Summer Energy Reports Compressed Unit Margins
November 15, 2018 Email This Story Copyright 2010-17 EnergyChoiceMatters.com
Reporting by Paul Ring • email@example.com
The following story is brought free of charge to readers byEC Infosystems, the exclusive EDI provider of EnergyChoiceMatters.com
In reporting quarterly earnings, Summer Energy Holdings, Inc., the parent of retail suppliers in Texas and the Northeast, reported compressed unit margins
For the three months ended September 30, 2018, Summer Energy Holdings gross profit totaled $1.3 million, versus $4.1 million a year ago
"The three months ended September 2018 compared to the three months ended September 2017 reflects a lower profit margin, which is a result of compressed unit margin caused by the competitive pressures in the marketplace, a customer base for the Company that has shifted towards a greater number of commercial accounts as opposed to residential accounts which yield lower unit margins as well as wholesale electricity prices elevated due to excessive heat during the summer months," Summer Energy Holdings said in a 10-Q
Summer Energy Holdings net loss was $5.3 million for the three months ended September, 2018, versus a loss of $0.2 million a year ago.
Summer Energy Holdings recorded $45 million in electricity revenue (versus $34.5 million a year ago) during the three months ended September 30, 2018, primarily from commercial customers, and from the addition of various long and short-term residential customers. "The majority of our revenue comes from the flow of electricity to customers. However, we also generated revenues from contract cancellation fees, disconnection fees and late fees of $866,485," Summer Energy Holdings said in a 10-Q
As it has said in prior quarters, Summer Energy Holdings said in a 10-Q that in addition to organic growth, "Management also plans to continue to acquire portfolios of commercial and residential customers when offered at reasonable prices."
"The Company has no present agreements or commitments with respect to any material acquisitions of other businesses, products, product rights or technologies. However, we will continue to evaluate acquisitions of and/or investments in products, technologies, or companies that complement our business and may make such acquisitions and/or investments in the future," Summer Energy Holdings said in a 10-Q