Attached files
| file | filename |
|---|---|
| 8-K - 8-K - VECTREN CORP | a8k-2014annualearningsrele.htm |
| EX-99.3 - EXHIBIT 99.3 - VECTREN CORP | a1231148k-exhibit993forwar.htm |
| EX-99.1 - EXHIBIT 99.1 - VECTREN CORP | a1231148k-exhibit991pressr.htm |
VECTREN CORPORATION | ||||||||||||||||
AND SUBSIDIARY COMPANIES | ||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||
(Unaudited - in millions, except per share amounts) | ||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
OPERATING REVENUES: | ||||||||||||||||
Gas utility | $ | 263.5 | $ | 254.2 | $ | 944.6 | $ | 810.0 | ||||||||
Electric utility | 143.9 | 149.3 | 624.8 | 619.3 | ||||||||||||
Nonutility | 269.4 | 276.5 | 1,042.3 | 1,061.9 | ||||||||||||
Total operating revenues | 676.8 | 680.0 | 2,611.7 | 2,491.2 | ||||||||||||
OPERATING EXPENSES: | ||||||||||||||||
Cost of gas sold | 125.3 | 122.7 | 468.7 | 358.1 | ||||||||||||
Cost of fuel and purchased power | 46.4 | 48.4 | 201.8 | 202.9 | ||||||||||||
Cost of nonutility revenues | 86.7 | 95.3 | 346.4 | 366.7 | ||||||||||||
Other operating | 242.3 | 239.1 | 943.4 | 891.6 | ||||||||||||
Depreciation and amortization | 62.4 | 72.1 | 273.4 | 277.8 | ||||||||||||
Taxes other than income taxes | 16.6 | 16.8 | 63.5 | 60.5 | ||||||||||||
Total operating expenses | 579.7 | 594.4 | 2,297.2 | 2,157.6 | ||||||||||||
OPERATING INCOME | 97.1 | 85.6 | 314.5 | 333.6 | ||||||||||||
OTHER INCOME (EXPENSE): | ||||||||||||||||
Equity in earnings (losses) of unconsolidated affiliates | 0.1 | (2.1 | ) | 0.5 | (59.7 | ) | ||||||||||
Other income - net | 3.9 | 8.7 | 19.7 | 17.7 | ||||||||||||
Total other income (expense) | 4.0 | 6.6 | 20.2 | (42.0 | ) | |||||||||||
INTEREST EXPENSE | 21.0 | 21.6 | 86.7 | 87.9 | ||||||||||||
INCOME BEFORE INCOME TAXES | 80.1 | 70.6 | 248.0 | 203.7 | ||||||||||||
INCOME TAXES | 23.6 | 20.8 | 81.1 | 67.1 | ||||||||||||
NET INCOME | $ | 56.5 | $ | 49.8 | $ | 166.9 | $ | 136.6 | ||||||||
AVERAGE COMMON SHARES OUTSTANDING | 82.6 | 82.4 | 82.5 | 82.3 | ||||||||||||
DILUTED COMMON SHARES OUTSTANDING | 82.6 | 82.4 | 82.5 | 82.4 | ||||||||||||
EARNINGS PER SHARE OF COMMON STOCK | ||||||||||||||||
BASIC | $ | 0.68 | $ | 0.60 | $ | 2.02 | $ | 1.66 | ||||||||
DILUTED | $ | 0.68 | $ | 0.60 | $ | 2.02 | $ | 1.66 | ||||||||
VECTREN UTILITY HOLDINGS | ||||||||||||||||
AND SUBSIDIARY COMPANIES | ||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||
(Unaudited - in millions) | ||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
OPERATING REVENUES: | ||||||||||||||||
Gas utility | $ | 263.5 | $ | 254.2 | $ | 944.6 | $ | 810.0 | ||||||||
Electric utility | 143.9 | 149.3 | 624.8 | 619.3 | ||||||||||||
Other | 0.1 | 0.1 | 0.3 | 0.3 | ||||||||||||
Total operating revenues | 407.5 | 403.6 | 1,569.7 | 1,429.6 | ||||||||||||
OPERATING EXPENSES: | ||||||||||||||||
Cost of gas sold | 125.3 | 122.7 | 468.7 | 358.1 | ||||||||||||
Cost of fuel and purchased power | 46.4 | 48.4 | 201.8 | 202.9 | ||||||||||||
Other operating | 94.9 | 96.5 | 354.5 | 333.4 | ||||||||||||
Depreciation and amortization | 51.6 | 49.6 | 203.1 | 196.4 | ||||||||||||
Taxes other than income taxes | 15.9 | 15.9 | 60.2 | 57.2 | ||||||||||||
Total operating expenses | 334.1 | 333.1 | 1,288.3 | 1,148.0 | ||||||||||||
OPERATING INCOME | 73.4 | 70.5 | 281.4 | 281.6 | ||||||||||||
OTHER INCOME - NET | 4.4 | 3.7 | 16.8 | 10.5 | ||||||||||||
INTEREST EXPENSE | 16.6 | 15.8 | 66.6 | 65.0 | ||||||||||||
INCOME BEFORE INCOME TAXES | 61.2 | 58.4 | 231.6 | 227.1 | ||||||||||||
INCOME TAXES | 21.4 | 21.2 | 83.2 | 85.3 | ||||||||||||
NET INCOME | $ | 39.8 | $ | 37.2 | $ | 148.4 | $ | 141.8 | ||||||||
VECTREN CORPORATION | ||||||||
AND SUBSIDIARY COMPANIES | ||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||
(Unaudited - in millions) | ||||||||
December 31, | December 31, | |||||||
2014 | 2013 | |||||||
ASSETS | ||||||||
Current Assets | ||||||||
Cash & cash equivalents | $ | 86.4 | $ | 21.5 | ||||
Accounts receivable - less reserves of $6.0 & | ||||||||
$6.8, respectively | 196.0 | 259.2 | ||||||
Accrued unbilled revenues | 164.8 | 134.2 | ||||||
Inventories | 118.5 | 134.4 | ||||||
Recoverable fuel & natural gas costs | 9.8 | 5.5 | ||||||
Prepayments & other current assets | 110.9 | 75.6 | ||||||
Total current assets | 686.4 | 630.4 | ||||||
Utility Plant | ||||||||
Original cost | 5,718.7 | 5,389.6 | ||||||
Less: accumulated depreciation & amortization | 2,279.7 | 2,165.3 | ||||||
Net utility plant | 3,439.0 | 3,224.3 | ||||||
Investments in unconsolidated affiliates | 23.4 | 24.0 | ||||||
Other utility & corporate investments | 37.2 | 38.1 | ||||||
Other nonutility investments | 33.6 | 33.8 | ||||||
Nonutility plant - net | 378.0 | 657.2 | ||||||
Goodwill | 289.9 | 262.3 | ||||||
Regulatory assets | 233.6 | 193.4 | ||||||
Other assets | 41.2 | 39.1 | ||||||
TOTAL ASSETS | $ | 5,162.3 | $ | 5,102.6 | ||||
LIABILITIES & SHAREHOLDERS' EQUITY | ||||||||
Current Liabilities | ||||||||
Accounts payable | $ | 248.9 | $ | 227.2 | ||||
Refundable fuel & natural gas costs | 2.5 | 2.6 | ||||||
Accrued liabilities | 184.9 | 182.1 | ||||||
Short-term borrowings | 156.4 | 68.6 | ||||||
Current maturities of long-term debt | 170.0 | 30.0 | ||||||
Total current liabilities | 762.7 | 510.5 | ||||||
Long-term Debt - Net of Current Maturities | 1,407.3 | 1,777.1 | ||||||
Deferred Income Taxes & Other Liabilities | ||||||||
Deferred income taxes | 741.2 | 707.4 | ||||||
Regulatory liabilities | 410.3 | 387.3 | ||||||
Deferred credits & other liabilities | 234.2 | 166.0 | ||||||
Total deferred credits & other liabilities | 1,385.7 | 1,260.7 | ||||||
Common Shareholders' Equity | ||||||||
Common stock (no par value) – issued & outstanding | ||||||||
82.6 and 82.4 shares, respectively | 715.7 | 709.3 | ||||||
Retained earnings | 892.2 | 845.7 | ||||||
Accumulated other comprehensive (loss) | (1.3 | ) | (0.7 | ) | ||||
Total common shareholders' equity | 1,606.6 | 1,554.3 | ||||||
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY | $ | 5,162.3 | $ | 5,102.6 | ||||
VECTREN CORPORATION | ||||||||
AND SUBSIDIARY COMPANIES | ||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
(Millions - Unaudited) | ||||||||
Twelve Months Ended | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
Net income | $ | 166.9 | $ | 136.6 | ||||
Adjustments to reconcile net income to cash from operating activities: | ||||||||
Depreciation & amortization | 273.4 | 277.8 | ||||||
Deferred income taxes & investment tax credits | 37.9 | 43.3 | ||||||
Equity in (earnings) losses of unconsolidated affiliates | (0.5 | ) | 59.7 | |||||
Provision for uncollectible accounts | 7.3 | 6.8 | ||||||
Expense portion of pension & postretirement benefit cost | 6.6 | 9.9 | ||||||
Other non-cash charges - net | 5.8 | 5.8 | ||||||
Loss on sale of business | 41.8 | — | ||||||
Gain on revaluation of contingent consideration | (14.8 | ) | — | |||||
Changes in working capital accounts: | ||||||||
Accounts receivable & accrued unbilled revenues | 11.8 | 1.5 | ||||||
Inventories | (22.5 | ) | 24.2 | |||||
Recoverable/refundable fuel & natural gas costs | (4.4 | ) | 22.4 | |||||
Prepayments & other current assets | (35.2 | ) | 12.8 | |||||
Accounts payable, including to affiliated companies | 20.2 | 6.8 | ||||||
Accrued liabilities | 12.3 | (1.2 | ) | |||||
Unconsolidated affiliate dividends | — | 1.1 | ||||||
Employer contributions to pension & postretirement plans | (5.1 | ) | (13.7 | ) | ||||
Changes in noncurrent assets | 0.1 | (2.1 | ) | |||||
Changes in noncurrent liabilities | (13.4 | ) | (4.7 | ) | ||||
Net cash provided by operating activities | 488.2 | 587.0 | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
Proceeds from: | ||||||||
Long-term debt, net of issuance costs | 62.4 | 481.7 | ||||||
Dividend reinvestment plan & other common stock issuances | 6.1 | 6.9 | ||||||
Requirements for: | ||||||||
Dividends on common stock | (120.4 | ) | (117.3 | ) | ||||
Retirement of long-term debt | (293.6 | ) | (338.9 | ) | ||||
Other financing activities | 0.1 | (2.1 | ) | |||||
Net change in short-term borrowings | 87.8 | (210.2 | ) | |||||
Net cash used in financing activities | (257.6 | ) | (179.9 | ) | ||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
Proceeds from: | ||||||||
Sale of business | 311.2 | — | ||||||
Unconsolidated affiliate distributions | 1.1 | — | ||||||
Other collections | 8.4 | 5.6 | ||||||
Requirements for: | ||||||||
Transaction costs for sale of business | (9.5 | ) | — | |||||
Capital expenditures, excluding AFUDC equity | (448.3 | ) | (393.4 | ) | ||||
Business acquistion | (28.6 | ) | — | |||||
Other investments | — | (17.3 | ) | |||||
Net cash used in investing activities | (165.7 | ) | (405.1 | ) | ||||
Net change in cash & cash equivalents | 64.9 | 2.0 | ||||||
Cash & cash equivalents at beginning of period | 21.5 | 19.5 | ||||||
Cash & cash equivalents at end of period | $ | 86.4 | $ | 21.5 | ||||
VECTREN CORPORATION | ||||||||||||||||
AND SUBSIDIARY COMPANIES | ||||||||||||||||
HIGHLIGHTS | ||||||||||||||||
(Unaudited - in millions, except per share amounts) | ||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
REPORTED EARNINGS: | ||||||||||||||||
Utility Group | ||||||||||||||||
Gas Utility Services | $ | 23.1 | $ | 18.5 | $ | 57.0 | $ | 55.7 | ||||||||
Electric Utility Services | 13.8 | 15.7 | 79.7 | 75.8 | ||||||||||||
Other Operations | 2.9 | 3.0 | 11.7 | 10.3 | ||||||||||||
Total Utility Group | 39.8 | 37.2 | 148.4 | 141.8 | ||||||||||||
Nonutility Group | ||||||||||||||||
Infrastructure Services | 15.5 | 13.8 | 43.1 | 49.0 | ||||||||||||
Energy Services | 1.5 | 3.0 | (3.2 | ) | 1.0 | |||||||||||
Coal Mining | — | (4.0 | ) | — | (16.0 | ) | ||||||||||
Other Businesses | (0.4 | ) | 0.3 | (0.8 | ) | (1.0 | ) | |||||||||
Nonutility Group, excluding Coal Mining and ProLiance (*) | 16.6 | 13.1 | 39.1 | 33.0 | ||||||||||||
Corporate and Other | (0.2 | ) | (0.5 | ) | 0.5 | (0.7 | ) | |||||||||
Vectren Consolidated, excluding Coal Mining and ProLiance (*) | $ | 56.2 | $ | 49.8 | $ | 188.0 | $ | 174.1 | ||||||||
Coal Mining | 0.3 | (21.1 | ) | |||||||||||||
ProLiance | — | (37.5 | ) | |||||||||||||
Vectren Consolidated | $ | 56.5 | $ | 49.8 | $ | 166.9 | $ | 136.6 | ||||||||
EARNINGS PER SHARE: | ||||||||||||||||
Utility Group | $ | 0.48 | $ | 0.45 | $ | 1.80 | $ | 1.72 | ||||||||
Nonutility Group, excluding Coal Mining and ProLiance (*) | 0.20 | 0.16 | 0.47 | 0.41 | ||||||||||||
Corporate and Other | — | (0.01 | ) | 0.01 | (0.01 | ) | ||||||||||
EPS, excluding Coal Mining and ProLiance (*) | $ | 0.68 | $ | 0.60 | $ | 2.28 | $ | 2.12 | ||||||||
Coal Mining | — | (0.26 | ) | |||||||||||||
ProLiance | — | (0.46 | ) | |||||||||||||
Reported EPS | $ | 0.68 | $ | 0.60 | $ | 2.02 | $ | 1.66 | ||||||||
(*) Excludes Coal Mining Results in 2014 and ProLiance Results in 2013 - Years of Disposition | ||||||||||||||||
VECTREN CORPORATION | ||||||||||||||||
AND SUBSIDIARY COMPANIES | ||||||||||||||||
SELECTED GAS DISTRIBUTION | ||||||||||||||||
OPERATING STATISTICS | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
GAS UTILITY (Millions): | ||||||||||||||||
Residential Margin | $ | 76.9 | $ | 75.7 | $ | 270.4 | $ | 265.9 | ||||||||
Commercial Margin | 22.2 | 22.0 | 77.0 | 75.2 | ||||||||||||
Industrial Margin | 16.6 | 16.1 | 59.3 | 58.0 | ||||||||||||
Other Margin | 2.4 | 2.1 | 11.1 | 9.7 | ||||||||||||
Regulatory Expense Recovery Mechanisms | 20.1 | 15.6 | 58.1 | 43.1 | ||||||||||||
Total Gas Utility Margin | 138.2 | 131.5 | 475.9 | 451.9 | ||||||||||||
Cost of Gas Sold | 125.3 | 122.7 | 468.7 | 358.1 | ||||||||||||
Total Gas Utility Revenue | $ | 263.5 | $ | 254.2 | $ | 944.6 | $ | 810.0 | ||||||||
GAS SOLD & TRANSPORTED (MMDth): | ||||||||||||||||
Residential | 26.4 | 26.5 | 84.1 | 77.1 | ||||||||||||
Commercial | 11.9 | 11.8 | 38.5 | 34.8 | ||||||||||||
Industrial | 33.4 | 31.0 | 116.6 | 111.7 | ||||||||||||
71.7 | 69.3 | 239.2 | 223.6 | |||||||||||||
AVERAGE GAS CUSTOMERS | ||||||||||||||||
Residential | 914,271 | 908,857 | 911,965 | 906,168 | ||||||||||||
Commercial | 84,608 | 84,348 | 84,559 | 84,239 | ||||||||||||
Industrial | 1,706 | 1,674 | 1,696 | 1,675 | ||||||||||||
1,000,585 | 994,879 | 998,220 | 992,082 | |||||||||||||
WEATHER AS A PERCENT OF NORMAL (ANNUALIZED): | ||||||||||||||||
Heating Degree Days (Ohio) | 101 | % | 101 | % | 110 | % | 103 | % | ||||||||
VECTREN CORPORATION | ||||||||||||||||
AND SUBSIDIARY COMPANIES | ||||||||||||||||
SELECTED ELECTRIC | ||||||||||||||||
OPERATING STATISTICS | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
ELECTRIC UTILITY (Millions): | ||||||||||||||||
Residential Margin | $ | 32.9 | $ | 34.4 | $ | 153.3 | $ | 150.1 | ||||||||
Commercial Margin | 26.2 | 26.4 | 107.5 | 105.7 | ||||||||||||
Industrial Margin | 27.6 | 26.2 | 111.2 | 108.7 | ||||||||||||
Other Margin | 2.6 | 1.7 | 5.5 | 4.8 | ||||||||||||
Regulatory Expense Recovery Mechanisms | 2.3 | 3.8 | 11.6 | 10.5 | ||||||||||||
Wholesale and Transmission | 5.9 | 8.4 | 33.9 | 36.6 | ||||||||||||
Total Electric Utility Margin | 97.5 | 100.9 | 423.0 | 416.4 | ||||||||||||
Cost of Fuel & Purchased Power | 46.4 | 48.4 | 201.8 | 202.9 | ||||||||||||
Total Electric Utility Revenue | $ | 143.9 | $ | 149.3 | $ | 624.8 | $ | 619.3 | ||||||||
ELECTRICITY SOLD (GWh): | ||||||||||||||||
Residential | 308.4 | 325.7 | 1,455.3 | 1,425.8 | ||||||||||||
Commercial | 317.4 | 324.3 | 1,307.0 | 1,296.3 | ||||||||||||
Industrial | 703.0 | 648.2 | 2,804.6 | 2,735.2 | ||||||||||||
Other Sales - Street Lighting | 6.4 | 6.3 | 22.6 | 21.8 | ||||||||||||
Total Retail | 1,335.2 | 1,304.5 | 5,589.5 | 5,479.1 | ||||||||||||
Wholesale | 64.2 | 182.6 | 651.1 | 514.4 | ||||||||||||
1,399.4 | 1,487.1 | 6,240.6 | 5,993.5 | |||||||||||||
AVERAGE ELECTRIC CUSTOMERS | ||||||||||||||||
Residential | 124,409 | 123,989 | 124,301 | 123,780 | ||||||||||||
Commercial | 18,491 | 18,419 | 18,454 | 18,380 | ||||||||||||
Industrial | 117 | 117 | 117 | 116 | ||||||||||||
Other | 38 | 37 | 38 | 36 | ||||||||||||
143,055 | 142,562 | 142,910 | 142,312 | |||||||||||||
WEATHER AS A PERCENT OF NORMAL (ANNUALIZED): | ||||||||||||||||
Cooling Degree Days (Indiana) | 100 | % | 102 | % | 104 | % | 103 | % | ||||||||
Heating Degree Days (Indiana) | 101 | % | 102 | % | 107 | % | 102 | % | ||||||||