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Toronto Hydro Corporation Releases its 2008 Audited Financial Statements and Related MD&A
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Year Ended December 31
in millions of dollars, audited
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2008 2007
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Net Income $169.0 $82.8
Net Income from Continuing Operations $46.3 $54.1
Net Revenues $498.2 $497.6
-------------------------------------------------------------------------TORONTO, March 11 /CNW/ - Toronto Hydro Corporation (the "Corporation")
announced today that it has filed with Canadian security regulators its
audited Consolidated Financial Statements and related MD&A for the year ended
December 31, 2008. Copies may be obtained from the Corporation or accessed
through www.sedar.com.- Net income was $169.0 million in 2008 compared with $82.8 million in
2007. The net income includes the recognition of a gain on the sale
of the shares of Toronto Hydro Telecom Inc. of $118.7 million.
- Net revenues were slightly higher at $498.2 million compared to
$497.6 million in 2007."Our focus in 2008 continued to be on electricity distribution
operations, which enabled us to complete construction programs and trades
recruitment initiatives on schedule and on budget. Infrastructure renewal will
remain a priority as we continue to execute our ten-year capital program that
is now underway", said David O'Brien, President and Chief Executive Officer.
Financial Highlights
Net income was $169.0 million in 2008, compared to $82.8 million in 2007.
The increase in net income was mainly due to discontinued operations in 2008
($94.0 million) related to the sale of Telecom and a favourable variance in
the provision for Payment in Lieu of Corporate Taxes ($32.1 million).
Offsetting these favourable variances were higher operating expenses ($15.1
million), higher depreciation expense ($12.4 million), and higher impairment
on investments held to maturity ($9.0 million).-------------------------------------------------------------------------
Financial Highlights, Year ended December 31;
in millions of dollars; audited
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Variance -
Favourable/
2008 2007 (Unfavourable)
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Net Income $169.0 $82.8 $86.2
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Net Revenues 498.2 497.6 0.6
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Operating Expenses 205.5 190.4 (15.1)
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Depreciation & Amortization 156.3 143.9 (12.4)
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Impairment of Investments
Held to Maturity 22.0 13.0 (9.0)
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Income from Discontinued Operations 122.7 28.8 94.0
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Provision for Payment in Lieu
of Corporate Taxes 5.7 37.8 32.1
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Net Interest Expense 62.4 60.0 (2.4)
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Corporate Developments
- On July 31, 2008, the Corporation successfully closed the sale of
shares held in Toronto Hydro Telecom Inc. to Cogeco Cable Inc. (TSX:
CCA) for $200 million subject to post-closing adjustments.
- On December 12, 2008, the Corporation filed a new shelf prospectus
under its Medium Term Notes program which provides for the issuance
of up to $1.0 billion of debentures during the 25-month period
following the date of the prospectus. The Corporation will use net
proceeds from the sale of debentures issued under the shelf
prospectus for general corporate purposes which may include the
repayment of existing indebtedness outstanding to the City.
- On March 10, 2009, the Corporation declared dividends amounting to
$6.2 million relating to the first quarter of 2009 ($6.0 million),
payable to the City on March 31, 2009, and $0.2 million with respect
to net income for the year ended December 31, 2008, payable to the
City on March 20, 2009.
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 684,000 customers located in the
City of Toronto.