On a GAAP basis, NiSource reported income from continuing operations for the 12 months ended Dec. 31, 2009, of $231.2 million, or .84 per share, compared with $370.6 million, or $1.35 per share in 2008. Operating income was $801.9 million for 2009 versus $918.7 million in the year-ago period. Schedules 1 and 2 of this news release contain a reconciliation of net operating earnings and operating earnings to GAAP.
For the three months ended Dec. 31, 2009, net operating earnings were $98.9 million (non-GAAP), or .35 per share, compared with $126.2 million, or .46 per share, for the same period in 2008. On a GAAP basis, income from continuing operations for the three months ended Dec. 31, 2009 was $88.5 million, or .32 per share, compared with $127.5 million, or .46 per share for the fourth quarter of 2008.
"Our team's exceptional execution enabled NiSource to not only weather the storm during 2009, but to emerge as a stronger, more robust company," NiSource President and Chief Executive Officer Robert C. Skaggs, Jr. said. "Despite unprecedented dislocations in the financial markets and a very challenging economic environment - particularly in our Northern Indiana markets - our company's underlying business performance remained strong, our liquidity position improved significantly, and we produced tangible results from our core strategy to build shareholder value and deliver long-term, sustainable earnings growth.
The company noted that its net operating earnings for 2009 (non-GAAP) were in line with the company's guidance range of $1.00 to $1.10 per share announced early last year. The results reflect increased net revenues in NiSource's Gas Distribution and Gas Transmission & Storage businesses, as well as the effects of open market debt repurchases and lower short-term interest rates. As anticipated, these improvements were more than offset by previously disclosed increased pension expense, reduced electric demand resulting from the economic downturn, and incremental interest expense related to the issuance of long-term debt under the company's liquidity plan.
Compared with 2008, NiSource's 2009 results reflected approximately $69.9 million in additional net revenues (excluding regulatory trackers) at NiSource's Gas Distribution unit, primarily attributable to regulatory initiatives. NiSource's Gas Transmission & Storage unit also delivered $56.2 million in increased net revenues (excluding regulatory trackers) resulting from growth projects, short-term transportation and storage services, and mineral rights leasing. These improvements helped to lessen impacts from the economic recession, which resulted in reduced industrial electric demand of approximately 17 percent compared to 2008 levels.
"Through our revenue growth initiatives, as well as aggressive cost management efforts across all our businesses, we mitigated a significant portion of the impacts of the economic recession," Skaggs said. "Our ability to deliver on our financial commitments in the face of a tough economy underscores the resilience of our core regulated businesses and is a testament to the team's disciplined execution of their business plans."
NiSource Inc. (NYSE:NI) , based in Merrillville, Ind., is a Fortune 500 company engaged in natural gas transmission, storage and distribution, as well as electric generation, transmission and distribution. NiSource operating companies deliver energy to 3.7 million customers located within the high-demand energy corridor stretching from the Gulf Coast through the Midwest to New England. Information about NiSource and its subsidiaries is available via the Internet at www.nisource.com .
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