Exhibit 99
Media Contact: Tom Robinson
816-556-2902
Investor Contact: Greg Drown
816-556-2312
FOR IMMEDIATE RELEASE
GREAT PLAINS ENERGY REPORTS FIRST QUARTER RESULTS,
REACHES SETTLEMENT OF STORM COSTS,
AND ANNOUNCES EXPECTED ISSUANCE OF COMMON EQUITY
KANSAS CITY, MO, April 24, 2002 - Great Plains Energy
Incorporated (NYSE: GXP) today reported revenues of $364.6
million for the first quarter ended March 31, 2002, an increase
of 30% over the first quarter of 2001. The Company reported a
first quarter loss of $3.3 million, or $0.05 per share, compared
to 2001 first quarter earnings of $12.5 million, or $0.20 per
share. The 2002 first quarter loss includes expenses of $14.8
million, or $0.15 per share, as a result of a January 2002 ice
storm. Total costs of the ice storm were $45.4 million
consisting of $14.8 million charged to operating expenses and
$12.5 million for capital expenditures. The remaining $18.1
million of storm costs will be amortized over a 60-month period.
The 2001 first quarter includes earnings of $15.9 million, or
$0.26 per share, for a gain on early extinguishment of debt.
Adjusting for the impact of the 2002 ice storm and the 2001 gain
on early extinguishment of debt, the Company earned $0.10 per
share in the first quarter of 2002 versus a loss of $0.06 per
share in 2001.
As a result of the costs associated with the January 2002 ice
storm and the associated rate settlement, the Company now expects
full year 2002 earnings per share in the range of $1.85 to $1.95.
This revised guidance includes the impact of an expected equity
offering later this year.
HIGHLIGHTS OF THE FIRST QUARTER:
- Kansas City Power & Light restored power to more than
300,000 of its customers affected during the unprecedented storm.
- The Company has agreed to the treatment of storm costs with
the Kansas Corporation Commission staff and the Citizens Utility
Ratepayers Board that results in a $12 million rate decrease for
Kansas customers beginning in 2003 and an accounting authority
order has been requested from the Missouri Public Service
Commission.
- Great Plains Energy decided to strengthen the balance sheet
with an expected common equity offering of $150 million to
be completed later in the year.
- Strategic Energy increased revenues by 250% primarily due to
expanded business in Texas.
Commenting on the unprecedented ice storm, Chairman Bernie
Beaudoin said, "As a result of negotiations on the storm
restoration costs, we are pleased to offer our Kansas customers a
$12 million annual rate decrease in return for a four year rate
moratorium. This is a balanced solution for our shareholders and
Kansas customers. Also, today we filed in Missouri to seek a
solution for that portion of our business."
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EQUITY FINANCING
After considering various alternatives to enhance the Company's
financial strength and flexibility, Great Plains Energy also
announced its plans to issue $150 million in additional
common equity. Proceeds of the sale will be used to reduce debt
at Great Plains Energy and Kansas City Power & Light Company
(KCP&L).
Beaudoin commented on the Company's financing plans, "We have
chosen to accelerate the increase in our equity ratio through an
offering of common shares this year. I am also pleased to report
that we remain committed to maintaining our dividend at the
current quarterly rate."
KANSAS CITY POWER & LIGHT
Total revenues for the first quarter at KCP&L were $198.9
million, essentially unchanged from $198.8 million in the first
quarter of 2001. Retail revenues were off 3.2% for the first
quarter of 2002 to $178.3 million from $184.1 million in the
first quarter of 2001 due primarily to milder winter weather in
2002. The decline in retail revenues was offset by a 62.5%
increase in bulk power revenues to $16.6 million from $10.2
million in 2001.
KCP&L recorded a loss of $0.11 per share for the quarter compared
to a loss of $0.04 in the first quarter of 2001. The loss in the
current quarter is primarily due to $14.8 million, or $0.15 per
share, of expenses recorded as a result of the January 2002 ice
storm. Additionally, pension expense increased by $4.0 million
lowering earnings per share by $0.04 in the first quarter of 2002
compared to the first quarter of 2001 primarily due to a
significant decline in the market value of plan assets at the end
of the plan's year which is September 30, 2001.
As previously mentioned, a severe ice storm occurred throughout
large portions of the Midwest in late January 2002, including the
greater Kansas City metropolitan area. At its peak, the storm
caused outages at over 50% of KCP&L's customers. This level of
outages is unprecedented in the Company's 120-year history.
Costs related to the January ice storm were approximately $45.4
million of which $12.5 million were capital expenditures and
therefore charged to utility plant. The Company expensed $14.8
million, or $0.15 per share, for the Kansas jurisdictional
portion of the storm costs and deferred $18.1 million of the
storm costs applicable to Missouri. The Company has reached a
stipulation and agreement with the Kansas Corporation Commission
staff and the Citizens Utility Ratepayers Board that would result
in a rate moratorium until 2006 in return for KCP&L's agreement
to not seek reimbursement for storm-related costs, and reduce
rates by $5 million annually beginning in 2003. Additionally
KCP&L agreed to determine depreciation expense of the Wolf Creek
nuclear generating station using a 60 year life instead of 40
effective January 2003, which results in a reduction of
depreciation expense and revenue by approximately $7 to $8
million annually. Additionally, on April 24, 2002, KCP&L filed a
request for an accounting authority order with the Missouri
Public Service Commission for deferral and amortization over a
five-year period of the Missouri jurisdictional portion of the
storm costs. Once the order is received from the Missouri Public
Service Commission, the Company will begin amortizing the
Missouri storm expense. The impact in 2002 is expected to be
$2.1 million, or $.02 per share, and $3.6 million, or $.04 per
share, annually for the remainder of the amortization period.
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KLT INC.
KLT Inc., which manages the Company's high-growth competitive
businesses, recorded earnings of $0.09 per share in the first
quarter of 2002 compared to earnings of $0.27 per share in the
same quarter of 2001. The prior year results included a $0.26
per share gain on early extinguishment of debt as a result of
restructuring debt at Digital Teleport, Inc. (DTI), a majority-
owned, subsidiary of KLT Telecom at March 31, 2001.
Following is a discussion of each of KLT Inc.'s primary operating
businesses:
STRATEGIC ENERGY LLC, a Pittsburgh-based energy management
company, continues the profitable expansion of its business.
Strategic Energy contributed earnings of $0.11 per share in the
first quarter of 2002 compared to $0.02 per share in the same
quarter of 2001. Business expansion, primarily in Texas,
resulted in a 250% increase in revenues to $152.2 million in the
first quarter of 2002 compared to the same quarter in 2001. Peak
megawatts under management at March 31, 2002 were 2,354 compared
with 2,181 at December 31, 2001 and 612 at March 31, 2001.
KLT GAS, located in Houston, specializes in the acquisition and
development of natural gas properties, specifically coal bed
methane. KLT Gas derives earnings from two sources - gas
production from developed properties and gains on the sale of
developed properties. In the quarter ending March 31, 2002, KLT
Gas broke even compared with earnings of $0.02 per share in the
prior year quarter. The company's current development portfolio
consists of approximately 200,000 prospective acres in four
different basins.
DTI HOLDINGS, INC. and its subsidiary DIGITAL TELEPORT, INC.,
Inc., a fiber optic business located in St.Louis, filed voluntary
petitions for bankruptcy on December 31, 2001. DTI's
reorganization under Chapter 11 of the U.S. Bankruptcy Code
continues in process. In the three months ended March 31, 2002,
there were no asset dispositions and the timing of completion of
the bankruptcy process has yet to be determined. During the
quarter, the bankruptcy court approved $5 million in debtor-in-
possession (DIP) financing to be provided by KLT Telecom. To
date, none of the DIP financing has been needed by DTI. As a
result of DTI's filing for bankruptcy protection, KLT Telecom has
not included in its results the ongoing earnings or loss incurred
by DTI during the quarter.
Great Plains Energy is the holding company for three wholly owned
subsidiaries: Kansas City Power & Light Company, a leading
regulated provider of electricity in the Midwest; Great Plains
Power Inc., a competitive generator that will sell to the
wholesale market; and KLT Inc., an investment company focusing on
energy related ventures that are unregulated with high growth
potential. Headquartered in Kansas City, Missouri, the Company's
web site is www.kcpl.com.
Great Plains Energy Incorporated will broadcast a discussion of
these results via the Internet on Thursday, April 25, 2002 at
9:00 AM Eastern/8:00 AM Central. The presentation can be
accessed through www.kcpl.com. A replay of the webcast will be
available on the web site until close of business on May 3, 2002.
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CERTAIN FORWARD-LOOKING INFORMATION -- Statements made in this
presentation that are not based on historical facts are forward-
looking, may involve risks and uncertainties, and are intended to
be as of the date when made. In connection with the safe harbor
provisions of the Private Securities Litigation Reform Act of
1995, the Company is providing a number of important factors that
could cause actual results to differ materially from provided
forward-looking information. These important factors include:
future economic conditions in the regional, national and
international markets; state, federal and foreign regulation;
weather conditions including weather-related damage; cost of
fuel; financial market conditions including, but not limited to,
changes in interest rates; inflation rates; increased competition
including, but not limited to, the deregulation of the electric
utility industry and the entry of new competitors; ability to
carry out marketing and sales plans; ability to achieve
generation planning goals and the occurrence of unplanned
generation outages; nuclear operations; ability to enter new
markets successfully and capitalize on growth opportunities in
nonregulated businesses; adverse changes in applicable laws,
regulations or rules governing environmental regulations
(including air quality), tax or accounting matters; delays in the
anticipated in-service dates of additional generating capacity;
performance of projects undertaken by our non-regulated
businesses and the success of efforts to invest in and develop
new opportunities; non-performance of counterparties;
availability and cost of capital; and other risks and
uncertainties. This list of factors is not all-inclusive because
it is not possible to predict all possible factors.
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GREAT PLAINS ENERGY
Consolidated Statements of Income
(Unaudited)
Three Months Ended March 31 2002 2001
(thousands)
Operating Revenues
Electric sales revenues $ 350,743 $249,137
Gas sales revenue 460 11,975
Other revenues 13,403 19,078
Total 364,606 280,190
Operating Expenses
Fuel 34,007 32,714
Purchased power 141,723 68,699
Gas purchased and production expenses 852 12,155
Other 77,204 79,800
Maintenance 34,934 21,309
Depreciation and depletion 37,431 36,631
(Gain) Loss on property 41 (1,308)
General taxes 23,161 22,852
Total 349,353 272,852
Operating income 15,253 7,338
Loss from equity investments (316) (536)
Minority interest in subsidiaries (2,437) 2,785
Non-operating income and expenses (7,165) (3,965)
Interest charges 20,798 24,221
Loss before income taxes (15,463) (18,599)
Income taxes (12,566) (15,627)
Loss before extraordinary item (2,897) (2,972)
Early extinguishment of debt, net of income taxes - 5,872
Net income (loss) (2,897) 12,900
Preferred stock dividend requirements 412 412
Earnings (Loss) available for common stock $ (3,309) $ 12,488
Average number of common shares outstanding 61,884 61,853
Basic and diluted loss per common share $ (0.05) $ 0.06)
before extraordinary item
Early extinguishment of debt - 0.26
Basic and diluted earnings (loss) per common share $ (0.05) $ 0.20
Cash dividends per common share $ 0.415 $ 0.415
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Great Plains Energy
Consolidated Earnings Per Share
Three Months Ended
March
2002 2001
---- ----
Kansas City Power & Light Company (KCP&L)
Operations (0.11) (0.04)
Home Service Solutions Inc. (0.02) (0.03)
Total KCP&L (0.13) (0.07)
KLT Inc.
Strategic Energy, LLC $ 0.11 $ 0.02
DTI Holdings, Inc. and subsidiary
Digital Teleport, Inc. (DTI)
Operations 2/8/01 to 12/31/01 - (0.07)
Gain on early extinguishment of debt
and equity losses prior to majority ownership - 0.26
KLT Gas - 0.02
KLT Investments - 0.05
Other (0.02) (0.01)
Total KLT Inc. 0.09 0.27
Great Plains Energy Incorporated and
Great Plains Power Incorporated (0.01) -
Consolidated Earnings per Share $ (0.05) $ 0.20
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GREAT PLAINS ENERGY INCORPORATED
Summary Income Statement by Segment
Three months ended March 31, 2002
Con-
Three months soli- KLT Inc.
ended dated ---------------------------
March 31, 2002 GPE KCPL DTI SEL Gas Other HSS Other
- -------------- --- ---- --- --- --- ----- --- -----
Operating
revenues 364.6 198.9 - 152.2 0.2 - 13.3 -
Fuel expense (34.0) (34.0) - - - - - -
Purchased
power
expense (141.7) (10.9) - (130.8) - - - -
Other (136.2) (110.8) - (7.0) (2.5) (2.0) (13.0) (0.9)
Depreciation
and depletion (37.4) (35.8) - (0.2) (0.3) - (1.1) -
Gain (loss)
on property - - - - (0.1) - 0.1 -
Operating
income
(loss) 15.3 7.4 - 14.2 (2.7) (2.0) (0.7) (0.9)
Loss from
equity
investments (0.3) - - - - (0.3) - -
Non-operating
income
(expenses) (9.7) (1.9) - (2.4) 0.3 (5.6) 0.1 (0.2)
Interest
charges (20.8) (19.0) - (0.1) - (1.2) (0.4) (0.1)
Income
taxes 12.6 6.6 - (4.8) 2.3 8.1 (0.1) 0.5
Net
income
(loss) (2.9) (6.9) - 6.9 (0.1) (1.0) (1.1) (0.7)
Earnings
(loss)
per GPE
common share (0.05) (0.11) - 0.11 - (0.02) (0.02) (0.01)
Favorable/
(Unfavorable)
variance from Con-
three months soli- KLT Inc.
ended March 31, dated ----------------------------
2001 GPE KCPL DTI SEL Gas Other HSS Other
- -------------- --- ---- --- --- --- ----- --- -----
Operating
revenues 84.4 0.1 (2.3) 91.3 (1.3) - (3.4) -
Fuel
expense (1.3) (1.3) - - - - - -
Purchased
power
expense (73.0) 13.3 - (86.3) - - - -
Other (0.1) (17.8) 3.8 7.3 0.2 (0.5) 7.8 (0.9)
Depreciation
and depletion (0.8) (3.1) 2.6 (0.2) 0.3 0.1 (0.5) -
Gain (loss)
on property (1.3) - - - (1.4) - 0.1 -
Operating
income
(loss) 7.9 (8.8) 4.1 12.1 (2.2) (0.4) 4.0 (0.9)
Income (loss)
from equity
investments 0.2 - - - (0.1) 0.2 0.1 -
Non-operating
income
(expenses) (8.4) 1.3 (0.9) (2.1) 0.3 (4.6) (2.2) (0.2)
Interest
charges 3.4 0.4 4.0 - - (0.9) - (0.1)
Income
taxes (3.0) 2.3 (2.8) (4.1) 0.5 1.7 (1.1) 0.5
Early
extinguishment
of debt (15.9) - (15.9) - - - - -
Net income
(loss) (15.8) (4.8) (11.5) 5.9 (1.5) (4.0) 0.8 (0.7)
Earnings
(loss)
per GPE
common
share (0.25) (0.07) (0.19) 0.09 (0.02) (0.06) 0.01 (0.01)
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