Avista Corporation Q2 FY2020 Earnings Call

· Earnings call transcript and AI-powered summary

Avista Corporation Q2 2020 Earnings Summary

Financial Highlights

  • Consolidated Q2 2020 earnings: $0.26 per diluted share, down from $0.38 per diluted share in Q2 2019.
  • Year-to-date 2020 consolidated earnings: $0.98 per diluted share, down from $2.14 per diluted share in the first half of 2019.
  • Avista Utilities Q2 2020 contribution: $0.26 per diluted share, compared to $0.32 per diluted share in Q2 2019 (decrease driven by lower electric utility margin, higher power supply costs, and reduced loads from COVID-19, partially offset by rate relief, customer growth, and lower operating expenses).
  • Energy Recovery Mechanism (ERM) in Washington: $0.4 million pre-tax benefit in Q2 2020 vs. $6 million in Q2 2019; YTD 2020 benefit of $5.6 million vs. $3.5 million in YTD 2019.

COVID-19 Impacts

  • Incremental bad debt expense: $3.3 million YTD 2020; expected full-year incremental amount of $5.7 million.
  • Electric load decreases in Q2 2020 vs. normal: ~6% overall (10% commercial, 14% industrial, offset by 4% residential increase), reducing earnings by ~$0.03 in the quarter.
  • Idaho Commission order allows deferral of certain COVID-19 costs net of benefits; $1.1 million bad debt expense deferred in Q2 2020.

Continue Reading

Unlock the full AI-powered summary with key highlights, financial performance, and analyst Q&A.

Upgrade to Professional
Operator: Ladies and gentlemen, thank you for standing by and welcome to the Avista Corporation Second Quarter 2020 Earnings Conference Call. At this time, all participant lines are in a listen-only mode. After the speakers’ presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today’s conference is being recorded. [Operator Instructions] I would now like to hand the conference over to speaker today, John Wilcox, Investor Relations Manager. Thank you. Please go ahead, sir. John Wilcox: Good morning, everyone and welcome to Avista’s second quarter 2020 earnings conference call. Our earnings were released pre-market this morning and are available on our website. Joining me this morning are Avista Corp.’ President and CEO, Dennis Vermillion; Executive Vice President, CFO and Treasurer, 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 in today’s call, please refer to our 10-K for 2019 and 10-Q for the second quarter of 2020, which are available on our website. To begin this presentation, I would like to

Continue Reading

Unlock the full earnings call transcript with speaker labels and formatted dialogue.

Upgrade to Professional