Attached files
| file | filename |
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| 8-K - WEC Q2 2011 EARNINGS 8-K - WEC ENERGY GROUP, INC. | wecq22011earningsrelease8k.htm |
Exhibit 99
From: Brian Manthey (news media)
414-221-4444
brian.manthey@we-energies.com
Colleen F. Henderson, CFA (analysts)
414-221-2592
colleen.henderson@wisconsinenergy.com
July 28, 2011
Wisconsin Energy posts second quarter and first half 2011 earnings
MILWAUKEE - Wisconsin Energy (NYSE: WEC) today reported net income from continuing operations of $98 million or 41 cents a share for the second quarter of 2011. This compares with net income from continuing operations of $88 million or 37 cents a share for the second quarter of 2010.
For the first six months of 2011, the company reported net income from continuing operations of $269 million or $1.14 a share - up from $216 million or 91 cents a share in the corresponding period a year ago.
The company also reported net income from discontinued operations of 5 cents a share for the second quarter and first six months of 2011. These earnings arose from the resolution of several state and federal tax matters. Net income from discontinued operations was immaterial for all of 2010.
Wisconsin Energy's second quarter 2011 performance was helped by additional income from the company's Power the Future plan. Reported income from the company's Power the Future assets increased by 3 cents a share, driven by an investment of $668 million in the second Oak Creek generating unit. The unit began commercial service in January 2011.
Second quarter 2011 revenues totaled $992 million. This compares with revenues of $891 million for the second quarter last year.
Overall, retail sales of electricity declined by 1.2 percent as compared with the second quarter of 2010. Sales of electricity to large commercial and industrial customers grew by 1.8 percent. Sales to residential and small commercial and industrial customers were down by 3 percent, primarily the result of mild weather during the second quarter of this year and a lack of air conditioning demand during June.
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At the end of June, the company was serving approximately 2,000 more electric customers and approximately 4,000 more natural gas customers than a year ago.
“By virtually any meaningful measure - from customer satisfaction to network reliability to financial results - the company continues to perform at a high level,” said Gale Klappa, chairman, president and chief executive officer. “And we remain on plan with construction work on the new air quality controls at the original Oak Creek generating units and at the Glacier Hills Wind Park - which will become the largest wind farm in Wisconsin when it's completed later this year.”
Earnings per share listed in this news release are on a fully diluted basis. Prior year earnings per share were restated to reflect the two-for-one stock split that occurred on March 1, 2011.
Conference call
A conference call is scheduled for 1 p.m. Central time on Thursday, July 28, 2011. The presentation will review 2011 second quarter earnings and will discuss the company's outlook for the future.
All interested parties, including stockholders, news media and 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 confirmation code is 81847328. Access also may be gained through the company's website (www.wisconsinenergy.com). Click 'Second 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 second quarter performance. The materials will be available at 6 a.m. Central time on July 28, 2011.
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. 11, 2011. Domestic callers should dial 800-642-1687. International callers should dial 706-645-9291. The replay confirmation code is 81847328.
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 more than 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 Corporation (www.wisconsinenergy.com), a component of the
S&P 500, has more than $13 billion of assets, approximately 4,600 employees and more than 43,000 stockholders of record.
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Tables Follow
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WISCONSIN ENERGY CORPORATION | |||||||||||||||
CONSOLIDATED CONDENSED INCOME STATEMENTS | |||||||||||||||
(Unaudited) | |||||||||||||||
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||
2011 | 2010 | 2011 | 2010 | ||||||||||||
(Millions of Dollars, Except Per Share Amounts) | |||||||||||||||
Operating Revenues | $ | 991.7 | $ | 890.9 | $ | 2,320.4 | $ | 2,139.5 | |||||||
Operating Expenses | |||||||||||||||
Fuel and purchased power | 286.0 | 258.4 | 553.6 | 535.8 | |||||||||||
Cost of gas sold | 121.8 | 95.8 | 464.2 | 451.6 | |||||||||||
Other operation and maintenance | 298.9 | 317.5 | 612.4 | 652.9 | |||||||||||
Depreciation and amortization | 82.3 | 76.8 | 163.6 | 151.2 | |||||||||||
Property and revenue taxes | 28.3 | 26.3 | 56.6 | 52.9 | |||||||||||
Total Operating Expenses | 817.3 | 774.8 | 1,850.4 | 1,844.4 | |||||||||||
Amortization of Gain | — | 47.2 | — | 96.6 | |||||||||||
Operating Income | 174.4 | 163.3 | 470.0 | 391.7 | |||||||||||
Equity in Earnings of Transmission Affiliate | 15.2 | 15.1 | 30.7 | 30.3 | |||||||||||
Other Income, net | 14.4 | 9.7 | 26.9 | 15.9 | |||||||||||
Interest Expense, net | 57.4 | 53.0 | 120.8 | 102.4 | |||||||||||
Income from Continuing Operations Before Income Taxes | 146.6 | 135.1 | 406.8 | 335.5 | |||||||||||
Income Taxes | 48.6 | 47.6 | 137.9 | 119.0 | |||||||||||
Income from Continuing Operations | 98.0 | 87.5 | 268.9 | 216.5 | |||||||||||
Income from Discontinued Operations, Net of Tax | 11.5 | 1.2 | 11.5 | 1.9 | |||||||||||
Net Income | $ | 109.5 | $ | 88.7 | $ | 280.4 | $ | 218.4 | |||||||
Earnings Per Share (Basic) | |||||||||||||||
Continuing operations | $ | 0.42 | $ | 0.37 | $ | 1.15 | $ | 0.93 | |||||||
Discontinued operations | 0.05 | 0.01 | 0.05 | — | |||||||||||
Total Earnings Per Share (Basic) | $ | 0.47 | $ | 0.38 | $ | 1.20 | $ | 0.93 | |||||||
Earnings Per Share (Diluted) | |||||||||||||||
Continuing operations | $ | 0.41 | $ | 0.37 | $ | 1.14 | $ | 0.91 | |||||||
Discontinued operations | 0.05 | — | 0.05 | 0.01 | |||||||||||
Total Earnings Per Share (Diluted) | $ | 0.46 | $ | 0.37 | $ | 1.19 | $ | 0.92 | |||||||
Weighted Average Common Shares Outstanding (Millions) | |||||||||||||||
Basic | 233.7 | 233.8 | 233.7 | 233.8 | |||||||||||
Diluted | 236.6 | 236.6 | 236.6 | 236.7 | |||||||||||
Dividends Per Share of Common Stock | $ | 0.26 | $ | 0.20 | $ | 0.52 | $ | 0.40 | |||||||
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WISCONSIN ENERGY CORPORATION | |||||||
CONSOLIDATED CONDENSED BALANCE SHEETS | |||||||
(Unaudited) | |||||||
June 30, 2011 | December 31, 2010 | ||||||
(Millions of Dollars) | |||||||
Assets | |||||||
Property, Plant and Equipment, Net | $ | 9,821.3 | $ | 9,601.5 | |||
Investments | |||||||
Equity investment in transmission affiliate | 341.1 | 330.5 | |||||
Other | 35.6 | 45.8 | |||||
Total Investments | 376.7 | 376.3 | |||||
Current Assets | |||||||
Cash and cash equivalents | 10.6 | 24.5 | |||||
Restricted cash | 45.5 | 8.3 | |||||
Accounts receivable | 344.9 | 344.6 | |||||
Accrued revenues | 172.4 | 280.3 | |||||
Materials, supplies and inventories | 339.1 | 379.1 | |||||
Regulatory assets | 53.0 | 54.4 | |||||
Prepayments and other | 206.4 | 239.9 | |||||
Total Current Assets | 1,171.9 | 1,331.1 | |||||
Deferred Charges and Other Assets | |||||||
Regulatory assets | 1,055.0 | 1,090.1 | |||||
Goodwill | 441.9 | 441.9 | |||||
Other | 209.5 | 218.9 | |||||
Total Deferred Charges and Other Assets | 1,706.4 | 1,750.9 | |||||
Total Assets | $ | 13,076.3 | $ | 13,059.8 | |||
Capitalization and Liabilities | |||||||
Capitalization | |||||||
Common equity | $ | 3,947.6 | $ | 3,802.1 | |||
Preferred stock of subsidiary | 30.4 | 30.4 | |||||
Long-term debt | 4,334.6 | 3,932.0 | |||||
Total Capitalization | 8,312.6 | 7,764.5 | |||||
Current Liabilities | |||||||
Long-term debt due currently | 30.6 | 473.4 | |||||
Short-term debt | 542.4 | 657.9 | |||||
Accounts payable | 309.8 | 315.4 | |||||
Regulatory liabilities | 15.3 | 15.3 | |||||
Other | 245.6 | 259.1 | |||||
Total Current Liabilities | 1,143.7 | 1,721.1 | |||||
Deferred Credits and Other Liabilities | |||||||
Regulatory liabilities | 931.5 | 883.8 | |||||
Deferred income taxes - long-term | 1,339.8 | 1,154.8 | |||||
Deferred revenue, net | 781.3 | 805.5 | |||||
Pension and other benefit obligations | 233.5 | 353.2 | |||||
Other | 333.9 | 376.9 | |||||
Total Deferred Credits and Other Liabilities | 3,620.0 | 3,574.2 | |||||
Total Capitalization and Liabilities | $ | 13,076.3 | $ | 13,059.8 | |||
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WISCONSIN ENERGY CORPORATION | |||||||
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS | |||||||
(Unaudited) | |||||||
Six Months Ended June 30 | |||||||
2011 | 2010 | ||||||
(Millions of Dollars) | |||||||
Operating Activities | |||||||
Net income | $ | 280.4 | $ | 218.4 | |||
Reconciliation to cash | |||||||
Depreciation and amortization | 169.2 | 157.4 | |||||
Contributions to qualified benefit plans | (122.4 | ) | — | ||||
Deferred income taxes and investment tax credits, net | 137.0 | 7.3 | |||||
Working capital and other | 184.4 | 40.6 | |||||
Cash Provided by Operating Activities | 648.6 | 423.7 | |||||
Investing Activities | |||||||
Capital expenditures | (347.1 | ) | (379.1 | ) | |||
Change in restricted cash | (37.2 | ) | 81.8 | ||||
Proceeds from asset sales | 38.5 | 63.5 | |||||
Other investing activities, net | (21.7 | ) | (41.5 | ) | |||
Cash Used in Investing Activities | (367.5 | ) | (275.3 | ) | |||
Financing Activities | |||||||
Common stock issued (repurchased), net | (22.0 | ) | (25.7 | ) | |||
Dividends paid on common stock | (121.5 | ) | (93.5 | ) | |||
Change in debt, net | (152.4 | ) | (38.2 | ) | |||
Other financing activities, net | 0.9 | (0.7 | ) | ||||
Cash Used in Financing Activities | (295.0 | ) | (158.1 | ) | |||
Change in Cash | (13.9 | ) | (9.7 | ) | |||
Cash at Beginning of Period | 24.5 | 20.2 | |||||
Cash at End of Period | $ | 10.6 | $ | 10.5 | |||
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