Toronto Hydro Corporation

Toronto Hydro Corporation

August 18, 2008 15:40 ET

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

TORONTO, ONTARIO--(Marketwire - Aug. 18, 2008) -



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Three months Ended June 30; Six months Ended June 30;
In Millions of Dollars; In Millions of dollars;
Unaudited Unaudited

2008 2007 2008 2007
---- ---- ---- ----
Net Income $ 15.1 $ 14.9 $ 37.6 $ 52.6

Net Revenues $ 121.4 $ 117.9 $ 237.3 $ 237.2
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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, 2008. Copies may be obtained from the Corporation or accessed through www.sedar.com.

- Net income for the six months ended June 30, 2008 was $37.6 million, compared with $52.6 million for the same period in 2007.

- Net revenues for the six months ended June 30, 2008 were slightly higher at $237.3 million compared to $237.2 million for the same period in 2007.

"We have continued to streamline our operations to focus on our core distribution business, as evidenced by the very successful divestiture of our non-core telecom business in July of 2008", said David O'Brien, President and Chief Executive Officer.

Financial Highlights

Net income was $37.6 million for the six months ended June 30 2008, compared to $52.6 million for the same period in 2007. Factors contributing to the lower net income were:

- The gain on discontinued operations of $24.6 million recorded in 2007 regarding the sale of our water heater business;

- An increase to the impairment provision on Asset Backed Commercial Paper of $9.4 million recorded in 2008; and

- Higher depreciation expense of $8.8 million from increased investment in electricity distribution infrastructure.

The above-noted unfavourable variances were partially offset by a favourable settlement reached in March 2008 with the Ministry of Finance pertaining to a Payment in Lieu of taxes (PILs) audit for 2001 and 2002.



Financial Highlights
----------------------------------------------------------------------------
Three months Ended June 30; Six months Ended June 30;
Millions of dollars; Millions of dollars;
Unaudited Unaudited
2008 2007 2008 2007
---- ---- ---- ----
Net Income 15.1 14.9 37.6 52.6
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Net Income from
Discontinued 5.3 1.0 7.1 26.9
Operations
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Net Revenues 121.4 117.9 237.3 237.2
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Operating
Expenses 48.2 50.4 98.9 101.2
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Depreciation &
Amortization 38.6 34.6 77.6 68.9
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Net Interest
Expense 15.1 13.3 31.2 27.7
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Provision for
(recovery of) PILs 9.8 5.7 (10.3) 13.8
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Corporate Developments

- On June 3, 2008, Standard & Poor's upgraded the Corporation's credit rating to A from A-.

- On July 31, 2008, the Corporation successfully closed the sale of Toronto Hydro Telecom Inc. to Cogeco Cable Inc. for $200 million.

- On August 18, 2008, the Corporation declared a dividend of $6.0 million for the third quarter of 2007, payable to the City of Toronto on September 30, 2007.

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. - which provides fibre optic cable capacity and manages data communications services and was sold on July 31, 2008.

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 683,000 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