Parent of Retail Supplier Posts Higher Revenues

ONEnergy Inc., the parent of Sunwave Gas & Power Inc., posted higher revenue in the quarter ending March 31, 2015.

ONEnergy generated revenue of $6.3 million in Q1 2015, compared to $1.1 million for the same period in 2014 (all $ Canadian unless noted). U.S. operations contributed approximately $4.1 million (US$3.4 million) or 65% of Q1 2015 revenue, compared to 4% for the same period in 2014

The retail supply business represented 86% of Q1 2015 revenues compared to 100% in 2014, reflecting in the impact of increasingly diversified revenue streams from the Home Comfort and Energy Efficiency businesses.

"Continuing the strong progress made in 2014, our quarterly revenue of $6.3 million represents growth of 60% over the prior quarter, and growth of more than six times over the same quarter a year ago," said Mark Lewis, Chief Executive Officer of ONEnergy. "Our U.S. operations had exceptional customer growth through the winter months. Measured organic growth, combined with strategic acquisitions such as the recently acquired PVL Projects, is delivering strong results from our comprehensive energy management capabilities in Canada and the U.S."

Operating expenses, including customer acquisition costs of $0.2 million, were $1.8 million for the quarter, compared to $1.9 million in 2014

"In addition to strong customer growth, Gas & Power successfully reduced its customer acquisition costs during Q1 2015 through effective use of web-based sales channels," the company said.

Gross margin was $928,000 for the quarter ending March 31, 2015, versus $43,000 a year ago.

Adjusted EBITDA for the first quarter was negative $916,000, versus negative $1.9 million a year ago.

The total comprehensive loss was $1.6 million for Q1 2015 versus $1.4 million for Q1 2014, reflecting primarily higher finance costs