Attached files
| file | filename |
|---|---|
| EX-99.1 - EXHIBIT 99.1 - ANNUAL EARNINGS 2017 - PRESS RELEASE - VECTREN CORP | a1231178k-exhibit991pressr.htm |
| 8-K - 8-K - ANNUAL EARNINGS RELEASE FOR 2017 10-K - VECTREN CORP | a8k-2017annualearningsrele.htm |
| EX-99.4 - EXHIBIT 99.4 ANNUAL EARNINGS RELEASE - FLS - VECTREN CORP | a1231178k-exhibit994forwar.htm |
| EX-99.3 - EXHIBIT 99.3 - RECONCILIATION GAAP TO NON-GAAP - VECTREN CORP | a1231178k-reconciliationga.htm |
EXHIBIT 99.2
VECTREN CORPORATION | ||||||||||||||||
AND SUBSIDIARY COMPANIES | ||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||
(Unaudited - in millions, except per share amounts) | ||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
OPERATING REVENUES: | ||||||||||||||||
Gas utility | $ | 255.5 | $ | 240.9 | $ | 812.7 | $ | 771.7 | ||||||||
Electric utility | 136.6 | 142.5 | 569.6 | 605.8 | ||||||||||||
Nonutility | 318.9 | 315.6 | 1,275.0 | 1,070.8 | ||||||||||||
Total operating revenues | 711.0 | 699.0 | 2,657.3 | 2,448.3 | ||||||||||||
OPERATING EXPENSES: | ||||||||||||||||
Cost of gas sold | 97.4 | 92.1 | 271.5 | 266.7 | ||||||||||||
Cost of fuel and purchased power | 43.0 | 43.4 | 171.8 | 183.6 | ||||||||||||
Cost of nonutility revenues | 125.8 | 114.8 | 444.2 | 363.4 | ||||||||||||
Other operating | 320.6 | 245.3 | 1,115.9 | 932.2 | ||||||||||||
Depreciation and amortization | 70.6 | 66.6 | 276.2 | 260.0 | ||||||||||||
Taxes other than income taxes | 16.8 | 16.1 | 59.3 | 60.9 | ||||||||||||
Total operating expenses | 674.2 | 578.3 | 2,338.9 | 2,066.8 | ||||||||||||
OPERATING INCOME | 36.8 | 120.7 | 318.4 | 381.5 | ||||||||||||
OTHER INCOME: | ||||||||||||||||
Equity in earning (losses) of unconsolidated affiliates | (0.1 | ) | — | (1.1 | ) | (0.2 | ) | |||||||||
Other income - net | 7.6 | 6.8 | 32.8 | 28.7 | ||||||||||||
Total other income | 7.5 | 6.8 | 31.7 | 28.5 | ||||||||||||
INTEREST EXPENSE | 22.8 | 21.2 | 87.7 | 85.5 | ||||||||||||
INCOME BEFORE INCOME TAXES | 21.5 | 106.3 | 262.4 | 324.5 | ||||||||||||
INCOME TAXES | (39.7 | ) | 36.7 | 46.4 | 112.9 | |||||||||||
NET INCOME | $ | 61.2 | $ | 69.6 | $ | 216.0 | $ | 211.6 | ||||||||
WEIGHTED AVERAGE AND DILUTED COMMON SHARES | ||||||||||||||||
OUTSTANDING | 83.0 | 82.9 | 83.0 | 82.8 | ||||||||||||
BASIC AND DILUTED EARNINGS PER SHARE OF COMMON STOCK | $ | 0.74 | $ | 0.84 | $ | 2.60 | $ | 2.55 | ||||||||
EXHIBIT 99.2
VECTREN UTILITY HOLDINGS | ||||||||||||||||
AND SUBSIDIARY COMPANIES | ||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||
(Unaudited - in millions) | ||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
OPERATING REVENUES: | ||||||||||||||||
Gas utility | $ | 255.5 | $ | 240.9 | $ | 812.7 | $ | 771.7 | ||||||||
Electric utility | 136.6 | 142.5 | 569.6 | 605.8 | ||||||||||||
Other | — | 0.1 | 0.3 | 0.3 | ||||||||||||
Total operating revenues | 392.1 | 383.5 | 1,382.6 | 1,377.8 | ||||||||||||
OPERATING EXPENSES: | ||||||||||||||||
Cost of gas sold | 97.4 | 92.1 | 271.5 | 266.7 | ||||||||||||
Cost of fuel and purchased power | 43.0 | 43.4 | 171.8 | 183.6 | ||||||||||||
Other operating | 118.3 | 82.8 | 370.4 | 333.6 | ||||||||||||
Depreciation and amortization | 60.1 | 56.3 | 234.5 | 219.1 | ||||||||||||
Taxes other than income taxes | 15.8 | 15.4 | 55.9 | 58.3 | ||||||||||||
Total operating expenses | 334.6 | 290.0 | 1,104.1 | 1,061.3 | ||||||||||||
OPERATING INCOME | 57.5 | 93.5 | 278.5 | 316.5 | ||||||||||||
OTHER INCOME - NET | 7.4 | 6.4 | 30.6 | 26.3 | ||||||||||||
INTEREST EXPENSE | 19.1 | 17.5 | 72.6 | 69.7 | ||||||||||||
INCOME BEFORE INCOME TAXES | 45.8 | 82.4 | 236.5 | 273.1 | ||||||||||||
INCOME TAXES | (7.8 | ) | 31.1 | 60.7 | 99.5 | |||||||||||
NET INCOME | $ | 53.6 | $ | 51.3 | $ | 175.8 | $ | 173.6 | ||||||||
EXHIBIT 99.2
VECTREN CORPORATION | ||||||||
AND SUBSIDIARY COMPANIES | ||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||
(Unaudited - in millions) | ||||||||
December 31, | December 31, | |||||||
2017 | 2016 | |||||||
ASSETS | ||||||||
Current Assets | ||||||||
Cash & cash equivalents | $ | 16.6 | $ | 68.6 | ||||
Accounts receivable - less reserves of $5.1 & | ||||||||
$6.0, respectively | 262.9 | 225.3 | ||||||
Accrued unbilled revenues | 207.1 | 172.4 | ||||||
Inventories | 126.6 | 129.9 | ||||||
Recoverable fuel & natural gas costs | 19.2 | 29.9 | ||||||
Prepayments & other current assets | 47.0 | 52.7 | ||||||
Total current assets | 679.4 | 678.8 | ||||||
Utility Plant | ||||||||
Original cost | 7,015.4 | 6,545.4 | ||||||
Less: accumulated depreciation & amortization | 2,738.7 | 2,562.5 | ||||||
Net utility plant | 4,276.7 | 3,982.9 | ||||||
Investments in unconsolidated affiliates | 19.7 | 20.4 | ||||||
Other utility & corporate investments | 43.7 | 34.1 | ||||||
Other nonutility investments | 9.6 | 16.1 | ||||||
Nonutility plant - net | 464.1 | 423.9 | ||||||
Goodwill | 293.5 | 293.5 | ||||||
Regulatory assets | 416.8 | 308.8 | ||||||
Other assets | 35.8 | 42.2 | ||||||
TOTAL ASSETS | $ | 6,239.3 | $ | 5,800.7 | ||||
LIABILITIES & SHAREHOLDERS' EQUITY | ||||||||
Current Liabilities | ||||||||
Accounts payable | $ | 366.2 | $ | 302.2 | ||||
Accrued liabilities | 222.3 | 207.7 | ||||||
Short-term borrowings | 249.5 | 194.4 | ||||||
Current maturities of long-term debt | 100.0 | 124.1 | ||||||
Total current liabilities | 938.0 | 828.4 | ||||||
Long-term Debt - Net of Current Maturities | 1,738.7 | 1,589.9 | ||||||
Deferred Credits & Other Liabilities | ||||||||
Deferred income taxes | 491.3 | 905.7 | ||||||
Regulatory liabilities | 937.2 | 453.7 | ||||||
Deferred credits & other liabilities | 284.8 | 254.9 | ||||||
Total deferred credits & other liabilities | 1,713.3 | 1,614.3 | ||||||
Common Shareholders' Equity | ||||||||
Common stock (no par value) – issued & outstanding | ||||||||
83.0 and 82.9 shares, respectively | 736.9 | 729.8 | ||||||
Retained earnings | 1,113.7 | 1,039.6 | ||||||
Accumulated other comprehensive (loss) | (1.3 | ) | (1.3 | ) | ||||
Total common shareholders' equity | 1,849.3 | 1,768.1 | ||||||
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY | $ | 6,239.3 | $ | 5,800.7 | ||||
EXHIBIT 99.2
VECTREN CORPORATION | ||||||||
AND SUBSIDIARY COMPANIES | ||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
(Millions - Unaudited) | ||||||||
Twelve Months Ended | ||||||||
December 31, | ||||||||
2017 | 2016 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
Net income | $ | 216.0 | $ | 211.6 | ||||
Adjustments to reconcile net income to cash from operating activities: | ||||||||
Depreciation & amortization | 276.2 | 260.0 | ||||||
Deferred income taxes & investment tax credits | 19.0 | 100.1 | ||||||
Provision for uncollectible accounts | 5.9 | 6.9 | ||||||
Expense portion of pension & postretirement benefit cost | 5.4 | 3.6 | ||||||
Other non-cash items - net | 12.9 | 7.8 | ||||||
Changes in working capital accounts: | ||||||||
Accounts receivable & accrued unbilled revenues | (80.9 | ) | (39.6 | ) | ||||
Inventories | 3.3 | 3.9 | ||||||
Recoverable/refundable fuel & natural gas costs | 10.7 | (37.8 | ) | |||||
Prepayments & other current assets | 5.7 | 22.9 | ||||||
Accounts payable, including to affiliated companies | 65.9 | 40.7 | ||||||
Accrued liabilities | 15.6 | 22.7 | ||||||
Employer contributions to pension & postretirement plans | (4.6 | ) | (19.6 | ) | ||||
Changes in noncurrent assets | (40.6 | ) | (44.0 | ) | ||||
Changes in noncurrent liabilities | (11.7 | ) | (15.1 | ) | ||||
Net cash from operating activities | 498.8 | 524.1 | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
Proceeds from: | ||||||||
Long-term debt, net of issuance costs | 198.5 | — | ||||||
Dividend reinvestment plan & other common stock issuances | 6.3 | 6.3 | ||||||
Requirements for: | ||||||||
Dividends on common stock | (141.9 | ) | (134.2 | ) | ||||
Retirement of long-term debt | (75.0 | ) | (73.0 | ) | ||||
Net change in short-term borrowings | 55.1 | 179.9 | ||||||
Net cash from financing activities | 43.0 | (21.0 | ) | |||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
Proceeds from sale of assets and other collections | 11.3 | 33.0 | ||||||
Requirements for: | ||||||||
Capital expenditures, excluding AFUDC equity | (602.6 | ) | (542.0 | ) | ||||
Other costs | (3.4 | ) | (5.2 | ) | ||||
Changes in restricted cash | 0.9 | 5.0 | ||||||
Net cash from investing activities | (593.8 | ) | (509.2 | ) | ||||
Net change in cash & cash equivalents | (52.0 | ) | (6.1 | ) | ||||
Cash & cash equivalents at beginning of period | 68.6 | 74.7 | ||||||
Cash & cash equivalents at end of period | $ | 16.6 | $ | 68.6 | ||||
EXHIBIT 99.2
VECTREN CORPORATION | ||||||||||||||||
AND SUBSIDIARY COMPANIES | ||||||||||||||||
HIGHLIGHTS | ||||||||||||||||
(Unaudited - in millions, except per share amounts) | ||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
REPORTED EARNINGS: | ||||||||||||||||
Utility Group | ||||||||||||||||
Gas Utility Services * | $ | 59.7 | $ | 30.1 | $ | 115.5 | $ | 76.1 | ||||||||
Electric Utility Services | 18.4 | 17.7 | 75.2 | 84.7 | ||||||||||||
Other Operations ** | (24.5 | ) | 3.5 | (14.9 | ) | 12.8 | ||||||||||
Total Utility Group | 53.6 | 51.3 | 175.8 | 173.6 | ||||||||||||
Nonutility Group | ||||||||||||||||
Infrastructure Services | 3.7 | 15.1 | 32.3 | 25.0 | ||||||||||||
Energy Services | 5.9 | 3.8 | 10.7 | 12.5 | ||||||||||||
Other Businesses | (1.5 | ) | (0.2 | ) | (1.9 | ) | (0.6 | ) | ||||||||
Nonutility Group | 8.1 | 18.7 | 41.1 | 36.9 | ||||||||||||
Corporate and Other | (0.5 | ) | (0.4 | ) | (0.9 | ) | 1.1 | |||||||||
Vectren Consolidated | $ | 61.2 | $ | 69.6 | $ | 216.0 | $ | 211.6 | ||||||||
EARNINGS PER SHARE: | ||||||||||||||||
Utility Group | $ | 0.65 | $ | 0.62 | $ | 2.12 | $ | 2.10 | ||||||||
Nonutility Group | 0.10 | 0.23 | 0.49 | 0.44 | ||||||||||||
Corporate and Other | (0.01 | ) | (0.01 | ) | (0.01 | ) | 0.01 | |||||||||
Reported EPS | $ | 0.74 | $ | 0.84 | $ | 2.60 | $ | 2.55 | ||||||||
* Gas Utility Services - The quarter and annual periods in 2017 reflect a $27.3 million reduction in income tax expense as a result of the revaluation of deferred income taxes at December 31, 2017, related to acquisition goodwill for the Ohio operations that is not being recovered in rates. This revaluation of deferred income taxes results from the federal tax reform outlined in the Tax Cuts and Jobs Act of 2017. | ||||||||||||||||
** Other Operations - The quarter and annual periods in 2017 reflect a charge totaling $27.3 million to fund the Vectren Foundation. | ||||||||||||||||
EXHIBIT 99.2
VECTREN CORPORATION | ||||||||||||||||
AND SUBSIDIARY COMPANIES | ||||||||||||||||
SELECTED GAS DISTRIBUTION | ||||||||||||||||
OPERATING STATISTICS | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
GAS UTILITY (Millions): | ||||||||||||||||
Residential Margin | $ | 92.4 | $ | 88.1 | $ | 323.8 | $ | 303.4 | ||||||||
Commercial Margin | 26.8 | 25.4 | 88.5 | 82.5 | ||||||||||||
Industrial Margin | 20.9 | 19.9 | 73.9 | 67.1 | ||||||||||||
Other Margin | 2.0 | 1.7 | 8.4 | 7.4 | ||||||||||||
Regulatory Expense Recovery Mechanisms | 16.0 | 13.7 | 46.6 | 44.6 | ||||||||||||
Total Gas Utility Margin | 158.1 | 148.8 | 541.2 | 505.0 | ||||||||||||
Cost of Gas Sold | 97.4 | 92.1 | 271.5 | 266.7 | ||||||||||||
Total Gas Utility Revenue | $ | 255.5 | $ | 240.9 | $ | 812.7 | $ | 771.7 | ||||||||
GAS SOLD & TRANSPORTED (MMDth): | ||||||||||||||||
Residential | 26.0 | 22.1 | 66.5 | 66.6 | ||||||||||||
Commercial | 11.8 | 9.9 | 30.6 | 30.6 | ||||||||||||
Industrial | 35.0 | 33.2 | 122.2 | 127.0 | ||||||||||||
72.8 | 65.2 | 219.3 | 224.2 | |||||||||||||
AVERAGE GAS CUSTOMERS | ||||||||||||||||
Residential | 937,696 | 929,128 | 934,813 | 927,050 | ||||||||||||
Commercial | 85,563 | 85,103 | 85,479 | 85,190 | ||||||||||||
Industrial | 1,744 | 1,734 | 1,742 | 1,729 | ||||||||||||
1,025,003 | 1,015,965 | 1,022,034 | 1,013,969 | |||||||||||||
WEATHER AS A PERCENT OF NORMAL (ANNUALIZED): | ||||||||||||||||
Heating Degree Days (Ohio) | 101 | % | 96 | % | 90 | % | 93 | % | ||||||||
Heating Degree Days (Indiana) | 100 | % | 94 | % | 80 | % | 84 | % | ||||||||
EXHIBIT 99.2
VECTREN CORPORATION | ||||||||||||||||
AND SUBSIDIARY COMPANIES | ||||||||||||||||
SELECTED ELECTRIC | ||||||||||||||||
OPERATING STATISTICS | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
ELECTRIC UTILITY (Millions): | ||||||||||||||||
Residential Margin | $ | 32.3 | $ | 32.1 | $ | 148.6 | $ | 153.6 | ||||||||
Commercial Margin | 25.5 | 26.2 | 106.3 | 107.6 | ||||||||||||
Industrial Margin | 23.7 | 27.3 | 96.9 | 112.1 | ||||||||||||
Other Margin | 2.9 | 3.2 | 5.6 | 5.8 | ||||||||||||
Regulatory Expense Recovery Mechanisms | 1.5 | 2.1 | 9.6 | 13.7 | ||||||||||||
Wholesale and Transmission | 7.7 | 8.2 | 30.8 | 29.4 | ||||||||||||
Total Electric Utility Margin | 93.6 | 99.1 | 397.8 | 422.2 | ||||||||||||
Cost of Fuel & Purchased Power | 43.0 | 43.4 | 171.8 | 183.6 | ||||||||||||
Total Electric Utility Revenue | $ | 136.6 | $ | 142.5 | $ | 569.6 | $ | 605.8 | ||||||||
ELECTRICITY SOLD (GWh): | ||||||||||||||||
Residential | 296.2 | 294.0 | 1,362.5 | 1,424.5 | ||||||||||||
Commercial | 299.8 | 312.4 | 1,276.3 | 1,304.5 | ||||||||||||
Industrial | 495.8 | 612.3 | 2,096.5 | 2,722.3 | ||||||||||||
Other Sales - Street Lighting | 6.3 | 6.3 | 22.3 | 22.9 | ||||||||||||
Total Retail | 1,098.1 | 1,225.0 | 4,757.6 | 5,474.2 | ||||||||||||
Wholesale | 167.4 | 98.8 | 463.2 | 136.1 | ||||||||||||
1,265.5 | 1,323.8 | 5,220.8 | 5,610.3 | |||||||||||||
AVERAGE ELECTRIC CUSTOMERS | ||||||||||||||||
Residential | 126,758 | 125,911 | 126,443 | 125,662 | ||||||||||||
Commercial | 18,675 | 18,607 | 18,648 | 18,551 | ||||||||||||
Industrial | 112 | 113 | 112 | 113 | ||||||||||||
Other | 40 | 39 | 40 | 39 | ||||||||||||
145,585 | 144,670 | 145,243 | 144,365 | |||||||||||||
WEATHER AS A PERCENT OF NORMAL (ANNUALIZED): | ||||||||||||||||
Cooling Degree Days (Indiana) | 103 | % | 106 | % | 111 | % | 125 | % | ||||||||
Heating Degree Days (Indiana) | 100 | % | 94 | % | 80 | % | 84 | % | ||||||||