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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): June 15, 1999
AVISTA CORPORATION
(Exact name of registrant as specified in its charter)
Washington 1-3701 91-0462470
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(State or other jurisdiction of (Commission (I.R.S. Employer
incorporation or organization) File Number) Identification No.)
1411 East Mission Avenue, Spokane, Washington 99202-2600
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: 509-489-0500
Web site: http://www.avistacorp.com -------------------
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(Former name or former address, if changed since last report)
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ITEM 5. OTHER INFORMATION
A copy of the press release announcing anticipated lower second quarter earnings
is attached hereto as Exhibit 99 and is incorporated herein by reference.
Neither the filing of any press release as an exhibit to this Current Report nor
the inclusion in such press releases of a reference to the Company's Internet
address shall, under any circumstances, be deemed to incorporate the information
available at such Internet address into this Current Report. The information
available at the Company's Internet address is not part of this Current Report
or any other report filed by the Company with the Securities and Exchange
Commission.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
AVISTA CORPORATION
(Registrant)
Date: June 15, 1999 /s/ Jon E. Eliassen
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Jon E. Eliassen
Senior Vice President and
Chief Financial Officer
(Principal Accounting and
Financial Officer)
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Exhibit 99
[AVISTA CORP. LOGO]
NEWS RELEASE
CONTACT: Media: Patrick Lynch 509-495-4246 email: [email protected]
Investment Community: Ron Peterson 509-495-8045
e-mail: [email protected] or
Jon Eliassen 509-495-4347
e-mail: [email protected]
FOR IMMEDIATE RELEASE:
June 14, 1999
1:33 p.m. PDT
AVISTA CORP. ANTICIPATES LOWER SECOND QUARTER EARNINGS
CONTINUED SOFT NATIONAL ENERGY MARKETS, LOSSES WITHIN ENERGY
MARKETING AND TRADING BUSINESS CAUSE COMPANY TO LOWER EXPECTATIONS;
POSITIVE RESULTS FROM AVISTA ENERGY EXPECTED FOR JUNE AND FOR REMAINDER OF 1999
SPOKANE, WASH.: Avista Corp. (NYSE:AVA) said today that its preliminary
estimates indicate second quarter earnings per share will fall below securities
analysts' current consensus second quarter estimate of $0.33 per share.
Avista Corp. experienced losses through the first two months of the second
quarter within Avista Energy, its national energy marketing and trading
affiliate, said T.M Matthews, Avista Corp.'s board chairman, president and chief
executive officer. Avista Energy results throughout the first half of 1999 have
been affected by weak national energy prices, unfavorable weather issues in the
Northwest and the lack of volatility within virtually all commodities. However,
Matthews said he expects positive results from Avista Energy in June and for the
remainder of 1999, based on full integration of Vitol Gas & Electric, its strong
management team, and key staff additions that have also substantially
strengthened the Avista Energy team. Despite this expected turnaround, Matthews
said overall Avista Energy results for the year could be a negative 10 cents per
share because of the February through May losses.
"We believe the steps we have taken to improve and expand our national
strategy are sound and, not withstanding the near term costs we are experiencing
to implement it, our confidence in those actions will be born out throughout the
remainder of the year and in the future," Matthews said.
Avista Energy, Matthews reiterated, has significantly strengthened its
management team and its marketing and trading group through the addition of new
energy leadership in its Spokane, Houston and Boston offices. This addition of
intellectual capital is a significant step in strengthening Avista Energy's
position as a leading national energy company, he said. The second half of 1999
will also see the full integration of Vitol Gas & Electric into Avista Energy,
the addition of a significant number of energy professionals to the Avista
Energy team, the consolidation of back-office support, improvement in accounting
and trading processes and personnel, and continued enhancements in risk
management systems across the entire company.
Avista Corp., a Fortune 500 company with annual revenues of more than $4
billion, is a diversified energy company with utility and subsidiary operations
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
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companies include Avista Energy, Avista Energy Canada, Ltd., Avista Power,
Avista Advantage, Avista Labs, Avista Fiber, Avista Communications, Avista
Development and Pentzer Corporation. Avista Corp.'s portfolio of businesses
focuses on creating and delivering energy and information to homes and
businesses throughout the United States and Canada. Avista Corp.'s stock is
traded under the ticker symbol "AVA." For more information about Avista Corp.
and its affiliate businesses, visit the corporate website at www.avistacorp.com.
This news release contains 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 1998 and the Quarterly Report on Form 10-Q for
the quarter ended March 31, 1999.
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