We are very pleased with our reduction in total debt following the repayment of the 2009-1 Notes in April of 2012 and our recent refinancing of the 2010 Notes in November of 2012 and the $270,000 6.75% 2009-2 Senior Unsecured Notes in February of 2013. With these financing activities, we have successfully extended and laddered our maturities and provided some flexibility to allow for further potential reductions in our future leverage and secured a significant reduction in future interest expense. As outlined in the "Summary of Contractual Debt and Lease Obligations", we estimate that the annual interest savings is approximately $12,800.
EnerCare estimates that it will pay approximately $19,000 to $22,000 in current taxes for the fiscal year ended December 31, 2013. This estimate is based on taxable income comparable to current levels, shielded by unrestricted tax losses and a corporate tax rate of approximately 26.25%. EnerCare's current taxes for 2012 were $14,548. Taxable income is principally impacted by changes in revenue, operating expenses, potential acquisitions or divestitures, appropriate tax planning and capital expenditures through the capital cost allowance deduction.
In January 2013, EnerCare increased its weighted average rental rate by 3%.
EnerCare intends to increase its monthly dividend to $0.057 per Share, an increase of 1.8%, effective in respect of the dividend payable to shareholders of record on the applicable date in March 2013, which dividend will be paid in April 2013. EnerCare increased its dividend due to strong performance in 2012, its long-term stable financial structure, reductions in Attrition and the confidence the board has in the company moving forward.
As previously announced, EnerCare has set its annual and general and special meeting for June 3, 2013. Jim Pantelidis, Chairman of the board, and management will provide an update to shareholders on EnerCare's achievements in 2012 and strategy.
Financial Statements and Management's Discussion and Analysis
EnerCare's financial statements and management's discussion and analysis for the fourth quarter and year-end of 2012 are available on SEDAR at www.sedar.com or on EnerCare's investor relations website at http://investors.enercare.ca.
Conference Call and Webcast
Management will host a conference call and live audio webcast to discuss EnerCare's financial results for the fourth quarter and year end 2012 on Thursday, February 28, 2013 at 10:00 a.m. (ET). John Macdonald, President and CEO, and Evelyn Sutherland, CFO, will be on the call.
Call can be accessed as follows: Toll free: 1.877.974.0445 Local: 1.416.644.3415 Via webcast: http://investors.enercare.ca/
The audio webcast will be archived at http://investors.enercare.ca. A taped rebroadcast will be available until midnight on March 7, 2013. The rebroadcast can be accessed by dialing 1.877.289.8525 or 1.416.640.1917 and entering the pass code 4589618#.
EnerCare owns a portfolio of approximately 1.2 million installed water heaters and other assets, rented primarily to residential customers in Ontario. EnerCare also owns EnerCare Connections Inc., a leading sub-metering company, with metering contracts for condominium and apartment suites in Ontario, Alberta and elsewhere in Canada.
Additional information about EnerCare is available on SEDAR (www.sedar.com) or on EnerCare's websites at http://investors.enercare.ca and http://www.enercare.ca.
Certain statements in this news release are forward-looking statements, which reflect management's expectation regarding EnerCare's and EnerCare Solutions Inc. growth, results of operations, performance, business prospects and opportunities. Such forward-looking information reflects management's current beliefs and is based on information available to them and/or assumptions management believes are reasonable. Many factors could cause results to differ materially from the results discussed in the forward-looking information. These factors include risks associated with the failure to realize the anticipated benefits of the conversion. Although the forward-looking information is based on what management believes to be reasonable assumptions, EnerCare and EnerCare Solutions Inc. cannot assure investors that actual results will be consistent with this forward-looking information. Except as required by applicable securities laws, neither EnerCare nor EnerCare Solutions Inc. intend and do not assume any obligation to update or revise the forward-looking information, whether as a result of new information, future events or otherwise.
(1) Unless otherwise noted, amounts are reported in thousands, except customers, units, shares and per share amounts and percentages. Dollar amounts are expressed in Canadian currency.(2) EBITDA and Adjusted EBITDA are non-IFRS financial measures. Refer to the Non-IFRS Financial and Performance Measures section in the MD&A.(3) Payout Ratio is a non-IFRS financial measure. Refer to the Non-IFRS Financial and Performance Measures section in the MD&A.