Published:
IDACORP Announces First Quarter 2008 Results
IDACORP Announces First Quarter 2008 Results
BOISE, Idaho, May 8 /PRNewswire-FirstCall/ -- IDACORP, Inc. (NYSE: IDA)
reported first quarter net income of $21.7 million, or 48 cents per share,
compared to $24.6 million or 56 cents per share in 2007.
"Our hydroelectric production levels during the quarter were lower than
last year and below average for the period," said IDACORP President and Chief
Executive Officer J. LaMont Keen. "Higher power supply costs, reduced
earnings at Bridger Coal Company, and greater interest charges contributed to
the decline in earnings. Increases in revenues due to colder weather over the
first three months and higher retail rates during March partially offset the
earnings decline."
Settlement of the company's 2007Idaho general rate case increased rates
an average of 5.2 percent effective March 1. Keen noted this increase is
expected to enhance earnings over the balance of the year.
Analysis of Earnings per Diluted Share
The following table summarizes diluted earnings (losses) per share from
each business:
Three months ended
March 31,
2008 2007
Earnings (Losses) From:
Idaho Power $0.47 $0.53
IDACORP Financial Services 0.02 0.04
Ida-West Energy 0.00 0.00
Holding Company (0.01) (0.01)
Earnings Per Diluted Share $0.48 $0.56
First Quarter 2008 Performance Summary
A summary of IDACORP's net income and earnings per diluted share for the
first quarter of the last two years is as follows:
Three months ended
March 31,
2008 2007
Net income ($000's) $ 21,716 $ 24,647
Average outstanding shares -- diluted (000s) 45,004 43,820
Earnings per diluted share $ 0.48 $ 0.56
The key factors affecting the change in IDACORP's net income for the first
quarter of 2008 include (amounts shown are net of income taxes):
-- IPC's net income was $21.3 million in the first quarter of 2008, a
decrease of $2 million as compared to the first quarter of 2007. The
key factors affecting the change in IPC's net income include:
-- Increased retail sales contributed $5.9 million to general
business revenue for the quarter. IPC's service territory had 15
percent more heating degree days as compared to the same period in
2007 and four percent more heating degree days than normal. IPC
continues to experience customer growth, with the average number
of general business customers increasing 9,166 compared to the
first quarter of 2007, an increase of two percent.
-- Rate increases added $12.4 million to general business revenue for
the quarter as compared to the same period last year. A PCA
increase on June 1, 2007 increased rates by an average of 14.5
percent, or $11.8 million. In addition, a general rate increase
of 5.2 percent became effective March 1, 2008, and increased
general business revenue $0.6 million.
-- Increased net power supply costs (fuel and purchased power less
off-system sales), net of the current PCA deferral decreased
earnings by $17.7 million (including the effects of the LGAR
described below) for the quarter as compared to the same period
last year. During the first quarter of 2008, IPC experienced poor
hydroelectric generating conditions that have carried over from
2007. IPC's hydroelectric generation decreased to 46 percent of
total system generation for the quarter as compared to 51 percent
in 2007.
-- The Load Growth Adjustment Rate (LGAR) mechanism, a component
of the PCA, reduced earnings by $3.2 million. Most of the
impact came in January and February as base loads and the rate
were reset in March in connection with the general rate case.
-- Bridger Coal Company's results in the first quarter were $1.6
million below last year, primarily due to difficulties with its
underground longwall mining operations in January and February
2008.
-- Increased interest charges, primarily due to increases in
long-term debt balances and variable interest rates, reduced
earnings $1.7 million.
-- IFS earnings decreased $1.1 million for the quarter. The reduction is
primarily due to lower tax benefits from aging investments and lower
earnings on variable rate instruments.
2008 Outlook
The Northwest River Forecast Center (NWRFC) currently projects 4.9 million
acre-feet (maf) of water will flow into Brownlee Reservoir during the April
through July period. The NWRFC's 30-year average measured inflow into
Brownlee is 6.3 maf during the period. In 2007, April-July inflows were 2.8
maf.
The outlook for key operating and financial metrics is:
2008 Estimates
Key Operating & Financial Metrics (1) Current Previous
Idaho Power Operation & Maintenance
Expense (Millions) No change $285-$295
Idaho Power Capital Expenditures
(Millions) (2) $270-$290 $280-$300
Idaho Power Hydroelectric Generation
(Million MWh) (3) 6.0-8.0 7.0-9.0
Non-regulated Subsidiary Earnings Per
Share (4) No change $0.05-$0.10
Effective Tax Rates:
Idaho Power No change 32%-36%
Consolidated -- IDACORP No change 20%-24%
(1) Key operating and financial metrics will be updated quarterly.
(2) The decrease in capital expenditures is due to the impact of the
estimated decline in new customer connections and the deferral of
certain capital expenditures.
(3) The decrease in the range is attributable to a change in the level of
actual versus forecasted precipitation during the spring period. For
the first four months of 2008 actual precipitation has been less than
50% of normal.
(4) Estimates include contributions from Ida-West Energy and IDACORP
Financial netted against holding company expenses.
Web Cast / 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. 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 period
of 12 months.
Background Information / Safe Harbor Statement
Boise, Idaho-based IDACORP, formed in 1998, is a holding company comprised
of Idaho Power Company, a regulated electric utility; IDACORP Financial, a
holder of affordable housing projects and other real estate investments; and
Ida-West Energy, an operator of small hydroelectric generation projects that
satisfy the requirements of the Public Utility Regulatory Policies Act of
1978.
Certain statements contained in this news release, including statements
with respect to future earnings, ongoing operations, and financial conditions,
are "forward-looking statements" within the meaning of federal securities
laws. Although IDACORP and Idaho Power believe 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.
Factors that could cause actual results to differ materially from the
forward-looking statements include: changes in and compliance with
governmental policies, including new interpretations of existing policies, and
regulatory actions and regulatory audits, including those of the Federal
Energy Regulatory Commission, the North American Electric Reliability
Corporation, the Western Electricity Coordinating Council, the Idaho Public
Utilities Commission, and the Oregon Public Utility Commission with respect to
allowed rates of return, industry and rate structure, day-to-day business
operations, acquisition and disposal of assets and facilities, operation and
construction of plant facilities, provision of transmission services,
relicensing of hydroelectric projects, recovery of power supply costs,
recovery of capital investments, present or prospective wholesale and retail
competition, including but not limited to retail wheeling and transmission
costs, and other refund proceedings; changes arising from the Energy Policy
Act of 2005; changes in tax laws or related regulations or new interpretations
of applicable law by the Internal Revenue Service or other taxing
jurisdiction; litigation and regulatory proceedings, including those resulting
from the energy situation in the westernUnited States, and penalties and
settlements that influence business and profitability; changes in and
compliance with laws, regulations, and policies including changes in law and
compliance with environmental, natural resources, endangered species and
safety laws, regulations and policies and the adoption of laws and regulations
addressing greenhouse gas emissions or global climate change; global climate
change and weather variations affecting customer demand and hydroelectric
generation; over-appropriation of surface and groundwater in the Snake River
Basin resulting in reduced generation at hydroelectric facilities;
construction of power generation, transmission and distribution facilities,
including an inability to obtain required governmental permits and approvals,
rights-of-way and siting, and risks related to contracting, construction and
start-up; operation of power generating facilities including performance below
expected levels, breakdown or failure of equipment, availability of
transmission and fuel supply; changes in operating expenses and capital
expenditures, including costs and availability of materials, fuel and
commodities; blackouts or other disruptions of Idaho Power Company's
transmission system or the western interconnected transmission system; impacts
from the formation of a regional transmission organization or the development
of another transmission group; population growth rates and other demographic
patterns; market prices and demand for energy, including structural market
changes; fluctuations in sources and uses of cash; results of financing
efforts, including the ability to obtain financing on favorable terms, which
can be affected by factors such as credit ratings and general economic
conditions; actions by credit rating agencies, including changes in rating
criteria and new interpretations of existing criteria; changes in interest
rates or rates of inflation; performance of the stock market and changes in
interest rates, which affect the amount of required contributions to pension
plans, and the reported costs of providing pension and other postretirement
benefits; increases in health care costs and the resulting effect on medical
benefits paid for employees; increasing costs of insurance, changes in
coverage terms and the ability to obtain insurance; homeland security, acts of
war or terrorism; natural disasters and other natural risks, such as
earthquake, flood, drought, lightning, wind and fire; adoption of or changes
in critical accounting policies or estimates; and new accounting or Securities
and Exchange Commission requirements, or new interpretation or application of
existing requirements. Any such forward-looking statements should be
considered in light of such factors and others noted in the companies' Annual
Report on Form 10-K for the year ended December 31, 2007 and other reports on
file with the Securities and Exchange Commission. Any forward-looking
statement speaks only as of the date on which such statement is made. New
factors emerge from time to time and it is not possible for management to
predict all such factors, nor can it assess the impact of any such factor on
the business or the extent to which any factor, or combination of factors, may
cause results to differ materially from those contained in any forward-looking
statement.
IDACORP, Inc.
Condensed Consolidated Statements of Income
For Periods Ended March 31, 2008 and 2007
Summary Financial Information
(unaudited)
(Thousands of Dollars, except per share amounts)
Three Months Ended
3/31/08 3/31/07
Operating Revenues:
Electric Utility:
General business $167,313 $137,251
Off-system sales 33,363 57,838
Other revenues 12,120 10,839
Total electric utility revenues 212,796 205,928
Other 644 783
Total Operating Revenues 213,440 206,711
Operating Expenses:
Electric Utility:
Purchased power 45,299 50,817
Fuel expense 37,237 30,913
Power cost adjustment (17,744) (21,536)
Other operations & maintenance 68,927 67,827
Demand-side management 3,364 2,115
Depreciation 25,750 25,290
Taxes other than income taxes 4,803 4,918
Total electric utility expenses 167,636 160,344
Other 1,048 2,588
Total Operating Expenses 168,684 162,932
Operating Income (Loss):
Electric Utility 45,160 45,584
Other (404) (1,805)
Total Operating Income 44,756 43,779
Other Income 4,417 5,389
Losses of Unconsolidated
Equity-Method Investments (4,036) (1,326)
Other Expenses 365 3,212
Interest Expense:
Interest on long-term debt. 16,876 13,548
Other interest 596 1,604
Total Interest expense 17,472 15,152
Income Before Income Taxes 27,300 29,478
Income Tax Expense 5,584 4,898
Income from Continuing Operations 21,716 24,580
Income from Discontinued
Operations (net of tax) - 67
Net Income $21,716 $24,647
Weighted Average Common Shares
Outstanding-Basic (000's) 44,847 43,687
Weighted Average Common Shares
Outstanding-Diluted (000's) 45,004 43,820
Earnings per Share of Common Stock
(basic & diluted):
Earnings per Share from Continuing Operations $0.48 $0.56
Earnings per Share from Discontinued Operations 0.00 0.00
Diluted Earnings per Share of Common Stock $0.48 $0.56
Dividends Paid per Share of Common Stock $0.30 $0.30
IDACORP, Inc.
Condensed Consolidated Statements of Cash Flows
For the Three Months Ended March 31, 2008 and 2007
Summary Financial Information
(unaudited)
(Thousands of Dollars)
Three Months Ended
3/31/08 3/31/07
Operating Activities
Net Income $ 21,716 $ 24,647
Adjustments to reconcile net
income to net cash provided by
operating activities:
Depreciation and amortization 30,777 30,287
Deferred income taxes and
investment tax credits 12,617 7,580
Changes in regulatory assets
and liabilities (20,466) (19,002)
Undistributed (earnings)
losses of subsidiaries 931 (1,566)
Gain on sales of assets - (1,604)
Other non-cash adjustments
to net income 120 2,515
Change in:
Accounts receivable and prepayments 1,811 602
Accounts payable and other
accrued liabilities (29,869) (46,132)
Taxes accrued (5,843) 593
Other 9,123 23,101
Net cash provided by operating activities 20,917 21,021
Investing Activities
Additions to property, plant
and equipment (52,863) (49,601)
Proceeds from the sale of IDACOMM - 7,283
Investments in affordable housing (8,487) 300
Investments in unconsolidated
affiliates (5,000) (350)
Purchase of available-for-sale securities - (24,349)
Proceeds from the sale of available-for-
sale securities - 25,296
Purchase of held-to-maturity securities - (400)
Maturity of held-to-maturity securities 1,780 530
Other assets (531) 481
Net cash used in investing activities (65,101) (40,810)
Financing Activities
Retirement of long-term debt (1,779) (2,696)
Dividends on common stock (13,475) (13,131)
Net change in short-term borrowings 57,063 27,427
Issuance of common stock 2,213 2,234
Acquisition of treasury stock (269) (338)
Other (131) (38)
Net cash provided by financing activities 43,622 13,458
Net decrease in cash and cash equivalents (562) (6,331)
Cash and cash equivalents at
beginning of period 7,966 9,892
Cash and cash equivalents at
end of period $ 7,404 $ 3,561
IDACORP, Inc.
Condensed Consolidated Balance Sheets
As of March 31, 2008 and December 31, 2007
Summary Financial Information
(unaudited)
(Thousands of Dollars)
3/31/08 12/31/07
Assets
Cash and cash equivalents $ 7,404 $ 7,966
Receivables, net of allowance 118,521 118,695
Employee notes 2,171 2,128
Other current assets 135,818 137,918
Total current assets 263,914 266,707
Investments 205,452 201,085
Property, plant and equipment-net 2,648,969 2,616,552
Regulatory assets 473,146 449,668
Employee notes - long-term 2,328 2,325
Other assets 115,655 116,971
Total other assets 591,129 568,964
Total Assets $ 3,709,464 $ 3,653,308
Liabilities and Shareholders' Equity
Current maturities of
long-term debt $ 11,328 $ 11,456
Notes payable 243,509 186,445
Accounts payable 58,536 85,116
Other current liabilities 100,549 92,298
Total current liabilities 413,922 375,315
Deferred income taxes 479,589 466,182
Regulatory liabilities 275,425 274,204
Other liabilities 167,751 173,412
Total other liabilities 922,765 913,798
Long-term debt 1,155,290 1,156,880
Shareholders' equity 1,217,487 1,207,315
Total Liabilities &
Shareholders' Equity $ 3,709,464 $ 3,653,308
Idaho Power Company Supplemental Operating Statistics
Three Months Ended
3/31/08 3/31/07
Energy Use -- MWh
Residential 1,588,912 1,464,276
Commercial 998,994 943,210
Industrial 850,838 871,215
Irrigation 11,061 5,226
Total General Business 3,449,805 3,283,927
Off-System Sales 517,944 964,388
Total 3,967,749 4,248,315
Revenue ($000's)
Residential $95,242 $78,582
Commercial 44,675 36,208
Industrial 26,657 22,099
Irrigation 739 362
Total General Business 167,313 137,251
Off-System Sales 33,363 57,838
Total $200,676 $195,089
Customers -- Period End
Residential 401,228 394,942
Commercial 63,026 60,877
Industrial 121 126
Irrigation 18,148 17,872
Total 482,523 473,817
SOURCE IDACORP, Inc.
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Copyright © 2008, NewsBlaze,
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