WESTAR ENERGY INC /KS - FORM 8-K - EX-99.1 - EXHIBIT - May 7, 2014

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Exhibit 99.1


Westar Energy Announces 1st Quarter 2014 Results
TOPEKA, Kan., May 7, 2014 - Westar Energy, Inc. (NYSE:WR) today announced earnings of $69 million, or $0.53 per share, for the first quarter 2014 compared with earnings of $51 million, or $0.40 per share, for the first quarter 2013.

Higher net income for the quarter, compared with last year, was largely driven by higher revenues. The higher revenues are due principally from higher energy sales from colder weather and higher prices from investments in air quality controls and transmission infrastructure. The increase in revenues was partially offset with higher operating costs due to scheduled maintenance, employee benefit costs and depreciation expense.

Earnings Guidance
The company raised its 2014 earnings guidance to $2.30 to $2.45 per share. Updated guidance drivers have been posted under Supplemental Materials within the investor section of the company website at www.WestarEnergy.com.

Conference Call and Additional Company Information
Westar Energy management will host a conference call Thursday, May 8 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 866-700-0133, participant code 37389140. 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 Gina Penzig with any follow-up questions.

This earnings announcement, a package of detailed first quarter financial information, the company's quarterly report on Form 10-Q for the period ended March 31, 2014 and other filings the company has made with the Securities and Exchange Commission are available on the company's website at www.WestarEnergy.com.
- 30 -

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, digital meters 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,”

WESTAR ENERGY NEWS RELEASE    Page 1 of 3
Westar Energy announces 1st quarter results

“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, 2013 (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; (2) those discussed in the company's Quarterly Report on Form 10-Q filed May 7, 2014, (a) in ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations and (b) in Part I, Financial Information, ITEM 1. Financial Statements: Notes 10 and 11; and (3) 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.


Media Contact:
Gina Penzig
Director, corporate communications
Phone: 785-575-8089
Gina.Penzig@westarenergy.com
Media line: 888-613-0003

Investor Contact:
Bruce Burns
Director, investor relations
Phone: 785-575-8227
Bruce.Burns@westarenergy.com


WESTAR ENERGY NEWS RELEASE    Page 2 of 3
Westar Energy announces 1st quarter results

Westar Energy, Inc.
Condensed Consolidated Statements of Income
(Unaudited)

 
Three Months Ended Mar. 31,
 
2014
 
2013
 
Change
 
% Change
 
(Dollars In Thousands, Except Per Share Amounts)
REVENUES:
 
 
 
 
 
 
 
Residential
$
192,287

 
$
165,375

 
$
26,912

 
16.3

Commercial
161,100

 
147,956

 
13,144

 
8.9

Industrial
94,495

 
90,925

 
3,570

 
3.9

Other retail
(8,523
)
 
(3,171
)
 
(5,352
)
 
(168.8
)
Total Retail Revenues
439,359

 
401,085

 
38,274

 
9.5

Wholesale
110,613

 
86,469

 
24,144

 
27.9

Transmission
61,466

 
51,510

 
9,956

 
19.3

Other
17,118

 
7,148

 
9,970

 
139.5

Total Revenues
628,556

 
546,212

 
82,344

 
15.1

OPERATING EXPENSES:
 
 
 
 
 
 
 
Fuel and purchased power
173,839

 
151,752

 
22,087

 
14.6

SPP network transmission costs
51,958

 
43,796

 
8,162

 
18.6

Operating and maintenance
91,790

 
84,155

 
7,635

 
9.1

Depreciation and amortization
70,110

 
66,846

 
3,264

 
4.9

Selling, general and administrative
56,486

 
48,945

 
7,541

 
15.4

Taxes other than income tax
34,832

 
30,778

 
4,054

 
13.2

Total Operating Expenses
479,015

 
426,272

 
52,743

 
12.4

INCOME FROM OPERATIONS
149,541

 
119,940

 
29,601

 
24.7

OTHER INCOME (EXPENSE):
 
 
 
 
 
 
 
Investment earnings
2,378

 
4,059

 
(1,681
)
 
(41.4
)
Other income
5,917

 
3,715

 
2,202

 
59.3

Other expense
(5,664
)
 
(5,361
)
 
(303
)
 
(5.7
)
Total Other Income
2,631

 
2,413

 
218

 
9.0

Interest expense
46,241

 
44,284

 
1,957

 
4.4

INCOME BEFORE INCOME TAXES
105,931

 
78,069

 
27,862

 
35.7

Income tax expense
34,961

 
24,813

 
10,148

 
40.9

NET INCOME
70,970

 
53,256

 
17,714

 
33.3

Less: Net income attributable to noncontrolling interests
2,015

 
2,112

 
(97
)
 
(4.6
)
NET INCOME ATTRIBUTABLE TO COMMON STOCK
$
68,955

 
$
51,144

 
$
17,811

 
34.8

BASIC AND DILUTED EARNINGS PER AVERAGE COMMON SHARE OUTSTANDING ATTRIBUTABLE TO WESTAR ENERGY, INC. (See 10-Q Note 2):
 
 
 
 
 
 
 
Basic earnings per common share
$
0.53

 
$
0.40

 
$
0.13

 
32.5

Diluted earnings per common share
$
0.52

 
$
0.40

 
$
0.12

 
30.0

AVERAGE EQUIVALENT COMMON SHARES OUTSTANDING (in thousands):
 
 
 
 
 
 
 
Basic
129,004

 
127,196

 
1,808

 
1.4

Diluted
131,269

 
127,619

 
3,650

 
2.9

DIVIDENDS DECLARED PER COMMON SHARE
$
0.35

 
$
0.34

 
$
0.01

 
2.9

Effective income tax rate
33.00
%
 
31.78
%
 
 
 
 

WESTAR ENERGY NEWS RELEASE    Page 3 of 3

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