EX-99.1 2 wr-03312015x8xkexhibit991.htm PRESS RELEASE DATED MAY 5, 2015 WR-03.31.2015-8-K Exhibit 99.1
Exhibit 99.1


Westar Energy Announces 1st Quarter 2015 Results.
TOPEKA, Kan., May 5, 2015 - Westar Energy, Inc. (NYSE:WR) today announced earnings of $51 million, or $0.38 per share, for the first quarter 2015 compared with earnings of $69 million, or $0.53 per share, for the first quarter 2014.

Lower net income for the quarter, compared with last year, reflects milder weather which reduced both energy marketing margins and retail energy sales and a $6 million estimated refund obligation for transmission revenues. Lower expenses partially offset the lower revenues.

Earnings Guidance
The company lowered its 2015 earnings guidance to $2.18 to $2.33 per share. Updated guidance drivers have been posted under Supplemental Materials within the investor section of the company website at www.WestarEnergy.com.

Conference Call and Additional Company Information
Westar Energy management will host a conference call Wednesday, May 6 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 866-703-6104, participant code 31896774. 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 first quarter financial information, the company's quarterly report on Form 10-Q for the period ended March 31, 2015 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 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.

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

WESTAR ENERGY NEWS RELEASE    Page 1 of 3
Westar Energy announces 1st quarter results

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; (2) those discussed in the company's Quarterly Report on Form 10-Q filed May 5, 2015, (a) in ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations and (b) in Part I, Financial Information, ITEM 1. Financial Statements: Notes 10 and 11; 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
Manager, corporate communications
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 NEWS RELEASE    Page 2 of 3
Westar Energy announces 1st quarter results

Westar Energy, Inc.
Condensed Consolidated Statements of Income
(Unaudited)

 
Three Months Ended Mar. 31,
 
2015
 
2014
 
Change
 
% Change
 
(Dollars In Thousands, Except Per Share Amounts)
REVENUES:
 
 
 
 
 
 
 
Residential
$
181,294

 
$
192,287

 
$
(10,993
)
 
(5.7
)
Commercial
161,305

 
161,100

 
205

 
0.1

Industrial
96,479

 
94,495

 
1,984

 
2.1

Other retail
539

 
(8,523
)
 
9,062

 
106.3

Total Retail Revenues
439,617

 
439,359

 
258

 
0.1

Wholesale
86,755

 
110,613

 
(23,858
)
 
(21.6
)
Transmission
58,585

 
61,466

 
(2,881
)
 
(4.7
)
Other
5,850

 
17,118

 
(11,268
)
 
(65.8
)
Total Revenues
590,807

 
628,556

 
(37,749
)
 
(6.0
)
OPERATING EXPENSES:
 
 
 
 
 
 
 
Fuel and purchased power
155,482

 
173,839

 
(18,357
)
 
(10.6
)
SPP network transmission costs
56,812

 
51,958

 
4,854

 
9.3

Operating and maintenance
85,080

 
91,790

 
(6,710
)
 
(7.3
)
Depreciation and amortization
74,586

 
70,110

 
4,476

 
6.4

Selling, general and administrative
55,418

 
56,486

 
(1,068
)
 
(1.9
)
Taxes other than income tax
37,871

 
34,832

 
3,039

 
8.7

Total Operating Expenses
465,249

 
479,015

 
(13,766
)
 
(2.9
)
INCOME FROM OPERATIONS
125,558

 
149,541

 
(23,983
)
 
(16.0
)
OTHER INCOME (EXPENSE):
 
 
 
 
 
 
 
Investment earnings
2,480

 
2,378

 
102

 
4.3

Other income
2,814

 
5,917

 
(3,103
)
 
(52.4
)
Other expense
(5,713
)
 
(5,664
)
 
(49
)
 
(0.9
)
Total Other (Expense) Income
(419
)
 
2,631

 
(3,050
)
 
(115.9
)
Interest expense
44,298

 
46,241

 
(1,943
)
 
(4.2
)
INCOME BEFORE INCOME TAXES
80,841

 
105,931

 
(25,090
)
 
(23.7
)
Income tax expense
27,678

 
34,961

 
(7,283
)
 
(20.8
)
NET INCOME
53,163

 
70,970

 
(17,807
)
 
(25.1
)
Less: Net income attributable to noncontrolling interests
2,183

 
2,015

 
168

 
8.3

NET INCOME ATTRIBUTABLE TO COMMON STOCK
$
50,980

 
$
68,955

 
$
(17,975
)
 
(26.1
)
BASIC AND DILUTED EARNINGS PER AVERAGE COMMON SHARE OUTSTANDING ATTRIBUTABLE TO WESTAR ENERGY, INC. (See 10-Q Note 2):
 
 
 
 
 
 
 
Basic earnings per common share
$
0.38

 
$
0.53

 
$
(0.15
)
 
(28.3
)
Diluted earnings per common share
$
0.38

 
$
0.52

 
$
(0.14
)
 
(26.9
)
AVERAGE EQUIVALENT COMMON SHARES OUTSTANDING (in thousands):
 
 
 
 
 
 
 
Basic
132,395

 
129,004

 
3,391

 
2.6

Diluted
135,540

 
131,269

 
4,271

 
3.3

DIVIDENDS DECLARED PER COMMON SHARE
$
0.36

 
$
0.35

 
$
0.01

 
2.9

Effective income tax rate
34.24
%
 
33.00
%
 
 
 
 

WESTAR ENERGY NEWS RELEASE    Page 3 of 3