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8-K - FORM 8-K - NISOURCE INC. | c64401e8vk.htm |
Exhibit 99.1
801 E. 86th Avenue
Merrillville, IN 46410
Merrillville, IN 46410
May 3,
2011
FOR ADDITIONAL INFORMATION Media Mike Banas Communications Manager (219) 647-5581 mbanas@nisource.com |
Investors Randy Hulen Managing Director,Investor Relations (219) 647-5688 rghulen@nisource.com |
NiSource Reports First Quarter 2011 Results
| Results solidly in line with 2011 net operating earnings guidance | ||
| Positive growth from regulatory programs | ||
| Infrastructure modernization and growth investments continue |
MERRILLVILLE, Ind. NiSource Inc. (NYSE: NI) today announced net operating earnings from
continuing operations (non-GAAP) of $202.3 million, or $0.72 cents per share for the three months
ended March 31, 2011, compared to $198.4 million, or $0.72 cents per share for the first quarter of
2010. Operating earnings for the quarter (non-GAAP) were $394.9 million compared to $405.2 million
for the same period in 2010.
On a GAAP basis, NiSource reported income from continuing operations for the three months ended
March 31, 2011, of $204.8 million, or $0.73 cents per share, compared with $197.4 million, or $0.71
cents per share in the same period a year ago. Operating income was $399.2 million for the first
quarter of 2011 compared with $403.4 million in the year-ago period. Schedules 1 and 2 of this news
release contain a reconciliation of net operating earnings and operating earnings to GAAP.
NiSources robust agenda of significant infrastructure investments paired with complementary
commercial and regulatory activity continues to generate tangible benefits for our customers,
increased value for our shareholders and positions us for sustainable long-term earnings growth,
President and Chief Executive Officer Robert C. Skaggs, Jr. said. Our first quarter performance is
squarely in line with our expectations as well as our full year 2011 earnings outlook, and sets the
stage for ongoing execution of our balanced business strategy.
Advancing customer service, reliability and regulatory agenda in Indiana
NiSources Northern Indiana Public Service Company (NIPSCO) continues to make significant progress
on its broad-based strategy to provide excellent customer service, performance and reliability;
modernize customer programs and rate designs; engage all its stakeholders; and restore earnings to
an appropriate level.
| On the regulatory front, NIPSCO remains on track to establish new electric base rates by late 2011 or early 2012. While the formal rate case process continues to move forward, NIPSCO is actively engaged in settlement discussions with all of its stakeholders and remains committed to seeking a collaborative, mutually agreeable resolution. Upon completion, NIPSCO is confident the case will position the company for ongoing growth through continued investments in service, reliability and environmental infrastructure. |
1
| During the first quarter, NIPSCO launched two significant customer programs to encourage energy savings and efficiency. One program, targeted at commercial and industrial customers, offers financial incentives for the completion of cost-effective energy projects involving the installation of new, high-efficiency equipment or systems. The other provides high-energy usage residential customers with information to help them become more energy efficient. | ||
| NIPSCO continues to advance environmental investments at its coal-generating stations in Northern Indiana. These investments represent a significant opportunity to create hundreds of jobs, improve the environment, generate earnings growth and enhance the overall economic vitality of the region. The company completed preliminary engineering and began site preparation and construction for a Flue Gas Desulfurization (FGD) unit, the first of three planned across its system that together will reduce sulfur dioxide emissions by an additional 80 percent beyond current levels. | ||
| NIPSCO also reached a settlement on Feb. 24 with stakeholders to combine NIPSCO and NiSources two other Indiana-based natural gas utilities into one entity. If approved by the Indiana Utility Regulatory Commission (IURC), the consolidation would enable Northern Indiana Fuel and Light and Kokomo Gas customers to take advantage of the same programs, products and services currently offered to NIPSCO customers. |
With our Indiana teams continued engagement and singular focus, I remain confident that we will
deliver on our goal of enhancing NIPSCOs overall performance and restoring earnings to an
appropriate level in 2012. Skaggs said.
Capturing pipeline and storage growth opportunities
NiSources Gas Transmission & Storage (NGT&S) Operations continued to leverage its unparalleled
asset base and geographic footprint in the prolific Marcellus Shale production area to position
itself for ongoing earnings growth.
| In the Marcellus region, customer-driven infrastructure projects continued to advance, including the Clendenin, Smithfield, Line WB, and Southern Appalachia projects, which together will offer approximately 500,000 dekatherms per day of firm transportation for producers in the region. A significant portion of the capacity for the projects is already secured through long-term firm contracts or binding precedent agreements with prospective shippers. | ||
| Driven by increased Marcellus production, on April 15, Millennium Pipeline completed a binding open season for proposed mainline expansion projects to provide incremental firm transportation capacity to northeast markets. Prior to the open season, the company executed binding precedent agreements with two anchor shippers. The proposed expansion and the results of the open season are currently being evaluated. NiSource owns a 47.5 percent interest in Millennium. | ||
| Columbia Gulf Transmission is nearing completion of its East Lateral project, an approximately $5 million investment that modified existing facilities to provide up to 300,000 dekatherms per day of additional firm transportation service. The project will be placed in service in June. | ||
| A complementary component of NGT&S Marcellus growth strategy is investing in the infrastructure needed to serve new gas-fired electric generation facilities. One such project involves an investment by NGT&S to provide 250,000 dekatherms per day of firm long-term transportation to serve a new large gas-fired generating station in the mid-Atlantic region. The project is targeted to be placed in service in 2014. |
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| In connection with its Nov. 2010 general rate case filing with the Federal Energy Regulatory Commission, Columbia Gulf Transmission placed new rates into effect, subject to refund, on May 1. Columbia Gulf and the parties to the case are actively engaged in settlement discussions to resolve the case. |
Ongoing development and delivery of new infrastructure projects that capitalize on our core gas
transmission and storage assets remains a centerpiece of NiSources long-term growth strategy,
Skaggs said. We continue to pursue a broad range of opportunities for low-risk, value-adding
investments targeting the evolving needs of our diverse customer base.
Modernizing natural gas distribution infrastructure and services
NiSources Gas Distribution Operations continue to deliver strong results from its strategy of
aligning long-term infrastructure replacement and enhancement programs with a variety of
complementary customer programs and rate-design initiatives.
| On the regulatory front, Columbia Gas of Pennsylvania continues to advance a base rate case filed in January 2011 with the Pennsylvania Public Utility Commission. The case, which seeks increased revenues of approximately $38 million, will support the companys infrastructure and modernization efforts. In addition, the case introduces a new rate design for residential customers, new programs for senior citizen customers and a pilot energy efficiency program. New rates are expected to become effective in the fourth quarter of this year. | ||
| In addition, as part of its ongoing infrastructure improvement and modernization effort, Columbia Gas of Pennsylvania launched a two-year, $20 million investment to install Automated Meter Reading (AMR) devices on the companys residential and commercial natural gas meters. Already, nearly one million devices have been installed across NiSources gas distribution companies. | ||
| Columbia Gas of Kentucky, Columbia Gas of Massachusetts, Columbia Gas of Ohio and Columbia Gas of Pennsylvania continued to execute significant infrastructure modernization investments during the first quarter. The companies ongoing infrastructure programs, which began more than three years ago, are designed to systematically replace portions of the natural gas distribution system to help ensure continued safe and reliable service. | ||
| This quarters results reflected the first full quarterly impact from successful base rate settlements at Columbia Gas of Virginia and NIPSCO gas. Both settlements, which became effective in Nov. 2010 and Jan. 2011, respectively, included improved rate designs and customer conservation programs. |
Our focus on infrastructure modernization at our utilities continues to benefit our customers and
communities, as well as NiSource shareholders, Skaggs said. Our proactive, collaborative
approach, combined with appropriate regulatory treatment, has served us well as we execute on this
long-term core strategy.
Liquidity and Financial Management
As part of NiSources ongoing financial management, it entered into a new $1.5 billion, four-year
revolving credit facility on March 3, 2011, which replaced an existing $1.5 billion facility set to
expire in July 2011.The revolver, which was significantly oversubscribed, will be used to fund
ongoing working capital requirements and for general corporate purposes.
In addition, during the first quarter, Standard & Poors reaffirmed NiSources BBB- /stable credit
rating. Comparable ratings for the company were reaffirmed by Moodys Investors Services and Fitch
Ratings in the fourth quarter of 2010.
3
These developments serve to underscore the strengthened financial profile of NiSource, which
provides a solid foundation for our long-term, infrastructure-driven growth strategy, Skaggs said.
Affirming 2011 earnings guidance
Skaggs noted that NiSource remains on track to deliver net operating earnings solidly in line with
its full-year outlook, which for 2011 is $1.25 to $1.35 per share (non-GAAP).
Based on the continued success of the companys balanced business strategy and an extensive array
of growth investment opportunities, NiSource is expected to sustainably grow long-term earnings in
the range of 3 to 5 percent annually. In the near term particularly as the company executes a
number of regulatory initiatives over the course of the next year or so operating earnings
growth may exceed the longer-term range.
There will likely be differences between net operating earnings and GAAP earnings, but, due to the
unpredictability of weather and other factors, NiSource is not providing GAAP earnings guidance.
First
Quarter 2011 Operating Earnings Segment Results
(non-GAAP)
NiSources consolidated operating earnings (non-GAAP) for the quarter ended March 31, 2011, were
$394.9 million, compared to $405.2 million in the first quarter of 2010. Refer to Schedule 2 for
the items included in 2011 and 2010 GAAP operating income but excluded from operating earnings.
Operating earnings for NiSources business segments for the quarter ended March 31, 2011, are
discussed below.
Gas Distribution Operations reported operating earnings for the current quarter of $237.1 million
compared to $234.7 million in the first quarter of 2010. Net revenues, excluding the impact of
trackers, decreased by $8.3 million primarily attributable to decreased residential, commercial,
and industrial margins due to NIPSCOs change from a volumetric-based rate design to one with a
higher fixed charge. The new rate design provides a greater proportion of recovery through the
monthly fixed customer charge as opposed to the volumetric charge for certain customer classes. The
revenue variance experienced in the first quarter from NIPSCOs rate design change will be offset
throughout the balance of the year. This decrease was partially offset by increases in other
regulatory and service programs largely due to new rates under Columbia of Ohios approved
infrastructure replacement program.
Operating expenses, excluding trackers, were $10.7 million lower than the comparable 2010 period,
reflecting lower depreciation costs due primarily to new approved depreciation rates at NIPSCO and
decreased uncollectible costs. These decreases were partially offset by an increase in employee and
administration expenses.
Gas Transmission and Storage Operations reported operating earnings for the current quarter of
$118.5 million compared to $125.9 million in the first quarter of 2010. Net revenues, excluding the
impact of trackers, decreased by $0.1 million, primarily attributable to the recognition of a gain
in the first quarter 2010 on the previously deferred transfer of native gas provided by Columbia
Gas Transmission to Hardy Storage Company and decreased shorter term transportation and storage
services. These decreases were partially offset by an increase in demand margin revenue from growth
projects placed into service in the prior year and an increase in mineral rights royalty revenue.
Operating expenses, excluding the impact of trackers, increased $2.9 million from the comparable
2010 period due to increased outside service costs, employee and administration expenses, and
depreciation. These increases were partially offset by a decrease in other taxes.
Equity earnings decreased $4.4 million primarily from Millennium Pipeline incurring higher interest
costs associated with its August 2010 debt refinancing.
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Electric Operations reported operating earnings for the current quarter of $41.9 million compared
to $46.3 million in the first quarter of 2010. Net revenues, excluding the impact of trackers,
increased by $9.0 million primarily due to increased industrial usage and margins as a result of
improved economic conditions.
Operating expenses, excluding trackers, increased by $13.4 million primarily attributable to higher
depreciation costs. Additionally, there was an increase in employee and administration expenses,
other taxes, and an environmental adjustment.
Corporate and Other Operations reported an operating earnings loss of $2.6 million for the current
quarter compared to a loss of $1.7 million in the first quarter of 2010.
Other Items
Interest expense decreased by $9.0 million due to the Nov. 2010 long-term debt maturity and the
Dec. 2010 tender offer repurchase of long-term debt. The benefits were partially offset by
incremental interest expense associated with the issuance of long-term debt in Dec. 2010 and higher
average short-term borrowings and rates.
Other-net income of $3.3 million was recorded in 2011 compared to $2.6 million in 2010. The
effective tax rate of net operating earnings was 34.4 percent compared to 35.8 percent for the same
period last year.
Income from Continuing Operations (GAAP)
On a GAAP basis, NiSource reported income from continuing operations for the three months ended
March 31, 2011, of $204.8 million, or $0.73 per share, compared with $197.4 million, or $0.71 per
share for the comparable period in 2010.
Refer to Schedule 1 for a complete list of the items included in 2011 and 2010 GAAP income from
Continuing Operations but excluded from net operating earnings.
About NiSource
NiSource Inc. (NYSE: NI), based in Merrillville, Ind., is a Fortune 500 company engaged in natural
gas transmission, storage and distribution, as well as electric generation, transmission and
distribution. NiSource operating companies deliver energy to 3.8 million customers located within
the high-demand energy corridor stretching from the Gulf Coast through the Midwest to New England.
Information about NiSource and its subsidiaries is available via the Internet at www.nisource.com.
NI-F
Forward-Looking Statements
This news release includes forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. Those statements include statements regarding the intent, belief or current expectations
of NiSource and its management. Although NiSource believes that its expectations are based on
reasonable assumptions, it can give no assurance that its goals will be achieved. Readers are
cautioned that the forward-looking statements in this news release are not guarantees of future
performance and involve a number of risks and uncertainties, and that actual results could differ
materially from those indicated by such forward-looking statements. Important factors that could
cause actual results to differ materially from those indicated by such forward-looking statements
include, but are not limited to, the following: weather; fluctuations in supply and demand for
energy commodities; growth opportunities for NiSources businesses; increased competition in
deregulated energy markets; the success of regulatory and commercial initiatives; dealings with
third parties over whom NiSource has no control; actual operating experience of NiSources assets;
the regulatory process; regulatory and legislative changes; the impact of potential new
environmental laws or regulations; the results of material litigation; changes in pension funding
requirements; changes in general economic, capital and commodity
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market conditions; and counter-party credit risk, and the matters set forth in the Risk Factors section in
NiSources 2010 Form 10-K, many of which risks are beyond the control of NiSource. NiSource
expressly disclaims a duty to update any of the forward-looking statements contained in this
release.
6
NiSource Inc.
Consolidated Net Operating Earnings (Non GAAP)
(unaudited )
Consolidated Net Operating Earnings (Non GAAP)
(unaudited )
Three Months | ||||||||
Ended March 31, | ||||||||
(in millions,except per share amounts) | 2011 | 2010 | ||||||
Net Revenues |
||||||||
Gas Distribution |
$ | 1,367.6 | $ | 1,340.3 | ||||
Gas Transportation and Storage |
345.8 | 370.4 | ||||||
Electric |
402.9 | 318.3 | ||||||
Other |
23.9 | 22.1 | ||||||
Gross Revenues |
2,140.2 | 2,051.1 | ||||||
Cost of Sales (excluding depreciation and amortization) |
1,085.8 | 981.1 | ||||||
Total Net Revenues |
1,054.4 | 1,070.0 | ||||||
Operating Expenses |
||||||||
Operation and maintenance |
345.7 | 329.7 | ||||||
Operation and maintenance trackers |
85.4 | 107.1 | ||||||
Depreciation and amortization |
135.5 | 147.3 | ||||||
Depreciation and amortization trackers |
3.4 | 2.5 | ||||||
Other taxes |
57.0 | 54.7 | ||||||
Other taxes trackers |
35.5 | 30.9 | ||||||
Total Operating Expenses |
662.5 | 672.2 | ||||||
Equity Earnings in Unconsolidated Affiliates |
3.0 | 7.4 | ||||||
Operating Earnings |
394.9 | 405.2 | ||||||
Other Income (Deductions) |
||||||||
Interest expense, net |
(89.8 | ) | (98.8 | ) | ||||
Other, net |
3.3 | 2.6 | ||||||
Total Other Deductions |
(86.5 | ) | (96.2 | ) | ||||
Operating Earnings From Continuing Operations |
||||||||
Before Income Taxes |
308.4 | 309.0 | ||||||
Income Taxes |
106.1 | 110.6 | ||||||
Net Operating Earnings from Continuing Operations |
202.3 | 198.4 | ||||||
GAAP Adjustment |
2.5 | (1.0 | ) | |||||
GAAP Income from Continuing Operations |
$ | 204.8 | $ | 197.4 | ||||
Basic Net Operating Earnings Per Share from Continuing
Operations |
0.72 | 0.72 | ||||||
GAAP Basic Earnings Per Share from Continuing Operations |
0.73 | 0.71 | ||||||
Basic Average Common Shares Outstanding |
279.3 | 276.9 | ||||||
7
NiSource Inc.
Segment Operating Earnings (Non-GAAP)
Segment Operating Earnings (Non-GAAP)
Three Months | ||||||||
Gas Distribution Operations | Ended March 31, | |||||||
(in millions) | 2011 | 2010 | ||||||
Net Revenues |
||||||||
Sales Revenues |
$ | 1,581.1 | $ | 1,550.4 | ||||
Less: Cost of gas sold |
997.9 | 942.0 | ||||||
Net Revenues |
583.2 | 608.4 | ||||||
Operating Expenses |
||||||||
Operation and maintenance |
173.4 | 167.5 | ||||||
Operation and maintenance trackers |
68.8 | 90.3 | ||||||
Depreciation and amortization |
43.0 | 62.5 | ||||||
Other taxes |
25.4 | 22.5 | ||||||
Other taxes trackers |
35.5 | 30.9 | ||||||
Total Operating Expenses |
346.1 | 373.7 | ||||||
Operating Earnings |
$ | 237.1 | $ | 234.7 | ||||
GAAP Adjustment |
4.5 | 0.4 | ||||||
GAAP Operating Income |
$ | 241.6 | $ | 235.1 | ||||
Three Months | ||||||||
Gas Transmission and Storage Operations | Ended March 31, | |||||||
(in millions) | 2011 | 2010 | ||||||
Net Revenues |
||||||||
Transportation revenues |
$ | 199.6 | $ | 197.2 | ||||
Storage revenues |
50.5 | 49.4 | ||||||
Other revenues |
5.4 | 10.0 | ||||||
Net Operating Revenues |
255.5 | 256.6 | ||||||
Operating Expenses |
||||||||
Operation and maintenance |
80.5 | 76.6 | ||||||
Operation and maintenance trackers |
14.1 | 15.1 | ||||||
Depreciation and amortization |
32.7 | 31.5 | ||||||
Other taxes |
12.7 | 14.9 | ||||||
Total Operating Expenses |
140.0 | 138.1 | ||||||
Equity Earnings in Unconsolidated Affiliates |
3.0 | 7.4 | ||||||
Operating Earnings |
$ | 118.5 | $ | 125.9 | ||||
GAAP Adjustment |
| | ||||||
GAAP Operating Income |
$ | 118.5 | $ | 125.9 | ||||
8
NiSource Inc.
Segment Operating Earnings (Non-GAAP)
Segment Operating Earnings (Non-GAAP)
Three Months | ||||||||
Electric Operations | Ended March 31, | |||||||
(in millions) | 2011 | 2010 | ||||||
Net Revenues |
||||||||
Sales revenues |
$ | 347.6 | $ | 320.3 | ||||
Less: Cost of sales |
133.2 | 116.6 | ||||||
Net Revenues |
214.4 | 203.7 | ||||||
Operating Expenses |
||||||||
Operation and maintenance |
94.7 | 88.8 | ||||||
Operation and maintenance trackers |
2.5 | 1.7 | ||||||
Depreciation and amortization |
55.6 | 49.7 | ||||||
Depreciation and amortization trackers |
3.4 | 2.5 | ||||||
Other taxes |
16.3 | 14.7 | ||||||
Total Operating Expenses |
172.5 | 157.4 | ||||||
Operating Earnings |
$ | 41.9 | $ | 46.3 | ||||
GAAP Adjustment |
1.3 | (1.2 | ) | |||||
GAAP Operating Income |
$ | 43.2 | $ | 45.1 | ||||
Three Months | ||||||||
Corporate and Other Operations | Ended March 31, | |||||||
(in millions) | 2011 | 2010 | ||||||
Operating Loss |
$ | (2.6 | ) | $ | (1.7 | ) | ||
GAAP Adjustment |
(1.5 | ) | (1.0 | ) | ||||
GAAP Operating Loss |
$ | (4.1 | ) | $ | (2.7 | ) | ||
9
NiSource Inc.
Segment Volumes and Statistical Data
Segment Volumes and Statistical Data
Three Months | ||||||||
Ended March 31, | ||||||||
Gas Distribution Operations | 2011 | 2010 | ||||||
Sales and Transportation (MMDth) |
||||||||
Residential |
134.5 | 129.4 | ||||||
Commercial |
77.6 | 72.8 | ||||||
Industrial |
118.9 | 100.9 | ||||||
Off System |
17.5 | 15.9 | ||||||
Other |
0.3 | 0.4 | ||||||
Total |
348.8 | 319.4 | ||||||
Weather Adjustment |
(7.3 | ) | 0.3 | |||||
Sales and Transportation Volumes Excluding Weather |
341.5 | 319.7 | ||||||
Heating Degree Days |
3,014 | 2,890 | ||||||
Normal Heating Degree Days |
2,900 | 2,900 | ||||||
% Colder (Warmer) than Normal |
4 | % | (0 | %) | ||||
Customers |
||||||||
Residential |
3,047,157 | 3,045,246 | ||||||
Commercial |
282,044 | 280,207 | ||||||
Industrial |
7,705 | 7,855 | ||||||
Other |
65 | 80 | ||||||
Total |
3,336,971 | 3,333,388 | ||||||
Three Months | ||||||||
Ended March 31, | ||||||||
Gas Transmission and Storage Operations | 2011 | 2010 | ||||||
Throughput (MMDth) |
||||||||
Columbia Transmission |
426.6 | 387.5 | ||||||
Columbia Gulf |
244.0 | 202.9 | ||||||
Crossroads Gas Pipeline |
5.1 | 8.1 | ||||||
Intrasegment eliminations |
(152.6 | ) | (139.0 | ) | ||||
Total |
523.1 | 459.5 | ||||||
10
NiSource Inc.
Segment Volumes and Statistical Data (continued)
Segment Volumes and Statistical Data (continued)
Three Months | ||||||||
Ended March 31, | ||||||||
Electric Operations | 2011 | 2010 | ||||||
Sales (Gigawatt Hours) |
||||||||
Residential |
855.8 | 847.0 | ||||||
Commercial |
924.9 | 935.3 | ||||||
Industrial |
2,442.4 | 2,030.8 | ||||||
Wholesale |
67.1 | 133.4 | ||||||
Other |
44.5 | 41.4 | ||||||
Total |
4,334.7 | 3,987.9 | ||||||
Weather Adjustment |
(17.5 | ) | 5.4 | |||||
Sales Volumes Excluding Weather impacts |
4,317.2 | 3,993.3 | ||||||
Electric Customers |
||||||||
Residential |
400,169 | 400,079 | ||||||
Commercial |
53,826 | 53,611 | ||||||
Industrial |
2,424 | 2,439 | ||||||
Wholesale |
15 | 15 | ||||||
Other |
739 | 743 | ||||||
Total |
457,173 | 456,887 | ||||||
11
NiSource Inc.
Schedule 1 Reconciliation of Net Operating Earnings to GAAP
Schedule 1 Reconciliation of Net Operating Earnings to GAAP
Three Months | ||||||||
Ended March 31, | ||||||||
(in millions,except per share amounts) | 2011 | 2010 | ||||||
Net Operating Earnings from Continuing Operations
(Non-GAAP) |
$ | 202.3 | $ | 198.4 | ||||
Items excluded from operating earnings: |
||||||||
Net Revenues: |
||||||||
Weather compared to normal |
5.8 | 0.3 | ||||||
Unregulated natural gas marketing business |
1.1 | 2.0 | ||||||
Operating Expenses: |
||||||||
Restructuring |
| (1.0 | ) | |||||
Unregulated natural gas marketing business |
(2.0 | ) | (3.0 | ) | ||||
Gain/Loss on sale of assets and asset impairments |
(0.6 | ) | (0.1 | ) | ||||
Total items excluded from operating earnings |
4.3 | (1.8 | ) | |||||
Tax effect of above items and other income tax adjustments |
(1.8 | ) | 0.8 | |||||
Total items excluded from net operating earnings |
2.5 | (1.0 | ) | |||||
Reported Income from Continuing Operations GAAP |
$ | 204.8 | $ | 197.4 | ||||
Basic Average Common Shares Outstanding |
279.3 | 276.9 | ||||||
Basic Net
Operating Earnings Per Share from Continuing Operations |
$ | 0.72 | $ | 0.72 | ||||
Items excluded from net operating earnings (after-tax) |
0.01 | (0.01 | ) | |||||
GAAP Basic Earnings Per Share from Continuing Operations |
$ | 0.73 | $ | 0.71 | ||||
12
NiSource Inc.
Schedule 2 Adjustments by Segment from Operating Earnings to GAAP
For Quarter ended March 31,
Schedule 2 Adjustments by Segment from Operating Earnings to GAAP
For Quarter ended March 31,
2011 (in millions)
Gas | Gas Transmission | Corporate | ||||||||||||||||||
Distribution | and Storage | Electric | & Other | Total | ||||||||||||||||
Operating Earnings (Loss) |
$ | 237.1 | $ | 118.5 | $ | 41.9 | $ | (2.6 | ) | $ | 394.9 | |||||||||
Net Revenues: |
||||||||||||||||||||
Weather (compared to normal) |
4.5 | | 1.3 | | 5.8 | |||||||||||||||
Unregulated natural gas
marketing business |
| | | 1.1 | 1.1 | |||||||||||||||
Total Impact Net Revenues |
4.5 | | 1.3 | 1.1 | 6.9 | |||||||||||||||
Operating Expenses |
||||||||||||||||||||
Gain/(Loss) on sale of
assets and asset
impairments |
| | | (0.6 | ) | (0.6 | ) | |||||||||||||
Unregulated natural gas
marketing business |
| | | (2.0 | ) | (2.0 | ) | |||||||||||||
Total Impact Operating
Expenses |
| | | (2.6 | ) | (2.6 | ) | |||||||||||||
Total Impact Operating
Income (Loss) |
$ | 4.5 | $ | | $ | 1.3 | $ | (1.5 | ) | $ | 4.3 | |||||||||
Operating Income (Loss) -
GAAP |
$ | 241.6 | $ | 118.5 | $ | 43.2 | $ | (4.1 | ) | $ | 399.2 | |||||||||
2010 (in millions)
Gas | Gas Transmission | Corporate | ||||||||||||||||||
Distribution | and Storage | Electric | & Other | Total | ||||||||||||||||
Operating Earnings (Loss) |
$ | 234.7 | $ | 125.9 | $ | 46.3 | $ | (1.7 | ) | $ | 405.2 | |||||||||
Net Revenues: |
||||||||||||||||||||
Weather (compared to normal) |
0.8 | | (0.5 | ) | | 0.3 | ||||||||||||||
Unregulated natural gas
marketing business |
| | | 2.0 | 2.0 | |||||||||||||||
Total Impact Net Revenues |
0.8 | | (0.5 | ) | 2.0 | 2.3 | ||||||||||||||
Operating Expenses |
||||||||||||||||||||
Restructuring |
(0.3 | ) | | (0.7 | ) | | (1.0 | ) | ||||||||||||
Unregulated natural gas
marketing business |
| | | (3.0 | ) | (3.0 | ) | |||||||||||||
Gain/(Loss) on sale of
assets and asset impairments |
(0.1 | ) | | | | (0.1 | ) | |||||||||||||
Total Impact O & M Expenses |
(0.4 | ) | | (0.7 | ) | (3.0 | ) | (4.1 | ) | |||||||||||
Total Impact Operating
Income (Loss) |
$ | 0.4 | $ | | $ | (1.2 | ) | $ | (1.0 | ) | $ | (1.8 | ) | |||||||
Operating Income (Loss) -
GAAP |
$ | 235.1 | $ | 125.9 | $ | 45.1 | $ | (2.7 | ) | $ | 403.4 | |||||||||
13
NiSource Inc.
Consolidated Income Statements (GAAP)
(unaudited )
Consolidated Income Statements (GAAP)
(unaudited )
Three Months | ||||||||
Ended March 31, | ||||||||
(in millions, except per share amounts) | 2011 | 2010 | ||||||
Net Revenues |
||||||||
Gas Distribution |
$ | 1,372.0 | $ | 1,341.1 | ||||
Gas Transportation and Storage |
403.0 | 370.4 | ||||||
Electric |
347.1 | 317.9 | ||||||
Other |
110.1 | 329.3 | ||||||
Gross Revenues |
2,232.2 | 2,358.7 | ||||||
Cost of Sales (excluding depreciation and
amortization) |
1,170.9 | 1,286.3 | ||||||
Total Net Revenues |
1,061.3 | 1,072.4 | ||||||
Operating Expenses |
||||||||
Operation and maintenance |
432.5 | 439.6 | ||||||
Depreciation and amortization |
138.9 | 149.8 | ||||||
Impairment and loss on sale of assets, net |
0.7 | 0.1 | ||||||
Other taxes |
93.0 | 86.9 | ||||||
Total Operating Expenses |
665.1 | 676.4 | ||||||
Equity Earnings in Unconsolidated |
3.0 | 7.4 | ||||||
Operating Income |
399.2 | 403.4 | ||||||
Other Income (Deductions) |
||||||||
Interest expense, net |
(89.8 | ) | (98.8 | ) | ||||
Other, net |
3.3 | 2.6 | ||||||
Total Other Deductions |
(86.5 | ) | (96.2 | ) | ||||
Income from Continuing Operations before Income
Taxes |
312.7 | 307.2 | ||||||
Income Taxes |
107.9 | 109.8 | ||||||
Income from Continuing Operations |
204.8 | 197.4 | ||||||
Income (Loss) from Discontinued Operations net
of taxes |
0.4 | (0.2 | ) | |||||
Gain of Disposition of Discontinued Operations -
net of taxes |
| 0.1 | ||||||
Net Income |
$ | 205.2 | $ | 197.3 | ||||
Basic Earnings Per Share |
||||||||
Continuing operations |
$ | 0.73 | $ | 0.71 | ||||
Discontinued operations |
| | ||||||
Basic Earnings Per Share |
$ | 0.73 | $ | 0.71 | ||||
Diluted Earnings Per Share |
||||||||
Continuing operations |
$ | 0.72 | $ | 0.71 | ||||
Discontinued operations |
| | ||||||
Diluted Earnings Per Share |
$ | 0.72 | $ | 0.71 | ||||
Dividends Declared Per Common Share |
$ | 0.46 | $ | 0.46 | ||||
Basic Average Common Shares Outstanding |
279.3 | 276.9 | ||||||
Diluted Average Common Shares |
285.0 | 277.5 | ||||||
14
NiSource Inc.
Consolidated Balance Sheets (GAAP)
(unaudited )
Consolidated Balance Sheets (GAAP)
(unaudited )
March 31, | December 31, | |||||||
(in millions) | 2011 | 2010 | ||||||
ASSETS |
||||||||
Property, Plant and Equipment |
||||||||
Utility plant |
$ | 19,575.8 | $ | 19,494.9 | ||||
Accumulated depreciation and amortization |
(8,528.0 | ) | (8,492.6 | ) | ||||
Net utility plant |
11,047.8 | 11,002.3 | ||||||
Other property, at cost, less accumulated depreciation |
92.8 | 94.7 | ||||||
Net Property, Plant and Equipment |
11,140.6 | 11,097.0 | ||||||
Investments and Other Assets |
||||||||
Assets of discontinued operations and assets held for sale |
2.3 | 7.9 | ||||||
Unconsolidated affiliates |
202.6 | 200.9 | ||||||
Other investments |
136.3 | 139.7 | ||||||
Total Investments and Other Assets |
341.2 | 348.5 | ||||||
Current Assets |
||||||||
Cash and cash equivalents |
62.5 | 9.2 | ||||||
Restricted cash |
164.9 | 202.9 | ||||||
Accounts receivable (less reserve of $55.3 and $37.4, respectively) |
1,063.2 | 1,079.3 | ||||||
Income tax receivable |
20.4 | 99.0 | ||||||
Gas inventory |
81.5 | 298.2 | ||||||
Underrecovered gas and fuel costs |
25.4 | 135.7 | ||||||
Materials and supplies, at average cost |
84.4 | 83.8 | ||||||
Electric production fuel, at average cost |
51.0 | 46.0 | ||||||
Price risk management assets |
134.1 | 159.5 | ||||||
Exchange gas receivable |
65.5 | 62.7 | ||||||
Regulatory assets |
112.6 | 151.8 | ||||||
Prepayments and other |
119.7 | 120.8 | ||||||
Total Current Assets |
1,985.2 | 2,448.9 | ||||||
Other Assets |
||||||||
Price risk management assets |
188.3 | 240.3 | ||||||
Regulatory assets |
1,661.2 | 1,650.4 | ||||||
Goodwill |
3,677.3 | 3,677.3 | ||||||
Intangible assets |
305.9 | 308.6 | ||||||
Postretirement and postemployment benefit assets |
38.5 | 35.1 | ||||||
Deferred charges and other |
140.6 | 132.7 | ||||||
Total Other Assets |
6,011.8 | 6,044.4 | ||||||
Total Assets |
$ | 19,478.8 | $ | 19,938.8 | ||||
15
NiSource Inc.
Consolidated Balance Sheets (continued) (GAAP)
(unaudited )
Consolidated Balance Sheets (continued) (GAAP)
(unaudited )
March 31, | December 31, | |||||||
(in millions, except share amounts) | 2011 | 2010 | ||||||
CAPITALIZATION AND LIABILITIES |
||||||||
Capitalization |
||||||||
Common Stockholders Equity |
||||||||
Common stock $0.01 par value, 400,000,000
shares authorized; 279,930,189
and 278,855,291 shares issued and
outstanding, respectively |
$ | 2.8 | $ | 2.8 | ||||
Additional paid-in capital |
4,120.1 | 4,103.9 | ||||||
Retained earnings |
978.3 | 901.8 | ||||||
Accumulated other comprehensive loss |
(56.7 | ) | (57.9 | ) | ||||
Treasury stock |
(30.2 | ) | (27.4 | ) | ||||
Total Common Stockholders Equity |
5,014.3 | 4,923.2 | ||||||
Long-term debt, excluding amounts due within one year |
5,927.6 | 5,936.1 | ||||||
Total Capitalization |
10,941.9 | 10,859.3 | ||||||
Current Liabilities |
||||||||
Current portion of long-term debt |
36.4 | 34.2 | ||||||
Short-term borrowings |
1,263.0 | 1,382.5 | ||||||
Accounts payable |
429.6 | 581.8 | ||||||
Dividends payable |
64.5 | 0.1 | ||||||
Customer deposits and credits |
181.6 | 318.1 | ||||||
Taxes accrued |
244.4 | 221.1 | ||||||
Interest accrued |
61.2 | 114.4 | ||||||
Overrecovered gas and fuel costs |
91.8 | 11.8 | ||||||
Price risk management liabilities |
146.1 | 173.9 | ||||||
Exchange gas payable |
139.4 | 266.1 | ||||||
Deferred revenue |
7.8 | 6.8 | ||||||
Regulatory liabilities |
87.4 | 92.9 | ||||||
Accrued liability for postretirement and
postemployment benefits |
23.3 | 23.3 | ||||||
Temporary LIFO liquidation credit |
2.2 | | ||||||
Legal and environmental reserves |
68.2 | 86.0 | ||||||
Other accruals |
249.2 | 336.4 | ||||||
Total Current Liabilities |
3,096.1 | 3,649.4 | ||||||
Other Liabilities and Deferred Credits |
||||||||
Price risk management liabilities |
135.5 | 181.6 | ||||||
Deferred income taxes |
2,340.2 | 2,209.7 | ||||||
Deferred investment tax credits |
32.5 | 33.7 | ||||||
Deferred credits |
72.4 | 68.6 | ||||||
Deferred revenue |
| 0.3 | ||||||
Acrrued liability for postretirement and
postemployment benefits |
944.7 | 1,039.6 | ||||||
Regulatory liabilities and other removal costs |
1,612.0 | 1,595.8 | ||||||
Asset retirement obligations |
140.1 | 138.8 | ||||||
Other noncurrent liabilities |
163.4 | 162.0 | ||||||
Total Other Liabilities and Deferred Credits |
5,440.8 | 5,430.1 | ||||||
Total Capitalization and Liabilities |
$ | 19,478.8 | $ | 19,938.8 | ||||
16
NiSource Inc.
Statements of Consolidated Cash Flows (GAAP)
(unaudited )
Statements of Consolidated Cash Flows (GAAP)
(unaudited )
Three Months Ended March 31, (in millions) | 2011 | 2010 | ||||||
Operating Activities |
||||||||
Net Income |
$ | 205.2 | $ | 197.3 | ||||
Adjustments to Reconcile Net Income to Net Cash from Continuing
Operations: |
||||||||
Depreciation and amortization |
138.9 | 149.8 | ||||||
Net changes in price risk management assets and liabilities |
14.3 | (7.4 | ) | |||||
Deferred income taxes and investment tax credits |
99.4 | 27.2 | ||||||
Deferred revenue |
0.7 | (15.8 | ) | |||||
Stock compensation expense and 401(k) profit sharing contribution |
7.8 | 2.2 | ||||||
Gain on sale of assets |
| (0.1 | ) | |||||
Loss on impairment of assets |
0.7 | | ||||||
Income from unconsolidated affiliates |
(3.1 | ) | (7.4 | ) | ||||
Gain on disposition of discontinued operations net of taxes |
| (0.1 | ) | |||||
(Gain) loss from discontinued operations net of taxes |
(0.4 | ) | 0.2 | |||||
Amortization of debt related costs |
2.1 | 2.7 | ||||||
AFUDC equity |
(1.4 | ) | (1.4 | ) | ||||
Distributions of earnings received from equity investee |
1.8 | | ||||||
Changes in Assets and Liabilities: |
||||||||
Accounts receivable |
16.0 | (138.4 | ) | |||||
Income tax receivable |
78.6 | 22.1 | ||||||
Inventories |
208.5 | 332.7 | ||||||
Accounts payable |
(119.9 | ) | (103.0 | ) | ||||
Customer deposits and credits |
(136.5 | ) | (124.7 | ) | ||||
Taxes accrued |
24.1 | 96.4 | ||||||
Interest accrued |
(53.0 | ) | (38.9 | ) | ||||
Over (Under)recovered gas and fuel costs |
190.4 | (251.1 | ) | |||||
Exchange gas receivable/payable |
(129.6 | ) | (66.7 | ) | ||||
Other accruals |
(34.1 | ) | (17.2 | ) | ||||
Prepayments and other current assets |
1.3 | 5.4 | ||||||
Regulatory assets/liabilities |
18.6 | 47.8 | ||||||
Postretirement and postemployment benefits |
(94.4 | ) | 1.3 | |||||
Deferred credits |
3.5 | (1.1 | ) | |||||
Deferred charges and other non current assets |
(3.6 | ) | (2.6 | ) | ||||
Other non current liabilities |
0.9 | 5.2 | ||||||
Net Operating Activities from Continuing Operations |
436.8 | 114.4 | ||||||
Net Operating Activities used for Discontinued Operations |
(14.7 | ) | (31.1 | ) | ||||
Net Cash Flows from Operating Activities |
422.1 | 83.3 | ||||||
Investing Activities |
||||||||
Capital expenditures |
(209.4 | ) | (138.8 | ) | ||||
Insurance recoveries |
| 0.5 | ||||||
Proceeds from disposition of assets |
5.5 | 0.2 | ||||||
Restricted cash withdrawals (deposits) |
38.0 | (46.1 | ) | |||||
Other investing activities |
(9.2 | ) | (10.6 | ) | ||||
Net Investing Activities used for Continuing Operations |
(175.1 | ) | (194.8 | ) | ||||
Net Investing Activities from Discontinued Operations |
| 0.4 | ||||||
Net Cash Flow used for Investing Activities |
(175.1 | ) | (194.4 | ) | ||||
Financing Activities |
||||||||
Retirement of long-term debt |
(2.8 | ) | (0.9 | ) | ||||
Premiums and other debt related costs |
(8.2 | ) | | |||||
Change in short-term borrowings, net |
(119.5 | ) | 267.7 | |||||
Issuance of common stock |
3.7 | 3.6 | ||||||
Acquisition of treasury stock |
(2.7 | ) | (1.4 | ) | ||||
Dividends paid common stock |
(64.2 | ) | (63.7 | ) | ||||
Net Cash Flow (used for) from Financing Activities |
(193.7 | ) | 205.3 | |||||
Change in cash and cash equivalents from continuing operations |
68.0 | 124.9 | ||||||
Cash contributions to discontinued operations |
(14.7 | ) | (30.7 | ) | ||||
Cash and cash equivalents at beginning of period |
9.2 | 16.4 | ||||||
Cash and Cash Equivalents at End of Period |
$ | 62.5 | $ | 110.6 | ||||
17