UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_________________
FORM
_________________
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
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Securities registered pursuant to Section 12(b) of the Act: None
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
On November 29, 2022, Just Energy Group Inc. (the “Company”) issued a press release regarding the Company’s results for the three months ended September 30, 2022. The press release is furnished as Exhibit 99.1 hereto and is incorporated herein by reference.
The information in this Item 2.02, including Exhibit 99.1 attached hereto, is being furnished and shall not be deemed “filed” for purposes of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such a filing.
(d) Exhibits
| Exhibit Number | Description | |
| 99.1 | Press Release dated November 29, 2022 | |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Just Energy Group Inc. | ||
| Date: November 29, 2022 | By: | /s/ Michael Carter |
| Michael Carter | ||
| Chief Financial Office | ||
EXHIBIT 99.1
Just Energy Reports Fiscal Second Quarter 2023 Results
TORONTO, Nov. 29, 2022 (GLOBE NEWSWIRE) -- Just Energy Group Inc. (“Just Energy” or the “Company”) (NEX:JE.H; OTC:JENGQ), a retail energy provider specializing in electricity and natural gas commodities and bringing energy efficient solutions, carbon offsets and renewable energy options to customers, today announced its second quarter results for fiscal year 2023.
Recent Developments
On October 17, 2022, the Company announced that the transaction (the “Transaction”) contemplated by the stalking horse transaction agreement entered into on August 4, 2022 (as amended from time to time, the “Transaction Agreement”) among Just Energy and the lenders under the Company’s debtor-in-possession financing facility, one of their affiliates and the holder of certain assigned secured claims (collectively, the “Purchaser”) was the successful bid pursuant to the previously announced sale and investment solicitation process (the “SISP”). On November 3, 2022, the Ontario Superior Court of Justice (Commercial List) issued an order (the “Reverse Vesting Order”) that approved the Transaction contemplated by the Transaction Agreement. For details on the Transaction or the Transaction Agreement, please visit: https://investors.justenergy.com or the website of FTI Consulting Canada Inc., the monitor for the Just Energy entities under the CCAA proceedings, at http://cfcanada.fticonsulting.com/justenergy.
Second Quarter FY 2023 Performance
The Company’s second fiscal quarter 2023 results and prior comparable periods are expressed in US dollars. As of March 31, 2022, the Company is considered a domestic filer instead of a foreign private issuer as defined by the Securities Exchange Commission, and now is required to prepare its consolidated financial statements in accordance with U.S. GAAP.
1 See “Non-U.S. GAAP financial measures” in the MD&A.
| Fiscal Second Quarter Financial Highlights: | |||
| For the three months ended September 30 | |||
| $ in thousands, except customer data | Fiscal 2023 | Fiscal 2022 | Change |
| Revenue | $684,968 | $559,382 | 22% |
| Base Gross Margin1 | $113,569 | $92,442 | 23% |
| Base EBITDA1 | $32,143 | $24,459 | 31% |
| Cash and cash equivalents | $182,016 | $157,778 | 15% |
| RCE Mass Markets count | 1,266,000 | 1,149,000 | 10% |
| RCE Mass Market net adds for the quarter | 27,000 | 9,000 | 200% |
| RCE Commercial count | 1,530,000 | 1,661,000 | (8)% |
| 1 See “Non-U.S. GAAP financial measures” in the MD&A. | |||
| Fiscal Second Quarter Expense Detail: | |||||||||
| For the three months ended September 30 | |||||||||
| ($ thousands) | Fiscal 2023 | Fiscal 2022 | Change | ||||||
| Administrative expenses | $29,934 | $29,816 | 0% | ||||||
| Selling commission expenses | $21,132 | $22,102 | (4)% | ||||||
| Selling non-commission and marketing expense | $14,111 | $13,436 | 5% | ||||||
| Provision for expected credit loss | $16,756 | $2,945 | 469% | ||||||
Mass Markets Segment Performance
| Operating Highlights: | ||||||
| For the three months ended September 30 | ||||||
| Fiscal 2023 | Fiscal 2022 | Change | ||||
| Mass Markets gross margin on added/renewed | $345/RCE | $211/RCE | 64% | |||
| Embedded Gross Margin1 ($ millions) | $872.1 | $826.3 | 6% | |||
| Total gross Mass Markets (RCE) additions | 27,000 | 9,000 | 200% | |||
| Attrition (trailing 12 months) | 17% | 18% | (6)% | |||
| Renewals (trailing 12 months) | 81% | 77% | 5% | |||
| 1See “Non–U.S. GAAP financial measures” in the MD&A | ||||||
Mass Markets RCE Summary:
| 7/1/2022 | Additions | Attrition | Failed to renew | 9/30/2022 | Change | |
| Gas | 233,000 | 10,000 | (8,000) | (5,000) | 230,000 | (1)% |
| Electricity | 1,006,000 | 107,000 | (54,000) | (23,000) | 1,036,000 | 3% |
| Total Mass Markets RCEs | 1,239,000 | 117,000 | (62,000) | (28,000) | 1,266,000 | 2% |
Commercial Segment Performance
| Operating Highlights: | |||||||
| For the three months ended September 30 | |||||||
| Fiscal 2023 | Fiscal 2022 | Change | |||||
| Commercial gross margin on added/renewed | $91/RCE | $70/RCE | 30% | ||||
| Embedded Gross Margin1 ($ millions) | $237.2 | $265.5 | (11)% | ||||
| Attrition (trailing 12 months) | 11% | 8% | 38% | ||||
| Renewals (trailing 12 months) | 41% | 49% | (16)% | ||||
| 1See “Non-U.S. GAAP financial measures” in the MD&A | |||||||
Commercial RCE Summary:
| 7/1/2022 | Additions | Attrition | Failed to renew | 9/30/2022 | Change | |
| Gas | 368,000 | 12,000 | (6,000) | (1,000) | 373,000 | 1% |
| Electricity | 1,143,000 | 63,000 | (23,000) | (26,000) | 1,157,000 | 1% |
| Total Commercial RCEs | 1,511,000 | 75,000 | (29,000) | (27,000) | 1,530,000 | 1% |
About Just Energy Group Inc.
Just Energy is a retail energy provider specializing in electricity and natural gas commodities and bringing energy efficient solutions, carbon offsets and renewable energy options to customers. Operating in the United States and Canada, Just Energy serves residential and commercial customers. Just Energy is the parent company of Amigo Energy, Filter Group, Hudson Energy, Interactive Energy Group, Tara Energy, and Terrapass. Visit https://investors.justenergy.com to learn more.
FORWARD-LOOKING STATEMENTS
This press release may contain forward-looking statements, including, without limitation, statements with respect to the Transaction. These statements are based on current expectations that involve several risks and uncertainties which could cause actual results to differ from those anticipated. These risks include consummation of the Transaction and the anticipated results thereof; satisfaction of the conditions precedent to consummation of the Transaction, including approval thereof by the Houston Court and receipt of all required regulatory approvals; the ability of the Just Energy Entities to continue as a going concern following consummation of the Transaction; the outcome of any potential litigation with respect to the February 2021 extreme weather event in Texas; the outcome of any invoice dispute with the Electric Reliability Council of Texas, Inc.; the impact of the COVID-19 pandemic on the Company’s business, operations and sales; the Company’s ability to access sufficient capital to provide liquidity to manage its cash flow requirements; general economic, business and market conditions; the ability of management to execute its business plan; levels of customer natural gas and electricity consumption; extreme weather conditions; rates of customer additions and renewals; customer credit risk; rates of customer attrition; fluctuations in natural gas and electricity prices; interest and exchange rates; actions taken by governmental authorities including energy marketing regulation; increases in taxes and changes in government regulations and incentive programs; changes in regulatory regimes; results of litigation and decisions by regulatory authorities; competition; and dependence on certain suppliers. Additional information on these and other factors that could affect Just Energy’s operations or financial results are included in Just Energy’s Form 10K and other reports on file with the U.S. Securities and Exchange Commission which can be accessed at www.sec.gov and with the Canadian securities regulatory authorities which can be accessed through the SEDAR website at www.sedar.com or through Just Energy’s website at investors.justenergy.com.
NON-U.S. GAAP FINANCIAL MEASURES
The financial measures such as “EBITDA”, “Base EBITDA”, “Base Gross Margin”, “Free Cash Flow”, “Unlevered Free Cash Flow” and “Embedded Gross Margin” do not have a standardized meaning prescribed by U.S. Generally Accepted Accounting Principles (“U.S. GAAP”) and may not be comparable to similar measures presented by other companies. This financial measure should not be considered as an alternative to, or more meaningful than, net income (loss), cash flow from operating activities and other measures of financial performance as determined in accordance with U.S. GAAP, but the Company believes that these measures are useful in providing relative operational profitability of the Company’s business. Please refer to “Non-U.S. GAAP financial measures in the Just Energy Full Fiscal Year 2022’s Management’s Discussion and Analysis for the Company’s definition of “EBITDA” and other non-U.S. GAAP measures.
FOR FURTHER INFORMATION PLEASE CONTACT:
Michael Carter
Chief Financial Officer
Just Energy
Phone: (905) 670-4440
mcarter@justenergy.com
or
Investors
Michael Cummings
Alpha IR
Phone: (617) 982-0475
JE@alpha-ir.com
Monitor
FTI Consulting Inc.
Phone: 416-649-8127 or 1-844-669-6340
justenergy@fticonsulting.com
Media
Boyd Erman
Longview Communications
Phone: 416-523-5885
berman@longviewcomms.ca
Source: Just Energy Group Inc.
Supplemental Tables:
Financial and operating highlights
For the three months ended September 30
(thousands of dollars, except where indicated and per share amounts)
| % increase | |||||||||||
| Fiscal 2023 | (decrease) | Fiscal 2022 | |||||||||
| Revenue | $ | 684,968 | 22 | % | $ | 559,382 | |||||
| Base Gross Margin1 | 113,569 | 23 | % | 92,442 | |||||||
| Administrative expenses | 29,934 | 0 | % | 29,816 | |||||||
| Selling commission expenses | 21,132 | (4 | ) | % | 22,102 | ||||||
| Selling non-commission and marketing expense | 14,111 | 5 | % | 13,436 | |||||||
| Provision for expected credit loss | 16,756 | 469 | % | 2,945 | |||||||
| Reorganization Costs | 26,951 | 83 | % | 14,746 | |||||||
| Interest expense | 8,921 | 15 | % | 7,754 | |||||||
| Income (Loss) for the period | (205,617 | ) | NMF | 2 | 265,081 | ||||||
| Base EBITDA1 | 32,143 | 31 | % | 24,459 | |||||||
| RCE Mass Markets count | 1,266,000 | 10 | % | 1,149,000 | |||||||
| RCE Mass Markets net adds | 27,000 | 200 | % | 9,000 | |||||||
| RCE Commercial count | 1,530,000 | (8 | ) | % | 1,661,000 | ||||||
1 See “Non–U.S. GAAP financial measures” above.
2 Not a meaningful figure.
Balance Sheet
| (thousands of dollars) | As at | As at | |||||
| September 30, | March 31, | ||||||
| 2022 | 2022 | ||||||
| Assets: | |||||||
| Cash and cash equivalents | $ | 182,016 | $ | 125,755 | |||
| Trade and other receivables, net | 354,992 | 308,941 | |||||
| Total fair value of derivative instrument assets | 635,225 | 671,714 | |||||
| Other current assets | 149,329 | 131,570 | |||||
| Total assets | 1,600,062 | 1,623,814 | |||||
| Liabilities: | |||||||
| Trade and other payables | $ | 401,569 | $ | 349,923 | |||
| Total fair value of derivative instrument liabilities | 68,735 | 26,086 | |||||
| Total debt | 55,386 | 126,419 | |||||
| Total liabilities | 1,463,707 | 1,429,613 | |||||
Summary of Cash Flows
For the six months ended September 30
(thousands of dollars)
| Fiscal 2023 | Fiscal 2022 | |||||||
| Operating activities from continuing operations | $ | 137,797 | $ | 20,703 | ||||
| Investing activities from continuing operations | (6,384 | ) | (3,817 | ) | ||||
| Financing activities from continuing operations | (72,136 | ) | (28,967 | ) | ||||
| Effect of foreign currency translation | (3,357 | ) | (231 | ) | ||||
| Increase (decrease) in cash | 55,920 | (12,312 | ) | |||||
| Cash and cash equivalents – beginning of period | 128,491 | 172,666 | ||||||
| Cash and cash equivalents – end of period | $ | 184,411 | $ | 160,354 |
Cover |
Nov. 29, 2022 |
|---|---|
| Cover [Abstract] | |
| Document Type | 8-K |
| Amendment Flag | false |
| Document Period End Date | Nov. 29, 2022 |
| Entity File Number | 001-35400 |
| Entity Registrant Name | Just Energy Group Inc. |
| Entity Central Index Key | 0001538789 |
| Entity Incorporation, State or Country Code | Z4 |
| Entity Address, Address Line One | 100 King Street West, Suite 2630 |
| Entity Address, City or Town | Toronto |
| Entity Address, State or Province | ON |
| Entity Address, Postal Zip Code | M5X 1E1 |
| City Area Code | 905 |
| Local Phone Number | 795-4206 |
| Written Communications | false |
| Soliciting Material | false |
| Pre-commencement Tender Offer | false |
| Pre-commencement Issuer Tender Offer | false |
| Entity Emerging Growth Company | false |
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