Avista Corporation Q4 FY2022 Earnings Call

· Earnings call transcript and AI-powered summary

Avista Corporation Q4 & Full Year 2022 Earnings Summary

  • Consolidated Earnings: Full-year 2022 diluted EPS of $2.12 vs. $2.10 in 2021 (slight improvement). Q4 2022 diluted EPS of $1.05 vs. $0.71 in Q4 2021 (significant improvement).
  • Avista Utilities Contribution: $1.61 per share in 2022 vs. $1.79 in 2021 (underperformed prior year due to power supply cost volatility and inflation).
  • Other Businesses Contribution: $0.41 per share in 2022 vs. $0.21 in 2021 (strong improvement driven by fair value gains on non-regulated biotech investment).

Key Operational & Financial Highlights

  • Avista Utilities faced extreme power and natural gas price volatility (prices 5-8x higher than normal in December) and cold weather (coldest in over 20 years), leading to $30M+ in deferred power costs and liquidity pressure from margin calls. Energy Recovery Mechanism (ERM) expense was $10.9M pre-tax in 2022 vs. $7.7M in 2021.
  • Capital expenditures: Expected $475M annually through 2025 for utility infrastructure. AEL&P capex: $16M in 2023, $14M in 2024, $16M in 2025.
  • Liquidity: Issued $400M long-term debt and $138M common stock in 2022. Short-term borrowing capacity increased to $700M; $517M outstanding at year-end with $183M available. Plans to issue $200M long-term debt and up to $120M common stock in 2023 to reduce borrowings.

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Operator: Good day, and thank you for standing by. Welcome to the Avista Corporation Q4 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] Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Stacey Wenz, Investors Relations Manager. Please go ahead. Stacey Wenz: Good morning. Welcome to Avista's fourth quarter and fiscal year 2022 earnings conference call. Our earnings and our 2022 Form 10-K were released pre-market this morning, both are available on our website. Joining me this morning, our 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. Some of the statements we will make today are forward-looking and involve assumptions, risks and uncertainties, which are subject to change. For reference to the various factors, which could cause results to differ materially from those discussed in today's call, please refer to our 10-K for 2022, which is available on our website. I'll begin by recapping the financial results presented in today's press release. For the full-year, consolidated earnings were $2.12 per diluted share for 2022 compared to $2.10

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