Avista Reports Loss For Quarter

Costs stemming from the conversion of convertible-preferred stock and closure of most energy trading operations created a first-quarter loss at Avista Corp.

The company said those expenses, plus losses associated with building its emerging high-tech businesses, offset the earnings of its traditional utility operations.

Overall revenues during the quarter climbed to $1.38 billion from $1.21 billion during the 1999 period, but income from operations dipped to $29.1 million from $30.4 million.

Income available for common stock was $10.5 million before charges that left a $11.4 million loss, or 28 cents per share.

During the 1999 quarter, the company earned $14 million, or 34 cents per share.

Avista Utilities earned $19.9 million, compared with $19.5 million last year, despite warmer weather.

But converting the preferred shares in February cost $21.3 million. Restructuring of Avista Energy, the trading subsidiary, added $2.4 million to the red ink, although Avista Chairman Tom Matthews noted the surviving West Coast operations headquartered in Spokane earned $1.1 million. Boston and Houston offices are either closed or nearly closed, and their businesses liquidated.

Other subsidiaries also posted losses as they geared up their businesses.

Avista Advantage, the energy e-commerce operation, lost $1.9 million on revenues of $915,000.

Matthews said the subsidiary added several major accounts during the quarter. New features and an expanding relationship with Pittsburgh-based Strategic Energy LLC, a provider of energy commodities, should make the combined services more attractive, he said.

Avista Labs lost $1.5 million on revenues of $346,000, but also was awarded broad patent protections for its fuel cell design.

Avista Communications, which provides telecommunications services in Billings, Mont., Lewiston and Bellingham, lost $2.2 million on revenues of $1 million.

Matthews said Avista invested the equivalent of 12 cents per share in those businesses.

“We’ll continue to do whatever is necessary to ensure their success,” he said, adding that first-quarter growth in the value of company shares was a sign the market was beginning to recognize the potential of the new initiatives.

Avista shares closed Tuesday at $29.12, down $1.50.

In other local reports Tuesday:

Key Tronic Corp. reported fiscal-year third-quarter losses of $3.7 million, or 39 cents a share.

Quarterly revenue was $34.2 million, compared with $45.2 million for the same quarter in 1999.

Key Tronic officials said the decline is due to slumping sales of computer keyboards and a shortage of capacitors needed to produce new devices manufactured for other companies.

Also Tuesday, company officials announced the resignation of board Chairman Stanley Hiller Jr., effective from March 1. Before becoming chairman, Hiller served as Key Tronic chief executive officer from 1992 to 1995.

Hiller will devote his time to operating the Hiller Aviation Institute, a nonprofit research organization.

Dale Pilz, a Key Tronic board member since 1992, becomes chairman of the board.

Company officials say fourth-quarter total revenue should exceed $45 million. Key Tronic stock gained six cents on the Nasdaq stock market, closing at $2.75.

The Spokane Valley-based company makes computer peripherals and custom-designed devices for other technology companies.

FirstBank Northwest Corp. reported net income of $1.7 million, or $1.06 a share, for the 12-month period ending March 31.

Lower income from fees and higher expenses reduced the income from $2 million last year, officials said.

The past 12 months was a building year for the Lewiston-based bank, said Clyde E. Conklin, president and chief executive officer. The bank built new branches, invested in technology and increased service, he said.

Commercial loans now represent 30 percent of the bank’s lending, with residential loans at 39 percent of the total portfolio, the company said.