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Toronto Hydro Corporation Releases its 2009 Audited Financial Statements and Related MD&A
------------------------------------------------------------------------- Three Months Ended March 31 in millions of dollars, unaudited ------------------------------------------------------------------------- 2009 2008 ------- ------- Net Income (Loss) $ 7.0 $ 22.5 Net Revenues $125.1 $115.9 -------------------------------------------------------------------------TORONTO, May 20 /CNW/ - Toronto Hydro Corporation (the "Corporation") announced today that it has filed with Canadian security regulators its financial statements and related MD&A for the three months ended March 31, 2009. Copies may be obtained from the Corporation or accessed through www.sedar.com.- Net income was $7.0 million in 2009 compared with net income of $22.5 million in 2008. - Net revenues were slightly higher at $125.1 million compared to $115.9 million in 2008."We suspended our planned capital construction program for a number of weeks in the first quarter to enable us to address safety issues in parts of our electricity distribution infrastructure. Our planned 2009 capital program has resumed and we are confident of meeting our targets by year-end. Additionally, the current economic downturn is impacting our customers, with consumption trending about 3 percent lower compared with the same period in 2008", said David O'Brien, President and Chief Executive Officer. Financial Highlights Net income was $7.0 million in the first quarter of 2009, compared to $22.5 million for the same period in 2008. The decrease in net income was primarily due to the recovery of Payment in Lieu of Taxes (PILs) recorded in 2008 following the completion of the 2001 and 2002 PILs audits by the Ministry of Finance ($22.9 million), lower income from our divested Telecom operations ($1.8 million), higher depreciation expense ($1.8 million), and higher net interest expense ($1.3 million). These unfavourable variances were partially offset by higher net revenues ($9.3 million) from higher distribution rates.------------------------------------------------------------------------- Financial Highlights Three Months ended March 31 (in thousands of dollars, unaudited) ------------------------------------------------------------------------- Variance Favourable/ (Un- 2009 2008 favourable) ------------------------------------------------------------------------- Net Income from continuing operations $ 6,986 $ 20,682 $(13,696) ------------------------------------------------------------------------- Net Revenues 125,145 115,857 8,605 ------------------------------------------------------------------------- Operating Expenses 59,351 50,746 (8,605) ------------------------------------------------------------------------- Depreciation & Amortization 40,802 39,026 (1,776) ------------------------------------------------------------------------- Change in fair value of Investments 2,145 (9,427) 11,572 ------------------------------------------------------------------------- Income from Discontinued Operations - 1,810 (1,180) ------------------------------------------------------------------------- Provision for PILs 2,728 (20,135) (22,863) ------------------------------------------------------------------------- Net Interest Expense 17,423 16,111 (1,312) ------------------------------------------------------------------------- About Toronto Hydro The Corporation is a holding company which through its wholly-owned subsidiaries: - Toronto Hydro-Electric System Limited ("LDC") - distributes electricity; and - Toronto Hydro Energy Services Inc. ("TH Energy") - provides street lighting and expressway lighting services, and energy efficiency products and 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 687,000 customers located in the City of Toronto.