October 31, 1997
Securities and Exchange Commission
Operations Center
6432 General Green Way
Alexandria, VA 22312-2413
Gentlemen:
We are transmitting herewith Indiana Gas Company, Inc.'s
Current Report on Form 8-K.
Very truly yours,
/s/ Douglas S. Schmidt
Douglas S. Schmidt
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): October 31, 1997
INDIANA GAS COMPANY,INC.
(Exact name of registrant as specified in its charter)
INDIANA 1-6494 35-0793669
(State or other jurisdiction (Commission File No.) (IRS Employer
of incorporation) Identification
Number)
1630 North Meridian Street, Indianapolis, Indiana 46202
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (317)926-3351
Item 5. Other Events
See the following press release dated October 31,
1997, in which Indiana Energy, Inc. announces the
recording of a restructuring charge by its wholly
owned subsidiary, Indiana Gas Company, Inc.
October 31, 1997
INDIANA ENERGY, INC. REPORTS CONSOLIDATED
EARNINGS AND RESTRUCTURING CHARGE;
DIVIDEND UNCHANGED
INDIANAPOLIS--Indiana Energy, Inc., the parent
company of Indiana Gas Company, Inc. and other
subsidiaries, reported consolidated net income
of $20.5 million for the fiscal year ended
September 30, 1997, as compared to net income of
$42.2 million for fiscal 1996. Earnings per
average common share for fiscal 1997 were 91
cents, compared to $1.87 per share for last
year. Net income and earnings per share for
fiscal 1997 before restructuring costs were
$45.0 million and $1.99 per share, respectively.
The 12-cent increase in earnings per share from
1996, before restructuring costs, is due
primarily to lower operation and maintenance
expenses, higher earnings recognized from
Indiana Energy's energy marketing affiliate and
a gain on the sale of certain nonutility assets.
"Our strong pre-restructuring earnings report
confirms that Indiana Energy continues to be a
vibrant, growing business--it was a very good
year. The strength of this year's results
encouraged us to accelerate the implementation
of our previously announced growth strategy,
including doing the difficult things that will
make it work. That strategy is to become a
leading regional provider of energy products and
services and grow earnings per share by an
average annual amount of 10 percent over the
next five years," said Niel C. Ellerbrook,
president and chief operating officer of Indiana
Energy.
Net income and earnings per share reflect an
after-tax restructuring charge of $24.5 million
recorded by Indiana Gas in the fourth quarter of
fiscal 1997. The charge, which was approved by
Indiana Gas' board of directors, results from a
restructuring of Indiana Gas' operations,
including the implementation of several actions
designed to reduce its operating costs and
position it to remain a competitive choice for
energy customers. Included are costs associated
with Indiana Gas' work force reductions and the
write off and writedown of certain assets.
"While the decisions to make the reductions and
writedowns were difficult ones, our lower cost
structure should contribute to our competitive
position in the market place and our ability to
increase shareholder value," said Ellerbrook.
The board of directors of Indiana Energy today
also declared a cash dividend of 29 1/2 cents per
share of common stock. This is unchanged from
the previous quarter. The dividend is payable
December 1, 1997, to shareholders of record
November 14, 1997.
SUMMARY OF CONSOLIDATED EARNINGS DATA:
<TABLE>
Three Months Ended
September 30
(In Thousands Except Per Share Data) 1997(1) 1996
<S> <C> <C>
Utility Operating Revenues $ 58,498 $62,521
Net Income (Loss) $(27,597) $(5,928)
Earnings (Loss) Per Average $ (1.22) $ (.27)
Common Share
Average Common Shares Outstanding 22,581 22,474
Twelve Months Ended
September 30
(In Thousands Except Per Share Data) 1997(1) 1996
Utility Operating Revenues $530,407 $530,594
Net Income $ 20,503 $ 42,201
Earnings Per Average Common Share $ .91 $ 1.87
Average Common Shares Outstanding 22,580 22,513
(1) Reflects an after-tax restructuring charge of
$24.5 million or $1.08 per common share recorded
during the fourth quarter of fiscal 1997.
NOTE: Net income (loss) for the three-month
period ended September 30 is not indicative
of net income (loss) for an annual period
due to the seasonal sales of gas for space
heating purposes.
</TABLE>
SIGNATURES
Pursuant to the requirements of the Securities
Exchange Act of 1934, the registrant has duly caused this
report to be signed on its behalf by the undersigned
thereunto duly authorized.
INDIANA GAS COMPANY, INC.
Registrant
Dated October 31, 1997 /s/Niel C. Ellerbrook
Niel C. Ellerbrook
President
Dated October 31, 1997 /s/Jerome A. Benkert
Jerome A. Benkert
Vice President and Controller
