Just Energy Group Inc. (Canada) JENGQ

22FY Q2 Results Have a good read

[GaillardDeshaie]

Here is some results for the 22FY Q2 results...This company is getting back on the track..

Second Quarter FY 2022 Performance

• Base EBITDA decreased by 6% from the prior year comparable quarter to $30.9 million due to lower Base Gross Margin and increased investment in digital marketing and sales agent costs, partially offset by lower administrative, selling commission and bad debt expenses.

• Base Gross Margin decreased by 16% from the prior year comparable quarter to $116.6 million, with the decrease primarily driven by a lower customer base, unfavourable exchange rate fluctuations and resettlements related to prior periods.

• Mass Markets RCE Net Additions for the quarter totaled 9,000 compared to a loss of 55,000 for the three months ended September 30, 2020. Excluding the one–time 29,000 loss related to the regulatory changes in New York coming into effect in April 2021, Mass Markets RCE Net Additions for the six months ended September 30, 2021 was a positive 32,000.

• The Company ended the quarter with $200.0 million of total liquidity, comprised of cash and cash equivalents. The Company owes $158.4 million under its DIP facility and has $1,032.4 million of total liabilities subject to compromise.

• Profit from continuing operations was $326.0 million, compared to a loss from continuing operations of $51.4 million during the prior year comparable quarter primarily driven by unrealized mark to market gains on derivative financial instruments associated with supply contracts, as well as a $29.0 million gain on investment associated with the shares of ecobee Inc. held by the Company. Unrealized mark to market gains and losses on derivative financial instruments relate to the supply the Company has purchased to deliver future customer usage at fixed prices1.

1 See “Non-IFRS financial measures” in the MD&A.
 

Fiscal Second Quarter Financial Highlights:
For the three months ended September 30
$ in thousands, except customer data	Fiscal 2022	Fiscal 2021	Change
Sales	$704,769	$737,994	-5%
Base Gross Margin1	$116,577	$138,274	-16%
Base EBITDA1	$30,897	$32,774	-6%
Unlevered Free Cash Flow (Year to date)	$38,031	$53,146	-28%
Cash and cash equivalents	$199,952	$77,965	156%
RCE Mass Markets count	1,149,000	1,206,000	-5%
RCE Commercial count	1,661,000	1,880,000	-12%

Financial and operating highlights
For the three months ended September 30
(thousands of dollars, except where indicated)
				% increase
	Fiscal 2022			(decrease)				Fiscal 2021
Sales	$	704,769		(5	)%		$	737,994
Base Gross Margin1		116,577		(16	)%			138,274
Administrative expenses		37,181		(15	)%			43,957
Selling commission expenses		27,851		(20	)%			34,894
Selling non-commission and marketing expense		16,936		30	%			13,017
Bad debt expense		3,692		(68	)%			11,662
Reorganization Costs		18,577		NMF2				–
Finance costs		11,895		(60	)%			29,744
Profit (loss) for the period		326,049		NMF2				(51,366)
Base EBITDA1		30,897		(6	)%			32,774
RCE Mass Markets count		1,149,000		(5	)%			1,206,000
RCE Mass Markets net adds		9,000		NMF2				(55,000)
RCE Commercial count		1,661,000		(12	)%			1,880,000

1 See “Non-IFRS financial measures” in the MD&A.
2 Not a meaningful figure.

Balance sheet

(thousands of dollars)

	As at				As at
	9/30/2021				3/31/2021
Assets:
Cash and cash equivalents	$	199,952		$	215,989
Trade and other receivables, net		401,633			340,201
Total fair value of derivative financial assets		577,505			35,626
Other current assets		155,855			163,405
Total assets		1,733,538			1,091,806
Liabilities:
Trade and other payables	$	1,024,383		$	921,595
Total fair value of derivative financial liabilities		30,957			75,146
Total debt		630,849			655,740
Total liabilities		1,720,962			1,686,628

[navajojoe]

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[GaillardDeshaie]

Navajojoe, the Balance sheet is a picture AS AT: and you are right, actually there is no equity for shareholders.  However, if you look, just beside, AS AT: March 31st, just 6 months ago, the shareholders equity was (594,822$ million).  I do believe it is a major amelioration.  And I do believe, the stakeholders will continue to support this company.  They are going in the

[navajojoe]

This post has been removed in accordance with Community Policy

[GaillardDeshaie]

Yes, time will tell..but if you take time to look at LY 21FY Q2 and look at the numbers...JE is coming from a long and dark road.  Actually, this is the best pictures since many years so Mr. Gahn and management team are doing the right thing to save this company and save shareholders hope to recover their investment.  GLTA.  Gaillard.

[Capharnaum]

I'm not sure what you find so good about the current results. Gross margin is $81M which doesn't cover the cost of Admin, Sales, finance and other costs ($103M). If you add realized gains on derivative instruments on the gross margin and reorg costs to the other costs, results for Q2 were $9M. Most of the "gains" are due to the variation of the value of the derivative