MILWAUKEE, July 26, 2017 /PRNewswire/ -- WEC Energy Group
(NYSE: WEC) recorded net income of $199.1
million, or $0.63 per share,
for the second quarter of 2017 ‒ up from $181.4 million, or $0.57 per share, for the second quarter of
2016.
For the first six months of 2017, WEC Energy Group reported net
income of $555.7 million, or
$1.75 per share ‒ up from
$527.6 million, or $1.66 per share, for the first six months of
2016.
The company is reaffirming 2017 earnings guidance of
$3.06 to $3.12, with an expectation
of being in the upper end of the range.
Consolidated revenue was $1.6
billion for the second quarter of 2017, which was level with
the second quarter of 2016. Consolidated revenue was $3.9 billion for the first six months of 2017,
compared to $3.8 billion for the same
period in 2016.
"Our continued focus on controlling costs contributed to our
results in the second quarter," said Allen
Leverett, chief executive officer. "We achieved those
results while safely and reliably restoring power in the wake of
relentless storm activity."
At the end of June, the WEC Energy Group utilities were serving
approximately 9,000 more electric and 13,000 more natural gas
customers than they did at the same time a year ago.
For the first six months of 2017, retail deliveries of
electricity for the Wisconsin and
Michigan utilities ‒ excluding the
iron ore mines in Michigan's Upper
Peninsula ‒ decreased 0.9 percent compared to the same period last
year. Residential electricity usage decreased 1.1 percent.
Electricity consumption by small commercial and industrial
customers decreased 1.0 percent.
Electricity use by large commercial and industrial customers ‒
excluding the iron ore mines ‒ decreased 0.5 percent for the first
six months of 2017 compared to the same period last year.
On a weather-normal basis, retail deliveries of electricity –
excluding the iron ore mines – decreased 0.2 percent.
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 Wednesday, July
26. The call will review 2017 second-quarter earnings and
will discuss the company's outlook for the future.
All interested parties, including stockholders, news media and
general public, are invited to listen. Access the call at
844-840-1623 up to 15 minutes before it begins. The number for
international callers is 631-625-3204. The conference ID is
43642520.
Conference call access also is available at wecenergygroup.com.
Select 'Second Quarter Earnings Release and Conference Call' and
then select 'Webcast.' In conjunction with this earnings
announcement, WEC Energy Group will post on its website a package
of detailed financial information on its second-quarter
performance. The materials will be available at 6:30 a.m. Central time on Wednesday, July 26.
Replay
A replay will be available on the website and by phone after the
call. Access to the webcast replay will be available on the website
about two hours after the call. Access to a phone replay also will
be available approximately two hours after the call and remain
accessible through Aug. 8, 2017.
Domestic callers should dial 855-859-2056. International
callers should dial 404-537-3406. The replay conference ID is
43642520.
WEC Energy Group (NYSE: WEC), based in Milwaukee, is one of the nation's premier
energy companies, serving 4.4 million customers in Wisconsin, Illinois, Michigan and Minnesota.
The company's principal utilities are We Energies, Wisconsin
Public Service, Peoples Gas, North Shore Gas, Michigan Gas
Utilities, Minnesota Energy Resources and Upper Michigan Energy
Resources. The company's other major subsidiary, We Power,
designs, builds and owns electric generating plants.
WEC Energy Group (wecenergygroup.com), a component of the
S&P 500, has approximately $30 billion of assets, 8,500
employees and 55,000 stockholders of record.
Forward-looking statements
Certain statements contained in this press 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 are based upon
management's current expectations and are subject to risks and
uncertainties that could cause our actual results to differ
materially from those contemplated in the statements. Readers
are cautioned not to place undue reliance on these
statements. Forward-looking statements include, among other
things, statements concerning management's expectations and
projections regarding earnings and future results. In some
cases, forward-looking statements may be identified by reference to
a future period or periods or by the use of forward-looking
terminology such as "anticipates," "believes," "estimates,"
"expects," "forecasts," "guidance," "intends," "may," "objectives,"
"plans" "possible," "potential," "projects," "should," "targets,"
"will" or similar terms or variations of these terms.
Factors that could cause actual results to differ materially
from those contemplated in any forward-looking statements include,
but are not limited to: general economic conditions, including
business and competitive conditions in the company's service
territories; timing, resolution and impact of rate cases and other
regulatory decisions; the company's ability to continue to
successfully integrate the operations of its subsidiaries;
availability of the company's generating facilities and/or
distribution systems; unanticipated changes in fuel and purchased
power costs; key personnel changes; varying weather conditions;
continued industry consolidation; continued adoption of distributed
generation by the company's customers; energy conservation efforts;
cyber-security threats and data security breaches; construction
risks; equity and bond market fluctuations; changes in the
company's and its subsidiaries' ability to access the capital
markets; the impact of any legislative and regulatory changes,
including changes to environmental standards and tax laws;
political developments; current and future litigation and
regulatory investigations; changes in accounting standards; the
financial performance of the American Transmission Company;
goodwill and its possible impairment; and other factors described
under the heading "Factors Affecting Results, Liquidity and Capital
Resources" in Management's Discussion and Analysis of Financial
Condition and Results of Operations and under the headings
"Cautionary Statement Regarding Forward-Looking Information" and
"Risk Factors" contained in the company's Form 10-K for the year
ended Dec. 31, 2016 and in subsequent
reports filed with the Securities and Exchange Commission.
The company expressly disclaims any obligation to publicly update
or revise any forward-looking information.
Tables follow
WEC ENERGY GROUP,
INC.
|
|
CONDENSED
CONSOLIDATED INCOME STATEMENTS (Unaudited)
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
June 30
|
|
June
30
|
(in millions,
except per share amounts)
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Operating
revenues
|
|
$
|
1,631.5
|
|
|
$
|
1,602.0
|
|
|
$
|
3,936.0
|
|
|
$
|
3,796.8
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
Cost of
sales
|
|
541.8
|
|
|
508.3
|
|
|
1,482.9
|
|
|
1,347.2
|
|
Other operation and
maintenance
|
|
479.8
|
|
|
522.0
|
|
|
981.7
|
|
|
1,053.5
|
|
Depreciation and
amortization
|
|
197.7
|
|
|
190.0
|
|
|
392.3
|
|
|
377.9
|
|
Property and revenue
taxes
|
|
50.0
|
|
|
49.6
|
|
|
99.6
|
|
|
96.8
|
|
Total operating
expenses
|
|
1,269.3
|
|
|
1,269.9
|
|
|
2,956.5
|
|
|
2,875.4
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
362.2
|
|
|
332.1
|
|
|
979.5
|
|
|
921.4
|
|
|
|
|
|
|
|
|
|
|
Equity in earnings of
transmission affiliate
|
|
41.8
|
|
|
30.9
|
|
|
83.7
|
|
|
69.4
|
|
Other income,
net
|
|
13.1
|
|
|
32.4
|
|
|
28.8
|
|
|
65.1
|
|
Interest
expense
|
|
101.9
|
|
|
100.1
|
|
|
206.6
|
|
|
201.0
|
|
Other
expense
|
|
(47.0)
|
|
|
(36.8)
|
|
|
(94.1)
|
|
|
(66.5)
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
|
315.2
|
|
|
295.3
|
|
|
885.4
|
|
|
854.9
|
|
Income tax
expense
|
|
115.8
|
|
|
113.6
|
|
|
329.1
|
|
|
326.7
|
|
Net
income
|
|
199.4
|
|
|
181.7
|
|
|
556.3
|
|
|
528.2
|
|
|
|
|
|
|
|
|
|
|
Preferred stock
dividends of subsidiary
|
|
0.3
|
|
|
0.3
|
|
|
0.6
|
|
|
0.6
|
|
Net income
attributed to common shareholders
|
|
$
|
199.1
|
|
|
$
|
181.4
|
|
|
$
|
555.7
|
|
|
$
|
527.6
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.63
|
|
|
$
|
0.57
|
|
|
$
|
1.76
|
|
|
$
|
1.67
|
|
Diluted
|
|
$
|
0.63
|
|
|
$
|
0.57
|
|
|
$
|
1.75
|
|
|
$
|
1.66
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding
|
|
|
|
|
|
|
|
|
Basic
|
|
315.6
|
|
|
315.6
|
|
|
315.6
|
|
|
315.6
|
|
Diluted
|
|
317.4
|
|
|
317.0
|
|
|
317.4
|
|
|
317.0
|
|
|
|
|
|
|
|
|
|
|
Dividends per
share of common stock
|
|
$
|
0.5200
|
|
|
$
|
0.4950
|
|
|
$
|
1.0400
|
|
|
$
|
0.9900
|
|
WEC ENERGY GROUP,
INC.
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS (Unaudited)
(in millions,
except share and per share amounts)
|
|
June 30,
2017
|
|
December 31,
2016
|
Assets
|
|
|
|
|
Current
assets
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
36.5
|
|
|
$
|
37.5
|
|
Accounts receivable
and unbilled revenues, net of reserves of $111.6 and $108.0,
respectively
|
|
1,004.3
|
|
|
1,241.7
|
|
Materials, supplies,
and inventories
|
|
510.0
|
|
|
587.6
|
|
Prepayments
|
|
181.6
|
|
|
204.4
|
|
Other
|
|
47.3
|
|
|
97.5
|
|
Current
assets
|
|
1,779.7
|
|
|
2,168.7
|
|
|
|
|
|
|
Long-term
assets
|
|
|
|
|
Property, plant, and
equipment, net of accumulated depreciation of $8,433.2 and
$8,214.6, respectively
|
|
20,524.3
|
|
|
19,915.5
|
|
Regulatory
assets
|
|
3,108.4
|
|
|
3,087.9
|
|
Equity investment in
transmission affiliate
|
|
1,544.0
|
|
|
1,443.9
|
|
Goodwill
|
|
3,053.5
|
|
|
3,046.2
|
|
Other
|
|
549.7
|
|
|
461.0
|
|
Long-term
assets
|
|
28,779.9
|
|
|
27,954.5
|
|
Total
assets
|
|
$
|
30,559.6
|
|
|
$
|
30,123.2
|
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Short-term
debt
|
|
$
|
774.8
|
|
|
$
|
860.2
|
|
Current portion of
long-term debt
|
|
708.4
|
|
|
157.2
|
|
Accounts
payable
|
|
724.1
|
|
|
861.5
|
|
Accrued payroll and
benefits
|
|
140.0
|
|
|
163.8
|
|
Other
|
|
440.0
|
|
|
388.9
|
|
Current
liabilities
|
|
2,787.3
|
|
|
2,431.6
|
|
|
|
|
|
|
Long-term
liabilities
|
|
|
|
|
Long-term
debt
|
|
8,799.7
|
|
|
9,158.2
|
|
Deferred income
taxes
|
|
5,416.1
|
|
|
5,146.6
|
|
Deferred revenue,
net
|
|
554.6
|
|
|
566.2
|
|
Regulatory
liabilities
|
|
1,574.0
|
|
|
1,563.8
|
|
Environmental
remediation liabilities
|
|
622.6
|
|
|
633.6
|
|
Pension and OPEB
obligations
|
|
451.0
|
|
|
498.6
|
|
Other
|
|
1,171.1
|
|
|
1,164.4
|
|
Long-term
liabilities
|
|
18,589.1
|
|
|
18,731.4
|
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
|
Common
shareholders' equity
|
|
|
|
|
Common stock – $.01
par value; 325,000,000 shares authorized; 315,576,571 and
315,614,941 shares
outstanding, respectively
|
|
3.2
|
|
|
3.2
|
|
Additional paid in
capital
|
|
4,290.1
|
|
|
4,309.8
|
|
Retained
earnings
|
|
4,857.0
|
|
|
4,613.9
|
|
Accumulated other
comprehensive income
|
|
2.5
|
|
|
2.9
|
|
Common
shareholders' equity
|
|
9,152.8
|
|
|
8,929.8
|
|
|
|
|
|
|
Preferred stock of
subsidiary
|
|
30.4
|
|
|
30.4
|
|
Total liabilities
and equity
|
|
$
|
30,559.6
|
|
|
$
|
30,123.2
|
|
WEC ENERGY GROUP,
INC.
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
|
|
Six Months
Ended
|
|
|
June
30
|
(in
millions)
|
|
2017
|
|
2016
|
Operating
Activities
|
|
|
|
|
Net income
|
|
$
|
556.3
|
|
|
$
|
528.2
|
|
Reconciliation to
cash provided by operating activities
|
|
|
|
|
Depreciation and
amortization
|
|
392.3
|
|
|
386.0
|
|
Deferred income taxes
and investment tax credits, net
|
|
274.6
|
|
|
307.1
|
|
Contributions and
payments related to pension and OPEB plans
|
|
(111.5)
|
|
|
(19.5)
|
|
Equity income in
transmission affiliate, net of distributions
|
|
(14.5)
|
|
|
(22.7)
|
|
Change in
–
|
|
|
|
|
Accounts receivable
and unbilled revenues
|
|
247.3
|
|
|
130.1
|
|
Materials, supplies,
and inventories
|
|
77.9
|
|
|
193.5
|
|
Other current
assets
|
|
15.6
|
|
|
66.7
|
|
Accounts
payable
|
|
(114.0)
|
|
|
(112.4)
|
|
Other current
liabilities
|
|
18.3
|
|
|
(139.0)
|
|
Other, net
|
|
(74.3)
|
|
|
(93.9)
|
|
Net cash provided
by operating activities
|
|
1,268.0
|
|
|
1,224.1
|
|
|
|
|
|
|
Investing
Activities
|
|
|
|
|
Capital
expenditures
|
|
(790.0)
|
|
|
(618.7)
|
|
Acquisition of
Bluewater
|
|
(226.0)
|
|
|
—
|
|
Capital contributions
to transmission affiliate
|
|
(50.5)
|
|
|
(12.1)
|
|
Proceeds from the
sale of assets and businesses
|
|
20.7
|
|
|
161.0
|
|
Withdrawal of
restricted cash from Rabbi trust for qualifying payments
|
|
17.2
|
|
|
22.5
|
|
Other, net
|
|
4.7
|
|
|
(1.8)
|
|
Net cash used in
investing activities
|
|
(1,023.9)
|
|
|
(449.1)
|
|
|
|
|
|
|
Financing
Activities
|
|
|
|
|
Exercise of stock
options
|
|
15.6
|
|
|
35.0
|
|
Purchase of common
stock
|
|
(39.7)
|
|
|
(94.2)
|
|
Dividends paid on
common stock
|
|
(328.3)
|
|
|
(312.4)
|
|
Issuance of long-term
debt
|
|
210.0
|
|
|
—
|
|
Retirement of
long-term debt
|
|
(14.6)
|
|
|
(241.8)
|
|
Change in short-term
debt
|
|
(85.4)
|
|
|
(167.2)
|
|
Other, net
|
|
(2.7)
|
|
|
(12.1)
|
|
Net cash used in
financing activities
|
|
(245.1)
|
|
|
(792.7)
|
|
|
|
|
|
|
Net change in cash
and cash equivalents
|
|
(1.0)
|
|
|
(17.7)
|
|
Cash and cash
equivalents at beginning of period
|
|
37.5
|
|
|
49.8
|
|
Cash and cash
equivalents at end of period
|
|
$
|
36.5
|
|
|
$
|
32.1
|
|
View original
content:http://www.prnewswire.com/news-releases/wec-energy-group-posts-second-quarter-results-300493822.html
SOURCE WEC Energy Group