The forecast level of EBITDA comfortably supports the current dividend and will allow the Company to both grow and reduce its debt level. Just Energy has previously indicated that it expects its payout ratio on FFO to reach a target level of 60% - 65% in fiscal 2016. This would require significant further growth in cash flow resulting in further debt repayment over the coming years.
About Just Energy Group Inc.
Established in 1997, Just Energy is primarily a competitive retailer of natural gas and electricity. With offices located across the United States, Canada and, commencing in July 2012, the United Kingdom, Just Energy serves close to 2 million residential and commercial customers through a wide range of energy programs and home comfort services, including fixed-price or price-protected energy program contracts, the rental of water heaters, furnaces and air conditioners and the installation of solar panels. The Company's JustGreen® products provide consumers with the ability to help them reduce the environmental impact of their everyday energy use. Just Energy is the parent to Amigo Energy, Commerce Energy, Hudson Energy, Hudson Energy Solar, National Home Services, Momentis, Tara Energy and Terra Grain Fuels.
Just Energy's press releases may contain forward-looking statements including statements pertaining to customer revenues and margins, customer additions and renewals, customer attrition, customer consumption levels, general and administrative expenses, dividends, distributable cash, its payout ratio on FFO, EBITDA and treatment under governmental regulatory regimes. Without limitation, this press release contains forward-looking statements regarding Just Energy's forecasted payout ratio on FFO and EBITDA for the 2014 fiscal year. These statements are based on current expectations that involve a number of risks and uncertainties which could cause actual results to differ from those anticipated. These risks include, but are not limited to, levels of customer natural gas and electricity consumption, rates of customer additions and renewals, rates of customer attrition, fluctuations in natural gas and electricity prices, changes in regulatory regimes and decisions by regulatory authorities, competition and dependence on certain suppliers. Additional information on these and other factors that could affect Just Energy's operations, financial results or dividend levels are included in Just Energy's annual information form and other reports on file with Canadian securities regulatory authorities which can be accessed through the SEDAR website at www.sedar.com, on the U.S. Securities Exchange Commission's website at www.sec.gov or through Just Energy's website at www.justenergygroup.com.
Included in this news release is an estimate of Just Energy's fiscal 2014 EBITDA which is based on, among other things, the various assumptions disclosed in this news release and including assumptions as to new energy-based customer base margins of $170 per RCE for residential customers and $70 per RCE for commercial customers, current levels of customer attrition of 13%, contract renewal levels of 70% and normal weather. To the extent such estimate constitutes a financial outlook, it was approved by management and the Board of Directors of Just Energy on February 7, 2013 and is included to provide readers with an understanding of Just Energy's anticipated EBITDA based on the assumptions described herein and readers are cautioned that the information may not be appropriate for other purposes.
Neither the Toronto Stock Exchange or the New York Stock Exchange has approved nor disapproved of the information contained herein.
Just Energy Group Inc.
Ms. Beth Summers, C.A.
Chief Financial Officer
Mr. Michael Cummings
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