This Day On The Street
Continue to site right-arrow
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Westar Energy's CEO Discusses Q1 2012 Results - Earnings Call Transcript

Stocks in this article: WR

Tony will offer highlights on the quarter, comment on earnings guidance and provide an updated on major projects. Mark will then comment on regulatory activities, EPA regulations and a few other thoughts on our business.

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

Tony Somma – Chief Financial Officer

Thanks, Bruce. Good morning. The drivers for the quarter were pretty straight forward extremely mild winter weather, unplanned outage expenses and proceeds from COLI.

Earnings and earnings per share for the quarter were $27 million and $0.21 respectively compared with $31 million and $0.27 in 2011. Earnings for Q1 2011 included about $1 million or $0.01 per share one-time expenses related to settling a legal dispute last year.

EPS for the quarter also reflect additional shares issued to fund investment in utility infrastructure. Gross margin was down $7 million or 2%, signal such a lower retail sales largely from very mild weather as measured by heating degree days, weather for the quarter was the warmest in over 50 years.

On the expense side, O&M was about $11 million or 11% higher, excluding a $7 million increase in SPP transmission costs, most of which has a revenue offset. Principal reasons for the higher O&M were $9 million for increased maintenance at Wolf Creek from both the unplanned outage and higher amortization expenses for last spring’s refill and maintenance outage and a $2 million increase in property taxes, which has a revenue offset.

The combined O&M and SG&A, excluding SPP transmission costs and the one-time legal costs, were 8% higher for the quarter, but in line with full year plans and guidance. Depreciation expense increased $3 million in line with guidance and largely reflecting plant additions.

Other income increased by $11 million due primarily to the benefit of $9 million of COLI proceeds. As we've shared with you for some time, we've planned to satisfy external capital needs for the next year or so with debt.

2 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs