This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Vectren's CEO Discusses Q3 2011 Results - Earnings Call Transcript

With that, I'll turn it over to Jerry.

Jerry Benkert

Thanks, Robert. I would like to welcome everyone to today's call. As always, we really appreciate you joining us. Overall, we are pleased with our 2011 year-to-date results. Looking at slides three and four, our utility operations continue to provide a solid contribution earnings leading the way year-to-date.

Our non-utility portfolio other than ProLiance also has performed very well in 2011. Highlighted by the increased earnings we are seeing year-to-date and particularly in the third quarter from infrastructure services and coal mining. ProLiance on the other hand continues to struggle on the ongoing weak natural gas market facing gas marketers. Carl will comment further on these market conditions and the significant progress that ProLiance has made to improve future performance.

I will discuss where we did stand on our 2011 earnings guidance here in a few minutes, but first I want to touch up on a few recent highlights listed on slide three.

I am pleased to report that on Wednesday our Board declared a 1.4% dividend increase bringing Vectren’s quarterly dividend to $0.35 per share or $1.40 per share annualized effective December 01, 2011. This marks the 52 nd consecutive year that annual dividends have increased. A record we are proud to maintain because of the contribution our dividend adds to total shareholder return for our investors. In addition we believe our current yield of approximately 5% remains very attractive.

On the financing front, in October, we successfully priced $100 million of utility related long term debt and interest rate at 5%. With this, later this month, we will be able to call at par $96 million of 5.95% long term debt. As you recall back in March we priced $150 million of utility long term debt at a weighted average interest rate of 5.12% and with a delayed draw feature in order to receive the proceeds at the end of this month which coincides with a $250 million 6.58 (ph) debt maturity on December 1 st.

Given the very low levels of short term debt currently outstanding supporting our utility operations we plan to refinance the remaining $100 million with short term debt. In total, the net impact of these financing actions will achieve annualized savings of nearly $9 million in 2012 and beyond, which will help our utility businesses offset rising costs expected in other areas of their operations such as depreciation and chemical cost for example.

2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

Chart of I:DJI
DOW 16,643.01 -11.76 -0.07%
S&P 500 1,988.87 +1.21 0.06%
NASDAQ 4,828.3250 +15.6170 0.32%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs