


465.5

 
 
 
 
 
OPERATING EXPENSES:
 
 
 
 
   Cost of gas sold
 
270.9

 
157.2

   Cost of fuel and purchased power
 
57.0

 
50.2

   Other operating
 
98.3

 
86.8

   Depreciation and amortization
 
49.9

 
48.4

   Taxes other than income taxes
 
20.1

 
17.5

      Total operating expenses
 
496.2


360.1

 
 
 
 
 
OPERATING INCOME
 
110.4


105.4

 
 
 
 
 
OTHER INCOME - NET
 
3.9

 
1.8

 
 
 
 
 
INTEREST EXPENSE
 
16.7

 
17.9

 
 
 
 
 
INCOME BEFORE INCOME TAXES
 
97.6


89.3

 
 
 
 
 
INCOME TAXES
 
36.3

 
34.2

 
 
 
 
 
NET INCOME
 
$
61.3


$
55.1

 
 
 
 
 



EXHIBIT 99.2

VECTREN CORPORATION
AND SUBSIDIARY COMPANIES
CONSOLIDATED BALANCE SHEETS
(Unaudited - in millions)
 
 
As of
 
 
March 31,
 
December 31,
 
 
2014
 
2013
 
 
 
 
 
ASSETS
 
 
 
 
Current Assets
 
 
 
 
  Cash & cash equivalents
 
$
54.5

 
$
21.5

  Accounts receivable - less reserves of $8.2 &
 
 
 
 
   $6.8, respectively
 
272.4

 
259.2

  Accrued unbilled revenues
 
123.4

 
134.2

  Inventories
 
105.3

 
134.4

  Recoverable fuel & natural gas costs
 
27.1

 
5.5

  Prepayments & other current assets
 
30.0

 
75.6

    Total current assets
 
612.7


630.4

 
 
 
 
 
Utility Plant
 
 
 
 
  Original cost
 
5,438.9

 
5,389.6

  Less: accumulated depreciation & amortization
 
2,198.8

 
2,165.3

    Net utility plant
 
3,240.1


3,224.3

 
 
 
 
 
  Investments in unconsolidated affiliates
 
23.9

 
24.0

  Other utility & corporate investments
 
38.2

 
38.1

  Other nonutility investments
 
34.0

 
33.8

  Nonutility plant - net
 
655.5

 
657.2

  Goodwill - net
 
262.3

 
262.3

  Regulatory assets
 
171.6

 
193.4

  Other assets
 
37.5

 
39.1

    TOTAL ASSETS
 
$
5,075.8


$
5,102.6

 
 
 
 
 
LIABILITIES & SHAREHOLDERS' EQUITY
 
 
 
 
Current Liabilities
 
 
 
 
  Accounts payable
 
$
206.9

 
$
227.2

  Refundable fuel & natural gas costs
 

 
2.6

  Accrued liabilities
 
201.4

 
182.1

  Short-term borrowings
 
54.2

 
68.6

  Current maturities of long-term debt
 
5.0

 
30.0

    Total current liabilities
 
467.5

 
510.5

 
 
 
 
 
Long-term Debt - Net of Current Maturities
 
1,772.2

 
1,777.1

 
 
 
 
 
Deferred Credits & Other Liabilities
 
 
 
 
  Deferred income taxes
 
698.8

 
707.4

  Regulatory liabilities
 
393.4

 
387.3

  Deferred credits & other liabilities
 
166.3

 
166.0

    Total deferred credits & other liabilities
 
1,258.5


1,260.7

 
 
 
 
 
Common Shareholders' Equity
 
 
 
 
  Common stock (no par value) – issued & outstanding
 
 
 
 
   82.5 and 82.4 shares, respectively
 
711.1

 
709.3

  Retained earnings
 
867.2

 
845.7

  Accumulated other comprehensive (loss)
 
(0.7
)
 
(0.7
)
    Total common shareholders' equity
 
1,577.6


1,554.3

TOTAL LIABILITIES & SHAREHOLDERS' EQUITY
 
$
5,075.8


$
5,102.6





EXHIBIT 99.2

VECTREN CORPORATION
AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Millions - Unaudited)
 
 
 
 
 
Three Months Ended
 
 
March 31,
 
 
2014
 
2013
 
 
 
 
 
CASH FLOWS FROM OPERATING ACTIVITIES:
 
 
 
 
  Net income
 
$
51.2

 
$
49.8

  Adjustments to reconcile net income to cash from operating activities:
 
 
 
 
    Depreciation & amortization
 
73.8

 
66.2

    Deferred income taxes & investment tax credits
 
5.7

 
14.2

    Equity in losses of unconsolidated affiliates
 
0.1

 
6.7

    Provision for uncollectible accounts
 
2.3

 
2.4

    Expense portion of pension & postretirement benefit cost
 
1.0

 
2.2

    Other non-cash charges - net
 
2.9

 
3.5

  Changes in working capital accounts:
 
 
 
 
     Accounts receivable & accrued unbilled revenues
 
(4.9
)
 
(30.5
)
    Inventories
 
29.1

 
35.1

    Recoverable/refundable fuel & natural gas costs
 
(24.2
)
 
15.1

    Prepayments & other current assets
 
38.4

 
31.3

    Accounts payable, including to affiliated companies
 
(20.0
)
 
(16.2
)
    Accrued liabilities
 
19.2

 
3.0

  Employer contributions to pension & postretirement plans
 
(0.9
)
 
(3.4
)
  Changes in noncurrent assets & investments
 
9.1

 
5.0

  Changes in noncurrent liabilities
 
(0.8
)
 
1.1

    Net cash provided by operating activities
 
182.0


185.5

 
 
 
 
 
CASH FLOWS FROM FINANCING ACTIVITIES:
 
 

 
 

 Proceeds from:
 
 

 
 

    Dividend reinvestment plan & other common stock issuances
 
1.7

 
2.3

  Requirements for:
 
 
 
 
    Dividends on common stock
 
(29.7
)
 
(29.2
)
    Retirement of long-term debt
 
(30.0
)
 
(0.4
)
  Net change in short-term borrowings
 
(14.4
)
 
(85.2
)
    Net cash used in financing activities
 
(72.4
)

(112.5
)
 
 
 
 
 
CASH FLOWS FROM INVESTING ACTIVITIES:
 
 

 
 

  Proceeds from:
 
 
 
 
    Other collections
 
1.1

 
0.3

  Requirements for:
 
 
 
 
    Capital expenditures, excluding AFUDC equity
 
(77.7
)
 
(80.4
)
    Other Investments
 

 
(0.3
)
    Net cash used in investing activities
 
(76.6
)

(80.4
)
 
 
 
 
 
Net change in cash & cash equivalents
 
33.0


(7.4
)
Cash & cash equivalents at beginning of period
 
21.5

 
19.5

Cash & cash equivalents at end of period
 
$
54.5


$
12.1




EXHIBIT 99.2

VECTREN CORPORATION
AND SUBSIDIARY COMPANIES
HIGHLIGHTS
(Unaudited - in millions, except per share amounts)
 
 
 
 
 
 
 
Three Months Ended
 
 
March 31,
 
 
2014
 
2013
 
 
 
 
 
REPORTED EARNINGS:
 
 
 
 
Utility Group
 
 
 
 
Gas Utility Services
 
$
38.3

 
$
38.1

Electric Utility Services
 
19.3

 
14.6

Other Operations
 
3.7

 
2.4

Total Utility Group
 
61.3


55.1

 
 
 
 
 
Nonutility Group
 
 
 
 
Infrastructure Services
 
(5.3
)
 
6.9

Energy Services
 
(3.0
)
 
(1.4
)
Coal Mining
 
(1.1
)
 
(6.0
)
Other Businesses
 
(0.3
)
 
(0.3
)
Nonutility Group, excluding ProLiance (*)
 
(9.7
)

(0.8
)
 
 
 
 
 
Corporate and Other
 
(0.4
)
 
0.1

 
 
 
 
 
Vectren Consolidated, excluding ProLiance (*)
 
$
51.2


$
54.4

 
 
 
 
 
ProLiance
 

 
(4.6
)
 
 
 
 
 
Vectren Consolidated
 
$
51.2


$
49.8

 
 
 
 
 
EARNINGS PER SHARE:
 
 
 
 
Utility Group
 
$
0.74

 
$
0.67

Nonutility Group, excluding ProLiance (*)
 
(0.12
)
 
(0.01
)
Corporate and Other
 

 

 
 
 
 
 
EPS, excluding ProLiance (*)
 
$
0.62


$
0.66

 
 
 
 
 
ProLiance
 

 
(0.05
)
 
 
 
 
 
Reported EPS
 
$
0.62


$
0.61

 
 
 
 
 
 
 
 
 
 
(*) Excludes ProLiance in 2013
 
 
 
 



EXHIBIT 99.2

VECTREN CORPORATION
AND SUBSIDIARY COMPANIES
SELECTED GAS DISTRIBUTION
OPERATING STATISTICS
(Unaudited)
 
 
 
 
 
 
 
Three Months Ended
 
 
March 31,
 
 
2014
 
2013
 
 
 
 
 
GAS UTILITY (Millions):
 
 
 
 
  Residential Margin
 
$
92.9

 
$
91.5

  Commercial Margin
 
30.3

 
29.0

  Industrial Margin
 
18.8

 
17.3

  Other Margin
 
3.6

 
3.0

  Regulatory Expense Recovery Mechanisms
 
27.1

 
17.9

Total Gas Utility Margin
 
172.7


158.7

Cost of Gas Sold
 
270.9

 
157.2

Total Gas Utility Revenue
 
$
443.6


$
315.9

 
 
 
 
 
GAS SOLD & TRANSPORTED (MMDth):
 
 
 
 
   Residential
 
45.7

 
38.6

   Commercial
 
19.9

 
16.5

   Industrial
 
36.0

 
31.0

 
 
101.6


86.1

 
 
 
 
 
AVERAGE GAS CUSTOMERS
 
 
 
 
   Residential
 
921,285

 
913,395

   Commercial
 
85,496

 
84,970

   Industrial
 
1,690

 
1,675

 
 
1,008,471


1,000,040

 
 
 
 
 
YTD WEATHER AS A PERCENT OF NORMAL:
 
 
 
 
Heating Degree Days (Ohio)
 
122
%
 
107
%



EXHIBIT 99.2

VECTREN CORPORATION
AND SUBSIDIARY COMPANIES
SELECTED ELECTRIC
OPERATING STATISTICS
(Unaudited)
 
 
 
 
 
 
 
Three Months Ended
 
 
March 31,
 
 
2014
 
2013
 
 
 
 
 
ELECTRIC UTILITY (Millions):
 
 
 
 
     Residential Margin
 
$
39.1

 
$
36.3

     Commercial Margin
 
25.2

 
24.4

     Industrial Margin
 
26.0

 
26.1

     Other Margin
 
0.9

 
0.8

Regulatory Expense Recovery Mechanisms
 
4.8

 
2.5

Wholesale and Transmission
 
10.0

 
9.2

Total Electric Utility Margin
 
106.0


99.3

Cost of Fuel & Purchased Power
 
57.0

 
50.2

Total Electric Utility Revenue
 
$
163.0


$
149.5

 
 
 
 
 
ELECTRICITY SOLD (GWh):
 
 
 
 
Residential
 
412.0

 
372.2

Commercial
 
307.1

 
299.1

Industrial
 
660.1

 
659.3

Other Sales - Street Lighting
 
6.0

 
5.8

Total Retail
 
1,385.2


1,336.4

 Wholesale
 
246.1

 
76.4

 
 
1,631.3


1,412.8

 
 
 
 
 
AVERAGE ELECTRIC CUSTOMERS
 
 
 
 
Residential
 
124,448

 
123,708

Commercial
 
18,420

 
18,354

Industrial
 
117

 
115

Other
 
37

 
36

 
 
143,022


142,213

 
 
 
 
 
 
 
 
 
 
YTD WEATHER AS A PERCENT OF NORMAL:
 
 
 
 
Cooling Degree Days (Indiana)
 
N/A

 
N/A

Heating Degree Days (Indiana)
 
115
%
 
101
%