Westar Energy Announces 1st Quarter 2015 Results.
May 05 2015 - 5:00PM
TOPEKA, Kan., May 5, 2015 - Westar Energy, Inc.
(NYSE:WR) today announced earnings of $51 million, or $0.38
per share, for the first quarter 2015 compared with earnings of $69
million, or $0.53 per share, for the first quarter 2014.
Lower net income for the quarter, compared with
last year, reflects milder weather which reduced both energy
marketing margins and retail energy sales and a $6 million
estimated refund obligation for transmission revenues. Lower
expenses partially offset the lower revenues.
Earnings
Guidance
The company lowered its 2015 earnings guidance to
$2.18 to $2.33 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 Wednesday, May 6 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 866-703-6104, participant code
31896774. 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, 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, 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 May 5, 2015, (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
Manager, 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, Inc.
Condensed Consolidated Statements
of Income
(Unaudited)
|
Three Months Ended Mar. 31, |
|
2015 |
|
2014 |
|
Change |
|
% Change |
|
(Dollars
In Thousands, Except Per Share Amounts) |
REVENUES: |
|
|
|
|
|
|
|
Residential |
$ |
181,294 |
|
|
$ |
192,287 |
|
|
$ |
(10,993 |
) |
|
(5.7 |
) |
Commercial |
161,305 |
|
|
161,100 |
|
|
205 |
|
|
0.1 |
|
Industrial |
96,479 |
|
|
94,495 |
|
|
1,984 |
|
|
2.1 |
|
Other
retail |
539 |
|
|
(8,523 |
) |
|
9,062 |
|
|
106.3 |
|
Total
Retail Revenues |
439,617 |
|
|
439,359 |
|
|
258 |
|
|
0.1 |
|
Wholesale |
86,755 |
|
|
110,613 |
|
|
(23,858 |
) |
|
(21.6 |
) |
Transmission |
58,585 |
|
|
61,466 |
|
|
(2,881 |
) |
|
(4.7 |
) |
Other |
5,850 |
|
|
17,118 |
|
|
(11,268 |
) |
|
(65.8 |
) |
Total
Revenues |
590,807 |
|
|
628,556 |
|
|
(37,749 |
) |
|
(6.0 |
) |
OPERATING EXPENSES: |
|
|
|
|
|
|
|
Fuel
and purchased power |
155,482 |
|
|
173,839 |
|
|
(18,357 |
) |
|
(10.6 |
) |
SPP
network transmission costs |
56,812 |
|
|
51,958 |
|
|
4,854 |
|
|
9.3 |
|
Operating and maintenance |
85,080 |
|
|
91,790 |
|
|
(6,710 |
) |
|
(7.3 |
) |
Depreciation and amortization |
74,586 |
|
|
70,110 |
|
|
4,476 |
|
|
6.4 |
|
Selling, general and administrative |
55,418 |
|
|
56,486 |
|
|
(1,068 |
) |
|
(1.9 |
) |
Taxes
other than income tax |
37,871 |
|
|
34,832 |
|
|
3,039 |
|
|
8.7 |
|
Total
Operating Expenses |
465,249 |
|
|
479,015 |
|
|
(13,766 |
) |
|
(2.9 |
) |
INCOME
FROM OPERATIONS |
125,558 |
|
|
149,541 |
|
|
(23,983 |
) |
|
(16.0 |
) |
OTHER
INCOME (EXPENSE): |
|
|
|
|
|
|
|
Investment earnings |
2,480 |
|
|
2,378 |
|
|
102 |
|
|
4.3 |
|
Other
income |
2,814 |
|
|
5,917 |
|
|
(3,103 |
) |
|
(52.4 |
) |
Other
expense |
(5,713 |
) |
|
(5,664 |
) |
|
(49 |
) |
|
(0.9 |
) |
Total
Other (Expense) Income |
(419 |
) |
|
2,631 |
|
|
(3,050 |
) |
|
(115.9 |
) |
Interest expense |
44,298 |
|
|
46,241 |
|
|
(1,943 |
) |
|
(4.2 |
) |
INCOME
BEFORE INCOME TAXES |
80,841 |
|
|
105,931 |
|
|
(25,090 |
) |
|
(23.7 |
) |
Income
tax expense |
27,678 |
|
|
34,961 |
|
|
(7,283 |
) |
|
(20.8 |
) |
NET
INCOME |
53,163 |
|
|
70,970 |
|
|
(17,807 |
) |
|
(25.1 |
) |
Less:
Net income attributable to noncontrolling interests |
2,183 |
|
|
2,015 |
|
|
168 |
|
|
8.3 |
|
NET
INCOME ATTRIBUTABLE TO COMMON STOCK |
$ |
50,980 |
|
|
$ |
68,955 |
|
|
$ |
(17,975 |
) |
|
(26.1 |
) |
BASIC
AND DILUTED EARNINGS PER AVERAGE COMMON SHARE OUTSTANDING
ATTRIBUTABLE TO WESTAR ENERGY, INC. (See 10-Q Note 2): |
|
|
|
|
|
|
|
Basic
earnings per common share |
$ |
0.38 |
|
|
$ |
0.53 |
|
|
$ |
(0.15 |
) |
|
(28.3 |
) |
Diluted earnings per common share |
$ |
0.38 |
|
|
$ |
0.52 |
|
|
$ |
(0.14 |
) |
|
(26.9 |
) |
AVERAGE EQUIVALENT COMMON SHARES OUTSTANDING (in thousands): |
|
|
|
|
|
|
|
Basic |
132,395 |
|
|
129,004 |
|
|
3,391 |
|
|
2.6 |
|
Diluted |
135,540 |
|
|
131,269 |
|
|
4,271 |
|
|
3.3 |
|
DIVIDENDS DECLARED PER COMMON SHARE |
$ |
0.36 |
|
|
$ |
0.35 |
|
|
$ |
0.01 |
|
|
2.9 |
|
Effective income tax rate |
34.24 |
% |
|
33.00 |
% |
|
|
|
|
This
announcement is distributed by NASDAQ OMX Corporate Solutions on
behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Westar Energy, Inc. via Globenewswire
HUG#1919053
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