Spark Energy, Inc. Reports Third Quarter 2016 Financial Results And Raises 2016 Guidance

HOUSTON, Nov. 09, 2016 (GLOBE NEWSWIRE) -- Spark Energy, Inc. (NASDAQ:SPKE), a Delaware corporation ("Spark"), today reported financial results for the quarter ended September 30, 2016.

Highlights
  • Achieved $20.3 million in Adjusted EBITDA, $45.2 million in Retail Gross Margin and $6.8 million in Net Income for the quarter ended September 30, 2016, representing increases of 263%, 69%, and 15%, respectively
  • Raised 2016 Adjusted EBITDA guidance range from $75.0 million - $82.0 million to $80.0 million - $85.0 million
  • Reported consistently strong unit margins across both retail natural gas and electricity segments
  • Continued improvement in overall attrition to 3.8%, representing a reduction of approximately 24% year-over-year
  • Net increase of 10,000 RCEs before acquisition activity
  • Closed on the Provider and Major acquisitions
  • Total RCE count of 753,000 as of September 30, 2016
  • Declared third quarter dividend of $0.3625 per share of Class A common stock payable on December 14, 2016

For the third quarter of 2016, Spark reported record Adjusted EBITDA of $20.3 million, record Retail Gross Margin of $45.2 million and solid Net Income of $6.8 million. This compares to Adjusted EBITDA of $5.6 million, Retail Gross Margin of $26.7 million and Net Income of $5.9 million for the third quarter of 2015, representing increases of 263%, 69%, and 15%, respectively.

"We are extremely pleased with our third quarter results," said Nathan Kroeker, Spark Energy's President and Chief Executive Officer. "Not only did we close two significant acquisitions, but we accomplished record third quarter Adjusted EBITDA and Retail Gross Margin, and also lowered our attrition rate by approximately 24% year-over-year. In addition, we saw strong organic growth of approximately 10,000 RCEs across our legacy businesses."

M&A Update

In August, Spark announced that it completed its acquisitions of the Provider Companies and the Major Energy Companies. Combined, these acquisitions delivered 341,000 RCEs, two new states, and 24 new markets to Spark. With these two transactions, Spark has now completed seven acquisitions since its initial public offering on August 1, 2014.

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