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Wednesday May 13, 2015 12:41 PM ET.

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Crius Energy Trust Reports Continued Strong Financial Performance and Net Customer Growth in Q1 21055 hours ago by CNW Group

Fourth consecutive quarter of strong financial results drives payout ratio for the last twelve months to 60% of Distributable Cash

NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE SERVICES

Crius Energy Trust (TSX: KWH.UN) ("Crius Energy" or the "Trust"), today announced its financial results as at and for the period ended March 31, 2015. All figures in U.S. dollars unless otherwise noted.

Q1 2015 Highlights

    --  Fourth consecutive quarter of strong financial performance
        o Adjusted EBITDA of $14.5 million, compared to a loss of $4.3
          million in the first quarter of 2014.
        o Gross margin of $40.3 million, or 23.9% of revenue, compared
          to $19.1 million, or 10.7% of revenue, in the first quarter
          of 2014.
        o Distributable cash of $8.6 million and total distributions
          paid of $4.8 million, representing a quarterly payout ratio
          of 55.4%.

    --  Net growth of 12,000 customers representing a 2.1% increase in
        the Company's electricity and natural gas portfolio
        o Customer growth highlighted by strong contributions from
          Direct Marketing and Commercial channels.
        o Customer attrition nominally lower relative to the fourth
          quarter of 2014, negatively impacted by non-renewals,
          particularly in the Company's Commercial segment.

    --  Continued strong growth in solar energy business
        o Solar revenue of $2.3 million, a 146.7% increase from $0.9
          million in the first quarter of 2014 and 54% greater than
          $1.5 million in the fourth quarter of 2014.
        o Commercial solar sales, which were initiated in the fourth
          quarter of 2014, represented over half of the total 9.8 MW in
          solar generation capacity sold in the first quarter of 2015.

    --  Entered into a strategic partnership with Comcast
        o Entered into an exclusive three-year agreement with Comcast
          Corporation (Nasdaq: CMCSA, CMCSK) ("Comcast") to offer
          electricity and natural gas products to Comcast customers
          under the white label brand "Energy Rewards".
        o Comcast is the largest video, high-speed Internet and phone
          provider to residential customers in the U.S.
        o Started offering energy products to Comcast customers in
          Pennsylvania and Illinois in April 2015.

    --  Enhanced relationship with SolarCity
        o Entered into an amended agreement with SolarCity to expand
          geography and increase revenue contribution from solar sales.
        o Added new markets, including New Mexico, Nevada, and
          Pennsylvania, with plans to add additional markets throughout
          2015.
        o Increased margin contribution from solar sales with
          additional long-term revenue received over a 15-year period.

"In the first quarter of 2015, we delivered strong financial performance and net customer growth highlighting the strength of our business model," commented Michael Fallquist, CEO of Crius Energy Trust. "Looking ahead to 2015, we expect continued strong financial performance to result in a favorable payout ratio giving the company added flexibility to execute on strategic growth initiatives. We expect our entry into the Texas electricity market, expansion in the commercial customer segment, execution on our strategic partnership with Comcast and continued solar growth to drive long-term unitholder value as we expand our business."

HIGHLIGHTS SUBSEQUENT TO QUARTER END

    --  Completed largest acquisition since IPO
        o On April 1, 2015, the Company closed on the acquisition of
          TriEagle Energy LP ("TriEagle Energy"), a Houston-based
          energy retailer with approximately 200,000 customers in New
          Jersey, Pennsylvania and Texas, for a purchase price of $19.1
          million.
        o The acquisition is expected to provide cash flow accretion in
          the year for the Trust's unitholders with significant growth
          upside through commercial customer growth and geographic
          expansion.

    --  Expanded credit facility with Macquarie Energy LLC
        o Crius Energy expanded its credit facility with Macquarie
          Energy LLC ("Macquarie Energy") to accommodate future growth
          initiatives and the addition of TriEagle Energy's business.
        o Increased overall exposure limit from $150.0 million to
          $250.0 million.
        o Reduced fee structure through adjustments to the volumetric
          fee and elimination of certain other fees.
        o Improved flexibility to procure energy from market
          counterparties and an increased ability to enter into fixed
          price products for a term up to 60 months.

Review of Quarterly Results

The first quarter of 2015 highlights the overall strength of the Crius Energy platform as Management delivered strong financial results and net electricity and natural gas customer growth in the period.

Total revenue for the quarter was $168.3 million, a decline of 5.2% from the first quarter of 2014, primarily reflecting higher volumes in the previous quarter. Electricity revenue was $141.0 million and natural gas revenue was $24.2 million representing declines of 6.6% and 2.3% respectively.

Solar revenues continued to grow in the first quarter of 2015. Revenues increased to $2.3 million, up 146.7% from $0.9 million in the first quarter of 2014 and up 53% from $1.5 million in the fourth quarter of 2014. The increased revenue was driven by record sales as the Company sold systems with a total generation capacity of 9.8 MW in the period and reflects continued success in the residential solar market coupled with the Company's fourth quarter 2014 initiative to enter the commercial solar market.

Gross margin was $40.3 million in the first quarter of 2015, or 23.9% of revenue, a 111.1% increase from $19.1 million in first quarter of 2014, primarily attributable to improved energy procurement and risk management in the current quarter together with the severe impacts of the "polar vortex" weather event experienced in the first quarter of last year and an increased contribution from solar energy sales. Gross margins in the quarter benefited from increased electricity and natural gas usage per customer due to colder than normal temperatures together with low energy prices and volatility.

Adjusted EBITDA in the quarter was $14.5 million compared to a loss of $4.3 million in the first quarter of 2014. On a trailing twelve-month basis, Adjusted EBITDA was $57.3 million, the highest for any twelve-month period in the Company's history. Distributable Cash was $8.6 million, compared to a loss of $5.3 million in the first quarter of 2014. The Trust paid $4.8 million in distributions in the period, representing a payout ratio of 55.4% in the period and the fourth consecutive quarter with a payout ratio less than 75%. On a trailing twelve-month basis, the Trust's payout ratio was approximately 60%.

In the quarter, the Company had a 2.1% increase in customers, its first net organic growth in customers since the fourth quarter of 2013 as the Company has managed through the challenges resulting from the "polar vortex" weather event in early 2014. Customer growth was driven by key contributions from the Direct Marketing and Commercial channels. Gross customer attrition trended down slightly in the first quarter of 2015 when compared with the fourth quarter of 2014 and was down materially over the first quarter of 2014. However, attrition was higher than expected by Management and negatively impacted by customer losses, particularly in the Commercial segment that had been added through the Superior and HOP acquisitions, as the Company chose not to compete with low margin competitive offerings. The Trust had approximately 800,000 customers pro-forma the acquisition of TriEagle Energy which closed on April 1, 2015.

The Company finished the quarter in a strong cash position. The Trust has no long-term debt and total cash and cash availability increased to $48.2 million at the end of the quarter from $46.3 million at December 31, 2014. Cash and cash availability consisted of $13.1 million in cash and cash equivalents and $35.1 million available under the credit facility. Cash flows from operating activities for the quarter ending March 31, 2015 were $7.3 million, compared to negative $2.3 million in the first quarter of 2014.

The Trust's consolidated financial statements as at and for the period ended March 31, 2015 and accompanying management's discussion and analysis ("MD&A") have been filed with the securities regulators and are available via SEDAR at www.sedar.com and are available on the Trust's website at www.criusenergytrust.ca.