WEC Energy Group posts third quarter results

MILWAUKEE, Nov. 4, 2015 /PRNewswire/ -- WEC Energy Group Inc. (NYSE: WEC) recorded net income based on Generally Accepted Accounting Principles (GAAP) of $182.5 million or 58 cents a share for the third quarter of 2015.  WEC Energy Group was formed on June 29 when Wisconsin Energy completed the acquisition of Integrys. 

Wisconsin Energy's stand-alone earnings for the third quarter, excluding acquisition costs, increased to 61 cents a share.  In the corresponding quarter a year ago, Wisconsin Energy's stand-alone earnings, adjusted for acquisition costs, were 57 cents a share.

Systemwide revenue for the third quarter of 2015 totaled $1.70 billion.  Wisconsin Energy's stand-alone third quarter revenue, which excludes $0.63 billion of revenue from Integrys, was $1.07 billion.  This compares with revenue of $1.03 billion in the third quarter of 2014. 

"Since the close of the acquisition at the end of the second quarter, we've made significant progress in focusing our six operating utilities on world-class reliability, customer satisfaction, and financial discipline," said Gale Klappa, chairman and chief executive.

"I'm very pleased with our post-acquisition work, and we remain highly confident that the merger will deliver tangible benefits to our customers, to the communities we serve, and to the stockholders who count on us to create value," Klappa added.

For the first nine months of 2015, WEC Energy Group reported net income based on Generally Accepted Accounting Principles of $459.2 million or $1.78 a share.

Wisconsin Energy's stand-alone earnings for the first nine months of this year, excluding acquisition costs, were $2.10 a share.  For the first nine months of 2014, Wisconsin Energy's stand-alone earnings, adjusted for acquisition costs, were $2.08 a share.

"We delivered solid results through an unusual pattern of summer weather –  a cool July, a cool August, followed by an unseasonably warm September," Klappa said. 

At the end of September 2015, We Energies was serving approximately 6,000 more electric customers and 10,000 more natural gas customers than a year ago. 

To facilitate comparison with prior periods, the information on electricity sales that follows for the third quarter of 2015 reflects data for We Energies customers only. 

Residential use of electricity rose by 11.5 percent over last year's third quarter.  Consumption of electricity by small commercial and industrial customers grew by 1.6 percent.  Electricity use by large commercial and industrial customers – excluding the iron ore mines in Michigan's Upper Peninsula – increased by 0.6 percent.

On a weather normal basis, retail sales of electricity – excluding the iron ore mines – were essentially level with sales in last year's third quarter.

Conference call

A conference call is scheduled at 1 p.m. Central time, Nov. 4.  The presentation will review 2015 third-quarter earnings and will discuss the company's outlook for the future.

All interested parties, including stockholders, news media and the general public, are invited to listen to the presentation.  The conference call may be accessed by dialing 866-439-9410 up to 15 minutes before the call begins.  International callers may dial 706-643-5658.  The conference ID is 31622849. 

Access also may be gained through the company's website (wecenergygroup.com).  Select 'Third 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 third quarter performance.  The materials will be available at 6:30 a.m. Central time, Nov. 4.

Replay

A replay will be available on the website and by phone after the presentation.  Access to the webcast replay will be available on the website about two hours after the presentation.  Access to a phone replay also will be available approximately two hours after the presentation and remain accessible through Nov. 17, 2015.  Domestic callers should dial 855-859-2056. International callers should dial 404-537-3406.  The replay conference ID is 31622849.

Non-GAAP earnings measures

We have provided adjusted earnings (non-GAAP earnings) in this press release as a complement to, and not as an alternative to, reported earnings presented in accordance with GAAP.  The adjusted stand-alone earnings of Wisconsin Energy exclude the results of operations of Integrys Energy Group and its subsidiaries and costs related to the acquisition of Integrys, as well as the additional WEC Energy Group shares of common stock that were issued as part of the acquisition.  Costs related to the acquisition of Integrys are not indicative of the company's operating performance. 

Institutional investors have informed management on several occasions that, for the remainder of 2015, they are interested in, and focused on, the performance of legacy Wisconsin Energy and subsidiaries, excluding the impact of the Integrys acquisition.  In addition, the earnings guidance and performance expectations previously provided by the company were based upon legacy Wisconsin Energy's operations.  Therefore, we believe that the presentation of adjusted earnings is relevant and useful to investors.  Management also uses such measures internally to evaluate the company's performance for 2015.

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, and Minnesota 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 $29 billion of assets, 9,000 employees and 60,000 stockholders of record.

Tables follow

SOURCE WEC Energy Group Inc.

Related Links

http://www.wecenergygroup.com