This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Westar Energy CEO Discusses Q2 2011 Results - Earnings Call Transcript

With that, I'll turn the call over to Tony.

Tony Somma

Thanks, Bruce. Good morning, everyone. Earnings per share for the quarter were $0.38 compared with $0.47 last year. For the quarter, gross margin increased $10 million or 3% due mostly to higher prices. Weather in the quarter, as measured by cooling degree days, was almost the same as last year.

Turning to the expense side, O&M for the quarter increased about $12 million or 13% excluding a $4 million increase in SPP transmission cost, most of which had a favorable revenue offset. It should be noted, last year we reversed a liability associated with assets we sold in the 1990s, thus reducing 2010 O&M by $5 million.

Current year increases include the following: $4 million of Wolf Creek, half of which was for regulatory compliance and the balance due to increased expenses for this year's refueling and maintenance outage; $2 million on our distribution system for tree-trimming where we're seeing value and a more sophisticated approach to optimize electrical reliability with more targeted expenditures, this program will be a component of our upcoming rate case as we like to expand it; and $2 million increase on property taxes which was also offset with higher revenues.

Partially offsetting the increases were the $2 million reduction in storm amortization expense, something that will continue through the remainder of the year.

SG&A expenses increased $8 million due primarily to higher legal fees related to the arbitration of two former executives and the amortization of deferred energy efficiency program cost with the latter also having a corresponding revenue offset. Last, depreciation expense increased $4 million due largely to planned additions for environmental and transmission projects completed last year.

Now, turning to our financing plans for the year, through June we settled 3.1 million shares priced last year on a forward contract, receiving about $66 million. We still have 9.7 million shares priced last year, reflecting about $226 million of available equity that we plan on selling this quarter or early next. Beyond this, we don't have plans to sell additional equity this year.

2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free


Chart of I:DJI
DOW 16,865.52 +75.33 0.45%
S&P 500 1,991.13 +11.21 0.57%
NASDAQ 4,780.0970 +31.7360 0.67%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs