WEC ENERGY GROUP, INC. - FORM 8-K - EX-99 - WEC Q3 2011 EARNINGS EXHIBIT 99 - October 27, 2011

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8-K - WEC Q3 2011 EARNINGS 8-K - WEC ENERGY GROUP, INC.wecq32011earningsrelease8k.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

Oct. 27, 2011            

Wisconsin Energy posts third quarter and nine month earnings

MILWAUKEE - Wisconsin Energy (NYSE: WEC) today reported net income from continuing operations of $129.8 million or 55 cents a share for the third quarter of 2011. This compares with net income from continuing operations of $112.3 million or 47 cents a share for the third quarter of 2010.

For the first nine months of 2011, the company reported net income from continuing operations of $398.7 million or $1.69 a share -- up from $328.8 million or $1.39 a share in the corresponding period a year ago.

A major factor contributing to this year's third quarter performance was income from the company's Power the Future plan. Earnings from Power the Future assets rose by 3 cents a share, driven by investment in the second new generating unit at the company's Oak Creek site. The second expansion unit at Oak Creek began commercial service in January.

During this year's third quarter, consumption of electricity by large commercial and industrial customers grew 0.3 percent, while electricity use by small commercial and industrial customers was up 1.0 percent. Residential electricity use was down by 2.3 percent from the third quarter a year ago.

“Summer temperatures in the Midwest were warmer than normal this year. But the summer of 2010 was one of the hottest on record,” said Gale Klappa, chairman, president and chief executive of Wisconsin Energy. “As a result, residential demand for air conditioning was slightly lower than we recorded in the third quarter last year.”

At the end of September, the company was serving 2,114 more electric customers and 4,170 more natural gas customers than a year ago.
 


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“In total, we've invested $7.8 billion since 2003 to upgrade the energy infrastructure of the region,” added Klappa. “Those investments are paying real dividends for our customers in the form of high reliability and dramatically improved environmental performance,” Klappa said.

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 Oct. 27, 2011. The presentation will review 2011 third 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 conference ID is 15935154. Access also may be gained through the company's website (wisconsinenergy.com). Click 'Third 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 third quarter performance. The materials will be available at 6:30 a.m. Central time on Oct. 27, 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 Nov. 10, 2011. Domestic callers should dial 855-859-2056. International callers should dial 404-537-3406. The replay conference ID is 15935154.

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.

# # #

Tables Follow



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WISCONSIN ENERGY CORPORATION
CONSOLIDATED CONDENSED INCOME STATEMENTS
(Unaudited)
 
 
 
 
 
 
 
 
 
Three Months Ended September 30
 
Nine Months Ended September 30
 
2011
 
2010
 
2011
 
2010
 
(Millions of Dollars, Except Per Share Amounts)
Operating Revenues
$
1,052.8

 
$
973.2

 
$
3,373.2

 
$
3,112.7

 
 
 
 
 
 
 
 
Operating Expenses
 
 
 
 
 
 
 
Fuel and purchased power
350.9

 
335.6

 
904.5

 
871.4

Cost of gas sold
69.2

 
67.4

 
533.4

 
519.0

Other operation and maintenance
296.9

 
318.1

 
909.3

 
971.0

Depreciation and amortization
82.6

 
77.4

 
246.2

 
228.6

Property and revenue taxes
28.9

 
26.9

 
85.5

 
79.8

Total Operating Expenses
828.5

 
825.4

 
2,678.9

 
2,669.8

 
 
 
 
 
 
 
 
Amortization of Gain
—

 
55.2

 
—

 
151.8

 
 
 
 
 
 
 
 
Operating Income
224.3

 
203.0

 
694.3

 
594.7

 
 
 
 
 
 
 
 
Equity in Earnings of Transmission Affiliate
15.7

 
15.2

 
46.4

 
45.5

Other Income, net
16.2

 
9.6

 
43.1

 
25.5

Interest Expense, net
56.8

 
52.5

 
177.6

 
154.9

 
 
 
 
 
 
 
 
Income from Continuing Operations Before Income Taxes
199.4

 
175.3

 
606.2

 
510.8

 
 
 
 
 
 
 
 
Income Taxes
69.6

 
63.0

 
207.5

 
182.0

 
 
 
 
 
 
 
 
Income from Continuing Operations
129.8

 
112.3

 
398.7

 
328.8

 
 
 
 
 
 
 
 
Income (Loss) from Discontinued Operations, Net of Tax
—

 
(0.1
)
 
11.5

 
1.8

Net Income
$
129.8

 
$
112.2

 
$
410.2

 
$
330.6

 
 
 
 
 
 
 
 
Earnings Per Share (Basic)
 
 
 
 
 
 
 
Continuing operations
$
0.56

 
$
0.48

 
$
1.71

 
$
1.41

Discontinued operations
—

 
—

 
0.05

 
—

Total Earnings Per Share (Basic)
$
0.56

 
$
0.48

 
$
1.76

 
$
1.41

 
 
 
 
 
 
 
 
Earnings Per Share (Diluted)
 
 
 
 
 
 
 
Continuing operations
$
0.55

 
$
0.47

 
$
1.69

 
$
1.39

Discontinued operations
—

 
—

 
0.05

 
0.01

Total Earnings Per Share (Diluted)
$
0.55

 
$
0.47

 
$
1.74

 
$
1.40

 
 
 
 
 
 
 
 
Weighted Average Common Shares Outstanding (Millions)
 
 
 
 
 
 
 
Basic
232.2

 
233.8

 
233.2

 
233.8

Diluted
234.9

 
236.9

 
236.0

 
236.7

 
 
 
 
 
 
 
 
Dividends Per Share of Common Stock
$
0.26

 
$
0.20

 
$
0.78

 
$
0.60




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WISCONSIN ENERGY CORPORATION
CONSOLIDATED CONDENSED BALANCE SHEETS
(Unaudited)
 
 
 
 
 
September 30, 2011
 
December 31, 2010
 
(Millions of Dollars)
Assets
 
 
 
 
 
 
 
Property, Plant and Equipment, Net
$
9,999.1

 
$
9,601.5

 
 
 
 
Investments
 
 
 
Equity investment in transmission affiliate
346.2

 
330.5

Other
36.6

 
45.8

Total Investments
382.8

 
376.3

 
 
 
 
Current Assets
 
 
 
Cash and cash equivalents
15.1

 
24.5

Restricted cash
45.5

 
8.3

Accounts receivable
314.0

 
344.6

Accrued revenues
162.2

 
280.3

Materials, supplies and inventories
368.1

 
379.1

Prepayments and other
227.5

 
294.3

Total Current Assets
1,132.4

 
1,331.1

 
 
 
 
Deferred Charges and Other Assets
 
 
 
Regulatory assets
1,082.9

 
1,090.1

Goodwill
441.9

 
441.9

Other
210.4

 
218.9

Total Deferred Charges and Other Assets
1,735.2

 
1,750.9

 
 
 
 
Total Assets
$
13,249.5

 
$
13,059.8

 
 
 
 
Capitalization and Liabilities
 
 
 
 
 
 
 
Capitalization
 
 
 
Common equity
$
3,940.7

 
$
3,802.1

Preferred stock of subsidiary
30.4

 
30.4

Long-term debt
4,618.9

 
3,932.0

Total Capitalization
8,590.0

 
7,764.5

 
 
 
 
Current Liabilities
 
 
 
Long-term debt due currently
31.8

 
473.4

Short-term debt
496.7

 
657.9

Accounts payable
274.6

 
315.4

Other
286.3

 
274.4

Total Current Liabilities
1,089.4

 
1,721.1

 
 
 
 
Deferred Credits and Other Liabilities
 
 
 
Regulatory liabilities
918.0

 
883.8

Deferred income taxes - long-term
1,447.3

 
1,154.8

Deferred revenue, net
767.7

 
805.5

Pension and other benefit obligations
100.8

 
353.2

Other
336.3

 
376.9

Total Deferred Credits and Other Liabilities
3,570.1

 
3,574.2

 
 
 
 
Total Capitalization and Liabilities
$
13,249.5

 
$
13,059.8

 
 
 
 

4



WISCONSIN ENERGY CORPORATION
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited)
 
 
 
 
 
Nine Months Ended September 30
 
2011
 
2010
 
(Millions of Dollars)
Operating Activities
 
 
 
Net income
$
410.2

 
$
330.6

Reconciliation to cash
 
 
 
Depreciation and amortization
248.9

 
237.6

Contributions to qualified benefit plans
(257.4
)
 
—

Deferred income taxes and investment tax credits, net
215.9

 
(1.0
)
Working capital and other
210.0

 
86.5

Cash Provided by Operating Activities
827.6

 
653.7

 
 
 
 
Investing Activities
 
 
 
Capital expenditures
(612.2
)
 
(545.6
)
Proceeds from asset sales
38.5

 
63.8

Change in restricted cash
(37.2
)
 
131.8

Other investing activities, net
(39.4
)
 
(60.0
)
Cash Used in Investing Activities
(650.3
)
 
(410.0
)
 
 
 
 
Financing Activities
 
 
 
Common stock issued (repurchased), net
(100.7
)
 
(52.5
)
Dividends paid on common stock
(182.0
)
 
(140.3
)
Change in debt, net
94.1

 
(66.4
)
Other financing activities, net
1.9

 
6.5

Cash Used in Financing Activities
(186.7
)
 
(252.7
)
 
 
 
 
Change in Cash
(9.4
)
 
(9.0
)
 
 
 
 
Cash at Beginning of Period
24.5

 
20.2

 
 
 
 
Cash at End of Period
$
15.1

 
$
11.2

 
 
 
 


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