EX-99.1 2 wr-09302015x8xkexhibit991.htm PRESS RELEASE DATED NOVEMBER 3, 2015 Exhibit
Exhibit 99.1


Westar Energy announces 3rd quarter 2015 results.
TOPEKA, Kan., Nov. 3, 2015 - Westar Energy, Inc. (NYSE:WR) today announced earnings of $138 million, or $0.97 per share, for the third quarter 2015 compared with earnings of $147 million, or $1.13 per share, for the third quarter 2014. Earnings for the nine months ended Sept. 30, 2015 were $253 million, or $1.84 per share, compared with $270 million, or $2.08 per share, for the same period in 2014.

Net income for the third quarter 2015 decreased primarily from lower corporate-owned life insurance benefits, recording a $3 million refund obligation for transmission revenues and recording a $2 million write-off for canceled capital projects related to retirements of generating units.
    
Net income for the nine months ended Sept. 30, 2015 decreased primarily from lower energy marketing margins of $13 million due to greater power price volatility in 2014 in the wholesale markets and recording an $11 million refund obligation for transmission revenues.

In addition to the decrease in net income, basic EPS decreased for the quarter and year-to-date periods due to issuance of common stock.

Earnings Guidance
    
The company tightened its 2015 earnings guidance range to $2.18 to $2.25 per share from $2.18 to $2.33. Additionally the company issued preliminary 2016 earnings guidance of $2.38 to $2.53 per share. Factors the company believes to be drivers of earnings guidance for both years are located 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, Nov. 4 with the investment community at 10:00 a.m. ET (9:00 a.m. CT). Investors, media and the public may listen to the conference call by dialing 877-703-6106, participant code 48652722. 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 third-quarter financial information, the company's quarterly report on Form 10-Q for the period ended Sept. 30, 2015 and other

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

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 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 Nov. 3, 2015, (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, 10 and 12; 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:
Bruce Burns
Director, Investor Relations
Phone: 785-575-8227
Bruce.Burns@westarenergy.com


WESTAR ENERGY NEWS RELEASE    Page 2 of 3
Westar Energy announces 3rd quarter results

Westar Energy, Inc.
Condensed Consolidated Statements of Income
(Unaudited)
 
Three Months Ended Sep. 30,
 
Nine Months Ended Sep. 30,
 
2015
 
2014
 
Change
 
% Change
 
2015
 
2014
 
Change
 
% Change
 
(Dollars In Thousands, Except Per Share Amounts)
REVENUES:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential
$
255,804

 
$
261,106

 
$
(5,302
)
 
(2.0
)
 
$
610,775

 
$
629,064

 
$
(18,289
)
 
(2.9
)
Commercial
213,461

 
223,588

 
(10,127
)
 
(4.5
)
 
550,761

 
562,882

 
(12,121
)
 
(2.2
)
Industrial
105,307

 
113,039

 
(7,732
)
 
(6.8
)
 
304,937

 
314,518

 
(9,581
)
 
(3.0
)
Other retail
1,620

 
(6,032
)
 
7,652

 
126.9

 
(5,503
)
 
(17,587
)
 
12,084

 
68.7

Total Retail Revenues
576,192

 
591,701

 
(15,509
)
 
(2.6
)
 
1,460,970

 
1,488,877

 
(27,907
)
 
(1.9
)
Wholesale
87,918

 
97,680

 
(9,762
)
 
(10.0
)
 
249,502

 
290,727

 
(41,225
)
 
(14.2
)
Transmission
61,190

 
67,145

 
(5,955
)
 
(8.9
)
 
181,070

 
192,311

 
(11,241
)
 
(5.8
)
Other
7,529

 
7,514

 
15

 
0.2

 
21,657

 
33,349

 
(11,692
)
 
(35.1
)
Total Revenues
732,829

 
764,040

 
(31,211
)
 
(4.1
)
 
1,913,199

 
2,005,264

 
(92,065
)
 
(4.6
)
OPERATING EXPENSES:
 
 
 
 
 
 
 
 
 
 
 
 
 
 


Fuel and purchased power
163,943

 
200,755

 
(36,812
)
 
(18.3
)
 
459,504

 
539,373

 
(79,869
)
 
(14.8
)
SPP network transmission costs
57,487

 
55,720

 
1,767

 
3.2

 
171,651

 
163,211

 
8,440

 
5.2

Operating and maintenance
80,444

 
84,213

 
(3,769
)
 
(4.5
)
 
248,263

 
277,841

 
(29,578
)
 
(10.6
)
Depreciation and amortization
77,184

 
72,279

 
4,905

 
6.8

 
228,529

 
213,270

 
15,259

 
7.2

Selling, general and administrative
60,485

 
60,977

 
(492
)
 
(0.8
)
 
179,567

 
179,633

 
(66
)
 
—

Taxes other than income tax
37,682

 
34,677

 
3,005

 
8.7

 
113,047

 
104,248

 
8,799

 
8.4

Total Operating Expenses
477,225

 
508,621

 
(31,396
)
 
(6.2
)
 
1,400,561

 
1,477,576

 
(77,015
)
 
(5.2
)
INCOME FROM OPERATIONS
255,604

 
255,419

 
185

 
0.1

 
512,638

 
527,688

 
(15,050
)
 
(2.9
)
OTHER INCOME (EXPENSE):
 
 
 
 
 
 
 
 
 
 
 
 
 
 


Investment earnings
314

 
1,655

 
(1,341
)
 
(81.0
)
 
4,427

 
7,208

 
(2,781
)
 
(38.6
)
Other income
637

 
14,991

 
(14,354
)
 
(95.8
)
 
18,572

 
26,566

 
(7,994
)
 
(30.1
)
Other expense
(5,392
)
 
(6,242
)
 
850

 
13.6

 
(13,737
)
 
(14,192
)
 
455

 
3.2

Total Other (Expense) Income
(4,441
)
 
10,404

 
(14,845
)
 
(142.7
)
 
9,262

 
19,582

 
(10,320
)
 
(52.7
)
Interest expense
44,306

 
44,531

 
(225
)
 
(0.5
)
 
134,120

 
138,075

 
(3,955
)
 
(2.9
)
INCOME BEFORE INCOME TAXES
206,857

 
221,292

 
(14,435
)
 
(6.5
)
 
387,780

 
409,195

 
(21,415
)
 
(5.2
)
Income tax expense
66,293

 
71,532

 
(5,239
)
 
(7.3
)
 
127,810

 
132,643

 
(4,833
)
 
(3.6
)
NET INCOME
140,564

 
149,760

 
(9,196
)
 
(6.1
)
 
259,970

 
276,552

 
(16,582
)
 
(6.0
)
Less: Net income attributable to noncontrolling interests
2,561

 
2,378

 
183

 
7.7

 
7,277

 
6,742

 
535

 
7.9

NET INCOME ATTRIBUTABLE TO WESTAR ENERGY, INC.
$
138,003

 
$
147,382

 
$
(9,379
)
 
(6.4
)
 
$
252,693

 
$
269,810

 
$
(17,117
)
 
(6.3
)
BASIC AND DILUTED EARNINGS PER AVERAGE COMMON SHARE OUTSTANDING ATTRIBUTABLE TO WESTAR ENERGY, INC. (See 10-Q Note 2):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic earnings per common share
$
0.97

 
$
1.13

 
$
(0.16
)
 
(14.2
)
 
$
1.84

 
$
2.08

 
$
(0.24
)
 
(11.5
)
Diluted earnings per common share
$
0.97

 
$
1.10

 
$
(0.13
)
 
(11.8
)
 
$
1.82

 
$
2.04

 
$
(0.22
)
 
(10.8
)
AVERAGE EQUIVALENT COMMON SHARES OUTSTANDING (in thousands):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic
141,623

 
130,196

 
11,427

 
8.8

 
136,686

 
129,526

 
7,160

 
5.5

Diluted
141,838

 
133,029

 
8,809

 
6.6

 
138,182

 
132,200

 
5,982

 
4.5

DIVIDENDS DECLARED PER COMMON SHARE
$
0.36

 
$
0.35

 
$
0.01

 
2.9

 
$
1.08

 
$
1.05

 
$
0.03

 
2.9

Effective income tax rate
32
%
 
32
%
 
 
 
 
 
33
%
 
32
%
 
 
 
 


WESTAR ENERGY NEWS RELEASE    Page 3 of 3