Exhibit 99.1
Westar Energy announces 2nd quarter 2014 results.
TOPEKA, Kan., Aug. 6, 2014 - Westar Energy, Inc. (NYSE:WR) today announced earnings of $53 million, or $0.41 per share, for the second quarter 2014 compared with earnings of $67 million, or $0.53 per share, for the second quarter 2013. Without COLI proceeds, second quarter 2013 earnings would have been $57 million or $0.45 per share. Earnings for the six months ended June 30, 2014 were $122 million, or $0.95 per share, compared with $118 million, or $0.93 per share, for the same period in 2013. Without COLI proceeds, the first half of 2013 earnings would have been $108 million or $0.86 per share.
Lower net income for the three months ended June 30, 2014 was driven largely by no corporate-owned life insurance proceeds and higher planned maintenance costs for the generating fleet. These factors were partially offset by higher revenues for the quarter.
Higher net income for the six months ended June 30, 2014 was largely driven by higher revenues. The higher revenues are due principally from higher energy sales from colder weather in the first quarter and higher prices resulting from investments in air quality controls and transmission infrastructure.
Earnings Guidance
The company affirmed its 2014 earnings guidance of $2.30 to $2.45 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 Thursday, Aug. 7 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 866-318-8620, participant code 77563283. 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, 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 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, 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 Aug. 6, 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 2nd quarter results
Westar Energy, Inc.
Condensed Consolidated Statements of Income
(Unaudited)
| Three Months Ended Jun. 30, | Six Months Ended Jun. 30, | ||||||||||||||||||||||||||||
| 2014 | 2013 | Change | % Change | 2014 | 2013 | Change | % Change | ||||||||||||||||||||||
| (Dollars In Thousands, Except Per Share Amounts) | |||||||||||||||||||||||||||||
| REVENUES: | |||||||||||||||||||||||||||||
| Residential | $ | 175,671 | $ | 165,302 | $ | 10,369 | 6.3 | $ | 367,958 | $ | 330,678 | $ | 37,280 | 11.3 | |||||||||||||||
| Commercial | 178,194 | 165,172 | 13,022 | 7.9 | 339,294 | 313,128 | 26,166 | 8.4 | |||||||||||||||||||||
| Industrial | 106,984 | 92,820 | 14,164 | 15.3 | 201,480 | 183,745 | 17,735 | 9.7 | |||||||||||||||||||||
| Other retail | (3,033 | ) | 2,228 | (5,261 | ) | (236.1 | ) | (11,557 | ) | (944 | ) | (10,613 | ) | (a) | |||||||||||||||
| Total Retail Revenues | 457,816 | 425,522 | 32,294 | 7.6 | 897,175 | 826,607 | 70,568 | 8.5 | |||||||||||||||||||||
| Wholesale | 82,434 | 81,783 | 651 | 0.8 | 193,047 | 168,253 | 24,794 | 14.7 | |||||||||||||||||||||
| Transmission | 63,700 | 52,804 | 10,896 | 20.6 | 125,166 | 104,315 | 20,851 | 20.0 | |||||||||||||||||||||
| Other | 8,718 | 9,480 | (762 | ) | (8.0 | ) | 25,836 | 16,626 | 9,210 | 55.4 | |||||||||||||||||||
| Total Revenues | 612,668 | 569,589 | 43,079 | 7.6 | 1,241,224 | 1,115,801 | 125,423 | 11.2 | |||||||||||||||||||||
| OPERATING EXPENSES: | |||||||||||||||||||||||||||||
| Fuel and purchased power | 164,779 | 152,700 | 12,079 | 7.9 | 338,618 | 304,452 | 34,166 | 11.2 | |||||||||||||||||||||
| SPP network transmission costs | 55,533 | 44,600 | 10,933 | 24.5 | 107,491 | 88,396 | 19,095 | 21.6 | |||||||||||||||||||||
| Operating and maintenance | 101,839 | 87,999 | 13,840 | 15.7 | 193,629 | 172,154 | 21,475 | 12.5 | |||||||||||||||||||||
| Depreciation and amortization | 70,882 | 67,597 | 3,285 | 4.9 | 140,992 | 134,443 | 6,549 | 4.9 | |||||||||||||||||||||
| Selling, general and administrative | 62,168 | 54,477 | 7,691 | 14.1 | 118,653 | 103,422 | 15,231 | 14.7 | |||||||||||||||||||||
| Taxes other than income tax | 34,738 | 30,704 | 4,034 | 13.1 | 69,571 | 61,482 | 8,089 | 13.2 | |||||||||||||||||||||
| Total Operating Expenses | 489,939 | 438,077 | 51,862 | 11.8 | 968,954 | 864,349 | 104,605 | 12.1 | |||||||||||||||||||||
| INCOME FROM OPERATIONS | 122,729 | 131,512 | (8,783 | ) | (6.7 | ) | 272,270 | 251,452 | 20,818 | 8.3 | |||||||||||||||||||
| OTHER INCOME (EXPENSE): | |||||||||||||||||||||||||||||
| Investment earnings | 3,175 | 1,690 | 1,485 | 87.9 | 5,553 | 5,749 | (196 | ) | (3.4 | ) | |||||||||||||||||||
| Other income | 5,658 | 13,711 | (8,053 | ) | (58.7 | ) | 11,575 | 17,427 | (5,852 | ) | (33.6 | ) | |||||||||||||||||
| Other expense | (2,287 | ) | (2,354 | ) | 67 | 2.8 | (7,952 | ) | (7,715 | ) | (237 | ) | (3.1 | ) | |||||||||||||||
| Total Other Income | 6,546 | 13,047 | (6,501 | ) | (49.8 | ) | 9,176 | 15,461 | (6,285 | ) | (40.7 | ) | |||||||||||||||||
| Interest expense | 47,303 | 45,798 | 1,505 | 3.3 | 93,543 | 90,082 | 3,461 | 3.8 | |||||||||||||||||||||
| INCOME BEFORE INCOME TAXES | 81,972 | 98,761 | (16,789 | ) | (17.0 | ) | 187,903 | 176,831 | 11,072 | 6.3 | |||||||||||||||||||
| Income tax expense | 26,150 | 29,310 | (3,160 | ) | (10.8 | ) | 61,111 | 54,123 | 6,988 | 12.9 | |||||||||||||||||||
| NET INCOME | 55,822 | 69,451 | (13,629 | ) | (19.6 | ) | 126,792 | 122,708 | 4,084 | 3.3 | |||||||||||||||||||
| Less: Net income attributable to noncontrolling interests | 2,349 | 2,263 | 86 | 3.8 | 4,365 | 4,375 | (10 | ) | (0.2 | ) | |||||||||||||||||||
| NET INCOME ATTRIBUTABLE TO WESTAR ENERGY, INC. | $ | 53,473 | $ | 67,188 | $ | (13,715 | ) | (20.4 | ) | $ | 122,427 | $ | 118,333 | $ | 4,094 | 3.5 | |||||||||||||
| BASIC AND DILUTED EARNINGS PER AVERAGE COMMON SHARE OUTSTANDING ATTRIBUTABLE TO WESTAR ENERGY, INC. (See 10-Q Note 2): | |||||||||||||||||||||||||||||
| Basic earnings per common share | $ | 0.41 | $ | 0.53 | $ | (0.12 | ) | (22.6 | ) | $ | 0.95 | $ | 0.93 | $ | 0.02 | 2.2 | |||||||||||||
| Diluted earnings per common share | $ | 0.40 | $ | 0.52 | $ | (0.12 | ) | (23.1 | ) | $ | 0.93 | $ | 0.92 | $ | 0.01 | 1.1 | |||||||||||||
| AVERAGE EQUIVALENT COMMON SHARES OUTSTANDING (in thousands): | |||||||||||||||||||||||||||||
| Basic | 129,363 | 127,311 | 2,052 | 1.6 | 129,185 | 127,254 | 1,931 | 1.5 | |||||||||||||||||||||
| Diluted | 131,973 | 127,930 | 4,043 | 3.2 | 131,779 | 127,735 | 4,044 | 3.2 | |||||||||||||||||||||
| DIVIDENDS DECLARED PER COMMON SHARE | $ | 0.35 | $ | 0.34 | $ | 0.01 | 2.9 | $ | 0.70 | $ | 0.68 | $ | 0.02 | 2.9 | |||||||||||||||
| Effective income tax rate | 31.90 | % | 29.68 | % | 32.52 | % | 30.61 | % | |||||||||||||||||||||
(a) Change greater than 1,000%.
WESTAR ENERGY NEWS RELEASE Page 3 of 3