Exhibit 99-1
VECTREN CORPORATION
REPORTS CONSOLIDATED EARNINGS; DIVIDEND UNCHANGED
EVANSVILLE -Vectren Corporation (July 27, 2000) (NYSE:VVC)
today reported financial results for fiscal 2000's second
quarter. Consolidated net income before merger related
charges was $14.1 million ($.23 EPS) for the quarter ended
June 30, 2000, as compared to net income of $11.6 million
($.19 EPS) for the same period in 1999. Reported net income
and earnings per share for the current period were $8.3
million and $.14 per share, respectively.
During the second quarter of 2000, Vectren expensed merger
related costs of $6.5 million ($5.8 million, net of tax or
$.09 EPS) including $3.3 million of accelerated depreciation
related to information systems to be retired during 2001.
Merger costs expensed during the first six months of 2000
totaled $33.7 million ($25.1 million, net of tax or $.41
EPS) including the $3.3 million of accelerated depreciation.
The continued merger integration activities, which will
contribute to the net merger savings, will be substantially
complete by 2001. The company expects to realize net merger
savings of nearly $200 million over ten years from the
elimination of duplicate corporate and administrative
programs and greater efficiencies in operations, business
processes and purchasing.
Stronger results from Vectren's non-regulated operations and
investments combined with significantly greater unit
margins from sales to the wholesale power market more than
offset higher operating expenses during the quarter,
resulting in the $.04 per share gain in earnings before
merger related charges.
"The continued growth of our non-regulated businesses and
our demonstrated ability to effectively compete in the
wholesale power market has enabled us to deliver improved
results during a continued period of abnormally mild
weather," said Niel C. Ellerbrook, Vectren's Chairman and
Chief Executive Officer.
The board of directors of Vectren also declared a cash
dividend of 24 1/4 cents per share of common stock. This is
unchanged from the previous quarter. The dividend is payable
September 1, 2000 to shareholders of record August 15, 2000.
Vectren, headquartered in Evansville, Indiana through its
regulated subsidiaries Indiana Gas and SIGECO, offers gas
and/or electricity to more than 650,000 customers in
adjoining service areas that cover nearly two-thirds of
Indiana. Vectren's non-regulated subsidiaries currently
offer energy-related products and services, including energy
marketing, fiber-optic based communication services, and
utility related services including materials management,
debt collections, locating, meter reading and trenching
services to customers throughout the surrounding region. In
December 1999 (prior to its merger with SIGCORP, Inc. to
form Vectren), Indiana Energy, Inc. announced the planned
acquisition of the natural gas distribution business of
Dayton Power and Light Company. This acquisition is expected
to close during the third quarter of this year and bring
Vectren's total customer count to nearly one million. To
learn more about Vectren visit >>http://www.vectren.com<<
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<CAPTION>
SUMMARY OF CONSOLIDATED EARNINGS DATA:
Three Months Ended
June 30
(In Thousands, Except Per Share Data) 2000 1999
<S> <C> <C>
Operating Revenues $263,477 $207,042
Net Income $8,273 $11,554
Net Income Before Merger Related Charges $14,168 $11,554
Basic Earnings Per Average Common Share $0.14 $0.19
Diluted Earnings Per Average Common Share $0.13 $0.19
Basic Earnings Per Share Before
Merger Related Charges $0.23 $0.19
Average Common Shares Outstanding 61,227 61,287
Diluted Common Shares Outstanding 61,317 61,425
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<CAPTION>
Six Months Ended
June 30
(In Thousands, Except Per Share Data) 2000 1999
<S> <C> <C>
Operating Revenues $622,921 $528,075
Net Income $30,398 $52,277
Net Income Before Merger Related Charges 55,589 $52,277
Basic Earnings Per Average Common Share $0.50 $0.85
Diluted Earnings Per Average Common Share $0.50 $0.85
Basic Earnings Per Share Before Merger
Related Charges $0.91 $0.85
Average Common Shares Outstanding 61,266 61,309
Diluted Common Shares Outstanding 61,338 61,461
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<TABLE>
<CAPTION>
Twelve Months Ended
June 30
(In Thousands, Except Per Share Data) 2000 1999
<S> <C> <C>
Operating Revenues $1,163,263 $1,009,629
Net Income $68,869 $87,591
Net Income Before Merger Related Charges $94,060 $87,591
Basic Earnings Per Average Common Share 1.12 $1.43
Diluted Earnings Per Average Common Share $1.12 $1.42
Basic Earnings Per Share Before Merger
Related Charges $1.53 $1.43
Average Common Shares Outstanding 61,281 61,424
Diluted Common Shares Outstanding 61,362 61,598
</TABLE>
NOTE: Net income for the three-month period ended June 30 is
not indicative of net income for an annual period due to
seasonal sales of electric and gas 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 8-K filed with the
Securities and Exchange Commission on July 11, 2000.
Investor Contact: Steven M. Schein, VP-Investor Relations,
812-491-4209,>>mailto:[email protected]<<
Media Contact: Jeffrey W. Whiteside, VP-Corporate
Communications, 812-491-4205,
>>mailto:[email protected]<<
Vectren Corporation, P.O. Box 209, Evansville, IN 47702-
0209
