Bullboard - Stock Discussion Forum Enercare, Inc. CSUWF

Industrials Rental & Leasing Services

"EnerCare Inc is a provider of essential home and commercial services and energy solutions. The company offers rental services of water heaters, water treatment, furnaces, air conditioners, and other HVAC rental products. EnerCare is also in the business of plumbing, protection plans, and related services. The company operates in Canada and the United States of America."

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OTCPK:CSUWF - Post Discussion

Enercare, Inc. > TD

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Post by retiredcf on Mar 06, 2018 8:56am

TD

Maintain their $24.00 target. GLTA

Enercare Inc.

(ECI-T) C$18.00

Q4/17 First Look Event

Enercare reported Q4/17 revenue of $312.3mm (up 7% y/y), in line with our estimate of $310.9mm and consensus of $308.7mm.
Adjusted EBITDA for the quarter was $74.1mm (down 2% y/y), in line with our estimate of $74.3mm but below consensus of $77.4mm.
Enercare announced a 4% increase in its dividend to $1.00/share, from $0.96/ share previously.
10:00 a.m. ET conference call (647-427-7450 or 1-888-231-8191).

Impact: MIXED

While results in the quarter were in line with our forecast, they fell slightly below consensus estimates. However, we believe that the overall outlook for Enercare remains positive and little changed following the quarterly results and that the company's serial dividend raises are reflective of its growth outlook.
In Home Services, Enercare added 10,000 rental units in the quarter (down 9% y/y), versus 7,700 units lost to attrition (down 7% y/y), resulting in net rental unit growth of ~2,300 units. The company also added ~3,000 net protection plans in the quarter, while HVAC originations (excluding Service Experts) in Q4/17 decreased by 2% y/y as warmer weather y/y and fewer discounts and promotional offers y/y reduced demand. In January 2018, Enercare increased its average rental rate for waterheaters by 3.1% and HVAC by 1.8%.
At Service Experts, HVAC and waterheater originations in Q4/17 increased by 21% y/y, with the business benefiting from cooler y/y weather in the Southern, Western, and Central regions of the U.S. Rental mix appears in line with recent quarters, but the company noted that "certain aspects of the [rental] program were enhanced" in Q4/17. Enercare's goal is to have the HVAC rental program available in most of its U.S. operations by Q4/18. Additionally, management remains active on tuck-in acquisitions in the segment, having completed three acquisitions in 2017 and two already in Q1/18.
In Sub-metering, contracted units increased by 11% y/y in Q4/17, installed units increased by 11% y/y, and billable units increased by 12% y/y. Management continues to expand its commercial sub-metering program, having signed 12 customers to date (4 additional customers signed in Q4/17).
Enercare continues to work toward a controlled launch of its smart home product offering in H1/18