| Kansas |
48-1093840 | |
| (State or other jurisdiction of incorporation or organization) |
(I.R.S. Employer Identification Number) |
| Common Stock, No par value |
1,000
Shares | |
| (Class) |
(Outstanding at August 8, 2002) |
| Page | ||||
| PART I. |
Financial Information |
|||
| Item 1. |
Financial Statements |
|||
| 4 | ||||
| 5-6 | ||||
| 7 | ||||
| 8 | ||||
| Item 2. |
15 | |||
| Item 3. |
21 | |||
| PART II. |
Other Information |
|||
| Item 1. |
22 | |||
| Item 2. |
22 | |||
| Item 3. |
22 | |||
| Item 4. |
22 | |||
| Item 5. |
22 | |||
| Item 6. |
22 | |||
| 23 | ||||
· |
capital expenditures, |
· |
earnings, |
· |
liquidity and capital resources, |
· |
litigation, |
· |
possible corporate restructurings, mergers, acquisitions and dispositions, |
· |
compliance with debt and other restrictive covenants, |
· |
interest and dividends, |
· |
the financial condition of other Westar Energy, Inc.s subsidiaries and their impact on Westar Energy, Inc.s results, including impairment charges
that were recorded in the first quarter of 2002 that may affect our liquidity, |
· |
environmental matters, |
· |
nuclear operations and |
· |
the overall economy of our service area. |
· |
electric utility deregulation or re-regulation, |
· |
ongoing municipal, state and federal activities, such as the Wichita municipalization effort, |
· |
future economic conditions, |
· |
changes in accounting requirements and other accounting matters, |
· |
changing weather, |
· |
rate and other regulatory matters, including the impact of (i) the Kansas Corporation Commissions order to reduce our rates issued on July 25, 2001 and
(ii) the Kansas Corporation Commissions order issued July 20, 2001 and related proceedings, with respect to the proposed separation of Westar Energy, Inc.s electric utility businesses (including us) from Westar Industries, Inc.,
|
· |
the impact of changes and downturns in the energy industry and the market for trading wholesale electricity, |
· |
the proposed sale of Westar Energy, Inc.s interests in ONEOK, Inc., |
· |
political, legislative and regulatory developments, |
· |
amendments or revisions to Westar Energy, Inc.s current business and financial plans, |
· |
regulatory, legislative and judicial actions, |
· |
regulated and competitive markets and |
· |
other circumstances affecting anticipated operations, sales and costs. |
| June 30, 2002 |
December 31, 2001 |
|||||||
| ASSETS |
||||||||
| CURRENT ASSETS: |
||||||||
| Cash and cash equivalents |
$ |
5,472 |
|
$ |
5,564 |
| ||
| Restricted cash |
|
10,281 |
|
|
|
| ||
| Accounts receivable, net |
|
57,877 |
|
|
45,209 |
| ||
| Receivable from affiliates |
|
|
|
|
17,349 |
| ||
| Inventories and supplies |
|
63,242 |
|
|
65,531 |
| ||
| Energy trading contracts |
|
12,897 |
|
|
4,887 |
| ||
| Deferred tax assets |
|
|
|
|
1,002 |
| ||
| Prepaid expenses and other |
|
47,193 |
|
|
23,312 |
| ||
| |
|
|
|
|
| |||
| Total Current Assets |
|
196,962 |
|
|
162,854 |
| ||
| |
|
|
|
|
| |||
| PROPERTY, PLANT AND EQUIPMENT, NET |
|
2,405,278 |
|
|
2,426,875 |
| ||
| |
|
|
|
|
| |||
| OTHER ASSETS: |
||||||||
| Restricted cash |
|
140,130 |
|
|
|
| ||
| Regulatory assets |
|
251,764 |
|
|
244,108 |
| ||
| Energy trading contracts |
|
4,138 |
|
|
|
| ||
| Other |
|
103,388 |
|
|
96,208 |
| ||
| |
|
|
|
|
| |||
| Total Other Assets |
|
499,420 |
|
|
340,316 |
| ||
| |
|
|
|
|
| |||
| TOTAL ASSETS |
$ |
3,101,660 |
|
$ |
2,930,045 |
| ||
| |
|
|
|
|
| |||
| LIABILITIES AND SHAREHOLDERS EQUITY |
||||||||
| CURRENT LIABILITIES: |
||||||||
| Accounts payable |
$ |
47,434 |
|
$ |
51,384 |
| ||
| Payable to affiliates |
|
139,926 |
|
|
|
| ||
| Accrued liabilities |
|
72,062 |
|
|
66,642 |
| ||
| Energy trading contracts |
|
12,643 |
|
|
9,970 |
| ||
| Deferred income taxes |
|
12,057 |
|
|
|
| ||
| Other |
|
6,742 |
|
|
6,362 |
| ||
| |
|
|
|
|
| |||
| Total Current Liabilities |
|
290,864 |
|
|
134,358 |
| ||
| |
|
|
|
|
| |||
| LONG-TERM LIABILITIES: |
||||||||
| Long-term debt, net |
|
684,424 |
|
|
684,360 |
| ||
| Deferred income taxes and investment tax credits |
|
715,780 |
|
|
726,676 |
| ||
| Deferred gain from sale-leaseback |
|
168,552 |
|
|
174,466 |
| ||
| Energy trading contracts |
|
1,325 |
|
|
6,130 |
| ||
| Other |
|
175,092 |
|
|
155,666 |
| ||
| |
|
|
|
|
| |||
| Total Long-Term Liabilities |
|
1,745,173 |
|
|
1,747,298 |
| ||
| |
|
|
|
|
| |||
| COMMITMENTS AND CONTINGENCIES |
||||||||
| SHAREHOLDERS EQUITY: |
||||||||
| Common stock, without par value; authorized and issued 1,000 shares |
|
1,065,634 |
|
|
1,065,634 |
| ||
| Accumulated other comprehensive loss, net |
|
(50 |
) |
|
(11,023 |
) | ||
| Retained earnings (accumulated deficit) |
|
39 |
|
|
(6,222 |
) | ||
| |
|
|
|
|
| |||
| Total Shareholders Equity |
|
1,065,623 |
|
|
1,048,389 |
| ||
| |
|
|
|
|
| |||
| TOTAL LIABILITIES AND SHAREHOLDERS EQUITY |
$ |
3,101,660 |
|
$ |
2,930,045 |
| ||
| |
|
|
|
|
| |||
| Three Months Ended June
30, |
||||||||
| 2002 |
2001 |
|||||||
| SALES |
$ |
171,949 |
|
$ |
165,965 |
| ||
| COST OF SALES |
|
56,917 |
|
|
59,959 |
| ||
| |
|
|
|
|
| |||
| GROSS PROFIT |
|
115,032 |
|
|
106,006 |
| ||
| |
|
|
|
|
| |||
| OPERATING EXPENSES: |
||||||||
| Operating and maintenance |
|
55,737 |
|
|
48,559 |
| ||
| Depreciation and amortization |
|
22,395 |
|
|
26,345 |
| ||
| Selling, general and administrative |
|
17,806 |
|
|
15,347 |
| ||
| |
|
|
|
|
| |||
| Total Operating Expenses |
|
95,938 |
|
|
90,251 |
| ||
| |
|
|
|
|
| |||
| INCOME FROM OPERATIONS |
|
19,094 |
|
|
15,755 |
| ||
| |
|
|
|
|
| |||
| OTHER EXPENSE, NET |
|
693 |
|
|
1,639 |
| ||
| |
|
|
|
|
| |||
| INTEREST EXPENSE: |
||||||||
| Interest expense on long-term debt |
|
11,027 |
|
|
11,456 |
| ||
| Interest expense on short-term debt and other |
|
752 |
|
|
874 |
| ||
| |
|
|
|
|
| |||
| Total Interest Expense |
|
11,779 |
|
|
12,330 |
| ||
| |
|
|
|
|
| |||
| EARNINGS BEFORE INCOME TAXES |
|
6,622 |
|
|
1,786 |
| ||
| Income tax benefit |
|
(1,000 |
) |
|
(1,142 |
) | ||
| |
|
|
|
|
| |||
| NET INCOME |
$ |
7,622 |
|
$ |
2,928 |
| ||
| |
|
|
|
|
| |||
| OTHER COMPREHENSIVE INCOME, NET OF TAX: |
||||||||
| Unrealized holding gains on cash flow hedges arising during the period |
$ |
3,601 |
|
$ |
|
| ||
| Adjustment for losses included in net income |
|
823 |
|
|
|
| ||
| Income tax expense |
|
(1,666 |
) |
|
|
| ||
| |
|
|
|
|
| |||
| Total other comprehensive gain, net of tax |
|
2,758 |
|
|
|
| ||
| |
|
|
|
|
| |||
| COMPREHENSIVE INCOME |
$ |
10,380 |
|
$ |
2,928 |
| ||
| |
|
|
|
|
| |||
| Six Months Ended June
30, |
||||||||
| 2002 |
2001 |
|||||||
| SALES |
$ |
337,228 |
|
$ |
329,958 |
| ||
| COST OF SALES |
|
112,383 |
|
|
111,952 |
| ||
| |
|
|
|
|
| |||
| GROSS PROFIT |
|
224,845 |
|
|
218,006 |
| ||
| |
|
|
|
|
| |||
| OPERATING EXPENSES: |
||||||||
| Operating and maintenance |
|
107,870 |
|
|
100,221 |
| ||
| Depreciation and amortization |
|
48,987 |
|
|
52,221 |
| ||
| Selling, general and administrative |
|
43,350 |
|
|
||||