Avista Corp. (AVA, Financial) filed Quarterly Report for the period ended 2009-06-30.
Avista Corp. is a diversified energy company with utility and subsidiaryoperations located throughout North America. Avista Corp. also operates Avista Capital which owns all the company\'s non-regulated energy and non-energy businesses. Avista Capital companies include Avista Energy Avista Energy Canada Ltd. Avista Power Avista Advantage Avista Labs Avista Fiber Avista Communiations Avista Development and Pentzer Corporation. (PRESS RELEASE) Avista Corp. has a market cap of $1.02 billion; its shares were traded at around $18.72 with a P/E ratio of 12.8 and P/S ratio of 0.6. The dividend yield of Avista Corp. stocks is 4.5%. Avista Corp. had an annual average earning growth of 0.4% over the past 10 years.
Advantage IQs net income attributable to Avista Corporation was $1.3 million for the three months ended June 30, 2009, a decrease from $1.6 million for the three months ended June 30, 2008. Advantage IQs net income attributable to Avista Corporation was $2.4 million for the six months ended June 30, 2009, a decrease from $3.3 million for the six months ended June 30, 2008. The decrease for each period of 2009 as compared to 2008 was primarily due to lower short-term interest rates (which decreases interest revenue), the decrease in our ownership percentage in the business in connection with the acquisition of Cadence Network effective July 2, 2008 and increased amortization of intangible assets (related to the Cadence acquisition refer to the Cadence discussion below). During 2009, we are anticipating slower internal growth at Advantage IQ than had been expected, as some of its clients are experiencing bankruptcies and store closures in these difficult economic times. Additionally, interest revenue is expected to be lower in 2009 due to the historic low short-term interest rate environment that we are currently experiencing, which is expected to continue throughout 2009.
The net loss attributable to Avista Corporation for these operations was $0.8 million for the three months ended June 30, 2009 compared to $0.1 million for the three months ended June 30, 2008. The net loss attributable to Avista Corporation for these operations was $1.5 million for the six months ended June 30, 2009 compared to net income of $0.1 million for the six months ended June 30, 2008. Contributing to the net loss attributable to Avista Corporation in the second quarter and first six months of 2009 were losses on long-term venture fund investments and the accrual of a $0.3 million environmental liability. This environmental liability relates to the final cleanup of a waste water treatment plant site that was decommissioned in 1993.
We have a committed line of credit in the total amount of $320.0 million with an expiration date of April 5, 2011. We had $260.0 million of cash borrowings and $36.7 million in letters of credit outstanding as of June 30, 2009, under our $320.0 million committed line of credit. In November 2008, we entered into a new committed line of credit in the total amount of $200.0 million with an expiration date of November 24, 2009. We entered into this line of credit to ensure we had adequate liquidity, as conditions in the financial markets resulted in limited access to capital on reasonable terms. To date, we have not borrowed any funds under this committed line of credit.
As of June 30, 2009, we had a combined $265.3 million of available liquidity under our $320.0 million committed line of credit, $200.0 million committed line of credit, and $85.0 million revolving accounts receivable sales facility.
On April 1, 2009, we redeemed the total amount outstanding ($61.9 million) of our Junior Subordinated Debt Securities held by AVA Capital Trust III (Long-term Debt to Affiliated Trusts). Concurrently, AVA Capital Trust III redeemed all of the Preferred Trust Securities issued to third parties ($60.0 million) and all of the Common Trust Securities issued to us ($1.9 million). The net redemption of $60.0 million was funded by borrowings under our $320.0 million committed line of credit agreement.
Read the The complete ReportAVA is in the portfolios of Kenneth Fisher of Fisher Asset Management, LLC.
Avista Corp. is a diversified energy company with utility and subsidiaryoperations located throughout North America. Avista Corp. also operates Avista Capital which owns all the company\'s non-regulated energy and non-energy businesses. Avista Capital companies include Avista Energy Avista Energy Canada Ltd. Avista Power Avista Advantage Avista Labs Avista Fiber Avista Communiations Avista Development and Pentzer Corporation. (PRESS RELEASE) Avista Corp. has a market cap of $1.02 billion; its shares were traded at around $18.72 with a P/E ratio of 12.8 and P/S ratio of 0.6. The dividend yield of Avista Corp. stocks is 4.5%. Avista Corp. had an annual average earning growth of 0.4% over the past 10 years.
Highlight of Business Operations:
Our net income was $25.9 million for the three months ended June 30, 2009, an increase from $23.5 million for the three months ended June 30, 2008. This increase was primarily due to increased earnings at Avista Utilities (primarily due to the implementation of general rate increases in Washington and Idaho) as well as a decrease in interest expense. Our net income was $56.9 million for the six months ended June 30, 2009, an increase from $48.8 million for the six months ended June 30, 2008. Consistent with the quarterly increase, this was primarily due to increased earnings at Avista Utilities as well as a decrease in interest expense.Advantage IQs net income attributable to Avista Corporation was $1.3 million for the three months ended June 30, 2009, a decrease from $1.6 million for the three months ended June 30, 2008. Advantage IQs net income attributable to Avista Corporation was $2.4 million for the six months ended June 30, 2009, a decrease from $3.3 million for the six months ended June 30, 2008. The decrease for each period of 2009 as compared to 2008 was primarily due to lower short-term interest rates (which decreases interest revenue), the decrease in our ownership percentage in the business in connection with the acquisition of Cadence Network effective July 2, 2008 and increased amortization of intangible assets (related to the Cadence acquisition refer to the Cadence discussion below). During 2009, we are anticipating slower internal growth at Advantage IQ than had been expected, as some of its clients are experiencing bankruptcies and store closures in these difficult economic times. Additionally, interest revenue is expected to be lower in 2009 due to the historic low short-term interest rate environment that we are currently experiencing, which is expected to continue throughout 2009.
The net loss attributable to Avista Corporation for these operations was $0.8 million for the three months ended June 30, 2009 compared to $0.1 million for the three months ended June 30, 2008. The net loss attributable to Avista Corporation for these operations was $1.5 million for the six months ended June 30, 2009 compared to net income of $0.1 million for the six months ended June 30, 2008. Contributing to the net loss attributable to Avista Corporation in the second quarter and first six months of 2009 were losses on long-term venture fund investments and the accrual of a $0.3 million environmental liability. This environmental liability relates to the final cleanup of a waste water treatment plant site that was decommissioned in 1993.
We have a committed line of credit in the total amount of $320.0 million with an expiration date of April 5, 2011. We had $260.0 million of cash borrowings and $36.7 million in letters of credit outstanding as of June 30, 2009, under our $320.0 million committed line of credit. In November 2008, we entered into a new committed line of credit in the total amount of $200.0 million with an expiration date of November 24, 2009. We entered into this line of credit to ensure we had adequate liquidity, as conditions in the financial markets resulted in limited access to capital on reasonable terms. To date, we have not borrowed any funds under this committed line of credit.
As of June 30, 2009, we had a combined $265.3 million of available liquidity under our $320.0 million committed line of credit, $200.0 million committed line of credit, and $85.0 million revolving accounts receivable sales facility.
On April 1, 2009, we redeemed the total amount outstanding ($61.9 million) of our Junior Subordinated Debt Securities held by AVA Capital Trust III (Long-term Debt to Affiliated Trusts). Concurrently, AVA Capital Trust III redeemed all of the Preferred Trust Securities issued to third parties ($60.0 million) and all of the Common Trust Securities issued to us ($1.9 million). The net redemption of $60.0 million was funded by borrowings under our $320.0 million committed line of credit agreement.
Read the The complete ReportAVA is in the portfolios of Kenneth Fisher of Fisher Asset Management, LLC.
