6-K 1 elppr1q09_6k.htm EARNINGS RELEASE 1Q09 Provided by MZ Technologies
 
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 

 
FORM 6-K
 
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of the
Securities Exchange Act of 1934
 
For the month of May, 2009

Commission File Number 1-14668
 

 
COMPANHIA PARANAENSE DE ENERGIA
(Exact name of registrant as specified in its charter)
 

Energy Company of Paraná
(Translation of Registrant's name into English)
 

Rua Coronel Dulcídio, 800
80420-170 Curitiba, Paraná
Federative Republic of Brazil
(5541) 3222-2027
(Address of principal executive offices)
 

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F. 

Form 20-F ___X___ Form 40-F _______

 Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.  

Yes _______ No ___X____


1Q09 Results

Curitiba, Brazil, May 13, 2009 - Companhia Paranaense de Energia - COPEL (NYSE: ELP / LATIBEX: XCOP / BOVESPA: CPLE3, CPLE5, CPLE6), a company that generates, transmits and distributes power to the State of Paraná, announces its results for the first quarter of 2009. All the figures in this report are in Brazilian Reais and were prepared in accordance with Brazilian GAAP.

This report presents cumulative data through March 2009 compared with the same period in the previous year.

COPEL's consolidated financial statements present, in addition to the figures of the wholly-owned subsidiaries (COPEL Geração e Transmissão, COPEL Distribuição and COPEL Telecomunicações), those of Compagas, Elejor, UEG Araucária, Centrais Eólicas do Paraná and Dominó Holdings, controlled jointly with other shareholders.

• Net Operating Revenue: R$ 1,357 million - 3.2% up

• Operating income: R$ 413 million - 6.2% increase in relation to 1Q08.

• Net Income: R$ 272 million (R$ 0.99 per share) - 6.5% increase in relation to 1Q08.

• EBITDA (earnings before interest, taxes, depreciation and amortization): R$ 468 million.

• Return on net equity: 3.4%

• Total power consumption billed by COPEL to captive customers in 1Q09 rose by 2.6% over 1Q08. COPEL's total market expanded by 1.8% .

• The Company's shares and main indexes presented the following variations from January through March 2009:

CPLE3 (common/ Bovespa) = (6.4)%    IBOVESPA = 9.0% 
CPLE6 (preferred B/ Bovespa) = 0.4%    DOW JONES (NYSE) = (13.3)% 
ELP (ADR/NYSE) = (1.0)%    LATIBEX = 16.6% 
XCOP (preferred B/ Latibex) = 3.7%     

1


Companhia Paranaense de Energia – Copel 
1Q09 Earnings Release 
INDEX 
1. Main Events
3
2. Human Resources
5

3. Energy Sales  

6
4. Financial Performance
7
5. Balance Sheet and Investment Program
11
6. Account for Compensation of Portion A - CVA
13
7. Additional Information
14
   7.1 Main Operational and Financial Indicators
14
   7.2 Tariffs
15
   7.3 Energy Flow
16
   7.4 Shareholding Structure
17
8. Financial Statements - Consolidated
18
   8.1 Assets
18
   8.2 Liabilities
19
   8.3 Income Statement 20
   8.4 Cash Flow
21
9. Financial Statements - Subsidiaries
22
   9.1 Assets
22
   9.2 Liabilities
23

   9.3 Income Statement

24

2


1. Main Events 

Net Income:

     In the first quarter of 2009, COPEL recorded net income of R$ 272.1 million, which corresponded to R$ 0.99 per share.

Dividends and Interest on Capital:

     At the 54th General Shareholders' Meeting, held on April 23, 2009, the following distribution of dividends and interest on capital for year 2008 was approved:

     - Dividends: R$ 33.8 million

     - Interest on Capital: R$ 228.0 million

     The amounts to be distributed as dividends and interest on capital for each class of share are as follows:

     - Common Shares (ON) = R$ 0.91 per share

     - Class A Preferred Shares (PNA) = R$ 1.63 per share

     - Class B Preferred Shares (PNB) = R$ 1.00 per share

Power Sales by Customer Category:

     Power sales to COPEL Distribuição's captive market grew 2.6% in the first quarter of 2009. The following variations were recorded in the consumption of the Company's main customer categories: residential customers, 5.1%; commercial customers, 6.6%; industrial customers, decrease of 3.3%; and rural customers, 5.0% .

     The following charts feature the monthly power consumption billed by COPEL from 2007 to 2009:

3


UEG Araucária - UEGA:

     UEG Araucária (UEGA), a company controlled by COPEL, signed with Petrobras a renewal of the lease of the Araucária Thermal Power Plant for three years, starting on January 1, 2009. UEGA will receive fixed monthly payments, plus additional variable payments whenever power from the facility is dispatched. Petrobras also signed a contract with COPEL Geração e Transmissão to secure operation and maintenance services for the facility, for the duration of the lease. This contract may be partially or fully terminated in the event of UEGA's successful participation in the power auctions to be conducted by ANEEL (the National Electric Energy Agency).

Extension of power plant concessions:

     ANEEL, under Ruling 455, dated February 3, 2009, unanimously approved a recommendation to the Ministry of Mines and Energy that the following COPEL concessions be extended at no charge:

Power Plant    Capacity (MW)  
Concession expires 
 
Segredo    1,260    2029 
Salto Caxias    1,240    2030 
Derivação do Rio Jordão    6.5    2029 
Cavernoso    1.3    2019 

     The first three power plants were granted 20-year extensions. The Cavernoso facility was granted an 8.5 -year extension. COPEL, however, has already applied for a 20-year extension as well.

Purchase of power from biogas:

     On February 3, 2009, COPEL signed the first contracts ever in the Brazilian power industry for the purchase of power generated through the biodigestion of organic waste. Testing began in 2007 with the goal of reducing environmental impacts and studying the technical and economic feasibility of the installation of biodigestors in rural properties. The Company signed a total of six contracts, amounting to installed capacity of up to 524 kW (which is enough to supply one hundred average-consumption households), with four producers: Sanepar, Cooperativa Lar, Granja Colombari, and Star Milk. These contracts will be in effect until the end of 2012.

Workforce renewal program:

     On April 13, 2009, the Company's management decided that the employees who receive retirement benefits from the INSS (National Social Security Institute) will be withdrawn from the Company in a planned manner, as per the withdrawal and replacement schedule to be concluded within 30 days, and that the employees who hereafter voluntarily receive retirement benefits from the INSS and do not join the PIA (Retirement Encouragement Program) will be dismissed from the Company without cause.

     This situation applies to approximately 700 employees and it has not been possible to estimate the costs to be incurred due to the several variables involved in the calculation, which will be concluded during the second quarter of 2009.

4


COPEL wins the J concession at the transmission auction:

     COPEL Geração e Transmissão won the J concession at the auction of transmission line concessions held by ANEEL on May 8, 2009. This concession comprises the Foz do Iguaçu Cascavel West transmission line, rated 525 kV and 115-km long, within the State of Paraná. COPEL's bid was R$ 7.3 million.

Power Line Communications (PLC):

     COPEL has begun testing the performance of the PLC (Power Line Communications) technology, which allows any power outlet in a property (be it a house, a school, a commercial property, or a factory) to be turned into a connection point for broadband internet, telephone, and cable tv.

     Ten users, out of a total 300, have been initially connected for the test run, conducted in Santo Antônio da Platina, in the Pioneering North region of Paraná, 370 km from Curitiba. They will be able to surf the internet at 10 Mbps (megabits per second), a bandwidth above the existing alternatives on the market.

     The investment for the acquisition of the required equipment for the test run was R$ 1 million.

COPEL signs the declaration of the Water Forum of the Americas:

     The Water Forum of the Americas welcomed delegations of government officials, experts, and civil society representatives from 37 countries from Latin America, North America, and the Caribbean. COPEL, which was one of the hosts of the event, also signed the declaration that contains the position to be defended by the countries in the Americas during the World Water Forum, to be held in 2009 in Turkey.

COPEL: Second most respected corporate brand in Paraná:

     The Amanhã Magazine and Troiano Brand Consultants surveyed two thousand people in Southern Brazil on five categories. COPEL ranked the second most respected corporate brand in Paraná and ranked first in the "History and Evolution" category, which ranks the companies with the most admired corporate histories.

2. Human Resources 

     COPEL's workforce at the first quarter of 2009 amounted to 8,376 employees assigned to the Company's wholly-owned subsidiaries as follows:

     COPEL Geração e Transmissão = 1,564
     COPEL Distribuição = 6,464
     COPEL Telecomunicações = 348

     At the end of the first quarter of 2009, COPEL Distribuição recorded a customer-to-employee ratio of 549.

     Compagas, Elejor and UEG Araucária, companies in which COPEL holds a majority interest, had 103, 6 and 3 employees, respectively.

5


3. Energy Sales 

     Total energy sales billed by COPEL, including the captive market, supply to free customers by COPEL Geração e Transmissão and energy supplies by COPEL Distribuição to other distributors in the State of Paraná, was 5,362.8 GWh, up by 1.8% . The captive market consumed 4,971.5 GWh, up by 2.6% . The market's behavior was mainly influenced by the high temperatures recorded in the concession area.

     The table below breaks down COPEL's energy sales by customer segment:

                    GWh 
Segment 
  1Q09    4Q08    1Q08    Var.%    Var.% 
    (1)   (2)   (3)   (1/2)   (1/3)
Residential    1,414    1,370    1,346    3.2    5.1 
Industrial    1,551    1,693    1,603    (8.4)   (3.3)
Commercial    1,068    1,030    1,001    3.6    6.6 
Rural    450    404    429    11.5    5.0 
Other    489    490    465    (0.3)   5.1 
Total Captive Customers    4,971    4,987    4,844    (0.3)   2.6 
Free Customers - COPEL Geração e Transmissão    270    288    304    (6.4)   (11.4)
Total Supply to Final Customers    5,241    5,275    5,148    (0.6)   1.8 
Wholesale - State of Paraná    122    122    121    (0.6)   0.7 
TOTAL    5,363    5,397    5,269    (0.6)   1.8 

3.1 Captive Market:

     The residential segment consumed 1,414.1 GWh, a 5.1% growth, representing '28.4% of COPEL's captive market. In March 2009, 2,800,788 residential customers were billed.

     The industrial segment (except free customers) consumed 1,550.8 GWh, declining by 3.3%, representing 31.2% of the captive market. In March 2009, 63,850 industrial customers were billed.

     The commercial segment consumed 1,067.6 GWh, growth of 6.6%, representing 21.5% of the captive market. In March 2009, 295,530 commercial customers were billed.

     The rural segment consumed 450.5 GWh, growth of 5.0%, representing 9.1% of the captive market. In March 2009, 341,699 rural customers were billed.

     The other consumption segments (government, public lighting, utilities and own consumption) registered consumption of 488.6 GWh, growth of 5.1% in the period, representing 9.8% of the captive market. In March 2009, 47,375 customers were billed.

3.2 Free Market:

     Energy consumption by free customers served by Copel Geração e Transmissão declined by 11.4% due to the termination of certain contracts.

6


3.3 Copel Distribuição's Grid Market - TUSD:

     Copel Distribuição's grid market, comprising the captive market, supply to other distributors in Paraná and all free customers in the Company's concession area, dropped 0.4% .

                   
GWh 
    1Q09    4Q08    1Q08    Var.%    Var. % 
    (1)   (2)   (3)   (1/2)   (1/3)
Grid Market (TUSD)   5,814    5,931    5,839    (2.0)   (0.4)

4. Financial Performance 

     The financial statements for March 31, 2009 and December 31, 2008 reflect, in all the material aspects, the changes proposed by Law 11.638/07 and Provisional Measure 449/08. Therefore, financial statements for the period ended March 31, 2008 were reclassified to include the changes in practices with retrospective effect.

4.1 Operating Revenues:

     In the first quarter of 2009, net operating revenue was R$ 1,356.6 million, 3.2% higher than the R$ 1,314.6 million in the same period of 2008. The main factors behind this increase were:

     i. the 4.7% increase in the account "electricity sales to final customers" (which reflects only the sale of energy, excluding COPEL's distribution grid tariff - TUSD), mainly due to the market growth;

     ii. the 5.7% increase in the account "electricity sales to distributors", due to: i) the billing, from January 2009, of the new energy sale agreements in the 4th energy auction held (average of 245 MW from 2009 through 2016) and (ii) the higher revenue from short-term electricity billing (CCEE), which was partially offset by lower energy sales on bilateral agreements (termination of agreements with Celesc) and reduced revenue from distributors in Paraná.

     iii. the 2.3% increase in "use of transmission grid", which is composed of the distribution grid tariff (TUSD), the basic transmission network and the network connection revenue, chiefly due to the increase in transmission grid charges;

     iv. the 34.2% upturn in "telecom revenues" thanks to new clients and the higher volume of services provided to existing clients;

     v. the 4.7% decrease in "piped gas distribution" resulting from the tariff adjustment in the period; and

     vi. the 28.9% increase in "other operating revenues", mainly due to the higher revenue from rent and from UEG Araucária's provision of operation and maintenance (O&M) services.

7


                   
R$'000 
Gross Income Statement    1Q09    4Q08    1Q08    Var.%    Var.% 
    (1)   (2)   (3)   (1/2)   (1/3)
Operating revenues    2,077,541    2,159,757    1,989,579    (3.8)   4.4 
Electricity sales to final customers    752,679    754,220    718,669    (0.2)   4.7 
 Residential    253,861    235,805    232,199    7.7    9.3 
 Industrial    241,112    267,607    249,297    (9.9)   (3.3)
 Commercial    166,953    162,482    153,143    2.8    9.0 
 Rural    35,438    31,528    32,743    12.4    8.2 
 Other segments    55,315    56,798    51,287    (2.6)   7.9 
Electricity sales to distributors    334,583    384,119    316,616    (12.9)   5.7 
Use of transmission grid    869,601    885,909    850,237    (1.8)   2.3 
 Residential    277,751    270,585    263,605    2.6    5.4 
 Industrial    266,642    295,898    282,762    (9.9)   (5.7)
 Commercial    185,251    179,764    171,560    3.1    8.0 
 Rural    39,646    35,229    37,161    12.5    6.7 
 Other segments    60,801    62,411    58,204    (2.6)   4.5 
 Basic Network and connection grid    39,510    42,022    36,945    (6.0)   6.9 
Telecom revenues    23,615    22,981    17,594    2.8    34.2 
Piped gas distribution    62,293    76,958    59,491    (19.1)   4.7 
Other operating revenues    34,770    35,570    26,972    (2.2)   28.9 

4.2 Deductions from Operating Revenues:

     The following table shows the legal deductions from COPEL's operating revenues:

                    R$'000 
Deductions from Operating    1Q09    4Q08    1Q08    Var. %    Var. % 
Revenues    (1)   (2)   (3)   (1 / 2)   (1 / 3)
ICMS    403,749    409,049    386,960    (1.3)   4.3 
Pasep and Cofins    195,720    202,949    189,130    (3.6)   3.5 
RGR    18,834    18,134    14,025    3.9    34.3 
CDE    47,864    45,117    47,344    6.1    1.1 
CCC    40,800    67,237    24,115    (39.3)   69.2 
P&D and PEE    13,480    13,949    12,965    (3.4)   4.0 
Other    465    504    482    (7.7)   (3.5)
TOTAL    720,912    756,939    675,021    (4.8)   6.8 

8


4.3 Operating Costs and Expenses:

     In the first quarter of 2009, total operating costs and expenses reached R$ 987.1 million, 1.6% higher than the R$ 971.1 million in 1Q08. The highlights were:

(i) Decrease of 3.2% in 'electricity purchased for resale', chiefly due to the lower cost of acquisition of energy from the CCEE. The main items booked were: R$ 121.8 million from Itaipu, R$ 27.8 million from Itiquira, R$ 57.8 million from short-term electricity billing (CCEE) and R$ 265.8 million in energy auctions. In addition, the following amounts were booked: credit of R$ 16.2 million as passive CVA and credit of R$ 49.4 million relating to Pasep/Cofins contributions on energy purchased.

(ii) the 16.0% increase in 'charges for the use of transmission grid', chiefly due to the effects of the CVA, which reduced the account balance by R$ 24.3 million in 1Q08 and by only R$ 2.8 million this quarter;

(iii) in 1Q09, 'payroll' expenses totaled R$ 166.7 million, 26.6% higher than in the previous year, chiefly due to the pay raise of 7.5% implemented as of October 2008 and the provision for employee profit-sharing, which is now being made monthly and stood at R$ 16.5 million for the period between January and March 2009;

(iv) the 'pension plan' line reflects the pass-through of costs with the Pró-Saúde program (assistance) and the pension plan, paid to Fundação COPEL, pursuant to the actuarial criteria established by CVM resolution 371/2000. For 2009, we estimated a revenue of R$ 122.7 million for the pension plan and an expense of R$ 26.8 million for the assistance plan.

(v) the 19.1% growth in the 'material' line, chiefly due to the increase in the acquisition of office supplies, fuel, auto parts, and IT material.

(vi) the amounts booked under the 'raw materials and supplies for the generation of electricity' line refer to the purchase of mineral coal for the Figueira thermoelectric power plant.

(vii) the 'natural gas purchased for resale' line increased by 18.5%, reflecting the higher cost of acquisition of natural gas by Compagas to serve its third-party gas distributor market, as well as the depreciation of the Brazilian real against the U.S. dollar;

(viii) the 7.3% increase in 'third-party services', mainly due to higher expenses with electric power system maintenance, as well as technical, scientific and administrative consulting services;

(ix) the 43.1% decline in 'provisions and reversals', chiefly due to the lower allowance for doubtful accounts and for contingencies, mainly relating to labor, in the quarter; and

9


(x) consequent to the extinction of the non-operating income group by Provisional Measure 449/08, the amounts earlier booked under this item are now shown jointly with "other operating expenses acconunt".

               
R$ '000 
Operating Costs and Expenses   
1Q09 
4Q08 
1Q08 
Var.%
 
Var.% 
   
(1)
(2)
(3)
(1/2)
(1/3)
 
   Electricity purchase for resale    429,340    428,980    443,499    0.1    (3.2)
   Charges for the use of transmission grid    122,701    149,050    105,767    (17.7)   16.0 
   Payroll    166,727    204,466    131,701    (18.5)   26.6 
   Pension plan    (5,519)   (29,406)   20,405    (81.2)  
   Material    13,871    15,630    11,646    (11.3)   19.1 
   Raw material and supplies for gen. of electricity    5,693    6,675    5,013    (14.7)   13.6 
   Natural gas purchased for resale    37,666    54,521    31,791    (30.9)   18.5 
   Third-party services    66,316    66,718    61,811    (0.6)   7.3 
   Depreciation and amortization    98,633    101,089    104,016    (2.4)   (5.2)
   Provisions and reversals    9,551    33,708    16,787    (71.7)   (43.1)
   Other operating expenses    42,117    91,549    39,486    (54.0)   6.7 
TOTAL    987,096    1,122,980    971,922    (12.1)   1.6 

4.4 EBITDA:

     Earnings before interest, taxes, depreciation and amortization (EBITDA) totaled R$ 468.2 million, 4.8% higher than the R$ 446.7 million in the same period last year.

4.5 Financial Result:

     Financial revenues decreased 17.7% in 1Q09 in relation to 1Q08, totaling R$ 87.8 million, mainly due to the monetary variations on the CRC, which is adjusted by the IGP-DI rate (which recorded a deflation in the period).

     Financial expenses totaled R$ 55.2 million in 1Q09, 23.8% lower year-on-year, mainly due to the lower exchange variations on foreign loans on account of the Dollar's depreciation against the Real in the last quarter.

4.6 Equity Investment:

     Equity investment reflects the equity income of the affiliates of COPEL.

4.7 Net Income:

     COPEL's net income in 1Q09 was R$ 272.1 million (or R$ 0.99 per share), 6.5% higher than in 2008.

10


5. Balance Sheet and Investment Program 

5.1 Assets:

     On March 31, 2009, COPEL's assets totaled R$ 13,188.4 million, 0.5% lower than in 1Q08.

5.2 Investment Program:

     COPEL's investment program executed in first quarter of 2009 and the program approved by the Board of Directors for 2009 is in the following table:

        R$ million 
    Carried    Scheduled 
    1Q09    2009 
 
Generation and Transmission    7.4    107.5 
Consórcio Energético Cruzeiro do Sul (Mauá)   30.7    180.3 
Distribution    139.9    774.7 
Telecommunications    5.2    51.3 
 
TOTAL    183.2    1,113.8 

     Compagas and UEG Araucária (whose balance sheets are consolidated with COPEL's) invested R$ 7.7 million and R$ 0.2 million, respectively, in 1Q09.

5.3 Liabilities and Shareholders' Equity

     COPEL's consolidated debt at the end of March 2009 was R$ 1,657.7 million, representing a debt/equity ratio of 19.9% . Excluding Elejor's and Compagas' debts, debt/ equity ratio would be 16.6% .

     The shareholders' equity of Copel on March 31, 2009, was R$ 8,325.2 million, 11.1% higher than in March 2008, and equivalent to R$ 30.42 per share (book value).

11


5.4 Debt Profile:

     The breakdown of the balance of loans, financing and debentures is shown in the table below:

                R$'000 
        Short-term    Long-term    Total 
    IBD    23,913    22,715    46,628 
Foreign    National Treasury    10,151    84,563    94,714 
Currency    Eletrobrás      36    44 
    Banco do Brasil S/A    2,906      2,906 
    Total    36,978    107,314    144,292 
                 
    Eletrobrás - Copel    33,081    265,889    298,970 
    Eletrobrás - Elejor      26,598    26,598 
Domestic    BNDES - Compagas    6,517    11,463    17,980 
Currency    Debentures - Copel    5,770    600,000    605,770 
    Debentures - Elejor    33,053    194,617    227,670 
    Banco do Brasil S/A and other    3,839    332,628    336,467 
    Total    82,260    1,431,195    1,513,455 
GENERAL TOTAL 
  119,238    1,538,509    1,657,747 

     Following are the loan, financing and debentures maturities:

                        R$'000 
    Apr - Dec     2010     2011    2012    2013    2014 a 2024 
    2009                     
Loans and Financing 
  42,211    72,021    72,344    52,796    50,999    533,936 
 Domestic Currency    16,989    42,328    54,406    47,951    47,891    470,450 
 Foreign Currency    25,222    29,693    17,938    4,845    3,108    63,486 
Debentures    31,204    36,477    638,478    38,478    38,478    50,325 
   TOTAL    73,415    108,498    710,822    91,274    89,477    584,261 

     COPEL's consolidated net debt (loans, financing and debentures less cash in hand) significantly declined in the past few years, as shown in the following chart:

12


5.5 Ratings:

     The following table shows COPEL's current corporate and debentures issue ratings:

    Fitch 
Corporate    AA (bra)
Debentures - 3rd issue    AA+ (bra)
Debentures - 4th issue    AA (bra)
     

6. Account for Compensation of Portion A CVA 

     The account for compensation of Portion A (tracking account) allows distribution companies to offset, between their annual rate readjustments, variations in the cost of certain items listed in their concession agreements.

     The CVA variation updated by the SELIC from January to March 2009 is demonstrated in the following table:

    R$ '000 
    Balance    Deferral    Amortization    Monetary    Balance 
    12/31/2008            restatement    03/31/2009 
Assets                     
 Purchased Energy    48,549    44,688    (6,193)   1,983    89,027 
 Transport of Purchased Energy    1,552    1,020      59    2,631 
 Use of Transmission Grid Charges    40,732    10,708    (8,307)   1,270    44,403 
 Energy Development Account - CDE    577    5,819    (141)   135    6,390 
 Electric Power Services Fee - ESS    35,375    15,526    (4,913)   1,670    47,658 
 Fuel Consumption Account - CCC    34,990    7,079    (9,195)   957    33,831 
 Proinfa    2,817    14,688    (1,533)   181    16,153 
TOTAL    164,592    99,528    (30,282)   6,255    240,093 
Liabilities                     
 Energy Purchased for Resale - CVA    25,727      (13,607)   743    12,863 
 Transport of Purchased Energy    227      (130)   17    114 
 Proinfa    4,746    (4,711)     (35)  
TOTAL    30,700    (4,711)   (13,737)   725    12,977 

13


7. Additional Information 

7.1 Main Operational and Financial Indicators: 
March 31, 2009 
 
Generation     
 Copel Geração e Transmissão (GET) power plants    18 (17 hydro and 1 thermal)
 Power plants in which Copel holds interest    7 (5 hydro, 1 thermal and 1 wind power)
 Total installed capacity of Copel GET    4,550 MW 
 Installed capacity of COPEL's Corporate Partnerships (1)   610 MW 
 Automated and remote-controlled power plants of Copel GET    15 
 Automated and remote-controlled power plants of COPEL's corporate partnerships   
 Step-up substations of Copel GET    14 (automated and remote-controlled)
 
Transmission     
Transmission lines    1,792 km 
Number of substations    31 (100% automated)
Installed substation capacity    10,326 MVA 
 
Distribution (up to 138 kV)    
Distribution networks and lines    178,967 km 
Number of substations    341 
Number of automated substations    339 
Installed capacity in substations    8,975.6 MVA 
Number of localities served    1,119 
Number of municipalities served    393 
Number of customers    3,549,256 
DEC (outage duration per customer, in hours and hundredths of an hour)   3.16 
FEC (outage frequency per customer)   2.91 times 
 
Telecommunication     
Optical cable - main ring    5,463 km 
Self sustained optical cable    6,848 km 
Number of cities served    198 
Number of customers    570 
 
Administration     
Number of employees (wholly-owned subsidiaries)   8,376 
Customer per distribution employee    549 
 
Financial     
Book Value (per 1,000 shares)   R$ 30.42 
EBITDA    R$ 468.2 million 
Liquidity (Current Ratio)   2.10 
 
 
Note: 
(1) proportional to the capital stake. 

14


7.2 Tariffs

Average Energy Purchased Tariffs:

    R$/MWh 
Tariff    1Q09 
(1)
  4Q08 
(2)
  1Q08 
(3)
  Var. % 
(1 / 2)
  Var. % 
(1 / 3)
Itaipu*    116.41    110.39    80.27    5.5    45.0 
CIEN        84.54     
Auction - CCEAR 2005 - 2012    67.39    67.38    63.82      5.6 
Auction - CCEAR 2006 - 2013    78.92    78.91    74.75      5.6 
Auction - CCEAR 2007 - 2014    89.26    89.21    84.37    0.1    5.8 
Auction - CCEAR 2007 - 2014 (A-1)   112.56    112.57    104.74      7.5 
Auction - CCEAR 2008 - 2015    94.86    94.87    89.84      5.6 
Auction - CCEAR 2008 H30    118.74    118.47    112.42    0.2    5.6 
Auction - CCEAR 2008 T15**    146.60    146.60    138.86      5.6 
 
* Furnas transport charge not included 
** Auction average price updated by IPCA 

Average Retail Tariffs:

    R$/MWh 
Tariff    1Q09 
(1)
  4Q08 
(2)
  1Q08 
(3)
  Var. % 
(1 / 2)
  Var. % 
(1 / 3)
Residential    257.49    255.17    252.08    0.9    2.1 
Industrial*    176.79    177.55    176.41    (0.4)   0.2 
Commercial    225.18    222.04    220.75    1.4    2.0 
Rural    151.21    151.44    148.74    (0.2)   1.7 
Other    173.00    169.79    170.53    1.9    1.4 
TOTAL    206.34    205.50    203.04    0.4    1.6 
Without ICMS 
* Free customers not included 

Average Energy Supply Tariffs:

    R$/MWh 
Tariff    1Q09 
(1)
  4Q08 
(2)
  1Q08 
(3)
  Var. % 
(1 / 2)
  Var. % 
(1 / 3)
Auction CCEAR 2005 - 2012    67.62    67.48    63.96    0.2    5.7 
Auction CCEAR 2006 - 2013    79.38    79.19    75.14    0.2    5.6 
Auction CCEAR 2007 - 2014    88.96    88.80    84.06    0.2    5.8 
Auction CCEAR 2008 - 2015    94.27    94.03    89.15    0.3    5.7 
Auction CCEAR 2009 - 2016    107.96         
Wholesale Concessionaires - State of Paraná    122.26    123.19    121.37    (0.8)   0.7 
 

15


7.3 Energy Flow

Copel Consolidated:

    GWh 
    1Q09    1Q08    Var.% 
 
   Own Generation    3,944    5,069    (22.2)
   Purchased energy    6,499    6,239    4.2 
       Itaipu    1,320    1,353    (2.5)
       Auction - CCEAR    3,686    3,493    5.5 
       Itiquira    226    229    (1.0)
       Dona Francisca    159    161    (1.1)
       MRE/CCEE    718    653    10.0 
       Other    390    350    11.3 
Total Available Power    10,443    11,308    (7.6)
   Energy Market    5,363    5,269    1.8 
       Retail    4,971    4,844    2.6 
       Concessionaires    122    121    0.7 
       Free Customers    270    304    (11.4)
   Bilateral Agreements    250    936    (73.3)
   Auction - CCEAR    3,679    3,115    18.1 
   MRE/CCEE    320    1,148    (72.1)
   Losses and differences    831    840    (1.0)
       Basic network losses    247    247    (0.0)
       Distribution losses    553    562    (1.7)
       CG contract allocation    31    30    3.8 
 
CCEAR = Energy Purchase Agreements in the Regulated Market 
MRE = Energy Reallocation Mechanism 
CCEE = Electric Power Trade Chamber 
CG = Center of gravity of the Submarket (difference between billed and energy received from CG)
Amounts subject to changes after settlement by CCEE 

Energy Flow - Copel Geração:

    GWh 
    1Q09    1Q08    Var. % 
 
 Own Generation    3,944    5,069    (22.2)
 MRE/ CCEE    518    406    27.6 
 Dona Francisca    159    161    (1.1)
 Other       
Total Available Power    4,621    5,636    (18.0)
 Bilateral Agreements    250    936    (73.3)
 CCEAR - COPEL Distribuição    322    309    4.2 
 CCEAR - Other Concessionaires    3,357    2,805    19.7 
 Free Customers    270    304    (11.4)
 MRE/ CCEE    320    1,148    (72.1)
 Losses and differences    102    133    (22.9)
 

16


Energy Flow - Copel Distribuição:

    GWh 
    1Q09    1Q08    Var. % 
 
 Itaipu    1,320    1,353    (2.5)
 CCEAR - COPEL Geração e Transmissão    322    309    4.2 
 CCEAR - Other Wholesale    3,364    3,184    5.7 
 CCEE    200    247    (18.9)
 Itiquira    226    229    (1.0)
 Other    390    350    11.3 
Purchased Energy    5,822    5,672    2.6 
State Demand    5,093    4,965    2.6 
 Retail    4,971    4,844    2.6 
 Wholesale    122    121    0.7 
CCEE    -    -    - 
Total Sold Energy    5,093    4,965    2.6 
Losses and differences    729    707    3.1 
 Basic network losses    145    115    26.4 
 Distribution losses    553    562    (1.7)
 CG contract allocation    31    30    3.8 
 

7.4 Shareholding Structure:

Thousand shares 
Shareholders    COMMON    %    Preferred "A"    %    Preferred "B"    %    TOTAL    % 
State of Paraná    85,029    58.6    0    -    14    0.0    85,043    31.1 
BNDESPAR    38,299    26.4    0    -    27,282    21.3    65,581    24.0 
ELETROBRÁS    1,531    1.1    0    -    0    -    1,531    0.6 
Free Floating    19,618    13.5    128    32.3    100,892    78.7    120,638    44.1 
     BOVESPA    15,065    10.4    128     32.3    73,352    57.2    88,545    32.4 
     NYSE    4,553    3.1        27,424    21.4    31,977    11.7 
     LATIBEX      0.0        116    0.1    116    0.0 
Other    554    0.4    268    67.7    40    0.0    862    0.3 
TOTAL    145,031    100.0    396    100.0    128,228    100.0    273,655    100.0 


17


8. Financial Statements - Consolidated 

8.1 Assets:

 R$1.000 
ASSETS    Mar/09 
(1)
  Dec/08 
(2)
  Mar/08 
(3)
  Var.% 
(1/2)
  Var.% 
(1/3)
CURRENT    3,539,576    3,573,153    3,160,301    (0.9)   12.0 
   Cash in hand    1,594,217    1,813,576    1,505,720    (12.1)   5.9 
   Customers and distributors    1,044,176    1,032,952    1,099,995    1.1    (5.1)
   Allowance for doubtfull accounts    (60,724)   (56,284)   (80,492)   7.9    (24.6)
   Telecommunications services, net    9,712    7,904    8,125    22.9    19.5 
   Dividends receivable    5,247    5,247    5,783    0.0    (9.3)
   Services in progress    59,626    64,765    50,356    (7.9)   18.4 
   CRC transferred to State Government    47,782    47,133    41,386    1.4    15.5 
   Taxes and social contributions paid in advance    231,546    257,339    232,066    (10.0)   (0.2)
   Account for compensation of "Portion A"    188,303    111,098    72,029    69.5    161.4 
   Other regulatory assets    27,570    31,511    17,186    (12.5)   60.4 
   Collaterals and escrow deposits    71,358    150,794    106,716    15.8    63.6 
   Bonds and Securities    174,565                 
   Material and supplies    72,149    64,260    46,799    12.3    54.2 
   Other receivables    74,049    42,858    54,632    72.8    35.5 
NON-CURRENT    9,648,868    9,680,473    9,394,919    (0.3)   2.7 
Long-term assets    1,997,234    2,117,741    2,001,939    (5.7)   (0.2)
   Customers and distributors    71,632    82,176    124,524    (12.8)   (42.5)
   Allowance for doubtfull accounts    (191)   (246)   (10,103)   (22.4)   (98.1)
   Telecommunications services    2,827    3,211    7,109    (12.0)   (60.2)
   CRC transferred to State Government    1,248,554    1,272,770    1,224,266    (1.9)   2.0 
   Taxes and social contributions paid in advance    458,496    462,609    472,613    (0.9)   (3.0)
   Account for compensation of "Portion A"    51,790    53,494    16,987    (3.2)   204.9 
   Other regulatory assets    5,786    11,085    5,729    (47.8)   1.0 
   Bonds and Securities      69,063       
   Collaterals and escrow deposits    37,515    37,868    22,142    (0.9)   69.4 
   Judicial Deposits    109,116    113,497    130,189    (3.9)   (16.2)
   Other    11,709    12,214    8,483    (4.1)   38.0 
Investments    404,689    395,938    434,236    2.2    (6.8)
Property, plant and equipment    7,120,704    7,048,675    6,839,263    1.0    4.1 
Intangible assets    126,241    118,119    119,481    6.9    5.7 
 
TOTAL    13,188,444    13,253,626    12,555,220    (0.5)   5.0 

18


8.2 Liabilities:

R$'000 
LIABILITIES    Mar 09 
(1)
  Dec 08 
(2)
  Mar 08 
(3)
  Var.% 
(1/2)
  Var.% 
(1/3)
CURRENT    1.684.825    1.963.494    1.821.922    (14,2)   (7,5)
   Loans and financing    119.238    293.461    224.599    (59,4)   (46,9)
   Suppliers    542.241    497.832    454.376    8,9    19,3 
   Taxes and social contributions    310.755    407.072    272.053    (23,7)   14,2 
   Interest on own capital and dividends    248.686    245.166    260.540    1,4    (4,5)
   Accrued payroll costs    169.468    159.388    136.279    6,3    24,4 
   Post-employment benefits    20.919    22.066    17.655    (5,2)   18,5 
   Account for compensation of "Portion A"    12.977    28.327    104.368    (54,2)   (87,6)
   Other regulatory liabilities    21.071    26.192    45.800    (19,6)   (54,0)
   Customer charges due    33.248    43.123    33.561    (22,9)   (0,9)
   Research and development and energy efficiency    100.262    126.484    191.211    (20,7)   (47,6)
   Other payables    105.960    114.383    81.480    (7,4)   30,0 
NON-CURRENT    2.938.620    2.997.478    3.010.510    (2,0)   (2,4)
Long-term liabilities                     
   Loans and financing    1.538.509    1.571.172    1.689.684    (2,1)   (8,9)
   Provision for contingencies    592.225    593.365    520.843    (0,2)   13,7 
   Suppliers    209.352    214.157    195.340    (2,2)   7,2 
   Taxes and social contributions    27.388    29.528    16.420    (7,2)   66,8 
   Post-employment benefits    398.864    425.879    478.184    (6,3)   (16,6)
   Account for compensation of "Portion A"      2.373    15.215     
   Other regulatory charges    3.868    7.257    13.095    (46,7)   (70,5)
   Research and development and energy efficiency    83.943          - 16,5   
   Deferred revenues    74.994    74.994    74.994     
   Other payables    9.477    6.674    6.735    42,0    40,7 
MINORITY INTEREST    239.841    239.567    231.099    0,1    3,8 
SHAREHOLDERS' EQUITY    8.325.158    8.053.087    7.491.689    3,4    11,1 
   Share capital    4.460.000    4.460.000    4.460.000     
   Capital reserves    838.340    838.340    838.340     
   Income reserves    2.754.747    2.754.747    1.937.837      42,2 
   Retained earnings    272.071      255.512      6,5 
TOTAL    13.188.444    13.253.626    12.555.220    (0,5)   5,0 

19


8.3 Income Statement:

R$'000 
INCOME STATEMENT    1Q09 
(1)
   4Q08 
(2)
  1Q08 
(3)
  Var.% 
(1/2)
  Var.% 
(1/3)
Operating revenues *    2,077,541    2,159,757    1,989,579    (3.8)   4.4 
Deductions from operating revenues    (720,912)   (756,939)   (675,021)   (4.8)   6.8 
Net operating revenues    1,356,629    1,402,818    1,314,558    (3.3)   3.2 
Operating expenses and costs    (987,096)   (1,122,980)   (971,922)   (12.1)   1.6 
   Electricity purchased for resale    (429,340)   (428,980)   (443,499)   0.1    (3.2)
   Charges for the use of transmission grid    (122,701)   (149,050)   (105,767)   (17.7)   16.0 
   Payroll    (166,727)   (204,466)   (131,701)   (18.5)   26.6 
   Pension plan    5,519    29,406    (20,405)   (81.2)  
   Material    (13,871)   (15,630)   (11,646)   (11.3)   19.1 
   Raw material and supplies for generation of electricity    (5,693)   (6,675)   (5,013)   (14.7)   13.6 
   Natural gas purchased for resale and supplies for the gas business    (37,666)   (54,521)   (31,791)   (30.9)   18.5 
   Third-party services    (66,316)   (66,718)   (61,811)   (0.6)   7.3 
   Depreciation and amortization    (98,633)   (101,089)   (104,016)   (2.4)   (5.2)
   Provisions and reversals    (9,551)   (33,708)   (16,787)   (71.7)   (43.1)
   Other operating expenses    (42,117)   (91,549)   (39,486)   (54.0)   6.7 
Result of operations    369,533    279,838    342,636    32.1    7.9 
Financial Income (Losses)   32,538    (203)   34,090    -    (4.6)
   Financial revenues    87,771    116,362    106,603    (24.6)   (17.7)
   Financial expenses    (55,233)   (116,565)   (72,513)   (52.6)   (23.8)
Equity investment    11,174    (15,956)   12,250    -    (8.8)
Operating income (expenses)   413,245    263,679    388,976    56.7    6.2 
Income tax and social contribution                     
Deductions from income    (137,379)   (83,091)   (129,384)   65.3    6.2 
Net income (loss) before minority interest    275,866    180,588    259,592    52.8    6.3 
Minority interest    (3,795)   (879)   (4,080)   331.7    (7.0)
Net income (loss)   272,071    179,709    255,512    51.4    6.5 
                     
Earning per share    0.99    0.66    0.93    51.4    6.5 
                     
EBITDA    468,166    380,927    446,652    22.9    4.8 

20


8.4 Cash Flow:

Consolidated Cash Flow    1Q09    1Q08 
Cash flow from operating activities         
   Net income for the period    272,071    255,512 
   Adjustments for the reconciliation of net income for the period with cash flow from operating activities:    59,425    78,884 
               Provision (reversal) for doubtful accounts    4,382    7,424 
               Depreciation    96,793    100,923 
               Unrealized monetary and exchange variations, net    18,231    9,130 
               Equity in the results of subsidiaries and investees    (11,174)   (12,250)
               Deferred income tax and social contribution    31,081    6,475 
               Variations in Account for Compensation of "Portion A", net    (87,695)   (43,287)
             Variations in other regulatory assets and liabilities, net    896    (6,516)
               Provisions under long-term liabilities    5,155    7,420 
               Write-off of property, plant, and equipment, net    3,509    2,326 
               Write-off of intangible assets, net    202    66 
               Amortization of intangible assets    1,840    3,093 
               Minority interests    (3,795)   4,080 
   Reduction (increase) of assets    1,454    119,797 
   Reduction of liabilities    (225,851)   (120,930)
   Net cash generated by operating activities    107,099    333,263 
Cash flow from investing activities         
         Acquisition of controlling interest in Dominó - net of acquired cash      (108,962)
         Additions in other investments    (21)   (3,333)
         Additions to property, plant, and equipment:    (180,932)   (122,564)
         Additions to intangible assets    (10,164)   (1,176)
         Customer contributions    11,830    13,156 
         Disposal of property, plant, and equipment    1,550    4,497 
Net cash used by investing activities    (177,737)   (218,382)
Cash flow from financing activities         
               Amortization of principal amounts of loans and financing    (15,361)   (16,712)
               Amortization of principal amounts of debentures    (133,360)   (133,320)
Net cash used by financing activities    (148,721)   (150,032)
Increase (decrease) in cash and cash equivalents    (219,359)   (35,151)
               Cash and cash equivalents at the beginning of the period    1,813,576    1,540,871 
               Cash and cash equivalents at the end of the period    1,594,217    1,505,720 
Variation in cash and cash equivalents    (219,359)   (35,151)

21


9. Financial Statements - Wholly-owned Subsidiaries 

9.1 Assets:

R$'000 
Assets    GET    DIS    TEL 
 
 CURRENT    1,075,909    1,647,867    55,700 
     Cash in hand    745,044    287,280    33,752 
     Customers and distributors, net    197,543    790,158    - 
     Telecommunications services, net    -    -    12,671 
     Services in progress    11,843    47,783    - 
     CRC transferred to State of Paraná    -    47,782    - 
     Taxes and social contributions    7,244    128,610    1,587 
     Account for compensation of "Portion A"    -    188,303    - 
     Other regulatory assets    -    27,570    - 
     Bonds and linked deposits    81,729    39,840    - 
     Material and supplies    10,039    55,160    6,397 
     Other    22,467    35,381    1,293 
 NON-CURRENT    4,113,848    3,922,899    192,584 
 Long-term assets    100,718    1,729,573    12,519 
     Customers and distributors, net    (85)   71,526   
     Telecommunications services        2,827 
     CRC transferred to State of Paraná      1,248,554   
     Taxes and social contributions paid in advance    82,417    244,024    9,444 
     Account for compensation of "Portion A"      51,790   
     Other regulatory assets      5,786   
     Bonds and linked deposits      37,515   
     Judicial Deposits    16,505    65,692    248 
     Other    1,881    4,686   
 Investments    412,183    2,479    - 
 Property, plant and equipment    3,537,706    2,154,696    179,120 
 Intangible    63,241    36,151    945 
 TOTAL    5,189,757    5,570,766    248,284 
 
GET: Geração e Transmissão, DIS: Distribuição, TEL: Telecomunicação 

22


9.2 Liabilities:

R$'000 
Liabilities    GET    DIS    TEL 
 
CURRENT    641,163    1,111,866    20,936 
     Loans and financing    55,685    14,542   
     Suppliers    69,865    470,308    4,616 
     Taxes and social contributions    45,376    223,876    2,404 
     Dividends payable    369,617    91,100    3,655 
     Accrued payroll costs    41,921    116,621    9,143 
     Post-retirement benefits    5,558    14,393    949 
     Account for compensation of "Portion A"      12,977   
     Other regulatory charges    5,840    15,231   
     Customer charges due    3,791    29,457   
     Electric efficiency and development research    18,502    79,021   
     Other    25,008    44,340    169 
NON-CURRENT    768,787    1,315,854    17,778 
     Loans and financing    224,825    151,406   
     Provision for contingencies    179,673    191,050    1,719 
     Intercompany receivables      610,613   
     Suppliers    233,646     
     Taxes and social contributions      18,468   
     Pension plan and other post-retirement benefits    118,181    263,896    16,059 
     Other regulatory charges      3,868   
     Electric efficiency and development research    7,405    76,538   
     Other    5,057    15   
SHAREHOLDERS' EQUITY    3,779,807    3,143,046    209,570 
     Capital stock    3,400,378    2,171,928    194,755 
     Capital reserves       
     Income reserves    228,583    870,357    9,169 
     Accrued income    150,846    100,761    5,646 
TOTAL    5,189,757    5,570,766    248,284 
 
GET: Geração e Transmissão, DIS: Distribuição, TEL: Telecomunicação 

23


9.3 Income Statement:

R$'000 
Income statement    GET    DIS    TEL 
 Operating revenues    450,088    1,577,132    32,455 
     Electricity sales to final customers    39,638    714,133   
     Electricity sales to distributors    344,553    12,224   
     Use of transmission plant    59,050    833,339   
     Telecom revenues        32,455 
     Other    6,847    17,436   
 Deductions from operating revenues    (65,562)   (633,426)   (5,345)
 Net operating revenues    384,526    943,706    27,110 
 Operating costs and expenses    (173,659)   (809,485)   (19,839)
     Electricity purchase for resale    (23,634)   (470,255)  
     Charges for the use of transmission grid    (43,359)   (94,935)  
     Payroll    (39,240)   (115,624)   (7,789)
     Pension plan    6,730    (1,057)   89 
     Material    (2,391)   (10,716)   (574)
     Raw material and supplies for generation of electricity    (5,879)    
     Third-party services    (15,773)   (54,773)   (2,128)
     Depreciation and amortization    (35,557)   (40,573)   (7,820)
     Provisions (reversal) for contigencies    3,033    (9,455)   (848)
     Other costs and expenses    (17,589)   (12,097)   (769)
 Result of operations    210,867    134,221    7,271 
 Financial Income (Losses)   18,081    19,017    1,235 
 Equity investment    (303)    
 Operating Income (expenses)   228,645    153,238    8,506 
     Provision for IRPJ and CSLL    (70,519)   (27,140)   (3,111)
     IRPJ and CSLL Deferred    (7,280)   (25,337)   251 
 Net income (loss)   150,846    100,761    5,646 
             
 Ebitda    246,424    174,794    15,091 
 
GET: Geração e Transmissão, DIS: Distribuição, TEL: Telecomunicação 

24


1Q09 Results Conference Call 

Presentation by Rubens Ghilardi, CEO, and Paulo Roberto Trompczynski, CFO. 
 
Date:  Friday, May 15, 2009 (Simultaneous translation to English)
Time:  10:00 a.m. (US EST)
Telephone:  (1- 786) 924-6977 
Code:  Copel 
 
Live webcast of the conference call will be available at www.copel.com/ri 
 
Please connect 15 minutes prior to the call. 

 
 
Investor Relations - Copel

ri@copel.com
 
Telephone:    Fax: 
+ 55 (41) 3222-2027    +55 (41) 3331-2849 

Statements contained in this press release may contain information which is forward-looking and reflects management's current view and estimates of future economic circumstances, industry conditions, company performance, and financial results. Any statements, expectations, capabilities, plans and assumptions contained in this press release that do not describe historical facts such as statements regarding the declaration or payment of dividends, the direction of future operations, the implementation of principal operating and financing strategies and capital expenditure plans, the factors or trends affecting financial condition, liquidity or results of operations are forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and involve a number of risks and uncertainties. There is no guarantee that these results will actually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations. 

25


 
SIGNATURE
 
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Date: May 14, 2009

 
COMPANHIA PARANAENSE DE ENERGIA – COPEL
By:
/S/  Rubens Ghilardi

 
Rubens Ghilardi
CEO
 

 

 
FORWARD-LOOKING STATEMENTS

This press release may contain forward-looking statements. These statements are statements that are not historical facts, and are based on management's current view and estimates of future economic circumstances, industry conditions, company performance and financial results. The words "anticipates", "believes", "estimates", "expects", "plans" and similar expressions, as they relate to the company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations and the factors or trends affecting financial condition, liquidity or results of operations are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events, trends or results will actually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.