TOPEKA, Kan., Feb. 25, 2015 - Westar Energy, Inc. (NYSE:WR) today announced earnings of $313 million, or $2.40 per share, for 2014 compared with earnings of $293 million, or $2.29 per share, for 2013. Fourth quarter 2014 earnings were $43 million, or $0.33 per share, compared with earnings of $41 million, or $0.32 per share, for the fourth quarter 2013.    

Higher net income for 2014 was driven primarily by higher prices resulting from investments in air quality controls and transmission infrastructure and an increase in retail sales led by industrial customers.  The increase in revenues was partially offset with higher operating costs primarily due to planned maintenance, selling, general and administrative and depreciation expense.

Higher net income for the fourth quarter 2014 was driven primarily by higher prices, offset by an increase in selling, general and administrative costs and higher depreciation.

Earnings Guidance

The company issued 2015 earnings guidance of $2.25 to $2.45 per share and posted to its website a summary of factors it considers to be principal drivers and assumptions 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 36 cents per share payable April 1, 2015 on the company's common stock payable to shareholders of record as of March 9, 2015. The new dividend reflects a 3 percent increase over the company's previous quarterly dividend of 35 cents per share, and results in an indicated annual dividend of $1.44 per share.

Conference Call and Additional Company Information

Westar Energy management will host a conference call Thursday, Feb. 26, 2015 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 866-515-2909, participant code 67205944. 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 fourth quarter and year-end 2014 financial information, the company's annual report on Form 10-K for the period ended Dec. 31, 2014 and other filings the company made with the Securities and Exchange Commission are available on the company's website at www.WestarEnergy.com.

 

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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, 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; 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.

 

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, Inc.

Consolidated Statements of Income

(Unaudited)

 

  Three Months Ended Dec. 31,   Twelve Months Ended Dec. 31,
  2014   2013   Change   % Change   2014   2013   Change   % Change
  (In Thousands, Except Per Share Amounts)
REVENUES:                                          
Residential  $ 164,522     $ 160,190     $ 4,332     2.7   $ 793,586     $ 728,852     $ 64,734     8.9
Commercial  165,082     154,057     11,025     7.2   727,964     667,106     60,858     9.1
Industrial  100,478     92,670     7,808     8.4   414,997     374,825     40,172     10.7
Other retail  (6,592 )   6,034     (12,626 )   (209.2)   (24,180 )   8,939     (33,119 )   (370.5)
Total Retail Revenues  423,490     412,951     10,539     2.6   1,912,367     1,779,722     132,645     7.5
Wholesale  102,003     85,491     16,512     19.3   392,730     348,239     44,491     12.8
Transmission  64,527     53,556     10,971     20.5   256,838     210,281     46,557     22.1
Other  6,419     7,880     (1,461 )   (18.5)   39,768     32,412     7,356     22.7
Total Revenues  596,439     559,878     36,561     6.5   2,601,703     2,370,654     231,049     9.7
OPERATING EXPENSES:                                          
Fuel and purchased power  166,077     151,783     14,294     9.4   705,450     634,797     70,653     11.1
SPP network transmission costs  55,713     44,894     10,819     24.1   218,924     178,604     40,320     22.6
Operating and maintenance  89,347     93,528     (4,181 )   (4.5)   367,188     359,060     8,128     2.3
Depreciation and amortization  73,172     69,289     3,883     5.6   286,442     272,593     13,849     5.1
Selling, general and administrative  70,807     66,464     4,343     6.5   250,439     224,133     26,306     11.7
Taxes other than income tax  36,054     30,392     5,662     18.6   140,302     122,282     18,020     14.7
Total Operating Expenses  491,170     456,350     34,820     7.6   1,968,745     1,791,469     177,276     9.9
INCOME FROM OPERATIONS  105,269     103,528     1,741     1.7   632,958     579,185     53,773     9.3
OTHER INCOME (EXPENSE):                                          
Investment earnings  3,414     1,444     1,970     136.4   10,622     10,056     566     5.6
Other income  4,956     5,861     (905 )   (15.4)   31,522     35,609     (4,087 )   (11.5)
Other expense  (4,196 )   (4,188 )   (8 )   (0.2)   (18,389 )   (18,099 )   (290 )   (1.6)
Total Other Income (Expense)  4,174     3,117     1,057     33.9   23,755     27,566     (3,811 )   (13.8)
Interest expense  45,043     46,377     (1,334 )   (2.9)   183,118     182,167     951     0.5
INCOME BEFORE INCOME TAXES  64,400     60,268     4,132     6.9   473,595     424,584     49,011     11.5
Income tax expense  18,627     17,207     1,420     8.3   151,270     123,721     27,549     22.3
NET INCOME  45,773     43,061     2,712     6.3   322,325     300,863     21,462     7.1
Less: Net income attributable to noncontrolling interests  2,324     1,999     325     16.3   9,066     8,343     723     8.7
NET INCOME  ATTRIBUTABLE TO WESTAR ENERGY, INC.  43,449     41,062     2,387     5.8   313,259     292,520     20,739     7.1
Earnings per common share, basic  $ 0.33     $ 0.32     $ 0.01     3.1   $ 2.40     $ 2.29     $ 0.11     4.8
Average equivalent common shares outstanding  131,467     127,892     3,575     2.8   130,015     127,463     2,552     2.0
DIVIDENDS DECLARED PER COMMON SHARE  $ 0.35     $ 0.34     $ 0.01     2.9   $ 1.40     $ 1.36     $ 0.04     2.9
Effective income tax rate  28.92 %   28.55 %             31.94 %   29.14 %          

 




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Source: Westar Energy, Inc. via Globenewswire
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