WIS'N ENER : Wisconsin Energy Posts Second Quarter and First Half 2011 Earnings
07/28/2011| 07:05am US/Eastern
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MILWAUKEE, July 28, 2011 /PRNewswire/ -- 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.
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.
Tables Follow
WISCONSIN ENERGY CORPORATION
CONSOLIDATED CONDENSED INCOME STATEMENTS
(Unaudited)
Three Months Ended
June 30
------------------
2011 2010
---- ----
(Millions of Dollars, Except Per Share
Amounts)
Operating Revenues $991.7 $890.9
Operating Expenses
Fuel and purchased power 286.0 258.4
Cost of gas sold 121.8 95.8
Other operation and maintenance 298.9 317.5
Depreciation and amortization 82.3 76.8
Property and revenue taxes 28.3 26.3
---- ----
Total Operating Expenses 817.3 774.8
Amortization of Gain - 47.2
--- ----
Operating Income 174.4 163.3
Equity in Earnings of
Transmission Affiliate 15.2 15.1
Other Income, net 14.4 9.7
Interest Expense, net 57.4 53.0
---- ----
Income from Continuing
Operations Before Income Taxes 146.6 135.1
Income Taxes 48.6 47.6
---- ----
Income from Continuing
Operations 98.0 87.5
Income from Discontinued
Operations, Net of Tax 11.5 1.2
---- ---
Net Income $109.5 $88.7
====== =====
Earnings Per Share (Basic)
Continuing operations $0.42 $0.37
Discontinued operations 0.05 0.01
Total Earnings Per Share (Basic) $0.47 $0.38
===== =====
Earnings Per Share (Diluted)
Continuing operations $0.41 $0.37
Discontinued operations 0.05 -
Total Earnings Per Share
(Diluted) $0.46 $0.37
===== =====
Weighted Average Common
Shares Outstanding (Millions)
Basic 233.7 233.8
Diluted 236.6 236.6
Dividends Per Share of Common
Stock $0.26 $0.20
Six Months Ended
June 30
----------------
2011 2010
---- ----
(Millions of Dollars, Except Per Share
Amounts)
Operating Revenues $2,320.4 $2,139.5
Operating Expenses
Fuel and purchased power 553.6 535.8
Cost of gas sold 464.2 451.6
Other operation and
maintenance 612.4 652.9
Depreciation and
amortization 163.6 151.2
Property and revenue taxes 56.6 52.9
---- ----
Total Operating Expenses 1,850.4 1,844.4
Amortization of Gain - 96.6
--- ----
Operating Income 470.0 391.7
Equity in Earnings of
Transmission Affiliate 30.7 30.3
Other Income, net 26.9 15.9
Interest Expense, net 120.8 102.4
----- -----
Income from Continuing
Operations Before Income
Taxes 406.8 335.5
Income Taxes 137.9 119.0
----- -----
Income from Continuing
Operations 268.9 216.5
Income from Discontinued
Operations, Net of Tax 11.5 1.9
Net Income $280.4 $218.4
====== ======
Earnings Per Share (Basic)
Continuing operations $1.15 $0.93
Discontinued operations 0.05 -
Total Earnings Per Share
(Basic) $1.20 $0.93
===== =====
Earnings Per Share
(Diluted)
Continuing operations $1.14 $0.91
Discontinued operations 0.05 0.01
Total Earnings Per Share
(Diluted) $1.19 $0.92
===== =====
Weighted Average Common
Shares Outstanding
(Millions)
Basic 233.7 233.8
Diluted 236.6 236.7
Dividends Per Share of
Common Stock $0.52 $0.40
WISCONSIN ENERGY CORPORATION
CONSOLIDATED CONDENSED BALANCE SHEETS
(Unaudited)
June 30, December 31,
2011 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
========= =========
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
===== =====
SOURCE Wisconsin Energy Corporation
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