MILWAUKEE, Oct. 29, 2014 /PRNewswire/ -- Wisconsin Energy (NYSE: WEC) today reported net income of $126.3 million or 56 cents a share for the third quarter of 2014. This compares with net income of $137.5 million or 60 cents a share for the third quarter of 2013.

Costs related to the acquisition of Integrys Energy reduced earnings by one cent per share in this year's third quarter. Excluding the effect of this item, adjusted earnings in the third quarter of 2014 were 57 cents per share.

Third quarter 2014 revenues totaled $1.03 billion. Revenues were $1.05 billion in the same quarter last year.

For the first nine months of 2014, the company recorded net income of $466.9 million or $2.05 a share - up from $433.1 million or $1.88 a share in the corresponding period a year ago. Costs related to the acquisition of Integrys Energy reduced year to date earnings by three cents per share.

"Despite a very cool summer -- with the high temperature in Milwaukee never reaching 90 degrees -- we delivered solid results," said Gale Klappa, chairman and chief executive. "Our focus on financial discipline and industry leading reliability continued to serve us well," Klappa added. "We also saw signs of a slightly stronger economy across the region as Wisconsin's unemployment rate dipped to 5.5 percent."

Residential use of electricity dropped by 7.9 percent from last year's third 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 0.1 percent higher.

On a weather-normal basis, retail consumption of electricity rose by 1.8 percent.

At the end of September 2014, the company was serving approximately 4,400 more electric customers and nearly 6,700 more natural gas customers than a year ago.

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 Oct. 29, 2014. The presentation will review 2014 third 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 16970782. Access also may be gained through the company's website (wisconsinenergy.com). Select 'Third Quarter Earnings Release and Conference Call' and then select '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 and nine month performance. The materials will be available at 6:30 a.m. Central time on Oct. 29, 2014.

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 by 5:00 p.m. Central time on Oct. 29, 2014. Access to a phone replay also will be available after the presentation and remain accessible through Nov. 12, 2014. Domestic callers should dial 855-859-2056. International callers should dial 404-537-3406. The replay conference ID is 16970782.

Non-GAAP Earnings Measures
Adjusted earnings (non-GAAP earnings), which generally exclude nonoperational items that are not associated with the company's ongoing operations, are provided as a complement to, and should not be considered as an alternative to, reported earnings presented in accordance with GAAP. The excluded items are not indicative of the company's operating performance. Therefore, we believe that the presentation of adjusted earnings is relevant and useful to investors to understand Wisconsin Energy's operating performance. Management uses such measures internally to evaluate the company's performance and manage its operations.

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 nearly $15 billion of assets, 4,300 employees and approximately 40,000 stockholders of record.

Tables follow




                                                WISCONSIN ENERGY CORPORATION

                                          CONSOLIDATED CONDENSED INCOME STATEMENTS

                                                        (Unaudited)


                                      Three Months Ended                       Nine Months Ended
                                         September 30                             September 30
                                         ------------                             ------------

                                    2014                   2013                     2014            2013
                                    ----                   ----                     ----            ----

                                    (Millions of Dollars, Except Per Share Amounts)


    Operating Revenues                      $1,033.3                           $1,053.2                  $3,772.0 $3,340.7


    Operating Expenses

    Fuel and purchased power       336.8                  339.1                    947.9           886.2

    Cost of gas sold                70.6                   61.6                    788.0           446.9

    Other operation and
     maintenance                   249.4                  268.1                    780.8           821.6

    Depreciation and
     amortization                  103.3                   96.9                    305.3           289.1

    Property and revenue
     taxes                          30.6                   29.5                     91.5            88.4
                                    ----                   ----                     ----            ----

    Total Operating Expenses       790.7                  795.2                  2,913.5         2,532.2


    Treasury Grant                   3.5                      -                    10.1               -
                                     ---                    ---                    ----             ---


    Operating Income               246.1                  258.0                    868.6           808.5


    Equity in Earnings of
     Transmission Affiliate         18.0                   17.1                     52.8            51.0

    Other Income, net                2.9                    5.1                     12.1            15.3

    Interest Expense, net           60.4                   62.0                    181.7           190.3
                                    ----                   ----                    -----           -----


    Income Before Income
     Taxes                         206.6                  218.2                    751.8           684.5


    Income Tax Expense              80.3                   80.7                    284.9           251.4


    Net Income                                $126.3                             $137.5                    $466.9   $433.1
                                              ======                             ======                    ======   ======


    Earnings Per Share

    Basic                                      $0.56                              $0.61                     $2.07    $1.90

    Diluted                                    $0.56                              $0.60                     $2.05    $1.88


    Weighted Average Common Shares
     Outstanding (Millions)

    Basic                          225.5                  226.8                    225.6           228.0

    Diluted                        227.4                  228.8                    227.6           230.2


    Dividends Per Share of
     Common Stock                              $0.39                            $0.3825                     $1.17  $1.0625

                                      WISCONSIN ENERGY CORPORATION

                                  CONSOLIDATED CONDENSED BALANCE SHEETS

                                               (Unaudited)


                                                       September 30,                 December 31,
                                                            2014                           2013
                                                      --------------                 -------------

                                                               (Millions of Dollars)

                                Assets
                                ------


    Property, Plant and Equipment,
     Net                                                                $11,134.9                  $10,906.6


    Investments

    Equity investment in
     transmission affiliate                                    423.3                         402.7

    Other                                                       32.6                          36.1
                                                                ----                          ----

    Total Investments                                          455.9                         438.8


    Current Assets

    Cash and cash equivalents                                   88.7                          26.0

    Accounts receivable, net                                   339.0                         406.0

    Accrued revenues                                           159.1                         321.1

    Materials, supplies and
     inventories                                               379.3                         329.4

    Current deferred tax asset, net                            165.5                         310.0

    Prepayments and other                                      142.9                         158.6
                                                               -----                         -----

    Total Current Assets                                     1,274.5                       1,551.1


    Deferred Charges and Other Assets

    Regulatory assets                                        1,096.7                       1,108.5

    Goodwill                                                   441.9                         441.9

    Other                                                      321.0                         322.5
                                                               -----                         -----

    Total Deferred Charges and
     Other Assets                                            1,859.6                       1,872.9

    Total Assets                                                        $14,724.9                  $14,769.4
                                                                        =========                  =========


                    Capitalization and Liabilities
                    ------------------------------


    Capitalization

    Common equity                                                        $4,398.3                   $4,233.0

    Preferred stock of subsidiary                               30.4                          30.4

    Long-term debt                                           4,569.6                       4,363.2
                                                             -------                       -------

    Total Capitalization                                     8,998.3                       8,626.6


    Current Liabilities

    Long-term debt due currently                                47.7                         342.2

    Short-term debt                                            475.8                         537.4

    Accounts payable                                           315.0                         342.6

    Accrued payroll and benefits                                71.4                          96.9

    Other                                                      155.7                         177.3
                                                               -----                         -----

    Total Current Liabilities                                1,065.6                       1,496.4


    Deferred Credits and Other Liabilities

    Regulatory liabilities                                     839.0                         879.1

    Deferred income taxes - long-
     term                                                    2,752.7                       2,634.0

    Deferred revenue, net                                      627.2                         664.2

    Pension and other benefit
     obligations                                               168.9                         173.2

    Other                                                      273.2                         295.9
                                                               -----                         -----

    Total Deferred Credits and
     Other Liabilities                                       4,661.0                       4,646.4

    Total Capitalization and
     Liabilities                                                        $14,724.9                  $14,769.4
                                                                        =========                  =========


                                    WISCONSIN ENERGY CORPORATION

                           CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS

                                             (Unaudited)


                                                         Nine Months Ended September
                                                                    30
                                                      ----------------------------

                                                           2014                    2013
                                                           ----                    ----

                                                         (Millions of Dollars)

    Operating Activities

    Net income                                                      $466.9              $433.1

    Reconciliation to cash

    Depreciation and
     amortization                                         312.9                   297.6

    Deferred income taxes
     and investment tax
     credits, net                                         258.5                   219.8

    Working capital and
     other                                                (3.7)                   99.8
                                                           ----                    ----

    Cash Provided by
     Operating Activities                               1,034.6                 1,050.3


    Investing Activities

    Capital expenditures                                (513.0)                (497.7)

    Cost of removal, net of
     salvage                                             (18.2)                 (27.8)

    Investment in
     transmission affiliate                              (10.5)                  (7.9)

    Other, net                                             12.8                  (11.4)
                                                           ----                   -----

    Cash Used in Investing
     Activities                                         (528.9)                (544.8)


    Financing Activities

    Common stock repurchased
     under benefit plans,
     net                                                 (33.9)                 (42.2)

    Common stock repurchased
     under repurchase plan                               (18.6)                (103.0)

    Dividends paid on common
     stock                                              (264.0)                (242.3)

    Change in debt, net                                 (133.6)                (146.0)

    Other, net                                              7.1                    10.9
                                                            ---                    ----

    Cash Used in Financing
     Activities                                         (443.0)                (522.6)
                                                         ------                  ------


    Change in Cash                                         62.7                  (17.1)


    Cash at Beginning of
     Period                                                26.0                    35.6


    Cash at End of Period                                            $88.7               $18.5
                                                                     =====               =====


SOURCE Wisconsin Energy Corporation