WEC Energy Group posts second-quarter results

MILWAUKEE, July 27, 2016 /PRNewswire/ -- WEC Energy Group Inc. (NYSE: WEC) recorded net income based on generally accepted accounting principles (GAAP) of $181.4 million, or 57 cents per share, for the second quarter of 2016 compared with $80.9 million, or 35 cents per share, for the second quarter of 2015. WEC Energy Group was formed on June 29, 2015 when Wisconsin Energy completed the acquisition of Integrys.

WEC Energy Group's earnings per share for the second quarter, excluding acquisition costs, decreased by 1 cent per share, from 58 cents in the second quarter of 2015 to 57 cents in the second quarter of 2016.

"Our focus on customer service, operating efficiency and financial discipline contributed to results that place us on track for the year," said Allen Leverett, chief executive officer.

Consolidated revenue for the second quarter of 2016 totaled $1.6 billion, compared to $990 million in the second quarter of 2015. The increase was driven by the addition of $620 million of revenue from Integrys.

At the end of June, WEC Energy Group's utilities were serving approximately 38,000 more customers than the same time a year ago. Wisconsin utilities added about 9,000 more electric customers and nearly 14,000 more natural gas customers in the past year. The company's natural gas utilities in Illinois, Michigan, and Minnesota added nearly 15,000 customers compared to a year ago.

Retail sales of electricity for Wisconsin Electric Power Company and Wisconsin Public Service Corporation - excluding the iron ore mines in Michigan's Upper Peninsula - increased by 3.0 percent from last year's second quarter. Residential use of electricity was up by 7.7 percent. Consumption of electricity by small commercial and industrial customers increased by 2.2 percent.

Electricity use by large commercial and industrial customers - excluding the iron ore mines - increased by 0.3 percent.

On a weather-normal basis, retail sales of electricity - excluding the iron ore mines - were up by 1.0 percent, compared to the second quarter of 2015.

*For purposes of comparing 2016 and 2015 second quarter earnings, the calculation of adjusted EPS for the second quarter of 2015 now includes all interest related to the acquisition financing and all shares issued in conjunction with the acquisition.

For the first six months of 2016, WEC Energy Group recorded net income based on GAAP of $527.6 million, or $1.66 per share, compared to $276.7 million, or $1.21 per share, for the first six months of 2015.

WEC Energy Group's earnings per share for the first six months, excluding acquisition costs, increased by 18 cents per share, from $1.48 for the first six months of 2015 to $1.66 for the first six months of 2016. Year to date results in 2016 include the positive impact from the Integrys acquisition.

*For purposes of comparing 2016 and 2015 YTD earnings, the calculation of adjusted EPS for 2015 YTD includes all interest related to the acquisition financing and all shares issued in conjunction with the acquisition.

Earnings per share listed in this news release are on a fully diluted basis.

Conference call

A conference call is scheduled for 1:30 p.m. Central time on Wednesday, July 27. The presentation will review 2016 second-quarter earnings and will discuss the company's outlook for the future.

All interested parties, including stockholders, news media and the general public, are invited to listen to the presentation. The conference call may be accessed by dialing 866-439-9410 up to 15 minutes before the call begins. International callers may dial 706-643-5658. The conference ID is 42963664.

Access also may be gained through the company's website (wecenergygroup.com). Select 'Second Quarter Earnings Release and Conference Call' and then select 'Webcast'. In conjunction with this earnings announcement, WEC Energy Group will post on its website a package of detailed financial information on its second-quarter performance. The materials will be available at 6:30 a.m. Central time on Wednesday, July 27.

Replay

A replay will be available on the website and by phone after the presentation. Access to the webcast replay will be available on the website about two hours after the presentation. Access to a phone replay also will be available approximately two hours after the presentation and remain accessible through Aug. 9, 2016.  Domestic callers should dial 855-859-2056. International callers should dial 404-537-3406. The replay conference ID is 42963664.

Non-GAAP earnings measures

We have provided adjusted earnings (non-GAAP earnings) in this press release as a complement to, and not as an alternative to, reported earnings presented in accordance with GAAP. The excluded items are not indicative of the company's operating performance. Therefore, we believe that the presentation of adjusted earnings is relevant and useful to investors to understand WEC Energy Group's operating performance. Management uses such measures internally to evaluate the company's performance and manage its operations.

WEC Energy Group (NYSE: WEC), based in Milwaukee, is one of the nation's premier energy companies, serving 4.4 million customers in Wisconsin, Illinois, Michigan and Minnesota.

The company's principal utilities are We Energies, Wisconsin Public Service, Peoples Gas, North Shore Gas, Michigan Gas Utilities, and Minnesota Energy Resources. The company's other major subsidiary, We Power, designs, builds and owns electric generating plants.

WEC Energy Group (wecenergygroup.com), a component of the S&P 500, has approximately $29 billion of assets, 8,500 employees and 55,000 stockholders of record.

Forward-looking statements

Certain statements contained in this press release are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934.  These statements are based upon management's current expectations and are subject to risks and uncertainties that could cause our actual results to differ materially from those contemplated in the statements.  Readers are cautioned not to place undue reliance on these statements.  Forward-looking statements include, among other things, statements concerning management's expectations and projections regarding earnings and future results.  In some cases, forward-looking statements may be identified by reference to a future period or periods or by the use of forward-looking terminology such as "anticipates," "believes," "estimates," "expects," "forecasts," "guidance," "intends," "may," "objectives," "plans," "possible," "potential," "projects," "should," "targets," "will" or similar terms or variations of these terms.

Factors that could cause actual results to differ materially from those contemplated in any forward-looking statements include, but are not limited to: general economic conditions, including business and competitive conditions in the company's service territories; timing, resolution and impact of rate cases and other regulatory decisions; the company's ability to successfully integrate the operations of the Integrys companies; availability of the company's generating facilities and/or distribution systems; unanticipated changes in fuel and purchased power costs; key personnel changes; varying weather conditions; continued industry consolidation; continued adoption of distributed generation by the company's customers; energy conservation efforts; cyber-security threats; construction risks; equity and bond market fluctuations; the impact of any legislative and regulatory changes, including changes to environmental standards; current and future litigation and regulatory investigations; changes in accounting standards; the financial performance of the American Transmission Company; goodwill and its possible impairment; and other factors described under the heading "Factors Affecting Results, Liquidity and Capital Resources" in Management's Discussion and Analysis of Financial Condition and Results of Operations and under the headings "Cautionary Statement Regarding Forward-Looking Information" and "Risk Factors" contained in the company's Form 10-K for the year ended Dec. 31, 2015 and in subsequent reports filed with the Securities and Exchange Commission.  The company expressly disclaims any obligation to publicly update or revise any forward-looking information.

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SOURCE WEC Energy Group Inc.