Increases quarterly dividend
KANSAS CITY, Mo.--(BUSINESS WIRE)--Nov. 7, 2018--
Evergy, Inc. (NYSE: EVRG) today announced third quarter 2018 earnings of
$355 million, or $1.32 per share, compared with earnings of $158
million, or $1.11 per share, for the third 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 third 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 inclusion of KCP&L and GMO earnings and higher Westar retail sales,
driven by favorable weather, positively affected third quarter results.
Third quarter 2018 pro forma earnings, which reflect the consolidated
operations of Evergy as if the merger had taken place on January 1,
2017, and exclude non-recurring merger-related costs, were $360 million,
or $1.34 per share, compared with earnings of $322 million, or $1.19 per
share for the third quarter of 2017.
Increased sales, due primarily to favorable weather, and lower income
tax expense contributed to the increase in pro forma earnings.
“We are pleased with the financial and operational performance our team
delivered this quarter,” said Terry Bassham, Evergy president and chief
executive officer. “We recognize dividends are an important component of
total shareholder return, and I’m pleased to announce, the board
approved increasing the dividend to $1.90 per share on an annualized
Bassham continued, “Reaching constructive rate review settlements in all
four of our jurisdictions was a significant accomplishment in executing
our merger plan. Upon receiving rate review orders, we will begin our
commitment to not raise customer base rate prices for the next four to
The Board of Directors declared a dividend of $0.475 per share payable
on December 20, 2018, on the Company’s common stock. The dividends are
payable to shareholders of record as of November 29, 2018.
Earnings Conference Call
Evergy management will host a conference call Thursday, November 8 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 1684285. 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 third-quarter
financial information, the company's quarterly report on Form 10-Q for
the period ended September 30, 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.
Evergy, Inc. (NYSE: EVRG), through its operating subsidiaries, Kansas
City Power & Light Company (KCP&L) and Westar Energy, Inc, (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 quarterly report on Form
10-Q for the period ended September 30, 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 merger of
Great Plains Energy Incorporated (Great Plains Energy) and Westar
Energy, Inc. (Westar Energy) that resulted in the creation of Evergy,
Inc. (Evergy), including those that relate to the expected financial and
operational benefits of the merger to the companies and their
shareholders (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, 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 in regional,
national and international markets and their effects on sales, prices
and costs; prices and availability of electricity in regional and
national wholesale markets; market perception of the energy industry,
Evergy, Westar Energy and Kansas City Power & Light Company (KCP&L);
changes in business strategy, operations or development plans; the
outcome of contract negotiations for goods and services; effects of
current or proposed state and federal legislative and regulatory actions
or developments, including, but not limited to, deregulation,
re-regulation and restructuring of the electric utility industry;
decisions of regulators regarding rates that Westar Energy and KCP&L can
charge for electricity; adverse changes in applicable laws, regulations,
rules, principles or practices governing tax, accounting and
environmental matters including, but not limited to, air and water
quality; financial market conditions and performance including, but not
limited to, 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, but not limited to, cyber
terrorism; ability to carry out marketing and sales plans; weather
conditions including, but not limited to, weather-related damage and
their effects on sales, prices and costs; cost, availability, quality
and deliverability of fuel; the inherent uncertainties in estimating the
effects of weather, economic conditions 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 and integrate its transmission joint
ventures; the inherent risks associated with the ownership and operation
of a nuclear facility including, but not limited to, environmental,
health, safety, regulatory and financial risks; workforce risks,
including, but not limited to, 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 in
annual reports on Form 10-K filed by Great Plains Energy and Westar, and
from time to time in quarterly reports on Form 10-Q and current reports
on Form 8-K filed by Evergy, KCP&L and Westar with the SEC. Each
forward-looking statement speaks only as of the date of the particular
statement. Evergy undertakes no obligation to publicly update or revise
any forward-looking statement, whether as a result of new information,
future events or otherwise.[BEGIN TEXT BOX]
View source version on businesswire.com: https://www.businesswire.com/news/home/20181107005966/en/
Source: Evergy, Inc.
Director, Investor Relations
Gina Penzig, 785-575-8089
Manager, Media Relations