Avista Corporation Q1 FY2022 Earnings Call
· Earnings call transcript and AI-powered summary
Financial Results (Q1 2022 vs. Q1 2021):
- Consolidated earnings: $0.99 per diluted share (improved from $0.98 in Q1 2021).
- Avista Utilities contribution: $0.93 per share (improved from $0.92 in Q1 2021), above expectations due to timing of expenses and rate case benefits; partially offset by higher power supply costs, depreciation, and O&M.
- Income tax benefits increased due to customer tax credits from rate cases (Washington/Idaho effective late 2021), recorded through taxes rather than gross margin.
- Customer growth: Slightly above 1.5% target (in line with 1-1.5% annual expectation).
2022 Guidance (Confirmed):
- Consolidated: $1.93–$2.13 per diluted share; expected at lower end primarily due to ERM (power supply cost variance) impact of -$0.09 (worsened from prior -$0.07 forecast).
- Avista Utilities: $1.81–$1.97 per share (midpoint excludes ERM; may be slightly below due to -$0.09 impact).
- AEL&P: $0.08–$0.10 per share.
- Other businesses: $0.04–$0.06 per share.
- Assumes normal hydro conditions (current snowpack ~110%), timely rate relief, and 1-1.5% customer growth; inflation pressures (forecast ~5% cost increase) included with cost management focus.
2023 Guidance (Confirmed):
- Consolidated: $2.42–$2.62 per diluted share.
- Avista Utilities: $2.30–$2.40 per share.
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