Crius Energy Trust files business acquisition report and reports strong third quarter results

Crius Energy Trust files business acquisition report and reports strong third 
quarter results 
/NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE SERVICES/ 
TORONTO, Jan. 16, 2013 /CNW/ - Crius Energy Trust ("Crius Energy" or the 
"Trust") (TSX:KWH.UN) announced that it has filed a Business Acquisition 
Report in respect of the acquisition, by a wholly-owned indirect subsidiary of 
the Trust, of a 26.8% ownership interest in Crius Energy, LLC (the "Company"). 
The acquisition closed on November 13, 2012 concurrently with the initial 
public offering of the Trust. 
The Business Acquisition Report includes, among other things, pro-forma 
financial statements of the Trust for the third quarter ended September 30, 
2012, as well as third quarter results of the Trust's wholly-owned operating 
subsidiaries, Regional Energy Holdings, Inc. and Public Power, LLC. The 
complete Business Acquisition Report is available under the Trust's SEDAR 
profile at www.sedar.com and are available on the Trust's website at 
www.criusenergytrust.ca. 
This press release contains statements that are forward looking. Investors 
should read the section Forward- Looking Statements at the end of this news 
release. In this news release, references to "Crius Energy" or the "Trust" 
include the Trust and its operating subsidiaries. 
Third quarter 2012 Pro forma highlights 


    --  Revenue of $120.6 million for the quarter, $306.3 million year
        to date
    --  Gross margin of $32.0 million for the quarter, $91.5 million
        year to date
    --  Gross margin as a percentage of revenue of 26.5%, 29.9% year to
        date
    --  Adjusted EBITDA of $17.2 million for the quarter, $50.3 million
        year to date
    --  Adjusted EBITDA as a percentage of revenue of 14.3% for the
        quarter, 16.4% for the year to date
    --  Net income of $12.7 million for the quarter, $32.4 million for
        the year to date
    --  504,051 residential customer equivalents at the end of the
        third quarter, up from 484,380(1) at the end of the second
        quarter, including gross adds of 82,585.

The following table shows highlights of the pro forma consolidated statement 
of comprehensive income for the Trust for the nine months ended September 30, 
2012 from the Business Acquisition Report filed January 16, 2013 together with 
the pro forma consolidated statement of comprehensive income for the Trust for 
the six months ended June 30, 2012 from the Prospectus filed November 2, 2012. 
These two sets of financial results were used to derive the third quarter 
results. Certain totals and sub-totals may not reconcile due to rounding.
                                                                               Three       Nine       Six
                                                                              Months      Months     Months
                                                                              Ending      Ending
                                                                             September   September   Ending
                                                                               30,         30,
                                                                               2012        2012       June
                                                                                                      30,
                                                                                                      2012

Revenue....................................................................     $120.6      $306.3   $185.7

Cost of sales..............................................................      $88.6      $214.8   $126.2

Gross margin.............................................................        $32.0       $91.5    $59.5

Selling expenses........................................................          $6.6       $17.3    $10.7

General and administrative expenses........................                       $8.4       $23.9    $15.5

Depreciation and amortization...................................                  $1.6       $12.1    $10.5

Finance costs............................................................         $0.5        $3.7     $3.2

Change in fair value of derivative instruments...........                       $(1.2)      $(2.5)   $(1.3)

Provision (benefit) for income taxes...........................                   $3.6        $4.6     $1.0

Net income.................................................................      $12.7       $32.4    $19.7

EBITDA......................................................................     $18.4       $52.8    $34.4

Adjusted EBITDA.......................................................           $17.2       $50.3    $33.1

Commenting on third quarter results, Chief Executive Officer Michael Fallquist 
stated "we are pleased with the strong third quarter performance for our 
business. These quarterly results demonstrate our ability to execute on our 
business strategy and establish Crius Energy as a leader in the retail energy 
industry. With continued robust customer growth in the fourth quarter and 
future synergies gained from the combination of Regional Energy Holdings and 
Public Power, we have created a solid foundation for the future."

About Crius Energy

Crius Energy has been established to provide investors with a stable and 
consistent distribution-producing investment through the acquisition of an 
ownership interest in the Company by an indirect wholly-owned subsidiary of 
Crius Energy. The Company is one of the largest independent energy retailers 
operating in the United States, with more than 500,000 residential customer 
equivalents. The Company serves residential and small to medium-size 
commercial customers in the United States and markets its products through a 
variety of sales channels and brand names. The Company currently sells 
electricity in 11 states and the District of Columbia and natural gas in five 
states.

Crius Energy is a "mutual fund trust" under the Income Tax Act (Canada) (the 
"Tax Act"). The Trust will not be a "SIFT trust" (as defined in the Tax Act), 
provided that the Trust complies at all times with its investment restriction 
which precludes the Trust from holding any "non-portfolio property" (as 
defined in the Tax Act). Material information pertaining to Crius Energy may 
be found on www.sedar.com or www.criusenergytrust.ca.

Non-IFRS Financial Measures

Statements throughout this news release make reference to EBITDA and Adjusted 
EBITDA which are non-International Financial Reporting Standards ("IFRS") 
financial measures commonly used by financial analysts in evaluating financial 
performance of companies, including companies in the energy retailing 
industry. Accordingly, management believes EBITDA and Adjusted EBITDA may be 
useful metrics for evaluating the Trust's financial performance as they are 
measures that management uses internally to assess performance, in addition to 
IFRS measures. As there is no generally accepted method of calculating EBITDA 
and Adjusted EBITDA, these terms as used herein are not necessarily comparable 
to similarly titled measures of other companies. The items excluded from 
EBITDA are significant in assessing the Trust's operating results and 
liquidity. EBITDA and Adjusted EBITDA have limitations as analytical tools and 
should not be considered in isolation from, or as an alternative to, net 
income or other data prepared in accordance with IFRS. EBITDA is calculated as 
earnings before interest, taxes, depreciation and amortization. Adjusted 
EBITDA is calculated as EBITDA adjusted to exclude any change in the fair 
value of derivative instruments. Below is a reconciliation of EBITDA and 
Adjusted EBITDA to net income as calculated under IFRS for the nine months 
ended September 30, 2012 (for a reconciliation for the six months ended June 
30, 2012, please refer to the prospectus filed by Crius Energy on November 2, 
2012).
                                                                                         Three       Nine        Six
                                                                                        Months      Months     Months
                                                                                        Ending      Ending     Ending
                                                                                       September   September   June 30,
                                                                                         30,         30,
                                                                                         2012        2012        2012

Net income..........................................................................       $12.7       $32.4      $19.7

Excluding the impacts of:....................................................                                          

  Provision for income taxes..............................................                  $3.6        $4.6       $1.0

  Finance costs..................................................................           $0.5        $3.7       $3.2

  Depreciation and amortization.........................................                    $1.6       $12.1      $10.5

EBITDA...............................................................................      $18.4       $52.8      $34.4

Excluding the impact of:......................................................                                         

  Change in fair value of derivative instruments................                          $(1.2)      $(2.5)     $(1.3)

Adjusted EBITDA................................................................            $17.2       $50.3      $33.1

Forward-Looking Statements

This news release contains forward-looking information that involves 
substantial known and unknown risks and uncertainties, most of which are 
beyond the control of Crius Energy, including, without limitation, those 
listed under "Risk Factors" and "Forward-Looking Statements" in Crius Energy's 
final prospectus (collectively, "forward-looking information"). 
Forward-looking information in this news release includes, but is not limited 
to, Crius Energy's objectives and status as a mutual fund trust and not a SIFT 
trust, results of operations, financial position or cash flows, customer 
revenues and margins, customer additions and renewals, customer attrition, 
customer consumption levels, general and administrative expenses, treatment 
under governmental regulatory regimes, distributable cash and Crius Energy's 
expectations and estimates regarding the payment of distributions to 
unitholders. Crius Energy cautions investors of Crius Energy's securities 
about important factors that could cause Crius Energy's actual results to 
differ materially from those projected in any forward-looking statements 
included in this news release. Any statements that express, or involve 
discussions as to, expectations, beliefs, plans, objectives, assumptions or 
future events or performance are not historical facts and may be 
forward-looking and may involve estimates, assumptions and uncertainties which 
could cause actual results or outcomes to differ materially from those 
expressed in such forward-looking statements. No assurance can be given that 
the expectations set out in this news release will prove to be correct and 
accordingly, prospective investors should not place undue reliance on these 
forward-looking statements. These statements speak only as of the date of this 
news release and Crius Energy does not assume any obligation to update or 
revise them to reflect new events or circumstances.

(1) As part of the business integration of Public Power and Regional Energy 
Holdings, the Company adopted a uniform method for the calculation of 
residential customer equivalents. This resulted in a decrease in second 
quarter residential customer equivalent count of approximately 11,000 (or 
2.2%) residential customer equivalents from previous disclosures. The new 
method will be adopted consistently in the future.









For further information concerning this news release please contact:

Michael Fallquist Chief Executive Officer (203) 663-7545

Roop Bhullar Chief Financial Officer (203) 883-9900

SOURCE: Crius Energy Trust

To view this news release in HTML formatting, please use the following URL: 
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CO: Crius Energy Trust
ST: Ontario
NI: ERN 

-0- Jan/17/2013 01:08 GMT


 
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