|
||||
|
|
|
|
|
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 November 12, 2014
|
|
||
|
|
|
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 November 12, 2014
|
•
|
We increased our customer count by 18% through organic marketing efforts during the third quarter.
|
•
|
We spent $8.7 million on customer acquisitions during the quarter, generating approximately $30 million in “Customer Lifetime Margin” over the next five years. See “Customer Lifetime Margin” below.
|
•
|
We entered into a purchase and sale agreement with Discount Power, Inc. for the purchase of their retail electric customer portfolio in Connecticut consisting of approximately 14,000 customers for a purchase price of $2.4 million. Regulatory approval has been obtained.
|
•
|
We entered into purchase and sale agreement with Town Square Energy, LLC for the purchase of approximately 4,100 retail electric customer contracts in Connecticut for a purchase price of $375,000, subject to regulatory approval.
|
•
|
Although our Southern California gas market acquisition campaign was extremely successful in terms of customer count, the campaign has faced challenges that have negatively impacted our third quarter results. These impacts include lower than expected consumption and higher than estimated customer attrition and bad debt expense. We have restructured the campaign to improve the economics; however, we anticipate these negative effects to continue for the next several quarters.
|
•
|
We have added nearly three times the number of new residential electric customers in New England as we did in 2Q and we’ve seen an 18% increase in small commercial sales margin quarter over quarter.
|
•
|
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,
|
•
|
changes in actual customer margins from historical estimates
|
•
|
accuracy of internal billing systems,
|
•
|
competition, and
|
•
|
the “Risk Factors” in our prospectus as described below.
|
|
September 30, 2014
|
|
December 31, 2013
|
||||
|
|
|
|
||||
Assets
|
|
|
|
||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
2,483
|
|
|
$
|
7,189
|
|
Accounts receivable, net of allowance for doubtful accounts
|
48,963
|
|
|
62,678
|
|
||
Accounts receivable-affiliates
|
484
|
|
|
6,794
|
|
||
Inventory
|
9,659
|
|
|
4,322
|
|
||
Fair value of derivative assets
|
900
|
|
|
8,071
|
|
||
Customer acquisition costs
|
14,658
|
|
|
4,775
|
|
||
Prepaid assets
|
1,303
|
|
|
1,032
|
|
||
Deposits
|
4,123
|
|
|
3,529
|
|
||
Other current assets
|
6,114
|
|
|
2,901
|
|
||
Total current assets
|
88,687
|
|
|
101,291
|
|
||
Property and equipment, net
|
4,437
|
|
|
4,817
|
|
||
Fair value of derivative assets
|
11
|
|
|
6
|
|
||
Customer acquisition costs
|
5,736
|
|
|
2,901
|
|
||
Deferred tax assets
|
22,999
|
|
|
—
|
|
||
Other assets
|
204
|
|
|
58
|
|
||
Total Assets
|
$
|
122,074
|
|
|
$
|
109,073
|
|
Liabilities and Stockholders' Equity
|
|
|
|
||||
Current liabilities:
|
|
|
|
||||
Accounts payable
|
$
|
33,694
|
|
|
$
|
36,971
|
|
Accounts payable-affiliates
|
851
|
|
|
—
|
|
||
Accrued liabilities
|
4,349
|
|
|
6,838
|
|
||
Fair value of derivative liabilities
|
1,601
|
|
|
1,833
|
|
||
Note payable
|
20,500
|
|
|
27,500
|
|
||
Other current liabilities
|
1,465
|
|
|
—
|
|
||
Total current liabilities
|
62,460
|
|
|
73,142
|
|
||
Long-term liabilities:
|
|
|
|
||||
Fair value of derivative liabilities
|
74
|
|
|
18
|
|
||
Payable pursuant to tax receivable agreement-affiliates
|
20,915
|
|
|
—
|
|
||
Other long-term liabilities
|
107
|
|
|
—
|
|
||
Total liabilities
|
83,556
|
|
|
73,160
|
|
||
Commitments and contingencies
|
|
|
|
||||
Stockholders' equity:
|
|
|
|
||||
Member's equity
|
—
|
|
|
35,913
|
|
||
Common Stock:
|
|
|
|
||||
Class A common stock, par value $0.01 per share, 120,000,000 shares authorized, zero issued and outstanding at December 31, 2013 and 3,000,000 issued and outstanding at September 30, 2014
|
30
|
|
|
—
|
|
||
Class B common stock, par value $0.01 per share, 60,000,000 shares authorized, zero issued and outstanding at December 31, 2013 and 10,750,000 issued and outstanding at September 30, 2014
|
108
|
|
|
—
|
|
||
Preferred Stock:
|
|
|
|
||||
Preferred stock, par value $0.01 per share, 20,000,000 shares authorized, zero issued and outstanding at December 31, 2013 and September 30, 2014
|
—
|
|
|
—
|
|
||
Additional paid-in capital
|
8,998
|
|
|
—
|
|
||
Retained earnings
|
1,061
|
|
|
—
|
|
||
Total stockholders' equity
|
10,197
|
|
|
35,913
|
|
||
Non-controlling interest in Spark HoldCo, LLC
|
28,321
|
|
|
—
|
|
||
Total equity
|
38,518
|
|
|
35,913
|
|
||
Total Liabilities and Stockholders' Equity
|
$
|
122,074
|
|
|
$
|
109,073
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
Revenues:
|
|
|
|
|
|
|
|
||||||||
Retail revenues (including retail revenues-affiliates of $0 and $2,460 for the three months ended September 30, 2014 and 2013, respectively, and retail revenues-affiliates of $2,170 and $2,970 for the nine months ended September 30, 2014 and 2013, respectively)
|
$
|
68,358
|
|
|
$
|
69,882
|
|
|
$
|
238,453
|
|
|
$
|
237,598
|
|
Net asset optimization revenues (expenses) (including asset optimization revenues-affiliates of $3,208 and $5,107 for the three months ended September 30, 2014 and 2013, respectively, and $10,341 and $7,872 for the nine months ended September 30, 2014 and 2013, respectively, and asset optimization revenues-affiliates cost of revenues of $6,450 and $3,344 for the three months ended September 30, 2014 and 2013, respectively, and $25,004 and $2,841 for the nine months ended September 30, 2014 and 2013, respectively)
|
(141
|
)
|
|
17
|
|
|
1,681
|
|
|
(2,922
|
)
|
||||
Total Revenues
|
68,217
|
|
|
69,899
|
|
|
240,134
|
|
|
234,676
|
|
||||
Operating Expenses:
|
|
|
|
|
|
|
|
||||||||
Retail cost of revenues (including retail cost of revenues-affiliates of less than $0.1 million for both the three and nine months ended September 30, 2014 and 2013)
|
51,863
|
|
|
60,042
|
|
|
192,371
|
|
|
182,441
|
|
||||
General and administrative (including general and administrative expense-affiliates of $0.1 million for both the three and nine months ended September 30, 2014)
|
10,634
|
|
|
7,577
|
|
|
28,494
|
|
|
26,289
|
|
||||
Depreciation and amortization
|
4,113
|
|
|
3,390
|
|
|
10,324
|
|
|
12,704
|
|
||||
Total Operating Expenses
|
66,610
|
|
|
71,009
|
|
|
231,189
|
|
|
221,434
|
|
||||
Operating income (loss)
|
1,607
|
|
|
(1,110
|
)
|
|
8,945
|
|
|
13,242
|
|
||||
Other (expense)/income:
|
|
|
|
|
|
|
|
||||||||
Interest expense
|
(615
|
)
|
|
(597
|
)
|
|
(1,150
|
)
|
|
(1,267
|
)
|
||||
Interest and other income
|
40
|
|
|
124
|
|
|
111
|
|
|
135
|
|
||||
Total other expenses
|
(575
|
)
|
|
(473
|
)
|
|
(1,039
|
)
|
|
(1,132
|
)
|
||||
Income (loss) before income tax expense
|
1,032
|
|
|
(1,583
|
)
|
|
7,906
|
|
|
12,110
|
|
||||
Income tax expense
|
613
|
|
|
14
|
|
|
777
|
|
|
42
|
|
||||
Net income (loss)
|
$
|
419
|
|
|
$
|
(1,597
|
)
|
|
$
|
7,129
|
|
|
$
|
12,068
|
|
Less: Net income attributable to non-controlling interests
|
(642
|
)
|
|
—
|
|
|
6,068
|
|
|
—
|
|
||||
Net income (loss) attributable to Spark Energy, Inc. stockholders
|
$
|
1,061
|
|
|
$
|
(1,597
|
)
|
|
$
|
1,061
|
|
|
$
|
12,068
|
|
Other comprehensive income (loss):
|
|
|
|
|
|
|
|
||||||||
Deferred gain from cash flow hedges
|
—
|
|
|
—
|
|
|
—
|
|
|
2,620
|
|
||||
Reclassification of deferred gain from cash flow hedges into net income
|
—
|
|
|
—
|
|
|
—
|
|
|
(84
|
)
|
||||
Comprehensive income (loss)
|
419
|
|
|
(1,597
|
)
|
|
7,129
|
|
|
14,604
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Net income attributable to Spark Energy, Inc. per common share
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
0.35
|
|
|
|
|
$
|
0.35
|
|
|
|
||||
Diluted
|
$
|
0.03
|
|
|
|
|
$
|
0.35
|
|
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Weighted average commons shares outstanding
|
|
|
|
|
|
|
|
||||||||
Basic
|
3,000
|
|
|
|
|
3,000
|
|
|
|
||||||
Diluted
|
13,750
|
|
|
|
|
3,000
|
|
|
|
|
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
|
Additional Paid In Capital
|
Retained Earnings
|
Total Stockholders Equity
|
Non-controlling Interest
|
Total Equity
|
||||||||||||||||||||
Balance at 12/31/13:
|
$
|
35,913
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
$
|
35,913
|
|
|||||||
Capital contributions from member and liabilities retained by affiliate
|
54,201
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
54,201
|
|
|||||||||
Distribution 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
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
212
|
|
—
|
|
212
|
|
—
|
|
212
|
|
|||||||||
Consolidated net income subsequent to the Offering
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
$
|
1,061
|
|
1,061
|
|
6,089
|
|
7,150
|
|
||||||||
Balance at 9/30/14:
|
$
|
—
|
|
3,000
|
|
10,750
|
|
$
|
—
|
|
$
|
30
|
|
$
|
108
|
|
$
|
8,998
|
|
$
|
1,061
|
|
$
|
10,197
|
|
$
|
28,321
|
|
$
|
38,518
|
|
|
Nine Months Ended September 30,
|
||||||
|
2014
|
|
2013
|
||||
|
|
|
|
||||
Cash flows from operating activities:
|
|
|
|
||||
Net income
|
$
|
7,129
|
|
|
$
|
12,068
|
|
Adjustments to reconcile net income to net cash flows provided by operating activities:
|
|
|
|
||||
Depreciation and amortization expense
|
10,324
|
|
|
12,704
|
|
||
Deferred income taxes
|
638
|
|
|
—
|
|
||
Stock based compensation
|
362
|
|
|
—
|
|
||
Amortization and write off of deferred financing costs
|
580
|
|
|
501
|
|
||
Allowance for doubtful accounts and bad debt expense
|
3,973
|
|
|
1,626
|
|
||
(Gain) loss on derivatives, net
|
(262
|
)
|
|
(2,040
|
)
|
||
Current period cash settlements on derivatives, net
|
7,252
|
|
|
1,876
|
|
||
Changes in assets and liabilities:
|
|
|
|
||||
Decrease in accounts receivable
|
9,741
|
|
|
23,265
|
|
||
Decrease in accounts receivable-affiliates
|
6,310
|
|
|
4,998
|
|
||
Increase in inventory
|
(5,338
|
)
|
|
(2,051
|
)
|
||
Increase in customer acquisition costs
|
(20,366
|
)
|
|
(3,112
|
)
|
||
Increase in prepaid and other current assets
|
(4,658
|
)
|
|
(1,227
|
)
|
||
Increase in other assets
|
(146
|
)
|
|
(7
|
)
|
||
Decrease in accounts payable and accrued liabilities
|
(5,890
|
)
|
|
(14,309
|
)
|
||
Increase in accounts payable-affiliates
|
851
|
|
|
—
|
|
||
Decrease in other liabilities
|
1,465
|
|
|
(517
|
)
|
||
Net cash provided by operating activities
|
11,965
|
|
|
33,775
|
|
||
Cash flows from investing activities:
|
|
|
|
||||
Purchases of property and equipment
|
(2,214
|
)
|
|
(986
|
)
|
||
Net cash used in investing activities
|
(2,214
|
)
|
|
(986
|
)
|
||
Cash flows from financing activities:
|
|
|
|
||||
Borrowings on notes payable
|
60,280
|
|
|
44,500
|
|
||
Payments on notes payable
|
(38,280
|
)
|
|
(43,500
|
)
|
||
Member contributions
|
25,201
|
|
|
—
|
|
||
Member distributions
|
(61,607
|
)
|
|
(38,055
|
)
|
||
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
|
)
|
|
—
|
|
||
Net cash used in financing activities
|
(14,457
|
)
|
|
(37,055
|
)
|
||
Decreases in cash and cash equivalents
|
(4,706
|
)
|
|
(4,266
|
)
|
||
Cash and cash equivalents—beginning of period
|
7,189
|
|
|
6,558
|
|
||
Cash and cash equivalents—end of period
|
$
|
2,483
|
|
|
$
|
2,292
|
|
Supplemental Disclosure of Cash Flow Information:
|
|
|
|
||||
Non cash items:
|
|
|
|
||||
Issuance of Class B common stock
|
$
|
28,486
|
|
|
$
|
—
|
|
Liabilities retained by affiliate
|
29,000
|
|
|
—
|
|
||
Liability due to tax receivable agreement
|
23,636
|
|
|
—
|
|
||
Tax benefit from tax receivable agreement
|
20,915
|
|
|
—
|
|
||
Initial allocation of non-controlling interest
|
22,232
|
|
|
—
|
|
||
Property and equipment purchase accrual
|
81
|
|
|
—
|
|
||
Cash paid during the period for:
|
|
|
|
||||
Interest
|
$
|
484
|
|
|
$
|
1,500
|
|
Taxes
|
$
|
150
|
|
|
$
|
195
|
|
|
Three Months
Ended September 30,
|
|
Nine Months
Ended September 30,
|
||||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
|
|
|
|
|
|
|
|
||||||||
|
(in millions, except per unit operating data)
|
||||||||||||||
Retail Natural Gas Segment
|
|
|
|
|
|
|
|
||||||||
Total Revenues
|
$
|
16.5
|
|
|
$
|
12.9
|
|
|
$
|
102.2
|
|
|
$
|
83.3
|
|
Retail Cost of Revenues
|
10.2
|
|
|
7.9
|
|
|
77.4
|
|
|
58.3
|
|
||||
Less: Net Asset Optimization Revenues
|
(0.1
|
)
|
|
—
|
|
|
1.7
|
|
|
(2.9
|
)
|
||||
Less: Net Gains (Losses) on non-trading derivatives, net of cash settlements
|
(1.5
|
)
|
|
0.8
|
|
|
(2.6
|
)
|
|
(2.4
|
)
|
||||
Retail Gross Margin—Gas
|
7.9
|
|
|
4.2
|
|
|
25.7
|
|
|
30.3
|
|
||||
Retail Gross Margin
—
Gas per MMBtu
|
$
|
4.41
|
|
|
$
|
2.11
|
|
|
$
|
2.36
|
|
|
$
|
2.59
|
|
Retail Electricity Segment
|
|
|
|
|
|
|
|
||||||||
Total Revenues
|
$
|
51.7
|
|
|
$
|
57.0
|
|
|
$
|
138.0
|
|
|
$
|
151.4
|
|
Retail Cost of Revenues
|
41.6
|
|
|
52.2
|
|
|
115.0
|
|
|
124.1
|
|
||||
Less: Net Gains (Losses) on non-trading derivatives, net of cash settlements
|
3.3
|
|
|
0.4
|
|
|
(1.5
|
)
|
|
0.2
|
|
||||
Retail Gross Margin—Electricity
|
6.8
|
|
|
4.4
|
|
|
24.5
|
|
|
27.1
|
|
||||
Retail Gross Margin—Electricity per MWh
|
$
|
15.12
|
|
|
$
|
8.43
|
|
|
$
|
20.41
|
|
|
$
|
18.66
|
|
•
|
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.
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
(in thousands)
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
Reconciliation of Adjusted EBITDA to Net Income (Loss):
|
|
|
|
|
|
|
|
||||||||
Net Income (Loss)
|
$
|
419
|
|
|
$
|
(1,597
|
)
|
|
$
|
7,129
|
|
|
$
|
12,068
|
|
Depreciation and amortization
|
4,113
|
|
|
3,390
|
|
|
10,324
|
|
|
12,704
|
|
||||
Interest Expense
|
615
|
|
|
597
|
|
|
1,150
|
|
|
1,267
|
|
||||
Income Tax Expense
|
613
|
|
|
14
|
|
|
777
|
|
|
42
|
|
||||
EBITDA
|
5,760
|
|
|
2,404
|
|
|
19,380
|
|
|
26,081
|
|
||||
Less:
|
|
|
|
|
|
|
|
||||||||
Net, Gains (losses) on derivative instruments
|
(1,178
|
)
|
|
2,682
|
|
|
262
|
|
|
2,040
|
|
||||
Net, Cash settlements on derivative instruments
|
3,004
|
|
|
(1,066
|
)
|
|
(7,252
|
)
|
|
(1,876
|
)
|
||||
Customer acquisition costs
|
8,698
|
|
|
2,246
|
|
|
20,366
|
|
|
3,112
|
|
||||
Plus:
|
|
|
|
|
|
|
|
||||||||
Non-cash compensation expense
|
$
|
362
|
|
|
$
|
—
|
|
|
$
|
362
|
|
|
$
|
—
|
|
Adjusted EBITDA
|
$
|
(4,402
|
)
|
|
$
|
(1,458
|
)
|
|
$
|
6,366
|
|
|
$
|
22,805
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
(in thousands)
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
Reconciliation of Adjusted EBITDA to net cash provided by (used in) operating activities:
|
|
|
|
|
|
|
|
||||||||
Net cash provided by (used in) operating activities
|
$
|
(13,693
|
)
|
|
$
|
(3,794
|
)
|
|
$
|
11,965
|
|
|
$
|
33,775
|
|
Amortization and write off of deferred financing costs
|
(355
|
)
|
|
(270
|
)
|
|
(580
|
)
|
|
(501
|
)
|
||||
Allowance for doubtful accounts and bad debt expense
|
(1,946
|
)
|
|
(540
|
)
|
|
(3,973
|
)
|
|
(1,626
|
)
|
||||
Interest expense
|
615
|
|
|
597
|
|
|
1,150
|
|
|
1,267
|
|
||||
Income tax expense
|
613
|
|
|
14
|
|
|
777
|
|
|
42
|
|
||||
Changes in operating working capital
|
|
|
|
|
|
|
|
||||||||
Accounts receivable, prepaids, current assets
|
2,505
|
|
|
(12,064
|
)
|
|
(11,393
|
)
|
|
(27,036
|
)
|
||||
Inventory
|
5,649
|
|
|
2,854
|
|
|
5,338
|
|
|
2,051
|
|
||||
Accounts payable and accrued liabilities
|
1,277
|
|
|
11,647
|
|
|
5,039
|
|
|
14,309
|
|
||||
Other
|
933
|
|
|
98
|
|
|
(1,957
|
)
|
|
524
|
|
||||
Adjusted EBITDA
|
$
|
(4,402
|
)
|
|
$
|
(1,458
|
)
|
|
$
|
6,366
|
|
|
$
|
22,805
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
(in thousands)
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
Reconciliation of Retail Gross Margin to Operating Income (Loss):
|
|
|
|
|
|
|
|
||||||||
Operating Income (loss)
|
$
|
1,607
|
|
|
$
|
(1,110
|
)
|
|
$
|
8,945
|
|
|
$
|
13,242
|
|
Depreciation and amortization
|
4,113
|
|
|
3,390
|
|
|
10,324
|
|
|
12,704
|
|
||||
General and administrative
|
10,634
|
|
|
7,577
|
|
|
28,494
|
|
|
26,289
|
|
||||
Less:
|
|
|
|
|
|
|
|
||||||||
Net asset optimization revenue
|
(141
|
)
|
|
17
|
|
|
1,681
|
|
|
(2,922
|
)
|
||||
Net, Gains (losses) on derivative instruments
|
(1,163
|
)
|
|
1,787
|
|
|
5,847
|
|
|
(401
|
)
|
||||
Net, Cash settlements on derivative instruments
|
3,039
|
|
|
(539
|
)
|
|
(9,959
|
)
|
|
(1,843
|
)
|
||||
Retail Gross Margin
|
$
|
14,619
|
|
|
$
|
8,592
|
|
|
$
|
50,194
|
|
|
$
|
57,401
|
|