Last10K.com

Wec Energy Group, Inc. (WEC) SEC Filing 8-K Material Event for the period ending Monday, May 4, 2020

Wec Energy Group, Inc.

CIK: 783325 Ticker: WEC
Exhibit 99.1

wecenergylogoa16.jpg
From:    Brian Manthey (news media)
414-221-4444
brian.manthey@wecenergygroup.com

Beth Straka (investment community)
414-221-4639
beth.straka@wecenergygroup.com

May 4, 2020            

WEC Energy Group reports first-quarter results

MILWAUKEE – WEC Energy Group (NYSE: WEC) today reported net income of $452.5 million, or $1.43 per share, for the first quarter of 2020 – up from $420.1 million, or $1.33 per share, for the first quarter of 2019.

Consolidated revenues totaled $2.1 billion, down $268.8 million from last year's first quarter.

"We delivered another solid quarter, despite mild winter temperatures and an economic downturn that began in late March as businesses closed to slow the spread of COVID-19," said Gale Klappa, executive chairman. "In the months ahead, we will continue to focus on employee safety and on executing the fundamentals of our business – world-class reliability, customer satisfaction and financial discipline." He added, "Our team is experienced and resilient. I'm confident we'll shine through the challenges ahead."

For the quarter, natural gas deliveries in Wisconsin – excluding natural gas used for power generation – fell by 10.6 percent compared to the first quarter of 2019. On a weather-normal basis, natural gas deliveries were 1.1 percent lower.

Retail deliveries of electricity – excluding the iron ore mine in Michigan’s Upper Peninsula – decreased by 3.4 percent in the first quarter of 2020 compared to the first quarter last year.

Residential electricity use declined by 4.6 percent. Electricity consumption by small commercial and industrial customers was 2.6 percent lower.

Electricity use by large commercial and industrial customers – excluding the iron ore mine – fell by 3.1 percent.

On a weather-normal basis, retail deliveries of electricity – excluding the iron ore mine – fell by 2 percent.

1

Exhibit 99.1


At the end of March, WEC Energy Group utilities were serving approximately 10,000 more electric and 12,000 more natural gas customers compared to the same time a year ago.

The company is reaffirming its earnings guidance for 2020 in the range of $3.71 to $3.75 per share.

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, Monday, May 4. The call will review 2020 first-quarter earnings and the company’s outlook for the future.

All interested parties, including stockholders, news media and the general public, are invited to listen. Access the call at 877-683-2228 up to 15 minutes before it begins. The number for international callers is 647-689-5446. The conference ID is 7898148.

Conference call access also is available at wecenergygroup.com. Under 'Webcasts,' select 'Q1 Earnings.' 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, Monday, May 4.

Replay

A replay will be available on the website and by phone. 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 18, 2020. Domestic callers should dial 800-585-8367. International callers should dial 416-621-4642. The replay conference ID is 7898148.

WEC Energy Group (NYSE: WEC), based in Milwaukee, is one of the nation’s premier energy companies, serving 4.5 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) is a Fortune 500 company and a component of the S&P 500. The company has approximately 45,000 stockholders of record, 7,500 employees and $35 billion of assets.

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-

2

Exhibit 99.1

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; the impact of the COVID-19 pandemic; 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 restructuring and consolidation; continued advances in, and adoption of, new technologies that produce power or reduce power consumption; energy conservation efforts; the company’s ability to successfully acquire and/or dispose of assets and projects; 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 tax reform and any other legislative and regulatory changes, including changes to environmental standards; political developments; current and future litigation and regulatory investigations; changes in accounting standards; the financial performance of American Transmission Co. as well as projects in which the company’s energy infrastructure business invests; the ability of the company to obtain additional generating capacity at competitive prices; 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, 2019, 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.

The global outbreak of COVID-19 is currently impacting countries, communities, supply chains and markets, and has caused many states, including those states in which we operate, to issue shelter-in-place orders. The extent to which the COVID-19 pandemic may affect us depends on factors beyond our knowledge or control. Therefore, we are currently unable to determine what impact the pandemic may ultimately have on our business plans and operations, liquidity, financial condition, and results of operations, but will continue to monitor COVID-19 developments.


Tables follow


3

Exhibit 99.1

WEC ENERGY GROUP, INC.

CONDENSED CONSOLIDATED INCOME STATEMENTS (Unaudited)
 
Three Months Ended
 
 
March 31
(in millions, except per share amounts)
 
2020
 
2019
Operating revenues
 
$
2,108.6

 
$
2,377.4

 
 
 
 
 
Operating expenses
 
 
 
 
Cost of sales
 
734.7

 
1,009.6

Other operation and maintenance
 
455.7

 
550.6

Depreciation and amortization
 
239.1

 
226.4

Property and revenue taxes
 
52.5

 
48.0

Total operating expenses
 
1,482.0

 
1,834.6

 
 
 
 
 
Operating income
 
626.6

 
542.8

 
 
 
 
 
Equity in earnings of transmission affiliates
 
39.8

 
36.1

Other income, net
 
5.6

 
30.9

Interest expense
 
129.4

 
124.4

Other expense
 
(84.0
)
 
(57.4
)
 
 
 
 
 
Income before income taxes
 
542.6

 
485.4

Income tax expense
 
90.0

 
65.0

Net income
 
452.6

 
420.4

 
 
 
 
 
Preferred stock dividends of subsidiary
 
0.3

 
0.3

Net loss attributed to noncontrolling interests
 
0.2

 

Net income attributed to common shareholders
 
$
452.5

 
$
420.1

 
 
 
 
 
Earnings per share
 
 
 
 
Basic
 
$
1.43

 
$
1.33

Diluted
 
$
1.43

 
$
1.33

 
 
 
 
 
Weighted average common shares outstanding
 
 
 
 
Basic
 
315.4

 
315.5

Diluted
 
316.7

 
316.7

 
 
 
 
 
Dividends per share of common stock
 
$
0.6325

 
$
0.5900



4

Exhibit 99.1

WEC ENERGY GROUP, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(in millions, except share and per share amounts)
 
March 31, 2020
 
December 31, 2019
Assets
 
 
 
 
Current assets
 
 
 
 
Cash and cash equivalents
 
$
15.4

 
$
37.5

Accounts receivable and unbilled revenues, net of reserves of $164.8 and $140.0, respectively
 
1,176.9

 
1,176.5

Materials, supplies, and inventories
 
391.1

 
549.8

Prepayments
 
200.0

 
261.8

Other
 
61.9

 
68.0

Current assets
 
1,845.3

 
2,093.6

 
 
 
 
 
Long-term assets
 
 
 
 
Property, plant, and equipment, net of accumulated depreciation and amortization of $9,042.3 and $8,878.7, respectively
 
23,797.1

 
23,620.1

Regulatory assets
 
3,566.1

 
3,506.7

Equity investment in transmission affiliates
 
1,717.7

 
1,720.8

Goodwill
 
3,052.8

 
3,052.8

Other
 
853.2

 
957.8

Long-term assets
 
32,986.9

 
32,858.2

Total assets
 
$
34,832.2

 
$
34,951.8

 
 
 
 
 
Liabilities and Equity
 
 
 
 
 
 
 
 
 
Current liabilities
 
 
 
 
Short-term debt
 
$
827.2

 
$
830.8

Current portion of long-term debt
 
694.3

 
693.2

Accounts payable
 
597.9

 
908.1

Accrued payroll and benefits
 
128.6

 
199.8

Amounts refundable to customers
 
155.8

 
87.6

Other
 
443.9

 
463.2

Current liabilities
 
2,847.7

 
3,182.7

 
 
 
 
 
Long-term liabilities
 
 
 
 
Long-term debt
 
11,194.7

 
11,211.0

Deferred income taxes
 
3,870.0

 
3,769.3

Deferred revenue, net
 
428.5

 
497.1

Regulatory liabilities
 
3,987.1

 
3,992.8

Environmental remediation liabilities
 
589.4

 
589.2

Pension and OPEB obligations
 
324.2

 
326.2

Other
 
1,106.0

 
1,128.9

Long-term liabilities
 
21,499.9

 
21,514.5

 
 
 
 
 
Commitments and contingencies
 
 
 
 
 
 
 
 
 
Common shareholders' equity
 
 
 
 
Common stock – $0.01 par value; 325,000,000 shares authorized; 315,434,531 shares outstanding
 
3.2

 
3.2

Additional paid in capital
 
4,167.3

 
4,186.6

Retained earnings
 
6,180.7

 
5,927.7

Accumulated other comprehensive loss
 
(7.1
)
 
(4.1
)
Common shareholders' equity
 
10,344.1

 
10,113.4

 
 
 
 
 
Preferred stock of subsidiary
 
30.4

 
30.4

Noncontrolling interests
 
110.1

 
110.8

Total liabilities and equity
 
$
34,832.2

 
$
34,951.8



5

Exhibit 99.1

WEC ENERGY GROUP, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
 
Three Months Ended
 
 
March 31
(in millions)
 
2020
 
2019
Operating activities
 
 
 
 
Net income
 
$
452.6

 
$
420.4

Reconciliation to cash provided by operating activities
 
 
 
 
Depreciation and amortization
 
239.1

 
226.4

Deferred income taxes and investment tax credits, net
 
92.1

 
17.2

Contributions and payments related to pension and OPEB plans
 
(3.7
)
 
(4.2
)
Change in –
 
 
 
 
Accounts receivable and unbilled revenues
 
(3.5
)
 
(124.3
)
Materials, supplies, and inventories
 
158.7

 
218.3

Other current assets
 
65.4

 
125.1

Accounts payable
 
(250.1
)
 
(204.3
)
Other current liabilities
 
(27.7
)
 
54.6

Other, net
 
(32.4
)
 
6.5

Net cash provided by operating activities
 
690.5

 
735.7

 
 
 
 
 
Investing activities
 
 
 
 
Capital expenditures
 
(496.1
)
 
(358.8
)
Acquisition of Upstream Wind Energy LLC, net of cash and restricted cash acquired of $9.2
 

 
(268.2
)
Capital contributions to transmission affiliates
 
(3.0
)
 
(3.4
)
Proceeds from the sale of assets
 
1.3

 
10.6

Proceeds from the sale of investments held in rabbi trust
 
17.0

 
0.1

Proceeds from cash surrender value of life insurance
 
8.3

 
8.5

Other, net
 
9.5

 
4.6

Net cash used in investing activities
 
(463.0
)
 
(606.6
)
 
 
 
 
 
Financing activities
 
 
 
 
Exercise of stock options
 
16.0

 
32.6

Purchase of common stock
 
(40.4
)
 
(70.7
)
Dividends paid on common stock
 
(199.5
)
 
(186.2
)
Issuance of long-term debt
 

 
350.0

Retirement of long-term debt
 
(14.0
)
 
(13.3
)
Issuance of short-term loan
 
340.0

 

Change in other short-term debt
 
(343.6
)
 
(294.9
)
Other, net
 
(2.6
)
 
(3.6
)
Net cash used in financing activities
 
(244.1
)
 
(186.1
)
 
 
 
 
 
Net change in cash, cash equivalents, and restricted cash
 
(16.6
)
 
(57.0
)
Cash, cash equivalents, and restricted cash at beginning of period
 
82.3

 
146.1

Cash, cash equivalents, and restricted cash at end of period
 
$
65.7

 
$
89.1



6

View differences made from one to another to evaluate Wec Energy Group, Inc.'s financial trajectory

Compare SEC Filings Year-over-Year (YoY) and Quarter-over-Quarter (QoQ)
Sample 10-K Year-over-Year (YoY) Comparison

Compare this 8-K Corporate News to its predecessor by reading our highlights to see what text and tables were  removed  ,   added    and   changed   by Wec Energy Group, Inc..

Continue

Assess how Wec Energy Group, Inc.'s management team is paid from their Annual Proxy

Definitive Proxy Statement (Form DEF 14A)
Screenshot example of actual Proxy Statement

Wec Energy Group, Inc.'s Definitive Proxy Statement (Form DEF 14A) filed after their 2020 10-K Annual Report includes:

  • Voting Procedures
  • Board Members
  • Executive Team
  • Salaries, Bonuses, Perks
  • Peers / Competitors

Continue

SEC Filing Tools

Financial Statements, Disclosures and Schedules

Inside this 8-K Corporate News

Material Contracts, Statements, Certifications & more

Wec Energy Group, Inc. provided additional information to their SEC Filing as exhibits

Ticker: WEC
CIK: 783325
Form Type: 8-K Corporate News
Accession Number: 0000107815-20-000171
Submitted to the SEC: Mon May 04 2020 7:28:50 AM EST
Accepted by the SEC: Mon May 04 2020
Period: Monday, May 4, 2020
Industry: Electric And Other Services Combined
Events:
  1. Earnings Release
  2. Financial Exhibit

External Resources:
Stock Quote
Social Media

Bookmark the Permalink:
https://last10k.com/sec-filings/wec/0000107815-20-000171.htm