EX-99.2 3 a0930188k-exhibit992qfr.htm EXHIBIT 99.2 - Q3 2018 - QFR Exhibit
EXHIBIT 99.2

VECTREN CORPORATION
AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited - in millions, except per share amounts)
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
Nine Months Ended
 
 
September 30,
 
September 30,
 
 
2018
 
2017
 
2018
 
2017
 
 
 
 
 
 
 
 
 
OPERATING REVENUES:
 
 
 
 
 
 
 
 
Gas utility
 
$
122.1

 
$
120.4

 
$
600.7

 
$
557.2

Electric utility
 
160.0

 
159.2

 
437.4

 
433.0

Nonutility
 
382.9

 
411.6

 
929.8

 
956.1

Total operating revenues
 
665.0

 
691.2

 
1,967.9

 
1,946.3

 
 
 
 
 
 
 
 
 
OPERATING EXPENSES:
 
 
 
 
 
 
 
 
Cost of gas sold
 
24.5

 
23.9

 
211.4

 
174.0

Cost of fuel & purchased power
 
47.5

 
44.1

 
137.7

 
128.8

Cost of nonutility revenues
 
121.4

 
136.2

 
299.8

 
318.4

Other operating
 
296.2

 
296.7

 
809.3

 
794.2

Merger-related
 
11.1

 
—

 
26.4

 
—

Depreciation & amortization
 
73.9

 
69.5

 
217.7

 
205.7

Taxes other than income taxes
 
14.1

 
13.5

 
49.6

 
42.5

Total operating expenses
 
588.7

 
583.9

 
1,751.9

 
1,663.6

 
 
 
 
 
 
 
 
 
OPERATING INCOME
 
76.3

 
107.3

 
216.0

 
282.7

 
 
 
 
 
 
 
 
 
OTHER INCOME:
 
 
 
 
 
 
 
 
Equity in (losses) of unconsolidated affiliates
 
(0.3
)
 
(0.2
)
 
(18.3
)
 
(1.0
)
Other income - net
 
9.6

 
9.1

 
28.7

 
24.1

Total other income
 
9.3

 
8.9

 
10.4

 
23.1

 
 
 
 
 
 
 
 
 
INTEREST EXPENSE
 
24.6

 
22.2

 
72.1

 
64.9

 
 
 
 
 
 
 
 
 
INCOME BEFORE INCOME TAXES
 
61.0

 
94.0

 
154.3

 
240.9

 
 
 
 
 
 
 
 
 
INCOME TAXES
 
10.6

 
32.1

 
18.2

 
86.1

 
 
 
 
 
 
 
 
 
NET INCOME
 
$
50.4

 
$
61.9

 
$
136.1

 
$
154.8

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
WEIGHTED AVERAGE AND DILUTED COMMON SHARES
 
 
 
 
 
 
 
 
   OUTSTANDING
 
83.1

 
83.0

 
83.1

 
83.0

 
 
 
 
 
 
 
 
 
BASIC AND DILUTED EARNINGS PER SHARE OF COMMON STOCK
 
$
0.61

 
$
0.75

 
$
1.64

 
$
1.87



EXHIBIT 99.2


VECTREN UTILITY HOLDINGS
AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited - in millions)
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
Nine Months Ended
 
 
September 30,
 
September 30,
 
 
2018
 
2017
 
2018
 
2017
 
 
 
 
 
 
 
 
 
OPERATING REVENUES:
 
 
 
 
 
 
 
 
Gas utility
 
$
122.1

 
$
120.4

 
$
600.7

 
$
557.2

Electric utility
 
160.0

 
159.2

 
437.4

 
433.0

Other
 
0.1

 
0.1

 
0.2

 
0.2

Total operating revenues
 
282.2

 
279.7

 
1,038.3

 
990.4

 
 
 
 
 
 
 
 
 
OPERATING EXPENSES:
 
 
 
 
 
 
 
 
Cost of gas sold
 
24.5

 
23.9

 
211.4

 
174.0

Cost of fuel & purchased power
 
47.5

 
44.1

 
137.7

 
128.8

Other operating
 
83.5

 
82.0

 
265.6

 
250.4

Depreciation & amortization
 
63.4

 
59.0

 
186.3

 
174.3

Taxes other than income taxes
 
13.5

 
12.6

 
47.5

 
40.1

Total operating expenses
 
232.4

 
221.6

 
848.5

 
767.6

 
 
 
 
 
 
 
 
 
OPERATING INCOME
 
49.8

 
58.1

 
189.8

 
222.8

 
 
 
 
 
 
 
 
 
OTHER INCOME - NET
 
9.2

 
8.1

 
27.9

 
21.4

 
 
 
 
 
 
 
 
 
INTEREST EXPENSE
 
20.3

 
18.3

 
60.3

 
53.5

 
 
 
 
 
 
 
 
 
INCOME BEFORE INCOME TAXES
 
38.7

 
47.9

 
157.4

 
190.7

 
 
 
 
 
 
 
 
 
INCOME TAXES
 
5.7

 
17.1

 
24.6

 
68.5

 
 
 
 
 
 
 
 
 
NET INCOME
 
$
33.0

 
$
30.8

 
$
132.8

 
$
122.2

 
 
 
 
 
 
 
 
 


EXHIBIT 99.2

VECTREN CORPORATION
AND SUBSIDIARY COMPANIES
CONSOLIDATED BALANCE SHEETS
(Unaudited - in millions)
 
 
 
 
 
September 30,
 
December 31,
 
 
2018
 
2017
 
 
 
 
 
ASSETS
 
 
 
 
Current Assets
 
 
 
 
Cash & cash equivalents
 
$
28.8

 
$
16.6

Accounts receivable - less reserves of $4.1 &
 
 
 
 
$5.1, respectively
 
230.5

 
262.9

Accrued unbilled revenues
 
156.2

 
207.1

Inventories
 
119.4

 
126.6

Recoverable fuel & natural gas costs
 
7.8

 
19.2

Prepayments & other current assets
 
53.9

 
47.0

Total current assets
 
596.6

 
679.4

 
 
 
 
 
Utility Plant
 
 
 
 
Original cost
 
7,394.5

 
7,015.4

Less: accumulated depreciation & amortization
 
2,850.9

 
2,738.7

Net utility plant
 
4,543.6

 
4,276.7

 
 
 
 
 
Investments in unconsolidated affiliates
 
1.5

 
19.7

Other utility & corporate investments
 
48.6

 
43.7

Other nonutility investments
 
9.6

 
9.6

Nonutility plant - net
 
483.0

 
464.1

Goodwill
 
293.5

 
293.5

Regulatory assets
 
469.5

 
416.8

Other assets
 
34.6

 
35.8

TOTAL ASSETS
 
$
6,480.5

 
$
6,239.3

 
 
 
 
 
LIABILITIES & SHAREHOLDERS' EQUITY
 
 
 
 
Current Liabilities
 
 
 
 
Accounts payable
 
$
232.1

 
$
366.2

Accrued liabilities
 
246.1

 
222.3

Short-term borrowings
 
325.3

 
249.5

Current maturities of long-term debt
 
60.0

 
100.0

Total current liabilities
 
863.5

 
938.0

 
 
 
 
 
Long-term Debt - Net of Current Maturities
 
1,978.9

 
1,738.7

 
 
 
 
 
Deferred Credits & Other Liabilities
 
 
 
 
Deferred income taxes
 
518.4

 
491.3

Regulatory liabilities
 
938.8

 
937.2

Deferred credits & other liabilities
 
306.1

 
284.8

Total deferred credits & other liabilities
 
1,763.3

 
1,713.3

 
 
 
 
 
Common Shareholders' Equity
 
 
 
 
Common stock (no par value) – issued & outstanding
 
 
 
 
83.1 & 83.0, respectively
 
739.5

 
736.9

Retained earnings
 
1,136.6

 
1,113.7

Accumulated other comprehensive (loss)
 
(1.3
)
 
(1.3
)
Total common shareholders' equity
 
1,874.8

 
1,849.3

TOTAL LIABILITIES & SHAREHOLDERS' EQUITY
 
$
6,480.5

 
$
6,239.3

 
 
 
 
 



EXHIBIT 99.2

VECTREN CORPORATION
AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Millions - Unaudited)
 
 
 
 
 
Nine Months Ended
 
 
September 30,
 
 
2018
 
2017
 
 
 
 
 
CASH FLOWS FROM OPERATING ACTIVITIES:
 
 
 
 
Net income
 
$
136.1

 
$
154.8

Adjustments to reconcile net income to cash from operating activities:
 
 
 
 
Depreciation & amortization
 
217.7

 
205.7

Deferred income taxes & investment tax credits
 
12.6

 
76.6

Provision for uncollectible accounts
 
5.3

 
4.0

Expense portion of pension & postretirement benefit cost
 
3.3

 
4.4

Other non-cash items - net
 
18.3

 
4.1

Changes in working capital accounts:
 
 
 
 
Accounts receivable & accrued unbilled revenues
 
78.0

 
3.6

Inventories
 
7.2

 
(1.1
)
Recoverable/refundable fuel & natural gas costs
 
11.4

 
—

Prepayments & other current assets
 
(6.7
)
 
(3.1
)
Accounts payable
 
(144.0
)
 
(54.3
)
Accrued liabilities
 
24.7

 
4.9

Unconsolidated affiliate dividends
 
—

 
0.1

Employer contributions to pension & postretirement plans
 
(6.9
)
 
(3.5
)
Changes in noncurrent assets
 
(29.0
)
 
(28.0
)
Changes in noncurrent liabilities
 
(13.5
)
 
(7.7
)
Net cash from operating activities
 
314.5

 
360.5

 
 
 
 
 
CASH FLOWS FROM FINANCING ACTIVITIES:
 
 
 
 
Proceeds from:
 
 
 
 
Long-term debt, net of issuance costs
 
299.3

 
99.2

Dividend reinvestment plan & other common stock issuances
 
1.7

 
4.6

Requirements for:
 
 
 
 
Dividends on common stock
 
(112.1
)
 
(104.5
)
Retirement of long-term debt
 
(100.0
)
 
—

Net change in short-term borrowings
 
75.8

 
31.5

Net cash from financing activities
 
164.7

 
30.8

 
 
 
 
 
CASH FLOWS FROM INVESTING ACTIVITIES:
 
 
 
 
Proceeds from sale of assets and other collections
 
5.7

 
4.8

Requirements for:
 
 
 
 
Capital expenditures, excluding AFUDC equity
 
(472.7
)
 
(453.5
)
Other costs
 
—

 
(3.4
)
Changes in restricted cash
 
—

 
0.9

Net cash from investing activities
 
(467.0
)
 
(451.2
)
 
 
 
 
 
Net change in cash & cash equivalents
 
12.2

 
(59.9
)
Cash & cash equivalents at beginning of period
 
16.6

 
68.6

Cash & cash equivalents at end of period
 
$
28.8

 
$
8.7

 
 
 
 
 


EXHIBIT 99.2

VECTREN CORPORATION
AND SUBSIDIARY COMPANIES
HIGHLIGHTS
(Unaudited - in millions, except per share amounts)
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
Nine Months Ended
 
 
September 30,
 
September 30,
 
 
2018
 
2017
 
2018
 
2017
 
 
 
 
 
 
 
 
 
EARNINGS:
 
 
 
 
 
 
 
 
Utility Group
 
 
 
 
 
 
 
 
Gas Utility Services
 
$
(0.6
)
 
$
1.0

 
$
60.7

 
$
55.8

Electric Utility Services
 
30.6

 
27.2

 
62.4

 
56.8

Other Operations
 
3.0

 
2.6

 
9.7

 
9.6

Total Utility Group
 
33.0

 
30.8

 
132.8

 
122.2

 
 
 
 
 
 
 
 
 
Nonutility Group
 
 
 
 
 
 
 
 
Infrastructure Services
 
22.1

 
26.6

 
26.0

 
28.6

Energy Services
 
4.5

 
4.9

 
12.2

 
4.9

Other Businesses, excluding Equity Investment Impairment Charge - ProLiance
 
(0.3
)
 
(0.2
)
 
(0.8
)
 
(0.5
)
Nonutility Group, excluding reconciling items
 
26.3

 
31.3

 
37.4

 
33.0

 
 
 
 
 
 
 
 
 
Corporate and Other, excluding Merger-Related Costs
 
(0.1
)
 
(0.2
)
 
(0.8
)
 
(0.4
)
 
 
 
 
 
 
 
 
 
Vectren Consolidated, excluding reconciling items
 
$
59.2

 
$
61.9

 
$
169.4

 
$
154.8

 
 
 
 
 
 
 
 
 
Reconciling Items:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other Businesses - Equity Investment Impairment Charge - ProLiance
 
—

 
—

 
(13.1
)
 
—

 
 
 
 
 
 
 
 
 
Corporate and Other - Merger-Related Costs
 
(8.8
)
 
—

 
(20.2
)
 
—

 
 
 
 
 
 
 
 
 
Vectren Consolidated
 
$
50.4

 
$
61.9

 
$
136.1

 
$
154.8

 
 
 
 
 
 
 
 
 
EARNINGS PER SHARE:
 
 
 
 
 
 
 
 
Utility Group
 
$
0.40

 
$
0.37

 
$
1.60

 
$
1.47

Nonutility Group, excluding reconciling items
 
0.32

 
0.38

 
0.45

 
0.40

Corporate and Other, excluding reconciling items
 
(0.01
)
 
—

 
(0.01
)
 
—

 
 
 
 
 
 
 
 
 
EPS, excluding reconciling items
 
$
0.71

 
$
0.75

 
$
2.04

 
$
1.87

 
 
 
 
 
 
 
 
 
Reconciling Items:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other Businesses - Equity Investment Impairment Charge - ProLiance
 
—

 
—

 
(0.16
)
 
—

 
 
 
 
 
 
 
 
 
Corporate and Other - Merger-Related Costs
 
(0.10
)
 
—

 
(0.24
)
 
—

 
 
 
 
 
 
 
 
 
Reported EPS
 
$
0.61

 
$
0.75

 
$
1.64

 
$
1.87

 
 
 
 
 
 
 
 
 


EXHIBIT 99.2

VECTREN CORPORATION
AND SUBSIDIARY COMPANIES
SELECTED GAS DISTRIBUTION
OPERATING STATISTICS
(Unaudited)
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
Nine Months Ended
 
 
September 30,
 
September 30,
 
 
2018
 
2017
 
2018
 
2017
 
 
 
 
 
 
 
 
 
GAS UTILITY (Millions):
 
 
 
 
 
 
 
 
Residential Margin
 
$
60.2

 
$
59.6

 
$
228.8

 
$
231.4

Commercial Margin
 
12.6

 
12.8

 
61.4

 
61.7

Industrial Margin
 
14.8

 
15.9

 
52.6

 
53.1

Other Margin
 
1.4

 
1.5

 
6.8

 
6.4

Regulatory Expense Recovery Mechanisms
 
8.6

 
6.7

 
39.7

 
30.6

Total Gas Utility Margin
 
97.6

 
96.5

 
389.3

 
383.2

Cost of Gas Sold
 
24.5

 
23.9

 
211.4

 
174.0

Total Gas Utility Revenue
 
$
122.1

 
$
120.4

 
$
600.7

 
$
557.2

 
 
 
 
 
 
 
 
 
GAS SOLD & TRANSPORTED (MMDth):
 
 
 
 
 
 
 
 
Residential
 
3.3

 
3.6

 
52.0

 
40.4

Commercial
 
2.6

 
2.4

 
24.6

 
18.9

Industrial
 
31.1

 
25.4

 
109.8

 
87.2

 
 
37.0

 
31.4

 
186.4

 
146.5

 
 
 
 
 
 
 
 
 
AVERAGE GAS CUSTOMERS
 
 
 
 
 
 
 
 
Residential
 
933,310

 
925,396

 
942,200

 
933,852

Commercial
 
85,168

 
84,686

 
85,983

 
85,451

Industrial
 
1,754

 
1,743

 
1,753

 
1,742

 
 
1,020,232

 
1,011,825

 
1,029,936

 
1,021,045

 
 
 
 
 
 
 
 
 
WEATHER AS A PERCENT OF NORMAL (ANNUALIZED):
 
 
 
 
 
 
 
 
Heating Degree Days (Ohio)
 
 
 
 
 
102
%
 
89
%
Heating Degree Days (Indiana)
 
 
 
 
 
99
%
 
80
%
 
 
 
 
 
 
 
 
 


EXHIBIT 99.2

VECTREN CORPORATION
AND SUBSIDIARY COMPANIES
SELECTED ELECTRIC
OPERATING STATISTICS
(Unaudited)
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
Nine Months Ended
 
 
September 30,
 
September 30,
 
 
2018
 
2017
 
2018
 
2017
 
 
 
 
 
 
 
 
 
ELECTRIC UTILITY (Millions):
 
 
 
 
 
 
 
 
Residential Margin
 
$
46.2

 
$
46.7

 
$
117.4

 
$
116.2

Commercial Margin
 
27.4

 
29.7

 
75.2

 
80.8

Industrial Margin
 
25.0

 
26.4

 
69.6

 
73.2

Other Margin
 
0.7

 
0.9

 
1.9

 
2.8

Regulatory Expense Recovery Mechanisms
 
4.9

 
3.3

 
13.4

 
8.1

Wholesale and Transmission
 
8.3

 
8.1

 
22.2

 
23.1

Total Electric Utility Margin
 
112.5

 
115.1

 
299.7

 
304.2

Cost of Fuel & Purchased Power
 
47.5

 
44.1

 
137.7

 
128.8

Total Electric Utility Revenue
 
$
160.0

 
$
159.2

 
$
437.4

 
$
433.0

 
 
 
 
 
 
 
 
 
ELECTRICITY SOLD (GWh):
 
 
 
 
 
 
 
 
Residential
 
451.1

 
429.0

 
1,176.0

 
1,066.3

Commercial
 
358.6

 
367.5

 
972.3

 
976.5

Industrial
 
613.6

 
587.8

 
1,668.6

 
1,600.7

Other Sales - Street Lighting
 
5.1

 
5.1

 
16.0

 
16.0

Total Retail
 
1,428.4

 
1,389.4

 
3,832.9

 
3,659.5

Wholesale
 
121.9

 
56.7

 
468.6

 
295.9

 
 
1,550.3

 
1,446.1

 
4,301.5

 
3,955.4

 
 
 
 
 
 
 
 
 
AVERAGE ELECTRIC CUSTOMERS
 
 
 
 
 
 
 
 
Residential
 
127,459

 
126,467

 
127,296

 
126,338

Commercial
 
18,705

 
18,679

 
18,672

 
18,639

Industrial
 
115

 
111

 
115

 
112

Other
 
40

 
40

 
40

 
40

 
 
146,319

 
145,297

 
146,123

 
145,129

 
 
 
 
 
 
 
 
 
WEATHER AS A PERCENT OF NORMAL (ANNUALIZED):
 
 
 
 
 
 
 
 
Cooling Degree Days (Indiana)
 
111
%
 
100
%
 
130
%
 
108
%
Heating Degree Days (Indiana)
 
 
 
 
 
99
%
 
80
%