Westar Energy announces 2014 results
February 25 2015 - 4:00PM
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.
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, 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 |
% |
|
|
|
|
|
This
announcement is distributed by NASDAQ OMX Corporate Solutions on
behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Westar Energy, Inc. via Globenewswire
HUG#1897437
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