Vectren
Corporation Reports First Quarter 2012 Results; Affirms Guidance for 2012
Company
Release - 05/02/2012 18:00
EVANSVILLE, IN --
(Marketwire) -- 05/02/12 -- Vectren Corporation (NYSE: VVC) today reported 2012
first quarter net income of $51.3 million, or $0.63 per share, compared to net
income of $44.6 million, or $0.55 per share, in 2011.
Summary results
- Utility earnings were $56.0
million, or $0.69 per share in the first quarter of 2012, compared to
$48.6 million, or $0.59 per share, in 2011.
- Nonutility results were a loss
of ($4.8) million, compared to a loss of ($10.5) million, excluding the
first quarter results from Vectren Source in 2011.
- Vectren Source (Source) was
sold on Dec. 31, 2011. Source reported seasonal earnings of $7.1 million
in the first quarter of 2011 and $2.8 million for the full year.
"We are very
pleased with our overall 2012 first quarter results and the improvement over
the comparable results last year. Our utility group again delivered solid
earnings growth, as expected. Meanwhile, our Infrastructure Services segment
continues to beat our expectations, offsetting some of the weakness we are
experiencing in our coal mining operations. As a result, we are maintaining our
overall 2012 earnings guidance at the same levels that we set in
February," said Carl L. Chapman, Vectren's chairman, president and CEO.
2012 earnings guidance
affirmed
The company affirms the
2012 guidance ranges previously given. Including an expected loss at ProLiance
Holdings, LLC (ProLiance), consolidated earnings are expected to be $1.75 to
$1.95 per share. The company expects 2012 Utility Group earnings to be within a
range of $1.60 to $1.70 per share and the Nonutility Group earnings, excluding
ProLiance, to be in a range of $0.30 to $0.40 per share. Based on current
market conditions and outlook, Vectren's share of ProLiance's results for 2012
is estimated to be in a range of a net loss of ($0.10) to ($0.20) per share.
The Utility Group
expectations assume normal weather for the remainder of the year in the
electric service territory. Weather impacts in the gas service territories are largely
mitigated through rate design or other regulatory mechanisms. Related to
ProLiance, although somewhat improved, unfavorable market conditions are
assumed to continue, resulting in continued depressed asset optimization
opportunities. Changes in these events or other circumstances could materially
impact earnings and result in earnings for 2012 significantly above or below
this guidance. These targeted ranges are subject to such factors discussed
below under "Forward-Looking Statements."
Utility Group discussion
The Utility Group is comprised of Vectren Utility Holdings, Inc.'s (VUHI)
operations, which consist of the company's regulated utility operations and
other operations that provide information technology and other support services
to those regulated operations. The company segregates its regulated utility
operations between a Gas Utility Services operating segment and an Electric
Utility Services operating segment. The Gas Utility Services segment provides
natural gas distribution and transportation services to nearly two-thirds of
Indiana and to west central Ohio. The Electric Utility Services segment
provides electric distribution services to southwestern Indiana and includes
the company's power generating and wholesale power operations. The Utility
Group also earns a return on shared assets, such as customer billing systems
and the customer contact center, used by the company's utility operations.
In the three months
ended March 31, 2012, the Utility Group earned $56.0 million, compared to the $48.6
million earned in 2011. Year-over-year results reflect the impacts of new
electric base rates implemented on May 3, 2011, extremely mild winter weather,
and lower operating expenses and interest expense. As a result of refinancing
two utility related long-term debt issues during the very low interest rate
environment, Vectren expects that its annual 2012 interest expense related to
its utility operations will be approximately $8 million lower than that
reflected in 2011.
Gas Utility Services
The Gas Utility Services operating segment, which is comprised of Vectren's
Indiana gas operations, North and South, and Vectren Ohio, earned $37.5 million
during the first quarter of 2012, compared to earnings of $36.1 million in
2011. Results in 2012 have been impacted by lower uncollectible accounts
expense driven primarily by lower gas costs and lower interest expense due to
the recent refinancing activity. With rate designs that substantially limit the
impact of weather on margin, temperatures that were 71 percent of normal in
Indiana and 82 percent of normal in Ohio had only a slightly negative impact on
margin.
Following is more
detailed information related to the earnings from gas utility operations for
the quarter ended March 31, 2012. Identified items are presented after the
impact of income taxes.
Quarter
(millions)
End
-----------
2011 Gas Utility Earnings
$
36.1
Weather impact on small customers
(0.4)
Return on bare steel / cast iron &
distribution riser
replacement investments
0.4
Large customer margin, primarily weather
related
(0.5)
Lower interest expense
1.0
All other
0.9
-----------
1.4
-----------
2012 Gas Utility Earnings
$
37.5
===========
Electric Utility
Services
The Electric Utility Services operating segment is comprised of Vectren South's
electric distribution business and includes the company's power generating and
wholesale power operations. Electric operations earned $15.6 million in the
three months ended March 31, 2012, compared to $8.6 million in the prior year
quarter. Results in 2012 reflect increased electric margin, primarily from base
rate changes, and lower operating and interest costs. Following is more
detailed information related to the earnings from electric utility operations
for the quarter ended March 31, 2012. Identified items are presented after the
impact of income taxes.
Quarter
(millions)
End
-----------
2011 Electric Utility Earnings
$
8.6
Weather impacts from mild winter
(2.0)
Margin from base rate changes effective
May 3, 2011
4.5
Large customer margin
0.4
Wholesale & transmission margin
0.8
Lower operating expenses, excluding pass
through expenses
1.8
Lower interest expense 0.5
All other
1.0
-----------
7.0
-----------
2012 Electric Utility Earnings
$
15.6
===========
Weather impacts
Management estimates the impact of weather on retail electric margin, compared
to normal temperatures, to be approximately ($3.6) million unfavorable in the
first quarter of 2012. This compares to first quarter of 2011, where management
estimated a ($0.2) million unfavorable impact on margin compared to normal. In
2012, winter heating weather was 29 percent warmer than normal.
Other operations
The Utility Group also earns a return on shared assets through currently
approved rates as if portions of the assets were in the rate base of each
utility. Such shared assets include customer billing systems and the customer
contact center, as examples. In the first quarter of 2012, earnings from these
operations were $2.9 million compared to $3.9 million in 2011.
Nonutility Group
discussion
All amounts included in this section are after tax. Results reported by
business group are net of nonutility group corporate expense.
In the first quarter of
2012, the Nonutility Group incurred a net loss of ($4.8) million, which
compares to a net loss of ($3.4) million in 2011. Infrastructure Services
earnings increased $5.9 million quarter over quarter, reflective of increased
demand for services. ProLiance's earnings increased quarter over quarter as
well, while Coal Mining and Energy Services earnings have decreased quarter
over quarter. Seasonal earnings in the first quarter of 2011 were $7.1 million
from retail energy marketer Source, which was sold on Dec. 31, 2011, and full
year 2011 earnings were $2.8 million.
Infrastructure Services
Infrastructure Services provides underground construction and repair services
through Miller Pipeline (Miller) and Minnesota Limited, which was acquired on
March 31, 2011.
Results from
Infrastructure Services' operations for the quarter ended March 31, 2012, were
earnings of $3.0 million compared to a loss of ($2.9) million in the prior year
first quarter. The $5.9 million increase in earnings reflects increased demand
across all infrastructure business areas and the acquisition of Minnesota
Limited. The warm weather provided for the ability to earn a profit during a
period that traditionally operates at a seasonal loss. Revenues in the first
quarter of 2012 were $117.5 million. These operations had first quarter
revenues in 2011 of $68.3 million, including $21.1 million from Minnesota
Limited prior to its acquisition. Construction activity generally is expected
to remain strong in 2012 and beyond as utilities and pipeline operators
continue to replace their aging natural gas and oil infrastructure and as the
need for shale gas and oil infrastructure becomes more prevalent.
Energy Services
Energy Services provides energy performance contracting and renewable energy
services through Energy Systems Group (ESG).
Energy Services' first
quarter results were a loss of ($1.7) million in 2012 compared to a loss of
($1.4) million in 2011. The lower results in 2012 reflect increased operating
expenses associated with the continued ramp up of performance contracting
personnel. ESG placed its first "build and own" anaerobic digester
project into service in the first quarter of 2012. Two additional anaerobic
digester projects are under construction and are expected to be placed into
service later this year. As of March 31, 2012, performance contracting backlog
was $73 million compared to $82 million on Dec. 31, 2011, and $122 million on
March 31, 2011. The lower backlog reflects some slowing in the demand for
performance contracting projects. However, the national focus on energy
conservation, renewable energy and sustainability are expected to create
favorable conditions for long-term growth in this business.
Coal Mining
Coal Mining mines and sells coal to the company's utility operations and to
third parties through its wholly owned subsidiary Vectren Fuels, Inc.
Coal Mining's first
quarter results were a loss of ($0.3) million, a decrease in earnings of $1.9
million compared to 2011. Results have been impacted by reduced productivity at
the Prosperity mine where a thin coal seam and other unfavorable mining
conditions have negatively impacted costs. These increased costs offset very
favorable cost per ton results at Oaktown during the period. Revenues decreased
as expected due to reduced pricing to customers associated with contracts that
had price reopener clauses effective for 2012. Also, sales in the quarter were
lower than expected due to the mild weather. Coal sold in the first quarter of
2012 was 1.1 million tons compared to 1.3 million tons in the first quarter of
last year.
Vectren Fuels continues
negotiation with a number of customers regarding sales in 2012 and beyond. Coal
sales in 2012 are now estimated at 5.6 million tons, with 70 percent sold. The
impact of lower prices is expected to result in earnings from Coal Mining
operations in 2012 substantially lower than the results in 2011. However, long
term, reduced volumes from Central Appalachia and the large number of scrubbers
to be installed should drive strong demand for Illinois Basin coal.
Energy Marketing
Energy Marketing is comprised of the company's gas marketing operations, energy
management services and retail gas supply operations. The Energy Marketing
group consists of the company's investment in ProLiance. The company's former
wholly owned subsidiary, Source, was sold on Dec. 31, 2011.
The company's share of
ProLiance's results was a loss of ($5.9) million in 2012, compared to a loss of
($7.5) million in 2011. The reduced quarter over quarter loss primarily
reflects the reduction in demand costs for both storage and transportation
contracts. Current market conditions have resulted in plentiful natural gas
supply and lower and less volatile natural gas prices. Historical basis differences
between physical and financial markets and summer and winter prices remain
narrow compared to historical trends but have improved somewhat. As an example,
the summer-winter strip spread was approximately $0.80 per dekatherm as of
March 31, 2012, compared to approximately $0.50 per dekatherm as of March 31,
2011.
Efforts to lower the
cost of pipeline and storage demand costs continue. Through negotiations and by
dropping some uneconomical contracts as they expire, pipeline transportation
and storage costs have been lowered to approximately $55 million for all of
2012, compared to $73 million in 2011. In addition to these reductions,
additional opportunities exist to renegotiate or drop existing contracts,
including those with annual demand costs of $18 million that are scheduled to
expire through 2015. At March 31, 2012, ProLiance had approximately $149
million of members' equity on its balance sheet, no long-term debt outstanding
and borrowings of $45 million on its short-term credit facility. Depressed market
conditions continue, but the savings in demand costs and other actions are
expected to continue to reduce ProLiance's annual losses in 2012 compared to
2011.
Please SEE ATTACHED
unaudited schedules for additional financial information
Live Webcast on May 3,
2012
Vectren's financial analyst call will be at 9:30 a.m. (EDT), May 3, 2012, at
which time management will discuss first quarter financial results and 2012
earnings guidance. To participate in the call, analysts are asked to dial 1-866-821-5457 10
minutes prior to the start time and refer to the "Vectren Corporation 2012
First Quarter Earnings Call". All interested parties may listen to the
live webcast accompanied by a slide presentation at http://www.vectren.com. A replay of the
webcast will be made available at the same location approximately two hours
following the conclusion of the analyst call.
About Vectren
Vectren Corporation (NYSE: VVC) is an energy holding company headquartered in
Evansville, Ind. Vectren's energy delivery subsidiaries provide gas and/or
electricity to more than 1 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 U.S. These include infrastructure
services, energy services, coal mining and energy marketing. To learn more
about Vectren, visit http://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 inflation rates, commodity prices, and
monetary fluctuations. Economic conditions surrounding the current economic
uncertainty, including increased potential for lower levels of economic
activity; uncertainty regarding energy prices and the capital and commodity
markets; volatile changes in the 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. Volatile 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
infrastructure, energy services, coal mining, and energy marketing 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. Factors affecting the company's
investment in ProLiance including natural gas price volatility and basis; the
ability to lower fixed contract costs; and availability of credit. Employee or
contractor workforce factors including changes in key executives, collective
bargaining agreements with union employees, aging workforce issues, work
stoppages, or pandemic illness. Risks associated with material business
transactions such as mergers, acquisitions and divestitures, including, without
limitation, legal and regulatory delays; the related time and costs of
implementing such transactions; integrating operations as part of these
transactions; and possible failures to achieve expected gains, revenue growth
and/or expense savings from such transactions. 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, pipeline safety
regulations, 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 2011 annual report on
Form 10-K filed on Feb. 16, 2012. 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 March 31
----------------------------
2012
2011
------------- -------------
OPERATING REVENUES:
Gas utility
$
292.3 $ 356.7
Electric utility
139.4
146.4
Nonutility
172.9
179.5
------------- -------------
Total operating
revenues
604.6
682.6
------------- -------------
OPERATING EXPENSES:
Cost of gas sold
137.1
195.1
Cost of fuel and purchased power
44.7
59.5
Cost of nonutility revenues
59.5
105.1
Other operating
173.2
141.6
Depreciation and amortization
63.6
59.1
Taxes other than income taxes
16.6
18.9
------------- -------------
Total operating
expenses
494.7
579.3
------------- -------------
OPERATING INCOME
109.9
103.3
OTHER INCOME (EXPENSE):
Equity in earnings (losses) of
unconsolidated affiliates
(7.6)
(10.9)
Other income - net
3.3
2.4
------------- -------------
Total other income
(expense)
(4.3) (8.5)
------------- -------------
INTEREST EXPENSE
24.0
26.6
------------- -------------
INCOME BEFORE INCOME TAXES
81.6
68.2
INCOME TAXES
30.3
23.6
------------- -------------
NET INCOME
$
51.3 $ 44.6
============= =============
AVERAGE COMMON SHARES OUTSTANDING
82.0
81.7
DILUTED COMMON SHARES OUTSTANDING
82.0
81.7
EARNINGS PER SHARE OF COMMON STOCK
BASIC
$
0.63 $ 0.55
============= =============
DILUTED
$ 0.62 $ 0.55
============= =============
VECTREN UTILITY HOLDINGS
AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF INCOME
(Millions
- Unaudited)
Three Months
Ended March 31
---------------------------
2012
2011
------------- -------------
OPERATING REVENUES:
Gas utility
$
292.3 $ 356.7
Electric utility
139.4
146.4
Other
0.4
0.5
------------- -------------
Total operating revenues
432.1
503.6
------------- -------------
OPERATING EXPENSES:
Cost of gas sold
137.1
195.1
Cost of fuel and purchased power
44.7
59.5
Other operating
79.9
86.9
Depreciation and amortization
48.6
48.2
Taxes other than income taxes
15.9
18.0
------------- -------------
Total operating
expenses
326.2
407.7
------------- -------------
OPERATING INCOME
105.9
95.9
OTHER INCOME - NET
2.2
1.7
INTEREST EXPENSE
17.7
20.4
-------------
-------------
INCOME BEFORE INCOME TAXES
90.4
77.2
INCOME TAXES
34.4
28.6
-------------
-------------
NET INCOME
$ 56.0
$
48.6
============= =============
VECTREN CORPORATION
AND
SUBSIDIARY COMPANIES
CONSOLIDATED BALANCE SHEETS
(Millions - Unaudited)
March 31,
December 31,
2012
2011
------------- -------------
ASSETS
Current Assets
Cash & cash equivalents
$
14.2 $
8.6
Accounts receivable - less reserves of $6.1
& $6.7, respectively
214.6
221.3
Accrued unbilled revenues
67.8
121.5
Inventories
147.5
161.9
Recoverable fuel & natural gas costs
9.5
12.4
Prepayments & other current assets
41.6
84.3
------------- -------------
Total current assets
495.2 610.0
------------- -------------
Utility Plant
Original cost
5,033.8
4,979.9
Less: accumulated depreciation &
amortization
1,975.9
1,947.3
------------- -------------
Net utility plant
3,057.9
3,032.6
------------- -------------
Investments in unconsolidated
affiliates
88.2
92.9
Other utility & corporate
investments
35.5
34.4
Other nonutility investments
24.6
29.6
Nonutility plant - net
562.0
550.8
Goodwill - net
262.3
262.3
Regulatory assets
232.8
226.0
Other assets
39.6
40.3
------------- -------------
TOTAL
ASSETS
$
4,798.1 $ 4,878.9
============= =============
LIABILITIES & SHAREHOLDERS' EQUITY
Current Liabilities
Accounts payable
$
141.6 $ 185.8
Accounts payable to
affiliated companies
19.3
36.8
Refundable fuel &
natural gas costs
2.6
-
Accrued
liabilities
183.6
181.1
Short-term
borrowings
174.7
227.1
Current maturities of
long-term debt
61.6
62.7
------------- -------------
Total
current liabilities
583.4
693.5
------------- -------------
Long-term Debt - Net of Current Maturities
1,559.3
1,559.6
Deferred Income Taxes & Other Liabilities
Deferred income
taxes
575.4
575.7
Regulatory
liabilities
350.5
345.2
Deferred credits
& other liabilities
238.1
239.4
------------- -------------
Total
deferred credits & other liabilities
1,164.0
1,160.3
------------- -------------
Common Shareholders' Equity
Common stock (no par
value) - issued &
outstanding
82.0 and 81.9 shares,
respectively
694.4
692.6
Retained
earnings
808.7
786.2
Accumulated other
comprehensive income
(loss)
(11.7)
(13.3)
------------- -------------
Total
common shareholders' equity
1,491.4 1,465.5
------------- -------------
TOTAL
LIABILITIES & SHAREHOLDERS' EQUITY $ 4,798.1 $ 4,878.9
============= =============
VECTREN CORPORATION
AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Millions - Unaudited)
Three
Months
Ended March 31
2012
2011
------------- -------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income
$
51.3 $ 44.6
Adjustments to
reconcile net income to cash
from operating
activities:
Depreciation & amortization 63.6
59.1
Deferred
income taxes & investment tax
credits
13.7
18.5
Equity in
losses of unconsolidated
affiliates
7.6
10.9
Provision
for uncollectible accounts
2.3
5.9
Expense
portion of pension &
postretirement benefit cost
2.7
2.2
Other
non-cash charges - net
1.9
3.2
Changes
in working capital accounts:
Accounts receivable & accrued unbilled
revenues
58.1
31.5
Inventories
4.7
54.7
Recoverable/refundable fuel & natural
gas
costs
5.5
5.1
Prepayments & other current assets
30.4
39.0
Accounts payable, including to
affiliated
companies
(66.1)
(86.8)
Accrued liabilities
2.4
23.8
Employer
contributions to pension &
postretirement plans
(4.9)
(29.2)
Changes
in noncurrent assets
0.8
8.0
Changes
in noncurrent liabilities
(5.2)
(2.1)
------------- -------------
Net cash flows from operating activities
168.8
188.4
------------- -------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from:
Long-term
debt, net of issuance costs
99.5
-
Dividend reinvestment plan & other
common
stock issuances
1.6
1.7
Requirements for:
Dividends on common stock
(28.7)
(28.2)
Retirement of long-term debt
(1.5)
(0.1)
Other financing activities
-
(1.4)
Net change in
short-term borrowings
(152.4)
4.0
------------- -------------
Net cash flows from financing activities
(81.5)
(24.0)
------------- -------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from:
Other
collections
5.5
0.3
Requirements for:
Capital
expenditures, excluding AFUDC
equity
(87.2)
(57.7)
Business
acquisition, net of cash acquired
-
(82.9)
------------- -------------
Net cash flows from investing activities
(81.7)
(140.3)
------------- -------------
Net change in cash & cash equivalents
5.6
24.1
Cash & cash equivalents at beginning of period
8.6
10.4
------------- -------------
Cash & cash equivalents at end of period $ 14.2 $ 34.5
============= =============
VECTREN CORPORATION
AND SUBSIDIARY COMPANIES
HIGHLIGHTS
(Millions,
except per share amounts)
(Unaudited)
Three Months
Ended March 31
----------------------------
2012
2011
------------- -------------
REPORTED EARNINGS:
Utility Group
Gas Utility
Services
$
37.5 $ 36.1
Electric Utility
Services
15.6
8.6
Other Operations
2.9
3.9
------------- -------------
Total Utility Group
56.0
48.6
Nonutility Group
Infrastructure
Services
3.0
(2.9)
Energy Services
(1.7)
(1.4)
Coal Mining
(0.3)
1.6
Energy Marketing
Vectren
Source
-
7.1(1)
ProLiance
(5.9)
(7.5)
Other Businesses 0.1
(0.3)
------------- -------------
Total Nonutility Group
(4.8)
(3.4)
Corporate and Other
0.1
(0.6)
------------- -------------
Vectren Consolidated
$
51.3 $ 44.6
============= =============
EARNINGS PER SHARE:
Utility Group
$
0.69 $ 0.59
Nonutility Group, excluding ProLiance
0.01
0.05
ProLiance
(0.07)
(0.09)
------------- -------------
Reported EPS
$
0.63 $ 0.55
============= =============
(1) Vectren Source was sold 12/31/11. Full year 2011 earnings were
$2.8
million.
VECTREN CORPORATION
AND SUBSIDIARY COMPANIES
SELECTED GAS DISTRIBUTION
OPERATING STATISTICS
(Unaudited)
Three Months
Ended March 31
----------------------------
2012
2011
------------- -------------
GAS OPERATING REVENUES (Millions):
Residential
$
201.5 $ 245.5
Commercial
70.0
88.5
Industrial
17.3
18.6
Other Revenue
3.5
4.1
------------- -------------
$
292.3 $ 356.7
============= =============
GAS MARGIN (Millions):
Residential
$ 103.0 $ 105.7
Commercial
32.1
34.0
Industrial
16.5
17.6
Other
3.6 4.3
------------- -------------
$
155.2 $ 161.6
============= =============
GAS SOLD & TRANSPORTED (MMDth):
Residential
28.8
37.1
Commercial
12.0
15.7
Industrial
27.8
28.8
------------- -------------
68.6
81.6
============= =============
AVERAGE GAS CUSTOMERS
Residential 908,740
909,290
Commercial
83,654
83,852
Industrial
1,655
1,654
------------- -------------
994,049
994,796
============= =============
YTD WEATHER AS A PERCENT OF NORMAL:
Heating Degree Days
(Ohio) 82%
107%
VECTREN CORPORATION
AND SUBSIDIARY COMPANIES
SELECTED ELECTRIC
OPERATING STATISTICS
(Unaudited)
Three Months
Ended March 31
----------------------------
2012
2011
------------- -------------
ELECTRIC OPERATING REVENUES (Millions):
Residential
$
45.7 $ 47.4
Commercial
34.2
34.1
Industrial
47.6
50.3
Other Revenue
1.9
2.0
------------- -------------
Total
Retail
129.4
133.8
Net Wholesale
Revenues
10.0
12.6
------------- -------------
$
139.4 $ 146.4
============= =============
ELECTRIC MARGIN (Millions):
Residential
$ 34.3 $ 32.1
Commercial
24.4
21.9
Industrial
25.3
23.4
Other
1.8
1.9
------------- -------------
Total Retail
85.8
79.3
Net Wholesale Margin
8.9
7.6
------------- -------------
$
94.7 $ 86.9
============= =============
ELECTRICITY SOLD (GWh):
Residential
338.4
381.2
Commercial
292.7
300.4
Industrial
681.7
661.9
Other Sales - Street Lighting
5.9
5.9
------------- -------------
Total Retail
1,318.7
1,349.4
Wholesale
48.7
183.9
------------- -------------
1,367.4
1,533.3
============= =============
AVERAGE ELECTRIC CUSTOMERS
Residential 123,290
123,126
Commercial
18,251
18,248
Industrial
115
111
Other
33
33
------------- -------------
141,689
141,518
============= =============
YTD WEATHER AS A PERCENT OF NORMAL:
Cooling Degree Days (Indiana)
N/A
N/A
Heating Degree Days (Indiana)
71%
97%