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Previous: WISCONSIN ENERGY CORP, 8-K/A, 2000-07-10 |
Next: WISCONSIN ENERGY CORP, 8-K/A, EX-99.3, 2000-07-10 |
Exhibit 99.2
<TABLE>
<CAPTION>
WICOR, INC.
Consolidated Statements of Operation (Unaudited)
(Amounts in Thousands, Except Per Share Data)
Three Months Ended March 31
---------------------------
2000 1999
-------- --------
<S> <C> <C>
Operating Revenues:
Energy $197,003 $187,182
Manufacturing 142,238 117,059
-------- --------
339,241 304,241
-------- --------
Operating Costs and Expenses:
Cost of gas sold 120,745 107,579
Manufacturing cost of sales 100,374 82,999
Operation and maintenance 57,938 51,975
Depreciation and amortization 9,676 9,092
Taxes, other than income taxes 2,338 2,504
-------- --------
291,071 254,149
-------- --------
Operating Income 48,170 50,092
-------- --------
Interest Expense (5,139) (4,457)
Merger Costs (447) -
Other Income, net (414) 770
-------- --------
Income Before Income Taxes 42,170 46,405
Income Tax Provision 16,182 17,539
-------- --------
Net Earnings $25,988 $28,866
======== ========
Per Share of Common Stock:
Basic earnings $0.69 $0.77
Diluted earnings $0.68 $0.77
Cash Dividends paid $0.225 $0.220
Average shares outstanding 37,848 37,413
Average diluted shares outstanding 38,414 37,619
<FN>
The accompanying notes are an integral part of these statements.
</FN>
</TABLE>
<TABLE>
<CAPTION>
WICOR, INC.
Consolidated Balance Sheets
March 31, 2000 December 31, 1999
(Unaudited)
-------------- -----------------
(Thousands of Dollars)
<S> <C> <C>
Assets
------
Current Assets:
Cash and cash equivalents $7,738 $12,859
Accounts receivable, less allowance
for doubtful accounts of $17,529
and $13,166, respectively 210,049 152,127
Accrued revenues 33,680 50,462
Manufacturing inventories 93,868 89,963
Gas in storage, at weighted average cost 9,985 42,754
Deferred income taxes 19,874 19,902
Prepayments and other 14,361 18,514
---------- ----------
389,555 386,581
---------- ----------
Property, Plant and Equipment (less
accumulated depreciation of $574,387
and $565,641, respectively) 459,560 463,068
---------- ----------
Deferred Charges and Other:
Goodwill 96,783 93,928
Regulatory assets 50,724 51,686
Prepaid pension costs 60,904 58,833
Other 35,741 35,827
---------- ----------
244,152 240,274
---------- ----------
$1,093,267 $1,089,923
========== ==========
<FN>
The accompanying notes are an integral part of these statements.
</FN>
</TABLE>
<TABLE>
<CAPTION>
WICOR, INC.
Consolidated Balance Sheets
(continued)
March 31, 2000 December 31, 1999
(Unaudited)
-------------- -----------------
(Thousands of Dollars)
<S> <C> <C>
Liabilities and Capitalization
------------------------------
Current Liabilities:
Short-term borrowings $63,737 $116,602
Accounts payable 88,172 78,258
Current portion of long-term debt 8,466 11,017
Refundable gas costs 46,447 24,043
Accrued payroll and benefits 17,883 25,799
Accrued taxes 20,824 5,786
Other 21,987 25,288
---------- ----------
267,516 286,793
---------- ----------
Deferred Credits and Other:
Postretirement benefit obligation 52,162 53,864
Regulatory liabilities 25,747 27,742
Deferred income taxes 55,931 55,650
Accrued environmental remediation costs 6,358 3,372
Unamortized investment tax credit 5,568 5,909
Other 16,880 17,483
---------- ----------
162,646 164,020
---------- ----------
Capitalization:
Long-term debt 213,234 205,444
Common stock 37,897 37,819
Other paid-in capital 226,705 225,638
Retained earnings 198,847 181,376
Accumulated other comprehensive income (10,049) (8,220)
Unearned compensation - ESOP
and restricted stock (3,529) (2,947)
---------- ----------
663,105 639,110
---------- ----------
$1,093,267 $1,089,923
========== ==========
<FN>
The accompanying notes are an integral part of these statements.
</FN>
</TABLE>
<TABLE>
<CAPTION>
WICOR, INC.
Consolidated Statement of Cash Flows (Unaudited)
(Thousands of Dollars)
Three Months Ended March 31
---------------------------
2000 1999
----------- -----------
<S> <C> <C>
Operations:
Net earnings $25,988 $28,866
Adjustments to reconcile net earnings to
net cash flows:
Depreciation and amortization 15,493 14,118
Deferred income taxes 277 125
Net pension and other postretirement
benefit (income) (3,584) (2,155)
Change in:
Receivables (40,842) (32,728)
Manufacturing inventories (3,333) 1,658
Gas in storage 32,769 25,196
Accounts payable 9,756 526
Refundable gas costs 22,404 31,545
Accrued taxes 16,246 14,004
Other (10,806) (9,013)
------- -------
64,368 72,142
------- -------
Investing Activities:
Capital expenditures (10,155) (8,162)
Acquisitions (4,828) -
Other 16 (23)
------- -------
(14,967) (8,185)
------- -------
Financing Activities:
Change in short-term borrowings (44,865) (63,830)
Reduction in long-term debt (2,285) (2,157)
Issuance of common stock 1,145 693
Dividends paid on common stock (8,517) (8,277)
------- -------
(54,522) (73,571)
------- -------
Change in Cash and Cash Equivalents (5,121) (9,614)
Cash and Cash Equivalents at Beginning of Period 12,859 13,383
------- -------
Cash and Cash Equivalents at End of Period $7,738 $3,769
======= =======
<FN>
The accompanying notes are an integral part of these statements.
</FN>
</TABLE>
Notes to Consolidated Financial Statements (Unaudited):
1) The Company and its subsidiaries maintain lines of credit worldwide. At
March 31, 2000 the Company had borrowings of $63.7 million and availability
of $243.4 million under unsecured lines of credit with several banks.
A total of $58.2 million of commercial paper, classified as short-term
borrowings, was outstanding as of March 31, 2000 at a weighted average
interest rate of 6.2%.
2) For purposes of the Consolidated Statements of Cash Flows, income taxes paid,
net of refunds, and interest paid (excluding capitalized interest) were as
follows:
<TABLE>
<CAPTION>
For the Three Months
Ended March 31,
--------------------
2000 1999
---- ----
(Thousands of Dollars)
<S> <C> <C>
Income taxes paid $2,667 $4,784
Interest paid $5,792 $3,570
</TABLE>
3) Total comprehensive income for the three months ended March 31, 2000 and 1999
is as follows:
<TABLE>
<CAPTION>
2000 1999
---- ----
<S> <C> <C>
Net earnings $25,988 $28,866
Other comprehensive income
Currency translation adjustments (1,829) (379)
------- -------
Total comprehensive income $24,159 $28,487
======= =======
</TABLE>
4) Business Segment Information
The Company is a diversified holding company with two principal business
segments: an Energy Group responsible for natural gas distribution and related
services, and a Manufacturing Group responsible for the manufacture of pumps and
processing equipment used to pump, control, transfer, hold and filter water and
other fluids.
The Company's reportable segments are managed separately because each
business requires different technology and marketing strategies. Most of the
businesses were acquired as a unit, and the management at the time of the
acquisition was retained. The accounting policies of the reportable segments are
the same as those described in Note 1 of Notes to the Consolidated Financial
Statements contained in the WICOR, Inc. annual report on Form 10-K for the
fiscal year ended December 31, 1999. The Company evaluates the performance of
its operating segments based on income from continuing operations. Intersegment
sales and transfers are not significant.
Information regarding products and services and geographic areas are not
presented as they are not included in measures that are reviewed by the Company.
Summarized financial information concerning the Company's reportable
segments for the three-month's ending March 31, 2000 and 1999 is shown in the
following table. The other energy category includes the results of the parent
company only and non-regulated energy operations involved in energy and risk
management services, automated meter reading and other related services.
<TABLE>
<CAPTION>
Energy
-------------------------------------
REGULATED OTHER TOTAL MANUFACTURING CONSOLIDATED
--------- ----- ----- ------------- ------------
(Thousands of Dollars)
<S> <C> <C> <C> <C> <C>
2000
----
Revenues $176,049 $20,954 $197,003 $142,238 $339,241
Depreciation and
amortization $10,846 $33 $10,879 $4,614 $15,493
Net earnings (loss) $19,913 $(592) $19,321 $6,667 $25,988
Total assets $651,518 $13,650 $665,168 $428,099 $1,093,267
Capital expenditures $6,748 $122 $6,870 $3,285 $10,155
1999
----
Revenues $170,397 $16,785 $187,182 $117,059 $304,241
Depreciation and
amortization $10,333 $26 $10,359 $3,759 $14,118
Net earnings $22,970 $255 $23,225 $5,641 $28,866
Total assets $637,354 $15,887 $653,241 $350,638 $1,003,879
Capital expenditures $5,546 $66 $5,612 $2,550 $8,162
</TABLE>
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