Hamilton Utilities Corporation Releases 2006 Financial Results

    HAMILTON, ON, April 12 /CNW/ - Hamilton Utilities Corporation (the
"Corporation") announced its financial results today reporting consolidated
net income for the year ended December 31, 2006 of $16.2 million compared with
$12.4 million for the year ended December 31, 2005.
    "In 2006, Hamilton Utilities Corporation delivered record financial
results, principally based on the strong performance of its electricity
distribution business, Horizon Utilities Corporation." said John Basilio,
Interim President of Hamilton Utilities Corporation. "Our FibreWired business
unit also continued to contribute positively to earnings with investment
returns consistent with expectations".
    Total revenue growth of $5.4 million over 2005 principally related to
Horizon Utilities which reflects a 10 month fiscal period in 2005 consolidated
results following its creation by merger on March 1, 2005. Otherwise, Horizon
revenues increased modestly by $1.9MM, or 2.1%, on an annualized comparative
basis. FibreWired revenue grew by 7.8% or $0.6MM reflecting customer growth in
offsite data storage and network access services.
    Normalized operating expenses, excluding $2.7 million in 2005 merger
related expenses, increased by $1.2 million, or about 2.8%, in 2006. This
increase was primarily attributable to non-recurring expenditures in the
electricity distribution operations to support regulated conservation and
demand management programs, increased activity in the forestry program, and an
investment in skilled trades apprentices to address an aging workforce
demographic and anticipated retirements. Overall, there has been continued
success in containing recurring operating expenditures as a result of ongoing
corporate process improvement initiatives.
    The 2006 financial results included a one-time $2.8MM pre-tax recovery of
costs incurred by a predecessor of Horizon Utilities for systems and process
changes to support the deregulation of the electricity market in 2002. The
recovery of these amounts was approved by the Ontario Energy Board in 2006 for
many electricity distributors such as Horizon Utilities. Such costs were
previously written-off due to the uncertainty of recovery.
    During 2006 the Corporation paid $5.0 million in dividends and invested
$33.9 million in capital, primarily in the electricity distribution system.

    Financial Summary ($ millions)

                                                  2006      2005

    Revenues                                     100.0      94.7

    Operating expenses                            44.5      46.0
    Depreciation and amortization                 22.3      21.0
                                                  66.8      67.0
    Income from operating activities              33.2      27.7
    Recovery of qualifying transition costs        2.8         -
    Gains on asset dispositions                    0.1       0.6
    Net interest expense                          (6.8)     (6.6)
    Income before payments in lieu of taxes       29.3      21.6
    Payments in lieu of taxes                    (10.0)     (6.9)
    Net income before minority interest           19.3      14.7
    Minority interest                             (3.1)     (2.3)
    Net income                                    16.2      12.4

    Hamilton Utilities Corporation is a holding company with a 78.9 per cent
ownership interest in Horizon Utilities Corporation, a regulated local
electricity distribution company; and wholly-owned interests in FibreWired
Hamilton, a regional broadband telecommunications service provider, and
Hamilton Community Energy, a district energy facility operating in downtown
Hamilton. Hamilton Utilities Corporation is committed to providing essential
public utility and related services in a manner that balances commercial
discipline with environmental and social responsibility. Hamilton Utilities
Corporation is wholly-owned by the City of Hamilton. For more information,
visit: www.hamiltonucorp.com.

    Hamilton Utilities Corporation's 2006 Consolidated Financial Statements
and Management's Discussion and Analysis are available at

For further information:

For further information: John G. Basilio, CA Interim President, (905)
317-4783, jgbasilio@hamiltonucorp.com

Organization Profile

Hamilton Utilities Corporation

More on this organization

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890