For Release: August 24, 2012
Contact: Ling Wang, Brad Captain
DULLES, Va.—The National Rural Utilities Cooperative Finance Corporation (CFC) (NYSE: NRU, NRC) has announced financial results for its fiscal year (FY) 2012, which ended May 31, 2012.
“Our electric cooperative members have maintained stable operating performance and strong financial ratios, even during the recent economic downturn, which serves to underpin CFC’s financial strength,” CFC CEO Sheldon C. Petersen said.
CFC’s adjusted times interest earned ratio (TIER) was 1.10 at the close of FY 2012, compared with 1.21 at the close of FY 2011. CFC’s adjusted debt-to-equity ratio decreased to 6.01-to-1 at the close of FY 2012, an improvement from the previous fiscal year’s 6.09-to-1.
Gross loans outstanding totaled $18.9 billion at May 31, 2012, a slight decrease from $19.3 billion a year ago. New loans were primarily driven by new bridge loan advances and CFC’s refinancing of other lenders’ debt.
“In general, loan demand from electric distribution cooperatives has been modest due to the slow economic recovery,” CFC Senior Vice President and Treasurer Andrew Don said. “Despite this, CFC was able to provide its members with savings via the refinancing of other lenders’ higher-cost existing debt with new debt at historically low interest rates. These financings lowered interest expense to members, often significantly, ultimately benefiting consumers.”
CFC filed FY 2012 results with the U.S. Securities and Exchange Commission (SEC) on Aug. 15. The Form 10-K filing can be viewed on CFC’s website, www.nrucfc.coop, under the Investor Relations tab in the Financial Reporting section.
CFC’s FY 2012 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, 2012, as filed with the SEC and as posted on the CFC website, 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 finance cooperative created and owned by America’s electric cooperative network. With approximately $20 billion in assets, CFC is committed to providing unparalleled industry expertise, flexibility and responsiveness to serve the needs of its member-owners.