WESTAR ENERGY INC /KS - FORM 8-K - EX-99.1 - EXHIBIT - August 6, 2014

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Exhibit 99.1


Westar Energy announces 2nd quarter 2014 results.
TOPEKA, Kan., Aug. 6, 2014 - Westar Energy, Inc. (NYSE:WR) today announced earnings of $53 million, or $0.41 per share, for the second quarter 2014 compared with earnings of $67 million, or $0.53 per share, for the second quarter 2013. Without COLI proceeds, second quarter 2013 earnings would have been $57 million or $0.45 per share. Earnings for the six months ended June 30, 2014 were $122 million, or $0.95 per share, compared with $118 million, or $0.93 per share, for the same period in 2013. Without COLI proceeds, the first half of 2013 earnings would have been $108 million or $0.86 per share.

Lower net income for the three months ended June 30, 2014 was driven largely by no corporate-owned life insurance proceeds and higher planned maintenance costs for the generating fleet. These factors were partially offset by higher revenues for the quarter.
    
Higher net income for the six months ended June 30, 2014 was largely driven by higher revenues. The higher revenues are due principally from higher energy sales from colder weather in the first quarter and higher prices resulting from investments in air quality controls and transmission infrastructure.

Earnings Guidance

The company affirmed its 2014 earnings guidance of $2.30 to $2.45 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 Thursday, Aug. 7 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 866-318-8620, participant code 77563283. 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, 2014 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 NEWS RELEASE    Page 1 of 3
Westar Energy announces 2nd 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, 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; (2) those discussed in the company's Quarterly Report on Form 10-Q filed Aug. 6, 2014, (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 2nd quarter results

Westar Energy, Inc.
Condensed Consolidated Statements of Income
(Unaudited)
 
Three Months Ended Jun. 30,
 
Six Months Ended Jun. 30,
 
2014
 
2013
 
Change
 
% Change
 
2014
 
2013
 
Change
 
% Change
 
(Dollars In Thousands, Except Per Share Amounts)
REVENUES:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential
$
175,671

 
$
165,302

 
$
10,369

 
6.3

 
$
367,958

 
$
330,678

 
$
37,280

 
11.3

Commercial
178,194

 
165,172

 
13,022

 
7.9

 
339,294

 
313,128

 
26,166

 
8.4

Industrial
106,984

 
92,820

 
14,164

 
15.3

 
201,480

 
183,745

 
17,735

 
9.7

Other retail
(3,033
)
 
2,228

 
(5,261
)
 
(236.1
)
 
(11,557
)
 
(944
)
 
(10,613
)
 
(a)

Total Retail Revenues
457,816

 
425,522

 
32,294

 
7.6

 
897,175

 
826,607

 
70,568

 
8.5

Wholesale
82,434

 
81,783

 
651

 
0.8

 
193,047

 
168,253

 
24,794

 
14.7

Transmission
63,700

 
52,804

 
10,896

 
20.6

 
125,166

 
104,315

 
20,851

 
20.0

Other
8,718

 
9,480

 
(762
)
 
(8.0
)
 
25,836

 
16,626

 
9,210

 
55.4

Total Revenues
612,668

 
569,589

 
43,079

 
7.6

 
1,241,224

 
1,115,801

 
125,423

 
11.2

OPERATING EXPENSES:
 
 
 
 
 
 
 
 
 
 
 
 
 
 


Fuel and purchased power
164,779

 
152,700

 
12,079

 
7.9

 
338,618

 
304,452

 
34,166

 
11.2

SPP network transmission costs
55,533

 
44,600

 
10,933

 
24.5

 
107,491

 
88,396

 
19,095

 
21.6

Operating and maintenance
101,839

 
87,999

 
13,840

 
15.7

 
193,629

 
172,154

 
21,475

 
12.5

Depreciation and amortization
70,882

 
67,597

 
3,285

 
4.9

 
140,992

 
134,443

 
6,549

 
4.9

Selling, general and administrative
62,168

 
54,477

 
7,691

 
14.1

 
118,653

 
103,422

 
15,231

 
14.7

Taxes other than income tax
34,738

 
30,704

 
4,034

 
13.1

 
69,571

 
61,482

 
8,089

 
13.2

Total Operating Expenses
489,939

 
438,077

 
51,862

 
11.8

 
968,954

 
864,349

 
104,605

 
12.1

INCOME FROM OPERATIONS
122,729

 
131,512

 
(8,783
)
 
(6.7
)
 
272,270

 
251,452

 
20,818

 
8.3

OTHER INCOME (EXPENSE):
 
 
 
 
 
 
 
 
 
 
 
 
 
 


Investment earnings
3,175

 
1,690

 
1,485

 
87.9

 
5,553

 
5,749

 
(196
)
 
(3.4
)
Other income
5,658

 
13,711

 
(8,053
)
 
(58.7
)
 
11,575

 
17,427

 
(5,852
)
 
(33.6
)
Other expense
(2,287
)
 
(2,354
)
 
67

 
2.8

 
(7,952
)
 
(7,715
)
 
(237
)
 
(3.1
)
Total Other Income
6,546

 
13,047

 
(6,501
)
 
(49.8
)
 
9,176

 
15,461

 
(6,285
)
 
(40.7
)
Interest expense
47,303

 
45,798

 
1,505

 
3.3

 
93,543

 
90,082

 
3,461

 
3.8

INCOME BEFORE INCOME TAXES
81,972

 
98,761

 
(16,789
)
 
(17.0
)
 
187,903

 
176,831

 
11,072

 
6.3

Income tax expense
26,150

 
29,310

 
(3,160
)
 
(10.8
)
 
61,111

 
54,123

 
6,988

 
12.9

NET INCOME
55,822

 
69,451

 
(13,629
)
 
(19.6
)
 
126,792

 
122,708

 
4,084

 
3.3

Less: Net income attributable to noncontrolling interests
2,349

 
2,263

 
86

 
3.8

 
4,365

 
4,375

 
(10
)
 
(0.2
)
NET INCOME ATTRIBUTABLE TO WESTAR ENERGY, INC.
$
53,473

 
$
67,188

 
$
(13,715
)
 
(20.4
)
 
$
122,427

 
$
118,333

 
$
4,094

 
3.5

BASIC AND DILUTED EARNINGS PER AVERAGE COMMON SHARE OUTSTANDING ATTRIBUTABLE TO WESTAR ENERGY, INC. (See 10-Q Note 2):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic earnings per common share
$
0.41

 
$
0.53

 
$
(0.12
)
 
(22.6
)
 
$
0.95

 
$
0.93

 
$
0.02

 
2.2

Diluted earnings per common share
$
0.40

 
$
0.52

 
$
(0.12
)
 
(23.1
)
 
$
0.93

 
$
0.92

 
$
0.01

 
1.1

AVERAGE EQUIVALENT COMMON SHARES OUTSTANDING (in thousands):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic
129,363

 
127,311

 
2,052

 
1.6

 
129,185

 
127,254

 
1,931

 
1.5

Diluted
131,973

 
127,930

 
4,043

 
3.2

 
131,779

 
127,735

 
4,044

 
3.2

DIVIDENDS DECLARED PER COMMON SHARE
$
0.35

 
$
0.34

 
$
0.01

 
2.9

 
$
0.70

 
$
0.68

 
$
0.02

 
2.9

Effective income tax rate
31.90
%
 
29.68
%
 
 
 
 
 
32.52
%
 
30.61
%
 
 
 
 
(a) Change greater than 1,000%.

WESTAR ENERGY NEWS RELEASE    Page 3 of 3

WESTAR ENERGY INC /KS Reports