- Utility second quarter earnings were $16.2 million, or $0.20 per share,
in 2010 compared to $6.6 million, or $0.08 per share, in 2009. Year to
date, utility earnings were $71.6 million, or $0.89 per share, compared to
$62.8 million, or $0.78 per share, in 2009.
- Nonutility losses were ($7.5) million, or ($0.09) per share in the
second quarter of 2010, compared to losses of ($13.0) million, or ($0.16)
per share, in 2009. Year to date, nonutility earnings were $0.3 million,
compared to $3.5 million, or $0.04 per share, in 2009. The 2010 second
quarter and year to date periods were impacted by charges related to legacy
investments totaling ($4.0) million after tax, or ($0.05) per share, and
($6.8) million after tax, or ($0.08) per share, respectively. The 2009
results for both the quarter and year to date periods include an ($11.9)
million after tax, or ($0.15) per share, charge related to an investment by
ProLiance Energy, LLC in Liberty Gas Storage, LLC.
Gas utility margins were $81.4 million and $251.7 million for the three and six months ended June 30, 2010. Following are reconciliations of the changes from 2009:
Three Year to
Months Date
------- -------
2009 Gas Utility Margin $ 81.1 $ 253.9
Impact of Ohio territory straight fixed variable rate
design 2.0 (0.4)
Large customer usage 1.1 2.1
Operating costs directly recovered in margin (2.4) (2.0)
All other, mostly lower miscellaneous revenues due to
lower gas costs (0.4) (1.9)
------- -------
Total change in Gas Utility Margin 0.3 (2.2)
------- -------
2010 Gas Utility Margin $ 81.4 $ 251.7
======= =======
Electric Utility MarginRetail Margin
Electric retail utility margins were $86.6 million and $166.1 million for the three and six months ended June 30, 2010. Following are reconciliations of the changes from 2009:
Three Year to
Months Date
------- -------
2009 Retail Electric Margin $ 78.4 $ 150.7
Weather 2.6 4.0
Return on pollution control and other investments 1.0 2.6
Recovery of tracked MISO and pollution control operating
costs 0.7 2.0
Large customer usage 3.5 6.7
All other 0.4 0.1
------- -------
Total increase in Retail Electric Margin 8.2 15.4
------- -------
2010 Retail Electric Margin $ 86.6 $ 166.1
======= =======
Margin from Wholesale ActivitiesFor the three and six months ended June 30, 2010, wholesale margin was $6.6 million and $14.0 million, representing an increase of $2.6 million and $4.3 million, respectively, compared to 2009. The company earns a return on electric transmission projects constructed by the company in its service territory that meet the criteria of MISO's transmission expansion plans. Margin associated with these projects and other transmission system operations totaled $5.8 million and $10.6 million for the three and six months ended June 30, 2010, respectively, compared to $3.6 million and $6.6 million in both the three and six months ended June 30, 2009. Increases are primarily due to increased investment in qualifying projects. During 2010, margin from off-system sales retained by the company was generally flat compared to the prior year periods. The base rate case effective August 17, 2007, requires that wholesale margin from off-system sales earned above or below $10.5 million be shared equally with customers as measured on a fiscal year ending in August, and results reflect the impact of that sharing. Other Operating Other operating expenses were $71.2 million for the three months ended June 30, 2010, and $152.8 million in the six months ended June 30, 2010. Following are reconciliations of the changes from 2009:
Three Year to
(millions) Months Date
------- -------
2009 Other Operating Expenses $ 78.7 $ 158.0
Operating costs recovered in margin, such as Ohio bad
debt cost recovery, conservation program cost recovery
and clean air related cost recovery (0.8) 1.4
Power plant outage maintenance costs, largely due to
timing (2.9) (4.2)
Indiana uncollectible accounts expense (1.6) (0.9)
Lower deferred compensation expense due to market
fluctuation and other (2.2) (1.5)
------- -------
Total Change in Other Operating Expenses (7.5) (5.2)
------- -------
2010 Other Operating Expenses $ 71.2 $ 152.8
======= =======
Depreciation & Amortization
For the three and six months ended June 30, 2010, depreciation expense was
$46.8 million and $93.3 million, which represents increases of $1.8 million
and $4.4 million compared to 2009. This increase is reflective of utility
expenditures placed into service.
Taxes Other Than Income Taxes
For the three and six months ended June 30, 2010, taxes other than income
taxes were $11.6 million and $33.9 million, respectively, which reflect
decreases of ($1.0) million for the quarter and ($1.5) million year over
year. The decreases are primarily attributable to lower utility receipts,
excise, and usage taxes that are directly offset in margin.
Other Income-Net
Other income-net reflects income of $0.8 million and $3.0 million for the
three and six months ended June 30, 2010, compared to $2.5 million and $4.0
million for the same periods in 2009. The decreases are primarily
attributable to the change in market values associated with investments
related to benefit plans.
Interest Expense
For the three and six months ended June 30, 2010, interest expense was
$20.3 million and $40.6 million, which represents increases of $0.3 million
in the quarter and $1.9 million year over year compared to 2009. These
small increases reflect the impact of long-term financing transactions
completed in 2009, offset by lower interest from less debt outstanding
overall. The long-term financing transactions include a second quarter
issuance by Utility Holdings of $100 million in unsecured eleven year notes
with an interest rate of 6.28 percent and a third quarter completion by
SIGECO of a $22.3 million debt issuance of 31 year tax exempt first
mortgage bonds with an interest rate of 5.4 percent.
Income Taxes
For the three and six months ended June 30, 2010, federal and state income
taxes were $9.7 million and $43.4 million, which represent increases of
$6.2 million and $8.1 million compared to 2009. The higher taxes are
primarily due to increased pretax income. The year to date increase is
also reflective of a lower effective rate in 2009 due to tax adjustments
recorded in 2009.
Nonutility Group Discussion
All amounts included in this section are after tax. Results reported by
company are net of allocated corporate expenses.
Energy Marketing and Services
Energy Marketing and Services is comprised of the company's gas marketing
operations, energy management services, and retail gas supply operations.
Results from Energy Marketing and Services for the quarter ended June 30,
2010, were a loss of ($8.9) million, compared to a loss of ($16.6) million
in 2009. For the six months ended June 30, 2010, earnings were $1.3
million compared to a loss of ($1.1) million in 2009. The 2009 results for
both the quarter and year to date periods include an ($11.9) million after
tax, or ($0.15) per share, charge related to an investment by ProLiance
Energy, LLC in Liberty Gas Storage, LLC.
During the second quarter of 2010, ProLiance operated at a loss of
approximately ($7.0) million compared to a loss of ($14.9) million in 2009.
During the six months ended June 30, 2010, ProLiance operated at a loss of
approximately ($3.1) million compared to a loss of ($8.0) million in 2009.
The $7.9 million increase in the quarter and $4.9 million increase year
over year reflects reduced margins associated with optimizing its
transportation and storage portfolio, due primarily to a reduction of firm
transportation spread values between the production areas and Midwest
market area, offset by the 2009 Liberty charge. The regional basis spread
reduction impacting firm transportation values is due to a number of
factors, some of which may continue into the future. Those factors include
shifting gas flows associated with the completion of new shale gas
production and related infrastructure and the continuation of reduced
industrial demand. ProLiance has structured optimization activities to
remain flexible to maximize potential opportunities if market conditions
improve. ProLiance's storage capacity was 46 Bcf at both June 30, 2010 and
December 31, 2009.
Vectren Source, the company's retail gas marketer, incurred a seasonal loss
of approximately ($1.9) million in the second quarter of 2010, compared to
($1.7) million in 2009. Year to date, Vectren Source has earned $4.4
million in 2010 compared to $6.9 million in 2009. Year to date results
were lower than the prior year, as expected, due to higher margins on
variable priced contracts in the first quarter of 2009. During 2009's
first quarter, revenues on variable priced sales contracts fell more slowly
than gas costs. Vectren Source's customer count at June 30, 2010, was
approximately 205,000 customers, compared to 182,000 equivalent customers
at June 30, 2009.
Coal Mining
Coal Mining mines and sells coal to the company's utility operations and to
third parties through the company's wholly owned subsidiary, Vectren Fuels,
Inc. (Fuels).
Coal Mining earned approximately $1.7 million during the second quarter of
2010, compared to $0.7 million in 2009, an increase of $1.0 million
compared to 2009. Year to date, Coal Mining earned $5.6 million compared
to earnings of $3.4 million in 2009. The increases are primarily due to
lower operating costs, higher revenue per ton, and an increase in tons
sold, offset by an increase in interest expense. The company has seen some
improvement in the current demand and supply imbalance for Illinois Basin
coal during the first half of 2010. The extremely warm weather during the
summer of 2010 has led to some spot coal sale opportunities. Year to date,
the company has orders for 370,000 tons of spot coal with 320,000 tons to
be delivered in the third and fourth quarters of 2010. These sales are
contemplated in the 2010 guidance. Further, there has been some
non-weather related improvement in demand for electricity; however, coal
inventories remain elevated at customer locations. Vectren Fuels continues
to align its production closely with short-term customer needs. Also, the
company is in the process of negotiating a number of new supply contracts
with other customers.
Energy Infrastructure Services
Energy Infrastructure Services provides underground utility infrastructure
construction and repair services through Miller Pipeline Corporation
(Miller) and energy performance contracting and renewable energy services
through Energy Systems Group (ESG). Energy Infrastructure Services earned
$3.7 million in the second quarter of 2010, compared to $3.6 million in
2009. Year to date earnings were $0.4 million in 2010 compared to
earnings of $3.0 million in 2009.
Miller's 2010 second quarter earnings were $2.0 million compared to $0.9
million in 2009. The increase in earnings is due primarily to working
through projects delayed by weather conditions that negatively impacted
construction activities in the Mid-Atlantic and Northeast throughout much
of the first quarter of 2010 and new customer contracts. Year to date,
Miller has incurred a loss of approximately ($1.0) million compared to
earnings of $0.3 million in 2009, reflective of the poor first quarter
weather conditions. As utilities across the country continue to replace
their aging natural gas and wastewater infrastructure and needs for shale
gas infrastructure become more prevalent, Miller is positioned for future
growth.
ESG's 2010 earnings were $1.7 million in the second quarter, compared to
$2.7 million in 2009. ESG earned approximately $1.4 million year to date
in 2010, compared to earnings of $2.7 million in 2009. Increased revenues
in 2010 have resulted from the strong 2009 year end backlog. Second
quarter 2009 results reflect the sale of a renewable energy project. The
project developed by ESG as part of its ongoing renewable energy project
development strategy was a 3.2 megawatt land fill gas facility located in
the company's electric service territory. The sale to the company's
electric utility, as a part of the utilities' strategy to continue to build
a renewable energy portfolio, was approved by the IURC.
At June 30, 2010, ESG's backlog was $82 million, compared to $70 million at
December 31, 2009. The increased backlog reflects substantial work in the
near term and ESG is on track to meet expectations. The national focus on
a comprehensive energy strategy as evidenced by the Energy Independence and
Security Act of 2007 and the American Recovery and Reinvestment Act of 2009
continues to create favorable conditions for ESG's growth and resulting
earnings.
Other Businesses
Other nonutility businesses, which include legacy real estate and other
investments, operated at a loss of ($4.0) million in the second quarter of
2010 as compared to a loss of ($0.7) million in the same quarter in 2009.
The lower results in 2010 were primarily due to a ($4.0) million after tax
charge related to a decline in the fair value of an energy-related
investment originally made in 2004 by Haddington Energy Partners, and
accounted for by the company using the equity method. During the six
months ended June 30, 2010, other nonutility businesses operated at a loss
of ($7.0) million compared to a loss of ($1.8) million in 2009. The lower
results in 2010 reflect the second quarter loss associated with the
Haddington investment along with a first quarter 2010 ($2.9) million after
tax charge related to the reduction in value of a note receivable recorded
in 2002 related to a previously exited business.
Please SEE ATTACHED unaudited schedules for additional financial
information
Live Webcast on August 5, 2010Vectren's financial analyst call will be at 2 p.m. (EDT), August 5, 2010, at which time management will discuss financial results and 2010 earnings guidance. To participate in the call, analysts are asked to dial 1-888-818-6237 and present the conference call ID# 88651568. All interested parties may listen to the live webcast accompanied by a slide presentation at www.vectren.com. A replay of the webcast will be made available at the same location approximately two hours following the conclusion of the meeting. About Vectren
Vectren Corporation is an energy 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 nonutility subsidiaries and affiliates currently offer energy-related products and services to customers throughout the Midwest, Northeast, and Southeast. These include gas marketing and related services; coal production and sales; and energy infrastructure services. To learn more about Vectren, visit www.vectren.com. Forward-Looking Statements
All statements other than statements of historical fact included in this news release are forward-looking statements made in good faith by the company and are intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. Such statements are based on management's beliefs, as well as assumptions made by and information currently available to management and include such words as "believe," "anticipate," "endeavor," "estimate," "expect," "objective," "projection," "forecast," "goal," "likely," and similar expressions intended to identify forward-looking statements. Vectren cautions readers that the assumptions forming the basis for forward-looking statements include many factors that are beyond Vectren's ability to control or estimate precisely and actual results could differ materially from those contained in this document. In addition to any assumptions and other factors referred to specifically in connection with such forward-looking statements, factors that could cause the company's actual results to differ materially from those contemplated in any forward-looking statements include, among others, the following: Factors affecting utility operations such as unusual weather conditions; catastrophic weather-related damage; unusual maintenance or repairs; unanticipated changes to fossil fuel costs; unanticipated changes to gas transportation and storage costs, or availability due to higher demand, shortages, transportation problems or other developments; environmental or pipeline incidents; transmission or distribution incidents; unanticipated changes to electric energy supply costs, or availability due to demand, shortages, transmission problems or other developments; or electric transmission or gas pipeline system constraints. Catastrophic events such as fires, earthquakes, explosions, floods, ice storms, tornados, terrorist acts or other similar occurrences could adversely affect Vectren's facilities, operations, financial condition and results of operations. Increased competition in the energy industry, including the effects of industry restructuring and unbundling. Regulatory factors such as unanticipated changes in rate-setting policies or procedures, recovery of investments and costs made under traditional regulation, and the frequency and timing of rate increases. Financial, regulatory or accounting principles or policies imposed by the Financial Accounting Standards Board; the Securities and Exchange Commission; the Federal Energy Regulatory Commission; state public utility commissions; state entities which regulate electric and natural gas transmission and distribution, natural gas gathering and processing, electric power supply; and similar entities with regulatory oversight. Economic conditions including the effects of an economic downturn, inflation rates, commodity prices, and monetary fluctuations. Economic conditions surrounding the recession, which may be more prolonged and more severe than cyclical downturns, including significantly lower levels of economic activity; uncertainty regarding energy prices and the capital and commodity markets; decreases in demand for natural gas, electricity, coal, and other nonutility products and services; impacts on both gas and electric large customers; lower residential and commercial customer counts; higher operating expenses; and further reductions in the value of certain nonutility real estate and other legacy investments. Increased natural gas and coal commodity prices and the potential impact on customer consumption, uncollectible accounts expense, unaccounted for gas and interest expense. Changing market conditions and a variety of other factors associated with physical energy and financial trading activities including, but not limited to, price, basis, credit, liquidity, volatility, capacity, interest rate, and warranty risks. Direct or indirect effects on the company's business, financial condition, liquidity and results of operations resulting from changes in credit ratings, changes in interest rates, and/or changes in market perceptions of the utility industry and other energy-related industries. The performance of projects undertaken by the company's nonutility businesses and the success of efforts to invest in and develop new opportunities, including but not limited to, the company's coal mining, gas marketing, and energy infrastructure strategies. Factors affecting coal mining operations including MSHA guidelines and interpretations of those guidelines, as well as additional mine regulations and more frequent and broader inspections that could result from the recent mining incidents at coal mines of other companies; geologic, equipment, and operational risks; the ability to execute and negotiate new sales contracts and resolve contract interpretations; volatile coal market prices and demand; supplier and contract miner performance; the availability of key equipment, contract miners and commodities; availability of transportation; and the ability to access/replace coal reserves . Employee or contractor workforce factors including changes in key executives, collective bargaining agreements with union employees, aging workforce issues, work stoppages, or pandemic illness. Legal and regulatory delays and other obstacles associated with mergers, acquisitions and investments in joint ventures. Costs, fines, penalties and other effects of legal and administrative proceedings, settlements, investigations, claims, including, but not limited to, such matters involving compliance with state and federal laws and interpretations of these laws. Changes in or additions to federal, state or local legislative requirements, such as changes in or additions to tax laws or rates, environmental laws, including laws governing greenhouse gases, mandates of sources of renewable energy, and other regulations. More detailed information about these factors is set forth in Vectren's filings with the Securities and Exchange Commission, including Vectren's 2009 annual report on Form 10-K filed on February 26, 2010. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of changes in actual results, changes in assumptions, or other factors affecting such statements.
VECTREN CORPORATION
AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF INCOME
(Millions, except per share amounts)
(Unaudited)
Three Months Ended Six Months Ended
June 30 June 30
---------------- ----------------
2010 2009 2010 2009
------- ------- ------- -------
OPERATING REVENUES:
Gas utility $ 122.9 $ 139.1 $ 591.0 $ 666.5
Electric utility 151.0 132.7 295.9 257.7
Nonutility revenues 128.5 103.7 255.8 246.5
------- ------- ------- -------
Total operating revenues 402.4 375.5 1,142.7 1,170.7
------- ------- ------- -------
OPERATING EXPENSES:
Cost of gas sold 41.5 58.0 339.3 412.6
Cost of fuel and purchased power 57.8 50.3 115.8 97.3
Cost of nonutility revenues 49.4 43.3 109.9 117.5
Other operating 132.3 125.3 261.2 248.0
Depreciation and amortization 57.2 53.0 113.0 104.4
Taxes other than income taxes 12.1 13.2 35.2 36.7
------- ------- ------- -------
Total operating expenses 350.3 343.1 974.4 1,016.5
------- ------- ------- -------
OPERATING INCOME 52.1 32.4 168.3 154.2
OTHER INCOME (EXPENSE):
Equity in earnings (losses) of
unconsolidated affiliates (13.9) (23.3) (5.7) (10.7)
Other income - net 0.9 4.1 0.4 6.5
------- ------- ------- -------
Total other income (expense) (13.0) (19.2) (5.3) (4.2)
------- ------- ------- -------
INTEREST EXPENSE 26.0 25.5 52.0 48.2
------- ------- ------- -------
INCOME (LOSS) BEFORE INCOME TAXES 13.1 (12.3) 111.0 101.8
INCOME TAXES 4.4 (5.6) 39.1 35.7
------- ------- ------- -------
NET INCOME (LOSS) $ 8.7 $ (6.7) $ 71.9 $ 66.1
======= ======= ======= =======
AVERAGE COMMON SHARES OUTSTANDING 81.0 80.7 81.0 80.7
DILUTED COMMON SHARES OUTSTANDING 81.2 80.7 81.2 80.7
EARNINGS (LOSS) PER SHARE OF COMMON
STOCK
BASIC $ 0.11 $ (0.08) $ 0.89 $ 0.82
======= ======= ======= =======
DILUTED $ 0.11 $ (0.08) $ 0.89 $ 0.82
======= ======= ======= =======
VECTREN UTILITY HOLDINGS
AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF INCOME
(Millions)
(Unaudited)
Three Months Six Months
Ended June 30 Ended June 30
----------------- -----------------
2010 2009 2010 2009
-------- -------- -------- --------
OPERATING REVENUES:
Gas utility $ 122.9 $ 139.1 $ 591.0 $ 666.5
Electric utility 151.0 132.7 295.9 257.7
Other 0.4 0.4 0.8 0.8
-------- -------- -------- --------
Total operating revenues 274.3 272.2 887.7 925.0
-------- -------- -------- --------
OPERATING EXPENSES:
Cost of gas sold 41.5 58.0 339.3 412.6
Cost of fuel and purchased power 57.8 50.3 115.8 97.3
Other operating 71.2 78.7 152.8 158.0
Depreciation and amortization 46.8 45.0 93.3 88.9
Taxes other than income taxes 11.6 12.6 33.9 35.4
-------- -------- -------- --------
Total operating expenses 228.9 244.6 735.1 792.2
-------- -------- -------- --------
OPERATING INCOME 45.4 27.6 152.6 132.8
OTHER INCOME - NET 0.8 2.5 3.0 4.0
INTEREST EXPENSE 20.3 20.0 40.6 38.7
-------- -------- -------- --------
INCOME BEFORE INCOME TAXES 25.9 10.1 115.0 98.1
INCOME TAXES 9.7 3.5 43.4 35.3
-------- -------- -------- --------
NET INCOME $ 16.2 $ 6.6 $ 71.6 $ 62.8
======== ======== ======== ========
VECTREN CORPORATION
AND SUBSIDIARY COMPANIES
CONSOLIDATED BALANCE SHEETS
(Millions - Unaudited)
June 30, December 31,
2010 2009
----------- -----------
ASSETS
Current Assets
Cash & cash equivalents $ 16.8 $ 11.9
Accounts receivable - less reserves of $4.7 &
$5.2, respectively 138.7 162.4
Accrued unbilled revenues 58.2 144.7
Inventories 160.3 167.8
Recoverable fuel & natural gas costs 3.2 -
Prepayments & other current assets 76.3 95.1
----------- -----------
Total current assets 453.5 581.9
----------- -----------
Utility Plant
Original cost 4,697.1 4,601.4
Less: accumulated depreciation & amortization 1,779.7 1,722.6
----------- -----------
Net utility plant 2,917.4 2,878.8
----------- -----------
Investments in unconsolidated affiliates 169.9 186.2
Other utility and corporate investments 32.8 33.2
Other nonutility investments 40.6 46.2
Nonutility property - net 486.0 482.6
Goodwill - net 242.0 242.0
Regulatory assets 174.8 187.9
Other assets 29.5 33.0
----------- -----------
TOTAL ASSETS $ 4,546.5 $ 4,671.8
=========== ===========
LIABILITIES & SHAREHOLDERS' EQUITY
Current Liabilities
Accounts payable $ 115.5 $ 183.8
Accounts payable to affiliated companies 25.4 54.1
Refundable fuel & natural gas costs 1.3 22.3
Accrued liabilities 186.0 174.7
Short-term borrowings 145.6 213.5
Current maturities of long-term debt 49.1 48.0
Long-term debt subject to tender 41.3 51.3
----------- -----------
Total current liabilities 564.2 747.7
----------- -----------
Long-term Debt - Net of Current Maturities &
Debt Subject to Tender 1,549.4 1,540.5
Deferred Income Taxes & Other Liabilities
Deferred income taxes 480.2 458.7
Regulatory liabilities 327.8 322.1
Deferred credits & other liabilities 205.8 205.6
----------- -----------
Total deferred credits & other liabilities 1,013.8 986.4
----------- -----------
Common Shareholders' Equity
Common stock (no par value) - issued &
outstanding 81.2 and 81.1 shares, respectively 670.7 666.8
Retained earnings 754.1 737.2
Accumulated other comprehensive income (loss) (5.7) (6.8)
----------- -----------
Total common shareholders' equity 1,419.1 1,397.2
----------- -----------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY $ 4,546.5 $ 4,671.8
=========== ===========
VECTREN CORPORATION
AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Millions - Unaudited)
For the six months ended
June 30,
2010 2009
----------- -----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 71.9 $ 66.1
Adjustments to reconcile net income to cash from
operating activities:
Depreciation & amortization 113.0 104.4
Deferred income taxes & investment tax credits 17.6 20.5
Equity in losses of unconsolidated affiliates 5.7 10.7
Provision for uncollectible accounts 10.2 9.4
Expense portion of pension & postretirement
benefit cost 4.5 5.9
Other non-cash charges - net 14.5 (0.8)
Changes in working capital accounts:
Accounts receivable & accrued unbilled revenue 100.0 232.3
Inventories 7.5 23.8
Recoverable/refundable fuel & natural gas costs (24.2) 26.5
Prepayments & other current assets 17.6 67.5
Accounts payable, including to affiliated
companies (98.8) (185.2)
Accrued liabilities 14.0 (2.6)
Unconsolidated affiliate dividends 12.2 10.9
Employer contributions to pension &
postretirement plans (8.2) (16.4)
Changes in noncurrent assets 9.5 5.0
Changes in noncurrent liabilities (8.3) (10.1)
----------- -----------
Net cash flows from operating activities 258.7 367.9
----------- -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from:
Dividend reinvestment plan & other 3.1 3.1
Long-term debt - 290.8
Requirements for:
Dividends on common stock (55.1) (54.1)
Retirement of long-term debt (1.6) (1.7)
Net change in short-term borrowings (67.9) (430.7)
----------- -----------
Net cash flows from financing activities (121.5) (192.6)
----------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from:
Unconsolidated affiliate distributions 0.5 -
Other collections 6.8 1.1
Requirements for:
Capital expenditures, excluding AFUDC equity (137.2) (213.6)
Unconsolidated affiliate investments (0.1) (0.1)
Other investments (2.3) (0.8)
----------- -----------
Net cash flows from investing activities (132.3) (213.4)
----------- -----------
Net change in cash & cash equivalents 4.9 (38.1)
Cash & cash equivalents at beginning of period 11.9 93.2
----------- -----------
Cash & cash equivalents at end of period $ 16.8 $ 55.1
=========== ===========
VECTREN CORPORATION
AND SUBSIDIARY COMPANIES
HIGHLIGHTS
(millions, except per share amounts)
(Unaudited)
Three Months Six Months
Ended June 30 Ended June 30
---------------- ----------------
2010 2009 2010 2009
------- ------- ------- -------
REPORTED EARNINGS:
Utility Group $ 16.2 $ 6.6 $ 71.6 $ 62.8
Nonutility Group
Energy Marketing and Services (8.9) (4.7) 1.3 10.8
Charge related to Liberty Gas
Storage Investment - (11.9) - (11.9)
------- ------- ------- -------
Subtotal Energy Marketing and
Services (8.9) (16.6) 1.3 (1.1)
Coal Mining 1.7 0.7 5.6 3.4
Energy Infrastructure Services 3.7 3.6 0.4 3.0
Other Businesses (4.0) (0.7) (7.0) (1.8)
------- ------- ------- -------
Total Nonutility Group (7.5) (13.0) 0.3 3.5
Corporate and Other - (0.3) - (0.2)
------- ------- ------- -------
Vectren Consolidated $ 8.7 $ (6.7) $ 71.9 $ 66.1
======= ======= ======= =======
REPORTED EPS $ 0.11 $ (0.08) $ 0.89 $ 0.82
======= ======= ======= =======
VECTREN CORPORATION
AND SUBSIDIARY COMPANIES
SELECTED GAS DISTRIBUTION
OPERATING STATISTICS
(Unaudited)
Three Months Six Months
Ended June 30 Ended June 30
---------------- ----------------
2010 2009 2010 2009
------- ------- ------- -------
GAS OPERATING REVENUES (Millions):
Residential $ 82.6 $ 94.1 $ 406.4 $ 457.2
Commercial 26.4 31.7 148.0 172.4
Industrial 11.0 10.5 29.8 29.0
Other Revenue 2.9 2.8 6.8 7.9
------- ------- ------- -------
$ 122.9 $ 139.1 $ 591.0 $ 666.5
======= ======= ======= =======
GAS MARGIN (Millions):
Residential $ 54.2 $ 53.7 $ 167.4 $ 168.8
Commercial 13.9 14.8 50.7 52.3
Industrial 10.2 9.3 26.4 24.4
Other 3.1 3.3 7.2 8.4
------- ------- ------- -------
$ 81.4 $ 81.1 $ 251.7 $ 253.9
======= ======= ======= =======
GAS SOLD & TRANSPORTED (MMDth):
Residential 6.1 8.6 44.4 45.4
Commercial 2.8 4.0 19.1 19.8
Industrial 19.2 15.7 45.8 39.8
------- ------- ------- -------
28.1 28.3 109.3 105.0
======= ======= ======= =======
AVERAGE GAS CUSTOMERS
Residential 894,200 892,613 901,462 901,114
Commercial 82,470 82,901 83,201 83,708
Industrial 1,636 1,633 1,627 1,622
------- ------- ------- -------
978,306 977,147 986,290 986,444
======= ======= ======= =======
YTD WEATHER AS A PERCENT OF NORMAL:
Heating Degree Days (Ohio) 65% 99% 103% 104%
VECTREN CORPORATION
AND SUBSIDIARY COMPANIES
SELECTED ELECTRIC
OPERATING STATISTICS
(Unaudited)
Three Months Ended Six Months Ended
June 30 June 30
---------------- ----------------
2010 2009 2010 2009
------- ------- ------- -------
ELECTRIC OPERATING REVENUES (Millions):
Residential $ 48.6 $ 45.4 $ 97.9 $ 89.0
Commercial 39.7 37.7 72.9 68.7
Industrial 51.7 41.6 97.6 77.3
Other Revenue 1.5 1.5 3.4 3.0
------- ------- ------- -------
Total Retail 141.5 126.2 271.8 238.0
Net Wholesale Revenues 9.5 6.5 24.1 19.7
------- ------- ------- -------
$ 151.0 $ 132.7 $ 295.9 $ 257.7
======= ======= ======= =======
ELECTRIC MARGIN (Millions):
Residential $ 34.7 $ 32.4 $ 68.4 $ 63.4
Commercial 25.7 24.5 47.4 45.6
Industrial 24.8 20.3 47.2 38.9
Other 1.4 1.2 3.1 2.8
------- ------- ------- -------
Total Retail 86.6 78.4 166.1 150.7
Net Wholesale Margin 6.6 4.0 14.0 9.7
------- ------- ------- -------
$ 93.2 $ 82.4 $ 180.1 $ 160.4
======= ======= ======= =======
ELECTRICITY SOLD (GWh):
Residential 356.2 334.8 767.4 712.6
Commercial 360.3 345.7 661.0 639.5
Industrial 697.1 557.4 1,307.5 1,066.4
Other Sales - Street Lighting 5.1 4.5 11.1 9.6
------- ------- ------- -------
Total Retail 1,418.7 1,242.4 2,747.0 2,428.1
Wholesale 108.8 64.8 344.2 406.4
------- ------- ------- -------
1,527.5 1,307.2 3,091.2 2,834.5
======= ======= ======= =======
AVERAGE ELECTRIC CUSTOMERS
Residential 122,754 122,107 122,891 122,348
Commercial 18,373 18,349 18,344 18,347
Industrial 107 105 107 104
Other 33 33 33 33
------- ------- ------- -------
141,267 140,594 141,375 140,832
======= ======= ======= =======
YTD WEATHER AS A PERCENT OF NORMAL:
Cooling Degree Days (Indiana) 146% 120% 144% 119%
Heating Degree Days (Indiana) 53% 93% 101% 94%
Contact Information: Investor Contact Steven M. Schein (812) 491-4209 Media Contact Jeffrey W. Whiteside (812) 491-4205