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8-K - FORM 8-K - WESTAR ENERGY INC /KSd350246d8k.htm
EX-99.2 - 2012 FIRST QUARTER EARNINGS PACKAGE - WESTAR ENERGY INC /KSd350246dex992.htm

Exhibit 99.1

 

LOGO  

Media contact:

Gina Penzig,

director, corporate communications

Phone: 785.575.8089

gina.penzig@WestarEnergy.com

 

Investor contact:

Bruce Burns,

director, investor relations

Phone: 785.575.8227

bruce.burns@WestarEnergy.com

WESTAR ENERGY ANNOUNCES 1ST QUARTER 2012 RESULTS

Warmest 1st Quarter in more than 50 years

TOPEKA, Kan., May 9, 2012 — Westar Energy, Inc. (NYSE:WR) today announced earnings for first quarter 2012 were $27 million, or $0.21 per share, compared with $31 million, or $0.27 per share, for the same period in 2011. Earnings for 2011 include the effects of costs related to legal settlements last year. Per share results for the first quarter 2012 reflect additional shares outstanding as a result of the company having issued shares to fund capital investments.

Following is a reconciliation of GAAP to ongoing (non-GAAP) earnings per share:

 

     Three Months Ended March 31,  
     2012      2011     Change  

Basic earnings per share

   $ 0.21       $ 0.27      $ (0.06

Less adjustment for:

       

Legal costs related to legal settlements (a)

     —           (0.01     0.01   
  

 

 

    

 

 

   

 

 

 

Ongoing (non-GAAP) earnings per share

   $ 0.21       $ 0.28      $ (0.07
  

 

 

    

 

 

   

 

 

 

 

(a) Per share amounts adjusted for income tax expense

The primary drivers for the decrease in first quarter 2012 ongoing net income were lower retail sales largely due to extremely mild winter weather and higher costs associated with power plant maintenance. Our service territory experienced the warmest first quarter in more than 50 years. These factors were partially offset by benefits from corporate-owned life insurance.

Reconciliation of GAAP to ongoing (non-GAAP) net income:

 

 


Westar Energy announces first quarter 2012 results    Page  2  of 4

 

 

     Three Months Ended March 31,  
     2012      2011     Change  
     (Dollars in millions)  

Net income attributable to common stock

   $ 27.3       $ 31.3      $ (4.0

Less adjustment for:

       

Legal costs related to legal settlements (a)

     —           (1.0     1.0   
  

 

 

    

 

 

   

 

 

 

Ongoing (non-GAAP) net income

   $ 27.3       $ 32.3      $ (5.0
  

 

 

    

 

 

   

 

 

 

 

(a) Adjusted for income tax expense

Earnings Guidance

The company affirmed its 2012 earnings guidance of $1.85 to $2.00 per share. The company has posted to its website a summary of factors it considers to be principal drivers and adjustments used in arriving at earnings guidance. It is located under Supplemental Materials within the Investors section of the company website at www.WestarEnergy.com.

Conference Call and Additional Company Information

Westar Energy management will host a conference call Thursday, May 10 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 866-770-7125, participant code 75566875. 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, supplemental materials with detailed first quarter 2012 financial information, the company’s quarterly report on Form 10-Q for the period ended Mar. 31, 2012 and other filings the company has made with the Securities and Exchange Commission are available on the company’s website at www.WestarEnergy.com.


Westar Energy announces first quarter 2012 results    Page  3  of 4

 

Westar Energy, Inc. (NYSE: WR) is the largest electric utility in Kansas, providing electric service to about 689,000 customers in the state. Westar Energy has about 7,100 megawatts of electric generating resources and operates and coordinates more than 34,000 miles of electric distribution and transmission lines.

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, 2011 (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 9, 2012 (a) in ITEM 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations and (b) in Part I, Financial Information, ITEM 1. Financial Statements: Notes 8 and 9; and (2) 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.


Westar Energy announces first quarter 2012 results    Page  4  of 4

 

Westar Energy, Inc

Consolidated Statements of Income

(Unaudited)

(In thousands, except per share amounts)

 

     Three Months Ended March 31,  
     2012     2011     Change     % Change  

REVENUES:

        

Residential

   $ 138,418      $ 152,908      $ (14,490     (9.5

Commercial

     129,651        128,827        824        0.6   

Industrial

     85,420        79,196        6,224        7.9   

Other retail

     (2,920     (3,014     94        3.1   
  

 

 

   

 

 

   

 

 

   

Total Retail Revenues

     350,569        357,917        (7,348     (2.1

Wholesale

     71,212        78,594        (7,382     (9.4

Transmission

     45,963        37,176        8,787        23.6   

Other

     7,933        8,033        (100     (1.2
  

 

 

   

 

 

   

 

 

   

Total Revenues

     475,677        481,720        (6,043     (1.3
  

 

 

   

 

 

   

 

 

   

OPERATING EXPENSES:

        

Fuel and purchased power

     127,654        134,184        (6,530     (4.9

Operating and maintenance

     156,044        137,351        18,693        13.6   

Depreciation and amortization

     73,280        70,259        3,021        4.3   

Selling, general and administrative

     47,334        48,767        (1,433     (2.9
  

 

 

   

 

 

   

 

 

   

Total Operating Expenses

     404,312        390,561        13,751        3.5   
  

 

 

   

 

 

   

 

 

   

INCOME FROM OPERATIONS

     71,365        91,159        (19,794     (21.7
  

 

 

   

 

 

   

 

 

   

OTHER INCOME (EXPENSE):

        

Investment income

     4,324        1,968        2,356        119.7   

Other income

     13,590        2,249        11,341        504.3   

Other expense

     (5,553     (5,368     (185     (3.4
  

 

 

   

 

 

   

 

 

   

Total Other Income (Expense)

     12,361        (1,151     13,512        n.m.   
  

 

 

   

 

 

   

 

 

   

Interest expense

     42,046        43,538        (1,492     (3.4
  

 

 

   

 

 

   

 

 

   

INCOME BEFORE INCOME TAXES

     41,680        46,470        (4,790     (10.3

Income tax expense

     12,443        13,513        (1,070     (7.9
  

 

 

   

 

 

   

 

 

   

NET INCOME

     29,237        32,957        (3,720     (11.3

Less: Net income attributable to noncontrolling interests

     1,713        1,373        340        24.8   
  

 

 

   

 

 

   

 

 

   

NET INCOME ATTRIBUTABLE TO WESTAR ENERGY

     27,524        31,584        (4,060     (12.9

Preferred dividends

     242        242        —          —     
  

 

 

   

 

 

   

 

 

   

NET INCOME ATTRIBUTABLE TO COMMON STOCK

   $ 27,282      $ 31,342      $ (4,060     (13.0
  

 

 

   

 

 

   

 

 

   

Earnings per common share, basic

   $ 0.21      $ 0.27      $ (0.06     (22.2
  

 

 

   

 

 

   

 

 

   

Average equivalent common shares outstanding

     126,495        113,875        12,620        11.1   

DIVIDENDS DECLARED PER COMMON SHARE

   $ 0.33      $ 0.32      $ 0.01        3.1   

n.m. – not meaningful