Westar Energy announces 3rd quarter 2015 results.

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TOPEKA, Kan., Nov. 3, 2015 - Westar Energy, Inc. WR today announced earnings of $138 million, or $0.97 per share, for the third quarter 2015 compared with earnings of $147 million, or $1.13 per share, for the third quarter 2014. Earnings for the nine months ended Sept. 30, 2015 were $253 million, or $1.84 per share, compared with $270 million, or $2.08 per share, for the same period in 2014.

Net income for the third quarter 2015 decreased primarily from lower corporate-owned life insurance benefits, recording a $3 million refund obligation for transmission revenues and recording a $2 million write-off for canceled capital projects related to retirements of generating units.

Net income for the nine months ended Sept. 30, 2015 decreased primarily from lower energy marketing margins of $13 million due to greater power price volatility in 2014 in the wholesale markets and recording an $11 million refund obligation for transmission revenues.

In addition to the decrease in net income, basic EPS decreased for the quarter and year-to-date periods due to issuance of common stock.

Earnings Guidance

The company tightened its 2015 earnings guidance range to $2.18 to $2.25 per share from $2.18 to $2.33.  Additionally the company issued preliminary 2016 earnings guidance of $2.38 to $2.53 per share. Factors the company believes to be drivers of earnings guidance for both years 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, Nov. 4 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 877-703-6106, participant code 48652722. 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 third-quarter financial information, the company's quarterly report on Form 10-Q for the period ended Sept. 30, 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.

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Westar Energy, Inc. 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 Nov. 3, 2015, (a) under the heading "Forward-Looking Statements." (b) in ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations and (c) in Part I, Financial Information, ITEM 1. Financial Statements: Notes 3, 10 and 12; 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:
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 Sep. 30,   Nine Months Ended Sep. 30,
  2015   2014   Change   % Change   2015   2014   Change   % Change
  (Dollars In Thousands, Except Per Share Amounts)
REVENUES:                              
Residential  $ 255,804     $ 261,106     $ (5,302 )   (2.0 )   $ 610,775     $ 629,064     $ (18,289 )   (2.9 )
Commercial  213,461     223,588     (10,127 )   (4.5 )   550,761     562,882     (12,121 )   (2.2 )
Industrial  105,307     113,039     (7,732 )   (6.8 )   304,937     314,518     (9,581 )   (3.0 )
Other retail  1,620     (6,032 )   7,652     126.9     (5,503 )   (17,587 )   12,084     68.7  
Total Retail Revenues  576,192     591,701     (15,509 )   (2.6 )   1,460,970     1,488,877     (27,907 )   (1.9 )
Wholesale  87,918     97,680     (9,762 )   (10.0 )   249,502     290,727     (41,225 )   (14.2 )
Transmission  61,190     67,145     (5,955 )   (8.9 )   181,070     192,311     (11,241 )   (5.8 )
Other  7,529     7,514     15     0.2     21,657     33,349     (11,692 )   (35.1 )
Total Revenues  732,829     764,040     (31,211 )   (4.1 )   1,913,199     2,005,264     (92,065 )   (4.6 )
OPERATING EXPENSES:                              
Fuel and purchased power 163,943     200,755     (36,812 )   (18.3 )   459,504     539,373     (79,869 )   (14.8 )
SPP network transmission costs  57,487     55,720     1,767     3.2     171,651     163,211     8,440     5.2  
Operating and maintenance  80,444     84,213     (3,769 )   (4.5 )   248,263     277,841     (29,578 )   (10.6 )
Depreciation and amortization  77,184     72,279     4,905     6.8     228,529     213,270     15,259     7.2  
Selling, general and administrative  60,485     60,977     (492 )   (0.8 )   179,567     179,633     (66 )   -  
Taxes other than income tax  37,682     34,677     3,005     8.7     113,047     104,248     8,799     8.4  
Total Operating Expenses  477,225     508,621     (31,396 )   (6.2 )   1,400,561     1,477,576     (77,015 )   (5.2 )
INCOME FROM OPERATIONS  255,604     255,419     185     0.1     512,638     527,688     (15,050 )   (2.9 )
OTHER INCOME (EXPENSE):                              
Investment earnings  314     1,655     (1,341 )   (81.0 )   4,427     7,208     (2,781 )   (38.6 )
Other income  637     14,991     (14,354 )   (95.8 )   18,572     26,566     (7,994 )   (30.1 )
Other expense  (5,392 )   (6,242 )   850     13.6     (13,737 )   (14,192 )   455     3.2  
Total Other (Expense) Income  (4,441 )   10,404     (14,845 )   (142.7 )   9,262     19,582     (10,320 )   (52.7 )
Interest expense  44,306     44,531     (225 )   (0.5 )   134,120     138,075     (3,955 )   (2.9 )
INCOME BEFORE INCOME TAXES  206,857     221,292     (14,435 )   (6.5 )   387,780     409,195     (21,415 )   (5.2 )
Income tax expense  66,293     71,532     (5,239 )   (7.3 )   127,810     132,643     (4,833 )   (3.6 )
NET INCOME  140,564     149,760     (9,196 )   (6.1 )   259,970     276,552     (16,582 )   (6.0 )
Less: Net income attributable to noncontrolling interests  2,561     2,378     183     7.7     7,277     6,742     535     7.9  
NET INCOME ATTRIBUTABLE TO WESTAR ENERGY, INC.  $ 138,003     $ 147,382     $ (9,379 )   (6.4 )   $ 252,693     $ 269,810     $ (17,117 )   (6.3 )
BASIC AND DILUTED EARNINGS PER AVERAGE COMMON SHARE OUTSTANDING ATTRIBUTABLE TO WESTAR ENERGY, INC. (See 10-Q Note 2):                              
Basic earnings per common share  $ 0.97     $ 1.13     $ (0.16 )   (14.2 )   $ 1.84     $ 2.08     $ (0.24 )   (11.5 )
Diluted earnings per common share  $ 0.97     $ 1.10     $ (0.13 )   (11.8 )   $ 1.82     $ 2.04     $ (0.22 )   (10.8 )
AVERAGE EQUIVALENT COMMON SHARES OUTSTANDING  (in thousands):                              
Basic  141,623     130,196     11,427     8.8     136,686     129,526     7,160     5.5  
Diluted  141,838     133,029     8,809     6.6     138,182     132,200     5,982     4.5  
DIVIDENDS DECLARED PER COMMON SHARE  $ 0.36     $ 0.35     $ 0.01     2.9     $ 1.08     $ 1.05     $ 0.03     2.9  
Effective income tax rate  32 %   32 %           33 %   32 %        

 

 





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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