EX-99.1 PRESS REL 3 earn_rel-3rdqtr.txt PRESS RELEASE Exhibit 99.1 News Release Vectren Corporation P.O. Box 209 Evansville, IN 47702-0209 October 24, 2002 FOR IMMEDIATE RELEASE Vectren Corporation Reports 3rd Quarter 2002 Earnings Increase Evansville, Indiana - Today, Vectren Corporation (NYSE:VVC) reported 2002 third quarter earnings of $14.0 million, or $.21 per share. These results are in line with street expectations and compare to earnings of $4.5 million, or $.07 per share, for the third quarter of 2001. The three months ending September 30, 2001 included nonrecurring merger, integration, and restructuring costs totaling $4.1 million after tax. For the nine months ended September 30, 2002, reported earnings were $73.9 million, or $1.09 per share, compared to $31.2 million, or $.47 per share, for the same period in 2001. The nine months ending September 30, 2001 included nonrecurring merger, integration, and restructuring costs and other nonrecurring items totaling $19.2 million after tax. "The greatly improved third quarter results from our utility group reflect the impact of the extremely warm summer weather on our electric operations and the recovery from costs incurred in 2001 related to the high gas costs of the winter of 2000-2001," said Niel C. Ellerbrook, Vectren's Chairman and CEO. "Our energy marketing group and coal mining operations delivered solid results for the quarter, complementing the strong foundation from our utility operations," added Ellerbrook. Specific highlights for the quarter include: o Net income attributed to utility operations for the third quarter of 2002 was $8.9 million. This compares to net income of $2.7 million before nonrecurring items for the same period in 2001. Improvement in the 2002 third quarter results reflect the impact on electric operations of the warm summer weather, lower costs as compared to the same period a year ago resulting from the high gas costs, and modest customer growth. o Net income attributed to nonregulated operations was $5.8 million for the third quarter 2002 as compared to $6.9 million before nonrecurring items for the same period last year. The decrease of approximately $1.1 million is due primarily to the gain on the sale of certain investments in the Other Businesses group of $1.7 million after tax in 2001, offset somewhat by increased earnings from the Coal Mining and Utility Infrastructure groups. Please SEE ATTACHED unaudited schedules for additional financial information. Live Webcast and Replay: Vectren Corporation will provide more detail on third quarter results on a conference call for analysts scheduled at 9:30 a.m. ET (8:30 a.m. CT), Friday, October 25, 2002. You are invited to listen to the live Webcast and view the supporting slides by accessing the Investor Relations link on Vectren's Web site at www.vectren.com. Interested parties may also view the slide presentation and listen to the Webcast replay via Vectren's Web site beginning two hours after the conclusion of the Webcast. A tape-recorded replay of the call will be available two hours after completion of the conference through Friday, November 1, 2002. To access the replay dial 719-457-0820 and enter the conference identification number 583904. Vectren Corporation is an energy and applied technology holding company headquartered in Evansville, Indiana. Vectren's energy delivery subsidiaries provide gas and/or electricity to approximately one million customers in adjoining service territories that cover nearly two-thirds of Indiana and west central Ohio. Vectren's non-regulated subsidiaries and affiliates currently offer energy-related products and services to customers throughout the surrounding region. These include gas marketing and related services; coal production and sales; utility infrastructure services; and broadband communication services. To learn more about Vectren, visit www.vectren.com. NOTE: Net income for the three and nine-month periods ended September 30 is not indicative of net income for an annual period due to seasonal sales of gas and electricity for space heating and cooling purposes. Safe Harbor for Forward Looking Statements: This press release may contain forward-looking statements. Vectren wishes to caution readers that actual results could differ materially from those that will be projected in this news release and subsequent discussions. Additional detailed information concerning a number of factors that could cause actual results to differ materially from the information that is provided to you is readily available in our report Form 10-K filed with the Securities and Exchange Commission on March 29, 2002. Investor Contact: Steven M. Schein, (812) 491-4209, sschein@vectren.com Media Contact: Jeffrey W. Whiteside, (812) 491-4205, jwhiteside@vectren.com ###

Vectren Selected Highlights 12 months 12 months Ended Ended Sept.30 Sept.30 2002 2001 ------ ------ Dividends Paid (per common share, 12 month) $ 1.06 $ 1.03 Annualized Dividend $ 1.06 $ 1.02 Dividend Yield (at close) 4.8% 4.6% Dividend Payout Ratio 67.5% 117.0% Dividend to Book Value 8.3% 8.4% Return on Average Shareholder Equity 12.6% 7.5% Book Value Per Share $12.79 $12.13 Market to Book Value (at close) 172% 185% Common Stock Prices (VVC - NYSE) High $26.10 $26.50 Low $17.95 $19.76 Close $22.00 $22.39 Price/Earnings Ratio (trailing) 14.0 25.4 Percent Internally Generated Funds - Utility Group 72% 60% Ratio of Earnings to Fixed Charges - SEC Method Consolidated 2.7 2.0 Utility Group 2.9 2.1 * Selected highlights for the twelve months ended September 30, 2001, include eleven months of operations resulting from the acquisition of the Ohio operations on October 31, 2000.

* Gas operating statistics for the twelve months ended September 30, 2001 include eleven months of operations from the acquisition of the Ohio operations on October 31, 2000.

INDIANA GAS CO INC 8-K