Avista Corporation Q3 FY2022 Earnings Call

· Earnings call transcript and AI-powered summary

Financial Performance

  • Q3 2022 consolidated loss: $0.08 per diluted share (vs. $0.20 earnings in Q3 2021).
  • YTD 2022 consolidated earnings: $1.06 per diluted share (vs. $1.38 YTD 2021).
  • Avista Utilities earnings impacted by higher interest expense, depreciation, and operating costs; partially offset by rate case benefits and 1.5% retail customer growth.
  • Energy Recovery Mechanism (ERM) in Washington: $4.5M pre-tax expense in Q3 2022 (vs. $3.8M in Q3 2021); YTD $7.3M expense (vs. $7.1M in 2021). Expecting 90/10 customer/company sharing band for full year 2022.

Updated Guidance

  • 2022 consolidated EPS guidance lowered by $0.05 to $1.88–$2.08 (due to higher interest, pension, and operating expenses).
  • 2023 consolidated EPS guidance lowered by $0.15 to $2.27–$2.47 (due to accelerated inflation and interest rate pressures outpacing cost management).
  • Avista Utilities expected contribution: 2022 $1.66–$1.82 (midpoint excludes ERM benefit; ERM expected to reduce earnings by $0.09); 2023 $2.15–$2.31.
  • AEL&P expected contribution: $0.08–$0.10 in both 2022 and 2023 (assumes normal precipitation/hydro generation).
  • Other businesses: 2022 $0.14–$0.16; 2023 $0.04–$0.06.
  • Long-term growth target remains 4–6% off revised 2023 base, with potential bias toward upper end via regulatory recovery in Idaho/Oregon (40% of business).

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Operator: Good day and thank you for standing by. Welcome to the Avista Corporation’s Q3 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker’s presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded. And I would now like to hand the conference over to your speaker today Ms. Stacey Wenz, Investors Relations Manager. Ms. Wenz, please go ahead. Stacey Wenz: Good morning, everyone. Welcome to Avista's third quarter 2022 earnings conference call. Our earnings and our third quarter 10-Q were released pre-market this morning, both are available on our website. Joining me this morning I have 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. 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 third quarter of 2022, both are available on our website. I'll begin by recapping the financial results presented in today's press release. Our consolidated loss for the

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