Toronto Hydro Corporation

Toronto Hydro Corporation

August 23, 2007 23:59 ET

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

TORONTO, ONTARIO--(Marketwire - Aug. 23, 2007) -



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Three months Ended June 30; In Six months Ended June 30; In
Millions of dollars; Unaudited Millions of dollars; Unaudited
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2007 2006 2007 2006
----- ----- ----- -----
Net Income $ 14.9 $ 18.2 $ 52.6 $ 40.7

Net Revenues $124.9 $132.4 $250.6 $264.7
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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, 2007. Copies may be obtained from the Corporation or accessed through www.sedar.com.

- Net income for the six months ended June 30, 2007 was $52.6 million, compared with $40.7 million for the same period in 2006.

- Net revenues were lower at $250.6 million compared to $264.7 million for the same period in 2006.

"Our year-to-date results continue to reflect good performance across all business units, despite some unfavourable weather conditions earlier in the year. We expect our performance to remain strong for the balance of the year. Additionally, we are continuing to drive conservation and demand management programs into the Toronto market, particularly targeted to the commercial and industrial customer classes", said David O'Brien, President and Chief Executive Officer.

Financial Highlights

Net income was $52.6 million for the six months ended June 30 2007, compared to $40.7 million for the same period in 2006. Factors contributing to the higher net income were:

- The gain on sale of water heater assets included in income from discontinued operations ($23.9 million);

- A lower provision for payments in lieu of corporate taxes ("PILs") ($16.5 million); and

- Lower net interest expense ($4.1 million).

Factors offsetting the higher net income compared to the same period in 2006 were:

- Decreased net revenues from lower distribution revenue and lower contribution from electricity retailing which ceased on December 31, 2006 ($14.1 million);

- Increased operating expenses ($14.1 million) due to increased hiring of new apprentices, higher OMERs contributions, higher operating and maintenance expenses stemming from aging infrastructure at LDC, and increased business activity at Telecom and TH Energy;

- Increased depreciation and amortization expense ($4.4 million) from investment in infrastructure.



Financial Highlights
---------------------------------------------------------------------------
Three months Ended June 30; In Six months Ended June 30; In
Millions of dollars; Unaudited Millions of dollars; Unaudited
---------------------------------------------------------------------------
2007 2006 2007 2006
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Net Income 14.9 18.2 52.6 40.7
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Net Revenues 124.9 132.4 250.6 264.7
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Operating
Expenses 54.2 50.5 108.0 93.9
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Depreciation &
Amortization 36.4 34.2 72.5 68.0
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Net Interest
Expense 13.3 15.2 27.7 31.8
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Provision
for PILs 6.0 14.8 14.4 31.0
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Second Quarter Corporate Developments

- On August 23, the Corporation declared a dividend of $6.0 million for the third quarter of 2007, payable to the City of Toronto on September 28, 2007.

- On August 2, 2007, LDC filed a three-year (2008 to 2010) rate application with the Ontario Energy Board. The application seeks approval to remove charges related to market opening, and increase funding to invest in the upgrading of the electrical distribution system.

About Toronto Hydro

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

- Toronto Hydro-Electric System Limited ("LDC") - distributes electricity;

- Toronto Hydro Energy Services Inc. ("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