KANSAS CITY, Mo.--(BUSINESS WIRE)--Feb. 21, 2019--
Evergy, Inc. (NYSE: EVRG) today announced full year 2018 earnings of
$536 million, or $2.50 per share, compared with earnings of $324
million, or $2.27 per share, for the full year 2017. For the fourth
quarter 2018, earnings were $19 million, or $0.07 per share, compared
with earnings of $34 million, or $0.24 per share, for the fourth quarter
of 2017.
In June 2018, Westar Energy, Inc. (Westar Energy) and Great Plains
Energy, the parent company of Kansas City Power & Light (KCP&L) and
KCP&L Greater Missouri Operations (GMO), completed their merger to
create Evergy. Evergy’s 2018 fourth quarter earnings include Westar
Energy, KCP&L and GMO earnings for the entire quarter. Comparison to
2017 earnings are based on Westar Energy’s earnings for that period.
The earnings increase in 2018 compared to 2017 was primarily due to the
inclusion of KCP&L and GMO earnings, higher Westar retail sales, driven
by favorable weather, and lower income tax expense, partially offset by
merger related costs and customer bill credits following the close of
the merger.
Evergy announced full year 2018 pro forma earnings of $714 million, or
$2.67 per share, which reflect the consolidated results of operations of
Evergy as if the merger had taken place on January 1, 2017, and exclude
non-recurring merger-related costs, compared with 2017 pro forma
earnings of $469 million, or $1.73 per share. For the fourth quarter
2018, pro forma earnings were $20 million, or $0.08 per share, compared
with a loss of $69 million, or $0.25 per share, for the fourth quarter
of 2017.
Increased sales, due primarily to favorable weather, and lower income
tax expense contributed to the year-over-year increase in pro forma
earnings.
“2018 was a successful year by all accounts,” said Terry Bassham, Evergy
president and chief executive officer. “We successfully completed each
of our regulatory proceedings, delivered on commitments made throughout
the merger process, and started to rebalance our capital structure
through the initiation of our share repurchase program. Our team’s
dedication and hard work is reflected in our 2018 financial and
operational results.”
Dividend Declaration
The Board of Directors declared a dividend of $0.475 per share payable
on March 20, 2019, on the Company’s common stock. The dividends are
payable to shareholders of record as of March 4, 2019.
Earnings Conference Call
Evergy management will host a conference call Friday, February 22 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 (888)
353-7071, conference ID 1169956. A webcast of the live conference call
will be available at www.evergyinc.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 full-year financial
information, the company's annual report on Form 10-K for the period
ended December 31, 2018 and other filings the company has made with the
Securities and Exchange Commission are available on the Company's
website at www.evergyinc.com.
About Evergy
Evergy, Inc. (NYSE: EVRG), through its operating subsidiaries, KCP&L and
Westar Energy provides clean, safe and reliable energy to 1.6 million
customers in Kansas and Missouri. The 2018 combination of KCP&L and
Westar Energy to form Evergy created a leading energy company that
provides value to shareholders and a stronger company for customers.
Evergy’s mission is to empower a better future. Today, half the power
supplied to homes and businesses by Evergy comes from emission-free
sources, creating more reliable energy with less impact to the
environment. We will continue to innovate and adopt new technologies
that give our customers better ways to manage their energy use.
For more information about Evergy, visit us at www.evergyinc.com.
Unaudited Pro Forma Financial Information
The unaudited pro forma financial information included in this press
release has been presented for informational purposes only and is not
necessarily indicative of Evergy's consolidated results of operations
that would have been achieved or the future consolidated results of
operations of Evergy. The unaudited pro forma financial information
should be read in conjunction with Evergy’s annual report on Form 10-K
for the period ended December 31, 2018.
Forward Looking Statements
Statements made in this press release that are not based on historical
facts are forward-looking, may involve risks and uncertainties, and are
intended to be as of the date when made. Forward-looking statements
include, but are not limited to, statements relating to the expected
financial and operational benefits of the merger of Great Plains Energy
Incorporated (Great Plains Energy) and Westar Energy that resulted in
the creation of Evergy (including cost savings, operational efficiencies
and the impact of the merger on earnings per share), cost estimates of
capital projects, dividend growth, share repurchases, balance sheet and
credit ratings, rebates to customers, the outcome of regulatory and
legal proceedings, employee issues and other matters affecting future
operations.
In connection with the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995, Evergy, Westar Energy and KCP&L are
providing a number of important factors that could cause actual results
to differ materially from the provided forward-looking information.
These important factors include: future economic conditions and any
related impact on sales, prices and costs; prices and availability of
electricity in wholesale markets; market perception of the energy
industry, Evergy, Westar Energy and KCP&L changes in business strategy
or operations; the impact of unpredictable federal, state and local
political, legislative, judicial and regulatory actions or developments,
including, deregulation, re-regulation and restructuring of the electric
utility industry; decisions of regulators regarding rates that Westar
Energy and KCP&L (or other regulated subsidiaries of Evergy) can charge
for electricity; changes in applicable laws, regulations, rules,
principles or practices, or the interpretations thereof, governing tax,
accounting and environmental matters, including air and water quality;
quality and waste management and disposal; changes in the energy trading
markets in which Westar Energy and KCP&L participate, including
retroactive repricing of transactions by regional transmission
organizations and independent system operators; the impact of climate
change, including reduced demand for coal-based energy because of actual
or perceived climate impacts and the development of alternate energy
sources; financial market conditions and performance, including changes
in interest rates and credit spreads and in availability and cost of
capital and the effects on derivatives and hedges, nuclear
decommissioning trust and pension plan assets and costs; impairments of
long-lived assets or goodwill; credit ratings; inflation rates;
effectiveness of risk management policies and procedures and the ability
of counterparties to satisfy their contractual commitments; impact of
terrorist acts, including cyber terrorism; ability to carry out
marketing and sales plans; weather conditions, including weather-related
damage and the impact on sales, prices and costs; cost, availability,
quality and timely provision of equipment, supplies, labor and fuel; the
inherent uncertainties in estimating the effects of weather, economic
conditions, climate change and other factors on customer consumption and
financial results; ability to achieve generation goals and the
occurrence and duration of planned and unplanned generation outages;
delays in the anticipated in-service dates and cost increases of
generation, transmission, distribution or other projects; Evergy's
ability to successfully manage its transmission and distribution
development plans and its transmission joint ventures; the inherent
risks associated with the ownership and operation of a nuclear facility,
including environmental, health, safety, regulatory and financial risks;
workforce risks, including increased costs of retirement, health care
and other benefits; the possibility that the expected value creation
from the merger will not be realized, or will not be realized within the
expected time period; difficulties related to the integration of the two
companies; disruption from the merger making it more difficult to
maintain relationships with customers, employees, regulators or
suppliers; the diversion of management time; and other risks and
uncertainties.
This list of factors is not all-inclusive because it is not possible to
predict all factors. Additional risks and uncertainties are discussed
from time to time in quarterly reports on Form 10-Q and annual reports
on Form 10-K filed by Evergy, KCP&L and Westar Energy with the SEC. Each
forward-looking statement speaks only as of the date of the particular
statement. Evergy, KCP&L and Westar Energy undertake no obligation to
publicly update or revise any forward-looking statement, whether as a
result of new information, future events or otherwise.
View source version on businesswire.com: https://www.businesswire.com/news/home/20190221005700/en/
Source: Evergy, Inc.
Investor Contact:
Cody VandeVelde
Director, Investor
Relations
Phone: 785-575-8227
Cody.VandeVelde@evergyinc.com
Media
Contact:
Gina Penzig
Manager, Media Relations
Phone:
785-575-8089
Gina.Penzig@westarenergy.com
Media
line: 888-613-0003
