National Rural Utilities Cooperative Finance Corporation Releases Preliminary Data From 2009 Key Ratio Trend Analysis
April 19 2010 - 1:54PM
Marketwired
National Rural Utilities Cooperative Finance Corporation (CFC)
(NYSE: NRU) (NYSE: NRN) (NYSE: NRC) announced today preliminary
findings from its annual Key Ratio Trend Analysis (KRTA), based on
the 2009 operational results of 630 electric distribution
cooperatives compared to a sample of the same cooperatives last
year. The final KRTA report, which is expected to include results
from approximately 820 distribution cooperatives, will be available
in August.
"Although 2009 was a tough year for the U.S. economy, the
preliminary KRTA numbers show that co-ops once again performed very
well. The median financial ratios all showed an improvement over
the prior year," said Claudia Phillips, CFC vice president of
Programs and Planning Analysis and KRTA manager. "While these are
not final KRTA results, this preliminary report of 630 systems is a
significant sample."
The KRTA report is based on data taken from Form 7 reports --
financial and statistical reports that distribution cooperatives
provide annually -- for the period ending December 31, 2009.
Phillips pointed to three ratios that show electric cooperatives
are maintaining their financial strength during the economic
downturn: Equity as a Percentage of Assets, Times Interest Earned
Ratio (TIER) and Modified Debt Service Coverage (MDSC). For the
median distribution cooperative among the 630 reporting, these
three financial ratios were:
- Equity as a Percentage of Assets: increased to 41.0 percent in
2009 from 40.5 in 2008.
- TIER rose to 2.29 in 2009 from 2.25 in 2008.
- MDSC increased slightly in 2009 to 1.82 from 1.81 the previous
year.
The preliminary KRTA data show there were increases in operating
costs in 2009, but that revenues and margins also increased, which
indicates that cooperatives are successfully passing through cost
increases to consumers:
- Power Cost per kwh Sold (mills) increased to 64.34 in 2009 from
63.05 in 2008, a 2 percent increase.
- Total Operating Expense per kwh Sold (mills) -- increased to
20.16 mills from 19.43 mills in 2008, a 3.75 percent increase.
- Total Operating Revenue per kwh Sold (mills), increased 4
percent in 2009, compared to a 6.5 percent increase in 2008. The
median number for 2009 was 100.35 mills compared to 96.58 mills in
2008.
- Total Margins per kwh Sold (mills) were up a strong 11 percent
in the preliminary numbers to 6.58 mills in 2009 from 5.92 mills
the year before.
Considering current economic conditions it was not surprising
that the median electric cooperative in the preliminary KRTA
numbers reported two declines in 2009:
- The median number of consumers served by electric co-ops
increased by only 0.46 percent, down from 0.99 percent in 2008 --
and compared to a historic median consumer growth of about 1.5
percent.
- Total kilowatt hours (kwh) sold decreased by 1.21 percent
compared to a 1.20 percent increase in 2008. This is far less than
the 4 percent decline in retail sales of electricity to all types
of customers in the entire electric utility industry sector in 2009
(as cited by the U.S. Energy Information Administration).
The preliminary KRTA numbers for two ratios related to consumer
payments were stable. This shows that electric cooperative
consumers are paying their bills on time, even during difficult
economic conditions:
- Accounts Receivable Over 60 Days as a Percentage of Operating
Revenue was just 0.17 percent -- unchanged from 2008.
- Amount Written Off as a Percentage of Operating Revenue
increased only slightly to 0.20 percent in 2009 from 0.18 percent
in 2008.
Loans to distribution cooperatives comprise 69 percent of CFC's
loan portfolio.
About CFC
National Rural Utilities Cooperative Finance Corporation (CFC)
is a cooperative that serves the nation's rural utility systems.
With more than $20 billion in assets, CFC provides its
member-owners with an assured source of market-priced capital and
financial products and services. CFC can be found online at
nrucfc.org.
CFC's 2008 and 2009 Preliminary KRTA Data
All numbers are medians
Equity as % of Assets 2008: 40.5% 2009:
41.0%
TIER 2008: 2.25 2009: 2.29
MDSC 2008: 1.81 2009: 1.82
Power Cost per Total kwh Sold (mills)
2008: 63.05 2009: 64.34
Total Operating Expense per kwh Sold
(mills) 2008: 19.43 2009: 20.16
Total Operating Revenue per kwh Sold
(mills) 2008: 96.58 2009: 100.35
Total Margins per kwh Sold (mills) 2008:
5.92 2009: 6.58
Annual Growth in Number of Consumers (%)
2008: 0.99% 2009: 0.46%
Annual Growth in kwh Sold (%) 2008: 1.20%
2009: -1.21%
Accounts Receivable Over 60 Days as % of
Operating Revenue 2008: 0.17% 2009: 0.17%
Amount Written Off as % of Operating
Revenue 2008: 0.18% 2009: 0.20%
Contact: Mike O'Brien V.P., Corporate Communications
703-709-6709 Email Contact Andrew Don V.P., Capital Market
Relations 703-709-6869 Email Contact
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