Attached files
| file | filename |
|---|---|
| EX-99.3 - EXHIBIT 99.3 - WESTAR ENERGY INC /KS | wr-09302016x8xkexhibit99x3.htm |
| EX-99.2 - EXHIBIT 99.2 - WESTAR ENERGY INC /KS | wr-09302016x8xkexhibit992.htm |
| 8-K - 8-K - WESTAR ENERGY INC /KS | wr-09302016xearningsreleas.htm |
Exhibit 99.1
Westar Energy announces 3rd quarter 2016 results.
TOPEKA, Kan., Nov. 1, 2016 - Westar Energy, Inc. (NYSE:WR) today announced earnings of $155 million, or $1.09 per share, for the third quarter 2016 compared with earnings of $138 million, or $0.97 per share, for the third quarter 2015. Earnings for the nine months ended Sept. 30, 2016 were $293 million, or $2.06 per share, compared with $253 million, or $1.84 per share, for the same period in 2015.
Higher net income for the third quarter, compared with last year, was driven by better cost recovery through recent rate adjustments and an increase in corporate-owned life insurance income. The higher revenue was partially offset by a Southwest Power Pool assessment and higher expenses due to improving long-term grid reliability.
Net income for the nine months ended September 30, 2016 also increased primarily from better cost recovery and lower interest expense. The higher revenue was partially offset by merger related-expenses and the Southwest Power Pool assessment.
Earnings Guidance
The company affirmed its 2016 earnings guidance of $2.38 to $2.53 per share with a bias towards the upper end of the range. The earnings guidance drivers are located under Supplemental Materials within the investor section of the company website at www.WestarEnergy.com.
Additional Information
Due to the pending transaction with Great Plains Energy, Westar Energy will no longer host a quarterly webcast and conference call. Investors may continue to contact our Investor Relations Department at (785) 575-8227.
This earnings announcement, a package of detailed third-quarter financial information, the company's quarterly report on Form 10-Q for the period ended Sept. 30, 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
WESTAR ENERGY NEWS RELEASE Page 1 of 3
Westar Energy announces 3rd quarter results
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. Westar Energy is on Facebook: www.Facebook.com/westarenergy and Twitter: www.Twitter.com/WestarEnergy.
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, 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 Reports on Form 10-Q filed on Aug. 2, 2016 and Nov. 1, 2016, (a) under the heading "Forward-Looking Statements." (b) in ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations, (c) in Part I, Financial Information, ITEM 1. Financial Statements: Notes 3, 11 and 12, and (d) ITEM 1A. Risk Factors; 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
Media Relations Manager
Phone: 785-575-8089
Gina.Penzig@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 3rd quarter results
Westar Energy, Inc.
Condensed Consolidated Statements of Income
(Unaudited)
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||
2016 | 2015 | Change | % Change | 2016 | 2015 | Change | % Change | ||||||||||||||||||||||
(Dollars In Thousands, Except Per Share Amounts) | |||||||||||||||||||||||||||||
REVENUES: | |||||||||||||||||||||||||||||
Residential | $ | 282,272 | $ | 255,804 | $ | 26,468 | 10.3 | $ | 664,400 | $ | 610,775 | $ | 53,625 | 8.8 | |||||||||||||||
Commercial | 218,377 | 213,461 | 4,916 | 2.3 | 572,247 | 550,761 | 21,486 | 3.9 | |||||||||||||||||||||
Industrial | 106,021 | 105,307 | 714 | 0.7 | 314,723 | 304,937 | 9,786 | 3.2 | |||||||||||||||||||||
Other retail | 7,883 | 1,620 | 6,263 | 386.6 | (23,002 | ) | (5,503 | ) | (17,499 | ) | (318.0 | ) | |||||||||||||||||
Total Retail Revenues | 614,553 | 576,192 | 38,361 | 6.7 | 1,528,368 | 1,460,970 | 67,398 | 4.6 | |||||||||||||||||||||
Wholesale | 86,421 | 87,918 | (1,497 | ) | (1.7 | ) | 220,520 | 249,502 | (28,982 | ) | (11.6 | ) | |||||||||||||||||
Transmission | 58,462 | 61,190 | (2,728 | ) | (4.5 | ) | 188,996 | 181,070 | 7,926 | 4.4 | |||||||||||||||||||
Other | 5,218 | 7,529 | (2,311 | ) | (30.7 | ) | 17,668 | 21,657 | (3,989 | ) | (18.4 | ) | |||||||||||||||||
Total Revenues | 764,654 | 732,829 | 31,825 | 4.3 | 1,955,552 | 1,913,199 | 42,353 | 2.2 | |||||||||||||||||||||
OPERATING EXPENSES: | |||||||||||||||||||||||||||||
Fuel and purchased power | 155,673 | 163,943 | (8,270 | ) | (5.0 | ) | 374,361 | 459,504 | (85,143 | ) | (18.5 | ) | |||||||||||||||||
SPP network transmission costs | 57,939 | 57,487 | 452 | 0.8 | 173,925 | 171,651 | 2,274 | 1.3 | |||||||||||||||||||||
Operating and maintenance | 86,758 | 80,444 | 6,314 | 7.8 | 250,135 | 248,263 | 1,872 | 0.8 | |||||||||||||||||||||
Depreciation and amortization | 84,972 | 77,184 | 7,788 | 10.1 | 252,838 | 228,529 | 24,309 | 10.6 | |||||||||||||||||||||
Selling, general and administrative | 60,582 | 60,485 | 97 | 0.2 | 192,762 | 179,567 | 13,195 | 7.3 | |||||||||||||||||||||
Taxes other than income tax | 48,154 | 37,682 | 10,472 | 27.8 | 145,529 | 113,047 | 32,482 | 28.7 | |||||||||||||||||||||
Total Operating Expenses | 494,078 | 477,225 | 16,853 | 3.5 | 1,389,550 | 1,400,561 | (11,011 | ) | (0.8 | ) | |||||||||||||||||||
INCOME FROM OPERATIONS | 270,576 | 255,604 | 14,972 | 5.9 | 566,002 | 512,638 | 53,364 | 10.4 | |||||||||||||||||||||
OTHER INCOME (EXPENSE): | |||||||||||||||||||||||||||||
Investment earnings | 2,619 | 314 | 2,305 | 734.1 | 6,916 | 4,427 | 2,489 | 56.2 | |||||||||||||||||||||
Other income | 13,353 | 637 | 12,716 | nm | 26,212 | 18,572 | 7,640 | 41.1 | |||||||||||||||||||||
Other expense | (5,887 | ) | (5,392 | ) | (495 | ) | (9.2 | ) | (14,338 | ) | (13,737 | ) | (601 | ) | (4.4 | ) | |||||||||||||
Total Other Income (Expense) | 10,085 | (4,441 | ) | 14,526 | 327.1 | 18,790 | 9,262 | 9,528 | 102.9 | ||||||||||||||||||||
Interest expense | 40,897 | 44,306 | (3,409 | ) | (7.7 | ) | 121,011 | 134,120 | (13,109 | ) | (9.8 | ) | |||||||||||||||||
INCOME BEFORE INCOME TAXES | 239,764 | 206,857 | 32,907 | 15.9 | 463,781 | 387,780 | 76,001 | 19.6 | |||||||||||||||||||||
Income tax expense | 81,211 | 66,293 | 14,918 | 22.5 | 160,376 | 127,810 | 32,566 | 25.5 | |||||||||||||||||||||
NET INCOME | 158,553 | 140,564 | 17,989 | 12.8 | 303,405 | 259,970 | 43,435 | 16.7 | |||||||||||||||||||||
Less: Net income attributable to noncontrolling interests | 3,833 | 2,561 | 1,272 | 49.7 | 10,760 | 7,277 | 3,483 | 47.9 | |||||||||||||||||||||
NET INCOME ATTRIBUTABLE TO WESTAR ENERGY, INC. | $ | 154,720 | $ | 138,003 | $ | 16,717 | 12.1 | $ | 292,645 | $ | 252,693 | $ | 39,952 | 15.8 | |||||||||||||||
BASIC AND DILUTED EARNINGS PER AVERAGE COMMON SHARE OUTSTANDING ATTRIBUTABLE TO WESTAR ENERGY, INC. (See 10-Q Note 2): | |||||||||||||||||||||||||||||
Basic earnings per common share | $ | 1.09 | $ | 0.97 | $ | 0.12 | 12.4 | $ | 2.06 | $ | 1.84 | $ | 0.22 | 12.0 | |||||||||||||||
Diluted earnings per common share | $ | 1.08 | $ | 0.97 | $ | 0.11 | 11.3 | $ | 2.05 | $ | 1.82 | $ | 0.23 | 12.6 | |||||||||||||||
AVERAGE EQUIVALENT COMMON SHARES OUTSTANDING (in thousands): | |||||||||||||||||||||||||||||
Basic | 142,091 | 141,623 | 468 | 0.3 | 142,039 | 136,686 | 5,353 | 3.9 | |||||||||||||||||||||
Diluted | 142,578 | 141,838 | 740 | 0.5 | 142,413 | 138,182 | 4,231 | 3.1 | |||||||||||||||||||||
DIVIDENDS DECLARED PER COMMON SHARE | $ | 0.38 | $ | 0.36 | $ | 0.02 | 5.6 | $ | 1.14 | $ | 1.08 | $ | 0.06 | 5.6 | |||||||||||||||
Effective income tax rate | 34 | % | 32 | % | 35 | % | 33 | % | |||||||||||||||||||||
nm - not meaningful | |||||||||||||||||||||||||||||
WESTAR ENERGY NEWS RELEASE Page 3 of 3