IDACORP's First Quarter Earnings Surpass Expectations
April 26, 2000
BOISE - IDACORP, Inc. (NYSE:IDA) today reported better-than expected first quarter earnings resulting from several factors including a one-time $14 million pre-tax gain on the sale of subsidiary Ida-West Energy's Hermiston Power Project, energy marketing and growing subsidiary contributions.
Highlights:
- Earnings per share: $1.12 in 2000 vs. $0.78 in 1999
- Ida-West's Hermiston sale results in $14 million pre-tax gain
- Marketing contribution increases $7.8 million
- Idaho Power's annual customer growth continues at 3 percent
IDACORP (the Company) reported earnings of $1.12 per share for the first quarter, up 34 cents over 1999's first quarter results of 78 cents per share.
The Hermiston sale contributed 22 cents per share of the increased earnings. Ida-West sold its interest in the Hermiston Project in March.
Partially countering these positive aspects was a decline in operating revenues and an increase in expenses at the Company's principal subsidiary, Idaho Power. Its operating revenues were $166.3 million, down $7.8 million from 1999, due primarily to the impact of the 1999 Power Cost Adjustment (PCA) rate decrease of 9 percent. The $9.3 million decrease in revenues was partly offset by continued customer growth which provided an approximate $3 million increase in revenues for the quarter. Off-system sales were down $1.6 million as a result of less energy available for sale.
Income from Operations for the quarter decreased $3.9 million from 1999. The decrease is attributable to increased operating expenses of $4.1 million. Operating expenses increased due to the impact of general wage adjustments in January, increased wheeling expenses, and increased depreciation and amortization accruals related to property additions and demand side management expenses.
The $9.3 million net increase in other income is attributable to an increase in the Company's marketing activities of $7.8 million combined with additional contributions of $1.2 million from subsidiary operations, excluding Idaho Power.
"We have seen profitable growth in our marketing programs over the past three years and we are pleased with our first quarter results," said President and CEO Jan B. Packwood. "We continue to maximize our core competencies within our established risk parameters and leverage our knowledge of the Western U.S. markets to provide value to the bottom line." Idaho Power added 10,218 customers over the past 12 months. As of March 31, Idaho Power has 385,247 general business customers.
This news release may contain forward-looking statements regarding the company's current expectations. These statements are subject to a variety of risks and uncertainties that 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 1999.
| IDACORP, Inc. Condensed Consolidated Earnings Statements For Periods Ended March 31, 2000 (unaudited) Summary Financial Information |
||||
| 3 Months Ended | Twelve Months Ended | |||
|---|---|---|---|---|
| 3/31/00 | 3/31/99 | 3/31/00 | 3/31/99 | |
| Operating Revenues | $ 166,333 | $ 174,149 | $ 650,520 | $ 759,646 |
| Operating Expenses: | ||||
| Power Supply | 40,807 | 48,915 | 184,350 | 293,359 |
| Other Operating Expenses | 69,560 | 65,405 | 297,575 | 281,643 |
| Income from Operations | 55,966 | 59,829 | 168,595 | 184,644 |
| Gain on sale of Hermiston | 14,000 | - | 14,000 | - |
| Other Income - Net | 12,409 | 3,140 | 40,988 | 20,023 |
| Net Income | $ 42,079 | $ 29,501 | $ 103,927 | $ 90,626 |
| Avg. Common Shares Outstanding | 37,612 | 37,612 | 37,612 | 37,612 |
| Earnings per Share (Basic and Diluted) | $ 1.12 | $ 0.78 | $ 2.76 | $ 2.41 |
| Book Value per Common Share | - | - | $ 20.67 | $ 19.73 |
| Return on Year-End Equity (12 mos) | - | - | 13.37 % | 12.21 % |
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