WISCONSIN ENERGY CORP 
By MILWAUKEE, Feb. 6, 2014 /PRNewswire/ -- Wisconsin Energy (NYSE: WEC) today reported net income of $144.3 million or 63 cents a share for the fourth quarter of 2013. This compares with net income of $98.8 million or 43 cents a share for the fourth quarter of 2012.
Fourth quarter 2013 revenues were $1.18 billion, up from $1.07 billion recorded in the corresponding quarter a year ago. For the full year 2013, revenues rose to $4.52 billion from $4.25 billion in 2012.
Net income for the full year totaled $577.4 million or $2.51 a share -- compared to $546.3 million or $2.35 a share for 2012. Major factors contributing to the year's strong performance include colder winter temperatures, effective cost management, and the impact of share repurchases.
Residential use of electricity in 2013 was down by 2.1 percent -- the result of cooler summer weather. Consumption of electricity by small commercial and industrial customers was level with 2012.
Electricity deliveries to large commercial and industrial customers -- excluding the iron ore mines in Michigan's Upper Peninsula -- declined by 2.6 percent for the year but rose by 1.1 percent in the fourth quarter.
"After a sluggish start, energy demand from our large commercial and industrial customers strengthened during the latter part of the year," said Gale Klappa, chairman and chief executive. "As the year progressed, we saw strength in several sectors -- including paper manufacturing, chemical production, primary metals, and transportation equipment. In addition, customer growth continued during 2013."
At the end of December, the company was serving 2,600 more electric customers and 5,800 more natural gas customers than the previous year.
"2013 was an exceptional year for Wisconsin Energy," noted Klappa. "We achieved milestones in network reliability and customer satisfaction. We were named the most reliable utility in America. We completed a new biomass-fueled generating plant on time and on budget -- adding diversity to our portfolio of renewable energy projects. And we delivered another year of solid earnings growth while making 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 1:00 p.m. Central time on Feb. 6, 2014. The presentation will review 2013 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 10489174. Access also may be gained through the company's website (wisconsinenergy.com). Select 'Fourth Quarter, Year-End 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 fourth quarter and year-end performance. The materials will be available at 6:30 a.m. Central time on Feb. 6, 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 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. 20, 2014. Domestic callers should dial 855-859-2056. International callers should dial 404-537-3406. The replay conference ID is 10489174.
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 (wisconsinenergy.com), a component of the S&P 500, has over $14 billion of assets, 4,300 employees and approximately 40,000 stockholders of record.
Tables Follow
WISCONSIN ENERGY CORPORATION
CONSOLIDATED CONDENSED INCOME STATEMENTS
Three Months Ended Year Ended
December 31 December 31
----------- -----------
2013 2012 2013 2012
---- ---- ---- ----
(Millions of Dollars, Except Per
Share Amounts)
Operating
Revenues $1,178.3 $1,071.2 $4,519.0 $4,246.4
Operating
Expenses
Fuel and
purchased
power 266.8 249.7 1,153.0 1,098.6
Cost of
gas sold 227.2 177.8 674.1 545.8
Other
operation
and
maintenance 333.4 317.3 1,155.0 1,116.1
Depreciation
and
amortization 99.0 94.5 388.1 364.2
Property
and
revenue
taxes 28.3 30.5 116.7 121.4
---- ---- ----- -----
Total
Operating
Expenses 954.7 869.8 3,486.9 3,246.1
Treasury
Grant 48.0 - 48.0 -
---- --- ---- ---
Operating
Income 271.6 201.4 1,080.1 1,000.3
Equity in
Earnings
of
Transmission
Affiliate 17.5 16.8 68.5 65.7
Other
Income
and
Deductions,
net 3.5 1.2 18.8 34.8
Interest
Expense,
net 61.8 66.9 252.1 248.2
---- ---- ----- -----
Income
Before
Income
Taxes 230.8 152.5 915.3 852.6
Income Tax
Expense 86.5 53.7 337.9 306.3
Net Income $144.3 $98.8 $577.4 $546.3
====== ===== ====== ======
Earnings
Per Share
Basic $0.64 $0.43 $2.54 $2.37
Diluted $0.63 $0.43 $2.51 $2.35
Weighted
Average
Common
Shares
Outstanding
(Millions)
Basic 226.2 229.5 227.6 230.2
Diluted 228.2 231.9 229.7 232.8
Dividends
Per Share
of Common
Stock $0.3825 $0.30 $1.445 $1.20
WISCONSIN ENERGY CORPORATION
CONSOLIDATED CONDENSED BALANCE SHEETS
December 31
-----------
2013 2012
---- ----
(Millions of
Dollars)
Assets
------
Property, Plant and Equipment,
Net $10,906.6 $10,572.2
Investments
Equity investment in
transmission affiliate 402.7 378.3
Other 36.1 35.5
---- ----
Total Investments 438.8 413.8
Current Assets
Cash and cash equivalents 26.0 35.6
Accounts receivable, net 406.0 285.3
Accrued revenues 321.1 278.1
Materials, supplies and
inventories 329.4 360.7
Current deferred tax asset,
net 310.0 105.3
Prepayments 145.7 145.5
Other 12.9 62.1
---- ----
Total Current Assets 1,551.1 1,272.6
Deferred Charges and Other
Assets
Regulatory assets 1,108.5 1,380.3
Goodwill 441.9 441.9
Other 322.5 204.2
----- -----
Total Deferred Charges and
Other Assets 1,872.9 2,026.4
------- -------
Total Assets $14,769.4 $14,285.0
====== ======
Capitalization and Liabilities
------------------------------
Capitalization
Common equity $4,233.0 $4,135.1
Preferred stock of subsidiary 30.4 30.4
Long-term debt 4,363.2 4,453.8
------- -------
Total Capitalization 8,626.6 8,619.3
Current Liabilities
Long-term debt due currently 342.2 412.1
Short-term debt 537.4 394.6
Accounts payable 342.6 368.4
Accrued payroll and benefits 96.9 100.9
Other 177.3 165.4
----- -----
Total Current Liabilities 1,496.4 1,441.4
Deferred Credits and Other
Liabilities
Regulatory liabilities 879.1 868.4
Deferred income taxes - long-
term 2,634.0 2,117.0
Deferred revenue, net 664.2 709.7
Pension and other benefit
obligations 173.2 244.0
Other 295.9 285.2
----- -----
Total Deferred Credits and
Other Liabilities 4,646.4 4,224.3
------- -------
Total Capitalization and
Liabilities $14,769.4 $14,285.0
====== ======
WISCONSIN ENERGY CORPORATION
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
Year Ended
December 31
-----------
2013 2012
---- ----
(Millions of
Dollars)
Operating Activities
Net income $577.4 $546.3
Reconciliation to cash
Depreciation and
amortization 400.2 371.7
Contributions to qualified
benefit plans - (100.0)
Deferred income taxes and
investment tax credits,
net 312.7 293.2
Working capital and other (59.3) 62.7
----- ----
Cash Provided by Operating
Activities 1,231.0 1,173.9
Investing Activities
Capital expenditures (687.4) (707.0)
Investment in transmission
affiliate (10.5) (15.7)
Proceeds from asset sales 2.5 8.7
Change in restricted cash 2.7 42.8
Cost of removal, net of
salvage (37.8) (38.3)
Other, net (15.3) (20.1)
----- -----
Cash Used in Investing
Activities (745.8) (729.6)
Financing Activities
Common stock repurchased
under benefit plans, net (48.9) (51.6)
Common stock repurchased
under repurchase plan (126.0) (51.8)
Dividends paid on common
stock (328.9) (276.3)
Change in debt, net (3.4) (43.8)
Other, net 12.4 0.7
---- ---
Cash Used in Financing
Activities (494.8) (422.8)
------ ------
Change in Cash (9.6) 21.5
Cash at Beginning of Year 35.6 14.1
---- ----
Cash at End of Year $26.0 $35.6
===== =====
Wisconsin Energy Corporation
Normalized Retail Electric Sales (a)
Annual Annual (b)
------ ---------
2013 Actual 2013 2014
vs. 2012 Normalized Budget
Actual vs. 2012 vs. 2013
Normalized Normalized
----------
Residential (2.1)% (0.3)% 0.4%
Small
Commercial/
Industrial 0.0% (0.3)% 0.1%
Large
Commercial/
Industrial
(ex. Mines) (3.0)% (1.6)% (0.8)%
Total Large
Commercial/
Industrial (10.7)% (9.6)% (14.4)%
Total Retail
Sales (4.5)% (3.7)% (4.7)%
Retail
(Excluding
Mines) (1.6)% (0.7)% (0.1)%
(a) Normalized -20 year
average weather adjusted.
The twelve months has also
been adjusted for leap
year in 2012 which caused
a decline in normalized
sales of approximately
0.3% relative to 2012.
(b) Actual results may
differ materially from
these forecasts because of
seasonal, economic and
other factors.
SOURCE Wisconsin Energy
