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 |
Exhibit 99.2 | 2015 Second Quarter Earnings Package |
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 Number | Description of Exhibit | |
Exhibit 99.1 | Press Release dated August 4, 2015 | |
Exhibit 99.2 | 2015 Second Quarter Earnings Package |
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 | % |
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 | % | ||||||||||
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 | % | ||||||||||
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 |
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 |
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 -- ($4.6M) | |||||||||||||
I | Due primarily to higher income before income taxes |
Earnings Variances | ||||||||||||||
Change | ||||||||||||||
($ 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) | |||||||||||||
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 | ) |
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 | ) |
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 |
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 | ) | ||||||||||