Westar Energy, Inc. : Westar Energy, Inc.: Westar Energy Announces 2012 Results

   Westar Energy, Inc. : Westar Energy, Inc.: Westar Energy Announces 2012
                                   Results

                     WESTAR ENERGY ANNOUNCES 2012 RESULTS

                  Board declares 34 cent quarterly dividend.

TOPEKA, Kan., Feb. 28, 2013 - Westar Energy, Inc. (NYSE:WR) today announced
earnings of
$274 million, or $2.15 per share, for 2012 compared with earnings of $229
million, or $1.95per share, for 2011. Earnings for 2011 included the benefits
of reversing previously recorded accruals as a result of legal settlements and
a gain on the sale of a non-utility investment. Earnings were $46 million, or
$0.36 per share, for the fourth quarter 2012 compared with earnings of
$19million, or $0.16 per share, for the fourth quarter 2011.
Following are reconciliations of GAAP to ongoing (non-GAAP) net income and
earnings per share:

                          Three Months Ended          Twelve Months Ended
                               Dec. 31,                     Dec. 31,
                        2012     2011    Change     2012      2011     Change
                               (In millions, except per share amounts)
Net income
attributable to common
stock.....             $ 45.6   $ 19.3   $ 26.3   $ 273.5   $ 229.3   $ 44.2
Less adjustments for:
Reversal of accruals
related to legal
settlements (a).            -        -        -         -       8.9     (8.9 )
Gain on sale of
non-utility
investment......            -        -        -         -       7.2     (7.2 )
Ongoing (non-GAAP) net
income.........        $ 45.6   $ 19.3   $ 26.3   $ 273.5   $ 213.2   $ 60.3
Basic earnings per
share.............     $ 0.36   $ 0.16   $ 0.20   $  2.15   $  1.95   $ 0.20
Less adjustment for:
Reversal of accruals
related to legal
settlements (a).            -        -        -         -      0.08    (0.08 )
Gain on sale of
non-utility
investment.......           -        -        -         -      0.06    (0.06 )
Ongoing (non-GAAP)
earnings per
share........          $ 0.36   $ 0.16   $ 0.20   $  2.15   $  1.81   $ 0.34
(a) Adjusted for income taxes and legal expenses related to legal settlement

The primary driver for the $26 million increase in fourth quarter ongoing net
income was higher retail revenues. The primary drivers for the $60 million
increase in full year 2012 ongoing net income were higher retail revenues,
reduced depreciation expense and recording $17million in corporate-owned life
insurance benefits. These items were partially offset by increases in
operating costs due in part to implementing a rate order in April. Per share
results for both periods in 2012 reflect additional shares outstanding as a
result of the company having issued shares to fund capital investments.
Earnings Guidance
The company issued earnings guidance for 2013 of $2.00 to $2.15 per share and
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.
Dividend Declaration
    The Board of Directors today declared a quarterly dividend of 34 cents
per share payable Apr. 1, 2013 on the company's common stock payable to
shareholders of record as of Mar. 11, 2013. The new dividend reflects a 3
percent increase over the company's previous quarterly dividend of 33 cents
per share, and results in an indicated annual dividend of $1.36 per share.
Conference Call and Additional Company Information
Westar Energy management will host a conference call Friday, Mar. 1 with the
investment community at 10 a.m. ET (9 a.m. CT). Investors, media and the
public may listen to the conference call by dialing 866-730-5762, participant
code 45237361. 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 Erin La Row with any follow-up questions.
This earnings announcement, a package of detailed fourth quarter and year-end
2012 financial information, the company's annual report on Form 10-K for the
period ended Dec.31, 2012 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 Kansas' largest electric utility. For more
than a century, we have provided Kansans the safe, reliable electricity needed
to power their businesses and homes. Every day our team of professionals takes
on projects to generate and deliver electricity, protect the environment and
provide excellent service to our nearly 700,000 customers. Westar has 7,200 MW
of electric generation capacity fueled by coal, uranium, natural gas, wind and
landfill gas. We are also a leader in electric transmission in Kansas. Our
innovative customer service programs include mobile-enabled customer care, a
smart meter pilot project and paving the way for electric vehicle adoption.
Our employees live, volunteer and work in the communities we serve.
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, 2012 (a)
under the heading, "Forward-Looking Statements," (b) in ITEM 1. Business, (c)
in ITEM 1A. Risk Factors, (d) in ITEM 7. 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; and (2) 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.

                             Westar Energy, Inc.
                      Consolidated Statements of Income
                                 (Unaudited)

                                   Three Months Ended                            Twelve Months Ended
                                        Dec. 31,                                       Dec. 31,
                                                                                                             %
                        2012         2011       Change     %Change     2012         2011        Change    Change
                                               (InThousands,ExceptPerShareAmounts)
REVENUES:
Residential......... $ 148,494    $ 136,604    $ 11,890       8.7    $ 714,562    $ 693,388    $ 21,174     3.1
Commercial........     146,839      134,175      12,664       9.4      640,654      604,626      36,028     6.0
Industrial.........     90,873       79,379      11,494      14.5      368,909      347,881      21,028     6.0
Other
retail.........         (6,970 )       (205 )    (6,765 )     nm        (5,845 )     (8,964 )     3,119     34.8
Total Retail
Revenues....           379,236      349,953      29,283       8.4    1,718,280    1,636,931      81,349     5.0
Wholesale.........      87,387       89,752      (2,365 )    (2.6)     316,353      346,948     (30,595 )  (8.8)
Transmission........    49,317       39,158      10,159      25.9      193,797      154,569      39,228     25.4
Other..........          7,832        7,365         467       6.3       33,040       32,543         497     1.5
Total Revenues.....    523,772      486,228      37,544       7.7    2,261,470    2,170,991      90,479     4.2
OPERATING EXPENSES:
Fuel and purchased
power....              137,150      144,096      (6,946 )    (4.8)     589,990      630,793     (40,803 )  (6.5)
Operating and
maintenance...         151,356      145,323       6,033       4.2      612,871      557,752      55,119     9.9
Depreciation and
amortization...         65,823       71,771      (5,948 )    (8.3)     270,464      285,322     (14,858 )  (5.2)
Selling, general and
administrative         61,668       52,463       9,205      17.5      226,012      184,695      41,317     22.4
Total Operating
Expenses..             415,997      413,653       2,344       0.6    1,699,337    1,658,562      40,775     2.5
INCOME FROM
OPERATIONS....         107,775       72,575      35,200      48.5      562,133      512,429      49,704     9.7
OTHER INCOME
(EXPENSE):
Investment
earnings.....              955        3,046      (2,091 )   (68.6)       7,411        9,301      (1,890 )  (20.3)
Other income........     8,136          441       7,695       nm        35,378        8,652      26,726    308.9
Other expense.......    (5,740 )     (4,445 )    (1,295 )   (29.1)     (19,987 )    (18,398 )    (1,589 )  (8.6)
Total Other Income
(Expense)               3,351         (958 )     4,309      449.8      22,802         (445 )    23,247      nm
Interest
expense.........        44,451       41,779       2,672       6.4      176,337      172,460       3,877     2.2
INCOME BEFORE INCOME
TAXES.                  66,675       29,838      36,837      123.5     408,598      339,524      69,074     20.3
Income tax
expense.........        18,980        8,532      10,448      122.5     126,136      103,344      22,792     22.1
NET INCOME.........     47,695       21,306      26,389      123.9     282,462      236,180      46,282     19.6
Less: Net income
attributable to
noncontrolling
interests...             2,088        1,729         359      20.8        7,316        5,941       1,375     23.1
NET INCOME
ATTRIBUTABLE TO
WESTAR ENERGY,
INC.....                45,607       19,577      26,030      133.0     275,146      230,239      44,907     19.5
Preferred
dividends.......             -          242        (242 )   (100.0)      1,616          970         646     66.6
NET INCOME
ATTRIBUTABLE TO
COMMON STOCK......   $  45,607    $  19,335    $ 26,272      135.9   $ 273,530    $ 229,269    $ 44,261     19.3
Earnings per common
share, basic...      $    0.36    $    0.16    $   0.20      125.0   $    2.15    $    1.95    $   0.20     10.3
Average equivalent
common shares
outstanding.........   126,929      121,880       5,049       4.1      126,712      116,891       9,821     8.4
DIVIDENDS DECLARED
PER COMMON
SHARE......          $    0.33    $    0.32    $   0.01       3.1    $    1.32    $    1.28    $   0.04     3.1
Effective income tax
rate......               28.47 %      28.59 %                            30.87 %      30.44 %
nm - not meaningful

Media contact:
Erin La Row,
senior communications rep.
Phone: 785.575.6060
erin.la.row@WestarEnergy.com

Investor contact:
Bruce Burns,
director, investor relations
Phone: 785.575.8227
bruce.burns@WestarEnergy.com

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Source: Westar Energy, Inc. via Thomson Reuters ONE
HUG#1682168
 
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