2013-02-28 23:03:24 -
WESTAR ENERGY ANNOUNCES 2012 RESULTS
Board declares 34 cent quarterly dividend.
TOPEKA, Kan., Feb. 28, 2013 - Westar Energy, Inc. (NYSE:WR) today announced
earnings of
$274 million, or $2.15 per share, for 2012 compared with earnings of $229
million, or $1.95 per share, for 2011. Earnings for 2011 included the benefits
of reversing previously recorded accruals as a result of legal settlements and a
gain on the sale of a non-utility investment. Earnings were $46 million, or
$0.36 per share, for the fourth quarter 2012 compared with earnings of
$19 million, or $0.16 per share, for the fourth quarter 2011.
Following are reconciliations of GAAP to ongoing (non-GAAP) net income and
earnings per share:
Three Months Ended Twelve Months Ended
Dec. 31, Dec. 31,
-------------------------------- ---------------------------------
2012 2011 Change 2012 2011 Change
------------------------------------------------------------------
(In millions, except per share amounts)
Net income
attributable to
common stock..... $ 45.6 $ 19.3 $ 26.3 $ 273.5 $ 229.3 $ 44.2
Less adjustments
for:
Reversal of
accruals related
to legal
settlements (a). - - - - 8.9 (8.9
)
Gain on sale of
non-utility
investment...... - - - - 7.2 (7.2
)
---------- ---------- ---------- ----------- ----------- ---------
Ongoing (non-GAAP)
net
income......... $ 45.6 $ 19.3 $ 26.3 $ 273.5 $ 213.2 $ 60.3
---------- ---------- ---------- ----------- ----------- ---------
Basic earnings per
share............. $ 0.36 $ 0.16 $ 0.20 $ 2.15 $ 1.95 $ 0.20
Less adjustment
for:
Reversal of
accruals related
to legal
settlements (a). - - - - 0.08 (0.08
)
Gain on sale of
non-utility
investment....... - - - - 0.06 (0.06
)
---------- ---------- ---------- ----------- ----------- ---------
Ongoing (non-GAAP)
earnings per
share........ $ 0.36 $ 0.16 $ 0.20 $ 2.15 $ 1.81 $ 0.34
---------- ---------- ---------- ----------- ----------- ---------
(a) Adjusted for income taxes and legal expenses related to legal settlement
The primary driver for the $26 million increase in fourth quarter ongoing net
income was higher retail revenues. The primary drivers for the $60 million
increase in full year 2012 ongoing net income were higher retail revenues,
reduced depreciation expense and recording $17 million in corporate-owned life
insurance benefits. These items were partially offset by increases in operating
costs due in part to implementing a rate order in April. Per share results for
both periods in 2012 reflect additional shares outstanding as a result of the
company having issued shares to fund capital investments.
Earnings Guidance
The company issued earnings guidance for 2013 of $2.00 to $2.15 per share and
posted to its website a summary of factors it considers to be principal drivers
and adjustments used in arriving at earnings guidance. The summary is located
under Supplemental Materials within the Investors section of the company website
at www.WestarEnergy.com.
Dividend Declaration
The Board of Directors today declared a quarterly dividend of 34 cents
per share payable Apr. 1, 2013 on the company's common stock payable to
shareholders of record as of Mar. 11, 2013. The new dividend reflects a 3
percent increase over the company's previous quarterly dividend of 33 cents per
share, and results in an indicated annual dividend of $1.36 per share.
Conference Call and Additional Company Information
Westar Energy management will host a conference call Friday, Mar. 1 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 866-730-5762, participant code
45237361. 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 Erin La Row with any follow-up questions.
This earnings announcement, a package of detailed fourth quarter and year-end
2012 financial information, the company's annual report on Form 10-K for the
period ended Dec. 31, 2012 and other filings the company has made with the
Securities and Exchange Commission are available on the company's website at
www.WestarEnergy.com.
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, a
smart meter pilot project 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
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, 2012 (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; and (2) 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.
Westar Energy, Inc.
Consolidated Statements of Income
(Unaudited)
Three Months Ended Twelve
Months Ended
Dec. 31,
Dec. 31,
--------------------------------------------------
------------------------------------------------
%
2012 2011 Change % Change 2012
2011 Change Change
------------- ------------- ----------- ---------- -------------
------------- ------------ -------
(In Thousands, Except Per Share Amounts)
REVENUES:
Residential......... $ 148,494 $ 136,604 $ 11,890 8.7 $ 714,562
$ 693,388 $ 21,174 3.1
Commercial........ 146,839 134,175 12,664 9.4 640,654
604,626 36,028 6.0
Industrial......... 90,873 79,379 11,494 14.5 368,909
347,881 21,028 6.0
Other
retail......... (6,970 ) (205 ) (6,765 ) nm (5,845 )
(8,964 ) 3,119 34.8
------------- ------------- ------------ -------------
------------- ------------
Total Retail
Revenues.... 379,236 349,953 29,283 8.4 1,718,280
1,636,931 81,349 5.0
Wholesale......... 87,387 89,752 (2,365 ) (2.6) 316,353
346,948 (30,595 ) (8.8)
Transmission........ 49,317 39,158 10,159 25.9 193,797
154,569 39,228 25.4
Other.......... 7,832 7,365 467 6.3 33,040
32,543 497 1.5
------------- ------------- ------------ -------------
------------- ------------
Total Revenues..... 523,772 486,228 37,544 7.7 2,261,470
2,170,991 90,479 4.2
------------- ------------- ------------ -------------
------------- ------------
OPERATING EXPENSES:
Fuel and purchased
power.... 137,150 144,096 (6,946 ) (4.8) 589,990
630,793 (40,803 ) (6.5)
Operating and
maintenance... 151,356 145,323 6,033 4.2 612,871
557,752 55,119 9.9
Depreciation and
amortization... 65,823 71,771 (5,948 ) (8.3) 270,464
285,322 (14,858 ) (5.2)
Selling, general and
administrative 61,668 52,463 9,205 17.5 226,012
184,695 41,317 22.4
------------- ------------- ------------ -------------
------------- ------------
Total Operating
Expenses.. 415,997 413,653 2,344 0.6 1,699,337
1,658,562 40,775 2.5
------------- ------------- ------------ -------------
------------- ------------
INCOME FROM
OPERATIONS.... 107,775 72,575 35,200 48.5 562,133
512,429 49,704 9.7
------------- ------------- ------------ -------------
------------- ------------
OTHER INCOME
(EXPENSE):
Investment
earnings..... 955 3,046 (2,091 ) (68.6) 7,411
9,301 (1,890 ) (20.3)
Other income........ 8,136 441 7,695 nm 35,378
8,652 26,726 308.9
Other expense....... (5,740 ) (4,445 ) (1,295 ) (29.1) (19,987 )
(18,398 ) (1,589 ) (8.6)
------------- ------------- ------------ -------------
------------- ------------
Total Other Income
(Expense) 3,351 (958 ) 4,309 449.8 22,802
(445 ) 23,247 nm
------------- ------------- ------------ -------------
------------- ------------
Interest
expense......... 44,451 41,779 2,672 6.4 176,337
172,460 3,877 2.2
------------- ------------- ------------ -------------
------------- ------------
INCOME BEFORE INCOME
TAXES. 66,675 29,838 36,837 123.5 408,598
339,524 69,074 20.3
Income tax
expense......... 18,980 8,532 10,448 122.5 126,136
103,344 22,792 22.1
------------- ------------- ------------ -------------
------------- ------------
NET INCOME......... 47,695 21,306 26,389 123.9 282,462
236,180 46,282 19.6
Less: Net income
attributable to
noncontrolling
interests... 2,088 1,729 359 20.8 7,316
5,941 1,375 23.1
------------- ------------- ------------ -------------
------------- ------------
NET INCOME
ATTRIBUTABLE TO
WESTAR ENERGY,
INC..... 45,607 19,577 26,030 133.0 275,146
230,239 44,907 19.5
Preferred
dividends....... - 242 (242 ) (100.0) 1,616
970 646 66.6
------------- ------------- ------------ -------------
------------- ------------
NET INCOME
ATTRIBUTABLE TO
COMMON STOCK...... $ 45,607 $ 19,335 $ 26,272 135.9 $ 273,530
$ 229,269 $ 44,261 19.3
------------- ------------- ------------ -------------
------------- ------------
Earnings per common
share, basic... $ 0.36 $ 0.16 $ 0.20 125.0 $ 2.15
$ 1.95 $ 0.20 10.3
------------- ------------- ------------ -------------
------------- ------------
Average equivalent
common shares
outstanding......... 126,929 121,880 5,049 4.1 126,712
116,891 9,821 8.4
DIVIDENDS DECLARED
PER COMMON
SHARE...... $ 0.33 $ 0.32 $ 0.01 3.1 $ 1.32
$ 1.28 $ 0.04 3.1
Effective income tax
rate...... 28.47 % 28.59 % 30.87 %
30.44 %
nm - not meaningful
Media contact:
Erin La Row,
senior communications rep.
Phone: 785.575.6060
erin.la.row@WestarEnergy.com
Investor contact:
Bruce Burns,
director, investor relations
Phone: 785.575.8227
bruce.burns@WestarEnergy.com
This announcement is distributed by Thomson Reuters on behalf of
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(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Westar Energy, Inc. via Thomson Reuters ONE
[HUG#1682168]
