MILWAUKEE, July 31 /PRNewswire-FirstCall/ — Wisconsin Energy (NYSE:WEC) today reported net income from continuing operations of $57.7 million or 49 cents per share for the second quarter of 2007. This compares with net income from continuing operations of $59.7 million or 50 cents per share in the second quarter of 2006.
Results in this year’s second quarter were helped by a return to more normal weather and the settlement of a billing dispute with the company’s largest customer. However, these factors were offset by unfavorable recoveries of electric fuel and purchased power costs and expenses associated with a planned refueling outage at the company’s Point Beach Nuclear Plant.
Residential use of electricity was up 6.2 percent in this year’s second quarter — driven by customer growth and seasonal weather. Consumption of electricity by large commercial and industrial customers was up 0.9 percent, while use of electricity by small commercial and industrial customers rose by 3.5 percent.
At the end of June, the company was serving 7,148 more electric customers and 9,181 more natural gas customers than a year ago.
Second quarter 2007 revenues from continuing operations were $907 million compared with $814 million in the second quarter last year.
“We’re pleased with our financial results in the first half of this year,” said Gale Klappa, Wisconsin Energy’s chairman, president and chief executive officer. “Our focus remains on delivering high levels of customer satisfaction and world-class reliability at competitive prices.”
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, July 31, 2007. The presentation will review 2007 second quarter earnings and 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 800-289-0528 up to 15 minutes before the call begins. International callers may dial 913-981-5522. The confirmation code is 4454978. Access also may be gained through the company’s Web site (http://www.wisconsinenergy.com/) by clicking on the icon for the “Second Quarter 2007 Earnings Release & Conference Call.” 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 presentation will be available for one week after the call. Domestic callers should dial 888-203-1112. International callers should dial 719-457-0820. The replay confirmation code is 4454978.
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, 5,200 employees and approximately 52,000 stockholders of record.
Tables FollowWISCONSIN ENERGY CORPORATION
CONSOLIDATED CONDENSED INCOME STATEMENTS
(Unaudited)Three Months Ended Six Months Ended
June 30 June 30
2007 2006 2007 2006
(Millions of Dollars, Except Per
Share Amounts)Operating Revenues $906.5 $814.4 $2,207.6 $2,061.4
Operating Expenses
Fuel and purchased power 232.3 184.8 461.8 354.0
Cost of gas sold 158.6 129.6 632.4 610.0
Other operation and maintenance 304.2 290.1 607.2 588.0
Depreciation, decommissioning
and amortization 81.2 78.8 165.3 161.4
Property and revenue taxes 25.1 24.0 51.3 49.3
Total Operating Expenses 801.4 707.3 1,918.0 1,762.7Operating Income 105.1 107.1 289.6 298.7
Equity in Earnings of Transmission
Affiliate 10.5 9.4 21.2 19.0Other Income, Net 19.8 18.3 33.0 29.6
Interest Expense 42.0 42.6 84.7 87.8
Income From Continuing
Operations Before Income Taxes 93.4 92.2 259.1 259.5Income Taxes 35.7 32.5 100.3 95.4
Income From Continuing Operations 57.7 59.7 158.8 164.1
Income (Loss) From Discontinued
Operations, Net of Tax (0.2) 3.2 (0.4) 4.5Net Income $57.5 $62.9 $158.4 $168.6
Earnings Per Share (Basic)
Continuing operations $0.49 $0.51 $1.35 $1.40
Discontinued operations – 0.03 – 0.04
Total Earnings Per Share (Basic) $0.49 $0.54 $1.35 $1.44Earnings Per Share (Diluted)
Continuing operations $0.49 $0.50 $1.34 $1.38
Discontinued operations – 0.03 – 0.04
Total Earnings Per Share (Diluted) $0.49 $0.53 $1.34 $1.42Weighted Average Common
Shares Outstanding (Millions)
Basic 116.9 117.0 117.0 117.0
Diluted 118.5 118.4 118.6 118.4Dividends Per Share of Common Stock $0.25 $0.23 $0.50 $0.46
WISCONSIN ENERGY CORPORATION
CONSOLIDATED CONDENSED BALANCE SHEETS(Unaudited)
June 30, 2007 December 31, 2006
(Millions of Dollars)
AssetsProperty, Plant and Equipment
In service $9,413.3 $9,265.4
Accumulated depreciation (3,490.9) (3,423.7)
5,922.4 5,841.7
Construction work in progress 1,360.0 992.4
Leased facilities, net 84.7 87.5
Nuclear fuel, net 119.5 130.9
Net Property, Plant and Equipment 7,486.6 7,052.5Investments 1,206.7 1,164.8
Current Assets
Cash and cash equivalents 36.7 37.0
Accounts receivable 364.2 379.3
Accrued revenues 161.0 257.8
Materials, supplies and inventories 333.7 417.2
Prepayments and Other 166.2 136.7
Total Current Assets 1,061.8 1,228.0Deferred Charges and Other
Assets
Regulatory assets 1,106.2 1,091.0
Goodwill 441.9 441.9
Other 159.2 152.0
Total Deferred Charges and Other
Assets 1,707.3 1,684.9
Total Assets $11,462.4 $11,130.2Capitalization and Liabilities
Capitalization
Common equity $2,978.6 $2,889.0
Preferred stock of subsidiary 30.4 30.4
Long-term debt 3,544.1 3,073.4
Total Capitalization 6,553.1 5,992.8Current Liabilities
Long-term debt due currently 313.4 296.7
Short-term debt 643.7 911.9
Accounts payable 317.1 404.5
Accrued liabilities 129.8 161.2
Other 119.0 113.7
Total Current Liabilities 1,523.0 1,888.0Deferred Credits and Other Liabilities
Regulatory liabilities 1,504.4 1,472.1
Asset retirement obligations 380.8 371.7
Deferred income taxes – long-term 555.8 572.9
Other 945.3 832.7
Total Deferred Credits and Other
Liabilities 3,386.3 3,249.4
Total Capitalization and Liabilities $11,462.4 $11,130.2WISCONSIN ENERGY CORPORATION
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited)Six Months Ended June 30
2007 2006
(Millions of Dollars)
Operating Activities
Net income $158.4 $168.6
Reconciliation to cash
Depreciation, decommissioning and
amortization 170.2 166.0
Deferred income taxes and
investment tax credits, net (23.6) (25.5)
Working capital and other 150.6 271.5
Cash Provided by Operating Activities 455.6 580.6Investing Activities
Capital expenditures (572.5) (420.9)
Proceeds from asset sales 16.0 41.5
Other investing activities (40.3) (22.1)
Cash Used in Investing Activities (596.8) (401.5)Financing Activities
Common stock issued (repurchased), net (24.7) (5.5)
Dividends paid on common stock (58.5) (53.8)
Change in debt, net 224.6 (176.3)
Other financing activities (0.5) 1.4
Cash Provided by (Used in) Financing
Activities 140.9 (234.2)Change in Cash (0.3) (55.1)
Cash at Beginning of Period 37.0 73.2
Cash at End of Period $36.7 $18.1
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Source: Wisconsin Energy Corporation
