Wisconsin Energy posts first quarter results

MILWAUKEE, April 30, 2013 /PRNewswire/ -- Wisconsin Energy (NYSE: WEC) today reported net income from continuing operations of $176.6 million or 76 cents a share for the first quarter of 2013.  This compares with net income from continuing operations of $172.1 million or 74 cents a share for the first quarter of 2012. 

First quarter 2013 revenues were $1.28 billion.  In the corresponding quarter a year ago, revenues totaled $1.19 billion

Cold winter temperatures in the first quarter of 2013 compared to warmer than normal conditions last year drove strong customer demand for natural gas and higher revenues than the company recorded in the first quarter of 2012. 

In addition to the weather, slightly higher earnings at We Power and the impact of the company's share repurchase program were major factors in the positive first quarter performance.

Residential use of electricity rose by 5.2 percent over last year's first quarter.  Consumption of electricity by small commercial and industrial customers grew by 1.3 percent.  Electricity use by large commercial and industrial customers was down 3.9 percent – in line with the company's expectations.

At the end of March, the company was serving approximately 3,000 more electric customers and 6,000 more natural gas customers than a year ago.

"We performed well – operationally and financially – in the first quarter.  The year is off to a solid start, and overall, we're very pleased with our results," said Gale Klappa, chairman, president and chief executive officer.

"We're reaffirming our earnings guidance for calendar year 2013 in the range of $2.38 to $2.48 a share," he said.

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

Conference call

A conference call is scheduled for 1 p.m. Central time on April 30, 2013.  The presentation will review 2013 first 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 80348778.  Access also may be gained through the company's website (wisconsinenergy.com).  Click 'First Quarter Earnings Release and Conference Call' and then click 'Go to webcast.'  In conjunction with this earnings announcement, Wisconsin Energy will post on its website a package of detailed financial information on its first quarter performance.  The materials will be available at 6:30 a.m. Central time on April 30, 2013. 

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 May 13, 2013.  Domestic callers should dial 855-859-2056.  International callers should dial 404-537-3406.  The replay conference ID is 80348778.

Wisconsin Energy Corporation (NYSE: WEC), based in Milwaukee, is one of the nation's premier energy companies, serving more than 1.1 million electric customers in Wisconsin and Michigan's Upper Peninsula and 1.1 million natural gas customers in Wisconsin.  The company's principal utility is We Energies.  The company's other major subsidiary, We Power, designs, builds and owns electric generating plants.

Wisconsin Energy (wisconsinenergy.com), a component of the S&P 500, has more than $14 billion of assets, approximately 4,500 employees and more than 41,000 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 other matters.  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" or similar terms or variations of these terms.

Actual results may differ materially from those set forth in forward-looking statements.  In addition to the assumptions and other factors referred to specifically in connection with these statements, 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; business, competitive and regulatory conditions in the deregulating and consolidating energy industry, in general, and, in particular, in the company's service territories; timing, resolution and impact of future rate cases and other regulatory decisions; availability of the company's generating facilities; varying weather conditions; catastrophic weather-related or terrorism-related damage; cyber-security threats; unanticipated changes in purchased power costs; unanticipated changes in coal or natural gas prices and supply and transportation availability; the ability to recover fuel and purchased power costs; nonperformance by purchased power or natural gas suppliers under existing contracts; environmental incidents; key personnel changes; inflation rates; customer growth and declines; customer business conditions, including demand for their products and services; energy conservation efforts; construction risks; adverse interpretation or enforcement of permit conditions by permitting agencies; restrictions imposed by financing arrangements and regulatory requirements on the ability of the company's subsidiaries to transfer funds to it in the form of cash dividends, loans or advances; current and future litigation, regulatory investigations, proceedings or inquiries, including Federal Energy Regulatory Commission matters and Internal Revenue Service audits and other tax matters; the impact of recent and future federal, state and local legislative and regulatory changes; equity and bond market fluctuations and events in the global credit markets that may affect the availability and cost of capital; the investment performance of the company's pension and other post-retirement benefit trusts; the financial performance of the American Transmission Company; the effect of accounting pronouncements issued periodically by standard setting bodies; foreign governmental, economic, political and currency risks; 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, 2012 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 statements, whether as a result of new information, future events or otherwise.

Tables Follow

WISCONSIN ENERGY CORPORATION

CONSOLIDATED CONDENSED INCOME STATEMENTS

(Unaudited)






Three Months Ended March 31


2013


2012


(Millions of Dollars, Except Per Share Amounts)





Operating Revenues

$

1,275.2



$

1,191.2






Operating Expenses




Fuel and purchased power

271.0



253.8


Cost of gas sold

270.1



237.5


Other operation and maintenance

288.1



286.3


Depreciation and amortization

95.5



87.6


Property and revenue taxes

29.5



30.3


Total Operating Expenses

954.2



895.5






Operating Income

321.0



295.7






Equity in Earnings of Transmission Affiliate

16.6



15.6


Other Income, net

4.4



16.0


Interest Expense, net

65.0



58.9






Income Before Income Taxes

277.0



268.4






Income Tax Expense

100.4



96.3






Net Income

$

176.6



$

172.1






Earnings Per Share




Basic

$

0.77



$

0.75


Diluted

$

0.76



$

0.74






Weighted Average Common Shares Outstanding (Millions)




Basic

228.9



230.5


Diluted

231.2



233.2






Dividends Per Share of Common Stock

$

0.34



$

0.30


 

 

WISCONSIN ENERGY CORPORATION

CONSOLIDATED CONDENSED BALANCE SHEETS

(Unaudited)




March 31, 2013


December 31, 2012


(Millions of Dollars)

Assets








Property, Plant and Equipment, Net

$

10,616.1



$

10,572.2






Investments




Equity investment in transmission affiliate

383.0



378.3


Other

36.8



35.5


Total Investments

419.8



413.8






Current Assets




Cash and cash equivalents

24.7



35.6


Restricted cash



2.7


Accounts receivable, net

389.0



285.3


Accrued revenues

246.3



278.1


Materials, supplies and inventories

266.8



360.7


Prepayments and other

387.0



351.5


Total Current Assets

1,313.8



1,313.9






Deferred Charges and Other Assets




Regulatory assets

1,323.9



1,339.0


Goodwill

441.9



441.9


Other

179.8



204.2


Total Deferred Charges and Other Assets

1,945.6



1,985.1


Total Assets

$

14,295.3



$

14,285.0






Capitalization and Liabilities








Capitalization




Common equity

$

4,203.6



$

4,135.1


Preferred stock of subsidiary

30.4



30.4


Long-term debt

4,441.0



4,453.8


Total Capitalization

8,675.0



8,619.3






Current Liabilities




Long-term debt due currently

413.5



412.1


Short-term debt

316.7



394.6


Accounts payable

257.1



368.4


Accrued payroll and benefits

71.7



100.9


Other

219.1



167.3


Total Current Liabilities

1,278.1



1,443.3






Deferred Credits and Other Liabilities




Regulatory liabilities

853.7



866.5


Deferred income taxes - long-term

2,275.6



2,117.0


Deferred revenue, net

702.6



709.7


Pension and other benefit obligations

233.9



244.0


Other

276.4



285.2


Total Deferred Credits and Other Liabilities

4,342.2



4,222.4


Total Capitalization and Liabilities

$

14,295.3



$

14,285.0






 

 

WISCONSIN ENERGY CORPORATION

CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS

(Unaudited)






Three Months Ended March 31


2013


2012


(Millions of Dollars)

Operating Activities




Net income

$

176.6



$

172.1


Reconciliation to cash




Depreciation and amortization

98.2



90.6


Deferred income taxes and investment tax credits, net

42.8



67.9


Working capital and other

12.7



9.9


Cash Provided by Operating Activities

330.3



340.5






Investing Activities




Capital expenditures

(133.6)



(142.3)


Investment in transmission affiliate

(1.3)



(2.6)


Change in restricted cash

2.7



20.8


Other, net

(13.1)



(6.3)


Cash Used in Investing Activities

(145.3)



(130.4)






Financing Activities




Common stock issued (repurchased), net

(39.2)



(16.3)


Dividends paid on common stock

(77.8)



(69.1)


Change in debt, net

(86.4)



(120.6)


Other, net

7.5



(0.1)


Cash Used in Financing Activities

(195.9)



(206.1)






Change in Cash

(10.9)



4.0






Cash at Beginning of Period

35.6



14.1






Cash at End of Period

$

24.7



$

18.1






SOURCE Wisconsin Energy Corporation



RELATED LINKS
http://www.wisconsinenergy.com

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