EX-99 3 ex_99.htm EXHIBIT 99 ex_99

Exhibit 99

Media Contact:

Tom Robinson
816.556.2902

Investor Contact:

Todd Kobayashi
816.556.2312

FOR IMMEDIATE RELEASE

GREAT PLAINS ENERGY REPORTS STRONG THIRD QUARTER EARNINGS
AND RAISES 2003 EARNINGS GUIDANCE

KANSAS CITY, MO, October 22, 2003 - Great Plains Energy (NYSE: GXP) today announced third quarter 2003 earnings of $83.4 million, or $1.20 per share compared to third quarter 2002 earnings of $68.5 million, or $1.11 per share. Third quarter results were affected positively by $10.8 million, or $0.16 per share as a result of the partial litigation settlements from the 1999 Hawthorn No. 5 incident. Third quarter 2003 ongoing earnings, as detailed on Attachment B, were $72.6 million, or $1.04 per share versus $70.0 million, or $1.13 per share for 2002.

For the nine months ended September 30, 2003, the Company reported earnings of $148.0 million, or $2.14 per share compared to $97.7 million, or $1.58 per share for the same period in 2002. Year to date ongoing earnings, as detailed in Attachment C, were $125.5 million, or $1.82 per share compared to 2002 ongoing earnings of $113.3 million, or $1.83 per share.

The difference in ongoing earnings for both periods when compared to 2002 was driven primarily by an increase in wholesale revenues at Kansas City Power & Light (KCP&L) and continued growth at Strategic Energy. These factors were partially offset by summer weather that, while warmer than normal, was slightly cooler than last year; higher pension expense; the impact of the 2003 Kansas rate reduction; and the timing of reductions in affordable housing investments. The November 2002 equity offering diluted the quarter and year to date 2003 earnings per share by $0.14 per share and $0.24 per share respectively.

Due to strong year to date performance, the Company is raising 2003 ongoing earnings guidance to a range of $2.00 to $2.10 per share compared to previous guidance of $1.90 to $2.00 per share, excluding unusual items as detailed on Attachment G.

Third Quarter Highlights:

*   Michael Chesser was named Chairman and CEO of Great Plains Energy.

*   KCP&L reported a 22% increase in wholesale MWh sales.

*   Strategic Energy contributed earnings of $10.8 million, up 62%.

*   KCP&L received cash of $34.1 million and earnings of $10.8 million as a result of partial litigation settlements concerning the Hawthorn No. 5 incident.

Commenting on results, Chairman Michael Chesser said, "During the quarter, KCP&L reached a record peak in customer demand and continued with strong wholesale sales while Strategic Energy sustained their strong performance with increased MWh delivery." He continued, "Having just joined the Company this month, I feel very fortunate to inherit a strong financial foundation. These subsidiaries are positioning us to grow shareholder value and to provide an attractive dividend."

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-2-

The following unusual and discontinued items impacted earnings for the 2003 periods. During the third quarter of 2003, KCP&L received $34.1 million in cash resulting from partial litigation settlements related to the 1999 Hawthorn No. 5 incident. This amount increased third quarter and year to date earnings by $10.8 million, or $0.16 per share. In addition, $16.4 million was recorded as a recovery of capital expenditures. The Company's year to date earnings were positively impacted by $25.9 million, or $0.37 per share from the June confirmation of the restructuring plan of DTI Holdings and its subsidiaries and the sale of substantially all of the assets of Digital Teleport, Inc. Year to date 2003 earnings per share were reduced in the second quarter by $0.13 from the operations and subsequent disposition of R.S. Andrews Enterprises, Inc. and by $0.08 on the first quarter asset impairment at KLT Gas. The year to date 2002 earnings were reduced by unusual and discontinued items of $0.16 per share from the January 2002 ice storm and $0.09 per share by the effects of R.S. Andrews Enterprises, Inc.

Kansas City Power & Light

KCP&L, an integrated regulated electric utility, reported earnings for the third quarter of $78.9 million, or $1.14 per share compared to 2002 earnings of $63.7 million, or $1.03 per share. Ongoing earnings for the third quarter were $68.1 million, or $0.98 per share versus $64.1 million, or $1.03 per share in 2002. Third quarter revenues were $350.1 million compared with $334.6 million in the same quarter last year.

Retail revenues for the third quarter 2003 were $304.7 million, slightly less than last year's quarter due to 7 % cooler summer weather and the effect of the January 2003 Kansas rate reduction. Wholesale revenues increased to $40.8 million primarily due to 22% more MWh's sold and 33% higher average wholesale prices. KCP&L's third quarter 2003 earnings were impacted also by higher pension costs.

KCP&L's year to date earnings were $114.6 million, or $1.66 per share, compared to 2002 year to date earnings of $84.1 million, or $1.36 per share. Year to date ongoing earnings were $103.8 million, or $1.50 per share, compared to $94.2 million, or $1.52 per share in the same period of 2002. The increase is primarily due to a 89% increase in wholesale revenues reflecting a 41% increase in wholesale MWh's sold at 45% higher prices. This gain is partially offset by cooler summer weather than last year, the January 2003 Kansas rate reduction and increased pension expenses.

The November 2002 equity offering diluted quarterly and year to date 2003 earnings on a per share basis by $0.13 and $0.18, respectively.

Strategic Energy

Strategic Energy, a power supply coordination services provider, continued its strong performance with earnings of $10.8 million, $0.16 per share compared to $6.7 million, or $0.11 per share in the same quarter last year. Revenues were up 33% to $310.1 million. Strategic Energy's year to date 2003 earnings were $30.2 million, or $0.44 per share up 39% versus $21.8 million, or $0.35 per share in 2002.

The primary factors for the earnings increase in both periods compared to 2002 were a 34% quarterly and a 42% year to date rise in MWh's delivered, a 6% increase in the Company's ownership in Strategic Energy, and a state tax true-up which reduced third quarter earnings last year. These gains were offset slightly by decreases in the gross margin per MWh delivered by 9% in the third quarter and 13% year to date. The decrease continues to be driven primarily by old, higher margin contract expirations, while margins on new business have been slightly better than anticipated this year.

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-3-

The November 2002 equity offering diluted quarterly and year to date 2003 earnings per share by $0.01 and $0.04, respectively.

Great Plains Energy provides in its quarterly earnings releases descriptions of "ongoing earnings" in addition to earnings calculated in accordance with generally accepted accounting principles (GAAP). Great Plains Energy also provides its earnings guidance in terms of ongoing earnings. Ongoing earnings are a non-GAAP financial measure that differs from GAAP earnings because it excludes the effect of unusual items. Ongoing earnings for historical periods are reconciled to GAAP earnings for the same periods in the tables on Attachments B and C. Great Plains Energy is unable to reconcile its 2003 ongoing earnings guidance to GAAP earnings per share because we do not predict the future impact of unusual items.

We believe ongoing earnings provide to investors a useful indicator of our results that is comparable among periods because it excludes the effects of unusual items, which may occur on an irregular basis. Investors should note that this non-GAAP measure involves judgments by management including whether an item is classified as an unusual item. We use ongoing earnings internally to measure performance against budget and in reports for management.

Great Plains Energy Incorporated (NYSE: GXP), headquartered in Kansas City, MO, is the holding company for three business units: Kansas City Power & Light Company, a leading regulated provider of electricity in the Midwest; Strategic Energy LLC, an energy management company providing load aggregation and power supply coordination; and KLT Gas Inc., a subsidiary specializing in coal bed methane exploration and development. The Company's web site is www.greatplainsenergy.com.

Great Plains Energy will broadcast a discussion of these results via the Internet on Thursday, October 23, 2003 at 9:00 AM Eastern / 8:00 AM Central. The presentation can be accessed through www.greatplainsenergy.com.

 

CERTAIN FORWARD-LOOKING INFORMATION -- Statements made in this release 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. In connection with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, the registrants are providing a number of important factors that could cause actual results to differ materially from the provided forward-looking information. These important factors include: future economic conditions in the regional, national and international markets; market perception of the energy industry and the Company; changes in business strategy, operations or development plans; state and federal legislative and regulatory actions or developments, including deregulation, re-regulation and restructuring of the electric utility industry and constraints placed on the Company's actions by the Public Utility Holding Company Act of 1935; adverse changes in applicable laws, regulations, rules, principles or practices governing tax, accounting and environmental matters including, but not limited to, air quality; financial market conditions including, but not limited to, changes in interest rates and in availability and cost of capital; ability to maintain current credit ratings;; inflation rates; effectiveness of risk management policies and procedures and the ability of counterparties to satisfy their contractual commitments; impact of terrorist acts; increased competition including, but not limited to, retail choice in the electric utility industry and the entry of new competitors; ability to carry out marketing and sales plans; weather conditions including weather-related damage; cost and availability of fuel; ability to achieve generation planning goals and the occurrence of unplanned generation outages; delays in the anticipated in-service dates of additional generating capacity; nuclear operations; ability to enter new markets successfully and capitalize on growth opportunities in non-regulated businesses; performance of projects undertaken by our non-regulated businesses and the success of efforts to invest in and develop new opportunities; and other risks and uncertainties. This list of factors is not all-inclusive because it is not possible to predict all factors.

 

 

 

MORE

 

 

Attachment A

GREAT PLAINS ENERGY
Consolidated Statements of Income
(Unaudited)

Three Months Ended

Year to Date
 

September 30

September 30
 

2003

2002

2003

2002

 

(thousands)

Operating Revenues

 

 

 

  

 

 

  

 

 

  

 

 

  

 

   Electric revenues - KCP&L

 

 

$

350,056

 

$

334,516

 

$

831,763

 

$

780,654

 

   Electric revenues - Strategic Energy

 

 

 

309,694

 

 

232,839

 

 

793,470

 

 

579,826

 

   Other revenues

 

 

 

1,554

 

 

1,431

 

 

3,929

 

 

3,732

 

 

      Total

 

 

 

661,304

 

 

568,786

 

 

1,629,162

 

 

1,364,212

 

Operating Expenses

 

 

                        

   Fuel

 

 

 

51,407

 

 

48,732

 

 

125,911

 

 

118,089

 

   Purchased power - KCP&L

 

 

 

10,210

 

 

15,618

 

 

42,151

 

 

38,850

 

   Purchased power - Strategic Energy

 

 

 

276,963

 

 

205,455

 

 

702,909

 

 

506,328

 

   Other

 

 

 

76,083

 

 

76,693

 

 

218,982

 

 

210,258

 

   Maintenance

 

 

 

18,152

 

 

19,788

 

 

64,902

 

 

75,233

 

   Depreciation and depletion

 

 

 

35,782

 

 

37,127

 

 

106,872

 

 

110,577

 

   General taxes

 

 

 

28,376

 

 

29,202

 

 

76,521

 

 

74,545

 

   (Gain) Loss on property

 

 

 

(1,617

)

 

323

 

 

(13,167

)

 

338

 

 

      Total

 

 

 

495,356

 

 

432,938

 

 

1,325,081

 

 

1,134,218

 

Operating income

 

 

 

165,948

 

 

135,848

 

 

304,081

 

 

229,994

 

Loss from equity investments

 

 

 

(1,125

)

 

(248

)

 

(1,711

)

 

(880

)

Minority interest in subsidiaries

 

 

 

(2,492

)

 

(2,890

)

 

(6,967

)

 

(8,245

)

Non-operating income

 

 

 

2,017

 

 

1,359

 

 

5,598

 

 

4,851

 

Non-operating expenses

 

 

 

(11,858

)

 

(4,374

)

 

(18,798

)

 

(16,774

)

Interest charges

 

 

 

18,844

 

 

22,445

 

 

57,735

 

 

65,972

 

Income from continuing operations before

 

 

                        

   income taxes and cumulative effect of a

 

 

                        

   change in accounting principle

 

 

 

133,646

 

 

107,250

 

 

224,468

 

 

142,974

 

Income taxes

 

 

 

49,887

 

 

37,334

 

 

66,578

 

 

38,561

 

Income from continuing operations

 

 

                        

   before cumulative effect of a change

 

 

                        

   in accounting principle

 

 

 

83,759

 

 

69,916

 

 

157,890

 

 

104,413

 

Loss from discontinued operations, net

 

 

                        

   of income taxes

 

 

 

-

 

 

(1,078

)

 

(8,690

)

 

(2,505

)

Cumulative effect to January 1, 2002, of

 

 

                        

   a change in accounting principle

 

 

 

-

 

 

-

 

 

-

 

 

(3,000

)

Net income

 

 

 

83,759

 

 

68,838

 

 

149,200

 

 

98,908

 

Preferred stock dividend requirements

 

 

 

411

 

 

411

 

 

1,234

 

 

1,234

 

Earnings available for common stock

 

 

$

83,348

 

$

68,427

 

$

147,966

 

$

97,674

 

Average number of common shares outstanding

 

 

 

69,189

 

 

61,909

 

 

69,189

 

 

61,901

 

Basic and diluted earnings per common share

 

 

                        

   Continuing operations

 

 

$

1.20

 

$

1.13

 

$

2.27

 

$

1.67

 

   Discontinued operations

 

 

 

-

 

 

(0.02

)

 

(0.13

)

 

(0.04

)

   Cumulative effect

 

 

 

-

 

 

-

 

 

-

 

 

(0.05

)

Basic and diluted earnings per common share

 

 

$

1.20

 

$

1.11

 

$

2.14

 

$

1.58

 

Cash dividends per common share

 

 

$

0.415

 

$

0.415

 

$

1.245

 

$

1.245

 


MORE

 

Attachment B

Great Plains Energy
Consolidated Earnings and Earnings Per Share
ThreeMonths Ended September 30

       

Earnings per Great

      
 

Earnings

  

Plains Energy Share

      
 

 

     
 

2003

2002

  

2003

2002

      

 

(millions)

            

 

                

KCP&L

 

 

$

78

.9

$

63

.7

  

 

 

$

1

.14

$

1

.03

      

Strategic Energy

 

 

 

10

.8

 

6

.7

  

 

 

 

0

.16

 

0

.11

      

KLT Gas

 

 

 

(0

.8)

 

0

.3

  

 

 

 

(0

.01)

 

-

 

      

KLT Investments

 

 

 

(2

.1)

 

3

.2

  

 

 

 

(0

.03)

 

0

.05

      

Other

 

 

 

(3

.4)

 

(4

.3)

  

 

 

 

(0

.06)

 

(0

.06)

      
 

     

   Earnings from continuing operations

 

 

 

83

.4

 

69

.6

  

 

 

 

1

.20

 

1

.13

      

R. S. Andrews discontinued operations,

 

 

 

                                  

   net of income taxes

 

 

 

-

 

 

(1

.1)

  

 

 

 

-

 

 

(0

.02)

      

      Total

 

 

$

83

.4

$

68

.5

  

 

 

$

1

.20

$

1

.11

      

 

 

 

                                    

Reconciliation of GAAP to Non-GAAP

 

 

                                    

Earnings

 

 

$

83

.4

$

68

.5

  

 

 

$

1

.20

$

1

.11

      

Reconciling items

 

 

                                    

   KCP&L -- Hawthorn No. 5 Litigation Settlements

 

 

 

(10

.8)

 

-

 

  

 

 

 

(0

.16)

 

-

 

      

   KCP&L -- January 2002 ice storm

 

 

 

-

 

 

0

.4

  

 

 

 

-

 

 

-

 

      

   Other -- R. S. Andrews discontinued operations

 

 

 

-

 

 

1

.1

  

 

 

 

-

 

 

0

.02

      

      Ongoing earnings

 

 

$

72

.6

$

70

.0

  

 

 

$

1

.04

$

1

.13

      

MORE

 

Attachment C

Great Plains Energy
Consolidated Earnings and Earnings Per Share
Year to Date September 30

       

Earnings per Great
 

Earnings

  

Plains Energy Share
 

 

 

2003

2002

  

2003

2002

 

(millions)

      

KCP&L

 

 

$

114

.6

$

84

.1

  

 

 

$

1

.66

$

1

.36

                        

Strategic Energy

 

 

 

30

.2

 

21

.8

  

 

 

 

0

.44

 

0

.35

                        

KLT Gas

 

 

 

(7

.9)

 

(0

.1)

  

 

 

 

(0

.11)

 

-

 

                        

KLT Investments

 

 

 

4

.1

 

6

.4

  

 

 

 

0

.06

 

0

.10

                        

Other

 

 

 

15

.7

 

(9

.0)

  

 

 

 

0

.22

 

(0

.14)

                        
 

                       

   Earnings from continuing operations

 

 

                                                      

      before cumulative effect

 

 

 

156

.7

 

103

.2

  

 

 

 

2

.27

 

1

.67

                        

R. S. Andrews discontinued operations,

 

 

                                                      

   net of income taxes

 

 

 

(8

.7)

 

(2

.5)

  

 

 

 

(0

.13)

 

(0

.04)

                        

Cumulative effect to January 1, 2002

 

 

                                                      

   of a change in accounting principle

 

 

 

-

 

 

(3

.0)

  

 

 

 

-

 

 

(0

.05)

                        

                       

      Total

 

 

$

148

.0

$

97

.7

  

 

 

$

2

.14

$

1

.58

                        

                       
 

 

 

                                                      

Reconciliation of GAAP to Non-GAAP

 

 

                                                      

Earnings

 

 

$

148

.0

$

97

.7

  

 

 

$

2

.14

$

1

.58

                        

Reconciling items

 

 

                                                      

   KCP&L -- Hawthorn No. 5 Litigation Settlements

 

 

 

(10

.8)

 

-

 

  

 

 

 

(0

.16)

 

-

 

                        

   KCP&L -- January 2002 ice storm

 

 

 

-

 

 

10

.1

  

 

 

 

-

 

 

0

.16

                        

   KLT Gas -- Impairment charge

 

 

 

5

.5

 

-

 

  

 

 

 

0

.08

 

-

 

                        

   Other -- DTI

 

 

 

(25

.9)

 

-

 

  

 

 

 

(0

.37)

 

-

 

                        

   Other -- R. S. Andrews discontinued operations

 

 

 

8

.7

 

2

.5

  

 

 

 

0

.13

 

0

.04

                        

   R. S. Andrews cumulative effect

 

 

 

-

 

 

3

.0

  

 

 

 

-

 

 

0

.05

                        

                       

      Ongoing earnings

 

 

$

125

.5

$

113

.3

  

 

 

$

1

.82

$

1

.83

                        

                       

MORE

 

Attachment D

GREAT PLAINS ENERGY INCORPORATED
Summary Income Statement by Segment

 

Consolidated

  

Strategic

KLT

  

Three Months Ended September 30, 2003

GPE

KCP&L

Energy

Gas

Other

 

(millions)

Operating revenues

 

 

$

661.3

 

$

350.1

 

$

310.1

 

$

0.5

 

$

0.6

 

Fuel

 

 

 

(51.4

)

 

(51.4

)

                  

Purchased power

 

 

 

(287.2

)

 

(10.3

)

 

(276.9

)

            
 

Revenues, net of

 

 

                              

    fuel and purchased power

 

 

 

322.7

 

 

288.4

 

 

33.2

 

 

0.5

 

 

0.6

 

Other operating expense

 

 

 

(122.5

)

 

(106.3

)

 

(11.1

)

 

(1.1

)

 

(4.0

)

Depreciation and depletion

 

 

 

(35.8

)

 

(34.7

)

 

(0.5

)

 

(0.3

)

 

(0.3

)

Gain on property

 

 

 

1.6

 

 

1.6

 

                  

Operating income (loss)

 

 

 

166.0

 

 

149.0

 

 

21.6

 

 

(0.9

)

 

(3.7

)

Loss from equity investments

 

 

 

(1.1

)

 

  

 

 

  

 

 

    

 

(1.1

)

Non-operating income (expenses)

 

 

 

(12.4

)

 

(1.0

)

 

(2.3

)

 

    

 

(9.1

)

Interest charges

 

 

 

(18.8

)

 

(17.3

)

 

    

 

(0.4

)

 

(1.1

)

Income taxes

 

 

 

(49.9

)

 

(51.8

)

 

(8.5

)

 

0.5

 

 

9.9

 

Net income (loss)

 

 

$

83.8

 

$

78.9

 

$

10.8

 

$

(0.8

)

$

(5.1

)

Earnings (loss) per GPE common share

 

 

$

1.20

 

$

1.14

 

$

0.16

 

$

(0.01

)

$

(0.09

)

 

Consolidated

  

Strategic

KLT

  

Year to Date September 30, 2003

GPE

KCP&L

Energy

Gas

Other

 

(millions)

Operating revenues

 

 

$

1,629.2

 

$

831.8

 

$

794.5

 

$

1.2

 

$

1.7

 

Fuel

 

 

 

(125.9

)

 

(125.9

)

                  

Purchased power

 

 

 

(745.1

)

 

(42.2

)

 

(702.9

)

            
 

Revenues, net of

 

 

                              

    fuel and purchased power

 

 

 

758.2

 

 

663.7

 

 

91.6

 

 

1.2

 

 

1.7

 

Other operating expense

 

 

 

(360.4

)

 

(314.3

)

 

(30.0

)

 

(4.0

)

 

(12.1

)

Depreciation and depletion

 

 

 

(106.9

)

 

(104.0

)

 

(1.2

)

 

(0.7

)

 

(1.0

)

Gain (loss) on property

 

 

 

13.2

  

 

1.4

  

 

    

 

(9.0

)

 

20.8

 

Operating income (loss)

 

 

 

304.1

 

 

246.8

 

 

60.4

 

 

(12.5

)

 

9.4

 

Loss from equity investments

 

 

 

(1.7

)

 

  

 

 

  

 

 

    

 

(1.7

)

 Non-operating income (expenses)

 

 

 

(20.2

)

 

(3.3

)

 

(6.2

)

 

0.7

 

 

(11.4

)

Interest charges

 

 

 

(57.7

)

 

(52.7

)

 

(0.3

)

 

(1.0

)

 

(3.7

)

Income taxes

 

 

 

(66.6

)

 

(76.2

)

 

(23.7

)

 

4.9

 

 

28.4

 

R. S. Andrews discontinued operations

 

 

 

(8.7

)

 

  

 

 

  

 

 

    

 

(8.7

)

Net income (loss)

 

 

$

149.2

 

$

114.6

 

$

30.2

 

$

(7.9

)

$

12.3

 

Earnings (loss) per GPE common share

 

 

$

2.14

 

$

1.66

 

$

0.44

 

$

(0.11

)

$

0.15

 

MORE

 

Attachment E

GREAT PLAINS ENERGY
Consolidated Balance Sheets
(Unaudited)

September 30

December 31
 

2003

2002

 

(thousands)

 

    

ASSETS

 

 

 

  

 

 

  

 

Current Assets

 

 

            

   Cash and cash equivalents

 

 

$

150,472

 

$

65,294

 

   Restricted cash

 

 

 

16,201

 

 

-

 

   Receivables

 

 

 

300,406

 

 

197,845

 

   Fuel inventories, at average cost

 

 

 

22,915

 

 

21,311

 

   Materials and supplies, at average cost

 

 

 

56,746

 

 

50,800

 

   Deferred income taxes

 

 

 

6,021

 

 

3,233

 

   Assets of discontinued operations

 

 

 

-

 

 

38,298

 

   Other

 

 

 

19,295

 

 

16,619

 

 

 

 

 

 

      Total

 

 

 

572,056

 

 

393,400

 

Nonutility Property and Investments

 

 

            

   Affordable housing limited partnerships

 

 

 

53,520

 

 

68,644

 

   Gas property and investments

 

 

 

50,684

 

 

45,419

 

   Nuclear decommissioning trust fund

 

 

 

69,646

 

 

63,283

 

   Other

 

 

 

39,972

 

 

55,520

 

 

 

 

 

 

      Total

 

 

 

213,822

 

 

232,866

 

Utility Plant, at Original Cost

 

 

            

   Electric

 

 

 

4,523,869

 

 

4,428,433

 

   Less-accumulated depreciation

 

 

 

2,036,672

 

 

1,885,389

 

 

 

 

 

 

      Net utility plant in service

 

 

 

2,487,197

 

 

2,543,044

 

   Construction work in progress

 

 

 

45,945

 

 

39,519

 

   Nuclear fuel, net of amortization of $128,977 and $121,951

 

 

 

29,993

 

 

21,506

 

 

 

 

 

 

      Total

 

 

 

2,563,135

 

 

2,604,069

 

Deferred Charges

 

 

            

   Regulatory assets

 

 

 

144,497

 

 

128,901

 

   Prepaid pension costs

 

 

 

82,648

 

 

85,945

 

   Goodwill

 

 

 

26,105

 

 

26,106

 

   Other deferred charges

 

 

 

35,810

 

 

35,452

 

 

 

 

 

 

      Total

 

 

 

289,060

 

 

276,404

 

      Total

 

 

$

3,638,073

 

$

3,506,739

 

MORE

 

Attachment F

GREAT PLAINS ENERGY
Consolidated Balance Sheets
(Unaudited)

September 30

December 31
 

2003

2002

 

(thousands)

 

    

LIABILITIES AND CAPITALIZATION

 

 

 

  

 

 

  

 

Current Liabilities

 

 

            

   Notes payable

 

 

$

115,000

 

$

21,079

 

   Current maturities of long-term debt

 

 

 

59,254

 

 

133,181

 

   EIRR bonds classified as current

 

 

 

81,000

 

 

81,000

 

   Accounts payable

 

 

 

183,671

 

 

172,319

 

   Accrued taxes

 

 

 

101,377

 

 

29,238

 

   Accrued interest

 

 

 

12,150

 

 

16,121

 

   Accrued payroll and vacations

 

 

 

26,770

 

 

27,053

 

   Accrued refueling outage costs

 

 

 

15,439

 

 

8,292

 

   Supplier collateral

 

 

 

16,201

 

 

-

 

   Liabilities of discontinued operations

 

 

 

-

 

 

34,232

 

   Other

 

 

 

28,707

 

 

29,071

 

 

 

 

 

 

      Total

 

 

 

639,569

 

 

551,586

 

Deferred Credits and Other Liabilities

 

 

            

   Deferred income taxes

 

 

 

598,100

 

 

602,907

 

   Deferred investment tax credits

 

 

 

38,570

 

 

41,565

 

   Asset retirement obligation

 

 

 

105,522

 

 

-

 

   Accrued nuclear decommissioning costs

 

 

 

-

 

 

64,584

 

   Pension liability

 

 

 

77,330

 

 

73,251

 

   Other

 

 

 

80,802

 

 

76,169

 

 

 

 

 

 

      Total

 

 

 

900,324

 

 

858,476

 

Capitalization

 

 

 

2,098,180

 

 

2,096,677

 

Commitments and Contingencies

 

 

            

      Total

 

 

$

3,638,073

 

$

3,506,739

 

MORE

 

Attachment G

 


2003 Ongoing Earnings Guidance

2003
EPS Range

KCP&L

$

1.57

$

1.63

Strategic Energy

0.55

0.57

KLT Gas

(0.05

)

(0.05

)

KLT Investments

0.11

0.12

Other

(0.18

)

(0.17

)

Ongoing Earnings Guidance*

$

2.00

$

2.10

 

* 2003 ongoing earnings guidance excludes the effect of the following unusual items: a third quarter income of $0.16 per share from partial litigation settlements cases related to the Hawthorn No. 5 boiler explosion in 1999, a second quarter gain of $0.37 per share for the effects of the June confirmation of the restructuring plan of DTI Holdings, Inc. and its subsidiaries, and the sale of substantially all of the assets of Digital Teleport Inc.; a year to date loss of $0.13 per share for the operations and subsequent disposition of R.S. Andrews Enterprises, Inc.; and a first quarter loss of $0.08 per share for an asset impairment at KLT Gas.

Great Plains Energy provides its earnings guidance in terms of ongoing earnings. Ongoing earnings is a non-GAAP (generally accepted accounting principles) financial measure that differs from GAAP earnings because it excludes the effect of unusual items. Great Plains Energy is unable to reconcile its 2003 ongoing earnings guidance to GAAP earnings per share because we do not predict the future impact of unusual items.

We believe ongoing earnings provide to investors a useful indicator of our results that is comparable among periods because it excludes the effects of unusual items, which may occur on an irregular basis. Investors should note that this non-GAAP measure involves judgments by management including whether an item is classified as an unusual item. The impact of unusual items could be material to our operating results computed in accordance with GAAP. We use ongoing earnings internally to measure performance against budget and in reports for management.

###