Crius Energy Trust Reports Third Quarter 2013 Financial Results

- Continued Customer Growth and Expanded Product Offerings - 
/NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE SERVICES/ 
TORONTO, Nov. 14, 2013 /CNW/ - Crius Energy Trust(TSX: KWH.UN) ("Crius Energy" 
or the "Trust"), today announced its financial results for the three-month 
period ended September 30, 2013. The Trust commenced operations on November 
13, 2012 with the acquisition of a 26.8% ownership interest in Crius Energy, 
LLC (the "Company") by the Trust's wholly-owned subsidiary. All figures in 
U.S. dollars unless otherwise noted. 
"The third quarter was highlighted by continued organic customer growth and 
the expansion of our suite of energy products," said Michael Fallquist, 
President and CEO of Crius Energy Trust. "We added customers across our brands 
while reducing overall attrition and continuing to diversify our business as 
we've nearly doubled our natural gas customers since the beginning of the 
year. We believe our third-quarter performance further validates our 
multi-channel marketing strategy which experienced continued growth despite 
the traditionally slowest quarter for the network marketing industry. 
Furthermore, and importantly, we continue to have the financial resources 
available which allow us to capitalize on our unique position to respond 
quickly to market opportunities in our evolving industry, make investments in 
our business that promote long-term organic growth, and pursue accretive 
acquisitions. 
"We are optimistic about our reseller agreement with SolarCity, which was 
launched at our Viridian Energy brand's PowerUp! annual convention in 
September, and is off to a great start. Partnering with the number one 
full-service solar provider in the U.S. opens up a range of opportunities for 
our company to expand into new markets and broaden the range of products we 
offer to customers across our brands. Just as importantly, this expansion of 
services is a demonstration of our long-term vision of being a comprehensive 
energy solutions partner providing a broad suite of energy products and 
services that make it easier for consumers to make informed decisions that 
address their energy needs." 
Q3 2013 Financial and Operational Highlights 


    --  Residential customer equivalents ("RCEs") totaled 610,459 at
        the end of the third quarter, up 2.4% quarter-over-quarter and
        21.1% year-over-year.
    --  Adjusted EBITDA of $10.5 million, representing 7.2% of revenue
        and was impacted by $5.0 million due to weather variation from
        historical norms in July and August.  Normalizing for weather
        impacts, Adjusted EBITDA for the quarter would have been $15.5
        million.
    --  Distributions paid in the quarter of $9.0 million represent a
        payout ratio of 100% measured on an Adjusted EBITDA less cash
        financing costs and taxes basis.
    --  Sold 1.5 million MWh of electricity and 0.4 million MMBtu of
        natural gas
    --  Revenue of $145.6 million
    --  Gross margin of $30.0 million, representing 20.6% of revenue
    --  Total cash and availability of $33.9 million consisting of
        $16.8 million of cash, no long-term debt and availability under
        the credit facility with Macquarie Energy of $17.1 million as
        of September 30, 2013.
    --  Expanded our product suite to include residential solar energy
        products and services through a reseller agreement with
        SolarCity (NASDAQ: SCTY), the number one full-service solar
        provider in the U.S. Crius Energy is marketing SolarCity
        products and services initially through its network marketing
        brand, Viridian Energy.
    --  Expanded service offerings under multiple brands as Viridian
        Energy started offering natural gas products in Maryland,
        Virginia and the District of Columbia, FTR Energy Service
        started offering electricity in Illinois and Public Power
        expanded into three new electric utility service areas in
        Pennsylvania.
    --  Strengthened the management team through the following


    appointments:
  o Chaitu Parikh was appointed to the position of Chief Operating 
Officer. Mr. Parikh has 16 years of experience in the retail energy 


    industry, most recently serving as CEO/President of MXEnergy.

  o Meredith Berkich was promoted to the role of President of Viridian
    Energy to support the continued growth of our network marketing
    channel.  Mrs. Berkich has more than 18 years of experience in the
    direct selling industry on both the distributor and corporate side
    with notable companies such as Princess House (a Colgate Palmolive
    Company) and Univera. Subsequent to quarter end, Mrs. Berkich was
    appointed an Officer of the Trust.

  o Cami Boehme was promoted to the newly created position of Chief
    Strategy Officer. In her new role, Ms. Boehme will oversee
    strategic product innovation and help plan the overall strategic
    direction of the Company. Prior to her promotion, Ms. Boehme served
    as Senior Vice-President Marketing and Brand Strategy for Crius
    Energy.

Highlights Subsequent to Quarter-End
    --  Appointed Pradeep Tiwari to the position of Vice President of
        Information Technology. Mr. Tiwari has nine years of experience
        in the retail energy industry with energy retailers including
        MXEnergy and Constellation.
    --  Received electricity and natural gas licenses for Viridian
        Energy to market in Ohio.

Review of Financial Results

Revenue for the third quarter was $145.6 million. Revenue was driven by 
customer growth in the strategic marketing partnership and network marketing 
channels and seasonally higher electricity volumes. The Company grew its 
customer base in the third quarter, increasing RCEs by 2.4% over the second 
quarter to a total of 610,459, and by 21.1% on a year-over-year basis.

Revenue from electricity sales during the third quarter was $142.4 million 
based on volume of 1,499,569 MWh, and accounted for 97.8% of total revenue. 
Revenue from natural gas sales was $2.1 million based on volume of 433,936 
MMBtu, and accounted for 1.4% of total revenue. Fee revenue consisting of 
sign-up fees and other monthly fees received from independent contractors in 
the network marketing channel was $1.0 million, accounting for 0.7% of total 
revenue.

Gross margin for the period was $30.0 million, representing 20.6% of revenue. 
Monthly gross margins were 19.4% in July, 16.4% in August and 27.9% in 
September. The gross margin percentages achieved in July and August were lower 
than expected as a result of the impact of weather variation from historical 
norms while September weather conditions generally returned to normal which 
led to a materially higher gross margin percentage.

Adjusted EBITDA for the period was $10.5 million, or 7.2% of revenue. Adjusted 
EBITDA was impacted by $5.0 million due to weather variation from historical 
norms, primarily in July and August, and the corresponding hedge and real-time 
price impact. Normalizing for weather impacts, Adjusted EBITDA for the quarter 
would have been $15.5 million.

The Company has cash and availability of $33.9 million as of September 30, 
2013, which consisted of $16.8 million in cash, no long-term debt and 
availability of $17.1 million under the Company's working capital facility 
with Macquarie Energy.

Operational Review

The Company experienced continued growth in customer enrolments through its 
strategic marketing partnership channel initial partners, Cincinnati Bell 
(under the Cincinnati Bell Energy brand) and FairPoint Communications (under 
the FairPoint Energy brand), and experienced an increased contribution from 
its newest and largest partner, Frontier Communications (under the FTR Energy 
Services brand), which had its best customer acquisition quarter since 
launching last November. In addition to customer growth in the channel, the 
Company launched initiatives with each partner that further integrate its 
products and services into the marketing and sales activities of its channel 
partners, including: a pilot program to sell electricity and natural gas 
products through three of Frontier Communications' inbound call centers; a 
pilot program for the Cincinnati Bell Energy brand that will utilize digital 
customer enrolment kiosks to be located in Cincinnati Bell retail store 
locations; and, a trial digital marketing campaign through its FairPoint 
Energy brand.

The Company's Viridian Energy brand added both customers and independent 
contractors during the third quarter, which is the historically weaker period 
for customer and contractor additions for the network marketing industry. 
Sales efforts for the network marketing channel ramped up in September at 
Viridian Energy's annual convention, PowerUp!®, in Washington D.C. with the 
announcement of a reseller agreement with SolarCity, the number one 
full-service solar provider in the U.S. Management sees the higher-usage, 
higher-retention Viridian marketing channel as a key source of long-term 
revenue growth, and the addition of solar products and services will further 
promote long-term customer relationships within the channel. In addition, 
Viridian Energy also began offering natural gas products in select markets in 
Maryland, Virginia and the District of Columbia during the period.

The Public Power brand expanded its market penetration in the quarter, 
entering three new electric utility service areas in Pennsylvania, and the 
Company has multiple initiatives underway to expand Public Power's marketing 
program.

Customer attrition was lower in the quarter and represented the lowest 
percentage attrition rate during the last twelve-month period. Management 
expects the Company will benefit as more new customers are originated through 
higher-retention strategic marketing partnerships and the network marketing 
channels.

Financial Statements and MD&A

The Trust's consolidated financial statements for the period ended September 
30, 2013 and accompanying management's discussion and analysis ("MD&A") have 
been filed with the securities regulators and are available via SEDAR at 
www.sedar.com and are available on the Trust's website at 
www.criusenergytrust.ca.

Conference Call Notice

The Trust will hold a conference call to discuss its third quarter 2013 
financial results today, November 14, 2013 at 10:00 a.m. Eastern.

To access the conference call by telephone, dial 647-427-7450 or 
1-888-231-8191. Please connect approximately 15 minutes prior to the beginning 
of the call to ensure participation.

A live audio webcast of the conference call will be available at www.cnw.ca. 
Please connect at least 15 minutes prior to the conference call to ensure 
adequate time for any software download that may be required to join the 
webcast. The webcast will be archived at the above web site for 30 days.

A taped rebroadcast will be available to listeners until 12 a.m. Eastern on 
November 21, 2013. To access the rebroadcast, please dial 416-849-0833 or 
1-855-859-2056 and enter passcode 22862548, followed by the number sign.

About Crius Energy

Crius Energy has been established to provide investors with a stable and 
consistent distribution-producing investment through the acquisition of a 
26.8% ownership interest in Crius Energy LLC (the "Company"). The Company is 
one of the largest independent energy retailers operating in the United 
States, with approximately 610,000 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, natural gas in seven states and the District of Columbia 
and solar energy products and services in six states.

Crius Energy intends to qualify as 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.

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 Annual Information Form dated March 28, 2013 (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 unit holders. 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.



SOURCE  Crius Energy Trust 
Michael Fallquist Chief Executive Officer (203) 663-7545 
Roop Bhullar Chief Financial Officer (203) 883-9900 
Frank Condron TMX Equicom fcondron@tmxequicom.com (416) 815-0700 ext. 233 
To view this news release in HTML formatting, please use the following URL: 
http://www.newswire.ca/en/releases/archive/November2013/14/c7332.html 
CO: Crius Energy Trust
ST: Ontario
NI: ERN CONF  
-0- Nov/14/2013 12:00 GMT
 
 
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