- 2021 GAAP EPS of $3.83, compared to $2.72 in 2020
- 2021 Adjusted EPS (Non-GAAP) of $3.54, compared to $3.10 in
2020
- Declares quarterly dividend of $0.5725 per share
- Reaffirms 2022 EPS guidance of $3.43 to $3.63
- Updates five-year $10.7B capital plan through 2026
Evergy, Inc. (NYSE: EVRG) today announced full year GAAP 2021
earnings of $880 million, or $3.83 per share, compared to earnings
of $618 million, or $2.72 per share, for the full year 2020. Fourth
quarter 2021 GAAP earnings were $53 million, or $0.23 per share,
compared to earnings $51 million, or $0.22 per share, for the
fourth quarter of 2020.
Evergy’s 2021 adjusted earnings (non-GAAP) and adjusted earnings
per share (non-GAAP) were $813 million and $3.54, respectively,
compared to $706 million and $3.10 in 2020, resulting in a 14%
year-over-year increase and a 7% increase over the $3.30 mid-point
of the Company’s original 2021 adjusted EPS guidance range.
Fourth quarter adjusted earnings (non-GAAP) were $37 million, or
$0.16 per share, compared to $64 million and $0.28 per share in the
fourth quarter of 2020. Fourth quarter earnings per share were
lower driven by unfavorable weather, higher operational costs due
primarily to timing and phasing, and income tax related items,
partially offset by favorable weather-normalized demand. Adjusted
earnings (non-GAAP) and adjusted earnings per share (non-GAAP) are
reconciled to GAAP earnings in the financial table included in this
release.
For the year, adjusted earnings (non-GAAP) per share were driven
higher primarily by favorable weather for most of the year, higher
weather normalized demand, increased transmission revenue, higher
AFUDC and investment earnings, and lower income tax expense.
“Our continued focus on execution allowed us to meet or exceed
our 2021 objectives centered around affordability, reliability and
sustainability.” said David Campbell, Evergy president and chief
executive officer. “We look forward to continuing this positive
momentum in 2022 by setting ambitious goals that focus on
delivering near-term and long-term benefits for customers and
stakeholders.”
Earnings Guidance
The Company reaffirmed its 2022 EPS guidance range of $3.43 to
$3.63, as well as its long-term adjusted EPS annual growth target
of 6% to 8% through 2025 from the $3.30 midpoint of the original
2021 adjusted EPS guidance range.
Dividend Declaration
The Board of Directors declared a dividend on the Company’s
common stock of $0.5725 per share payable on March 21, 2022. The
dividends are payable to shareholders of record as of March 7,
2022.
Capital Investment Plan
The Company updated its five-year capital investment plan to
$10.7 billion from 2022 through 2026. The investment plan is
highlighted by over $6 billion of transmission and distribution
spend to modernize grid infrastructure and improve resiliency and
reliability, as well as $2 billion of new renewables to advance the
company’s on-going fleet transition and increase the share of
low-cost, emissions-free generation.
Earnings Conference Call
Evergy management will host a conference call Friday, February
25, with the investment community at 9:00 a.m. ET (8:00 a.m. CT).
Investors, media and the public may listen to the conference call
by dialing (888) 353-7071, conference ID 1493057. A webcast of the
live conference call will be available at
http://investors.evergy.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 fourth-quarter
and full-year financial information, the Company's annual report on
Form 10-K for the period ended December 31, 2021, and other filings
the Company has made with the Securities and Exchange Commission
are available on the Company's website at
http://investors.evergy.com.
Adjusted Earnings (non-GAAP) and
Adjusted Earnings Per Share (non-GAAP)
Adjusted earnings (non-GAAP) and adjusted earnings per share
(non-GAAP) exclude the income and costs resulting from
non-regulated energy marketing margins related to a February 2021
winter weather event, and gains or losses related to equity
investments subject to a restriction on sale that can create period
to period volatility, as well as, costs resulting from executive
transition, severance, advisor expenses, COVID-19 vaccine
incentives and the revaluation of deferred tax assets and
liabilities from a change in Kansas corporate income tax rates.
This information is intended to enhance an investor's overall
understanding of results. Management believes that adjusted
earnings (non-GAAP) provide a meaningful basis for evaluating
Evergy's operations across periods because it excludes certain
items that management does not believe are indicative of Evergy's
ongoing performance. 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 of Directors. 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 provided elsewhere in this report.
The following tables provide a reconciliation between net income
attributable to Evergy, Inc. and diluted earnings per common share
as determined in accordance with GAAP and adjusted earnings
(non-GAAP) and adjusted earnings per share (non-GAAP).
Evergy, Inc
Consolidated Earnings and
Diluted Earnings Per Share
(Unaudited)
Earnings (Loss)
Earnings (Loss) per Diluted
Share
Earnings (Loss)
Earnings (Loss) per Diluted
Share
Three Months Ended December 31
2021
2020
(millions, except per share
amounts)
Net income attributable to Evergy,
Inc.
$
53.4
$
0.23
$
51.0
$
0.22
Non-GAAP reconciling items:
Non-regulated energy marketing costs
related to February 2021 winter weather event, pre-tax(b)
2.0
0.01
—
—
Executive transition costs, pre-tax(c)
0.2
—
—
—
Severance costs, pre-tax(d)
—
—
11.0
0.05
Advisor expenses, pre-tax(e)
3.2
0.01
6.2
0.03
COVID-19 vaccine incentive, pre-tax(f)
1.2
0.01
—
—
Restricted equity investment gains,
pre-tax(g)
(27.7
)
(0.12
)
—
—
Income tax expense (benefit)(h)
4.5
0.02
(4.4
)
(0.02
)
Adjusted earnings (non-GAAP)
$
37.3
$
0.16
$
63.8
$
0.28
Earnings (Loss)
Earnings (Loss) per Diluted
Share
Earnings (Loss)
Earnings (Loss) per Diluted
Share
Year Ended December 31
2021
2020
(millions, except per share
amounts)
Net income attributable to Evergy,
Inc.
$
879.7
$
3.83
$
618.3
$
2.72
Non-GAAP reconciling items:
Non-regulated energy marketing margin
related to February 2021
winter weather event, pre-tax(a)
(94.5
)
(0.41
)
—
—
Non-regulated energy marketing costs
related to February 2021
winter weather event, pre-tax(b)
7.9
0.03
—
—
Executive transition costs, pre-tax(c)
10.8
0.05
—
—
Severance costs, pre-tax(d)
2.8
0.01
66.3
0.29
Advisor expenses, pre-tax(e)
11.6
0.05
32.3
0.14
COVID-19 vaccine incentive, pre-tax(f)
1.2
0.01
—
—
Restricted equity investment gains,
pre-tax(g)
(27.7
)
(0.12
)
—
—
Income tax expense (benefit)(h)
20.8
0.09
(25.2
)
(0.11
)
Kansas corporate income tax change(i)
—
—
13.8
0.06
Adjusted earnings (non-GAAP)
$
812.6
$
3.54
$
705.5
$
3.10
(a)
Reflects non-regulated energy marketing
margins related to the February 2021 winter weather event and are
included in operating revenues on the consolidated statements of
comprehensive income.
(b)
Reflects non-regulated energy marketing
incentive compensation costs related to the February 2021 winter
weather event and are included in operating and maintenance expense
on the consolidated statements of comprehensive income.
(c)
Reflects costs associated with executive
transition including inducement bonuses, severance agreements and
other transition expenses of which $10.5 million is included in
operating and maintenance expense and $0.3 million is included in
other expense in 2021 on the consolidated statements of
comprehensive income.
(d)
Reflects severance costs incurred
associated with certain voluntary severance programs at the Evergy
Companies and are included in operating and maintenance expense on
the consolidated statements of comprehensive income.
(e)
Reflects advisor expenses incurred
associated with strategic planning and are included in operating
and maintenance expense on the consolidated statements of
comprehensive income.
(f)
Reflects incentive compensation costs
incurred associated with employees becoming fully vaccinated
against COVID-19 and are included in operating and maintenance
expense on the consolidated statements of comprehensive income.
(g)
Reflects gains related to equity
investments which are subject to a restriction on sale and are
included in investment earnings on the consolidated statements of
comprehensive income.
(h)
Reflects an income tax effect calculated
at a statutory rate of approximately 22% in 2021 and 26% in 2020,
with the exception of certain non-deductible items.
(i)
Reflects the revaluation of Evergy Kansas
Central's, Evergy Metro's and Evergy Missouri West's deferred
income tax assets and liabilities from the Kansas corporate income
tax rate change and are included in income tax expense on the
consolidated statements of comprehensive income.
GAAP to Non-GAAP
Earnings Guidance
Original 2021 Earnings per
Diluted Share
Guidance
2022 Earnings per
Diluted Share
Guidance
Net income attributable to Evergy,
Inc.
$3.14 - $3.34
$3.43 - $3.63
Non-GAAP reconciling items:
Advisor expense, pre-tax(a)
0.05
-
Executive transition cost, pre-tax(b)
0.03
-
Income tax benefit(c)
(0.02)
-
Adjusted earnings (non-GAAP)
$3.20 - $3.40
$3.43 - $3.63
(a)
Reflects our advisor expense incurred
associated with strategic planning.
(b)
Reflects costs associated with certain
executive transition costs at the Evergy Companies.
(c)
Reflects an income tax effect calculated
at a statutory rate of approximately 26% with the exception of
certain non-deductible items.
About Evergy
Evergy, Inc. (NYSE: EVRG), serves 1.6 million customers in
Kansas and Missouri. Evergy’s mission is to empower a better
future. Our focus remains on producing, transmitting and delivering
reliable, affordable, and sustainable energy for the benefit of our
stakeholders. Today, about half of Evergy’s power comes from
carbon-free sources, creating more reliable energy with less impact
to the environment. We value innovation and adaptability to give
our customers better ways to manage their energy use, to create a
safe, diverse and inclusive workplace for our employees, and to add
value for our investors. Headquartered in Kansas City, our
employees are active members of the communities we serve.
For more information about Evergy, visit us at
http://investors.evergy.com.
Forward Looking
Statements
Statements made in this document 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 Evergy's strategic plan, including, without
limitation, those related to earnings per share, dividend,
operating and maintenance expense and capital investment goals; the
outcome of legislative efforts and regulatory and legal
proceedings; future energy demand; future power prices; plans with
respect to existing and potential future generation resources; the
availability and cost of generation resources and energy storage;
target emissions reductions; and other matters relating to expected
financial performance or affecting future operations.
Forward-looking statements are often accompanied by forward-looking
words such as “anticipates,” “believes,” “expects,” “estimates,”
“forecasts,” “should,” “could,” “may,” “seeks,” “intends,”
“proposed,” “projects,” “planned,” “target,” “outlook,” “remain
confident,” “goal,” “will” or other words of similar meaning.
Forward-looking statements involve risks, uncertainties and other
factors that could cause actual results to differ materially from
the forward-looking information.
In connection with the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995, Evergy, Inc., Evergy
Kansas Central, Inc. and Evergy Metro, Inc. (collectively, the
Evergy Companies) are providing a number of risks, uncertainties
and other factors that could cause actual results to differ from
the forward-looking information. These risks, uncertainties and
other factors include, but are not limited to: economic and weather
conditions and any impact on sales, prices and costs; changes in
business strategy or operations; the impact of federal, state and
local political, legislative, judicial and regulatory actions or
developments, including deregulation, re-regulation, securitization
and restructuring of the electric utility industry; decisions of
regulators regarding, among other things, customer rates and the
prudency of operational decisions such as capital expenditures and
asset retirements; changes in applicable laws, regulations, rules,
principles or practices, or the interpretations thereof, governing
tax, accounting and environmental matters, including air and water
quality and waste management and disposal; the impact of climate
change, including increased frequency and severity of significant
weather events and the extent to which counterparties are willing
to do business with, finance the operations of or purchase energy
from the Evergy Companies due to the fact that the Evergy Companies
operate coal-fired generation; prices and availability of
electricity in wholesale markets; market perception of the energy
industry and the Evergy Companies; the impact of the Coronavirus
(COVID-19) pandemic on, among other things, sales, results of
operations, financial condition, liquidity and cash flows, and also
on operational issues, such as supply chain issues and the
availability and ability of the Evergy Companies’ employees and
suppliers to perform the functions that are necessary to operate
the Evergy Companies; changes in the energy trading markets in
which the Evergy Companies participate, including retroactive
repricing of transactions by regional transmission organizations
(RTO) and independent system operators; 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; the transition to a
replacement for the London Interbank Offered Rate (LIBOR) benchmark
interest rate; effectiveness of risk management policies and
procedures and the ability of counterparties to satisfy their
contractual commitments; impact of physical and cybersecurity
breaches, criminal activity, terrorist attacks and other
disruptions to the Evergy Companies’ facilities or information
technology infrastructure or the facilities and infrastructure of
third-party service providers on which the Evergy Companies rely;
ability to carry out marketing and sales plans; cost, availability,
quality and timely provision of equipment, supplies, labor and
fuel; ability to achieve generation goals and the occurrence and
duration of planned and unplanned generation outages; delays and
cost increases of generation, transmission, distribution or other
projects; the Evergy Companies’ ability to manage their
transmission and distribution development plans and 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 those related to the Evergy Companies’ ability to attract
and retain qualified personnel, maintain satisfactory relationships
with their labor unions and manage costs of, or changes in,
retirement, health care and other benefits; disruption, costs and
uncertainties caused by or related to the actions of individuals or
entities, such as activist shareholders or special interest groups,
that seek to influence Evergy’s strategic plan, financial results
or operations; the possibility that strategic initiatives,
including mergers, acquisitions and divestitures, and long-term
financial plans, may not create the value that they are expected to
achieve in a timely manner or at all; difficulties in maintaining
relationships with customers, employees, regulators or suppliers;
and other risks and uncertainties.
This list of factors is not all-inclusive because it is not
possible to predict all factors. You should also carefully consider
the information contained in our other filings with the Securities
and Exchange Commission (SEC). Additional risks and uncertainties
are discussed in the Annual Report on Form 10-K for the year ended
December 31, 2021 filed by the Evergy Companies with the SEC, and
from time to time in current reports on Form 8-K and quarterly
reports on Form 10-Q filed by the Evergy Companies with the SEC.
Each forward-looking statement speaks only as of the date of the
particular statement. The Evergy Companies undertake no obligation
to publicly update or revise any forward-looking statement, whether
as a result of new information, future events or otherwise, except
as required by law.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220225005087/en/
Investor Contact: Cody VandeVelde Director, Investor
Relations Phone: 785-575-8227 Cody.VandeVelde@evergy.com
Media Contact: Gina Penzig Manager, External
Communications Phone: 785-508-2410 Gina.Penzig@evergy.com Media
line: 888-613-0003
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