Fourth Quarter 2007
Earnings Conference
October 24, 2007
Exhibit 99.2
This presentation contains forward-looking statements within the
meaning of the federal securities laws. Forward-looking statements are
based upon management’s belief and assumptions made by, and
information currently available to, management. Our actual
This presentation contains forward-looking statements within the
meaning of the federal securities laws. Forward-looking statements are
based upon management’s belief and assumptions made by, and
information currently available to, management. Our actual
results could differ materially from the results
anticipated in these forward-looking statements
as a result of numerous factors including factors
identified from time to time in our filings with the
Securities and Exchange Commission. Any
forward-looking statement speaks only as of the
date on which such statement is made, and,
except as required by law, we undertake no
obligation to update any forward-looking
statement to reflect events or circumstances
after the date on which such statement is made
or to reflect the occurrence of unanticipated
events. New factors emerge from time to time,
and it is not possible for management to predict
all such factors.
results could differ materially from the results
anticipated in these forward-looking statements
as a result of numerous factors including factors
identified from time to time in our filings with the
Securities and Exchange Commission. Any
forward-looking statement speaks only as of the
date on which such statement is made, and,
except as required by law, we undertake no
obligation to update any forward-looking
statement to reflect events or circumstances
after the date on which such statement is made
or to reflect the occurrence of unanticipated
events. New factors emerge from time to time,
and it is not possible for management to predict
all such factors.
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Forward Looking
statements
Copyright© 2007 Commerce Energy, Inc. All Rights Reserved
The Commerce Energy Logo and Clear Choice Clean Energy Logo is a trademark of Commerce Energy Inc.
The Green-e logo is a registered trademark of Center for Resource Solutions
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Opening Remarks
Steven Boss, CEO
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2007 highlights
•Financial Highlights
ШNet Income increased to $5.5 million, $0.18 EPS
ШGross Profit nearly doubled to $57.2 million
ШAPX & ACN, net $1.9 million
•$6.52 million APX settlement
•$3.90 million ACN legal settlement
•$0.72 million ACN legal expenses
•Continued Strong Customer Growth
Ш196,000 customers as of July 31, 2007
Ш43% increase over July 31, 2006
•Estimated FY 2008 Earnings and Year-End Customers
ШEarnings estimate $6.1 to $6.6 million
ШEquals $0.20 - $0.22 EPS
Ш8% - 10% customer growth
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quarter & YTD
•YTD adds above expectations
•Quarterly churn rate of 9%
Q4 ‘07 YTD ‘07
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customer adds & drops
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•43% increase in customer count over 7/31/06
•120,000 gross customer adds in FY 2007
FY 2006
FY 2007
quarter-to-quarter comparison
customer growth
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7/31/07
7/31/08
Customers: 196,000 215,000
EPS $0.20 - $0.22
$0.12
$0.20 - $0.22
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2007
year-end customer count estimate
APX/ACN
$0.06*
EPS $0.18
* Includes $721K of ACN expenses related to ACN arbitration
2008
Actual
Estimate
2008 annual earnings estimate
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Financial Review
Bob Hipps, Interim CFO
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$1.1
$0.7
Net Income ― $0.4
Q4 ($ in millions)
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•APX and ACN Impact — $1.3
•Net Revenue up 106%; Gross Profit up 73%
•Operating expenses up 61%
net income
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Net Revenue ― $55.6 106%
$52.3
$107.9
Q4 ($ in millions)
$46.2
$6.1
$80.7
$25.7
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Electricity
MWh
243K 57%
Gas
DTH
2,561K 390%
$1.5
net revenue
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Gas
$0.4 23%
Gross Profit ― $6.3 73%
Q4 ($ in millions)
$8.7
$15.0
$7.1
$ 1.2
$12.3
Electricity
$5.2 74%
$1.6
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$1.5
gross profit
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Sales & Marketing ―
$1.4 76%
$3.3
$1.9
Q4 ($ in millions)
$10.3
$6.6
G & A ―
$3.7 56%
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operating expenses
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$5.5
FY ‘07 ($ in millions)
YTD Net Income (loss) ― $7.7
$(2.2)
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13net income (loss)
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Net Revenue ― $124.5 50%
FY ‘07 ($ in millions)
$247.1
$371.6
$185.4
$ 61.7
$239.1
$126.0
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Electricity
MWh
290K 16%
Gas
DTH
9,673K 188%
Gas Electricity
APX
$6.5
net revenue
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Gross Profit ― $28.4 99%
FY ‘07 ($ in millions)
$28.8
$57.2
$ 5.9
$22.9
$40.1
$10.6
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Electricity ―
$17.2 75%
Gas ―
$4.7 80%
$ 6.5
gross profit
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*
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YTD
Sales & Marketing ―
$5.4 103%
FY ‘07 ($ in millions)
$10.6
$5.2
YTD
G & A ―
$10.4 38%
$37.3
$26.9
operating expenses
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($ in thousands)
cash & liquidity
07/31/0707/31/06 Cash and cash equivalents. $ 6,559$ 22,941 Account receivables. . . . . . .$ 65,231$ 30,650 Working capital . . . . . . . . . .$ 38,900$ 32,253 Current ratio* . . . . . . . . . . . 1.8:1.02.0:1.0 Restricted cash . . . . . . . . . .$ 10,457$ 17,117 Short-term borrowings . . . . .$ —$ — Primary cash flow uses: 12 Mos. EndedJul ’07 12 Mos. EndedJul ’06 Property and equipment . . .$ 4,532$ 4,714 HESCO purchase . . . . . . . .$ 4,453$ —
* Current assets to current liabilities
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Closing
Comments
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•APX and ACN Settlements
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•196,000 Year-end Customers
•Gross profit doubled to $57.2 million
from $28.8 million last year
2007 highlights
•Net income increased to $5.5 million from a
net loss of $2.2 million in FY 2006
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