TOPEKA, Kan., Aug. 2, 2016 - Westar Energy, Inc. 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.
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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. 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 | % | |||||||||||||||||||||
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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