Welcome!

News Feed Item

Toronto Hydro Corporation Releases its Fourth Quarter Financial Results

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)
    Three months
Ended December 31
  Year
Ended December 31
    2013
$
  2012
$
  2013
$
  2012
$
                 
Net income   29.2   22.8   121.2   86.0
Net revenues   192.7   140.6   635.3   577.3
Capital Expenditures   151.6   108.5   450.3   292.4
                 
                 
  • 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.

Corporate Developments

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 AmericaCopeland 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

                 
            2013
$
  2012
$
                 
Net income           121.2   86.0
Net revenues           635.3   577.3
Operating expenses           272.0   245.2
Depreciation and amortization           172.8   141.6
Net financing charges           66.3   74.0
Restructuring costs           -   27.8
Gain on disposals of PP&E           1.3   1.8
Income tax expense            4.3   4.6
Capital expenditures           450.3   292.4
                 

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.

Forward-Looking Information

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

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
There is an ever-growing explosion of new devices that are connected to the Internet using “cloud” solutions. This rapid growth is creating a massive new demand for efficient access to data. And it’s not just about connecting to that data anymore. This new demand is bringing new issues and challenges and it is important for companies to scale for the coming growth. And with that scaling comes the need for greater security, gathering and data analysis, storage, connectivity and, of course, the...
A critical component of any IoT project is the back-end systems that capture data from remote IoT devices and structure it in a way to answer useful questions. Traditional data warehouse and analytical systems are mature technologies that can be used to handle large data sets, but they are not well suited to many IoT-scale products and the need for real-time insights. At Fuze, we have developed a backend platform as part of our mobility-oriented cloud service that uses Big Data-based approache...
The IoTs will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform. In his session at @ThingsExpo, Craig Sproule, CEO of Metavine, will demonstrate how to move beyond today's coding paradigm and share the must-have mindsets for removing complexity from the development proc...
Much of the value of DevOps comes from a (renewed) focus on measurement, sharing, and continuous feedback loops. In increasingly complex DevOps workflows and environments, and especially in larger, regulated, or more crystallized organizations, these core concepts become even more critical. In his session at @DevOpsSummit at 18th Cloud Expo, Andi Mann, Chief Technology Advocate at Splunk, will show how, by focusing on 'metrics that matter,' you can provide objective, transparent, and meaningfu...
Many private cloud projects were built to deliver self-service access to development and test resources. While those clouds delivered faster access to resources, they lacked visibility, control and security needed for production deployments. In their session at 18th Cloud Expo, Steve Anderson, Product Manager at BMC Software, and Rick Lefort, Principal Technical Marketing Consultant at BMC Software, will discuss how a cloud designed for production operations not only helps accelerate developer...
trust and privacy in their ecosystem. Assurance and protection of device identity, secure data encryption and authentication are the key security challenges organizations are trying to address when integrating IoT devices. This holds true for IoT applications in a wide range of industries, for example, healthcare, consumer devices, and manufacturing. In his session at @ThingsExpo, Lancen LaChance, vice president of product management, IoT solutions at GlobalSign, will teach IoT developers how t...
The IETF draft standard for M2M certificates is a security solution specifically designed for the demanding needs of IoT/M2M applications. In his session at @ThingsExpo, Brian Romansky, VP of Strategic Technology at TrustPoint Innovation, will explain how M2M certificates can efficiently enable confidentiality, integrity, and authenticity on highly constrained devices.
Manufacturers are embracing the Industrial Internet the same way consumers are leveraging Fitbits – to improve overall health and wellness. Both can provide consistent measurement, visibility, and suggest performance improvements customized to help reach goals. Fitbit users can view real-time data and make adjustments to increase their activity. In his session at @ThingsExpo, Mark Bernardo Professional Services Leader, Americas, at GE Digital, will discuss how leveraging the Industrial Interne...
Redis is not only the fastest database, but it has become the most popular among the new wave of applications running in containers. Redis speeds up just about every data interaction between your users or operational systems. In his session at 18th Cloud Expo, Dave Nielsen, Developer Relations at Redis Labs, will shares the functions and data structures used to solve everyday use cases that are driving Redis' popularity.
Artificial Intelligence has the potential to massively disrupt IoT. In his session at 18th Cloud Expo, AJ Abdallat, CEO of Beyond AI, will discuss what the five main drivers are in Artificial Intelligence that could shape the future of the Internet of Things. AJ Abdallat is CEO of Beyond AI. He has over 20 years of management experience in the fields of artificial intelligence, sensors, instruments, devices and software for telecommunications, life sciences, environmental monitoring, process...
Increasing IoT connectivity is forcing enterprises to find elegant solutions to organize and visualize all incoming data from these connected devices with re-configurable dashboard widgets to effectively allow rapid decision-making for everything from immediate actions in tactical situations to strategic analysis and reporting. In his session at 18th Cloud Expo, Shikhir Singh, Senior Developer Relations Manager at Sencha, will discuss how to create HTML5 dashboards that interact with IoT devic...
We're entering the post-smartphone era, where wearable gadgets from watches and fitness bands to glasses and health aids will power the next technological revolution. With mass adoption of wearable devices comes a new data ecosystem that must be protected. Wearables open new pathways that facilitate the tracking, sharing and storing of consumers’ personal health, location and daily activity data. Consumers have some idea of the data these devices capture, but most don’t realize how revealing and...
Struggling to keep up with increasing application demand? Learn how Platform as a Service (PaaS) can streamline application development processes and make resource management easy.
SYS-CON Events announced today that Ericsson has been named “Gold Sponsor” of SYS-CON's @ThingsExpo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. Ericsson is a world leader in the rapidly changing environment of communications technology – providing equipment, software and services to enable transformation through mobility. Some 40 percent of global mobile traffic runs through networks we have supplied. More than 1 billion subscribers around the world re...
In the world of DevOps there are ‘known good practices’ – aka ‘patterns’ – and ‘known bad practices’ – aka ‘anti-patterns.' Many of these patterns and anti-patterns have been developed from real world experience, especially by the early adopters of DevOps theory; but many are more feasible in theory than in practice, especially for more recent entrants to the DevOps scene. In this power panel at @DevOpsSummit at 18th Cloud Expo, moderated by DevOps Conference Chair Andi Mann, panelists will dis...