U.S. Gas & Electric Announces Performance Milestones in Issuing Dividend

U.S. Gas & Electric, Inc. announced today that its board of directors declared a dividend of $4.0 million, to be distributed to its shareholders, as a result of achieving "significant performance milestones" which it reported.

"The dividend is attributable to the Company's underlying operating performance which has enabled it to consistently generate strong cash flows and pay down debt," the company said.

USG&E said that it has grown its customer base from less than 3,000 customers in 2005 to more than 200,000 customers in 2012.

USG&E anticipates EBITDA of $32 million for 2012

Key USG&E metrics for the last 12 months, ending August 2012, are:

Net Sales: $205.3 million

Gross Profit: $59.5 million

EBITDA: $29.7 million

Customers: 200,000

Data for these metrics for past years may be found here

"We are pleased to announce the first ever dividend to our shareholders and anticipate that with the continuation of earnings and free cash flow momentum, USG&E should be in a position to issue more regular dividends in the future," stated Puneet Sanan, Chairman of USG&E. "These results reflect great execution by USG&E's management team who have displayed sound business acumen, adhered to the Company's core strategy, built strong relationships with suppliers and customers, and fostered teamwork."

The amount and specific timing of any future dividends paid will be determined by USG&E's board of directors each quarter and must be permissible under its gas and electric supply credit documentation.