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)
February 2, 2000
SIGCORP, Inc.
(Exact name of registrant as specified in its charter)
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Indiana 01-11603 35-1940620
(State of (Commission File Number) (I.R.S. Employer
Incorporation) Identification No.)
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20 NW Fourth Street
Evansville, Indiana 47741
(Address of Principal (Zip Code)
Executive Offices)
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Registrant's telephone number, including
area code (812) 465-5300
Item 5. Other Events.
On February 2, 2000, SIGCORP, Inc. announced its
revenues and earnings for the quarter and year ended
December 31, 1999. Pursuant to General Instruction F to
Form 8-K, the press release dated February 2, 2000 (Exhibit
99.1) is incorporated herein by reference and is attached
hereto.
Item 7. Exhibits.
(c) Exhibits
The following exhibits are filed as a part of this
report:
Exhibit
Number Description
99.1 Press release dated February 2, 2000
announcing its revenues and earnings for
the quarter and year ended December 31,
1999.
Pursuant to the requirements of the Securities Exchange
of 1934, the registrant has duly caused this report to be
signed on its behalf by the undersigned hereunto duly
authorized.
SIGCORP, Inc.
Dated: February 11, 2000
By: /s/ S. M. Kerney
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S. M. Kerney, Controller
(Principal Accounting
Officer)
EXHIBIT-99.1
February 2, 2000
Timothy Burke, Secretary/Treasurer
(812) 465-4136
Strong Fourth Quarter Results Push SIGCORP Year End
Earnings to All-Time Record
Evansville, Indiana -- SIGCORP, Inc. (NYSE:SIG), a gas
and electric utility, energy services and
telecommunications company, today announced its revenues
and earnings for the quarter and year ended December 31,
1999.
SIGCORP, the parent of Southern Indiana Gas and Electric
Company (SIGECO), earned $11.0 million (47 cents per
basic common share), a 53% increase over fourth quarter
1998 net income of $7.2 million (30 cents per share),
resulting in record earnings of $2.20 per basic share of
common stock for 1999. The previous yearly earnings
record of $2.14 per share, set in 1998, included a $2.9
million after-tax (12 cents per share)
one-time gain on the liquidation of an equity position
in a leveraged lease. Current quarter revenues were
$164.4 million, compared with $148.7 million for the
prior year period.
"Much stronger results from both our utility and non-
utility operations during the current quarter propelled
SIGCORP's 1999 earnings past last year's record.
SIGECO's wholesale power marketing group provided a
significant contribution to our utility results and our
investment subsidiary, Southern Indiana Properties
(SIPI), had another outstanding quarter, doubling its
excellent fourth quarter 1998 earnings," said Chairman
and CEO Ronald G. Reherman. "These outstanding results
are evidence that our strategies to enhance shareholder
value are working and provide a solid a base for
continued growth. We believe our pending merger of
equals to form Vectren Corporation will build upon the
solid foundation existing at both SIGCORP and Indiana
Energy to create even greater shareholder value in the
future," he added.
Utility earnings during the fourth quarter of 1999 were
$0.11 per share, a 46% improvement over the year-earlier
period. Favorable impacts of increased sales to retail
and municipal electric customers, greater sales and unit
margins in the wholesale power market and increased
other income were partially offset by anticipated higher
operations costs and increased depreciation and property
tax expenses. Led by the very strong results from SIPI,
as well as from the SIGCORP Fuels subsidiary, earnings
from SIGCORP's non-utility operations rose 86%, adding
$0.06 per share to 1998 fourth quarter results.
Total retail and firm wholesale electric sales rose 12%
during the fourth quarter of 1999 compared to the 1998
period, reflecting the continued strength of the local
economy in SIGECO's service area. Commercial,
industrial and residential electric sales were up 14%,
12% and 12%, respectively. Several new sales contracts
to other utilities and power marketers produced a 22%
increase in related electric sales and raised SIGECO's
average unit sales margin on such sales 78% compared to
the prior year period. Although temperatures in
SIGECO's service area during the recent quarter were
comparable to the same period in 1998 in terms of
heating degree days, gas sales declined slightly. A 14%
rise in transported gas activity led a 5% increase in
total sales and transported volumes, reflecting the
area's growth in commercial and industrial activity.
The continued growth of SIGCORP's natural gas marketing
subsidiary, SIGCORP Energy Services (SES), was the chief
reason for SIGCORP's $15.7 million, or 11%, fourth
quarter revenue increase. During the same period, total
operating expenses were up $13.2 million, or 10%,
primarily due to higher cost of sales-related expenses
at SES.
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Factors Affecting Earnings Qtr 12 Mos
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Period ended December 31, 1998 $.30 $2.14
Weather - (.01)
Sales growth other than weather .07 .19
Electric sales to other utilities and
power marketers .05 .07
Utility O&M expense (.04) (.11)
Utility depreciation expense (.02) (.06)
Non-utility operations .06 (.07)
Other .05 .05
Period ended December 31, 1999 $.47 $2.20
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Net income for the twelve months ended December 31, 1999
was $52.1 million, or $2.20 per basic share of common
stock, on revenues of $604.5 million, versus net income
of $50.5 million, or $2.14 per basic share of common
stock, on revenues of $557.1 million for the twelve
months ended December 31, 1998.
The $0.06 per share increase in earnings for the current
twelve-month period was the result of a 5% increase in
retail and municipal electric sales, higher unit margins
on sales to other utilities and power marketers, a 6%
increase in gas sales and greater capitalized interest
charges, the favorable impacts of which were partially
offset by higher utility operations, maintenance and
depreciation expenses and comparatively lower non-
utility earnings due to the $0.12 cents per share after-
tax gain realized by SIPI on the liquidation of an
equity position in a leveraged lease in 1998.
SIGCORP, Inc., a holding company, through its public
utility subsidiary, SIGECO (one of the lowest cost
energy producers in the country), is engaged in the
generation, transmission, distribution and sale of
electricity and the purchase of natural gas and its
transportation, distribution and sale in a service area
that covers ten counties in southwestern Indiana.
SIGCORP's Energy Services, a non-regulated energy
marketer, is also engaged in the purchase of natural gas
and its transportation and sale to large volume natural
gas consumers in the region. SIGCORP also operates
several other non-utility subsidiaries.
This press release may contain forward-looking
statements concerning our anticipation of future events
that involve inherent risks and uncertainties. A number
of important factors which are difficult to predict and
many of which are beyond the control of the company
could cause actual results to differ materially from
those in the forward-looking statements. Forward-
looking statements may be significantly impacted by
certain risks and uncertainties, including, but not
limited to, economic or weather conditions affecting
future sales, changes in markets for energy services,
changing energy market prices, legislative and
regulatory changes, including revised environmental
requirements, industry restructuring, availability and
cost of capital and other similar factors.
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SIGCORP, INC.
CONSOLIDATED STATEMENTS OF INCOME
FOR THE PERIODS ENDED DECEMBER 31, 1999 AND 1998
(in thousands except per share data)
Twelve Months
Quarter Ended 12/31
Ended
12/31
1999 1998 1999 1998
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Operating Revenues
Electric $ 68,609 $ 67,183 $ 307,569 $ 297,865
Gas 20,239 21,157 68,212 66,801
Energy services and other 75,600 60,359 228,710 192,445
Total 164,448 148,699 604,491 557,111
Operating Income $ 16,522 $ 14,017 $ 88,812 $ 86,079
Net Income applicable to
common stock $ 11,019 $ 7,168 $ 52,059 $ 50,476
Basic Earnings per common $ 0.47 $ 0.30 $ 2.20 $ 2.14
share
Diluted Earnings per common $ 0.47 $ 0.30 $ 2.19 $ 2.12
share
Average common shares
outstanding 23,631 23,631 23,631 23,631
Electric Sales (MWh)
Residential 261,649 234,523 1,371,580 1,326,024
Commercial 311,516 274,092 1,304,008 1,243,329
Industrial 621,211 553,370 2,415,990 2,256,116
Other 5,672 5,880 19,367 20,155
Total system 1,200,048 1,067,865 5,110,945 4,845,624
Municipals and Jasper 159,039 141,953 659,455 623,659
Alcoa Generating Corporation 11,391 203,423 314,447 363,161
Other Wholesale 229,459 188,248 855,868 1,026,737
Total 1,599,937 1,601,489 6,940,715 6,859,181
Gas Sold and Transported
(MDth)
Residential 2,441 2,510 8,262 7,764
Commercial 1,057 1,126 3,498 3,290
Industrial 110 119 467 514
Other 6 20 43 48
Transported 4,918 4,331 19,580 17,349
Total 8,532 8,106 31,850 28,965
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