WESTAR ENERGY INC /KS - FORM 8-K - EX-99.1 - EXHIBIT 99.1 - May 3, 2016

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8-K - 8-K - WESTAR ENERGY INC /KSwr-03312016xearningsreleas.htm
EX-99.2 - EXHIBIT 99.2 - WESTAR ENERGY INC /KSwr-03312016x8xkexhibit992.htm
Exhibit 99.1


Westar Energy Announces 1st Quarter 2016 Results.
TOPEKA, Kan., May 3, 2016 - Westar Energy, Inc. (NYSE:WR) today announced earnings of $66 million, or $0.46 per share, for the first quarter 2016 compared with earnings of $51 million, or $0.38 per share, for the first quarter 2015.

Higher net income for the quarter, compared with last year, was driven by the impact of last fall's rate order which recovered the costs of mandated air quality controls, higher corporate owned life insurance proceeds, lower distribution system expenses, and lower operating and maintenance costs as a result of the company retiring some of its older, smaller generating plants late last year. The higher revenues were partially offset by the effects of unusually mild weather.

Earnings Guidance
The company affirmed its 2016 earnings guidance of $2.38 to $2.53 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 Wednesday, May 4 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 866-411-8234, participant code 86800330. 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 Jana Dawson with any follow-up questions.

This earnings announcement, a package of detailed first quarter financial information, the company's quarterly report on Form 10-Q for the period ended Mar. 31, 2016 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, 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,”

WESTAR ENERGY NEWS RELEASE    Page 1 of 3
Westar Energy announces 1st quarter results

“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, 2015 (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 3, 2016, (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:
Jana Dawson
Director, corporate communications
Phone: 785-575-1975
Jana.Dawson@westarenergy.com
Media line: 888-613-0003

Investor Contact:
Cody VandeVelde
Director, investor relations
Phone: 785-575-8227
Cody.VandeVelde@westarenergy.com


WESTAR ENERGY NEWS RELEASE    Page 2 of 3
Westar Energy announces 1st quarter results

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

 
Three Months Ended Mar. 31,
 
2016
 
2015
 
Change
 
% Change
 
(Dollars In Thousands, Except Per Share Amounts)
REVENUES:
 
 
 
 
 
 
 
Residential
$
179,290

 
$
181,294

 
$
(2,004
)
 
(1.1
)
Commercial
165,673

 
161,305

 
4,368

 
2.7

Industrial
100,697

 
96,479

 
4,218

 
4.4

Other retail
(14,381
)
 
539

 
(14,920
)
 
nm

Total Retail Revenues
431,279

 
439,617

 
(8,338
)
 
(1.9
)
Wholesale
67,412

 
86,755

 
(19,343
)
 
(22.3
)
Transmission
63,915

 
58,585

 
5,330

 
9.1

Other
6,844

 
5,850

 
994

 
17.0

Total Revenues
569,450

 
590,807

 
(21,357
)
 
(3.6
)
OPERATING EXPENSES:
 
 
 
 
 
 
 
Fuel and purchased power
100,058

 
155,482

 
(55,424
)
 
(35.6
)
SPP network transmission costs
60,760

 
56,812

 
3,948

 
6.9

Operating and maintenance
77,757

 
85,080

 
(7,323
)
 
(8.6
)
Depreciation and amortization
83,640

 
74,586

 
9,054

 
12.1

Selling, general and administrative
56,456

 
55,418

 
1,038

 
1.9

Taxes other than income tax
48,968

 
37,871

 
11,097

 
29.3

Total Operating Expenses
427,639

 
465,249

 
(37,610
)
 
(8.1
)
INCOME FROM OPERATIONS
141,811

 
125,558

 
16,253

 
12.9

OTHER INCOME (EXPENSE):
 
 
 
 
 
 
 
Investment earnings
2,016

 
2,480

 
(464
)
 
(18.7
)
Other income
9,477

 
2,814

 
6,663

 
236.8

Other expense
(5,543
)
 
(5,713
)
 
170

 
3.0

Total Other Income (Expense)
5,950

 
(419
)
 
6,369

 
nm

Interest expense
40,431

 
44,298

 
(3,867
)
 
(8.7
)
INCOME BEFORE INCOME TAXES
107,330

 
80,841

 
26,489

 
32.8

Income tax expense
38,622

 
27,678

 
10,944

 
39.5

NET INCOME
68,708

 
53,163

 
15,545

 
29.2

Less: Net income attributable to noncontrolling interests
3,123

 
2,183

 
940

 
43.1

NET INCOME ATTRIBUTABLE TO COMMON STOCK
$
65,585

 
$
50,980

 
$
14,605

 
28.6

BASIC AND DILUTED EARNINGS PER AVERAGE COMMON SHARE OUTSTANDING ATTRIBUTABLE TO WESTAR ENERGY, INC. (See 10-Q Note 2):
 
 
 
 
 
 
 
Basic earnings per common share
$
0.46

 
$
0.38

 
$
0.08

 
21.1

Diluted earnings per common share
$
0.46

 
$
0.38

 
$
0.08

 
21.1

AVERAGE EQUIVALENT COMMON SHARES OUTSTANDING (in thousands):
 
 
 
 
 
 
 
Basic
141,993

 
132,395

 
9,598

 
7.2

Diluted
142,311

 
135,540

 
6,771

 
5.0

DIVIDENDS DECLARED PER COMMON SHARE
$
0.38

 
$
0.36

 
$
0.02

 
5.6

Effective income tax rate
36
%
 
34
%
 
 
 
 
nm - not meaningful

WESTAR ENERGY NEWS RELEASE    Page 3 of 3

WESTAR ENERGY INC /KS Reports