Attached files
| file | filename |
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| 8-K - 2012 YEAR END EARNINGS RELEASE 8-K - WEC ENERGY GROUP, INC. | wec12312012earningsrelease.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
Jan. 30, 2013
Wisconsin Energy posts fourth quarter and full-year results for 2012
MILWAUKEE -- Wisconsin Energy (NYSE: WEC) today reported net income from continuing operations of $98.8 million or 43 cents a share for the fourth quarter of 2012. This compares with net income from continuing operations of $114.1 million or 49 cents a share for the fourth quarter of 2011.
Fourth quarter 2012 revenues were $1.07 billion, compared with $1.11 billion in the corresponding quarter a year ago. For the full year 2012, revenues were $4.25 billion, compared to $4.49 billion in 2011.
Net income from continuing operations for the full year totaled $546.3 million or $2.35 a share -- up from $512.8 million or $2.18 a share in 2011. Major factors contributing to the year's strong performance include lower operation and maintenance expenses, favorable summer weather, and positive recovery of fuel costs.
For the year, consumption of electricity by small commercial and industrial customers rose by 0.7 percent. Residential electricity use grew by 0.5 percent.
Compared to 2011, electricity use by large commercial and industrial customers dropped by 2.8 percent. The decline in this customer segment was driven primarily by a planned outage at a major iron ore mine. The mine returned to normal operation in September.
“Overall, sales to our large commercial and industrial customers came in better than forecast,” said Gale Klappa, chairman, president, and chief executive. “Based on customer input, we had expected a decline in sales. As the year progressed, however, we saw strength in several sectors -- including food products, chemical manufacturing, metal fabrication and plastics.”
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During the year, customer growth continued at a modest pace. At the end of December, the company was serving 3,200 more electric customers and 5,800 more natural gas customers than the previous year.
“By virtually every meaningful measure, 2012 was an exceptional year for Wisconsin Energy,” noted Klappa. “We achieved milestones in customer satisfaction, employee safety and network reliability. We delivered solid earnings growth and made significant progress toward a dividend payout that is more competitive with our peers.”
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 Jan. 30, 2013. The presentation will review 2012 fourth quarter and year-end 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 80336760. Access also may be gained through the company's website (wisconsinenergy.com). Click 'Fourth Quarter, Year-End 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 fourth quarter and year-end performance. The materials will be available at 6:30 a.m. Central time on Jan. 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 Feb. 13, 2013. Domestic callers should dial 855-859-2056. International callers should dial 404-537-3406. The replay conference ID is 80336760.
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 approximately 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 Corporation (www.wisconsinenergy.com), a component of the
S&P 500, has nearly $14 billion of assets, approximately 4,600 employees and more than 41,000 stockholders of record.
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Tables Follow
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WISCONSIN ENERGY CORPORATION | |||||||||||||||
CONSOLIDATED CONDENSED INCOME STATEMENTS | |||||||||||||||
Three Months Ended December 31 | Year Ended December 31 | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
(Millions of Dollars, Except Per Share Amounts) | |||||||||||||||
Operating Revenues | $ | 1,071.2 | $ | 1,113.2 | $ | 4,246.4 | $ | 4,486.4 | |||||||
Operating Expenses | |||||||||||||||
Fuel and purchased power | 249.7 | 265.2 | 1,098.6 | 1,169.7 | |||||||||||
Cost of gas sold | 177.8 | 195.3 | 545.8 | 728.7 | |||||||||||
Other operation and maintenance | 317.3 | 347.5 | 1,116.1 | 1,256.8 | |||||||||||
Depreciation and amortization | 94.5 | 84.0 | 364.2 | 330.2 | |||||||||||
Property and revenue taxes | 30.5 | 28.2 | 121.4 | 113.7 | |||||||||||
Total Operating Expenses | 869.8 | 920.2 | 3,246.1 | 3,599.1 | |||||||||||
Operating Income | 201.4 | 193.0 | 1,000.3 | 887.3 | |||||||||||
Equity in Earnings of Transmission Affiliate | 16.8 | 16.1 | 65.7 | 62.5 | |||||||||||
Other Income and Deductions, net | 1.2 | 19.6 | 34.8 | 62.7 | |||||||||||
Interest Expense, net | 66.9 | 58.2 | 248.2 | 235.8 | |||||||||||
Income from Continuing Operations Before Income Taxes | 152.5 | 170.5 | 852.6 | 776.7 | |||||||||||
Income Tax Expense | 53.7 | 56.4 | 306.3 | 263.9 | |||||||||||
Income from Continuing Operations | 98.8 | 114.1 | 546.3 | 512.8 | |||||||||||
Income from Discontinued Operations, Net of Tax | — | 1.9 | — | 13.4 | |||||||||||
Net Income | $ | 98.8 | $ | 116.0 | $ | 546.3 | $ | 526.2 | |||||||
Earnings Per Share (Basic) | |||||||||||||||
Continuing operations | $ | 0.43 | $ | 0.49 | $ | 2.37 | $ | 2.20 | |||||||
Discontinued operations | — | 0.01 | — | 0.06 | |||||||||||
Total Earnings Per Share (Basic) | $ | 0.43 | $ | 0.50 | $ | 2.37 | $ | 2.26 | |||||||
Earnings Per Share (Diluted) | |||||||||||||||
Continuing operations | $ | 0.43 | $ | 0.49 | $ | 2.35 | $ | 2.18 | |||||||
Discontinued operations | — | 0.01 | — | 0.06 | |||||||||||
Total Earnings Per Share (Diluted) | $ | 0.43 | $ | 0.50 | $ | 2.35 | $ | 2.24 | |||||||
Weighted Average Common Shares Outstanding (Millions) | |||||||||||||||
Basic | 229.5 | 230.9 | 230.2 | 232.6 | |||||||||||
Diluted | 231.9 | 233.6 | 232.8 | 235.4 | |||||||||||
Dividends Per Share of Common Stock | $ | 0.30 | $ | 0.26 | $ | 1.20 | $ | 1.04 | |||||||
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WISCONSIN ENERGY CORPORATION | |||||||
CONSOLIDATED CONDENSED BALANCE SHEETS | |||||||
December 31 | |||||||
2012 | 2011 | ||||||
(Millions of Dollars) | |||||||
Assets | |||||||
Property, Plant and Equipment, Net | $ | 10,572.2 | $ | 10,160.4 | |||
Investments | |||||||
Equity investment in transmission affiliate | 378.3 | 349.7 | |||||
Other | 35.5 | 43.6 | |||||
Total Investments | 413.8 | 393.3 | |||||
Current Assets | |||||||
Cash and cash equivalents | 35.6 | 14.1 | |||||
Restricted cash | 2.7 | 45.5 | |||||
Accounts receivable, net | 285.3 | 349.4 | |||||
Income taxes receivable | 98.1 | 155.1 | |||||
Accrued revenues | 278.1 | 252.7 | |||||
Materials, supplies and inventories | 360.7 | 382.0 | |||||
Prepayments | 145.5 | 140.3 | |||||
Other | 107.9 | 87.1 | |||||
Total Current Assets | 1,313.9 | 1,426.2 | |||||
Deferred Charges and Other Assets | |||||||
Regulatory assets | 1,339.0 | 1,238.7 | |||||
Goodwill | 441.9 | 441.9 | |||||
Other | 204.2 | 201.6 | |||||
Total Deferred Charges and Other Assets | 1,985.1 | 1,882.2 | |||||
Total Assets | $ | 14,285.0 | $ | 13,862.1 | |||
Capitalization and Liabilities | |||||||
Capitalization | |||||||
Common equity | $ | 4,135.1 | $ | 3,963.3 | |||
Preferred stock of subsidiary | 30.4 | 30.4 | |||||
Long-term debt | 4,453.8 | 4,614.3 | |||||
Total Capitalization | 8,619.3 | 8,608.0 | |||||
Current Liabilities | |||||||
Long-term debt due currently | 412.1 | 32.6 | |||||
Short-term debt | 394.6 | 669.9 | |||||
Accounts payable | 368.4 | 325.7 | |||||
Accrued payroll and benefits | 100.9 | 105.9 | |||||
Other | 167.3 | 230.4 | |||||
Total Current Liabilities | 1,443.3 | 1,364.5 | |||||
Deferred Credits and Other Liabilities | |||||||
Regulatory liabilities | 866.5 | 902.0 | |||||
Deferred income taxes - long-term | 2,117.0 | 1,696.1 | |||||
Deferred revenue, net | 709.7 | 754.5 | |||||
Pension and other benefit obligations | 244.0 | 222.7 | |||||
Other | 285.2 | 314.3 | |||||
Total Deferred Credits and Other Liabilities | 4,222.4 | 3,889.6 | |||||
Total Capitalization and Liabilities | $ | 14,285.0 | $ | 13,862.1 | |||
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WISCONSIN ENERGY CORPORATION | |||||||
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS | |||||||
Year Ended December 31 | |||||||
2012 | 2011 | ||||||
(Millions of Dollars) | |||||||
Operating Activities | |||||||
Net income | $ | 546.3 | $ | 526.2 | |||
Reconciliation to cash | |||||||
Depreciation and amortization | 371.7 | 336.4 | |||||
Regulatory amortization in O&M | 60.0 | 208.0 | |||||
Contributions to qualified benefit plans | (100.0 | ) | (277.4 | ) | |||
Deferred income taxes and investment tax credits, net | 352.2 | 430.6 | |||||
Working capital and other | (56.3 | ) | (230.4 | ) | |||
Cash Provided by Operating Activities | 1,173.9 | 993.4 | |||||
Investing Activities | |||||||
Capital expenditures | (707.0 | ) | (830.8 | ) | |||
Investment in transmission affiliate | (15.7 | ) | (6.6 | ) | |||
Proceeds from asset sales | 8.7 | 41.5 | |||||
Change in restricted cash | 42.8 | (37.2 | ) | ||||
Other, net | (58.4 | ) | (59.4 | ) | |||
Cash Used in Investing Activities | (729.6 | ) | (892.5 | ) | |||
Financing Activities | |||||||
Common stock issued (repurchased), net | (103.4 | ) | (139.5 | ) | |||
Dividends paid on common stock | (276.3 | ) | (242.0 | ) | |||
Change in debt, net | (43.8 | ) | 265.4 | ||||
Other, net | 0.7 | 4.8 | |||||
Cash Used in Financing Activities | (422.8 | ) | (111.3 | ) | |||
Change in Cash | 21.5 | (10.4 | ) | ||||
Cash at Beginning of Year | 14.1 | 24.5 | |||||
Cash at End of Year | $ | 35.6 | $ | 14.1 | |||
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