div looks to drop from what i read:
Bad debt expense will increase significantly as the Company’s highest growth market is
Texas where the Company, as billing agent, bears the bad debt exposure. Overall, bad debt to
relevant revenue should remain within the targeted 2% to 3% range.
Just Energy has provided guidance estimating fiscal 2015 Base EBITDA in a range between
$220 million and $230 million. This range equates to a 5% to 9% growth in year over year
EBITDA. Based on predictable finance costs and taxes, this range would result in sufficient
Base FFO to reduce the Company payout ratio under 100% for the year. Management
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expects continued declines in the payout ratio in coming years and targets a long term ratio of
60% to 65%.
Just Energy has been examining the high growth residential solar business and believes it
might be well suited to participate in the space. The Company signed more than 180,000
households to JustGreen commodity packages in fiscal 2014. It expects that its sales force
could generate solar installation contracts from many of the same or similar homeowners.
Customer aggregation at a fraction of this level would quickly place Just Energy among the
leaders in this exciting market. The Company is exploring the prospect of entering this
market during the coming year utilizing a non-capital intensive model.
During the year, Just Energy sold its ethanol plant and has designated its commercial Hudson
Energy Solar business as being held for sale and as a discontinued operation within the
financial statements. A clear current and future priority of management is the reduction of the
Company’s debt level. Just Energy continues to examine all of its operations for other noncore
assets which could be sold generating cash to reduce debt.
Executive Chair Rebecca MacDonald said, “While Just Energy will continue to grow, the
priority for management is reduction of Company debt levels. We will continue to examine
all non-core assets and, if a reasonable price is available, we will look to sell them to reduce
debt. The Just Energy of the future will have a sound
