SPOKANE, WA -- (Marketwire) -- 02/20/13 -- Avista Corp. (NYSE: AVA) today reported results of net income attributable to Avista Corp. shareholders of $78.2 million, or $1.32 per diluted share, for the year ended Dec. 31, 2012, compared to $100.2 million, or $1.72 per diluted share for the year ended Dec. 31, 2011. For the fourth quarter of 2012, net income attributable to Avista Corp. shareholders was $15.9 million, or $0.26 per diluted share, compared to $24.6 million, or $0.42 per diluted share, for the fourth quarter of 2011.
"We had a challenging year in 2012, with earnings below our expectations, reflecting under-performance in all of our business segments. This was primarily due to warmer weather in the first and fourth quarters, which decreased earnings at our core utility business, expenses related to our voluntary severance incentive program and continued slow load growth. Additionally, there were increased costs at all of our segments and slower than expected integration of the acquisitions at our primary unregulated subsidiary, Ecova. However, we believe that we are well positioned for significant improvement in our 2013 consolidated results and are confirming our consolidated earnings guidance range of $1.70 to $1.90 per diluted share," said Avista Chairman, President and Chief Executive Officer Scott L. Morris.
"The Washington Commission approved our multi-party general rate case settlement in December with new rates that went into effect on Jan. 1, 2013, and additional rate increases to become effective on Jan. 1, 2014. This month, we reached a settlement in our Idaho general rate cases that would provide for a rate increase on April 1, 2013, and additional rate increases effective Oct. 1, 2013. The Idaho settlement is subject to approval by the Idaho Commission.
"The resolution of the Washington and Idaho general rate cases, together with our cost-management initiatives currently in place, eliminates the majority of the regulatory lag we have been experiencing related to utility costs and investments that are recoverable for ratemaking purposes.
"We believe that both settlements provide a fair and reasonable outcome for our customers and shareholders, and that they give our customers more certainty in their energy rates for the next two years. In both settlements, we have agreed to no further general rate increases prior to Jan. 1, 2015.
"Ecova had a very difficult year in 2012. This was primarily due to increased operating costs and limited increases in revenues. With forecasted revenue growth and process and efficiency improvements, we expect Ecova's performance to improve significantly in 2013.
"We had a number of challenges related to our other non-utility businesses in 2012. In 2013, we expect some improvement in results; however, we remain committed to pursue opportunities for future growth," Morris said.
Summary Results: Avista Corp.'s results for the fourth quarter of 2012 and the year ended Dec. 31, 2012, as compared to the respective periods of 2011 are presented in the table below:
----------------------------------------------------------------------------($ in thousands, except per- share data) Q4 2012 Q4 2011 Year 2012 Year 2011----------------------------------------------------------------------------Operating Revenues $410,528 $438,927 $1,547,002 $1,619,780----------------------------------------------------------------------------Income from Operations $ 41,047 $ 58,324 $ 190,070 $ 228,004----------------------------------------------------------------------------Net Income attributable to Avista Corporation Shareholders $ 15,858 $ 24,603 $ 78,210 $ 100,224----------------------------------------------------------------------------Net Income (Loss) attributable to Avista Corporation Shareholders by Business Segment:----------------------------------------------------------------------------Avista Utilities $ 16,547 $ 22,169 $ 81,704 $ 90,902----------------------------------------------------------------------------Ecova $ 862 $ 2,656 $ 1,825 $ 9,671----------------------------------------------------------------------------Other $ (1,551) $ (222) $ (5,319) $ (349)----------------------------------------------------------------------------Earnings (Loss) per diluted share by Business Segment attributable to Avista Corporation Shareholders:----------------------------------------------------------------------------Avista Utilities $ 0.28 $ 0.38 $ 1.38 $ 1.56----------------------------------------------------------------------------Ecova $ 0.01 $ 0.04 $ 0.03 $ 0.16----------------------------------------------------------------------------Other $ (0.03) $ -- $ (0.09) $ ------------------------------------------------------------------------------Total earnings per diluted share attributable to Avista Corporation $ 0.26 $ 0.42 $ 1.32 $ 1.72----------------------------------------------------------------------------
