Accu- mulated Addi- Other Non- Com- Prefe- tional Compre- Control- mon rence Paid-in hensive Retained ling Total Shares Shares Capital Loss Earnings Interests Equity--------------------------------------------------------------------------------------------------------------------------------------------------------As at January 1, 2012 $ 3,036 $ 912 $ 14 $ (95) $ 868 $ 208 $ 4,943Net earnings - - - - 362 9 371Other comprehensive loss - - - (1) - - (1)Preference share issue - 196 - - - - 196Common share issues 85 - (3) - - - 82Stock-based compensation - - 4 - - - 4Advances from non- controlling interests - - - - - 106 106Foreign currency translation impacts - - - - - (4) (4)Subsidiary dividends paid to non- controlling interests - - - - - (9) (9)Dividends declared on common shares ($1.21 per share) - - - - (231) - (231)Dividends declared on preference shares - - - - (47) - (47) --------------------------------------------------------------As at December 31, 2012 $ 3,121 $ 1,108 $ 15 $ (96) $ 952 $ 310 $ 5,410----------------------------------------------------------------------------As at January 1, 2011 $ 2,575 $ 912 $ 12 $ (108) $ 774 $ 162 $ 4,327Net earnings - - - - 357 9 366Other comprehensive income - - - 13 - - 13Common share issues 461 - (2) - - - 459Stock-based compensation - - 4 - - - 4Advances from non- controlling interests - - - - - 81 81Foreign currency translation impacts - - - - - 3 3Subsidiary dividends paid to non- controlling interests - - - - - (9) (9)Expropriation of Belize Electricity - - - - - (38) (38)Dividends declared on common shares ($1.17 per share) - - - - (217) - (217)Dividends declared on preference shares - - - - (46) - (46) --------------------------------------------------------------As at December 31, 2011 $ 3,036 $ 912 $ 14 $ (95) $ 868 $ 208 $ 4,943--------------------------------------------------------------------------------------------------------------------------------------------------------
SEGMENTED INFORMATION (Unaudited)
Information by reportable segment is as follows:
REGULATED -------------------------------------------------------------- Gas Utilities Electric Utilities -------------------------------------------------------------- FortisBCQuarter Ended Energy New-December 31, Companies found- Total 2012 - Fortis FortisBC land Other Electric Electric($ millions) Canadian Alberta Electric Power Canadian Canadian Caribbean----------------------------------------------------------------------------Revenue 422 113 81 159 89 442 71Energy supply costs 197 - 22 106 59 187 46Operating expenses 90 42 23 20 13 98 10Depreciation and amortization 40 34 12 11 6 63 8----------------------------------------------------------------------------Operating income 95 37 24 22 11 94 7Other income, net - 2 - - - 2 -Finance charges 35 16 10 9 5 40 3Income tax expense (recovery) 11 - 2 3 - 5 -----------------------------------------------------------------------------Net earnings (loss) 49 23 12 10 6 51 4Non- controlling interests - - - 1 - 1 1Preference share dividends - - - - - - -----------------------------------------------------------------------------Net earnings (loss) attributable to common equity shareholders 49 23 12 9 6 50 3--------------------------------------------------------------------------------------------------------------------------------------------------------Goodwill 913 227 221 - 67 515 140Identifiable assets 4,595 2,776 1,705 1,389 720 6,590 740----------------------------------------------------------------------------Total assets 5,508 3,003 1,926 1,389 787 7,105 880--------------------------------------------------------------------------------------------------------------------------------------------------------Gross capital expenditures (1) 62 138 17 28 13 196 15--------------------------------------------------------------------------------------------------------------------------------------------------------Quarter EndedDecember 31, 2011($ millions)----------------------------------------------------------------------------Revenue 476 102 81 156 83 422 71Energy supply costs 264 - 23 103 55 181 46Operating expenses 84 38 25 21 14 98 9Depreciation and amortization 30 34 11 10 6 61 9----------------------------------------------------------------------------Operating income 98 30 22 22 8 82 7Other income, net 2 2 - - - 2 1Finance charges 33 16 10 9 4 39 3Income tax expense (recovery) 16 - 2 4 2 8 -----------------------------------------------------------------------------Net earnings (loss) 51 16 10 9 2 37 5Non- controlling interests - - - 1 - 1 1Preference share dividends - - - - - - -----------------------------------------------------------------------------Net earnings (loss) attributable to common equity shareholders 51 16 10 8 2 36 4--------------------------------------------------------------------------------------------------------------------------------------------------------Goodwill 913 227 221 - 63 511 141Identifiable assets 4,579 2,483 1,665 1,299 670 6,117 719----------------------------------------------------------------------------Total assets 5,492 2,710 1,886 1,299 733 6,628 860--------------------------------------------------------------------------------------------------------------------------------------------------------Gross capital expenditures (1) 73 163 24 26 14 227 14-------------------------------------------------------------------------------------------------------------------------------------------------------- NON-REGULATED ------------------------------------Quarter EndedDecember 31, Inter- 2012 Fortis Fortis Corporate segment($ millions) Generation Properties and Other eliminations Consolidated----------------------------------------------------------------------------Revenue 5 61 6 (8) 999Energy supply costs - - - - 430Operating expenses 3 42 6 (2) 247Depreciation and amortization 1 6 1 - 119----------------------------------------------------------------------------Operating income 1 13 (1) (6) 203Other income, net 2 - 2 - 6Finance charges 1 6 11 (6) 90Income tax expense (recovery) - 2 (1) - 17----------------------------------------------------------------------------Net earnings (loss) 2 5 (9) - 102Non- controlling interests - - - - 2Preference share dividends - - 13 - 13----------------------------------------------------------------------------Net earnings (loss) attributable to common equity shareholders 2 5 (22) - 87--------------------------------------------------------------------------------------------------------------------------------------------------------Goodwill - - - - 1,568Identifiable assets 737 655 511 (446) 13,382----------------------------------------------------------------------------Total assets 737 655 511 (446) 14,950--------------------------------------------------------------------------------------------------------------------------------------------------------Gross capital expenditures (1) 52 11 - - 336--------------------------------------------------------------------------------------------------------------------------------------------------------Quarter EndedDecember 31, 2011($ millions)----------------------------------------------------------------------------Revenue 9 58 6 (8) 1,034Energy supply costs - - - (1) 490Operating expenses 2 39 2 (1) 233Depreciation and amortization 1 5 1 - 107----------------------------------------------------------------------------Operating income 6 14 3 (6) 204Other income, net - - 1 - 6Finance charges - 6 13 (6) 88Income tax expense (recovery) 1 3 (2) - 26----------------------------------------------------------------------------Net earnings (loss) 5 5 (7) - 96Non- controlling interests - - - - 2Preference share dividends - - 12 - 12----------------------------------------------------------------------------Net earnings (loss) attributable to common equity shareholders 5 5 (19) - 82--------------------------------------------------------------------------------------------------------------------------------------------------------Goodwill - - - - 1,565Identifiable assets 546 610 469 (391) 12,649----------------------------------------------------------------------------Total assets 546 610 469 (391) 14,214--------------------------------------------------------------------------------------------------------------------------------------------------------Gross capital expenditures (1) 43 10 - - 367--------------------------------------------------------------------------------------------------------------------------------------------------------(1) Relates to cash payments to acquire or construct utility capital assets, income-producing properties and intangible assets, as reflected on the consolidated statements of cash flows REGULATED -------------------------------------------------------------- Gas Utilities Electric Utilities -------------------------------------------------------------- FortisBCYear Ended Energy New-December 31, Companies found- Total 2012 - Fortis FortisBC land Other Electric Electric($ millions) Canadian Alberta Electric Power Canadian Canadian Caribbean----------------------------------------------------------------------------Revenue 1,426 448 306 581 353 1,688 273Energy supply costs 669 - 76 380 227 683 170Operating expenses 287 158 85 74 48 365 34Depreciation and amortization 160 133 48 44 26 251 32----------------------------------------------------------------------------Operating income 310 157 97 83 52 389 37Other income (expenses), net 2 4 1 2 - 7 2Finance charges 142 65 39 36 21 161 13Income tax expense (recovery) 31 - 9 11 7 27 -----------------------------------------------------------------------------Net earnings (loss) 139 96 50 38 24 208 26Non- controlling interests 1 - - 1 - 1 7Preference share dividends - - - - - - -----------------------------------------------------------------------------Net earnings (loss) attributable to common equity shareholders 138 96 50 37 24 207 19--------------------------------------------------------------------------------------------------------------------------------------------------------Goodwill 913 227 221 - 67 515 140Identifiable assets 4,595 2,776 1,705 1,389 720 6,590 740----------------------------------------------------------------------------Total assets 5,508 3,003 1,926 1,389 787 7,105 880--------------------------------------------------------------------------------------------------------------------------------------------------------Gross capital expenditures (1) 206 442 69 86 48 645 48--------------------------------------------------------------------------------------------------------------------------------------------------------Year EndedDecember 31, 2011($ millions)----------------------------------------------------------------------------Revenue 1,566 408 296 573 339 1,616 305Energy supply costs 854 - 72 369 218 659 192Operating expenses 293 144 83 75 48 350 40Depreciation and amortization 113 134 45 42 24 245 33----------------------------------------------------------------------------Operating income 306 130 96 87 49 362 40Other income, net 8 5 1 - - 6 3Finance charges 137 60 39 36 20 155 14Income tax expense (recovery) 40 1 10 18 9 38 1----------------------------------------------------------------------------Net earnings (loss) 137 74 48 33 20 175 28Non- controlling interests - - - 1 - 1 8Preference share dividends - - - - - - -----------------------------------------------------------------------------Net earnings (loss) attributable to common equity shareholders 137 74 48 32 20 174 20--------------------------------------------------------------------------------------------------------------------------------------------------------Goodwill 913 227 221 - 63 511 141Identifiable assets 4,579 2,483 1,665 1,299 670 6,117 719----------------------------------------------------------------------------Total assets 5,492 2,710 1,886 1,299 733 6,628 860--------------------------------------------------------------------------------------------------------------------------------------------------------Gross capital expenditures (1) 250 416 102 81 47 646 71-------------------------------------------------------------------------------------------------------------------------------------------------------- NON-REGULATED ------------------------------------Year EndedDecember 31, Inter- 2012 Fortis Fortis Corporate segment($ millions) Generation Properties and Other eliminations Consolidated----------------------------------------------------------------------------Revenue 31 242 24 (30) 3,654Energy supply costs 1 - - (1) 1,522Operating expenses 9 166 14 (7) 868Depreciation and amortization 4 21 2 - 470----------------------------------------------------------------------------Operating income 17 55 8 (22) 794Other income (expenses), net 3 - (9) (1) 4Finance charges 2 24 47 (23) 366Income tax expense (recovery) 1 9 (7) - 61----------------------------------------------------------------------------Net earnings (loss) 17 22 (41) - 371Non- controlling interests - - - - 9Preference share dividends - - 47 - 47----------------------------------------------------------------------------Net earnings (loss) attributable to common equity shareholders 17 22 (88) - 315--------------------------------------------------------------------------------------------------------------------------------------------------------Goodwill - - - - 1,568Identifiable assets 737 655 511 (446) 13,382----------------------------------------------------------------------------Total assets 737 655 511 (446) 14,950--------------------------------------------------------------------------------------------------------------------------------------------------------Gross capital expenditures (1) 196 35 - - 1,130--------------------------------------------------------------------------------------------------------------------------------------------------------Year EndedDecember 31, 2011($ millions)----------------------------------------------------------------------------Revenue 34 231 23 (37) 3,738Energy supply costs 1 - - (9) 1,697Operating expenses 8 156 9 (6) 850Depreciation and amortization 4 19 2 - 416----------------------------------------------------------------------------Operating income 21 56 12 (22) 775Other income, net 1 - 21 (1) 38Finance charges 2 24 54 (23) 363Income tax expense (recovery) 2 9 (6) - 84----------------------------------------------------------------------------Net earnings (loss) 18 23 (15) - 366Non- controlling interests - - - - 9Preference share dividends - - 46 - 46----------------------------------------------------------------------------Net earnings (loss) attributable to common equity shareholders 18 23 (61) - 311--------------------------------------------------------------------------------------------------------------------------------------------------------Goodwill - - - - 1,565Identifiable assets 546 610 469 (391) 12,649----------------------------------------------------------------------------Total assets 546 610 469 (391) 14,214--------------------------------------------------------------------------------------------------------------------------------------------------------Gross capital expenditures (1) 174 30 - - 1,171--------------------------------------------------------------------------------------------------------------------------------------------------------(1) Relates to cash payments to acquire or construct utility capital assets, income-producing properties and intangible assets, as reflected on the consolidated statements of cash flows
CORPORATE INFORMATION
Fortis Inc. is the largest investor-owned distribution utility in Canada, with total assets of approximately $15 billion and fiscal 2012 revenue totalling $3.7 billion. The Corporation serves more than 2 million gas and electricity customers. Its regulated holdings include electric distribution utilities in five Canadian provinces and two Caribbean countries and a natural gas utility in British Columbia. Fortis owns and operates non-regulated generation assets across Canada and in Belize and Upstate New York. It also owns hotels and commercial office and retail space in Canada.
The Common Shares, First Preference Shares, Series C; First Preference Shares, Series E; First Preference Shares, Series F; First Preference Shares, Series G; First Preference Shares, Series H; First Preference Shares, Series J; and Subscription Receipts of Fortis are traded on the Toronto Stock Exchange under the symbols FTS, FTS.PR.C, FTS.PR.E, FTS.PR.F, FTS.PR.G, FTS.PR.H, FTS.PR.J and FTS.R, respectively.
Share Transfer Agent and Registrar:Computershare Trust Company of Canada9th Floor, 100 University AvenueToronto, ON M5J 2Y1T: 514.982.7555 or 1.866.586.7638F: 416.263.9394 or 1.888.453.0330W: www.investorcentre.com/fortisinc
Additional information, including the Fortis 2011 Annual Information Form, Management Information Circular and Annual Report, are available on SEDAR at www.sedar.com and on the Corporation's web site at www.fortisinc.com.
Contacts:
Barry V. Perry
Vice President Finance and Chief Financial Officer
Fortis Inc.
709.737.2822
