Flash: Organic Customer Growth Rises at Just Energy

In reporting earnings this morning, Just Energy said that its customer count, in terms of long-term customer aggregation, stood at 3.758 million Residential Customer Equivalents (RCEs).

This represents net growth of 355,000 RCEs from the October 1, 2011 total of 3.403 million RCEs. RCEs as of December 31, 2010 were 3.241 million.

The net growth of 355,000 RCEs was primarily driven by the 240,000 customers acquired from the Fulcrum retail businesses, effective October 1, 2011. However, the balance of 115,000 RCEs in net growth, unrelated to the Fulcrum acquisition, is more than double the net growth of about 45,000 RCEs recorded in each of the prior two sequential quarters.

Gross organic customer additions for the quarter ending December 31, 2011 were 310,000 RCEs, versus 238,000 in the quarter ending September 30, 2011, and 252,000 in the quarter ending December 31, 2010.

From October 1, 2011 to December 31, 2011, Just Energy reported attrition of 118,000 RCEs, and 77,000 RCEs which failed to renew.

U.S. electric RCEs as of December 31, 2011 were 1.943 million, versus 1.548 million as of October 1, 2011 and 1.252 million as of December 31, 2010.

U.S. natural gas RCEs as of December 31, 2011 were 566,000, versus 570,000 as of October 1, 2011 and 571,000 as of December 31, 2010.

From October 1, 2011 to December 31, 2011, gross "consumer" customer additions (mass market) amounted to 112,000 RCEs, versus 84,000 from July 1, 2011 to September 30, 2011.

Just Energy said that it continues to diversify its sales platform beyond door-to-door sales to include the Momentis networking marketing channel, telesales, and online marketing channels.

Just Energy also said that it responded to the current price environment with a change in product offerings to include variable-based products.

Gross commercial additions from October 1, 2011 to December 31, 2011 were 198,000 RCEs, versus 154,000 from July 1, 2011 to September 30, 2011.

"The broker sales channel continues to expand across Just Energy's existing markets. Commercial additions, which consists of customers representing 15 RCEs or higher, will fluctuate quarterly depending on the size of the contracts signed," Just Energy said.

For the quarter, Just Energy reported Adjusted EBITDA of $88.5 million, versus $76.8 million a year ago (all figures Canadian).

On a GAAP basis, which reflects various unrealized impacts from hedging, Just Energy reported a quarterly loss of $97.4 million, versus net income of $178.5 million a year ago.

Just Energy is holding an earnings conference call this afternoon, additional details will follow tomorrow.