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Please refer to pages 16-17 of this report for detailed disclosure and certification information.
* D. A. Davidson & Co. makes a market in this security.
Institutional Equity Research
IDACORP, Inc.
October 5, 2012 IDA* – NYSE
Rating: Buy
Price: (10/4/12) $43.07
Price Targets: 12-18 month: $48.50
5-year: $56.00
Industry:
Utilities
Michael Bates
503.603.3045
mbates@dadco.com
Defensive Utility Play with Compelling Long-Term Upside
Poised for dividend growth. Boise-based IDACORP has operated as a
regulated electric utility in the Intermountain West for nearly a century. With a
multi-year construction cycle now behind it, the firm has increased its quarterly
dividend 27% since 4Q’11. We expect dividend increases of 10%-15% per year
through 2015 as the Board moves the payout ratio closer to the peer average.
Constructive regulators. The utility’s financial profile is supported by a strong
regulatory backstop, as demonstrated by the implementation of various rate
trackers, decoupling, and a guaranteed ROE floor of 9.5% per year.
Introducing a 2014 forecast of $3.35, driven by modest load growth and a
higher rate base. We expect IDA’s earnings growth to average ~4% per year over
the next five years, which would be at the low end of its peer group. We see
potential for upside on our growth forecast, depending on the utility’s success in
accelerating its transmission, hydro relicensing, and generation projects.
BUY rated. IDA’s 10% valuation discount relative to the peer group is compelling,
in light of its top-tier dividend growth trajectory, supportive regulatory backdrop,
and ROE floor. The stock is currently held back by a general lack of visibility as to
the timing of future growth opportunities, but the embedded potential represents
an attractive source of upside when the clouds clear, which will cause the current
valuation discount to narrow. Our $48.50 target equates to 14.9x our 2013 EPS
estimate and an expected forward dividend yield of 3.4%.
Valuation Data
Long-term growth rate (E) 4% Total Debt/Cap (6/30/12) 48.6% Cash per share (6/30/12) $0.29 Book value per share (6/30/12) $33.74
Dividend (yield) $1.52 (3.5%)
Return on Equity (T-T-M) 10.9%
Trading Data
Shares outstanding (M) 50.2
Market Capitalization ($M) $2,160
52-week range $37.26 - $44.03
Average daily volume (3 mos.) (K) 211
Float 99%
Index Membership S&P 400
FY (Dec) 2011A 2012E Previous 2013E Previous
Revenue ($M) Q1 (Mar) $251 $241 A - n.a. n.a.
Q2 (Jun) $235 $255 A - n.a. n.a.
Q3 (Sep) $310 $381 E $341 n.a. n.a.
Q4 (Dec) $231 $262 E $245 n.a. n.a.
$1,027 $1,138 E $1,082 $1,172 $1,130
Price/Revenue 2.1x 1.9x 1.8x
EPS Q1 (Mar) $0.60 $0.50 A - n.a. n.a.
Q2 (Jun) $0.42 $0.71 A - n.a. n.a.
Q3 (Sep) $2.16 $1.50 E NC n.a. n.a.
Q4 (Dec) $0.18 $0.57 E NC n.a. n.a.
$3.36 $3.27 E NC $3.25 NC
Price/EPS 12.8x 13.2x 13.2x
EBITDA ($M) Q1 (Mar) $83 $81 A - n.a. n.a. Q2 (Jun) $65 $93 A - n.a. n.a.
Q3 (Sep) $110 $150 E $151 n.a. n.a.
Q4 (Dec) $49 $88 E $91 n.a. n.a.
$306 $413 E $420 $411 $454
EV/EBITDA 12.2x 9.1x 9.1x
D.A. Davidson & Co.
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Price Chart
Source: Capital IQ
Company Description:
Boise, ID -- IDACORP, Inc. is the holding company for the Idaho Power Company, an electric public utility that serves an approximate
24,000 square mile area in Southern Idaho and Eastern Oregon. Non-regulated subsidiaries include an affordable housing project
finance company and an operator of small hydroelectric generation projects.
Potential Risks:
Regulatory/Legislative. Changes in the regulatory and/or legislative environment could influence the utility’s business practices,
credit ratings/access to capital markets, rate structure, cost recovery, and ability to achieve adequate returns on its investments.
Economic and weather conditions. The firm’s financial results and operating strategy are sensitive to the economic climate
(including fluctuations in commodity prices) and regional weather conditions (including streamflows).
Project delays or cancellations. Development of the utility’s projects could be delayed or cancelled for numerous reasons.
Interest rates. Access to capital under competitive terms is critical to the company’s capital expenditure programs. Interest rate
increases may also lead to compression in utility stock prices.
Litigation. Electric utilities commonly face legal challenges regarding their electric generating facilities, particularly coal-fired units.
These matters often stretch out over long time periods and can have unpredictable outcomes. In the event an adverse outcome
were handed down, the impact could be significant, despite the firm’s mitigation efforts.
D.A. Davidson & Co.
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Boise-based IDACORP has positioned itself for strong dividend growth, on the heels of
a recent rate base expansion. The utility’s strong balance sheet, low payout ratio, and
strong regulatory backdrop create a compelling defensive profile. Several opportunities
on the horizon represent an attractive source of upside for patient investors.
IDACORP traces its roots as far back as 1916, when a group of five small regional utilities in
Idaho, Oregon, and Nevada combined to form Idaho Power. Access to inexpensive and
abundant hydroelectric resources along the Snake River allowed the firm to keep pace with
rapid population growth in the latter half of the 20th century.
The firm added a number of unregulated subsidiaries in the 1990s, to utilize the utility’s strong
cash flow stream to accelerate earnings growth. The firm was re-incorporated under a holding
company structure in 1998, with the regulated utility (its primary operating subsidiary) being
joined by several subsidiaries involved in competitive energy services, affordable housing
investments, and independent power generation.
The diversified strategy was relatively short-lived, as underperformance from its unregulated
businesses prompted the firm in 2003 to restructure and divest most non-core operations. The
utility also announced a 35% dividend cut to maintain its credit ratings and fund Idaho Power’s
growing capital expenditure needs. Although it recovered financially within a couple of years,
the Board maintained a flat dividend from 2003-2011 despite the firm’s strong earnings stream,
resulting in one of the lowest payout ratios in the sector by 2011.
Idaho Power represents IDACORP’s primary arm and is the firm’s only reportable segment.
The firm owns a small portfolio of unregulated ventures involved in coal mining (Bridger Coal),
affordable housing (IDACORP Financial), and non-utility power projects (IDA-West), which
contributed less than 1% of net income in 2011.
Idaho Power is the largest regulated electric utility in Idaho, providing service to roughly
500,000 electric customers in Idaho and Oregon, with Boise, ID being its largest population
center (Figure 1). The utility derives ~95% of its retail revenue from customers within its Idaho
jurisdiction, with Oregon customers making up the balance.
Figure 1: Idaho Power - Electric Service Territory
Source: Company reports
Company Overview
History
IDACORP Today
D.A. Davidson & Co.
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The utility serves a diverse customer base, with residential revenues making up the largest
component (Appendix 1). Revenues and earnings are subject to seasonal demand
fluctuations, which are influenced by temperatures, economic conditions, and precipitation
(increased precipitation levels during the agricultural growing season generally lead to lower
demand for electricity to operate irrigation pumps). Demand typically peaks in the summer
cooling and irrigation season, with a slightly lower peak in the winter tied to electric heating
demand.
In 2011, IDA satisfied 85% of its electric demand with its own generating fleet (largely hydro-
based), which was well ahead of the average electric utility under our coverage (Appendix 2).
The performance of IDA’s hydroelectric fleet can be volatile from year to year, being driven by
the amount of snow pack (in the mountains upstream of its hydro facilities on the Snake River),
reservoir storage, springtime snow pack run-off, river base flows, spring flows, and rainfall.
Favorable hydro conditions generally drive strong production from Idaho Power’s hydroelectric
generating portfolio and reduce the need for thermal generation and purchased power. On the
other hand, drought conditions increase the utility’s reliance on more expensive thermal
resources and/or wholesale power.
The backbone of IDA’s hydro fleet is the Hell’s Canyon Complex (consisting of the Brownlee,
Oxbow, and Hells Canyon dams), which provide ~68% of the utility’s hydro generation (35% of
total generation) in a typical water year. The license for the complex expired in 2005, but
annual renewals have been granted until a new multi-year license is issued (expected in
2014).
The utility is required by federal law to purchase power from PURPA generation projects at a
pre-set price, regardless of load demand or wholesale prices. The law has been controversial,
as it can force the utility to reduce output from its lower-cost hydro and thermal resources
and/or sell the unneeded PURPA power in the wholesale market at a loss. Although the costs
are recovered by the utility, the practice results in higher customer prices. Efforts by state
regulators to limit the growing number of PURPA projects have been unsuccessful after being
challenged at the federal level. Integrating PURPA projects does not materially reduce Idaho
Power’s need or new baseload resources. This is illustrated by the fact that when its system
reached its system peak demand record of 3,245 MW this summer, the 500 MW of wind
resources on its system were contributing only 14 MW of power due to lack of wind.
On June 29, 2012, the utility added to the diversity of its generating fleet with the addition of
the new Langley Gulch plant, a 330 MW combined cycle unit, at a total cost of ~$400 million.
The firm is led by LaMont Keen, who assumed the role of President and CEO in 2006. Keen
had most recently served as the firm’s CFO and EVP of Administrative Services, and has been
employed by the firm since 1974. Keen is 59 years old and has not announced a timeline for
his retirement. Succession planning is taken seriously at the firm, evidenced by the title of
President of Idaho Power being transferred from Keen to Darrel Anderson (the firm’s CFO) in
January 2012 to ensure a smooth transition of leadership in the future. Management has
shown a commitment to a conservative, low-risk profile for the utility, and we expect most
strategic decisions to be driven by government regulation and changes in customer demand.
Management bios are detailed in Appendix 3.
Retail rates are under the jurisdiction of Idaho Public Utilities Commission (IPUC) and the
Oregon Public Utility Commission (OPUC). Transmission, wholesale rates, hydroelectric
relicensing, and system reliability are regulated by the Federal Energy Regulatory Commission
(FERC). In our view, each of these bodies provides the utility a reasonable opportunity to
maintain solid credit metrics and achieve its authorized return. Idaho Power’s current
regulatory construct is summarized in Figures 2 and 3.
Power Supply
Senior Management
Strong Regulatory Backdrop
D.A. Davidson & Co.
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Figure 2: Regulatory Commission Data
Source: Commission websites, rankings based on D.A. Davidson assessment
Figure 3: Current Rate Structure, by Jurisdiction
Source: Company reports and Commission websites
The IPUC and OPUC have approved the use of several rate mechanisms that are updated
outside the general rate case process, detailed below:
Regulators in Idaho and Oregon have approved Idaho Power’s use of PCA mechanisms to
mitigate the potential earnings impact of volatility in power supply costs and defer (for later
recovery or refund) most deviations between actual and forecasted power supply costs. Within
the Oregon jurisdiction, deviations between actual and forecasted resource costs are shared
between shareholders and customers.
As part of a settlement in its most recent Idaho general rate case, the utility can amortize
Accumulated Deferred Investment Tax Credits (ADITC) to help achieve a minimum ROE of
9.5% per year between 2012 and 2014. Conversely, 50/50 customer sharing kicks in for utility
earnings between a 10.0%-10.5% ROE, and all earnings above a 10.5% ROE are shared on a
75/25 basis.
Residential and small general service commercial customers in IDA’s Idaho jurisdiction are
billed on a partially decoupled rate structure, which insulates the utility’s financial results from
deviations between actual and forecasted demand. The mechanism is intended to
compensate for reduced demand resulting from energy efficiency, but it has attracted scrutiny
for responding to all changes in load. We expect the mechanism to be modified over time.
Idaho. On May 8, 2012, the IPUC approved the utility’s request to rate base the Idaho
jurisdictional share ($336 million) of its newly-constructed Langley Gulch plant. The plant
addition drove an annual base revenue increase of $58 million, effective July 1, 2012.
Oregon. On September 20, 2012, the OPUC approved the utility’s request to rate base the
Oregon jurisdictional share ($15 million) of its Langley Gulch plant. The plant addition drove
an annual base revenue increase of $3 million, effective October 1, 2012.
Idaho Oregon FERC
Members 3 3 5
Term 6 Years 3 Years 5 Years
Method Appointed Appointed Appointed
Relative Rank Above Average Average Above Average
Test Year Forecasted Forecasted Historical
Interim Rates No No No
Fuel Costs True Up Deadband True Up
ROE Floor Yes No No
Infrastructure Rate Case Rate Case Formula Rate
Earnings on CWIP AFUDC AFUDC Formula Rate
Decoupling Yes No No
Energy Efficiency Tracker Rate Case n/a
Pension Expense Tracker Rate Case n/a
Allowed
Jurisdiction Test Year Equity Debt ROE
Idaho 2011 $2,696 9.5%-10.5%
FERC 2011 $575 50.1%49.9%10.6%
Oregon 2011 $130 49.9%50.1%9.9%
Black Box
Rate Base
($M)
Capital Structure
Power Cost Adjustment (PCA)
Mechanisms
ADITC and Revenue Sharing
Mechanism (ROE Floor)
Fixed Cost Adjustment (FCA)
Mechanism
Recent Rate Cases
D.A. Davidson & Co.
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IDA faces a relatively diverse set of opportunities to grow rate base and earnings over the next
five years, driven by capital spending for system maintenance and upgrades, environmental
projects, hydro upgrades and relicensing, new generation, and transmission. Although it
enjoys a strong cash flow stream due to the recent addition of Langley Gulch, our confidence
in IDA’s growth story is weakened by an inability to confidently predict the timing of several
potential projects, including:
Gateway West. IDA and PacifiCorp are in the process of developing the 1,000-mile
230/500 kV line from Glenrock, WY to its Hemingway substation near Melba, ID. The
recently-revised schedule calls for the permitting and rights-of-way acquisition process to
stretch into early 2016, with segments being completed in phases between late 2016 and
2021. At an expected cost of $150-$300 million for IDA’s share of the project, it would add
$8-$15 million ($0.15-$0.30 per share) to the utility’s regulated earnings power.
Boardman-to-Hemingway. Idaho Power is a 21% partner with PacifiCorp and BPA to
develop a 300-mile 500 kV line from Boardman, OR to Idaho Power’s Hemingway
substation. At an expected cost of $170 million for IDA’s share of the project, it would add
$10 million ($0.17 per share) to the utility’s regulated earnings power. Importantly, the
utility’s most recent resource plan had targeted a 2016 in-service date for the project, but
siting, permitting, and regulatory issues will likely push its completion beyond 2018.
New Baseload Resource. The need for the Boardman-Hemingway line was driven in
part by a need for additional generation resources by 2016. With that line now unlikely to
enter service prior to 2018, Idaho Power may accelerate plans to construct a new
baseload generation asset (potentially similar in size and cost to Langley Gulch). We
expect the utility to disclose its intentions as part of its integrated resource plan in summer
2013.
As detailed in Figures 4 and 5, our probability-weighted assumptions of timing and project
costs for IDA drive $2.1 billion of capex through 2017 (~70% toward maintenance), expanding
the utility’s rate base from its current level of $3.4 billion to $4.1 billion by year-end 2017.
Figure 4: $640 Million Gap from Low to High Capex Scenarios through 2017
Source: Company reports and D.A. Davidson & Co. estimates
($ in millions)2012 2013 2014 2015 2016 2017 '12-'17
Ongoing $230 $240 $250 $250 $250 $250 $1,470
Environmental $27 $40 $90 $157
Hell's Canyon Relicensing $18 $35 $35 $89
New Generation $57 $113 $170
Shoshone Falls $36 $36
Gateway West $13 $13 $25
Boardman-Hemingway $37 $37
Capital Expenditures $257 $280 $340 $360 $411 $335 $1,983
($ in millions)2012 2013 2014 2015 2016 2017 '12-'17
Ongoing $235 $240 $250 $250 $250 $250 $1,475
Environmental $27 $40 $90 $157
Hell's Canyon Relicensing $21 $42 $42 $104
New Generation $67 $133 $200
Shoshone Falls $40 $40
Gateway West $19 $19 $38
Boardman-Hemingway $43 $43
Capital Expenditures $262 $280 $340 $378 $444 $353 $2,057
($ in millions)2012 2013 2014 2015 2016 2017 '12-'17
Ongoing $240 $240 $250 $250 $250 $250 $1,480
Environmental $27 $40 $90 $157
Hell's Canyon Relicensing $48 $96 $96 $240
New Generation $153 $307 $460
Shoshone Falls $88 $88
Gateway West $50 $50 $100
Boardman-Hemingway $99 $99
Capital Expenditures $267 $280 $340 $539 $703 $495 $2,624
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Figure 5: Capex Drives 4% Average Growth through 2017 ($ in millions)
Source: Company reports and D.A. Davidson & Co. estimates
IDA’s balance sheet carries a $1.7 billion common equity balance, which equates to 51% of
total capitalization and is moderately above the 45% peer average (Figure 10). Roughly 4% of
the firm’s long-term debt matures through 2014 (Figure 6) with no additional maturities
scheduled until the latter part of this decade. Refinancing at favorable interest rates should not
be a problem, given IDA’s solid credit ratings and growing stream of cash flow.
Figure 6: Long-Term Debt Maturities through 2020 ($ in millions)
Source: Company Reports
After cutting the dividend in 2003, the Board opted to not keep pace with Idaho Power’s
resumed earnings growth, despite a gradual migration towards one of the lowest payout ratios
in the sector. With the imminent completion of Langley Gulch, the Board adopted a new
dividend policy in 1Q’12, targeting a 60% payout ratio by 2014. In conjunction with the
announcement, IDA’s common dividend was raised 10% to $1.32, representing the first
increase in the last eight years. The increase was followed by a 15% increase on September
20, 2012, taking the firm’s annualized dividend to $1.52 per share.
Assuming 2012 EPS match the midpoint of IDA’s 2012 guidance range ($3.20-$3.35), the
common dividend would equate to a payout ratio of 42%; below the 55% peer average. We
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D.A. Davidson & Co.
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expect dividend increases of 10%-15% per year through 2015 as the Board gradually reaches
its payout target.
We expect EPS of $3.27 in 2012, down from $3.36 in 2011. The decline in earnings between
the years is driven primarily by the absence of two nonrecurring items in 2011, including a
benefit tied to a switch to the uniform capitalization method of taxation (+$1.15), which was
offset by the impact of customer sharing mechanisms (-$0.62). Normalizing for these items,
our estimate for 2012 compares to continuing EPS of $2.83 in 2011, driven higher by retail rate
increases, the commercial operation of Langley Gulch, and the benefit of favorable weather
and hydro conditions.
We are forecasting EPS of $3.25 in 2013, largely flat with 2012 as the benefits of a full year’s
contribution from Langley Gulch are offset by an assumed return to normal weather and hydro
conditions. Our estimate of $3.35 for 2014 is driven by modest load growth and a higher rate
base. We expect IDA’s earnings growth to average ~4% per year over the next five years,
which would be at the low end of its peer group. We see potential for upside on our growth
forecast, depending on the utility’s success in accelerating its transmission, hydro relicensing,
and generation projects.
IDA’s stock has participated in the upward trend in utility sector valuations since early 2009, as
a more risk-averse investment climate and historically low yields on fixed income securities
have driven more appetite for yield in the markets. The shares currently trade at 13.4x the
2013 Street consensus. This is slightly below the average forward year P/E multiple over the
last decade (13.8x) and ~10% below the stock’s average valuation relative to its peer group of
domestic electric utilities over the same time frame (Figures 7-8). The current valuation
discount relative to the peer group widened in 2H’11, as future growth opportunities became
less visible.
IDA’s common dividend equates to a 3.5% yield, which sits moderately below its historical
mean (Figure 9) and slightly below the 3.7% peer average (Figure 10). IDA’s recent dividend
increases have overlapped with the collapse in Treasury yields, resulting in the spread
between the stock’s dividend yield and 10-year Treasuries widening to ~190bp (versus the
~40bp average over the last decade).
IDA’s valuation discount relative to the peer group is compelling, in light of its top-tier dividend
growth trajectory, supportive regulatory backdrop, and ROE floor. In our view, the stock is held
back by a general lack of visibility as to the timing of future growth opportunities, but the
embedded potential represents an attractive source of upside when the clouds clear. Our
$48.50 target equates to 14.9x our 2013 EPS estimate and an expected forward dividend yield
of 3.4%.
Figure 7: Forward P/E
Source: Capital IQ
Earnings Forecast
Valuation & Recommendation
BUY rated
D.A. Davidson & Co.
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Figure 8: Relative P/E
Source: Capital IQ
Figure 9: Dividend Yield vs. 10-Year US Treasuries
Source: Capital IQ
Figure 10: Valuation Relative to Electric Utility Peer Group
Source: Company Reports, Capital IQ, D.A. Davidson & Co. estimates 1D.A. Davidson & Co. makes a market in this security. 2Results as shown exclude the impact of nonrecurring items and discontinued operations.
Price MC EV ROE ROA
10/4/12 ($B)($B)2011 2012E 2013E 2011 2012E 2013E (ttm)(ttm)
ALE1,2 ALLETE Inc.$41.58 N $1.6 $2.5 4.5%67%17.4 16.0 14.7 9.3 9.0 8.2 1.4 56%7.2%2.8%
CNL Cleco Corporation $41.79 NR $2.5 $3.8 3.2%58%17.1 17.4 16.5 9.2 9.3 8.7 1.7 52%11.3%4.1%
EDE Empire District Electric Co.$21.57 NR $0.9 $1.6 4.6%70%16.5 17.4 15.1 8.8 8.9 8.4 1.3 49%7.9%2.7%
EE El Paso Electric Company $34.31 NR $1.4 $2.3 2.9%44%13.6 14.8 14.2 8.3 8.9 8.4 1.8 45%12.0%3.9%
GXP1,2 Great Plains Energy Inc.$22.61 N $3.5 $7.3 3.8%57%15.4 15.7 14.6 10.2 9.0 8.3 1.1 46%6.5%2.2%
ITC1,2 ITC Holdings Corp.$77.26 B $4.0 $6.9 1.8%32%23.0 19.2 15.8 13.6 12.2 10.0 3.0 30%15.4%3.9%
NVE NV Energy Inc.$18.21 NR $4.3 $9.3 3.8%57%21.6 14.8 14.5 9.6 8.1 8.0 1.3 40%6.5%1.9%
PNM PNM Resources Inc.$21.15 NR $1.7 $3.6 2.8%47%20.7 16.6 15.2 8.7 8.3 7.9 1.1 45%6.8%2.1%
PNW Pinnacle West Capital Corp.$53.34 NR $5.8 $9.5 4.0%62%18.3 15.6 15.0 8.2 7.6 7.3 1.5 51%10.2%2.9%
POR1 Portland General Electric Co.$27.48 B $2.1 $3.7 4.0%55%14.1 14.6 13.7 6.9 6.7 6.6 1.2 49%7.8%2.3%
UNS1 UNS Energy Corp.$41.33 N $1.7 $3.5 4.2%67%16.1 18.8 15.6 7.7 8.1 7.3 1.6 35%10.7%2.5%
WR1,2 Westar Energy Inc.$29.83 B $3.8 $7.2 4.4%68%16.5 14.9 14.9 9.1 8.8 8.5 1.4 45%9.3%2.8%
Peer Group Mean $2.8 $5.1 3.7%57%17.5 16.3 15.0 9.1 8.8 8.1 1.5 45%9.3%2.8%
Utility Industry Mean $7.1 $12.6 3.7%58%18.7 17.5 15.4 9.5 9.0 8.4 1.7 47%9.0%2.6%
IDA1 IDACORP Inc.$43.65 B $2.2 $3.8 3.5%49%13.0 13.3 13.4 12.3 9.2 9.2 1.3 51%10.9%3.6%
Payout
2013ESymbolCompany Name Rating Dividend
Yield
P/E EV / EBITDA P / BV C.Equity /
Capital
D.A. Davidson & Co.
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Appendix 1: IDACORP Revenue Mix Relative to D.A. Davidson Coverage Universe (2011)
Source: Company reports, FERC Form 1 & SEC filings, United States Department of Energy website
Appendix 2: IDACORP Resource Mix Relative to D.A. Davidson Coverage Universe (2011)
Source: Company reports, FERC Form 1 & SEC filings, United States Department of Energy website
Residential Commercial Industrial Other
ALE ALLETE Inc.71%29%13%13%45%1%
AVA Avista Corp.74%26%33%28%12%1%
BKH Black Hills Corp.84%16%30%35%12%6%
GXP Great Plains Energy Inc.91%9%41%38%8%3%
HE Hawaiian Electric Industries Inc.100%-32%35%33%1%
IDA IDACORP Inc.84%16%40%22%14%9%
LNT Alliant Energy Corp.89%11%37%23%28%-
MDU MDU Resources Group Inc.94%6%39%41%11%3%
MGEE MGE Energy Inc.99%1%33%52%5%10%
NWE NorthWestern Corp.91%9%37%46%5%3%
OTTR Otter Tail Corp.89%11%31%34%22%1%
POR Portland General Electric Co.96%4%48%35%12%-
TEG Integrys Energy Group Inc.81%19%31%30%20%1%
UNS UNS Energy Corp.79%21%36%24%13%6%
WEC Wisconsin Energy Corp.92%8%36%31%24%1%
WR Westar Energy Inc.76%24%32%28%16%-
XEL Xcel Energy Inc.85%15%31%18%35%1%
87%14%34%31%19%3%
97%3%37%34%25%0%
Average Under Coverage
USA Total
Symbol Company Name Retail Other Breakdown of Retail Mix
Coal Nat Gas Nuclear Hydro Wind Other
ALE ALLETE Inc.65%35%60%--3%1%0%
AVA Avista Corp.51%49%10%5%-33%-2%
BKH Black Hills Corp.36%64%35%0%---0%
GXP Great Plains Energy Inc.90%10%74%2%12%-2%-
HE Hawaiian Electric Industries Inc.81%19%-6%---75%
IDA IDACORP Inc.85%15%25%1%-59%-1%
LNT Alliant Energy Corp.59%41%52%2%-1%3%1%
MDU MDU Resources Group Inc.78%22%73%---5%-
MGEE MGE Energy Inc.59%41%41%15%--3%0%
NWE NorthWestern Corp.34%66%27%4%---4%
OTTR Otter Tail Corp.53%47%44%0%-0%-8%
POR Portland General Electric Co.57%43%19%10%-22%6%-
TEG Integrys Energy Group Inc.54%46%49%--2%-3%
UNS UNS Energy Corp.65%35%56%6%---4%
WEC Wisconsin Energy Corp.65%35%59%4%-1%1%0%
WR Westar Energy Inc.89%11%66%7%11%--4%
XEL Xcel Energy Inc.67%33%30%18%11%1%1%8%
64%36%45%6%11%14%3%8%
--42%25%19%8%5%1%
Purchased
Power
Breakdown of Production from Owned Resources
Average Under Coverage
USA Total
Symbol Company Name Owned
Resources
D.A. Davidson & Co.
11
Appendix 3: IDACORP Senior Management
Source: April 6, 2012 proxy statement and company website
Appendix 4: IDACORP and Idaho Power Credit Ratings
Source: Company reports
Executive Officer Share Ownership Biography
J. LaMont Keen (59)161,980
President and CEO
Darrel T. Anderson 61,183
EVP - Administrative Services and CFO; President of Idaho Power
Daniel B. Minor 48,886
EVP - COO of Idaho Power
Rex Blackburn 21,665
SVP, General Counsel
Lisa A. Grow 20,891
SVP - Power Supply
All Directors and Executive Officers 601,724
Assumed current role in 2009, after serving in various engineering and management positions at
IDA dating back to 1987.
President and CEO since July 2006. Held various positions within the company dating back to
1974, including Controller, CFO, and SVP-Administrative Services.
Assumed CFO role in 2004, and President of Idaho Power in January 2012. Held various positions
within the company dating back to 1996, including VP of Finance and Controller.
Assumed current role in January 2012, after serving as Idaho Power's EVP-Operations, SVP-
Delivery, and VP-Administrative Services and Human Resources.
Assumed current role in 2009, a year after joining Idaho Power as Lead Counsel. Spent 27 years
as a trial lawyer in private practice, prior to joining IDA.
Idaho Power IDACORP Idaho Power IDACORP
Corporate / Long-Term Issuer BBB BBB Baa1 Baa2
Senior Secured A-n/a A2 n/a
Senior Unsecured BBB n/a Baa1 n/a
Short-Term Tax Exempt BBB/A-2 n/a Baa1/VMIG-2 n/a
Commercial Paper A-2 A-2 P-2 P-2
Senior Unsecured Credit Facility n/a n/a Baa1 Baa2
Outlook Stable Stable Stable Stable
S&P Moody's
D.A. Davidson & Co.
12
Appendix 5: IDACORP Historical Financial Position
Source: Company reports
$ millions -- Fiscal year ends 12/31 2003 2004 2005 2006 2007 2008 2009 2010 2011 2Q'12
Current Assets:
Cash And Cash Equivalents $75.2 $23.4 $52.4 $9.9 $8.0 $8.8 $53.0 $228.7 $27.8 $14.4
Receivables from Customers 93.6 92.3 94.5 62.1 69.2 64.7 76.8 62.1 66.3 62.8
Other Receivables 8.2 8.8 21.4 11.9 11.0 10.3 13.0 10.2 8.2 15.6
Accrued Unbilled Revenues 30.9 33.8 38.9 31.4 36.3 43.9 51.3 48.0 46.4 60.2
Materials And Supplies 21.4 28.0 30.5 39.1 43.3 50.1 48.1 45.6 46.5 48.4
Fuel Stock 6.2 6.5 11.7 15.2 17.3 16.9 25.6 27.5 47.9 59.2
Prepayments 27.8 30.0 17.9 9.3 9.4 10.1 11.1 11.1 12.4 13.5
Deferred Income Taxes 4.4 23.4 23.9 28.0 25.7 37.6 31.8 10.7 16.2 46.6
Other (29.4)(24.9)6.4 59.7 46.7 23.9 (0.2)16.8 39.3 37.3
Total Current Assets $238.2 $221.4 $297.5 $266.5 $266.7 $266.3 $310.4 $460.6 $311.0 $358.1
Property, Plant And Equipment - Net 2,088.3 2,209.5 2,294.4 2,419.1 2,616.6 2,758.2 2,917.0 3,161.4 3,406.6 3,473.0
Investments 204.5 223.1 191.6 202.8 201.1 198.6 195.3 202.9 199.9 198.1
Regulatory Assets Associated With Taxes 427.8 433.3 415.2 423.5 449.7 696.3 720.4 756.6 953.1 979.3
Other 147.4 147.0 165.4 133.1 119.3 103.5 95.6 94.5 90.0 94.5
Total Assets $3,106.1 $3,234.2 $3,364.1 $3,445.1 $3,653.3 $4,022.8 $4,238.7 $4,676.1 $4,960.6 $5,103.0
Current Liabilities:0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Long-Term Debt Due Within One Year $67.9 $78.6 $16.3 $95.1 $11.5 $86.5 $9.3 $122.6 $101.1 $1.1
Notes Payable 93.7 36.3 60.1 129.0 186.4 151.3 53.8 66.9 54.2 64.7
Accounts Payable 60.9 79.2 80.3 86.4 85.1 96.8 83.8 103.1 100.4 92.0
Taxes Accured 45.6 46.3 72.7 47.4 8.5 0.0 10.2 0.0 0.5 5.5
Interest Accrued 13.7 14.4 14.6 12.7 18.9 16.7 20.1 23.9 21.8 22.1
Uncertain Tax Positions 0.0 0.0 0.0 0.0 26.8 4.1 0.0 74.4 0.0
Other 29.9 30.7 49.6 39.7 38.1 40.3 41.1 58.1 91.2 111.2
Total Current Liabilities $311.7 $285.5 $293.6 $410.3 $375.3 $395.7 $218.2 $449.1 $369.2 $296.6
Long-Term Debt 945.8 979.5 1,023.5 928.6 1,156.9 1,183.5 1,409.7 1,488.3 1,387.6 1,536.5
Deferred Income Taxes 554.7 555.8 519.6 498.5 466.2 515.7 574.5 566.5 772.0 832.6
Regulatory Liabilities - Other 258.5 275.9 345.1 294.8 274.2 276.3 287.8 298.1 332.1 33.8
Other 118.7 129.3 157.1 188.6 168.9 344.9 347.0 338.2 438.0 707.0
Common Equity 864.3 1,008.3 1,025.3 1,124.2 1,207.3 1,302.4 1,397.3 1,532.1 1,657.7 1,692.3
Noncontrolling Interest 0.0 0.0 0.0 0.0 4.5 4.4 4.2 3.9 4.0 4.1
Total Capitalization And Liabilities $3,106.1 $3,234.2 $3,364.1 $3,445.1 $3,653.3 $4,022.8 $4,238.7 $4,676.1 $4,960.6 $5,103.0
Common Shares Outstanding - End 38.2 42.2 42.6 43.8 45.1 46.9 47.9 49.3 49.8 50.2
Book Value Per Share $22.62 $23.88 $24.05 $25.65 $26.79 $27.76 $29.17 $31.09 $33.26 $33.74
Capital Structure:
Common Equity 42.7%48.0%48.2%49.4%47.2%47.9%48.8%47.8%51.9%51.4%
Long-Term Debt 50.1%50.3%48.9%45.0%45.5%46.6%49.4%50.1%46.5%46.6%
Short-Term Debt 4.6%1.7%2.8%5.7%7.3%5.5%1.9%2.1%1.7%2.0%
Preferred Equity 2.6%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%
Capitalization 100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%
D.A. Davidson & Co.
13
Appendix 6: IDACORP Historical and Forecasted Cash Flow
Source: Company reports and D.A. Davidson & Co. estimates
$ millions -- Fiscal year ends 12/31 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012e 2013e 2014e
Cash Flow from Operating Activities:
Net Income $46.6 $73.0 $63.7 $107.4 $81.9 $98.2 $124.4 $142.5 $166.9 $163.7 $163.2 $168.9
Depreciation & Amortization 129.1 124.2 124.1 122.6 108.2 109.8 118.6 121.8 124.7 134.9 135.4 138.8
Deferred Taxes And Invest. Tax Credits (62.0)(33.9)(31.8)(17.3)11.0 4.7 19.0 41.7 (52.9)11.9 0.0 0.0
Change In Regulatory Assets & Liabilities 0.0 0.0 7.3 (17.1)(128.1)(64.1)57.8 46.5 68.0 13.8 0.0 0.0
Pension Expense 0.0 0.0 0.0 0.0 0.0 4.0 (65.6)(22.1)(21.6)0.0 0.0
AFUDC - Equity (3.1)(7.6)(16.6)(25.5)(17.8)(5.4)(7.3)
Distributions from Equity Method Investments 0.0 0.0 (16.8)(9.6)(6.3)(7.4)12.5 6.5 2.5 9.1 0.0 0.0
Net Other Items 134.9 22.2 6.7 (14.9)27.0 36.3 (7.6)6.9 47.9 (9.7)0.0 0.0
Operating Cash Flows before WC $248.6 $185.5 $153.3 $171.1 $93.8 $174.4 $321.2 $283.8 $309.4 $284.2 $293.1 $300.4
Net Change in Working Capital 62.7 9.2 8.2 (1.4)(13.2)(37.9)(36.8)21.6 0.8 (28.1)0.0 0.0
Net Operating Cash Flow $311.2 $194.7 $161.5 $169.8 $80.6 $136.5 $284.4 $305.4 $310.2 $256.1 $293.1 $300.4
Cash Flow from Investing Activities:
Additions To Utility Plant (149.1)(199.8)(193.3)(225.0)(287.8)(243.5)(251.9)(338.3)(337.8)(262.0)(280.0)(340.0)
Sale Of Emission Allowances 0.0 0.0 70.8 11.3 19.8 3.0 2.4 6.4 6.3
Investments In Affordable Housing 0.0 (7.7)(5.0)(5.1)0.3 (8.3)(5.8)(13.4)(1.6)
Investments In Unconsolidated Affiliates 0.0 0.0 0.0 (16.0)(8.5)(3.0)0.0 (7.0)2.6
Net Other (4.4)(22.2)38.6 (18.2)9.0 49.1 13.0 23.9 (2.0)
Net Investing Cash Flow ($153.6)($229.6)($89.0)($253.0)($267.1)($202.8)($242.4)($328.3)($332.4)($261.6)($280.0)($340.0)
Cash Flow Before Financing $157.7 ($34.9)$72.5 ($83.3)($186.5)($66.3)$42.0 ($22.9)($22.1)($5.5)$13.1 ($39.6)
Cash Flow from Financing Activities:
Dividends (64.7)(45.8)(50.7)(51.3)(53.0)(54.2)(56.8)(57.9)(59.7)(69.0)(80.2)(92.8)
Net Borrowing (58.2)(84.1)5.7 52.6 202.4 73.5 43.3 212.1 (133.8)72.5 59.1 124.3
Net Equity 3.3 114.3 6.3 41.3 36.8 50.6 22.9 47.8 15.6 6.8 8.0 8.0
Net Other (128.6)(131.1)(49.9)(0.5)147.7 16.6 (20.7)150.8 (194.3)23.4 0.0 0.0
Net Financing Cash Flow ($125.2)($16.8)($43.6)$40.8 $184.6 $67.2 $2.1 $198.6 ($178.7)$7.7 ($13.1)$39.6
Net Change in Cash 32.4 (51.8)29.0 (42.5)(1.9)0.9 44.2 175.7 (200.9)2.2 0.0 0.0
Cash & Equivalents - End $75.2 $23.4 $52.4 $9.9 $8.0 $8.8 $53.0 $228.7 $27.8 $30.0 $30.0 $30.0
Cash Flow Metrics:
Operating Cash Flows 311.2 194.7 161.5 169.8 80.6 136.5 284.4 305.4 310.2 256.1 293.1 300.4
Dividends (64.7)(45.8)(50.7)(51.3)(53.0)(54.2)(56.8)(57.9)(59.7)(69.0)(80.2)(92.8)
Retained Cash Flow (RCF)$246.5 $148.9 $110.8 $118.5 $27.6 $82.3 $227.6 $247.5 $250.6 $187.0 $212.9 $207.7
Capex (149.1)(199.8)(193.3)(225.0)(287.8)(243.5)(251.9)(338.3)(337.8)(262.0)(280.0)(340.0)
Free Cash Flow $97.4 ($50.9)($82.5)($106.5)($260.2)($161.3)($24.3)($90.7)($87.2)($75.0)($67.1)($132.3)
RCF/Capex 65%-25%-43%-47%-90%-66%-10%-27%-26%-29%-24%-39%
D.A. Davidson & Co.
14
Appendix 7: IDACORP Historical Operating Results
Source: Company reports
$ millions -- Fiscal year ends 12/31 2002 2003 2004R 2005 2006 2007 2008 2009 2010 2011
Operating Revenues $928.8 $823.0 $827.9 $842.9 $926.3 $879.4 $960.4 $1,049.8 $1,036.0 $1,026.8
Power Supply Expenses 415.5 321.6 338.1 322.5 368.9 313.1 340.4 383.5 354.7 333.4
Gross Margin $513.3 $501.4 $489.8 $520.4 $557.4 $566.2 $620.0 $666.3 $681.4 $693.4
Operating Expenses:
Other Operations And Maintenance 207.4 221.0 255.9 242.4 264.8 276.0 286.3 292.8 293.9 338.6
Energy Efficiency Programs 0.0 0.0 0.0 0.0 13.5 18.9 31.8 44.2 37.7
Depreciation 93.6 97.7 100.9 101.5 99.8 103.1 102.1 110.6 115.9 119.8
Taxes Other than Income Taxes 20.0 20.8 19.1 20.9 18.7 17.6 19.1 21.1 24.0 28.9
Other Operating Expenses 116.8 77.9 7.7 1.0 4.4 3.9 3.0 6.4 4.6 4.1
Total Operating Expenses $437.7 $417.3 $383.5 $365.7 $387.7 $414.2 $429.4 $462.7 $482.7 $529.1
EBITDA $173.1 $188.1 $224.8 $264.5 $276.3 $261.9 $292.6 $330.2 $332.8 $306.0
Operating Income $75.6 $84.1 $106.2 $154.7 $169.7 $152.1 $190.7 $203.6 $198.7 $164.2
Other Income 3.1 3.9 16.7 9.1 9.6 11.6 3.8 17.0 15.2 21.2
Earnings Of Investments 0.7 2.4 1.1 (0.7)(2.9)(4.8)(4.0)(1.0)3.0 0.8
Net Interest Expense 64.4 61.5 58.3 59.7 61.0 63.3 73.1 72.8 75.1 71.5
Income Before Income Taxes $15.1 $28.9 $65.7 $103.3 $115.5 $95.5 $117.4 $146.7 $141.7 $114.7
Income Taxes (51.1)(21.1)(20.0)17.6 15.4 13.7 19.2 22.4 (0.7)(52.1)
Effective Tax Rate -338.5%-73.1%-30.4%17.0%13.3%14.4%16.3%15.2%-0.5%-45.4%
Net Income $66.3 $50.0 $85.6 $85.7 $100.1 $81.8 $98.2 $124.4 $142.5 $166.9
Discontinued Operations 0.0 0.0 (7.8)(22.1)7.3 0.1 0.0 0.0 0.0 0.0
Preferred Dividends 4.6 3.4 4.8 0.0 0.0 0.0 0.0 0.0 0.0
Noncontrolling Interest 0.0 0.0 0.0 0.0 0.0 0.5 0.2 (0.0)0.3 (0.2)
Net Income Available For Common $61.7 $46.6 $73.0 $63.7 $107.4 $82.3 $98.4 $124.4 $142.8 $166.7
Average Diluted Shares Outstanding 37.7 38.2 38.4 42.4 42.9 44.3 45.4 47.2 48.3 49.6
Diluted EPS $1.63 $1.22 $1.90 $1.50 $2.51 $1.86 $2.17 $2.64 $2.95 $3.36
Discontinued Operations $0.00 $0.00 ($0.20)($0.52)$0.17 $0.00 $0.00 $0.00 $0.00 $0.00
Diluted EPS - Continuing $1.63 $1.22 $2.11 $2.02 $2.33 $1.86 $2.17 $2.64 $2.95 $3.36
Ratio Analysis:
Return on Average Assets (ttm)1.8%1.5%2.3%1.9%3.2%2.5%2.8%3.2%3.2%3.5%
Return on Average Equity (ttm)7.1%5.4%7.8%6.3%10.0%7.5%8.6%9.8%9.8%10.5%
Gross Margin 55.3%60.9%59.2%61.7%60.2%64.4%64.6%63.5%65.8%67.5%
Operating Margin 8.1%10.2%12.8%18.3%18.3%17.3%19.9%19.4%19.2%16.0%
Pre-Tax Margin 1.6%3.5%7.9%12.3%12.5%10.9%12.2%14.0%13.7%11.2%
Net Margin 6.6%5.7%8.8%7.6%11.6%9.4%10.2%11.8%13.8%16.2%
Dividends Per Common Share $1.86 $1.70 $1.20 $1.20 $1.20 $1.20 $1.20 $1.20 $1.20 $1.20
Dividend Payout Ratio (ttm)113.8%138.9%63.1%79.9%47.9%64.6%55.3%45.5%40.6%35.7%
Dividend Growth 0.0%-8.9%-29.2%0.0%0.0%0.0%0.0%0.0%0.0%0.0%
D.A. Davidson & Co.
15
Appendix 8: IDACORP Historical and Projected Quarterly and Annual Operating Results
Source: Company reports and D.A. Davidson & Co. estimates
$ millions -- Fiscal year ends 12/31 1Q'11 2Q'11 3Q'11 4Q'11 2011 1Q'12 2Q'12 3Q'12e 4Q'12e 2012e 2013e 2014e
Operating Revenues $251.5 $235.0 $309.6 $230.6 $1,026.8 $241.1 $254.7 $380.8 $261.5 $1,138.2 $1,171.5 $1,196.0
Power Supply Expenses 86.3 71.6 97.1 78.3 333.4 76.0 63.3 106.7 76.8 322.7 331.7 331.7
Gross Margin $165.2 $163.4 $212.5 $152.4 $693.4 $165.1 $191.4 $274.1 $184.8 $815.5 $839.8 $864.3
Operating Expenses:
Other Operations And Maintenance 70.7 85.5 84.6 97.9 338.6 78.5 86.0 93.5 79.2 337.2 342.5 349.3
Energy Efficiency Programs 6.7 5.8 18.5 6.7 37.7 4.5 8.1 22.4 9.1 44.0 46.1 47.2
Depreciation 29.5 29.7 30.1 30.5 119.8 30.5 29.9 33.3 33.7 127.3 135.4 138.8
Taxes Other than Income Taxes 7.2 7.2 7.3 7.2 28.9 8.1 7.8 8.0 8.0 31.9 32.0 34.0
Other Operating Expenses 1.1 0.9 0.6 1.6 4.1 1.1 0.8 1.0 1.0 4.0 4.0 4.0
Total Operating Expenses $115.1 $129.1 $141.1 $143.9 $529.1 $122.8 $132.6 $158.2 $130.9 $544.5 $560.0 $573.3
EBITDA $82.8 $64.6 $109.6 $49.1 $306.0 $80.9 $93.3 $150.1 $88.4 $412.7 $411.4 $427.9
Operating Income $50.1 $34.3 $71.4 $8.5 $164.2 $42.3 $58.8 $116.0 $53.8 $271.0 $279.8 $291.0
Other Income 4.5 5.0 6.0 5.6 21.2 6.6 6.6 (0.2)(0.1)12.9 0.2 2.1
Earnings Of Investments (1.3)(4.4)2.1 4.5 0.8 1.4 (1.9)1.0 1.0 1.5 (4.0)(4.0)
Net Interest Expense 19.0 17.6 17.4 17.5 71.5 17.2 17.4 18.5 17.8 71.0 74.6 80.6
Income Before Income Taxes $34.4 $17.3 $62.0 $1.0 $114.7 $33.2 $46.0 $98.3 $36.9 $214.4 $201.4 $208.5
Income Taxes 4.9 (3.7)(45.4)(8.0)(52.1)8.3 10.6 23.1 8.7 50.7 38.3 39.6
Effective Tax Rate 14.2%-21.1%-73.1%-803.7%-45.4%25.1%23.0%23.5%23.5%23.6%19.0%19.0%
Net Income $29.5 $21.0 $107.4 $9.0 $166.9 $24.8 $35.4 $75.2 $28.3 $163.7 $163.2 $168.9
Noncontrolling Interest 0.3 (0.1)(0.3)0.0 (0.2)0.1 (0.1)0.1 0.1 0.1 0.3 0.3
Net Income Available For Common $29.7 $20.9 $107.1 $9.0 $166.7 $24.9 $35.3 $75.3 $28.3 $163.8 $163.5 $169.2
Average Diluted Shares Outstanding 49.4 49.5 49.6 49.7 49.6 49.9 50.0 50.1 50.1 50.0 50.3 50.4
Diluted EPS - Continuing $0.60 $0.42 $2.16 $0.18 $3.36 $0.50 $0.71 $1.50 $0.57 $3.27 $3.25 $3.35
Ratio Analysis:
Return on Average Assets (ttm)3.5%3.0%3.8%3.5%3.5%3.4%3.6%2.9%3.2%3.2%3.1%3.1%
Return on Average Equity (ttm)10.5%9.1%11.4%10.5%10.5%10.0%10.7%8.6%9.6%9.6%9.1%9.0%
Gross Margin 65.7%69.5%68.6%66.1%67.5%68.5%75.2%72.0%70.7%71.6%71.7%72.3%
Operating Margin 19.9%14.6%23.1%3.7%16.0%17.6%23.1%30.5%20.6%23.8%23.9%24.3%
Pre-Tax Margin 13.7%7.4%20.0%0.4%11.2%13.7%18.1%25.8%14.1%18.8%17.2%17.4%
Net Margin 11.8%8.9%34.6%3.9%16.2%10.3%13.9%19.8%10.8%14.4%14.0%14.1%
Dividends Per Common Share $0.30 $0.30 $0.30 $0.30 $1.20 $0.33 $0.33 $0.33 $0.38 $1.37 $1.60 $1.84
Dividend Payout Ratio (ttm)37.2%42.4%33.4%35.7%35.7%37.7%35.6%44.6%41.8%41.8%49.1%54.8%
Dividend Growth 0.0%0.0%0.0%0.0%0.0%10.0%10.0%10.0%26.7%14.2%16.5%15.2%
D.A. Davidson & Co.
Two Centerpointe Drive, Suite 400 Lake Oswego, Oregon 97035 (503) 603-3000 (800) 755-7848 www.dadavidson.com
Copyright D.A. Davidson & Co., 2012. All rights reserved.
16
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for involvement in specific investment banking transactions.
I, Michael Bates, attest that (i) all the views expressed in this research report accurately reflect my personal views about the common
stock of the subject company, and (ii) no part of my compensation was, is, or will be, directly or indirectly, related to the specific
recommendations or views expressed in this report.
Ratings Information
D.A. Davidson & Co. Institutional Research Ratings Buy Neutral Underperform
Risk adjusted return potential azbycx
Distribution of Ratings (as of 6/30/12) Buy Hold Sell
Corresponding Institutional Research Ratings
and Distribution
Corresponding Individual Investor Group Ratings
and Distribution
Distribution of Combined Ratings
Distribution of companies from whom D.A. Davidson & Co. has received compensation for investment banking services in last 12 mos.
Institutional Coverage Individual Investor Group Coverage
Distribution of Combined Investment Banking
D.A. Davidson & Co.’s Institutional Research Rating Scale (maintained since 7/9/02): Buy, Neutral, Underperform
D.A. Davidson & Co.
Two Centerpointe Drive, Suite 400 Lake Oswego, Oregon 97035 (503) 603-3000 (800) 755-7848 www.dadavidson.com
Copyright D.A. Davidson & Co., 2012. All rights reserved.
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upon our assessment of future earnings and cash flow, comparable company valuations, growth prospects and other financial criteria.
Certain risks may impede achievement of these price targets including, but not limited to, broader market and macroeconomic
fluctuations and unforeseen changes in the subject company’s fundamentals or business trends.
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express or implied, as to future performance. Investors should note this report was prepared by D.A. Davidson & Co.’s Institutional
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sophistication on the part of the recipient. Readers, who are not institutional investors or other market professionals, should seek the
advice of their individual investment advisor for an explanation of this report’s contents, and should always seek such advisor’s advice
before making any investment decisions. Further information and elaboration will be furnished upon request.