Via Transportation, Inc. · NYSE:VIA
Via Transportation — Spark Energy — Investor Presentation (February 2016)
29 slides from Via Transportation's investor presentation, Feb 8, 2016
Slide 1: Investor Presentation February 2016
Investor Presentation February 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 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: $343.5MM Long-Term Debt $19.9MM Enterprise Value: $363.4MM Annual Dividend: $1.
Slide 4: Maximizing Shareholder Value
3 Maximizing Shareholder Value -25% 0% 25% 50% 75% 100% 125% Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Spark Energy, Inc. NASDAQ Composite Russell 2000 As of February 5, 2016 93% Total Shareholder Return since January 2015 Total Shareholder Return assumes an investment of $100 on December 31, 2014 and also
Slide 5: Spark Energy Highlights
4 Spark Energy Highlights 2016 annual Adjusted EBITDA guidance in the range of $44MM - $48MM, based upon projected 2016 customer acquisition costs of $13MM - $17MM Five recent M&A transactions successfully integrated and creating shareholder value Aligned sponsor supports growth strategy Dro
Slide 6: Spark by the Numbers
5 Spark by the Numbers $- $10.0 $20.0 $30.0 $40.0 $50.0 2013 2014 2015E 2016E Adjusted EBITDA ($MM) ($ in millions) 2013 2014 Revenue $317.1 $322.9 Retail Gross Margin $81.7 $76.9 Adjusted EBITDA $33.5 $11.3 Customer Acquisition Costs $8.3 $26.2 - 100 200 300 400 500 2013 2014 2015E 2016E 2013 2014
Slide 7: How Spark Energy Serves its Customers
6 How Spark Energy Serves its Customers Delivering Electricity Delivering Natural Gas POWER GENERATION SPARK ENERGY SPARK ENERGY DISTRIBUTION DISTRIBUTION PRODUCTION TRANSPORTATION TRANSMISSION Green and Renewable Products Stable and Predictable Energy Costs Potential Cost Savings Our Value Proposit
Slide 8: Key Investment Highlights
Key Investment Highlights Proven Track Record of Accretive Acquisitions and Integrations 5 Transactions in the last fifteen months Consistent Organic Growth ~3% Organic customer growth last three years (CAGR) Conservative Capitalization and Risk Management ~0.5x Leverage Ratio Committed to the Divid
Slide 9: Proven Track Record of Acquisitions and Integration
8 Proven Track Record of Acquisitions and Integration Recent Transactions ~75,000 RCEs 13 New Markets July 2015 ~40,000 RCEs 7 New Markets July 2015 ~2,000 Customers Connecticut December 2014 ~12,000 Customers Connecticut December 2014 ~26,000 Customers Northern California March 2015 Market Opportun
Slide 10: Aligned Sponsor Provides Access to M&A Opportunities, Capital, and Other Services
9 Aligned Sponsor Provides Access to M&A Opportunities, Capital, and Other Services To Propel Growth Step 2: Derisk and Capture Synergies A) NG&E and Spark work together to capture initial synergies (supply, finance, etc.) B) NG&E puts acquired customers on shared Retailco customer operations platfo
Slide 11: Multiple Brands and Sales Channels Enhance Our Ability to Acquire Customers Organically
10 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 fle
Slide 12: Customer and Product Diversity Provides Stable Cash Flow
11 Customer and Product Diversity Provides Stable Cash Flow • 66 utility service territories in 16 states • Able to quickly react to market trends and redirect customer portfolio • Geographic diversity minimizes risks related to regulatory, weather and supply fluctuations • Natural gas and electrici
Slide 13: Spark's Geographical Diversity: States and Utility Territories
12 Spark’s Geographical Diversity: 16 States and 66 Utility Territories Residential Customer Equivalents RCEs (In thousands) Electricity Percent Natural Gas Percent Total % of Total East 132 55% 46 28% 178 44% Midwest 42 18% 65 40% 107 27% Southwest 65 27% 51 32% 116 29% Total 239 100% 162 100% 401
Slide 14: Electricity Portfolio Diversification
Electricity 13 Portfolio Diversification 66% 34% 61% 39% Fixed 58% Variable 42% Commercial Residential Both product and customer mix, combined with geographic diversification supports stable cash flow Commodity Product Customer Sustainable Dividends Based on RCEs as of December 31, 2015 Gas
Slide 15: Conservative Capitalization Minimizes Risk
14 Conservative Capitalization Minimizes Risk Leverage Ratio1 Debt2 $19.9MM Estimated 2015 Adjusted EBITDA $35.0 - $37.5MM Leverage Ratio 0.5x – 0.6x $85 million syndicated credit facility $60 million working capital line (eliminates need for costly credit sleeve) $19.9 million drawn on $25 mi
Slide 16: Managing Commodity Price Risk
15 Managing Commodity Price Risk Sustainable Dividends 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 sup
Slide 17: Key Investment Highlights
Key Investment Highlights Proven Track Record of Accretive Acquisitions and Integrations 5 Transactions in the last fifteen months Consistent Organic Growth ~3% Organic customer growth last three years (CAGR) Conservative Capitalization and Risk Management ~0.5x Leverage Ratio Committed to the Divid
Slide 18: Spark in the Community
17 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 19: 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 18
Slide 20: Appendix
Appendix
Slide 21: Proven Leadership
20 Proven Leadership Georganne Hodges • Chief Financial Officer • Former CFO of Direct Energy’s (LSE:CNA) retail energy services business • Experienced in M&A and integration of retail energy companies • Certified public accountant Jason Garrett • Executive Vice President • Served in leadership role
Slide 22: Board of Directors
21 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 23: Spark's History Dates Back to the Early Days of Retail Energy Deregulation
22 Spark’s History Dates Back to the Early Days of Retail Energy Deregulation Spark Gas was formed Spark Power was formed States began to deregulate electricity & natural gas Predecessor company founded by W. Keith Maxwell, III Town Square and Discount Power Acquisitions CenStar Energy Acquisition O
Slide 24: Condensed Balance Sheet
23 Condensed Balance Sheet ($ in thousands) Cash $ 7,355 Accounts receivable 51,731 Inventory 5,230 Customer acquisition costs/Acquired customer intangibles 22,678 Other current assets 12,927 Total current assets $ 99,921 Deferred tax asset 23,196 Customer acquisition costs/Acquired customer intangi
Slide 25: Appendix: Reg. G Schedules
Appendix: Reg. G Schedules
Slide 26: Reg. G: Adjusted EBITDA Reconciliation to Net Income
25 Reg. G ($ in thousands) 2013 2014 2015 Net (loss) income $31,412 $(4,265) Depreciation and amortization 16,215 22,221 Interest expense 1,714 1,578 Income tax expense 56 (891) EBITDA 49,397 18,643 Less: Net, Gains (losses) on derivative instruments 6,567 (14,535) Net, Cash settlements on derivativ
Slide 27: Reg. G: Adjusted EBITDA Reconciliation to Operating Cash Flow
26 Reg. G ($ in thousands) 2013 2014 2015 Net cash provided by operating activities $44,480 $5,874 Amortization and write off of deferred financing costs (678) (631) Allowance for doubtful accounts and bad debt expense (3,101) (10,164) Interest expense 1,714 1,578 Income tax expense (benefit) 56 (89
Slide 28: Reg. G: Retail Gross Margin Reconciliation
27 Reg. G ($ in thousands) 2013 2014 Operating (loss) income $32,829 $(3,841) Depreciation and amortization 16,215 22,221 General and administrative 35,020 45,880 Less: Net asset optimization revenue 314 2,318 Net, Gains (losses) on non-trading derivative instruments 1,429 (8,713) Net, Cash settleme
Slide 29: Reg. G: Adjusted EBITDA Definition
28 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)