Avista Corp. Reports Financial Results for First Quarter 2013
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"Utility earnings were above our expectations for the first quarter of 2013, resulting from lower operating costs during the quarter.
"Based on current snowpack levels and recent precipitation, we expect normal hydroelectric generation for the year. In addition, net power supply costs, including natural gas fuel prices, are below the level included in base rates, all of which benefits both customers and shareholders.
"In March, the
"Ecova had a solid first quarter and is on track to meet expectations for the year with increased revenues. These come as a result of demand for new services and increased volumes in expense and data management services and energy management services.
"Overall we are off to a good start for 2013, and we are pleased with our first quarter results. Therefore, we are confirming our consolidated earnings guidance for the year," Morris said.
Summary Results:
($ in thousands, except per-share data) | Q1 2013 | Q1 2012 | ||||||
Operating Revenues | $ | 482,906 | $ | 452,257 | ||||
Income from Operations | $ | 85,062 | $ | 76,394 | ||||
Net Income attributable to Avista Corporation Shareholders | $ | 42,341 | $ | 38,388 | ||||
Net Income (Loss) attributable to Avista Corporation Shareholders by Business Segment: | ||||||||
Avista Utilities | $ | 42,250 | $ | 39,477 | ||||
Ecova | $ | 1,198 | $ | (826 | ) | |||
Other | $ | (1,107 | ) | $ | (263 | ) | ||
Earnings (Loss) per diluted share by Business Segment attributable to Avista Corporation Shareholders: | ||||||||
Avista Utilities | $ | 0.71 | $ | 0.67 | ||||
Ecova | $ | 0.02 | $ | (0.01 | ) | |||
Other | $ | (0.02 | ) | $ | (0.01 | ) | ||
Total earnings per diluted share attributable to Avista Corporation Shareholders | $ | 0.71 | $ | 0.65 | ||||
The increase in quarterly utility earnings was primarily due to an increase in gross margin (operating revenues less resource costs) resulting from general rate increases in
The increase in quarterly earnings for Ecova was primarily due to increased revenue associated with new services and increases in expense and data management services and energy management services (due to higher volumes). This was partially offset by increased depreciation and amortization and slightly higher other operating expenses.
In our other businesses, the decrease in quarterly earnings was primarily the result of an impairment loss, increased costs associated with exploring strategic opportunities, and increased litigation costs related to the previous operations of Avista Energy. These losses were partially offset by positive earnings at METALfx.
Electric revenues increased
Retail electric revenues decreased primarily due to a decrease in revenue per megawatt-hour (MWh) and a decrease in total MWhs sold. The decrease in revenue per MWh decreased retail revenue by
Wholesale electric revenues increased due to an increase in sales volumes and an increase in sales prices.
When electric wholesale market prices are below the cost of operating our natural gas-fired thermal generating units, we sell the natural gas purchased for the generation of electricity into the wholesale market rather than operate the generating units. The revenues from sales of fuel increased due to an increase in sales of natural gas fuel as part of thermal generation resource optimization activities, as well as an increase in natural gas prices.
Other electric revenues increased
Utility resource costs increased
Natural gas revenues increased
Retail natural gas revenues decreased
Wholesale natural gas revenues increased
Intracompany revenues and resource costs represent purchases and sales of natural gas between our natural gas distribution operations and our electric generation operations (as fuel for our generation plants). These transactions are eliminated in the presentation of total results for
Utility depreciation and amortization increased
Taxes other than income taxes increased
Ecova: For the first quarter of 2013, Ecova's revenues increased
Ecova's total operating expenses increased
Ecova's other operating expenses associated with cost of services increased
As of
Other Businesses: The net loss from these operations was
Liquidity and Capital Resources: We have a
There are
As of
Utility capital expenditures were
Ecova has a
2013 Earnings Guidance and Outlook
Avista is confirming its 2013 guidance for consolidated earnings to be in the range of
We continue to expect
For 2013, we continue to expect Ecova to contribute in the range of
We continue to expect the other businesses to be between a loss of
NOTE: We will host a conference call with financial analysts and investors on
This news release contains forward-looking statements, including statements regarding our current expectations for future financial performance and cash flows, capital expenditures, financing plans, our current plans or objectives for future operations and other factors, which may affect the company in the future. Such statements are subject to a variety of risks, uncertainties and other factors, most of which are beyond our control and many of which could have significant impact on our operations, results of operations, financial condition or cash flows and could cause actual results to differ materially from those anticipated in such statements.
The following are among the important factors that could cause actual results to differ materially from the forward-looking statements: weather conditions (temperatures, precipitation levels and wind patterns) which affect energy demand and electric generation, including the effect of precipitation and temperature on hydroelectric resources, the effect of wind patterns on wind-generated power, weather-sensitive customer demand, and similar impacts on supply and demand in the wholesale energy markets; state and federal regulatory decisions that affect our ability to recover costs and earn a reasonable return including, but not limited to, disallowance or delay in the recovery of capital investments and operating costs; changes in wholesale energy prices that can affect operating income, cash requirements to purchase electricity and natural gas, value received for wholesale sales, collateral required of us by counterparties on wholesale energy transactions and credit risk to us from such transactions, and the market value of derivative assets and liabilities; economic conditions in our service areas, including customer demand for utility services, as well as the effect of increased energy efficiency; our ability to obtain financing through the issuance of debt and/or equity securities, which can be affected by various factors including our credit ratings, interest rates and other capital market conditions and the global economy; the potential effects of legislation or administrative rulemaking, including possible effects on our generating resources of restrictions on greenhouse gas emissions to mitigate concerns over global climate changes; changes in actuarial assumptions, interest rates and the actual return on plan assets for our pension plan, which can affect future funding obligations, pension expense and pension plan liabilities; volatility and illiquidity in wholesale energy markets, including the availability of willing buyers and sellers, and prices of purchased energy and demand for energy sales; the outcome of pending regulatory and legal proceedings arising out of the "western energy crisis" of 2000 and 2001, including possible refunds; the outcome of legal proceedings and other contingencies; changes in, and compliance with, environmental and endangered species laws, regulations, decisions and policies, including present and potential environmental remediation costs; wholesale and retail competition including alternative energy sources, suppliers and delivery arrangements and the extent that new uses for our services may materialize; the ability to comply with the terms of the licenses for our hydroelectric generating facilities at cost-effective levels; severe weather or natural disasters that can disrupt energy generation, transmission and distribution, as well as the availability and costs of materials, equipment, supplies and support services; explosions, fires, accidents, mechanical breakdowns, or other incidents that may cause unplanned outages at any of our generation facilities, transmission and distribution systems or other operations; public injuries or damages arising from or allegedly arising from our operations; blackouts or disruptions of interconnected transmission systems (the regional power grid); disruption to information systems, automated controls and other technologies that we rely on for our operations, communications and customer service; terrorist attacks, cyber attacks or other malicious acts that may disrupt or cause damage to our utility assets or to the national economy in general, including any effects of terrorism, cyber attacks or vandalism that damage or disrupt information technology systems; delays or changes in construction costs, and/or our ability to obtain required permits and materials for present or prospective facilities; changes in the costs to implement new information technology systems and/or obstacles that impede our ability to complete such projects timely and effectively; changes in the long-term climate of the
For a further discussion of these factors and other important factors, please refer to our Annual Report on Form 10-K for the year ended
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Issued by:
AVISTA CORPORATION | ||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) | ||||||||||
(Dollars in Thousands except Per Share Amounts) | ||||||||||
First Quarter | ||||||||||
2013 | 2012 | |||||||||
Operating revenues | $ | 482,906 | $ | 452,257 | ||||||
Operating expenses: | ||||||||||
Utility resource costs | 229,630 | 211,012 | ||||||||
Other operating expenses (1) | 110,779 | 109,363 | ||||||||
Depreciation and amortization | 31,618 | 30,322 | ||||||||
Utility taxes other than income taxes (1) | 25,817 | 25,166 | ||||||||
Total operating expenses | 397,844 | 375,863 | ||||||||
Income from operations | 85,062 | 76,394 | ||||||||
Interest expense, net of capitalized interest | 18,870 | 18,752 | ||||||||
Other income - net (1) | (2,145 | ) | (1,709 | ) | ||||||
Income before income taxes | 68,337 | 59,351 | ||||||||
Income tax expense | 25,236 | 21,138 | ||||||||
Net income | 43,101 | 38,213 | ||||||||
Net loss (income) attributable to noncontrolling interests | (760 | ) | 175 | |||||||
Net income attributable to Avista Corporation shareholders | $ | 42,341 | $ | 38,388 | ||||||
Weighted-average common shares outstanding (thousands), basic | 59,866 | 58,581 | ||||||||
Weighted-average common shares outstanding (thousands), diluted | 59,898 | 58,950 | ||||||||
Earnings per common share attributable to Avista Corporation shareholders: | ||||||||||
Basic | $ | 0.71 | $ | 0.66 | ||||||
Diluted | $ | 0.71 | $ | 0.65 | ||||||
Dividends paid per common share | $ | 0.305 | $ | 0.29 | ||||||
Issued May 1, 2013 | ||||||||||
(1) | 2012 amounts include an immaterial correction of an error related to the reclassification of certain operating expenses from other income-net to other operating expenses and utility taxes other than income taxes. This correction did not have an impact on net income or earnings per share. |
AVISTA CORPORATION | ||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) | ||||||||
(Dollars in Thousands) | ||||||||
March 31, | December 31, | |||||||
2013 | 2012 | |||||||
Assets | ||||||||
Cash and cash equivalents | $ | 89,197 | $ | 75,464 | ||||
Accounts and notes receivable | 190,197 | 193,683 | ||||||
Investments and funds held for clients | 103,392 | 88,272 | ||||||
Other current assets | 124,228 | 148,375 | ||||||
Total net utility property | 3,053,488 | 3,023,716 | ||||||
Other non-current assets | 249,364 | 248,670 | ||||||
Regulatory assets for deferred income taxes | 72,946 | 79,406 | ||||||
Regulatory assets for pensions and other postretirement benefits | 301,725 | 306,408 | ||||||
Other regulatory assets | 128,483 | 129,164 | ||||||
Other deferred charges | 19,118 | 20,021 | ||||||
Total Assets | $ | 4,332,138 | $ | 4,313,179 | ||||
Liabilities and Equity | ||||||||
Accounts payable | $ | 161,503 | $ | 198,914 | ||||
Current portion of long-term debt | 50,354 | 50,372 | ||||||
Current portion of nonrecourse long-term debt of Spokane Energy | 15,309 | 14,965 | ||||||
Short-term borrowings | 52,500 | 52,000 | ||||||
Client fund obligations | 103,238 | 87,839 | ||||||
Other current liabilities | 196,879 | 172,059 | ||||||
Long-term debt | 1,178,766 | 1,178,367 | ||||||
Nonrecourse long-term debt of Spokane Energy | 13,872 | 17,838 | ||||||
Long-term debt to affiliated trusts | 51,547 | 51,547 | ||||||
Long-term borrowings under committed line of credit | 54,000 | 54,000 | ||||||
Regulatory liability for utility plant retirement costs | 237,967 | 234,128 | ||||||
Pensions and other postretirement benefits | 274,180 | 283,985 | ||||||
Deferred income taxes | 522,920 | 524,877 | ||||||
Other non-current liabilities and deferred credits | 106,395 | 110,215 | ||||||
Total Liabilities | 3,019,430 | 3,031,106 | ||||||
Redeemable Noncontrolling Interests | 7,970 | 4,938 | ||||||
Equity | ||||||||
Avista Corporation Stockholders' Equity: | ||||||||
Common stock (59,912,087 and 59,812,796 outstanding shares) | 891,759 | 889,237 | ||||||
Retained earnings and accumulated other comprehensive loss | 392,217 | 370,240 | ||||||
Total Avista Corporation Stockholders' Equity | 1,283,976 | 1,259,477 | ||||||
Noncontrolling interests | 20,762 | 17,658 | ||||||
Total Equity | 1,304,738 | 1,277,135 | ||||||
Total Liabilities and Equity | $ | 4,332,138 | $ | 4,313,179 | ||||
Issued May 1, 2013 | ||||||||
AVISTA CORPORATION | |||||||||
FINANCIAL AND OPERATING HIGHLIGHTS (UNAUDITED) | |||||||||
(Dollars in Thousands) | |||||||||
First Quarter | |||||||||
2013 | 2012 | ||||||||
Avista Utilities | |||||||||
Retail electric revenues | $ | 198,421 | $ | 201,240 | |||||
Retail kWh sales (in millions) | 2,402 | 2,405 | |||||||
Retail electric customers at end of period | 362,351 | 360,081 | |||||||
Wholesale electric revenues | $ | 40,094 | $ | 25,017 | |||||
Wholesale kWh sales (in millions) | 1,149 | 886 | |||||||
Sales of fuel | $ | 31,772 | $ | 25,043 | |||||
Other electric revenues | $ | 17,451 | $ | 4,756 | |||||
Retail natural gas revenues | $ | 121,216 | $ | 129,491 | |||||
Wholesale natural gas revenues | $ | 59,698 | $ | 44,340 | |||||
Transportation and other natural gas revenues | $ | 4,357 | $ | 3,669 | |||||
Total therms delivered (in thousands) | 345,734 | 336,588 | |||||||
Retail natural gas customers at end of period | 323,301 | 320,942 | |||||||
Intracompany revenues | $ | 41,432 | $ | 27,646 | |||||
Income from operations (pre-tax) (1) | $ | 82,751 | $ | 77,092 | |||||
Net income attributable to Avista Corporation shareholders | $ | 42,341 | $ | 38,388 | |||||
Ecova | |||||||||
Revenues | $ | 42,407 | $ | 37,010 | |||||
Income (loss) from operations (pre-tax) | $ | 2,924 | $ | (1,600 | ) | ||||
Net income attributable to Avista Corporation shareholders | $ | 1,198 | $ | (826 | ) | ||||
Other | |||||||||
Revenues | $ | 9,372 | $ | 9,787 | |||||
Income (loss) from operations (pre-tax) (1) | $ | (613 | ) | $ | 902 | ||||
Net loss attributable to Avista Corporation shareholders | $ | (1,107 | ) | $ | (263 | ) | |||
Issued May 1, 2013 | |||||||||
(1) | 2012 amounts include an immaterial correction of an error related to the reclassification of certain operating expenses from other expense-net to utility and non-utility other operating expenses and utility taxes other than income taxes. This correction did not have an impact on net income or earnings per share. |
Contact:
Media:
Jessie Wuerst
(509) 495-8578
jessie.wuerst@avistacorp.com
Investors:
(509) 495-2930
jason.lang@avistacorp.com
Avista 24/7 Media Access
(509) 495-4174
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