WESTAR ENERGY INC /KS - FORM 8-K - EX-99.1 - EXHIBIT - February 26, 2014

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Exhibit 99.1
WESTAR ENERGY ANNOUNCES 2013 RESULTS
TOPEKA, Kan., Feb. 26, 2014 - Westar Energy, Inc. (NYSE:WR) today announced earnings of $293 million, or $2.29 per share, for 2013 compared with earnings of $274 million, or $2.15 per share, for 2012. Fourth quarter 2013 earnings were $41 million, or $0.32 per share, compared with earnings of $46 million, or $0.36 per share, for the fourth quarter 2012.
    
Higher net income for 2013 was driven primarily by higher prices, partially offset by a 2 percent decline in retail electric sales due to mild summer weather, reduced demand by industrial customers, and higher O&M costs for the company’s distribution system and generating plants.
    
Lower net income for the fourth quarter 2013 was driven primarily by higher O&M expenses due in large part to the timing of expenses at the company’s generating plants, distribution system and for general and administrative costs. These higher expenses were partially offset by higher prices and electric sales as a result of cooler weather and increased demand from industrial customers.
Earnings Guidance

The company affirmed 2014 earnings guidance of $2.25 to $2.40 per share and posted to its website a summary of factors it considers to be principal drivers and adjustments 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.
Dividend Declaration
    
The Board of Directors today declared a quarterly dividend of 35 cents per share payable Apr. 1, 2014 on the company's common stock payable to shareholders of record as of Mar. 10, 2014. The new dividend reflects a 3 percent increase over the company's previous quarterly dividend of 34 cents per share, and results in an indicated annual dividend of $1.40 per share.
Conference Call and Additional Company Information

Westar Energy management will host a conference call Thursday, Feb. 27, 2014 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 800.706.7749, participant code 37719407. A webcast of the live conference call will be available at www.WestarEnergy.com.


WESTAR ENERGY NEWS RELEASE    Page 1 of 3

Westar Energy announces 2013 results


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 fourth quarter and year-end 2013 financial information, the company's annual report on Form 10-K for the period ended Dec. 31, 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.

- 30 -

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, a smart meter pilot project 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, 2013 (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; 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.

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 2013 results


Westar Energy, Inc.
Consolidated Statements of Income
(Unaudited)
 
Three Months Ended Dec. 31,
 
Twelve Months Ended Dec. 31,
 
2013
 
2012
 
Change
 
% Change
 
2013
 
2012
 
Change
 
% Change
 
(In Thousands, Except Per Share Amounts)
REVENUES:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential
$
160,190

 
$
148,494

 
$
11,696

 
7.9
 
$
728,852

 
$
714,562

 
$
14,290

 
2.0
Commercial
154,057

 
146,839

 
7,218

 
4.9
 
667,106

 
640,654

 
26,452

 
4.1
Industrial
92,670

 
90,873

 
1,797

 
2.0
 
374,825

 
368,909

 
5,916

 
1.6
Other retail
6,034

 
(6,970
)
 
13,004

 
186.6
 
8,939

 
(5,845
)
 
14,784

 
252.9
Total Retail Revenues
412,951

 
379,236

 
33,715

 
8.9
 
1,779,722
 
1,718,280
 
61,442

 
3.6
Wholesale
85,491

 
87,387

 
(1,896
)
 
(2.2)
 
348,239

 
316,353

 
31,886

 
10.1
Transmission
53,556

 
49,317

 
4,239

 
8.6
 
210,281

 
193,797

 
16,484

 
8.5
Other
7,880

 
7,832

 
48

 
0.6
 
32,412

 
33,040

 
(628
)
 
(1.9)
Total Revenues
559,878

 
523,772

 
36,106

 
6.9
 
2,370,654
 
2,261,470
 
109,184

 
4.8
OPERATING EXPENSES:
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Fuel and purchased power
151,783

 
137,150

 
14,633

 
10.7
 
634,797

 
589,990

 
44,807

 
7.6
SPP network transmission costs
44,894

 
42,405

 
2,489

 
5.9
 
178,604

 
166,547

 
12,057

 
7.2
Operating and maintenance
93,528

 
83,828

 
9,700

 
11.6
 
359,060

 
342,055

 
17,005

 
5.0
Depreciation and amortization
69,289

 
65,823

 
3,466

 
5.3
 
272,593

 
270,464

 
2,129

 
0.8
Selling, general and administrative
66,464

 
61,668

 
4,796

 
7.8
 
224,133

 
226,012

 
(1,879
)
 
(0.8)
Taxes other than income tax
30,392

 
25,123

 
5,269

 
21.0
 
122,282

 
104,269

 
18,013

 
17.3
Total Operating Expenses
456,350

 
415,997

 
40,353

 
9.7
 
1,791,469
 
1,699,337
 
92,132

 
5.4
INCOME FROM OPERATIONS
103,528

 
107,775

 
(4,247
)
 
(3.9)
 
579,185

 
562,133

 
17,052

 
3.0
OTHER INCOME (EXPENSE):
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Investment earnings
1,444

 
955

 
489

 
51.2
 
10,056

 
7,411

 
2,645

 
35.7
Other income
5,861

 
8,136

 
(2,275
)
 
(28.0)
 
35,609

 
35,378

 
231

 
0.7
Other expense
(4,188
)
 
(5,740
)
 
1,552

 
27.0
 
(18,099
)
 
(19,987
)
 
1,888

 
9.4
Total Other Income (Expense)
3,117

 
3,351

 
(234
)
 
(7.0)
 
27,566

 
22,802

 
4,764

 
20.9
Interest expense
46,377

 
44,451

 
1,926

 
4.3
 
182,167

 
176,337

 
5,830

 
3.3
INCOME BEFORE INCOME TAXES
60,268

 
66,675

 
(6,407
)
 
(9.6)
 
424,584

 
408,598

 
15,986

 
3.9
Income tax expense
17,207

 
18,980

 
(1,773
)
 
(9.3)
 
123,721

 
126,136

 
(2,415
)
 
(1.9)
NET INCOME
43,061

 
47,695

 
(4,634
)
 
(9.7)
 
300,863

 
282,462

 
18,401

 
6.5
Less: Net income attributable to noncontrolling interests
1,999

 
2,088

 
(89
)
 
(4.3)
 
8,343

 
7,316

 
1,027

 
14.0
NET INCOME ATTRIBUTABLE TO WESTAR ENERGY, INC.
41,062

 
45,607

 
(4,545
)
 
(10.0)
 
292,520

 
275,146

 
17,374

 
6.3
Preferred dividends
—

 
—

 
—

 
—
 
—

 
1,616

 
(1,616
)
 
(100.0)
NET INCOME ATTRIBUTABLE TO COMMON STOCK
$
41,062

 
$
45,607

 
$
(4,545
)
 
(10.0)
 
$
292,520

 
$
273,530

 
$
18,990

 
6.9
Earnings per common share, basic
$
0.32

 
$
0.36

 
$
(0.04
)
 
(11.1)
 
$
2.29

 
$
2.15

 
$
0.14

 
6.5
Average equivalent common shares outstanding
127,892

 
126,929

 
963

 
0.8
 
127,463

 
126,712

 
751

 
0.6
DIVIDENDS DECLARED PER COMMON SHARE
$
0.34

 
$
0.33

 
$
0.01

 
3.0
 
$
1.36

 
$
1.32

 
$
0.04

 
3.0
Effective income tax rate
28.55
%
 
28.47
%
 
 
 
 
 
29.14
%
 
30.87
%
 
 
 
 

WESTAR ENERGY NEWS RELEASE    Page 3 of 3

WESTAR ENERGY INC /KS Reports