EX-99 2 exhibit99wecq12014earnings.htm WEC Q1 2014 EXHIBIT 99 Exhibit 99 WEC Q1 2014 Earnings


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

April 30, 2014                

Wisconsin Energy posts 2014 first quarter results

MILWAUKEE - Wisconsin Energy (NYSE: WEC) today reported net income of $207.6 million or 91 cents a share for the first quarter of 2014. This compares with net income of $176.6 million or 76 cents a share for the first quarter of 2013.

First quarter 2014 revenues were $1.7 billion. Revenues totaled $1.3 billion in the corresponding quarter last year.

Severe winter temperatures drove record demand for natural gas over the first three months of 2014. The company delivered more natural gas to customers than during any other quarter in history - breaking the previous record set in the first quarter of 2008 by 11 percent.

In addition, retail demand for electricity across the region rose by 3.9 percent over last year’s first quarter.

“Our gas and electric delivery networks and our generating fleet - including our newest units at Oak Creek and Port Washington - performed exceptionally well during the harshest weather conditions we’ve seen in more than 30 years,” said Gale Klappa, chairman and chief executive officer. “The investments we’ve made in modern, efficient infrastructure made a real difference for our customers this winter,” Klappa added.

Residential use of electricity rose by 5.8 percent in this year’s first quarter. Consumption of electricity by small commercial and industrial customers increased by 3.8 percent. Electricity use by large commercial and industrial customers - excluding the iron ore mines in Michigan's Upper Peninsula - was 1.8 percent higher.






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On a weather-normalized basis, retail consumption of electricity - excluding the iron ore mines - increased by 1.7 percent.

At the end of March, the company was serving approximately 3,200 more electric customers and 6,200 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 April 30, 2014. The presentation will review 2014 first 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 24693038. Access also may be gained through the company's website (wisconsinenergy.com). Select 'First 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 first quarter performance. The materials will be available at
6:30 a.m. Central time on April 30, 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 May 15, 2014. Domestic callers should dial 855-859-2056. International callers should dial 404-537-3406. The replay conference ID is 24693038.

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


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WISCONSIN ENERGY CORPORATION
CONSOLIDATED CONDENSED INCOME STATEMENTS
(Unaudited)
 
 
 
 
 
Three Months Ended March 31
 
2014
 
2013
 
(Millions of Dollars, Except Per Share Amounts)
 
 
 
 
Operating Revenues
$
1,695.0

 
$
1,275.2

 
 
 
 
Operating Expenses
 
 
 
Fuel and purchased power
318.6

 
271.0

Cost of gas sold
591.5

 
270.1

Other operation and maintenance
275.4

 
288.1

Depreciation and amortization
100.6

 
95.5

Property and revenue taxes
30.6

 
29.5

Total Operating Expenses
1,316.7

 
954.2

 
 
 
 
Treasury Grant
3.5

 
—

 
 
 
 
Operating Income
381.8

 
321.0

 
 
 
 
Equity in Earnings of Transmission Affiliate
17.3

 
16.6

Other Income, net
1.1

 
4.4

Interest Expense, net
62.3

 
65.0

 
 
 
 
Income Before Income Taxes
337.9

 
277.0

 
 
 
 
Income Tax Expense
130.3

 
100.4

 
 
 
 
Net Income
$
207.6

 
$
176.6

 
 
 
 
Earnings Per Share
 
 
 
Basic
$
0.92

 
$
0.77

Diluted
$
0.91

 
$
0.76

 
 
 
 
Weighted Average Common Shares Outstanding (Millions)
 
 
 
Basic
225.8

 
228.9

Diluted
227.7

 
231.2

 
 
 
 
Dividends Per Share of Common Stock
$
0.39

 
$
0.34







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WISCONSIN ENERGY CORPORATION
CONSOLIDATED CONDENSED BALANCE SHEETS
(Unaudited)
 
 
 
March 31, 2014
 
December 31, 2013
 
(Millions of Dollars)
Assets
 
 
 
 
 
 
 
Property, Plant and Equipment, Net
$
10,941.7

 
$
10,906.6

 
 
 
 
Investments
 
 
 
Equity investment in transmission affiliate
409.6

 
402.7

Other
35.8

 
36.1

Total Investments
445.4

 
438.8

 
 
 
 
Current Assets
 
 
 
Cash and cash equivalents
27.6

 
26.0

Accounts receivable, net
605.8

 
406.0

Accrued revenues
289.2

 
321.1

Materials, supplies and inventories
234.9

 
329.4

Current deferred tax asset, net
261.4

 
310.0

Prepayments and other
126.1

 
158.6

Total Current Assets
1,545.0

 
1,551.1

 
 
 
 
Deferred Charges and Other Assets
 
 
 
Regulatory assets
1,098.0

 
1,108.5

Goodwill
441.9

 
441.9

Other
328.8

 
322.5

Total Deferred Charges and Other Assets
1,868.7

 
1,872.9

Total Assets
$
14,800.8

 
$
14,769.4

 
 
 
 
Capitalization and Liabilities
 
 
 
 
 
 
 
Capitalization
 
 
 
Common equity
$
4,322.0

 
$
4,233.0

Preferred stock of subsidiary
30.4

 
30.4

Long-term debt
4,348.8

 
4,363.2

Total Capitalization
8,701.2

 
8,626.6

 
 
 
 
Current Liabilities
 
 
 
Long-term debt due currently
343.8

 
342.2

Short-term debt
422.2

 
537.4

Accounts payable
435.0

 
342.6

Accrued payroll and benefits
73.3

 
96.9

Other
150.3

 
177.3

Total Current Liabilities
1,424.6

 
1,496.4

 
 
 
 
Deferred Credits and Other Liabilities
 
 
 
Regulatory liabilities
874.4

 
879.1

Deferred income taxes - long-term
2,699.0

 
2,634.0

Deferred revenue, net
651.9

 
664.2

Pension and other benefit obligations
169.5

 
173.2

Other
280.2

 
295.9

Total Deferred Credits and Other Liabilities
4,675.0

 
4,646.4

Total Capitalization and Liabilities
$
14,800.8

 
$
14,769.4

 
 
 
 


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WISCONSIN ENERGY CORPORATION
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited)
 
 
 
 
 
Three Months Ended March 31
 
2014
 
2013
 
(Millions of Dollars)
Operating Activities
 
 
 
Net income
$
207.6

 
$
176.6

Reconciliation to cash
 
 
 
Depreciation and amortization
103.7

 
98.2

Deferred income taxes and investment tax credits, net
111.6

 
101.8

Working capital and other
(37.8
)
 
(46.3
)
Cash Provided by Operating Activities
385.1

 
330.3

 
 
 
 
Investing Activities
 
 
 
Capital expenditures
(129.2
)
 
(133.6
)
Investment in transmission affiliate
(3.9
)
 
(1.3
)
Other, net
(6.0
)
 
(10.4
)
Cash Used in Investing Activities
(139.1
)
 
(145.3
)
 
 
 
 
Financing Activities
 
 
 
Common stock repurchased under benefit plans, net
(18.8
)
 
(28.1
)
Common stock repurchased under repurchase plan
(18.6
)
 
(11.1
)
Dividends paid on common stock
(88.1
)
 
(77.8
)
Change in debt, net
(124.1
)
 
(86.4
)
Other, net
5.2

 
7.5

Cash Used in Financing Activities
(244.4
)
 
(195.9
)
 
 
 
 
Change in Cash
1.6

 
(10.9
)
 
 
 
 
Cash at Beginning of Period
26.0

 
35.6

 
 
 
 
Cash at End of Period
$
27.6

 
$
24.7

 
 
 
 





















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Wisconsin Energy Corporation
 
 
Normalized Retail Electric Sales (a)
 
 
 
 
 
 
 
 
 
 
 
Delivery Sales
 
 
 
 
 
 
First Quarter
 
Annual (b)
 
2014 Actual vs. 2013 Actual
 
2014 Normalized vs. 2013 Normalized
 
2014
 Budget
vs. 2013 Normalized
Residential
5.8
 %
 
1.7
 %
 
0.4
 %
Small Commercial/Industrial
3.8
 %
 
1.8
 %
 
0.3
 %
Large Commercial/Industrial (ex. Mines)
1.8
 %
 
1.8
 %
 
0.9
 %
Total Large Commercial/Industrial
1.6
 %
 
1.6
 %
 
0.4
 %
Total Retail Sales
3.6
 %
 
1.7
 %
 
0.4
 %
Retail (ex. Mines)
3.9
 %
 
1.7
 %
 
0.5
 %
 
 
 
 
 
 
 
 
 
 
 
 
Energy Sales
 
 
 
 
 
 
First Quarter
 
Annual (b)
 
2014 Actual vs. 2013 Actual
 
2014 Normalized vs. 2013 Normalized
 
2014
 Budget
vs. 2013 Normalized
Residential
5.8
 %
 
1.7
 %
 
0.4
 %
Small Commercial/Industrial
3.4
 %
 
1.3
 %
 
0.1
 %
Large Commercial/Industrial (ex. Mines)
(0.5
)%
 
(0.5
)%
 
(0.8
)%
Total Large Commercial/Industrial
(23.6
)%
 
(23.6
)%
 
(14.4
)%
Total Retail Sales
(5.5
)%
 
(7.5
)%
 
(4.7
)%
Retail (ex. Mines)
3.0
 %
 
0.9
 %
 
(0.1
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(a) Normalized - 20 year average weather adjusted.
 
 
 
 
 
 
 
 
 
 
(b) Actual results may differ materially from these forecasts because of seasonal, economic and other factors.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


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