ONEnergy Inc. Reports Third Quarter 2016 Results

ONEnergy Inc., a dynamic energy management firm serving commercial, industrial, multi-residential and residential customers in Canada and the U.S. via its ONEnergy and Sunwave-branded energy and energy-efficiency businesses today announced its financial results as at and for the three- and nine-month periods ended September 30, 2016. All amounts are in Canadian dollars unless otherwise noted.

For the three-month period ended September 30, 2016, revenues from continuing operations increased by 68 percent to $11.0 million from $6.6 million during the corresponding period in 2015. Gross margin increased to $1.4 million, or 13 percent of revenues as compared to $1.2 million and 18 percent of revenues during the same period in the previous year. As a result of the aforementioned, adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”) was a loss of $0.8 million compared to a loss of $0.7 million during Q3 2015. Loss from continuing operations for the three-months ended September 30, 2016 was $0.3 million compared to a loss from continuing operations of $0.2 million for the same period in 2015.

For the nine-month period ended September 30, 2016, revenues from continuing operations increased by 53 percent to $26.4 million from $17.2 million for the nine-month period ended September 30, 2015. Gross margin increased to $3.5 million, or 13 percent of revenues as compared to $2.6 million and 15 percent of revenues during the same period in the previous year. As a result of the aforementioned, adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”) was a loss of $3.0 million compared to a loss of $2.7 million during same period in 2015. Income from continuing operations for the nine-months ended September 30, 2016 was $4.1 million compared to a loss from continuing operations of $2.4 million for the same period in 2015. Included in income from continuing operations for 2016 is the Litigation Settlement of $7.175 million received in April 2016.

In December 2015, ONEnergy designated its Home Comfort business as being held for sale and as a discontinued operation within the financial statements. During the three- and nine-month periods ended September 30, 2016, Home Comfort posted net income of $0.4 million and $1.0 million respectively.

“Gas & Power’s U.S. business continues to generate solid revenue growth, contributing 87% of revenues. Its customer portfolio grew this quarter, particularly in the Pennsylvania market, resulting from increased marketing efforts,” said Stephen J.J. Letwin, Chairman of ONEnergy. “Our Energy Efficiency business completed several projects this quarter adding more than $0.7 million of revenues. I am pleased to see our businesses on this positive course.”

Cash and restricted cash as at September 30, 2016 totaled $6.4 million.

Source : Marketwired