Evergy Announces 2020 Results at Top End of Guidance Range, Declares Quarterly Dividend, and Issues 2021 Outlook
02/26/2021 - 06:00 AM
Evergy, Inc. (NYSE: EVRG) today announced full year GAAP 2020 earnings of $618 million , or $2.72 per share, compared with earnings of $670 million , or $2.79 per share, for the full year 2019. Fourth quarter 2020 GAAP earnings were $51 million , or $0.22 per share, compared with earnings of $64 million , or $0.28 per share, for the fourth quarter of 2019.
For the year, GAAP earnings decreased primarily due to lower retail sales driven by unfavorable weather and a decrease in weather-normalized demand primarily due to pandemic impacts. Also contributing to lower earnings was higher depreciation expense from infrastructure investments, severance and advisor expenses, and higher interest expense; partially offset by lower operating and maintenance expenses.
Evergy’s 2020 adjusted earnings (non-GAAP) and adjusted earnings per share (non-GAAP) were $706 million and $3.10 , respectively, compared to $694 million and $2.89 in 2019, representing a year-over-year increase of 7% , in line with the company’s target of 6% to 8% annual growth in adjusted EPS from 2019-2024. Fourth quarter adjusted earnings (non-GAAP) were $64 million , or $0.28 per share, compared with $73 million and $0.32 per share in the fourth quarter of 2019. 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 (non-GAAP) earnings per share were driven higher primarily by lower operations and maintenance expense due to continued cost management and fewer shares outstanding. These benefits were partially offset by unfavorable weather, lower demand due to the impacts of the pandemic, higher depreciation expense, and higher interest expense.
“I’m very excited to be part of the Evergy team and to welcome Kirk Andrews, our new Chief Financial Officer,” said David Campbell, Evergy president and chief executive officer. “Our executive team and employees remained laser-focused to deliver strong financial results in 2020, despite the unprecedented challenges. We also had solid operating performance in safety and reliability, and we continued to find efficiencies throughout our business. We have a tremendous opportunity in front of us with the Sustainability Transformation Plan, which we expect to continue driving long-term value for both customers and shareholders.”
2021 EPS Guidance
Evergy issued 2021 GAAP EPS guidance of $3.14 t o $3.34 and adjusted EPS guidance of $3.20 t o $3.40 . 2021 guidance does not reflect the expected positive impact of power marketing activities during the February extreme weather event.
Updates to Five-Year Capital Plan
Evergy has updated its five-year capital plan to include $9.2 billion of infrastructure investments through 2025, as compared to $8.9 billion through 2024. Including these additional investments, Evergy continues to expect compounded annual rate base growth of 5% to 6% from 2019 to 2024 as previously announced under the Company’s Sustainability Transformation Plan.
Dividend Declaration
The Board of Directors declared a dividend on the company’s common stock of $0.53 5 per share payable on March 22, 2021. The dividends are payable to shareholders of record as of March 8, 2021.
Earnings Conference Call
Evergy management will host a conference call Friday, February 26, with the investment community at 8:00 a.m. ET (7:00 a.m. CT). Investors, media and the public may listen to the conference call by dialing (888) 353-7071, conference ID 5353707. A webcast of the live conference call will be available at 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 financial information, the Company's quarterly report on Form 10-K for the period ended December 31, 2020 and other filings the Company has made with the Securities and Exchange Commission (SEC) are available on the Company's website at 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 costs resulting from rebranding, voluntary severance, advisor expenses and the revaluation of deferred tax assets and liabilities from the Kansas state income tax rate change. 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 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
Earnings
Earnings
Earnings
Three Months Ended December 31
2020
2019
(millions, except per share amounts)
Net income attributable to Evergy, Inc.
$
51.0
$
0.22
$
63.9
$
0.28
Non-GAAP reconciling items:
Rebranding costs, pre-tax(a)
—
—
7.4
0.03
Voluntary severance costs, pre-tax(b)
11.0
0.05
4.7
0.02
Advisor expenses, pre-tax(c)
6.2
0.03
—
—
Income tax benefit(d)
(4.4
)
(0.02
)
(3.2
)
(0.01
)
Adjusted earnings (non-GAAP)
$
63.8
$
0.28
$
72.8
$
0.32
Earnings
Earnings
Earnings
Earnings
Year Ended December 31
2020
2019
(millions, except per share amounts)
Net income attributable to Evergy, Inc.
$
618.3
$
2.72
EVRG Rankings
#3389 Ranked by Stock Gains
EVRG Stock Data
Industry
Electric Bulk Power Transmission and Control
Sector
Utilities
Tags
Utilities, Electric Utilities, Electric Bulk Power Transmission and Control
Country
United States
City
Kansas City
About EVRG
evergy, inc., through its subsidiaries, engages in the generation, transmission, distribution, and sale of electricity in kansas and missouri. it generates electricity through coal, nuclear, natural gas and oil, uranium, wind, hydroelectric, landfill gas, and solar energy sources, as well as other renewable sources. the company has approximately 10,100 circuit miles of transmission lines; 39,700 circuit miles of overhead distribution lines; and 12,700 circuit miles of underground distribution lines. it serves approximately 1,604,300 customers, including residences, commercial firms, industrials, municipalities, and other electric utilities. the company was incorporated in 2017 and is headquartered in kansas city, missouri.
