Toronto Hydro Corporation

Toronto Hydro Corporation
Toronto Hydro-Electric System Limited

Toronto Hydro-Electric System Limited

March 02, 2007 19:38 ET

Toronto Hydro Corporation Releases its 2006 Audited Financial Statements and Related MD&A

TORONTO, ONTARIO--(CCNMatthews - March 2, 2007) - Toronto Hydro Corporation and Toronto Hydro-Electric System Limited -



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Year Ended Ended December 31
in millions of dollars, audited
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2006 2005
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Net Income $92.4 $92.4

Net Revenue $541.2 $546.5

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Toronto Hydro Corporation (the "Corporation") announced today that it has filed with Canadian security regulators its audited financial statements and related MD&A for the year ended December 31, 2006. Copies may be obtained from the Corporation or accessed through www.sedar.com.

- Net income was $92.4 million in 2006 and in 2005.

- On February 8, 2007, the Corporation announced the closing of the sale of its water heater assets to the Consumers' Waterheater Income Fund for $40.8 million, which is subject to post-closing adjustments and transaction costs.

"Our 2006 financial results reflect strong performance across all business units, despite the milder weather that occurred across much of the year. Overall, we managed our operating costs effectively and completed our capital programs. Equally important, our conservation and demand management initiatives were very successful and we solidified our position as leaders in this area, especially with our Summer Challenge 10 percent credit program", said David O'Brien, President and Chief Executive Officer.

Financial Highlights

Net income was $92.4 million in 2006 and 2005. Unfavourable variances were noted in net revenues ($5.3 million), operating expenses ($3.0 million), depreciation and amortization expense ($5.7 million) and other ($5.0 million). These unfavourable variances were offset by decreased net interest expense ($7.9 million), decreased provision for PILs ($10.4 million) and increased income from discontinued operations ($0.7 million).

Net revenues (revenues minus the cost of purchased power and other) were $541.2 million in 2006 compared to $546.5 million in 2005. The decrease was primarily due to decreased net revenues at TH Energy ($5.8 million) and LDC ($5.5 million) partially offset by increased net revenues at Telecom ($5.4 million).



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Financial Highlights, Year ended December 31;
in thousands of dollars; audited
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2006 2005
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Net Income $92,397 $92,445

Net Revenues 541,163 546,483

Operating Expenses 194,216 191,185

Depreciation &
Amortization 137,344 131,595

Net Interest Expense 61,070 68,987

Provision for PILs 58,403 68,839

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Fourth Quarter Corporate Developments

- During the fourth quarter of 2006, the Corporation declared and paid a dividend of $7.0 million to the City of Toronto. On March 1, 2007, the Corporation declared dividends totalling $27.2 million per the following:

- $6.0 million with respect to the first quarter of 2007, payable to the City of Toronto on March 30, 2007.

- $21.2 million with respect to net income for the year ended December 31, 2006 payable to the City of Toronto on March 9, 2007.

About Toronto Hydro

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

- LDC - distributes electricity;

- TH Energy - provides street lighting and expressway lighting services, and energy efficiency products and services, and;

- Toronto Hydro Telecom Inc. - provides fibre optic cable capacity and manages data communications 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 678,000 customers located in the City of Toronto.

Contact Information

  • Toronto Hydro Corporation
    Blair Peberdy
    Vice-President, Communications and Public Affairs
    (416) 542-2515
    Email: bpeberdy@torontohydro.com
    or
    Toronto Hydro Corporation
    Pankaj Sardana
    VP, Treasurer and Regulatory Affairs
    (416) 542-2707
    Email: psardana@torontohydro.com