Western Resources Announces Fiscal 2001 Results and Impact of

 Adoption of New Accounting Standards and 
Maintains 2002 Targets  
Business Editors  
TOPEKA, Kan.--(BUSINESS WIRE)--Feb. 18, 2002--Western Resources 
(NYSE: WR) today announced financial results for the fiscal year ended 
Dec. 31, 2001, and the amount of a charge to be recorded in the first 
quarter of 2002 as a result of the adoption of new accounting 
standards related to accounting for goodwill and intangible assets.  
Consolidated Results  
Western Resources reported a consolidated net loss of $0.31 per 
share in 2001, compared to net earnings of $1.96 per share in 2000. A 
discussion of results by business line follows.  
Westar Energy  
Westar Energy contributed operating earnings of $0.50 per share in 
2001, compared to $1.12 per share in 2000. The decrease in earnings 
resulted principally from less favorable weather, the reduction in 
retail rates ordered by the Kansas Corporation Commission in July 2001 
and a net charge of approximately $14 million ($0.20 per share) in the 
fourth quarter related to a work force reduction.  
For the year ended Dec. 31, 2001, earnings before interest and 
taxes (EBIT) and earnings before interest, taxes, depreciation and 
amortization (EBITDA) totaled $287 million and $473 million, 
respectively, before the fourth quarter charge related to a work force 
reduction. Westar Energy is expected to contribute EBIT and EBITDA of 
approximately $325 million and approximately $525 million, 
respectively, in 2002.  
Westar Industries  
Westar Industries reported a loss of $0.81 per share in 2001, 
compared to earnings of $0.84 per share in 2000.   
Monitored Services  
Monitored services reported a loss of $1.38 per Western Resources 
share in 2001, compared to a loss of $0.88 per share in 2000. The 
increased loss resulted principally from a 21 percent decrease in 
revenues from the prior year (both Protection One and Protection One 
Europe sold certain operations during the year), one-time expenses of 
$9.7 million pre-tax at Protection One in 2001 primarily related to 
efforts to consolidate and streamline operations, and reduced gains, 
$34.5 million in 2001 compared to $49.3 million in 2000, from the 
retirement of Protection One debt.  
Westar Industries currently owns approximately 86.1 million shares 
of Protection One common stock, representing 80.4 percent ownership on 
a fully diluted basis. Protection One may from time to time repurchase 
shares of its common stock in the open market or privately negotiated 
transactions. In this event, Westar Industries will sell shares to 
Protection One to maintain its proportionate ownership interest in 
Protection One.  
The investment in ONEOK contributed $0.51 per share to 2001 
earnings, compared to $0.56 per share in the prior year. ONEOK's 
earnings were adversely impacted by their exposure to Enron Corp. and 
an order from the Oklahoma Corporation Commission that denied the 
recovery of certain gas costs.  
International Generation/Guardian/Miscellaneous   
Other unregulated holdings contributed $0.06 per share to 2001 
earnings, compared to $1.16 per share in the prior year. The prior 
year earnings included gains from the sale of investments.  
Adoption of New Accounting Standards  
In 2001, the U.S. Financial Accounting Standards Board issued 
Statement of Financial Accounting Standards No. 142 (SFAS No. 142), 
"Goodwill and Other Intangible Assets" and SFAS No. 144, "Accounting 
for the Impairment or Disposal of Long-Lived Assets." Under SFAS No. 
142, effective Jan. 1, 2002, goodwill is no longer amortized as was 
required under past accounting standards and goodwill is required to 
be separately tested for impairment using a fair-value based approach 
as opposed to the undiscounted cash flow approach used under past 
accounting standards.   
In accordance with these new standards, Western Resources will 
record a net charge of approximately $654 million in the first quarter 
of 2002. Approximately $465 million of the charge is related to the 
impairment of Protection One and Protection One Europe goodwill, which 
will be reflected in the statement of income as a cumulative effect of 
a change in accounting principle. The balance, $189 million, is 
related to the impairment of Protection One customer accounts and will 
be reflected in the statement of income as an operating cost. An 
independent appraisal firm was engaged to assist in the determination 
of estimated fair values. This non-cash charge will not result in any 
violation of debt covenants and is not expected to affect liquidity.  
In 2001, Protection One and Protection One Europe charged a total 
of approximately $57 million of goodwill amortization. After January 
1, 2002, goodwill will no longer be amortized to income. However, the 
new accounting rule requires that goodwill be tested for impairment on 
an annual basis.  
Westar Energy had approximately 1,921 employees at February 1, 
2002. A net charge of approximately $24 million will be recorded in 
the first quarter of 2002 related to a voluntary separation program 
completed in January 2002.  
Western Resources (NYSE: WR) is a consumer services company with 
interests in monitored services and energy. The company has total 
assets of more than $7.5 billion, including security company holdings 
through ownership of Protection One (NYSE: POI) and Protection One 
Europe, which have more than 1.2 million security customers. Western 
Resources provides electric utility services as Westar Energy to about 
640,000 customers in Kansas. Through its ownership in ONEOK, Inc. 
(NYSE: OKE), a Tulsa-based natural gas company, Western Resources has 
a 44.7 percent interest in one of the largest natural gas distribution 
companies in the nation, serving more than 1.4 million customers.   
For more information about Western Resources and its operating 
companies, visit us on the Internet at http://www.wr.com.  
Forward-looking statements: Certain matters discussed here and 
elsewhere 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 we "believe," 
"anticipate," "expect" or words of similar meaning. Forward-looking 
statements describe our future plans, objectives, expectations or 
goals. Such statements address future events and conditions concerning 
capital expenditures, earnings, liquidity and capital resources, 
litigation, rate and other regulatory matters, possible corporate 
restructurings, mergers, acquisitions, dispositions, including the 
proposed separation of Westar Industries, Inc., from our electric 
utility businesses and the consummation of the acquisition of our 
electric operations by Public Service Company of New Mexico, 
compliance with debt covenants, changes in accounting requirements and 
other accounting matters, interest and dividends, Protection One's 
financial condition and its impact on our consolidated results, 
environmental matters, changing weather, nuclear operations, ability 
to enter new markets successfully and capitalize on growth 
opportunities in non-regulated businesses, events in foreign markets 
in which investments have been made and the overall economy of our 
service area. What happens in each case could vary materially from 
what we expect because of such things as electric utility 
deregulation; ongoing municipal, state and federal activities, such as 
the Wichita municipalization efforts; future economic conditions; 
legislative and regulatory developments; competitive markets; and 
other circumstances affecting anticipated operations, sales and costs.  

                          2001 ANNUAL REPORT 
                        WESTERN RESOURCES, INC. 
                                    Twelve Months Ended December 31, 
                                         2001                2000 
                                         ----                ---- 
1. Sales                           $ 2,186,262,000     $ 2,368,476,000  
2. Net Income                      $   (20,876,000)    $   136,481,000  
3. Earnings Available for  
    Common Stock                   $   (21,771,000)    $   135,352,000  
4. Average Common Shares  
    Outstanding                         70,650,000(a)       68,962,000 
5. Basic Earnings per Share        $         (0.31)(a) $          1.96  
6. EBITDA                          $   538,265,000     $   853,048,000  
7. Net Utility Plant (after  
    depreciation)                  $ 3,982,647,000     $ 3,933,624,000  
(a) Excludes shares held by Westar Industries. 
                          2001 ANNUAL REPORT 
                        WESTERN RESOURCES, INC. 
Year Ended                  Earnings(1)  Adj. Earnings(2)  Cash Flow(3) 
December 31,               2001   2000      2001  2000     2001   2000 
------------               ----   ----      ----  ----     ----   ---- 
Electric Operations: 
 Electric                $ 0.86 $ 1.24    $ 1.15 $ 1.53  $ 3.48 $ 3.79  
 COLI Excess/Shortfall   $(0.08)$(0.11)   $(0.08)$(0.11) $(0.08)$(0.11)  
  Total Operations       $ 0.78 $ 1.13    $ 1.07 $ 1.42  $ 3.40 $ 3.68  
 Other                   $(0.28)$(0.01)   $(0.28)$(0.01) $(0.29)$(0.01)  
  Total Electric  
   Operations            $ 0.50 $ 1.12    $ 0.79 $ 1.41  $ 3.11 $ 3.67  
Westar Industries: 
 Monitored Services      $(1.38)$(0.88)   $(0.51)$(0.13) $ 0.09 $ 0.10  
 ONEOK                   $ 0.51 $ 0.56    $ 0.51 $ 0.56  $ 0.48 $ 0.52  
 Other                   $ 0.06 $ 1.16    $ 0.35 $ 1.19  $ 0.52 $ 1.17  
 Total Westar Industries $(0.81)$ 0.84    $ 0.35 $ 1.62  $ 1.09 $ 1.79   
 Total Western Resources $(0.31)$ 1.96    $ 1.14 $ 3.03  $ 4.20 $ 5.46  
(1) Line of business reporting does not reflect intercompany 
(2) Earnings + amortization of goodwill and KGE acquisition premium. 
(3) Earnings + depreciation and amortization + ONEOK dividends + 
    Unregulated Generation Services dividends - Extraordinary Gain on 
    Retirement of Debt - Equity Loss on Subsidiaries 

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