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) May 9, 2007
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:
| ¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| ¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
WESTAR ENERGY, INC.
Section 2. Financial Information
Item 2.02. Results of Operations and Financial Condition.
On May 9, 2007, we issued a press release announcing our earnings for the quarter ended March 31, 2007. A copy of our May 9, 2007 press release is attached hereto as exhibit 99.1 and is incorporated herein by this reference.
Section 9. Financial Statements and Exhibits
Item 9.01. Financial Statements and Exhibits.
Exhibit 99.1 Press Release dated May 9, 2007
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 thereunto duly authorized.
| Westar Energy, Inc. | ||||
| Date: May 9, 2007 | 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 May 9, 2007 |
EXHIBIT 99.1
 |
Media contact: Karla Olsen, director, corporate communications Phone: 888.613.0003 FAX: 316.261.6769 karla.olsen@WestarEnergy.com | |
| Investor contact: Bruce Burns, director, investor relations Phone: 785.575.8227 bruce. burns@WestarEnergy.com |
WESTAR ENERGY ANNOUNCES FIRST QUARTER 2007 RESULTS
TOPEKA, Kan., May 9, 2007 — Westar Energy, Inc. (NYSE:WR) today announced earnings of $29.9 million, or $0.34 per share, for the first quarter 2007 compared with earnings of $26.6 million, or $0.30 per share, for the first quarter 2006. The increase in earnings for the quarter was the result of increased sales that more than offset higher operating expenses.
The company reported revenues of $370.3 million for the first quarter 2007, which was 8.9% higher when compared with $340.0 million for the same period in 2006. Retail sales for the first quarter 2007 increased $12.8 million compared with the same period of 2006. The increase was largely the result of cooler weather and increased recovery in rates of fuel and purchased power costs for the first quarter 2007. Wholesale sales increased $29.8 million for the first quarter of 2007 compared with the same period in 2006, due primarily to increased market-based wholesale sales that resulted from the company’s coal-fired generating facilities operating without restriction for coal conservation as was the case last year. Energy marketing decreased $13.7 million for the first quarter 2007 compared with the same period of 2006 due primarily to a decrease in valuations for contracts receiving mark-to-market treatment and less favorable market conditions, generally.
Westar Energy announces first quarter 2007 results, page 2 of 4
Total operating expenses for the first quarter of 2007 increased $12.0 million compared with the same period in 2006, primarily caused by an $11.4 million increase in fuel and purchased power expense as a result of increased production to satisfy greater customer demand.
Other income and expense for the first quarter 2007 was $2.3 million of expense compared with income of $7.3 million for the same period in 2006. The change between periods is due to $9.6 million, or $0.11 per share, of income from corporate-owned life insurance in first quarter 2006, compared with no such income in first quarter 2007. Interest expense for the first quarter 2007 was $25.4 million compared with $23.4 million for the same period in 2006, reflecting increased short-term borrowings and the reclassification this year to interest expense of interest recorded on liabilities associated with uncertainties in income taxes.
2007 Earnings Guidance
Westar Energy affirmed its previously announced 2007 full-year earnings guidance of $1.63 to $1.78 per share. Westar Energy’s 2007 Earnings Drivers, dated March 1, 2007, available on the company’s web site, provide the company’s earnings guidance and the earnings drivers and adjustments used in arriving at 2007 full-year earnings guidance.
Additional Earnings Information and Conference Call
In conjunction with the earnings release, Westar Energy has posted on its Web site a package of more detailed financial information related to its first quarter performance. The materials are available under Investor Presentations in the Investor Relations section of the company Web site.
Westar Energy’s conference call with the investment community will be at 10 a.m. Eastern Time (9 a.m. Central) on May 9, 2007. Jim Haines, chief executive officer, and Mark Ruelle, executive vice president and chief financial officer, will host the call. Investors, media
Westar Energy announces first quarter 2007 results, page 3 of 4
and the public may listen to the conference call by dialing 800-295-3991, participant code 73353590. Listeners may access a live webcast of the conference call via the company’s Web site, www.WestarEnergy.com. A replay of the call will be available on the Web site. Members of the news media may direct follow-up questions to Karla Olsen.
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Westar Energy, Inc. (NYSE: WR) is the largest electric utility in Kansas, providing electric service to about 669,000 customers in the state. Westar Energy has about 6,000 megawatts of electric generation capacity and operates and coordinates approximately 33,000 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. Therefore, actual results could vary materially from what we expect. Please review our Quarterly Report on Form 10-Q for the period ended March 31, 2007 for important risk factors that could cause results to differ materially from those in any such forward-looking statements. 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 except as required by applicable laws or regulations.
Westar Energy announces first quarter 2007 results, page 4 of 4
| Attachment 1 |
WESTAR ENERGY, INC.
CONSOLIDATED INCOME STATEMENT
(UNAUDITED)
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
| Three Months Ended March 31 |
|||||||||||
| 2007 | 2006 | Change | |||||||||
| Sales |
$ | 370,306 | $ | 340,023 | $ | 30,283 | |||||
| Fuel and purchased power |
103,409 | 92,000 | 11,409 | ||||||||
| Operating and maintenance |
107,588 | 110,503 | (2,915 | ) | |||||||
| Depreciation and amortization |
45,719 | 47,572 | (1,853 | ) | |||||||
| Selling, general and administrative |
43,645 | 38,265 | 5,380 | ||||||||
| Total Operating Expenses |
300,361 | 288,340 | 12,021 | ||||||||
| Income from Operations |
69,945 | 51,683 | 18,262 | ||||||||
| Other income |
(2,311 | ) | 7,302 | (9,613 | ) | ||||||
| Interest expense |
25,455 | 23,398 | 2,047 | ||||||||
| Income tax expense |
12,014 | 8,749 | 3,265 | ||||||||
| Net Income |
30,175 | 26,838 | 3,337 | ||||||||
| Preferred dividends |
242 | 242 | — | ||||||||
| Earnings Available for Common Stock |
$ | 29,933 | $ | 26,596 | $ | 3,337 | |||||
| Basic Earnings Per Share |
$ | 0.34 | $ | 0.30 | $ | 0.04 | |||||
| Average equivalent common shares outstanding |
87,947 | 87,279 | |||||||||