Spark Energy, Inc. Reports First Quarter 2019 Financial Results

July, 19, 2019

Key Highlights

  • Achieved $25.1 million in Adjusted EBITDA, $56.6 million in Retail Gross Margin, and a $2.7 million in Net Income for the first quarter
  • Total RCE count of 865,000 as of March 31, 2019
  • Continued optimization of large C&I portfolio, resulting in average monthly attrition of 5.4%
  • Winter hedging strategy performed extremely well
  • Successful ramp-up of organic customer acquisition

"We had a strong first quarter, with improved margins that were protected from extreme weather by our winter hedging strategy," said Nathan Kroeker, Spark Energy's President and Chief Executive Officer. "We integrated the Starion acquisition and are nearing completion of our brand and platform consolidation efforts.

"The significant year-over-year increase in unit margins from last winter to this winter was the result of a deliberate strategy that we implemented after last year's bomb cyclone to strengthen our hedging strategy, reduce our exposure to larger commercial customers, and refocus on higher-margin customers. We also achieved year-over-year improvements in G&A, and we expect to continue to see improvement each quarter for the rest of 2019."

Summary First Quarter 2019 Financial Results

For the quarter ended March 31, 2019, Spark reported Adjusted EBITDA of $25.1 million compared to Adjusted EBITDA of $15.9 million for the quarter ended March 31, 2018. This increase of $9.2 million was driven by higher Retail Gross Margin.

For the quarter ended March 31, 2019, Spark reported Retail Gross Margin of $56.6 million compared to Retail Gross Margin of $45.7 million for the quarter ended March 31, 2018. This increase of $10.9 million was primarily attributable to increased electricity and gas unit margins, partially offset by decreased electricity and natural gas volumes.

Net income for the quarter ended March 31, 2019, was $2.7 million compared to net loss of $41.8 million for the quarter ended March 31, 2018. The increase in performance compared to the prior year was primarily the result of decreased retail cost of revenues. Read more

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