IDACORP Reports First Quarter 2002 Earnings
April 25, 2002
BOISE - IDACORP, Inc. (NYSE:IDA) today reported first quarter 2002 earnings of 66 cents per share, a 27-cents-per-share decline from last year's 93 cents per share.
Net income for the first quarter 2002 was $25 million, $10 million less than the same period a year earlier. The reduction was due to weakened performance by non-regulated operations.
"IDACORP Energy's weaker financial performance came from declining regional pricing spreads and fewer credit worthy counterparties in the markets," said IDACORP President and CEO Jan Packwood. "Idaho Power, our regulated business, contributed more to earnings this year, but is still recovering from the effects of last year's severe drought and high power supply costs."
The Company reaffirms its April 12 earnings-per-share guidance for 2002 to a range between $2.20 and $2.50.
Business Operations
IDACORP Energy
IDACORP Energy contributed 11 cents per share in the first quarter, down
51 cents per share from last year's strong performance. The company's quarterly
volume of settled power sales continues its upward trend, increasing 25 percent
to 13 million megawatt-hours (MWh) in first quarter 2002, compared to 10.4
million MWh in the fourth quarter 2001.
The dramatic decline in regional pricing spreads and volatility has driven
this decrease in earnings, despite the increase in settled sales volumes.
The company expects to offset the current soft market conditions with continued
focus on structured origination activity and growth in product offerings.
Idaho Power Company
While still below normal levels, Idaho Power's earnings improved to 57 cents
per share for the quarter, a 20-cents-per-share increase over the disappointing
37 cents per share earned in last year's first quarter. The increase reflects
better hydroelectric generating conditions and lower wholesale market prices
that led to lower power supply costs.
For the quarter, general business revenues were up $53 million. The primary driver of the increase in revenues was the May 1 and October 1, 2001, Power Cost Adjustment (PCA) rate increases combined with continued customer growth. The PCA increases were approved solely for power supply cost recovery and did not enhance bottom line performance. The revenue increase was dampened somewhat by load reduction programs and the impact of customers' response to higher retail prices.
The National Weather Service River Forecast Center is projecting that April-July inflow into Brownlee Reservoir, Idaho Power's key water storage facility, is expected to be 3.6 million acre-feet (maf). Average inflow into the reservoir is 6.3 maf.
Idaho Power added 1,273 general business customers during the first quarter 2002 and as of March 31, Idaho Power had 403,012 general business customers.
Other Subsidiaries
IDACORP Financial contributed 5 cents per share for the first quarter
2002, 2 cents per share more than last year's first quarter.
Ida-West Energy recorded a net loss of 2 cents per share for the first quarter as compared to a 1-cent-per-share gain in last year's first quarter. On April 15, Idaho Power exercised its option to delay the in-service date of the Garnet Energy Facility from June 1, 2004, to June 1, 2005. This decision was based on the fact that permitting, resource needs, and regulatory approval has extended beyond original projections.
IDACORP continues to invest in the future of power technology and communications through its subsidiaries IdaTech and IDACOMM. These entities and IDACORP's other business activities recorded a loss of 5 cents per share on the quarter, which is a 5-cents-per-share improvement when compared with the first quarter last year.
Conference Call
The Company will hold an analyst conference call today at 2:30 p.m. Mountain Time (4:30 p.m. Eastern Time). All parties interested in listening may do so through a live Web cast on the Internet. Details of the conference call logistics are posted on the Company's Web site ("http://www.idacorpinc.com"). A replay of the conference call will be available on the Company's Web site for a 15-day period beginning at the end of today.
Background Information
Boise, Idaho-based IDACORP, formed in 1998, is a holding company comprised of: Idaho Power, a regulated electric utility; Ida-West Energy, an independent power project management and development arm; IDACORP Energy, a marketer of energy and energy related products and services; IDACORP Financial, an investment vehicle which makes investments primarily in affordable housing projects; IdaTech, a developer and producer of fully integrated fuel cell systems; and IDACOMM, a telecommunications subsidiary providing high-speed Internet access technologies.
Certain statements contained in this news release, including statements with respect to future earnings, are "forward-looking statements" within the meaning of the federal securities laws. Although IDACORP believes that the expectations and assumptions reflected in these forward-looking statements are reasonable, these statements involve a number of risks and uncertainties, and actual results may differ materially from the results discussed in the statements. Important factors that could cause actual results to differ materially from the forward-looking statements include: the current energy situation in the western United States, market demand and prices for energy, capacity and fuel; weather variations affecting customer energy usage; operating performance of plants and other facilities; environmental conditions and requirements; and system conditions and operating costs. Any such forward-looking statements should be considered in light of such factors and others noted in Form 10-K for the year 2001, and other reports on file with the Securities and Exchange Commission.
- IDACORP, Inc. Consolidated Earnings Statements
- IDACORP, Inc. Statements of Cash Flows
- IDACORP, Inc. Consolidated Balance Sheets
- Idaho Power Company Supplemental Operating Statistics
- IDACORP Energy Unconsolidated Operating Statistics $(000)'s
IDACORP, Inc.
Consolidated Earnings Statements
For Periods Ended March 31, 2002 and 2001
Summary Financial Information
(Millions of Dollars, except per share data)
| 3 Months Ended | ||
|---|---|---|
| 3/31/02 | 3/31/01 | |
| Operating Revenues: | ||
| Electric utility: | ||
| General business | $ 186 | $ 133 |
| Off-system sales | 20 | 55 |
| Other revenues | 9 | 12 |
| Total electric utility revenue | 215 | 200 |
| Energy marketing: | ||
| Energy commodities & services: | 434 | 929 |
| Other | 4 | 3 |
| Total Operating Revenues | 653 | 1,132 |
| Operating Expenses: | ||
| Electric utility: | ||
| Purchased power | 30 | 125 |
| Fuel expense | 28 | 25 |
| Power cost adjustment | 34 | (58) |
| Other operations & maintenance | 50 | 49 |
| Depreciation | 23 | 21 |
| Taxes other than income | 5 | 5 |
| Total electric utility operations | 170 | 167 |
| Energy marketing: | ||
| Cost of energy commodities and services |
425 | 858 |
| Selling, administrative & general | 3 | 33 |
| Other | 8 | 9 |
| Total Operating Expenses | 606 | 1,067 |
| Operating Income: | ||
| Electric utility | 45 | 33 |
| Energy marketing | 6 | 38 |
| Other | (4) | (6) |
| Total Operating Income | 47 | 65 |
| Other Income | 5 | 5 |
| Interest Expense and Other | ||
| Interest on long-term debt | 13 | 13 |
| Other interest expense | 4 | 3 |
| Preferred dividends-Idaho Power Co. | 1 | 2 |
| Total Interest and Other | 18 | 18 |
| Income Before Income Taxes | 34 | 52 |
| Income Taxes | 9 | 17 |
| Net Income | $ 25 | $ 35 |
| Avg. Common Shares Outstanding (000's) |
37,560 | 37,359 |
| Earnings per Share (Basic and Diluted) |
$ 0.66 | $ 0.93 |
|
IDACORP, Inc. Summary Financial Information
| ||
| 3 Months Ended | ||
|---|---|---|
| 3/31/02 | 3/31/01 | |
| Operating Activities | ||
| Net Income | $ 25 | $ 35 |
| Adjustment to reconcile net income to net cash provided by (used in) operating activities: |
||
| Allowance for uncollectable accounts |
- | 20 |
| Unrealized (gains) losses from energy marketing activities |
20 | (75) |
| Depreciation and amortization | 27 | 26 |
| Deferred taxes and investment credits |
(14) | 62 |
| Accrued PCA costs | 30 | (60) |
| Change in: | ||
| Receivables and prepayments | 22 | (23) |
| Accounts payable | (88) | (48) |
| Taxes receivable/accrued | 66 | (32) |
| Other | 21 | (32) |
| Net cash provided by (used in) operating activities |
109 | (127) |
| Investing Activities | (72) | (57) |
| Financing Activities | ||
| Proceeds from issuance of long-term debt |
- | 120 |
| Retirement of long-term debt | (52) | (80) |
| Increase (decrease) in short-term borrowings |
23 | 96 |
| Dividends on common stock | (17) | (17) |
| Other | 1 | (12) |
| Net cash provided by (used in) financing activities |
(45) | 107 |
| Net increase (decrease) in cash and cash equivalents |
(8) | (77) |
| Cash and cash equivalents beginning of period |
67 | 107 |
| Cash and cash equivalents end of period |
$ 59 | $ 30 |
| IDACORP, Inc. Consolidated Balance Sheets For Periods Ended March 31, 2002 and December 31, 2001 Summary
Financial Information
| ||
| 3/31/02 | 12/31/01 | |
|---|---|---|
| Assets | ||
| Cash and cash equivalents | $ 59 | $ 67 |
| Receivables net of allowance | 157 | 181 |
| Energy marketing assets | 102 | 194 |
| Other current assets | 140 | 211 |
| Total current assets | 458 | 653 |
| Investments | 207 | 159 |
| Property, plant and equipment-net | 1,889 | 1,886 |
| Energy marketing assets- long-term | 138 | 204 |
| Regulatory assets | 509 | 544 |
| Other assets | 198 | 196 |
| Total other assets | 845 | 944 |
| Total Assets | $ 3,399 | $ 3,642 |
| Liabilities and Shareholders' Equity | ||
| Current maturities of long-term debt | $ 36 | $ 36 |
| Notes payable | 386 | 363 |
| Accounts payable | 160 | 248 |
| Energy marketing liabilities | 104 | 125 |
| Derivative liabilities | 29 | 41 |
| Other current liabilities | 72 | 94 |
| Total current liabilities | 787 | 907 |
| Deferred income taxes | 584 | 590 |
| Energy marketing liabilities - long-term |
54 | 135 |
| Derivative liabilities - long-term |
3 | 7 |
| Regulatory liabilities | 116 | 114 |
| Other liabilities | 78 | 71 |
| Total other liabilities | 835 | 917 |
| Long-term debt | 791 | 843 |
| Preferred stock of Idaho Power Co. | 104 | 104 |
| Shareholders' equity | 882 | 871 |
| Total Liabilities & Shareholders' Equity |
$ 3,399 | $ 3,642 |
| 3 Months Ended | ||
|---|---|---|
| 3/31/02 | 3/31/01 | |
| Energy Use - MWh | ||
| Residential | 1,356,062 | 1,349,845 |
| Commercial | 877,601 | 833,960 |
| Industrial | 773,677 | 1,063,728 |
| Irrigation | 2,728 | 1,898 |
| Total General Business | 3,010,058 | 3,249,431 |
| Off-System Sales | 821,956 | 494,872 |
| Total | 3,832,014 | 3,744,303 |
| Revenue ($000's) | ||
| Residential | $ 94,154 | $ 69,735 |
| Commercial | 48,585 | 32,705 |
| Industrial | 43,120 | 30,533 |
| Irrigation | 261 | 148 |
| Total General Business | 186,120 | 133,121 |
| Off-System Sales | 20,159 | 55,249 |
| Total | $ 206,279 | $ 188,370 |
| Customers - Period End | ||
| Residential | 336,702 | 329,470 |
| Commercial | 52,373 | 51,220 |
| Industrial | 113 | 117 |
| Irrigation | 13,824 | 15,127 |
| Total | _ 403,012 | 395,934 |
| Revenue (1) | $ 436,549 | $ 1,038,542 |
| Cost of Goods Sold (1) | 427,031 | 966,567 |
| Gross Margin | 9,518 | 71,975 |
| SG&A | 3,257 | 33,428 |
| Operating Margin | $ 6,261 | $ 38,547 |
| Value at Risk: | ||
| End of period 95% confidence level | $ 1,683 | $ 4,363 |
| End of period 99% confidence level | $ 2,384 | $ 6,181 |
| Avg. over Period (95% confidence) | $ 1,391 | $ 7,398 |
| Settled Volume: | ||
| Electricity (mwh's) | 12,997,815 | 6,308,614 |
| Natural Gas (mmbtu's) | 12,173,707 | 17,383,287 |
(1) These amounts differ from those reported on the Consolidated Earnings Statements
due to intersegment eliminations.
|
|