Via Transportation, Inc. · NYSE:VIA
Via Transportation — Spark Energy — Investor Presentation (November 2017)
28 slides from Via Transportation's investor presentation, Nov 3, 2017
Slide 1: Investor Presentation November 2017
Investor Presentation November 2017
Slide 2: Safe Harbor Statement
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 2
Slide 3: Notice to Investors about Subsequent Investor Presentations
Notice to Investors about Subsequent Investor Presentations Investors are advised that the company does not intend to furnish subsequent investor presentations on a Current Report on Form 8-K. Investors should consult the company’s website at ir.sparkenergy.com to review subsequent investor presenta
Slide 4: 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: $521.2MM Debt $109.4MM Preferred Stock: $41.2MM Enterprise Value: $671.8MM Annu
Slide 5: Spark Energy Highlights
Spark Energy Highlights Ten acquisitions completed since IPO, creating significant shareholder value Recently closed acquisition of Verde Energy, a 100% renewable brand with approximately 145,000 RCEs Clear line of sight for significant uplift to Adjusted EBITDA through full integration of acq
Slide 6: How Spark Energy Serves its Customers
How Spark Energy Serves its Customers Delivering Electricity Delivering Natural Gas SPARK ENERGY SPARK ENERGY DISTRIBUTION DISTRIBUTION GENERATION TRANSMISSION PRODUCTION TRANSPORTATION Our Value Proposition to the Customer Stable and Predictable Potential Cost Green and Renewable Energy Costs Savin
Slide 7: Opportunities for Organic and M&A Growth
Opportunities for Organic and M&A Growth Synergies following acquisitions Natural Gas Achieve efficiencies through: Performance Improvements Systems Consolidation 39MM Eligible Customers1,2 18% Penetration Legal Entity Rationalization <1% Spark Share Standardization & Simplification Internat
Slide 8: Customer Lifetime Value Strategy
Customer Lifetime Value Strategy Increase Lifetime Value Sophisticated Customer Analyze historical usage and Create Long-Tenure, High Acquisition Model attrition data to optimize Value Customers customer profitability Multi-channel sales Customer retention team Attractive EBITDA margin Div
Slide 9: Spark's Geographical Diversity: States and Utility Territories
Spark’s Geographical Diversity: 19 States and 94 Utility Territories ME NH NY MA MI CT NV PA IL OH NJ IN CA CO DE MD AZ DC TX Electricity Natural Gas FL Residential Customer Equivalents RCEs (In thousands) Electricity Percent Natural Gas Percent Total Percent East 592 76% 105 59% 697 73% Midwest 74
Slide 10: Proven Track Record of Acquisitions and Integration
Proven Track Record of Acquisitions and Integration Recent Transactions ~12,500 RCEs ~9,500 RCEs ~65,000 RCEs ~40,000 RCEs Connecticut Northern California 13 New Markets 7 New Markets December 2014 March 2015 July 2015 July 2015 ~121,000 RCEs ~220,000 RCEs ~60,000 RCEs ~145,000 RCEs 9 New Markets 15
Slide 11: Multiple Brands and Sales Channels Enhance Our Ability to Acquire Customers Organically
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 flexib
Slide 12: Portfolio Diversification
Portfolio Diversification Commodity Product Customer Gas 19% Variable Commercial 26% 36% Fixed Electricity Residential 74% 81% 64% Both product and customer mix, combined with geographic diversification supports stable cash flow Based on RCEs as of September 30, 2017 11
Slide 13: Conservative Capitalization Minimizes Risk
Conservative Capitalization Minimizes Risk $150.0 million syndicated credit facility closed in May $50.0 million accordion $91.5 million drawn1 Low cost of capital New facility is larger than prior facility, has a simplified structure, and fewer covenants Leverage Ratio1 Debt1 $109.4 MM TT
Slide 14: Managing Commodity Price Risk
Managing Commodity Price Risk Seasoned, in-house supply team provides a strong competitive advantage relative to our peers while ensuring risk mitigation Proven hedging strategy that has been refined over Spark Energy’s 18 year history Demonstrated ability to “weather the storm” through up-and-d
Slide 15: Creating Shareholder Value
Creating Shareholder Value 350% Spark Energy, Inc. NASDAQ Composite Russell 2000 156% Total Shareholder Return since January 2015 300% 250% 200% 150% 100% 50% 0% -50% 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 07/01/17 10/01/17 Total Shareholder Return
Slide 16: Key Investment Highlights
Key Investment Highlights High Growth Sustainable Dividends Proven Track Customer & Committed to Conservative Record of Product the Dividend Consistent Capitalization Accretive Diversification and Total Organic Growth and Risk Acquisitions and Underpins our Shareholder Management Integrations Divide
Slide 17: 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 16
Slide 18: Appendix
Appendix
Slide 19: Spark by the Numbers
Spark by the Numbers $100.0 Adjusted EBITDA ($MM) $25.0 $75.0 $81.9 ($ in millions) 2015 2016 3Q16 3Q17 Revenue $358.2 $546.7 $158.1 $215.5 $50.0 $20.0 Retail Gross Margin $113.6 $182.4 $45.2 $50.6 $20.3 $19.6 Adjusted EBITDA $36.9 $81.9 $20.3 $19.6 $36.9 $25.0 Customer Acq. Costs $19.9 $24.9 $8.2 $
Slide 20: Proven Leadership
Proven Leadership Senior Management has over 35 Years of Retail Energy Experience Nathan Kroeker • CEO and President • Veteran leader in sales strategy, global energy supply, and M&A across the upstream, downstream, and midstream energy sectors • Extensive international experience; board member of E
Slide 21: Board of Directors
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 National
Slide 22: Up-C Structure
Up-C Structure Sponsor Class B Common Stock Class A Common Stock Public 21,485,126 Shares1 13,145,636 Shares1 • Not publicly traded • Publicly traded • No economic rights2 • 100% of economic interest in Spark Energy, Inc. Spark Energy, Inc. Spark HoldCo Operating Subsidiaries 1Shares as of November
Slide 23: Spark in the Community
Spark in the Community Empower What Matters Most Spark partners with organizations that: • Raise the quality of life for children and military veterans • Make communities better places to live and work • Drive America’s economic future through entrepreneurship education • Provide an avenue for emplo
Slide 24: Appendix: Reg. G Schedules
Appendix: Reg. G Schedules
Slide 25: Reg. G: Adjusted EBITDA Reconciliation
Reg. G Appendix Table A-1: Adjusted EBITDA Reconciliation The following table presents a reconciliation of Adjusted EBITDA to net income for each of the periods indicated. ($ in thousands) 2015 2016 3Q16 3Q17 Net income $25,975 $65,673 $6,801 $12,942 Depreciation and amortization 25,378 32,788 8,295
Slide 26: Reg. G: Adjusted EBITDA to Operating Cash Flow
Reg. G Appendix Table A-2: Adjusted EBITDA Reconciliation The following table presents a reconciliation of Adjusted EBITDA to net cash provided by operating activities for each of the periods indicated. ($ in thousands) 2015 2016 3Q16 3Q17 Net cash provided by operating activities $45,931 $67,793 $(
Slide 27: Reg. G: Retail Gross Margin Reconciliation
Reg. G Appendix Table A-3: Retail Gross Margin Reconciliation The following table presents a reconciliation of Retail Gross Margin to operating income for each of the periods indicated. ($ in thousands) 2015 2016 3Q16 3Q17 Operating income $29,905 $84,001 $8,960 $18,088 Depreciation and amortization
Slide 28: Reg. G: Adjusted EBITDA Definition
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) o