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GAAP EPS of $0.39; Adjusted EPS (Non-GAAP) of $0.44
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Declares quarterly dividend of $0.475 per share
Evergy, Inc. (NYSE: EVRG) today announced first quarter 2019 earnings of
$100 million, or $0.39 per share, compared with earnings of $61 million,
or $0.42 per share, for the first quarter of 2018.
Evergy’s adjusted earnings (non-GAAP) and adjusted earnings per share
(non-GAAP) were $111 million and $0.44, respectively, in the first
quarter of 2019 compared with $92 million and $0.34, respectively, in
the first quarter of 2018. Adjusted earnings (non-GAAP) and adjusted
earnings per share (non-GAAP), which exclude costs associated with
rebranding and voluntary severance, are reconciled to GAAP earnings in
the financial table included in this release.
First quarter earnings and adjusted earnings (non-GAAP) increased due to
colder weather and lower O&M, partially offset by higher depreciation
expense. First quarter earnings were also driven by the inclusion of
Great Plains Energy’s subsidiaries in 2019.
“A solid start to the year keeps us on pace to achieve our 2019
targets,” said Terry Bassham, Evergy president and chief executive
officer. “Our team worked through the impacts of storms and flooding to
deliver solid results. We continue to focus on reducing costs, executing
our investment plan and balancing our holding company capital structure,
which are keys to delivering future value for our company.”
Dividend Declaration
The Board of Directors declared a dividend of $0.475 per share payable
on June 20, 2019, on the Company’s common stock. The dividends are
payable to shareholders of record as of May 30, 2019.
Earnings Conference Call
Evergy management will host a conference call Thursday, May 9 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 4359526. 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 first-quarter
financial information, the company's quarterly report on Form 10-Q for
the period ended March 31, 2019 and other filings the company has made
with the Securities and Exchange Commission are available on the
Company's website at www.evergyinc.com.
Adjusted Earnings (non-GAAP) and Adjusted
Earnings Per Share (non-GAAP)
Adjusted earnings (non-GAAP) and adjusted earnings per share (non-GAAP)
exclude certain costs resulting from rebranding and voluntary severance.
This information is intended to enhance an investor's overall
understanding of results. Adjusted earnings (non-GAAP) and adjusted
earnings per share (non-GAAP) are used internally to measure performance
against budget and in reports for management and the Evergy Board.
Adjusted earnings (non-GAAP) and adjusted earnings per share (non-GAAP)
are financial measures that are not calculated in accordance with GAAP
and may not be comparable to other companies' presentations or more
useful than the GAAP information.
The following table provides a reconciliation between net income
attributable to Evergy, Inc., diluted earnings per common share, pro
forma net income attributable to Evergy, Inc. and pro forma diluted
earnings per common share as determined in accordance with GAAP and
adjusted earnings (non-GAAP) and adjusted earnings per share (non-GAAP).
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Evergy, Inc.
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Consolidated Earnings and Diluted Earnings Per Share
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Three Months Ended March 31
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(Unaudited)
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Earnings
(Loss)
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Earnings
(Loss) per
Diluted
Share
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Earnings
(Loss)
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Earnings
(Loss) per
Diluted
Share
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Three Months Ended March 31
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2019
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2018
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(millions, except per share amounts)
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Net income attributable to Evergy, Inc.
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$
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99.5
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$
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0.39
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$
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60.5
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$
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0.42
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Pro forma adjustments(a):
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Great Plains Energy earnings prior to merger
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—
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—
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35.0
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0.13
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Great Plains Energy shares prior to merger
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n/a
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—
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n/a
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(0.20
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)
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Non-recurring merger costs and other
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—
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—
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(3.6
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)
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(0.01
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)
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Pro forma net income attributable to Evergy, Inc.
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$
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99.5
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$
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0.39
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$
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91.9
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$
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0.34
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Non-GAAP reconciling items:
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Rebranding costs, pre-tax(b)
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0.2
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—
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—
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—
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Voluntary severance costs, pre tax(c)
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14.8
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0.06
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—
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—
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Income tax benefit(d)
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(3.4
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)
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(0.01
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)
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—
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—
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Adjusted earnings (non-GAAP)
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$
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111.1
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$
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0.44
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$
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91.9
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$
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0.34
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(a)
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Reflects pro forma adjustments made in accordance with Article 11
of Regulation S-X and Accounting Standards Codification (ASC) 805
- Business Combinations. The unaudited pro forma financial
information has been presented for illustrative purposes only and
is not necessarily indicative of the consolidated results of
operations that would have been achieved or the future
consolidated results of operations of Evergy.
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(b)
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Reflects external costs incurred to rebrand the legacy Westar Energy
and KCP&L utility brands to Evergy and are included in operating and
maintenance expense on the consolidated statements of comprehensive
income.
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(c)
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Reflects voluntary severance costs incurred associated with various
severance programs at the Evergy Companies and are included in
operating and maintenance expense on the consolidated statements of
comprehensive income.
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(d)
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Reflects an income tax effect calculated at a 26.1% statutory rate,
with the exception of certain non-deductible items.
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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.
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.
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