WESTAR ENERGY INC /KS - FORM 8-K - EX-99.1 - PRESS RELEASE DATED AUGUST 4, 2015 - August 4, 2015

Attached files

file filename
8-K - 8-K - WESTAR ENERGY INC /KSwr-06302015xearningsreleas.htm
EX-99.2 - 2015 SECOND QUARTER EARNGINS PACKAGE - WESTAR ENERGY INC /KSwr-06302015x8xkexhibit992.htm
Exhibit 99.1


Westar Energy announces 2nd quarter 2015 results.
TOPEKA, Kan., Aug. 4, 2015 - Westar Energy, Inc. (NYSE:WR) today announced earnings of $64 million, or $0.47 per share, for the second quarter 2015 compared with earnings of $53 million, or $0.41 per share, for the second quarter 2014. Earnings for the six months ended June 30, 2015 were $115 million, or $0.85 per share, compared with $122 million, or $0.95 per share, for the same period in 2014.

Higher net income for the three months ended June 30, 2015 was driven by lower operating and maintenance costs at the company’s power plants and higher COLI income. The lower expenses and higher COLI income were offset by a decrease in retail sales due largely to mild weather compared with last year and a $3 million estimated refund obligation for transmission revenue.
    
Lower net income for the six months ended June 30, 2015 reflects mild weather, which reduced both energy marketing margins and retail energy sales, and a $9 million estimated refund obligation for transmission revenue. Lower operating expenses and receipt of COLI income partially offset the lower revenues.

Earnings Guidance
    
The company affirmed its 2015 earnings guidance of $2.18 to $2.33 per share. The earnings guidance drivers are located 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 Wednesday, Aug. 5 with the investment community at 10:00 a.m. ET (9:00 a.m. CT). Investors, media and the public may listen to the conference call by dialing 800-884-5695, participant code 71187505. 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 second-quarter financial information, the company's quarterly report on Form 10-Q for the period ended June 30, 2015 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 NEWS RELEASE    Page 1 of 3
Westar Energy announces 2nd quarter results


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,” “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, 2014 (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 Aug. 4, 2015, (a) under the heading "Forward-Looking Statements." (b) in ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations and (c) in Part I, Financial Information, ITEM 1. Financial Statements: Notes 10 and 12; 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
Media Relations Manager
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 2nd quarter results

Westar Energy, Inc.
Condensed Consolidated Statements of Income
(Unaudited)
 
Three Months Ended Jun. 30,
 
Six Months Ended Jun. 30,
 
2015
 
2014
 
Change
 
% Change
 
2015
 
2014
 
Change
 
% Change
 
(Dollars In Thousands, Except Per Share Amounts)
REVENUES:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential
$
173,677

 
$
175,671

 
$
(1,994
)
 
(1.1
)
 
$
354,970

 
$
367,958

 
$
(12,988
)
 
(3.5
)
Commercial
175,994

 
178,194

 
(2,200
)
 
(1.2
)
 
337,300

 
339,294

 
(1,994
)
 
(0.6
)
Industrial
103,151

 
106,984

 
(3,833
)
 
(3.6
)
 
199,630

 
201,480

 
(1,850
)
 
(0.9
)
Other retail
(7,660
)
 
(3,033
)
 
(4,627
)
 
(152.6
)
 
(7,122
)
 
(11,557
)
 
4,435

 
38.4

Total Retail Revenues
445,162

 
457,816

 
(12,654
)
 
(2.8
)
 
884,778

 
897,175

 
(12,397
)
 
(1.4
)
Wholesale
74,828

 
82,434

 
(7,606
)
 
(9.2
)
 
161,584

 
193,047

 
(31,463
)
 
(16.3
)
Transmission
61,295

 
63,700

 
(2,405
)
 
(3.8
)
 
119,880

 
125,166

 
(5,286
)
 
(4.2
)
Other
8,278

 
8,718

 
(440
)
 
(5.0
)
 
14,128

 
25,836

 
(11,708
)
 
(45.3
)
Total Revenues
589,563

 
612,668

 
(23,105
)
 
(3.8
)
 
1,180,370

 
1,241,224

 
(60,854
)
 
(4.9
)
OPERATING EXPENSES:
 
 
 
 
 
 
 
 
 
 
 
 
 
 


Fuel and purchased power
140,080

 
164,779

 
(24,699
)
 
(15.0
)
 
295,561

 
338,618

 
(43,057
)
 
(12.7
)
SPP network transmission costs
57,352

 
55,533

 
1,819

 
3.3

 
114,164

 
107,491

 
6,673

 
6.2

Operating and maintenance
82,739

 
101,839

 
(19,100
)
 
(18.8
)
 
167,819

 
193,629

 
(25,810
)
 
(13.3
)
Depreciation and amortization
76,759

 
70,882

 
5,877

 
8.3

 
151,345

 
140,992

 
10,353

 
7.3

Selling, general and administrative
63,663

 
62,168

 
1,495

 
2.4

 
119,082

 
118,653

 
429

 
0.4

Taxes other than income tax
37,494

 
34,738

 
2,756

 
7.9

 
75,365

 
69,571

 
5,794

 
8.3

Total Operating Expenses
458,087

 
489,939

 
(31,852
)
 
(6.5
)
 
923,336

 
968,954

 
(45,618
)
 
(4.7
)
INCOME FROM OPERATIONS
131,476

 
122,729

 
8,747

 
7.1

 
257,034

 
272,270

 
(15,236
)
 
(5.6
)
OTHER INCOME (EXPENSE):
 
 
 
 
 
 
 
 
 
 
 
 
 
 


Investment earnings
1,634

 
3,175

 
(1,541
)
 
(48.5
)
 
4,113

 
5,553

 
(1,440
)
 
(25.9
)
Other income
15,121

 
5,658

 
9,463

 
167.2

 
17,935

 
11,575

 
6,360

 
54.9

Other expense
(2,633
)
 
(2,287
)
 
(346
)
 
(15.1
)
 
(8,345
)
 
(7,952
)
 
(393
)
 
(4.9
)
Total Other Income
14,122

 
6,546

 
7,576

 
115.7

 
13,703

 
9,176

 
4,527

 
49.3

Interest expense
45,516

 
47,303

 
(1,787
)
 
(3.8
)
 
89,814

 
93,543

 
(3,729
)
 
(4.0
)
INCOME BEFORE INCOME TAXES
100,082

 
81,972

 
18,110

 
22.1

 
180,923

 
187,903

 
(6,980
)
 
(3.7
)
Income tax expense
33,839

 
26,150

 
7,689

 
29.4

 
61,517

 
61,111

 
406

 
0.7

NET INCOME
66,243

 
55,822

 
10,421

 
18.7

 
119,406

 
126,792

 
(7,386
)
 
(5.8
)
Less: Net income attributable to noncontrolling interests
2,533

 
2,349

 
184

 
7.8

 
4,716

 
4,365

 
351

 
8.0

NET INCOME ATTRIBUTABLE TO WESTAR ENERGY, INC.
$
63,710

 
$
53,473

 
$
10,237

 
19.1

 
$
114,690

 
$
122,427

 
$
(7,737
)
 
(6.3
)
BASIC AND DILUTED EARNINGS PER AVERAGE COMMON SHARE OUTSTANDING ATTRIBUTABLE TO WESTAR ENERGY, INC. (See 10-Q Note 2):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic earnings per common share
$
0.47

 
$
0.41

 
$
0.06

 
14.6

 
$
0.85

 
$
0.95

 
$
(0.10
)
 
(10.5
)
Diluted earnings per common share
$
0.46

 
$
0.40

 
$
0.06

 
15.0

 
$
0.84

 
$
0.93

 
$
(0.09
)
 
(9.7
)
AVERAGE EQUIVALENT COMMON SHARES OUTSTANDING (in thousands):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic
135,939

 
129,363

 
6,576

 
5.1

 
134,177

 
129,185

 
4,992

 
3.9

Diluted
137,412

 
131,973

 
5,439

 
4.1

 
136,330

 
131,779

 
4,551

 
3.5

DIVIDENDS DECLARED PER COMMON SHARE
$
0.36

 
$
0.35

 
$
0.01

 
2.9

 
$
0.72

 
$
0.70

 
$
0.02

 
2.9

Effective income tax rate
33.81
%
 
31.90
%
 
 
 
 
 
34.00
%
 
32.52
%
 
 
 
 


WESTAR ENERGY NEWS RELEASE    Page 3 of 3

WESTAR ENERGY INC /KS Reports