- First Quarter 2023 GAAP EPS of $0.62, compared to $0.53 in
2022
- First Quarter 2023 Adjusted EPS (Non-GAAP) of $0.59, compared
to $0.56 in 2022
- Declares quarterly dividend of $0.6125 per share
- 2023 GAAP EPS guidance of $3.55 to $3.75; Reaffirms 2023
Adjusted EPS (Non-GAAP) guidance of $3.55 to $3.75
Evergy, Inc. (NASDAQ: EVRG) today announced first quarter 2023
GAAP earnings of $143 million, or $0.62 per share, compared to GAAP
earnings of $123 million, or $0.53 per share, for first quarter
2022.
Evergy’s first quarter 2023 adjusted earnings (non-GAAP) and
adjusted earnings per share (non-GAAP) were $136 million and $0.59,
respectively, compared to $130 million and $0.56 in 2022. Adjusted
earnings (non-GAAP) and adjusted earnings per share (non-GAAP) are
reconciled to GAAP earnings in the financial table included in this
release.
First quarter adjusted earnings (non-GAAP) per share were driven
by higher weather-normalized demand, lower operations and
maintenance expense, and higher transmission margin, partially
offset by unfavorable weather, higher depreciation and amortization
expense, and higher interest expense.
“A solid start to the year keeps us on pace to achieve our 2023
targets," said David Campbell, Evergy president and chief executive
officer. "We formed Evergy with a focus on reducing costs,
investing in beneficial infrastructure, and making rates more
affordable and competitive. Over the past five years, we have made
significant progress in advancing each of those goals. As part of
our rate filing last month, we seek to share those cost savings and
recover investments made to improve the electric grid and build a
smarter, more reliable energy future for our Kansas customers.”
Earnings Guidance
The Company reaffirmed its 2023 GAAP EPS guidance range of $3.55
to $3.75, along with its 2023 adjusted EPS (Non-GAAP) guidance
range of $3.55 to $3.75. Additionally, the Company reaffirmed its
long-term adjusted EPS (Non-GAAP) annual growth target of 6% to 8%
through 2025 from the $3.30 midpoint of the original 2021 adjusted
EPS (Non-GAAP) guidance range. Adjusted EPS (non-GAAP) guidance is
reconciled to GAAP EPS guidance in the financial table included in
this release.
Dividend Declaration
The Board of Directors declared a dividend on the Company’s
common stock of $0.6125 per share payable on June 20, 2023. The
dividends are payable to shareholders of record as of May 19,
2023.
Earnings Conference Call
Evergy management will host a conference call Friday, May 5,
with the investment community at 9:00 a.m. ET (8:00 a.m. CT). To
view the webcast and presentation slides, please go to
investors.evergy.com. To access via phone, investors and analysts
will need to register using this link where they will be provided a
phone number and access code.
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 first quarter
financial information, the Company's quarterly report on Form 10-Q
for the period ended March 31, 2023, and other filings the Company
has made with the Securities and Exchange Commission are available
on the Company's website at http://investors.evergy.com.
Adjusted Earnings (non-GAAP) and
Adjusted Earnings Per Share (non-GAAP)
Management believes that adjusted earnings (non-GAAP) and
adjusted EPS (non-GAAP) are representative measures of Evergy's
recurring earnings, assist in the comparability of results and are
consistent with how management reviews performance. Evergy's
adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP) for the
three months ended March 31, 2022 have been recast, as applicable,
to conform to the current year presentation.
Evergy's adjusted earnings (non-GAAP) and adjusted EPS
(non-GAAP) for the three months ended March 31, 2023 were $136.1
million or $0.59 per share. For the three months ended March 31,
2022, Evergy's adjusted earnings (non-GAAP) and adjusted EPS
(non-GAAP) were $129.9 million or $0.56 per share.
In addition to net income attributable to Evergy, Inc. and
diluted EPS, Evergy's management uses adjusted earnings (non-GAAP)
and adjusted EPS (non-GAAP) to evaluate earnings and EPS without
i.) the costs resulting from non-regulated energy marketing margins
from the February 2021 winter weather event; ii.) gains or losses
related to equity investments subject to a restriction on sale;
iii.) the revenues collected from customers for the return on
investment of the retired Sibley Station in 2022 for future refunds
to customers; iv.) the mark-to-market impacts of economic hedges
related to Evergy Kansas Central's non-regulated 8% ownership share
of Jeffrey Energy Center (JEC); and v.) the transmission revenues
collected from customers in 2022 through Evergy Kansas Central's
FERC transmission formula rate (TFR) to be refunded to customers in
accordance with a December 2022 FERC order.
Adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP) are
intended to aid an investor's overall understanding of results.
Management believes that adjusted earnings (non-GAAP) provides a
meaningful basis for evaluating Evergy's operations across periods
because it excludes certain items that management does not believe
are indicative of Evergy's ongoing performance or that can create
period to period earnings volatility.
Adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP) are
used internally to measure performance against budget and in
reports for management and the Evergy board of directors. Adjusted
earnings (non-GAAP) and adjusted EPS (non-GAAP) are financial
measures that are not calculated in accordance with GAAP and may
not be comparable to other companies' presentations or more useful
than the GAAP information provided elsewhere in this report.
Evergy, Inc
Consolidated Earnings and
Diluted Earnings Per Share
(Unaudited)
Earnings (Loss)
Earnings (Loss) per Diluted
Share
Earnings (Loss)
Earnings (Loss) per Diluted
Share
Three Months Ended March 31
2023
2022
(millions, except per share
amounts)
Net income attributable to Evergy,
Inc.
$
142.6
$
0.62
$
122.5
$
0.53
Non-GAAP reconciling items:
Sibley Station return on investment,
pre-tax(a)
—
—
(3.1
)
(0.01
)
Mark-to-market impact of JEC economic
hedges, pre-tax(b)
(8.4
)
(0.04
)
—
—
Non-regulated energy marketing costs
related to February 2021 winter weather event, pre-tax(c)
0.1
—
0.3
—
Restricted equity investment losses,
pre-tax(d)
—
—
14.2
0.06
TFR refund, pre-tax(e)
—
—
(1.9
)
(0.01
)
Income tax (benefit) expense (f)
1.8
0.01
(2.1
)
(0.01
)
Adjusted earnings (non-GAAP)
$
136.1
$
0.59
$
129.9
$
0.56
(a)
Reflects revenues collected from customers
for the return on investment of the retired Sibley Station in 2022
that are included in operating revenues on the consolidated
statements of comprehensive income.
(b)
Reflects mark-to-market gains or losses
related to forward contracts for natural gas and electricity
entered into as economic hedges against fuel price volatility
related to Evergy Kansas Central's non-regulated 8% ownership share
of JEC that are included in operating revenues on the consolidated
statements of comprehensive income.
(c)
Reflects non-regulated energy marketing
incentive compensation costs related to the February 2021 winter
weather event that are included in operating and maintenance
expense on the consolidated statements of comprehensive income.
(d)
Reflects losses related to equity
investments which were subject to a restriction on sale that are
included in investment earnings on the consolidated statements of
comprehensive income.
(e)
Reflects transmission revenues collected
from customers in 2022 through Evergy Kansas Central's FERC TFR to
be refunded to customers in accordance with a December 2022 FERC
order that are included in operating revenues on the consolidated
statements of comprehensive income.
(f)
Reflects an income tax effect calculated
at a statutory rate of approximately 22%.
GAAP to Non-GAAP Earnings
Guidance
Original 2021 Earnings per
Diluted Share
Guidance
2023 Earnings per
Diluted Share
Guidance
Net income attributable to Evergy,
Inc.
$3.14 - $3.34
$3.55 - $3.75
Non-GAAP reconciling items:
Advisor expense, pre-tax(a)
0.05
-
Executive transition cost, pre-tax(b)
0.03
-
Income tax benefit(c)
(0.02)
-
Adjusted earnings (non-GAAP)
$3.20 - $3.40
$3.55 - $3.75
(a)
Reflects our advisor expense incurred
associated with strategic planning.
(b)
Reflects costs associated with certain
executive transition costs at the Evergy Companies.
(c)
Reflects an income tax effect calculated
at a statutory rate of approximately 26% with the exception of
certain non-deductible items.
About Evergy
Evergy, Inc. (NASDAQ: EVRG), serves 1.7 million customers in
Kansas and Missouri. Evergy’s mission is to empower a better
future. Our focus remains on producing, transmitting and delivering
reliable, affordable, and sustainable energy for the benefit of our
stakeholders. Today, about half of Evergy’s power comes from
carbon-free sources, creating more reliable energy with less impact
to the environment. We value innovation and adaptability to give
our customers better ways to manage their energy use, to create a
safe, diverse and inclusive workplace for our employees, and to add
value for our investors. Headquartered in Kansas City, our
employees are active members of the communities we serve.
For more information about Evergy, visit us at
http://investors.evergy.com.
Forward Looking
Statements
Statements made in this document that are not based on
historical facts are forward-looking, may involve risks and
uncertainties, and are intended to be as of the date when made.
Forward-looking statements include, but are not limited to,
statements relating to Evergy's strategic plan, including, without
limitation, those related to earnings per share, dividend,
operating and maintenance expense and capital investment goals; the
outcome of legislative efforts and regulatory and legal
proceedings; future energy demand; future power prices; plans with
respect to existing and potential future generation resources; the
availability and cost of generation resources and energy storage;
target emissions reductions; and other matters relating to expected
financial performance or affecting future operations.
Forward-looking statements are often accompanied by forward-looking
words such as “anticipates,” “believes,” “expects,” “estimates,”
“forecasts,” “should,” “could,” “may,” “seeks,” “intends,”
“proposed,” “projects,” “planned,” “target,” “outlook,” “remain
confident,” “goal,” “will” or other words of similar meaning.
Forward-looking statements involve risks, uncertainties and other
factors that could cause actual results to differ materially from
the forward-looking information.
In connection with the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995, Evergy, Inc., Evergy
Kansas Central, Inc. and Evergy Metro, Inc. (collectively, the
Evergy Companies) are providing a number of risks, uncertainties
and other factors that could cause actual results to differ from
the forward-looking information. These risks, uncertainties and
other factors include, but are not limited to: economic and weather
conditions and any impact on sales, prices and costs; changes in
business strategy or operations; the impact of federal, state and
local political, legislative, judicial and regulatory actions or
developments, including deregulation, re-regulation, securitization
and restructuring of the electric utility industry; decisions of
regulators regarding, among other things, customer rates and the
prudency of operational decisions such as capital expenditures and
asset retirements; changes in applicable laws, regulations, rules,
principles or practices, or the interpretations thereof, governing
tax, accounting and environmental matters, including air and water
quality and waste management and disposal; the impact of climate
change, including increased frequency and severity of significant
weather events and the extent to which counterparties are willing
to do business with, finance the operations of or purchase energy
from the Evergy Companies due to the fact that the Evergy Companies
operate coal-fired generation; prices and availability of
electricity and natural gas in wholesale markets; market perception
of the energy industry and the Evergy Companies; the impact of
future Coronavirus (COVID-19) variants on, among other things,
sales, results of operations, financial condition, liquidity and
cash flows, and also on operational issues, such as supply chain
issues and the availability and ability of the Evergy Companies’
employees and suppliers to perform the functions that are necessary
to operate the Evergy Companies; changes in the energy trading
markets in which the Evergy Companies participate, including
retroactive repricing of transactions by regional transmission
organizations (RTO) and independent system operators; financial
market conditions and performance, current disruptions in the
banking industry, including changes in interest rates and credit
spreads and in availability and cost of capital and the effects on
derivatives and hedges, nuclear decommissioning trust and pension
plan assets and costs; impairments of long-lived assets or
goodwill; credit ratings; inflation rates; the transition to a
replacement for the London Interbank Offered Rate (LIBOR) benchmark
interest rate; effectiveness of risk management policies and
procedures and the ability of counterparties to satisfy their
contractual commitments; impact of physical and cybersecurity
breaches, criminal activity, terrorist attacks, acts of war and
other disruptions to the Evergy Companies’ facilities or
information technology infrastructure or the facilities and
infrastructure of third-party service providers on which the Evergy
Companies rely; impact of the Russian, Ukrainian conflict on the
global energy market; ability to carry out marketing and sales
plans; cost, availability, quality and timely provision of
equipment, supplies, labor and fuel; ability to achieve generation
goals and the occurrence and duration of planned and unplanned
generation outages; delays and cost increases of generation,
transmission, distribution or other projects; the Evergy Companies’
ability to manage their transmission and distribution development
plans and transmission joint ventures; the inherent risks
associated with the ownership and operation of a nuclear facility,
including environmental, health, safety, regulatory and financial
risks; workforce risks, including those related to the Evergy
Companies’ ability to attract and retain qualified personnel,
maintain satisfactory relationships with their labor unions and
manage costs of, or changes in, wages, retirement, health care and
other benefits; disruption, costs and uncertainties caused by or
related to the actions of individuals or entities, such as activist
shareholders or special interest groups, that seek to influence
Evergy’s strategic plan, financial results or operations; the
impact of changing expectations and demands of our customers,
regulators, investors and stakeholders, including heightened
emphasis on environmental, social and governance concerns; the
possibility that strategic initiatives, including mergers,
acquisitions and divestitures, and long-term financial plans, may
not create the value that they are expected to achieve in a timely
manner or at all; difficulties in maintaining relationships with
customers, employees, regulators or suppliers; and other risks and
uncertainties.
This list of factors is not all-inclusive because it is not
possible to predict all factors. You should also carefully consider
the information contained in the Evergy Companies’ other filings
with the Securities and Exchange Commission (SEC). Additional risks
and uncertainties are discussed in the Annual Report on Form 10-K
for the year ended December 31, 2022, filed by the Evergy Companies
with the SEC, and from time to time in current reports on Form 8-K
and quarterly reports on Form 10-Q filed by the Evergy Companies
with the SEC. Each forward-looking statement speaks only as of the
date of the particular statement. The Evergy Companies undertake no
obligation to publicly update or revise any forward-looking
statement, whether as a result of new information, future events or
otherwise, except as required by law.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230504006110/en/
Investor Contact: Pete Flynn Director, Investor Relations
Phone: 816-652-1060 Peter.Flynn@evergy.com
Media Contact: Gina Penzig Sr. Manager, Corporate
Communications Phone: 785-508-2410 Gina.Penzig@evergy.com Media
line: 888-613-0003
Evergy (NASDAQ:EVRG)
Historical Stock Chart
From Apr 2024 to May 2024
Evergy (NASDAQ:EVRG)
Historical Stock Chart
From May 2023 to May 2024