Crius Energy Sees Continued Customer Growth in Q4, To End "Statement" Year of Customer, Profitability Growth

Crius Energy saw continued customer growth during the quarter ending December 31, 2015, capping off what the company called a, "statement year" for Crius Energy as it, "delivered material growth in customers and profitability, each up more than 35% year-over-year."

Crius Energy was serving 819,000 Residential Customer Equivalents (RCEs) as of December 31, 2015, versus 799,000 RCEs as of September 30, 2015 and 569,000 RCEs a year ago.

The net growth of 20,000 RCEs from September 30, 2015 to December 31, 2015 compares to net growth of 9,000 RCEs from June 30, 2015 to September 30, 2015

Gross customer additions from September 30, 2015 to December 31, 2015 were 98,000 RCEs. Crius also reported a decrease of gross customer drops during the three months ended December 31, 2015, due to the transition of the customer portfolio to more fixed-price contracts and commercial customers

Crius said that it continues to make progress expanding the footprint for marketing electricity and natural gas products under the Comcast Energy Rewards brand name. In addition to offering electricity and natural gas service in California, Illinois, Pennsylvania, New Jersey, and Texas, Crius plans to expand Comcast Energy Rewards licensing into key markets, with the priority in 2016 being Connecticut, Maryland, and Massachusetts. Crius remains on schedule to have access to all Comcast subscribers in deregulated energy markets by the end of 2016.

Crius also said that Viridian Energy would enter the California natural gas market in the first half of 2016.

Crius said that it is actively increasing its presence in the U.S. market by expanding its brands and channels, with licensing activities currently underway in Delaware, Georgia, Maryland, Massachusetts, Michigan, and New Hampshire

More specifically, Crius has filed for and is actively seeking licenses in the following markets.

• Delaware: Comcast Energy Rewards (Electric)

• Georgia: Comcast Energy Rewards (Natural Gas)

• Maryland: Comcast Energy Rewards (Electric, Natural Gas) • Massachusetts: Comcast Energy Rewards (Electric, Natural Gas), Public Power (Electric), Viridian Energy (Natural Gas)

• Michigan: Comcast Energy Rewards (Natural Gas), Viridian Energy (Natural Gas)

• New Hampshire: Comcast Energy Rewards (Electric), Viridian Energy (Electric)

Additionally, regarding Viridian Energy's previously reported entry into the Australian retail market, Crius said that the initial investment to enter the market is expected to be approximately $2.0 million in 2016, and Crius does not expect any contribution to EBITDA until 2017 and beyond. Crius said that Australia has a large addressable market of more than six million households, "and with low market penetration rates, offering a first-mover advantage for Crius Energy’s sustainability-focused brand, Viridian Energy."

Crius said that inorganic acquisitions, "remain a core growth strategy for Crius Energy."

"The Company continues to evaluate multiple acquisition opportunities and sees market conditions for consolidation in the United States improving. We have recently experienced, increased competition for the acquisition of retail energy assets, and will continue to employ a disciplined strategy in evaluating potential transactions," Crius said

After adjusting for the one-time impact of the change in the application of the company's accounting policy for the recognition of solar revenue, Crius Energy Trust achieved adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA") of $13.2 million during the quarter ending December 31, 2015, compared to $14.4 million a year ago

For the year 2015, Adjusted EBITDA was $52.6 million, versus $38.5 million in 2014

In the fourth quarter of 2015, revenue was $147.5 million, representing an increase of 9.8% from $134.3 million in the fourth quarter of 2014. For the year 2015, revenue was $686.3 million, representing an increase of 14.3% from $600.5 million in 2014

For the three month period ended December 31, 2015, gross margin was $35.5 million, representing a decrease of 7.1% from $38.2 million for the three month period ended December 31, 2014, due to the impact of milder winter temperatures

Gross margin for the year 2015 was $163.7 million, 27.0% greater than $128.9 million in 2014. As a percentage of total revenue, gross margin was 23.9% in 2015, an increase over the 21.5% in 2014. The increase in gross margin as a percentage of revenue was primarily a result of broadly consistent year-over-year electric unit gross margins in a lower energy price environment in 2015. Overall gross margin benefited from increased average customer numbers resulting from organic customer additions and the TriEagle acquisition.