Spark Energy Reports Modest Decline in Earnings On Mild Weather, Hurricane Impacts
Expands Credit Facility
Sets Sight On Further International Expansion
November 2, 2017 Email This Story Copyright 2010-17 EnergyChoiceMatters.com
Reporting by Paul Ring • email@example.com
For the quarter ended September 30, 2017, Spark Energy, Inc. reported Adjusted EBITDA of $19.6 million compared to Adjusted EBITDA of $20.3 million for the quarter ended September 30, 2016.
This decrease of $0.7 million is primarily attributable to milder-than-expected weather, the effects of Hurricane Harvey, and fixed costs associated with a larger customer base, partially offset by larger overall volumes.
For the quarter ended September 30, 2017, Spark reported Retail Gross Margin of $50.6 million compared to Retail Gross Margin of $45.2 million for the quarter ended September 30, 2016. This increase of $5.3 million is primarily attributable to the increased volumes of retail electricity following the previously reported Verde and Perigee acquisitions, mitigated by milder-than-anticipated weather, lower unit margins in our retail electricity segment, and the effects of Hurricane Harvey.
Net income for the quarter ended September 30, 2017, was $12.9 million compared to net income of $6.8 million for the quarter ended September 30, 2016, primarily due to the increase in gross margin offset by higher general and administrative costs.
Spark said that its total RCE count increased 16% to a record 957,000 as of September 30, 2017. Overall monthly attrition was 4.2% for the third quarter
During the quarter, Spark increased the commitments on its credit facility by $30.0 million to $150.0 million. Spark also executed an amendment to the credit facility that allows the company to increase the credit facility to up to $200.0 million (via a new $50.0 million accordion)
"As we turn our attention to 2018 and beyond, we are looking to expand on the success we have had in our international joint venture in Japan by entering additional international markets in the same manner," said Nathan Kroeker, Spark Energy’s President and Chief Executive Officer.