WESTAR ENERGY INC /KS - FORM 8-K - EX-99.1 - PRESS RELEASE DATED NOVEMBER 7, 2013 - November 7, 2013

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EX-99.2 - 2013 THIRD QUARTER EARNINGS PACKAGE - WESTAR ENERGY INC /KSwr-09302013x8xkexhibit992.htm
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Exhibit 99.1


WESTAR ENERGY ANNOUNCES 3rd QUARTER 2013 RESULTS
TOPEKA, Kan., Nov. 7, 2013 - Westar Energy, Inc. (NYSE:WR) today announced earnings of $133 million, or $1.04 per share, for the third quarter 2013 compared with earnings of $139 million, or $1.10 per share, for the third quarter 2012. Earnings for the nine months ended Sep. 30, 2013 were $251 million, or $1.97 per share, compared with $228 million, or $1.79 per share, for the same period in 2012.

Lower net income for the three months ending Sep. 30, 2013 was driven by cooler weather, reduced demand from industrial customers and higher O&M costs at the company’s power plants. The decreases were partially offset by recording income from corporate-owned life insurance and price increases.

Higher net income for the nine months ending Sep. 30, 2013 was driven primarily by higher prices, recording additional benefits from corporate-owned life insurance and lower general and administrative costs. These benefits were partially offset by lower electric sales as a result of cooler weather and reduced demand primarily from industrial customers.

Earnings Guidance
The company revised its 2013 earnings guidance of $2.05 to $2.15 per share to $2.20 to $2.30 per share. The increase reflects year-to-date trends including improved residential and commercial sales, lower interest expenses, benefits from lower operating expenses and lower effective income tax rate. The company has posted to its website an updated summary of factors it considers to be key drivers and assumptions used in arriving at earnings guidance. The summary 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 Friday, Nov. 8 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 877.415.3179, participant code 63251422. 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 Sep. 30, 2013 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 NEWS RELEASE    Page 1 of 3
Westar Energy announces 3rd quarter results


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.

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, 2012 (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. 7, 2013, (a) in ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations and (b) in Part I, Financial Information, ITEM 1. Financial Statements: Notes 10 and 11;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
Director, corporate communications
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 NEWS RELEASE    Page 2 of 3
Westar Energy announces 3rd quarter results

Westar Energy, Inc.
Consolidated Statements of Income
(Unaudited)

 
Three Months Ended Sept. 30,
 
Nine Months Ended Sept. 30,
 
2013
 
2012
 
Change
 
% Change
 
2013
 
2012
 
Change
 
% Change
 
(Dollars In Thousands, Except Per Share Amounts)
REVENUES:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential
$
237,984

 
$
250,757

 
$
(12,773
)
 
(5.1
)
 
$
568,662

 
$
566,069

 
$
2,593

 
0.5

Commercial
199,921

 
194,032

 
5,889

 
3.0

 
513,049

 
493,814

 
19,235

 
3.9

Industrial
98,410

 
96,656

 
1,754

 
1.8

 
282,155

 
278,036

 
4,119

 
1.5

Other retail
3,849

 
6,407

 
(2,558
)
 
(39.9
)
 
2,905

 
1,125

 
1,780

 
158.2

Total Retail Revenues
540,164

 
547,852

 
(7,688
)
 
(1.4
)
 
1,366,771

 
1,339,044

 
27,727

 
2.1

Wholesale
94,496

 
88,784

 
5,712

 
6.4

 
262,749

 
228,966

 
33,783

 
14.8

Transmission
52,410

 
49,137

 
3,273

 
6.7

 
156,725

 
144,480

 
12,245

 
8.5

Other
7,904

 
9,985

 
(2,081
)
 
(20.8
)
 
24,531

 
25,208

 
(677
)
 
(2.7
)
Total Revenues
694,974

 
695,758

 
(784
)
 
(0.1
)
 
1,810,776

 
1,737,698

 
73,078

 
4.2

OPERATING EXPENSES:
 
 
 
 
 
 
 
 
 
 
 
 
 
 


Fuel and purchased power
178,562

 
177,506

 
1,056

 
0.6

 
483,014

 
452,840

 
30,174

 
6.7

Operating and maintenance
169,100

 
149,001

 
20,099

 
13.5

 
491,132

 
461,515

 
29,617

 
6.4

Depreciation and amortization
68,861

 
65,061

 
3,800

 
5.8

 
203,305

 
204,640

 
(1,335
)
 
(0.7
)
Selling, general and administrative
54,245

 
54,300

 
(55
)
 
(0.1
)
 
157,668

 
164,346

 
(6,678
)
 
(4.1
)
Total Operating Expenses
470,768

 
445,868

 
24,900

 
5.6

 
1,335,119

 
1,283,341

 
51,778

 
4.0

INCOME FROM OPERATIONS
224,206

 
249,890

 
(25,684
)
 
(10.3
)
 
475,657

 
454,357

 
21,300

 
4.7

OTHER INCOME (EXPENSE):
 
 
 
 
 
 
 
 
 
 
 
 
 
 


Investment earnings (losses)
2,863

 
2,729

 
134

 
4.9

 
8,612

 
6,456

 
2,156

 
33.4

Other income
12,321

 
6,115

 
6,206

 
101.5

 
29,748

 
27,242

 
2,506

 
9.2

Other expense
(6,195
)
 
(6,278
)
 
83

 
1.3

 
(13,911
)
 
(14,246
)
 
335

 
2.4

Total Other Income
8,989

 
2,566

 
6,423

 
250.3

 
24,449

 
19,452

 
4,997

 
25.7

Interest expense
45,708

 
45,017

 
691

 
1.5

 
135,790

 
131,886

 
3,904

 
3.0

INCOME BEFORE INCOME TAXES
187,487

 
207,439

 
(19,952
)
 
(9.6
)
 
364,316

 
341,923

 
22,393

 
6.5

Income tax expense
52,392

 
66,372

 
(13,980
)
 
(21.1
)
 
106,514

 
107,156

 
(642
)
 
(0.6
)
NET INCOME
135,095

 
141,067

 
(5,972
)
 
(4.2
)
 
257,802

 
234,767

 
23,035

 
9.8

Less: Net income attributable to noncontrolling interests
1,970

 
1,786

 
184

 
10.3

 
6,344

 
5,228

 
1,116

 
21.3

NET INCOME ATTRIBUTABLE TO WESTAR ENERGY, INC.
133,125

 
139,281

 
(6,156
)
 
(4.4
)
 
251,458

 
229,539

 
21,919

 
9.5

Preferred dividends
—

 
—

 
—

 
—

 
—

 
1,616

 
(1,616
)
 
(100.0
)
NET INCOME ATTRIBUTABLE TO COMMON STOCK
$
133,125

 
$
139,281

 
$
(6,156
)
 
(4.4
)
 
$
251,458

 
$
227,923

 
$
23,535

 
10.3

BASIC AND DILUTED EARNINGS PER AVERAGE COMMON SHARE OUTSTANDING ATTRIBUTABLE TO WESTAR ENERGY, INC. (See 10-Q Note 2):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic earnings per common share
$
1.04

 
$
1.10

 
$
(0.06
)
 
(5.5
)
 
$
1.97

 
$
1.79

 
$
0.18

 
10.1

Diluted earnings per common share
$
1.04

 
$
1.09

 
$
(0.05
)
 
(4.6
)
 
$
1.96

 
$
1.79

 
$
0.17

 
9.5

AVERAGE EQUIVALENT COMMON SHARES OUTSTANDING (in thousands):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic
127,445

 
126,783

 
662

 
0.5

 
127,318

 
126,639

 
679

 
0.5

Diluted
128,111

 
127,135

 
976

 
0.8

 
127,851

 
126,855

 
996

 
0.8

DIVIDENDS DECLARED PER COMMON SHARE
$
0.34

 
$
0.33

 
$
0.01

 
3.0

 
$
1.02

 
$
0.99

 
$
0.03

 
3.0

Effective income tax rate
27.94
%
 
32.00
%
 
 
 
 
 
29.24
%
 
31.34
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

WESTAR ENERGY NEWS RELEASE    Page 3 of 3

WESTAR ENERGY INC /KS Reports