Via Transportation, Inc. · NYSE:VIA
Via Transportation — Spark Energy — Investor Presentation (May 2017)
27 slides from Via Transportation's investor presentation, May 12, 2017
Slide 1: Investor Presentation May 2017
Investor Presentation May 2017
Slide 2: Safe Harbor Statement
1 Safe Harbor Statement This presentation contains forward-looking statements that are subject to a number of risks and uncertainties, many of which are beyond our control. These statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section
Slide 3: Spark Energy at a Glance
Spark Energy at a Glance Spark Energy, Inc. Independent Retail Energy Services Provider Headquartered: Houston, TX Founded: 1999 IPO: July 2014 Ticker / Exchange: SPKE / NASDAQ Global Select Market Market Capitalization: $543.1MM Debt $22.2MM Preferred Stock: $40.3MM Enterprise Value: $605.6MM Annua
Slide 4: Spark Energy Highlights
3 Spark Energy Highlights 2017 annual Adjusted EBITDA guidance of $110MM - $120MM Nine acquisitions completed since IPO, creating significant shareholder value Most recent acquisitions include a drop-down from sponsor and a related book purchase that, combined, add approximately 60,000 RCEs an
Slide 5: How Spark Energy Serves its Customers
4 How Spark Energy Serves its Customers Delivering Electricity Delivering Natural Gas GENERATION SPARK ENERGY SPARK ENERGY DISTRIBUTION DISTRIBUTION PRODUCTION TRANSPORTATIONTRANSMISSION Green and Renewable Products Stable and Predictable Energy Costs Potential Cost Savings Our Value Proposition to
Slide 6: Opportunities for Organic and M&A Growth
5 Opportunities for Organic and M&A Growth Natural Gas Electricity 39MM Eligible Customers1,2 18% Penetration <1% Spark Share 63MM Eligible Customers2 32% Penetration <1% Spark Share Only 18% of eligible natural gas customers and 32% of eligible electricity customers have made a competitive supplier
Slide 7: Customer Lifetime Value Strategy
6 Customer Lifetime Value Strategy Actively Managed Customer Base Drives Profitability Multi-channel sales Diverse sales geography Leverage analytics to determine market entry and product tailoring Contracted revenue model with subscription-like flow Sophisticated Customer Acquisition Model
Slide 8: Spark's Geographical Diversity: States and Utility Territories
7 Spark’s Geographical Diversity: 19 States and 91 Utility Territories Residential Customer Equivalents RCEs (In thousands) Electricity Percent Natural Gas Percent Total Percent East 471 80% 114 58% 585 74% Midwest 50 8% 53 27% 103 13% Southwest 71 12% 30 15% 101 13% Total 592 100% 197 100% 789 100%
Slide 9: Proven Track Record of Acquisitions and Integration
8 Proven Track Record of Acquisitions and Integration Recent Transactions ~65,000 RCEs 13 New Markets July 2015 ~40,000 RCEs 7 New Markets July 2015 ~12,500 RCEs Connecticut December 2014 ~9,500 RCEs Northern California March 2015 ~121,000 RCEs 9 New Markets August 2016 ~220,000 RCEs 15 New Markets
Slide 10: Multiple Brands and Sales Channels Enhance Our Ability to Acquire Customers Organically
9 Multiple Brands and Sales Channels Enhance Our Ability to Acquire Customers Organically • Multiple brands allow for brand positioning and winback strategies not previously available • Outsourced vendor relationships allow rapid scaling and low fixed costs while driving quality, efficiency and flex
Slide 11: Portfolio Diversification
75% 25% 10 Portfolio Diversification 60% 40% Fixed 77% Variable 23% Commercial Residential Both product and customer mix, combined with geographic diversification supports stable cash flow Commodity Product Customer Based on RCEs as of March 31, 2017 Electricity Gas
Slide 12: Conservative Capitalization Minimizes Risk
11 Conservative Capitalization Minimizes Risk Leverage Ratio2 Debt2,3 $22.2 TTM Adjusted EBITDA $95.0MM Leverage Ratio 0.2x $107.5 million syndicated credit facility1 $82.5 million working capital line $22.2 million drawn on $25.0 million acquisition tranche2 Low cost of capital Currently
Slide 13: Managing Commodity Price Risk
12 Managing Commodity Price Risk Proven hedging strategy that has been refined over Spark Energy’s 18 year history Demonstrated ability to “weather the storm” through up-and-down commodity markets, extreme weather events, and down economies Disciplined risk management supports aggressive growt
Slide 14: Creating Shareholder Value
13 Creating Shareholder Value -25% 25% 75% 125% 175% 01/01/15 04/01/15 07/01/15 10/01/15 01/01/16 04/01/16 07/01/16 10/01/16 01/01/17 04/01/17 Spark Energy, Inc. NASDAQ Composite Russell 2000 As of May 5, 2017 162% Total Shareholder Return since January 2015 Total Shareholder Return assumes an inves
Slide 15: Key Investment Highlights
Key Investment Highlights Proven Track Record of Accretive Acquisitions and Integrations 9 Transactions since IPO Consistent Organic Growth ~5% Organic customer growth last year Conservative Capitalization and Risk Management 0.2x Leverage Ratio Committed to the Dividend and Total Shareholder Return
Slide 16: Investor Relations Contact Information
Investor Relations Contact Information Investor Relations Spark Energy, Inc. 12140 Wickchester Lane, Suite 100 Houston, TX 77079 http://ir.sparkenergy.com/ Contact: Robert Lane ir@sparkenergy.com 832-200-3727 15
Slide 17: Appendix
Appendix
Slide 18: Spark by the Numbers
17 Spark by the Numbers $36.9 $81.9 $115.0 $21.1 $34.2 $- $5.0 $10.0 $15.0 $20.0 $25.0 $30.0 $35.0 $40.0 $- $25.0 $50.0 $75.0 $100.0 $125.0 2015 2016 2017E 1Q16 1Q17 Adjusted EBITDA ($MM) ($ in millions) 2015 2016 20171 1Q16 1Q17 Revenue $358.2 $546.7 - $110.5 $194.3 Retail Gross Margin $113.6 $182.
Slide 19: Proven Leadership
18 Proven Leadership Robert Lane • Vice President and Chief Financial Officer • Former CFO of Emerge Energy Services LP (NYSE:EMES) • Experienced in M&A, integration and capital markets throughout the energy sector • Certified Public Accountant and Chartered Financial Analyst Jason Garrett • Executi
Slide 20: Board of Directors
19 Board of Directors W. Keith Maxwell III • Chairman of the Board of Directors Mr. Maxwell serves as non-executive Chairman of the Board of Directors, and was appointed to this position in connection with the IPO. Mr. Maxwell also serves as Chief Executive Officer of NuDevco Partners, LLC and Natio
Slide 21: Up-C Structure
20 Up-C Structure Public Spark Energy, Inc. Sponsor Spark HoldCo Operating Subsidiaries Class A Common Stock 6,499,504 Shares1 • Publicly traded • 100% of economic interest in Spark Energy, Inc. Class B Common Stock 10,742,563 Shares1 • Not publicly traded • No economic rights2 1Shares as of May 5,
Slide 22: Spark in the Community
21 Spark in the Community Through Spark’s work with the Arbor Day Foundation, Spark is able to extend its environmental efforts far beyond green energy. Spark helps Lemonade Day introduce youth to the concept of starting and operating their own lemonade stand businesses while teaching the real-world
Slide 23: Appendix: Reg. G Schedules
Appendix: Reg. G Schedules
Slide 24: Reg. G: Adjusted EBITDA Reconciliation
23 Reg. G ($ in thousands) 2015 2016 1Q16 1Q17 Net income $25,975 $65,673 $15,741 $11,386 Depreciation and amortization 25,378 32,788 6,789 9,232 Interest expense 2,280 8,859 753 3,445 Income tax expense 1,974 10,426 988 2,406 EBITDA 55,607 117,746 24,271 26,469 Less: Net, Gains (losses) on derivati
Slide 25: Reg. G: Adjusted EBITDA to Operating Cash Flow
24 Reg. G ($ in thousands) 2015 2016 1Q16 1Q17 Net cash provided by operating activities $45,931 $67,793 $25,502 $24,380 Amortization and write off of deferred financing costs (412) (668) (117) (248) Allowance for doubtful accounts and bad debt expense (7,908) (1,261) (907) (356) Interest expense 2,
Slide 26: Reg. G: Retail Gross Margin Reconciliation
25 Reg. G ($ in thousands) 2015 2016 1Q16 1Q17 Operating income $29,905 $84,001 $17,577 $17,038 Depreciation and amortization 25,378 32,788 6,789 9,232 General and administrative 61,682 84,964 17,380 24,377 Less: Net asset optimization revenue 1,494 (586) 527 (194) Net, Gains (losses) on non-trading
Slide 27: Reg. G Adjusted EBITDA definition
26 Reg. G Adjusted EBITDA We define “Adjusted EBITDA” as EBITDA less (i) customer acquisition costs incurred in the current period, (ii) net gain (loss) on derivative instruments, and (iii) net current period cash settlements on derivative instruments, plus (iv) non-cash compensation expense, and (v