- Second Quarter 2024 GAAP EPS of $0.90, compared to $0.78 in
2023
- Second Quarter 2024 Adjusted EPS (Non-GAAP) of $0.90, compared
to $0.81 in 2023
- Declares quarterly dividend of $0.6425 per share
- Reaffirms 2024 GAAP and Adjusted (Non-GAAP) EPS guidance of
$3.73 to $3.93
Evergy, Inc. (NASDAQ: EVRG) today announced second quarter 2024
GAAP earnings of $207.0 million, or $0.90 per share, compared to
GAAP earnings of $179.1 million, or $0.78 per share, for the second
quarter 2023.
Evergy’s second quarter 2024 adjusted earnings (non-GAAP) and
adjusted earnings per share (non-GAAP) were $207.0 million and
$0.90, respectively, compared to $186.1 million and $0.81 in 2023.
Adjusted earnings (non-GAAP) and adjusted earnings per share
(non-GAAP) are reconciled to GAAP earnings in the financial table
included in this release.
Second quarter 2024 adjusted earnings (non-GAAP) per share were
higher than last year due primarily to warmer than normal weather,
growth in weather-normalized demand, new retail rates and higher
transmission margin, partially offset by higher operation and
maintenance expense, higher depreciation and amortization expense
and higher interest expense.
"The overall economic development pipeline remains robust in
both Kansas and Missouri. Our focus on affordability and regional
rate competitiveness is an important contributor to this large
pipeline and provides a foundation of support for the tremendous
potential in our states. We are very excited to work with these
potential customers as they consider our region, building on our
successes with the Panasonic electric vehicle battery manufacturing
plant and the Meta and Google data centers,” said David Campbell,
Evergy chairman and chief executive officer. "Following solid
performance in the second quarter, we remain on track to meet our
expectations for the year.”
Earnings Guidance
The Company reaffirmed its 2024 GAAP EPS guidance range of $3.73
to $3.93, along with its 2024 adjusted EPS (non-GAAP) guidance
range of $3.73 to $3.93. Additionally, the Company reaffirmed its
long-term adjusted EPS (non-GAAP) annual growth target of 4% to 6%
through 2026 off the original $3.65 midpoint of 2023 adjusted EPS
guidance. Adjusted EPS (non-GAAP) guidance is reconciled to GAAP
EPS guidance in the financial table included in this release.
Dividend Declaration
The Board of Directors declared a dividend on the Company’s
common stock of $0.6425 per share payable on September 20, 2024.
The dividends are payable to shareholders of record as of August
20, 2024.
Earnings Conference Call
Evergy management will host a conference call Friday, August 9,
with the investment community at 9:00 a.m. ET (8:00 a.m. CT). To
view the webcast and presentation slides, please go to
investors.evergy.com. To access via phone, investors and analysts
will need to register using this link where they will be provided a
phone number and access code.
This earnings announcement, a package of detailed second quarter
financial information, the Company's quarterly report on Form 10-Q
for the period ended June 30, 2024, and other filings the Company
has made with the Securities and Exchange Commission are available
on the Company's website at http://investors.evergy.com.
Adjusted Earnings (non-GAAP) and
Adjusted Earnings Per Share (non-GAAP)
Management believes that adjusted earnings (non-GAAP) and
adjusted EPS (non-GAAP) are representative measures of Evergy's
recurring earnings, assist in the comparability of results and are
consistent with how management reviews performance.
Evergy's adjusted earnings (non-GAAP) and adjusted EPS
(non-GAAP) for the three months ended and year to date June 30,
2024 were $207.0 million or $0.90 per share and $331.7 million or
$1.44 per share, respectively. For the three months ended and year
to date June 30, 2023, Evergy’s adjusted earnings (non-GAAP) and
adjusted EPS (non-GAAP) were $186.1 million or $0.81 per share and
$322.2 million or $1.40 per share, respectively.
In addition to net income attributable to Evergy, Inc. and
diluted EPS, Evergy's management uses adjusted earnings (non-GAAP)
and adjusted EPS (non-GAAP) to evaluate earnings and EPS
without:
- the mark-to-market impacts of economic hedges related to Evergy
Kansas Central's 8% ownership share of JEC;
- the costs resulting from non-regulated energy marketing margins
from the February 2021 winter weather event; and
- the second quarter 2023 recognition of a regulatory liability
for the refund to customers of revenues previously collected since
October 2019 for costs related to an electric subdivision rebate
program to be refunded to customers in accordance with a June 2020
KCC order.
Adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP) are
intended to aid an investor's overall understanding of results.
Management believes that adjusted earnings (non-GAAP) provides a
meaningful basis for evaluating Evergy's operations across periods
because it excludes certain items that management does not believe
are indicative of Evergy's ongoing performance or that can create
period to period earnings volatility.
Adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP) are
used internally to measure performance against budget and in
reports for management and the Evergy Board. Adjusted earnings
(non-GAAP) and adjusted EPS (non-GAAP) are financial measures that
are not calculated in accordance with GAAP and may not be
comparable to other companies' presentations or more useful than
the GAAP information provided elsewhere in this report.
Evergy, Inc
Consolidated Earnings and
Diluted Earnings Per Share
(Unaudited)
Earnings (Loss)
Earnings (Loss) per Diluted
Share
Earnings (Loss)
Earnings (Loss) per Diluted
Share
Three Months Ended June 30
2024
2023
(millions, except per share
amounts)
Net income attributable to Evergy,
Inc.
$
207.0
$
0.90
$
179.1
$
0.78
Non-GAAP reconciling items:
Mark-to-market impact of JEC economic
hedges, pre-tax(a)
—
—
6.4
0.03
Non-regulated energy marketing costs
related to February 2021 winter weather event, pre-tax(b)
—
—
0.1
—
Electric subdivision rebate program costs
refund, pre-tax(c)
—
—
2.6
0.01
Income tax benefit(d)
—
—
(2.1
)
(0.01
)
Adjusted earnings (non-GAAP)
$
207.0
$
0.90
$
186.1
$
0.81
Earnings (Loss)
Earnings (Loss) per Diluted
Share
Earnings (Loss)
Earnings (Loss) per Diluted
Share
Year to Date June 30
2024
2023
(millions, except per share
amounts)
Net income attributable to Evergy,
Inc.
$
329.7
$
1.43
$
321.7
$
1.40
Non-GAAP reconciling items:
Mark-to-market impact of JEC economic
hedges, pre-tax(a)
2.6
0.01
(2.0
)
(0.01
)
Non-regulated energy marketing costs
related to February 2021 winter weather event, pre-tax(b)
—
—
0.2
—
Electric subdivision rebate program costs
refund, pre-tax(c)
—
—
2.6
0.01
Income tax benefit(d)
(0.6
)
—
(0.3
)
—
Adjusted earnings (non-GAAP)
$
331.7
$
1.44
$
322.2
$
1.40
(a)
Reflects mark-to-market gains or losses
related to forward contracts for natural gas and electricity
entered into as economic hedges against fuel price volatility
related to Evergy Kansas Central's 8% ownership share of JEC that
are included in operating revenues on the consolidated statements
of comprehensive income.
(b)
Reflects non-regulated energy marketing
incentive compensation costs related to the February 2021 winter
weather event that are included in operating and maintenance
expense on the consolidated statements of comprehensive income.
(c)
Reflects the second quarter 2023
recognition of a regulatory liability for the refund to customers
of revenues previously collected since October 2019 for costs
related to an electric subdivision rebate program to be refunded to
customers in accordance with a June 2020 KCC order that are
included in operating revenues on the consolidated statements of
comprehensive income.
(d)
Reflects an income tax effect calculated
at a statutory rate of approximately 22%.
GAAP to Non-GAAP Earnings
Guidance
Original 2023 Earnings per
Diluted Share
Guidance
2024 Earnings per
Diluted Share
Guidance
Net income attributable to Evergy,
Inc.
$3.55 - $3.75
$3.73 – $3.93
Non-GAAP reconciling items:
-
-
-
Adjusted earnings (non-GAAP)
$3.55 - $3.75
$3.73 – $3.93
About Evergy
Evergy, Inc. (NASDAQ: EVRG) serves 1.7 million customers in
Kansas and Missouri. Evergy’s mission is to empower a better
future. Our focus remains on producing, transmitting and delivering
reliable, affordable, and sustainable energy for the benefit of our
stakeholders. Today, about half of Evergy’s power comes from
carbon-free sources, creating more reliable energy with less impact
to the environment. We value innovation and adaptability to give
our customers better ways to manage their energy use, to create a
safe, diverse and inclusive workplace for our employees, and to add
value for our investors. Headquartered in Kansas City, our
employees are active members of the communities we serve.
For more information about Evergy, visit us at
http://investors.evergy.com.
Forward Looking
Statements
Statements made in this document 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.
Forward-looking statements include, but are not limited to,
statements relating to Evergy's strategic plan, including, without
limitation, those related to earnings per share, dividend,
operating and maintenance expense and capital investment goals; the
outcome of legislative efforts and regulatory and legal
proceedings; future energy demand; future power prices; plans with
respect to existing and potential future generation resources; the
availability and cost of generation resources and energy storage;
target emissions reductions; and other matters relating to expected
financial performance or affecting future operations.
Forward-looking statements are often accompanied by forward-looking
words such as "anticipates," "believes," "expects," "estimates,"
"forecasts," "should," "could," "may," "seeks," "intends,"
"proposed," "projects," "planned," "target," "outlook," "remain
confident," "goal," "will" or other words of similar meaning.
Forward-looking statements involve risks, uncertainties and other
factors that could cause actual results to differ materially from
the forward-looking information.
In connection with the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995, the Evergy Companies are
providing a number of risks, uncertainties and other factors that
could cause actual results to differ from the forward-looking
information. These risks, uncertainties and other factors include,
but are not limited to: economic and weather conditions and any
impact on sales, prices and costs; changes in business strategy or
operations; the impact of federal, state and local political,
legislative, judicial and regulatory actions or developments,
including deregulation, re-regulation, securitization and
restructuring of the electric utility industry; decisions of
regulators regarding, among other things, customer rates and the
prudency of operational decisions such as capital expenditures and
asset retirements; changes in applicable laws, regulations, rules,
principles or practices, or the interpretations thereof, governing
tax, accounting and environmental matters, including air and water
quality and waste management and disposal; the impact of climate
change, including increased frequency and severity of significant
weather events and the extent to which counterparties are willing
to do business with, finance the operations of or purchase energy
from the Evergy Companies due to the fact that the Evergy Companies
operate coal-fired generation; prices and availability of
electricity and natural gas in wholesale markets; market perception
of the energy industry and the Evergy Companies; the impact of
future pandemic health events on, among other things, sales,
results of operations, financial position, liquidity and cash
flows, and also on operational issues, such as supply chain issues
and the availability and ability of the Evergy Companies' employees
and suppliers to perform the functions that are necessary to
operate the Evergy Companies; changes in the energy trading markets
in which the Evergy Companies participate, including retroactive
repricing of transactions by regional transmission organizations
(RTO) and independent system operators; financial market conditions
and performance, disruptions in the banking industry, including
volatility in interest rates and credit spreads and in availability
and cost of capital and the effects on derivatives and hedges,
nuclear decommissioning trust and pension plan assets and costs;
impairments of long-lived assets or goodwill; credit ratings;
inflation rates; effectiveness of risk management policies and
procedures and the ability of counterparties to satisfy their
contractual commitments; impact of physical and cybersecurity
breaches, criminal activity, terrorist attacks, acts of war and
other disruptions to the Evergy Companies' facilities or
information technology infrastructure or the facilities and
infrastructure of third party service providers on which the Evergy
Companies rely; impact of geopolitical conflicts on the global
energy market, including the ability to contract for non-Russian
sourced uranium; ability to carry out marketing and sales plans;
cost, availability, quality and timely provision of equipment,
supplies, labor and fuel; impacts of tariffs; ability to achieve
generation goals and the occurrence and duration of planned and
unplanned generation outages; delays and cost increases of
generation, transmission, distribution or other projects; the
Evergy Companies' ability to manage their transmission and
distribution development plans and transmission joint ventures; the
inherent risks associated with the ownership and operation of a
nuclear facility, including environmental, health, safety,
regulatory and financial risks; workforce risks, including those
related to the Evergy Companies' ability to attract and retain
qualified personnel, maintain satisfactory relationships with their
labor unions and manage costs of, or changes in, wages, retirement,
health care and other benefits; disruption, costs and uncertainties
caused by or related to the actions of individuals or entities,
such as activist shareholders or special interest groups, that seek
to influence Evergy's strategic plan, financial results or
operations; the impact of changing expectations and demands of the
Evergy Companies' customers, regulators, investors and
stakeholders, including heightened emphasis on environmental,
social and governance concerns; the possibility that strategic
initiatives, including mergers, acquisitions and divestitures, and
long-term financial plans, may not create the value that they are
expected to achieve in a timely manner or at all; difficulties in
maintaining relationships with customers, employees, regulators or
suppliers; and other risks and uncertainties.
This list of factors is not all-inclusive because it is not
possible to predict all factors. You should also carefully consider
the information contained in the Evergy Companies' other filings
with the Securities and Exchange Commission (SEC). Additional risks
and uncertainties are discussed from time to time in current,
quarterly and annual reports filed by the Evergy Companies with the
SEC. New factors emerge from time to time, and it's not possible
for the Evergy Companies to predict all such factors, nor can the
Evergy Companies assess the impact of each such factor on the
business or the extent to which any factor, or combination of
factors, may cause actual results to differ materially from those
contained or implied in any forward-looking statement. Given these
uncertainties, undue reliance should not be placed on these
forward-looking statements. The Evergy Companies undertake no
obligation to publicly update or revise any forward-looking
statement, whether as a result of new information, future events or
otherwise, except as required by law.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240808251400/en/
Investor Contact: Pete Flynn Director, Investor Relations
Phone: 816-652-1060 Peter.Flynn@evergy.com
Media Contact: Gina Penzig Director, Corporate
Communications Phone: 785-508-2410 Gina.Penzig@evergy.com Media
line: 888-613-0003
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