First Quarter Gross Profit Margin of 25.1%; up 460 bps year-over-year
Core Business Adjusted EBITDA up $4.3 million year-over-year
Amended Credit Agreement Signed to Reset Covenants
(Spark Power reports in Canadian dollars unless otherwise specified)
OAKVILLE, ON / ACCESSWIRE / May 11, 2023 / Spark Power Group Inc. (TSX:SPG), parent company of Spark Power Corp. ("Spark Power" or the "Company"), has announced its financial results for the three-month period, ended March 31, 2023. All amounts are in Canadian dollars unless otherwise specified.
"I am pleased to see gross margin expansion in our core business lines and improvement on EBTIDA margins as we execute our go-to-market plans that are part of our new 3-year "Let's Grow Better" strategy, intentionally shifting our business to pursue more profitable growth opportunities," said Richard Jackson, President & CEO, Spark Power Corp. "We achieved a significant milestone in the first quarter as part of our ‘One Spark' platform integration, with our entire US business now on a single ERP system, paving the way for an improved customer experience and the realization of a scalable platform to support future growth," added Jackson.
"Our ongoing efforts to improve gross margin realization and rationalize our cost structure are evident in our results," said Richard Perri, Executive Vice President & CFO of Spark Power Corp. "We continue to generate positive cash flow from operations, with a focus on speed to invoice, and anticipate increasing free cash flow as our US ERP migration achieves steady state through the second quarter. With the Bullfrog Power Inc. transition completed, we worked with our lender to reset our banking covenants to align with the core business. We are poised to execute on the next stage of our strategic initiatives; scaling for accretive earnings growth and delivering shareholder value," added Perri.
Financial Highlights - Q1 2023
Business Highlights - Q1 2023
Financial Outlook
Spark Power's First-Quarter 2023 Management Discussion and Analysis includes an Outlook section with a Business and Financial Outlook update. The latter includes some ranges of performance targets for various financial metrics for the Company in fiscal 2023.
Quarterly Conference Call
Management is hosting an investor conference call and webcast on Tuesday, May 16, 2023, at 8:30 a.m. ET to discuss its financial results in greater detail. To join by telephone dial: +1-888-506-0062 (toll-free in North America) or +1-973-528-0011 (local and international), with conference ID: 48345 and entry code: 585333. To listen to a live webcast of the call, please visit the investor relations section of Spark Power's website at https://sparkpowercorp.com/about-us/investor-relations/. An archived replay of the webcast will be available following the conclusion of the call.
Please dial in or log on 10 minutes prior to the start time to provide sufficient time to register for the event.
Spark Power's First-Quarter 2023 Interim Unaudited Condensed Consolidated Financial Statements and Management Discussion and Analysis are available on Spark Power's website www.sparkpowercorp.com and will be filed on SEDAR at www.sedar.com.
About Spark Power
Spark Power is the leading independent provider of end-to-end electrical services and operations and maintenance services to the industrial, utility, and renewable asset markets in North America. We work to earn the right to be our customers' Trusted Partner in Power™. Our highly skilled and dedicated people, located in the communities we serve, combined with our knowledge of the power industry, technology expertise, and commitment to safety, ensures we deliver the right solutions that keep our customers' operations up and running today and better equipped for tomorrow. Learn more at www.sparkpowercorp.com.
Forward-Looking Statements
This news release may contain forward-looking statements (within the meaning of applicable securities laws), which reflect Spark Power's current expectations regarding future events. Forward-looking statements are identified by words such as "believe", "anticipate", "project", "expect", "intend", "plan", "will", "may", "estimate" and other similar expressions. The forward-looking statements in this press release include statements regarding the Company's opportunities for future growth, acquisitions and expansions, future liquidity, pro forma annualized costs, the calculation of charges, and other statements that are not historical fact, and without limitation, include statements by Messrs. Jackson and Perri regarding execution on Spark Power's growth strategy, earnings growth, SG&A efficiency realizations, the stabilizing global economy, the support of third parties, and the successful implementation Spark Power's technology platform. The forward-looking statements in this news release are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. Several factors could cause actual results to differ materially from the results discussed in the forward-looking statements. Such factors include, among others: the ability of the Company to implement its planned efficiency measures; currency fluctuations; disruptions or changes in the credit or security markets; results of operations; and general developments, market and industry conditions. Readers, therefore, should not place undue reliance on any such forward-looking statements. Further, these forward-looking statements are made as of the date of this news release and, except as expressly required by applicable law, neither Spark Power Group Inc. nor Spark Power Corp. assumes any obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
Non-IFRS Measures
The Company prepares and releases unaudited consolidated interim financial statements and audited consolidated annual financial statements prepared in accordance with IFRS. In this and other earnings releases and investor conference calls, as a complement to results provided in accordance with IFRS, the Company also discloses and discusses certain financial measures not recognized under IFRS and that do not have standard meanings prescribed by IFRS. These include "EBITDA", "Adjusted EBITDA", "Pro-forma Adjusted EBITDA", "EBITDA Margin", "Adjusted EBITDA Margin", "Adjusted Working Capital", and "Adjusted Net and Comprehensive Income (Loss)". These non-IFRS measures are used to provide investors with supplemental measures of Spark Power's operating performance and highlight trends in Spark Power's business that may not otherwise be apparent when relying solely on IFRS measures. Spark also believes that providing such information to securities analysts, investors and other interested parties who frequently use non-IFRS measures in the evaluation of issuers will allow them to better compare Spark Power's performance against others in its industry. Management also uses non-IFRS measures in order to facilitate operating performance comparisons from period to period, to prepare annual operating budgets and forecasts and to determine components of management compensation. For a reconciliation of these non-IFRS measures, see the Company's management's discussion and analysis for the three months ended March 31, 2023. The non-IFRS measures should not be construed as alternatives to results prepared in accordance with IFRS.
Selected Consolidated Financial Information:
Reconciliation of Net loss to EBITDA and Adjusted EBITDA:
The following table is a summary of Spark Power's results from continuing operations for the periods indicated:
Investor and Regulatory Inquiries:
Richard Perri, Executive Vice President & Chief Financial Officer
[email protected]
+1 (905) 829-3336
Media Inquiries:
Lauren D'Andrea, Manager of Corporate Communications & Brand
[email protected]
+1 (416) 902-4393
SOURCE: Spark Power Group Inc.