Just Energy Reports Fourth Quarter and Full Year Fiscal 2017 Results
Fiscal 2017 Base EBITDA of $224.5 million increases 8% Achieves targeted net debt ratio of 1.8x Provides fiscal 2018 guidance
(firmenpresse) - TORONTO, ONTARIO -- (Marketwired) -- 05/17/17 -- Just Energy Group, Inc. (TSX: JE)(NYSE: JE), a leading retail energy provider specializing in electricity and natural gas commodities, energy efficiency solutions, and renewable energy options, today announced results for its fourth quarter and full fiscal year 2017.
Key Fiscal 2017 Highlights:
"Fiscal 2017 was an important year for Just Energy from a financial, operational, and strategic positioning perspective," commented Just Energy's Co-CEO, Deb Merril. "Our business performed well, delivering solid earnings growth while generating meaningful cash flow. In parallel with our strong results, we pursued several strategic measures to position the Company for continued long-term success."
"For the fiscal year, we achieved our guidance; overcoming a tough comparison to the strong 2016, and our attrition rate continued to improve. We also achieved a dividend payout ratio of 60% and a net debt to Base EBITDA ratio of 1.8x, and both important metrics are now well within our targeted ranges. We achieved these objectives while navigating a difficult market environment where we are experiencing lower than anticipated levels of customer switching activity due to relative price stability in gas and electricity markets, and the effect of increased competition that typically occurs in low-commodity-price environments. Our business is healthy and able to withstand prolonged periods such as 2017, without hindering our ability to pursue our long-term strategy."
Co-CEO, James Lewis added, "We are experiencing great customer acceptance of our growing product suite, new channels and long-term loyalty programs, and our geographic expansion efforts remain on track. Our attrition rate in the Consumer and Commercial businesses improved two percentage points during the year, and our total renewal rate improved three percentage points during the year. These improvements are a reflection of initiatives undertaken to improve our products, margin and customer experience. The momentum of improvements to gross and net additions for the fourth quarter indicates we are on track to return to positive customer growth in fiscal 2018 and beyond."
"We are entering an exciting time for Just Energy. We have successfully transformed the profitability profile of the business, while also repairing our balance sheet and overall financial position. These successes allow us to pivot from a period of internal repair to a period of investing in our prolonged growth. We enter fiscal 2018 capable of delivering more value to customers than ever in our history and we are squarely on the path to future sustained growth."
Co-CEO, Deb Merril concluded, "Looking ahead, we are aggressively pursuing a growth strategy centred on increasing the number of customer contracts, expanding our geographic presence, transforming our brand, enhancing our sales channels, pursuing strategic acquisitions, and providing new products and structures that meet the changing needs of today's consumers."
"In fiscal 2018, we believe we will achieve net customer additions and deliver Base EBITDA in the range of $210 million to $220 million. While the Base EBITDA guidance reflects a decline over 2017 results, it demonstrates solid performance in our base business combined with significant investment in the form of up-front commissions related to customer growth, investments to seed our new international operations, and further investments in product and geographic growth initiatives. Looking to fiscal 2019 and beyond, we believe the business will return to growth as the successful execution of our strategy continues to generate great interest in our offerings and results in sustained growth."
Fourth Quarter Operating Performance
To view the Fourth Quarter Operating Performance chart, please visit the following link: .
Fiscal 2017 Operating Performance
To view the Fiscal 2017 Operating Performance chart, please visit the following link: .
Customer Aggregation
Balance Sheet & Liquidity
The Company remains committed to improving its balance sheet through the pursuit of aggressive debt reductions. As of March 31, 2017, Just Energy's book value net debt was 1.8x Base EBITDA, which has significantly improved from 2.6x 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 centre on geographic expansion, structuring superior product value propositions, and enhancing the portfolio of energy management offerings.
In fiscal 2018, management believes that the Company will deliver Base EBITDA in the range of $210 million to $220 million. These expectations reflect continued solid performance in the base business, offset by significant investments to seed Just Energy's international operations, further investments in product and geographic growth initiatives, and up-front commissions related to customer growth in fiscal 2018.
While the opex investments in growth will present a challenge to fiscal 2018, management expects to still return to growth in Base EBITDA for fiscal 2019 and beyond, returning to the double-digit percentage growth as delivered in the past. This expectation is in line with Just Energy's previous performance under the current leadership team (fiscal 2015-2017) when the Company delivered a Base EBITDA CAGR of 10.2% or 14.8% prior to the deduction related to Commercial customer acquisition costs.
The Company's balance sheet improvement initiatives have resulted in significantly improved debt ratios, and management remains committed to maintaining these levels throughout this period of growth investment.
The repositioned business model has improved the Company's ability to drive profitability and cash generation, thus providing management with the confidence and freedom to commit to future dividend distributions at the current $0.50 per common share level and to maintain the preferred shares dividend.
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 18th, 2017 followed by a question and answer period. Rebecca MacDonald, Executive Chair, President & Co-Chief Executive Officers James Lewis and Deb Merril, and Chief Financial Officer Pat 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 1-888-465-5079 and entering pass code 7009356#. 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 18th, 2017 until June 17th, 2017 at 11:59 p.m. EST. To access the rebroadcast please dial 1-888-843-7419 and enter the participant code 7009356#.
About Just Energy Group Inc.
Established in 1997, Just Energy (NYSE: JE)(TSX: JE) is a leading retail energy provider specializing in electricity and natural gas commodities, energy efficiency solutions, and renewable energy options. With offices located across the United States, Canada, the United Kingdom and Germany, Just Energy serves approximately two million residential and commercial customers providing homes and businesses with a broad range of energy solutions that deliver comfort, convenience and control. Just Energy Group Inc. is the parent company of Amigo Energy, Green Star Energy, Hudson Energy, Just Energy Solar, Tara Energy and TerraPass.
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:
Pat McCullough
Chief Financial Officer
Just Energy
713-933-0895
Michael Cummings
Investor Relations
Alpha IR Group
617-461-1101
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Datum: 17.05.2017 - 21:00 Uhr
Sprache: Deutsch
News-ID 543571
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Oil & Gas
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