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Spark Energy Enters Agreement To Acquire ~50,000 RCEs
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In reporting second quarter results, Spark Energy said that, subsequent to quarter end, Spark entered into an agreement to acquire ~50,000 RCEs
Spark further confirmed that, on May 25th, 2021, it had entered into four agreements to acquire a total of approximately 56,900 RCEs. EnergyChoiceMatters.com had first reported in May that Spark was acquiring a book from Starion Energy
The customers from the May book acquisitions, "are expected to be immediately accretive to Adjusted EBITDA," Spark said
Spark's total RCE count was 347,000 as of June 30, 2021, compared to 367,000 as of March 31, 2021.
Spark reported average monthly attrition of 3.3%
"We have completed high grading our existing customer contracts and are pivoting back to growth through both acquisitions and organic sales," Spark said
"Additionally, we plan to leverage our customer book and operational expertise to vertically integrate our supply chain with multiple sustainable energy generation projects. While continuing to focus on growing the existing business, we believe there are numerous complimentary avenues in the green energy space that can supplement our history of strong earnings," said Keith Maxwell, Spark's President and Chief Executive Officer.
Spark reported total liquidity of $151.8 million as of June 30, 2021
For the quarter ended June 30, 2021, Spark reported Adjusted EBITDA of $14.4 million compared to Adjusted EBITDA of $23.8 million for the quarter ended June 30, 2020. While gross margin was lower year-over-year, the decrease in gross margin was partially offset by decreases in G&A expenses and Customer Acquisition Cost spending.
For the quarter ended June 30, 2021, Spark reported Retail Gross Margin of $26.4 million compared to Retail Gross Margin of $45.0 million for the quarter ended June 30, 2020. This decrease of $18.6 million was primarily attributable to fewer customers in the company's overall portfolio.
Net income for the quarter ended June 30, 2021, was $24.8 million compared to net income of $26.8 million for the quarter ended June 30, 2020. The decrease compared to the prior year was primarily the result of lower margin driven by lower customer counts partially offset by a decrease in G&A and depreciation and amortization.
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Discloses Previously Reported Recent Acquisitions Also Added 57,000 RCEs
Q2 Adjusted EBITDA Lower On Decline In RCEs
August 4, 2021
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Copyright 2010-21 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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