Avista Corporation Q2 FY2022 Earnings Call

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Avista Corporation Q2 2022 Earnings Summary

  • Consolidated Earnings: Q2 2022: $0.16 per diluted share (down from $0.20 in Q2 2021). YTD 2022: $1.15 per diluted share (down from $1.18 in YTD 2021).
  • Key Drivers: Utility segment challenged by higher O&M costs, depreciation, interest expense, and $4M write-off for Colstrip dry ash disposal project. Offset partially by rate case benefits (recognized via lower income tax expense) and strong retail customer growth of 1.5% (up from prior 0.5%-1% expectation). Other businesses benefited from increased net investment gains.
  • Energy Recovery Mechanism (ERM): Q2 2022 pre-tax expense of $4.8M (vs. $7.6M expense in Q2 2021). YTD: $2.8M expense (vs. $3.3M in prior YTD). Expect ~$0.09/share negative impact for full-year 2022 in 90/10 customer sharing band.

2022 Guidance Updates (Revised)

  • Consolidated range confirmed at $1.93-$2.13 per diluted share; expect near lower end due to higher power supply costs.
  • Avista Utilities segment revised down $0.10/share to $1.71-$1.87 (due to $4M write-off, rising interest/inflation; midpoint excludes ERM).
  • Other businesses revised up $0.10/share to $0.14-$0.16 (due to strong investment gains).
  • AEL&P expected to contribute $0.08-$0.10.

2023 Guidance (Confirmed)

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Operator: Good day and thank you for standing by. Welcome to the Avista Corporation Second Quarter 2022 Earnings Conference 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 Stacey Wenz, Investors Relations Manager. The floor is yours. Stacey Wenz: Good morning, everyone. Welcome to Avista's second quarter 2022 earnings conference call. Our earnings and our second quarter 10-Q were released pre-market this morning, both 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; and Senior Vice President, External Affairs and Chief Customer Officer, Kevin Christie. Today, we will make certain statements that are forward-looking. These 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 2021 and 10-Q for the second quarter of 2022, which are available on our website. I'll begin by recapping the financial results presented in today's press release. Our consolidated earnings for the second quarter of 2022 were $0.16 per diluted share compared to $0.20 for the second quarter of 2021. For the year-to-date., consolidated earnings were $1.

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