TOPEKA, Kan., Nov. 1, 2016 - Westar Energy, Inc. (NYSE:WR) today announced earnings of $155 million, or $1.09 per share, for the third quarter 2016 compared with earnings of $138 million, or $0.97 per share, for the third quarter 2015. Earnings for the nine months ended Sept. 30, 2016 were $293 million, or $2.06 per share, compared with $253 million, or $1.84 per share, for the same period in 2015.

Higher net income for the third quarter, compared with last year, was driven by better cost recovery through recent rate adjustments and an increase in corporate-owned life insurance income.  The higher revenue was partially offset by a Southwest Power Pool assessment and higher expenses due to improving long-term grid reliability.

Net income for the nine months ended September 30, 2016 also increased primarily from better cost recovery and lower interest expense. The higher revenue was partially offset by merger related-expenses and the Southwest Power Pool assessment.

Earnings Guidance

The company affirmed its 2016 earnings guidance of $2.38 to $2.53 per share with a bias towards the upper end of the range. The earnings guidance drivers are located under Supplemental Materials within the investor section of the company website at www.WestarEnergy.com.

Additional Information

Due to the pending transaction with Great Plains Energy, Westar Energy will no longer host a quarterly webcast and conference call.  Investors may continue to contact our Investor Relations Department at (785) 575-8227.

This earnings announcement, a package of detailed third-quarter financial information, the company's quarterly report on Form 10-Q for the period ended Sept. 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.

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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, 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 Reports on Form 10-Q filed on Aug. 2, 2016 and Nov. 1, 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 September 30,   Nine Months Ended September 30,
  2016   2015   Change   % Change   2016   2015   Change   % Change
  (Dollars In Thousands, Except Per Share Amounts)
REVENUES:                              
Residential  $ 282,272     $ 255,804     $ 26,468     10.3     $ 664,400     $ 610,775     $ 53,625     8.8  
Commercial  218,377     213,461     4,916     2.3     572,247     550,761     21,486     3.9  
Industrial  106,021     105,307     714     0.7     314,723     304,937     9,786     3.2  
Other retail  7,883     1,620     6,263     386.6     (23,002 )   (5,503 )   (17,499 )   (318.0 )
Total Retail Revenues  614,553     576,192     38,361     6.7     1,528,368     1,460,970     67,398     4.6  
Wholesale  86,421     87,918     (1,497 )   (1.7 )   220,520     249,502     (28,982 )   (11.6 )
Transmission  58,462     61,190     (2,728 )   (4.5 )   188,996     181,070     7,926     4.4  
Other  5,218     7,529     (2,311 )   (30.7 )   17,668     21,657     (3,989 )   (18.4 )
Total Revenues  764,654     732,829     31,825     4.3     1,955,552     1,913,199     42,353     2.2  
OPERATING EXPENSES:                              
Fuel and purchased power 155,673     163,943     (8,270 )   (5.0 )   374,361     459,504     (85,143 )   (18.5 )
SPP network transmission costs  57,939     57,487     452     0.8     173,925     171,651     2,274     1.3  
Operating and maintenance  86,758     80,444     6,314     7.8     250,135     248,263     1,872     0.8  
Depreciation and amortization  84,972     77,184     7,788     10.1     252,838     228,529     24,309     10.6  
Selling, general and administrative  60,582     60,485     97     0.2     192,762     179,567     13,195     7.3  
Taxes other than income tax  48,154     37,682     10,472     27.8     145,529     113,047     32,482     28.7  
Total Operating Expenses  494,078     477,225     16,853     3.5     1,389,550     1,400,561     (11,011 )   (0.8 )
INCOME FROM OPERATIONS  270,576     255,604     14,972     5.9     566,002     512,638     53,364     10.4  
OTHER INCOME (EXPENSE):                              
Investment earnings  2,619     314     2,305     734.1     6,916     4,427     2,489     56.2  
Other income  13,353     637     12,716     nm   26,212     18,572     7,640     41.1  
Other expense  (5,887 )   (5,392 )   (495 )   (9.2 )   (14,338 )   (13,737 )   (601 )   (4.4 )
Total Other Income (Expense)  10,085     (4,441 )   14,526     327.1     18,790     9,262     9,528     102.9  
Interest expense  40,897     44,306     (3,409 )   (7.7 )   121,011     134,120     (13,109 )   (9.8 )
INCOME BEFORE INCOME TAXES  239,764     206,857     32,907     15.9     463,781     387,780     76,001     19.6  
Income tax expense  81,211     66,293     14,918     22.5     160,376     127,810     32,566     25.5  
NET INCOME  158,553     140,564     17,989     12.8     303,405     259,970     43,435     16.7  
Less: Net income attributable to noncontrolling interests  3,833     2,561     1,272     49.7     10,760     7,277     3,483     47.9  
NET INCOME ATTRIBUTABLE TO WESTAR ENERGY, INC.  $ 154,720     $ 138,003     $ 16,717     12.1     $ 292,645     $ 252,693     $ 39,952     15.8  
BASIC AND DILUTED EARNINGS PER AVERAGE COMMON SHARE OUTSTANDING ATTRIBUTABLE TO WESTAR ENERGY, INC. (See 10-Q Note 2):                              
Basic earnings per common share  $ 1.09     $ 0.97     $ 0.12     12.4     $ 2.06     $ 1.84     $ 0.22     12.0  
Diluted earnings per common share  $ 1.08     $ 0.97     $ 0.11     11.3     $ 2.05     $ 1.82     $ 0.23     12.6  
AVERAGE EQUIVALENT COMMON SHARES OUTSTANDING  (in thousands):                              
Basic  142,091     141,623     468     0.3     142,039     136,686     5,353     3.9  
Diluted  142,578     141,838     740     0.5     142,413     138,182     4,231     3.1  
DIVIDENDS DECLARED PER COMMON SHARE  $ 0.38     $ 0.36     $ 0.02     5.6     $ 1.14     $ 1.08     $ 0.06     5.6  
Effective income tax rate  34 %   32 %           35 %   33 %        
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Source: Westar Energy, Inc. via Globenewswire

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