MILWAUKEE, April 29 /PRNewswire-FirstCall/ — Wisconsin Energy (NYSE:WEC) today reported net income from continuing operations of $123 million or $1.04 per share for the first quarter of 2008. This compares with earnings of $101 million or 85 cents per share from continuing operations in last year’s first quarter.
“A cold, snowy winter drove electric and natural gas usage higher across Wisconsin and the Upper Peninsula of Michigan. Our electric sales were the highest for any winter quarter in our history and our natural gas sales were the second highest for any quarter in our history,” said Gale Klappa, Wisconsin Energy’s chairman, president and chief executive officer.
Total retail sales of electricity increased by 2.0 percent over the first quarter of 2007. Consumption of electricity by residential customers rose by 2.8 percent — driven by the extended cold weather and customer growth. Electricity use by large commercial and industrial customers was up by 2.1 percent compared with last year’s first quarter, while usage by small commercial and industrial customers grew by 1.3 percent.
First quarter 2008 revenues were $1.43 billion compared with $1.30 billion in the first quarter last year. At the end of March, the company was serving 7,200 more electric customers and 7,900 more natural gas customers than a year ago.
“We’re pleased with our first quarter results,” Klappa added. “Overall, our gas and electricity networks held up well, and we were able to meet the record winter demands for energy in our region.
“During the quarter, we also made progress on our Power the Future plan. This year, we will invest nearly $1.2 billion to upgrade the energy infrastructure of the region,” Klappa said. “In fact, two major projects — our Blue Sky Green Field wind farm and the second natural gas-fired unit at Port Washington — are expected to enter commercial service within the next 60 days.”
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 Tuesday, April 29, 2008. The presentation will review 2008 first 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 888-690-2874 up to 15 minutes before the call begins. International callers may dial 913-312-1447. The confirmation code is 1349562. Access also may be gained through the company’s Web site (http://www.wisconsinenergy.com/). Click on the icon for the “First 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 first quarter performance. The materials will be available at 7:30 a.m. Central time on April 29. 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 May 6, 2008. Domestic callers should dial 888-203-1112. International callers should dial 719-457-0820. The replay confirmation code is 1349562.
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 FollowWISCONSIN ENERGY CORPORATION
CONSOLIDATED CONDENSED INCOME STATEMENTS
(Unaudited)Three Months Ended March 31
2008 2007
(Millions of Dollars, Except Per
Share Amounts)Operating Revenues $1,431.8 $1,301.1
Operating Expenses
Fuel and purchased power 338.2 229.5
Cost of gas sold 560.3 473.8
Other operation and maintenance 369.6 303.0
Depreciation, decommissioning
and amortization 77.7 84.1
Property and revenue taxes 27.1 26.2
Total Operating Expenses 1,372.9 1,116.6Amortization of Gain 159.0 –
Operating Income 217.9 184.5
Equity in Earnings of Transmission
Affiliate 11.5 10.7
Other Income, Net 10.6 13.2
Interest Expense, Net 39.2 42.7Income From Continuing
Operations Before Income Taxes 200.8 165.7Income Taxes 77.6 64.6
Income From Continuing Operations 123.2 101.1
Loss From Discontinued
Operations, Net of Tax – (0.2)Net Income $123.2 $100.9
Earnings Per Share (Basic)
Continuing operations $1.05 $0.86
Discontinued operations – –
Total Earnings Per Share (Basic) $1.05 $0.86Earnings Per Share (Diluted)
Continuing operations $1.04 $0.85
Discontinued operations – –
Total Earnings Per Share (Diluted) $1.04 $0.85Weighted Average Common
Shares Outstanding (Millions)
Basic 116.9 117.0
Diluted 118.3 118.7Dividends Per Share of Common Stock $0.27 $0.25
WISCONSIN ENERGY CORPORATION
CONSOLIDATED CONDENSED BALANCE SHEETS(Unaudited)
March 31, 2008 December 31, 2007
(Millions of Dollars)
AssetsNet Property, Plant and
Equipment $7,911.7 $7,681.2Investments
Restricted cash 300.4 323.5
Equity investment in
transmission affiliate 241.7 238.5
Other 36.9 42.7
Total Investments 579.0 604.7Current Assets
Cash and cash equivalents 24.2 27.4
Restricted Cash 342.9 408.1
Accounts receivable 521.4 361.8
Accrued revenues 259.4 312.2
Materials, supplies and
inventories 235.1 361.3
Regulatory Assets 82.5 164.7
Prepayments and other 191.5 214.2
Total Current Assets 1,657.0 1,849.7Deferred Charges and Other
Assets
Regulatory assets 906.3 961.6
Goodwill 441.9 441.9
Other 182.2 181.2
Total Deferred Charges and
Other Assets 1,530.4 1,584.7
Total Assets $11,678.1 $11,720.3Capitalization and Liabilities
Capitalization
Common equity $3,191.5 $3,099.2
Preferred stock of subsidiary 30.4 30.4
Long-term debt 2,974.2 3,172.5
Total Capitalization 6,196.1 6,302.1Current Liabilities
Long-term debt due currently 403.2 352.8
Short-term debt 1,006.4 900.7
Accounts payable 422.1 478.3
Regulatory liabilities 471.1 563.1
Other 330.2 207.9
Total Current Liabilities 2,633.0 2,502.8Deferred Credits and Other
Liabilities
Regulatory liabilities 1,267.5 1,314.3
Deferred income taxes –
long-term 542.9 551.7
Deferred revenue, net 397.7 347.7
Other 640.9 701.7
Total Deferred Credits and
Other Liabilities 2,849.0 2,915.4
Total Capitalization and
Liabilities $11,678.1 $11,720.3WISCONSIN ENERGY CORPORATION
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited)Three Months Ended March 31,
2008 2007
(Millions of Dollars)
Operating Activities
Net income $123.2 $100.9
Reconciliation to cash
Depreciation,
decommissioning and
amortization 82.4 86.9
Deferred income taxes and
investment tax credits, net (9.9) (19.9)
Working capital and other 148.1 195.0
Cash Provided by Operating
Activities 343.8 362.9Investing Activities
Capital expenditures (348.2) (290.2)
Change in restricted cash 88.3 –
Other investing activities (20.1) (19.2)
Unrestricted proceeds from
asset sales 9.1 5.1
Cash Used in Investing
Activities (270.9) (304.3)Financing Activities
Common stock issued
(repurchased), net (2.8) (17.1)
Dividends paid on common stock (31.6) (29.2)
Change in debt, net (42.3) (29.7)
Other financing activities 0.6 4.5
Cash Used in Financing
Activities (76.1) (71.5)Change in Cash (3.2) (12.9)
Cash at Beginning of Period 27.4 37.0
Cash at End of Period $24.2 $24.1
First Call Analyst:
FCMN Contact:
Source: Wisconsin Energy Corporation
CONTACT: News Media, Rick James, +1-414-221-4444, or Analysts, Colleen
F. Henderson, CFA, +1-414-221-2592, colleen.henderson@wisconsinenergy.com,
both of Wisconsin Energy Corporation
Web site: http://www.wisconsinenergy.com/
