Avista Corp. Reports Financial Results for the Third Quarter of 2024
Quarterly results demonstrate continued improvement at core utility from 2023
Expect to be at the low end of Avista Utilities guidance range
Lowering earnings guidance for our other businesses due to lower than expected investment valuations
SPOKANE, Wash., Nov. 06, 2024 (GLOBE NEWSWIRE) -- Avista Corp. (NYSE:AVA) today announced financial results for the third quarter of 2024. Net income and earnings per diluted share for the third quarter and year-to-date 2024 compared to the same periods in 2023 are presented in the table below (dollars in thousands, except per-share data):
Third Quarter
Year-to-Date
2024
2023
2024
2023
Net Income (Loss) by Business Segment:
Avista Utilities
$
19,803
$
13,498
$
111,246
$
83,935
AEL&P
41
288
5,061
5,689
Other
(1,357
)
930
(3,467
)
(2,579
)
Total net income
$
18,487
$
14,716
$
112,840
$
87,045
Earnings (Loss) per Diluted Share by Business Segment:
Avista Utilities
$
0.25
$
0.18
$
1.42
$
1.10
AEL&P
—
—
0.06
0.07
Other
(0.02
)
0.01
(0.04
)
(0.03
)
Total earnings per diluted share
$
0.23
$
0.19
$
1.44
$
1.14
"Our consolidated financial results reflect continued improvement from 2023. With headwinds from higher than expected power supply, medical and bad debt costs, and ongoing legal expenses, we expect to be at the low end of the Avista Utilities guidance range. We continue to focus on the execution of our regulatory strategy as we seek recovery of our costs in each of our jurisdictions. We expect a constructive rate order for our Washington general rate cases in mid-December, and earlier this month, filed a general rate case in Oregon. We plan to file our next case in Idaho in early 2025," said Avista CEO Dennis Vermillion.
"We're excited to join the North Plains Connector transmission line project, and have signed a non-binding memorandum of understanding. This transmission line will be constructed with endpoints near Bismarck, North Dakota and Colstrip, Montana, which will improve regional reliability, diversify available resources, and support demand growth.
"With regard to our other businesses, we expected the private equity markets which drive valuations in our other businesses would improve in the latter half of 2024. That improvement has not materialized, and as a result, we are lowering our consolidated earnings guidance by $0.10 to $2.26 to $2.46 per diluted share for 2024," Vermillion added.
Non-GAAP Financial Measures
The tables below include electric and natural gas utility margin, two financial measures that are considered "non-GAAP financial measures." The most directly comparable measure calculated and presented in accordance with GAAP is utility operating revenues.
The presentation of electric and natural gas utility margin is intended to enhance the understanding of operating performance, as it provides useful information to investors in their analysis of how changes in loads (due to weather, economic or other conditions), rates, supply costs and other factors impact our results of operations. These measures are not intended to replace utility operating revenues as determined in accordance with GAAP as an indicator of operating performance.
The following table reconciles Avista Utilities' operating revenues to utility margin (pre-tax and after-tax) for the three and nine months ended September 30 (dollars in thousands):
Operating Revenues
Resource Costs
Utility Margin (Pre-Tax)
Income Taxes (a)
Utility Margin (Net of Tax)
For the three months ended Sept. 30, 2024:
Electric
$
316,692
$
107,411
$
209,281
$
43,949
$
165,332
Natural Gas
73,522
39,726
33,796
7,097
26,699
Less: Intracompany
(6,468
)
(6,468
)
—
—
—
Total
$
383,746
$
140,669
$
243,077
$
51,046
$
192,031
For the three months ended Sept. 30, 2023:
Electric
$
309,027
$
116,729
$
192,298
$
40,383
$
151,915
