0000107815-11-000076.txt : 20110728 0000107815-11-000076.hdr.sgml : 20110728 20110728074236 ACCESSION NUMBER: 0000107815-11-000076 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20110728 ITEM INFORMATION: Results of Operations and Financial Condition FILED AS OF DATE: 20110728 DATE AS OF CHANGE: 20110728 FILER: COMPANY DATA: COMPANY CONFORMED NAME: WISCONSIN ENERGY CORP CENTRAL INDEX KEY: 0000783325 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC & OTHER SERVICES COMBINED [4931] IRS NUMBER: 391391525 STATE OF INCORPORATION: WI FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-09057 FILM NUMBER: 11991744 BUSINESS ADDRESS: STREET 1: 231 W MICHIGAN ST STREET 2: P O BOX 1331 CITY: MILWAUKEE STATE: WI ZIP: 53201 BUSINESS PHONE: 414-221-2345 MAIL ADDRESS: STREET 1: 231 WEST MICHIGAN STREET STREET 2: P O BOX 1331 CITY: MILWAUKEE STATE: WI ZIP: 53201 8-K 1 wecq22011earningsrelease8k.htm WEC Q2 2011 EARNINGS 8-K WEC Q2 2011 Earnings Release 8K



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of report (Date of earliest event reported):

July 28, 2011
 
 
 


Commission
Registrant; State of Incorporation
IRS Employer
File Number
Address; and Telephone Number
Identification No.
                         
                                                             
                
 
 
 
001-09057
       WISCONSIN ENERGY CORPORATION
39-1391525
 
                   (A Wisconsin Corporation)
 
 
                   231 West Michigan Street
 
 
                   P.O. Box 1331
 
 
                   Milwaukee, WI 53201
 
 
                   (414) 221-2345
 
 
 
 
 
The name and address of the registrant has not changed since the last report.


Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))





WISCONSIN ENERGY CORPORATION           
 
 
 



ITEM 2.02  RESULTS OF OPERATIONS AND FINANCIAL CONDITION.

On Thursday, July 28, 2011, Wisconsin Energy Corporation issued a press release announcing its financial results for the quarter and six months ended June 30, 2011. A copy of the press release is being furnished to the Securities and Exchange Commission as Exhibit 99 attached hereto and incorporated herein by reference.








SIGNATURES
 
 
 
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has
duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 
 
 
 
 
 
WISCONSIN ENERGY CORPORATION
 
(Registrant)
 
 
 
/s/ STEPHEN P. DICKSON                                      
Date: July 28, 2011
Stephen P. Dickson -- Vice President and
 
Controller
 
 
 
 
 
 







 EX-99 2 wecq22011earningsexhibit99.htm WEC Q2 2011 EARNINGS EXHIBIT 99 WEC Q2 2011 Earnings Exhibit 99


Exhibit 99




From:    Brian Manthey (news media)
414-221-4444
brian.manthey@we-energies.com

Colleen F. Henderson, CFA (analysts)
414-221-2592
colleen.henderson@wisconsinenergy.com

July 28, 2011            

Wisconsin Energy posts second quarter and first half 2011 earnings

MILWAUKEE - 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.



1


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

2



WISCONSIN ENERGY CORPORATION
CONSOLIDATED CONDENSED INCOME STATEMENTS
(Unaudited)
 
 
 
 
 
 
 
 
 
Three Months Ended June 30
 
Six Months Ended June 30
 
2011
 
2010
 
2011
 
2010
 
(Millions of Dollars, Except Per Share Amounts)
Operating Revenues
$
991.7

 
$
890.9

 
$
2,320.4

 
$
2,139.5

 
 
 
 
 
 
 
 
Operating Expenses
 
 
 
 
 
 
 
Fuel and purchased power
286.0

 
258.4

 
553.6

 
535.8

Cost of gas sold
121.8

 
95.8

 
464.2

 
451.6

Other operation and maintenance
298.9

 
317.5

 
612.4

 
652.9

Depreciation and amortization
82.3

 
76.8

 
163.6

 
151.2

Property and revenue taxes
28.3

 
26.3

 
56.6

 
52.9

Total Operating Expenses
817.3

 
774.8

 
1,850.4

 
1,844.4

 
 
 
 
 
 
 
 
Amortization of Gain
—

 
47.2

 
—

 
96.6

 
 
 
 
 
 
 
 
Operating Income
174.4

 
163.3

 
470.0

 
391.7

 
 
 
 
 
 
 
 
Equity in Earnings of Transmission Affiliate
15.2

 
15.1

 
30.7

 
30.3

Other Income, net
14.4

 
9.7

 
26.9

 
15.9

Interest Expense, net
57.4

 
53.0

 
120.8

 
102.4

 
 
 
 
 
 
 
 
Income from Continuing Operations Before Income Taxes
146.6

 
135.1

 
406.8

 
335.5

 
 
 
 
 
 
 
 
Income Taxes
48.6

 
47.6

 
137.9

 
119.0

 
 
 
 
 
 
 
 
Income from Continuing Operations
98.0

 
87.5

 
268.9

 
216.5

 
 
 
 
 
 
 
 
Income from Discontinued Operations, Net of Tax
11.5

 
1.2

 
11.5

 
1.9

Net Income
$
109.5

 
$
88.7

 
$
280.4

 
$
218.4

 
 
 
 
 
 
 
 
Earnings Per Share (Basic)
 
 
 
 
 
 
 
Continuing operations
$
0.42

 
$
0.37

 
$
1.15

 
$
0.93

Discontinued operations
0.05

 
0.01

 
0.05

 
—

Total Earnings Per Share (Basic)
$
0.47

 
$
0.38

 
$
1.20

 
$
0.93

 
 
 
 
 
 
 
 
Earnings Per Share (Diluted)
 
 
 
 
 
 
 
Continuing operations
$
0.41

 
$
0.37

 
$
1.14

 
$
0.91

Discontinued operations
0.05

 
—

 
0.05

 
0.01

Total Earnings Per Share (Diluted)
$
0.46

 
$
0.37

 
$
1.19

 
$
0.92

 
 
 
 
 
 
 
 
Weighted Average Common Shares Outstanding (Millions)
 
 
 
 
 
 
 
Basic
233.7

 
233.8

 
233.7

 
233.8

Diluted
236.6

 
236.6

 
236.6

 
236.7

 
 
 
 
 
 
 
 
Dividends Per Share of Common Stock
$
0.26

 
$
0.20

 
$
0.52

 
$
0.40




3



WISCONSIN ENERGY CORPORATION
CONSOLIDATED CONDENSED BALANCE SHEETS
(Unaudited)
 
 
 
 
 
June 30, 2011
 
December 31, 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

 
 
 
 

4



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

 
 
 
 


5