MILWAUKEE, Oct. 29 /PRNewswire-FirstCall/ -- Wisconsin Energy
(NYSE:WEC) today reported net income from continuing operations of
$59 million or 50 cents a share for the third quarter of 2009. This
compares with net income from continuing operations of $77 million
or 64 cents a share in the third quarter last year. For the first
nine months of 2009, net income from continuing operations reached
$264 million or $2.24 a share. On a comparable basis, earnings for
the first nine months of last year were $258 million or $2.18 a
share. Total sales of electricity declined by nearly 14.2 percent
in this year's third quarter - driven in part by unusually cool
summer weather and minimal demand for air conditioning. Residential
use of electricity fell by 10.2 percent in this year's third
quarter. For the first nine months of 2009, usage by residential
customers has fallen 4.8 percent. Consumption of electricity by
small commercial and industrial customers dropped by 6.9 percent
and 4.9 percent, respectively, in the third quarter and first nine
months of 2009. Electricity use by large commercial and industrial
customers was down by 13.6 percent in the third quarter and 17.7
percent compared to the first nine months of last year. Third
quarter 2009 revenues from continuing operations were $822 million.
In the corresponding period last year, revenues from continuing
operations were $852 million. "Our third quarter performance
reflects the impact of one of the coolest summers on record, the
effects of a deep recession on our manufacturing customers, and the
timing of fuel recoveries," said Gale Klappa, Wisconsin Energy's
chairman, president and chief executive officer. "Despite these
factors, we posted solid financial results in the first nine months
of this year through effective cost reductions and productivity
gains. Our focus remains on delivering world-class reliability for
our customers at prices that are below the national average. "The
company's earnings guidance for this year remains in the range of
$3.05 to $3.15 a share," Klappa added. 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 Thursday,
Oct. 29, 2009. The presentation will review 2009 third 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 888-312-3051 up to 15
minutes before the call begins. International callers may dial
719-325-2220. The confirmation code is 1584701. Access also may be
gained through the company's Web site
(http://www.wisconsinenergy.com/). Click on the icon for the "Third
Quarter 2009 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 third quarter performance. The
materials will be available at 6 a.m. Central time on Oct. 29,
2009. 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 Nov. 11,
2009. Domestic callers should dial 888-203-1112. International
callers should dial 719-457-0820. The replay confirmation code is
1584701. 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 other major
subsidiary, We Power, designs, builds and owns electric generating
plants. Wisconsin Energy Corporation
(http://www.wisconsinenergy.com/), a component of the S&P 500,
has more than $12 billion of assets, approximately 5,000 employees
and 48,000 stockholders of record. Forward-Looking Statements
Certain statements contained in this release are "forward-looking
statements" within the meaning of Section 27A of the Securities Act
of 1933 and Section 21E of the Securities Exchange Act of 1934.
These statements, including those related to management's
expectations and projections regarding earnings, are based upon
management's current expectations and are subject to risks and
uncertainties that could cause Wisconsin Energy's actual results to
differ materially from those contemplated in the statements.
Readers are cautioned not to place undue reliance on these
forward-looking statements. Actual results may differ materially
from those set forth in forward-looking statements. Factors that
could cause Wisconsin Energy's actual results to differ materially
from those contemplated in any forward-looking statements or
otherwise affect our future results of operations and financial
condition include, among others, the following: (i) factors
affecting utility operations such as unusual weather conditions,
catastrophic weather-related or terrorism-related damage,
availability of electric generating facilities, unscheduled
generation outages or unplanned maintenance or repairs,
unanticipated events causing scheduled generation outages to last
longer than expected, unanticipated changes in fossil fuel,
purchased power, coal supply, gas supply or water supply costs or
availability due to higher demand, shortages, transportation
problems or other developments, nonperformance by electric energy
or natural gas suppliers under existing power purchase or gas
supply contracts, environmental incidents, electric transmission or
gas pipeline system constraints, unanticipated organizational
structure or key personnel changes, collective bargaining
agreements with union employees or work stoppages or inflation
rates; (ii) factors affecting the economic climate in the company's
service territories such as customer growth, customer business
conditions, including demand for their products and services and
changes in market demand and demographic patterns; (iii) timing,
resolution and impact of pending and future rate cases and
negotiations, including recovery for new investments as part of the
company's Power the Future strategy, environmental compliance,
transmission service, fuel costs and costs associated with the
implementation of the Midwest Independent Transmission System
Operator's energy and operating reserves markets; (iv) regulatory
factors such as changes in rate-setting policies or procedures,
changes in regulatory accounting policies and practices, industry
restructuring initiatives, transmission or distribution system
operation and/or administration initiatives, required changes in
facilities or operations to reduce the risks or impacts of
potential terrorist activities, required approvals for new
construction, and the siting approval process for new generation
and transmission facilities and new pipeline construction; (v)
increased competition in the company's electric and gas markets and
continued industry consolidation; (vi) factors which impede or
delay execution of the company's Power the Future strategy,
including the adverse interpretation or enforcement of permit
conditions by the permitting agencies, construction delays, and
obtaining the investment capital from outside sources necessary to
implement the strategy; (vii) factors which may affect successful
implementation of the settlement agreement with the two parties who
were challenging the water intake permit for the Oak Creek
expansion, including regulatory approval of projects and costs
contained in the agreement; (viii) the impact of recent and future
federal, state and local legislative and regulatory changes,
including electric and gas industry restructuring initiatives,
changes to the Federal Power Act and related regulations under the
Energy Policy Act and enforcement thereof by regulatory agencies,
changes in allocation of energy assistance, including state public
benefits funds, changes in environmental, tax and other laws and
regulations to which we are subject and changes in the application
of existing laws and regulations; (ix) restrictions imposed by
various financing arrangements and regulatory requirements on the
ability of the company's subsidiaries to transfer funds to it in
the form of cash dividends, loans or advances; (x) the cost and
other effects of legal and administrative proceedings, settlements,
investigations, claims and changes in those matters; (xi) impacts
of the significant contraction in the global credit markets
affecting the availability and cost of capital; (xii) other factors
affecting our ability to access the capital markets, including
general capital market conditions, our capitalization structure,
market perceptions of the utility industry, the company or any of
its subsidiaries, and the company's credit ratings; (xiii) the
investment performance of the company's pension and other
post-retirement benefit plans; (xiv) the effect of accounting
pronouncements issued periodically by standard setting bodies; (xv)
unanticipated technological developments that result in competitive
disadvantages and create the potential for impairment of existing
assets; (xvi) changes in the creditworthiness of the counterparties
with whom the company and its subsidiaries have contractual
arrangements, including participants in the energy trading markets
and fuel suppliers and transporters; (xvii) the cyclical nature of
property values that could affect our real estate investments;
(xviii) changes to the legislative or regulatory restrictions or
caps on non-utility acquisitions, investments or projects,
including the State of Wisconsin's public utility holding company
law; and (xix) other business or investment considerations that may
be disclosed from time to time in the company's SEC filings or in
other publicly disseminated written documents, including the risk
factors set forth in its Annual Report on Form 10-K for the year
ended Dec. 31, 2008. Wisconsin Energy expressly disclaims any
obligation to publicly update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise. Tables Follow WISCONSIN ENERGY CORPORATION
CONSOLIDATED CONDENSED INCOME STATEMENTS (Unaudited) Three Months
Nine Months Ended Ended September 30 September 30 -------------
---------------- 2009 2008 2009 2008 ---- ---- ---- ---- (Millions
of Dollars, Except Per Share Amounts) Operating Revenues $821.9
$851.5 $3,060.6 $3,228.0 Operating Expenses Fuel and purchased
power 292.6 344.1 812.6 980.4 Cost of gas sold 63.2 95.7 667.9
841.4 Other operation and maintenance 303.8 320.0 946.5 1,022.7
Depreciation, decommissioning and amortization 87.3 84.0 259.4
242.1 Property and revenue taxes 28.0 26.7 84.3 81.0 ---- ---- ----
---- Total Operating Expenses 774.9 870.5 2,770.7 3,167.6
Amortization of Gain 57.9 157.4 177.2 403.4 ---- ----- ----- -----
Operating Income 104.9 138.4 467.1 463.8 Equity in Earnings of
Transmission Affiliate 14.9 14.4 43.6 38.0 Other Income, net 10.4
7.1 24.0 25.6 Interest Expense, net 38.4 38.8 119.0 113.4 ---- ----
----- ----- Income from Continuing Operations Before Income Taxes
91.8 121.1 415.7 414.0 Income Taxes 33.1 44.5 152.1 156.2 ---- ----
----- ----- Income from Continuing Operations 58.7 76.6 263.6 257.8
Income (Loss) from Discontinued Operations, Net of Tax (0.2) 0.9
0.1 0.9 ---- --- --- --- Net Income $58.5 $77.5 $263.7 $258.7 =====
===== ====== ====== Earnings Per Share (Basic) Continuing
operations $0.50 $0.65 $2.26 $2.20 Discontinued operations - 0.01 -
0.01 --- ---- --- ---- Total Earnings Per Share (Basic) $0.50 $0.66
$2.26 $2.21 ===== ===== ===== ===== Earnings Per Share (Diluted)
Continuing operations $0.50 $0.64 $2.24 $2.18 Discontinued
operations - 0.01 - 0.01 --- ---- --- ---- Total Earnings Per Share
(Diluted) $0.50 $0.65 $2.24 $2.19 ===== ===== ===== ===== Weighted
Average Common Shares Outstanding (Millions) Basic 116.9 116.9
116.9 116.9 Diluted 118.0 118.2 117.9 118.2 Dividends Per Share of
Common Stock $0.3375 $0.27 $1.0125 $0.81 WISCONSIN ENERGY
CORPORATION CONSOLIDATED CONDENSED BALANCE SHEETS (Unaudited)
September December 30, 2009 31, 2008 ----------- -------- (Millions
of Dollars) Assets ------ Net Property, Plant and Equipment
$8,903.7 $8,502.6 Investments Restricted cash 56.5 172.4 Equity
investment in transmission affiliate 303.3 276.3 Other 37.7 41.6
---- ---- Total Investments 397.5 490.3 Current Assets Cash and
cash equivalents 10.7 32.5 Restricted cash 180.5 214.1 Accounts
receivable 309.5 369.5 Accrued revenues 147.8 341.2 Materials,
supplies and inventories 388.9 344.7 Regulatory assets 69.6 82.5
Prepayments and other 221.6 323.0 ----- ----- Total Current Assets
1,328.6 1,707.5 Deferred Charges and Other Assets Regulatory assets
1,186.3 1,261.1 Goodwill 441.9 441.9 Other 162.7 214.4 ----- -----
Total Deferred Charges and Other Assets 1,790.9 1,917.4 -------
------- Total Assets $12,420.7 $12,617.8 ========= =========
Capitalization and Liabilities ------------------------------
Capitalization Common equity $3,486.9 $3,336.9 Preferred stock of
subsidiary 30.4 30.4 Long-term debt 3,631.2 4,074.7 ------- -------
Total Capitalization 7,148.5 7,442.0 Current Liabilities Long-term
debt due currently 312.5 61.8 Short-term debt 938.0 602.3 Accounts
payable 263.8 441.0 Regulatory liabilities 234.4 310.8 Other 261.2
319.2 ----- ----- Total Current Liabilities 2,009.9 1,735.1
Deferred Credits and Other Liabilities Regulatory liabilities 949.2
1,084.4 Deferred income taxes - long-term 950.0 814.0 Deferred
revenue, net 687.9 545.4 Pension and other benefit obligations
316.9 635.0 Other 358.3 361.9 ----- ----- Total Deferred Credits
and Other Liabilities 3,262.3 3,440.7 ------- ------- Total
Capitalization and Liabilities $12,420.7 $12,617.8 =========
========= WISCONSIN ENERGY CORPORATION CONSOLIDATED CONDENSED
STATEMENTS OF CASH FLOWS (Unaudited) Nine Months Ended September
30, -------------- 2009 2008 ---- ---- (Millions of Dollars)
Operating Activities Net income $263.7 $258.7 Reconciliation to
cash Depreciation, decommissioning and amortization 264.3 249.9
Contribution to benefit plans (289.3) (48.4) Working capital and
other 197.8 182.8 ----- ----- Cash Provided by Operating Activities
436.5 643.0 Investing Activities Capital expenditures (555.8)
(888.9) Change in restricted cash 149.5 280.7 Unrestricted proceeds
from asset sales 15.7 13.8 Other investing activities (88.0) (87.3)
----- ----- Cash Used in Investing Activities (478.6) (681.7)
Financing Activities Common stock issued (repurchased), net (8.5)
(9.9) Dividends paid on common stock (118.4) (94.7) Change in debt,
net 145.2 140.3 Other financing activities, net 2.0 (1.1) --- ----
Cash Provided by Financing Activities 20.3 34.6 ---- ---- Change in
Cash (21.8) (4.1) Cash at Beginning of Period 32.5 27.4 ---- ----
Cash at End of Period $10.7 $23.3 ===== ===== DATASOURCE: Wisconsin
Energy Corporation CONTACT: media, Rick James, +1-414-221-4444, or
analysts, Colleen F. Henderson, CFA, +1-414-221-2592, , both of
Wisconsin Energy Corporation Web Site:
http://www.wisconsinenergy.com/
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