Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - WESTAR ENERGY INC /KS | wr_12312012-earningsreleas.htm |
| EX-99.3 - 2013 EARNINGS GUIDANCE - WESTAR ENERGY INC /KS | a123120128-kexhibit993.htm |
| EX-99.2 - 2012 FOURTH QUARTER AND YEAR-END EARNINGS PACKAGE - WESTAR ENERGY INC /KS | a123120128-kexhibit992.htm |
Exhibit 99.1
 | Media contact: |
Erin La Row, | |
Senior communications rep. | |
Phone: 785.575.6060 | |
Erin.la.row@WestarEnergy.com | |
Investor contact: | |
Bruce Burns, | |
director, investor relations | |
Phone: 785.575.8227 | |
bruce.burns@WestarEnergy.com | |
WESTAR ENERGY ANNOUNCES 2012 RESULTS
Board declares 34 cent quarterly dividend
TOPEKA, Kan., Feb. 28, 2013 - Westar Energy, Inc. (NYSE:WR) today announced earnings of
$274 million, or $2.15 per share, for 2012 compared with earnings of $229 million, or $1.95 per share, for 2011. Earnings for 2011 included the benefits of reversing previously recorded accruals as a result of legal settlements and a gain on the sale of a non-utility investment. Earnings were $46 million, or $0.36 per share, for the fourth quarter 2012 compared with earnings of $19 million, or $0.16 per share, for the fourth quarter 2011.
Following are reconciliations of GAAP to ongoing (non-GAAP) net income and earnings per share:
Three Months Ended Dec. 31, | Twelve Months Ended Dec. 31, | ||||||||||||||||||||||
2012 | 2011 | Change | 2012 | 2011 | Change | ||||||||||||||||||
(In millions, except per share amounts) | |||||||||||||||||||||||
Net income attributable to common stock | $ | 45.6 | $ | 19.3 | $ | 26.3 | $ | 273.5 | $ | 229.3 | $ | 44.2 | |||||||||||
Less adjustments for: | |||||||||||||||||||||||
Reversal of accruals related to legal settlements (a) | — | — | — | — | 8.9 | (8.9 | ) | ||||||||||||||||
Gain on sale of non-utility investment | — | — | — | — | 7.2 | (7.2 | ) | ||||||||||||||||
Ongoing (non-GAAP) net income | $ | 45.6 | $ | 19.3 | $ | 26.3 | $ | 273.5 | $ | 213.2 | $ | 60.3 | |||||||||||
Basic earnings per share | $ | 0.36 | $ | 0.16 | $ | 0.20 | $ | 2.15 | $ | 1.95 | $ | 0.20 | |||||||||||
Less adjustment for: | |||||||||||||||||||||||
Reversal of accruals related to legal settlements (a) | — | — | — | — | 0.08 | (0.08 | ) | ||||||||||||||||
Gain on sale of non-utility investment | — | — | — | — | 0.06 | (0.06 | ) | ||||||||||||||||
Ongoing (non-GAAP) earnings per share | $ | 0.36 | $ | 0.16 | $ | 0.20 | $ | 2.15 | $ | 1.81 | $ | 0.34 | |||||||||||
(a) Adjusted for income taxes and legal expenses related to legal settlement | |||||||||||||||||||||||
The primary driver for the $26 million increase in fourth quarter ongoing net income was higher retail revenues. The primary drivers for the $60 million increase in full year 2012 ongoing net income were higher
Westar Energy announces 2012 results Page 2 of 4
retail revenues, reduced depreciation expense and recording $17 million in corporate-owned life insurance benefits. These items were partially offset by increases in operating costs due in part to implementing a rate order in April. Per share results for both periods in 2012 reflect additional shares outstanding as a result of the company having issued shares to fund capital investments.
Earnings Guidance
The company issued earnings guidance for 2013 of $2.00 to $2.15 per share and posted to its website a summary of factors it considers to be principal drivers and adjustments used in arriving at earnings guidance. The summary is located under Supplemental Materials within the Investors section of the company website at www.WestarEnergy.com.
Dividend Declaration
The Board of Directors today declared a quarterly dividend of 34 cents per share payable Apr. 1, 2013 on the company's common stock payable to shareholders of record as of Mar. 11, 2013. The new dividend reflects a 3 percent increase over the company's previous quarterly dividend of 33 cents per share, and results in an indicated annual dividend of $1.36 per share.
Conference Call and Additional Company Information
Westar Energy management will host a conference call Friday, Mar. 1 with the investment community at 10 a.m. ET (9 a.m. CT). Investors, media and the public may listen to the conference call by dialing 866-730-5762, participant code 45237361. A webcast of the live conference call will be available at www.WestarEnergy.com.
Members of the media are invited to listen to the conference call and then contact Erin La Row with any follow-up questions.
This earnings announcement, a package of detailed fourth quarter and year-end 2012 financial information, the company's annual report on Form 10-K for the period ended Dec. 31, 2012 and other filings the company has made with the Securities and Exchange Commission are available on the company's website at www.WestarEnergy.com.
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Westar Energy announces 2012 results Page 3 of 4
Westar Energy, Inc. (NYSE: WR) is Kansas' largest electric utility. For more than a century, we have provided Kansans the safe, reliable electricity needed to power their businesses and homes. Every day our team of professionals takes on projects to generate and deliver electricity, protect the environment and provide excellent service to our nearly 700,000 customers. Westar has 7,200 MW of electric generation capacity fueled by coal, uranium, natural gas, wind and landfill gas. We are also a leader in electric transmission in Kansas. Our innovative customer service programs include mobile-enabled customer care, a smart meter pilot project and paving the way for electric vehicle adoption. Our employees live, volunteer and work in the communities we serve.
For more information about Westar Energy, visit us on the Internet at http://www.WestarEnergy.com.
Forward-looking statements: Certain matters discussed in this news release are “forward-looking statements.” The Private Securities Litigation Reform Act of 1995 has established that these statements qualify for safe harbors from liability. Forward-looking statements may include words like “believe,” “anticipate,” “target,” “expect,” “pro forma,” “estimate,” “intend,” “guidance” or words of similar meaning. Forward-looking statements describe future plans, objectives, expectations or goals. Although Westar Energy believes that its expectations are based on reasonable assumptions, all forward-looking statements involve risk and uncertainty. The factors that could cause actual results to differ materially from these forward-looking statements include those discussed herein as well as (1) those discussed in the company's Annual Report on Form 10-K for the year ended Dec. 31, 2012 (a) under the heading, “Forward-Looking Statements,” (b) in ITEM 1. Business, (c) in ITEM 1A. Risk Factors, (d) in ITEM 7. Management's Discussion and Analysis of Financial Condition and Results of Operations, and (e) in ITEM 8. Financial Statements and Supplementary Data: Notes 13 and 15; and (2) other factors discussed in the company's filings with the Securities and Exchange Commission. Any forward-looking statement speaks only as of the date such statement was made, and the company does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement was made.
Westar Energy announces 2012 results Page 4 of 4
Westar Energy, Inc.
Consolidated Statements of Income
(Unaudited)
Three Months Ended Dec. 31, | Twelve Months Ended Dec. 31, | ||||||||||||||||||||||||||
2012 | 2011 | Change | % Change | 2012 | 2011 | Change | % Change | ||||||||||||||||||||
(In Thousands, Except Per Share Amounts) | |||||||||||||||||||||||||||
REVENUES: | |||||||||||||||||||||||||||
Residential | $ | 148,494 | $ | 136,604 | $ | 11,890 | 8.7 | $ | 714,562 | $ | 693,388 | $ | 21,174 | 3.1 | |||||||||||||
Commercial | 146,839 | 134,175 | 12,664 | 9.4 | 640,654 | 604,626 | 36,028 | 6.0 | |||||||||||||||||||
Industrial | 90,873 | 79,379 | 11,494 | 14.5 | 368,909 | 347,881 | 21,028 | 6.0 | |||||||||||||||||||
Other retail | (6,970 | ) | (205 | ) | (6,765 | ) | nm | (5,845 | ) | (8,964 | ) | 3,119 | 34.8 | ||||||||||||||
Total Retail Revenues | 379,236 | 349,953 | 29,283 | 8.4 | 1,718,280 | 1,636,931 | 81,349 | 5.0 | |||||||||||||||||||
Wholesale | 87,387 | 89,752 | (2,365 | ) | (2.6) | 316,353 | 346,948 | (30,595 | ) | (8.8) | |||||||||||||||||
Transmission | 49,317 | 39,158 | 10,159 | 25.9 | 193,797 | 154,569 | 39,228 | 25.4 | |||||||||||||||||||
Other | 7,832 | 7,365 | 467 | 6.3 | 33,040 | 32,543 | 497 | 1.5 | |||||||||||||||||||
Total Revenues | 523,772 | 486,228 | 37,544 | 7.7 | 2,261,470 | 2,170,991 | 90,479 | 4.2 | |||||||||||||||||||
OPERATING EXPENSES: | |||||||||||||||||||||||||||
Fuel and purchased power | 137,150 | 144,096 | (6,946 | ) | (4.8) | 589,990 | 630,793 | (40,803 | ) | (6.5) | |||||||||||||||||
Operating and maintenance | 151,356 | 145,323 | 6,033 | 4.2 | 612,871 | 557,752 | 55,119 | 9.9 | |||||||||||||||||||
Depreciation and amortization | 65,823 | 71,771 | (5,948 | ) | (8.3) | 270,464 | 285,322 | (14,858 | ) | (5.2) | |||||||||||||||||
Selling, general and administrative | 61,668 | 52,463 | 9,205 | 17.5 | 226,012 | 184,695 | 41,317 | 22.4 | |||||||||||||||||||
Total Operating Expenses | 415,997 | 413,653 | 2,344 | 0.6 | 1,699,337 | 1,658,562 | 40,775 | 2.5 | |||||||||||||||||||
INCOME FROM OPERATIONS | 107,775 | 72,575 | 35,200 | 48.5 | 562,133 | 512,429 | 49,704 | 9.7 | |||||||||||||||||||
OTHER INCOME (EXPENSE): | |||||||||||||||||||||||||||
Investment earnings | 955 | 3,046 | (2,091 | ) | (68.6) | 7,411 | 9,301 | (1,890 | ) | (20.3) | |||||||||||||||||
Other income | 8,136 | 441 | 7,695 | nm | 35,378 | 8,652 | 26,726 | 308.9 | |||||||||||||||||||
Other expense | (5,740 | ) | (4,445 | ) | (1,295 | ) | (29.1) | (19,987 | ) | (18,398 | ) | (1,589 | ) | (8.6) | |||||||||||||
Total Other Income (Expense) | 3,351 | (958 | ) | 4,309 | 449.8 | 22,802 | (445 | ) | 23,247 | nm | |||||||||||||||||
Interest expense | 44,451 | 41,779 | 2,672 | 6.4 | 176,337 | 172,460 | 3,877 | 2.2 | |||||||||||||||||||
INCOME BEFORE INCOME TAXES | 66,675 | 29,838 | 36,837 | 123.5 | 408,598 | 339,524 | 69,074 | 20.3 | |||||||||||||||||||
Income tax expense | 18,980 | 8,532 | 10,448 | 122.5 | 126,136 | 103,344 | 22,792 | 22.1 | |||||||||||||||||||
NET INCOME | 47,695 | 21,306 | 26,389 | 123.9 | 282,462 | 236,180 | 46,282 | 19.6 | |||||||||||||||||||
Less: Net income attributable to noncontrolling interests | 2,088 | 1,729 | 359 | 20.8 | 7,316 | 5,941 | 1,375 | 23.1 | |||||||||||||||||||
NET INCOME ATTRIBUTABLE TO WESTAR ENERGY, INC. | 45,607 | 19,577 | 26,030 | 133.0 | 275,146 | 230,239 | 44,907 | 19.5 | |||||||||||||||||||
Preferred dividends | — | 242 | (242 | ) | (100.0) | 1,616 | 970 | 646 | 66.6 | ||||||||||||||||||
NET INCOME ATTRIBUTABLE TO COMMON STOCK | $ | 45,607 | $ | 19,335 | $ | 26,272 | 135.9 | $ | 273,530 | $ | 229,269 | $ | 44,261 | 19.3 | |||||||||||||
Earnings per common share, basic | $ | 0.36 | $ | 0.16 | $ | 0.20 | 125.0 | $ | 2.15 | $ | 1.95 | $ | 0.20 | 10.3 | |||||||||||||
Average equivalent common shares outstanding | 126,929 | 121,880 | 5,049 | 4.1 | 126,712 | 116,891 | 9,821 | 8.4 | |||||||||||||||||||
DIVIDENDS DECLARED PER COMMON SHARE | $ | 0.33 | $ | 0.32 | $ | 0.01 | 3.1 | $ | 1.32 | $ | 1.28 | $ | 0.04 | 3.1 | |||||||||||||
Effective income tax rate | 28.47 | % | 28.59 | % | 30.87 | % | 30.44 | % | |||||||||||||||||||
nm - not meaningful | |||||||||||||||||||||||||||