SOURCE: Westar Energy, Inc.

Westar Energy, Inc.

August 04, 2011 17:05 ET

Westar Energy Announces Second Quarter Results

TOPEKA, KS--(Marketwire - Aug 4, 2011) - Westar Energy, Inc. (NYSE: WR) today announced earnings of $44 million, or $0.38 per share, for the second quarter 2011 compared with earnings of $53 million, or $0.47 per share, for the second quarter 2010. Earnings for the six months ended June 30, 2011 were $75 million, or $0.66 per share, compared with $83 million, or $0.75 per share, for the same period in 2010.

Per share results for both periods in 2011 reflect additional shares outstanding as a result of the company having issued shares to fund capital investments.

Net income for the second quarter and six months ended June 30, 2011 decreased by $9 million and $8 million, respectively, compared with the same periods for 2010. The decrease for both periods reflects various increases in operating expenses that more than offset higher retail revenues due primarily to higher prices. The increase in operating expenses include higher transmission network costs, higher expenses for regulatory compliance at the Wolf Creek generating station, increased maintenance for tree trimming on the electrical distribution system, increased depreciation expense and higher legal fees.

Earnings Guidance
The company affirmed its earnings guidance for 2011 of $1.65 to $1.80 per share. The affirmation of 2011 earnings guidance excludes an estimated $0.11 per share benefit from the reversal to be recorded in the third quarter of accrued liabilities related to the settlement of claims involving a former executive. The company has 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.

Conference Call and Additional Company Information
Westar Energy management will host a conference call Friday, 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 800-920-8624, participant code 66988949. 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 2011 financial information, the company's quarterly report on Form 10-Q for the period ended June 30, 2011 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 the largest electric utility in Kansas, providing electric service to about 687,000 customers in the state. Westar Energy has about 6,800 megawatts of electric generation capacity and operates and coordinates more than 34,000 miles of electric distribution and transmission lines.

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, 2010 (a) under the heading, "Forward-Looking Statements," (b) in ITEM 1. Business, (c) in ITEM 1A. Risk Factors, (d) in ITEM 2. 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, 2011 (a) in ITEM 7. Management's Discussion and Analysis of Financial Condition and Results of Operations and (b) in Part 1, Financial Information, ITEM 1. Financial Statements: Notes 8 and 9; 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.

Attachment 1
WESTAR ENERGY, INC.
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
Three Months Ended Six Months Ended
June 30, June 30,
2011 2010 Change 2011 2010 Change
Retail $ 399,479 $ 370,692 $ 28,787 $ 757,396 $ 703,936 $ 53,460
Wholesale 77,515 78,999 (1,484 ) 156,109 161,747 (5,638 )
Transmission 39,160 36,314 2,846 76,336 72,943 3,393
Other 8,738 9,176 (438 ) 16,770 16,385 385
Total Revenues 524,892 $ 495,181 29,711 1,006,611 955,011 51,600
Fuel and purchased power 152,973 137,116 15,857 287,157 270,916 16,241
Operating and maintenance 137,254 121,810 15,444 274,606 242,983 31,623
Depreciation and amortization 71,089 67,107 3,982 141,348 134,037 7,311
Selling, general and administrative 55,970 48,154 7,816 104,734 94,080 10,654
Total Operating Expenses 417,286 374,187 43,099 807,845 742,016 65,829
Income from Operations 107,606 120,994 (13,388 ) 198,766 212,995 (14,229 )
Other income (expense) 818 (2,017 ) 2,835 (334 ) (3,900 ) 3,566
Interest expense 43,300 43,289 11 86,838 87,905 (1,067 )
Income tax expense 19,599 21,158 (1,559 ) 33,112 34,979 (1,867 )
Net Income 45,525 54,530 (9,005 ) 78,482 86,211 (7,729 )
Less: Net income attributable to noncontrolling interests 1,396 1,219 177 2,770 2,220 550
Net income attributable to Westar Energy 44,129 53,311 (9,182 ) 75,712 83,991 (8,279 )
Preferred dividends 242 242 -- 485 485 --
Net Income Attributable to Common Stock $ 43,887 $ 53,069 $ (9,182 ) $ 75,227 $ 83,506 $ (8,279 )
Earnings per common share, basic $ 0.38 $ 0.47 $ (0.09 ) $ 0.66 $ 0.75 $ (0.09 )
Average equivalent common shares outstanding 114,908 111,523 3,385 114,397 111,225 3,172
Dividend declared per share $ 0.32 $ 0.31 $ 0.01 $ 0.64 $ 0.62 $ 0.02