Toronto Hydro Corporation Releases its Second Quarter Financial Statements and Related MD&A



    
    -------------------------------------------------------------------------
                                  Three months Ended        Six months Ended
                                June 30; In Millions    June 30; In Millions
                               of dollars; Unaudited   of dollars; Unaudited
    -------------------------------------------------------------------------
                                    2009        2008        2009        2008

    Net Income                     $14.4       $15.1       $21.4       $37.6
    Net Revenues                  $123.8      $120.8      $248.3      $236.0
    

    TORONTO, Aug. 18 /CNW/ - Toronto Hydro Corporation (the "Corporation")
announced today that it has filed with Canadian security regulators its
financial statements and related MD&A for the six months ended June 30, 2009.
Copies may be obtained from the Corporation or accessed through www.sedar.com.

    
    -   Net income for the six months ended June 30, 2009 was $21.4 million
        compared with net income of $37.6 million in 2008.
    -   Net revenues for the six months ended June 30, 2009 were slightly
        higher at $248.3 million compared to $236.0 million in 2008.
    

    "Despite the favourable impact from the increase in distribution rates
for 2009, our results were negatively impacted by a reduction in consumption
from our customers due to the current economic downturn, and due to costs
associated with the remediation of safety issues on our system in February,"
said David O'Brien, President and Chief Executive Officer.

    Financial Highlights

    Net income was $21.4 million in the first six months of 2009, compared to
$37.6 million for the same period in 2008. The decrease in net income for the
six months ended June 30, 2009 was mainly due to a variance in Payment in Lieu
of Taxes ("PILs") ($15.4 million) arising from the recovery recorded in 2008
following the completion of the 2001 and 2002 audits by the Ministry of
Finance, higher operating expenses ($9.2 million), lower income from
discontinued operations in 2009 related to the sale of Telecom in 2008 ($7.5
million), higher net interest expense ($4.3 million), and higher depreciation
expense ($4.0 million). These unfavourable variances were partially offset by
higher net revenues ($12.3 million) and by a variance in the fair value of
investments in Asset Backed Commercial Paper ($11.9 million) related to an
impairment charge recorded in 2008 due to unfavourable market conditions and
an increase in value recorded in 2009 in connection with the final
restructuring of the investments.

    
    -------------------------------------------------------------------------
    Financial Highlights Six Months ended June 30 (in thousands of
    dollars, unaudited)
    -------------------------------------------------------------------------
                                                                    Variance
                                                                  Favourable/
                                        2009           2008    (Unfavourable)
    -------------------------------------------------------------------------
    Net Income                        $ 21,361       $ 37,569       $(16,208)
    -------------------------------------------------------------------------
    Net Revenues                       248,326        236,041         12,285
    -------------------------------------------------------------------------
    Operating Expenses                 107,091         97,869         (9,222)
    -------------------------------------------------------------------------
    Depreciation and Amortization       81,538         77,548         (3,990)
    -------------------------------------------------------------------------
    Change in Fair Value of
     Investments                         2,458         (9,427)        11,885
    -------------------------------------------------------------------------
    Income (loss) from Discontinued
     Operations                           (228)         7,290         (7,518)
    -------------------------------------------------------------------------
    Provision for (recovery of) PILs     5,122        (10,262)        15,384
    -------------------------------------------------------------------------
    Net Interest Expense                35,444         31,180         (4,264)
    -------------------------------------------------------------------------

    About Toronto Hydro

    The Corporation is a holding company which through its wholly-owned
subsidiaries:

    -   Toronto Hydro-Electric System Limited ("LDC") - distributes
        electricity and engages in Conservation and Demand Management
        activities; and
    -   Toronto Hydro Energy Services Inc. ("TH Energy") - provides street
        lighting and expressway lighting services, and energy efficiency
        products and services.
    

    The principal business of the Corporation is the distribution of
electricity by LDC. LDC owns and operates an electricity distribution system
that delivers electricity to approximately 688,000 customers located in the
City of Toronto.





For further information:

For further information: Blair Peberdy, Vice-President, Marketing,
Communications and Public Affairs and Chief Conservation Officer: (416)
542-2515, bpeberdy@torontohydro.com; Pankaj Sardana, VP, Treasurer and
Regulatory Affairs: (416) 542-2707, psardana@torontohydro.com


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