WISCONSIN ENERGY CORP 
By MILWAUKEE, 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 call
A 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.
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. 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 Follow
WISCONSIN ENERGY CORPORATION
CONSOLIDATED CONDENSED INCOME STATEMENTS
Three Months Ended December 31 Year Ended December 31
------------------------------ ----------------------
2012 2011 2012 2011
---- ---- ---- ----
(Millions of Dollars, Except Per Share Amounts)
Operating Revenues $1,071.2 $1,113.2 $4,246.4 $4,486.4
Operating Expenses
Fuel and purchased power 249.7 265.2 1,098.6 1,169.7
Cost of gas sold 177.8 195.3 545.8 728.7
Other operation and
maintenance 317.3 347.5 1,116.1 1,256.8
Depreciation and
amortization 94.5 84.0 364.2 330.2
Property and revenue
taxes 30.5 28.2 121.4 113.7
---- ---- ----- -----
Total Operating Expenses 869.8 920.2 3,246.1 3,599.1
Operating Income 201.4 193.0 1,000.3 887.3
Equity in Earnings of
Transmission Affiliate 16.8 16.1 65.7 62.5
Other Income and
Deductions, net 1.2 19.6 34.8 62.7
Interest Expense, net 66.9 58.2 248.2 235.8
---- ---- ----- -----
Income from Continuing
Operations Before Income
Taxes 152.5 170.5 852.6 776.7
Income Tax Expense 53.7 56.4 306.3 263.9
---- ---- ----- -----
Income from Continuing
Operations 98.8 114.1 546.3 512.8
Income from Discontinued
Operations, Net of Tax - 1.9 - 13.4
Net Income $98.8 $116.0 $546.3 $526.2
===== ====== ====== ======
Earnings Per Share
(Basic)
Continuing operations $0.43 $0.49 $2.37 $2.20
Discontinued operations - 0.01 - 0.06
Total Earnings Per Share
(Basic) $0.43 $0.50 $2.37 $2.26
===== ===== ===== =====
Earnings Per Share
(Diluted)
Continuing operations $0.43 $0.49 $2.35 $2.18
Discontinued operations - 0.01 - 0.06
Total Earnings Per Share
(Diluted) $0.43 $0.50 $2.35 $2.24
===== ===== ===== =====
Weighted Average Common
Shares Outstanding
(Millions)
Basic 229.5 230.9 230.2 232.6
Diluted 231.9 233.6 232.8 235.4
Dividends Per Share of
Common Stock $0.30 $0.26 $1.20 $1.04
WISCONSIN ENERGY CORPORATION
CONSOLIDATED CONDENSED BALANCE SHEETS
December 31
-----------
2012 2011
---- ----
(Millions of Dollars)
Assets
------
Property, Plant and
Equipment, Net $10,572.2 $10,160.4
Investments
Equity investment
in transmission
affiliate 378.3 349.7
Other 35.5 43.6
---- ----
Total Investments 413.8 393.3
Current Assets
Cash and cash
equivalents 35.6 14.1
Restricted cash 2.7 45.5
Accounts
receivable, net 285.3 349.4
Income taxes
receivable 98.1 155.1
Accrued revenues 278.1 252.7
Materials, supplies
and inventories 360.7 382.0
Prepayments 145.5 140.3
Other 107.9 87.1
----- ----
Total Current
Assets 1,313.9 1,426.2
Deferred Charges
and Other Assets
Regulatory assets 1,339.0 1,238.7
Goodwill 441.9 441.9
Other 204.2 201.6
----- -----
Total Deferred
Charges and Other
Assets 1,985.1 1,882.2
------- -------
Total Assets $14,285.0 $13,862.1
========= =========
Capitalization and
Liabilities
------------------
Capitalization
Common equity $4,135.1 $3,963.3
Preferred stock of
subsidiary 30.4 30.4
Long-term debt 4,453.8 4,614.3
------- -------
Total
Capitalization 8,619.3 8,608.0
Current Liabilities
Long-term debt due
currently 412.1 32.6
Short-term debt 394.6 669.9
Accounts payable 368.4 325.7
Accrued payroll and
benefits 100.9 105.9
Other 167.3 230.4
----- -----
Total Current
Liabilities 1,443.3 1,364.5
Deferred Credits
and Other
Liabilities
Regulatory
liabilities 866.5 902.0
Deferred income
taxes - long-
term 2,117.0 1,696.1
Deferred revenue,
net 709.7 754.5
Pension and other
benefit
obligations 244.0 222.7
Other 285.2 314.3
----- -----
Total Deferred
Credits and Other
Liabilities 4,222.4 3,889.6
------- -------
Total
Capitalization and
Liabilities $14,285.0 $13,862.1
========= =========
WISCONSIN ENERGY CORPORATION
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
Year Ended December 31
----------------------
2012 2011
---- ----
(Millions of Dollars)
Operating Activities
Net income $546.3 $526.2
Reconciliation to cash
Depreciation and
amortization 371.7 336.4
Regulatory
amortization in O&M 60.0 208.0
Contributions to
qualified benefit
plans (100.0) (277.4)
Deferred income taxes
and investment tax
credits, net 352.2 430.6
Working capital and
other (56.3) (230.4)
----- ------
Cash Provided by
Operating Activities 1,173.9 993.4
Investing Activities
Capital expenditures (707.0) (830.8)
Investment in
transmission
affiliate (15.7) (6.6)
Proceeds from asset
sales 8.7 41.5
Change in restricted
cash 42.8 (37.2)
Other, net (58.4) (59.4)
----- -----
Cash Used in Investing
Activities (729.6) (892.5)
Financing Activities
Common stock issued
(repurchased), net (103.4) (139.5)
Dividends paid on
common stock (276.3) (242.0)
Change in debt, net (43.8) 265.4
Other, net 0.7 4.8
--- ---
Cash Used in Financing
Activities (422.8) (111.3)
------ ------
Change in Cash 21.5 (10.4)
Cash at Beginning of
Year 14.1 24.5
---- ----
Cash at End of Year $35.6 $14.1
===== =====
SOURCE Wisconsin Energy Corporation
