Evergy : Investor Supplement (69b634)

Published: 2025-05-08 07:11:09 ET EVRG

Published on 05/08/2025 at 07:11

Consolidated Statements of Income 1

Consolidated Balance Sheets 2-3

Consolidated Statements of Cash Flows 4

Earnings Variances 5

Supplemental Data 6-7

Capitalization 8

Utility Gross Margin and Adjusted Earnings (Non-GAAP) 9-10

Peter Flynn Director - Investor Relations

816-652-1060

[email protected]

The Notes to the Unaudited Consolidated Financial Statements in Evergy's, Evergy Kansas Central's and Evergy Metro's combined Quarterly Report on Form 10-Q for the period ended March 31, 2025 should be read in conjunction with this financial information. The enclosed statements have been prepared for the purpose of providing information concerning Evergy, Evergy Kansas Central and Evergy Metro and not in connection with any sale, offer for sale, or solicitation to buy any securities.

‌EVERGY, INC.

Consolidated Statements of Income

(Unaudited)

Three Months Ended March 31 2025 2024 Change % Change

(millions, except per share amounts)

REVENUES:

Residential

$ 509.9

$ 479.0

$ 30.9

6.5

Commercial

436.5

432.7

3.8

0.9

Industrial

145.0

160.4

(15.4)

(9.6)

Other retail

10.1

11.9

(1.8)

(15.1)

Total electric retail

1,101.5

1,084.0

17.5

1.6

Wholesale

48.6

71.0

(22.4)

(31.5)

Transmission

134.0

115.4

18.6

16.1

Other

90.4

60.6

29.8

49.2

Total Revenues

1,374.5

1,331.0

43.5

3.3

OPERATING EXPENSES:

Fuel and purchased power

355.3

376.4

(21.1)

(5.6)

SPP network transmission costs

96.4

72.7

23.7

32.6

Operating and maintenance

232.0

231.5

0.5

0.2

Depreciation and amortization

288.1

276.1

12.0

4.3

Taxes other than income tax

111.1

114.1

(3.0)

(2.6)

Total Operating Expenses

1,082.9

1,070.8

12.1

1.1

INCOME FROM OPERATIONS

291.6

260.2

31.4

12.1

OTHER INCOME (EXPENSE):

Investment earnings

2.1

5.3

(3.2)

(60.4)

Other income

4.4

8.5

(4.1)

(48.2)

Other expense

(9.5)

Total Other Income (Expense), Net

(3.0)

4.3

(7.3)

N/M

Interest expense

152.5

133.2

19.3

14.5

INCOME BEFORE INCOME TAXES

136.1

131.3

4.8

3.7

Income tax expense

9.6

7.3

2.3

31.5

Equity in earnings of equity method investees, net of income taxes

1.6

1.8

(0.2)

(11.1)

NET INCOME

128.1

125.8

2.3

1.8

Less: Net income attributable to noncontrolling interests

3.1

NET INCOME ATTRIBUTABLE TO EVERGY, INC.

$ 125.0

$ 122.7

$ 2.3

1.9

BASIC AND DILUTED EARNINGS PER AVERAGE COMMON SHARE OUTSTANDING ATTRIBUTABLE TO EVERGY (See 10-Q Note 1)

Basic earnings per common share

$ 0.54

$ 0.53

$ 0.01

1.9

Diluted earnings per common share

$ 0.54

$ 0.53

$ 0.01

1.9

AVERAGE COMMON SHARES OUTSTANDING

Basic

230.4

230.2

0.2

0.1

Diluted

232.1

230.4

1.7

0.7

Effective income tax rate

7.0 %

5.6 %

The Notes to the Unaudited Consolidated Financial Statements in Evergy's Quarterly Report on Form 10-Q for the period ended March 31, 2025 should be read in conjunction with this financial information.

‌EVERGY, INC.

Consolidated Balance Sheets

(Unaudited)

March 31 December 31

2025 2024

ASSETS (millions, except share amounts)

CURRENT ASSETS:

Cash and cash equivalents

$ 35.3

$ 22.0

Receivables, net of allowance for credit losses of $11.2 and $15.7, respectively

198.0

245.4

Accounts receivable pledged as collateral

401.0

Fuel inventory and supplies

867.7

867.4

Income taxes receivable

11.1

Regulatory assets, includes $16.1 and $15.9 related to variable interest entity, respectively

203.7

180.9

Prepaid expenses

73.4

66.1

Other

55.3

45.4

Total Current Assets

1,834.4

1,839.3

PROPERTY, PLANT AND EQUIPMENT, NET, includes $124.7 and $126.5 related to variable interest entity, respectively

25,078.5

24,930.9

OTHER ASSETS:

Regulatory assets, includes $290.4 and $294.5 related to variable interest entity, respectively

1,752.5

1,719.3

Nuclear decommissioning trust

867.3

879.8

Goodwill

2,336.6

Other

584.9

576.2

Total Other Assets

5,541.3

5,511.9

TOTAL ASSETS

$ 32,454.2

$ 32,282.1

EVERGY, INC.

Consolidated Balance Sheets

(Unaudited)

March 31

December 31

2025

2024

LIABILITIES AND EQUITY

(millions, except

share amounts)

CURRENT LIABILITIES:

Current maturities of long-term debt, includes $16.2 and $16.2 related to variable interest entity, respectively

$ 651.9

$ 651.7

Commercial paper

943.6

1,207.6

Collateralized note payable

401.0

Accounts payable

368.2

613.8

Accrued taxes

264.8

159.0

Accrued interest, includes $5.4 and $1.3 related to variable interest entity, respectively

204.4

136.4

Regulatory liabilities

182.4

173.8

Asset retirement obligations

29.7

28.7

Accrued compensation and benefits

63.0

73.0

Other

205.4

217.4

Total Current Liabilities

3,314.4

3,662.4

LONG-TERM LIABILITIES:

Long-term debt, net, includes $295.8 and $295.7 related to variable interest entity, respectively

12,405.5

11,809.2

Deferred income taxes

2,007.7

2,035.7

Unamortized investment tax credits

161.1

162.8

Regulatory liabilities

2,650.0

2,672.0

Pension and post-retirement liability

363.1

371.3

Asset retirement obligations

1,280.8

1,268.3

Other

303.7

311.2

Total Long-Term Liabilities

19,171.9

18,630.5

Commitments and Contingencies (See 10-Q Note 10)

EQUITY:

Evergy, Inc. Shareholders' Equity:

Common stock - 600,000,000 shares authorized, without par value 230,084,735 and 229,983,615 shares issued, stated value

7,248.4

7,245.9

Retained earnings

2,704.6

2,732.9

Accumulated other comprehensive loss

(22.4)

(23.8)

Total Evergy, Inc. Shareholders' Equity

9,930.6

9,955.0

Noncontrolling Interests

37.3

34.2

Total Equity

9,967.9

9,989.2

TOTAL LIABILITIES AND EQUITY

$ 32,454.2

$ 32,282.1

‌EVERGY, INC.

Consolidated Statements of Cash Flows

(Unaudited)

Three Months Ended March 31 20252024

CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES: (millions)

Net income

$ 128.1

$ 125.8

Adjustments to reconcile income to net cash from operating activities:

Depreciation and amortization

288.1

276.1

Amortization of nuclear fuel

16.2

15.7

Amortization of deferred refueling outage

4.2

4.6

Amortization of corporate-owned life insurance

6.6

7.5

Stock compensation

4.5

3.9

Net deferred income taxes and credits

(8.9)

(11.0)

Allowance for equity funds used during construction

(2.5)

(3.2)

Payments for asset retirement obligations

(3.5)

(4.4)

Equity in earnings of equity method investees, net of income taxes

(1.6)

(1.8)

Income from corporate-owned life insurance

(1.3)

(7.5)

Other

0.3

Changes in working capital items:

Accounts receivable

41.6

66.2

Accounts receivable pledged as collateral

(20.0)

Fuel inventory and supplies

(0.2)

(24.4)

Prepaid expenses and other current assets

(31.9)

(20.2)

Accounts payable

(155.3)

(152.9)

Accrued taxes

116.9

119.3

Other current liabilities

60.6

(37.1)

Changes in other assets

23.2

(10.4)

Changes in other liabilities

(35.5)

(9.2)

Cash Flows from Operating Activities

449.6

317.3

CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES:

Additions to property, plant and equipment

(592.8)

(618.6)

Purchase of securities - trusts

(26.8)

(19.5)

Sale of securities - trusts

21.9

14.8

Investment in corporate-owned life insurance

(4.2)

(4.1)

Proceeds from investment in corporate-owned life insurance

0.7

41.5

Other investing activities

2.3

2.7

Cash Flows used in Investing Activities

(598.9)

(583.2)

CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES:

Short-term debt, net

(264.0)

139.7

Collateralized short-term borrowings, net

20.0

Proceeds from long-term debt

594.2

326.1

Borrowings against cash surrender value of corporate-owned life insurance

0.7

0.6

Repayment of borrowings against cash surrender value of corporate-owned life insurance

(29.4)

Cash dividends paid

(153.6)

(147.7)

Other financing activities

(5.7)

Cash Flows from Financing Activities

171.6

303.6

NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH

22.3

37.7

CASH, CASH EQUIVALENTS AND RESTRICTED CASH:

Beginning of period

29.9

27.7

End of period

$ 52.2

$ 65.4

‌Earnings Variances

Evergy, Inc

First Quarter 2025 vs. 2024

Change

(dollars in millions) ($ per share)

2024 net income attributable to Evergy, Inc. $ 122.7 $ 0.53

Favorable/(Unfavorable )

Utility gross margin(a)

40.9

0.18

Operating and maintenance

(0.5)

Depreciation and amortization

(12.0)

(0.05)

Taxes other than income tax

3.0

0.01

Other income (expense), net

(7.3)

(0.03)

Interest expense

(19.3)

(0.08)

Income tax expense

(2.3)

(0.01)

Equity in earnings of equity method investees, net of income taxes

(0.2)

Net income attributable to noncontrolling interests

Change in shares outstanding

2025 net income attributable to Evergy, Inc.

$ 125.0

$ 0.54

(a)Utility gross margin is a non-GAAP financial measure. See explanation of utility gross margin in the Utility Gross Margin (Non-GAAP) section below.

Major factors influencing the period to period change in EPS-- Favorable/(Unfavorable)

A Due primarily to an increase from new Evergy Missouri West retail rates effective in January 2025 - $23.5M; an increase in transmission revenue primarily due to updated transmission costs reflected in Evergy Kansas Central's Federal Energy Regulatory Commission (FERC) transmission formula rate (TFR) effective in January 2025 - $18.6M; and an increase primarily due to higher retail sales driven by favorable weather - $3.7M; partially offset by a decrease related to Evergy Kansas Central's Transmission Delivery Charge (TDC) rider - ($4.9M).

Due primarily to capital additions - ($12.0M).

Due primarily to recording lower Evergy Kansas Central corporate-owned life insurance (COLI) benefits - ($5.2M) and unrealized losses from various equity investments - ($3.9M).

Due primarily to issuances of long-term debt - ($20.4M); and an increase due to lower debt allowance for funds used during construction (AFUDC) - ($3.9M); partially offset by a decrease due to the repayment of long-term debt - $4.9M.

‌Supplemental Data

Evergy, Inc.

Financial Results, Revenue and Sales

Three Months Ended March 31

2025

2024

2025

2024

2025

2024

2025

2024

(Dollars in millions)

Operating revenues

$ 1,374.5

$ 1,331.0

$ 709.1

$ 693.2

$ 427.7

$ 420.9

$ 241.8

$ 224.5

Fuel and purchased power

355.3

376.4

126.5

138.6

137.8

136.6

95.2

108.9

SPP network transmission costs

96.4

72.7

96.4

72.7

Operating and maintenance

232.0

231.5

109.5

116.3

70.5

67.9

48.0

43.7

Depreciation and amortization

288.1

276.1

142.1

139.1

103.8

100.5

43.1

37.6

Taxes other than income tax

111.1

114.1

60.8

63.2

36.7

37.3

13.6

13.7

Income from operations

291.6

260.2

173.8

163.3

78.9

78.6

41.9

20.6

Other income (expense), net

(3.0)

4.3

0.6

5.4

0.9 (1.9)

(0.3)

1.4

Interest expense

152.5

133.2

59.3

55.8

36.3

37.6

22.8

17.2

Income tax expense

9.6

7.3

4.9

2.1

6.6

6.4

2.1 (0.6)

Equity in earnings of equity method investees, net of income taxes

1.6

1.8

0.7

0.8

Net income

128.1

125.8

110.9

111.6

36.9

32.7

16.7

5.4

Less: net income attributable to noncontrolling interests

3.1

Net income attributable to controlling interest

$ 125.0

$ 122.7

$ 107.8

$ 108.5

$ 36.9

$ 32.7

$ 16.7

$ 5.4

Reconciliation of gross margin (GAAP) to utility gross margin (non-GAAP):

Operating revenues

$ 1,374.5

$ 1,331.0

$ 709.1

$ 693.2

$ 427.7

$ 420.9

$ 241.8

$ 224.5

Fuel and purchased power

(355.3)

(376.4)

(126.5) (138.6)

(137.8) (136.6)

(95.2) (108.9)

SPP network transmission costs

(96.4)

(72.7)

(96.4) (72.7)

Operating and maintenance(a)

(129.1)

(135.9)

(56.7) (65.7)

(51.3) (52.3)

(20.9) (17.7)

Depreciation and amortization

(288.1)

(276.1)

(142.1) (139.1)

(103.8) (100.5)

(43.1) (37.6)

Taxes other than income tax

(111.1)

(114.1)

(60.8) (63.2)

(36.7) (37.3)

(13.6) (13.7)

Gross margin (GAAP)

394.5

355.8

226.6

213.9

98.1

94.2

69.0

46.6

Operating and maintenance(a)

129.1

135.9

56.7

65.7

51.3

52.3

20.9

17.7

Depreciation and amortization

288.1

276.1

142.1

139.1

103.8

100.5

43.1

37.6

Taxes other than income tax

111.1

114.1

60.8

63.2

36.7

37.3

13.6

13.7

Utility gross margin (non-GAAP)

$ 922.8

$ 881.9

$ 486.2

$ 481.9

$ 289.9

$ 284.3

$ 146.6

$ 115.6

Revenues

(Dollars in millions)

Residential

$ 509.9

$ 479.0

$ 223.7

$ 214.3

$ 166.9

$ 156.0

$ 119.3

$ 108.7

Commercial

436.5

432.7

183.6

171.7

171.2

81.2

77.9

Industrial

145.0

160.4

96.1

106.0

28.3

31.2

20.6

23.2

Other retail revenues

10.1

11.9

6.1

2.3

3.2

1.7

2.6

Total electric retail

1,101.5

1,084.0

509.5

510.0

369.2

361.6

222.8

212.4

Wholesale revenues

48.6

71.0

72.5

68.1

(29.0)

6.3

9.3

4.3

Transmission

134.0

115.4

123.2

108.9

7.4

4.9

3.5

1.6

Other

90.4

60.6

3.9

6.2

80.1

48.1

6.2

Operating revenues

$ 1,374.5

$ 1,331.0

$ 709.1

$ 693.2

$ 427.7

$ 420.9

$ 241.8

$ 224.5

Electricity Sales

(MWh in thousands)

Residential

4,055

3,742

1,607

1,501

1,433

1,311

1,015

930

Commercial

4,425

4,290

1,709

1,658

1,846

1,800

870

831

Industrial

1,878

2,047

1,180

1,274

393

438

304

336

Other retail revenues

Total electric retail

10,382

10,106

4,506

4,443

3,682

3,562

2,194

2,102

Wholesale revenues

3,595

3,294

2,161

2,546

1,299

743

135

108

Total electricity sales

13,977

13,400

6,667

6,989

4,981

4,305

2,329

2,210

(a)Operating and maintenance expenses which are deemed to be directly attributable to revenue-producing activities include plant operating and maintenance expenses at generating units and transmission and distribution operating and maintenance expenses and have been separately presented in order to calculate gross margin as defined under GAAP.

Degree Days

2025

2024/ Normal

Change

% Change

Cooling

Actual compared to last year

233.3

Actual compared to normal

150.0

Heating

Actual compared to last year

2,666

2,260

406

18.0

Actual compared to normal

2,666

2,530

136

5.4

‌Evergy, Inc. Capitalization

(dollars in millions, except per share amounts)

Current maturities of long-term debt

$ 651.9

$ 651.7

Long-term debt, net

12,405.5

11,809.2

Total long-term debt

13,057.4

56.7 %

12,460.9

55.5 %

Common equity

9,930.6

43.1 %

9,955.0

44.3 %

Noncontrolling interests

37.3

0.2 %

34.2

0.2 %

Total capitalization

$ 23,025.3

100.0 %

$ 22,450.1

100.0 %

GAAP Book value per share

$ 43.16

$ 43.29

Period end shares outstanding

230,084,735

229,983,615

‌Evergy, Inc.

Non-GAAP Measures

Utility gross margin (non-GAAP) is a financial measure that is not calculated in accordance with GAAP. Utility gross margin (non-GAAP), as used by Evergy, Evergy Kansas Central and Evergy Metro (collectively, the Evergy Companies), is defined as operating revenues less fuel and purchased power costs and amounts billed by the SPP for network transmission costs. Expenses for fuel and purchased power costs, offset by wholesale sales margin, are subject to recovery through cost adjustment mechanisms. As a result, changes in fuel and purchased power costs are offset in operating revenues with minimal impact on net income. In addition, SPP network transmission costs fluctuate primarily due to investments by SPP members for upgrades to the transmission grid within the SPP Regional Transmission Organization (RTO). As with fuel and purchased power costs, changes in SPP network transmission costs are mostly reflected in the prices charged to customers with minimal impact on net income. The Evergy Companies' definition of utility gross margin (non-GAAP) may differ from similar terms used by other companies.

Utility gross margin (non-GAAP) is intended to aid an investor's overall understanding of results. Management believes that utility gross margin (non-GAAP) provides a meaningful basis for evaluating the Evergy Companies' operations across periods because utility gross margin (non-GAAP) excludes the revenue effect of fluctuations in fuel and purchased power costs and SPP network transmission costs. Utility gross margin (non-GAAP) is used internally to measure performance against budget and in reports for management and the Evergy Board. Utility gross margin (non-GAAP) should be viewed as a supplement to, and not a substitute for, gross margin, which is the most directly comparable financial measure prepared in accordance with GAAP. Gross margin under GAAP is defined as the excess of sales over cost of goods sold.

Utility gross margin (non-GAAP) differs from the GAAP definition of gross margin due to the exclusion of operating and maintenance expenses determined to be directly attributable to revenue-producing activities, depreciation and amortization and taxes other than income tax. See page 6 for the reconciliation of utility gross margin (non-GAAP) to gross margin, the most comparable GAAP measure, for the three months ended March 31, 2025 and 2024.

Management believes that adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP) are representative measures of Evergy's recurring earnings, assists in the comparability of results and is consistent with how management reviews performance.

Evergy's adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP) for the three months ended March 31, 2025 were $125.0 million or $0.54 per share. For the three months ended March 31, 2024, Evergy's adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP) were $124.7 million or $0.54 per share.

In addition to net income attributable to Evergy, Inc. and diluted EPS, Evergy's management uses adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP) to evaluate earnings and EPS without the mark-to-market impacts of economic hedges related to Evergy Kansas Central's 8% ownership share of JEC.

Adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP) are intended to aid an investor's overall understanding of results. Management believes that adjusted earnings (non-GAAP) provides 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 or that can create period to period earnings volatility.

Adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP) are used internally to measure performance against budget and in reports for management and the Evergy Board. Adjusted earnings (non-GAAP) and adjusted EPS (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 table provides a reconciliation between net income attributable to Evergy, Inc. and diluted EPS as determined in accordance with GAAP and adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP), respectively.

(millions, except per share amounts)

Net income attributable to Evergy, Inc.

$ 125.0

$ 0.54

$ 122.7

$ 0.53

Non-GAAP reconciling items:

Mark-to-market impact of JEC economic hedges, pre-tax(a)

2.6

0.01

Income tax benefit(f)

(0.6)

Adjusted earnings (non-GAAP)

$ 125.0

$ 0.54

$ 124.7

$ 0.54

‌(a)Reflects mark-to-market gains or losses related to forward contracts for natural gas and electricity entered into as economic hedges against fuel price volatility related to Evergy Kansas Central's 8% ownership share of JEC that are included in operating revenues on the consolidated statements of comprehensive income.

(b)Reflects an income tax effect calculated at a statutory rate of approximately 22%.

Disclaimer

Evergy Inc. published this content on May 08, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 08, 2025 at 11:10 UTC.