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's CEO Discusses Q2 2012 Results - Earnings Call Transcript

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

Tony Somma

Thanks Bruce. Good morning. We had a very good second-quarter with the growth in earnings resulting largely from recent price adjustments, warm weather and COLI income. Net income was $61 million compared to $44 million last year. EPS were $0.48, up $0.10 from last year.

Keep in mind when comparing the two periods that last year included about $0.03, a one-time legal expenses while this quarter reflects about 10% more shares outstanding to fund utility plants. Gross margin was up $37 million or 11% due largely to higher prices and a 3% increase in retail sales.

As measured by cooling degree days, weather for the quarter was significantly warmer than normal and about 20% warmer than last year although a good portion of that was in April and May which doesn’t have the same effect on sales as hot summer weather does. .

On the expense side, combined O&M and SG&A was up about $22 million or 14%, excluding a $10 million increase in SPP transmission cost, most of which has a revenue offset. Also excluded from this increase was $6 million of one-time legal expenses incurred last year.

Principal reasons for higher expenses most of which are already reflected in the recently authorized revenue requirement price adjustments were: $11 million more for pension employee benefit costs, $3 million for increased tree trimming and related line maintenance, a $3 million increase in property taxes, which has a revenue offset and $2 million for increased maintenance at our coastal plant.

Depreciation was $5 million lower than last year due primarily to the adaption of lower depreciation rates as part of the recent rate order. We recorded $3 million of COLI income which was the primary driver of the increase in other income.

2 of 4

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
AAPL $94.94 1.40%
FB $117.98 -0.50%
GOOG $694.40 -0.55%
TSLA $234.75 -2.90%
YHOO $36.03 -1.40%


Chart of I:DJI
DOW 17,733.99 -157.17 -0.88%
S&P 500 2,059.44 -21.99 -1.06%
NASDAQ 4,760.5310 -57.0630 -1.18%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs