The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Press release from PR Newswire

Wisconsin Energy posts fourth quarter and full-year results for 2012

Wednesday, January 30, 2013

Wisconsin Energy posts fourth quarter and full-year results for 201207:00 EST Wednesday, January 30, 2013MILWAUKEE, Jan. 30, 2013 /PRNewswire/ -- 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." 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 callA 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.ReplayA 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 (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.Tables FollowWISCONSIN ENERGY CORPORATIONCONSOLIDATED CONDENSED INCOME STATEMENTSThree Months Ended December 31Year Ended December 312012201120122011(Millions of Dollars, Except Per Share Amounts)Operating Revenues$1,071.2$1,113.2$4,246.4$4,486.4Operating ExpensesFuel and purchased power249.7265.21,098.61,169.7Cost of gas sold177.8195.3545.8728.7Other operation and maintenance317.3347.51,116.11,256.8Depreciation and amortization94.584.0364.2330.2Property and revenue taxes30.528.2121.4113.7Total Operating Expenses869.8920.23,246.13,599.1Operating Income201.4193.01,000.3887.3Equity in Earnings of Transmission Affiliate16.816.165.762.5Other Income and Deductions, net1.219.634.862.7Interest Expense, net66.958.2248.2235.8Income from Continuing Operations Before Income Taxes152.5170.5852.6776.7Income Tax Expense53.756.4306.3263.9Income from Continuing Operations98.8114.1546.3512.8Income from Discontinued Operations, Net of Tax?1.9?13.4Net Income$98.8$116.0$546.3$526.2Earnings Per Share (Basic)Continuing operations$0.43$0.49$2.37$2.20Discontinued operations?0.01?0.06Total Earnings Per Share (Basic)$0.43$0.50$2.37$2.26Earnings Per Share (Diluted)Continuing operations$0.43$0.49$2.35$2.18Discontinued operations?0.01?0.06Total Earnings Per Share (Diluted)$0.43$0.50$2.35$2.24Weighted Average Common Shares Outstanding (Millions)Basic229.5230.9230.2232.6Diluted231.9233.6232.8235.4Dividends Per Share of Common Stock$0.30$0.26$1.20$1.04 WISCONSIN ENERGY CORPORATIONCONSOLIDATED CONDENSED BALANCE SHEETSDecember 3120122011(Millions of Dollars)AssetsProperty, Plant and Equipment, Net$10,572.2$10,160.4InvestmentsEquity investment in transmission affiliate378.3349.7Other35.543.6Total Investments413.8393.3Current AssetsCash and cash equivalents35.614.1Restricted cash2.745.5Accounts receivable, net285.3349.4Income taxes receivable98.1155.1Accrued revenues278.1252.7Materials, supplies and inventories360.7382.0Prepayments145.5140.3Other107.987.1Total Current Assets1,313.91,426.2Deferred Charges and Other AssetsRegulatory assets1,339.01,238.7Goodwill441.9441.9Other204.2201.6Total Deferred Charges and Other Assets1,985.11,882.2Total Assets$14,285.0$13,862.1Capitalization and LiabilitiesCapitalizationCommon equity$4,135.1$3,963.3Preferred stock of subsidiary30.430.4Long-term debt4,453.84,614.3Total Capitalization8,619.38,608.0Current LiabilitiesLong-term debt due currently412.132.6Short-term debt394.6669.9Accounts payable368.4325.7Accrued payroll and benefits100.9105.9Other167.3230.4Total Current Liabilities1,443.31,364.5Deferred Credits and Other LiabilitiesRegulatory liabilities866.5902.0Deferred income taxes - long-term2,117.01,696.1Deferred revenue, net709.7754.5Pension and other benefit obligations244.0222.7Other285.2314.3Total Deferred Credits and Other Liabilities4,222.43,889.6Total Capitalization and Liabilities$14,285.0$13,862.1WISCONSIN ENERGY CORPORATIONCONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWSYear Ended December 3120122011(Millions of Dollars)Operating ActivitiesNet income$546.3$526.2Reconciliation to cashDepreciation and amortization371.7336.4Regulatory amortization in O&M60.0208.0Contributions to qualified benefit plans(100.0)(277.4)Deferred income taxes and investment tax credits, net352.2430.6Working capital and other(56.3)(230.4)Cash Provided by Operating Activities1,173.9993.4Investing ActivitiesCapital expenditures(707.0)(830.8)Investment in transmission affiliate(15.7)(6.6)Proceeds from asset sales8.741.5Change in restricted cash42.8(37.2)Other, net(58.4)(59.4)Cash Used in Investing Activities(729.6)(892.5)Financing ActivitiesCommon stock issued (repurchased), net(103.4)(139.5)Dividends paid on common stock(276.3)(242.0)Change in debt, net(43.8)265.4Other, net0.74.8Cash Used in Financing Activities(422.8)(111.3)Change in Cash21.5(10.4)Cash at Beginning of Year14.124.5Cash at End of Year$35.6$14.1 SOURCE Wisconsin Energy CorporationFor further information: Brian Manthey (news media), +1-414-221-4444, brian.manthey@we-energies.com, or Colleen F. Henderson, CFA (analysts), +1-414-221-2592, colleen.henderson@wisconsinenergy.com