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Westar Energy announces 3rd quarter 2014 results.

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Topeka, Kan., Nov. 5, 2014 - Westar Energy, Inc. (NYSE:WR) today announced earnings of $147 million, or $1.13 per share, for the third quarter 2014 compared with earnings of $133 million, or $1.04 per share, for the third quarter 2013.  Earnings for the nine months ended September 30, 2014 were $270 million, or $2.08 per share, compared with $251 million, or $1.97 per share, for the same period in 2013.

Higher net income for the three months ended September 30, 2014 was driven largely by higher prices and lower operating and maintenance costs at the company’s power plants.

Higher net income for the nine months ended September 30, 2014 was largely driven by higher revenues. The higher revenues are due primarily to higher prices resulting from investments in transmission infrastructure and air quality controls and to a lesser extent to higher energy sales from cooler winter weather earlier this year and increased sales from industrial customers.  The higher revenues were partially offset by an increase in general and administrative costs.

Earnings Guidance

The company tightened its 2014 earnings guidance to $2.35 to $2.45 per share with a bias towards the upper end of the range.  The earnings guidance drivers 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 Thursday, Nov. 6 with the investment community at 9:30 a.m. ET (8:30 a.m. CT).  Investors, media and the public may listen to the conference call by dialing 877-703-6106, participant code 64808703. 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 September 30, 2014 and other filings the company has made with the Securities and Exchange Commission are available on the company's website at www.WestarEnergy.com.

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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, 2013 (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. 5, 2014, (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 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
Director, 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, Inc.
Condensed Consolidated Statements of Income
(Unaudited)

 

 

Three Months Ended Sep. 30,

 

Nine Months Ended Sep. 30,

 

2014

 

 

2013

 

 

Change

 

%Change

 

2014

 

 

2013

 

 

Change

 

% Change

 

(Dollars InThousands,ExceptPerShareAmounts)

REVENUES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential

$

261,106

 

 

$

237,984

 

 

$

23,122

 

 

9.7

 

 

$

629,064

 

 

$

568,662

 

 

$

60,402

 

 

10.6

 

Commercial

223,588

 

 

199,921

 

 

23,667

 

 

11.8

 

 

562,882

 

 

513,049

 

 

49,833

 

 

9.7

 

Industrial

113,039

 

 

98,410

 

 

14,629

 

 

14.9

 

 

314,518

 

 

282,155

 

 

32,363

 

 

11.5

 

Other retail

(6,032

)

 

3,849

 

 

(9,881

)

 

(256.7

)

 

(17,587

)

 

2,905

 

 

(20,492

)

 

(705.4

)

Total Retail Revenues

591,701

 

 

540,164

 

 

51,537

 

 

9.5

 

 

1,488,877

 

 

1,366,771

 

 

122,106

 

 

8.9

 

Wholesale

97,680

 

 

94,496

 

 

3,184

 

 

3.4

 

 

290,727

 

 

262,749

 

 

27,978

 

 

10.6

 

Transmission

67,145

 

 

52,410

 

 

14,735

 

 

28.1

 

 

192,311

 

 

156,725

 

 

35,586

 

 

22.7

 

Other

7,514

 

 

7,904

 

 

(390

)

 

(4.9

)

 

33,349

 

 

24,531

 

 

8,818

 

 

35.9

 

Total Revenues

764,040

 

 

694,974

 

 

69,066

 

 

9.9

 

 

2,005,264

 

 

1,810,776

 

 

194,488

 

 

10.7

 

OPERATING EXPENSES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fuel and purchased power

200,755

 

 

178,562

 

 

22,193

 

 

12.4

 

 

539,373

 

 

483,014

 

 

56,359

 

 

11.7

 

SPP network transmission costs

55,720

 

 

45,315

 

 

10,405

 

 

23.0

 

 

163,211

 

 

133,711

 

 

29,500

 

 

22.1

 

Operating and maintenance

84,213

 

 

93,377

 

 

(9,164

)

 

(9.8

)

 

277,841

 

 

265,532

 

 

12,309

 

 

4.6

 

Depreciation and amortization

72,279

 

 

68,861

 

 

3,418

 

 

5.0

 

 

213,270

 

 

203,305

 

 

9,965

 

 

4.9

 

Selling, general and administrative

60,977

 

 

54,245

 

 

6,732

 

 

12.4

 

 

179,633

 

 

157,668

 

 

21,965

 

 

13.9

 

Taxes other than income tax

34,677

 

 

30,408

 

 

4,269

 

 

14.0

 

 

104,248

 

 

91,889

 

 

12,359

 

 

13.4

 

Total Operating Expenses

508,621

 

 

470,768

 

 

37,853

 

 

8.0

 

 

1,477,576

 

 

1,335,119

 

 

142,457

 

 

10.7

 

INCOME FROM OPERATIONS

255,419

 

 

224,206

 

 

31,213

 

 

13.9

 

 

527,688

 

 

475,657

 

 

52,031

 

 

10.9

 

OTHER INCOME (EXPENSE):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment earnings

1,655

 

 

2,863

 

 

(1,208

)

 

(42.2

)

 

7,208

 

 

8,612

 

 

(1,404

)

 

(16.3

)

Other income

14,991

 

 

12,321

 

 

2,670

 

 

21.7

 

 

26,566

 

 

29,748

 

 

(3,182

)

 

(10.7

)

Other expense

(6,242

)

 

(6,195

)

 

(47

)

 

(0.8

)

 

(14,192

)

 

(13,911

)

 

(281

)

 

(2.0

)

Total Other Income

10,404

 

 

8,989

 

 

1,415

 

 

15.7

 

 

19,582

 

 

24,449

 

 

(4,867

)

 

(19.9

)

Interest expense

44,531

 

 

45,708

 

 

(1,177

)

 

(2.6

)

 

138,075

 

 

135,790

 

 

2,285

 

 

1.7

 

INCOME BEFORE INCOME TAXES

221,292

 

 

187,487

 

 

33,805

 

 

18.0

 

 

409,195

 

 

364,316

 

 

44,879

 

 

12.3

 

Income tax expense

71,532

 

 

52,392

 

 

19,140

 

 

36.5

 

 

132,643

 

 

106,514

 

 

26,129

 

 

24.5

 

NET INCOME

149,760

 

 

135,095

 

 

14,665

 

 

10.9

 

 

276,552

 

 

257,802

 

 

18,750

 

 

7.3

 

Less: Net income attributable to noncontrolling interests

2,378

 

 

1,970

 

 

408

 

 

20.7

 

 

6,742

 

 

6,344

 

 

398

 

 

6.3

 

NET INCOME ATTRIBUTABLE TO WESTAR ENERGY, INC.

$

147,382

 

 

$

133,125

 

 

$

14,257

 

 

10.7

 

 

$

269,810

 

 

$

251,458

 

 

$

18,352

 

 

7.3

 

BASIC AND DILUTED EARNINGS PER AVERAGE COMMON SHARE OUTSTANDING ATTRIBUTABLE TO WESTAR ENERGY, INC. (See 10-Q Note 2):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per common share

$

1.13

 

 

$

1.04

 

 

$

0.09

 

 

8.7

 

 

$

2.08

 

 

$

1.97

 

 

$

0.11

 

 

5.6

 

Diluted earnings per common share

$

1.10

 

 

$

1.04

 

 

$

0.06

 

 

5.8

 

 

$

2.04

 

 

$

1.96

 

 

$

0.08

 

 

4.1

 

AVERAGE EQUIVALENT COMMON SHARES OUTSTANDING (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

130,196

 

 

127,445

 

 

2,751

 

 

2.2

 

 

129,526

 

 

127,318

 

 

2,208

 

 

1.7

 

Diluted

133,029

 

 

128,111

 

 

4,918

 

 

3.8

 

 

132,200

 

 

127,851

 

 

4,349

 

 

3.4

 

DIVIDENDS DECLARED PER COMMON SHARE

$

0.35

 

 

$

0.34

 

 

$

0.01

 

 

2.9

 

 

$

1.05

 

 

$

1.02

 

 

$

0.03

 

 

2.9

 

Effective income tax rate

32.32

%

 

27.94

%

 

 

 

 

 

 

 

32.42

%

 

29.24

%

 

 

 

 

 

 

 

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