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Category Archives: Business
Evergy Evaluates Options
Evergy Affirms Board and Management’s Focus on Delivering
Long-Term Value Creation and Serving Stakeholders’ Best Interests
Updates Stakeholders Regarding Dialogue with Elliott Management
KANSAS CITY, Mo. – January 21, 2020 – Evergy, Inc. (NYSE: EVRG), a vertically integrated, regulated, investor-owned electric utility created by the merger of Westar Energy and Great Plains Energy in June of 2018, today issued the following statement regarding the dialogue the Company has had with Elliott Management Corporation (Elliott):
In October 2019, we were approached by Elliott, which proposed two alternative paths for the Company to consider:
- Evergy should immediately initiate a process to explore the sale of the Company or some other business combination;
- Evergy should significantly increase its capex over the Company’s current plan, cut investments in operations and maintenance (O&M) to help offset this increase, and halt its existing share repurchase program.
Since October, we have engaged in good faith with Elliott to fully understand and evaluate their proposals. As a part of this process, we have engaged Morgan Stanley as financial advisor and Morgan, Lewis & Bockius LLP as legal counsel to assist management and the Board with an evaluation of Elliott’s proposals and our strategic plan.
We are open to evaluating opportunities that may create greater value and recognize that Elliott has different views regarding our strategic plan. At the same time, there are various considerations that we believe are important when evaluating the conclusions that Elliott has asserted in its letter.
As expressed to Elliott, we are confident in our ability to deliver long-term growth and shareholder value creation through the execution of our strategic plan. This plan includes maximizing operational savings from our 2018 merger, the share repurchase program we committed to when this merger was completed, paying a competitive dividend and making capital investment that will drive value.
- We are executing on our operating plan and are achieving substantial cost savings. We are on track to exceed the $550 million of cumulative net cost savings targeted through 2023 in connection with the merger. These savings include $110 million of savings in 2019 alone – $80 million above our 2018 target. Notably, these savings are being achieved while protecting jobs; there have been no involuntary layoffs at the Company.
- Merger savings, share repurchases, dividends and infrastructure investments are contributing to sustainable earnings growth and competitive shareholder returns. At this time, given the regulatory considerations in Missouri and Kansas, we believe the greatest return opportunities for Evergy’s capital beyond our current investment plan are share repurchases and growing the Company’s dividend. Together with the Company’s merger savings and incremental infrastructure investments utilizing plant in-service accounting in Missouri, we expect to deliver compounded annual earnings growth of 5% to 7% through 2023.
- Evergy’s third quarter results demonstrate the strength of the Company and the value opportunity we offer to Evergy shareholders. We delivered another solid quarter, despite regulatory headwinds. Our confidence in the business and our financial strength is reflected in the confirmation of our 2019 adjusted EPS guidance of $2.80 to $3.00 and the 6.3% increase to our dividend, also consistent with our long-term guidance.
We remain open to continuing our dialogue with Elliott. As we consider any opportunity, we are resolute in our commitment to serving the best interests of all Evergy stakeholders, including our shareholders, employees, customers and the communities we serve.
The support of our regulators is very important, and we will maintain an open, collaborative dialogue with them as we – and they – consider Elliott’s views.
Morgan Stanley is acting as financial advisor and Morgan, Lewis & Bockius LLP is acting as legal advisor to the Company.
About Evergy, Inc.
Evergy, Inc. (NYSE: EVRG) provides clean, safe and reliable energy to 1.6 million customers in Kansas and Missouri. The 2018 combination of Kansas City Power and Light Company and Westar Energy to form Evergy created a leading energy company that provides value to shareholders and a stronger company for customers.
Evergy’s mission is to empower a better future. Today, half the power supplied to homes and businesses by Evergy comes from emission-free sources, creating more reliable energy with less impact to the environment. We will continue to innovate and adopt new technologies that give our customers better ways to manage their energy use.
For more information about Evergy, Inc., visit us at www.evergy.com.
New export assistance grant available to companies across Kansas
Topeka, Kan. – Companies based in the state of Kansas have a new tool to help them succeed in selling their goods or services to customers around the world. The Kansas Market Access Program (K-MAP) lowers the end-user cost of international market research, export documentation and foreign business partner meetings, so Kansas companies can reach more customers and close more deals.
Emerging out of the public-private partnership between the Kansas Department of Commerce and the Wichita-based Kansas Global Trade Services, K-MAP is made available as a one-time opportunity. Interested companies are encouraged to apply before June 30, 2020, in order to ensure access to grant funding.
“The needs of Kansas exporters vary greatly,” Secretary of Commerce David Toland said. “While Commerce already has a successful program designed to help companies participate in international trade shows (KITSAP), this new program provides assistance for a range of other activities vital to their success.”
Karyn Page, President & CEO of Kansas Global, adds, “We learned what works best when we implemented the state’s first export plan in Wichita. That’s why we asked the Kansas Legislature for this grant to be added to our contact. We found that having a flexible grant for companies to use is the sweetener they need to fast-track international sales.”
For more information about the Kansas Market Access Program and to apply online, visit kansascommerce.gov/k-map-application or kansasglobal.org.
Fort Scott Chamber: Encouraging Businesses
The Fort Scott Area Chamber of Commerce has been working to encourage entrepreneurship and matching skills to local employers’ needs in 2019, according to information provided during the Jan. 9 Chamber coffee.
Two new programs were added to the community this year: Bourbon County E-Community and Work Ready Community. The focus of the two is enhancing local economic development through entrepreneurship and workforce development.
Loans for Businesses Through Entrepreneur Community
Bourbon County E-Community provides access to funds, which are locally administered through the Chamber. These loans included start-up businesses as well as existing business purchases or expenses. The funds are accessed through NetWork Kansas, whose mission statement is to promote an entrepreneurial environment throughout the state that connects entrepreneurs and small business owners with expertise, education, and economic resources.
Those who have received these loans in Fort Scott from July 1 to Dec. 31:
Smallville Crossfit, an E-Community Loan of $40,000.
Luther’s BBQ, an E-Community Loan of $45,000.
Smallville Crossfit, a start-up loan of $25,000.
Lulther’s BBQ, a start-up loan of $30,000.
Margo’s LLC (a salon and spa), an E-Community Load of $39,000.
Other events in support of E-Community: a luncheon to educate on the loan program, an entrepreneur appreciation luncheon, a semi-monthly local newspaper ad promoting the loans, and planning for a Youth Entrepreneurship Challenge, in partnership with Fort Scott High School (judging for the challenge will be March 11, 2020.)
Work Ready Community
Work Ready Community is a nation-wide program to aid matching people to a job that needs their skills and preparing people to have the skills that employers need.
Work Ready Communities is working at the grassroots level to make the country more competitive and closing the skills gap that threatens to paralyze the U.S. economy, according to its website. They do this by providing a community-based framework.
To learn more: /https://www.workreadycommunities.org/
Bourbon County became a Work Ready Community in Sept. 2019.
A group of 10 people from Bourbon County, USD 234, USD235, Fort Scott Community College, the City of Uniontown and local employers attended a Work Ready Community Workshop in August 2019.
Kansas initiated an initiative for high school juniors to take the Work Keys test and earn certification. The certification is to improve hiring and employee retention, help provide employees who have the skills needed and help students attain success in landing a career.
To view the Chamber leadership this year,click below:
http://fortscott.com/board-of-directors
To see the Chamber sponsored events, view the flyer below:
To join the Chamber, click here:
http://fortscott.com/join-the-chamber
Ward Kraft Recruitment Day Jan. 25
CHC/SEK: Not Possible To Pursue Mercy Building Repurpose
The Community Health Center of Southeast Kansas (CHC/SEK) Board of Directors took no action today toward establishing a “medical mall” within the former Fort Scott Mercy Hospital. Prior to finalizing plans for the construction of a new primary care clinic, CHC/SEK had spent the past month assessing the feasibility of remaining in the existing building.
“It was our goal,” said CHC/SEK CEO Krista Postai, “to see if we could recruit enough occupants to cover the cost of repurposing the former hospital built in 2002 at the cost of $30 million.”
“After analyzing costs over the last year and projecting expenses if the building’s space was fully utilized, we estimated that we would need about $800,000 to $1 million annually to cover utilities and maintenance plus the staff to keep the building maintained and fully operational,” said Postai, adding the bulk of that expense would have to be covered by CHC/SEK and Ascension/Via Christi who together would occupy a large percentage of the overall building.
CHC/SEK staff met with multiple people and organizations to discuss their interest including officials from Fort Scott Community College who identified opportunities for space for their nursing department, as well as additional dormitory space. We were especially appreciative of the Bourbon County Commission who had pledged “in-kind” support to take care of mowing, snow removal, etc., as well as the Mercy Health System who had tentatively committed funds for needed and future repairs.
“Altogether, we had tentative commitments from about a half dozen interested in being a part of the project which covered about 100,000 sq. ft. of the 125,000 sq. ft. of available space,” said Postai, who explained the entire building is 177,000 sq. ft. but about 50,000 sq. ft. is dedicated to mechanical space that supports the overall building operations.
“That was assuming Ascension/Via Christi remained in the existing ER and Diagnostic Imaging area, and we continued to occupy the clinic space plus the pharmacy,” she said.
“Unfortunately, we were notified Wednesday that after analyzing their options, Ascension/Via Christi had determined to remain in the existing building on a permanent basis was cost-prohibitive, and it was more fiscally prudent to build a new ER,” said Postai.
“We were told the existing ER space would need about $3 million in renovations and that, plus a lease payment adequate to cover the cost of their share of the facility, would make it far more expensive than a new facility,” said Postai. The CHC/SEK Board was prepared to make a go/no go decision at their Board meeting Thursday but after learning that Ascension/Via Christi was moving forward on their own construction, the board determined it was not possible to pursue this project without them.
“We all have to make hard decisions about what is best for our organizations and, unfortunately, we all have limited funds and have to maximize our capital investments,” said Postai adding that both organizations remain committed to providing services in Ft. Scott.
Both CHC/SEK and Ascension/Via Christi had already started designing new facilities on the existing campus and will proceed on, said Postai explaining CHC/SEK was planning a 25,000 sq. ft. to 30,000 sq. ft. facility facing Horton Street at an estimated cost of about $5 million.
CHC/SEK: Not Possible to Pursue Mercy Building Repurpose
The Community Health Center of Southeast Kansas (CHC/SEK) Board of Directors took no action today toward establishing a “medical mall” within the former Fort Scott Mercy Hospital. Prior to finalizing plans for the construction of a new primary care clinic, CHC/SEK had spent the past month assessing the feasibility of remaining in the existing building.
“It was our goal,” said CHC/SEK CEO Krista Postai, “to see if we could recruit enough occupants to cover the cost of repurposing the former hospital built in 2002 at the cost of $30 million.”
“After analyzing costs over the last year and projecting expenses if the building’s space was fully utilized, we estimated that we would need about $800,000 to $1 million annually to cover utilities and maintenance plus the staff to keep the building maintained and fully operational,” said Postai, adding the bulk of that expense would have to be covered by CHC/SEK and Ascension/Via Christi who together would occupy a large percentage of the overall building.
CHC/SEK staff met with multiple people and organizations to discuss their interest including officials from Fort Scott Community College who identified opportunities for space for their nursing department, as well as additional dormitory space. We were especially appreciative of the Bourbon County Commission who had pledged “in-kind” support to take care of mowing, snow removal, etc., as well as the Mercy Health System who had tentatively committed funds for needed and future repairs.
“Altogether, we had tentative commitments from about a half dozen interested in being a part of the project which covered about 100,000 sq. ft. of the 125,000 sq. ft. of available space,” said Postai, who explained the entire building is 177,000 sq. ft. but about 50,000 sq. ft. is dedicated to mechanical space that supports the overall building operations.
“That was assuming Ascension/Via Christi remained in the existing ER and Diagnostic Imaging area, and we continued to occupy the clinic space plus the pharmacy,” she said.
“Unfortunately, we were notified Wednesday that after analyzing their options, Ascension/Via Christi had determined to remain in the existing building on a permanent basis was cost-prohibitive, and it was more fiscally prudent to build a new ER,” said Postai.
“We were told the existing ER space would need about $3 million in renovations and that, plus a lease payment adequate to cover the cost of their share of the facility, would make it far more expensive than a new facility,” said Postai. The CHC/SEK Board was prepared to make a go/no go decision at their Board meeting Thursday but after learning that Ascension/Via Christi was moving forward on their own construction, the board determined it was not possible to pursue this project without them.
“We all have to make hard decisions about what is best for our organizations and, unfortunately, we all have limited funds and have to maximize our capital investments,” said Postai adding that both organizations remain committed to providing services in Ft. Scott.
Both CHC/SEK and Ascension/Via Christi had already started designing new facilities on the existing campus and will proceed on, said Postai explaining CHC/SEK was planning a 25,000 sq. ft. to 30,000 sq. ft. facility facing Horton Street at an estimated cost of about $5 million.
Independent Medical Laboratory Coming to Fort Scott Feb. 3
Mag-Lab, an independent medical laboratory, headquartered in Pittsburg, KS will be opening a Fort Scott satellite office on Feb. 3, 2020.
The office will be located in the building just north of Subway Restaurant at 1711 S. National, Suite C2.
Hours are 7 a.m. to noon, Monday through Friday.
For more information contact: 620-232-1900.
With specimens taken that morning , the results will be delivered to the doctor that afternoon.
“Complicated testing we send off to a reference lab,” Phlebotomist Sharon Newell said.
“If it’s a body fluid, we can test it,” Newell said.
“We can have anybody out in a few minutes,” she said. “There is not a lot of paperwork hassle. You have to have a doctor’s script if going through insurance.”
Gary and Jeannie Petersen are the owners of the lab.
When one enters the lobby of the set of offices, there is a doorbell on the wall for contacting each of the personnel in the offices.
Currently, Mag-Lab is the only renter, but two more are on the horizon.
Dr. Elias Tawil is the medical director of the lab.
Chamber Coffee at Compassion Ministries Jan. 16
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Boiler Room Brewhaus: A Little Different
Barbara Ritter, owner of Boiler Room Brewhaus at 2 S. National, has been extra busy since the new year began.
Her sister, Peggy, is a co-owner with Barbara and her husband, Bryan is the brewer.
Bryan and Barbara were doing the final touches of a recent reno last week.
Fort Scott’s first microbrewery is located on the busy corner of Wall Street and National Ave. The Ritter’s feature beer tastings, by the glass and take out.
Since having the business rebranded in the fall, they realized they needed to take some time to do some new things in the microbrewery.
They have expanded their tap selection.
“We are going to have six of our brews on at a time,” Barbara said. “We have been canning our beer since fall.”
They have been doing some decorative changes as well.
“Basically, we did a lot of painting,” Barbara said. “Walls, doors, vanities, tables…in nostalgic colors.”
Since the building was built in 1960, “we have added some elements from that time period,” to the decor, she said.
The Ritters are looking for vintage photos of the Downtowner Hotel, which now houses the microbrewery.
“If anyone has any vintage photos of the Downtowner or people, that they would be willing to share…to purchase or display,” Ritter said, please contact them at 913.636.4892 or 620-644-5032.
“This building was completed in February 1960,” she said.
The Ritter’s moved their business to the new site at the corner of National Avenue and Wall Street on June 1, 2018.
The old logo is gone and has been replaced with nostalgic ones:
Though the microbrewery doesn’t serve meals, they have menus from restaurants where people can order food and have it delivered or can bring it into the Brewhaus, she said.
“There is also a $5 taco bar catered by Crooner’s Lounge on Thursdays, $5 and you can eat all the tacos you want,” Barabara said.
They will also be offering some new appetizers.
Each Friday is karaoke from 7-9 p.m., and Sundays there are team trivia games from 5-7 p.m.
“We are looking to add a music bingo game, possibly on Saturday evenings,” she said. “We will try it once to see how it goes.”
“We are hoping to have musicians coming once a month,” she said. “There are three in the works so far for the next couple of months.”
Currently, they have four part-time employees and two full-time.
“We are looking for one more part-time, one day a week,” she said. “Possibly an older employee with a good work ethic, who is looking for something to do.”
“We’ve had a really good year,” Barbara said. “Almost one-half of customers are new to Fort Scott. Fifty-one percent are local people.. We have a variety of people of all ages.”
“People say this is a cool little town,” she said. “This town has a lot to offer.”
Downtown Meet and Greet Jan. 28
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Bourbon County Commissioner Answers Questions on Raises
Bourbon County Commissioners are trying to close the gap in wages for its’ elected officials, according to chairman Lynne Oharah.
Recently the commission raised four elected officials earnings with a combined total of $46,000.
At the Dec. 17, 2019 county commission meeting Ohara made a motion to approve a salary resolution for elected officials effective Dec. 15, 2019, according to commission minutes. This raised the clerk and treasurer’s salary to $47,248 annually, the register of deeds to 44,821 and the sheriff’s salary to $60,000. Commissioner Jeff Fisher seconded and all commissioners approved.
Ohara then made a motion approving a wage resolution for Bourbon County employees changing the following: the salary for the correctional center captain, the emergency preparedness director and the deputy county appraiser were raised to $35,568 annually to comply with the U.S. Dept. Of Labor standards for salaried employees. A Maintenance 5 position was added at a rate of $17.47 per hour. Commissioner Nick Ruhl seconded and all were in favor of those changes. The economic development director’s salary was changed to $70,000 a year on the same resolution.
Ohara made a motion to approve changing her salary to $70,000. He said that if Bourbon County gets an administrative fee from Phase 2 of the Healthy Bourbon County Grant then part of the $70,000 salary would be subsidized from the grant, Fisher seconded this motion, Ruhl voted against this motion, and the motion passed.
The following is an interview with Bourbon County Commissioner Lynn Oharah.
He started with a history of the raises.
“In 2015, Sheriff Martin contracted an agency to do a wage study to compare Bourbon County wages with other comparable counties because he thought there was a large wage disparity between Bourbon County employees and other like counties,” Commissioner Oharah said. “The county commissioners also accessed Kansas county wage information from the ks.gov website. The results indicated that Bourbon County wages were significantly behind our peers. The commissioners resolved to address these wage disparities and devised a plan to increase FTE (Full Time equivalent) positions first and address the next positions that had the most wage disparity, which happened to be the elected officials. Along with this effort we wanted to incentivize employees to continue working for the county and we did this by approving a $100 per year of service longevity pay increase.”
Where did the money come from to give the raises?
“We gave four elected officials raises when combined totaled $46,000.00. This money came from most of the departments managing their budgets and workforce which created a carryover from the 2015 and forward budget years. These wage increases did not increase the mill levy and this carryover gave us the resources to create a competitive wage with our peers although Bourbon County wages are still on the low side.”
What is the justification for the doubling of the earnings of the Bourbon County Economic Development Director?
“This position was initially created to see how the position could help the county,” Oharah said. “It was created with a minimum of 20 hours of work per week at $35,000 annual salary and we would look at the performance and scope to see if we needed to increase the hours and wages.”
“Our economic developer has been a great asset and for the first six months spent a lot of time helping get the Bourbon County Ambulance Service up and running along with the other duties.”
“Since then all Bourbon County businesses and government entities have been contacted and surveyed to address their needs and identify what’s important to them. Also, new businesses have been guided through the process of starting a business, grants have been written, the County NRP program has been implemented and coordinated under economic development. Meetings and plans regarding healthcare are ongoing with economic development highly involved. This is just naming a few projects that are ongoing and the time spent well exceeds what was required.”
“Based on the need, the commission voted to increase the economic development salary and scope. The salary was based on what was being paid to other economic development directors in our surrounding market and the Bourbon County Economic Development budget is still lower than most of our competitive counties.”
“Bourbon County needs to grow and prosper and we cannot get there by doing the same thing that we have been doing for the last 100 years,” Oharah said.
The commission meets on Tuesdays at 9 a.m. at the courthouse.
To contact Ohara: 620-223-3800, ext 110; Fisher at ext. 112 and Ruhl at ext. 111.