Avista (AVA) Q4 2000 earnings summary

Executive summary

• FY2000 diluted EPS was $1.47 vs. $0.12 in 1999, as Energy Trading and Marketing swung to strong earnings while utility operations absorbed sharply higher power costs.

• Net income was $91.7M; income available for common stock was $67.9M after $23.7M of preferred stock dividend requirements.

Financial highlights

• Consolidated operating revenue was $7.911B vs. $7.905B in 1999; operating income rose to $203.4M from $31.4M.

• Net income increased to $91.7M from $26.0M; diluted EPS was $1.47 vs. $0.12.

• Utility operating revenue increased 36%, but purchased power expense rose $529.0M, or 97%, as average purchased power prices climbed 132%.

• A one-time $21.3M preferred-stock conversion charge affected 2000 preferred dividend requirements; Centralia's sale contributed a $9.0M after-tax gain, with $28.2M of the total gain deferred for customers.

Outlook and guidance

• 2001 utility electric and natural gas earnings were projected at $0.90-$1.00 per share; consolidated EPS could be significantly lower due to reduced trading earnings and continued technology investment.

• 2001 hydro streamflows were forecast at 60% of normal; fixed-price purchases covered essentially all forecast electric requirements, with higher costs possible if water, plant availability or weather worsened.

• Utility load growth forecasts for the next five years: electricity 2.6% annually; natural gas 2.7% in Washington and Idaho and 3.4% in Oregon and South Lake Tahoe.

• Utility capital expenditures were projected at $478M for 2001-2003, alongside $348M of long-term debt maturities and preferred sinking fund requirements.