FOR IMMEDIATE RELEASE

For Release: May 03, 2012

Contact: Brad Captain, Vice President, Corporate Communications

DULLES, Va.—The National Rural Utilities Cooperative Finance Corporation (CFC) (NYSE: NRU, NRC) has reported preliminary findings from its annual Key Ratio Trend Analysis (KRTA), based on 2011 operational results from a segment of electric distribution cooperatives. National figures represent each ratio’s median.

“The preliminary numbers represent the majority of America’s electric distribution co-ops,” said Rich Larochelle, CFC senior vice president, Corporate Relations. “These numbers show that although growth has slowed, co-op management and boards of directors have maintained strong coverage ratios.”

Preliminary KRTA data are based on information submitted by 669 electric cooperatives for the year ending December 31, 2011, as compared with 2010 KRTA results from the same group of cooperatives. Key points include:

• Cooperative financial ratios remained strong. Equity as a percentage of assets increased to 42.24 percent—the highest in five years—compared with 2010’s median of 41.8 percent. The median times interest earned ratio, which measures a system’s ability to generate earnings adequate to meet interest payments on long-term debt, dropped slightly to 2.37, from 2.44 in 2010. Median modified debt service coverage, which measures a system’s ability to cover principal and interest payments, decreased to 1.78 from 1.95 in 2010.
• Sales and consumer growth slowed. Kilowatt hour sales in 2011 declined by 0.34 percent, following a 4.7-percent median increase the year before. Annual growth in the number of consumers served has been slowing over the past five years, and 2011 was no exception: Median consumer growth was 0.27 percent, down from 0.37 percent in 2010.
• Consumer payments remained reliable. Consumers continued to make electric bill payments a priority in 2011, despite weakness in the U.S. economy. Overdue bills as a percentage of operating revenue decreased to 0.15 percent (from 0.17 percent in 2010), and amounts written off as a percentage of operating revenue remained at 0.17 percent. 

The final KRTA report, which will include data from approximately 820 electric distribution cooperatives, will be available by mid-summer.

About CFC

The National Rural Utilities Cooperative Finance Corporation (CFC) is a nonprofit finance cooperative created and owned by America’s electric cooperative network. With approximately $21 billion in assets, CFC is committed to providing unparalleled industry expertise, flexibility and responsiveness to serve the needs of its member-owners.

About KRTA

CFC developed the KRTA in 1975 to provide electric cooperative managers and board members a complete picture of their system’s financial performance and to help them analyze results compared with medians from other electric cooperatives. Medians are used as opposed to averages, which can be skewed by extreme responses. The KRTA is based on unaudited data reported by electric distribution cooperatives.

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