|By PR Newswire||
|March 19, 2014 05:20 PM EDT||
TORONTO, March 19, 2014 /CNW/ - Toronto Hydro Corporation (the "Corporation") announced today that it has filed with Canadian securities regulators its Consolidated Financial Statements and related Management's Discussion and Analysis for the year ended December 31, 2013, prepared in accordance with United States Generally Accepted Accounting Principles ("US GAAP"), including the application of rate-regulated accounting policies, presented in Canadian dollars. Copies may be obtained from the Corporation or accessed through SEDAR's website www.sedar.com.
Selected Financial Highlights
(in millions of Canadian dollars, unaudited)
Ended December 31
Ended December 31
- Net income for the year ended December 31, 2013 was $121.2 million compared to $86.0 million for the same period in 2012.
In 2012, results were depressed by a restructuring charge of $21.9
million (after tax) while 2013 results were enhanced by a one-time
recovery of smart meter revenues in the amount of $21.1 million (after
tax) due to a ruling from the Ontario Energy Board ("OEB").
In addition, 2013 results were adversely affected by incremental
operating expenses of $7.5 million ($10.2 million before tax) related
to the significant ice storm that occurred in December.
Net revenues were higher at $635.3 million compared to $577.3 million
for the same period in 2012.
Capital Expenditures were higher at $450.3 million compared to $292.4
million for the same period in 2012.
- Dividends amounting to $43.0 million were paid to the City of Toronto during the year of 2013. The Corporation's Board of Directors also declared today a dividend of $41.9 million, payable by March 31, 2014.
"I am proud of our company's strong financial performance and appreciate the commitment and hard work of all our employees who contribute to our success. Our strong performance has put us in a solid position to continue to invest in our significant capital infrastructure program to help maintain reliability and safety for our customers while maintaining reasonable electricity distribution rates," said Anthony Haines, President and Chief Executive Officer.
On December 19, 2013, the OEB approved a settlement agreement filed by LDC to allow for the entirety of LDC's requested 2014 capital program.
On January 16, 2014, the OEB approved LDC's requested disposition of the smart meter deferral account balances, permitting the recovery of $23.9 million and $9.6 million through two separate rate riders effective May 1, 2014.
In late December 2013, a severe winter storm involving freezing rain, ice pellets and snow caused damage to the above-ground infrastructure of the Corporation's electricity distribution system. Approximately 300,000 customers lost power for periods of up to eight days, though strenuous efforts resulted in 75% power restoration within 48 hours. As a result, the Corporation incurred incremental costs consisting of overtime of its own employees, time and equipment costs of other utilities that provided mutual aid, tree clearing services and the replacement of damaged assets. The total costs incurred amounted to $13.8 million, of which $3.6 million were capitalized to PP&E and $10.2 million were charged to operating expenses. In addition, potential distribution revenue of approximately $0.9 million was lost due to the power outage. The Corporation decided not to file a special application with the OEB to seek recovery of incremental operating expenses for the Ice Storm as it was able to absorb the impact because of favourable variances.
On May 22, 2013, the Corporation celebrated the official groundbreaking of the new Copeland Station. This station will be the first transformer station built in downtown Toronto since the 1960's and will be the second underground transformer station in Canada. When in service, the new station will provide electricity to buildings and neighbourhoods in the central-southwest region of Toronto. Between 2006 and 2011, the population in the City's downtown increased by over 50%, and Toronto is now the fourth largest metropolitan area, by population, in North America. Copeland Station will provide much needed additional capacity to serve current and future load requirements in this high-density, high-growth area of Toronto. The OEB approved the construction of Copeland station earlier in the year. The total capital expenditures required to complete Copeland Station are expected to be approximately $194.9 million.
On December 17, 2013, the Corporation launched a commercial paper program allowing up to $400.0 million of unsecured short-term promissory notes to be issued in various maturities of no more than one year.
On April 9, 2013, the Corporation issued $250.0 million of 2.91% senior unsecured debentures due April 10, 2023 ("Series 8") and $200.0 million of 3.96% senior unsecured debentures due April 9, 2063 ("Series 9"). The net proceeds of the above debentures, together with borrowings under the Corporation's revolving credit facility, were used to repay the Corporation's $225.0 million of 6.11% senior unsecured debentures ("Series 1") and $245.1 million of 6.11% senior unsecured debentures ("Series 5") which matured on May 7, 2013 and May 6, 2013, respectively.
Selected Financial Highlights
|Depreciation and amortization||172.8||141.6|
|Net financing charges||66.3||74.0|
|Gain on disposals of PP&E||1.3||1.8|
|Income tax expense||4.3||4.6|
Net income for the year ended December 31, 2013 was $121.2 million compared to $86.0 million for the comparable period in 2012. The increase was primarily due to higher net revenues ($58.0 million), restructuring costs recognized in the first quarter of 2012 ($27.8 million) related to the cost reduction initiatives at LDC, lower net financing charges ($7.7 million), and lower income tax expense ($0.3 million). These favourable variances were partially offset by a higher depreciation expense ($31.2 million), higher operating expenses ($26.8 million), and lower gains on disposals of surplus properties ($0.5 million).
Capital expenditures amounted to $450.3 million for the year ended December 31, 2013 compared to $292.4 million for the comparable period in 2012. The most significant regulated capital expenditures incurred by LDC during the year of 2013 related to planned spending on overhead infrastructure ($78.2 million), underground infrastructure ($65.9 million), customer connections ($52.0 million), Copeland Station ($45.3 million), and reactive remediation work ($35.0 million).
About Toronto Hydro Corporation
The Corporation is a holding company which wholly-owns two subsidiaries:
- LDC — which distributes electricity and engages in Conservation and Demand Management activities; and
- Toronto Hydro Energy Services Inc. — which provides street lighting services.
The principal business of the Corporation and its subsidiaries is the distribution of electricity by LDC. LDC owns and operates an electricity distribution system, which delivers electricity to approximately 730,000 customers located in the City of Toronto.
Non-GAAP Financial Measures
This press release includes references to "net revenues", which is a non-GAAP financial measure. The definition of net revenues is revenue minus the cost of purchased power. This measure does not have any standard meaning prescribed by US GAAP and is not necessarily comparable to similarly titled measures of other companies. The Corporation uses this measure to assess its performance and to further make operating decisions.
The Corporation includes forward-looking information in its news release within the meaning of applicable securities laws in Canada ("forward-looking information"). The purpose of the forward-looking information is to provide management's expectations regarding the Corporation's future results of operations, performance, business prospects and opportunities and may not be appropriate for other purposes. All forward-looking information is given pursuant to the "safe harbour" provisions of applicable Canadian securities legislation. The words "expects", "expected", "seek", and similar expressions are often intended to identify forward-looking information, although not all forward-looking information contains these identifying words. The forward-looking information reflects management's current beliefs and is based on information currently available to the Corporation's management.
The forward-looking information in the news release includes, but is not limited to, statements regarding the Corporation's plans to borrow funds to repay maturing debentures and to finance the investment in LDC's infrastructure. The statements that make up the forward-looking information are based on assumptions that include, but are not limited to, the future course of the economy and financial markets, the receipt of applicable regulatory approvals and requested rate orders, the level of interest rates and the Corporation's ability to borrow.
The forward-looking information is subject to risks, uncertainties and other factors that could cause actual results to differ materially from historical results or results anticipated by the forward-looking information. The factors which could cause results or events to differ from current expectations include, but are not limited to, market liquidity and the quality of the underlying assets and financial instruments, the timing and extent of changes in prevailing interest rates, inflation levels, legislative, judicial and regulatory developments that could affect revenues and the results of borrowing efforts.
All forward-looking information in the news release is qualified in its
entirety by the above cautionary statements and, except as required by
law, the Corporation undertakes no obligation to revise or update any
forward-looking information as a result of new information, future
events or otherwise after the date hereof.
SOURCE Toronto Hydro Corporation
In past @ThingsExpo presentations, Joseph di Paolantonio has explored how various Internet of Things (IoT) and data management and analytics (DMA) solution spaces will come together as sensor analytics ecosystems. This year, in his session at @ThingsExpo, Joseph di Paolantonio from DataArchon, will be adding the numerous Transportation areas, from autonomous vehicles to “Uber for containers.” While IoT data in any one area of Transportation will have a huge impact in that area, combining sensor...
Oct. 25, 2016 08:30 AM EDT Reads: 886
Machine Learning helps make complex systems more efficient. By applying advanced Machine Learning techniques such as Cognitive Fingerprinting, wind project operators can utilize these tools to learn from collected data, detect regular patterns, and optimize their own operations. In his session at 18th Cloud Expo, Stuart Gillen, Director of Business Development at SparkCognition, discussed how research has demonstrated the value of Machine Learning in delivering next generation analytics to impr...
Oct. 25, 2016 08:00 AM EDT Reads: 5,735
Successful digital transformation requires new organizational competencies and capabilities. Research tells us that the biggest impediment to successful transformation is human; consequently, the biggest enabler is a properly skilled and empowered workforce. In the digital age, new individual and collective competencies are required. In his session at 19th Cloud Expo, Bob Newhouse, CEO and founder of Agilitiv, will draw together recent research and lessons learned from emerging and established ...
Oct. 25, 2016 07:45 AM EDT Reads: 1,396
The best way to leverage your Cloud Expo presence as a sponsor and exhibitor is to plan your news announcements around our events. The press covering Cloud Expo and @ThingsExpo will have access to these releases and will amplify your news announcements. More than two dozen Cloud companies either set deals at our shows or have announced their mergers and acquisitions at Cloud Expo. Product announcements during our show provide your company with the most reach through our targeted audiences.
Oct. 25, 2016 07:45 AM EDT Reads: 4,892
Amazon has gradually rolled out parts of its IoT offerings, but these are just the tip of the iceberg. In addition to optimizing their backend AWS offerings, Amazon is laying the ground work to be a major force in IoT - especially in the connected home and office. In his session at @ThingsExpo, Chris Kocher, founder and managing director of Grey Heron, explained how Amazon is extending its reach to become a major force in IoT by building on its dominant cloud IoT platform, its Dash Button strat...
Oct. 25, 2016 06:45 AM EDT Reads: 4,817
@ThingsExpo has been named the Top 5 Most Influential M2M Brand by Onalytica in the ‘Machine to Machine: Top 100 Influencers and Brands.' Onalytica analyzed the online debate on M2M by looking at over 85,000 tweets to provide the most influential individuals and brands that drive the discussion. According to Onalytica the "analysis showed a very engaged community with a lot of interactive tweets. The M2M discussion seems to be more fragmented and driven by some of the major brands present in the...
Oct. 25, 2016 06:15 AM EDT Reads: 11,432
SYS-CON Events announced today that Interface Masters Technologies, a leader in Network Visibility and Uptime Solutions, will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Interface Masters Technologies is a leading vendor in the network monitoring and high speed networking markets. Based in the heart of Silicon Valley, Interface Masters' expertise lies in Gigabit, 10 Gigabit and 40 Gigabit Eth...
Oct. 25, 2016 05:45 AM EDT Reads: 3,352
As software becomes more and more complex, we, as software developers, have been splitting up our code into smaller and smaller components. This is also true for the environment in which we run our code: going from bare metal, to VMs to the modern-day Cloud Native world of containers, schedulers and microservices. While we have figured out how to run containerized applications in the cloud using schedulers, we've yet to come up with a good solution to bridge the gap between getting your conta...
Oct. 25, 2016 05:30 AM EDT Reads: 1,519
We are reaching the end of the beginning with WebRTC, and real systems using this technology have begun to appear. One challenge that faces every WebRTC deployment (in some form or another) is identity management. For example, if you have an existing service – possibly built on a variety of different PaaS/SaaS offerings – and you want to add real-time communications you are faced with a challenge relating to user management, authentication, authorization, and validation. Service providers will w...
Oct. 25, 2016 05:30 AM EDT Reads: 3,375
DevOps is being widely accepted (if not fully adopted) as essential in enterprise IT. But as Enterprise DevOps gains maturity, expands scope, and increases velocity, the need for data-driven decisions across teams becomes more acute. DevOps teams in any modern business must wrangle the ‘digital exhaust’ from the delivery toolchain, "pervasive" and "cognitive" computing, APIs and services, mobile devices and applications, the Internet of Things, and now even blockchain. In this power panel at @...
Oct. 25, 2016 05:15 AM EDT Reads: 1,997
DevOps theory promotes a culture of continuous improvement built on collaboration, empowerment, systems thinking, and feedback loops. But how do you collaborate effectively across the traditional silos? How can you make decisions without system-wide visibility? How can you see the whole system when it is spread across teams and locations? How do you close feedback loops across teams and activities delivering complex multi-tier, cloud, container, serverless, and/or API-based services?
Oct. 25, 2016 04:45 AM EDT Reads: 1,089
SYS-CON Media announced today that @WebRTCSummit Blog, the largest WebRTC resource in the world, has been launched. @WebRTCSummit Blog offers top articles, news stories, and blog posts from the world's well-known experts and guarantees better exposure for its authors than any other publication. @WebRTCSummit Blog can be bookmarked ▸ Here @WebRTCSummit conference site can be bookmarked ▸ Here
Oct. 25, 2016 04:30 AM EDT Reads: 9,705
SYS-CON Events announced today that Streamlyzer will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Streamlyzer is a powerful analytics for video streaming service that enables video streaming providers to monitor and analyze QoE (Quality-of-Experience) from end-user devices in real time.
Oct. 25, 2016 04:15 AM EDT Reads: 1,012
You have great SaaS business app ideas. You want to turn your idea quickly into a functional and engaging proof of concept. You need to be able to modify it to meet customers' needs, and you need to deliver a complete and secure SaaS application. How could you achieve all the above and yet avoid unforeseen IT requirements that add unnecessary cost and complexity? You also want your app to be responsive in any device at any time. In his session at 19th Cloud Expo, Mark Allen, General Manager of...
Oct. 25, 2016 04:15 AM EDT Reads: 954
One of biggest questions about Big Data is “How do we harness all that information for business use quickly and effectively?” Geographic Information Systems (GIS) or spatial technology is about more than making maps, but adding critical context and meaning to data of all types, coming from all different channels – even sensors. In his session at @ThingsExpo, William (Bill) Meehan, director of utility solutions for Esri, will take a closer look at the current state of spatial technology and ar...
Oct. 25, 2016 04:15 AM EDT Reads: 1,740