Attached files
| file | filename |
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| 8-K - WEC Q2 2013 EARNINGS 8-K - WEC ENERGY GROUP, INC. | wecq22013earningsrelease8k.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 31, 2013
Wisconsin Energy posts 2013 second quarter and first half results
MILWAUKEE - Wisconsin Energy (NYSE: WEC) today reported net income from continuing operations of $119.0 million or 52 cents a share for the second quarter of 2013. This compares with net income from continuing operations of $119.3 million or 51 cents a share for the second quarter of 2012.
Second quarter 2013 revenues were $1.01 billion. Revenues totaled $944.7 million in the same quarter last year.
For the first six months of 2013, the company recorded net income from continuing operations of $295.6 million or $1.28 a share -- up from $291.4 million or $1.25 a share in the corresponding period a year ago.
“Strong natural gas sales during a cooler than normal spring and the impact of the company's share repurchase program were positive factors contributing to our solid results for this year's second quarter,” said Gale Klappa, chairman, president and chief executive officer. “A cool June, however, significantly reduced demand for air conditioning across the region,” Klappa added. By comparison, June temperatures last year were much warmer than normal.”
Residential use of electricity dropped by 6.9 percent from last year's second quarter. Consumption of electricity by small commercial and industrial customers was down by 1.4 percent. Electricity use by large commercial and industrial customers -- excluding the iron ore mines in Michigan's Upper Peninsula -- was 4.1 percent lower.
On a weather normalized basis, retail consumption of electricity - excluding the iron ore mines - was down by 0.4 percent.
At the end of June, the company was serving approximately 3,900 more electric customers and 6,800 more natural gas customers than a year ago.
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“From network reliability to customer satisfaction to financial performance, the company continues to perform at a high level,” said Klappa. “With the first half of 2013 now in the books, we're pleased with our progress.”
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 July 31, 2013. The presentation will review 2013 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 80350110. Access also may be gained through the company's website (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
6:30 a.m. Central time on July 31, 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 Aug. 14, 2013. Domestic callers should dial 855-859-2056. International callers should dial 404-537-3406. The replay conference ID is 80350110.
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.
Tables Follow
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WISCONSIN ENERGY CORPORATION | |||||||||||||||
CONSOLIDATED CONDENSED INCOME STATEMENTS | |||||||||||||||
(Unaudited) | |||||||||||||||
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
(Millions of Dollars, Except Per Share Amounts) | |||||||||||||||
Operating Revenues | $ | 1,012.3 | $ | 944.7 | $ | 2,287.5 | $ | 2,135.9 | |||||||
Operating Expenses | |||||||||||||||
Fuel and purchased power | 276.1 | 258.7 | 547.1 | 512.5 | |||||||||||
Cost of gas sold | 115.2 | 75.0 | 385.3 | 312.5 | |||||||||||
Other operation and maintenance | 265.4 | 267.9 | 553.5 | 554.2 | |||||||||||
Depreciation and amortization | 96.7 | 90.3 | 192.2 | 177.9 | |||||||||||
Property and revenue taxes | 29.4 | 30.2 | 58.9 | 60.5 | |||||||||||
Total Operating Expenses | 782.8 | 722.1 | 1,737.0 | 1,617.6 | |||||||||||
Operating Income | 229.5 | 222.6 | 550.5 | 518.3 | |||||||||||
Equity in Earnings of Transmission Affiliate | 17.3 | 16.2 | 33.9 | 31.8 | |||||||||||
Other Income, net | 5.8 | 8.6 | 10.2 | 24.6 | |||||||||||
Interest Expense, net | 63.3 | 61.5 | 128.3 | 120.4 | |||||||||||
Income Before Income Taxes | 189.3 | 185.9 | 466.3 | 454.3 | |||||||||||
Income Tax Expense | 70.3 | 66.6 | 170.7 | 162.9 | |||||||||||
Net Income | $ | 119.0 | $ | 119.3 | $ | 295.6 | $ | 291.4 | |||||||
Earnings Per Share | |||||||||||||||
Basic | $ | 0.52 | $ | 0.52 | $ | 1.29 | $ | 1.26 | |||||||
Diluted | $ | 0.52 | $ | 0.51 | $ | 1.28 | $ | 1.25 | |||||||
Weighted Average Common Shares Outstanding (Millions) | |||||||||||||||
Basic | 228.4 | 230.4 | 228.6 | 230.5 | |||||||||||
Diluted | 230.5 | 233.1 | 230.8 | 233.1 | |||||||||||
Dividends Per Share of Common Stock | $ | 0.34 | $ | 0.30 | $ | 0.68 | $ | 0.60 | |||||||
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WISCONSIN ENERGY CORPORATION | |||||||
CONSOLIDATED CONDENSED BALANCE SHEETS | |||||||
(Unaudited) | |||||||
June 30, 2013 | December 31, 2012 | ||||||
(Millions of Dollars) | |||||||
Assets | |||||||
Property, Plant and Equipment, Net | $ | 10,704.5 | $ | 10,572.2 | |||
Investments | |||||||
Equity investment in transmission affiliate | 390.6 | 378.3 | |||||
Other | 38.2 | 35.5 | |||||
Total Investments | 428.8 | 413.8 | |||||
Current Assets | |||||||
Cash and cash equivalents | 21.0 | 35.6 | |||||
Accounts receivable, net | 327.3 | 285.3 | |||||
Accrued revenues | 174.4 | 278.1 | |||||
Materials, supplies and inventories | 317.9 | 360.7 | |||||
Prepayments and other | 430.5 | 354.2 | |||||
Total Current Assets | 1,271.1 | 1,313.9 | |||||
Deferred Charges and Other Assets | |||||||
Regulatory assets | 1,285.6 | 1,339.0 | |||||
Goodwill | 441.9 | 441.9 | |||||
Other | 185.1 | 204.2 | |||||
Total Deferred Charges and Other Assets | 1,912.6 | 1,985.1 | |||||
Total Assets | $ | 14,317.0 | $ | 14,285.0 | |||
Capitalization and Liabilities | |||||||
Capitalization | |||||||
Common equity | $ | 4,195.4 | $ | 4,135.1 | |||
Preferred stock of subsidiary | 30.4 | 30.4 | |||||
Long-term debt | 4,383.2 | 4,453.8 | |||||
Total Capitalization | 8,609.0 | 8,619.3 | |||||
Current Liabilities | |||||||
Long-term debt due currently | 414.6 | 412.1 | |||||
Short-term debt | 335.9 | 394.6 | |||||
Accounts payable | 276.4 | 368.4 | |||||
Accrued payroll and benefits | 75.5 | 100.9 | |||||
Other | 178.3 | 167.3 | |||||
Total Current Liabilities | 1,280.7 | 1,443.3 | |||||
Deferred Credits and Other Liabilities | |||||||
Regulatory liabilities | 854.1 | 866.5 | |||||
Deferred income taxes - long-term | 2,369.7 | 2,117.0 | |||||
Deferred revenue, net | 689.6 | 709.7 | |||||
Pension and other benefit obligations | 225.2 | 244.0 | |||||
Other | 288.7 | 285.2 | |||||
Total Deferred Credits and Other Liabilities | 4,427.3 | 4,222.4 | |||||
Total Capitalization and Liabilities | $ | 14,317.0 | $ | 14,285.0 | |||
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WISCONSIN ENERGY CORPORATION | |||||||
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS | |||||||
(Unaudited) | |||||||
Six Months Ended June 30 | |||||||
2013 | 2012 | ||||||
(Millions of Dollars) | |||||||
Operating Activities | |||||||
Net income | $ | 295.6 | $ | 291.4 | |||
Reconciliation to cash | |||||||
Depreciation and amortization | 197.7 | 183.8 | |||||
Deferred income taxes and investment tax credits, net | 143.1 | 141.2 | |||||
Working capital and other | 45.1 | (7.7 | ) | ||||
Cash Provided by Operating Activities | 681.5 | 608.7 | |||||
Investing Activities | |||||||
Capital expenditures | (307.3 | ) | (314.0 | ) | |||
Investment in transmission affiliate | (5.2 | ) | (6.6 | ) | |||
Change in restricted cash | 2.7 | 27.6 | |||||
Other, net | (26.8 | ) | (19.6 | ) | |||
Cash Used in Investing Activities | (336.6 | ) | (312.6 | ) | |||
Financing Activities | |||||||
Common stock issued (repurchased), net | (95.0 | ) | (38.4 | ) | |||
Dividends paid on common stock | (155.6 | ) | (138.3 | ) | |||
Change in debt, net | (119.2 | ) | (120.4 | ) | |||
Other, net | 10.3 | — | |||||
Cash Used in Financing Activities | (359.5 | ) | (297.1 | ) | |||
Change in Cash | (14.6 | ) | (1.0 | ) | |||
Cash at Beginning of Period | 35.6 | 14.1 | |||||
Cash at End of Period | $ | 21.0 | $ | 13.1 | |||
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Wisconsin Energy Corporation | ||||||||
Normalized Retail Electric Sales (a) | ||||||||
Second Quarter | ||||||||
2013 Actual vs. 2012 Actual | 2013 Normalized vs. 2012 Normalized | |||||||
Residential | (6.9 | )% | (0.9 | )% | ||||
Small Commercial/Industrial | (1.4 | )% | 1.7 | % | ||||
Large Commercial/Industrial (ex. Mines) | (4.1 | )% | (2.1 | )% | ||||
Total Large Commercial/Industrial | (8.2 | )% | (6.7 | )% | ||||
Total Retail Sales | (5.5 | )% | (2.2 | )% | ||||
Retail (Excluding Mines) | (4.0 | )% | (0.4 | )% | ||||
Six Month | Annual (b) | |||||||
2013 Actual vs. 2012 Actual | 2013 Normalized vs. 2012 Normalized | 2013 Budget vs. 2012 Normalized | ||||||
Residential | (0.9 | )% | (0.3 | )% | 0.1 | % | ||
Small Commercial/Industrial | (0.1 | )% | 0.4 | % | 0.3 | % | ||
Large Commercial/Industrial (ex. Mines) | (3.8 | )% | (1.4 | )% | 0.2 | % | ||
Total Large Commercial/Industrial | (6.1 | )% | (4.1 | )% | (2.4 | )% | ||
Total Retail Sales | (2.5 | )% | (1.5 | )% | (0.7 | )% | ||
Retail (Excluding Mines) | (1.5 | )% | (0.4 | )% | 0.2 | % | ||
(a) Normalized - 20 year average weather adjusted. The six months has also been adjusted for leap year in 2012 which caused a decline in normalized sales of approximately 0.5% relative to 2012. | ||||||||
(b) Actual results may differ materially from these forecasts because of seasonal, economic and other factors. | ||||||||
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