|
||||
|
|
|
|
|
Delaware
|
|
001-36559
|
|
46-5453215
|
(State or Other Jurisdiction
of Incorporation)
|
|
(Commission
File Number)
|
|
(IRS Employer
Identification Number)
|
|
|
|
|
¨
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
¨
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
¨
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
¨
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
(d)
|
Exhibits.
|
|
|
|
|
Exhibit No.
|
Descriptio
n
|
|
|
99.1
|
Press Release of Spark Energy, Inc., dated March 26, 2015
|
|
||
|
|
|
Spark Energy, Inc.
|
||
|
||
By:
|
|
/s/ Georganne Hodges
|
Name:
|
|
Georganne Hodges
|
Title:
|
|
Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer)
|
|
|
|
|
Exhibit No.
|
Descriptio
n
|
|
|
99.1
|
Press Release of Spark Energy, Inc., dated March 26, 2015
|
•
|
Initial public offering of our Class A common shares closed on August 1, 2014
|
•
|
Increased net customer count by 51%; 26% exclusive of Southern California
|
•
|
Consistently strong unit margins across both retail natural gas and electricity segments
|
•
|
Completed two customer portfolio acquisitions totaling approximately 13,400 customers
|
•
|
Invested $26.2 million in organic customer acquisitions during the year; $16.4 million exclusive of Southern California
|
•
|
Paid first (prorated) quarterly dividend of $0.2404 for the third quarter of 2014 on December 15, 2014 and paid fourth quarter dividend of $0.3625 per share of Class A common stock on March 16, 2015
|
•
|
We expect 2015 Adjusted EBITDA to exceed planned 2015 dividends and all required distributions and tax payments, and management does not anticipate any changes to the dividend policy in 2015
|
•
|
We are developing a framework with NuDevco Partners Holdings, LLC ("NuDevco"), which is owned by our founder, that would enable us to pursue additional growth through M&A. See below under "NuDevco Framework" for further discussion of this development
|
•
|
Initial financial results of the two customer portfolio acquisitions completed last year have exceeded management's expectations
|
•
|
In March 2015 we entered into an agreement to purchase approximately 33,500 gas customers in PG&E for approximately $2.8 million, or $85 per customer. This transaction is expected to be accretive to Adjusted EBITDA in 2015
|
(in thousands)
|
December 31, 2014
|
Cash and cash equivalents
|
$ 4,359
|
Senior Credit Facility Availability
(1)
|
26,260
|
Total Liquidity
|
$ 30,619
|
(1)
Subject to Senior Credit Facility borrowing base restrictions
|
•
|
changes in commodity prices,
|
•
|
extreme and unpredictable weather conditions,
|
•
|
the sufficiency of risk management and hedging policies,
|
•
|
customer concentration,
|
•
|
federal, state and local regulation,
|
•
|
key license retention,
|
•
|
increased regulatory scrutiny and compliance costs,
|
•
|
our ability to borrow funds and access credit markets,
|
•
|
restrictions in our debt agreements and collateral requirements,
|
•
|
credit risk with respect to suppliers and customers,
|
•
|
level of indebtedness,
|
•
|
changes in costs to acquire customers,
|
•
|
actual customer attrition rates,
|
•
|
actual bad debt expense in non-POR markets,
|
•
|
accuracy of internal billing systems,
|
•
|
ability to successfully navigate entry into new markets,
|
•
|
whether our majority shareholder or its affiliates offers us acquisition opportunities on terms that are commercially acceptable to us,
|
•
|
competition, and
|
•
|
the "Risk Factors" described below.
|
SPARK ENERGY, INC.
|
||
COMBINED AND CONSOLIDATED BALANCE SHEETS
|
||
AS OF DECEMBER 31, 2014 AND DECEMBER 31, 2013
|
||
(in thousands)
|
||
|
|
|
|
December 31, 2014
|
December 31, 2013
|
Assets
|
|
|
Current assets:
|
|
|
Cash and cash equivalents
|
$ 4,359
|
$ 7,189
|
Restricted cash
|
707
|
--
|
Accounts receivable, net of allowance for doubtful accounts of $8.0 million and $1.2 million as of December 31, 2014 and 2013, respectively
|
63,797
|
62,678
|
Accounts receivable-affiliates
|
1,231
|
6,794
|
Inventory
|
8,032
|
4,322
|
Fair value of derivative assets
|
216
|
8,071
|
Customer acquisition costs, net
|
12,369
|
4,775
|
Intangible assets - customer acquisitions, net
|
486
|
--
|
Prepaid assets
|
1,236
|
1,032
|
Deposits
|
10,569
|
3,529
|
Other current assets
|
2,987
|
2,901
|
Total current assets
|
105,989
|
101,291
|
Property and equipment, net
|
4,221
|
4,817
|
Fair value of derivative assets
|
--
|
6
|
Customer acquisition costs
|
2,976
|
2,901
|
Intangible assets - customer acquisitions
|
1,015
|
--
|
Deferred tax assets
|
24,047
|
--
|
Other assets
|
149
|
58
|
Total Assets
|
$ 138,397
|
$ 109,073
|
Liabilities and Stockholders' Equity
|
|
|
Current liabilities:
|
|
|
Accounts payable
|
$ 38,210
|
$ 36,971
|
Accounts payable-affiliates
|
1,017
|
--
|
Accrued liabilities
|
7,195
|
6,838
|
Fair value of derivative liabilities
|
11,526
|
1,833
|
Note payable
|
33,000
|
27,500
|
Other current liabilities
|
1,868
|
--
|
Total current liabilities
|
92,816
|
73,142
|
Long-term liabilities:
|
|
|
Fair value of derivative liabilities
|
478
|
18
|
Payable pursuant to tax receivable agreement-affiliates
|
20,767
|
--
|
Other long-term liabilities
|
219
|
--
|
Total liabilities
|
114,280
|
73,160
|
Stockholders' equity:
|
|
|
Member's equity
|
--
|
35,913
|
Common Stock:
|
|
|
Class A common stock, par value $0.01 per share, 120,000,000 shares authorized, 3,000,000 issued and outstanding at December 31, 2014 and zero issued and outstanding at December 31, 2013
|
30
|
--
|
Class B common stock, par value $0.01 per share, 60,000,000 shares authorized, 10,750,000 issued and outstanding at December 31, 2014 and zero issued and outstanding at December 31, 2013
|
108
|
--
|
Preferred Stock:
|
|
|
Preferred stock, par value $0.01 per share, 20,000,000 shares authorized, zero issued and outstanding at December 31, 2014 and 2013
|
--
|
--
|
Additional paid-in capital
|
9,296
|
--
|
Retained deficit
|
(775)
|
--
|
Total stockholders' equity
|
8,659
|
35,913
|
Non-controlling interest in Spark HoldCo, LLC
|
15,458
|
--
|
Total equity
|
24,117
|
35,913
|
Total Liabilities and Stockholders' Equity
|
$ 138,397
|
$ 109,073
|
|
|
|
|
|
|
SPARK ENERGY, INC.
|
|||
COMBINED AND CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS)
|
|||
INCOME FOR THE YEARS ENDED DECEMBER 31, 2014, 2013 and 2012
|
|||
(in thousands, except per share data)
|
|||
|
|||
|
Year Ended December 31,
|
||
|
2014
|
2013
|
2012
|
Revenues:
|
|
|
|
Retail revenues (including retail revenues—affiliates of $2,170, $4,022 and $1,382 for the years ended December 31, 2014, 2013 and 2012, respectively)
|
$ 320,558
|
$ 316,776
|
$ 380,198
|
Net asset optimization revenues (expenses) (including asset optimization revenues-affiliates of $12,842, $14,940 and $8,334 for the years ended December 31, 2014, 2013 and 2012, respectively, and asset optimization revenues affiliates cost of revenues of $30,910, $15,928 and $568 for the years ended December 31, 2014, 2013 and 2012, respectively)
|
2,318
|
314
|
(1,136)
|
Total Revenues
|
322,876
|
317,090
|
379,062
|
Operating Expenses:
|
|
|
|
Retail cost of revenues (including retail cost of revenues-affiliates of $13, $55 and $254 for the years December 31, 2014, 2013 and 2012)
|
258,616
|
233,026
|
279,506
|
General and administrative (including general and administrative expense-affiliates of $0.1, $0.1 and $0.8 for the years ended December 31, 2014, 2013 and 2012, respectively)
|
45,880
|
35,020
|
47,321
|
Depreciation and amortization
|
22,221
|
16,215
|
22,795
|
Total Operating Expenses
|
326,717
|
284,261
|
349,622
|
Operating (loss) income
|
(3,841)
|
32,829
|
29,440
|
Other (expense)/income:
|
|
|
|
Interest expense
|
(1,578)
|
(1,714)
|
(3,363)
|
Interest and other income
|
263
|
353
|
62
|
Total other expenses
|
(1,315)
|
(1,361)
|
(3,301)
|
(Loss) income before income tax expense
|
(5,156)
|
31,468
|
26,139
|
Income tax (benefit) expense
|
(891)
|
56
|
46
|
Net (loss) income
|
(4,265)
|
31,412
|
26,093
|
Less: Net (loss) attributable to non-controlling interests
|
(4,211)
|
--
|
--
|
Net (loss) income attributable to Spark Energy, Inc. stockholders
|
$ (54)
|
$ 31,412
|
$ 26,093
|
Other comprehensive (loss) income:
|
|
|
|
Deferred gain from cash flow hedges
|
--
|
2,620
|
(10,243)
|
Reclassification of deferred loss from cash flow hedges into net income
|
--
|
(84)
|
17,942
|
Comprehensive (loss) income
|
$ (4,265)
|
$ 33,948
|
$ 33,792
|
|
|
|
|
Net loss attributable to Spark Energy, Inc. per common share
|
|
|
|
Basic
|
$ (0.02)
|
|
|
Diluted
|
$ (0.02)
|
|
|
|
|
|
|
Weighted average commons shares outstanding
|
|
|
|
Basic
|
3,000
|
|
|
Diluted
|
3,000
|
|
|
|
|
|
|
|
|
|
|
SPARK ENERGY, INC.
|
||||||||||||
COMBINED AND CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
|
||||||||||||
FOR THE YEARS ENDED DECEMBER 31, 2014, 2013 and 2012
|
||||||||||||
(in thousands)
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Member's Equity
|
Issued Shares of Class A Common Stock
|
Issued Shares of Class B Common Stock
|
Issued Shares of Preferred Stock
|
Class A Common Stock
|
Class B Common Stock
|
Accumulated Other Comprehensive Income
|
Additional Paid In Capital
|
Retained Deficit
|
Total Stock-holders Equity
|
Non-controlling Interest
|
Total Equity
|
Balance at 12/31/2011:
|
$ 48,180
|
--
|
--
|
$ --
|
$ --
|
$ --
|
$ (10,235)
|
$ --
|
$ --
|
$ --
|
$ --
|
$ 37,945
|
Capital contributions from member
|
10,060
|
--
|
--
|
--
|
--
|
--
|
--
|
--
|
--
|
--
|
--
|
10,060
|
Distributions to member
|
(20,495)
|
--
|
--
|
--
|
--
|
--
|
--
|
--
|
--
|
--
|
--
|
(20,495)
|
Net income
|
26,093
|
--
|
--
|
--
|
--
|
--
|
--
|
--
|
--
|
--
|
--
|
26,093
|
Deferred loss from cash flow hedges
|
--
|
--
|
--
|
--
|
--
|
--
|
(10,243)
|
--
|
--
|
--
|
--
|
(10,243)
|
Reclassification of deferred gain from cash flow hedges into net income
|
--
|
--
|
--
|
--
|
--
|
--
|
17,942
|
--
|
--
|
--
|
--
|
17,942
|
Balance at 12/31/2012:
|
63,838
|
--
|
--
|
--
|
--
|
--
|
(2,536)
|
--
|
--
|
--
|
--
|
61,302
|
Capital contributions from member
|
12,400
|
--
|
--
|
--
|
--
|
--
|
--
|
--
|
--
|
--
|
--
|
12,400
|
Distributions to member
|
(71,737)
|
--
|
--
|
--
|
--
|
--
|
--
|
--
|
--
|
--
|
--
|
(71,737)
|
Net income
|
31,412
|
--
|
--
|
--
|
--
|
--
|
--
|
--
|
--
|
--
|
--
|
31,412
|
Deferred gain from cash flow hedges
|
--
|
--
|
--
|
--
|
--
|
--
|
2,620
|
--
|
--
|
--
|
--
|
2,620
|
Reclassification of deferred loss from cash flow hedges into net income
|
--
|
--
|
--
|
--
|
--
|
--
|
(84)
|
--
|
--
|
--
|
--
|
(84)
|
Balance at 12/31/2013:
|
35,913
|
--
|
--
|
--
|
--
|
--
|
--
|
--
|
--
|
--
|
--
|
35,913
|
Capital contributions from member and liabilities retained by affiliate
|
54,201
|
--
|
--
|
--
|
--
|
--
|
--
|
--
|
--
|
--
|
--
|
54,201
|
Distributions to member
|
(61,607)
|
--
|
--
|
--
|
--
|
--
|
--
|
--
|
--
|
--
|
--
|
(61,607)
|
Net loss prior to the Offering
|
(21)
|
--
|
--
|
--
|
--
|
--
|
--
|
--
|
--
|
--
|
--
|
(21)
|
Balance prior to Corporate Reorganization and the Offering:
|
28,486
|
--
|
--
|
--
|
--
|
--
|
--
|
--
|
--
|
--
|
--
|
28,486
|
Reorganization Transaction:
|
|
|
|
|
|
|
|
|
|
|
|
|
Issuance of Class B common stock
|
(28,486)
|
--
|
10,750
|
--
|
--
|
108
|
--
|
28,378
|
--
|
28,486
|
--
|
--
|
Offering Transactions:
|
|
|
|
|
|
|
|
|
|
|
|
|
Offering costs paid
|
--
|
--
|
--
|
--
|
--
|
--
|
--
|
(2,667)
|
--
|
(2,667)
|
--
|
(2,667)
|
Issuance of Class A Common Stock, net of underwriters discount
|
--
|
3,000
|
--
|
--
|
30
|
--
|
--
|
50,190
|
--
|
50,220
|
--
|
50,220
|
Distribution of Offering proceeds and payment of note payable to affiliate
|
--
|
--
|
--
|
--
|
--
|
--
|
--
|
(47,604)
|
--
|
(47,604)
|
--
|
(47,604)
|
Initial allocation of non-controlling interest of Spark Energy, Inc. effective on date of Offering
|
--
|
--
|
--
|
--
|
--
|
--
|
--
|
(22,232)
|
--
|
(22,232)
|
22,232
|
--
|
Tax benefit from tax receivable agreement
|
--
|
--
|
--
|
--
|
--
|
--
|
--
|
23,636
|
--
|
23,636
|
--
|
23,636
|
Liability due to tax receivable agreement
|
--
|
--
|
--
|
--
|
--
|
--
|
--
|
(20,915)
|
--
|
(20,915)
|
--
|
(20,915)
|
Balance at inception of public company (8/1/2014):
|
--
|
3,000
|
10,750
|
--
|
30
|
108
|
--
|
8,786
|
--
|
8,924
|
22,232
|
31,156
|
Stock based compensation
|
--
|
--
|
--
|
--
|
--
|
--
|
--
|
510
|
--
|
510
|
--
|
510
|
Consolidated net loss subsequent to the Offering
|
--
|
--
|
--
|
--
|
--
|
--
|
--
|
--
|
(54)
|
(54)
|
(4,190)
|
(4,244)
|
Distributions paid to Class B non-controlling unit holders
|
--
|
--
|
--
|
--
|
--
|
--
|
--
|
--
|
--
|
--
|
(2,584)
|
(2,584)
|
Dividends paid to Class A common shareholders
|
--
|
--
|
--
|
--
|
--
|
|
--
|
--
|
(721)
|
(721)
|
--
|
(721)
|
Balance at 12/31/2014:
|
$ --
|
3,000
|
10,750
|
$ --
|
$ 30
|
$ 108
|
$ --
|
$ 9,296
|
$ (775)
|
$ 8,659
|
$ 15,458
|
$ 24,117
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SPARK ENERGY, INC.
|
|||
COMBINED AND CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|||
FOR THE YEARS ENDED DECEMBER 31, 2014, 2013 and 2012
|
|||
(in thousands)
|
|||
|
|||
|
Year Ended December 31,
|
||
|
2014
|
2013
|
2012
|
Cash flows from operating activities:
|
|
|
|
Net (loss) income
|
$ (4,265)
|
$ 31,412
|
$ 26,093
|
Adjustments to reconcile net (loss) income to net cash flows provided by operating activities:
|
|
|
|
Depreciation and amortization expense
|
22,221
|
16,215
|
22,795
|
Deferred income taxes
|
(1,064)
|
--
|
--
|
Stock based compensation
|
858
|
--
|
--
|
Amortization and write off of deferred financing costs
|
631
|
678
|
919
|
Bad debt expense
|
10,164
|
3,101
|
1,835
|
(Gain) loss on derivatives, net
|
14,535
|
(6,567)
|
21,485
|
Current period cash settlements on derivatives, net
|
3,479
|
(1,040)
|
(26,801)
|
Changes in assets and liabilities:
|
|
|
|
Increase in restricted cash
|
(707)
|
--
|
--
|
(Increase) decrease in accounts receivable
|
(11,283)
|
6,338
|
12,019
|
(Increase) decrease in accounts receivable-affiliates
|
5,563
|
13,369
|
(7,787)
|
(Increase) decrease in inventory
|
(3,711)
|
(599)
|
3,442
|
Increase in customer acquisition costs
|
(26,191)
|
(8,257)
|
(6,322)
|
(Increase) decrease in prepaid and other current assets
|
(6,905)
|
(1,917)
|
8,505
|
(Increase) decrease in other assets
|
(90)
|
144
|
345
|
Increase in intangible assets - customer acquisitions
|
(1,545)
|
--
|
--
|
Increase (decrease) in accounts payable and accrued liabilities
|
1,449
|
(7,879)
|
(11,394)
|
Increase (decrease) in accounts payable-affiliates
|
1,017
|
--
|
(1,295)
|
Increase (decrease) in other current liabilities
|
1,867
|
(518)
|
237
|
Decrease in other non-current liabilities
|
(149)
|
--
|
|
Net cash provided by operating activities
|
5,874
|
44,480
|
44,076
|
Cash flows from investing activities:
|
|
|
|
Purchases of property and equipment
|
(3,040)
|
(1,481)
|
(2,220)
|
Sale of property, plant and equipment-affiliates
|
--
|
--
|
577
|
Net cash used in investing activities
|
(3,040)
|
(1,481)
|
(1,643)
|
Cash flows from financing activities:
|
|
|
|
Borrowings on notes payable
|
78,500
|
80,000
|
39,500
|
Payments on notes payable
|
(44,000)
|
(62,500)
|
(68,528)
|
Deferred financing costs
|
(402)
|
(532)
|
(441)
|
Member contribution (distributions), net
|
(36,406)
|
(59,337)
|
(10,435)
|
Proceeds from issuance of Class A common stock
|
50,220
|
--
|
--
|
Distributions of proceeds from Offering to affiliate
|
(47,554)
|
--
|
--
|
Payment of note payable to NuDevco
|
(50)
|
--
|
--
|
Offering costs
|
(2,667)
|
--
|
--
|
Payment of distributions to Class B non-controlling unit holders and dividends to Class A common shareholders
|
(2,584)
|
|
|
Payment of dividends to Class A common shareholders
|
(721)
|
--
|
--
|
Net cash used in financing activities
|
(5,664)
|
(42,369)
|
(39,904)
|
Decreases in cash and cash equivalents
|
(2,830)
|
630
|
2,529
|
Cash and cash equivalents—beginning of period
|
7,189
|
6,559
|
4,030
|
Cash and cash equivalents—end of period
|
$ 4,359
|
$ 7,189
|
$ 6,559
|
Supplemental Disclosure of Cash Flow Information:
|
|
|
|
Non cash items:
|
|
|
|
Issuance of Class B common stock
|
28,486
|
--
|
--
|
Liabilities retained by affiliate
|
29,000
|
--
|
--
|
Tax benefit from tax receivable agreement
|
23,636
|
--
|
--
|
Liability due to tax receivable agreement
|
20,767
|
--
|
--
|
Initial allocation of non-controlling interest
|
22,232
|
--
|
--
|
Property and equipment purchase accrual
|
19
|
--
|
--
|
Cash paid during the period for:
|
|
|
|
Interest
|
$ 860
|
$ 879
|
$ 2,686
|
Taxes
|
$ 85
|
$ 195
|
$ 318
|
|
|
|
|
|
|
|
|
SPARK ENERGY, INC.
|
|||
OPERATING SEGMENT RESULTS
|
|||
FOR THE YEARS ENDED DECEMBER 31, 2014, 2013 and 2012
|
|||
(in millions, except per unit operating data)
|
|||
(unaudited)
|
|||
|
|||
|
Year Ended December 31,
|
||
|
2014
|
2013
|
2012
|
Retail Natural Gas Segment
|
|
|
|
Total Revenues
|
$ 146.5
|
$ 125.2
|
$ 122.7
|
Retail Cost of Revenues
|
109.2
|
83.1
|
77.0
|
Less: Net Asset Optimization Revenues
|
2.3
|
0.3
|
(1.1)
|
Less: Net Gains (Losses) on non-trading derivatives, net of cash settlements
|
(9.3)
|
(0.6)
|
6.3
|
Retail Gross Margin-Gas
|
$ 44.3
|
$ 42.4
|
$ 40.5
|
Volumes-Gas (MMBtu's)
|
15,724,708
|
16,598,751
|
17,527,252
|
Retail Gross Margin-Gas per MMBtu
|
$ 2.82
|
$ 2.55
|
$ 2.31
|
Retail Electricity Segment
|
|
|
|
Total Revenues
|
$ 176.4
|
$ 191.9
|
$ 256.4
|
Retail Cost of Revenues
|
149.5
|
149.9
|
202.5
|
Less: Net Gains (Losses) on non-trading derivatives, net of cash settlements
|
(5.7)
|
2.7
|
1.2
|
Retail Gross Margin—Electricity
|
$ 32.6
|
$ 39.3
|
$ 52.7
|
Volumes - Electricity (MWh's)
|
1,526,652
|
1,829,657
|
2,698,084
|
Retail Gross Margin—Electricity per MWh
|
$ 21.37
|
$ 21.48
|
$ 19.55
|
|
|
|
|
•
|
our operating performance as compared to other publicly traded companies in the retail energy industry, without regard to financing methods, capital structure or historical cost basis;
|
•
|
the ability of our assets to generate earnings sufficient to support our proposed cash dividends; and
|
•
|
our ability to fund capital expenditures (including customer acquisition costs) and incur and service debt.
|
APPENDIX TABLES A-1 AND A-2
|
||||
ADJUSTED EBITDA RECONCILIATION
|
||||
(in thousands)
|
||||
(unaudited)
|
||||
|
||||
|
Year Ended December 31,
|
Quarter Ended December 31,
|
||
|
2014
|
2013
|
2014
|
2013
|
Reconciliation of Adjusted EBITDA to Net (Loss) Income:
|
|
|
|
|
Net (loss) income
|
$ (4,265)
|
$ 31,412
|
$ (11,394)
|
$ 19,344
|
Depreciation and amortization
|
22,221
|
16,215
|
11,897
|
3,511
|
Interest expense
|
1,578
|
1,714
|
428
|
447
|
Income tax expense
|
(891)
|
56
|
(1,668)
|
14
|
EBITDA
|
18,643
|
49,397
|
(737)
|
23,316
|
Less:
|
|
|
|
|
Net, Gains (losses) on derivative instruments
|
(14,535)
|
6,567
|
(14,797)
|
4,527
|
Net, Cash settlements on derivative instruments
|
(3,479)
|
1,040
|
3,773
|
2,916
|
Customer acquisition costs
|
26,191
|
8,257
|
5,825
|
5,145
|
Plus:
|
|
|
|
|
Non-cash compensation expense
|
$ 858
|
$ --
|
$ 496
|
$ --
|
Adjusted EBITDA
|
$ 11,324
|
$ 33,533
|
$ 4,958
|
$ 10,728
|
|
|
|
|
|
|
Year Ended December 31,
|
Quarter Ended December 31,
|
||
|
2014
|
2013
|
2014
|
2013
|
Reconciliation of Adjusted EBITDA to net cash provided by operating activities:
|
|
|
|
|
Net cash provided by operating activities
|
$ 5,874
|
$ 44,480
|
$ (6,091)
|
$ 10,705
|
Amortization and write off of deferred financing costs
|
(631)
|
(678)
|
(51)
|
(177)
|
Allowance for doubtful accounts and bad debt expense
|
(10,164)
|
(3,101)
|
(6,191)
|
(1,475)
|
Interest expense
|
1,578
|
1,714
|
428
|
447
|
Income tax (benefit) expense
|
(891)
|
56
|
(1,668)
|
14
|
Changes in operating working capital
|
|
|
|
|
Accounts receivable, prepaids, current assets
|
13,332
|
(17,790)
|
24,725
|
9,246
|
Inventory
|
3,711
|
599
|
(1,627)
|
(1,452)
|
Accounts payable and accrued liabilities
|
(2,466)
|
7,879
|
(7,505)
|
(6,430)
|
Other
|
981
|
374
|
2,938
|
(150)
|
Adjusted EBITDA
|
$ 11,324
|
$ 33,533
|
$ 4,958
|
$ 10,728
|
|
|
|
|
|
APPENDIX TABLE A-3
|
||||
RETAIL GROSS MARGIN RECONCILIATION
|
||||
(in thousands)
|
||||
(unaudited)
|
||||
|
||||
|
Year Ended December 31,
|
Quarter Ended December 31,
|
||
|
2014
|
2013
|
2014
|
2013
|
Reconciliation of Retail Gross Margin to Operating (Loss) Income:
|
|
|
|
|
Operating (loss) income
|
(3,841)
|
32,829
|
(12,786)
|
19,587
|
Depreciation and amortization
|
22,221
|
16,215
|
11,897
|
3,511
|
General and administrative
|
45,880
|
35,020
|
17,386
|
8,731
|
Less:
|
|
|
|
|
Net asset optimization revenue
|
2,318
|
314
|
637
|
3,236
|
Net, Gains (losses) on non-trading derivative instruments
|
(8,713)
|
1,429
|
(14,560)
|
1,830
|
Net, Cash settlements on non-trading derivative instruments
|
(6,289)
|
653
|
3,670
|
2,496
|
Retail Gross Margin
|
$ 76,944
|
$ 81,668
|
$ 26,750
|
$ 24,267
|
|
|
|
|
|