Q1 2021 Spark Energy Inc Earnings Call

But writing a summary of results from the first quarter and then our CFO, Jim Jones will provide more details on the financials.

In the first quarter, we reported.

Adjusted EBITDA of $32 $7 million the decrease in gross margin year over year was largely offset by the reduction in G&A expenses in customer acquisitions cost.

Sparks adjusted EBITDA reflects normal day to day operations of the company absent the week of the winter storm here, which obviously was an extraordinary nonrecurring events.

Winter storm year resulted in a $60 million add back to adjusted EBITDA as a one time non recurring of that law.

Looking forward to the remainder of 2021, we believe the storm had a negligible impact on our future ambitions and has already opened up a number of potential acquisition opportunities as well as for based the current competitive environment.

Spark will continue to execute on on our initiatives of ramping up organic sales along with several acquisition opportunities. We are also excited to announce on January 19, 2021, we increased our working capital facility by $25 million to a new total of $227 5 million.

As of March 31, 2021, we have one.

$141 million of total liquidity.

To fund our ongoing operations on potential tuck in transactions in future endeavors.

We would like to thank our bank group for their partnership and continued support we believe this liquidity puts us in an advantageous position in regard to new opportunities that we're currently working on with number of projects in the renewable space stay tuned as we expect to make several announcements for the coming months.

Moving on our focus on ESG strategy is transforming the company into new areas that supply market.

That concludes my prepared remarks, now I'll turn the call over to him for his financial review.

Thank you Keith good morning.

In the quarter, we achieved $32 7 million in adjusted EBITDA compared to last year's first quarter of $30 3 million.

Retail gross margin for the quarter was $50 million compared to $55 5 million last year the impact of winter storm Yuri on adjusted EBITDA and retail gross margin resulted in add backs of 60 million and $64 9 million respectively.

In our retail electricity segment gross margin was $30 6 million compared to $30 8 million in the first quarter last year volumes were lower due to a reduction in our customer base. However, our load is now concentrated in stroke for margin residential customers.

And our retail natural gas segment gross margin was $19 4 million compared to $24 7 million in the first quarter last year.

This decrease was attributable to lower volumes and improved unit margins as a result of favorable commodity prices.

G&A expenses of $12 7 million were lower compared to $25 7 million in the first quarter last year, primarily due to a decrease in legal expenses bad debt executive compensation employee cost and broker fees incurred in 2020.

Total rcs in the first quarter.

367000.

Our attrition of for 2% is down from five 7% from the first quarter of last year total Rcs in the first quarter last year were 585000.

Our net loss for the quarter was $27 6 million.

For income.

A negative 66 cents per fully diluted share compared to net income of $10 1 million or <unk> 20 per fully diluted share for the first quarter of 2020. The decrease in net income is driven by reduced gross margin due to the impact of winter storm Aerie, which I previously described.

Partially offset by the noncash mark to market accounting associated with the hedges.

We put in place to lock in margins on our retail contracts.

Lower G&A and an income tax benefit.

We had a mark to market gain this quarter of $5 9 million compared to a mark to market loss of $7 9 million a year ago.

As we have reminded investors in the past the noncash.

Mark to market movements do not affect the actual cash we expect to receive on our fixed price contracts. This is why we don't believe net income is a good indicator of our business performance and we continue to guide investors away from net income and towards adjusted EBITDA as an indicator of our business performance on.

March 15th in April 15th we paid the quarterly cash dividend on our class a common stock and series a preferred stock respectively. On April 20, <unk>, we announced first quarter dividends of $18 <unk> per share on our common stock to be paid June 15 and 50.

For $6 eight per share on the preferred stock to be paid July 15th.

That's all I have back to the UK.

Thanks, Jim entering the second quarter of 2021, we're committed to investing in multiple sales channels that will ensure business can grow our customer book post.

COVID-19 period, we want to thank our employees and suppliers for their hard work producing a good quarter and one on spark customers for choosing us as their energy provider, we look for to some big news connecting you soon thank you very much.

Ladies and gentlemen. This concludes today's event you may disconnect. Your lines will go on for the webcast at this time and have a wonderful day.

Okay.

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