Via Transportation, Inc. · NYSE:VIA
Via Transportation — Spark Energy — Investor Presentation (March 2017)
27 slides from Via Transportation's investor presentation, Mar 6, 2017
Slide 1: Investor Presentation March 2017
Investor Presentation March 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: $487.9MM Debt $22.3MM Enterprise Value: $510.2MM Annual Dividend: $1.45 (paid q
Slide 4: Spark Energy Highlights
3 Spark Energy Highlights 2017 annual Adjusted EBITDA guidance of $90MM - $100MM Seven acquisitions completed since IPO, creating significant shareholder value Most recent acquisitions include Major Energy drop-down from sponsor and Provider Power, which, combined, added approximately 340,000
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 451 79% 118 58% 569 73% Midwest 52 9% 56 28% 108 14% Southwest 68 12% 29 14% 97 13% Total 571 100% 203 100% 774 100%
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
74% 26% 10 Portfolio Diversification 62% 38% Fixed 75% Variable 25% Commercial Residential Both product and customer mix, combined with geographic diversification supports stable cash flow Commodity Product Customer Based on RCEs as of December 31, 2016 Electricity Gas
Slide 12: Conservative Capitalization Minimizes Risk
11 Conservative Capitalization Minimizes Risk Leverage Ratio1 Debt1,2 $22.3MM TTM Adjusted EBITDA $81.9MM Leverage Ratio 0.3x $107.5 million syndicated credit facility $82.5 million working capital line $22.3 million drawn on $25.0 million acquisition tranche1 Low cost of capital 1As of Dece
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% Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Apr-16 Jul-16 Oct-16 Jan-17 Spark Energy, Inc. NASDAQ Composite Russell 2000 As of March 1, 2017 136% Total Shareholder Return since January 2015 Total Shareholder Return assumes an investment of $100 on January
Slide 15: Key Investment Highlights
Key Investment Highlights Proven Track Record of Accretive Acquisitions and Integrations 7 Transactions in the last two years Consistent Organic Growth ~5% Organic customer growth last year Conservative Capitalization and Risk Management 0.3x Leverage Ratio Committed to the Dividend and Total Shareh
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 [email protected] 832-200-3727 15
Slide 17: Appendix
Appendix
Slide 18: Spark by the Numbers
17 Spark by the Numbers $36.9 $81.9 $95.0 $16.3 $24.8 $- $5.0 $10.0 $15.0 $20.0 $25.0 $30.0 $- $25.0 $50.0 $75.0 $100.0 2015 2016 2017E 4Q15 4Q16 Adjusted EBITDA ($MM) ($ in millions) 2015 2016 20171 4Q15 4Q16 Revenue $358.2 $546.7 - $94.8 $168.7 Retail Gross Margin $113.6 $182.4 - $34.4 $58.8 Adjus
Slide 19: Proven Leadership
18 Proven Leadership Robert Lane • Vice President and Chief Financial Officer • Former CFO of Emerge Energy Services LP (NYSE:EMES) • Experienced in M&A, integration and capital markets throughout the energy sector • Certified Public Accountant and Chartered Financial Analyst Jason Garrett • Executi
Slide 20: Board of Directors
19 Board of Directors W. Keith Maxwell III • Chairman of the Board of Directors Mr. Maxwell serves as non-executive Chairman of the Board of Directors, and was appointed to this position in connection with the IPO. Mr. Maxwell also serves as Chief Executive Officer of NuDevco Partners, LLC and Natio
Slide 21: Up-C Structure
20 Up-C Structure Public Spark Energy, Inc. Sponsor Spark HoldCo Operating Subsidiaries Class A Common Stock 6,496,559 Shares1 • Publicly traded • 100% of economic interest in Spark Energy, Inc. Class B Common Stock 10,742,563 Shares1 • Not publicly traded • No economic rights 1Shares as of March 1,
Slide 22: Spark in the Community
21 Spark in the Community Through our work with the Arbor Day Foundation, we are able to extend our environmental efforts far beyond green energy. We help Lemonade Day introduce youth to the concept of starting and operating their own lemonade stand businesses while teaching the real-world skills th
Slide 23: Appendix: Reg. G Schedules
Appendix: Reg. G Schedules
Slide 24: Reg. G: Adjusted EBITDA Reconciliation
23 Reg. G ($ in thousands) 2015 2016 4Q15 4Q16 Net income $25,975 $65,673 $3,132 $24,137 Depreciation and amortization 25,378 32,788 7,505 9,451 Interest expense 2,280 8,859 865 6,004 Income tax expense 1,974 10,426 374 3,574 EBITDA 55,607 117,746 11,876 43,166 Less: Net, Gains (losses) on derivativ
Slide 25: Reg. G: Adjusted EBITDA to Operating Cash Flow
24 Reg. G ($ in thousands) 2015 2016 4Q15 4Q16 Net cash provided by operating activities $45,931 $67,793 $6,256 $6,150 Amortization and write off of deferred financing costs (412) (668) (117) (203) Allowance for doubtful accounts and bad debt expense (7,908) (1,261) (1,826) (419) Interest expense 2,
Slide 26: Reg. G: Retail Gross Margin Reconciliation
25 Reg. G ($ in thousands) 2015 2016 4Q15 4Q16 Operating income $29,905 $84,001 $4,374 $33,098 Depreciation and amortization 25,378 32,788 7,505 9,451 General and administrative 61,682 84,964 17,773 29,776 Less: Net asset optimization revenue 1,494 (586) 177 (544) 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