Avista Corporation Q1 FY2020 Earnings Call

· Earnings call transcript and AI-powered summary

Q1 2020 Earnings Summary

  • Consolidated earnings: $0.72 per diluted share, down from $1.76 in Q1 2019 (Q1 2019 included ~$1 per share Hydro One termination fee).
  • Avista Utilities contribution: $0.68 per diluted share vs. $1.70 in Q1 2019; benefited from lower power supply costs, Oregon rate relief, and customer growth, offset by Washington refunds, Colstrip disallowance, and higher operating expenses (labor, benefits, bad debt).
  • AEL&P earnings on track for the quarter.
  • Other businesses: net loss due to impairment losses.

2020 Guidance Updates

  • Consolidated earnings guidance lowered to $1.75-$1.95 per diluted share (from prior $1.95-$2.15), reflecting $0.10 in Washington regulatory items, $0.02 COVID-19 net costs, $0.01 AEL&P reduction, and $0.07 other businesses reduction.
  • Avista Utilities revised to $1.77-$1.89 per diluted share (down $0.12 on each end); midpoint assumes no ERM impact but expects ~$0.07 benefit in 90/10 sharing band.
  • AEL&P: $0.07-$0.11 per diluted share (down $0.01 on each end).
  • Other businesses: loss of $0.09-$0.05 per diluted share (down $0.07 on each end).
  • Long-term earnings growth target remains 4%-6% after 2023; timeline to earn near authorized ROE extended to 2023 (from 2022) due to recession and delayed rate cases.

COVID-19 Impacts

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Operator: Ladies and gentlemen, thank you for standing by and welcome to the Avista Corporation First Quarter 2020 Earnings Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session [Operator Instructions]. I would now like to hand the conference over to your speaker Mr. John Wilcox, Investor Relations Manager. Please go ahead sir. John Wilcox: Thank you. Good morning, everyone, and welcome to Avista's first quarter 2020 earnings conference call. Our earnings were released premarket this morning and are available on our website. Joining me this morning are Avista Corp. President and CEO, Dennis Vermillion; Executive Vice President Treasurer and CFO, Mark Thies; Senior Vice President External Affairs and Chief Customer Officer, Kevin Christie; and Vice President Controller and Principal Accounting Officer, Ryan Krasselt. I would like to remind everyone that some of the statements that will be made today are forward-looking statements that involve assumptions, risks, and uncertainties which are subject to change. For reference to the various factors which could cause actual results to differ materially from those discussed on today's call please refer to our 10-K for 2019 and 10-Q for the first quarter of 2020 which are available on our website. To begin this presentation, I would like to recap the financial results presented in today's press release. Our consolidated earnings for the first quar

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