[AVISTA FORP. LOGO] Exhibit 99(d)
____________________________________________________________________NEWS RELEASE
CONTACT: Media: Jessie Wuerst (509) 495-8578 jessie.wuerst@avistacorp.com
Investors: Angela Teed (509) 495-2930 angela.teed@avistacorp.com
FOR IMMEDIATE RELEASE
July 30, 2003
7:05 a.m. EDT
AVISTA CORP. REPORTS Q2 2003 EARNINGS
2003 EARNINGS GUIDANCE REVISED UPWARD
SPOKANE, WASH.: Avista Corp. (NYSE: AVA) today reported second-quarter 2003
consolidated revenues of $218.6 million and earnings of $0.25 per diluted share
from continuing operations. Net income available for common stock totaled $8.4
million or $0.17 per diluted share, including the discontinued operations of
Avista Labs.
Results for second quarter and year-to-date 2003:
($ millions except per-share data) Q2 2003 Q2 2002 YTD 2003 YTD 2002
- ---------------------------------- ------- ------- -------- --------
Consolidated Revenues $ 218.6 $ 219.6 $ 530.3 $ 546.2
Income from Operations $ 44.1 $ 43.0 $ 99.1 $ 92.3
Net Income Available for Common Stock $ 8.4 $ 9.7 $ 24.0 $ 20.2
Business Segments: (Earnings per diluted share)
Avista Utilities $ 0.21 $ 0.24 $ 0.37 $ 0.50
Energy Marketing & Resource Management $ 0.07 $ 0.18 $ 0.34 $ 0.35
Avista Advantage ($ 0.01) ($ 0.03) ($ 0.02) ($ 0.05)
Other ($ 0.02) ($ 0.15) ($ 0.07) ($ 0.21)
SUBTOTAL (CONTINUING OPERATIONS) $ 0.25 $ 0.24 $ 0.62 $ 0.59
Avista Labs & Avista Communications* ($ 0.08) ($ 0.04) ($ 0.10) ($ 0.08)
(discontinued operations)
SUBTOTAL (BEFORE CUMULATIVE EFFECT OF ACCOUNTING CHANGE) $ 0.17 $ 0.20 $ 0.52 $ 0.51
CUMULATIVE EFFECT OF ACCOUNTING CHANGE -- -- ($ 0.02)** ($ 0.09)
TOTAL - (EARNINGS PER DILUTED SHARE) $ 0.17 $ 0.20 $ 0.50 $ 0.42
*Avista Communications is only included in 2002 amounts.
**Represents a charge of $1.2 million (net of tax) for Avista Energy's
adoption of SFAS No. 133.
"Avista continues to make progress in achieving the goals we set to return
the company to financial health," said Gary G. Ely, Avista Corp. chairman,
president and chief executive officer. "We are pleased to report that our
continuing operations delivered strong earnings this quarter, and that the
planned reduction in our majority ownership of Avista Labs has been
accomplished."
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PAGE 2 AVISTA CORP. REPORTS Q2 2003 EARNINGS
HIGHLIGHTS:
- - FERC: On July 24, Federal Energy Regulatory Commission (FERC) Chief
Administrative Law Judge Curtis L. Wagner Jr. granted a motion for
reconsideration filed earlier this month by FERC Trial Staff and certified
an agreement to the FERC commissioners that, if approved, would resolve
the ongoing investigation of Avista in that proceeding. In granting the
FERC Trial Staff motion, Judge Wagner concluded that there are no longer
any unresolved issues of material fact remaining. In certifying the
agreement, Judge Wagner noted that the proposed resolution disposes of all
issues set for hearing in the proceeding and that it is just, reasonable
and in the public interest.
- - UTILITY GENERATION: With the commercial operation of the Coyote Springs 2
facility beginning in July, Avista now owns or controls resources to meet
its native retail load. The 280-megawatt, combined cycle, natural
gas-powered plant is co-owned with Mirant, which equally shares the costs
and the power output with Avista.
- - CORPORATE CREDIT SUPPORT: Avista Corp. entered into a $245 million
committed line of credit, replacing a previous $225 million credit
facility. The expanded facility reflects increased bank confidence in the
company's progress toward financial recovery. Avista has reduced its debt
load and associated interest expense by repurchasing a total of $42
million so far in 2003, in addition to the $204 million repurchased in
2002.
- - AVISTA ENERGY: The company's unregulated energy business continues to
perform well, with positive earnings for the 13th consecutive quarter.
Avista Energy has completed a renewal of its line of credit, receiving its
first-ever committed facility, totaling $110 million, which reflects its
position as a strong, asset-backed performer in Western energy markets.
- - AVISTA LABS: Avista Corp. reduced its ownership interest in Avista Labs,
retaining 19.9 percent of the fuel cell company. An impairment charge of
approximately $2.5 million (net of tax), or $0.05 per diluted share, was
taken in Q2.
- - AVISTA ADVANTAGE: Year-to-date 2003 Avista Advantage, a premier business
process outsourcer for the evaluation and payment of utility bills and
other invoices, has increased the number of customers billed by 17 percent
and revenues by 25 percent over the same period in 2002. A 36 percent
growth in savings in the total-cost-per-account was noted in the first six
months of this year as compared to the same period last year.
OUTLOOK AND EARNINGS GUIDANCE:
Avista revises its 2003 consolidated corporate earnings outlook upward to
between $0.85 and $1.05 per diluted share because of the strong performance of
Avista Energy. This guidance is prior to any adjustments related to the
cumulative effects of changes in accounting principles and includes a range of
$0.60 to $0.80 for
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PAGE 3 AVISTA CORP. REPORTS Q2 2003 EARNINGS
Avista Utilities, $0.35 to $0.50 for the Energy Marketing and Resource
Management segment, a loss of approximately $0.05 for Avista Advantage and a
loss of $0.10 for the discontinued operations of Avista Labs. For 2004, the
company anticipates consolidated diluted earnings to exceed $1.00 per share,
including continued improving performance at Avista Utilities and $0.20 to $0.30
per diluted share from Avista Energy.
Avista Corp. is an energy company involved in the production, transmission
and distribution of energy as well as other energy-related businesses. Avista
Utilities is a company operating division that provides electric and natural gas
service to customers in four western states. Avista's non-regulated subsidiaries
include Avista Advantage and Avista Energy. Avista Corp.'s stock is traded under
the ticker symbol "AVA" and its Internet address is www.avistacorp.com.
Avista Corp. and the Avista Corp. logo are trademarks of Avista
Corporation. All other trademarks mentioned in this document are the property of
their respective owners.
This news release contains forward-looking statements regarding the
company's current expectations. Forward-looking statements are all statements
other than historical facts. Such statements speak only as of the date of the
news release and are subject to a variety of risks and uncertainties, many of
which are beyond the company's control, and which could cause actual results to
differ materially from the expectations. These risks and uncertainties include,
in addition to those discussed herein, all of the factors discussed in the
company's Annual Report on Form 10-K for the year ended Dec. 31, 2002, and on
Form 10-Q for the first quarter ended March 31, 2003.
NOTE: Avista Corp. will host an investor conference call on July 30, 2003, at
10:30 a.m. EDT. To participate, call (415) 228-4637 approximately five minutes
in advance to ensure you are connected. The passcode is "Avista."
A replay of the conference call will be available beginning July 30, at 3
p.m. EDT through Fri., Aug. 1, at 8:00 p.m. EDT. Call (402) 220-5090 to listen
to the replay.
A webcast of this investor conference call will occur simultaneously. To
register for the webcast, please go to www.avistacorp.com.
A webcast replay will be archived through 12 a.m. EDT on Aug. 29, at
www.avistacorp.com.
The attached income statement, financial and operating highlights, and
balance sheet are an integral part of this earnings release.
- 0357 -
AVISTA CORPORATION
CONSOLIDATED COMPARATIVE STATEMENTS OF INCOME (UNAUDITED)
(Dollars in Thousands except Per Share Amounts)
SIX MONTHS ENDED
SECOND QUARTER JUNE 30,
---------------------- ----------------------
2003 2002 2003 2002
--------- --------- --------- ---------
OPERATING REVENUES $ 218,553 $ 219,561 $ 530,274 $ 546,234
--------- --------- --------- ---------
OPERATING EXPENSES:
Resource costs 84,127 79,519 242,871 265,309
Operations and maintenance 32,474 29,253 64,791 59,881
Administrative and general 23,371 33,401 51,958 56,472
Depreciation and amortization 18,904 17,737 37,846 35,489
Taxes other than income taxes 15,568 16,609 33,709 36,829
--------- --------- --------- ---------
Total operating expenses 174,444 176,519 431,175 453,980
--------- --------- --------- ---------
INCOME FROM OPERATIONS 44,109 43,042 99,099 92,254
--------- --------- --------- ---------
OTHER INCOME (EXPENSE):
Interest expense (23,159) (26,644) (46,692) (55,499)
Capitalized interest 187 2,095 359 4,390
--------- --------- --------- ---------
Net interest expense (22,972) (24,549) (46,333) (51,109)
Other income - net 2,038 3,415 2,235 10,473
--------- --------- --------- ---------
Total other income (expense) - net (20,934) (21,134) (44,098) (40,636)
--------- --------- --------- ---------
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES 23,175 21,908 55,001 51,618
INCOME TAXES 10,462 9,616 23,846 22,350
--------- --------- --------- ---------
INCOME FROM CONTINUING OPERATIONS 12,713 12,292 31,155 29,268
LOSS FROM DISCONTINUED OPERATIONS (Note 1) (3,744) (1,947) (4,864) (3,675)
--------- --------- --------- ---------
NET INCOME BEFORE CUMULATIVE EFFECT OF ACCOUNTING CHANGE 8,969 10,345 26,291 25,593
CUMULATIVE EFFECT OF ACCOUNTING CHANGE (net of tax) (Note 2) -- -- (1,190) (4,148)
--------- --------- --------- ---------
NET INCOME 8,969 10,345 25,101 21,445
DEDUCT - Preferred stock dividend requirements 547 608 1,125 1,216
--------- --------- --------- ---------
INCOME AVAILABLE FOR COMMON STOCK $ 8,422 $ 9,737 $ 23,976 $ 20,229
========= ========= ========= =========
Weighted-average common shares outstanding (thousands), Basic 48,224 47,774 48,163 47,723
Weighted-average common shares outstanding (thousands), Diluted 48,329 47,857 48,210 47,809
EARNINGS PER COMMON SHARE, BASIC AND DILUTED:
Earnings per common share from continuing operations $ 0.25 $ 0.24 $ 0.62 $ 0.59
Loss per common share from discontinued operations (Note 1) (0.08) (0.04) (0.10) (0.08)
--------- --------- --------- ---------
Earnings per common share before cumulative effect of accounting change 0.17 0.20 0.52 0.51
Loss per common share from cumulative effect of accounting change (Note 2) -- -- (0.02) (0.09)
--------- --------- --------- ---------
Total earnings per common share, basic and diluted $ 0.17 $ 0.20 $ 0.50 $ 0.42
========= ========= ========= =========
Dividends paid per common share $ 0.12 $ 0.12 $ 0.24 $ 0.24
SUPPLEMENTAL INFORMATION
INCOME (LOSS) FROM CONTINUING OPERATIONS BY BUSINESS SEGMENT:
Avista Utilities $ 10,711 $ 12,004 $ 19,036 $ 25,249
Energy Marketing and Resource Management $ 3,180 $ 8,506 $ 16,245 $ 16,686
Avista Advantage $ (325) $ (1,354) $ (964) $ (2,646)
Other $ (853) $ (6,864) $ (3,162) $ (10,021)
Note 1. In July 2003, Avista Corp. announced an investment by a group of
private equity investors in a new entity, AVLB, Inc., which acquired
the assets previously held by Avista Corp.'s fuel cell manufacturing
and development subsidiary, Avista Labs. The investors have raised an
initial $7.5 million in funding, which includes a commitment by Avista
Corp. to provide funding of up to $1.5 million under certain
conditions. Avista Corp. has a 19.9 (or $2.1 million) percent ownership
interest in AVLB, Inc. The reduction in Avista Corp.'s ownership
interest in this business resulted in an impairment charge of $2.5
million (net of tax) during the three and six months ended June 30,
2003.
Note 2. Amount for the six months ended June 30, 2003 represents Avista
Energy's transition from Emerging Issues Task Force Issue No. 98-10,
"Accounting for Contracts Involved in Energy Trading and Risk
Management Activities" to Statement of Financial Accounting Standards
No. 133, "Accounting for Derivative Instruments and Hedging
Activities." Amount for the six months ended June 30, 2002 represents
the transitional adjustment related to the Company's adoption of an
accounting standard for goodwill. The Company determined that $6.4
million of goodwill related to a subsidiary of Avista Ventures was
impaired in accordance with this accounting standard.
AVISTA CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(Dollars in Thousands)
JUNE 30, DECEMBER 31,
2003 2002
---------- ----------
ASSETS
Cash and cash equivalents $ 219,542 $ 186,269
Accounts and notes receivable 245,166 320,836
Current energy commodity assets 342,046 365,477
Other current assets 78,133 101,083
Total net utility property 1,675,988 1,563,704
Investment in exchange power-net 39,608 40,833
Non-utility properties and investments-net 93,996 199,579
Non-current energy commodity assets 352,469 348,309
Other property and investments-net 14,846 12,702
Regulatory assets for deferred income taxes 134,112 139,138
Other regulatory assets 26,958 29,735
Utility energy commodity derivative assets 53,170 60,322
Power and natural gas deferrals 162,357 166,782
Other deferred charges 79,153 79,364
---------- ----------
TOTAL ASSETS $3,517,544 $3,614,133
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable $ 247,423 $ 339,637
Current energy commodity liabilities 298,786 304,781
Current portion of long-term debt 62,333 71,896
Short-term borrowings 35,533 30,000
Other current liabilities 229,171 194,516
Non-current energy commodity liabilities 319,495 314,204
Utility energy commodity derivative liabilities 40,650 50,058
Deferred income taxes 435,291 454,147
Long-term debt 879,854 902,635
Other non-current liabilities and other deferred credits 108,029 106,218
Preferred trust securities 100,000 100,000
Preferred stock 31,500 33,250
Common stock - net (48,265,237 and 48,044,208 outstanding shares) 610,586 607,018
Retained earnings and other comprehensive loss 118,893 105,773
---------- ----------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $3,517,544 $3,614,133
========== ==========
AVISTA CORPORATION
FINANCIAL AND OPERATING HIGHLIGHTS
(Dollars in Thousands)
SIX MONTHS ENDED
SECOND QUARTER JUNE 30,
--------------------------- ---------------------------
2003 2002 2003 2002
--------- --------- --------- ---------
AVISTA UTILITIES
Retail electric revenues $ 110,780 $ 105,862 $ 235,048 $ 231,461
Retail kWh sales (in millions) 1,795 1,724 3,775 3,791
Retail electric customers at end of period 320,285 316,216 320,285 316,216
Wholesale electric revenues $ 25,459 $ 18,775 $ 41,466 $ 34,141
Wholesale kWh sales (in millions) 986 870 1,410 1,232
Other electric revenues $ 21,284 $ 11,753 $ 43,602 $ 21,580
Total natural gas revenues $ 49,099 $ 54,583 $ 146,246 $ 189,449
Total therm sales (in thousands) 96,566 101,539 265,186 293,677
Retail natural gas customers at end of period 291,595 283,355 291,595 283,355
Income from operations (pre-tax) $ 41,026 $ 41,194 $ 77,899 $ 86,390
ENERGY MARKETING AND RESOURCE MANAGEMENT
Gross margin (operating revenues less resource costs) $ 9,596 $ 19,907 $ 38,497 $ 34,352
Income from operations (pre-tax) $ 4,616 $ 12,306 $ 24,421 $ 21,430
Electric sales (millions of kWhs) 11,499 13,370 21,007 22,269
Natural gas sales (thousands of dekatherms) 50,988 72,748 108,637 125,106
AVISTA ADVANTAGE
Revenues $ 4,970 $ 3,964 $ 9,734 $ 7,763
Loss from operations (pre-tax) $ (307) $ (1,894) $ (1,102) $ (4,310)
OTHER
Revenues $ 3,615 $ 3,452 $ 7,715 $ 6,379
Loss from operations (pre-tax) $ (1,226) $ (8,564) $ (2,119) $ (11,256)