Toronto Hydro Corporation

Toronto Hydro Corporation

November 28, 2007 18:08 ET

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

TORONTO, ONTARIO--(Marketwire - Nov. 28, 2007) -



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Three months Ended Nine Months Ended
September 30; In Millions September 30; In Millions
of dollars; Unaudited of dollars; Unaudited
2007 2006 2007 2006
----- ----- ----- -----
Net Income $11.0 $28.9 $63.6 $69.6

Net Revenues $142.3 $141.2 $392.9 $406.0
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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 nine months ended September 30, 2007. Copies may be obtained from the Corporation or accessed through www.sedar.com.

- Net income for the nine months ended September 30, 2007 was $63.6 million, compared with $69.6 million for the same period in 2006.

- Net revenues were lower at $392.9 million compared to $406.0 million for the same period in 2006.

"Year-to-date our performance remains strong. "Our recruitment and training of electrical trades apprentices is proceeding on schedule and construction programs are on track. Conservation and Demand Management programs targeted to the commercial and industrial sector are also gaining traction and we expect to report significant success in this area", said David S. O'Brien, President and Chief Executive Officer, Toronto Hydro Corporation.

Financial Highlights

- Net income was $63.6 million for the nine months ended September 30 2007, compared to $69.6 million for the same period in 2006. Factors contributing to the lower net income compared to the same period in 2006 were:

- Increased operating expenses ($13.2 million) due to increased hiring of new apprentices, and higher operating and maintenance expenses stemming from aging infrastructure at LDC;

- Decreased net revenues ($13.1 million) primarily due to the conclusion in 2006 of TH Energy's electricity retail business;

- Impairment loss recorded by the Corporation in connection with its investments in non-bank sponsored Asset Backed Commercial Paper ($13.1 million); and

- Increased depreciation and amortization expense ($9.1 million) from investment in infrastructure.

Factors offsetting the lower net income were:

- The gain on sale of water heater assets included in income from discontinued operations ($23.1 million); and

- A lower provision for payments in lieu of corporate taxes ("PILs") ($17.5 million);



Financial Highlights
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Three months Ended Nine Months Ended
September 30; In Millions September 30; In Millions
of dollars; Unaudited of dollars; Unaudited
---------------------------------------------------------------------------
2007 2006 2007 2006
----- ----- ----- -----

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Net Income 11.0 28.9 63.6 69.6
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Net Revenues 142.3 141.2 392.9 406.0
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Operating Expenses 48.9 49.8 157.0 143.7
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Depreciation &
Amortization 38.8 34.1 111.2 102.2
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Net Interest
Expense 29.9 14.6 57.6 46.4
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Provision for
PILs 13.6 14.5 28.1 45.5
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Fourth Quarter Corporate Developments

- On November 14, the Corporation issued C$250 million in 10-year debentures due to mature on November 14, 2017. The net proceeds from the sale of the debentures will be used to repay C$245.1 million of indebtedness outstanding to the City of Toronto on December 31, 2007 under the terms of a promissory note between the Corporation and the City. The balance will be used for general corporate purposes.

- On November 28, the Corporation declared a dividend of $7.0 million for the fourth quarter of 2007, payable to the City of Toronto on December 31, 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 to improve reliability and safety.

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