Westar Energy announces 2nd quarter 2016 results.
August 02 2016 - 5:00PM
TOPEKA, Kan., Aug. 2, 2016 -
Westar Energy, Inc. (NYSE:WR) today announced earnings of
$72 million, or $0.51 per share, for the second quarter 2016
compared with earnings of $64 million, or $0.47 per share, for
the second quarter 2015. Earnings for the six months ended June 30,
2016 were $138 million, or $0.97 per share, compared with $115
million, or $0.85 per share, for the same period in 2015.
Higher net income for the second quarter, compared with
last year, was driven by the impact of regulatory rate review that
concluded in late 2015, higher sales due to warmer spring weather,
and lower interest expense. The higher revenue was partially offset
by a decrease of corporate owned life insurance benefit and
merger-related expenses.
Net
income for the six months ended June 30, 2016 also increased
primarily from impact of regulatory rate review that concluded in
late 2015 and lower interest expense. The higher revenue was
partially offset by merger related-expenses, a decrease in
corporate owned life insurance benefit, and lower sales due to
unusually mild winter weather.
Earnings Guidance
The company affirmed its 2016 earnings guidance of $2.38 to $2.53
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. 3 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 844-646-4526, conference ID 45090870. 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, 2016 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. Westar Energy
is on Facebook: www.Facebook.com/westarenergy and Twitter:
www.Twitter.com/WestarEnergy.
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, 2015 (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. 2, 2016, (a) under the heading
"Forward-Looking Statements." (b) in ITEM 2. Management's
Discussion and Analysis of Financial Condition and Results of
Operations, (c) in Part I, Financial Information, ITEM 1. Financial
Statements: Notes 3, 11 and 12, and (d) ITEM 1A. Risk Factors; 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:
Cody VandeVelde
Director, Investor Relations
Phone: 785-575-8227
Cody.VandeVelde@westarenergy.com
Westar Energy, Inc.
Condensed Consolidated Statements of Income
(Unaudited)
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
2016 |
|
2015 |
|
Change |
|
% Change |
|
2016 |
|
2015 |
|
Change |
|
% Change |
|
(Dollars
In Thousands, Except Per Share Amounts) |
REVENUES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential |
$ |
202,838 |
|
|
$ |
173,677 |
|
|
$ |
29,161 |
|
|
16.8 |
|
|
$ |
382,128 |
|
|
$ |
354,970 |
|
|
$ |
27,158 |
|
|
7.7 |
|
Commercial |
188,197 |
|
|
175,994 |
|
|
12,203 |
|
|
6.9 |
|
|
353,870 |
|
|
337,300 |
|
|
16,570 |
|
|
4.9 |
|
Industrial |
108,004 |
|
|
103,151 |
|
|
4,853 |
|
|
4.7 |
|
|
208,702 |
|
|
199,630 |
|
|
9,072 |
|
|
4.5 |
|
Other
retail |
(16,502 |
) |
|
(7,660 |
) |
|
(8,842 |
) |
|
(115.4 |
) |
|
(30,884 |
) |
|
(7,122 |
) |
|
(23,762 |
) |
|
(333.6 |
) |
Total
Retail Revenues |
482,537 |
|
|
445,162 |
|
|
37,375 |
|
|
8.4 |
|
|
913,816 |
|
|
884,778 |
|
|
29,038 |
|
|
3.3 |
|
Wholesale |
66,687 |
|
|
74,828 |
|
|
(8,141 |
) |
|
(10.9 |
) |
|
134,099 |
|
|
161,584 |
|
|
(27,485 |
) |
|
(17.0 |
) |
Transmission |
66,620 |
|
|
61,295 |
|
|
5,325 |
|
|
8.7 |
|
|
130,535 |
|
|
119,880 |
|
|
10,655 |
|
|
8.9 |
|
Other |
5,604 |
|
|
8,278 |
|
|
(2,674 |
) |
|
(32.3 |
) |
|
12,448 |
|
|
14,128 |
|
|
(1,680 |
) |
|
(11.9 |
) |
Total
Revenues |
621,448 |
|
|
589,563 |
|
|
31,885 |
|
|
5.4 |
|
|
1,190,898 |
|
|
1,180,370 |
|
|
10,528 |
|
|
0.9 |
|
OPERATING EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fuel
and purchased power |
118,630 |
|
|
140,080 |
|
|
(21,450 |
) |
|
(15.3 |
) |
|
218,688 |
|
|
295,561 |
|
|
(76,873 |
) |
|
(26.0 |
) |
SPP
network transmission costs |
55,227 |
|
|
57,352 |
|
|
(2,125 |
) |
|
(3.7 |
) |
|
115,987 |
|
|
114,164 |
|
|
1,823 |
|
|
1.6 |
|
Operating and maintenance |
85,619 |
|
|
82,739 |
|
|
2,880 |
|
|
3.5 |
|
|
163,377 |
|
|
167,819 |
|
|
(4,442 |
) |
|
(2.6 |
) |
Depreciation and amortization |
84,226 |
|
|
76,759 |
|
|
7,467 |
|
|
9.7 |
|
|
167,866 |
|
|
151,345 |
|
|
16,521 |
|
|
10.9 |
|
Selling, general and administrative |
75,724 |
|
|
63,663 |
|
|
12,061 |
|
|
18.9 |
|
|
132,179 |
|
|
119,082 |
|
|
13,097 |
|
|
11.0 |
|
Taxes
other than income tax |
48,407 |
|
|
37,494 |
|
|
10,913 |
|
|
29.1 |
|
|
97,375 |
|
|
75,365 |
|
|
22,010 |
|
|
29.2 |
|
Total
Operating Expenses |
467,833 |
|
|
458,087 |
|
|
9,746 |
|
|
2.1 |
|
|
895,472 |
|
|
923,336 |
|
|
(27,864 |
) |
|
(3.0 |
) |
INCOME
FROM OPERATIONS |
153,615 |
|
|
131,476 |
|
|
22,139 |
|
|
16.8 |
|
|
295,426 |
|
|
257,034 |
|
|
38,392 |
|
|
14.9 |
|
OTHER
INCOME (EXPENSE): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment earnings |
2,280 |
|
|
1,634 |
|
|
646 |
|
|
39.5 |
|
|
4,296 |
|
|
4,113 |
|
|
183 |
|
|
4.4 |
|
Other
income |
3,382 |
|
|
15,121 |
|
|
(11,739 |
) |
|
(77.6 |
) |
|
12,860 |
|
|
17,935 |
|
|
(5,075 |
) |
|
(28.3 |
) |
Other
expense |
(2,908 |
) |
|
(2,633 |
) |
|
(275 |
) |
|
(10.4 |
) |
|
(8,451 |
) |
|
(8,345 |
) |
|
(106 |
) |
|
(1.3 |
) |
Total
Other Income |
2,754 |
|
|
14,122 |
|
|
(11,368 |
) |
|
(80.5 |
) |
|
8,705 |
|
|
13,703 |
|
|
(4,998 |
) |
|
(36.5 |
) |
Interest expense |
39,683 |
|
|
45,516 |
|
|
(5,833 |
) |
|
(12.8 |
) |
|
80,114 |
|
|
89,814 |
|
|
(9,700 |
) |
|
(10.8 |
) |
INCOME
BEFORE INCOME TAXES |
116,686 |
|
|
100,082 |
|
|
16,604 |
|
|
16.6 |
|
|
224,017 |
|
|
180,923 |
|
|
43,094 |
|
|
23.8 |
|
Income
tax expense |
40,542 |
|
|
33,839 |
|
|
6,703 |
|
|
19.8 |
|
|
79,165 |
|
|
61,517 |
|
|
17,648 |
|
|
28.7 |
|
NET
INCOME |
76,144 |
|
|
66,243 |
|
|
9,901 |
|
|
14.9 |
|
|
144,852 |
|
|
119,406 |
|
|
25,446 |
|
|
21.3 |
|
Less:
Net income attributable to noncontrolling interests |
3,804 |
|
|
2,533 |
|
|
1,271 |
|
|
50.2 |
|
|
6,927 |
|
|
4,716 |
|
|
2,211 |
|
|
46.9 |
|
NET
INCOME ATTRIBUTABLE TO WESTAR ENERGY, INC. |
$ |
72,340 |
|
|
$ |
63,710 |
|
|
$ |
8,630 |
|
|
13.5 |
|
|
$ |
137,925 |
|
|
$ |
114,690 |
|
|
$ |
23,235 |
|
|
20.3 |
|
BASIC
AND DILUTED EARNINGS PER AVERAGE COMMON SHARE OUTSTANDING
ATTRIBUTABLE TO WESTAR ENERGY, INC. (See 10-Q Note 2): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
earnings per common share |
$ |
0.51 |
|
|
$ |
0.47 |
|
|
$ |
0.04 |
|
|
8.5 |
|
|
$ |
0.97 |
|
|
$ |
0.85 |
|
|
$ |
0.12 |
|
|
14.1 |
|
Diluted earnings per common share |
$ |
0.51 |
|
|
$ |
0.46 |
|
|
$ |
0.05 |
|
|
10.9 |
|
|
$ |
0.97 |
|
|
$ |
0.84 |
|
|
$ |
0.13 |
|
|
15.5 |
|
AVERAGE EQUIVALENT COMMON SHARES OUTSTANDING (in
thousands): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
142,034 |
|
|
135,939 |
|
|
6,095 |
|
|
4.5 |
|
|
142,013 |
|
|
134,177 |
|
|
7,836 |
|
|
5.8 |
|
Diluted |
142,497 |
|
|
137,412 |
|
|
5,085 |
|
|
3.7 |
|
|
142,361 |
|
|
136,330 |
|
|
6,031 |
|
|
4.4 |
|
DIVIDENDS DECLARED PER COMMON SHARE |
$ |
0.38 |
|
|
$ |
0.36 |
|
|
$ |
0.02 |
|
|
5.6 |
|
|
$ |
0.76 |
|
|
$ |
0.72 |
|
|
$ |
0.04 |
|
|
5.6 |
|
Effective income tax rate |
35 |
% |
|
34 |
% |
|
|
|
|
|
35 |
% |
|
34 |
% |
|
|
|
|
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
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