Toronto Hydro Corporation Releases its Third Quarter Financial Statements and
Related MD&A
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Three months Ended Nine months Ended
September 30; September 30;
In Millions of dollars; In Millions of dollars;
Unaudited Unaudited
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2009 2008 2009 2008
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Net Income $11.8 $126.6 $33.2 $164.2
Net Income from
Continuing Operations $11.8 $11.0 $33.4 $41.3
Net Revenues $130.0 $131.9 $378.4 $367.9
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- Net income for the nine months ended September 30, 2009 amounted to
$33.2 million compared with $164.2 million for the same period in
2008. The net income to September 30, 2008 included the recognition of
a gain on the sale of the shares of Toronto Hydro Telecom Inc. of
$118.6 million.
- Net revenues for the nine months ended September 30, 2009 were higher
at $378.4 million compared to $367.9 million for the same period in
2008.
Financial Highlights
Net income was $33.2 million for the nine months ended September 30 2009,
compared to $164.2 million for the same period in 2008. The decrease in net
income for the nine months ended September 30, 2009, was primarily due to:
- Lower income from discontinued operations from the sale of Telecom in
2008 ($123.1 million);
- Higher operating expenses ($12.9 million);
- A variance in Payment in Lieu of Income Taxes ("PILs");
($12.3 million) from the recovery recorded in 2008 following the
completion of the 2001 and 2002 audits by the Ministry of Revenue;
- Higher depreciation expense ($5.4 million) and higher net interest
expense ($5.3 million).
- These unfavourable variances were partially offset by a variance in
the fair value of investments ($17.6 million) related to an impairment
charge recorded in 2008 due to unfavourable market conditions, and by
higher net revenues ($10.4 million).
Financial Highlights
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Financial Highlights
Nine Months ended September 30
(in thousands of dollars, unaudited)
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2009 2008
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Net Income from Continuing Operations 33,415 41,308
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Income (loss) from Discontinued Operations (223) 122,884
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Net Revenues 378,372 367,931
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Operating Expenses 158,775 145,839
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Depreciation & Amortization 122,375 116,998
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Net Interest Expense 52,138 46,837
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Change in Fair Value of Investments (1,049) (18,612)
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Provision for (recovery of) PILs 10,620 (1,663)
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Corporate Developments
- On October 1, 2009, Anthony Haines was appointed President and CEO of
Toronto Hydro Corporation. Mr. Haines will continue as President of
Toronto Hydro-Electric System Limited.
- On November 12, 2009, the Corporation issued $250.0 million in 10-year
senior unsecured debentures which bear interest at the rate of 4.49%
per annum and are payable semi-annually in arrears in equal
instalments on May 12 and November 12 of each year. The notes will
mature on November 12, 2019. The net proceeds of this issuance will be
used principally to repay $245.1 million of indebtedness outstanding
to the City of Toronto under the terms of the Corporation's promissory
note with the City.
- On November 26, 2009, the Corporation declared dividends amounting to
$7 million relating to the fourth quarter of 2009, payable to the City
of Toronto on December 31, 2009.
About Toronto Hydro
The Corporation is a holding company which through its wholly-owned
subsidiaries:
- Toronto Hydro-Electric System Limited ("LDC") - which distributes
electricity and engages in Conservation and Demand Management ("CDM")
activities; and
- Toronto Hydro Energy Services Inc. ("TH Energy") - which provides
street lighting services and develops 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 689,000 customers located in the City of
For further information: please contact either: Blair Peberdy: (416) 542-2515, Vice-President, Communications and Public Affairs, [email protected]; Pankaj Sardana: (416) 542-2707, VP, Treasurer and Regulatory Affairs, [email protected]
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