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Just Energy Posts Fourth Consecutive Quarter Of Net Mass Market Growth; Base EBITDA & Base Gross Margin Increase
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Just Energy reported fiscal results for the quarter ending June 30, 2022 (first fiscal quarter of FY 2023)
In its commodity business, Just Energy had 2,742,000 RCEs as of June 30, 2022, down from 2,755,000 RCEs as of March 31, 2022
At June 30, 2022, in the commodity business, Just Energy had 1,244,000 Mass Markets RCEs, up from 1,201,000 as of April 1, 2022.
The approximately 43,000 RCE net growth in commodity Mass Markets RCEs from March 31, 2022 to June 30, 2022 is up from the 27,000 RCE net growth in commodity Mass Markets RCEs from December 31, 2021 to March 31, 2022; the net growth of 24,000 mass market RCEs from October 1, 2021 to December 31, 2021; and the net growth of 9,000 mass market RCEs from July 1, 2021 to September 30, 2021
Gross additions of Mass Markets RCEs from April 1, 2022 to June 30, 2022 increased by 72% to 139,000, compared to 81,000 for the
three months ended June 30, 2021. The increase is driven by investment in digital marketing, as well as continued improvement in
direct face-to-face channels, Just Energy said
Mass Markets RCE attrition increased by 8% to 68,000 for the three months ended June 30, 2022 as compared to 63,000 for the
three months ended June 30, 2021. The decrease was due to the impacts of regulatory constraints in New York requiring certain
customers to be dropped to the utility in the three months ended June 30, 2021.
The mass markets attrition rate for the trailing twelve months ended June 30, 2022 decreased by two percentage points to 16%
compared to the 18% for the twelve months ended June 30, 2021 which was impacted by regulatory constraints in New York requiring
certain customers to be dropped to the utility. The mass markets attrition rate for the three months ended June 30, 2022 decreased by two percentage points to 4% compared to
6% for the three months ended June 30, 2021 which was impacted by regulatory constraints in New York requiring certain
customers to be dropped to the utility.
Mass markets failed to renew RCEs increased by 17% to 28,000 for the three months ended June 30, 2022 compared to 24,000 for
the three months ended June 30, 2021.
As of June 30, 2022, Just Energy's U.S. and Canadian operations accounted for 88% and 12% of the mass markets RCE base, respectively.
For the three months ended June 30, 2022, the mass markets average gross margin per RCE for the customers added or renewed
was $280/RCE, an increase of 44% from $195/RCE for the three months ended June 30, 2021 due to change in channel strategy and
channel mix.
Mass markets average acquisition cost decreased by 5% to $161/RCE for the trailing twelve months ended June 30, 2022 compared
to $170/RCE reported for the twelve months ended June 30, 2021, due to a change in channel mix towards lower cost channels.
At June 30, 2022, in the commodity business, Just Energy had 1,498,000 Commercial RCEs, down from 1,554,000 as of April 1, 2022
Commercial RCE gross additions increased by 137% to 102,000 for the three months ended June 30, 2022 compared to 43,000 for the
three months ended June 30, 2021.
Commercial RCE attrition increased by 196% to 71,000 for the three months ended June 30,2022 compared to 24,000 for the
three months ended June 30, 2021.
Commercial Failed to renew RCEs decreased by 22% to 87,000 RCEs for the three months ended June 30, 2022 compared to
112,000 RCEs for the three months ended June 30, 2021.
For the three months ended June 30, 2022, the commercial average gross margin per RCE for the customers added or renewed
was $86/RCE, up from $70/RCE for the three months ended June 30, 2021
Commercial average customer acquisition cost increased by 29% to $45/RCE for the trailing twelve months ended June 30, 2022
compared to $35/RCE for the twelve months ended June 30, 2021. The increase is consistent with the increase in average gross
margin per RCE for Commercial adds and renewals.
Just Energy Base EBITDA increased by 9% to $20.5 million for the three months ended June 30, 2022 compared to $18.8 million for the
three months ended June 30, 2021. The increase was primarily driven by higher Base Gross Margin offset by higher provision for
expected credit loss and administrative expenses.
Provision for expected credit loss increased by 72% to $10.5 million for the three months ended June 30, 2022 compared to
$6.1 million for the three months ended June 30, 2021. The increase was driven from the higher revenues in the Texas mass market.
Mass Markets segment Base EBITDA was flat at $28.6 million for the three months ended June 30, 2022 compared to $28.4 million
for the three months ended June 30, 2021. Higher Base Gross Margin was offset by a higher provision for expected credit losses and
selling costs.
Commercial segment Base EBITDA increased by 107% to $8.7 million for the three months ended June 30, 2022 compared to
$4.2 million for the three months ended June 30, 2021. The increase was primarily driven by higher Base Gross Margin.
Base Gross Margin increased by 11% to $90.4 million for the three months ended June 30, 2022 compared to $81.1 million for the
three months ended June 30, 2021. The increase was primarily driven by higher mass market volumes due to increase in customer
base and weather partially offset by lower average realized mass market Base Gross Margins.
Mass Markets Base Gross Margin increased by 11% to $67.9 million for the three months ended June 30, 2022 compared to
$61.1 million for the three months ended June 30, 2021. The increase was primarily driven by higher volumes due to increase in
customer base and weather partially offset by lower average realized Base Gross Margins.
Commercial Base Gross Margin increased by 12% to $22.4 million for the three months ended June 30, 2022 compared to
$20.0 million for the three months ended June 30, 2021. The increase was primarily driven by higher average realized Base Gross
Margins partially offset by lower customer base.
Revenue increased by 15% to $570.6 million for the three months ended June 30, 2022 compared to $496.4 million for the
three months ended June 30, 2021. The increase was primarily driven by an increase in the Texas mass market customer base and
warmer weather in Texas.
Selling non-commission and marketing expenses increased by 14% to $13.4 million for the three months ended June 30, 2022
compared to $11.7 million for the three months ended June 30, 2021. The increase was driven by investment in sales agent costs to
drive customer additions and retention.
Just Energy said that the Company ended the quarter with $221.0 million of total liquidity, comprised of cash and cash equivalents.
Just Energy said that it owes $125.0 million under its DIP facility and has $847.2 million of total liabilities subject to compromise.
Of all mass market customers who
contracted with Just Energy in the past year, 38% purchased JustGreen for some or all of their energy needs. On average, these
customers elected to purchase 96% of their consumption as green supply. For comparison, as reported for the trailing 12 months
ended June 30, 2021, 38% of Mass Market customers who contracted with Just Energy chose to include JustGreen for an average of
93% of their consumption. As at June 30, 2022, JustGreen makes up 24% of the Mass Market electricity portfolio, compared to
25% in the year ago period. JustGreen makes up 25% of the Mass Market gas portfolio, compared to 13% in the year ago period.
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August 30, 2022
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Copyright 2010-21 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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