On August 7, 2024, Avista Corp (AVA, Financial) released its 8-K filing detailing the financial results for the second quarter of 2024. Avista Corp, an electric and natural gas utility company headquartered in Spokane, Washington, operates primarily in the Pacific Northwest and Juneau, Alaska. The company’s major business segments include Avista Utilities and AEL&P.
Performance Overview
Avista Corp reported a net income of $22.9 million for Q2 2024, up from $17.5 million in Q2 2023. Earnings per diluted share increased to $0.29 from $0.23 in the same period last year, surpassing the analyst estimate of $0.27. The company also reported a year-to-date net income of $94.4 million, compared to $72.3 million in the previous year.
Key Financial Achievements
Avista Corp's financial achievements are noteworthy, particularly in the context of the regulated utilities industry. The company confirmed its consolidated earnings guidance of $2.36 to $2.56 per diluted share for 2024. The investments in system reliability have paid off, especially during the recent heat wave in the West.
“Our financial results demonstrate the strength of our core utility operations, as our second quarter utility earnings were in line with our expectations. At Avista Utilities, the investments we've made in our grid ensured the strong, stable performance of our system during the recent heat wave in the West,” said Avista CEO Dennis Vermillion.
Income Statement Highlights
| Second Quarter | 2024 | 2023 | Year-to-Date | 2024 | 2023 |
|---|---|---|---|---|---|
| Net Income (Loss) by Business Segment: | |||||
| Avista Utilities | $23,935 | $18,810 | $91,443 | $70,437 | |
| AEL&P | $1,109 | $1,359 | $5,020 | $5,401 | |
| Other | $(2,186) | $(2,685) | $(2,110) | $(3,509) | |
| Total net income | $22,858 | $17,484 | $94,353 | $72,329 | |
| Earnings (Loss) per Diluted Share by Business Segment: | |||||
| Avista Utilities | $0.31 | $0.25 | $1.17 | $0.93 | |
| AEL&P | $0.01 | $0.02 | $0.06 | $0.07 | |
| Other | $(0.03) | $(0.04) | $(0.03) | $(0.04) | |
| Total earnings per diluted share | $0.29 | $0.23 | $1.20 | $0.96 |
Financial Metrics and Analysis
Avista Corp's operating revenues for Q2 2024 were $390.8 million, with a utility margin of $247.7 million. The electric utility margin increased due to general rate cases, while the natural gas utility margin was impacted by similar factors. The company’s effective tax rate for the first half of 2024 was positive 2.9%, compared to negative 20.8% in the prior year.
Liquidity and Capital Resources
As of June 30, 2024, Avista Corp had $250.9 million of available liquidity under its committed line of credit. The company expects capital expenditures to total $500 million for Avista Utilities and $21 million for AEL&P in 2024.
Conclusion
Avista Corp's strong performance in Q2 2024, driven by robust utility operations and strategic investments, positions the company well for the remainder of the year. The confirmation of its earnings guidance and the addition of a new large electric customer further bolster its outlook.
Explore the complete 8-K earnings release (here) from Avista Corp for further details.
