For Release: August 23, 2011
Contact: Brad Captain, Ling Wang
HERNDON, Va.—The National Rural Utilities Cooperative Finance Corporation (CFC) (NYSE: NRU, NRC) has announced financial results for its fiscal year (FY) 2011, which ended May 31, 2011.
CFC had an adjusted net income of $175 million for FY 2011, an increase of $67 million over the $108 million reported for the prior year. Adjusted times interest earned ratio, or TIER, was 1.21 for FY 2011, as compared with 1.12 a year ago.
“Throughout the course of fiscal year 2011, CFC continued its focus on core electric lending and on diversifying funding sources,” CFC CEO Sheldon C. Petersen said. “Year-end results affirm the effectiveness of that strategy.”
Loans outstanding to electric cooperatives increased over the period, to $19 billion at May 31, 2011, from $18.4 billion at May 31, 2010. The telecommunications loan portfolio decreased to 4 percent of total loans and guarantees outstanding at May 31, 2011, from 8 percent at May 31, 2010. As a result, overall loans and guarantees outstanding decreased to $20.4 billion at May 31, 2011, compared with $20.5 billion the prior year.
CFC also decreased its overall interest expense by 8 percent during fiscal year 2011, compared with the same prior-year period.
“Although there has been significant volatility and uncertainty in the capital markets during the past year, CFC has developed a variety of flexible programs and relationships in order to secure funds at attractive rates,” CFC Senior Vice President and Treasurer Andrew Don said. “This resourcefulness brought CFC’s overall funding costs down in fiscal year 2011—a savings that directly benefits our member-owners.”
CFC’s FY 2011 year-end results include GAAP and non-GAAP adjusted financial measures. Please refer to CFC’s annual report on Form 10-K for the fiscal year ended May 31, 2011, as filed with the SEC and as posted on the CFC website at www.nrucfc.coop, for a discussion of why CFC believes the adjusted measures are useful information in analyzing its financial performance and the reconciliation to the related GAAP measures.
The National Rural Utilities Cooperative Finance Corporation (CFC) is a nonprofit cooperative that provides capital and industry-leading financial products to the nation’s rural utility systems. With more than $20 billion in assets, CFC is committed to providing unparalleled industry expertise, flexibility and responsiveness to serve the needs of its member-owners.