Avista (AVA) Q4 2001 earnings summary

Executive summary

• 2001 was marked by record-low hydro generation, high-cost wholesale power purchases and industry turmoil; energy and gas cash outlays exceeded customer-rate recoveries by $265 million.

• Net income was $12.2 million on $6.01 billion revenue; regulatory actions supported recovery of deferred power costs and efforts to restore financial stability.

Financial highlights

• Revenue was $6.010 billion in 2001 vs. $7.906 billion in 2000; operating income was $169.3 million vs. $217.1 million.

• Income from continuing operations was $59.6 million vs. $101.1 million; diluted continuing-operations EPS was $1.20 vs. $1.67.

• Net income was $12.2 million vs. $91.7 million; diluted EPS was $0.20 vs. $1.47, including discontinued-operations losses of $47.4 million and $9.4 million, respectively.

• Cash used in continuing operating activities was $93.3 million in 2001 vs. $84.1 million provided in 2000; year-end cash was $171.2 million.

Outlook and guidance

• 2002 utility cash flow, defined as EBITDA adjusted for electric and gas deferrals, was projected at $300 million vs. a $68 million loss in 2001; projection assumes recovery through gas trackers and electric surcharges.

• Planned capital-expenditure reductions, recovery of deferred power costs and added generation were expected to improve cash flow and reduce exposure to wholesale price fluctuations.

• 2002 supply outlook improved through added resources, conservation and reduced loads, with a cushion for low hydro generation or plant outages under normal conditions.

• Five fuel-cell products were planned for 2002, expanding from two models in 2001; outage management software was also scheduled for broader deployment.