Just Energy Reports Fourth Quarter and Full Year Fiscal 2016 Results
Fiscal 2016 Sales Up 5%; Gross Margin Increases 17%; Base EBITDA Grows 15% Net Debt now 2.6x Base EBITDA; Fiscal 2017 Base EBITDA Expected to Grow Double Digit Percentage
(firmenpresse) - TORONTO, ONTARIO -- (Marketwired) -- 05/18/16 -- Just Energy Group, Inc. (TSX: JE)(NYSE: JE), an energy management solutions provider specializing in electricity, natural gas, solar and green energy, today announced results for its fourth quarter and full fiscal year 2016.
Key Fiscal 2016 Highlights:
"Fiscal 2016 was a tremendous year for Just Energy from a financial, operational, and strategic positioning perspective," commented Just Energy''s Co-CEO, Deb Merril. "Our business performed very well, delivering strong top and bottom line results while generating meaningful cash flow. In parallel with delivering strong results, we were able to take strategic measures to position the Company for continued long-term success."
"In fiscal 2016 we exceeded our own guidance and overcame a very tough comparison to the strong fourth quarter of 2015. As you''ll recall, the winter weather of last year provided a windfall across much of the industry. Given our world class risk management and hedging strategy, we were able to drive strong performance in the recently completed winter quarters despite the relatively warm weather. These consistent, performance-driven results are now the norm at Just Energy as a result of our strengthened financial positioning and improved profitability profile."
"Over the course of the year we took action to change the business foundation and reposition the Company to capture more accretive profit and cash flow by not allowing our team to chase market share at the expense of margin. As a result, we expect the improved scale and leverage in our model that is evident in our ability to take 5% top-line sales growth and deliver 17% gross margin and 15% Base EBITDA growth, while driving a 62% increase in cash flow in fiscal 2016 to continue in 2017 and beyond."
Co-CEO James Lewis added, "While sales and net customer additions declined in the fourth quarter as compared to a very strong fourth quarter of fiscal 2015, due to our refusal to engage in risky pricing tactics that would ultimately damage our improved profitability profile, we feel strongly that our margin per customer improvement initiative will continue to deliver in fiscal 2017 and beyond. We''ve also taken steps to strengthen our sales force through the addition of four key channel leaders. Likewise, we feel confident that our ability to embrace the customer and build longer-term loyalty programs through the offering of a differentiated product suite will drive our market position growth in a very profitable manner moving forward. As a result of our strong position, we believe the Company will achieve fiscal 2017 Base EBITDA in the range of $223 to $233 million, reflecting continued double-digit year over year growth."
Co-CEO, Deb Merril concluded, "We''re operating from a greatly improved financial position and our strategy is proving our ability to consistently deliver throughout any cycle. Our financial flexibility, combined with our commitment to maintaining a capital light model, supports our ability to pursue a growth strategy centered on geographic expansion, structuring superior product value propositions, and enhancing the portfolio of energy management offerings. Looking forward, our geographic expansion will be centered on Europe where we expect to expand into at least two new nations in fiscal 2017 while also introducing new, exciting products to our offering. These new target markets and the enhanced product suite fit our strategy to become a world class consumer enterprise delivering superior customer value through a range of energy management solutions and a multi-channel approach."
To view the F2016 Fourth Quarter Operating Performance, please visit the following link: .
Just Energy delivered another quarter of strong operating and financial performance as the ongoing focus on increasing gross margin through a more selective sales and renewal process continues to drive profitability across the business and allowed the Company to overcome prepaid commission expense and perform in line with a very strong comparable fourth quarter of 2015.
To view the Fiscal 2016 Operating Performance, please visit the following link: .
Just Energy delivered another year of strong operating and financial performance with sales of $4,105.9 million, 5% higher than the prior year. Ongoing focus on increasing gross margin through a more selective sales and renewal process continues to drive profitability across the business.
Customer Aggregation
Margin per customer improvements during the year demonstrated continued success of Just Energy''s margin improvement initiatives. The company remains focused on maintaining its profitable customers and ensuring that variable rate customers meet base profitability profiles even if this results in higher attrition. This improved profitability per customer will add to the Company''s future margins over and above any growth in the customer base.
Balance Sheet & Liquidity
The strong, performance-driven results continue generating solid cash flows and providing the Company the financial flexibility to pursue aggressive debt reductions. As of March 31, 2016 Just Energy''s book value net debt was 2.6x Base EBITDA, significantly improved from 3.3x just one year ago.
Outlook
Just Energy continues to deploy its strategy to become a world class consumer enterprise delivering superior value to its customers through a range of energy management solutions and a multi-channel approach. Growth plans center on geographic expansion, structuring superior product value propositions, and enhancing the portfolio of energy management offerings. The company''s geographic expansion is centered on Europe where the Company expects to expand into two new European markets in fiscal 2017 and remains committed to evaluating further potential expansion in continental Europe and beyond over the longer term. Superior value propositions such as the new flat bill product has now been rolled out in six new markets, energy management solutions such as Solar are being piloted and launched in California and New York and a new commercial energy storage pilot is being planned.
The fiscal 2016 earnings results exceeded management''s expectations based on the targets provided. To reflect the progress in repositioning the business, management believes that the Company will achieve fiscal 2017 Base EBITDA in the range of $223 million to $233 million, reflecting continued double-digit year over year growth. Fiscal 2017 guidance includes deductions to Base EBITDA of approximately $40 million for prepaid commercial commissions, which would previously have been included as amortization within selling and marketing expenses. This represents a $22 million increase over fiscal 2016 and reflects a go forward run rate for this incremental deduction in future years. Just Energy expects to offset this headwind with continued strong gross margin performance, U.K. growth and Just Solar contributions.
Just Energy''s solar program commenced its initial pilot phases in California and New York during the fiscal year, with the volume signed during this initial pilot resulting in higher than expected profit. Based on the success of the pilot launch in southern California, operations will continue to grow with further expansion in California and the northeast U.S. In fiscal 2017, Solar is expected to contribute $10 million towards the double digit percentage Base EBITDA target.
Earnings Call
The Company will host a conference call and live webcast to review the fourth quarter results beginning at 10:00 a.m. eastern standard time on May 19, 2016 followed by a question and answer period. Rebecca MacDonald, Executive Chair, President & Co-Chief Executive Officers James Lewis and Deborah Merril, and Chief Financial Officer Patrick McCullough will participate on the call.
Just Energy Conference Call and Webcast
Those who wish to participate in the conference call may do so by dialing 1-866-229-4144 and entering pass code 5662147 #. The call will also be webcast live over the internet at the following link:
An audio tape rebroadcast will be available starting at 12:30 p.m. EST May 19, 2016 until June 18, 2016 at 11:59 p.m. EST. To access the rebroadcast please dial 1-888-843-7419 and enter the participant code 5662147#.
About Just Energy Group Inc.
Established in 1997, Just Energy (NYSE: JE)(TSX: JE) is an energy management solutions provider specializing in electricity, natural gas, solar and green energy. With offices located across the United States, Canada, and the United Kingdom, Just Energy serves close to 1.8 million residential and commercial customers. The company offers a wide range of energy products and home energy management services including long-term fixed-price, variable price, and flat bill programs, smart thermostats, and residential solar panel installations. Just Energy Group Inc. is the parent company of Amigo Energy, Commerce Energy, Green Star Energy, Hudson Energy, JE Solar, Tara Energy and TerraPass. Visit justenergygroup.com to learn more.
FORWARD-LOOKING STATEMENTS
Just Energy''s press releases may contain forward-looking statements including statements pertaining to customer revenues and margins, customer additions and renewals, customer attrition, customer consumption levels, general and administrative expenses, dividends, distributable cash and treatment under governmental regulatory regimes. These statements are based on current expectations that involve a number of risks and uncertainties which could cause actual results to differ from those anticipated. These risks include, but are not limited to levels of customer natural gas and electricity consumption, rates of customer additions and renewals, rates of customer attrition, fluctuations in natural gas and electricity prices, changes in regulatory regimes and decisions by regulatory authorities, competition and dependence on certain suppliers. Additional information on these and other factors that could affect Just Energy''s operations, financial results or dividend levels are included in Just Energy''s annual information form and other reports on file with Canadian securities regulatory authorities which can be accessed through the SEDAR website at , on the U.S. Securities Exchange Commission''s website at or through Just Energy''s website at .
Neither the Toronto Stock Exchange nor the New York Stock Exchange has approved nor disapproved of the information contained herein.
Contacts:
Just Energy
Pat McCullough
Chief Financial Officer
713-933-0895
Alpha IR Group
Michael Cummings
Investor Relations
617-461-1101
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Datum: 18.05.2016 - 15:00 Uhr
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