Just Energy Reports Higher Earnings

Just Energy Group Inc. reported higher Adjusted EBITDA of $78.2 million for the quarter ending December 31, 2010 (third fiscal quarter), versus $60.6 million a year ago (all figures Canadian).

Net income, which includes the unrealized impacts of hedging, was higher at $217.4 million versus $97.4 million.

Seasonally adjusted gross margin was higher at $132.2 million versus $121.7 million. The increase reflects the acquisition of Hudson Energy Services as well as organic growth.

Long-term Just Energy customers (on a Residential Customer Equivalent basis) as of December 31, 2010 were 3.241 million, versus 3.161 million as of October 1, 2010 and 2.280 million as of December 31, 2009. The total as of December 31, 2010 excludes 41,000 customers on variable or short-term products.

The net, organic addition of 80,000 customers versus October 1, 2010 was achieved through gross additions of 252,000 customers. Net additions for the quarter ending September 30, 2010 were 92,000, while Just Energy reported 13,000 net customer additions from October 1, 2009 through December 31, 2009.

Of the total gross customers added in the 2010 quarter, 136,000 were commercial customers, reflecting Just Energy's increasing emphasis on that side of the business.

Commercial customers now represent approximately 40% of Just Energy's total customer base.

Just Energy's growth was nearly entirely in the U.S. during the quarter.

A breakdown of customers by region can be found on Page 19 of Just Energy's Management's Discussion And Analysis. The MD&A also includes information on attrition, renewals, gross margin per customer and bad debt typically excerpted by Matters, but coverage of other stories yesterday prevented a full analysis by press time.

Average gross margin per U.S. customer for electricity during the 2010 quarter decreased to $160/RCE, compared to $213/RCE in the prior year comparable period, as a result of a lower U.S. dollar exchange rate and lower margins per RCE for commercial customers added.