TORONTO, ON /
ACCESSWIRE /
May 15, 2014
/ ONEnergy Inc.
("ONEnergy" or the "Corporation") (TSXV: OEG and OEG.A), a growing
provider of innovative energy products to residential, industrial
and commercial customers in Ontario and the U.S., has released its
interim operating and financial results for the first quarter of
fiscal 2014 ended March 31, 2014 ("Q1 2014"). All amounts are in
Canadian dollars unless otherwise noted.
As previously
reported the Corporation completed a change-of-business transaction
in July 2013 by acquiring Sunwave Gas & Power Inc. ("Sunwave").
The financial and operating highlights in Q1 2014 reflect Sunwave's
operations. There were no business activities in the comparative
period in 2013.
Financial
highlights
The Corporation
generated revenue of $1.051 million in Q1 2014, primarily through
the sale of natural gas and electricity to customers in Ontario.
The Corporation initiated operations in Connecticut in March 2014
as part of its planned expansion into selected northeast U.S.
markets, and expects more significant contributions from this and
other U.S. markets in the near term.
Operating
expenses, including selling costs were $1.924 million. Included in
this total are continuing litigation-related costs. Net loss in Q1
2014 was $1.375 million or $0.006 per share.
Cash and cash
equivalents as at March 31, 2014, totaled $17.830
million.
Operating
highlights
Year to date
ONEnergy has achieved several key strategic milestones
including:
-- In February
2014, ONEnergy received its electric supplier license in
Pennsylvania from the Pennsylvania Public Utilities Commission. The
Corporation began electricity sales in Pennsylvania during the
second quarter of fiscal 2014
-- As part of its
execution of its expansion into key northeast U.S. electricity
markets, ONEnergy has pending electricity supplier license
applications with regulators in New York, Massachusetts, and
Ohio
-- In April 2014,
ONEnergy completed the acquisition of The Home Comfort Group
("HCG") a well-established leader in the residential HVAC rentals,
sales and installation business and provides heating and air
conditioning equipment, tankless and conventional hot water systems
and other in-home and commercial appliances, products and services
in Canada, providing ONEnergy with long-lived, stable annuity-type
cash flows and "sticky" customer relationships. HCG has a growing
customer base in multiple Canadian provinces, and today serves over
4,000 customers.
"We continue to make progress on all fronts," said Mark
Lewis, Chief Executive Officer of ONEnergy. "Our initial sales in
Connecticut have exceeded our expectations, we have launched
operations in Pennsylvania and we are well on our way to adding
additional U.S. markets in the coming quarters. Our Canadian sales
are tracking well, and the addition of HCG adds further depth to
our product offering in Canada, and creates a much more valuable
and compelling solution for our customers. We expect to migrate the
HCG product and service offering to our US markets in the near
future, which we anticipate will produce stronger customer
retention, and higher margins on a per customer basis."
Strategic Focus
ONEnergy continues to
strengthen and grow the foundation of its energy retailing business
through the organic growth of its Canadian customer base, and its
ongoing expansion into the northeast US electricity markets. To
augment the organic growth of its customer base, the Corporation
expects to further expand its business through the targeted,
prudent acquisition of existing energy services businesses in key
markets. The Corporation has a robust pipeline of potential
acquisitions, and is currently engaged in discussions with the
management of multiple potential acquisition targets.
In addition to growing its
customer base, ONEnergy is focused on expanding the value
proposition offered to customers by offering ancillary services and
products as part of their service package. The retail energy
markets are experiencing a paradigm shift where customers are
expecting more from their service providers. ONEnergy is at the
forefront of this shift and is providing its customers with an
increasingly comprehensive menu of value-added services designed to
enhance the customer experience, increasing the margin derived from
each customer and improving customer retention.
The board of directors and
management team of ONEnergy continue to vigorously pursue claims
against certain of the Corporation's former directors and officers
in connection with the payment of approximately $15.7-million of
"restructuring awards," paid to the directors and officers from the
net proceeds of approximately $64-million realized by the
Corporation on the sale of its spectrum license in 2009.
Significant progress has been made year to date (see press release
dated May 5, 2014) and the Corporation expects that the matter will
be brought to trial in late 2014 or early 2015.
For further information on
ONEnergy's financial results, please review the Corporation's
condensed consolidated financial statements and management's
discussion and analysis of financial condition and results of
operations for the first quarter of fiscal 2014, which are
available in the SEDAR database (www.sedar.com) or on the
Corporation's website at www. www.onenergyinc.com.
About ONEnergy Inc.
ONEnergy, through Sunwave
(www.gosunwave.com), is a provider of innovative energy products to
residential, industrial and commercial customers. ONEnergy provides
homeowners and business with competitively priced conventional and
environmentally-friendly green natural gas and electricity in
Ontario and conventional and green electricity in Connecticut and
Pennsylvania. Through its Home Comfort division, the Corporation
provides residential heating, ventilation, & air conditioning
rentals, sales and installation, and provides heating and air
conditioning equipment, 3
tankless and conventional hot water systems and other
in-home and commercial appliances, products and services in
Ontario, Alberta and Manitoba.
ONEnergy shares are listed on the TSX Venture Exchange
under the symbols "OEG" for Multiple Voting Shares and "OEG.A" for
Subordinate Voting Shares. ONEnergy's website may be found at
www.onenergyinc.com.
Mark Lewis
Chief Executive Officer
ONEnergy Inc.
+1 (416) 444-4848
Ray de Ocampo
Chief Financial Officer
ONEnergy Inc.
+1 (416) 444-4848
Ali Mahdavi
Capital Markets & Investor Relations
Spinnaker Capital Markets Inc.
+1 (416) 962-3300
The corporate information
contained in this release includes forward-looking statements
regarding future events and the future performance of ONEnergy and
its subsidiaries that involve risks and uncertainties that could
cause actual results to differ materially. Assumptions used in the
preparation of such information, although considered reasonable by
ONEnergy at the time of preparation, may prove to be incorrect. The
actual results achieved may vary from the information provided
herein and the variations may be material. Consequently, there is
no representation by ONEnergy that actual results achieved will be
the same, in whole or in part, as those forecast.
Neither the TSX Venture
Exchange nor its Regulation Services Provider (as that term is
defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this
release
SOURCE: ONEnergy Inc.
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