On August 13,2015 released it's first quarter results and they were improved from the same quarter in 2014.Just Energy is a retailer of natural gas,solar and green energy.It buys from wholesalers and sells to retail customers.It's operational numbers are down from the previous quarter as are it's net additions.But it's net earnings are up from the previous quarter.As a result Just Energy(JE) was able to raise it's annual guidance for EBITDA by $20 million.
Operational Statistics
Just Energy tells us that the first quarter is traditionally a weak quarter for it.That aside,revenues of $933 million were 14% ahead of Q2 in 2014.Their gross margin of $151 million was 22% higher than the same quarter in 2014.Base EBITDA of $39 million had an increase of 29% over the second quarter of 2014.The payout ratio of 63% was an improvement over 198% a year ago.While base funds from continued operations increased by 91%.Importantly long term debt was $676 million compared to $774 million at June 30,2014.
Improvements
Just Energy's customer base is 4.6 million residential customers which is up 2% from 2014.They made a change on the accounting of commission prepayment which they believe will improve finances.Just Energy believes their new prepayment of commissions policy will add $20 million to annual EBITDA.Net additions were down this quarter but JE believes they have made it tougher to be a customer now and are trying to get customers that"meet their profitability profile" now.
Just Energy made a number of financial changes;they reduced their dividend in July 2014 from $.84 per share to $.50 per share.This is so they could increase their capital expenditure program.Also they have increased their credit facility.They got a sizeable amount of non-operating income this quarter and investors need to wait for next quarter to see if it is a recurring item or not.
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