MILWAUKEE, Feb. 3 /PRNewswire-FirstCall/ -- Wisconsin Energy (NYSE: WEC) today reported earnings from continuing operations of $100 million or 85 cents per share for the fourth quarter of 2008. This compares with earnings from continuing operations of $95 million or 80 cents per share for the final quarter of 2007.
Fourth quarter revenues were $1.20 billion in 2008, compared with $1.15 billion in the same period last year. For the full year 2008, revenues were $4.43 billion, compared with $4.24 billion in 2007.
Wisconsin Energy's 2008 earnings from continuing operations totaled $359 million or $3.03 per share. In 2007, earnings from continuing operations were $336 million or $2.84 per share.
Retail sales of electricity in 2008 decreased by 2.2 percent as compared with the previous year. Use of electricity by residential customers was down by 1.6 percent in 2008 -- in large part because of cool summer weather. Commercial and industrial electric sales declined by 2.5 percent as compared with the prior year -- a reflection of the slowdown in the economy.
Positive factors contributing to the company's 2008 earnings were effective cost controls, strong customer demand for natural gas driven by the cold winter weather and income stemming from the commercial operation of the newest generating unit at Port Washington.
"I'm very pleased with our overall performance," said Gale Klappa, chairman, president and chief executive officer. "From customer satisfaction to network reliability to progress on our Power the Future plan, the company made great strides during the year. And in a tough economy, we posted solid financial results."
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, Feb. 3, 2009. The presentation will review 2008 fourth quarter and year-end 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 877-856-1955 up to 15 minutes before the call begins. International callers may dial 719-325-4774. The confirmation code is 5613449. Access also may be gained through the company's Web site (http://www.wisconsinenergy.com). Click on the icon for the "Year-end 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 fourth quarter and year-end performance. The materials will be available at 7:30 a.m. Central time on Feb. 3. 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 will be accessible through Feb. 10, 2009. Domestic callers should dial 888-203- 1112. International callers should dial 719-457-0820. The replay confirmation code is 5613449.
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), a component of the S&P 500, 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
Three Months Ended Year Ended
December 31 December 31
2008 2007 2008 2007
(Millions of Dollars, Except
Per Share Amounts)
Operating Revenues $1,200.6 $1,148.7 $4,431.0 $4,237.8
Operating Expenses
Fuel and purchased power 260.3 280.3 1,240.7 996.4
Cost of gas sold 379.5 342.3 1,221.3 1,052.7
Other operation and maintenance 338.3 243.8 1,361.5 1,135.3
Depreciation, decommissioning
and amortization 84.5 77.3 326.8 328.2
Property and revenue taxes 27.2 25.7 108.2 103.2
Total Operating Expenses 1,089.8 969.4 4,258.5 3,615.8
Amortization of Gain 84.7 6.5 488.1 6.5
Operating Income 195.5 185.8 660.6 628.5
Equity in Earnings of Transmission
Affiliate 13.8 11.0 51.8 43.1
Other Income (Expense), net (8.6) 1.1 17.0 48.9
Interest Expense, net 40.3 40.4 153.7 167.6
Income from Continuing
Operations Before Income Taxes 160.4 157.5 575.7 552.9
Income Taxes 60.3 62.9 217.1 216.4
Income from Continuing Operations 100.1 94.6 358.6 336.5
Income (Loss) from Discontinued
Operations, Net of Tax 0.3 (0.3) 0.5 (0.9)
Net Income $100.4 $94.3 $359.1 $335.6
Earnings Per Share (Basic)
Continuing operations $0.86 $0.81 $3.06 $2.88
Discontinued operations - - 0.01 (0.01)
Total Earnings Per Share (Basic) $0.86 $0.81 $3.07 $2.87
Earnings Per Share (Diluted)
Continuing operations $0.85 $0.80 $3.03 $2.84
Discontinued operations - - 0.01 (0.01)
Total Earnings Per Share (Diluted) $0.85 $0.80 $3.04 $2.83
Weighted Average Common
Shares Outstanding (Millions)
Basic 116.9 116.9 116.9 116.9
Diluted 117.9 118.4 118.2 118.5
Dividends Per Share of Common
Stock $0.27 $0.25 $1.08 $1.00
WISCONSIN ENERGY CORPORATION
CONSOLIDATED CONDENSED BALANCE SHEETS
December 31 December 31
2008 2007
(Millions of Dollars)
Assets
Net Property, Plant and Equipment $8,517.0 $7,681.2
Investments
Restricted cash 172.4 323.5
Equity investment in
transmission affiliate 276.3 238.5
Other 41.6 42.7
Total Investments 490.3 604.7
Current Assets
Cash and cash equivalents 32.5 27.4
Restricted cash 214.1 408.1
Accounts receivable 369.5 361.8
Accrued revenues 341.2 312.2
Materials, supplies and
inventories 344.7 361.3
Regulatory assets 82.5 164.7
Prepayments and other 308.6 214.2
Total Current Assets 1,693.1 1,849.7
Deferred Charges and Other Assets
Regulatory assets 1,261.1 961.6
Goodwill, net 441.9 441.9
Other 214.4 181.2
Total Deferred Charges and
Other Assets 1,917.4 1,584.7
Total Assets $12,617.8 $11,720.3
Capitalization and Liabilities
Capitalization
Common equity $3,336.9 $3,099.2
Preferred stock of subsidiary 30.4 30.4
Long-term debt 4,074.7 3,172.5
Total Capitalization 7,442.0 6,302.1
Current Liabilities
Long-term debt due currently 61.8 352.8
Short-term debt 602.3 900.7
Accounts payable 441.0 478.3
Regulatory liabilities 310.8 563.1
Other 318.9 207.9
Total Current Liabilities 1,734.8 2,502.8
Deferred Credits and Other
Liabilities
Regulatory liabilities 1,084.4 1,314.3
Deferred income taxes - long-term 814.0 551.7
Deferred revenue, net 545.4 347.7
Pension and other benefit
obligations 635.0 310.1
Other 362.2 391.6
Total Deferred Credits and
Other Liabilities 3,441.0 2,915.4
Total Capitalization and
Liabilities $12,617.8 $11,720.3
WISCONSIN ENERGY CORPORATION
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
Year Ended December 31
2008 2007
(Millions of Dollars)
Operating Activities
Net income $359.1 $335.6
Reconciliation to cash
Depreciation, decommissioning and
amortization 332.3 338.0
Deferred income taxes and
investment tax credits, net 296.6 20.4
Working capital and other (251.0) (161.5)
Cash Provided by Operating Activities 737.0 532.5
Investing Activities
Capital expenditures (1,137.1) (1,211.5)
Change in restricted cash 345.1 -
Unrestricted proceeds from asset sales 14.3 783.9
Other investing activities, net (129.2) (115.6)
Cash Used in Investing Activities (906.9) (543.2)
Financing Activities
Common stock issued
(repurchased), net (11.4) (31.7)
Dividends paid on common stock (126.3) (116.9)
Change in debt, net 316.8 148.4
Other financing activities, net (4.1) 1.3
Cash Provided by Financing Activities 175.0 1.1
Change in Cash 5.1 (9.6)
Cash at Beginning of Year 27.4 37.0
Cash at End of Year $32.5 $27.4
