UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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Form 6-K
______________________________________
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
For the month of February 2018
Commission File Number: 001-35400
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Just Energy Group Inc.
(Translation of registrant's name into English)
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6345 DIXIE ROAD SUITE 200 MISSISSAUGA, ONTARIO, CANADA L5T 2E6
(Address of principal executive office)
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Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F [ ] Form 40-F [ X ]
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):
Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):
Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant's "home country"), or under the rules of the home country exchange on which the registrant's securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant's security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.
DOCUMENTS INCLUDED AS PART OF THIS REPORT
Exhibit | ||
99.1 | Just Energy Reports Third Quarter Fiscal 2018 Results |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Just Energy Group Inc. | ||
(Registrant) | ||
Date: February 7, 2018 | By: | /s/ JONAH T. DAVIDS |
Name: | Jonah T. Davids | |
Title: | EVP, General Counsel and Corporate Secretary | |
EXHIBIT 99.1
Just Energy Reports Third Quarter Fiscal 2018 Results
Positive customer addition trends continue; improved operational performance;
continued execution of retail channel expansion strategy
Reaffirms fiscal 2018 guidance
TORONTO, Feb. 07, 2018 (GLOBE NEWSWIRE) -- 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 third quarter of fiscal 2018.
Key Highlights:
Financial highlights | |||||||||||
For the three months ended December 31 | |||||||||||
(thousands of dollars, except where indicated and per share amounts) | |||||||||||
% increase | |||||||||||
Fiscal 2018 | (decrease) | Fiscal 2017 | |||||||||
Sales | $ | 912,203 | (1)% | $ | 918,536 | ||||||
Gross margin | 171,305 | (2)% | 174,353 | ||||||||
Administrative expenses | 50,389 | 13% | 44,567 | ||||||||
Selling and marketing expenses | 55,547 | - | 55,337 | ||||||||
Finance costs (net of non-cash finance charges) | 10,619 | (32)% | 15,646 | ||||||||
Profit for the period1 | 208,415 | NMF 3 | 188,041 | ||||||||
Profit per share available to shareholders - basic | 1.42 | 1.22 | |||||||||
Loss per share available to shareholders - diluted | 1.13 | 0.98 | |||||||||
Dividends/distributions | 21,501 | 14% | 18,800 | ||||||||
Base EBITDA2 | 52,507 | 2% | 51,489 | ||||||||
Base FFO2 | 37,539 | 79% | 20,940 | ||||||||
Payout ratio on Base FFO2 | 57% | 90% |
Financial highlights | ||||||||||
For the nine months ended December 31 | ||||||||||
(thousands of dollars, except where indicated and per share amounts) | ||||||||||
% increase | ||||||||||
Fiscal 2018 | (decrease) | Fiscal 2017 | ||||||||
Sales | $ | 2,611,836 | (7)% | $ | 2,809,773 | |||||
Gross margin | 471,531 | (9)% | 520,559 | |||||||
Administrative expenses | 145,826 | 7% | 135,985 | |||||||
Selling and marketing expenses | 172,200 | - | 172,581 | |||||||
Finance costs (net of non-cash finance charges) | 29,942 | (30)% | 42,600 | |||||||
Profit for the period1 | 252,801 | NMF 3 | 509,104 | |||||||
Profit per share available to shareholders – basic | 1.66 | 3.32 | ||||||||
Profit per share available to shareholders - diluted | 1.37 | 2.60 | ||||||||
Dividends/distributions | 64,752 | 15% | 56,407 | |||||||
Base EBITDA2 | 105,564 | (29)% | 149,481 | |||||||
Base FFO2 | 65,730 | (34)% | 99,170 | |||||||
Payout ratio on Base FFO2 | 99% | 57% | ||||||||
Embedded gross margin2 | 1,956,000 | 4% | 1,873,500 | |||||||
Total RCEs | 4,114,000 | (3)% | 4,227,000 |
1 Profit includes the impact of unrealized gains (losses), which represents the mark to market of future commodity supply acquired to cover future customer demand. The supply has been sold to customers at fixed prices, minimizing any realizable impact of mark to market gains and losses.
2 See “Non-IFRS financial measures” on page 2 of the Q3’FY18 MD&A.
3 Not a meaningful figure.
“Our solid third quarter was highlighted by continued positive sales trends in both the Consumer and Commercial divisions, execution of our retail channel expansion strategy, and improved operational performance,” commented Just Energy’s Co-CEO, Deb Merril. “The strong customer trends continued as we have achieved gross and net customer addition improvements in each of the three quarters of fiscal 2018, and our attrition rates remain at historic lows. We believe these trends will continue as they demonstrate the importance of our trusted advisor strategy and our focused efforts to attract and retain ‘right fit’ customers that align with Just Energy’s product, channel and geographic growth strategy.”
“We are having great success in our retail channel expansion efforts and remain on track to achieve our goal of being present in 500 stores by fiscal year end. As part of that commitment, we are excited to announce that our largest retail partner, Sam’s Club, recently awarded Just Energy with 48 additional stores to add to our portfolio of stores across North America. This partnership exemplifies how Just Energy is expanding our channel opportunities to further reach potential residential customers looking to take control of their energy needs. Additionally, capitalizing on our ‘digital first’ strategy, Sam’s Club is our first retail partner where our web presence will be integrated, allowing Sam’s Club members to sign up for energy products through our Just Energy site.”
“We continue to make strategic growth investments to seed our new international operations, expand our retail sales channels, and further invest in product and geographic growth initiatives. Our underlying business performed well during the quarter as improved operational performance served to offset the growth investments and the effect of foreign exchange.”
Co-CEO, James Lewis added, “We are pleased with the positive customer trends we are delivering and remain confident we can continue to build on this momentum. We saw a decline in our renewal rate during the quarter, reflecting a very competitive consumer pricing environment. Just Energy remains steadfast in our focus on improving retained customers’ profitability rather than pursuing low margin growth in these market conditions.”
“Our product, channel and geographic expansion strategy remains on track. We continue to receive great customer reception and feedback around our growing suite of value-add products and long-term loyalty programs. In line with this feedback, our total customer count grew by nine percent during the quarter to 1.6 million customers. Our geographic expansion efforts remain on track outside of North America. During the quarter, we officially launched operations in Japan under the Just Energy brand in late November, marking Just Energy’s first expansion into Asia and our third new geographic launch outside of North America in the past twelve months.”
“We delivered a 79% year-over-year improvement in Base FFO during the quarter, resulting in a payout ratio on Base FFO of 57%."
Co-CEO, Deb Merril concluded, “Our strategy is beginning to deliver measurable results, and we continue to aggressively pursue additional growth opportunities while preserving the balance sheet. We are committed to maintaining our dividend, and we are confident we can deliver on our fiscal 2018 expectations while also setting the stage for prolonged, profitable growth on a global scale.”
Third Quarter Operating Performance
Photos accompanying this announcement are available at:
http://www.globenewswire.com/NewsRoom/AttachmentNg/403abffd-5548-40dc-908c-e788f9ad5954
http://www.globenewswire.com/NewsRoom/AttachmentNg/8545ada7-356a-45be-ad3f-ab29759a1a06
Annual gross margin per RCE | ||||||||||
Q3 Fiscal | Number of | Q3 Fiscal | Number of | |||||||
2018 | customers | 2017 | customers | |||||||
Consumer customers added and renewed | $ | 225 | 183,000 | $ | 222 | 205,000 | ||||
Consumer customers lost | 189 | 120,000 | 199 | 140,000 | ||||||
Commercial customers added and renewed1 | 73 | 239,000 | 82 | 229,000 | ||||||
Commercial customers lost | 77 | 157,000 | 81 | 154,000 | ||||||
1 Annual gross margin per RCE excludes margins from IEG and large commercial and industrial customers. | ||||||||||
Customer aggregation | ||||||||
RCE SUMMARY | ||||||||
Oct 1, | Failed to | Dec. 31, | % increase | Dec. 31, | % increase | |||
2017 | Additions | Attrition | renew | 2017 | (decrease) | 2016 | (decrease) | |
Consumer Energy | ||||||||
Gas | 627,000 | 26,000 | (25,000) | (11,000) | 617,000 | (2)% | 604,000 | 2% |
Electricity | 1,168,000 | 79,000 | (58,000) | (18,000) | 1,171,000 | - | 1,186,000 | (1)% |
Total Consumer RCEs | 1,795,000 | 105,000 | (83,000) | (29,000) | 1,788,000 | - | 1,790,000 | - |
Commercial Energy | ||||||||
Gas | 337,000 | 46,000 | (7,000) | (11,000) | 365,000 | 8% | 250,000 | 46% |
Electricity | 1,955,000 | 153,000 | (33,000) | (114,000) | 1,961,000 | - | 2,187,000 | (10)% |
Total Commercial RCEs | 2,292,000 | 199,000 | (40,000) | (125,000) | 2,326,000 | 1% | 2,437,000 | (5)% |
Total RCEs | 4,087,000 | 304,000 | (123,000) | (154,000) | 4,114,000 | 1% | 4,227,000 | (3)% |
Balance Sheet & Liquidity
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. The Company has recently completed a phase of internal transformation centered on repairing its balance sheet and overall debt structure, as well as improving the profitability profile of its customer base. Just Energy’s growth plans center on customer growth, geographic expansion, channel growth and enhancements, strategic acquisitions, and new products and structures.
Management reiterated its previously issued guidance of fiscal 2018 Base EBITDA in the range of $175 million to $190 million. These expectations reflect the impact of the significant one-time weather events in the second fiscal quarter, combined with the low commodity pricing environment and the Company’s efforts to improve profitability. To achieve profitability and optimize growth in the fourth fiscal quarter and beyond, Just Energy will:
In addition, management is actively engaged in and expects to complete the refinancing of its 2018 maturing debts in the near term.
The Company remains committed to its current dividend policy.
Earnings Call
The Company will host a conference call and live webcast to review the fiscal second quarter results beginning at 10:00 a.m. Eastern Standard Time on February 8th, 2018 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 1-877-300-9306 and ask to be joined into the Just Energy call. The call will also be webcast live over the internet at the following link:
https://www.webcaster4.com/Webcast/Page/1731/24344
An audio tape rebroadcast will be available starting one hour after the conference and will be available until February 15th, 2018. To access the rebroadcast please dial 1-877-344-7529 and use replay access code 10116461. The webcast will also be archived on the JE investor relations website for one year.
About Just Energy Group Inc.
Established in 1997, Just Energy 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, Germany, Ireland and Japan, Just Energy serves approximately 1.5 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, Tara Energy and terrapass. Visit justenergygroup.com to learn more. Also, find us on Facebook and follow us on Twitter.
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 www.sedar.com, on the U.S. Securities Exchange Commission’s website at www.sec.gov or through Just Energy's website at www.justenergygroup.com.
NON-IFRS MEASURES
The financial measure such as “EBITDA”, Base EBITDA, FFO, Base FFO, Base FFO Payout Ratio and Embedded Gross Margin do not have a standardized meaning prescribed by International Financial Reporting Standards (“IFRS”) and may not be comparable to similar measures presented by other companies. This financial measure should not be considered as an alternative to, or more meaningful than, net income (loss), cash flow from operating activities and other measures of financial performance as determined in accordance with IFRS, but the Company believes that this measure is useful in providing relative operational profitability of the Company’s business. Please refer to “Key Terms” in the Company’s management’s discussion and analysis of financial condition and results of operations of the Corporation for the three and nine months ended December 31, 2017 for the Company’s definition of “EBITDA” and other none-IFRS measures.
Neither the Toronto Stock Exchange nor the New York Stock Exchange has approved nor disapproved of the information contained herein.
FOR FURTHER INFORMATION PLEASE CONTACT:
Pat McCullough
Chief Financial Officer
Just Energy
713-933-0895
pmccullough@justenergy.com
or
Michael Cummings
Investor Relations
Alpha IR Group
617-461-1101
michael.cummings@alpha-ir.com