WESTAR ENERGY INC /KS - FORM 8-K - EX-99.1 - PRESS RELEASE DATED FEBRUARY 25, 2015 - February 25, 2015

Attached files

file filename
8-K - 8-K - WESTAR ENERGY INC /KSwr_12312014-earningsreleas.htm
EX-99.2 - 2014 FOURTH QUARTER EARNINGS PACKAGE - WESTAR ENERGY INC /KSa123120148-kexhibit992.htm

Exhibit 99.1
WESTAR ENERGY ANNOUNCES 2014 RESULTS
TOPEKA, Kan., Feb. 25, 2015 - Westar Energy, Inc. (NYSE:WR) today announced earnings of $313 million, or $2.40 per share, for 2014 compared with earnings of $293 million, or $2.29 per share, for 2013. Fourth quarter 2014 earnings were $43 million, or $0.33 per share, compared with earnings of $41 million, or $0.32 per share, for the fourth quarter 2013.
    
Higher net income for 2014 was driven primarily by higher prices resulting from investments in air quality controls and transmission infrastructure and an increase in retail sales led by industrial customers. The increase in revenues was partially offset with higher operating costs primarily due to planned maintenance, selling, general and administrative and depreciation expense.

Higher net income for the fourth quarter 2014 was driven primarily by higher prices, offset by an increase in selling, general and administrative costs and higher depreciation.
Earnings Guidance
The company issued 2015 earnings guidance of $2.25 to $2.45 per share and posted to its website a summary of factors it considers to be principal 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.
Dividend Declaration    
The Board of Directors today declared a quarterly dividend of 36 cents per share payable April 1, 2015 on the company's common stock payable to shareholders of record as of March 9, 2015. The new dividend reflects a 3 percent increase over the company's previous quarterly dividend of 35 cents per share, and results in an indicated annual dividend of $1.44 per share.
Conference Call and Additional Company Information
Westar Energy management will host a conference call Thursday, Feb. 26, 2015 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 866-515-2909, participant code 67205944. 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.


WESTAR ENERGY NEWS RELEASE    Page 1 of 3

Westar Energy announces 2014 results


This earnings announcement, a package of detailed fourth quarter and year-end 2014 financial information, the company's annual report on Form 10-K for the period ended Dec. 31, 2014 and other filings the company 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, 2014 (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
Media Relations Manager
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 2014 results


Westar Energy, Inc.
Consolidated Statements of Income
(Unaudited)
 
Three Months Ended Dec. 31,
 
Twelve Months Ended Dec. 31,
 
2014
 
2013
 
Change
 
% Change
 
2014
 
2013
 
Change
 
% Change
 
(In Thousands, Except Per Share Amounts)
REVENUES:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential
$
164,522

 
$
160,190

 
$
4,332

 
2.7
 
$
793,586

 
$
728,852

 
$
64,734

 
8.9
Commercial
165,082

 
154,057

 
11,025

 
7.2
 
727,964

 
667,106

 
60,858

 
9.1
Industrial
100,478

 
92,670

 
7,808

 
8.4
 
414,997

 
374,825

 
40,172

 
10.7
Other retail
(6,592
)
 
6,034

 
(12,626
)
 
(209.2)
 
(24,180
)
 
8,939

 
(33,119
)
 
(370.5)
Total Retail Revenues
423,490

 
412,951

 
10,539

 
2.6
 
1,912,367

 
1,779,722

 
132,645

 
7.5
Wholesale
102,003

 
85,491

 
16,512

 
19.3
 
392,730

 
348,239

 
44,491

 
12.8
Transmission
64,527

 
53,556

 
10,971

 
20.5
 
256,838

 
210,281

 
46,557

 
22.1
Other
6,419

 
7,880

 
(1,461
)
 
(18.5)
 
39,768

 
32,412

 
7,356

 
22.7
Total Revenues
596,439

 
559,878

 
36,561

 
6.5
 
2,601,703

 
2,370,654

 
231,049

 
9.7
OPERATING EXPENSES:
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Fuel and purchased power
166,077

 
151,783

 
14,294

 
9.4
 
705,450

 
634,797

 
70,653

 
11.1
SPP network transmission costs
55,713

 
44,894

 
10,819

 
24.1
 
218,924

 
178,604

 
40,320

 
22.6
Operating and maintenance
89,347

 
93,528

 
(4,181
)
 
(4.5)
 
367,188

 
359,060

 
8,128

 
2.3
Depreciation and amortization
73,172

 
69,289

 
3,883

 
5.6
 
286,442

 
272,593

 
13,849

 
5.1
Selling, general and administrative
70,807

 
66,464

 
4,343

 
6.5
 
250,439

 
224,133

 
26,306

 
11.7
Taxes other than income tax
36,054

 
30,392

 
5,662

 
18.6
 
140,302

 
122,282

 
18,020

 
14.7
Total Operating Expenses
491,170

 
456,350

 
34,820

 
7.6
 
1,968,745

 
1,791,469

 
177,276

 
9.9
INCOME FROM OPERATIONS
105,269

 
103,528

 
1,741

 
1.7
 
632,958

 
579,185

 
53,773

 
9.3
OTHER INCOME (EXPENSE):
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Investment earnings
3,414

 
1,444

 
1,970

 
136.4
 
10,622

 
10,056

 
566

 
5.6
Other income
4,956

 
5,861

 
(905
)
 
(15.4)
 
31,522

 
35,609

 
(4,087
)
 
(11.5)
Other expense
(4,196
)
 
(4,188
)
 
(8
)
 
(0.2)
 
(18,389
)
 
(18,099
)
 
(290
)
 
(1.6)
Total Other Income (Expense)
4,174

 
3,117

 
1,057

 
33.9
 
23,755

 
27,566

 
(3,811
)
 
(13.8)
Interest expense
45,043

 
46,377

 
(1,334
)
 
(2.9)
 
183,118

 
182,167

 
951

 
0.5
INCOME BEFORE INCOME TAXES
64,400

 
60,268

 
4,132

 
6.9
 
473,595

 
424,584

 
49,011

 
11.5
Income tax expense
18,627

 
17,207

 
1,420

 
8.3
 
151,270

 
123,721

 
27,549

 
22.3
NET INCOME
45,773

 
43,061

 
2,712

 
6.3
 
322,325

 
300,863

 
21,462

 
7.1
Less: Net income attributable to noncontrolling interests
2,324

 
1,999

 
325

 
16.3
 
9,066

 
8,343

 
723

 
8.7
NET INCOME ATTRIBUTABLE TO WESTAR ENERGY, INC.
43,449

 
41,062

 
2,387

 
5.8
 
313,259

 
292,520

 
20,739

 
7.1
Earnings per common share, basic
$
0.33

 
$
0.32

 
$
0.01

 
3.1
 
$
2.40

 
$
2.29

 
$
0.11

 
4.8
Average equivalent common shares outstanding
131,467

 
127,892

 
3,575

 
2.8
 
130,015

 
127,463

 
2,552

 
2.0
DIVIDENDS DECLARED PER COMMON SHARE
$
0.35

 
$
0.34

 
$
0.01

 
2.9
 
$
1.40

 
$
1.36

 
$
0.04

 
2.9
Effective income tax rate
28.92
%
 
28.55
%
 
 
 
 
 
31.94
%
 
29.14
%
 
 
 
 

WESTAR ENERGY NEWS RELEASE    Page 3 of 3

WESTAR ENERGY INC /KS Reports