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Westar Energy announces 2nd quarter 2017 results

TOPEKA, Kan., Aug. 08, 2017 (GLOBE NEWSWIRE) -- Westar Energy, Inc. (NYSE:WR) today announced earnings of $72 million, or $0.50 per share, for the second quarter 2017 compared with earnings of $72 million, or $0.51 per share, for the second quarter 2016. Earnings for the six months ended June 30, 2017 were $132 million, or $0.92 per share, compared with $138 million, or $0.97 per share, for the same period in 2016.

Lower earnings per share for the second quarter were driven by lower residential and commercial sales primarily due to milder weather this year compared to last year. The lower sales were partially offset by a decrease in merger-related expenses and lower employee benefit costs.

Lower earnings per share for the six months ended June 30, 2017 were also driven by the effect of mild weather this year when compared to last year resulting in lower residential and commercial sales. Also contributing to lower net income was a decrease in corporate-owned life insurance income. Partially offsetting lower sales was a decrease in merger-related expenses.

Conference Call and Additional Company Information

Westar Energy management will host a conference call Wednesday, Aug. 9 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 (844) 646-4526, conference ID 59525914. 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, 2017 and other filings the company has made with the Securities and Exchange Commission are available on the company's website at www.WestarEnergy.com.

As Kansas’ largest electric utility, Westar Energy, Inc. (NYSE:WR) provides customers the safe, reliable electricity needed to power their businesses and homes. We have 7,800 MW of electric generation capacity that includes renewables and traditional power sources with half the electricity supplied to our more than 700,000 customers from emissions free sources: nuclear, wind and solar, with a third coming from renewables. We are a leader in electric transmission in Kansas coordinating a network of lines and substations that supports one of the largest consolidations of wind energy in the nation. 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, 2016 (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 3, 14 and 16; (2) those discussed in the company's Quarterly Reports on Form 10-Q filed on May 9, 2017 and Aug. 8, 2017, (a) under the heading "Forward-Looking Statements." (b) in ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations, (c) in Part I, Financial Information, ITEM 1. Financial Statements: Notes 3, 11, 12 (in the Form 10-Q filed on May 9, 2017), and 13 (in the Form 10-Q filed on Aug. 8, 2017), and (d) ITEM 1A. Risk Factors; 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.


Westar Energy, Inc.
Condensed Consolidated Statements of Income
(Unaudited)
Three Months Ended June 30, Six Months Ended June 30,
2017 2016 Change % Change 2017 2016 Change % Change
(Dollars In Thousands, Except Per Share Amounts)
REVENUES:
Residential $188,142 $202,838 $(14,696) (7.2) $364,310 $382,128 $(17,818) (4.7)
Commercial 182,110 188,197 (6,087) (3.2) 337,817 353,870 (16,053) (4.5)
Industrial 107,990 108,004 (14) 206,506 208,702 (2,196) (1.1)
Other retail (10,092) (16,502) 6,410 38.8 (22,440) (30,884) 8,444 27.3
Total Retail Revenues 468,150 482,537 (14,387) (3.0) 886,193 913,816 (27,623) (3.0)
Wholesale 63,044 66,687 (3,643) (5.5) 140,411 134,099 6,312 4.7
Transmission 70,152 66,620 3,532 5.3 139,593 130,535 9,058 6.9
Other 7,975 5,604 2,371 42.3 15,698 12,448 3,250 26.1
Total Revenues 609,321 621,448 (12,127) (2.0) 1,181,895 1,190,898 (9,003) (0.8)
OPERATING EXPENSES:
Fuel and purchased power 111,790 118,630 (6,840) (5.8) 225,645 218,688 6,957 3.2
SPP network transmission costs 61,763 55,227 6,536 11.8 122,437 115,987 6,450 5.6
Operating and maintenance 87,158 85,619 1,539 1.8 168,356 163,377 4,979 3.0
Depreciation and amortization 94,029 84,226 9,803 11.6 182,655 167,866 14,789 8.8
Selling, general and administrative 57,579 75,724 (18,145) (24.0) 116,735 132,179 (15,444) (11.7)
Taxes other than income tax 41,890 48,407 (6,517) (13.5) 84,606 97,375 (12,769) (13.1)
Total Operating Expenses 454,209 467,833 (13,624) (2.9) 900,434 895,472 4,962 0.6
INCOME FROM OPERATIONS 155,112 153,615 1,497 1.0 281,461 295,426 (13,965) (4.7)
OTHER INCOME (EXPENSE):
Investment earnings 2,636 2,280 356 15.6 5,790 4,296 1,494 34.8
Other income 523 3,382 (2,859) (84.5) 1,823 12,860 (11,037) (85.8)
Other expense (2,647) (2,908) 261 9.0 (7,963) (8,451) 488 5.8
Total Other Income (Expense) 512 2,754 (2,242) (81.4) (350) 8,705 (9,055) (104.0)
Interest expense 43,679 39,683 3,996 10.1 84,774 80,114 4,660 5.8
INCOME BEFORE INCOME TAXES 111,945 116,686 (4,741) (4.1) 196,337 224,017 (27,680) (12.4)
Income tax expense 35,906 40,542 (4,636) (11.4) 56,816 79,165 (22,349) (28.2)
NET INCOME 76,039 76,144 (105) (0.1) 139,521 144,852 (5,331) (3.7)
Less: Net income attributable to noncontrolling interests 3,974 3,804 170 4.5 7,795 6,927 868 12.5
NET INCOME ATTRIBUTABLE TO WESTAR ENERGY, INC.$72,065 $72,340 $(275) (0.4) $131,726 $137,925 $(6,199) (4.5)
BASIC AND DILUTED EARNINGS PER AVERAGE COMMON SHARE OUTSTANDING ATTRIBUTABLE TO WESTAR ENERGY, INC. (See 10-Q Note 2):
Basic earnings per common share $0.50 $0.51 $(0.01) (2.0) $0.92 $0.97 $(0.05) (5.2)
Diluted earnings per common share $0.50 $0.51 $(0.01) (2.0) $0.92 $0.97 $(0.05) (5.2)
AVERAGE EQUIVALENT COMMON SHARES OUTSTANDING (in thousands):
Basic 142,466 142,034 432 0.3 142,451 142,013 438 0.3
Diluted 142,596 142,497 99 0.1 142,579 142,361 218 0.2
DIVIDENDS DECLARED PER COMMON SHARE $0.40 $0.38 $0.02 5.3 $0.80 $0.76 $0.04 5.3
Effective income tax rate 32% 35% 29% 35%


Media Contact: Gina Penzig Media Relations Manager Phone: 785-575-8089 Gina.Penzig@westarenergy.com Media line: 888-613-0003 Investor Contact: Cody VandeVelde Director, Investor Relations Phone: 785-575-8227 Cody.VandeVelde@westarenergy.com

Source:Westar Energy