Toronto Hydro Corporation

Toronto Hydro Corporation

August 18, 2009 10:56 ET

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

TORONTO, ONTARIO--(Marketwire - Aug. 18, 2009) -



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

Net Income $14.4 $15.1 $21.4 $37.6

Net Revenues $123.8 $120.8 $248.3 $236.0
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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.



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

Contact Information

  • Toronto Hydro Corporation
    Blair Peberdy, Vice-President, Marketing, Communications and
    Public Affairs and Chief Conservation Officer
    416-542-2515
    bpeberdy@torontohydro.com
    or
    Toronto Hydro Corporation
    Pankaj Sardana
    VP, Treasurer and Regulatory Affairs
    416-542-2707
    psardana@torontohydro.com