Via Transportation, Inc. · NYSE:VIA
Via Transportation — Spark Energy — Investor Presentation (November 2016)
27 slides from Via Transportation's investor presentation, Nov 10, 2016
Slide 1: Investor Presentation November 2016
Investor Presentation November 2016
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 forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities A
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: $421.4MM Debt $29.8MM Enterprise Value: $451.2MM Annual Dividend: $1.45 (paid q
Slide 4: Spark Energy Highlights
3 Spark Energy Highlights 2016 annual Adjusted EBITDA guidance of $80MM - $85MM Seven acquisitions completed since IPO, creating significant shareholder value Recently closed Provider acquisition and Major Energy drop-down from sponsor, adding approximately 340,000 RCEs, 24 new markets, and tw
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 TRANSPORTATION TRANSMISSION 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: 18 States and 90 Utility Territories Residential Customer Equivalents RCEs (In thousands) Electricity Percent Natural Gas Percent Total Percent East 441 80% 116 58% 557 74% Midwest 51 9% 52 26% 103 14% Southwest 61 11% 32 16% 93 12% Total 553 100% 200 100% 753 100%
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 ~14,000 Customers Connecticut December 2014 ~26,000 Customers Northern California March 2015 ~121,000 RCEs 9 New Markets August 2016 ~220,000 RCEs 15 N
Slide 10: Multiple Brands and Sales Channels Enhance Our Ability to Acquire Customers
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
73% 27% 10 Portfolio Diversification 64% 36% Fixed 74% Variable 26% Commercial Residential Both product and customer mix, combined with geographic diversification supports stable cash flow Commodity Product Customer Based on RCEs as of September 30, 2016 Electricity Gas
Slide 12: Conservative Capitalization Minimizes Risk
11 Conservative Capitalization Minimizes Risk Leverage Ratio1 Debt2 $29.8MM TTM Adjusted EBITDA $73.3MM Leverage Ratio 0.4x $107.5 million syndicated credit facility $82.5 million working capital line $23.3 million drawn on $25.0 million acquisition tranche1 Low cost of capital 1As of Septem
Slide 13: Managing Commodity Price Risk
12 Managing Commodity Price Risk Proven hedging strategy that has been refined over Spark Energy’s 17 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% Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Apr-16 Jul-16 Oct-16 Spark Energy, Inc. NASDAQ Composite Russell 2000 As of November 7, 2016 104% Total Shareholder Return since January 2015 Total Shareholder Return assumes an investment of $100 on January 1, 2
Slide 15: Key Investment Highlights
Key Investment Highlights Proven Track Record of Accretive Acquisitions and Integrations 7 Transactions in the last twenty-four months Consistent Organic Growth ~3% Organic customer growth last three years (CAGR) Conservative Capitalization and Risk Management 0.4x Leverage Ratio Committed to the Di
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: Andy Davis ir@sparkenergy.com 832-200-3727 15
Slide 17: Appendix
Appendix
Slide 18: Spark by the Numbers
17 Spark by the Numbers $36.9 $82.5 $5.6 $20.3 $- $5.0 $10.0 $15.0 $20.0 $25.0 $- $25.0 $50.0 $75.0 $100.0 2015 2016E 3Q15 3Q16 Adjusted EBITDA ($MM) ($ in millions) 2015 20161 3Q15 3Q16 Revenue $358.2 - $91.3 $158.1 Retail Gross Margin $113.6 - $26.7 $45.2 Adjusted EBITDA $36.9 $82.5 $5.6 $20.3 Cus
Slide 19: Proven Leadership
18 Proven Leadership Robert Lane • Vice President and Chief Financial Officer • Former CFO of Emerge Energy Services LP (NYSE:EMES) • Experienced in M&A, integration and capital markets throughout the energy sector • Certified Public Accountant and Chartered Financial Analyst Jason Garrett • Executi
Slide 20: Board of Directors
19 Board of Directors W. Keith Maxwell III • Chairman of the Board of Directors Mr. Maxwell serves as non-executive Chairman of the Board of Directors, and was appointed to this position in connection with the IPO. Mr. Maxwell also serves as Chief Executive Officer of NuDevco Partners, LLC and Natio
Slide 21: Up-C Structure
20 Up-C Structure Public Spark Energy, Inc. Sponsor Spark HoldCo Operating Subsidiaries Class A Common Stock 6,496,599 Shares1,2 • Publicly traded • 100% of economic interest in Spark Energy, Inc. Class B Common Stock 10,224,742 Shares1 • Not publicly traded • No economic rights 1Shares as of Novemb
Slide 22: Spark in the Community
21 Spark in the Community Through our work with the Arbor Day Foundation, we are able to extend our environmental efforts far beyond green energy. We help Lemonade Day introduce youth to the concept of starting and operating their own lemonade stand businesses while teaching the real-world skills th
Slide 23: Appendix: Reg. G Schedules
Appendix: Reg. G Schedules
Slide 24: Adjusted EBITDA Reconciliation (Table A-1)
23 Reg. G ($ in thousands) 2015 3Q15 3Q16 Net income $25,975 $5,875 $6,801 Depreciation and amortization 25,378 7,557 8,295 Interest expense 2,280 800 1,270 Income tax expense 1,974 580 1,129 EBITDA 55,607 14,812 17,495 Less: Net, Gains (losses) on derivative instruments (18,497) 61 (609) Net, Cash
Slide 25: Adjusted EBITDA Reconciliation (Table A-2)
24 Reg. G ($ in thousands) 2015 3Q15 3Q16 Net cash provided by operating activities $45,931 $(15,887) $(48,157) Amortization and write off of deferred financing costs (412) (194) (231) Allowance for doubtful accounts and bad debt expense (7,908) (1,903) (381) Interest expense 2,280 800 1,270 Income
Slide 26: Retail Gross Margin Reconciliation (Table A-3)
25 Reg. G ($ in thousands) 2015 3Q15 3Q16 Operating income $29,905 $7,250 $8,960 Depreciation and amortization 25,378 7,557 8,295 General and administrative 61,682 15,493 18,009 Less: Net asset optimization revenue 1,494 (545) 108 Net, Gains (losses) on non-trading derivative instruments (18,423) 13
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)