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Avista
🇺🇸 NYSE:AVA
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Dec 31, 2020

Avista Q4 2020 Earnings Report

Avista Corp. reported increased net income and earnings per share for Q4 2020 compared to Q4 2019.

Key Takeaways

Avista Corp. reported net income attributable to Avista Corp. shareholders of $58.7 million, or $0.85 per diluted share, for the fourth quarter of 2020, compared to $50.8 million, or $0.76 per diluted share for the fourth quarter of 2019. The company is initiating its 2021, 2022, and 2023 earnings guidance with consolidated ranges of $1.96 to $2.16 per diluted share in 2021, $2.18 to $2.38 per diluted share in 2022, and $2.42 to $2.62 per diluted share in 2023.

Net income attributable to Avista Corp. shareholders was $58.7 million for Q4 2020, compared to $50.8 million for Q4 2019.

Earnings per diluted share were $0.85 for Q4 2020, compared to $0.76 for Q4 2019.

Avista Utilities earnings were better than expectations due to higher utility margin and lower income taxes, partially offset by higher operating expenses.

AEL&P’s earnings exceeded expectations due to higher sales volumes to residential customers resulting from cooler weather than the prior year and lower operating costs resulting from COVID-19 related operational restrictions.

Total Revenue
$368M
Previous year: $353M
+4.2%
EPS
$0.85
Previous year: $0.76
+11.8%
Gross Profit
$258M
Previous year: $249M
+3.8%
Cash and Equivalents
$14.2M
Previous year: $9.9M
+43.5%
Free Cash Flow
-$58M
Previous year: -$63.8M
-9.1%
Total Assets
$6.4B
Previous year: $6.08B
+5.3%

Avista

Avista

Avista Revenue by Segment

Forward Guidance

Avista Corp. is initiating its 2021, 2022, and 2023 earnings guidance with consolidated ranges of $1.96 to $2.16 per diluted share in 2021, $2.18 to $2.38 per diluted share in 2022, and $2.42 to $2.62 per diluted share in 2023.

Positive Outlook

  • Timely and appropriate rate relief in our jurisdictions is assumed.
  • Filed general rate cases in Washington and Oregon.
  • Filed general rate cases in Idaho in January of 2021.
  • Expect these cases to provide rate relief in 2021 and start reducing regulatory lag.
  • Anticipate a return to 4 to 6 percent growth following 2023.

Challenges Ahead

  • Experienced regulatory lag during 2020 and expect this to continue through the end of 2022.
  • Unrecovered structural costs estimated to reduce the return on equity by approximately 70 basis points.
  • Regulatory timing lag estimated to reduce the return on equity by approximately 100 basis points.
  • Expect to experience increased costs in 2021 associated with exploring strategic business opportunities.
  • Cannot predict the duration and severity of the COVID-19 global pandemic.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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