Toronto Hydro Corporation Releases its Third Quarter Financial Statements
NOV 30, 2006 - 11:46 ET
TORONTO, ONTARIO -- (CCNMatthews - Nov. 30, 2006)
Toronto Hydro Corporation (the "Corporation") released its third quarter results for the nine-month period ended September 30, 2006. Copies can be obtained from the Corporation or accessed through www.sedar.com.
- Net income for the nine months ended September 30, 2006 was $69.6 million compared to $69.9 million for the comparable period in 2005.
- On September 5, 2006, the Corporation announced that it had agreed to amend and restate its outstanding $980.2 million promissory note between the Corporation and the City of Toronto effective May 1, 2006 by fixing the interest rate at 6.11% and establishing an agreed repayment schedule ($245.1 million on each of the last business days before December 31, 2007, December 31, 2009 and December 31, 2011 and on May 6, 2013).
"Our continued strong performance implies that we remain on track to achieve our plan for 2006, and we continue to maintain good credit fundamentals. In addition, our conservation and demand management programs were particularly successful through the summer months reaching many customers through direct to consumer programs, and our Summer Challenge campaign", said President and CEO, David O'Brien.
Net revenues (revenues minus the cost of purchased power and other) for the nine months ended September 30, 2006 were $408.7 million compared to $416.0 million for the comparable period in 2005. The decrease in net revenues for the nine months ended September 30, 2006 was primarily due to decreased net revenues at TH Energy ($12.0 million) partially offset by increased net revenues at Telecom ($4.7 million).
Operating expenses for the nine months ended September 30, 2006 were $143.1 million compared to $133.1 million for the comparable period in 2005. The increase in operating expenses for the nine months ended September 30, 2006 was primarily due to increased spending on CDM programs at LDC ($5.5 million), higher allowance for doubtful accounts at LDC ($1.0 million) and lower deferral of pension and regulatory costs at LDC ($3.6 million), offset by lower property taxes ($1.9 million) at LDC.
Net capital expenditures for the nine months ended September 30, 2006 were $129.7 million compared to $101.7 million for the comparable period in 2005.
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. - manages an existing portfolio of electricity contracts, provides energy efficiency products and services, and delivers streetlighting and expressway lighting services;
- Toronto Hydro Telecom Inc. - leases fibre optic cable capacity and provides data communication services; and
- The principal business of the Corporation is the distribution of electricity by LDC. LDC owns and operates an electricity distribution system which delivers electricity to approximately 677,000 customers located in the City of Toronto. LDC is the largest municipal electric distribution company in Canada.
FOR FURTHER INFORMATION PLEASE CONTACT:
Toronto Hydro Corporation
Vice-President, Communications and Public Affairs
Toronto Hydro Corporation