Toronto Hydro Corporation

Toronto Hydro Corporation

March 06, 2008 15:33 ET

Toronto Hydro Corporation Releases its 2007 Audited Financial Statements and Related MD&A

TORONTO, ONTARIO--(Marketwire - March 6, 2008) - Toronto Hydro Corporation -



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Year Ended December 31
in millions of dollars, audited
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2007 2006
---- ----

Net Income $82.8 $92.4

Net Revenue $528.7 $541.1
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Toronto Hydro Corporation (the "Corporation") announced today that it has filed with Canadian security regulators its audited Consolidated Financial Statements and related MD&A for the year ended December 31, 2007. Copies may be obtained from the Corporation or accessed through www.sedar.com.

- Net income was $82.8 million in 2007 compared with $92.4 million in 2006.

- 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 2007 financial results were strong and all business units performed well. Relatively milder weather through the summer months, complimented by successful conservation and demand management programs, resulted in lower electricity consumption overall in Toronto. We continue to be among the leading utilities in delivering conservation and demand management programs. Importantly, we managed our operating costs well while completing a significantly larger capital program" said David O'Brien, President and Chief Executive Officer.

Financial Highlights

Net income was $82.8 million in 2007 compared with $92.4 million in 2006. Contributing variances to the $9.6 million lower net income are illustrated in the Financial Highlights table below and are as follows:

- Lower net revenues stemming from the completion of TH Energy's commodity portfolio in 2006;

- Higher operating expenses and depreciation and amortization due to LDC's infrastructure and workforce renewal initiatives;

- Impairment of investments held to maturity recorded in 2007 due to the Corporation's exposure to third-party asset-backed commercial paper; and

- A one-time gain on sale of TH Energy's water heater assets included in Discontinued Operations.



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Financial Highlights, Year ended December 31;
in millions of dollars; audited
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Variance -
Favourable /
2007 2006 (Unfavourable)
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Net Income $82.8 $92.4 ($9.6)
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Net Revenues 528.7 541.1 (12.5)
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Operating Expenses 206.3 194.2 (12.4)
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Depreciation & Amortization 151.6 137.3 (14.3)
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Impairment of Investments
Held to Maturity 13.1 - (13.1)
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Income from Discontinued Operations 24.2 2.2 22.0
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Provision for PILs 41.0 58.4 17.4
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Gain on Disposal of Property,
Plant and Equipment 1.7 - 1.7
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Net Interest Expense 59.9 61.1 1.2
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Corporate Developments

- During the fourth quarter of 2007, the Corporation declared and paid a dividend of $7.0 million to the City of Toronto. On March 5, 2008, the Corporation declared dividends totalling $22.4 million per the following:

-- $16.4 million with respect to net income for the year ended December 31, 2007 payable to the City of Toronto on March 14, 2008.

-- $6.0 million with respect to the first quarter of 2008, payable to the City of Toronto on March 31, 2008.

About Toronto Hydro

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

- LDC - distributes electricity, and engages in conservation and demand management activities.

- TH Energy - provides street lighting 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 680,000 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
    Email: bpeberdy@torontohydro.com
    or
    Toronto Hydro Corporation
    Pankaj Sardana
    VP, Treasurer and Regulatory Affairs
    (416) 542-2707
    Email: psardana@torontohydro.com