Avista Corp. (AVA, Financial) filed Quarterly Report for the period ended 2009-09-30.
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 $1.06 billion; its shares were traded at around $19.39 with a P/E ratio of 13 and P/S ratio of 0.7. The dividend yield of Avista Corp. stocks is 4.4%. 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 $1.4 million for the three months ended September 30, 2009, an increase from $1.3 million for the three months ended September 30, 2008. Advantage IQs net income attributable to Avista Corporation was $3.9 million for the nine months ended September 30, 2009, a decrease from $4.7 million for the nine months ended September 30, 2008. The decrease for the nine months ended September 30, 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 experiencing slower internal growth at Advantage IQ than was originally expected, as some of its clients are experiencing bankruptcies and store closures in these difficult economic times. Additionally, interest revenue is lower in 2009 due to the historic low short-term interest rate environment that we are experiencing, which is expected to continue in the fourth quarter of 2009.
The net loss attributable to Avista Corporation for these operations was $0.5 million for the three months ended September 30, 2009 compared to $0.4 million for the three months ended September 30, 2008. The net loss attributable to Avista Corporation for these operations was $2.0 million for the nine months ended September 30, 2009 compared to $0.3 million for the nine months ended September 30, 2008. Contributing to the net loss attributable to Avista Corporation for the nine months ended September 30, 2009 were losses on long-term venture fund investments of $0.9 million and the accrual of a $0.3 million environmental liability for the final cleanup of a waste water treatment plant site that was decommissioned in 1993. AM&D had a net loss of $0.1 million for the nine months ended September 30, 2009 compared to net income of $0.5 million for the nine months ended September 30, 2008. Results from AM&D improved in the third quarter of 2009 as compared to the first and second quarters of 2009 with net income of $0.1 million.
We have a committed line of credit in the total amount of $320.0 million with an expiration date of April 5, 2011. Under this committed line of credit, we had $25.0 million of cash borrowings and $23.9 million in letters of credit outstanding as of September 30, 2009. 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 are in the process of renewing this credit facility at a reduced level (not expected to exceed $100.0 million). 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 September 30, 2009, we had a combined $513.1 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 $1.06 billion; its shares were traded at around $19.39 with a P/E ratio of 13 and P/S ratio of 0.7. The dividend yield of Avista Corp. stocks is 4.4%. Avista Corp. had an annual average earning growth of 0.4% over the past 10 years.
Highlight of Business Operations:
Our utility net income was $7.2 million for the three months ended September 30, 2009, an increase from $6.5 million for the three months ended September 30, 2008. Our utility net income was $63.2 million for the nine months ended September 30, 2009, an increase from $51.8 million for the nine months ended September 30, 2008. The increase in our quarterly and year-to-date net income was due in part to an increase in gross margin (operating revenues less resource costs). The increase in gross margin was primarily due to the implementation of the general rate increases in Washington and Idaho. We recognized an expense of $2.0 million under the ERM for the third quarter of 2009 compared to a benefit of $0.1 million in the third quarter of 2008. We recognized an expense of $6.1 million under the ERM for the nine months ended September 30, 2009 compared to an expense of $7.3 million for the nine months ended September 30, 2008. The increase in net income was also due to a decrease in interest expense and income tax expense. In the third quarter of 2009, we recognized adjustments related to IRS audits and adjustments for the 2008 filed federal tax return. In total, these adjustments had a favorable impact to recorded income tax expense of $3.2 million. These positive impacts on net income were partially offset by an increase in other operating expenses, depreciation and amortization and taxes other than income taxes. In addition, in the third quarter of 2008 we recorded $5.7 million (pre-tax) of interest income, partially offset by $1.4 million (pre-tax) of interest expense, related to income tax settlements.Advantage IQs net income attributable to Avista Corporation was $1.4 million for the three months ended September 30, 2009, an increase from $1.3 million for the three months ended September 30, 2008. Advantage IQs net income attributable to Avista Corporation was $3.9 million for the nine months ended September 30, 2009, a decrease from $4.7 million for the nine months ended September 30, 2008. The decrease for the nine months ended September 30, 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 experiencing slower internal growth at Advantage IQ than was originally expected, as some of its clients are experiencing bankruptcies and store closures in these difficult economic times. Additionally, interest revenue is lower in 2009 due to the historic low short-term interest rate environment that we are experiencing, which is expected to continue in the fourth quarter of 2009.
The net loss attributable to Avista Corporation for these operations was $0.5 million for the three months ended September 30, 2009 compared to $0.4 million for the three months ended September 30, 2008. The net loss attributable to Avista Corporation for these operations was $2.0 million for the nine months ended September 30, 2009 compared to $0.3 million for the nine months ended September 30, 2008. Contributing to the net loss attributable to Avista Corporation for the nine months ended September 30, 2009 were losses on long-term venture fund investments of $0.9 million and the accrual of a $0.3 million environmental liability for the final cleanup of a waste water treatment plant site that was decommissioned in 1993. AM&D had a net loss of $0.1 million for the nine months ended September 30, 2009 compared to net income of $0.5 million for the nine months ended September 30, 2008. Results from AM&D improved in the third quarter of 2009 as compared to the first and second quarters of 2009 with net income of $0.1 million.
We have a committed line of credit in the total amount of $320.0 million with an expiration date of April 5, 2011. Under this committed line of credit, we had $25.0 million of cash borrowings and $23.9 million in letters of credit outstanding as of September 30, 2009. 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 are in the process of renewing this credit facility at a reduced level (not expected to exceed $100.0 million). 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 September 30, 2009, we had a combined $513.1 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.
