UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) August 4, 2015
WESTAR ENERGY, INC.
(Exact name of registrant as specified in its charter)
|
| | | | |
KANSAS | | 1-3523 | | 48-0290150 |
(State or other jurisdiction of incorporation or organization) | | (Commission File Number) | | (IRS Employer Identification No.) |
| | | | |
818 South Kansas Avenue, Topeka, Kansas | | 66612 |
(Address of principal executive offices) | | (Zip Code) |
|
| |
Registrant's telephone number, including area code | (785) 575-6300 |
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
WESTAR ENERGY, INC.
Item 2.02. Results of Operations and Financial Condition
On August 4, 2015, we issued a press release announcing our earnings for the period ended June 30, 2015. A copy of our August 4, 2015 press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference. We are also including our 2015 Second Quarter Earnings package, which is attached hereto as Exhibit 99.2 and is incorporated herein by reference. The information furnished pursuant to this Item 2.02, including Exhibits 99.1 and 99.2, will not be incorporated by reference into any registration statement filed by us under the Securities Act of 1933, as amended, unless specifically identified therein as being incorporated by reference.
Item 9.01. Financial Statements and Exhibits
Exhibit 99.1 Press Release dated August 4, 2015
| |
Exhibit 99.2 | 2015 Second Quarter Earnings Package |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
|
| | | | | | |
| | | | WESTAR ENERGY, INC. |
| | | | | | |
Date: | | August 4, 2015 | | By: | | /s/ Larry D. Irick |
| | | | Name: | | Larry D. Irick |
| | | | Title: | | Vice President, General Counsel and Corporate Secretary |
EXHIBIT INDEX
|
| | |
Exhibit Number | | Description of Exhibit |
Exhibit 99.1 | | Press Release dated August 4, 2015 |
Exhibit 99.2 | | 2015 Second Quarter Earnings Package |
Westar Energy announces 2nd quarter 2015 results.
TOPEKA, Kan., Aug. 4, 2015 - Westar Energy, Inc. (NYSE:WR) today announced earnings of $64 million, or $0.47 per share, for the second quarter 2015 compared with earnings of $53 million, or $0.41 per share, for the second quarter 2014. Earnings for the six months ended June 30, 2015 were $115 million, or $0.85 per share, compared with $122 million, or $0.95 per share, for the same period in 2014.
Higher net income for the three months ended June 30, 2015 was driven by lower operating and maintenance costs at the company’s power plants and higher COLI income. The lower expenses and higher COLI income were offset by a decrease in retail sales due largely to mild weather compared with last year and a $3 million estimated refund obligation for transmission revenue.
Lower net income for the six months ended June 30, 2015 reflects mild weather, which reduced both energy marketing margins and retail energy sales, and a $9 million estimated refund obligation for transmission revenue. Lower operating expenses and receipt of COLI income partially offset the lower revenues.
Earnings Guidance
The company affirmed its 2015 earnings guidance of $2.18 to $2.33 per share. 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 Wednesday, Aug. 5 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 800-884-5695, participant code 71187505. 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 second-quarter financial information, the company's quarterly report on Form 10-Q for the period ended June 30, 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 NEWS RELEASE Page 1 of 3
Westar Energy announces 2nd quarter results
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 Aug. 4, 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 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 2nd quarter results
Westar Energy, Inc.
Condensed Consolidated Statements of Income
(Unaudited)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended Jun. 30, | | Six Months Ended Jun. 30, |
| 2015 | | 2014 | | Change | | % Change | | 2015 | | 2014 | | Change | | % Change |
| (Dollars In Thousands, Except Per Share Amounts) |
REVENUES: | | | | | | | | | | | | | | | |
Residential | $ | 173,677 |
| | $ | 175,671 |
| | $ | (1,994 | ) | | (1.1 | ) | | $ | 354,970 |
| | $ | 367,958 |
| | $ | (12,988 | ) | | (3.5 | ) |
Commercial | 175,994 |
| | 178,194 |
| | (2,200 | ) | | (1.2 | ) | | 337,300 |
| | 339,294 |
| | (1,994 | ) | | (0.6 | ) |
Industrial | 103,151 |
| | 106,984 |
| | (3,833 | ) | | (3.6 | ) | | 199,630 |
| | 201,480 |
| | (1,850 | ) | | (0.9 | ) |
Other retail | (7,660 | ) | | (3,033 | ) | | (4,627 | ) | | (152.6 | ) | | (7,122 | ) | | (11,557 | ) | | 4,435 |
| | 38.4 |
|
Total Retail Revenues | 445,162 |
| | 457,816 |
| | (12,654 | ) | | (2.8 | ) | | 884,778 |
| | 897,175 |
| | (12,397 | ) | | (1.4 | ) |
Wholesale | 74,828 |
| | 82,434 |
| | (7,606 | ) | | (9.2 | ) | | 161,584 |
| | 193,047 |
| | (31,463 | ) | | (16.3 | ) |
Transmission | 61,295 |
| | 63,700 |
| | (2,405 | ) | | (3.8 | ) | | 119,880 |
| | 125,166 |
| | (5,286 | ) | | (4.2 | ) |
Other | 8,278 |
| | 8,718 |
| | (440 | ) | | (5.0 | ) | | 14,128 |
| | 25,836 |
| | (11,708 | ) | | (45.3 | ) |
Total Revenues | 589,563 |
| | 612,668 |
| | (23,105 | ) | | (3.8 | ) | | 1,180,370 |
| | 1,241,224 |
| | (60,854 | ) | | (4.9 | ) |
OPERATING EXPENSES: | | | | | | | | | | | | | | |
|
|
Fuel and purchased power | 140,080 |
| | 164,779 |
| | (24,699 | ) | | (15.0 | ) | | 295,561 |
| | 338,618 |
| | (43,057 | ) | | (12.7 | ) |
SPP network transmission costs | 57,352 |
| | 55,533 |
| | 1,819 |
| | 3.3 |
| | 114,164 |
| | 107,491 |
| | 6,673 |
| | 6.2 |
|
Operating and maintenance | 82,739 |
| | 101,839 |
| | (19,100 | ) | | (18.8 | ) | | 167,819 |
| | 193,629 |
| | (25,810 | ) | | (13.3 | ) |
Depreciation and amortization | 76,759 |
| | 70,882 |
| | 5,877 |
| | 8.3 |
| | 151,345 |
| | 140,992 |
| | 10,353 |
| | 7.3 |
|
Selling, general and administrative | 63,663 |
| | 62,168 |
| | 1,495 |
| | 2.4 |
| | 119,082 |
| | 118,653 |
| | 429 |
| | 0.4 |
|
Taxes other than income tax | 37,494 |
| | 34,738 |
| | 2,756 |
| | 7.9 |
| | 75,365 |
| | 69,571 |
| | 5,794 |
| | 8.3 |
|
Total Operating Expenses | 458,087 |
| | 489,939 |
| | (31,852 | ) | | (6.5 | ) | | 923,336 |
| | 968,954 |
| | (45,618 | ) | | (4.7 | ) |
INCOME FROM OPERATIONS | 131,476 |
| | 122,729 |
| | 8,747 |
| | 7.1 |
| | 257,034 |
| | 272,270 |
| | (15,236 | ) | | (5.6 | ) |
OTHER INCOME (EXPENSE): | | | | | | | | | | | | | | |
|
|
Investment earnings | 1,634 |
| | 3,175 |
| | (1,541 | ) | | (48.5 | ) | | 4,113 |
| | 5,553 |
| | (1,440 | ) | | (25.9 | ) |
Other income | 15,121 |
| | 5,658 |
| | 9,463 |
| | 167.2 |
| | 17,935 |
| | 11,575 |
| | 6,360 |
| | 54.9 |
|
Other expense | (2,633 | ) | | (2,287 | ) | | (346 | ) | | (15.1 | ) | | (8,345 | ) | | (7,952 | ) | | (393 | ) | | (4.9 | ) |
Total Other Income | 14,122 |
| | 6,546 |
| | 7,576 |
| | 115.7 |
| | 13,703 |
| | 9,176 |
| | 4,527 |
| | 49.3 |
|
Interest expense | 45,516 |
| | 47,303 |
| | (1,787 | ) | | (3.8 | ) | | 89,814 |
| | 93,543 |
| | (3,729 | ) | | (4.0 | ) |
INCOME BEFORE INCOME TAXES | 100,082 |
| | 81,972 |
| | 18,110 |
| | 22.1 |
| | 180,923 |
| | 187,903 |
| | (6,980 | ) | | (3.7 | ) |
Income tax expense | 33,839 |
| | 26,150 |
| | 7,689 |
| | 29.4 |
| | 61,517 |
| | 61,111 |
| | 406 |
| | 0.7 |
|
NET INCOME | 66,243 |
| | 55,822 |
| | 10,421 |
| | 18.7 |
| | 119,406 |
| | 126,792 |
| | (7,386 | ) | | (5.8 | ) |
Less: Net income attributable to noncontrolling interests | 2,533 |
| | 2,349 |
| | 184 |
| | 7.8 |
| | 4,716 |
| | 4,365 |
| | 351 |
| | 8.0 |
|
NET INCOME ATTRIBUTABLE TO WESTAR ENERGY, INC. | $ | 63,710 |
| | $ | 53,473 |
| | $ | 10,237 |
| | 19.1 |
| | $ | 114,690 |
| | $ | 122,427 |
| | $ | (7,737 | ) | | (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 | $ | 0.47 |
| | $ | 0.41 |
| | $ | 0.06 |
| | 14.6 |
| | $ | 0.85 |
| | $ | 0.95 |
| | $ | (0.10 | ) | | (10.5 | ) |
Diluted earnings per common share | $ | 0.46 |
| | $ | 0.40 |
| | $ | 0.06 |
| | 15.0 |
| | $ | 0.84 |
| | $ | 0.93 |
| | $ | (0.09 | ) | | (9.7 | ) |
AVERAGE EQUIVALENT COMMON SHARES OUTSTANDING (in thousands): | | | | | | | | | | | | | | | |
Basic | 135,939 |
| | 129,363 |
| | 6,576 |
| | 5.1 |
| | 134,177 |
| | 129,185 |
| | 4,992 |
| | 3.9 |
|
Diluted | 137,412 |
| | 131,973 |
| | 5,439 |
| | 4.1 |
| | 136,330 |
| | 131,779 |
| | 4,551 |
| | 3.5 |
|
DIVIDENDS DECLARED PER COMMON SHARE | $ | 0.36 |
| | $ | 0.35 |
| | $ | 0.01 |
| | 2.9 |
| | $ | 0.72 |
| | $ | 0.70 |
| | $ | 0.02 |
| | 2.9 |
|
Effective income tax rate | 33.81 | % | | 31.90 | % | | | | | | 34.00 | % | | 32.52 | % | | | | |
WESTAR ENERGY NEWS RELEASE Page 3 of 3
Exhibit 99.2
Westar Energy, Inc.
Second Quarter 2015 Earnings
Released August 4, 2015
Bruce Burns
Director Investor Relations
785-575-8227
bruce.burns@WestarEnergy.com
NOTE:
The Notes to the Condensed Consolidated Financial Statements in the company's Quarterly Report on Form 10-Q for the period ended June 30, 2015 should be read in conjunction with this financial information. The enclosed statements have been prepared for the purpose of providing information concerning the Company and not in connection with any sale, offer for sale, or solicitation to buy any securities.
Westar Energy, Inc.
Condensed Consolidated Statements of Income
(Unaudited)
|
| | | | | | | | | | | | | | |
| Three Months Ended June 30, |
| 2015 | | 2014 | | Change | | % Change |
| (Dollars in Thousands, Except Per Share Amounts) |
REVENUES: | | | | | | | |
Residential | $ | 173,677 |
| | $ | 175,671 |
| | $ | (1,994 | ) | | (1.1 | ) |
Commercial | 175,994 |
| | 178,194 |
| | (2,200 | ) | | (1.2 | ) |
Industrial | 103,151 |
| | 106,984 |
| | (3,833 | ) | | (3.6 | ) |
Other retail | (7,660 | ) | | (3,033 | ) | | (4,627 | ) | | (152.6 | ) |
Total Retail Revenues | 445,162 |
| | 457,816 |
| | (12,654 | ) | | (2.8 | ) |
Wholesale | 74,828 |
| | 82,434 |
| | (7,606 | ) | | (9.2 | ) |
Transmission | 61,295 |
| | 63,700 |
| | (2,405 | ) | | (3.8 | ) |
Other | 8,278 |
| | 8,718 |
| | (440 | ) | | (5.0 | ) |
Total Revenues | 589,563 |
| | 612,668 |
| | (23,105 | ) | | (3.8 | ) |
OPERATING EXPENSES: | | | | | | | |
Fuel and purchased power | 140,080 |
| | 164,779 |
| | (24,699 | ) | | (15.0 | ) |
SPP network transmission costs | 57,352 |
| | 55,533 |
| | 1,819 |
| | 3.3 |
|
Operating and maintenance | 82,739 |
| | 101,839 |
| | (19,100 | ) | | (18.8 | ) |
Depreciation and amortization | 76,759 |
| | 70,882 |
| | 5,877 |
| | 8.3 |
|
Selling, general and administrative | 63,663 |
| | 62,168 |
| | 1,495 |
| | 2.4 |
|
Taxes other than income tax | 37,494 |
| | 34,738 |
| | 2,756 |
| | 7.9 |
|
Total Operating Expenses | 458,087 |
| | 489,939 |
| | (31,852 | ) | | (6.5 | ) |
INCOME FROM OPERATIONS | 131,476 |
| | 122,729 |
| | 8,747 |
| | 7.1 |
|
OTHER INCOME (EXPENSE): | | | | | | | |
Investment earnings | 1,634 |
| | 3,175 |
| | (1,541 | ) | | (48.5 | ) |
Other income | 15,121 |
| | 5,658 |
| | 9,463 |
| | 167.2 |
|
Other expense | (2,633 | ) | | (2,287 | ) | | (346 | ) | | (15.1 | ) |
Total Other Income | 14,122 |
| | 6,546 |
| | 7,576 |
| | 115.7 |
|
Interest expense | 45,516 |
| | 47,303 |
| | (1,787 | ) | | (3.8 | ) |
INCOME BEFORE INCOME TAXES | 100,082 |
| | 81,972 |
| | 18,110 |
| | 22.1 |
|
Income tax expense | 33,839 |
| | 26,150 |
| | 7,689 |
| | 29.4 |
|
NET INCOME | 66,243 |
| | 55,822 |
| | 10,421 |
| | 18.7 |
|
Less: Net income attributable to noncontrolling interests | 2,533 |
| | 2,349 |
| | 184 |
| | 7.8 |
|
NET INCOME ATTRIBUTABLE TO WESTAR ENERGY, INC. | $ | 63,710 |
| | $ | 53,473 |
| | $ | 10,237 |
| | 19.1 |
|
BASIC AND DILUTED EARNINGS PER AVERAGE COMMON SHARE OUTSTANDING ATTRIBUTABLE TO WESTAR ENERGY, INC. (See 10-Q Note 2): | | | | | | | |
Basic earnings per common share | $ | 0.47 |
| | $ | 0.41 |
| | $ | 0.06 |
| | 14.6 |
|
Diluted earnings per common share | $ | 0.46 |
| | $ | 0.40 |
| | $ | 0.06 |
| | 15.0 |
|
AVERAGE EQUIVALENT COMMON SHARES OUTSTANDING (in thousands): | | | | | | | |
Basic | 135,939 |
| | 129,363 |
| | 6,576 |
| | 5.1 |
|
Diluted | 137,412 |
| | 131,973 |
| | 5,439 |
| | 4.1 |
|
DIVIDENDS DECLARED PER COMMON SHARE | $ | 0.36 |
| | $ | 0.35 |
| | $ | 0.01 |
| | 2.9 |
|
Effective income tax rate | 33.81 | % | | 31.90 | % | | | | |
| | | | | | | |
The Notes to the Condensed Consolidated Financial Statements in the company's Quarterly Report on Form 10-Q
for the period ended June 30, 2015 should be read in conjunction with this financial information.
Page 1
Westar Energy, Inc.
Condensed Consolidated Statements of Income
(Unaudited)
|
| | | | | | | | | | | | | | |
| Six Months Ended June 30, |
| 2015 | | 2014 | | Change | | % Change |
| (Dollars in Thousands, Except Per Share Amounts) |
REVENUES: | | | | | | | |
Residential | $ | 354,970 |
| | $ | 367,958 |
| | $ | (12,988 | ) | | (3.5 | ) |
Commercial | 337,300 |
| | 339,294 |
| | (1,994 | ) | | (0.6 | ) |
Industrial | 199,630 |
| | 201,480 |
| | (1,850 | ) | | (0.9 | ) |
Other retail | (7,122 | ) | | (11,557 | ) | | 4,435 |
| | 38.4 |
|
Total Retail Revenues | 884,778 |
| | 897,175 |
| | (12,397 | ) | | (1.4 | ) |
Wholesale | 161,584 |
| | 193,047 |
| | (31,463 | ) | | (16.3 | ) |
Transmission | 119,880 |
| | 125,166 |
| | (5,286 | ) | | (4.2 | ) |
Other | 14,128 |
| | 25,836 |
| | (11,708 | ) | | (45.3 | ) |
Total Revenues | 1,180,370 |
| | 1,241,224 |
| | (60,854 | ) | | (4.9 | ) |
OPERATING EXPENSES: | | | | | | | |
Fuel and purchased power | 295,561 |
| | 338,618 |
| | (43,057 | ) | | (12.7 | ) |
SPP network transmission costs | 114,164 |
| | 107,491 |
| | 6,673 |
| | 6.2 |
|
Operating and maintenance | 167,819 |
| | 193,629 |
| | (25,810 | ) | | (13.3 | ) |
Depreciation and amortization | 151,345 |
| | 140,992 |
| | 10,353 |
| | 7.3 |
|
Selling, general and administrative | 119,082 |
| | 118,653 |
| | 429 |
| | 0.4 |
|
Taxes other than income tax | 75,365 |
| | 69,571 |
| | 5,794 |
| | 8.3 |
|
Total Operating Expenses | 923,336 |
| | 968,954 |
| | (45,618 | ) | | (4.7 | ) |
INCOME FROM OPERATIONS | 257,034 |
| | 272,270 |
| | (15,236 | ) | | (5.6 | ) |
OTHER INCOME (EXPENSE): | | | | | | | |
Investment earnings | 4,113 |
| | 5,553 |
| | (1,440 | ) | | (25.9 | ) |
Other income | 17,935 |
| | 11,575 |
| | 6,360 |
| | 54.9 |
|
Other expense | (8,345 | ) | | (7,952 | ) | | (393 | ) | | (4.9 | ) |
Total Other Income | 13,703 |
| | 9,176 |
| | 4,527 |
| | 49.3 |
|
Interest expense | 89,814 |
| | 93,543 |
| | (3,729 | ) | | (4.0 | ) |
INCOME BEFORE INCOME TAXES | 180,923 |
| | 187,903 |
| | (6,980 | ) | | (3.7 | ) |
Income tax expense | 61,517 |
| | 61,111 |
| | 406 |
| | 0.7 |
|
NET INCOME | 119,406 |
| | 126,792 |
| | (7,386 | ) | | (5.8 | ) |
Less: Net income attributable to noncontrolling interests | 4,716 |
| | 4,365 |
| | 351 |
| | 8.0 |
|
NET INCOME ATTRIBUTABLE TO WESTAR ENERGY, INC. | $ | 114,690 |
| | $ | 122,427 |
| | $ | (7,737 | ) | | (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 | $ | 0.85 |
| | $ | 0.95 |
| | $ | (0.10 | ) | | (10.5 | ) |
Diluted earnings per common share | $ | 0.84 |
| | $ | 0.93 |
| | $ | (0.09 | ) | | (9.7 | ) |
AVERAGE EQUIVALENT COMMON SHARES OUTSTANDING (in thousands): | | | | | | | |
Basic | 134,177 |
| | 129,185 |
| | 4,992 |
| | 3.9 |
|
Diluted | 136,330 |
| | 131,779 |
| | 4,551 |
| | 3.5 |
|
DIVIDENDS DECLARED PER COMMON SHARE | $ | 0.72 |
| | $ | 0.70 |
| | $ | 0.02 |
| | 2.9 |
|
Effective income tax rate | 34.00 | % | | 32.52 | % | | | | |
| | | | | | | |
The Notes to the Condensed Consolidated Financial Statements in the company's Quarterly Report on Form 10-Q
for the period ended June 30, 2015 should be read in conjunction with this financial information.
Page 2
Westar Energy, Inc.
Condensed Consolidated Balance Sheets
(Dollars in Thousands, Except Par Values)
(Unaudited)
|
| | | | | | | |
| June 30, 2015 | | December 31, 2014 |
ASSETS | | | |
CURRENT ASSETS: | | | |
Cash and cash equivalents | $ | 2,266 |
| | $ | 4,556 |
|
Accounts receivable, net of allowance for doubtful accounts of $4,569 and $5,309, respectively | 266,330 |
| | 267,327 |
|
Fuel inventory and supplies | 279,026 |
| | 247,406 |
|
Deferred tax assets | 20,073 |
| | 29,636 |
|
Prepaid expenses | 18,147 |
| | 15,793 |
|
Regulatory assets | 123,961 |
| | 105,549 |
|
Other | 43,729 |
| | 30,655 |
|
Total Current Assets | 753,532 |
| | 700,922 |
|
PROPERTY, PLANT AND EQUIPMENT, NET | 8,340,478 |
| | 8,162,908 |
|
PROPERTY, PLANT AND EQUIPMENT OF VARIABLE INTEREST ENTITIES, NET | 273,406 |
| | 278,573 |
|
OTHER ASSETS: | | | |
Regulatory assets | 726,923 |
| | 754,229 |
|
Nuclear decommissioning trust | 191,934 |
| | 185,016 |
|
Other | 261,886 |
| | 265,353 |
|
Total Other Assets | 1,180,743 |
| | 1,204,598 |
|
TOTAL ASSETS | $ | 10,548,159 |
| | $ | 10,347,001 |
|
LIABILITIES AND EQUITY | | | |
CURRENT LIABILITIES: | | | |
Current maturities of long-term debt of variable interest entities | $ | 28,315 |
| | $ | 27,933 |
|
Short-term debt | 307,100 |
| | 257,600 |
|
Accounts payable | 185,307 |
| | 219,351 |
|
Accrued dividends | 49,736 |
| | 44,971 |
|
Accrued taxes | 87,792 |
| | 74,356 |
|
Accrued interest | 48,036 |
| | 79,707 |
|
Regulatory liabilities | 60,860 |
| | 55,142 |
|
Other | 77,779 |
| | 90,571 |
|
Total Current Liabilities | 844,925 |
| | 849,631 |
|
LONG-TERM LIABILITIES: | | | |
Long-term debt, net | 3,091,655 |
| | 3,215,539 |
|
Long-term debt of variable interest entities, net | 138,173 |
| | 166,565 |
|
Deferred income taxes | 1,511,299 |
| | 1,475,487 |
|
Unamortized investment tax credits | 209,520 |
| | 211,040 |
|
Regulatory liabilities | 283,451 |
| | 288,343 |
|
Accrued employee benefits | 524,191 |
| | 532,622 |
|
Asset retirement obligations | 283,194 |
| | 230,668 |
|
Other | 77,287 |
| | 75,799 |
|
Total Long-Term Liabilities | 6,118,770 |
| | 6,196,063 |
|
COMMITMENTS AND CONTINGENCIES (See 10-Q Notes 10 and 12) | | | |
EQUITY: | | | |
Westar Energy, Inc. Shareholders’ Equity: | | | |
Common stock, par value $5 per share; authorized 275,000,000 shares; issued and outstanding 141,178,618 shares and 131,687,454 shares, respective to each date | 705,893 |
| | 658,437 |
|
Paid-in capital | 1,997,661 |
| | 1,781,120 |
|
Retained earnings | 870,820 |
| | 855,299 |
|
Total Westar Energy, Inc. Shareholders’ Equity | 3,574,374 |
| | 3,294,856 |
|
Noncontrolling Interests | 10,090 |
| | 6,451 |
|
Total Equity | 3,584,464 |
| | 3,301,307 |
|
TOTAL LIABILITIES AND EQUITY | $ | 10,548,159 |
| | $ | 10,347,001 |
|
The Notes to the Condensed Consolidated Financial Statements in the company's Quarterly Report on Form 10-Q
for the period ended June 30, 2015 should be read in conjunction with this financial information.
Page 3
Westar Energy, Inc.
Condensed Consolidated Statements of Cash Flows
(In Thousands)
(Unaudited)
|
| | | | | | | |
| Six Months Ended June 30, |
| 2015 | | 2014 |
CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES: | | | |
Net income | $ | 119,406 |
| | $ | 126,792 |
|
Adjustments to reconcile net income to net cash provided by operating activities: | | | |
Depreciation and amortization | 151,345 |
| | 140,992 |
|
Amortization of nuclear fuel | 10,085 |
| | 10,304 |
|
Amortization of deferred regulatory gain from sale leaseback | (2,748 | ) | | (2,748 | ) |
Amortization of corporate-owned life insurance | 9,042 |
| | 8,712 |
|
Non-cash compensation | 4,241 |
| | 3,945 |
|
Net deferred income taxes and credits | 54,740 |
| | 58,097 |
|
Stock-based compensation excess tax benefits | (1,178 | ) | | 544 |
|
Allowance for equity funds used during construction | (2,041 | ) | | (9,718 | ) |
Changes in working capital items: | | | |
Accounts receivable | 998 |
| | (10,586 | ) |
Fuel inventory and supplies | (31,307 | ) | | (16,248 | ) |
Prepaid expenses and other | (40,195 | ) | | (4,891 | ) |
Accounts payable | (2,873 | ) | | (16,199 | ) |
Accrued taxes | 16,893 |
| | 8,293 |
|
Other current liabilities | (65,908 | ) | | (32,477 | ) |
Changes in other assets | (9,712 | ) | | 1,828 |
|
Changes in other liabilities | 21,046 |
| | 16,674 |
|
Cash Flows from Operating Activities | 231,834 |
| | 283,314 |
|
CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES: | | | |
Additions to property, plant and equipment | (334,905 | ) | | (427,124 | ) |
Purchase of securities - trusts | (9,980 | ) | | (4,410 | ) |
Sale of securities - trusts | 10,263 |
| | 5,552 |
|
Investment in corporate-owned life insurance | (14,845 | ) | | (15,903 | ) |
Proceeds from investment in corporate-owned life insurance | 1,192 |
| | 1,773 |
|
Investment in affiliated company | — |
| | 1,418 |
|
Other investing activities | (653 | ) | | (1,544 | ) |
Cash Flows used in Investing Activities | (348,928 | ) | | (440,238 | ) |
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES: | | | |
Short-term debt, net | 49,500 |
| | 208,533 |
|
Proceeds from long-term debt | — |
| | 171,785 |
|
Retirements of long-term debt | (125,000 | ) | | (177,500 | ) |
Retirements of long-term debt of variable interest entities | (27,925 | ) | | (27,305 | ) |
Repayment of capital leases | (1,721 | ) | | (1,628 | ) |
Borrowings against cash surrender value of corporate-owned life insurance | 56,622 |
| | 56,577 |
|
Repayment of borrowings against cash surrender value of corporate-owned life insurance | (899 | ) | | (1,123 | ) |
Stock-based compensation excess tax benefits | 1,178 |
| | (544 | ) |
Issuance of common stock | 256,394 |
| | 20,699 |
|
Distributions to shareholders of noncontrolling interests | (1,076 | ) | | — |
|
Cash dividends paid | (89,035 | ) | | (84,419 | ) |
Other financing activities | (3,234 | ) | | (1,887 | ) |
Cash Flows from Financing Activities | 114,804 |
| | 163,188 |
|
NET CHANGE IN CASH AND CASH EQUIVALENTS | (2,290 | ) | | 6,264 |
|
CASH AND CASH EQUIVALENTS: | | | |
Beginning of period | 4,556 |
| | 4,487 |
|
End of period | $ | 2,266 |
| | $ | 10,751 |
|
The Notes to the Condensed Consolidated Financial Statements in the company's Quarterly Report on Form 10-Q
for the period ended June 30, 2015 should be read in conjunction with this financial information.
Page 4
Westar Energy, Inc.
2nd Quarter 2015 vs. 2014
|
| | | | | | | | | | | | | | |
Earnings Variances | | | | | | | | |
| | | | | Change | | | | |
| | | ($ per share) | | (Dollars in Thousands) | | | | ($ per share) |
2014 basic earnings attributable to common stock | | | | $ | 53,473 |
| | | | $ | 0.41 |
|
| | | | | | | | | |
| | | Favorable/(Unfavorable) |
| | | | | | | | | |
| Retail | | | | (12,654 | ) | | A | | |
| Wholesale | | | | (7,606 | ) | | B | | |
| Transmission | | | | (2,405 | ) | | C | | |
| Other revenues | | | | (440 | ) | | | | |
| Fuel and purchased power | | | | 24,699 |
| | D | | |
| SPP network transmission costs | | | | (1,819 | ) | | | | |
| Gross Margin | | | | (225 | ) | | | | |
| Operating and maintenance | | | | 19,100 |
| | E | | |
| Depreciation and amortization | | | | (5,877 | ) | | F | | |
| Selling, general and administrative | | | | (1,495 | ) | | | | |
| Taxes other than income tax | | | | (2,756 | ) | | G | | |
| Other income (expense) | | | | 7,576 |
| | H | | |
| Interest expense | | | | 1,787 |
| | | | |
| Income tax expense | | | | (7,689 | ) | | I | | |
| Net income attributable to noncontrolling interests | | | | (184 | ) | | | | |
| Change in shares outstanding | | (0.02 | ) | | | | | | |
| | | | | | | | | |
2015 basic earnings attributable to common stock | | | | $ | 63,710 |
| | | | $ | 0.47 |
|
| | | | | | | | | |
| Major factors influencing the period to period change in EPS -- Favorable/(Unfavorable) |
A | Due primarily to mild weather, CDD 3% lower than last year |
| | | | | | | | | |
B | Due principally to a 11% decrease in average wholesale prices (see page 7 for changes by customer class)
|
| | | | | | | | | |
C | Due primarily to estimated refund obligation for transmission revenues -- ($2.6M) |
| | | | | | | | | |
D | Due primarily to a decrease in quantity and average price of purchased power |
| | | | | | | | | |
E | Due primarily to: lower costs at coal-fired plants primarily due to planned outages -- $11.3M; lower costs for scheduled outage at Wolf Creek in 2014 -- $5.3M |
| | | | | | | | | |
F | Due principally to property additions |
| | | | | | | | | |
G | Due primarily to higher property tax expense that is largely offset by increased prices -- ($3.0M) |
| | | | | | | | | |
H | Due primarily to COLI benefits this year -- $13.8M; partially offset by decrease in equity AFUDC -- ($4.6M)
|
| | | | | | | | | |
I | Due primarily to higher income before income taxes |
The Notes to the Condensed Consolidated Financial Statements in the company's Quarterly Report on Form 10-Q
for the period ended June 30, 2015 should be read in conjunction with this financial information.
Page 5
Westar Energy, Inc.
YTD June 2015 vs. 2014 |
| | | | | | | | | | | | | | |
Earnings Variances | | | | | | | | |
| | | | | Change | | | | |
| | | ($ per share) | | (Dollars in Thousands) | | | | ($ per share) |
2014 basic earnings attributable to common stock | | | | $ | 122,427 |
| | | | $ | 0.95 |
|
| | | | | | | | | |
| | | Favorable/(Unfavorable) |
| | | | | | | | | |
| Retail | | | | (12,397 | ) | | A | | |
| Wholesale | | | | (31,463 | ) | | B | | |
| Transmission | | | | (5,286 | ) | | C | | |
| Other revenues | | | | (11,708 | ) | | D | | |
| Fuel and purchased power | | | | 43,057 |
| | E | | |
| SPP network transmission costs | | | | (6,673 | ) | | | | |
| Gross Margin | | | | (24,470 | ) | | | | |
| Operating and maintenance | | | | 25,810 |
| | F | | |
| Depreciation and amortization | | | | (10,353 | ) | | G | | |
| Selling, general and administrative | | | | (429 | ) | | | | |
| Taxes other than income tax | | | | (5,794 | ) | | H | | |
| Other income (expense) | | | | 4,527 |
| | I | | |
| Interest expense | | | | 3,729 |
| | | | |
| Income tax expense | | | | (406 | ) | | | | |
| Net income attributable to noncontrolling interests | | | | (351 | ) | | | | |
| Change in shares outstanding | | (0.04 | ) | | | | | | |
| | | | | | | | | |
2015 basic earnings attributable to common stock | | | | $ | 114,690 |
| | | | $ | 0.85 |
|
| | | | | | | | | |
| Major factors influencing the period to period change in EPS -- Favorable/(Unfavorable) |
A | Due primarily to mild weather; partially offset by increased average retail prices (see page 8 for changes by customer class) |
| | | | | | | | | |
B | Due to a 19% decrease in average wholesale prices (see page 8 for changes by customer class) |
| | | | | | | | | |
C | Due primarily to estimated refund obligation for transmission revenues -- ($8.6M)
|
| | | | | | | | | |
D | Due primarily to lower energy marketing margins reflecting 2014 favorable market conditions -- ($13.1M)
|
| | | | | | | | | |
E | Due primarily to a 6% decrease in MWh generated, and a 31% decrease in the average cost of purchased MWhs
|
| | | | | | | | | |
F | Due primarily to: lower costs at coal-fired plants primarily due to planned outages -- $9.7M; lower costs at Wolf Creek principally the result of scheduled outage in 2014 -- $10.9M |
| | | | | | | | | |
G | Due principally to property additions |
| | | | | | | | | |
H | Due primarily to higher property tax expense that is largely offset by increased prices -- ($5.9M)
|
| | | | | | | | | |
I | Due primarily to COLI benefits this year -- $13.8M; partially offset by decrease in equity AFUDC -- ($7.7 M)
|
| | | | | | | | | |
| | | | | | | | | |
The Notes to the Condensed Consolidated Financial Statements in the company's Quarterly Report on Form 10-Q
for the period ended June 30, 2015 should be read in conjunction with this financial information.
Page 6
Westar Energy, Inc.
Revenue, Sales and Energy Supply
|
| | | | | | | | | | | | | | |
Supplemental Data | Three Months Ended June 30, |
| 2015 | | 2014 | | Change | | % Change |
Revenues | (Dollars In Thousands) |
Residential | $ | 173,677 |
| | $ | 175,671 |
| | $ | (1,994 | ) | | (1.1 | ) |
Commercial | 175,994 |
| | 178,194 |
| | (2,200 | ) | | (1.2 | ) |
Industrial | 103,151 |
| | 106,984 |
| | (3,833 | ) | | (3.6 | ) |
Other retail | 3,503 |
| | 3,521 |
| | (18 | ) | | (0.5 | ) |
Provision for rate refunds | (11,163 | ) | | (6,554 | ) | | (4,609 | ) | | (70.3 | ) |
Total Retail Revenues | 445,162 |
| | 457,816 |
| | (12,654 | ) | | (2.8 | ) |
Tariff-based wholesale | 56,688 |
| | 63,976 |
| | (7,288 | ) | | (11.4 | ) |
Market-based wholesale | 18,140 |
| | 18,458 |
| | (318 | ) | | (1.7 | ) |
Transmission | 61,295 |
| | 63,700 |
| | (2,405 | ) | | (3.8 | ) |
Other | 8,278 |
| | 8,718 |
| | (440 | ) | | (5.0 | ) |
Total Revenues | $ | 589,563 |
| | $ | 612,668 |
| | $ | (23,105 | ) | | (3.8 | ) |
| | | | | | | |
| | | | | | | |
Electricity Sales | (Thousands of MWh) |
Residential | 1,386 |
| | 1,416 |
| | (30 | ) | | (2.1 | ) |
Commercial | 1,835 |
| | 1,842 |
| | (7 | ) | | (0.4 | ) |
Industrial | 1,408 |
| | 1,447 |
| | (39 | ) | | (2.7 | ) |
Other retail | 22 |
| | 21 |
| | 1 |
| | 4.8 |
|
Total Retail | 4,651 |
| | 4,726 |
| | (75 | ) | | (1.6 | ) |
Tariff-based wholesale | 1,097 |
| | 1,191 |
| | (94 | ) | | (7.9 | ) |
Market-based wholesale | 949 |
| | 813 |
| | 136 |
| | 16.7 |
|
Total wholesale | 2,046 |
| | 2,004 |
| | 42 |
| | 2.1 |
|
Total Electricity Sales | 6,697 |
| | 6,730 |
| | (33 | ) | | (0.5 | ) |
| | | | | | | |
| (Dollars per MWh) |
Total retail | $ | 95.71 |
| | $ | 96.87 |
| | $ | (1.16 | ) | | (1.2 | ) |
Tariff-based wholesale | $ | 51.68 |
| | $ | 53.72 |
| | $ | (2.04 | ) | | (3.8 | ) |
Market-based wholesale | $ | 19.11 |
| | $ | 22.70 |
| | $ | (3.59 | ) | | (15.8 | ) |
| | | | | | | |
| | | | | | | |
Fuel and Purchased Power | (Dollars In Thousands) |
Fuel used for generation | $ | 106,169 |
| | $ | 115,813 |
| | $ | (9,644 | ) | | (8.3 | ) |
Purchased power | 33,514 |
| | 59,071 |
| | (25,557 | ) | | (43.3 | ) |
Subtotal | 139,683 |
| | 174,884 |
| | (35,201 | ) | | (20.1 | ) |
RECA recovery and other | 397 |
| | (10,105 | ) | | 10,502 |
| | 103.9 |
|
Total fuel and purchased power expense | $ | 140,080 |
| | $ | 164,779 |
| | $ | (24,699 | ) | | (15.0 | ) |
| | | | | | | |
Electricity Supply | (Thousands of MWh) |
Generated - Gas | 237 |
| | 321 |
| | (84 | ) | | (26.2 | ) |
Coal | 4,542 |
| | 4,459 |
| | 83 |
| | 1.9 |
|
Nuclear | 756 |
| | 633 |
| | 123 |
| | 19.4 |
|
Wind | 105 |
| | 116 |
| | (11 | ) | | (9.5 | ) |
Subtotal electricity generated | 5,640 |
| | 5,529 |
| | 111 |
| | 2.0 |
|
Purchased | 1,318 |
| | 1,501 |
| | (183 | ) | | (12.2 | ) |
Total Electricity Supply | 6,958 |
| | 7,030 |
| | (72 | ) | | (1.0 | ) |
| | | | | | | |
| (Dollars per MWh) |
Average cost of fuel used for generation | $ | 18.82 |
| | $ | 20.95 |
| | $ | (2.13 | ) | | (10.2 | ) |
Average cost of purchased power | $ | 25.43 |
| | $ | 39.35 |
| | $ | (13.92 | ) | | (35.4 | ) |
Average cost of fuel and purchased power | $ | 20.08 |
| | $ | 24.88 |
| | $ | (4.80 | ) | | (19.3 | ) |
| | | | | | | |
| | | | | | | |
Degree Days | | | 2014/ | | | | |
| 2015 | | 20 yr Avg | | Change | | % Change |
Cooling | | | | | | | |
Actual compared to last year | 537 |
| | 553 |
| | (16 | ) | | (2.9 | ) |
Actual compared to 20 year average | 537 |
| | 457 |
| | 80 |
| | 17.5 |
|
Heating | | | | | | |
|
|
Actual compared to last year | 269 |
| | 392 |
| | (123 | ) | | (31.4 | ) |
Actual compared to 20 year average | 269 |
| | 385 |
| | (116 | ) | | (30.1 | ) |
The Notes to the Condensed Consolidated Financial Statements in the company's Quarterly Report on Form 10-Q
for the period ended June 30, 2015 should be read in conjunction with this financial information.
Page 7
Westar Energy, Inc.
Revenue, Sales and Energy Supply
|
| | | | | | | | | | | | | | |
Supplemental Data | Six Months Ended June 30, |
| 2015 | | 2014 | | Change | | % Change |
Revenues | (Dollars In Thousands) |
Residential | $ | 354,970 |
| | $ | 367,958 |
| | $ | (12,988 | ) | | (3.5 | ) |
Commercial | 337,300 |
| | 339,294 |
| | (1,994 | ) | | (0.6 | ) |
Industrial | 199,630 |
| | 201,480 |
| | (1,850 | ) | | (0.9 | ) |
Other retail | 7,006 |
|
| 6,982 |
| | 24 |
| | 0.3 |
|
Provision for rate refunds | (14,128 | ) | | (18,539 | ) | | 4,411 |
| | 23.8 |
|
Total Retail Revenues | 884,778 |
| | 897,175 |
| | (12,397 | ) | | (1.4 | ) |
Tariff-based wholesale | 117,023 |
| | 131,870 |
| | (14,847 | ) | | (11.3 | ) |
Market-based wholesale | 44,561 |
| | 61,177 |
| | (16,616 | ) | | (27.2 | ) |
Transmission | 119,880 |
| | 125,166 |
| | (5,286 | ) | | (4.2 | ) |
Other | 14,128 |
| | 25,836 |
| | (11,708 | ) | | (45.3 | ) |
Total Revenues | $ | 1,180,370 |
| | $ | 1,241,224 |
| | $ | (60,854 | ) | | (4.9 | ) |
| | | | | | | |
| | | | | | | |
Electricity Sales | (Thousands of MWh) |
Residential | 2,940 |
| | 3,125 |
| | (185 | ) | | (5.9 | ) |
Commercial | 3,567 |
| | 3,602 |
| | (35 | ) | | (1.0 | ) |
Industrial | 2,732 |
| | 2,786 |
| | (54 | ) | | (1.9 | ) |
Other retail | 41 |
| | 42 |
| | (1 | ) | | (2.4 | ) |
Total Retail | 9,280 |
| | 9,555 |
| | (275 | ) | | (2.9 | ) |
Tariff-based wholesale | 2,381 |
| | 2,563 |
| | (182 | ) | | (7.1 | ) |
Market-based wholesale | 2,236 |
| | 1,918 |
| | 318 |
| | 16.6 |
|
Total wholesale | 4,617 |
| | 4,481 |
| | 136 |
| | 3.0 |
|
Total Electricity Sales | 13,897 |
| | 14,036 |
| | (139 | ) | | (1.0 | ) |
| | | | | | | |
| (Dollars per MWh) |
Total retail | $ | 95.34 |
| | $ | 93.90 |
| | $ | 1.44 |
| | 1.5 |
|
Tariff-based wholesale | $ | 49.15 |
| | $ | 51.45 |
| | $ | (2.30 | ) | | (4.5 | ) |
Market-based wholesale | $ | 19.93 |
| | $ | 31.90 |
| | $ | (11.97 | ) | | (37.5 | ) |
| | | | | | | |
| | | | | | | |
Fuel and Purchased Power | (Dollars In Thousands) |
Fuel used for generation | $ | 214,418 |
| | $ | 254,463 |
| | $ | (40,045 | ) | | (15.7 | ) |
Purchased power | 79,041 |
| | 98,522 |
| | (19,481 | ) | | (19.8 | ) |
Subtotal | 293,459 |
| | 352,985 |
| | (59,526 | ) | | (16.9 | ) |
RECA recovery and other | 2,102 |
| | (14,367 | ) | | 16,469 |
| | 114.6 |
|
Total fuel and purchased power expense | $ | 295,561 |
| | $ | 338,618 |
| | $ | (43,057 | ) | | (12.7 | ) |
| | | | | | | |
Electricity Supply | (Thousands of MWh) |
Generated - Gas | 550 |
| | 625 |
| | (75 | ) | | (12.0 | ) |
Coal | 8,994 |
| | 9,640 |
| | (646 | ) | | (6.7 | ) |
Nuclear | 1,550 |
| | 1,527 |
| | 23 |
| | 1.5 |
|
Wind | 211 |
| | 229 |
| | (18 | ) | | (7.9 | ) |
Subtotal electricity generated | 11,305 |
| | 12,021 |
| | (716 | ) | | (6.0 | ) |
Purchased | 2,941 |
| | 2,546 |
| | 395 |
| | 15.5 |
|
Total Electricity Supply | 14,246 |
| | 14,567 |
| | (321 | ) | | (2.2 | ) |
| | | | | | | |
| (Dollars per MWh) |
Average cost of fuel used for generation | $ | 18.97 |
| | $ | 21.17 |
| | $ | (2.20 | ) | | (10.4 | ) |
Average cost of purchased power | $ | 26.88 |
| | $ | 38.70 |
| | $ | (11.82 | ) | | (30.5 | ) |
Average cost of fuel and purchased power | $ | 20.60 |
| | $ | 24.23 |
| | $ | (3.63 | ) | | (15.0 | ) |
| | | | | | | |
| | | | | | | |
Degree Days | | | 2014/ | | | | |
| 2015 | | 20 yr Avg | | Change | | % Change |
Cooling | | | | | | | |
Actual compared to last year | 537 |
| | 553 |
| | (16 | ) | | (2.9 | ) |
Actual compared to 20 year average | 537 |
| | 459 |
| | 78 |
| | 17.0 |
|
Heating | | | | | | | |
Actual compared to last year | 2,703 |
| | 3,196 |
| | (493 | ) | | (15.4 | ) |
Actual compared to 20 year average | 2,703 |
| | 2,814 |
| | (111 | ) | | (3.9 | ) |
The Notes to the Condensed Consolidated Financial Statements in the company's Quarterly Report on Form 10-Q
for the period ended June 30, 2015 should be read in conjunction with this financial information.
Page 8
Westar Energy, Inc.
|
| | | | | | | | | | | | | | |
Capitalization |
| | June 30, 2015 | | | | December 31, 2014 | | |
| | (Dollars in Thousands) | | |
Current maturities of long-term debt of VIEs | | $ | 28,315 |
| | | | $ | 27,933 |
| | |
Long-term debt, net | | 3,091,655 |
| | | | 3,215,539 |
| | |
Long-term debt of variable interest entities, net | | 138,173 |
| | | | 166,565 |
| | |
Total long-term debt | | 3,258,143 |
| | 47.7 | % | | 3,410,037 |
| | 50.8 | % |
Common equity | | 3,574,374 |
| | 52.2 | % | | 3,294,856 |
| | 49.1 | % |
Noncontrolling interests | | 10,090 |
| | 0.1 | % | | 6,451 |
| | 0.1 | % |
Total capitalization | | $ | 6,842,607 |
| | 100.0 | % | | $ | 6,711,344 |
| | 100.0 | % |
| | | | | | | | |
GAAP Book value per share | | $ | 25.32 |
| | | | $ | 25.02 |
| |
|
|
Period end shares outstanding (in thousands) | | 141,179 |
| | | | 131,687 |
| | |
| | | | | | | | |
Outstanding Long-Term Debt |
| | | | | | | | |
| CUSIP | June 30, 2015 | | | | December 31, 2014 | | |
Westar Energy: | | (Dollars in Thousands) | | |
First Mortgage Bond series: | | | | | | | | |
5.15% Series due January 2017 | 95709TAB6 | 125,000 |
| | | | 125,000 |
| | |
8.625% Series due December 2018 | 95709TAG5 | 300,000 |
| | | | 300,000 |
| | |
5.10% Series due July 2020 | 95709TAD2 | 250,000 |
| | | | 250,000 |
| | |
5.95% Series due January 2035 | 95709TAC4 | — |
| | | | 125,000 |
| | |
5.875% Series due July 2036 | 95709TAE0 | 150,000 |
| | | | 150,000 |
| | |
4.125% Series due March 2042 | 95709TAH3 | 550,000 |
| | | | 550,000 |
| | |
4.10% Series due April 2043 | 95709TAJ9 | 430,000 |
| | | | 430,000 |
| | |
4.625% Series due September 2043 | 95709TAK6 | 250,000 |
| | | | 250,000 |
| | |
| | 2,055,000 |
| | | | 2,180,000 |
| | |
Pollution control bond series: | | | | | | | | |
Variable series due April 2032 (Wamego) | 933623BN9 | 30,500 |
| | | | 30,500 |
| | |
Variable series due April 2032 (St Marys) | 792609AF6 | 45,000 |
| | | | 45,000 |
| | |
| | 75,500 |
| | | | 75,500 |
| | |
Total Westar Energy | | 2,130,500 |
| | | | 2,255,500 |
| | |
| | | | | | | | |
KGE | | | | | | | | |
First mortgage bond series: | | | | | | | | |
6.70%Series due June 2019 | 485260BL6 | 300,000 |
| | | | 300,000 |
| | |
6.15% Series due May 2023 | 485260B@1 | 50,000 |
| | | | 50,000 |
| | |
6.53% Series due December 2037 | 485260BJ1 | 175,000 |
| | | | 175,000 |
| | |
6.64%Series due May 2038 | 485260B#9 | 100,000 |
| | | | 100,000 |
| | |
4.3% Series due July 2044 | 485260BM4 | 250,000 |
| | | | 250,000 |
| | |
| | 875,000 |
| | | | 875,000 |
| | |
Pollution control bond series: | | | | | | | | |
Variable rate series due April 2027 (LaCygne) | 502828AJ5 | 21,940 |
| | | | 21,940 |
| | |
4.85% Series due June 2031 | 121825CB7 | 50,000 |
| | | | 50,000 |
| | |
Variable rate series due April 2032 (St Marys) | 792609AE9 | 14,500 |
| | | | 14,500 |
| | |
Variable rate series due April 2032 (Wamego) | 933623BM1 | 10,000 |
| | | | 10,000 |
| | |
| | 96,440 |
| | |
| 96,440 |
| | |
Total KGE | | 971,440 |
| | | | 971,440 |
| | |
| | | | | | | | |
Total long-term debt | | 3,101,940 |
| | | | 3,226,940 |
| | |
Unamortized debt discount | | (10,285 | ) | | | | (11,401 | ) | | |
Total long-term debt, net | | $ | 3,091,655 |
| | | | $ | 3,215,539 |
| | |
The Notes to the Condensed Consolidated Financial Statements in the company's Quarterly Report on Form 10-Q
for the period ended June 30, 2015 should be read in conjunction with this financial information.
Page 9
Westar Energy, Inc.
GAAP to Non-GAAP Reconciliation
Fuel and purchased power costs fluctuate with electricity sales and unit costs. As permitted by regulators, prices are adjusted to reflect changes in the costs of fuel and purchased power. Fuel and purchased power costs for wholesale customers are recovered at prevailing market prices or based on a predetermined formula with a price adjustment approved by FERC. As a result, changes in fuel and purchased power costs are offset in revenues with minimal impact on net income. For this reason, Westar management believes that gross margin is useful for understanding and analyzing changes in operating performance from one period to the next. Gross margin is calculated as total revenues, including transmission revenues, less the sum of fuel and purchased power costs and amounts billed by the SPP for network transmission costs (SPP NITS). Accordingly, gross margin reflects transmission revenues and costs on a net basis.
The calculations of gross margin for the three and six months ended June 30, 2015 and 2014 are shown in the table below. The table also includes a reconciliation of gross margin to income from operations for both periods. Income from operations is the GAAP financial measure most directly comparable to gross margin.
|
| | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended June 30, | | Six Months Ended June 30, |
| 2015 | | 2014 | | Change | | 2015 | | 2014 | | Change |
| (Dollars in Thousands) |
Revenues | $ | 589,563 |
| | $ | 612,668 |
|
| $ | (23,105 | ) |
| $ | 1,180,370 |
|
| $ | 1,241,224 |
|
| $ | (60,854 | ) |
Less: Fuel and purchased power expense | 140,080 |
| | 164,779 |
| | (24,699 | ) | | 295,561 |
| | 338,618 |
| | (43,057 | ) |
SPP network transmission costs | 57,352 |
| | 55,533 |
| | 1,819 |
| | 114,164 |
| | 107,491 |
| | 6,673 |
|
Gross Margin | $ | 392,131 |
|
| $ | 392,356 |
|
| $ | (225 | ) |
| $ | 770,645 |
|
| $ | 795,115 |
|
| $ | (24,470 | ) |
| | | | | | | | | | | |
Gross margin | $ | 392,131 |
| | $ | 392,356 |
| | $ | (225 | ) | | $ | 770,645 |
| | $ | 795,115 |
| | $ | (24,470 | ) |
Less: Operating and maintenance expense | 82,739 |
| | 101,839 |
| | (19,100 | ) | | 167,819 |
| | 193,629 |
| | (25,810 | ) |
Depreciation and amortization expense | 76,759 |
| | 70,882 |
| | 5,877 |
| | 151,345 |
| | 140,992 |
| | 10,353 |
|
Selling, general and administrative expense | 63,663 |
| | 62,168 |
| | 1,495 |
| | 119,082 |
| | 118,653 |
| | 429 |
|
Taxes other than income tax | 37,494 |
| | 34,738 |
| | 2,756 |
| | 75,365 |
| | 69,571 |
| | 5,794 |
|
Income from operations | $ | 131,476 |
| | $ | 122,729 |
|
| $ | 8,747 |
|
| $ | 257,034 |
|
| $ | 272,270 |
|
| $ | (15,236 | ) |
| | | | | | | | | | | |
| | | | | | | | | | | |
The Notes to the Condensed Consolidated Financial Statements in the company's Quarterly Report on Form 10-Q
for the period ended June 30, 2015 should be read in conjunction with this financial information.
Page 10
Westar (NYSE:WR)
Historical Stock Chart
From Apr 2024 to May 2024
Westar (NYSE:WR)
Historical Stock Chart
From May 2023 to May 2024