MILWAUKEE, July 31 /PRNewswire-FirstCall/ -- Wisconsin Energy (NYSE: WEC)
today reported net income from continuing operations of $58.3 million or 49
cents per share for the second quarter of 2008. This compares with net income
from continuing operations of $57.7 million or 49 cents per share in the
corresponding period a year ago.
Second quarter 2008 results were helped by additional earnings from the
company's Power the Future plan, including the new Port Washington generating
unit that began commercial service in May. Results in last year's second
quarter were increased by the settlement of a billing dispute and a gain on
the sale of land.
Residential use of electricity was down by 4.2 percent from the second
quarter a year ago - driven by cooler weather and the lack of air conditioning
demand in June. Consumption of electricity by large commercial and industrial
customers was down 1.2 percent, while use of electricity by small commercial
and industrial customers declined by 3.0 percent.
At the end of June, the company was serving 6,996 more electric customers
and 8,310 more natural gas customers than a year ago.
Second quarter 2008 revenues from continuing operations were $946 million
compared with $907 million in the second quarter last year.
'We reached another milestone in this year's second quarter as our
customers began realizing the benefits of two major components of our Power
the Future plan,' said Gale Klappa, Wisconsin Energy's chairman, president and
chief executive officer. 'In May, our generating capacity increased with the
startup of our second natural gas-fueled unit at Port Washington and the
commercial operation of 88 wind turbines at our Blue Sky Green Field wind
farm.'
Klappa continued, 'These projects add nearly 700 megawatts of capability
to our system and are key to the diverse energy portfolio we're building to
support the region's economy in the years ahead.'
Conference Call
A conference call is scheduled for 1 p.m. Central time on Thursday, July
31, 2008. The presentation will review 2008 second quarter earnings and will
discuss the company's outlook for the future.
All interested parties, including stockholders, the news media and the
general public, are invited to listen to the presentation. The conference call
may be accessed by dialing 800-289-0493 up to 15 minutes before the call
begins. International callers may dial 913-312-1452. The confirmation code is
5843245. Access also may be gained through the company's Web site
(http://www.wisconsinenergy.com). Click on the icon for the 'Second Quarter
2008 Earnings Release & Conference Call' and select 'webcast audio.' In
conjunction with this earnings announcement, Wisconsin Energy will post on its
Web site a package of detailed financial information on its second quarter
performance. The materials will be available at 7:30 a.m. Central time on July
31. An archive of the presentation will be available on the Web site after the
call. A replay of the audio portion of the presentation will be available
approximately two hours following the conclusion of the presentation and
accessible through Aug. 7, 2008. Domestic callers should dial 888-203-1112.
International callers should dial 719-457-0820. The replay confirmation code
is 5843245.
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 utilities are We
Energies and Edison Sault Electric. The company's non-utility businesses
include renewable energy technology and real estate development.
Wisconsin Energy Corporation (http://www.wisconsinenergy.com) has more
than $11 billion of assets, approximately 5,000 employees and more than 50,000
stockholders of record.
Tables Follow
WISCONSIN ENERGY CORPORATION
CONSOLIDATED CONDENSED INCOME STATEMENTS
(Unaudited)
Three Months Six Months
Ended June 30 Ended June 30
2008 2007 2008 2007
(Millions of Dollars, Except Per Share Amounts)
Operating Revenues $946.1 $906.5 $2,377.9 $2,207.6
Operating Expenses
Fuel and purchased power 298.1 232.3 636.3 461.8
Cost of gas sold 185.6 158.6 745.9 632.4
Other operation and maintenance 333.5 304.2 703.1 607.2
Depreciation, decommissioning
and amortization 80.5 81.2 158.2 165.3
Property and revenue taxes 27.2 25.1 54.3 51.3
Total Operating Expenses 924.9 801.4 2,297.8 1,918.0
Amortization of Gain 87.0 - 246.0 -
Operating Income 108.2 105.1 326.1 289.6
Equity in Earnings of Transmission
Affiliate 12.1 10.5 23.6 21.2
Other Income, Net 7.9 19.8 18.5 33.0
Interest Expense, Net 35.4 42.0 74.6 84.7
Income From Continuing
Operations Before Income Taxes 92.8 93.4 293.6 259.1
Income Taxes 34.5 35.7 112.1 100.3
Income From Continuing Operations 58.3 57.7 181.5 158.8
Loss From Discontinued
Operations, Net of Tax (0.3) (0.2) (0.3) (0.4)
Net Income $58.0 $57.5 $181.2 $158.4
Earnings Per Share (Basic)
Continuing operations $0.50 $0.49 $1.55 $1.35
Discontinued operations - - - -
Total Earnings Per Share (Basic) $0.50 $0.49 $1.55 $1.35
Earnings Per Share (Diluted)
Continuing operations $0.49 $0.49 $1.53 $1.34
Discontinued operations - - - -
Total Earnings Per Share (Diluted) $0.49 $0.49 $1.53 $1.34
Weighted Average Common
Shares Outstanding (Millions)
Basic 116.9 116.9 116.9 117.0
Diluted 118.3 118.5 118.3 118.6
Dividends Per Share of Common Stock $0.27 $0.25 $0.54 $0.50
WISCONSIN ENERGY CORPORATION
CONSOLIDATED CONDENSED BALANCE SHEETS
(Unaudited)
June 30, 2008 December 31, 2007
Assets (Millions of Dollars)
Net Property, Plant and Equipment $8,132.1 $7,681.2
Investments
Restricted cash 256.9 323.5
Equity investment in
transmission affiliate 253.1 238.5
Other 36.2 42.7
Total Investments 546.2 604.7
Current Assets
Cash and cash equivalents 26.6 27.4
Restricted cash 320.6 408.1
Accounts receivable 395.7 361.8
Accrued revenues 171.8 312.2
Materials, supplies and inventories 279.0 361.3
Regulatory assets 82.5 164.7
Prepayments and other 246.6 214.2
Total Current Assets 1,522.8 1,849.7
Deferred Charges and Other Assets
Regulatory assets 887.7 961.6
Goodwill 441.9 441.9
Other 194.3 181.2
Total Deferred Charges and
Other Assets 1,523.9 1,584.7
Total Assets $11,725.0 $11,720.3
Capitalization and Liabilities
Capitalization
Common equity $3,217.7 $3,099.2
Preferred stock of subsidiary 30.4 30.4
Long-term debt 3,126.6 3,172.5
Total Capitalization 6,374.7 6,302.1
Current Liabilities
Long-term debt due currently 381.0 352.8
Short-term debt 949.4 900.7
Accounts payable 343.5 478.3
Regulatory liabilities 444.6 563.1
Other 231.3 207.9
Total Current Liabilities 2,349.8 2,502.8
Deferred Credits and Other Liabilities
Regulatory liabilities 1,255.9 1,314.3
Deferred income taxes - long-term 662.7 551.7
Deferred revenue, net 447.6 347.7
Pension and other benefit obligations 270.5 310.1
Other 363.8 391.6
Total Deferred Credits and
Other Liabilities 3,000.5 2,915.4
Total Capitalization and Liabilities $11,725.0 $11,720.3
WISCONSIN ENERGY CORPORATION
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited)
Six Months Ended June 30,
2008 2007
(Millions of Dollars)
Operating Activities
Net income $181.2 $158.4
Reconciliation to cash
Depreciation, decommissioning
and amortization 164.6 170.2
Deferred income taxes and
investment tax credits, net 123.8 (23.6)
Working capital and other 104.3 150.6
Cash Provided by Operating Activities 573.9 455.6
Investing Activities
Capital expenditures (642.2) (572.5)
Change in restricted cash 154.1 -
Other investing activities (56.0) (40.3)
Proceeds from asset sales, net 9.5 16.0
Cash Used in Investing Activities (534.6) (596.8)
Financing Activities
Common stock issued (repurchased), net (7.3) (24.7)
Dividends paid on common stock (63.1) (58.5)
Change in debt, net 30.4 224.6
Other financing activities, net (0.1) (0.5)
Cash Used in Financing Activities (40.1) 140.9
Change in Cash (0.8) (0.3)
Cash at Beginning of Period 27.4 37.0
Cash at End of Period $26.6 $36.7
SOURCE Wisconsin Energy Corporation
