Energy Savings Reports Second Quarter Results-Customer Aggregation Ahead of Published Targets Distributable Cash up 20% Year over Year.
Business Wire › November 08, 2004
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Energy Savings Reports Second Quarter Results-Customer Aggregation Ahead of Published Targets Distributable Cash up 20% Year over Year.
TORONTO -- Energy Savings Income Fund (TSX:SIF.UN)
Highlights for the 3 Months and 6 Months ended September 30, 2004 included: - Gross margin of $39.3 million up 24% year over year and up 8% over Q1. - Premarketing distributable cash of $32.7 million ($0.31 per unit) up 20% year over year and up 17% over Q1. - General and administrative costs of $6.4 million down from $8.1 million in Q1. - Distributions were up 17% with a 68% payout ratio. - Q2 gross customer additions were 79,000 and net additions were 51,000. Year to date gross additions are 148,000 and net additions were 103,000. Published targets for the year are gross additions of 260,000 and net additions of 160,000. - Customers added in Illinois increased from 5,000 to 16,000. - Customers added in Quebec, Manitoba and British Columbia increased from 9,000 to 29,000. - For the first time, customers added in new markets exceeded those added in Ontario. Energy Savings Second Quarter Results Energy Savings Income Fund announced its results for the second quarter ended September 30, 2004. --------------------------------------------------------------------- --------------------------------------------------------------------- Three Months ended Sept. 30, F2005 Per Unit F2004 Per Unit ($ millions except per Unit)(1) --------------------------------------------------------------------- Sales (1) $203.5 $192.7 --------------------------------------------------------------------- Gross Margin (1) 39.3 31.7 --------------------------------------------------------------------- Distributable Cash --------------------------------------------------------------------- - Premarketing 32.7 $0.31 27.1 $0.26 --------------------------------------------------------------------- - Post Marketing 22.0 $0.21 20.7 $0.20 --------------------------------------------------------------------- Distributions 22.1 $0.21 18.9 $0.18 --------------------------------------------------------------------- Long Term Customers 1,095,000 884,000 --------------------------------------------------------------------- --------------------------------------------------------------------- --------------------------------------------------------------------- --------------------------------------------------------------------- Six Months ended Sept. 30, F2005 Per Unit F2004 Per Unit ($ millions except per Unit)(1) --------------------------------------------------------------------- Sales (1) $407.0 $345.7 --------------------------------------------------------------------- Gross Margin (1) 75.5 65.0 --------------------------------------------------------------------- Distributable Cash --------------------------------------------------------------------- - Premarketing 60.7 $0.57 56.7 $0.54 --------------------------------------------------------------------- - Post Marketing 41.0 $0.39 41.3 $0.39 --------------------------------------------------------------------- Distributions 43.5 $0.41 37.5 $0.36 --------------------------------------------------------------------- --------------------------------------------------------------------- (1) Seasonally adjusted Energy Savings is an Income Fund and it reports in the attached Management's Discussion and Analysis a detailed calculation of distributable cash both before and after marketing expenditures to expand the Fund's customer base. Higher gross margin from an increased customer base and tightly controlled general and administrative costs led to a 20% year over year distributable cash increase and a 17% increase over the first quarter. This was despite a continued decline in Ontario residential natural gas consumption, a trend which has seen standard household usage (adjusted for weather effects) decline 4% over the past two years. Distributions increased once in the quarter to $0.865 per unit, the 18th such increase in Energy Savings history. The Fund's past success in customer aggregation continued in the second quarter. The Fund had published targets of 260,000 gross customer additions and 160,000 net additions for the year ended March 31, 2005. During the second quarter, Energy Savings had gross additions of 79,000 new customers and net additions of 51,000 new customers. After two quarters, the Fund has realized 57% of its annual gross addition target and 64% of the expected net customer additions for the year. The key to this performance was better than expected ramp-up in new markets of Illinois,...See the full content of this document
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