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Avista
🇺🇸 NYSE:AVA
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Mar 31, 2020

Avista Q1 2020 Earnings Report

Reported net income attributable to Avista Corp. shareholders and revised 2020 earnings guidance.

Key Takeaways

Avista Corp. reported a decrease in net income for Q1 2020 compared to Q1 2019, primarily due to the impact of Washington regulatory decisions and increased operating costs. The company is lowering its consolidated earnings guidance for the year to reflect regulatory items, expected net impacts from COVID-19, and losses at its non-utility businesses.

Net income attributable to Avista Corp. shareholders was $48.4 million, or $0.72 per diluted share for Q1 2020, compared to $115.8 million, or $1.76 per diluted share for Q1 2019.

Consolidated earnings were below expectations due to the impact of Washington regulatory decisions, as well as increased operating costs.

The company is lowering its consolidated earnings guidance for the year to a range of $1.75 to $1.95 per diluted share.

COVID-19 is impacting all aspects of the business, with expectations of decreased retail loads and payments from customers.

Total Revenue
$377M
Previous year: $378M
-0.1%
EPS
$0.72
Previous year: $1.76
-59.1%
Gross Profit
$261M
Previous year: $259M
+0.6%
Cash and Equivalents
$18.9M
Previous year: $14.9M
+27.3%
Free Cash Flow
$39.7M
Previous year: $103M
-61.5%
Total Assets
$6.17B
Previous year: $5.89B
+4.8%

Avista

Avista

Avista Revenue by Segment

Forward Guidance

Avista Corp. is lowering its 2020 earnings guidance to a consolidated range of $1.75 to $1.95 per diluted share.

Positive Outlook

  • Efforts to identify cost reduction opportunities are expected to mostly offset COVID-19 impacts at Avista Utilities.
  • Filed for deferred accounting treatment of net COVID-19 expenses in each jurisdiction.
  • Expects to be in a benefit position under the ERM within the 90 percent customer/10 percent Company sharing band, which is expected to add $0.07 per diluted share.
  • Filed a general rate case in Oregon in March 2020.
  • Anticipate filing in Washington and Idaho in the fourth quarter of 2020.

Challenges Ahead

  • Revised guidance includes $0.10 per diluted share of expenses recorded in the first quarter related to Washington Commission orders.
  • Revised guidance includes $0.02 per diluted share for COVID-19 at Avista Utilities.
  • Lowering guidance for AEL&P by $0.01 per diluted share.
  • Lowering guidance for the other businesses by $0.07 per diluted share.
  • Extended the estimated timeframe of earning close to authorized rates of return from 2022 to 2023 due to the expected economic recession and anticipated delays in rate case filings as a result of COVID-19.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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