Wisconsin Energy Corporation Posts Higher Results From Continuing Oper

MILWAUKEE, April 28 /PRNewswire-FirstCall/ -- Wisconsin Energy today reported net income from continuing operations of $90 million or 76 cents per share for the first quarter of 2005. This compares with earnings of $84 million or 69 cents per share from continuing operations in the same period of 2004.

In last year's first quarter, the company recorded a charge of 3 cents per share for costs related to early redemption of trust preferred securities. Excluding the effect of this item, adjusted earnings in the first quarter of 2004 were 72 cents per share.

Results in the first quarter of 2005 were driven in part by a significant decrease in debt levels at Wisconsin Energy and continued cost control throughout its utility operations. These positive factors were partially offset by sharply higher fuel costs and by greater reliance on natural gas as a fuel to produce electricity.

First quarter 2005 revenues were $1.1 billion compared with $1.07 billion in the first quarter last year.

Residential use of electricity was down 2.5 percent in this year's first quarter, reflecting milder winter temperatures as compared to last year. Use of electricity by commercial and industrial customers declined 0.5 percent -- in part because there was one less day in the first quarter of 2005 than in the first quarter of 2004.

"Overall, we delivered strong, positive results as we continued to focus on operating efficiency and customer satisfaction in our core business," said Gale Klappa, Wisconsin Energy's chairman, president and chief executive officer.

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 Thursday, April 28, 2005. The presentation will review 2005 first 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 (877) 502-9272 up to 15 minutes before the call begins. There is no pass code required. Access also may be gained through the company's Web site ( http://www.wisconsinenergy.com/ ) by clicking on the icon for the "First Quarter 2005 Earnings Release & Conference Call." In conjunction with this earnings announcement, Wisconsin Energy has posted on its Web site a package of detailed financial information on its first quarter performance. The materials will be available at 7:30 a.m. Central time on April 28. 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. Dial (888) 203-1112. The pass code is 6745843.

Non-GAAP Earnings Measures

Adjusted earnings (non-GAAP earnings), which generally exclude non-operational items as well as one-time charges or credits that are not associated with the company's ongoing operations, are provided as a complement to earnings presented in accordance with GAAP. The excluded items are not indicative of the company's operating performance. Therefore, we believe that the presentation of adjusted earnings from operations is relevant and useful to investors to understand Wisconsin Energy's operating performance. Management uses such measures internally to evaluate the company's performance and manage its operations.

Wisconsin Energy Corporation , based in Milwaukee, is a Fortune 500 energy company serving more than one million electric customers in Wisconsin and Michigan's Upper Peninsula and more than one million natural gas customers in Wisconsin. The company's principal utilities are We Energies and Edison Sault Electric. The company's nonutility businesses include energy development, recycling and renewable energy, and real estate development.

One of the Midwest's premier energy companies, Wisconsin Energy Corporation ( http://www.wisconsinenergy.com/ ) has approximately 5,600 employees, 58,000 registered stockholders and more than $9 billion of assets.

Tables Follow WISCONSIN ENERGY CORPORATION CONSOLIDATED CONDENSED INCOME STATEMENTS (Unaudited) Three Months Ended March 31 2005 2004 (Millions of Dollars) Operating Revenues $1,099 $1,065 Operating Expenses Fuel and purchased power 158 144 Cost of gas sold 411 386 Other operation and maintenance 259 254 Depreciation, decommissioning and amortization 82 76 Property and revenue taxes 23 22 Total Operating Expenses 933 882 Operating Income 166 183 Other Income, Net 18 5 Interest Expense 42 54 Income From Continuing Operations Before Income Taxes 142 134 Income Taxes 52 50 Income From Continuing Operations 90 84 Income From Discontinued Operations, Net of Tax - 7 Net Income $90 $91 Earnings Per Share (Basic) Continuing operations $0.77 $0.70 Discontinued operations - 0.07 Total Earnings Per Share (Basic) $0.77 $0.77 Earnings Per Share (Diluted) Continuing operations $0.76 $0.69 Discontinued operations - 0.07 Total Earnings Per Share (Diluted) $0.76 $0.76 Weighted Average Common Shares Outstanding (Millions) Basic 117.0 118.5 Diluted 118.3 120.2 Dividends Per Share of Common Stock $0.22 $0.20 WISCONSIN ENERGY CORPORATION SUMMARY OF CONSOLIDATED CONDENSED EARNINGS (Unaudited) Three Months Ended March 31 2005 2004 (Millions of Dollars) Operating Income Utility Energy Segment $171 $187 Non-Utility Energy Segment (1) (2) Corporate and Other (4) (2) Total Operating Income 166 183 Other Income, Net 18 5 Interest Expense 42 54 Income From Continuing Operations Before Income Taxes 142 134 Income Taxes 52 50 Income From Continuing Operations 90 84 Income From Discontinued Operations, Net of Tax - 7 Net Income $90 $91 WISCONSIN ENERGY CORPORATION CONSOLIDATED CONDENSED BALANCE SHEETS (Unaudited) March 31, 2005 December 31, 2004 (Millions of Dollars) Assets Property, Plant and Equipment In service $8,230 $8,204 Accumulated depreciation (3,140) (3,107) 5,090 5,097 Construction work in progress 705 602 Leased facilities, net 97 99 Nuclear fuel, net 82 85 Net Property, Plant and Equipment 5,974 5,883 Investments 1,008 1,025 Current Assets Cash and cash equivalents 19 36 Accounts receivable 466 349 Accrued revenues 188 245 Materials, supplies and inventories 209 407 Assets held for sale 30 30 Other 120 137 Total Current Assets 1,032 1,204 Deferred Charges and Other Assets Regulatory assets 861 849 Goodwill, net 442 442 Other 173 162 Total Deferred Charges and Other Assets 1,476 1,453 Total Assets $9,490 $9,565 Capitalization and Liabilities Capitalization Common equity $2,547 $2,492 Preferred stock of subsidiary 30 30 Long-term debt 3,231 3,240 Total Capitalization 5,808 5,762 Current Liabilities Long-term debt due currently 100 101 Short-term debt 155 338 Accounts payable 259 310 Accrued liabilities 128 114 Other 166 129 Total Current Liabilities 808 992 Deferred Credits and Other Liabilities Regulatory liabilities 920 922 Asset retirement obligations 766 762 Deferred income taxes - long-term 571 530 Other 617 597 Total Deferred Credits and Other Liabilities 2,874 2,811 Total Capitalization and Liabilities $9,490 $9,565 WISCONSIN ENERGY CORPORATION CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) Three Months Ended March 31 2005 2004 (Millions of Dollars) Operating Activities Net income $90 $91 Income from discontinued operations, net of tax - (7) Reconciliation to cash Depreciation, decommissioning and amortization 89 88 Deferred income taxes and investment tax credits, net 29 22 Working capital and other 169 198 Cash Provided by Operating Activities 377 392 Investing Activities Capital expenditures (169) (134) Other investing activities 6 - Cash Used in Investing Activities (163) (134) Financing Activities Common stock issued (purchased), net (11) (19) Dividends paid on common stock (26) (24) Change in debt, net (194) (225) Cash Used in Financing Activities (231) (268) Change in Cash From Continuing Operations (17) (10) Cash at Beginning of Period 36 28 Cash at End of Period $19 $18 Supplemental Information - Cash Paid For Interest (net of amount capitalized) $12 $21 Income taxes (net of refunds) $15 $16