Westar Energy Announces 1st Quarter 2017 Results.
May 09 2017 - 05:00PM
TOPEKA, Kan., May
9, 2017 - Westar Energy, Inc. (NYSE:WR) today announced earnings of
$60 million, or $0.42 per share, for the first quarter 2017
compared with earnings of $66 million, or $0.46 per share, for
the first quarter 2016.
Lower net income for the quarter, compared with last year, was
driven by the effect of mild weather resulting in lower residential
and commercial sales. Also contributing to the lower net income was
a decrease in corporate-owned life insurance income, higher
depreciation expense due in part to the start of operations of our
Western Plains Wind Farm, and higher distribution expense from
taking advantage of the warmer winter weather to execute our
vegetation management strategy earlier in the year.
Additional
Information
Because of 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 first-quarter
financial information, the company's quarterly report on Form 10-Q
for the period ended Mar. 31, 2017, 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 -
As Kansas' largest electric utility, Westar
Energy, Inc. (NYSE:WR) provides customers the safe, reliable
electricity needed to power their businesses and homes. We have
7,800 MW of electric generation capacity that includes renewables
and traditional power sources with half the electricity supplied to
our more than 700,000 customers from emissions free sources:
nuclear, wind and solar, with a third coming from renewables. We
are a leader in electric transmission in Kansas coordinating a
network of lines and substations that supports one of the largest
consolidations of wind energy in the nation. 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, 2016 (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 3, 14
and 16; (2) those discussed in the company's Quarterly Report on
Form 10-Q filed May 9, 2017, (a) under the heading,
"Forward-Looking Statements," (b) in ITEM 2. Management's
Discussion and Analysis of Financial Condition and Results of
Operations and (c) in Part I, Financial Information, ITEM 1.
Financial Statements: Notes 3, 11 and 12 and (d) in 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, Inc.
Condensed Consolidated Statements of Income
(Unaudited)
|
Three Months Ended Mar.
31, |
|
2017 |
|
2016 |
|
Change |
|
% Change |
|
(Dollars
In Thousands, Except Per Share Amounts) |
REVENUES: |
|
|
|
|
|
|
|
Residential |
$ |
176,169 |
|
|
$ |
179,290 |
|
|
$ |
(3,121 |
) |
|
(1.7 |
) |
Commercial |
155,707 |
|
|
165,673 |
|
|
(9,966 |
) |
|
(6.0 |
) |
Industrial |
98,516 |
|
|
100,697 |
|
|
(2,181 |
) |
|
(2.2 |
) |
Other
retail |
(12,349 |
) |
|
(14,381 |
) |
|
2,032 |
|
|
14.1 |
|
Total
Retail Revenues |
418,043 |
|
|
431,279 |
|
|
(13,236 |
) |
|
(3.1 |
) |
Wholesale |
77,367 |
|
|
67,412 |
|
|
9,955 |
|
|
14.8 |
|
Transmission |
69,441 |
|
|
63,915 |
|
|
5,526 |
|
|
8.6 |
|
Other |
7,723 |
|
|
6,844 |
|
|
879 |
|
|
12.8 |
|
Total
Revenues |
572,574 |
|
|
569,450 |
|
|
3,124 |
|
|
0.5 |
|
OPERATING EXPENSES: |
|
|
|
|
|
|
|
Fuel
and purchased power |
113,855 |
|
|
100,058 |
|
|
13,797 |
|
|
13.8 |
|
SPP
network transmission costs |
60,674 |
|
|
60,760 |
|
|
(86 |
) |
|
(0.1 |
) |
Operating and maintenance |
81,198 |
|
|
77,757 |
|
|
3,441 |
|
|
4.4 |
|
Depreciation and amortization |
88,625 |
|
|
83,640 |
|
|
4,985 |
|
|
6.0 |
|
Selling, general and administrative |
59,157 |
|
|
56,456 |
|
|
2,701 |
|
|
4.8 |
|
Taxes
other than income tax |
42,716 |
|
|
48,968 |
|
|
(6,252 |
) |
|
(12.8 |
) |
Total
Operating Expenses |
446,225 |
|
|
427,639 |
|
|
18,586 |
|
|
4.3 |
|
INCOME
FROM OPERATIONS |
126,349 |
|
|
141,811 |
|
|
(15,462 |
) |
|
(10.9 |
) |
OTHER
INCOME (EXPENSE): |
|
|
|
|
|
|
|
Investment earnings |
3,155 |
|
|
2,016 |
|
|
1,139 |
|
|
56.5 |
|
Other
income |
1,300 |
|
|
9,477 |
|
|
(8,177 |
) |
|
(86.3 |
) |
Other
expense |
(5,316 |
) |
|
(5,543 |
) |
|
227 |
|
|
4.1 |
|
Total
Other (Expense) Income |
(861 |
) |
|
5,950 |
|
|
(6,811 |
) |
|
(114.5 |
) |
Interest expense |
41,095 |
|
|
40,431 |
|
|
664 |
|
|
1.6 |
|
INCOME
BEFORE INCOME TAXES |
84,393 |
|
|
107,330 |
|
|
(22,937 |
) |
|
(21.4 |
) |
Income
tax expense |
20,911 |
|
|
38,622 |
|
|
(17,711 |
) |
|
(45.9 |
) |
NET
INCOME |
63,482 |
|
|
68,708 |
|
|
(5,226 |
) |
|
(7.6 |
) |
Less:
Net income attributable to noncontrolling interests |
3,821 |
|
|
3,123 |
|
|
698 |
|
|
22.4 |
|
NET
INCOME ATTRIBUTABLE TO COMMON STOCK |
$ |
59,661 |
|
|
$ |
65,585 |
|
|
$ |
(5,924 |
) |
|
(9.0 |
) |
BASIC
AND DILUTED EARNINGS PER AVERAGE COMMON SHARE OUTSTANDING
ATTRIBUTABLE TO WESTAR ENERGY, INC. (See 10-Q Note 2): |
|
|
|
|
|
|
|
Basic
earnings per common share |
$ |
0.42 |
|
|
$ |
0.46 |
|
|
$ |
(0.04 |
) |
|
(8.7 |
) |
Diluted earnings per common share |
$ |
0.42 |
|
|
$ |
0.46 |
|
|
$ |
(0.04 |
) |
|
(8.7 |
) |
AVERAGE EQUIVALENT COMMON SHARES OUTSTANDING (in thousands): |
|
|
|
|
|
|
|
Basic |
142,437 |
|
|
141,993 |
|
|
444 |
|
|
0.3 |
|
Diluted |
142,696 |
|
|
142,311 |
|
|
385 |
|
|
0.3 |
|
DIVIDENDS DECLARED PER COMMON SHARE |
$ |
0.40 |
|
|
$ |
0.38 |
|
|
$ |
0.02 |
|
|
5.3 |
|
Effective income tax rate |
25 |
% |
|
36 |
% |
|
|
|
|
This
announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq 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
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