Enercare, Inc. CSUWF

RE:Enercare Reports Strong Growth for the Year Ended December 3

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Enercare Reports Strong Growth For The Year Ended December 31, 2017 And Announces A 4% Dividend Increase

Tuesday, March 06, 2018

 

Enercare Reports Strong Growth for the Year Ended December 31, 2017 and Announces a 4% Dividend Increase

07:00 EST Tuesday, March 06, 2018

TORONTO, March 6, 2018 /CNW/ - Enercare Inc. ("Enercare") (TSX: ECI), one of North America's leading providers of essential home and commercial services and energy solutions, reported its financial results for the fourth quarter and fiscal year ended December 31, 2017.

"2017 was another successful year for Enercare. We increased revenue and EBITDA, driven by strong operational performance, and the synergies from the Service Experts acquisition exceeded our expectations," said John Macdonald, President and Chief Executive Officer. "In 2018, we will continue to focus on growth and invest in technology and innovation, while remaining committed to returning capital to our shareholders."
 

• Enercare announced an increase in its monthly dividend to $0.0832 per Share, an increase of approximately 4%, effective in respect of the dividend payable to shareholders of record on the applicable date in April 2018. The increase reflects Enercare's strong overall performance and our confidence in the future of the Enercare Home Services, Service Experts and Sub-metering businesses.

 

Fourth Quarter and Full Year 2017 Highlights

• Total Revenue for the fourth quarter was $312 million, an increase of $19 million, or 7% compared to the same period in 2016, and $1.3 billion for 2017, an increase of $262 million, or 26%.
• EBITDA was $73 million for the fourth quarter, an increase of 3% compared to $71 million in 2016, and $280 million for 2017, an increase of $14 million or 5%.
• Enercare Home Services had net rental unit growth of 2,000, the tenth consecutive quarter of net growth in rental units, and 8,000 net unit growth for 2017.
• Sub-metering increased contracted units by 10,000 for the fourth quarter and 26,000 for 2017.
• Service Experts increased heating, ventilation and air conditioning ("HVAC") and water heater originations by 21% in the fourth quarter, and 14% for 2017.
• Delivered annualized synergies target of 9 cents per common shares of Enercare ("Shares"), exceeding the original target estimated to be in the 5-8 cent per Share range.

 

• Enercare is targeting a range of between $185 million and $207 million in capital investments in 2018, primarily reflecting higher unit costs due to higher value product originations, higher sales volumes and higher corporate spending on platforms for innovation and growth to enable future product offerings, including its smarter home offering.