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WEC Energy Group posts first-quarter results

MILWAUKEE, May 2, 2017 /PRNewswire/ -- WEC Energy Group Inc. (NYSE: WEC) recorded net income of $356.6 million, or $1.12 per share, for the first quarter of 2017 - up from $346.2 million, or $1.09 per share, for the first quarter of 2016.

Consolidated revenue for the first quarter of 2017 totaled $2.3 billion, compared to $2.2 billion for the first quarter of 2016.

"Our continued focus on financial discipline and operating efficiencies contributed to a solid first quarter," said Allen Leverett, chief executive officer.

At the end of March, WEC Energy Group's utilities were serving approximately 8,000 more electric and 23,000 more natural gas customers than they did the same time a year ago.

Retail deliveries of electricity for the Wisconsin and Michigan utilities ‒ excluding the iron ore mines in Michigan's Upper Peninsula ‒ decreased 1.1 percent from last year's first quarter. Residential use of electricity was down 2.1 percent. Consumption of electricity by small commercial and industrial customers was flat quarter over quarter.

Electricity use by large commercial and industrial customers ‒ excluding the iron ore mines ‒ decreased 1.2 percent.

On a weather-normal basis, retail deliveries of electricity ‒ excluding the iron ore mines - increased 0.6 percent, quarter over quarter.

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, May 2. The call will review 2017 first-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 99414469.

Conference call access also is available at wecenergygroup.com. Select 'First 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 first-quarter performance. The materials will be available at 6:30 a.m. Central time on Tuesday, May 2.

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 May 15, 2017. Domestic callers should dial 855-859-2056. International callers should dial 404-537-3406. The replay conference ID is 99414469.

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, 8,000 employees and 55,000 stockholders of record.

Tables follow

WEC ENERGY GROUP, INC.


CONDENSED CONSOLIDATED INCOME STATEMENTS (Unaudited)


Three Months Ended



March 31

(in millions, except per share amounts)


2017


2016

Operating revenues


$

2,304.5



$

2,194.8







Operating expenses





Cost of sales


941.1



838.9


Other operation and maintenance


501.9



531.5


Depreciation and amortization


194.6



187.9


Property and revenue taxes


49.6



47.2


Total operating expenses


1,687.2



1,605.5







Operating income


617.3



589.3







Equity in earnings of transmission affiliate


41.9



38.5


Other income, net


15.7



32.7


Interest expense


104.7



100.9


Other expense


(47.1)



(29.7)







Income before income taxes


570.2



559.6


Income tax expense


213.3



213.1


Net income


356.9



346.5







Preferred stock dividends of subsidiary


0.3



0.3


Net income attributed to common shareholders


$

356.6



$

346.2







Earnings per share





Basic


$

1.13



$

1.10


Diluted


$

1.12



$

1.09







Weighted average common shares outstanding





Basic


315.6



315.7


Diluted


317.2



317.1







Dividends per share of common stock


$

0.5200



$

0.4950


 

WEC ENERGY GROUP, INC.


CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)

(in millions, except share and per share amounts)


March 31, 2017


December 31,
2016

Assets





Current assets





Cash and cash equivalents


$

45.7



$

37.5


Accounts receivable and unbilled revenues, net of reserves of $123.1 and $108.0, respectively


1,191.4



1,241.7


Materials, supplies, and inventories


417.1



587.6


Prepayments


161.8



204.4


Other


39.3



97.5


Current assets


1,855.3



2,168.7







Long-term assets





Property, plant, and equipment, net of accumulated depreciation of $8,312.8 and $8,214.6, respectively


19,990.2



19,915.5


Regulatory assets


3,084.1



3,087.9


Equity investment in transmission affiliate


1,513.3



1,443.9


Goodwill


3,046.2



3,046.2


Other


527.5



461.0


Long-term assets


28,161.3



27,954.5


Total assets


$

30,016.6



$

30,123.2







Liabilities and Equity










Current liabilities





Short-term debt


$

670.4



$

860.2


Current portion of long-term debt


158.0



157.2


Accounts payable


582.3



861.5


Accrued payroll and benefits


107.5



163.8


Accrued interest


115.1



67.0


Other


421.3



321.9


Current liabilities


2,054.6



2,431.6







Long-term liabilities





Long-term debt


9,143.6



9,158.2


Deferred income taxes


5,287.4



5,146.6


Deferred revenue, net


561.0



566.2


Regulatory liabilities


1,563.4



1,563.8


Environmental remediation liabilities


630.7



633.6


Pension and OPEB obligations


458.9



498.6


Other


1,161.0



1,164.4


Long-term liabilities


18,806.0



18,731.4







Commitments and contingencies










Common shareholders' equity





Common stock – $.01 par value; 325,000,000 shares authorized; 315,579,222 and 315,614,941 shares outstanding, respectively


3.2



3.2


Additional paid in capital


4,297.7



4,309.8


Retained earnings


4,822.0



4,613.9


Accumulated other comprehensive income


2.7



2.9


Common shareholders' equity


9,125.6



8,929.8







Preferred stock of subsidiary


30.4



30.4


Total liabilities and equity


$

30,016.6



$

30,123.2












 

WEC ENERGY GROUP, INC.




CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)


Three Months Ended




March 31


(in millions)


2017


2016


Operating Activities





Net income


$

356.9



$

346.5


Reconciliation to cash provided by operating activities





Depreciation and amortization


194.6



191.9


Deferred income taxes and investment tax credits, net


150.2



214.6


Contributions and payments related to pension and OPEB plans


(106.0)



(15.1)


Equity income in transmission affiliate, net of distributions


(6.7)



(23.4)


Change in –





Accounts receivable and unbilled revenues


55.0



(48.6)


Materials, supplies, and inventories


170.5



217.2


Other current assets


41.2



(63.7)


Accounts payable


(212.7)



(123.7)


Other current liabilities


90.8



56.7


Other, net


(19.2)



(56.5)


Net cash provided by operating activities


714.6



695.9







Investing Activities





Capital expenditures


(329.7)



(312.0)


Capital contributions to transmission affiliate


(27.6)



(9.0)


Proceeds from the sale of assets and businesses


13.1



106.5


Withdrawal of restricted cash from Rabbi trust for qualifying payments


16.1



21.0


Other, net


2.5



5.1


Net cash used in investing activities


(325.6)



(188.4)







Financing Activities





Exercise of stock options


5.9



21.4


Purchase of common stock


(20.2)



(59.6)


Dividends paid on common stock


(164.1)



(156.2)


Retirement of long-term debt


(12.0)



(139.4)


Change in short-term debt


(189.8)



(198.6)


Other, net


(0.6)



9.8


Net cash used in financing activities


(380.8)



(522.6)







Net change in cash and cash equivalents


8.2



(15.1)


Cash and cash equivalents at beginning of period


37.5



49.8


Cash and cash equivalents at end of period


$

45.7



$

34.7













 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/wec-energy-group-posts-first-quarter-results-300449056.html

SOURCE WEC Energy Group Inc.

Brian Manthey (news media), 414-221-4444, brian.manthey@we-energies.com or Beth Straka (investment community) 414-221-4639, beth.straka@wecenergygroup.com