UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): May 4, 2007
AVISTA CORPORATION
(Exact name of registrant as specified in its charter)
| Washington | 1-3701 | 91-0462470 | ||
| (State or other jurisdiction of incorporation) |
(Commission File Number) | (I.R.S. Employer Identification No.) |
| 1411 East Mission Avenue, Spokane, Washington | 99202-2600 | |
| (Address of principal executive offices) | (Zip Code) |
| Registrant’s telephone number, including area code: | 509-489-0500 | |
| Web site: http://www.avistacorp.com |
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| ¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Section 2 – Financial Information
| Item 2.02 | Results of Operations and Financial Condition. |
The information in this report shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference in such filing.
On May 4, 2007, Avista Corporation (Avista Corp.) issued a press release reporting its earnings for the first quarter of 2007. A copy of the press release is furnished as Exhibit 99.1.
Section 9 – Financial Statements and Exhibits
| Item 9.01 | Financial Statements and Exhibits. |
| (d) | Exhibits |
| 99.1 | Press release dated May 4, 2007, which is being furnished pursuant to Item 2.02. |
Neither the furnishing of any press release as an exhibit to this Current Report nor the inclusion in such press releases of a reference to Avista Corp.’s Internet address shall, under any circumstances, be deemed to incorporate the information available at such Internet address into this Current Report. The information available at Avista Corp.’s Internet address is not part of this Current Report or any other report furnished or filed by Avista Corp. with the Securities and Exchange Commission.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| AVISTA CORPORATION | ||||
| (Registrant) | ||||
| Date: May 4, 2007 | /s/ Malyn K. Malquist | |||
| Malyn K. Malquist | ||||
| Executive Vice President and Chief Financial Officer | ||||
Exhibit 99.1
Contact:
Media: Jessie Wuerst (509) 495-8578 jessie.wuerst@avistacorp.com
Investors: Jason Lang (509) 495-2930 jason.lang@avistacorp.com
Avista 24/7 Media Access (509) 495-4174
Avista Corp. Reports Final First Quarter 2007 Results
SPOKANE, Wash. – May 4, 2007, 4:05 a.m. PDT: Avista Corp. (NYSE: AVA) today reported its final results for the first quarter of 2007, which were consistent with preliminary results reported on April 18, 2007. Avista Corp. had net income of $14.1 million, or $0.26 per diluted share, for the first quarter of 2007, as compared to $31.6 million, or $0.64 per diluted share, for the first quarter of 2006.
Results for the first quarter of 2007 as compared to the first quarter of 2006:
| ($ in thousands, except per-share data) |
Q1 2007 | Q1 2006 | ||||||
| Operating Revenues |
$ | 459,187 | $ | 499,202 | ||||
| Income from Operations |
$ | 38,937 | $ | 70,938 | ||||
| Net Income |
$ | 14,094 | $ | 31,572 | ||||
| Net Income (Loss) by Business Segment: |
||||||||
| Avista Utilities |
$ | 19,927 | $ | 26,172 | ||||
| Energy Marketing & Resource Management |
$ | (7,623 | ) | $ | 5,046 | |||
| Advantage IQ |
$ | 1,584 | $ | 1,427 | ||||
| Other |
$ | 206 | $ | (1,073 | ) | |||
| Contribution to earnings per diluted share by Business Segment: |
||||||||
| Avista Utilities |
$ | 0.37 | $ | 0.53 | ||||
| Energy Marketing & Resource Management |
$ | (0.14 | ) | $ | 0.10 | |||
| Advantage IQ |
$ | 0.03 | $ | 0.03 | ||||
| Other |
$ | — | $ | (0.02 | ) | |||
| Total earnings per diluted share |
$ | 0.26 | $ | 0.64 | ||||
As announced on April 17, 2007, we have entered into an agreement to sell substantially all of Avista Energy’s contracts and ongoing operations to Coral Energy Holding, L.P., a subsidiary of Shell, and certain of Coral Energy’s subsidiaries. Completion of this transaction will effectively end the majority of the operations of the Energy Marketing and Resource Management business segment. We have made all of the necessary regulatory filings related to this transaction.
The attached condensed consolidated statements of income, condensed consolidated balance sheets, and financial and operating highlights are integral parts of this news release.
Avista Corp. is an energy company involved in the production, transmission and distribution of energy as well as other energy-related businesses. Avista Utilities is our operating division that provides service to 346,000 electric and 306,000 natural gas customers in three Western states. Our non-regulated subsidiaries include Advantage IQ and Avista Energy. Our stock is traded under the ticker symbol “AVA.” For more information about Avista, please visit www.avistacorp.com.
Avista Corp. and the Avista Corp. logo are trademarks of Avista Corporation.
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AVISTA CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(Dollars in Thousands except Per Share Amounts)
| First Quarter | ||||||||
| 2007 | 2006 | |||||||
| Operating revenues |
$ | 459,187 | $ | 499,202 | ||||
| Operating expenses: |
||||||||
| Resource costs |
307,713 | 321,732 | ||||||
| Other operating expenses |
66,177 | 62,038 | ||||||
| Depreciation and amortization |
22,365 | 22,428 | ||||||
| Utility taxes other than income taxes |
23,995 | 22,066 | ||||||
| Total operating expenses |
420,250 | 428,264 | ||||||
| Income from operations |
38,937 | 70,938 | ||||||
| Other income (expense): |
||||||||
| Interest expense, net of capitalized interest |
(21,067 | ) | (23,324 | ) | ||||
| Other income—net |
3,711 | 2,475 | ||||||
| Total other income (expense)—net |
(17,356 | ) | (20,849 | ) | ||||
| Income before income taxes |
21,581 | 50,089 | ||||||
| Income taxes |
7,487 | 18,517 | ||||||
| Net income |
$ | 14,094 | $ | 31,572 | ||||
| Weighted-average common shares outstanding (thousands), basic |
52,684 | 48,795 | ||||||
| Weighted-average common shares outstanding (thousands), diluted |
53,322 | 49,305 | ||||||
| Total earnings per common share, basic |
$ | 0.27 | $ | 0.65 | ||||
| Total earnings per common share, diluted |
$ | 0.26 | $ | 0.64 | ||||
| Dividends paid per common share |
$ | 0.145 | $ | 0.140 | ||||
Issued May 4, 2007
AVISTA CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(Dollars in Thousands)
| March 31, 2007 |
December 31, 2006 | |||||
| Assets |
||||||
| Cash and cash equivalents |
$ | 56,974 | $ | 28,242 | ||
| Restricted cash |
26,237 | 29,903 | ||||
| Accounts and notes receivable |
258,932 | 286,150 | ||||
| Current energy commodity derivative assets |
— | 343,726 | ||||
| Assets held for sale |
600,962 | 3,543 | ||||
| Other current assets |
259,920 | 340,710 | ||||
| Total net utility property |
2,232,774 | 2,215,037 | ||||
| Non-utility properties and investments-net |
59,955 | 60,301 | ||||
| Non-current energy commodity derivative assets |
— | 313,300 | ||||
| Other property and investments-net |
60,653 | 60,030 | ||||
| Regulatory assets for deferred income taxes |
104,718 | 105,935 | ||||
| Regulatory assets for pensions and other postretirement benefits |
53,555 | 54,192 | ||||
| Other regulatory assets |
31,578 | 31,752 | ||||
| Non-current utility energy commodity derivative assets |
16,418 | 25,575 | ||||
| Power and natural gas deferrals |
84,110 | 97,792 | ||||
| Unamortized debt expense |
44,895 | 46,554 | ||||
| Other deferred charges |
12,948 | 13,766 | ||||
| Total Assets |
$ | 3,904,629 | $ | 4,056,508 | ||
| Liabilities and Stockholders’ Equity |
||||||
| Accounts payable |
$ | 243,910 | $ | 286,099 | ||
| Current energy commodity derivative liabilities |
— | 313,499 | ||||
| Current portion of long-term debt |
14,607 | 26,605 | ||||
| Current portion of preferred stock (subject to mandatory redemption) |
26,250 | 26,250 | ||||
| Short-term borrowings |
— | 4,000 | ||||
| Liabilities held for sale |
574,372 | — | ||||
| Other current liabilities |
248,947 | 288,756 | ||||
| Long-term debt |
950,053 | 949,854 | ||||
| Long-term debt to affiliated trusts |
113,403 | 113,403 | ||||
| Non-current energy commodity derivative liabilities |
— | 309,990 | ||||
| Regulatory liability for utility plant retirement costs |
200,665 | 197,712 | ||||
| Pensions and other postretirement benefits |
98,239 | 100,033 | ||||
| Deferred income taxes |
430,393 | 461,006 | ||||
| Other non-current liabilities and deferred credits |
76,516 | 62,455 | ||||
| Total Liabilities |
2,977,355 | 3,139,662 | ||||
| Common stock—net (52,736,534 and 52,514,326 outstanding shares) |
717,938 | 715,620 | ||||
| Retained earnings and accumulated other comprehensive loss |
209,336 | 201,226 | ||||
| Total Stockholders’ Equity |
927,274 | 916,846 | ||||
| Total Liabilities and Stockholders’ Equity |
$ | 3,904,629 | $ | 4,056,508 | ||
Issued May 4, 2007
AVISTA CORPORATION
FINANCIAL AND OPERATING HIGHLIGHTS
(Dollars in Thousands)
| First Quarter | ||||||||
| 2007 | 2006 | |||||||
| Avista Utilities |
||||||||
| Retail electric revenues |
$ | 151,860 | $ | 145,394 | ||||
| Retail kWh sales (in millions) |
2,377 | 2,292 | ||||||
| Retail electric customers at end of period |
345,907 | 339,281 | ||||||
| Wholesale electric revenues |
$ | 26,308 | $ | 39,152 | ||||
| Wholesale kWh sales (in millions) |
342 | 474 | ||||||
| Sales of fuel |
$ | 8,143 | $ | 30,937 | ||||
| Other electric revenues |
$ | 3,857 | $ | 6,525 | ||||
| Retail natural gas revenues |
$ | 177,573 | $ | 166,961 | ||||
| Wholesale natural gas revenues |
$ | 43,534 | $ | 31,215 | ||||
| Transportation and other natural gas revenues |
$ | 2,991 | $ | 3,106 | ||||
| Total therms delivered (in thousands) |
246,734 | 221,623 | ||||||
| Retail natural gas customers at end of period |
305,821 | 298,765 | ||||||
| Income from operations (pre-tax) |
$ | 50,154 | $ | 62,912 | ||||
| Net income |
$ | 19,927 | $ | 26,172 | ||||
| Energy Marketing and Resource Management |
||||||||
| Gross margin (operating revenues less resource costs) |
$ | (8,318 | ) | $ | 11,415 | |||
| Realized gross margin |
$ | 12,615 | $ | 5,275 | ||||
| Unrealized gross margin |
$ | (20,933 | ) | $ | 6,140 | |||
| Income (loss) from operations (pre-tax) |
$ | (13,581 | ) | $ | 6,320 | |||
| Net income (loss) |
$ | (7,623 | ) | $ | 5,046 | |||
| Electric sales (millions of kWhs) |
4,344 | 6,979 | ||||||
| Natural gas sales (thousands of dekatherms) |
26,890 | 50,162 | ||||||
| Advantage IQ |
||||||||
| Revenues |
$ | 10,999 | $ | 9,076 | ||||
| Income from operations (pre-tax) |
$ | 2,576 | $ | 2,398 | ||||
| Net income |
$ | 1,584 | $ | 1,427 | ||||
| Other |
||||||||
| Revenues |
$ | 4,513 | $ | 5,294 | ||||
| Loss from operations (pre-tax) |
$ | (212 | ) | $ | (692 | ) | ||
| Net income (loss) |
$ | 206 | $ | (1,073 | ) | |||
Issued May 4, 2007