Vectren Reports 2001 First Quarter Results

Apr 25, 2001, 01:00 ET from Vectren Corporation

    EVANSVILLE, Ind., April 25 /PRNewswire/ --
 Vectren Corporation (NYSE:   VVC) today reported 2001 first quarter earnings of
 $44.4 million or $.68 per share, compared to net income for the first quarter
 of 2000 of $22.1 million or $.36 per share.
     Consolidated net income before merger related costs and the cumulative
 effect of the change in accounting principle was $43.0 million ($.66 EPS) for
 the quarter ended March 31, 2001, as compared to net income before merger
 related costs of $41.4 million ($.68 EPS) for the same period in 2000.
     According to Vectren Chairman and Chief Executive Officer, Niel C.
 Ellerbrook, "Vectren had a very strong first quarter particularly after
 considering the expenses associated with the extraordinarily high gas costs
 experienced throughout this quarter.  Our utility group saw sizable increases
 in interest expense and customer service operating costs as the result of gas
 costs nearly tripling those of the prior year, however, growth in our
 non-regulated group continues with our gas marketers and other investments
 having a very strong quarter."
 
     Specific first quarter highlights include:
     * Contributions from the non-regulated group before merger costs were
       $.14 per share in 2001 compared to $.16 in 2000.  Excluding the one time
       $.08 gain recorded in 2000 due to the restructuring of an investment in
       SIGECOM, the non-regulated group increased its contribution by $.06 per
       share.
 
     * The net of tax impact of merger related costs including the accelerated
       depreciation on the information system to be retired by
       December 31, 2001 was $2.6 million or $.04 per share in 2001 as compared
       to $19.3 million or $.32 per share in 2000.
 
     * The cumulative effect of the change in accounting principle due to the
       adoption of FAS 133 by the regulated wholesale power group, requiring
       mark to market accounting for certain power contracts was a favorable
       $3.9 million net of tax adjustment or $.06 per share.
 
     * Utility operating margins were $179.3 million, a $44.1 million increase
       over the same period last year.  This was due to additional gas
       throughput as a result of the Ohio asset acquisition, increased gas and
       electric sales on colder heating weather and gains recognized from
       wholesale power marketing with purchase and sales contracts now
       reflecting current market values under FAS 133.
 
     Please see attached unaudited schedules for additional financial
 information.
     In conjunction with Vectren Corporation's first quarter earnings release,
 you are invited to listen in real-time to its conference call on April 26 at
 9:30 a.m. EDT.  The call will also be available for replay.  A link to the
 live broadcast and replay will be available on Vectren's Web site at
 http://www.vectren.com .
 
     Vectren Corporation is an energy and applied technology holding company
 headquartered in Evansville, Indiana.  Vectren's energy delivery subsidiaries
 provide gas and/or electricity to nearly one million customers in adjoining
 service territories that cover nearly two-thirds of Indiana and west central
 Ohio.  Vectren's non-regulated subsidiaries and affiliates currently offer
 energy-related products and services, broadband communication services, and
 utility related services including coal production and sales, underground
 pipeline construction and repair, facilities locating and meter reading
 services, materials management and debt collections to customers throughout
 the surrounding region.  To learn more about Vectren, visit www.vectren.com .
     NOTE:  Net income for the three-month period ended March 31 is not
 indicative of net income for an annual period due to seasonal sales of gas and
 electric for space heating and cooling purposes.
 
     This press release may contain forward-looking statements.  Vectren wishes
 to caution readers that actual results could differ materially from those that
 will be projected in our discussions.  Additional detailed information
 concerning a number of factors that could cause actual results to differ
 materially from the information that is provided to you is readily available
 in our report Form 10-K filed with the Securities and Exchange Commission on
 March 30, 2001.
 
     Investor Contact:  Steven M. Schein, 812-491-4209, sschein@vectren.com
 
     Media Contact:     Jeffrey W. Whiteside, 812-491-4205,
                          jwhiteside@vectren.com .
 
 
             Vectren Corporation                3 Months          12 Months
             Selected Highlights             Ended March 31     Ended March 31
                 (Unaudited)                  2001     2000     2001 *    2000
 
     Basic and Diluted Earnings Per Average Share:
 
     Utility Group                          $ 0.54   $ 0.21   $ 1.20    $ 0.85
     Non-regulated Group
       Energy Services                        0.08     0.03     0.16      0.16
       Utility Services                         --     0.01     0.03      0.03
       Communications                        (0.01)    0.08    (0.02)     0.09
       Corporate and Other                    0.07     0.03     0.14      0.05
           Total Non-regulated                0.14     0.15     0.31      0.33
         Total Earnings Per Average Share** $ 0.68   $ 0.36   $ 1.51    $ 1.18
       Merger and Integration Costs           0.04     0.32     0.32      0.32
       Cumulative Effect of Change in
        Accounting Principle                 (0.06)      --    (0.06)       --
         Total Before Merger and Integration
          Costs and Cumulative Effect of
          Change in Accounting              $ 0.66   $ 0.68   $ 1.77    $ 1.50
 
     Summary of Impact of Merger and
      Integration Costs:
     (millions, except per share data)
 
          Merger and Integration Costs      $  1.0   $ 27.2   $ 14.9    $ 27.2
          Depreciation                         3.2       --     14.6        --
          Income Taxes                        (1.6)    (7.9)    (9.4)     (7.9)
               Total                        $  2.6   $ 19.3   $ 20.1    $ 19.3
         EPS Impact of Merger and
          Integration Costs                 $ 0.04   $ 0.32   $ 0.32    $ 0.32
            Utility Group                   $ 0.04   $ 0.31   $ 0.32    $ 0.31
            Non-regulated Group             $   --   $ 0.01   $   --    $ 0.01
 
     EBITDA (millions)
       Utility Group                        $ 98.6   $ 45.6   $263.9    $201.5
       Non-regulated Group                    20.1     25.8     52.5      41.5
         Total                              $118.7   $ 71.4   $316.4    $243.0
       Merger and Integration Costs            1.0     27.2     14.9      27.2
       Cumulative Effect of Change in
        Accounting Principle                  (6.3)      --     (6.3)       --
         Total Before Merger and Integration
          Costs and Cumulative Effect of
          Change in Accounting              $113.4   $ 98.6   $325.0    $270.2
 
     Dividends Paid (per common share,
      12 months)                            $ 1.00   $ 0.95
 
     Annualized Dividend                    $ 1.02   $ 0.97
 
     Dividend Yield (at close)                4.8%      N/A
 
     Dividend Payout Ratio                   66.2%    80.5%
 
     Dividend to Book Value                   7.9%     8.3%
 
     Return on Average Shareholder Equity    10.9%    10.2%
 
     Book Value Per Share                   $12.92   $11.70
 
     Market to Book Value (at close)          166%      N/A
 
     Common Stock Prices (VVC - NYSE)
 
          High (during first quarter)       $24.44      N/A
          Low (during first quarter)        $20.50      N/A
          Close                             $21.40      N/A
     Price/Earnings Ratio (trailing)          14.2      N/A
 
     Percent Internally Generated Funds -
      Utility Group                            95%      60%
 
     Ratio of Earnings to Fixed Charges -
      SEC Method
 
             Consolidated                      2.9      3.3
             Utility Group                     3.0      3.2
 
 
     *  Selected highlights for the twelve months ended March 31, 2001 include
        five months of operations resulting from the acquisition of the Ohio
        operations on October 31, 2000.
 
     ** Diluted earnings per share for the three months ended March 31, 2001,
        are $0.67.  Basic and diluted earnings per share for all other periods
        are equal.
 
 
       VECTREN CORPORATION               3 Months                12 Months
         SELECTED UTILITY              Ended March 31          Ended March 31
       OPERATING STATISTICS
           (Unaudited)               2001         2000       2001 *       2000
 
     WEATHER AS A PERCENT OF NORMAL:
 
         Heating Degree Days          99%          86%       103%          82%
         Cooling Degree Days           0%           0%        93%          94%
 
     GAS MARGIN (Thousands):
 
     Operating Revenues           522,889      200,845  1,140,797      509,236
     Cost of Gas                  404,072      118,527    838,085      281,457
     Margin                       118,817       82,318    302,712      227,779
 
     ELECTRIC MARGIN
      (Thousands):
 
          Operating Revenues       88,209       72,990    351,628      309,572
          Cost of Fuel &
           Purchased Power         27,714       20,050    115,228       88,256
          Margin                   60,495       52,940    236,400      221,316
 
     GAS SOLD & TRANSPORTED
      (MDth):
 
          Residential              38,060       23,691     80,095       48,923
          Commercial               14,508        9,528     30,930       19,938
          Contract                 30,109       23,325     96,346       79,147
 
                                   82,677       56,544    207,371      148,008
 
     ELECTRICITY SOLD (MWh):
 
          Residential             351,407      316,034  1,418,536    1,341,757
          Commercial              301,865      290,617  1,347,295    1,302,755
          Industrial              576,290      598,400  2,469,862    2,464,092
                                       --           --         --           --
          Miscellaneous Sales       5,287        5,270     19,249       19,161
 
            Total Retail        1,234,849    1,210,321  5,254,942    5,127,765
 
          Municipals and Jasper   137,913      157,974    650,134      674,246
 
          Other Wholesale         780,923      381,274  2,023,740    1,196,293
                                2,153,685    1,749,569  7,928,816    6,998,304
 
     * Gas operating statistics for the twelve months ended March 31, 2001
       include five months of operations resulting from the acquisition of the
       Ohio operations on October 31, 2000.
 
 
     GAS OPERATING REVENUES
      (Thousands):
 
          Residential             351,991      137,341    750,944      334,339
          Commercial              126,641       49,967    265,895      116,061
          Contract                 41,420       11,643    114,673       52,887
          Miscellaneous Revenue     2,837        1,894      9,285        5,949
 
                                  522,889      200,845  1,140,797      509,236
 
     ELECTRIC OPERATING
      REVENUES (Thousands):
 
          Residential              21,892       19,965     96,035       89,573
          Commercial               16,449       15,663     75,389       69,462
          Industrial               18,453       19,106     83,069       81,159
          Miscellaneous Revenue     1,395        2,160      4,528        7,694
            Total Retail           58,189       56,894    259,021      247,888
 
          Municipals and Jasper     4,717        5,352     23,011       23,841
          Other Wholesale          25,303       10,744     69,596       37,843
 
                                   88,209       72,990    351,628      309,572
 
     AVERAGE GAS CUSTOMERS:
 
          Residential             865,040      569,674    856,226      557,435
          Commercial               80,274       57,249     79,662       56,281
          Contract                  3,745        1,257      4,337        1,250
 
                                  949,059 **   628,180    940,225 **   614,966
 
     AVERAGE ELECTRIC
      CUSTOMERS:
 
          Residential             115,025      110,289    111,288      109,457
          Commercial               17,217       16,454     16,716       16,141
          Industrial                  187          195        180          197
 
                                  132,429      126,938    128,184      125,795
 
     *  Gas operating statistics for the twelve months ended March 31, 2001,
        include five months of operations resulting from the acquisition of the
        Ohio operations on October 31, 2000.
 
     ** Average gas customers for three months ended and twelve months ended
        March 31, 2001, include 312,314  and 311,546 average customers,
        respectively, for the Ohio operations.
 
 
                                VECTREN CORPORATION
                              AND SUBSIDIARY COMPANIES
 
                         CONSOLIDATED STATEMENTS OF INCOME
                       (Thousands, except for share amounts)
                                    (Unaudited)
 
                                        Three Months          Twelve Months
                                       Ended March 31         Ended March 31
                                       2001      2000        2001       2000
     OPERATING REVENUES:
       Gas utility                 $522,889  $200,845  $1,140,797   $509,236
       Electric utility              88,209    72,990     351,628    309,572
       Energy services and other    271,990    85,609     679,909    288,020
           Total operating
            revenues                883,088   359,444   2,172,334  1,106,828
 
     OPERATING EXPENSES:
       Cost of gas sold             404,072   118,527     838,085    281,457
       Fuel for electric generation  14,561    16,573      69,158     67,250
       Purchased electric energy     13,153     3,477      46,070     21,006
       Cost of energy services and
        other                       265,204    81,722     656,740    273,142
       Other operating               61,432    46,426     214,597    191,215
       Merger and integration costs     962    27,181      14,926     27,181
       Depreciation and
        amortization                 31,471    22,662     114,470     88,435
       Taxes other than income
        taxes                        19,543     8,600      48,953     30,227
           Total operating
            expenses                810,398   325,168   2,002,999    979,913
 
     OPERATING INCOME                72,690    34,276     169,335    126,915
 
     OTHER INCOME
       Equity in earnings of
        unconsolidated investments    8,083    11,695      13,942     15,003
       Other - net                    1,450     3,200      15,201     14,350
           Total other income         9,533    14,895      29,143     29,353
 
     INTEREST EXPENSE                22,819    12,273      67,679     44,965
 
     INCOME BEFORE PREFERRED
      DIVIDENDS AND INCOME TAXES     59,404    36,898     130,799    111,303
 
     PREFERRED DIVIDEND REQUIREMENT
         OF SUBSIDIARY                  238       269         986      1,077
 
     INCOME BEFORE INCOME TAXES      59,166    36,629     129,813    110,226
 
     INCOME TAXES                    18,775    14,362      38,645     37,433
 
     NET INCOME BEFORE MINORITY
      INTEREST                       40,391    22,267      91,168     72,793
 
     MINORITY INTEREST IN SUBSIDIARY    (22)      142         840        643
 
     NET INCOME BEFORE CUMULATIVE
     EFFECT OF CHANGE IN ACCOUNTING
      PRINCIPLE                    $ 40,413  $ 22,125    $ 90,328   $ 72,150
 
     CUMULATIVE EFFECT OF CHANGE IN
      ACCOUNTING PRINCIPLE
      - NET OF TAX                    3,938        --       3,938         --
 
     NET INCOME                    $ 44,351  $ 22,125    $ 94,266   $ 72,150
 
     AVERAGE COMMON SHARES
      OUTSTANDING                    65,604    61,299      62,446     61,298
     DILUTED COMMON SHARES
      OUTSTANDING                    65,758    61,407      62,498     61,389
 
     EARNINGS PER SHARE OF COMMON
      STOCK
       BASIC
         INCOME FROM OPERATIONS    $   0.62  $   0.36    $   1.45   $   1.18
         CUMULATIVE  EFFECT OF
          CHANGE IN ACCOUNTING
          PRINCIPLE                    0.06        --        0.06         --
         TOTAL EARNINGS PER SHARE OF
          COMMON STOCK             $   0.68  $   0.36    $   1.51   $   1.18
 
       DILUTED
         INCOME FROM OPERATIONS    $   0.61  $   0.36    $   1.45   $   1.18
         CUMULATIVE  EFFECT OF
          CHANGE IN ACCOUNTING
          PRINCIPLE                    0.06        --        0.06         --
         TOTAL EARNINGS PER SHARE OF
          COMMON STOCK             $   0.67  $   0.36    $   1.51   $   1.18
 
 

SOURCE Vectren Corporation
    EVANSVILLE, Ind., April 25 /PRNewswire/ --
 Vectren Corporation (NYSE:   VVC) today reported 2001 first quarter earnings of
 $44.4 million or $.68 per share, compared to net income for the first quarter
 of 2000 of $22.1 million or $.36 per share.
     Consolidated net income before merger related costs and the cumulative
 effect of the change in accounting principle was $43.0 million ($.66 EPS) for
 the quarter ended March 31, 2001, as compared to net income before merger
 related costs of $41.4 million ($.68 EPS) for the same period in 2000.
     According to Vectren Chairman and Chief Executive Officer, Niel C.
 Ellerbrook, "Vectren had a very strong first quarter particularly after
 considering the expenses associated with the extraordinarily high gas costs
 experienced throughout this quarter.  Our utility group saw sizable increases
 in interest expense and customer service operating costs as the result of gas
 costs nearly tripling those of the prior year, however, growth in our
 non-regulated group continues with our gas marketers and other investments
 having a very strong quarter."
 
     Specific first quarter highlights include:
     * Contributions from the non-regulated group before merger costs were
       $.14 per share in 2001 compared to $.16 in 2000.  Excluding the one time
       $.08 gain recorded in 2000 due to the restructuring of an investment in
       SIGECOM, the non-regulated group increased its contribution by $.06 per
       share.
 
     * The net of tax impact of merger related costs including the accelerated
       depreciation on the information system to be retired by
       December 31, 2001 was $2.6 million or $.04 per share in 2001 as compared
       to $19.3 million or $.32 per share in 2000.
 
     * The cumulative effect of the change in accounting principle due to the
       adoption of FAS 133 by the regulated wholesale power group, requiring
       mark to market accounting for certain power contracts was a favorable
       $3.9 million net of tax adjustment or $.06 per share.
 
     * Utility operating margins were $179.3 million, a $44.1 million increase
       over the same period last year.  This was due to additional gas
       throughput as a result of the Ohio asset acquisition, increased gas and
       electric sales on colder heating weather and gains recognized from
       wholesale power marketing with purchase and sales contracts now
       reflecting current market values under FAS 133.
 
     Please see attached unaudited schedules for additional financial
 information.
     In conjunction with Vectren Corporation's first quarter earnings release,
 you are invited to listen in real-time to its conference call on April 26 at
 9:30 a.m. EDT.  The call will also be available for replay.  A link to the
 live broadcast and replay will be available on Vectren's Web site at
 http://www.vectren.com .
 
     Vectren Corporation is an energy and applied technology holding company
 headquartered in Evansville, Indiana.  Vectren's energy delivery subsidiaries
 provide gas and/or electricity to nearly one million customers in adjoining
 service territories that cover nearly two-thirds of Indiana and west central
 Ohio.  Vectren's non-regulated subsidiaries and affiliates currently offer
 energy-related products and services, broadband communication services, and
 utility related services including coal production and sales, underground
 pipeline construction and repair, facilities locating and meter reading
 services, materials management and debt collections to customers throughout
 the surrounding region.  To learn more about Vectren, visit www.vectren.com .
     NOTE:  Net income for the three-month period ended March 31 is not
 indicative of net income for an annual period due to seasonal sales of gas and
 electric for space heating and cooling purposes.
 
     This press release may contain forward-looking statements.  Vectren wishes
 to caution readers that actual results could differ materially from those that
 will be projected in our discussions.  Additional detailed information
 concerning a number of factors that could cause actual results to differ
 materially from the information that is provided to you is readily available
 in our report Form 10-K filed with the Securities and Exchange Commission on
 March 30, 2001.
 
     Investor Contact:  Steven M. Schein, 812-491-4209, sschein@vectren.com
 
     Media Contact:     Jeffrey W. Whiteside, 812-491-4205,
                          jwhiteside@vectren.com .
 
 
             Vectren Corporation                3 Months          12 Months
             Selected Highlights             Ended March 31     Ended March 31
                 (Unaudited)                  2001     2000     2001 *    2000
 
     Basic and Diluted Earnings Per Average Share:
 
     Utility Group                          $ 0.54   $ 0.21   $ 1.20    $ 0.85
     Non-regulated Group
       Energy Services                        0.08     0.03     0.16      0.16
       Utility Services                         --     0.01     0.03      0.03
       Communications                        (0.01)    0.08    (0.02)     0.09
       Corporate and Other                    0.07     0.03     0.14      0.05
           Total Non-regulated                0.14     0.15     0.31      0.33
         Total Earnings Per Average Share** $ 0.68   $ 0.36   $ 1.51    $ 1.18
       Merger and Integration Costs           0.04     0.32     0.32      0.32
       Cumulative Effect of Change in
        Accounting Principle                 (0.06)      --    (0.06)       --
         Total Before Merger and Integration
          Costs and Cumulative Effect of
          Change in Accounting              $ 0.66   $ 0.68   $ 1.77    $ 1.50
 
     Summary of Impact of Merger and
      Integration Costs:
     (millions, except per share data)
 
          Merger and Integration Costs      $  1.0   $ 27.2   $ 14.9    $ 27.2
          Depreciation                         3.2       --     14.6        --
          Income Taxes                        (1.6)    (7.9)    (9.4)     (7.9)
               Total                        $  2.6   $ 19.3   $ 20.1    $ 19.3
         EPS Impact of Merger and
          Integration Costs                 $ 0.04   $ 0.32   $ 0.32    $ 0.32
            Utility Group                   $ 0.04   $ 0.31   $ 0.32    $ 0.31
            Non-regulated Group             $   --   $ 0.01   $   --    $ 0.01
 
     EBITDA (millions)
       Utility Group                        $ 98.6   $ 45.6   $263.9    $201.5
       Non-regulated Group                    20.1     25.8     52.5      41.5
         Total                              $118.7   $ 71.4   $316.4    $243.0
       Merger and Integration Costs            1.0     27.2     14.9      27.2
       Cumulative Effect of Change in
        Accounting Principle                  (6.3)      --     (6.3)       --
         Total Before Merger and Integration
          Costs and Cumulative Effect of
          Change in Accounting              $113.4   $ 98.6   $325.0    $270.2
 
     Dividends Paid (per common share,
      12 months)                            $ 1.00   $ 0.95
 
     Annualized Dividend                    $ 1.02   $ 0.97
 
     Dividend Yield (at close)                4.8%      N/A
 
     Dividend Payout Ratio                   66.2%    80.5%
 
     Dividend to Book Value                   7.9%     8.3%
 
     Return on Average Shareholder Equity    10.9%    10.2%
 
     Book Value Per Share                   $12.92   $11.70
 
     Market to Book Value (at close)          166%      N/A
 
     Common Stock Prices (VVC - NYSE)
 
          High (during first quarter)       $24.44      N/A
          Low (during first quarter)        $20.50      N/A
          Close                             $21.40      N/A
     Price/Earnings Ratio (trailing)          14.2      N/A
 
     Percent Internally Generated Funds -
      Utility Group                            95%      60%
 
     Ratio of Earnings to Fixed Charges -
      SEC Method
 
             Consolidated                      2.9      3.3
             Utility Group                     3.0      3.2
 
 
     *  Selected highlights for the twelve months ended March 31, 2001 include
        five months of operations resulting from the acquisition of the Ohio
        operations on October 31, 2000.
 
     ** Diluted earnings per share for the three months ended March 31, 2001,
        are $0.67.  Basic and diluted earnings per share for all other periods
        are equal.
 
 
       VECTREN CORPORATION               3 Months                12 Months
         SELECTED UTILITY              Ended March 31          Ended March 31
       OPERATING STATISTICS
           (Unaudited)               2001         2000       2001 *       2000
 
     WEATHER AS A PERCENT OF NORMAL:
 
         Heating Degree Days          99%          86%       103%          82%
         Cooling Degree Days           0%           0%        93%          94%
 
     GAS MARGIN (Thousands):
 
     Operating Revenues           522,889      200,845  1,140,797      509,236
     Cost of Gas                  404,072      118,527    838,085      281,457
     Margin                       118,817       82,318    302,712      227,779
 
     ELECTRIC MARGIN
      (Thousands):
 
          Operating Revenues       88,209       72,990    351,628      309,572
          Cost of Fuel &
           Purchased Power         27,714       20,050    115,228       88,256
          Margin                   60,495       52,940    236,400      221,316
 
     GAS SOLD & TRANSPORTED
      (MDth):
 
          Residential              38,060       23,691     80,095       48,923
          Commercial               14,508        9,528     30,930       19,938
          Contract                 30,109       23,325     96,346       79,147
 
                                   82,677       56,544    207,371      148,008
 
     ELECTRICITY SOLD (MWh):
 
          Residential             351,407      316,034  1,418,536    1,341,757
          Commercial              301,865      290,617  1,347,295    1,302,755
          Industrial              576,290      598,400  2,469,862    2,464,092
                                       --           --         --           --
          Miscellaneous Sales       5,287        5,270     19,249       19,161
 
            Total Retail        1,234,849    1,210,321  5,254,942    5,127,765
 
          Municipals and Jasper   137,913      157,974    650,134      674,246
 
          Other Wholesale         780,923      381,274  2,023,740    1,196,293
                                2,153,685    1,749,569  7,928,816    6,998,304
 
     * Gas operating statistics for the twelve months ended March 31, 2001
       include five months of operations resulting from the acquisition of the
       Ohio operations on October 31, 2000.
 
 
     GAS OPERATING REVENUES
      (Thousands):
 
          Residential             351,991      137,341    750,944      334,339
          Commercial              126,641       49,967    265,895      116,061
          Contract                 41,420       11,643    114,673       52,887
          Miscellaneous Revenue     2,837        1,894      9,285        5,949
 
                                  522,889      200,845  1,140,797      509,236
 
     ELECTRIC OPERATING
      REVENUES (Thousands):
 
          Residential              21,892       19,965     96,035       89,573
          Commercial               16,449       15,663     75,389       69,462
          Industrial               18,453       19,106     83,069       81,159
          Miscellaneous Revenue     1,395        2,160      4,528        7,694
            Total Retail           58,189       56,894    259,021      247,888
 
          Municipals and Jasper     4,717        5,352     23,011       23,841
          Other Wholesale          25,303       10,744     69,596       37,843
 
                                   88,209       72,990    351,628      309,572
 
     AVERAGE GAS CUSTOMERS:
 
          Residential             865,040      569,674    856,226      557,435
          Commercial               80,274       57,249     79,662       56,281
          Contract                  3,745        1,257      4,337        1,250
 
                                  949,059 **   628,180    940,225 **   614,966
 
     AVERAGE ELECTRIC
      CUSTOMERS:
 
          Residential             115,025      110,289    111,288      109,457
          Commercial               17,217       16,454     16,716       16,141
          Industrial                  187          195        180          197
 
                                  132,429      126,938    128,184      125,795
 
     *  Gas operating statistics for the twelve months ended March 31, 2001,
        include five months of operations resulting from the acquisition of the
        Ohio operations on October 31, 2000.
 
     ** Average gas customers for three months ended and twelve months ended
        March 31, 2001, include 312,314  and 311,546 average customers,
        respectively, for the Ohio operations.
 
 
                                VECTREN CORPORATION
                              AND SUBSIDIARY COMPANIES
 
                         CONSOLIDATED STATEMENTS OF INCOME
                       (Thousands, except for share amounts)
                                    (Unaudited)
 
                                        Three Months          Twelve Months
                                       Ended March 31         Ended March 31
                                       2001      2000        2001       2000
     OPERATING REVENUES:
       Gas utility                 $522,889  $200,845  $1,140,797   $509,236
       Electric utility              88,209    72,990     351,628    309,572
       Energy services and other    271,990    85,609     679,909    288,020
           Total operating
            revenues                883,088   359,444   2,172,334  1,106,828
 
     OPERATING EXPENSES:
       Cost of gas sold             404,072   118,527     838,085    281,457
       Fuel for electric generation  14,561    16,573      69,158     67,250
       Purchased electric energy     13,153     3,477      46,070     21,006
       Cost of energy services and
        other                       265,204    81,722     656,740    273,142
       Other operating               61,432    46,426     214,597    191,215
       Merger and integration costs     962    27,181      14,926     27,181
       Depreciation and
        amortization                 31,471    22,662     114,470     88,435
       Taxes other than income
        taxes                        19,543     8,600      48,953     30,227
           Total operating
            expenses                810,398   325,168   2,002,999    979,913
 
     OPERATING INCOME                72,690    34,276     169,335    126,915
 
     OTHER INCOME
       Equity in earnings of
        unconsolidated investments    8,083    11,695      13,942     15,003
       Other - net                    1,450     3,200      15,201     14,350
           Total other income         9,533    14,895      29,143     29,353
 
     INTEREST EXPENSE                22,819    12,273      67,679     44,965
 
     INCOME BEFORE PREFERRED
      DIVIDENDS AND INCOME TAXES     59,404    36,898     130,799    111,303
 
     PREFERRED DIVIDEND REQUIREMENT
         OF SUBSIDIARY                  238       269         986      1,077
 
     INCOME BEFORE INCOME TAXES      59,166    36,629     129,813    110,226
 
     INCOME TAXES                    18,775    14,362      38,645     37,433
 
     NET INCOME BEFORE MINORITY
      INTEREST                       40,391    22,267      91,168     72,793
 
     MINORITY INTEREST IN SUBSIDIARY    (22)      142         840        643
 
     NET INCOME BEFORE CUMULATIVE
     EFFECT OF CHANGE IN ACCOUNTING
      PRINCIPLE                    $ 40,413  $ 22,125    $ 90,328   $ 72,150
 
     CUMULATIVE EFFECT OF CHANGE IN
      ACCOUNTING PRINCIPLE
      - NET OF TAX                    3,938        --       3,938         --
 
     NET INCOME                    $ 44,351  $ 22,125    $ 94,266   $ 72,150
 
     AVERAGE COMMON SHARES
      OUTSTANDING                    65,604    61,299      62,446     61,298
     DILUTED COMMON SHARES
      OUTSTANDING                    65,758    61,407      62,498     61,389
 
     EARNINGS PER SHARE OF COMMON
      STOCK
       BASIC
         INCOME FROM OPERATIONS    $   0.62  $   0.36    $   1.45   $   1.18
         CUMULATIVE  EFFECT OF
          CHANGE IN ACCOUNTING
          PRINCIPLE                    0.06        --        0.06         --
         TOTAL EARNINGS PER SHARE OF
          COMMON STOCK             $   0.68  $   0.36    $   1.51   $   1.18
 
       DILUTED
         INCOME FROM OPERATIONS    $   0.61  $   0.36    $   1.45   $   1.18
         CUMULATIVE  EFFECT OF
          CHANGE IN ACCOUNTING
          PRINCIPLE                    0.06        --        0.06         --
         TOTAL EARNINGS PER SHARE OF
          COMMON STOCK             $   0.67  $   0.36    $   1.51   $   1.18
 
 SOURCE  Vectren Corporation