July 30, 1999
Securities and Exchange Commission
Operations Center
6432 General Green Way
Alexandria, VA 22312-2413
Gentlemen:
We are transmitting herewith Indiana Energy, 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): July 30, 1999
INDIANA ENERGY,INC.
(Exact name of registrant as specified in its charter)
INDIANA 1-9091 35-1654378
(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
On July 30, 1999, Indiana Energy, Inc. (the company) released summary
financial information to the investment community regarding the
company's results of operations, financial position and cash flows
for the three-, nine- and twelve-month periods ended June 30, 1999.
The financial information released is included herein. This
information is summary in nature, does not include footnote disclosures
and should not be considered complete financial statements.
Item 7. Exhibits
99 Financial Analyst Report - Third Quarter 1999
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 ENERGY, INC.
Registrant
Dated July 30, 1999 /s/Carl L. Chapman
Carl L. Chapman
Senior Vice President and
Chief Financial Officer
Dated July 30, 1999 /s/Jerome A. Benkert
Jerome A. Benkert
Vice President and Controller
<TABLE>
Indiana Energy, Inc. and Subsidiary Companies
Highlights June 30, June 30,
(Unaudited) 1999 1998 (2)
<S> <C> <C>
Basic and Diluted Earnings Per
Average Share (1) :
Three Months Ended -
Indiana Gas and IEI Services $0.05 $0.05
IEI Investments $0.06 $0.04
Total $0.11 $0.09
Twelve Months Ended -
Indiana Gas and IEI Services $1.20 $0.26
IEI Investments (3) $0.20 $0.29
Total $1.40 $0.55
Dividends Paid (per common share,
12 months)(1) $0.93 $0.89
Annualized Dividend (1) $0.97 $0.93
Dividend Yield (at close) 4.6% 4.1%
Dividend Payout Ratio 66.4% 159.5%
Dividend to Book Value 8.9% 8.8%
Return on Average Shareholder Equity 13.1% 5.2%
Book Value Per Share (1) $10.84 $10.54
Market to Book Value 197% 213%
Common Stock Prices (IEI - NYSE) (1)
High (12 Month) $26.38 $25.69
Low (12 Month) $18.06 $18.19
Close $21.31 $22.41
Price/Earnings Ratio 15.2 40.4
Ratio of Earnings to Fixed Charges -
SEC Method:
Consolidated 4.7 2.4
Utility 4.0 1.5
Percent Internally Generated Funds -
Utility 65% 53%
Credit Ratings:
Indiana Gas AA- / Aa2 AA- / Aa2
Indiana Energy A+ / Aa3 A+ / Aa3
(1) Adjusted to reflect the four-for-three stock split October 2, 1998.
(2) Reflects the recording of restructuring costs of $39.5 million ($24.5 million
after-tax or $.81 per common share) at Indiana Gas during the quarter ended
September 30, 1997.
(3) IEI Investments' earnings for the twelve months ended June 30, 1998 include
$.10 per common share related to the recognition of ProLiance's earnings
from prior periods which had previously been reserved.
</TABLE>
<TABLE>
For 3 Months For 9 Months For 12 Months
SELECTED UTILITY Ended June 30 Ended June 30 Ended June 30
OPERATING STATISTICS
(Unaudited) 1999 1998 1999 1998 1999 1998
<S> <C> <C> <C> <C> <C> <C>
WEATHER AS A PERCENT
OF NORMAL 70% 80% 87% 87% 86% 87%
MARGIN (Thousands):
Operating Revenues $72,131 $70,560 $358,562 $403,823 $420,383 $462,321
Cost of Gas 33,751 35,032 185,681 236,325 220,360 268,582
Margin $38,380 $35,528 $172,881 $167,498 $200,023 $193,739
GAS SOLD & TRANSPORTED
(MDth):
Residential 4,858 4,905 40,473 39,510 42,591 41,882
Commercial 2,574 2,138 16,127 16,006 17,220 17,265
Contract 12,538 11,986 45,267 44,302 57,033 55,445
19,970 19,029 101,867 99,818 116,844 114,592
OPERATING REVENUES
(Thousands):
Residential $44,743 $45,083 $241,486 $266,818 $274,270 $298,779
Commercial 16,816 15,511 84,686 96,111 96,119 107,768
Contract 9,428 8,637 28,418 36,242 44,832 49,930
Misc. Revenue 1,144 1,329 3,972 4,652 5,162 5,844
$72,131 $70,560 $358,562 $403,823 $420,383 $462,321
AVERAGE CUSTOMERS:
Residential 456,007 443,343 453,787 443,144 450,114 439,751
Commercial 47,009 45,739 46,468 45,738 46,128 45,438
Contract 1,040 1,083 1,031 1,065 1,034 1,063
504,056 490,165 501,286 489,947 497,276 486,252
</TABLE>
<TABLE>
INDIANA ENERGY, INC.
AND SUBSIDIARY COMPANIES
CONSOLIDATED BALANCE SHEETS
ASSETS
(Thousands - Unaudited)
June 30 September 30
1999 1998 1998
<S> <C> <C> <C>
CURRENT ASSETS:
Cash and cash equivalents $ 20 $ 11,715 $ 9,325
Accounts receivable, less reserves of
$1,370, $553 and $900 respectively 16,628 23,357 10,939
Accrued unbilled revenues 6,012 7,639 6,453
Liquefied petroleum gas - at average cost 808 865 883
Gas in underground storage - at last-in,
first-out cost 5,003 7,558 19,373
Prepayments 22,098 8,163 8,865
Other current assets 2,188 198 191
52,757 59,495 56,029
INVESTMENTS IN UNCONSOLIDATED AFFILIATES 42,897 30,011 32,186
UTILITY PLANT:
Original cost 972,735 923,385 937,977
Less - accumulated depreciation and
amortization 392,731 362,531 370,872
580,004 560,854 567,105
NONUTILITY PLANT:
Original cost 61,783 49,293 55,225
Less - accumulated depreciation and
amortization 16,988 11,061 12,613
44,795 38,232 42,612
DEFERRED CHARGES AND OTHER ASSETS:
Unamortized debt discount and expense 12,186 13,185 12,954
Regulatory income tax asset 1,778 - 1,778
Other 6,277 5,864 4,466
20,241 19,049 19,198
$ 740,694 $ 707,641 $ 717,130
</TABLE>
<TABLE>
INDIANA ENERGY, INC.
AND SUBSIDIARY COMPANIES
CONSOLIDATED BALANCE SHEETS
LIABILITIES AND SHAREHOLDERS' EQUITY
(Thousands except shares - Unaudited)
June 30 September 30
1999 1998 1998
<C> <C> <C> <C>
CURRENT LIABILITIES:
Maturities and sinking fund requirements of
long-term debt $ 10,174 $ 272 $ 10,119
Notes payable 24,324 1,000 33,705
Accounts payable 22,572 19,146 19,416
Refundable gas costs 25,642 27,155 10,730
Customer deposits and advance payments 4,915 5,484 19,229
Accrued taxes 16,379 13,065 4,728
Accrued interest 3,868 4,372 1,974
Other current liabilities 24,074 28,081 29,892
131,948 98,575 129,793
DEFERRED CREDITS AND OTHER LIABILITIES:
Deferred income taxes 60,844 56,797 60,448
Accrued postretirement benefits other
than pensions 27,677 25,156 25,388
Unamortized investment tax credit 8,617 9,547 9,313
Regulatory income tax liability - 1,874 -
Other 5,481 5,189 4,994
102,619 98,563 100,143
COMMITMENTS AND CONTINGENCIES - - -
CAPITALIZATION:
Long-term debt 183,303 194,889 183,489
Common stock (no par value) - authorized
200,000,000 shares - issued and outstanding
29,788,345, 30,119,427 and 30,063,667 shares,
respectively (1) 136,760 143,594 142,653
Retained earnings 186,064 172,020 161,052
Total common shareholders' equity 322,824 315,614 303,705
506,127 510,503 487,194
$ 740,694 $ 707,641 $ 717,130
(1) Adjusted to reflect the four-for-three stock split October 2, 1998.
</TABLE>
<TABLE>
INDIANA ENERGY, INC.
AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF INCOME
(Thousands except per share data)
(Unaudited)
Three Months Nine Months
Ended June 30 Ended June 30
1999 1998 1999 1998
<S> <C> <C> <C> <C>
OPERATING REVENUES:
Utility $ 72,131 $ 70,560 $ 358,562 $ 403,823
Other 339 210 988 568
72,470 70,770 359,550 404,391
OPERATING EXPENSES:
Cost of gas 33,751 35,032 185,681 234,808
Other operating 18,441 17,925 56,828 55,525
Depreciation and amortization 10,319 9,605 30,073 27,907
Taxes other than income taxes 3,550 2,985 12,640 12,641
66,061 65,547 285,222 330,881
OPERATING INCOME 6,409 5,223 74,328 73,510
OTHER INCOME:
Equity in earnings of unconsolidated
affiliates 2,194 1,423 7,913 7,208
Other - net (474) 845 283 1,726
1,720 2,268 8,196 8,934
INCOME BEFORE INTEREST AND
INCOME TAXES 8,129 7,491 82,524 82,444
INTEREST EXPENSE 3,945 3,581 12,473 12,780
INCOME BEFORE INCOME TAXES 4,184 3,910 70,051 69,664
INCOME TAXES 801 1,199 24,289 25,455
NET INCOME $ 3,383 $ 2,711 $ 45,762 $ 44,209
AVERAGE COMMON SHARES OUTSTANDING (1) 29,787 30,124 29,868 30,124
BASIC AND DILUTED EARNINGS PER AVERAGE
SHARE OF COMMON STOCK (1) $ 0.11 $ 0.09 $ 1.53 $ 1.47
(1) Adjusted to reflect the four-for-three stock split October 2, 1998.
</TABLE>
<TABLE>
INDIANA ENERGY, INC.
AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF INCOME
(Thousands except per share data)
(Unaudited)
Twelve Months
Ended June 30
1999 1998
<S> <C> <C>
OPERATING REVENUES:
Utility $ 420,383 $ 462,321
Other 1,210 615
421,593 462,936
OPERATING EXPENSES:
Cost of gas 220,360 267,065
Other operating 76,891 74,824
Restructuring costs - 39,531
Depreciation and amortization 39,821 36,810
Taxes other than income taxes 14,734 16,024
351,806 434,254
OPERATING INCOME 69,787 28,682
OTHER INCOME:
Equity in earnings of unconsolidated
affiliates 7,931 11,990
Other - net 1,060 1,255
8,991 13,245
INCOME BEFORE INTEREST AND
INCOME TAXES 78,778 41,927
INTEREST EXPENSE 16,338 17,005
INCOME BEFORE INCOME TAXES 62,440 24,922
INCOME TAXES 20,683 8,310
NET INCOME $ 41,757 $ 16,612
AVERAGE COMMON SHARES OUTSTANDING (1) 29,924 30,120
BASIC AND DILUTED EARNINGS PER AVERAGE
SHARE OF COMMON STOCK (1) $ 1.40 $ 0.55
(1) Adjusted to reflect the four-for-three stock split October 2, 1998.
</TABLE>
<TABLE>
INDIANA ENERGY, INC.
AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Thousands - Unaudited)
Nine Months Twelve Months
Ended June 30 Ended June 30
1999 1998 1999 1998
<S> <C> <C> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 45,762 $ 44,209 $ 41,757 $ 16,612
Adjustments to reconcile net income to cash
provided from operating activities -
Noncash restructuring costs - - - 32,838
Depreciation and amortization 30,147 28,047 39,942 36,997
Deferred income taxes 396 1,592 395 (12,697)
Investment tax credit (697) (697) (930) (930)
Loss (gain) on sale of assets 730 (2,102) 730 (2,102)
Undistributed earnings of unconsolidated
affiliates (7,913) (7,208) (7,931) (11,990)
22,663 19,632 32,206 42,116
Changes in assets and liabilities -
Receivables - net (5,248) 286 8,356 (2,345)
Inventories 14,398 11,554 2,572 2,572
Accounts payable, customer deposits,
advance payments and other current
liabilities (16,976) (28,394) (1,150) (4,844)
Accrued taxes and interest 13,545 6,149 2,810 661
Recoverable/refundable gas costs 14,912 32,998 (1,513) 28,122
Prepayments and other current assets (15,183) (1,100) (15,885) (7,739)
Accrued postretirement benefits other
than pensions 2,289 2,118 2,521 7,724
Other - net 1,059 (1,207) (1,697) 4,109
Total adjustments 31,459 42,036 28,220 70,376
Net cash flows from operations 77,221 86,245 69,977 86,988
CASH FLOWS REQUIRED FOR FINANCING ACTIVITIES:
Repurchase of common stock (5,975) - (7,164) -
Sale of long-term debt - 95,044 - 110,059
Reduction in long-term debt (131) (92,946) (1,684) (93,069)
Net change in short-term borrowings (9,381) (22,800) 23,324 (11,550)
Dividends on common stock (20,717) (19,877) (27,680) (26,493)
Net cash flows required for financing
activities (36,204) (40,579) (13,204) (21,053)
CASH FLOWS REQUIRED FOR INVESTING ACTIVITIES:
Capital expenditures (48,017) (46,477) (67,570) (65,968)
Nonutility investments in unconsolidated
affiliates - net (6,194) (3,209) (9,447) (3,959)
Cash distributions from unconsolidated
affiliates 3,889 6,483 4,436 6,483
Proceeds from sale of assets - 9,204 4,113 9,204
Net cash flows required for investing
activities (50,322) (33,999) (68,468) (54,240)
NET INCREASE (DECREASE) IN CASH (9,305) 11,667 (11,695) 11,695
CASH AND CASH EQUIVALENTS AT BEGINNING OF
PERIOD 9,325 48 11,715 20
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 20 $ 11,715 $ 20 $ 11,715
</TABLE>
